Document:

exhibit10.28

EXHIBIT 10.28

Employment Release Agreement

This Employment Release Agreement (the “Agreement”) is between UNITED FIRE GROUP, INC., an Iowa corporation (“United Fire”), and DIANNE M. LYONS, a resident of Iowa (“Ms. Lyons”).  

1.Separation Date.  Ms. Lyons’ employment with United Fire ended effective November 14, 2014.  

2.Consideration.  United Fire shall pay Ms. Lyons the gross sum of $426,375.09, less necessary withholdings and deductions.  This consideration will be paid in equal installments beginning on the first payroll date of United Fire that is eight (8) days or more following Ms. Lyons’ signing of this Agreement and ending on the last payroll date of United Fire in December of 2015, provided that Ms. Lyons does not revoke her signature as permitted in Section 10.  If Ms. Lyons should die before all of the payments required under this Section 2 have been made, United Fire agrees to make all remaining payments due and payable after her date of death to Ms. Lyons’ daughter, Kristin Ristine.  Ms. Lyons’ United Fire health, pharmacy and dental insurance benefits will be continued through December 31, 2014.  Ms. Lyons will be able to continue her health and dental insurance coverage as provided by COBRA.  These payments represent consideration in addition to anything of value to which Ms. Lyons is already entitled. 

3.Consulting and Non-Competition.  Ms. Lyons agrees to provide reasonable consulting services to United Fire at its request, and without additional compensation, through March 15, 2015, for up to five (5) hours per week.  Such services will be rendered via telephone, electronic mail or mail.  Ms. Lyons further agrees that prior to January 1, 2016, she will not directly or indirectly engage in competition with United Fire as an employee, independent contractor, consultant, director, or in any other role with any property and casualty insurance company, life insurance company or annuity company in the United States (“Competitive Business”), provided that nothing in this provision shall restrict Ms. Lyons from owning up to five percent (5.0%) of publicly traded stock in one or more public companies engaged in a Competitive Business.  For the avoidance of doubt, the parties agree that Ms. Lyons may serve as an employee, independent contractor, consultant or director of an insurance agency that does not itself issue property and casualty insurance policies, life insurance policies or annuities without violating this Section 3. 

4.Property.  Ms. Lyons agrees to return to United Fire all United Fire property in her possession; provided, however, that United Fire agrees that Ms. Lyons may retain her laptop computer, mobile telephone and mobile telephone number.  Ms. Lyons agrees that United Fire may inspect the laptop computer and mobile telephone to confirm that all United Fire data has been removed therefrom.

5.Releases.  

a. Release by Ms. Lyons.  In consideration of the compensation provided for in this Agreement, Ms. Lyons, for herself and her heirs and assigns, and for any other person acting by or through Ms. Lyons, hereby releases United Fire, its subsidiaries, divisions, predecessors, affiliates, successors and assigns, and their past and present directors, officers, employees and agents from any and all claims, known or unknown, arising in any manner whatsoever from, or in any way related to Ms. Lyons’ employment with United Fire, including but not limited to claims arising under Title VII of the Civil Rights Act of 1964, the Iowa Civil Rights Act, and federal or state common law or statutory claims for wrongful termination, wage claims of any nature (including without limitation any claims for earned wages, vacation pay, sick pay or bonus), expenses owed, tort, breach of contract, defamation, retaliation, 

and any other law, order or regulation pertaining to employment or discrimination in employment, and to the extent permitted by law, agrees not to institute any actions, demands, claims or suits in state or federal court, or with any state, federal or local governmental agency or with any administrative or advisory agency for any claim available at the time of the execution of this Agreement, related in any way to her employment with United Fire.  Ms. Lyons acknowledges that the additional compensation being provided by this Agreement is expressly conditioned upon Ms. Lyons’ execution of this Agreement.  Notwithstanding the foregoing, this Agreement does not release: (i) any claims for breach of this Agreement; (ii) any claims that Ms. Lyons may have for vested benefits or continuation of benefits under COBRA under any United Fire employee benefit plans; (iii) any claims or rights under any equity incentive plans; and (iv) any claims or rights to indemnification, including any rights Ms. Lyons may have under directors’ and officers’ insurance policies and rights or claims of contribution or advances and expenses to which Ms. Lyons is entitled in her capacity as an officer of United Fire under its Bylaws or otherwise.

