Document:

Exhibit 10.20

 EXHIBIT 10.20 
  
 HILB, ROGAL AND HAMILTON COMPANY 
  
 Senior Executive 
  
 Employment Agreement With 
  
 ROBERT B. LOCKHART 

 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT, effective the 1st day of December, 2003, by and between ROBERT B. LOCKHART, an individual residing in
Richmond, Virginia (the “Executive”), and HILB, ROGAL AND HAMILTON COMPANY, a Virginia corporation with corporate offices located at 4951 Lake Brook Drive, Suite 500, Glen Allen, Virginia 23060 (the “Company”). 
  
 WHEREAS, the Company has promoted the Executive to the position of President
and Chief Operating Officer and wants to assure itself of the benefit of the Executive’s services and experience; and 
  
 WHEREAS, the Executive has assumed the position of President and Chief Operating Officer and is willing to continue in the employ of the Company upon the
terms and conditions herein set forth; 
  
 NOW, THEREFORE, in
consideration of the premises and covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows: 
  
 I. Term of Employment. 
  
 (A) The term of the employment of the Executive under this Agreement shall be for the period commencing on December 1, 2003, and ending on February 28,
2006; provided, however, that commencing on March 1, 2005, and on each annual anniversary of such date (such date and each annual anniversary being hereinafter referred to as the “Renewal Date”) unless previously terminated, the term of
employment shall automatically extend so as to terminate two (2) years from such Renewal Date, unless notice that the term of employment will not be extended is given by either party to the other at least 60 days prior to the Renewal Date.

  
 (B) Notwithstanding the foregoing provision (A) of this
Section I., the term of employment of the Executive under this Agreement shall be subject to earlier termination by: 
  
 (1) determination of disability of the Executive pursuant to Section IV.; or 
  
 (2) dismissal of the Executive from his position as
President and Chief Operating Officer pursuant to resolution by the Board of Directors of the Company, or failure or refusal of the Board of Directors to re-elect the Executive to the position of President and Chief Operating Officer; 
  
 (3) resignation by Executive; or 
  
 (4) death of the Executive; 

 provided, however, that 
  
 (i) in the event of termination for determination of disability pursuant to Paragraph (1) above, Section IV.
shall apply; 
  
 (ii) in the event of termination
pursuant to Paragraph (2) above for Proper Cause (as defined in Section V.(A)) or pursuant to Paragraph (3) above for other than Good Reason (as defined in Section VI.(A)), Section V.(B) shall apply; 
  
 (iii) in the event of termination pursuant to Paragraph (2)
above without Proper Cause or pursuant to Paragraph (3) above for Good Reason, Section VI.(B) shall apply; or 
  
 (iv) in the event of termination due to the death of the Executive pursuant to Paragraph (4) above, Section VII. shall apply. 

 
 II. Services To Be Rendered. 
  
 The Company agrees to employ the Executive as the President and Chief
Operating Officer of the Company, subject to the terms, conditions and provisions of this Agreement. The Executive hereby accepts such employment and agrees that he shall devote the same degree of skill and diligence in rendering services to the
Company under this Agreement as he applied during his prior employment by the Company. The Executive agrees that his employment as the President and Chief Operating Officer of the Company pursuant to this Agreement is a full time position.
Notwithstanding the foregoing, the Executive may devote a reasonable amount of his time to serving as an officer and director of other companies affiliated with the Company; to his personal investments and business affairs, including service as a
director of unaffiliated companies; and to civic, political and charitable activities; provided however, the Executive shall not accept any position as a director of any unaffiliated for-profit business organization, other than
positions presently held by him, without prior approval of the Board of Directors of the Company (which approval will not be unreasonably withheld). 
  
 III. Compensation. 
  
 In consideration for the services rendered to the Company under this Agreement, the Company shall pay and provide to the Executive the following
compensation and benefits: 
  
 (A) Salary. 
  
 The Company shall pay the Executive an annual base salary of $365,000,
payable in twenty-four equal semi-monthly installments. This annual base salary shall be reviewed annually by the Compensation Committee of the Board of Directors (the “Compensation Committee”) to consider appropriate increases, but in no
event shall the amount of the base salary be reduced. 
  

