Document:

Employment Agreement between T. Wesley Elam and Full House Resorts, Inc.

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (“Agreement”) is made and effective this 10th day of
April, 2007 (the “ Effective Date”) by and between Full House Resorts, Inc. a Delaware corporation the “Company”, and Wes Elam (“Executive”). 
 In consideration of the premises and of the covenants and agreements herein contained, the parties agree as follows: 
 1. Employment Services. 
 Employer hereby employs
Executive, and Executive hereby accepts employment as Senior Vice President of Operations and Development of the Company, reporting to the Board of Directors of the Company, all upon and subject to the terms and conditions herein set forth. For
purposes of this Agreement, the term “Company” will be deemed to mean the Company and its subsidiaries or affiliates. 
 2. Duties.

 During the term of his employment, Executive will devote his full-time best efforts and loyalty to this employment and lawfully perform duties as
described in Appendix A and such other duties as are reasonably assigned or delegated to him by the Board of Directors consistent with his best abilities and position hereunder. In construing the provisions of this Agreement, “Employer”
will include all of Employer’s subsidiary, parent and affiliated corporations and entities. While it is understood and agreed that Executive’s job duties may change at the Board of Directors’ discretion during the Term defined below
of this Agreement, his general level of responsibility will not be materially reduced. 
 3. Term. 
 The term of this Agreement the “Term”) will begin on the Effective Date stated above and will continue for a one year term. The Term will automatically
renew for successive periods of one year each, an “Extended Term”, unless the Company or the Executive gives written notice to the other at least ninety 90 days prior to the end of the then current Term that this Agreement will not be
further extended. For purposes of this agreement, “Term” will hereafter include any Extended Term. Otherwise, this Agreement may be terminated as provided in Paragraphs 8 and 9 below. 
 4. Compensation. 
 A. In consideration
of the services to be rendered by Executive hereunder, the Company agrees to pay to Executive the sum described in Appendix A annually (the “Base Salary”), pro-rated for the period beginning upon the Effective Date and ending on
December 31, 2007 thereafter, the Base Salary will be increased at the discretion of the Board of Directors beginning each January 1st of the Term. All Base Salary will be paid in accordance with the regular payroll practices of the Company.

 B. The Executive will also be entitled to receive annual cash bonuses of up to 100% of Base Salary (the “Annual Bonus”),
provided the Compensation Committee of the Board of Directors in its discretion determines that the Executive has met the pre-defined annual 

  

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Performance Objectives and assigned management duties The Annual Bonus will be paid in accordance with plan documents. Each year’s annual Performance
Objectives will be set and approved by the Board of Directors within 90 days of fiscal year beginning. 
 C. Pursuant to the terms of
Resolution of the Company dated December 15, 2005, and upon shareholder approval of the Company’s “2006 Long-Term Incentive Compensation Plan (“L-T Incentive Plan”), which Incentive Plan was approved by a majority of
Company shareholders no later than June 1, 2006, Executive will receive a restricted stock grant of a number of shares described in Appendix A, or as approved by the Board of Directors. The Shares will vest in three equal installments of
thirty-three percent (33%) each of which will vest on the annual anniversary of the grant date. 
 1. Forfeiture of Shares. To the extent
not inconsistent with any mandatory provisions of the Incentive Plan, any unvested Shares will be forfeited if Company terminates Executive during the Term For Cause (Paragraph 9(A)) or if Executive terminates his employment during the Term Without
Good Reason (Paragraph 9(D)). 
 2. Additional Shares. Executive will be considered by the Company for additional awards of stock- based
incentive compensation, which determination will be by the Compensation Committee’s subject to Board of Directors approval and pursuant to the Incentive Plan. 
 5. Benefits. 
 A. Executive will receive paid vacation annually, all of which will be in accordance with the
Full House Resorts Inc. Vacation Policy. 
 B. Executive will be entitled to participate in all other employment benefits, including but not
limited to death and retirement plans, group insurance programs for medical, hospitalization, life, and long term disability, afforded in general to all employees, or to senior executives of the Company of comparable status and tenure. 

