Document:

EX-10.1

Larry A. Frakes

President and Chief Executive Officer

United America Indemnity, Ltd.

First Amendment to 

the Amended and Restated Employment Agreement

RECITALS

On May 10, 2007 (the “Effective Date”), Larry A. Frakes (“Executive”) and United America
Indemnity, Ltd. (the “Company”) entered into an agreement regarding Executive’s employment by the
Company in the capacity of President and Chief Operating Officer (the “Prior Agreement”).

On June 28, 2007, Executive was promoted to President and Chief Executive Officer of the Company.

On February 5, 2008 the Company and Executive amended the Prior Agreement in order to, among
other things, provide for the cancellation and re-grant of certain stock options previously
granted to Executive. The Prior Agreement was amended and restated in its entirety and superseded
in all respects by an Amended and Restated Employment Agreement dated as of February 5, 2008 (the
“Amended and Restated Agreement”).

On August 14, 2009 the Company and Executive have executed this first amendment to the Amended
and Restated Agreement in order to, among other things, provide for the re-set and extended
vesting of certain stock options previously re-granted to Executive and to make other changes by
execution of this First Amendment to the Amended and Restated Agreement (the “Amended
Agreement”).

AMENDED AGREEMENT

	 	1.	 	Paragraph 2.2 of Exhibit A, the Time Vesting Share Option Agreement, of the Amended
and Restated Agreement is hereby amended to make the Exercise Price ELEVEN DOLLARS AND
NINETY CENTS ($11.90).	 

	 	2.	 	Paragraph 2.2 of Exhibit B, the Performance Vesting Share Option Agreement, of the
Amended and Restated Agreement is hereby amended to make the Exercise Price ELEVEN
DOLLARS AND NINETY CENTS ($11.90).	 

	 	 	 	3.	 

1

Paragraph B of the section entitled Time Vesting Options of the Amended and Restated
Agreement is replaced by the following new paragraph:

	 	B.	 	Time Vesting
Options: 12.5% of the Stock Options shall vest on each
of December 31, 2008 December 31, 2010, December 31,
2011, and December 31, 2012 (aggregating 50% of the
Stock Options) if Executive is employed by the
Company and in good standing as of such respective
dates.

	 	4.	 	Section a of Paragraph C entitled Performance Vesting Options of the Amended and
Restated Agreement is replaced by the following new paragraph:	 

	 	C.	 	Performance
Vesting Options:

	 	 	 	a.
An additional 12.5% of the Stock Options shall
provisionally vest on each of December 31, 2008,
December 31, 2010, December 31, 2011 and
December 31, 2012 (aggregating the remaining 50%
of the Stock Options (the “Performance Stock
Options”)) if, in addition to the criteria
described below, on such dates
Executive is employed by the Company
and in good standing. The number of
provisionally vested Performance Stock Options
in respect to a calendar year that shall vest
conclusively shall be determined by multiplying
the number of such provisionally vested
Performance Stock Options by a fraction, the
numerator of which fraction shall equal the
excess over 90 of the Trued-Up Performance Score
for the Target Year inclusive of the date on
which such Performance Stock Options
provisionally vested (capped at ten for this
purpose) and the denominator of which fraction
shall equal ten.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on August 14, 2009.

UNITED AMERICA INDEMNITY, LTD.

	 	 	 
	By /s/ Saul A. Fox	 	/s/ Larry A. Frakes
	SAUL A. FOX 

	 	LARRY A. FRAKES
	Chairman of the Board

	 	

2ex10-1.htm

Exhibit 10.1

FIRST AMENDMENT

TO

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This First Amendment to Second Amended and Restated Employment Agreement, made and entered into effective as of August 15, 2009 (the “Amendment”), amends that certain Second Amended and Restated Employment Agreement dated effective as of January 1, 2009 (the “Original
Agreement”) by and between United Online, Inc. (the “Company”), and Frederic A. Randall, Jr.  Capitalized terms used and not otherwise defined herein shall have the respective meanings set forth in the Original Agreement.