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 (B) Annual Incentive Bonus. 
  
 In addition to the base salary to be paid to the Executive under Section III.(A), the Executive may also be entitled to an
annual incentive bonus as established and modified, from time to time, by the Compensation Committee. 
  
 (C) Ancillary Benefits. 
  
 The Executive shall also be entitled to vacations, participation in the Company’s Profit Sharing Savings Plan (401K), Executive Voluntary Deferral
Plan and Supplemental Executive Retirement Plan, sick leave benefits, post-retirement benefit plan, and all other ancillary benefits provided by the Company, including, but not limited to, group life, health and disability insurance coverage,
consistent with the compensation policies and practices of the Company from time to time prevailing with respect to persons who are executive officers of the Company. 
  
 (D) The Executive shall receive such stock option awards each year as determined by the Compensation Committee in its sole
discretion. 
  
 IV. Disability.

  
 (A) The term of employment of the Executive may be terminated
at the election of the Company upon the Board of Director’s receiving evidence that the Executive is disabled as that term is defined in the Group Long Term Disability Insurance Certificate and Summary Plan Description for the Company’s
Group Disability Plan. 
  
 (B) In the event of such termination
for disability, the Company shall thereupon be relieved of its obligations to pay any compensation and benefits under Section III., except for accrued and unpaid items, but shall, in addition, pay to the Executive such disability compensation as set
forth in any disability plan established by the Company for its executive officers. 
  
 V. Termination For Proper Cause or Without Good Reason. 
  
 (A) The occurrence of any of the following events shall constitute “Proper Cause” for termination of the
employment of the Executive under this Agreement, at the election of the Board of Directors of the Company: 
  
 (1) the Executive shall voluntarily resign as a director, officer or employee of the Company or any of its affiliates without the written
consent of the Board of Directors of the Company; 
  
 (2) the Executive shall breach this Agreement in any material respect and fail to cure such breach within sixty (60) calendar days after receiving written notice of such breach from the Company; or 
  

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 (3) the commission of a fraud, or other criminal act, by the Executive directly involving
the Company or any of its affiliates which would constitute a felony if prosecuted under criminal law; 
  
 provided, however, the inability of the Executive to achieve favorable results of operations shall clearly not be deemed
Proper Cause for termination hereunder. 
  
 (B) In the event of
termination of the Executive’s employment by the Company pursuant to Section I.(B)(2) for Proper Cause or by the Executive pursuant to Section I.(B)(3) other than for Good Reason, the Company shall thereupon be relieved of its obligations to
pay any compensation and benefits under Section III., except for accrued and unpaid items. 
  
 VI. Termination for Good Reason or Without Proper Cause. 
  
 (A) The occurrence of any of the following events shall constitute “Good Reason” for termination of employment by
Executive: 
  
 (1) the assignment to the Executive of any duties
inconsistent in any respect with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section II. of this Agreement, or any other action by the Company
which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company promptly after receipt of
notice thereof given by the Executive; or 
  
 (2) any failure by
the Company to comply with any of the provisions of Section III. of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive. 
  
 (B) In the event of
termination of the Executive by the Company pursuant to Section I.(B)(2) without Proper Cause or by the Executive pursuant to Section I.(B)(3) for Good Reason, the Company shall thereafter be and remain obligated to pay to the Executive (or his
estate or designated beneficiary) the compensation and benefits provided under Section III.(A) and III.(B) and such benefits under III.(C) as are payable to a terminated employee until expiration of the term of employment established by Section
I.(A). In the event of a dispute as to whether Executive was terminated for or without “Proper Cause,” or for or without “Good Reason,” or regarding the amount of compensation Executive is entitled to receive under this Section
VI., the Company shall be obligated to continue to pay to the Executive (or his estate or designated beneficiary) all of the compensation and benefits reserved under Section III. until the dispute is resolved by an arbitrator pursuant to Section
XVII. hereof. 
  