C. Throughout the Term, or any extensions thereof, the Company will maintain in full force and effect a policy of term insurance on the life of
Executive in an amount determined by the Company, but no less than equal to 2 year’s base compensation, subject to insurability. Executive will promptly advise the Company of his designated beneficiaries of such policy. Upon termination of
Executive’s employment, and to the extent permitted under the policy, Executive will have the right to transfer such policy to his own name as provided in Paragraph 9(G). 
 D. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies for which the Executive may qualify. 
 E. Existing benefit plans are included in
Appendix A. 
 6. Reimbursable Expenses. 
 The Company will pay all reasonable expenses incurred by Executive in the performance of his responsibilities and duties for the Company. Executive will submit to the Company periodic statements- but no less than every 60 days, of all
expenses so incurred in accordance with the 

  

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Company’s accounting policies. Subject to such audits as the Company may deem appropriate the Company will, promptly and in the ordinary course,
reimburse Executive the full amount of any such business expenses advanced by Executive. Company will pay directly all costs of Executive’s regulatory licensings as required by any jurisdiction in which the Company conducts business.

 7. Limitation on Outside Business Activities. During the Term of the employment hereunder, without the prior consent of the board of
directors, Executive will not: 
 A. Render services of a business, professional or commercial nature to any other person or entity, directly
or indirectly, whether for compensation or otherwise, except that this prohibition will not be construed to prevent Executive from engaging in charitable activities or investing his assets in such form or manner as will not require his services in
the operation of the affairs of the companies in which such investments are made and which are not in violation of Paragraph 7(B) below. 
 B. Engage in any activity competitive with or adverse to the welfare of business or related interests of the Company or any of its subsidiaries or affiliates, whether alone, as a partner, officer, director, employee or shareholder of any
other corporation or other entity, or otherwise, directly or indirectly, except that the ownership of not more than one percent of the stock of any one or more publicly traded corporations will not be deemed a violation of this Paragraph 7(B)

 C. Be engaged by any person or entity which conducts business with or acts as a consultant or advisor to the Company or any of its
subsidiaries or affiliates, whether alone, as a partner, officer, director, employee or shareholder of any other corporation or entity, or otherwise, directly or indirectly, except that ownership of not more than one percent of the stock of any one
or more publicly traded corporations will not be deemed a violation of this Paragraph 7(C). 
 8. Illness, Incapacity or Death
During Employment. 
 A. Illness or Incapacity If Executive is incapacitated by reason of physical or mental illness or
incapacity that results in a material inability to perform his duties under this Agreement, and if such incapacitation continues for a period of ninety 90 consecutive days, then upon 30 days written notice to Executive, or designated legal
representative, the Company may terminate the employment of Executive under this Agreement, and upon such termination, Company will pay Executive the following: 
 (1) His Base Salary to the date of termination 
 (2) An amount equal to his prior year’s Annual Bonus on
a pro-rata basis to the date of termination, subject to limitations and terms of Paragraph 4(B). 
 (3) Reimbursement of all expenses
reasonably incurred by Executive in performing his responsibilities and duties for the Company prior to the date of termination 
 (4)
Applicable insurance and other group benefits proceeds 
 (5) Value of any salary continuation received whether in lump sum or periodically
under any Company Long Term Disability Plan or any other applicable insurance or other group benefits provided by the Company. 
  

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 B. Death. In the event of Executive’s death, this Agreement will automatically terminate and
Company will pay to the Executive’s estate the following: 
 (1) His Base Salary to the date of death 
 (2) An amount equal to his prior year’s Annual Bonus on a pro-rata basis to the date of death, subject to limitations and terms of Paragraph 4(B)

