Document:

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                                                                 EXHIBIT 10.3(a)

                            PROASSURANCE CORPORATION

                              STOCK OWNERSHIP PLAN

                                 JANUARY 1, 2002
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                                TABLE OF CONTENTS

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                                                                                      PAGE
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<S>      <C>                                                                          <C>
1.       DEFINITIONS................................................................    1
2.       ADMINISTRATION.............................................................    5
3.       ELIGIBILITY................................................................    5
4.       METHOD OF PARTICIPATION....................................................    6
5.       ACCOUNTING.................................................................    8
6.       LOANS FROM CORPORATION.....................................................    9
7.       PARTICIPANT'S RIGHTS AS SHAREHOLDER.......................................    12
8.       RIGHTS NOT TRANSFERABLE...................................................    12
9.       WITHDRAWAL OF SHARES......................................................    13
10.      PARTICIPANT'S RIGHT TO PUT SHARES.........................................    14
11.      TERMINATION OR AMENDMENT OF PLAN..........................................    15
12.      SPECIAL TRANSITION RULES..................................................    15
</TABLE>

<PAGE>

                            PROASSURANCE CORPORATION
                              STOCK OWNERSHIP PLAN

         Effective December 1, 1992, the Board of Directors of Mutual Assurance,
Inc. adopted the Mutual Assurance, Inc. Open Market Stock Purchase Plan (the
"Plan") to provide incentives to a broad base of employees of Mutual Assurance,
Inc. and its subsidiaries in connection with the purchase of the common stock of
Mutual Assurance, Inc. Following a corporate reorganization, MAIC Holdings, Inc.
assumed the sponsorship of the Plan. Effective August 31, 1995, the name of the
Plan was changed to the MAIC Holdings, Inc. Open Market Stock Purchase Plan,
and, effective on and after August 31, 1995, shares of the common stock of MAIC
Holdings, Inc. were purchased pursuant to the provisions of the Plan. Effective
June 21, 1996, the name of the Plan was changed to the MAIC Holdings, Inc.
Thrift Plan. Thereafter, the corporate name of MAIC Holdings, Inc. was changed
to Medical Assurance, Inc. Effective June 27, 2001, as a result of a corporate
reorganization, shares of the common stock of ProAssurance Corporation (the
"Corporation") were substituted for shares of Medical Assurance, Inc. under the
Plan. Effective January 1, 2002, the Corporation is assuming the sponsorship of
the Plan, the Plan is being restated and amended to make certain changes and
improvements therein, and the name of the Plan is being changed to the
ProAssurance Corporation Stock Ownership Plan.

         1.       DEFINITIONS. For purposes of this Plan, the following terms
shall have the meanings hereinafter described:

                  (a) The term "Account" shall mean the bookkeeping subaccounts
         established for each Participant in accordance with paragraph 5 below.

                                       1
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                  (b) The term "Agent" shall mean the independent agent
         appointed by the Plan Administrator to assist it in the administration
         of the Plan as herein provided. Any reference to the Plan Administrator
         shall be deemed to include the Agent to the extent that the Plan
         Administrator has engaged the Agent to perform its obligations
         hereunder.

                  (c) The term "Change of Control" shall occur, with respect to
         the Corporation or a Participating Employer, when any "Person," as
         defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the
         "1934 Act"), other than a person in control of the Corporation or a
         Participating Employer on the Effective Date, either (i) becomes the
         "Beneficial Owner," as defined by Rule 13d-3 of the regulations
         promulgated by the SEC under the 1934 Act, directly or indirectly, of
         more than 50.1% of the then outstanding voting securities of the
         Corporation or of a Participating Employer; or (ii) purchases or
         acquires substantially all of the assets of the Corporation or a
         Participating Employer with the result that the Corporation or the
         Participating Employer ceases to function as part of an insurance
         holding company system that offers medical professional liability
         insurance; or (iii) is a party to a merger, consolidation or
         reorganization with the Corporation or a Participating Employer that
         results in the shareholders as of the Effective Date of the Corporation
         or a Participating Employer being the Beneficial Owners of less than
         50.1% of the combined voting power of the surviving entity.

                  (d) The term "Common Stock" shall mean the common stock of the
         Corporation, having a par value of $.01 each.

                  (e) The term "Corporation" shall mean ProAssurance
         Corporation, a corporation organized and existing under the laws of the
         State of Delaware.

                                       2
<PAGE>

                  (f) The term "Director" shall mean an individual who is not an
         Employee and who is serving on the Board of Directors of the
         Corporation or a Participating Employer.

                  (g) The term "Effective Date" shall mean the effective date of
         this amended and restated plan which is January 1, 2002.

                  (h) The term "Employee" shall mean each common-law employee of
         a Participating Employer who is scheduled to work at least twenty (20)
         hours per week. An individual who is absent from work due to a leave of
         absence which has been approved by his Participating Employer and who,
         prior to the commencement of such leave of absence, was regularly
         scheduled to work at least twenty (20) hours per week, will be
         considered to be an Employee during such leave of absence, provided
         that such individual returns to active employment immediately following
         the expiration of the leave of absence.

                  (i) The term "Loan" shall mean a loan made by the Corporation
         to a Participant in accordance with the terms of the Plan.