 (C) For purposes of calculating the annual
incentive bonus payable under Section III.(B), the Company shall make to the Executive (or his estate or designated beneficiary), an annual payment equal to the greater of (i) the highest annual incentive bonus payment received by Executive pursuant
to Section III.(B) for the last two (2) fiscal years prior to the date of termination or (ii) fifty percent (50%) of his annual base salary. 
  

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 VII. Death. 
  
 In the event of termination of the Executive’s employment pursuant to Section I.(B)(4) above, the Company shall pay the
Executive’s estate or designated beneficiary such death benefits as may be set forth in any life insurance plan established by the Company for its executive officers. 
  
 VIII. Confidentiality. 
  
 For purposes of this Agreement, “Confidential Information” shall mean any information of a proprietary or
confidential nature and trade secrets of the Company and its affiliates relating to the business of the Company and its affiliates that have not previously been publicly released by duly authorized representatives of the Company. The Executive
agrees to regard and preserve as confidential all Confidential Information pertaining to the Company’s business that has been or may be obtained by the Executive in the course of his employment with the Company, whether he has such information
in his memory or in writing or other physical form. The Executive shall not, without written authority from the Company to do so, use for his personal benefit or his personal purposes, unrelated to business of the Company, nor disclose to others,
either during the term of his employment hereunder or thereafter, except as required by the conditions of his employment hereunder, any Confidential Information of the Company. This provision shall not apply after the Confidential Information has
been voluntarily disclosed to the public by a duly authorized representative of the Company, independently developed and disclosed by others, or otherwise enters the public domain through lawful means. 
  
 IX. Removal Of Documents Or Objects. 
  
 The Executive agrees not to remove from the premises of the Company, except
as an employee of the Company in pursuit of the business of the Company or any of its affiliates, or except as specifically permitted in writing by the Company, any document or object containing or reflecting any Confidential Information of the
Company. The Executive recognizes that all documents or material containing Confidential Information developed by him or by someone else in the course of employment by the Company, are the exclusive property of the Company. 
  
 X. Nonpiracy Covenants. 
  
 (A) For the purpose of this Agreement, the following terms shall have the
following meanings: 
  
 (1) “HRH
Customers” shall be limited to those customers of the Company or its affiliates for whom there is an insurance policy or bond in force or to or for whom the Company or its affiliates are rendering services as of the date of termination of the
Executive’s employment; 
  

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 (2) “Affiliates of the Company” shall mean each of the subsidiary corporations
of Hilb, Rogal and Hamilton Company engaged in business as an insurance agency as of the date of termination of the Executive’s employment; 
  
 (3) “Prohibited Services” shall mean services in the fields of insurance performed by the Company or its affiliates, their
agents or employees in any other business engaged in by the Company or its affiliates on the date of termination of the Executive’s employment. “Fields of Insurance” does not include title insurance, but does include all lines of
insurance sold by the Company or its affiliates, including, without limitation, property and casualty, life, group, accident, health, disability, and annuities; 
  
 (4) “Restricted Period” shall mean: (i) in the case of termination by the Company for Proper Cause
or by the Executive without Good Reason, the period of two (2) years immediately following the date of termination of the Executive’s employment; and (ii) in the case of termination by the Company without Proper Cause or by the Executive for
Good Reason, the period following the date of termination of the Executive’s employment during which the Executive is receiving compensation under this Agreement. 
  
 (B) The Executive recognizes that over a period of many years the Company has developed, at considerable expense,
relationships with, and knowledge about, Customers which constitute a major part of the value of the Company. During the course of his employment by the Company, the Executive will either have substantial contact with, or obtain substantial
knowledge about, these Customers. In order to protect the value of the Company’s business, the Executive covenants and agrees that, in the event of the termination of his employment for any reason, whether voluntary or involuntary and whether
with or without Proper Cause or Good Reason, he shall not, directly or indirectly, for his own account or for the account of any other person or entity, as an owner, stockholder, director, employee, partner, agent, broker, consultant or other
participant during the Restricted Period: 
  
 (1)
solicit a Customer for the purpose of providing Prohibited Services to such Customer; and 
  
 (2) accept an invitation from a Customer for the purpose of providing Prohibited Services to such Customer. 
  