 (3) Reimbursement of all expenses reasonably incurred by Executive in performing his responsibilities and duties for the Company prior to
his death 
 9. Termination by Company or by Executive. 
 A. For Cause by the Company. Subject to Paragraph 14, the employment of Executive under this Agreement may be terminated by the Company For Cause upon thirty 30 days written notice to Executive from the Chief
Executive Officer, or in the case of the Chief Executive Officer from the Chairman of the Board of Directors. If the Company properly terminates Executive’s employment hereunder for Cause, it will be without further liability to Executive
except for payment of all Base Salary and benefits accrued but unpaid to the date of such termination. For purposes of this Agreement, the term “ For Cause” means: 
 (1) Executive’s material fraud, dishonesty, willful misconduct, or willful and continuing failure in the performance of his duties under this
Agreement 
 (2) Executive’s breach of any material provision of this Agreement which has not been cured within 30 days following the
notice thereof 
 (3) The commission by Executive of any felony criminal act or the commission of any crime involving fraud, dishonesty or
moral corruptness, including denial or removal of Executive’s licensing from any governmental gaming agency or licensing authority. 
 Provided however,
that any action or inaction that results from Executive’s corporate conduct taken in furtherance of the direction of the Board of Directors or his superiors in the Company will not constitute “Cause” hereunder. 
 B. Without Cause by the Company. The employment of Executive under this Agreement may be terminated by the Company without cause at any time upon
thirty 30 days’ written notice to Executive. In such event, and in addition to any other entitlements under this Agreement, the Company will pay the Executive the following: 
 (1) His Base Salary in accordance with the regular payroll practices of the Company for a period of six months, with an additional month for every year of
full employment up to a maximum of twelve months 
 (2) An Annual Bonus for the year of termination equal to the average Annual Bonus of
previous 2 years in accordance with plan documents, prorated on an annual basis from the last Annual Bonus received by Executive, subject to a minimum of 50% 
  

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 (3) Company will continue, at its expense, Executive’s health, dental and other insurance benefits
for the remaining portion of the otherwise applicable Term or until Executive is subsequently employed, whichever is less and 
 C.
Termination by Executive For Good Reason. Subject to Paragraph 14, the Executive may terminate his employment under this Agreement For Good Reason and the Company’s liability to Executive will be to pay the Executive in accordance with
Paragraph 9(B)(1–3), as though Executive had been terminated Without Cause. “For Good Reason” means: 
 (1) A failure by
the Company to comply with any material provision of this Agreement which has not been cured within 30 days following the notice thereof 
 (2) Company’s direction to Executive to do, perform, or omit to perform any act, or Executive’s knowledge of such acts or omissions performed by other Company employees without appropriate redress, which acts or omissions are
known to be fraudulent, illegal or could otherwise materially impact negatively upon Executive’s personal and professional reputation. 
 D. Termination by Executive Without Good Reason. If the Executive terminates his employment hereunder Without Good Reason, with a minimum notice of 30 days, Executive will receive from the Company only his Base Salary, benefits and
reimbursable expenses that have accrued but remain unpaid to the date of such termination, and any earned , but unpaid, Annual Bonus declared by the Board. 
 E. Non-Renewal. A non-renewal of the Term under Paragraph 2 is not a “termination” under Paragraph 9 (A)–9(D). 
 F. Group Insurance Policies In the event of termination of this Agreement for any reason, Executive will have the right to convert any or all of the Company’s group insurance policies or plans to
individual policies to the extent that such policies or plans permit assignment from the group to the individual Executive, and provided Executive thereafter assumes the payment of all related financial obligations from the date o f such
termination. 
 10. Confidential Information. 
 Executive agrees that he will not, during the Term or thereafter: disclose, divulge, discuss, copy or otherwise use or suffer to be used in any manner, the proprietary and confidential plans, inventions, ideas, discoveries, marketing
methods, marketing research, customer lists, product research or other data of the Company not otherwise available to the public or to Executive independent of his employment collectively, “Confidential Information”. It is acknowledged by
Executive that all such Confidential Information compiled, obtained by, or furnished to Executive while he is employed by the Company is confidential and proprietary information which is the exclusive property of the Company provided, however, that
if at any time following the termination of this Agreement, any Confidential Information will become part of the public domain through no fault of Executive, then the restrictions and limitations of this Paragraph will not apply to such particular
information. 
 11. Non-Competition. 
 A. Executive agrees that, for the time periods specified in 11 B below, he will not, directly or indirectly, do any of the following: 
  

