Document:

WRB 6.30.2015 EX 10.1

Exhibit 10.1
DIVIDEND-EQUIVALENT RIGHTS AWARD AGREEMENT 
Under the W. R. Berkley Corporation 2012 Stock Incentive Plan
THIS AGREEMENT, dated as of July 1, 2015, by and between W. R. BERKLEY CORPORATION, a Delaware corporation (the “Company”), and grantee as set forth on Exhibit A hereto (the “Grantee”).
W I T N E S S E T H:
WHEREAS, the Grantee is an employee of the Company or subsidiary thereof;
WHEREAS, the Grantee has previously been granted performance-based restricted stock units pursuant to a Performance-Based Restricted Stock Unit Agreement (the “PRSU Award Agreement”); and
WHEREAS, the Company wishes to grant the Grantee dividend equivalent rights (collectively, the “Dividend Equivalent Rights”) as an “other stock-based award” pursuant to Section 10 of the W. R. Berkley Corporation 2012 Stock Incentive Plan, as amended and in effect from time to time (the “Plan”), with respect to shares of the Company’s common stock, par value $0.20 per share (the “Stock”) that may be earned by the Grantee pursuant to the PRSU Award Agreement.  
NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties hereto hereby agree as follows:  
SECTION 1.Grant of Dividend Equivalent Rights.  The Company hereby grants to the Grantee Dividend Equivalent Rights, a portion of which shall be designated as Tranche 1 Dividend Equivalent Rights and a portion shall be designated as Tranche 2 Dividend Equivalent Rights, as set forth on Exhibit A.  Each vested Dividend Equivalent Right entitles the Grantee to a cash payment as specified in Section 4 equal to the sum of any cash dividends paid by the Company in respect of one share of Stock during the periods set forth in Section 4, subject to the terms and conditions set forth in this Agreement and in the Plan.  
SECTION 2.    Non‐Transferability.  Except as specifically consented to by the Committee, the Grantee may not sell, transfer, pledge, or otherwise encumber or dispose of the Dividend Equivalent Rights other than by will, the laws of descent and distribution, or as otherwise provided for in the Plan. 
SECTION 3.    Vesting; Forfeiture; Recapture; Other Remedies.
(a)    Following the completion of the Performance Period, the Committee shall determine the Average Return on Equity, the ROE Relative Performance, the ROE Relative Performance Vesting Percentage, the portion of the Tranche 1 Dividend Equivalent Rights that have become earned (determined by multiplying the number of Tranche 1 Dividend Equivalent Rights subject to this Agreement by the ROE Relative Performance Vesting Percentage) and the 

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portion of the Tranche 2 Dividend Equivalent Rights that have become earned (determined by multiplying the number of Tranche 2 Dividend Equivalent Rights subject to this Agreement by the ROE Relative Performance Vesting Percentage).  Immediately following the Committee’s determination of the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights, the earned Dividend Equivalent Rights shall vest (subject to forfeiture, as set forth in Section 3(e) below), provided the Grantee has remained continuously employed by the Company from the date hereof through the completion of the Performance Period.  Dividend Equivalent Rights granted herein which have not become vested Dividend Equivalent Rights following the completion of the Performance Period or otherwise vested shall be immediately forfeited without payment of any consideration and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights.  The Company will make no payments to the Grantee with respect to Dividend Equivalent Rights unless and until their Vesting Date. 
(b)    In the event that Grantee’s employment with the Company is terminated for any reason, all unvested Dividend Equivalent Rights (except for those that vest immediately as provided in Sections 3(c), 3(d) and 3(i) below) shall be forfeited, and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights.  For purposes of this Agreement, Grantee’s employment will be considered terminated as of the date Grantee is no longer actively providing services to the Company (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Grantee is employed or the terms of Grantee’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, Grantee’s right to continue to vest in the Dividend Equivalent Rights granted hereunder, if any, will terminate as of such date and will not be extended by any notice period arising under local law or contract (e.g., unless Grantee is actively providing substantial services during any notice period as required by the Company.  However, Grantee’s period of service would not include any contractual notice period or any period of “garden leave” or similar period arising under employment laws in the jurisdictions where Grantee is employed or the terms of Grantee’s employment agreement, if any).
(c)    In the event the Grantee’s employment with the Company is terminated on account of death or Disability prior to the completion of the Performance Period, the number of earned Tranche 1 Dividend Equivalent Rights and earned Tranche 2 Dividend Equivalent Rights shall be immediately determined in accordance with Section 3(a) assuming the Company achieved the target level of ROE Relative Performance for the Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights that become vested shall be determined by multiplying the number of earned Dividend Equivalent Rights by a fraction, the numerator of which is the number of days the Grantee served as an employee from August 5, 2014 to the date of such termination and the denominator of which is 1,825.
(d)    In the event the Grantee’s employment with the Company is terminated for any reason (other than on account of the Grantee’s death or Disability or by the Company for Cause) (i) prior to the completion of the 2018 Performance Period but following the completion of the 

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2017 Performance Period, for purposes of this Section 3(d) the Performance Period shall be the 2017 Performance Period, the number of earned Tranche 1 Dividend Equivalent Rights that become vested shall be determined in accordance with Section 3(a), the number of earned Tranche 2 Dividend Equivalent Rights shall be zero (0) and all Tranche 2 Dividend Equivalent Rights shall be immediately forfeited without payment of any consideration, and (ii) prior to the completion of the Performance Period but following the completion of the 2018  Performance Period, for purposes of this Section 3(d) the Performance Period shall be the 2018  Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights that become vested shall be determined in accordance with Section 3(a).
(e)    The Dividend Equivalent Rights granted hereunder shall be subject to the following forfeiture, recapture and other remedial provisions as provided below:
		
	A.
	In the event that the Committee determines that the Grantee, prior to the Vesting Date during Grantee’s employment, has engaged in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in a Competitive Action or has engaged in Misconduct, all of the unvested Dividend Equivalent Rights granted hereunder shall be immediately forfeited, and the Grantee shall have no further rights with respect to such Dividend Equivalent Rights.

		
	B.
	In the event that the Committee determines that the Grantee, (1) on or after the Vesting Date during Grantee’s employment or for a period of one year following Grantee’s termination of employment for any reason, has engaged in a Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action, or (2) on or after the Vesting Date, has engaged in Misconduct, or prior to the Vesting Date Grantee has engaged in Misconduct that is not discovered or acted upon by the Company until on or after the Vesting Date, the Grantee shall pay to the Company, upon demand by the Company, an amount equal to all amounts paid to Grantee pursuant to Section 4 in respect of vested Dividend Equivalent Rights.  