b.Release by United Fire.  In consideration of the execution by Ms. Lyons of this Agreement, United Fire, for itself and its assigns, hereby releases Ms. Lyons, her heirs and assigns, from any and all claims, known or unknown, arising in any manner whatsoever from, or in any way related to Ms. Lyons’ employment with United Fire, including but not limited to, tort, breach of contract, and any other law, order or regulation, and to the extent permitted by law, agrees not to institute any actions, demands, claims or suits in state or federal court, or with any state, federal or local governmental agency or with any administrative or advisory agency for any claim available at the time of the execution of this Agreement, related in any way to Ms. Lyons’ work for or employment with United Fire; provided, however that this Section 5(b) does not release the following claims: (i) claims for breach of this Agreement; or (ii) claims relating to illegal acts by Ms. Lyons, or intentional or knowing wrongful acts or omissions of Ms. Lyons, in either case to the extent occurring in the performance of her duties and relating to or affecting the internal controls, financial accounting or financial reporting of United Fire or any subsidiary or affiliated company of United Fire, except if and to the extent the subject matter of the claim has been disclosed by Ms. Lyons to the Board of Directors of United Fire prior to the date hereof (collectively, any such acts or omissions are referred to herein as “Undisclosed CFO Matters”).

6.Specific Waiver of Certain Rights and Claims by Ms. Lyons.  In consideration of the compensation provided by United Fire under this Agreement, Ms. Lyons specifically waives any claims which she has or may have under the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, any successor thereto, or any similar law.  Ms. Lyons does not waive any rights or claims that may arise after the date of this Agreement.  Ms. Lyons does not waive the right to participate in any investigation or proceeding.

7.Confidentiality.  Ms. Lyons agrees to keep confidential all information she has gained by virtue of her employment with United Fire.  The foregoing confidentiality obligation shall not extend to information that: (a) is or becomes generally available to the public, other than as a result of a disclosure or other fault by Ms. Lyons or any of Ms. Lyons’ representatives in violation of this Agreement; (b) was rightfully in Ms. Lyons’ possession free of any obligation of confidence before, at or subsequent to the time such Ms. Lyons obtained such information from United Fire; (c) was developed by Ms. Lyons independently of and without reference to any information communicated to Ms. Lyons by United Fire; or (d) was communicated by United Fire to an unaffiliated third party free of any obligation of confidence.   The obligations of this Section 7 shall not prohibit Ms. Lyons from complying with valid legal process (with notice to the Company of receipt of a request or subpoena) or from providing information, in confidence, to her attorneys, accountants or financial advisors.

8.Mutual Non-Disparagement.  Ms. Lyons agrees not to in any way disparage United Fire or any affiliate or representative of United Fire, and agrees not to publish in any way any 

information related to United Fire or any affiliate or representative of United Fire.  United Fire agrees not to in any way disparage Ms. Lyons, and agrees not to publish in any way any information related to Ms. Lyons, except (i) that in the event of an Undisclosed CFO Matter, the foregoing obligation shall not apply to statements of United Fire in any administrative, court or arbitration proceeding or investigation relating thereto, or (ii) to the extent required by law.

9.21-Day Consideration Time Period.  United Fire agrees that Ms. Lyons has twenty-one (21) days from the original date of presentment of this Agreement to consider whether or not to execute this Agreement.  Ms. Lyons acknowledges that she has been advised of that fact and has received advice of counsel concerning the negotiation and execution of this Agreement.

10.Revocation.  Ms. Lyons shall have a period of seven (7) days after signing this Agreement to revoke the Agreement and the Agreement shall not become effective until after this time period has passed.  Ms. Lyons understands that if she revokes this Agreement, all of United Fire’s obligations to her will immediately cease, and United Fire will owe her nothing further under this Agreement.  United Fire will have no obligation to perform the obligations hereunder until the period specified above has passed, without the written revocation of this Agreement by Ms. Lyons delivered to Tim Spain or his designee.  