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 (1) Own, manage, control, or participate in the ownership, management or control of, or be employed or
engaged by, or otherwise affiliated or associated with, as a consultant, independent contractor or otherwise, any other corporation, partnership, proprietorship, firm, association or other business entity, or otherwise engage in any business that is
competitive with any business or enterprise in which the Company is engaged at the time Executive’s employment ceases including, without limitation, any gaming venture, Indian gaming or river boat gaming facility located within 100 miles of any
metropolitan area in which there is located any gaming facility owned, managed or under development to be owned or managed by the Company, including such gaming facilities not under development which the Company is pursuing, as determined by the
date Executive ceases to be employed hereunder or 
 (2) Solicit or induce any person who is an employee, officer, consultant or agent of the
Company or of any subsidiary or affiliate of the Company, to terminate such relationship. 
 B. The provisions of this Paragraph 11 will be
operative throughout the Term. Upon termination under Paragraphs 8 and 9 or upon a Change of Control under Paragraph 12, the provisions of this Paragraph 11 will be operative for the period during which Executive continues to receive compensation or
benefits, or for a period of twelve months, whichever is later 
 12. Change of Control. 
 A. Defined. For the purpose of this Agreement, a “Change of Control” will mean: 
 (1) The acquisition by any person, entity or “group”, within the meaning of Section 13(d) (3) or 14(d) (2) of the Securities
Exchange Act of 1934 (the “Exchange Act”) excluding, for this purpose: (a) the Company or its subsidiaries or (b) any employee benefit plan of the Company or its subsidiaries which acquires beneficial ownership of voting
securities of the Company, of beneficial ownership, within the meaning of Rule 13d-3 promulgated under the Exchange Act of 50% or more of either the then outstanding shares of common stock or the combined voting power of the Company’s then
outstanding voting securities or 
 (2) Individuals who, as of the date of this Agreement, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date of this Agreement whose election or nomination for election by the Company’s shareholders
was approved by a vote of at least a majority of the directors then comprising the Incumbent Board other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election
contest relating to the election of the Directors of the Company, as such terms are used in Rule 14 a-11of Regulation 14A promulgated under the Exchange Act will be, for purposes of this Agreement, considered as though such person were a member of
the Incumbent Board or 
 (3) Approval by the stockholders of the Company of: 
 (a) A reorganization, merger, consolidation or acquisition a “Business Combination”, with respect to which: (i) those persons who
were the 

  

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stockholders of the Company immediately prior to such Business Combination do not, immediately thereafter, beneficially own more than 50% of the combined
voting power of the then outstanding voting securities of the combined business’ then outstanding voting securities in substantially the same proportions as their ownership immediately prior to such Business Combination and (ii) at least a
majority of the Incumbent Board comprises a majority of the new Board of Directors of the combined business or 
 (b) A liquidation or
dissolution of the Company or 
 (c) The sale of all or substantially all of the assets of the Company. 
 B. Right of Executive to Terminate. Upon a Change of Control, Executive may terminate this Agreement only if it materially affects
Executive’s position and compensation herein. 
 C. Compensation Upon a Change of Control, and whereby the Executive elects to
terminate his employment as provided in Paragraph 12(B) above, or is not retained under contract by the surviving entity, the Company will pay the Executive as follows: 
 (1) A lump sum cash payment of the remaining Base Salary due under this Agreement, however no less than one year’s Base Salary at time of termination 
 (2) A lump sum cash payment equal the average of the Annual Bonuses, if any, paid to the Executive for the three prior years computed by adding the three
prior year bonuses and dividing by three or average based on term of employment if less than three years of service 
 (3) All unvested Shares
or other stock-based grants awarded pursuant to the Incentive Plan or other Company benefit plan will accelerate and vest upon the date of Change of Control. 
 13. Arbitration. 
 The Company and the Executive mutually consent to the resolution of all claims, controversies or disputes
under this Agreement, other than a claim which is primarily for injunctive or other equitable relief, by binding arbitration, in accordance with the Nevada Uniform Arbitration Act. The determination of the arbitrator will be binding. The Company
will pay the fees and costs of the arbitrator and all other reasonable direct costs in connection with any arbitration, excluding any legal representation retained by Executive. 
 14. Right to Cure. 
 Each party agrees to give the other written notice identifying with specificity any
action taken which the notifying party believes to be a material violation of this Agreement, and to give the breaching party a minimum of thirty 30 days thereafter to cure such breach prior to the notifying party commencing adverse action,
terminating this Agreement, or initiating equitable relief or arbitration. 
  