                  (j) The term "Loan Proceeds" shall mean the proceeds of any
         Loan made by the Corporation to a Participant.

                  (k) The term "Loan Shares" shall mean the shares of Common
         Stock purchased for the Account of a Participant with the Loan Proceeds
         attributable to a Loan made to such Participant. Prior to the Effective
         Date, Loan Shares were called "Thirty-Five Percent Shares."

                  (l) The term "Participant" shall mean an Employee who is
         eligible to participate in the Plan and for whom an Account has been
         established.

                                       3
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                  (m) The term "Participant Shares" shall mean collectively the
         shares of Common Stock deposited by a Participant as Share Deposits and
         the shares of Common Stock purchased for the Account of a Participant
         with his Cash Deposits. Prior to the Effective Date, Participant Shares
         were called "Sixty-Five Percent Shares."

                  (n) The term "Participating Employer" shall mean the
         Corporation and each wholly-owned (direct or indirect) subsidiary of
         the Corporation which may elect to participate in the Plan for the
         benefit of its eligible Employees.

                  (o) The term "Participation Date" shall mean each March 1st,
         June 1st, September 1st, and December 1st occurring after the Effective
         Date and during the continuance of the Plan; provided, however, that if
         such date is not a business day, the Participation Date will be the
         next business day following such March 1st, June 1st, September 1st, or
         December 1st.

                  (p) The term "Participation Period" shall mean each three (3)
         month period commencing on a Participation Date, except that the first
         Participation Date after the Effective Date will begin on January 1,
         2002 and end on February 28, 2002.

                  (q) The term "Plan" shall mean this ProAssurance Corporation
         Stock Ownership Plan, as the same may from time to time be amended.

                  (r) The term "Plan Administrator" shall mean the Corporation,
         unless the Corporation shall elect to appoint another entity or person
         as the Plan Administrator.

                  (s) The term "Plan Year" shall mean the calendar year.

                  (t) The term "Retirement" shall mean a Participant's
         termination of employment at or following his attainment of the age of
         fifty-five (55) or prior thereto with the consent and approval of his
         Participating Employer.

                                       4
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                  (u) The term "Share Deposit" shall mean the shares of Common
         Stock deposited by a Participant with the Plan Administrator as
         collateral for a Loan in accordance with the terms of the Plan.

                  (v) The term "Value" shall mean, with respect to the valuation
         of each share included in a Share Deposit on the March 1st
         Participation Date, the average closing price of a share of Common
         Stock as reported by the New York Stock Exchange on each business day
         during the calendar month of December.

         2.       ADMINISTRATION. The Plan Administrator will be responsible for
the administration of the Plan including, without limitation, the determination
of the eligibility of Employees to participate in the Plan, the collection of
Cash Deposits and Share Deposits from Participants, the making of Loans, the
purchase of Shares of Common Stock, and the allocation of such shares of Common
Stock to the Accounts of Participants, and the maintenance of Account and Loan
records. The Plan Administrator shall also have the right to interpret the Plan
and its determinations shall be conclusive and binding on all parties. To assist
it in the administration of the Plan, the Corporation may appoint an Agent to
perform any or all of the functions of the Plan Administrator.

         3.       ELIGIBILITY. An Employee or Director will become eligible to
participate in the Plan in accordance with the following:

                  (a) Any Employee who has completed at least six (6) months of
         employment with one or more Participating Employers and any Director
         who has served as a member of the Board of Directors of one or more
         Participating Employers for at least six (6) months during the calendar
         year ending December 31, 2001, is eligible to participate in the Plan
         on the Effective Date.

                                       5
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                  (b) After the Effective Date, any Employee who completes at
         least six (6) months of employment with one or more Participating
         Employers and any Director who serves on the Board of Directors of one
         or more Participating Employers for at least six (6) months, will be
         eligible to participate in the Plan commencing with the first day of
         any Participation Period thereafter, provided that he is in the active
         service of the Participating Employer or on an approved leave of
         absence on such date.

                  (c) No Employee or Director can participate in the Plan if
         such Employee or Director, at any time immediately after the stock is
         purchased under the Plan, owns stock possessing five percent (5%) or
         more of the total combined voting power or value of all classes of
         stock of the Corporation. For purposes of determining the stock
         ownership percentage of an Employee and Director: (i) the Employee or
         the Director shall be considered as owning the stock owned, directly or
         indirectly, by or for his brothers and sisters (whether by the whole or
         half blood), spouse, ancestors, and lineal descendants; and (ii) stock
         owned, directly or indirectly, by or for a corporation, partnership,
         estate, or trust, shall be considered as being owned proportionately by
         or for its shareholders, partners, and beneficiaries.

                  (d) If a Participant elects to stop making Payroll Deposits
         during a Participation Period, such Participant must wait until the
         next Plan Year to reenroll in the Plan.