 Subsections (1) and (2) are separate and divisible covenants; if for any
reason one covenant is held to be illegal, invalid or unenforceable, in whole or in part, the remaining covenant shall remain valid and enforceable and shall not be affected thereby. Further, the periods and scope of the restrictions set forth in
any such subsection shall be reduced by the minimum amount necessary to reform such subsection to the maximum level of enforcement permitted to the Company by the law governing this Agreement. Additionally, the Executive agrees that no separate
geographic limitation is needed for the foregoing nonpiracy covenants as such are not a prohibition on the Executive’s employment in the insurance agency business and are already limited to only those entities which are included within the
definition of “Customer.” 
  

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 XI. Nonraiding of Employees. 
  
 The Executive covenants that during his employment hereunder and the
Restricted Period specified in Section X. hereof, he will not solicit, induce or encourage for the purposes of employing or offering employment to any individuals who, as of the date of termination of the Executive’s employment, are employees
of the Company or its affiliates, nor will he directly or indirectly solicit, induce or encourage any of the Company’s or its affiliates’ employees to seek employment with any other business, whether or not the Executive is then affiliated
with such business. 
  
 XII. Notification of
Former and New Employment. 
  
 During the term of this
Agreement and the Restricted Period specified in Section X. hereof, the Executive covenants to notify any prospective employer or joint venturer, which is a competitor of the Company of this Agreement with the Company; and if the Executive accepts
employment or establishes a relationship with such competitor, the Executive covenants to notify the Company immediately of such relationship. If the Company reasonably believes that the Executive is affiliated or employed by or with a competitor of
the Company during the Restricted Period, then the Executive grants the Company the right to forward a copy of this Agreement to such competitor. 
  
 XIII. Liquidated Damages. 
  
 (A) If the Executive breaches Sections IX. or X. of this Agreement, the Company may, at its sole option, seek liquidated damages with respect to each
Customer procured by or through the Executive, directly or indirectly, in violation of Sections IX. or X. of this Agreement (with such Customers being hereafter referred to as “Lost Customers”). The Executive acknowledges that it would be
difficult to calculate damages incurred by the Company in the event of such a breach and that the following liquidated damages clause, when so elected by the Company, is necessary and reasonable for the protection of the Executive. The Executive
also acknowledges that the Company, at its sole option, may or may not choose to exercise this liquidated damages provision as to some or all Lost Customers. Whether or not the Company seeks liquidated or actual damages, the Company shall retain the
right to obtain injunctive relief with respect to any Lost Customer and with respect to any other actions by the Executive which breach this Agreement. Finally, the Executive acknowledges that he has no right whatsoever to force the Company to
exercise this liquidated damages provision, and that such choice remains entirely the Company’s. Liquidated damages shall be calculated as follows: 
  
 (1) A Lost Customer shall be valued at 150% of the gross revenue to the Company in the most recent twelve (12) month period preceding the
date of loss of such account. If such Lost Customer had not been a Customer of the Company for an entire twelve (12) month period, such liquidated damages shall be 150% of the gross revenue which would have been, in the absence of a breach by the
Executive, realized by the Company in the initial twelve (12) month period of such Customer being served by the Company. 
  

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 (2) The Executive acknowledges that the foregoing damage amounts are fair and reasonable,
that an industry rule of thumb for the valuation of any agency is 150% of revenue and that, on the margin, selected accounts may be worth much more than 150% of their annual revenue to an agency. 
  
 (B) The Executive shall pay such liquidated damages to the Company within
ninety (90) business days after a final order is entered by the Arbitrator and received by the Executive ordering the Executive to make such payment. Thereafter, such liquidated damages shall bear interest at the prime rate of interest in effect at
the Bank of Virginia. The Executive acknowledges that a broker of record letter granted during the Restricted Period, if applicable, by a Customer in favor of the Executive or any person or entity with whom or which the Executive is directly
affiliated shall be prima facie evidence of a violation of Section X. of this Agreement and establishes a rebuttable presumption in favor of the Company that Section X. of this Agreement has been violated by the Executive. Further, the
Executive acknowledges that if the Restricted Period is applicable to him, he has an affirmative duty to inform such Customer that he cannot accept its business until after the Restricted Period. 
  