 

RECITALS

WHEREAS, Mr. Randall has been offered and has voluntarily accepted the position of Executive Vice President and Chief Strategy Officer of the Company, effective August 15, 2009, thereby voluntarily relinquishing his position as the Company’s Executive Vice President,
General Counsel and Secretary as of that date; and

WHEREAS, the parties desire to amend the Original Agreement to reflect the change in Mr. Randall’s position and such other revisions to the Original Agreement as are described herein.

NOW, THEREFORE, in consideration of the mutual promises set forth herein, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.          The definition of “Company” as set forth in the recitals of the Original Agreement is hereby removed and replaced in its entirety as follows:

 

“For purposes of this Agreement, the term “Company” shall mean United Online.”

2.          Section 2.1 of the Original Agreement is hereby removed and replaced in its entirety as follows:

 

“Employee shall serve as Executive Vice President and Chief Strategy Officer of the Company.  In this capacity, Employee shall perform such customary, appropriate and reasonable executive duties as are usually performed by the Chief Strategy Officer, including but not limited to strategic
planning and acquisitions, and such duties as are delegated to him from time to time by the Chief Executive Officer of the Company.  Employee shall report directly to the Company’s Chief Executive Officer.”

 

3.          All other references in the Original Agreement to “Executive Vice President and General Counsel” of the Company, including but not limited to the reference in the second paragraph of Section 4.2(e), shall hereafter be deemed to refer to “Executive
Vice President and Chief Strategy Officer.

 

 

 

 

 

 

 

4.     Sections 3.3(c) and 3.3(d) of the Original Agreement are hereby deleted in their entirety.

5.     The term “Competitive Business Activity” in Section 5 of the Original Agreement is hereby removed and replaced in its entirety as follows:

“The term ‘Competitive Business Activity’ shall mean any business, activity or endeavor that the Company or any of its subsidiaries or other affiliates is currently engaged in or that the Company or any of its subsidiaries or other affiliates engages in, or has agreed to acquire or engage in (including, but not
limited to, by merger, asset acquisition or similar transaction), at any time during the period you are employed by the Company, currently including, but not limited to, the business of providing (i) floral and related products and services to consumers and retail florists, as well as to other retail locations offering floral and related products and services, (ii) online social networking services, (iii) online loyalty marketing services and loyalty rewards programs, and/or (iv) Internet access services, Internet
security services, Web hosting services and email.”

6.     The second paragraph of Section 7 of the Original Agreement is hereby deleted in its entirety.

7.      Appendix A attached to the Original Agreement is hereby removed and replaced in its entirety as set forth on Appendix
A attached hereto.

8.      Except as modified by this Amendment, all the terms and provisions of the Original Agreement shall continue in full force and effect.

(Signature Page Follows)

 

 

 
First Amendment to Randall 

Second Amended and Restated Employment Agreement.                                                                           August
15, 2009

2

  

IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment on the date specified therefor below.

 

 

	  	
/s/ Frederic A. Randall, Jr.

	  	  
	  	
Frederic A. Randall, Jr.

	  	
UNITED ONLINE, INC.

	  	  
	  	  
	  	  
	  	By: 	
/s/ Mark R. Goldston

	  	
Mark R. Goldston

	  	
Chairman, President and Chief Executive Officer

 

 

 

First Amendment to Randall 

Second Amended and Restated Employment Agreement.                                                                           August
15, 2009

  

3

  

Appendix A

 

 

“Change in Control” of United Online shall mean a change in ownership or control of United Online effected through any of the following transactions:

 

“United Online” shall mean United Online, Inc., a Delaware corporation, and any successor corporation to all or substantially all of
the assets or voting stock of United Online, Inc.

“Board” shall mean United Online’s Board of Directors.

“1934 Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

(i)      a merger or consolidation approved by United Online’s stockholders, unless securities possessing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly and substantially in the same proportion, by the persons who beneficially owned United Online’s outstanding voting securities immediately prior to such transaction,

 

(ii)     the sale, transfer or other disposition of all or substantially all of United Online’s assets approved by United Online’s stockholders,

 

(iii)     the acquisition, directly or indirectly by any person or related group of persons (other than United Online or a person that directly or indirectly controls, is controlled
by, or is under common control with, United Online), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of United Online’s outstanding securities, or

(iv)      a change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals
who either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination.

 

 

First Amendment to Randall 

Second Amended and Restated Employment Agreement.                                                                           August
15, 2009

                                      

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