11.Review by Counsel.  Ms. Lyons has been and is hereby advised of the right to have this Agreement reviewed by legal counsel of her choice at her expense.  

12.No Admission of Liability.  This Agreement is not and shall not in any way be construed as an admission by United Fire, its officers, directors, employees or affiliates, of any unjustified, wrongful or unlawful acts, but constitutes a good faith settlement of disputed claims, and United Fire specifically disclaims any liability to Ms. Lyons on the part of itself, its officers, employees, directors, and affiliates.  The parties have entered into this Agreement for the sole purpose of resolving disputed claims.

13.Certification.  Ms. Lyons certifies that she has reported to or previously advised United Fire, in writing (which for the purposes of this Section 13, shall include electronic mail), of any knowledge she has regarding actual violations of law or regulations by United Fire or any employee of United Fire, including but not limited to those laws and regulations administered by any applicable insurance regulatory body, the DOL, NLRB, SEC, OSHA, EPA, EEOC, or FTC.

14.Understanding of Terms.  Ms. Lyons and United Fire acknowledge that they have read the above and fully understand the terms, nature and effect of this Agreement, which they voluntarily execute in good faith.

12/26/2014                /s/ Dianne M. Lyons                
Date                    DIANNE M. LYONS

UNITED FIRE GROUP, INC.

12/22/2014                By: /s/ Randy A. Ramlo                
Print Name: Randy A. Ramlo
Title: President and CEOsaft_Exhibit_1065

		
			Exhibit 10.65
		

		
			SAFETY INSURANCE GROUP, INC.
2002 MANAGEMENT OMNIBUS INCENTIVE PLAN, AS AMENDED
		

		
			NOTICE OF RESTRICTED STOCK GRANT
FOR RESTRICTED STOCK WITH PERFORMANCE-BASED VESTING
		

		
			You (the “Grantee”) have been granted the following shares of Restricted Stock of Safety Insurance Group, Inc. (the “Company”), par value $0.01 per share (“Share”), pursuant to the Safety Insurance Group, Inc. 2002 Management Omnibus Incentive Plan, as amended (the “Plan”):
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Grantee:

					
					
						 

					
					
						 

				
	
					
						Number of Shares of Restricted Stock Granted:

					
					
						 

					
					
						 

				
	
					
						Per Share Value of Common Stock at Grant:

					
					
						 

					
					
						 

				
	
					
						Date of Grant:

					
					
						 

					
					
						 

				
	
					
						Periods of Restriction:

					
					
						 

					
					
						Subject to the terms of the Plan and the Restricted Stock Award Agreement attached hereto, provided you have not had a Termination of Service on or prior to such date(s) (except under the limited circumstances set forth in Exhibit A), and at least the minimum threshold performance is met, the Periods of Restriction with respect to the Restricted Stock shall lapse, and the Shares shall become free of the forfeiture and transfer restrictions contained in the Restricted Stock Award Agreement, as follows:  See Exhibit A, which is attached to and made part of this document.

				

		
			 
		

		
			By the signature of the Company’s representative below and your grant award acceptance via the Company’s Easi portal internet site, you and the Company agree that the Restricted Stock evidenced hereby is granted under and governed by the terms and conditions of the Plan and the Restricted Stock Award Agreement, both of which are attached to and made a part of this document.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						SAFETY INSURANCE GROUP, INC.:

				
	
					
						 

					
					
						 

					
					
						By:  

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:  

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Date:  

					
					
						 

				

		
			 
		

		

		

		 

 

		
		

		
			EXHIBIT A
		

		
			VESTING SCHEDULE FOR RESTRICTED STOCK
INTENDED TO BE SUBJECT TO THE PERFORMANCE-BASED EXCEPTION
		

		
			PERFORMANCE PERIOD. The “Performance Period” shall be the period commencing on January 1, 2015, and ending on December 31, 2017, except as otherwise specified below.
		