 (C) The Executive agrees that the foregoing remedies shall be cumulative and
not exclusive, shall not be waived by any partial exercise or nonexercise thereof and shall be in addition to any other remedies available to the Company at law or in equity. 
  
 XIV. Tolling of Restrictive Covenants During Violation. 
  
 If a material breach by the Executive of any of the restrictive covenants of
this Agreement occurs, the Executive agrees that the restrictive period of each such covenant so materially violated shall be extended by a period of time equal to the period of such material violation by the Executive. It is the intent of this
Section that the running of the restricted period of a restrictive covenant shall be tolled during any period of material violation of such covenant so that the Company shall get the full and reasonable protection for which it contracted and so that
the Executive may not profit by his material breach. 
  
 XV. Notices. 
  
 All notices and other
communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid: 

 

	 	(A)	If to the Company, to it at the following address: 

  
 4951 Lake Brook Drive, Suite 500 
 Glen Allen, Virginia 23060 
 Attn: Chairman of the Board 
  

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	 	(B)	If to the Executive, to him at the following address: 

  
 1304 Park Avenue 
 Richmond, Virginia 23220 
  
 or to such other place as either
party shall have specified by notice in writing to the other. A copy of any notice or other communication given under this Agreement shall also be sent to the Secretary and the Treasurer of the Company addressed to such officers at the then
principal office of the Company. 
  
 XVI.
Governmental Regulation. 
  
 Nothing contained in this
Agreement shall be construed so as to require commission of any act contrary to law and whenever there is any conflict between any provision of this Agreement and any statute, law, ordinance, order or regulation, the latter shall prevail, but in
such event any such provision of this Agreement shall be curtailed and limited only to the extent necessary to bring it within the legal requirements. 
  
 XVII. Arbitration. 
  
 Any dispute or controversy as to the interpretation, construction, application or enforcement of, or otherwise arising under or in connection with this
Agreement, shall be submitted at the request of either party hereto for mandatory, final and binding arbitration in the City of Richmond, Virginia, in accordance with the commercial arbitration rules then prevailing of the American Arbitration
Association. The Company and Executive waive the right to submit any controversy or dispute to a Court and/or a jury. Any award rendered therein shall provide the full remedies available to the parties under the applicable law and shall be final and
binding on each of the parties hereto and their heirs, executors, administrators, successors and assigns and judgment may be entered thereon in any court having jurisdiction. The prevailing party in any such arbitration shall be entitled to an award
by the arbitrator of all reasonable attorneys’ fees and expenses incurred in connection with the arbitration. 
  
 XVIII. Indemnification by the Company. 
  

The Company shall defend, indemnify and hold harmless the Executive to the fullest extent permitted by the laws of the Commonwealth of Virginia,
against any all claims, causes of actions, damages and expenses (including all legal fees and expenses) in any threatened, pending or completed action, arising out of or relating in any way to action or conduct by the Executive by reason of the fact
that he was a representative of the Company or was serving at the request of the Company or acts or conduct within the course of his employment pursuant to this Agreement or in his capacity as a director of the Company. If the Company contends that
any action or conduct by the Executive was not within the course of his employment or is otherwise not subject to this provision, the Company shall pay to the Executive all defense costs and expenses to defend such an action and shall only be
entitled to reimbursement of such fees and expenses if after a final adjudication, including all available appeals, there is a holding that the Executive was not entitled to the defense and indemnification under this provision. 
  

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 XIX. Governing Law. 
  
 This Agreement shall be governed by and construed in accordance with the
laws of the Commonwealth of Virginia. 
  
 XX.
Divisibility. 
  
 Should an arbitrator declare any
provision of this Agreement to be invalid, such declaration shall not affect the validity of the remaining portion of any such provision or the validity of any other term or provision of this Agreement as a whole or any part thereof, other than the
specific portion declared to be invalid. 
  
