Document:

Unassociated Document

    Exhibit
      10.2

    

    WHITE
      RIVER CAPITAL, INC.

     

    DIRECTORS
      STOCK COMPENSATION PLAN

     

    1. Purpose.
      The
      purpose of this Plan is to provide for greater ownership of the Common Shares
      of
      White River Capital, Inc. by Directors of the Corporation in order to provide
      Directors with a more direct and proprietary interest in the welfare and success
      of the Company and its subsidiaries and to encourage their continuation as
      Directors. 

     

    2. Definitions.
      The
      following terms shall have the meanings hereinafter set forth:

     

    
      	 	
              (a)

            	
              “Affiliate”
                means a business entity that is a subsidiary of the
                Company.

            

    

     

    
      	 	
              (b)

            	
              “Board
                of Directors” means the board of directors of the Company as it shall
                exist from time to time.

            

    

     

    
      	 	
              (c)

            	
              “Code”
                means the Internal Revenue Code of 1986, as amended.
                

            

    

     

    
      	 	
              (d)

            	
              “Common
                Shares” means the Common Stock, without par value, of the
                Company.

            

    

     

    
      	 	
              (e)

            	
              “Company”
                means White River Capital, Inc., an Indiana
                corporation.

            

    

     

    
      	 	
              (f)

            	
              “Determination
                Date” for a Plan Year, commencing with the 2006 Plan Year means the third
                business day following the first public release (by press release
                or SEC
                filing) by the Company of annual consolidated financial information
                for
                the Plan Year; provided that the Determination Date for a Plan Year
                shall
                not be later than March 15 of the immediately subsequent Plan
                Year.

            

    

     

    
      	 	
              (g)

            	
              “Director
                Fees” means the total fees payable to a Director for service as a Director
                as determined by the Board of Directors from time to time.
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              (h)

            	
              “Fair
                Market Value” shall mean, as of any date, the value of one share of Common
                Stock determined as follows: 

            

    

     

    If
      the
      Common Stock is listed on any established stock exchange or a national market
      system, including without limitation, the Nasdaq National Market or The Nasdaq
      SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be
      the
      closing sales price for such stock (or the closing bid, if no sales were
      reported) as quoted on such exchange or system for the last market trading
      day
      prior to the time of determination, as reported in The Wall Street Journal
      or
      such other source as the Administrator deems reliable. 

     

    If
      the
      Common Stock is regularly quoted by one or more recognized securities dealers
      but selling prices are not reported, its Fair Market Value shall be the mean
      between the high bid and low asked prices for the Common Stock quoted by such
      recognized securities dealer(s) on the last market trading day prior to the
      day
      of determination; or 

     

    In
      the
      absence of an established market for the Common Stock, its Fair Market Value
      shall be determined by the Administrator in any reasonable manner including,
      for
      example, the valuation method described in § 20.2031-2 of the regulations
      promulgated pursuant to the Code.

     

    
      	 	
              (i)

            	
              “Director”
                means any member of the Board of Directors of the Company.
                

            

    

     

    
      	 	
              (j)

            	
              “Plan”
                means this White River Capital, Inc. Directors Stock Compensation
                Plan.

            

    

     

    
      	 	
              (k)

            	
              “Plan
                Committee” means the individual or group of individuals appointed by the
                Board of Directors as the committee responsible for administration
                of the
                Plan, initially, the Chief Financial Officer of the
                Corporation

            

    

     

    
      	 	
              (l)

            	
              “Plan
                Year” means the twelve month period commencing on January 1 and ending
                on
                December 31 of each year or such other dates as may be established
                by the
                Plan Committee from time to time.

            

    

     

    3. Administration.
      The
      Plan shall be administered by the Plan Committee. The Plan Committee shall
      have
      the power to interpret and construe the provisions of the Plan, and its
      interpretations and constructions shall be final and binding. The Plan Committee
      may prescribe, amend and rescind rules and regulations relative to the Plan
      or
      its construction or interpretation. The initial Plan Committee shall have one
      member, who shall be the Chief Financial Officer of the Company. The Plan
      Committee shall not be liable for any action or determination made in good
      faith.