		
	C.
	Grantee acknowledges that engaging in (1) a Competitive Action during the Noncompete Period within the geographic areas set forth in Section 3(f) below or (2) Misconduct is contrary to the interests of the Company and would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified.  Grantee acknowledges that retaining the amounts required to be paid to the Company pursuant to this Section 3(e) once Grantee has (x) chosen to engage in or to agree to engage in a Competitive Action or (y) engaged in Misconduct is contrary to the interests of the Company.  The amounts forfeited or paid to the Company hereunder do not and are not intended to constitute actual or liquidated damages.  Any action or inaction by the Company with respect to enforcing the forfeiture or recapture provisions set forth herein shall not reduce, eliminate or in any way 

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affect the Company’s right to enforce the forfeiture or recapture provisions in any other agreement with Grantee.
		
	D.
	The term “Noncompete Period” as used herein shall mean the period beginning on the date hereof and ending one year following Grantee’s termination of employment for any reason. 

		
	E.
	Furthermore, if the Grantee engages in Misconduct or Competitive Action or has entered into an agreement (written, oral or otherwise) to engage in a Competitive Action during the Noncompete Period, then the Company shall be entitled to, and reserves the right to, pursue any other legal or equitable remedies in addition to the right to receive forfeitures and/or payments pursuant to this Section 3(e), including, but not limited to, the recovery of monetary damages resulting from such action set forth in Section 3(f) and injunctive relief

(f)    For purposes of this Agreement, the Grantee has engaged in a “Competitive Action” if, either directly or indirectly, and whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise, the Grantee (i) who was employed by W. R. Berkley Corporation, engages in or directs any business activities, in or directed into any geographical area where the Company is engaged in business, which are competitive with any business activities conducted by the Company in such geographical area, (ii) who was employed by a subsidiary or subsidiaries of the Company, engages in or directs any business activities, in or directed into any geographical area where such subsidiary, or subsidiaries that previously employed Grantee, is or are engaged in business or outside of any such geographical area, in either case, which are competitive with any business activities conducted by such subsidiary or subsidiaries in such geographical area, (iii) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company, solicits or induces, or in any manner attempts to solicit or induce, any person employed by, or as an agent or producer of, the Company to terminate such person’s employment, agency or producer relationship, as the case may be, with the Company, (iv) diverts, or attempts to divert, any person, concern or entity from doing business with the Company or attempts to induce any such person, concern or entity to cease being a customer of the Company, (v) solicits the business of the Company or (vi) makes use of, or attempts to make use of, the Company’s property or proprietary information, other than in the course of the performance of services to the Company or at the direction of the Company.  The determination as to whether the Grantee has engaged in a Competitive Action shall be made by the Committee in its sole and absolute discretion.  The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Grantee has engaged in a Competitive Action, recapture or forfeiture as provided herein shall not occur.  The Committee’s exercise or nonexercise of its discretion with respect to any particular event or occurrence by or with respect to the Grantee or any other recipient of dividend equivalent rights shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Grantee constitutes engaging in a Competitive Action or (ii) determine the related Competitive Action date.

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(g)    For purposes of this Agreement, the Grantee has engaged in “Misconduct” if the Grantee, during Grantee’s employment with the Company, has engaged in an act which would, in the judgment of the Committee, constitute fraud that could be punishable as a crime or embezzlement against either the Company or one of its subsidiaries.  The determination as to whether the Grantee has engaged in Misconduct shall be made by the Committee in its sole and absolute discretion.  The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Grantee has engaged in Misconduct, recapture or forfeiture as provided herein shall not occur.  The Committee’s exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Grantee or any other recipient of dividend equivalent rights shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Grantee constitutes an act of Misconduct or (ii) determine the related Misconduct date.
(h)    The Grantee hereby agrees to notify the Company within ten (10) days of commencing any employment or other service provider relationship with any company or business during the Noncompete Period, specifying in reasonable detail (i) the name of such company or business and the line of business in which it is engaged, and (ii) the Grantee’s position or title and the types of services to be rendered by the Grantee in such position or title.  The Grantee hereby acknowledges that this notice requirement is reasonable and necessary for the Company to enforce the provisions of Sections 3(e) hereof.  Furthermore, if the Grantee fails to so notify the Company, the Grantee shall be required to repay (at the Committee’s sole discretion) to the Company the amounts described in Section 3(e) hereof as if the Grantee had engaged in a Competitive Action during the Noncompete Period, unless the Grantee can provide dispositive evidence, which shall be determined in the Committee’s sole discretion, that a Competitive Action did not occur.
(i)    In the event of a Change in Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges, in the event that the Grantee’s employment with the Company is terminated (i) by the Company without Cause or (ii) by the Grantee for Good Reason, in each case during the eighteen (18) month period following such Change in Control, the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights shall be immediately determined assuming the Company achieved the target level of ROE Relative Performance for the Performance Period and the number of earned Tranche 1 Dividend Equivalent Rights and Tranche 2 Dividend Equivalent Rights shall immediately become vested Dividend Equivalent Rights.  All vested Dividend Equivalent Rights shall be paid in accordance with Section 4.
SECTION 4.    Payment.  Upon the vesting of the Dividend Equivalent Rights, the Grantee will be entitled to and promptly shall (and in no event later than thirty (30) days after such Vesting Date) receive a lump-sum cash payment (if any) equal to:
(a)    with respect to the vested Tranche 1 Dividend Equivalent Rights, the sum of all cash dividends paid by the Company in respect of one share of Stock following July 1, 2017 

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through the Vesting Date multiplied by the number of vested Tranche 1 Dividend Equivalent Rights; and
(b)    with respect to the vested Tranche 2 Dividend Equivalent Rights, the sum of all cash dividends paid by the Company in respect of one share of Stock following July 1, 2018 through the Vesting Date multiplied by the number of vested Tranche 2 Dividend Equivalent Rights.
SECTION 5.    Rights of Stockholder.  Neither the Grantee nor any transferee will have any rights as a stockholder with respect to any Dividend Equivalent Rights granted pursuant to this Agreement.
SECTION 6.    Company, Grantee.
(a)    The term “Company” as used in Section 3 or otherwise in this Agreement with reference to the Grantee’s employment shall include the Company and its subsidiaries.  The term “subsidiary” as used in this Agreement shall mean any subsidiary of the Company within the meaning of Section 424(f) of the Code.
(b)    Whenever the word “Grantee” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom the Dividend Equivalent Rights may be transferred by will or by the laws of descent and distribution, the word “Grantee” shall be deemed to include such person or persons.
SECTION 7.    Compliance with Law.  Notwithstanding any of the provisions hereof, the Grantee hereby agrees and the Company will not be obligated to make any payment to Grantee hereunder, if such payment will constitute a violation by the Grantee or the Company of any provision of any law or regulation of any governmental authority.  Any determination in this connection by the Committee will be final, binding and conclusive.  The Company shall in no event be obliged to register any securities pursuant to the Securities Act or to take any other affirmative action in order to cause the grant of Dividend Equivalent Rights hereunder to comply with any law or regulation of any governmental authority.
SECTION 8.    Notice.  Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided, provided that, unless and until some other address be so designated, all notices or communications by the Grantee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices or communications by the Company to the Grantee may be given to the Grantee personally or may be mailed to Grantee at the Grantee’s last known address, as reflected in the Company’s records.
SECTION 9.    Changes in Capital Structure. The existence of this Agreement will not affect in any way the right or power of the Company or its stockholders to make or authorize any of the following:

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(a)    any adjustments, recapitalization, reorganizations or other changes in the Company’s capital structure or its business; 
(b)    any merger or consolidation of the Company;
(c)    any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred to prior preference stocks ahead of or affecting the Stock or the rights thereof or convertible into or exchangeable for Stock; 
(d)    the dissolution or liquidation of the Company; 
(e)    any sale or transfer of all or any part of its assets or business; or
(f)    any other corporate act or proceeding.    
SECTION 10.    Other Share Issues.  Except as expressly provided in the Plan, the issue by the Company of shares of stock of any class, or securities convertible into or exchangeable for shares of stock of any class, for cash, property or services, either upon direct sale or upon the exercise of options, rights or warrants, or upon conversion of shares or obligations of the Company convertible into such shares or other securities will not affect, and no adjustment by reason thereof will be made with respect to, the number of Dividend Equivalent Rights granted pursuant to this Agreement.
SECTION 11.    Withholding.  At the time of vesting and/or payment in respect of the Dividend Equivalent Rights, as appropriate, the Committee shall require the Grantee to pay to the Company an amount sufficient to pay all federal, state and local withholding taxes applicable (including FICA taxes upon vesting), in the Committee’s judgment, to the vesting or payment in respect of the Dividend Equivalent Rights, and the Grantee’s right to vesting and/or payment, as appropriate, shall be contingent upon such payment.  Such payment to the Company may be effected through (a) payment by the recipient to the Company of the aggregate withholding taxes in cash or cash equivalents; (b) at the discretion of the Committee, the Company’s withholding from the number of shares of Stock that would otherwise be delivered to the Grantee upon settlement of the Restricted Stock Units granted pursuant to the PRSU Award Agreement, a number of shares of Stock with an aggregate fair market value on the date of settlement (as determined by the Committee) equal to the aggregate amount of withholding taxes; or (c) at the discretion of the Committee, any combination of these two methods.
SECTION 12.    Grantee’s Tax Considerations.  The tax impact of the award hereunder can be quite complex and will vary with each Grantee.  It is recommended that each Grantee review such Grantee’s own tax situation and consult their tax advisor.
SECTION 13.    Waiver of Right to Trial by Jury.  BOTH PARTIES HEREBY WAIVE AND RELEASE ANY CLAIM UNDER STATE OR FEDERAL LAW THEY MAY HAVE HAD TO A JURY TRIAL IN CONNECTION WITH CLAIMS ARISING UNDER OR RELATED TO THIS AGREEMENT OR ANY ACTIONS TAKEN OR DETERMINATIONS MADE HEREUNDER,

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SECTION 14.    No Right to Continued Service. This Agreement does not confer upon the Grantee any right to continue as an employee of the Company, nor shall it interfere in any way with the right of the Company to terminate Grantee’s employment at any time for any reason.
SECTION 15.    Agreement Confidentiality.  Grantee understands and agrees that Grantee will keep the terms and conditions of this Agreement strictly confidential unless Grantee is compelled to do otherwise by a court of competent jurisdiction, and Grantee further agrees not to disclose the terms and conditions of this Agreement to any third party other than Grantee’s immediate family members, attorney, financial advisor, or accountant, all of whom must also agree to keep these terms and conditions strictly confidential unless compelled to do otherwise by a court of competent jurisdiction.
SECTION 16.    Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.
SECTION 17.    The Plan.  The terms and provisions of the Plan are incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall govern.  The Grantee hereby acknowledges that he has received a copy of the Plan and understands and agrees to the terms thereof.  This Agreement, together with the Plan, constitutes the entire agreement by and between the parties hereto with respect to the subject matter hereof, and this Agreement and the Plan supersede all prior agreements, correspondence and understandings and all prior and contemporaneous oral agreements and understandings, among the parties hereto with regard to the subject matter hereof.
SECTION 18.    Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof.  Grantee hereby irrevocably consents to the exclusive personal jurisdiction of the federal and State courts of the State of Delaware for the resolution of any disputes arising out of, or relating to, this Agreement.  In any action arising under or relating to this Agreement, the court shall not have the authority to, and shall not, conduct a de novo review of any determination made by the Committee or the Company but is instead authorized to determine solely whether the determination was the result of fraud or bad faith under Delaware law.
SECTION 19.    Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.  If any provision of this Agreement is held to be invalid, void or unenforceable in any jurisdiction, any court so holding shall substitute a valid, enforceable provision that preserves, to the maximum lawful extent, the terms and intent of such provisions of this Agreement.  If any of the provisions of, or covenants contained in, this Agreement are hereafter construed to be invalid or unenforceable in any jurisdiction, the same shall not affect the remainder of the provisions or the enforceability thereof in any other jurisdiction, which shall be given full effect, without regard to the invalidity or unenforceability in such other jurisdiction.  Any such holding shall affect such provision of this Agreement, solely as to that jurisdiction, without rendering that or any other provisions of this Agreement invalid, illegal or unenforceable in any other jurisdiction.  If any covenant should 

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be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant will be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.
SECTION 20.    Definitions. The following terms shall have the following meanings:
(a)    “2017 Performance Period” means the period commencing on the date hereof and ending on June 30, 2017.
(b)    “2018 Performance Period” means the period commencing on the date hereof and ending on June 30, 2018.
(c)    “Average Return on Equity” means the percentage equal to the product of four (4) times the result of (i)(A) the sum of the Return on Equity for each of the immediately preceding four (4) quarters completed prior to the date hereof plus (B) the Return on Equity for each quarter in the Performance Period, divided by (ii)(A) the sum of four (4) plus (B) the number of quarters in the Performance Period.
(d)    “Return on Equity” means for a quarter, a fraction (expressed as percentage) equal to the consolidated net income from continuing operations of the Company as determined under U.S. Generally Accepted Accounting Principles divided by the stockholders’ equity at the beginning of the calendar year for that quarter.
(e)    “Cause” means “Cause” as defined in any active employment agreement between the Grantee and the Company or, in the absence of any such definition, means the occurrence of any one of the following events: (i) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of the Grantee in the course of his or her employment or services; (ii) the Grantee’s engagement in conduct that is materially injurious to the Company; (iii) the Grantee’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s reputation or business; (iv) public or consistent drunkenness by the Grantee or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company or which impairs, or could reasonably be expected to impair, the performance of the Grantee’s duties to the Company; (v) willful failure by the Grantee to follow the lawful directions of a superior officer; or (vi) the Grantee’s continued and material failure to fulfill his or her employment obligations to the Company.
(f)    “Disability” means the total and permanent disability of the Grantee, as determined by the Committee in its sole discretion.
(g)    “Good Reason” means “Good Reason” as defined in any active employment agreement between the Grantee and the Company or, in the absence of any such definition, means the occurrence of any one of the following events, unless the Grantee agrees in writing that such event shall not constitute Good Reason: (i) a material reduction in the Grantee’s duties or responsibilities from those in effect immediately prior to a Change in Control; (ii) a material 