 XXI.
Headings. 
  
 The headings to the Sections and Paragraphs
of this Agreement are for convenience of reference only and in case of any conflict the text of this Agreement, rather than the headings, shall control. 
  
 XXII. Successors and Assigns. 
  
 This Agreement is binding upon and shall inure to the benefit of the successors and assigns of the Company and the heirs, executors and legal
representatives of the Executive. 
  
 XXIII.
Entire Agreement. 
  
 This Agreement contains the entire
understanding of the parties with respect to the subject matter contained herein and supersedes all prior agreements, arrangements and understandings relating to the subject matter and may only be amended by a written agreement signed by the parties
hereto or their duly authorized representatives. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  
 WITNESS: 
  

					
	 /s/ A. Brent King

	  	 /s/ Robert B. Lockhart

	 A. Brent King
	  	 Robert B. Lockhart

		
	 ATTEST:
	  	 HILB, ROGAL and HAMILTON COMPANY

			
	 /s/ Carolyn Jones

	  	By:	 	 /s/ Martin L. Vaughan, III

	 Carolyn Jones
	  	 	 	 Martin L. Vaughan, III

	 	  	 	 	 Chairman and Chief Executive Officer

  

 -11-Exhibit 10.25

 EXHIBIT 10.25 
  
 March 3, 2004 
  
 Jane S. Doe 
 1 Somewhere Street 
  
 Richmond, VA
23060 
  
 Dear Jane : 
  
 You have been granted a nonqualified stock option to purchase 10,000 shares of Common Stock
of the Company, subject to the terms and conditions (i) in the Company’s 2000 Stock Incentive Plan, as amended from time to time (the “Plan”), and (ii) as set forth in Exhibit A, attached hereto and made a part hereof (together, with
this letter, the “Agreement”), as follows: 
  

			
	 Date of Agreement/Grant:
	  	 February 9, 2004

	 Exercise Price per Share:
	  	 32.73

	 Total Exercise Price:
	  	 327,300.00

	 Expiration Date:
	  	 2/9/2011

	 Vesting Schedule:
	  	 25% per year for 4 years

	 	  	 2,500 on 02/09/2005

	 	  	 2,500 on 02/09/2006

	 	  	 2,500 on 02/09/2007

	 	  	 2,500 on 02/09/2008

  
 By my signature below, I hereby
acknowledge my Consent to Electronic Delivery, receipt of this Option, pursuant to all terms and conditions of the Plan, and electronic receipt of the Plan and Prospectus. I agree to conform to all of the terms and conditions of the Option and the
Plan. 
  

									
	 Signature:
	 	  

	 	 	 	 Date:
	 	 
	  

	 	 	 	 	 	 
	 	 	Jane S. Doe	 	 	 	 	 	 

  
 Note: If there are any
discrepancies in the name or address shown above, please make the appropriate corrections on this form. 

 EXHIBIT A 
  
 TERMS AND CONDITIONS 
 STOCK OPTION AGREEMENT 
  
 1. Exercise
of Option. Except as provided in paragraphs 4, 5, 6, 11 and 12 of these Terms and Conditions, this Option shall be exercisable as set forth in the Vesting Schedule for each full year, up to a total of four (4) full years, that Optionee continues
to be employed by the Company after the date of this Agreement. Once this Option has become exercisable with respect to any portion of the total number of shares in accordance with the preceding sentence, it shall continue to be exercisable with
respect to such shares until the termination of Optionee’s rights hereunder pursuant to paragraphs 4, 5 or 6, or until the Expiration Date. A partial exercise of this Option shall not affect Optionee’s right to exercise subsequently this
Option with respect to the remaining shares that are exercisable, subject to the conditions of the Plan and this Agreement. 
  
 2. Method of Exercising and Payment for Shares. This Option may be exercised only by written notice delivered to the attention of the Company’s Secretary at
the Company’s principal office. The written notice shall specify the number of shares being acquired pursuant to the exercise of the Option when such Option is being exercised in part in accordance with the Vesting Schedule. The exercise date
shall be the date such notice is received by the Company. Such notice shall be accompanied by payment of the Option price in full for each share (a) in cash (United States dollars) or by cash equivalent acceptable to the Company, or (b) by a
cashless exercise pursuant to Section IX(2) of the Plan. 
  