     

    4. Participation.
      Each
      incumbent Director shall be eligible to participate in the Plan; provided,
      that no
      Director shall be eligible to receive Common Shares under the Plan if, as after
      such receipt, (i) such Director would hold economic ownership of more than
      4.9%
      of the outstanding Common Shares and (ii) such Director was not (prior to
      September 1, 2005) already 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    deemed
      a
      5% shareholder of the Company for purposes of determining the availability
      of
      net operating loss carryforwards under Section 382 of the Code. 

     

    5. Shares.
      The
      shares to be issued pursuant to the Plan shall be the Company’s authorized but
      unissued Common Shares. The total number of the Common Shares that may be issued
      under the Plan shall not exceed fifty thousand (50,000) shares in the aggregate,
      subject to adjustment in accordance with the provisions set forth in paragraph
      6(f) hereof. In the event any Common Shares issuable pursuant to the Plan revert
      to the Company for any reason during the term of this Plan, those Common Shares
      may again be issued under the Plan. During the term of the Plan, the Company
      shall reserve and keep available a sufficient number of Common Shares to satisfy
      its obligations hereunder.

     

    6. Operation
      of the Plan.
      The
      Plan shall operate in accordance with and subject to the following terms and
      conditions: 

     

    
      	 	
              (a)

            	
              Director
                Compensation with Common Shares.
                Fifty percent (50%) of total Director Fees payable to each Director
                eligible to participate in the Plan under Section 4 shall be paid
                in the
                form of Common Shares, subject to the terms and conditions of this
                Plan.
                

            

    

     

    
      	 	
              (b)

            	
              Determination
                of Number of Common Shares.
                The number of Common Shares to become issuable to an eligible Director
                as
                of a Determination Date shall be the largest number of whole shares
                resulting from the division of (i) the dollar amount of the Director
                Fees
                to be paid in the form of Common Shares under paragraph 6(a), by
                (ii) Fair
                Market Value of one Common Share on the Determination Date. No fractional
                shares shall be issued under the Plan and cash shall be paid in lieu
                thereof based upon the Fair Market Value of one Common Share.
                

            

    

     

    
      	 	
              (c)

            	
              Issuance
                of Certificates and Delivery to Directors.

            

    

     

    
      	 	
              (i)

            	
              As
                soon as practicable after the Determination Date following each Plan
                Year,
                and no later than is necessary to avoid such payment being subject
                to
                Section 409A of the Code, the Company shall issue, in the name of
                each
                eligible Director entitled thereto with respect to Director Fees
                payable
                for that Plan Year, a share certificate with respect to the number
                of
                Common Shares determined in the manner provided in this
                Plan.

            

    

     

    
      	 	
              (ii)

            	
              If
                requested by an eligible Director in writing prior to the payment
                date,
                share certificate(s) may be issued jointly to the Director and any
                other
                person or persons.

            

    

     

    
      	 	
              (d)

            	
              Proration.
                If an eligible Director serves as a Company Director for less than
                a full
                Plan Year, then Common Shares payable based on Director Fees that
                would
                have been earned had the Director been incumbent for the full Plan
                Year
                shall be prorated so that the number of Common Shares
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    issuable
      shall be determined based on the portion of the Plan Year during which the
      Director was incumbent relative to the full Year.