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reduction in the Grantee’s base salary below the levels in effect immediately prior to a Change in Control; or (iii) relocation of the Grantee’s primary place of employment to a location more than fifty (50) miles from its location, and further from the Grantee’s primary residence, immediately prior to a Change in Control; provided, however, that with respect to any Good Reason termination, the Company will be given not less than thirty (30) days’ written notice by the Grantee (within sixty (60) days of the occurrence of the event constituting Good Reason) of the Grantee’s intention to terminate the Grantee’s employment for Good Reason, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Good Reason is based, and such termination shall be effective at the expiration of such thirty (30) day notice period only if the Company has not fully cured such act or acts or failure or failures to act that give rise to Good Reason during such period.  Further notwithstanding any provision in this definition to the contrary, in order to constitute a termination for Good Reason, such termination must occur within six (6) months of the initial existence of the applicable condition.
(h)    “Performance Period” means the period commencing on the date hereof and ending on June 30, 2019.
(i)    “ROE Relative Performance” means the Average Return on Equity less the Treasury Note Rate of Return, expressed in basis points.
(j)    “ROE Relative Performance Vesting Percentage” means a function of the ROE Relative Performance during the applicable Performance Period, and shall be determined as follows:
	
		
	ROE Relative Performance*
	ROE Relative Performance  
Vesting Percentage 
(% of Target)*

	Less than 0 basis points
	0%

	≥ 0 basis points and  
≤ +500 basis points
	80.0%

	+633 basis points
	90.0%

	+766 basis points
	100.0% (target)

	+
	110.0%

		
	*
	In the event that the ROE Relative Performance falls between any two values listed in the table above, the ROE Relative Performance Vesting Percentage shall be determined using a straight line interpolation between such two values, except that if the ROE Relative Performance is equal to or greater than zero basis points and equal to or less than 500 basis points, the ROE Relative Vesting Percentage shall be 80% (i.e., no linear interpolation between 0% and 80%).

(k)    “Treasury Note Rate of Return” means  1.66%.

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(l)    “Vesting Date” means the date on which the Dividend Equivalent Rights vest hereunder.
SECTION 21.    Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
W. R. BERKLEY CORPORATION

By: /s/ William R. Berkley
William R. Berkley
Chairman of the Board and
Chief Executive Officer

__________________________________ 
Grantee

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EXHIBIT A 
TO THE DIVIDEND EQUIVALENT RIGHT AGREEMENT DATED 
AS OF JULY 1, 2015 UNDER THE W. R. BERKLEY CORPORATION 
2012 STOCK INCENTIVE PLAN

NAME OF GRANTEE:  ________________________________________

TARGET NUMBER OF TRANCHE 1 DIVIDEND EQUIVALENT RIGHTS AWARDED TO GRANTEE: _____________

TARGET NUMBER OF TRANCHE 2 DIVIDEND EQUIVALENT RIGHTS AWARDED TO GRANTEE: _____________

By accepting this Agreement by either clicking on the action icon “accept” or signing this Agreement, you acknowledge that you have read and agree to all the terms and conditions set forth in this Agreement, including without limitation, the forfeiture and recapture provisions set forth in Section 3 of this Agreement.

- 13 -Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) is made this 11th day of February, 2015 (the “Effective Date”) by and between Albany
Molecular Research, Inc., a Delaware corporation (the “Company”), and Felicia Ladin (the “Executive”).

 

WHEREAS, the Executive
became an officer and key employee of the Company on the Employment Date; and

 

WHEREAS, the parties
hereto desire to assure that the Executive’s knowledge and familiarity with the business of the Company will continue to
be available to the Company after the date hereof.

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants herein contained, the parties agree as follows:

 

1.      
    Employment. Subject to the provisions of Section 6, the Company hereby employs the
Executive, effective on the Employment Date, and the Executive agrees to accept such employment on the Employment Date upon
the terms and conditions hereinafter set forth. The Employment Date is February 4, 2015, provided, however that the parties
agreed that an announcement of such employment was made on January 12, 2015. In the event that the Executive becomes an
employee of the Company on any date other than February 4, 2015, then the actual date of employment shall be considered the
Employment Date hereunder.

 

2.     
     Term of Employment. The term of the Executive’s employment pursuant to this
Agreement shall commence on and as of the Employment Date (the “Effective Date”) and shall remain in effect for a
period of two (2) years from the Effective Date (the “Term”). The Term shall be renewed automatically for periods
of two (2) years (each a “Renewal Term”) commencing at the second anniversary of the Effective Date and on each
subsequent anniversary thereafter, unless notice that this Agreement will not be extended is given by either the Executive or
the Company not less than one-hundred eighty (180) days prior to the expiration of the Term (as extended by any Renewal
Term). The period during which the Executive serves as an employee of the Company in accordance with and subject to the
provisions of this Agreement is referred to in this Agreement as the “Term of Employment.”

 

3.      
    Capacity.

 

(a)          Duties.
During the Term of Employment, the Executive shall report directly to the to the President and Chief Executive Officer and (i)
shall, until the date agreed to by the Company and the Executive, serve as an executive officer of the Company with
the title Senior Vice President and Treasurer, and, (ii)
shall following the filing of the Annual Report on Form 10-K for the year ended December 31, 2014, serve, in addition, as the Chief
Financial Officer of the Company and (iii) shall perform such duties and responsibilities as may be reasonably determined by the
President and Chief Executive Officer and the Board of Directors of the Company consistent with the Executive’s title and
position, duties and responsibilities as an executive officer of the Company as of the Effective Date; provided that such
duties and responsibilities shall be within the general area of the Executive’s experience and skills, (iii) upon the request
of the Board of Directors of the Company, shall serve as an officer and/or director of the Company and any of its subsidiaries
or affiliates (provided that the Company shall indemnify the Executive for liabilities incurred as such in accordance with
its current practices to the fullest extent permitted by applicable law); and (iv) shall render all services incident to the foregoing.

 

    	1

    	 

    

 

(b)          Extent
of Service. The Executive agrees to diligently serve the interests of the Company and shall devote substantially all of her
working time, attention, skill and energies to the advancement of the interests of the Company and its subsidiaries and affiliates
and the performance of her duties and responsibilities hereunder; provided that nothing in this Agreement shall be construed
as preventing the Executive from (i) investing the Executive’s assets in any entity in a manner not prohibited by Section
7 and in such form or manner as shall not require any material activities on the Executive’s part in connection with the
operations or affairs of the entities in which such investments are made, or (ii) engaging in religious, charitable or other community
or non-profit activities that do not impair the Executive’s ability to fulfill the Executive’s duties and responsibilities
under this Agreement.