 3.
Nontransferability. This Option is nontransferable except, in the event of the Optionee’s death, by will or by the laws of descent and distribution subject to the terms hereof. During Optionee’s lifetime, this Option may be
exercised only by Optionee. 
  
 4. Exercise in the Event of Death. This
Option shall be exercisable in full in the event that Optionee dies while employed by the Company or an Affiliate and prior to the Expiration Date of this Option. In that event, this Option may be exercised by Optionee’s estate, or the person
or persons to whom his rights under this Option shall pass by will or the laws of descent and distribution. Optionee’s estate or such persons must exercise this Option, if at all, within one year of the date of Optionee’s death or during
the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date of the grant of the Option. 
  
 5. Exercise in the Event of Permanent and Total Disability. This Option shall be
exercisable in full if Optionee becomes Disabled while employed by the Company or an Affiliate and prior to the Expiration Date of this Option. In that event, Optionee must exercise this Option, if at all, within one year of the date he becomes
Disabled or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date of the grant of the Option. 
  
 6. Exercise After Termination of Employment. In the event that the Optionee retires
from employment with the Company after attaining age 62 and serving at least 10 consecutive years with the Company or an Affiliate or predecessor thereof, then this Option shall be exercisable in full but must be exercised by the Optionee, if at
all, within one year following his retirement date or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date of the
grant of the Option. In all events other than those events addressed in paragraphs 4 or 5 or the foregoing sentence of this paragraph 6, in which Optionee ceases to be employed by the Company: (a) Optionee may exercise the Option in whole or in part
with respect to that number of shares which are exercisable by him under the Vesting Schedule on the date his employment terminated, and (b) this Option must be exercised by Optionee, if at all, within ninety (90) days following the date upon which
he ceases to be employed by the Company or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date of the grant of
the Option. 
  
 7. Fractional Shares. Fractional shares shall not be
issuable hereunder, and when any provision hereof may entitle Optionee to a fractional share such fraction shall be disregarded. 
  
 8. No Right to Continued Employment. This Option does not confer upon Optionee any right with respect to continuance of employment by the Company or an Affiliate,
nor shall it interfere in any way with the right of the Company or an Affiliate to terminate his employment at any time. 
  
 9. Investment Representation. Optionee agrees that, unless such shares previously have been registered under the Securities Act of 1933, as amended (the
“Securities Act”): (i) any shares purchased by him hereunder will be purchased for investment and not with a view to distribution or resale and (ii) until such registration, certificates representing such shares may bear an appropriate
legend to assure compliance with the Securities Act. This investment representation shall terminate when such shares have been registered under the Securities Act. 

 10. Change in Capital Structure. Subject to any required action by the shareholders of the Company, the number of
shares of Common Stock covered by this Option, and the price per share thereof, shall be proportionately adjusted by the Company for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting
from any stock dividend (but only on the Common Stock), stock split, combination, reclassification, recapitalization or general issuance to holders of Common Stock of rights to purchase Common Stock at substantially below its then fair market value,
or any change in the number of such shares outstanding effected without receipt of cash or property or labor or services by the Company, or any spin-off or other distribution of assets to shareholders. 
  
 In the event of a change in the Common Stock of the Company as presently constituted, which
is limited to a change of all or a part of its authorized shares without par value into the same number of shares with a par value, or any subsequent change into the same number of shares with a different par value, the shares resulting from any
such change shall be deemed to be the Common Stock within the meaning of the Plan. 
  
 The grant of this Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or to
consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or assets. 
  
 11. Change of Control. Notwithstanding any other provision of this Agreement to the contrary, in the event of a Change of Control, the provisions of Section XIII(3) of the Plan shall apply to this Option.