     

    
      	 	
              (e)

            	
              Special
                Provision for 2005.
                Notwithstanding any provision of this Section 6 to the contrary,
                with
                respect to the 2005 Plan Year, on the date this Plan is adopted by
                the
                board of directors, each eligible Director shall become entitled,
                as
                compensation under this Plan for director services during 2005, $7,880.43
                divided by the Fair Market Value of one Common Share on the date
                of such
                adoption (representing the proration of $20,000 annual compensation
                initially expected to be payable in shares, for the period of calendar
                2005 following consummation of the Company’s share exchange transaction
                with Union Acceptance Corporation). The Plan Committee shall determine
                the
                number of such shares so issuable and arrange for issuance of such
                shares,
                subject to compliance with Section 6(h), including filing of a
                registration statement with respect to the shares issuable under
                the Plan
                with the Securities and Exchange
                Commission.

            

    

     

    
      	 	
              (f)

            	
              Recapitalization.
                The aggregate number of Common Shares which may be issued hereunder,
                and
                the number of Common Shares subject to issuance, shall be proportionately
                adjusted for any increase or decrease in the number of issued and
                outstanding Common Shares resulting from a subdivision or consolidation
                of
                shares of the Company or any other capital adjustment of the Company,
                the
                payment of a share dividend, a share split or any other increase
                or
                decrease in the Common Shares effected without receipt of consideration
                by
                the Company. 

            

    

     

    
      	 	
              (g)

            	
              Nonassignability.
                No right to receive shares pursuant to this Plan shall be assignable
                or
                transferable except by will or under the laws of descent and distribution.
                

            

    

     

    
      	 	
              (h)

            	
              Issuance
                of Shares and Compliance with Securities Laws.
                The Company may postpone the issuance and/or delivery of certificates
                representing Common Shares until (i) the admission of such shares
                to
                listing on any stock exchange on which shares of the Company of the
                same
                class are then listed or the admission of such shares for quotation
                in any
                automated inter-dealer quotation system in which such shares are
                then
                quoted and (ii) the completion of such registration or other qualification
                of such shares under any state or Federal law, rule or regulation
                or the
                rules and regulations of any exchange upon which the Common Shares
                are
                traded as the Company shall determine to be necessary or advisable,
                which
                registration or other qualification the Company shall use its best
                efforts
                to complete. Any person acquiring Common Shares pursuant to the Plan
                may
                be required to make such representations and furnish such information
                as
                may, in the opinion of counsel for the Company, be appropriate to
                permit
                the Company, in light of the existence or non-existence with respect
                to
                such shares of an effective registration under the Securities Act
                of 1933,
                as amended, or any similar state statute, to issue the shares in
                compliance 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    with
      the
      provisions of those or any comparable acts. Certificates representing Common
      Shares issued pursuant to the Plan may bear such legends or other statements
      concerning restrictions on the transferability of the shares as the Company
      may
      determine to be necessary or advisable to comply with applicable securities
      laws.

     

    
      	 	
              (i)

            	
              Rights
                as a Shareholder.
                An eligible Director shall have no rights as a shareholder with respect
                to
                Common Shares issuable under the Plan until the date of issuance
                of a
                certificate representing those shares after the applicable Determination
                Date. Upon the issuance of a certificate, the shares represented
                thereby
                shall be fully paid and nonassessable Common Shares of the Company,
                the
                Director shall have the power to vote those Common Shares on all
                matters
                presented to a vote of the shareholders of the Company and shall
                be
                entitled to receive all dividends and other distributions declared
                or paid
                by the Company with respect thereto. No adjustment will be made for
                dividends or other rights for which the record date is prior to the
                date
                such certificate is issued.

            

    

     

    7. Term
      of Plan.
      The
      Plan shall become effective as of September 1, 2005. The Plan shall terminate
      on
      December 31, 2010, or on such earlier date as the Board of Directors may
      determine. No Common Shares shall be issued under the Plan after the termination
      date. 

     

    8. Amendment
      of the Plan.
      The
      Board of Directors may from time to time, alter, amend, suspend or discontinue
      the Plan, provided,
      that no
      such change shall affect any Common Shares for which certificates have been
      issued under the Plan without the consent of the Director to whom such shares
      have been issued. 