         4.       METHOD OF PARTICIPATION.

                  (a) An Employee or Director who is eligible to participate in
         the Plan may become a Participant during any Participation Period by
         executing and filing with the Plan

                                       6
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Administrator a written enrollment form (in such form as may be prescribed by
the Plan Administrator from time to time) for any one of the following
elections:

                                       7
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                           (i) A Participant may elect to make Cash Deposits
                  during such Participation Period through payroll deductions by
                  completing, executing and filing an enrollment form with the
                  Plan Administrator at least thirty (30) days prior to the
                  commencement of such Participation Period indicating thereon
                  the total dollar amount that such Participant desires to be
                  deducted from his compensation during such Participation
                  Period. The Cash Deposits through payroll deductions are
                  subject to a minimum rate of $5.00 for each regularly
                  scheduled compensation payment during the Participation
                  Period. A Participant may elect to terminate his election to
                  make Cash Deposits through payroll deductions at any time by
                  delivery of written notice to the Plan Administrator in which
                  event no further installments of the Cash Deposit will be paid
                  from his compensation during such Participation Period; or

                           (ii) With respect to the March 1st Participation Date
                  only, a Participant may elect to make a Cash Deposit or Share
                  Deposit in a lump sum in advance of the March 1st
                  Participation Date by completing, executing and filing an
                  enrollment form with the Plan Administrator during the month
                  of January preceding such date; provided that the minimum
                  amount of any lump sum Cash Deposit, and the minimum Value of
                  any lump sum Share Deposit, shall be $1000.

                           (iii) Loans will be funded by the Corporation within
                  thirty (30) days after each respective Participation Date.

                  (b) On or before the later of (1) the fifth (5th) business day
         following the funding of the Loan, or (2) the earliest date on which
         shares of Common Stock are reasonably available for purchase, the Plan
         Administrator will apply the cash then held for the Accounts of
         Participants toward the purchase of such number of shares of Common
         Stock as can then be purchased in ordinary brokerage transactions in
         the public market. The Plan Administrator will allocate the shares so
         purchased (including fractional shares) to each Participant's
         Participant Shares Subaccount and Loan Shares Subaccount, as provided
         in paragraph 5 below.

         5.       ACCOUNTING. An Account shall be established in the name of
each Participant. Such Account will further be divided into subaccounts as
follows:

                                       8
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                  (a) Cash Subaccount. All Cash Deposits and investment earnings
         attributable to such Cash Deposits will be allocated to the Cash
         Subaccount. Pending purchases of Common Stock hereunder, the Cash
         Subaccount will be invested in short term obligations such as money
         market funds, savings accounts, and/or certificates of deposit.

                  (b) Participant Shares Subaccount. All Share Deposits and all
         shares of Common Stock purchased with monies from the Cash Subaccount
         will be allocated to the Participant Shares Subaccount.

                  (c) Loan Shares Subaccount. All Loan Proceeds and shares of
         Common Stock purchased with such Loan Proceeds will be allocated to the
         Loan Shares Subaccount.

         6.       LOANS FROM CORPORATION.

                  (a) The Corporation shall make a Loan to each Participant who
         participated in the Plan during the preceding Participation Period on
         the terms and conditions hereinafter set forth:

                           (1) The amount of the Loan will be based on the
                  amount of the Cash Deposits and Share Deposits made by the
                  Participant during the Plan Year as follows:

                               (A)     The Company will make a loan to the
                                       Participant equal to 100% of the
                                       first $2,000 of the sum of the Cash
                                       Deposits and the Value of Share
                                       Deposits made during any Plan Year;
                                       and

                               (B)     The Company  will make a loan to the
                                       Participant equal to 50% of the next
                                       $8,000 of the sum of the Cash Deposits
                                       and the Value of Share Deposits made
                                       during the Plan Year.

                           (2) The Loan shall be funded by the Corporation in
                  accordance with subparagraph 4(a)(iii) above.

                           (3) The Loan proceeds will be applied to the purchase
                  of shares of Common Stock in accordance with subparagraph 4
                  (b) above.

                                       9
<PAGE>

                  (b) Each Loan will bear interest at the prime rate as
         published in the Wall Street Journal on the Participation Date (the
         "prevailing rate"). Principal and interest on the Loan will be due and
         payable on the first to occur of the following (the "Due Date"): (i)
         three (3) years from the date on which the Loan is made; or (ii) the
         date on which the Participant ceases to be an Employee for whatever
         cause. A Loan may be prepaid at any time without penalty.

                  (c) Each Loan will be secured by (i) the shares of Common
         Stock purchased with Cash Deposits made during the Participation Period
         preceding the Participation Date for the Loan; (ii) the shares of
         Common Stock deposited as Share Deposits in the Participation Period
         preceding the Participation Date for the Loan; and (iii) the shares of
         Common Stock purchased with the Loan Proceeds from the Loan. Such
         shares of Common Stock shall also secure all other Loans made by the
         Corporation to such Participant so long as they are held by the Plan
         Administrator. The Loan shall be nonrecourse in that no Participant
         shall have personal liability for any deficiency arising after the net
         proceeds from the sale of the shares of Common Stock securing the Loan
         have been applied to the repayment of the Loan. Subject to subparagraph
         (d) below, the Plan Administrator shall hold the shares of Common Stock
         securing a Loan until they are distributed to the Participant in
         accordance with paragraph 9 below.