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 15. Miscellaneous. 
 A. Laws. This Agreement will be governed by, and construed in accordance with, the laws of the State of Nevada, without reference to principles of conflict of laws, and the parties agree that the courts of
appropriate jurisdiction located in Clark County, Nevada will be the forum for disputes brought hereunder. 
 B. Interpretation. The
invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision of this Agreement. If any provision of this Agreement will be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other provisions of this Agreement, will remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law. 
 C. Taxes. Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement all federal,
state, local and foreign taxes that are required to be withheld by applicable laws or regulations. 
 D. Strict Compliance. The
Executive’s or the Company’s failure to insist upon strict compliance with any provision of, or to assert any right under this Agreement including, without limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Paragraph 5 of this Agreement will not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement. 
 E. Counterparts. This Agreement may be executed in several counterparts, each of which will be deemed original, and said counterparts will constitute but one and the same instrument. Facsimile signatures will
be deemed original signatures. 
 F. Survival. The respective rights and obligations of the parties hereunder will survive any
termination of the Executive’s employment or arrangements to the extent necessary to the intended preservation of such rights and obligations. 
 G. Beneficiaries The Executive will be entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following the
Executive’s death by giving the Company written notice thereof. In the event of the Executive’s death or a judicial determination of his incompetence, references in this Agreement to the Executive will be deemed, where appropriate, to
refer to his beneficiary, estate or other legal representative. 
 H. Notices. All notices and other communications under this
Agreement will be in writing and will be given by hand to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows, or to such other address as either party furnishes to the other in writing
in accordance with this Paragraph. Notices and communications will be effective when actually received by the addressee: 
  

	
	To the Executive:
	
	 3750 Royer Ct.

	 Reno, NV 89509

	
	To the Company:
	
	 Full House Resorts, Inc.

	 4670 South Fort Apache Road Suite

	 190 Las Vegas, Nevada 89147

	 Attn: General Counsel

  

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 I. Severability. The provisions of this Agreement are severable, and if any one or more provisions
is determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions, and any partially unenforceable provision to the extent enforceable, will nevertheless be binding and enforceable. 
 J. Binding Agreement. The rights and obligations of the Company and Executive under this Agreement will be binding upon and inure to the benefit
of, and be enforceable by and against, the parties hereto and their respective heirs, personal representations, and successors and assigns. 
 K. Waiver. Either party’s failure to enforce any provisions of this Agreement will not in any way be construed as a waiver of any such provisions as to any future violations thereof, nor prevent that party thereafter from
enforcing each and every other provision of this Agreement. The rights granted the parties herein are cumulative, and the waiver by a party of any single remedy will not constitute a waiver of such party’s right to assert all other legal
remedies available to his or it under the circumstances. 
 L. Successors. This Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns provided however, that this Agreement is for personal services and is not assignable by Executive. 
 M. Entire Agreement. This Agreement constitutes the entire agreement between the Company and Executive with respect to the subject matter hereof, and may not be modified or terminated orally. No modification, termination or attempted
waiver of this Agreement will be valid unless in writing and signed by the party against whom the same is sought to be enforced. 
 IN WITNESS
WHEREOF, the Executive and the Company, pursuant to the authorization of its Board of Directors, have caused this Agreement to be executed on the date first above written. 
  