     

    9. No
      Right to Reelection as a Director.
      Neither
      the adoption of the Plan, the issuance of any Common Shares hereunder, nor
      any
      other action taken relating to the Plan shall impose any obligation on the
      Company or any Affiliate or shareholder or the Board of Directors to nominate
      any Director for reelection as a director by the shareholders of the Company
      or
      any Affiliate.

     

    10. Withholdings.
      The
      Company shall have the right to require a Director to remit to the Company
      amounts sufficient to satisfy any applicable withholding requirements set forth
      in the Code, or under state or local law relating to Common Shares issued to
      that Director. The Company shall have the right, to the extent permitted by
      law,
      to deduct from any payment of any kind otherwise due to an Director who receives
      Common Shares under the Plan any federal, state or local taxes of any kind
      required by law to be withheld with respect to the issuance of those Common
      Shares. Prior to an applicable Determination Date, Director may elect to reduce
      the number of Common Shares to be received by the Director under the Plan in
      order to satisfy any federal, state or local withholding
      obligation.JOINT VENTURE AGREEMENT

     Aduddell Roofing & Sheet Metal, Inc. ("Aduddell") and Carothers
Construction, Inc. ("Carothers") make this Joint Venture Agreement ("Agreement")
effective as of September 2, 2005. Carothers and Aduddell have formed a joint
venture (the "Joint Venture") to perform contract number W912P9-05-D-0518 (the
"Prime Contract") with the United States government (acting through one of more
of its arms/entities) (the "Owner") for repair work and other work related to
Hurricane Katrina. Carothers and Aduddell are at times herein referred to as a
"Party", or, collectively as the "parties." Carothers and Aduddell agree as
follows:

     1. The name of the Joint Venture shall be "Carothers/Aduddell, a Joint
Venture". Neither Party is an agent of the other. The purpose of the Joint
Venture is strictly for performance of the Prime Contract. Subject to Paragraphs
8 and 14, each Party shall have an equal vote for the purpose of any further
decisions.

     2. The Joint Venture must perform all the obligations under the Prime
Contract, with all said obligations herein referred to as the "Prime Contract
Obligations". The Prime Contract Obligations will include, but not necessarily
be limited to, temporary emergency roof repairs and other repair and/or clean-up
work as to homes, buildings, structures and areas damaged and/or affected by
Hurricane Katrina. Carothers shall perform and/or provide the following for the
Prime Contract Obligations: (a) project administration; (1,) Owner
correspondence and communication; (c) requirements analysis and documentation;
(d) data conversion; (e) report writing; (f) submittals; (g) pay requests; and
(h) physical office requirements (with (a) through (h) collectively the
"Carothers Work"). Aduddell shall perform and/or provide the following for the
Prime Contract Obligations: (a) field coordination; (b) construction materials;
(a) construction labor; (d) physical lay down area requirements; sod (e) field
data coordination (with (a) through (e) collectively the "Aduddell Work").
Carothers and the Joint Venture shall execute a subcontract for the Carothers
Work. Aduddell and the Joint Venture shall execute a subcontract for the
Aduddell Work. The Parties believe the above allocation completely divides the
Prime Contract Obligations between them. The Parties shall work together to
resolve responsibility for any Prime Contract Obligations not allocated above.

     3. Carothers shall bear all losses and liabilities associated with the
Carothers Work. Carothers shall indemnify Aduddell for any loss, cost, expense,
liability or other damages (including attorneys' fees, costs and expenses)
suffered by Aduddell directly or indirectly (including but not limited to under
or in relation to any bonds) as a result of any failure by Carothers to perform
any of the Carothers Work or otherwise arising out of or relating to the
Carothers Work, including, but not limited to the failure to pay subcontractors,
suppliers, laborers and the like as to the Carothers Work.