                  (d) All principal and accumulated interest on a Loan will be
         repaid to the Corporation by the Participant no later than thirty (30)
         days after the Due Date. If the Participant fails to make such payment,
         then the Corporation may, if the Participant shall not have cured such
         default within thirty (30) days after written notice of such default,
         declare

                                       10
<PAGE>

         all outstanding Loans made to the Participant immediately due and
         payable and cause all of the shares of Common Stock securing such Loans
         to be sold "at the market." The proceeds from the sale of such shares
         shall be first applied to the brokerage commissions and other expenses
         incurred in connection with the sale of the shares, next to the payment
         of the accumulated interest on the Loans, and finally to the payment of
         the principal of the Loans. Any balance remaining shall then be paid to
         the Participant.

                  (c) If the Loan has not been paid or previously become due and
         payable, all principal and accumulated interest on the Loan will be
         forgiven by the Corporation on the earlier of the following dates:

                           (i) On the Due Date of the Loan as provided in
                  subparagraph (b) above, provided that the Participant on such
                  date is an Employee of a Participating Employer and has been
                  an Employee of a Participating Employer continuously since the
                  date that the Loan was made and for a period of three (3)
                  years.

                           (ii) On the date that a Participant ceases to be an
                  Employee of a Participating Employer on or before the date
                  specified in subparagraph (i) above by reason of (a) a
                  determination by the Corporation that the Participant is
                  disabled by illness or injury from performing his duties as an
                  Employee; (b) the death of a Participant; or (c) the
                  Retirement of a Participant.

                           (iii) On the date of a Change of Control of a
                  Participant's employer (other than the Corporation), provided,
                  however, that if the Participant becomes an Employee of
                  another Participating Employer within thirty (30) days after
                  such Change of Control, such Loan will not be forgiven as a
                  result of the Change of Control.

                           (iv) On the date of a Change of Control of the
                  Corporation.

                  (f) The written election form executed by each Participant (in
         such form as may be prescribed by the Plan Administrator from time to
         time) shall evidence the terms of Loans

                                       11
<PAGE>

         hereunder and provide for the pledge of the shares of Common Stock as
         security for the Loans to be made to the Participant.

         7.       PARTICIPANT'S RIGHTS AS SHAREHOLDER. The Participant will be
the beneficial owner of the Participant Shares and the Loan Shares held by the
Plan Administrator for the Account of a Participant. The Participant will have
the right to vote such shares at any meeting of the shareholders of the
Corporation and will receive all communications addressed by the Corporation to
its shareholders. All dividends (other than stock dividends) paid with respect
to such shares shall, at the option of the Corporation, either be paid to the
Participant or credited to the Cash Subaccount of a Participant. Stock dividends
or stock splits paid with respect to Participant Shares shall be credited to the
Participant Shares Subaccount and stock dividends or stock splits paid with
respect to Loan Shares shall be credited to the Loan Shares Subaccount. If the
Corporation shall offer any subscription rights to its shareholders, the Plan
Administrator shall to the extent it is able provide to each Participant who
then has shares of Common Stock allocated to his Account the right to exercise,
sell, or assign, in accordance with the terms thereof, all subscription rights
issued with respect to the shares in his Account and to receive any shares
subscribed for, free from pledge.

         8.       RIGHTS NOT TRANSFERABLE. No Participant shall be permitted to
sell, assign, transfer, pledge, or otherwise dispose of or encumber either his
right to participate in the Plan or his interest in any shares of Common Stock
being held by the Plan Administrator for the Account of a Participant. Except as
otherwise provided by law, the right and interest of a Participant under the
Plan shall not be liable for or subject to the debts, contracts or liabilities
of such Participant. If any such action is taken by the Participant, or any
claim is asserted by any other party in respect of such right and interest, such
action or claim will be treated as a default under any outstanding Loans made

                                       12
<PAGE>

to such Participant, and the Corporation, except as it may be otherwise required
by law, may sell any pledged shares as provided for in paragraph 6(d) hereof.

         9.       WITHDRAWAL OF SHARES.

                  (a) Except as provided in subparagraphs (b) and (c) below, a
         Participant may not withdraw any shares of Common Stock held by or for
         the Plan Administrator and allocated to the Participant's Account under
         the Plan.

                  (b) Upon payment in full of all principal and accumulated
         interest due on all outstanding Loans, the Participant may withdraw all
         of the shares of Common Stock held by the Plan Administrator and
         allocated to the Account of such Participant.

                  (c) Upon the repayment of a Loan, the Plan Administrator will
         cause to be distributed to the Participant from the shares of Common
         Stock held by the Plan Administrator and allocated to the Account of
         said Participant the shares of Common Stock pledged as collateral for
         such Loan in accordance with (i), (ii) and (iii) of subparagraph 6(c)
         above.

                  (d) In the case of any distribution of shares of Common Stock
         held in the Loan Shares Subaccount of a Participant, the Plan
         Administrator, if required by applicable law, shall withhold a portion
         of such shares so distributed for the purpose of generating funds to
         pay federal and state withholding taxes; provided that the Plan
         Administrator may at its election and at the request of a Participant
         make other arrangements for the payment of withholding taxes.