		
			VESTING DATE. Except as otherwise specified below in connection with a Termination of Service, the Restricted Stock shall vest on the day the Committee certifies in writing the attainment of the performance measures described below.
		

		
			AMOUNT OF PAYMENT. Subject to modification in connection with a Termination of Service, as specified below, the number of Shares that shall become free of the forfeiture and transfer restrictions contained in the Restricted Stock Award Agreement on the Vesting Date is determined by multiplying the Number of Shares of Restricted Stock Granted, as set forth in the Notice of Restricted Stock Grant, by the Final Payout Percentage, as defined below and determined and certified by the Committee, rounding up to the nearest whole Share (the “Shares Earned”).
		

		
			EFFECT OF TERMINATION OF SERVICE. Except as otherwise expressly set forth below, in the event of the Grantee’s  Termination of Service for any reason before the end of the Performance Period, whether voluntary or involuntary (including for Good Reason or without Cause), all unvested Restricted Stock shall be immediately forfeited without consideration.
		

			
	
			
				 (a)
			DEATH OR DISABILITY. If, during the Performance Period, the Grantee’s Termination of Service occurs because of the Grantee’s death or Disability, the Restricted Stock shall not be forfeited on the date of Termination of Service, but the number of Shares Earned shall be equal to (i) the number of Shares Earned determined based on actual attainment of the performance measures as of the  Performance Period that ends on the last day of the Company’s fiscal year during which the Termination of Service occurs multiplied by (ii) a fraction, the numerator of which is the number of months (rounded up to the next integer) from the beginning of the Performance Period until the date of Termination of Service, and the denominator of which is 36. 

			
	
			
				 (b)
			TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL. If, during the Performance Period, and upon or within 24 months after a Change in Control, the Grantee’s Termination of Service is by the Company (or its successor) for any reason other than Cause or Disability or by the Grantee for Good Reason, any Restricted Stock that is outstanding or assumed or substituted and remained outstanding after the Change in Control shall not be forfeited and shall vest as of the date of Termination of Service, but the number of Shares Earned shall be equal to 100% of the Number of Shares of Restricted Stock Granted, as set forth in the Notice of Restricted Stock Grant. 

			
	
			
				 (c)
			TERMINATION IN CONNECTION WITH RETIREMENT. If, during the Performance Period, the Grantee’s Termination of Service occurs because of the Grantee’s retirement after attaining age 62 with at least 10 years of service with the Company, the 

		

		

		 

 

		
		

		
			Restricted Stock shall not be forfeited on the date of Termination of Service, but the number of Shares Earned shall be equal to (i) the number of Shares Earned determined based on actual attainment of the performance measures as of the end of the Performance Period multiplied by (ii) a fraction, the numerator of which is the number of months (rounded up to the next integer) from the beginning of the Performance Period until the date of Termination of Service, and the denominator of which is 36.
		

		
			DEFINITIONS. Capitalized terms used in this Vesting Schedule are defined below or in the Notice of Restricted Stock Grant, the Restricted Stock Award Agreement, or the Plan:
		

			
	
			
				 (a)
			“Average Price” means the average official closing price per Share over the 20-consecutive-trading days ending with and including the applicable day (or, if there is no official closing price on that day, the last trading day before that day).

			
	
			
				 (b)
			“Combined Ratio” means, with respect to the Company, the sum of the loss ratio (losses and loss adjustment expenses incurred as a percent of net earned premiums) plus the expense ratio (underwriting and other expenses as a percent of net earned premiums), calculated on a GAAP basis, as reported in the Company’s filings with the Securities and Exchange Commission.