 

4.     
     Compensation.

 

(a)         Salary.
During the Term of Employment, the Company shall pay the Executive a salary (the “Base Salary”) at an annual rate as
shall be determined from time to time by the Board of Directors of the Company or the Compensation Committee of the Board of Directors
consistent with the general policies and practices of the Company and subject to periodic review in accordance with the policies
and practices of the Company; provided, however, that in no event shall such rate per annum be less than $400,000.00.
Such salary shall be subject to withholding under applicable law and shall be payable in periodic installments in accordance with
the Company’s usual practice for its senior executives, as in effect from time to time.

 

(b)         Bonus.
Annually, the Company shall review the performance of the Company and of the Executive during the prior year, and the Company may
provide the Executive with additional compensation as a bonus in accordance with any bonus plan then in effect from time to time
for senior executives of the Company. The current bonus plan for senior executives calls for the payment of 30% of base salary
upon the attainment of threshold goals; 50% upon the attainment of target goals and 100% upon the attainment of superior goals.
This bonus plan shall have such terms as may be established in the sole discretion of the Board of Directors of the Company or
the Compensation Committee of the Board of Directors. Executive will be paid a sign-on bonus in 2015 equal to $300,000 (the “New
Hire Bonus”). The New Hire Bonus will be paid 50% within thirty (30) days of date of hire and the remaining 50% sixty (60)
days following the first payment. Executive must be an active employee in good standing to receive the payments constituting the
New Hire Bonus. In the event Executive receives payment of a bonus for 2014 performance from the Executive’s prior employer,
Executive will inform the SVP of Human Resources of the gross amount of such bonus and it is understood that the New Hire Bonus
shall be reduced by the amount of that bonus paid by the prior employer.

 

    	2

    	 

    

 

5.     
     Benefits.

 

(a)         Regular Benefits.
During the Term of Employment, the Executive shall be entitled to participate in any and all medical, dental, pension and life
insurance plans, disability income plans and other employee benefit plans as in effect from time to time for senior executives
of the Company. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable
policies of the Company and (iii) the discretion of the Board of Directors of the Company or the administrative or other committee
provided for in, or contemplated by, such plan. Compliance with this Section 5(a) shall in no way create or be deemed to create
any obligation, express or implied, on the part of the Company or any subsidiary or affiliate of the Company with respect to the
continuation of any benefit or other plan or arrangement maintained as of or prior to the Effective Date or the creation and maintenance
of any particular benefit or other plan or arrangement at any time after the Effective Date.

 

(b)          Reimbursement
of Expenses. The Company shall promptly reimburse the Executive for all reasonable business expenses incurred by the Executive
during the Term of Employment in accordance with the Company’s practices for senior executives of the Company, as in effect
from time to time.

 

(c)        Vacation.
During the Term of Employment, the Executive shall receive at least four (4) weeks paid vacation annually or such greater amount
as is in accordance with the Company’s practices for senior executives of the Company, as in effect from time to time.

 

(d)          New
Employment Benefits. During the time that the Executive continues
to retain her primary residence in Pennslyvania, the Executive will commute to whichever AMRI location shall be reasonably necessary
to perform the responsibilities of Executive’s position. Executive will be accommodated in hotels that are preferred Company
hotels and reserved by the Company travel agent or adminsitrator and paid for by AMRI or in a mutually agreeable rental residence
at a cost per month to be approved by the Company, not to exceed Two Thousand Five Hundred Dollars ($2,500) per month plus utilities
and no such temporary living expenses shall be included in the definition of Relocation Expenses as set forth below, as allowable.
Any time after the Employment Date, the Executive is eligible for the AMRI Relocation Program for executives. This program is explained
in detail in the related documents and includes reimbursement or direct payment of all costs associated with the closing costs
for both sale of the Executive’s primary residence in Pennsylvania and the purchase, if any, of a new residence at the agreed
upon location. The Company will pay for the physical move of household goods to the new location.  Appropriate tax gross-ups
will be made where allowable. Rent and Untility reimbursement for temporary living will be
included in the gross up consideration. The provisions of the plan are more specific and are the terms that will be adhered to
in the actual reimbursement. It is expected that such residence will be in the proximity of the Company’s Massachusetts facilities,
but could be elsewhere if approved by the Senior Vice President of Human Resources or the President and CEO. All such permanent
relocation expenses, including the New Hire Bonus, are referred to herein as the “Relocation Expenses”.

 

    	3

    	 

    

 

(e)          Grant
of Company Equity. Effective on Employment Date, the Company will grant to Executive Twenty Five Thousand (25,000) shares of
restricted stock and non-qualified stock options to purchase Seventy Five Thousand (75,000) shares of the Company’s Common
Stock, such restricted stock and stock options to be granted pursuant to the Company’s 2008 Stock Option and Incentive Plan.
Such restricted stock and stock options will be evidenced by standard agreements to be entered into between Executive and the Company.
The restricted stock and stock options granted pursuant to this Section 5(e) will vest twenty five percent (25%) per year on each
anniversary of the date of grant. The shares of restricted stock and stock options granted in this Section 5(e) are referred to
herein as the New Hire Grant.

 

6.          Termination
of Employment. Notwithstanding the provisions of Section 2, the Executive’s employment under this Agreement shall terminate
under the following circumstances set forth in this Section 6.

 

For purposes of this
Agreement, “Date of Termination” means (i) if the Executive’s employment is terminated by her death as
provided in Section 6(c), the date of her death; (ii) if the Executive’s employment is terminated due to his permanent disability
as provided in Section 6(c), the date on which notice of termination is given; (iii) if the Executive’s employment is terminated
by the Company without Cause under Section 6(e) or Section 6(g), sixty (60) days after the date on which notice of termination
is given; and (iv) if the Executive’s employment is terminated under Section 6(f), or for Good Reason under Section 6(g),
the date on which the applicable cure period expires. In the event that Executive’s employment terminates at any time from
the date hereof to the date that is 24 months following the payment of the last to be paid of the Relocation Expenses and such
termination is pursuant to Section 6(b) or 6(d); then within 30 days of the Date of Termination Executive shall repay the Relocation
Expenses in full to the Company.

 

(a)          Mutual
Consent. The Executive’s employment under this Agreement may be terminated at any time by the mutual consent of the Executive
and the Company on such terms as both parties shall mutually agree.