                                       13
<PAGE>

         10.      PARTICIPANT'S RIGHT TO PUT SHARES.

         For shares purchased prior to January 1, 2002:

                  (a) Upon a Participant's termination of employment for reasons
         other than his Retirement, the Participant shall have the right and
         option to sell to the Corporation all of the Loan Shares and/or
         Participant Shares then held by the Plan Administrator as security for
         the outstanding Loans made to the Participant on the following terms:

                           (i) The Participant may sell to the Corporation the
                  Loan Shares at a purchase price equal to the principal and
                  accrued interest due on the Loans secured by such Loan Shares;
                  and

                           (ii) The Participant may sell to the Corporation the
                  Participant Shares at a purchase price equal to 90% of the
                  acquisition cost for such Participant Shares. The acquisition
                  cost of Share Deposits will be the Value of such shares as
                  determined in connection with the Loan secured by such shares;
                  provided, however, that the "put" right with respect to
                  Participant Shares shall not apply to Participant Shares
                  acquired after the Effective Date, but only to shares acquired
                  prior to the Effective Date.

         For shares purchased after January 1, 2002:

                  (a) Upon a Participant's termination of employment for reasons
         other than his Retirement, the Participant shall have the right and
         option to sell to the Corporation all of the Loan Shares then held by
         the Plan Administrator as security for the outstanding Loans made to
         the Participant on the following terms:

                           (i) The Participant may sell to the Corporation the
                  Loan Shares at a purchase price equal to the principal and
                  accrued interest due on the Loans secured by such Loan Shares;
                  and

                  (b) The Participant shall exercise his put option by giving
         the Corporation written notice within sixty (60) days following the
         date of his termination of employment.

                                       14
<PAGE>

                  (c) Upon exercise of the put option, the Corporation shall
         purchase all of the Loan Shares and/or Participant Shares allocated to
         the Participant's Account at the purchase price described in
         subparagraph (a) hereof. The proceeds of sale shall first be applied to
         the satisfaction of all principal and accumulated interest due on any
         outstanding Loan to the Participant. Any balance remaining shall then
         be paid to the Participant.

         11.      TERMINATION OR AMENDMENT OF PLAN. The Corporation reserves the
right to amend, modify, suspend, or terminate the Plan at any time without
notice, provided that no such amendment, modification, suspension, or
termination shall adversely affect, without the Participant's written consent,
any shares of Common Stock previously issued to the Participant.

         12.      SPECIAL TRANSITION RULES. The Plan has been restated and
amended in its entirely as of the Effective Date. Under the Plan as it existed
prior to the Effective Date, a Participation Period commenced September 1, 2001
and was due to end on February 28, 2002. As a result of this amendment of the
Plan, this Participation Period will now end on December 31, 2001. This latter
date will be a Participation Date, and shares of Common Stock will be purchased
on this date on the terms and conditions described in the Plan as it existed
prior to the Effective Date. However, any Participant in the Plan who has
elected to participate for the Participation Period beginning September 1, 2001,
may elect to withdraw any Cash Deposit (plus interest thereon) prior to December
31, 2001, by delivering a notice to the Plan Administrator to that effect prior
to December 21, 2001. A Participant who elects such a withdrawal may elect to
reparticipate in the Plan effective as of the Effective Date.<PAGE>
                                                                 EXHIBIT 10.3(b)

                                 TRUST AGREEMENT

         THIS AGREEMENT made this ____ day of __________, 1999, effective as set
forth below, by and between MICHIGAN EDUCATIONAL EMPLOYEES MUTUAL INSURANCE
COMPANY (the "Company") and MICHIGAN NATIONAL BANK ("Trustee");

         WHEREAS, the Company has adopted the Amended and Restated Michigan
Educational Employees Mutual Insurance Company Incentive Plan (the "Plan"),
which is attached hereto as Appendix A and by this reference made a part hereof
(along with any amendments thereto as are made hereafter);

         WHEREAS, the Company has incurred or expects to incur liability under
the terms of such Plan with respect to incentive awards granted to the
individuals participating in such Plan ("Participants");

         WHEREAS, as anticipated by Section 15(b) of the Plan, and in accordance
with resolutions adopted by the Company's Board of Directors, the Company wishes
to establish the MEEMIC Incentive Plan Trust (hereinafter the "Trust") and to
contribute to the Trust assets that shall be held therein, subject to the claims
of the Company's creditors in the event of the Company's Insolvency, until paid
to the Participants and their beneficiaries in such manner and at such times as
specified in the Plan;

         WHEREAS, while it is the intention of the Company that this Trust shall
constitute an "unfunded" arrangement, it is the further intention of the Company
to make contributions to the Trust to provide itself with a source of funds to
assist the Company in meeting its liabilities under the Plan;

         NOW, THEREFORE, intending to be legally bound hereby, the parties do
hereby establish the Trust and agree that the Trust shall be comprised, held and
disposed of as follows:

                                    ARTICLE 1
                             ESTABLISHMENT OF TRUST

         1.1 Establishment of Trust. The Company hereby establishes with the
Trustee a trust to be known as the MEEMIC Incentive Plan Trust, to accept such
sums of money, stock in MEEMIC Holdings, Inc. (the "Holding Company"), and other
property acceptable to the Trustee as from time to time shall be paid or
delivered to the Trustee, to be held in trust, administered and disposed of by
Trustee as provided in this Trust Agreement.