			
	
			
				 (c)
			“Combined Ratio Percentage” means the percentage that corresponds to the Company’s average Combined Ratio for the Performance Period, as specified below:

			
					
						 

					
					
						 

				
	
					
						Company’s Combined Ratio

					
					
						Combined Ratio Percentage

				
	
					
						95.6% and below

					
					
						200.0%

				
	
					
						97.5%

					
					
						150.0%

				
	
					
						99.5%

					
					
						100.0%

				
	
					
						102.0%

					
					
						75.0%

				
	
					
						104.6%

					
					
						50.0%

				
	
					
						above 104.6%

					
					
						0.0%

				

		
			Between the levels specified above, the Combined Ratio Percentage is interpolated linearly, rounding to one decimal place. Without changing anything in the foregoing, the following is a graphical representation of the Combined Ratio Percentage:
		

			
	
			
				 (d)
			“Final Payout Percentage” means the percentage that results from the sum of (1) the Combined Ratio Percentage times 60% plus (2) the TSR Percentage times 40%. Without changing anything in this Vesting Schedule, the following chart shows how the Final Payout Percentage is to be calculated:

		

		

		 

 

		
		

			
					
						   Performance Level   

					
					
						SAFT
  Combined  
Ratio

					
					
						  Payout as  
% of
Target

					
					
						 

					
					
						 

					
					
						 

					
					
						Relative 3-Year
TSR

					
					
						Payout as
% of
Target

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Below Threshold

					
					
						>104.6%

					
					
						0%

					
					
						 

					
					
						 

					
					
						 

					
					
						> 90th Percentile

					
					
						200%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Threshold

					
					
						104.6%

					
					
						50%

					
					
						 

					
					
						 

					
					
						 

					
					
						90th Percentile

					
					
						200%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Intermediate < Target

					
					
						102.0%

					
					
						75%

					
					
						

					
					
						60%

					
					
						 

					
					
						70th Percentile

					
					
						150%

					
					
						

					
					
						40%

					
					
						

					
					
						Ultimate

				
	
					
						Target

					
					
						99.5%

					
					
						100%

					
					
						Weighting

					
					
						 

					
					
						50th Percentile

					
					
						100%

					
					
						Weighting

					
					
						Payout

				
	
					
						Intermediate > Target

					
					
						97.5%

					
					
						150%

					
					
						 

					
					
						 

					
					
						 

					
					
						40th Percentile

					
					
						75%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Maximum

					
					
						95.6%

					
					
						200%

					
					
						 

					
					
						 

					
					
						 

					
					
						30th Percentile

					
					
						50%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Above Maximum

					
					
						<95.6%

					
					
						200%

					
					
						 

					
					
						 

					
					
						 

					
					
						< 30th Percentile

					
					
						0%

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
	
			
				 (e)
			 “Performance Peer Company” means each company listed below, and each Performance Peer Company’s successor, so long as each Performance Peer Company has a class of common securities listed for public trade on a national securities exchange or market from the beginning through the end of the Performance Period:

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Allstate Corporation

					
					
						16.

					
					
						Universal Insurance

				
	
					
						2.

					
					
						Travelers Companies, Inc.

					
					
						17.

					
					
						Mercury General Corporation

				
	
					
						3.

					
					
						Loews Corporation

					
					
						18.

					
					
						Navigators Group Inc.

				
	
					
						4.

					
					
						CNA Financial Corporation

					
					
						19.

					
					
						United Fire Group, Inc.

				
	
					
						5.

					
					
						Chubb Corporation

					
					
						20.

					
					
						Employers Holdings, Inc.

				
	
					
						6.

					
					
						Progressive Corp.

					
					
						21.

					
					
						State Auto Financial Corp.

				
	
					
						7.

					
					
						W.R. Berkley Corporation

					
					
						22.

					
					
						Meadowbrook Insurance Group Inc.

				
	
					
						8.

					
					
						Old Republic International Corp.

					
					
						23.

					
					
						Infinity Property and Casualty Corp.

				
	
					
						9.

					
					
						Cincinnati Financial Corp.

					
					
						24.

					
					
						National Interstate Corporation

				
	
					
						10.

					
					
						Erie Indemnity Company

					
					
						25.

					
					
						Donegal Group Inc.

				
	
					
						11.

					
					
						White Mountains Insurance Group, Inc.

					
					
						26.

					
					
						EMC Insurance Group Inc.

				
	
					
						12.