 

(b)          Termination
by the Company for Cause. The Executive’s employment under this Agreement may be terminated by the Company for Cause
at any time upon written notice to the Executive without further liability on the part of the Company. For purposes of this Agreement,
a termination shall be for Cause if:

 

(i)          the
Executive shall commit an act of fraud, embezzlement, misappropriation or breach of fiduciary duty against the Company or any of
its subsidiaries or affiliates or shall be convicted by a court of competent jurisdiction or shall plead guilty or nolo contendere
to any felony or any crime involving moral turpitude;

 

    	4

    	 

    

 

(ii)         the
Executive shall commit a material breach of any of the covenants, terms or provisions of Section 7 or 8 hereof which breach has
not been cured within fifteen (15) days after delivery to the Executive by the Company of written notice thereof;

 

(iii)        the
Executive shall commit a material breach of any of the covenants, terms or provisions hereof (other than pursuant to Section 7
or 8 hereof) which breach has not been remedied within thirty (30) days after delivery to the Executive by the Company of written
notice thereof; or

 

(iv)        the
Executive shall have disobeyed reasonable written instructions from the Company’s Board of Directors, Compensation Committee
or other appropriate governing committee which are consistent with the terms and conditions of this Agreement or shall have deliberately,
willfully, substantially and continuously failed to perform the Executive’s duties hereunder, after written notice and under
circumstances effectively constituting a voluntary resignation of the Executive’s position with the Company.

 

Upon termination for
Cause as provided in this Section 6(b), all obligations of the Company under this Agreement shall thereupon immediately terminate
other than any obligations with respect to earned but unpaid Base Salary. The Company shall have any and all rights and remedies
under this Agreement and applicable law.

 

(c)          Death;
Disability. The Executive’s employment under this Agreement may be terminated by the Company upon the earlier of death
or permanent disability (as defined below) of the Executive continuing for a period of one hundred eighty (180) days. Upon any
such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon immediately
terminate other than any obligations with respect to (i) earned but unpaid Base Salary through the Date of Termination, (ii) bonus
payments with respect to the calendar year within which such termination occurred on the basis of and to the extent contemplated
in any bonus plan then in effect with respect to senior executive officers of the Company, pro-rated on the basis of the number
of days of the Executive’s actual employment hereunder during such calendar year through the Date of Termination, and (iii)
in the case of permanent disability, continuation at the Company’s expense of health insurance benefits (medical and dental)
until the first anniversary of the Date of Termination to the extent permitted under the Company’s group health insurance
policy. As used herein, the term “permanent disability” or “permanently disabled” means the inability of
the Executive, by reason of injury, illness or other similar cause, after reasonable accommodation by the Company, to perform a
major part of her duties and responsibilities in connection with the conduct of the business and affairs of the Company. The Company
shall provide written notice to the Executive of the termination of her employment hereunder due to permanent disability.

 

(d)          Voluntary
Termination by the Executive. At any time during the Term of Employment, the Executive may terminate her employment under this
Agreement upon sixty (60) days’ prior written notice to the Company. Upon termination by the Executive as provided in this
Section 6(d), all obligations of the Company under this Agreement shall thereupon immediately terminate.

 

    	5

    	 

    

 

(e)          Termination
by the Company Without Cause. The Executive’s employment under this Agreement may be terminated by the Company at any
time without Cause by the Company upon sixty (60) days’ prior written notice to the Executive. Any termination by the Company
of the Executive’s employment under this Agreement which does not constitute a termination for Cause under Section 6(b) and
is not a termination on account of death or disability under Section 6(c) shall be deemed a termination without Cause. Upon any
such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon immediately
terminate other than any obligations with respect to earned but unpaid Base Salary and bonus under Section 4. In addition, subject
to the Executive signing a general release of claims in a form and manner satisfactory to the Company and the lapse of any statutory
revocation period, the Company shall continue to pay the Executive her Base Salary at the rate then in effect pursuant to Section
4(a) for a period of one (1) year from the Date of Termination and shall pay to the Executive in monthly installments over the
one (1) year period, an amount equal to the Executive’s cash bonus, if any, received in respect of the year immediately preceding
the year of termination pursuant to Section 4(b) beginning with the first payroll date that begins thirty (30) days after the Date
of Termination. For purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each monthly
payment shall be considered a separate payment. The Company shall also pay 100% of the costs to provide up to twelve (12) months
of outplacement support services at a level appropriate for the Executive’s title and responsibility and provide the Executive
with health and dental insurance continuation at a level consistent with the level and type the Executive had in place at the time
of termination for a period of twelve (12) months from the Date of Termination. In addition, on or prior to the Date of
Termination, Executive will become fully vested in any unvested shares or options granted as part of the New Hire Grant.

 

(f)          Termination
by the Executive upon Company Breach. The Executive shall have the right to terminate her employment hereunder upon written
notice to the Company in the event of (i) a change in the Executive reporting directly to the Company’s Chief Executive Officer
or to the Board of Directors or a material diminution in the nature or scope of the powers, duties or responsibilities of the Executive
or (ii) a breach by the Company of any of its material obligations hereunder, in each case after the Executive has given written
notice to the Company specifying such default by the Company within sixty (60) days of the occurrence of the default and giving
the Company a reasonable time, not less than thirty (30) days, to conform its performance to its obligations hereunder. Upon any
such termination of the Executive’s employment, all obligations of the Company under this Agreement shall thereupon immediately
terminate other than any obligations with respect to earned but unpaid Base Salary and bonus under Section 4. In addition, subject
to the Executive signing a general release of claims in a form and manner satisfactory to the Company and the lapse of any statutory
revocation period, the Company shall continue to pay the Executive her Base Salary at the rate then in effect pursuant to Section
4(a) for a period of one (1) year from the Date of Termination and shall pay to the Executive in monthly installments over the
one (1) year period, an amount equal to the Executive’s cash bonus, if any, received in respect of the year immediately preceding
the year of termination pursuant to Section 4(b) beginning with the first payroll date that begins thirty (30) days after the Date
of Termination. For purposes of Section 409A of the Code, each monthly payment shall be considered a separate payment. The Company
shall also pay 100% of the costs to provide up to twelve (12) months of outplacement support services at a level appropriate for
the Executive’s title and responsibility and provide the Executive with health and dental insurance continuation at a level
consistent with the level and type the Executive had in place at the time of termination for a period of twelve (12) months from
the Date of Termination. In addition, on or prior to the Date of Termination, Executive will become fully vested in any
unvested shares or options granted as part of the New Hire Grant.  

 

    	6

    	 

    

 

(g)          Termination
Pursuant to a Change of Control. If there is a Change of Control, as defined below, during the Term of Employment, the provisions
of this Section 6(g) shall apply and shall continue to apply throughout the remainder of the Term (as extended by any Renewal Term).
Upon a Change of Control, the Executive will become fully vested in any outstanding stock options, Restricted Stock or other stock
grants awarded and become fully vested in all Company contributions made to the Executive’s 401(k), Profit Sharing or other
retirement account(s). In addition, within thirty (30) days of the Change of Control, the Company shall pay to the Executive a
lump sum equal to the Executive’s pro rata target cash bonus for the year in which the Change of Control occurred (as such
may be set forth in the Company’s bonus plan for such year and calculated assuming target achievement of corporate and personal
goals); such pro rata amount to be determined based on the actual date of the closing of such Change of Control transaction.