<PAGE>

         1.2 Irrevocability of Trust. The Trust hereby established shall be
irrevocable; provided, however, that the Trust shall be deemed to be revocable
as provided in Section 4.2 of this Trust Agreement with respect to those assets
held by the Trustee with respect to any unvested incentive awards granted under
the Plan.

         1.3 Grantor Trust. The Trust is intended to be a grantor trust, of
which the Company is the grantor, within the meaning of subpart E, part I,
subchapter J, chapter 1, subtitle A of the Code, and shall be construed
accordingly.

         1.4 Limitations. The principal of the Trust, and any earnings and
profits thereon shall be held in trust, separate and apart from other funds of
the Company and shall be used exclusively for the uses and purposes of Plan
Participants and their beneficiaries, and the policyholders and general
creditors of the Company, as herein set forth. Plan Participants and their
beneficiaries shall have no preferred claim on, or any beneficial ownership
interest in, any assets of the Trust. Any rights created under the Plan and this
Trust Agreement shall be mere unsecured contractual rights of Plan Participants
and their beneficiaries against the Company. Any assets held by the Trust will
be subject to the claims of the Company's policyholders and general creditors in
the event the Company is Insolvent.

         1.5 Definitions. Unless the context of this Trust Agreement otherwise
requires, or unless otherwise defined herein, the terms defined in the Plan
shall have the same meaning when used herein as the meaning given to those terms
in the Plan:

                  (a) "Code" means the Internal Revenue Code of 1986, as
         amended.

                  (b) "Insolvent" or "Insolvency" means the condition of the
         Company as described in Section 3.1 of this Trust Agreement.

         1.6 Construction. Unless the context indicates a contrary intention,
words of masculine and feminine gender in this Trust Agreement shall be
construed to include the opposite gender, the singular form shall be construed
to include the plural and the plural form shall be construed to include the
singular. The underscored captions are for the sole purpose of convenience in
identifying the general content of the section to which they pertain and shall
not be given any significance or importance in the construction of this Trust
Agreement.

                                    ARTICLE 2
                   PAYMENTS TO PARTICIPANTS AND BENEFICIARIES

         2.1 Payment Schedule and Tax Withholding. The Company shall from time
to time deliver to the Trustee a schedule (the "Payment Schedule") that
indicates the amounts payable in respect of each Plan Participant (and/or his
beneficiaries), that provides a formula or other instructions acceptable to the
Trustee for determining the amounts so payable, the form in which

                                       2
<PAGE>

each such amount is to be paid (as provided for or available under the Plan,
including, but not limited to, payment in the form of Holding Company stock),
and the time of commencement for payment of such amounts. Except as otherwise
provided herein, the Trustee shall make payments to the Plan Participants and
their beneficiaries in accordance with such Payment Schedule. The Trustee shall
make provision for the reporting and withholding of any federal, state or local
taxes that may be required to be withheld with respect to the payment of
benefits pursuant to the terms of the Plan and shall pay amounts withheld to the
appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by the Company.

         2.2 Entitlement to Distributions Pursuant to the Plan. The entitlement
of a Plan Participant or his beneficiaries to benefits under the Plan shall be
determined by the Company or by such party as the Company shall designate under
the Plan, and any claim for such benefits shall be considered and reviewed under
the procedures set out in the Plan. Where any dispute arises as to whom or in
what form payment or the delivery of any funds or property should be made by the
Trustee, the Trustee may postpone such payment or delivery until the dispute
shall have been adjudicated by a court of competent jurisdiction or until the
Trustee shall have been indemnified to its satisfaction against loss.

         2.3 Distributions Pursuant to the Plan. The Company may make payment of
benefits directly to Plan Participants or their beneficiaries as they become due
under the terms of the Plan. The Company shall notify Trustee of its decision to
make payment of benefits directly, prior to the time amounts are payable to Plan
Participants or their beneficiaries. In addition, if the principal of the Trust,
and any earnings thereon, are not sufficient to make payments of benefits in
accordance with the terms of the Plan, the Company shall make the balance of
each such payment as it falls due. The Trustee shall notify the Company when
principal and earnings are not sufficient for such purposes.

         2.4 Manner of Payment. The Trustee may make any distribution or payment
required to be made by it hereunder by mailing its check for the specified
amount (or provide appropriate documentation transferring ownership, for
distributions made in kind), to or for the benefit of the person to whom such
distribution or payment is to be made, at such address as was last furnished to
the Trustee.

         2.5 Release of the Company upon Payment. To the extent that the Trustee
pays benefits due a Plan Participant or his beneficiaries under the Plan, the
Company shall be released from the obligation to pay such benefits. To the
extent that the Trustee fails to pay such benefits, in whole or in part, the
Company shall pay any remaining amount due any such Participant or his
beneficiaries under the Plan, to the extent the Company is liable therefor under
the terms of the Plan.

                                       3
<PAGE>

                                    ARTICLE 3
         TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY
                           WHEN COMPANY IS INSOLVENT

         3.1 Trustee's Responsibility if Company is Insolvent. The Trustee shall
cease payment of benefits to Plan Participants and their beneficiaries if the
Company is Insolvent. The Company shall be considered "Insolvent" for purposes
of this Trust Agreement if (i) the Company is unable to pay its debts as they
become due, or (ii) the Company is subject to a delinquency proceeding as
defined in M.C.L. 500.8103(c).