					
					
						Hanover Insurance Group, Inc.

					
					
						27.

					
					
						Hilltop Holdings Inc.

				
	
					
						13.

					
					
						Markel Corp.

					
					
						28.

					
					
						Baldwin & Lyons Inc.

				
	
					
						14.

					
					
						Horace Mann Educators Corp.

					
					
						29.

					
					
						Hallmark Financial Services Inc.

				
	
					
						15.

					
					
						Selective Insurance Group Inc.

					
					
						 

					
					
						 

				

		
			 
		

			
	
			
				 (f)
			“TSR” means total shareholder return, which is the percentage that results from the difference between (i) the quotient determined by dividing (A) the sum of (I) the cumulative amount of cash dividends for the Performance Period, plus (II) the Average Price at the end of the Performance Period by (B) the Average Price at the beginning of the Performance Period, which quotient is raised to the power of the result of one divided by the number of the Company’s fiscal years ending with or within the Performance Period, minus (ii) one. TSR expressed as a formula is as follows:

		
			TSR = [(Cumulative Dividends + Average PriceEnd)/Average PriceBeginning](1/no. of yrs.) - 1
		

			
	
			
				 (g)
			“TSR Percentile Ranking” means the Company’s percentile ranking relative to the Performance Peer Companies, based on TSR, calculated as follows (rounded up to the nearest whole percentile):

		
			1 – [(Company Rank – 1)/(Total Number of Performance Peer Companies + the Company – 1)]
		

		
			For example, if the Company is ranked third out of a group of 13 consisting of the 12 Performance Peer Companies plus the Company, the TSR Percentile Ranking is calculated as 1 – 
		

		

		

		 

 

		
		

		
			[(3 – 1)/(12 + 1 – 1)] or 1 – (2/12) or 1 – 0.1667 or the 83rd percentile. The Company’s rank is determined by ordering the Performance Peer Companies and the Company from highest to lowest based on TSR for the Performance Period and counting down from the entity with the highest TSR (ranked first) to the Company’s position on the list. If two entities are ranked equally, the ranking of the next entity shall account for the tie, so that if one entity is ranked first and two entities are tied for second, the next entity is ranked fourth.
		

			
	
			
				 (h)
			“TSR Percentage” means the percentage that corresponds to the TSR Percentile Ranking, as specified below, except that if the percentage that results from the formula is greater than 100%, but the Company’s TSR is negative, then the TSR Percentage shall be 100%, regardless of the result of such formula:

			
					
						 

					
					
						 

				
	
					
						TSR Percentile Ranking

					
					
						TSR Percentage

				
	
					
						90th and above

					
					
						200.0%

				
	
					
						70th

					
					
						150.0%

				
	
					
						50th

					
					
						100.0%

				
	
					
						40th

					
					
						75.0%

				
	
					
						30th

					
					
						50.0%

				
	
					
						below 30th

					
					
						0.0%

				

		
			 
		

		

		

		 

 

		
		

		
			SAFETY INSURANCE GROUP, INC.
RESTRICTED STOCK AWARD AGREEMENT
FOR RESTRICTED STOCK WITH PERFORMANCE VESTING
		

			
	
			
				 SECTION 1.
			

			
	
			
			GRANT OF RESTRICTED STOCK

			
	
			
				 (a)
			

			
	
			
			RESTRICTED STOCK. On the terms and conditions set forth in the Notice of Restricted Stock Grant and this Restricted Stock Agreement (the “Agreement”), the Company grants to the Grantee on the Date of Grant the Restricted Stock set forth in the Notice of Restricted Stock Grant. The Restricted Stock Award is granted in respect of past services and services to be performed. It has been determined that the value of the past services performed by the Grantee equals or exceeds the par value of the Shares subject to this Agreement.

			
	
			
				 (b)
			

			
	
			
			PLAN AND DEFINED TERMS. The Restricted Stock is granted pursuant to the Plan, a copy of which the Grantee acknowledges having received. All terms, provisions, and conditions applicable to the Restricted Stock set forth in the Plan and not set forth herein are hereby incorporated by reference herein. To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern. All capitalized terms that are used in the Notice of Restricted Stock Grant or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.