 

If, within two (2) years
following a Change of Control, the Executive’s employment is terminated by the Company without Cause (in accordance with
Section 5(e) above) or by the Executive for “Good Reason” (as defined in Section 6(g)(ii) below), in lieu of any severance
and other benefits payable under Section 6(e) or Section 6(f), subject to the Executive signing a general release of claims in
a form and manner satisfactory to the Company and the lapse of any statutory revocation period, the Company shall pay to the Executive
(or the Executive’s estate, if applicable) a lump sum amount equal to 1.5 times the sum of (x) the Executive’s Base
Salary at the rate then in effect pursuant to Section 4(a), plus (y) an amount equal to the Executive’s cash bonus,
if any, received in respect of the year immediately preceding the year of termination pursuant to Section 4(b) within thirty (30)
days of the Date of Termination. Notwithstanding the foregoing, to the extent the cash severance payment to the Executive is considered
deferred compensation subject to Section 409A of the Code, and if the Change of Control does not constitute a “change in
control event” within the meaning of Section 409A of the Code, such cash severance shall be payable in installments over
the same period as provided in Section 6(e). The Company shall also pay 100% of the costs to provide up to twelve (12) months of
outplacement support services at a level appropriate for the Executive’s title and responsibility and provide the Executive
with health and dental insurance continuation at a level consistent with the level and type the Executive had in place at the time
of termination for a period of twelve (12) months from the Date of Termination.

 

(i)          “Change
of Control” shall mean the occurrence of any one of the following events: (A) the sale of all or substantially
all of the assets of the Company on a consolidated basis to an unrelated person or entity, (B) a merger, reorganization or consolidation
in which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and the holders
of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding
voting power of the successor entity immediately upon completion of such transaction, or (C) the sale of all of the Stock of the
Company to an unrelated person or entity.

 

    	7

    	 

    

 

(ii)         “Good
Reason” shall mean the occurrence of any of the following:

 

(A)         
a change in the Executive reporting directly to the Company’s Chief Executive Officer or member of the Board of Directors
or a material diminution in the nature or scope of the powers, duties or responsibilities of the Executive;

 

(B)         a
breach by the Company of any of its material obligations hereunder

 

(iii)        The
Executive shall provide the Company with reasonable notice and an opportunity to cure any of the events listed in Section 6(g)(ii)
within sixty (60) days of the occurrence of the event and shall not be entitled to compensation pursuant to this Section 6(g) unless
the Company fails to cure within a reasonable period of not less than thirty (30) days.

 

(h)          Additional
Limitation. Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment
or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable
regulations thereunder (the “Severance Payments”), would be subject to the excise tax imposed by Section 4999 of the
Code, the following provisions shall apply:

 

(A)         if
the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and
employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount,
are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full amount of Severance Payments.

 

(B)         if
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of
(1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the
extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance
Payments shall be reduced in the following order: (i) cash payments not subject to Section 409A of the Code; (ii) cash payments
subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits. To the
extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological
order.

 

For the purposes of
this Section 6(h) “Threshold Amount” shall mean three (3) times the Executive’s “base amount” within
the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive
with respect to such excise tax.

 

    	8

    	 

    

 

The determination
as to which of the alternative provisions of this Section 6(h) shall apply to the Executive shall be made by a nationally recognized
accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations
both to the Company and the Executive within fifteen (15) business days of the Date of Termination, if applicable, or at such earlier
time as is reasonably requested by the Company or the Executive. For purposes of determining which of the alternative provisions
of this Section 6(h) above shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate
of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state
and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s
residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction
of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

(i)          No
Mitigation. Without regard to the reason for the termination of the Executive’s employment hereunder, the Executive shall
be under no obligation to mitigate damages with respect to such termination under any circumstances and in the event the Executive
is employed or receives income from any other source, there shall be no offset against the amounts due from the Company hereunder.

 

(j)          Section
409A.

 

(i)          Anything
in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning
of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under
this Agreement would be considered deferred compensation subject to the twenty percent (20%) additional tax imposed pursuant to
Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable
and such benefit shall not be provided until the date that is the earlier of (A) six (6) months and one (1) day after the Executive’s
separation from service, or (B) the Executive’s death. If any such delayed cash payment is otherwise payable on an installment
basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six (6)-month
period but for the application of this provision, and the balance of the installments shall be payable in accordance with their
original schedule. Any such delayed cash payment shall earn interest at an annual rate equal to the prime rate reported by The
Wall Street Journal as of the date of separation from service, from such date of separation from service until the payment.

 

(ii)         The
parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations
in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

    	9

    	 

    

 

(iii)        To
the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service”.
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

(iv)        The
Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an
exemption from, or the conditions of, such Section.

 

7.          Non-Competition
and No Solicitation.

 

(a)          Because
the Executive’s services to the Company are special and because the Executive has access to the Company’s confidential
information, during the Term of Employment and for a period of twelve (12) months following the termination, the Executive shall
not, without the express written consent of the Company, directly or indirectly, engage, participate, invest in, be employed by
or assist, whether as owner, part-owner, shareholder, partner, director, officer, trustee, employee, agent or consultant, or in
any other capacity, any Person (as hereinafter defined) other than the Company and its affiliates in the Designated Industry (as
hereinafter defined); provided, however, that nothing herein shall be construed as preventing the Executive from making passive
investments in a Person in the Designated Industry if the securities of such Person are publicly traded and such investment constitutes
less than one percent (1%) of the outstanding shares of capital stock or comparable equity interests of such Person.

 

(b)          For
purposes of this Agreement, the following terms have the following meanings:

 

“Person”
means an individual, a corporation, an association, a partnership, a limited liability company, an estate, a trust and any other
entity or organization; and

 

“Designated
Industry” means the business of providing research and development services to pharmaceutical and biotechnology companies
involved in drug development and discovery and any and all activities related thereto, including, without limitation, biological
testing and biological research services, medicinal chemistry, chemical development, biocatalysis, analytical chemistry services
and small-scale and large scale and any other business conducted by the Company during the Executive’s employment with the
Company that comprises a major portion of the Company’s overall business.

 

(c)          For
a period of twelve (12) months following the termination of this Agreement for any reason, the Executive shall not, directly or
indirectly, alone or as a member of any partnership or limited liability company or entity, or as an officer, director, shareholder,
or employee of any corporation or entity (a) solicit or otherwise encourage any employee or independent contractor of the Company
to terminate his/her relationship with the Company, or (b) recruit, hire or solicit for employment or for engagement as an independent
contractor, any person who is or was employed by the Company at any time during the Executive’s employment with the Company.
This paragraph shall not apply to persons whose employment and/or retention with the Company has been terminated for a period of
twelve (12) months or longer.