									
	 Company:
	  		  	Executive:	 	
				
	 Full House Resorts, Inc
	  		  		 	
					
	 By:
	 	 /s/ Andre Hilliou
	  		  	 /s/ Wes Elam
	 	
		 	 Chief Executive Officer
	  	Wes Elam	 	

  

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 EXECUTIVE EMPLOYMENT 
 APPENDIX “A” 
  

							
	 Executive Name: Wes Elam
	  	Position: Senior Vice President of Operations and Development
		
	 BASE SALARY: $200,000
	  	Annually, paid in equal installments twice per month

 ANNUAL INCENTIVE 
 COMPENSATION (BONUS): 100% of base compensation subject to annual objectives established by the compensation committee as part of the business plan 
 STOCK COMPENSATION: 35,000 Shares of Restricted Stock, which were granted on May 13, 2006 and which vest one-third annually over three years on January 6, 2007, 2008 and 2009 respectively. 
 BENEFITS: 
 Medical insurance for employee in
accordance with company plan as in affect from time to timeArthur J. Gallagher & Co. Deferred Equity Participation Plan

 Exhibit 10.16.1 
 ARTHUR J. GALLAGHER & CO. 
 DEFERRED EQUITY PARTICIPATION PLAN 
 (as amended and restated, effective January 1, 2005) 
 The purpose of this Deferred Equity Participation Plan (the “Plan”) is to provide a facility through which Arthur J. Gallagher & Co. (“AJG”), on behalf of its subsidiaries and affiliates (collectively referred
to as the “Company”), can encourage key executives to stay with the Company until at least the normal retirement date of age 62. The retention of key executives will promote the interests of the Company and its shareholders by providing
continuity of management and leadership, and capitalizing on the investment in training and experience the Company has made in its key executives over the years. The Plan shall be administered as a subplan under the Arthur J. Gallagher &
Co. Restricted Stock Plan for the purpose of granting restricted stock units to such key executives. 
 The Company has formed The Arthur J.
Gallagher & Co. Deferred Equity Trust (the “Trust”), pursuant to the trust agreement dated March 22, 2001, as amended. Between March 15 and June 15 of each calendar year, the Company will contribute to the Trust
either (i) shares of AJG common stock, par value $1.00 per share (“Common Stock”), or (ii) effective March 15, 2007, cash contributions, in either case in an amount approved by the Compensation Committee of the AJG Board of
Directors (the “Annual Funding”). 
 To the extent the Company contributes shares of Common Stock to the Trust, the Trust shall reinvest dividends
on an annual basis in AJG Common Stock. To the extent the Company contributes cash to the Trust, the Trust shall invest such cash in such investments as the Company shall determine from time to time. The AJG Common Stock acquired by the Trust in a
given year, or from the reinvestment of dividends from AJG Common Stock originally acquired in that year, and the cash contributions and all earnings or losses with respect to such contributions shall be referred to as “Trust Assets.” The
trustees of the Trust shall have and may exercise all rights of ownership, including voting control, of the Trust Assets prior to distribution. 
 The
Company shall maintain for the benefit of each executive who participates in the Plan (“Participants”) an unfunded, bookkeeping account (an “Account”). On or before June 15 of each year, the Chief Executive Officer of AJG,
in conjunction with the Compensation Committee, will approve a list of the key executives whose Accounts will be credited with an amount equal to an interest in the Trust Assets acquired with the Annual Funding from that year. The list shall set out
a percentage for each Participant that represents that Participant’s interest in the Trust Assets for that year, and an amount equal to such percentage of the Trust Assets shall be credited to such Participant’s Account. To the extent a
Participant’s Account is deemed invested in shares of Common Stock, such Account shall be credited with such number of additional shares of Common Stock as would be acquired by the reinvestment of each cash dividend payable on the number of
shares that are credited to such Account immediately prior to the payment of such dividend. To the extent a Participant’s Account is deemed invested in cash 

 
contributions, earnings and losses shall be credited to the balance of such Account at a rate determined by the Company from time to time; provided that the
Company may, in its sole discretion, provide for such earnings and losses to be measured by reference to investment funds designated by Participants from time to time, in accordance with rules and procedures established by the Company. 