			
	
			
				 SECTION 1.
			

			
	
			
			FORFEITURE AND TRANSFER RESTRICTIONS

			
	
			
				 (a)
			

			
	
			
			FORFEITURE RESTRICTIONS.  Unless otherwise specified in the Notice of Restricted Stock Grant, Article 9 of the Plan shall govern the forfeiture to the Company of Shares of Restricted Stock upon Termination of Service.

			
	
			
				 (b)
			

			
	
			
			TRANSFER RESTRICTIONS. The Restricted Stock may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent such Shares are subject to a Period of Restriction.

			
	
			
				 (c)
			

			
	
			
			LAPSE OF RESTRICTIONS. The Period of Restriction shall lapse as to the Restricted Stock in accordance with the schedule set forth in the Notice of Restricted Stock Grant. Subject to the terms of the Plan and Section 4(a) hereof, upon lapse of the Period of Restriction, the Grantee shall own the Shares that are subject to this Agreement free of all restrictions otherwise imposed by this Agreement.

			
	
			
				 SECTION 2.
			

			
	
			
			DIVIDENDS, VOTING RIGHTS AND CUSTODY

		
			The Grantee shall be entitled to vote and receive dividends on the Shares subject to this Agreement; provided, however, that no dividends shall be payable to the Grantee, and the Grantee will not be entitled to vote Shares of Restricted Stock, with respect to record dates occurring prior to the Date of Grant or with respect to record dates occurring on or after the date, if any, on which the Grantee has forfeited those Shares of Restricted Stock. Notwithstanding the foregoing, any dividends or distributions with respect to the Restricted Stock shall be credited to the Grantee’s book-entry account and shall be subject to the same restrictions as the Shares of Restricted Stock and shall otherwise be considered Restricted Stock for all purposes under this Agreement unless and until the Periods of Restriction lapse. For the avoidance of doubt, no portion of the dividends or distributions credited to the Grantee’s book-entry account shall be paid unless and until the Periods of Restriction lapse. The Shares subject to this Agreement shall be registered in the name of the Grantee and held in custody by the Company.
		

			
	
			
				 SECTION 3.
			

			
	
			
			MISCELLANEOUS PROVISIONS

			
	
			
				 (a)
			

			
	
			
			TAX WITHHOLDING. The Company may make such provisions as are necessary for the withholding of all applicable taxes on the Restricted Stock, in accordance with Article 16 of the Plan. With

		

		

		 

 

		
		

		
			respect to the minimum statutory tax withholding required with respect to the Restricted Stock, the Grantee may elect to satisfy such withholding requirement by having the Company withhold Shares from this Award.
		

			
	
			
				 (b)
			

			
	
			
			RECOUPMENT POLICY. Notwithstanding anything to the contrary in this Agreement, all Restricted Stock payable (including any dividends or distributions with respect to the Restricted Stock) shall be subject to any recoupment policy adopted by the Company from time to time (including, but not limited to, any policy adopted in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law), regardless of whether the policy is adopted after the date on which the Restricted Stock are granted or the Periods of Restriction lapse.

			
	
			
				 (c)
			

			
	
			
			RATIFICATION OF ACTIONS. By accepting this Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement and Notice of Restricted Stock Grant by the Company, the Board, or the Committee.

			
	
			
				 (d)
			

			
	
			
			NOTICE. Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address that he or she most recently provided in writing to the Company.

			
	
			
				 (e)
			

			
	
			
			CHOICE OF LAW. This Agreement and the Notice of Restricted Stock Grant shall be governed by, and construed in accordance with, the laws of New York, as such laws are applied to contracts entered into and performed in such state.

			
	
			
				 (f)
			

			
	
			
			COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

			
	
			
				 (g)
			

			
	
			
			MODIFICATION OR AMENDMENT. This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 4.2 of the Plan may be made without such written agreement.

			
	
			
				 (h)
			

			
	
			
			SEVERABILITY. In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.

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