     4. Aduddell shall bear all losses and liabilities associated with the
Aduddell Work. Aduddell shall indemnify Carothers for any loss, cost, expense,
liability or other damages (including attorneys' fees, costs and expenses)
suffered by Carothers directly or indirectly (including, but not limited In
under, or in relation to any bonds) as a result of any failure by Aduddell to
perform any of the Aduddell Work or otherwise arising out of or relating to the
Aduddell Work, including, but not limited to the failure to pay subcontractors,
suppliers, laborers and the like as to the Aduddell Work.

     5. All sums received by the Joint Venture under the Prime Contract shall be
distributed as follows: (a) first $0.05 per square foot to Carothers to
reimburse it for all costs related to bonding and insurance; (b) then second to
indemnify any Party for sums due to it under an indemnification obligation
hereunder; and (c) then third all remaining sums shall be distributed 80% to
Aduddell and 20% to Carothers.

     6. All funds received by or for the benefit of the Joint Venture shall he
deposited promptly in a depository account to be opened and maintained by
Carothers for the benefit of the Joint Venture. Neither Party shall use any
funds of the Joint Venture for any purposes other than those of the Joint
Venture. Both parties shall have signature authority.

     7. Each Party shall be solely responsible for any taxes, fees, or other
charges levied or imposed on it or on its revenues from, or its share of any
profits of or distribution by, the Joint Venture, and with it being further
understood that any such taxes, fees, or charges levied or imposed on the Joint
Venture itself shall be treated as Joint Venture costs and deducted before
distributions under item (c) in Paragraph 5. Likewise, it is anticipated that
due to the assignment of responsibilities as to the Carothers Work and the
Aduddell Work the Joint Venture itself should not ultimately bear any costs or
liability; however, to the extent any costs or liability are ultimately incurred
by the Joint Venture and to the extent same are not the responsibility of
either Party hereunder, then same shall be paid before distribution of sums
under item (c) in Paragraph 5.

     8. If either of the Parties shall voluntarily file a petition under the
bankruptcy laws or similar laws, or file an answer in any involuntary proceeding
admitting bankruptcy, insolvency, or inability to pay debts, or fail to obtain
a vacation or stay of involuntary proceedings brought for reorganization,
dissolution or liquidation of such Party, or if one of them is adjudged
bankrupt, or if a trustee or receiver shall be appointed for any of them or
their property, or if any Party shall make an assignment for the benefit of
creditors, or if an attachment, execution or other judicial seizure of a
material portion of the assets of either Party is ordered and such order is not
discharged or vacated within 10 days, then such party (herein called the
"Insolvent Party") may, at the option of the other Party (the "Performing
Party"), be excluded (in whole or in part), together with its successors,
receivers and other legal representatives, from further participation in the
management and actions of the Joint Venture (and/or from further rights under
its separate subcontract with the Joint Venture), and the Performing Party may
take over the interest of the Insolvent Party (in whole or in. part) in the
Joint Venture (without prejudice to the obligation of the Insolvent Party, or
its successor, receiver or other legal representative to bear its proportionate
and/or obligatory share of any liabilities, and without prejudice to the
Performing Party's equitable adjustment and claim rights set out herein), and
the Performing Party shall in addition have the right to wind up the affairs of
the Joint Venture and carry on and complete the performance of, the Prime
Contract, and the Performing Party shall further have the right to terminate
and/or takeover completion of said Insolvent Party's separate subcontract with
the Joint Venture, all without participation by the Insolvent Party. Regardless,
in the event of any such circumstances, the rights and liabilities of the
Parties shall be equitably adjusted to accommodate for the detriment incurred by
the Performing Party as a result of the above described insolvency or other
financial difficulty of the Insolvent Party, and the Performing Party shall have
a claim against the Insolvent Party, its successors, receiver or other legal
representative for any and all such detriment, and the Insolvent Party, its
successors, receiver or other legal representativeo shall compensate the
Performing Party for such claims. Neither the Insolvent Party nor any successor,
receiver, or other legal representative of the Insolvent Party shall have any
right or claim against the Performing Party or against the funds or other assets
of the Joint Venture except those that may be determined as allowed wader the
equitable adjustment.