         3.2 Rights of General Creditors of the Company. At all times during the
continuance of this Trust, as provided in Section 1.4 hereof, the principal and
income of the Trust shall be subject to claims of policyholders and general
creditors of the Company as set forth below.

                  (a) The Board of Directors and the Chief Executive Officer of
         the Company shall have the duty to inform the Trustee in writing in of
         the Company's Insolvency. If a person claiming to be a policyholder or
         creditor of the Company alleges in writing to the Trustee that the
         Company has become Insolvent, the Trustee shall determine whether the
         Company is Insolvent (pursuant to the definition set forth in Section
         3.1) and, pending such determination, the Trustee shall discontinue
         payment of benefits to Plan Participants or their beneficiaries.

                  (b) Unless the Trustee has actual knowledge of the Company's
         Insolvency, or has received notice from the Company or a person
         claiming to be a policyholder or creditor alleging that the Company is
         Insolvent, Trustee shall have no duty to inquire whether the Company is
         Insolvent. The Trustee may in all events rely on such evidence
         concerning the Company's solvency as may be furnished to Trustee and
         that provides Trustee with a reasonable basis for making a
         determination concerning the Company's solvency.

                  (c) If at any time the Trustee has determined that the Company
         is Insolvent, Trustee shall discontinue payments to Plan Participants
         or their beneficiaries and shall hold the assets of the Trust for the
         benefit of the Company's policyholders and general creditors. Nothing
         in this Trust Agreement shall in any way diminish any rights of Plan
         Participants or their beneficiaries to pursue their rights as general
         creditors of the Company with respect to benefits due under the Plan or
         otherwise.

                  (d) The Trustee shall resume the payment of benefits to Plan
         Participants or their beneficiaries in accordance with Article 2 of
         this Trust Agreement only after Trustee has determined that the Company
         is not Insolvent (or is no longer Insolvent).

         3.3 Trustee's Responsibility if Payments Resume. Provided that there
are sufficient assets, if Trustee discontinues the payment of benefits from the
Trust pursuant to Section 3.2 hereof and subsequently resumes such payments, the
first payment following such discontinuance shall include the aggregate amount
of all payments due to Plan Participants or

                                       4
<PAGE>

their beneficiaries under the terms of the Plan for the period of such
discontinuance, less the aggregate amount of any payments made to Plan
Participants or their beneficiaries by the Company in lieu of payments provided
hereunder during any such period of discontinuance.

                                    ARTICLE 4
                               PAYMENTS TO COMPANY

         4.1 Prohibition against Reversion or Diversion. Except as provided in
Section 4.2 and in Articles 3 and 12 hereof, the Company shall have no right or
power to direct the Trustee to return to the Company or to divert to others any
of the Trust assets before all payments of benefits have been made to Plan
Participants or their beneficiaries pursuant to the terms of the Plan.

         4.2 Return of Forfeitures. Notwithstanding anything in this Trust
Agreement to the contrary, the Company may direct the Trustee to return to the
Company any assets held by the Trustee (the identity of which will be determined
by the Company), with respect to any unvested incentive awards granted under the
Plan which are forfeited by a Plan Participant in accordance with the provisions
of the Plan.

                                    ARTICLE 5
                              INVESTMENT AUTHORITY

         5.1 Authority of Trustee. The Trustee shall hold, invest and reinvest
the Trust, without distinction between principal and income, in such securities
or other property as the Trustee deems advisable, including (without limiting
the generality of the foregoing) shares of stock, options, mutual funds, life
insurance and annuity contracts, deposit administration contracts, and other
contracts issued by insurance companies, bonds, notes, debentures, savings
accounts, certificates of deposit (issued by any banking or brokerage
institution, including a corporate fiduciary hereunder), and other evidences of
indebtedness. Such investments may include securities issued by the Holding
Company. Except as otherwise provided herein, all rights associated with assets
of the Trust shall be exercised by the Trustee or the persons designated by the
Trustee, and shall in no event be exercisable by or rest with the Company, the
Plan Participants or their beneficiaries.

         5.2 Investment Powers. Except as otherwise provided herein, the Trustee
has the authority, in addition to powers otherwise conferred on it by law:

                  (a) To sell, exchange, convey, transfer or otherwise dispose
         of any property held by the Trustee, by private contract or at public
         auction; and no person dealing with the Trustee shall be bound to see
         to the application of the purchase money or to inquire into the
         validity, expediency or propriety of any such transaction;

                                       5
<PAGE>

                  (b) To exercise the voting rights of any securities; to give
         general or special proxies or powers of attorney with or without power
         of substitution; to exercise any conversion privileges, subscription
         rights or other options, and to make any payments incidental thereto;
         to consent to or otherwise participate in corporate reorganizations or
         other changes affecting corporate securities, and to delegate
         discretionary powers and to pay any assessments or charges in
         connection therewith; and generally to exercise any of the powers of
         any owner with respect to stocks, bonds, securities, or other property
         held in the Trust;