A Participant shall become vested in his Account upon the earliest to occur of (i) the date on which the Participant attains age 62, (ii) the
Participant’s death, (iii) a termination of the Participant’s employment by the Company because of Disability, as defined below, (iv) a termination of the Participant’s employment by the Company in a manner that entitles the
Participant to receive a severance benefit pursuant to AJG’s Severance Plan, as then in effect, or (v) a Change in Control, as defined below; provided, in each case, that such Participant remains employed by the Company from the date he
received the allocation to his Account until the date on which such Account becomes vested (the “Vesting Date”). For purposes of the Plan, (A) “Disability” shall mean the termination of the Participant’s employment
relationship at a time when the Participant is disabled and qualifies to receive benefits under the Company’s long-term disability plan, and (B) “Change in Control” shall have the meaning ascribed to it in the “Change in
Control” Agreement between the Participant and AJG. 
 In the event a Participant’s employment with the Company terminates prior to such
Participant’s Vesting Date, then the Participant’s Account under the Plan shall be forfeited. Forfeited Trust Assets shall be returned to the Company, and not subject to claim by any Participant. 
 The amount allocated to a Participant’s Account under the Plan shall be distributed or commence to be distributed at one of the following times occurring on or
after the Vesting Date as the Participant shall elect (the “Distribution Date”): (i) the Participant’s Vesting Date, (ii) the six-month anniversary of the date on which such Participant separates from service with the
Company or (iii) the first day of any calendar year beginning after the year in which the Participant attains age 62. If the Participant receives an allocation to his Account at any time after his Distribution Date, such allocation shall be
paid or begin to be paid as of the date on which such allocation is awarded, as though such date were the Distribution Date. The Participant may elect to receive a distribution of his Account in the form of (A) a lump sum payment, (B) in
ten equal annual installments commencing on the Distribution Date, and due on the next nine anniversaries of the Distribution Date or (C) in five equal annual installments commencing on the Distribution Date, and due on the next four
anniversaries of the Distribution Date. The distribution elections for each Participant’s Account shall be made on such forms and subject to such other terms and conditions not inconsistent with this Plan as are required by the Compensation
Committee, and shall be submitted within 30 days after the Participant is first notified in writing of his or her eligibility to Participate in the Plan; provided, however, that each person who is a Participant in the Plan as of December 31,
2007 may make such distribution elections on or before December 31, 2007 in accordance with IRS Notice 2005-1 and proposed regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). If a
Participant dies before such Participant’s distribution has begun or has been paid in full, any unpaid portion of such Participant’s vested Account under the Plan shall be paid in a lump sum, as soon as practicable after the date of such
Participant’s death, to the beneficiary designated by the Participant, or if no beneficiary has been designated, to the Participant’s estate. The portion of each Account, if any, that is deemed invested in shares of Common Stock shall be
distributed 

 
in shares of unrestricted Common Stock and all other distributions under the Plan shall be paid in cash. The number of shares of Common Stock allocated to
each Participant’s Account shall be appropriately adjusted, in the sole discretion of the Board, to reflect any stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation,
spin-off or other similar change in capitalization or event, and the reinvestment of cash dividends. 
 The Company reserves the right to terminate the Plan,
or suspend the Plan for any given calendar year. Upon a termination or suspension of the Plan, the Participant’s Account shall be payable in accordance with the Participant’s payment election and the terms of this Plan; provided, however,
that if the Plan is terminated in connection with a change in control event, within the meaning of Section 409A of the Code and the regulations promulgated thereunder, the Board of Directors of the Company, as constituted immediately prior to
such change in control event, may elect to distribute each Participant’s Account within 30 days before, or within 12 months after, the consummation of such change in control event. Receiving an allocation under the Plan in any year does not in
any way entitle the Participant to receive an allocation in any future year. 
 It is intended that any amounts payable under this Plan will comply with
Section 409A of the Code, and the regulations promulgated thereunder, so as not to subject any Participant to the payment of any interest and tax penalty which may be imposed under Section 409A of the Code, and the Plan shall be
interpreted accordingly, provided, however, that the Company shall not be responsible for any such interest and tax penalties. The timing of the payments or benefits hereunder may be modified to so comply with Section 409A of the Code.

 Participants who attain age 62 on or before December 31, 2005 shall be permitted to revoke the deferral of some or all of their vested amounts
deferred under the Plan and to receive a full distribution of such amounts prior to December 31, 2005.

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