     9. Each Party (the "Indemnifying Party") shall indemnify the other Party
against any and all loss, liability, costs, expenses, or damages for injury to
or death of persons or damage to or destruction of property arising out of the
negligence, gross negligence, breach, or willful misconduct of the Indemnifying
Party or of any employee of the Indemnifying Party, but only to the extent that
such loam, liability, or expense is not compensated by insurance carried by the
Joint Venture or by the Party which is so indemnified.

     10. The Joint Venture shall obtain and maintain or the Parties shall obtain
and maintain on behalf of the Joint Venture public liability (bodily injury and
property damage) and such other insurance coverage with such, carriers and for
such limits as may be required by the Prime Contract. Such insurance shall name
both the Joint Venture and both the Parties are insureds. Each Party shall waive
or cause to be waived any rights of subrogation against the other Party with
respect to any insured loan or liability arising out or related to the Party's
performance of the Prime Contract or any related contract except that the
Parties shall retain their rights of indemnity against the other Party as
provided for herein.

     11. Without the agreement of the other Party, no Party may bind the Joint
Venture or the other Party to any commitment, obligation or liability, nor
compromise, release or settle any claim or right ate Joint Venture.

     12. No Party shall give, sell, assign, encumber, pledge, transfer, convey
or in any way dispose of its rights, obligations or interest in the Joint
Venture without the express written consent of the other Party.

     13. All claims and disputes between the Parties arising out of or related
to this Agreement shall be settled by binding arbitration under the Construction
Industry Rules of the American Arbitration Association, and judgment upon the
award rendered may be entered in any court having jurisdiction thereof.

     14. In the event any Party (the Defaulting Party") is in material breach or
default under this Agreement, the Prime Contract and/or its separate subcontract
with the Joint Venture, and such material breach or default is not cured within
10 days after written notice thereof to the other Party (or reasonable action to
cure has not been initiated and continuously and diligently pursued), the other
party (the Non-Defaulting Party") shall have the right to take over and complete
all the obligations of the Prime Contract and/or the Joint Venture; likewise,
said Non-Defaulting Party shall have the right to individually take over,
complete and/or terminate the Defaulting Party's separate subcontract, and/or to
have the Joint Venture take over, complete and/or terminate said separate
subcontract. In the event of any breach or default, the Party committing such
breach or default agrees to indemnify the other Party from and for any and all
losses and damages suffered as a result of same.

     15. The term of the Joint Venture and this Agreement will continue until
each of the following have been satisfied: (a) all obligations and liabilities
of the Joint Venture under and in connection with the Prime Contract have been
carried out or discharged; (b) the Joint Venture has received payment in fall of
all sums due it under the Prime Contract; and (e) a final accounting and
settlement have been made.

     16. This Agreement shall be governed by Mississippi law. If any part of
this Agreement is determined to be invalid or otherwise unenforceable, such
invalidity or enforceability shall in no way affect the remaining parts of this
Agreement and such remaining parts shall continue to be valid and enforceable as
constituting the entire Agreement. This Agreement is binding upon the Parties,
their successors and assigns. This Agreement constitutes the entire agreement
between the Parties concerning its subject matter and supersedes any and all
prior agreements, understandings or undertakings. No Agreement may not be
changed except upon an amendment in writing signed by each Party to be charged.

     IN WITNESS WHEREOF the Parties have executed this Agreement effective as
set forth above.

ADUDDELL ROOFING & SHEET                      CAROTHERS CONSTRUCTION, INC.
METAL, INC.

By:    TIM ADUDDELL                           By:    MATT MILLS
       Tim Aduddell                                  Matt Mills
Its:   President                              Its:   Vice President

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