  
 12. Forfeiture of Certain Gains. 
  
 (a) Termination for Cause. If Optionee’s employment is
terminated for “Cause” within one year of any exercise of this Option, in whole or in part, the Optionee shall pay to the Company an amount equal to the gain realized by Optionee from such exercise represented by the excess of the Fair
Market Value on the date of exercise over the Option price multiplied by the number of shares purchased, without regard to any subsequent market price increase or decrease (“Option Gain”). For purposes of this paragraph, “Cause”
shall have the meaning ascribed to it in any employment agreement between the Optionee and the Company that is in effect at the time of termination and, if no such agreement exists, it shall mean: 
  
 (i) the willful and continued failure of the Optionee to perform
substantially the Optionee’s duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the
Optionee by the Company which specifically identifies the manner in which the Company believes that the Optionee has not substantially performed the Optionee’s duties, or 
  
 (ii) the willful engaging by the Optionee in illegal conduct or gross misconduct which is materially and demonstrably
injurious to the Company. 
  
 (b) Forfeiture if Optionee
Engages in Certain Activities. If Optionee engages in any activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including but not limited to (i) accepting employment with or
serving as a consultant advisor or in any other capacity to an employer that is in competition with or acting against the interests of the Company, (ii) disclosing or misusing any confidential information or material concerning the Company or (iii)
participating in any hostile takeover attempt, then (1) this Option shall terminate effective the date on which Optionee enters into such activity, unless terminated sooner by operation of another term on condition of this Agreement or the Plan, and
(2) the Optionee shall pay to the Company an amount equal to the Option Gain realized by Optionee from any exercise of this Option, in whole or in part, within one year of the date such activity began. 
  
 (c) Right of Set-off. Optionee hereby consents to a deduction from any
amounts owed by the Company to Optionee from time to time (including amounts owed as wages or other compensation, fringe benefits or vacation pay, to the extent of any amounts Optionee owes the Company under paragraphs 12(a) and (b). Whether or not
the Company elects to make any set-off in whole or in part, if Company does not recover by means of set-off the full amount owed by Optionee under paragraphs 12(a) and (b), Optionee agrees to immediately pay the unpaid balance to the Company.

  
 13. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the Commonwealth of Virginia, except to the extent that federal law shall be deemed to apply. 
  
 14. Conflicts. In the event of any conflict between the provisions of the Plan as in effect on the date hereof and the provisions of this Agreement, the provisions
of the Plan shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof. 
  
 15. Optionee Bound by Plan. Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof. 

 
 16. Binding Effect. Subject to the limitations stated above and in the Plan, this
Agreement shall be binding upon and inure to the benefit of the legatees, distributes, and personal representatives of Optionee and the successors of the Company. 
  
 17. Gender. All pronouns used herein shall be deemed to refer to either the male or female as appropriate. 
  
 18. Notice and Consent to Electronic Delivery. The Company expects to deliver
notices and certain documents relating to its employee benefit plans by posting the information on the Company’s web site, intranet or electronic bulletin board or transmitting the material to employees by e-mail. These documents include
employee benefits plans and any amendments thereto, election forms, prospectuses, supplements to prospectuses, annual reports to shareholders, informational brochures and similar 

 information. The Company will provide you with e-mail notification of the posting of any of the foregoing documents. This
method of notification and access to documents relating to employee benefit plans will be in lieu of paper delivery of the same documents. To satisfy legal requirements, your signature is an affirmative election to accept electronic notification and
delivery of these documents in lieu of paper delivery, as well as all other terms of the award. 
  
 19. Defined Terms. All terms used herein that are defined in the Plan shall have the meanings given to them in the Plan. 

 NONQUALIFIED STOCK OPTIONS 
 FOR NAMED EXECUTIVE OFFICERS 
  

					
	 	  	GRANT DATE

	  	OPTIONS GRANTED

	 Daniel J. Donovan
	  	2/9/04	  	10,000
			
	 Thomas A. Golub
	  	—  	  	—  
			
	 Timothy J. Korman
	  	2/9/04	  	16,000
			
	 Robert B. Lockhart
	  	2/9/04	  	24,000
			
	 John P. McGrath
	  	2/9/04	  	10,000
			
	 Andrew L. Rogal
	  	—  	  	—  
			
	 Martin L. Vaughan, III
	  	2/9/04	  	50,000

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