 

    	10

    	 

    

 

8.          Confidentiality.
In the course of performing services hereunder and otherwise, the Executive has had, and it is anticipated that the Executive will
from time to time have, access to confidential records, data, customer lists, trade secrets, technology and similar confidential
information owned or used in the course of business by the Company and its subsidiaries and affiliates (the “Confidential
Information”). The Executive agrees (i) to hold the Confidential Information in strict confidence, (ii) not to disclose the
Confidential Information to any Person (other than in the regular business of the Company), and (iii) not to use, directly or indirectly,
any of the Confidential Information for any competitive or commercial purpose; provided, however, that the limitations set forth
above shall not apply to any Confidential Information which (A) is then generally known to the public, (B) became or becomes generally
known to the public through no fault of the Executive, or (C) is disclosed in accordance with an order of a court of competent
jurisdiction or applicable law. Upon termination of the Executive’s employment with the Company, all data, memoranda, customer
lists, notes, programs and other papers and items, and reproductions thereof relating to the foregoing matters in the Executive’s
possession or control, shall be returned to the Company and remain in its possession. This Section 8 shall survive the termination
of this Agreement for any reason.

 

9.          Conflicting
Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of her obligations
hereunder will not breach or be in conflict with any other agreement to which he is a party or is bound, and that he is not now
subject to any covenants which would affect the performance of her obligations hereunder.

 

10.         Severability.
In case any of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, any such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal or unenforceable provision had been limited or modified (consistent
with its general intent) to the extent necessary to make it valid, legal and enforceable, or if it shall not be possible to so
limit or modify such invalid, illegal or unenforceable provision or part of a provision, this Agreement shall be construed as if
such invalid, illegal or unenforceable provision or part of a provision had never been contained in this Agreement.

 

11.         Litigation
and Regulatory Cooperation. During and after the Executive’s employment, the Executive shall cooperate fully with the
Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or
on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.
The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available
to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates
to events or occurrences that transpired while the Executive was employed by the Company. The Company shall reimburse the Executive
for any reasonable out-of-pocket expenses incurred in connection with the Executive’s performance of obligations pursuant
to this Section 11. This Section 11 shall survive the termination of this Agreement for any reason.

 

    	11

    	 

    

 

12.         Arbitration
of Disputes. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by
arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Judgment
may be entered in any court having jurisdiction. In the event that the Company terminates the Executive’s employment for
cause under Section 6(b) and the Executive contends that cause did not exist, then the Company’s only obligation shall be
to submit such claim to arbitration and the only issue before the arbitrator will be whether the Executive was in fact terminated
for cause. If the arbitrator determines that the Executive was not terminated for cause by the Company, then the only remedies
that the arbitrator may award are (i) payment of amounts which would have been payable if the Executive’s employment had
been terminated under Section 6(e), (ii) the costs of arbitration, (iii) the Executive’s attorneys’ fees, and (iv)
all rights and benefits granted or in effect with respect to the Executive under the Company’s stock option plans and agreements
with the Executive pursuant thereto, with the vesting and exercise of any stock options and the forfeitability of any stock-based
grants held by the Executive to be governed by the terms of such plans and the related agreements between the Executive and the
Company. If the arbitrator finds that the Executive’s employment was terminated for cause, the arbitrator will be without
authority to award the Executive anything, and the parties will each be responsible for their own attorneys’ fees, and they
will divide the costs of arbitration equally. Furthermore, should a dispute occur concerning the Executive’s mental or physical
capacity as described in Section 6(c), a doctor selected by the Executive and a doctor selected by the Company shall be entitled
to examine the Executive. If the opinion of the Company’s doctor and the Executive’s doctor conflict, the Company’s
doctor and the Executive’s doctor shall together agree upon a third doctor, whose opinion shall be binding. This Section
12 shall survive the termination of this Agreement for any reason.

 

13.         Specific
Performance. Notwithstanding Section 12 hereof, it is specifically understood and agreed that any breach of the provisions
of this Agreement, including, without limitation, Sections 7 and 8 hereof, by the Executive is likely to result in irreparable
injury to the Company and its subsidiaries and affiliates, that the remedy at law alone will be inadequate remedy for such breach
and that, in addition to any other remedy it may have, the Company shall be entitled to enforce the specific performance of this
Agreement by the Executive and to seek both temporary and permanent injunctive relief (to the extent permitted by law), without
the necessity of proving actual damages. To the extent that any court action is permitted consistent with or to enforce Section
7 or 8 of this Agreement, the parties hereby agree to the sole and exclusive jurisdiction of the Supreme Court of the State of
New York (Albany County) and the United States District Court for the Northern District of New York (City of Albany). Accordingly,
with respect to any such court action, the Executive (i) submits to the personal jurisdiction of such courts, (ii) consents to
service of process, and (iii) waives any other requirement (whether imposed by statute, rule of court or otherwise) with respect
to personal jurisdiction or service of process.

 

    	12

    	 

    

 

14.         Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(i) when delivered by hand, (ii) when transmitted by facsimile and receipt is acknowledged, or (iii) if mailed by certified or
registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

 

To the Company:

 

Albany Molecular Research,
Inc.

26 Corporate Circle

Albany, New York 12212-5154

Facsimile: (518) 867-4375

Attention: Board
of Directors

 

To the Executive, at the address
on file with the Company

 

or to such other address of which any party
may notify the other parties as provided above. Notices shall be effective as of the date of such delivery or mailing.

 

15.         Amendment;
Waiver. This Agreement shall not be amended, modified or discharged in whole or in part except by an Agreement in writing signed
by both of the parties hereto. The failure of either of the parties to require the performance of a term or obligation or to exercise
any right under this Agreement or the waiver of any breach hereunder shall not prevent subsequent enforcement of such term or obligation
or exercise of such right or the enforcement at any time of any other right hereunder or be deemed a waiver of any subsequent breach
of the provision so breached, or of any other breach hereunder.

 

16.         Successors
and Assigns. This Agreement shall inure to the benefit of successors of the Company by way of merger, consolidation or transfer
of all or substantially all of the assets of the Company, and may not be assigned by the Executive. The Company shall
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all
of the business or assets of the Company expressly to assume and agree to perform this Agreement to the same extent that the Company
would be required to perform it if no succession had taken place. Failure of the Company to obtain an assumption of this Agreement
at or prior to the effectiveness of any succession shall be a material breach of this Agreement.

 

17.         Entire
Agreement. This Agreement constitutes the entire agreement between the parties concerning the subjects hereof and supersedes
all prior understandings and agreements between the parties relating to the subject matter hereof.  

 

18.         Governing
Law. This Agreement shall be construed and regulated in all respects under the laws of the State of New York.

 

    	13

    	 

    

 

19.         Counterparts.
This Agreement may be executed in counterparts, each of which when so executed and delivered shall be taken to be an original,
but such counterparts shall together constitute one and the same document.

 

[Remainder of Page Intentionally Left Blank]

 

    	14

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the day and year first above written.

 

	 	ALBANY MOLECULAR RESEARCH, INC.
	 	 	 
	 	By:	/s/ William Marth
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Felicia Ladin
	 	Felicia Ladin

 

    	15

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