                  (c) To make, execute, acknowledge and deliver all documents of
         transfer and all other instruments that may be necessary or appropriate
         to carry out the powers herein granted, and to administer the Trust;
         and any person dealing with the Trust may rely in good faith on the due
         execution, acknowledgment and/or delivery of such instrument or
         document;

                  (d) To register any investment held in the Trust in the
         Trustee's own name or in the name of a nominee and to hold any
         investment in bearer form, but the books and records of the Trustee
         shall clearly indicate that such investments are part of the Trust;

                  (e) To keep such portion of the Trust in cash or short term
         investments as the Trustee may from time to time deem necessary in
         light of the liquidity requirements of the Plan;

                  (f) To settle, compromise or submit to arbitration any claims,
         debts, or damages due or owing to or from the Trust, and on behalf of
         the Trust to commence, defend or otherwise participate in suits, or
         legal or administrative proceedings; and

                  (g) To do all such acts, participate in all such proceedings,
         and exercise all such rights and privileges, although not specifically
         mentioned herein, as the Trustee may deem necessary to administer the
         Trust, and to carry out the purpose of this Trust.

         5.3 Holding Company Stock. Notwithstanding anything in this Trust
Agreement to the contrary, the Company may direct the Trustee to purchase and
hold all or a portion of the Trust assets in the form of Holding Company stock,
including purchase of such stock through the exercise of subscription rights
awarded to Participants pursuant to the Company's Plan of Conversion dated June
24, 1998. To the extent so directed by the Company, the Trustee shall serve only
as custodian with respect to such stock, and shall otherwise have no authority
to vote, manage, control or dispose of such stock except as specifically
directed by the Company. The Trustee shall account separately for all dividends
and items of gain, loss, income and expense which are associated with that
portion of the Trust which is invested in Holding Company stock.

         5.4 Participant Direction of Investments. At such time as the Company
may determine, Plan Participants may be afforded the opportunity to have an
investment account ("Account") established on their behalf under the Trust, and
be given the ability to designate the specific types of investments to be held
for the Participant in such Account, in accordance with

                                       6
<PAGE>

procedures adopted by the Company and agreed to by the Trustee. Each Plan
Participant's Account shall be credited or charged, as the case may be, with any
earnings, gains, losses, and/or expenses experienced with respect to the assets
in which his Account is invested. Consistent with Section 1.4 of this Trust
Agreement, all investments in all Plan Participants' Accounts shall be
considered part of the Trust's property at all times, no Plan Participants or
their beneficiaries shall have any preferred claim on or any beneficial interest
in any such Accounts, and all such Accounts shall remain subject to the claims
of the Company's policyholders and general creditors.

                                    ARTICLE 6
                              DISPOSITION OF INCOME

         6.1 Disposition of Income. During the term of this Trust, all income
received by the Trust, net of expenses and taxes, shall be accumulated and
reinvested.

                                    ARTICLE 7
                              ACCOUNTING BY TRUSTEE

         7.1 Valuation of Trust and Report of Account. The Trustee shall keep
accurate and detailed records of all investments, receipts, disbursements, and
all other transactions required to be made, including such specific records as
shall be agreed upon in writing between the Company and the Trustee. Within 30
days following the close of each calendar year and within 30 days after the
removal or resignation of Trustee, the Trustee shall deliver to the Company a
written account of its administration of the Trust during such year or during
the period from the close of the last preceding year to the date of such removal
or resignation, setting forth all investments, receipts, disbursements and other
transactions effected by it, including a description of all securities and
investments purchased and sold with the cost or net proceeds of such purchases
or sales, and showing all cash, securities and property held in the Trust at the
end of such year or as of the date of such removal or resignation, as the case
may be.

                                    ARTICLE 8
                            RESPONSIBILITY OF TRUSTEE

         8.1      Duties of Trustee.

                  (a) The Trustee shall act with the care, skill, prudence and
         diligence under the circumstances then prevailing that a prudent person
         acting in like capacity and familiar with such matters would use in the
         conduct of an enterprise of a like character and with like aims;
         provided, however, that the Trustee shall incur no liability to any
         person for any action taken pursuant to a direction, request or
         approval given by the Company which is contemplated by, and in

                                       7
<PAGE>

         conformity with, the terms of the Plan or this Trust and is given in
         writing by the Company. In the event of a dispute between the Company
         and a party, the Trustee may apply to a court of competent jurisdiction
         to resolve the dispute. The Trustee shall be under no duty to enforce
         payment of any contribution to the Trust by the Company or any other
         party.

                  (b) In fulfilling any of its duties under this Trust
         Agreement, the Trustee may rely on the assistance and advice of agents,
         such as attorneys (who may also be counsel for the Company generally),
         accountants and other professionals. The Trustee shall not be liable
         for any action or inaction the Trustee carries out in good faith
         reliance on the advice of its professional advisors. Further, the fees
         charged by the Trustee's professional advisors in connection with the
         Trustee's duties under this Trust Agreement shall be considered part of
         the Trustee's administrative fees and expenses and shall be paid by the
         Company.

         8.2 Powers of Trustee. The Trustee shall have, without exclusion, all
powers conferred on trustees by applicable law, unless expressly provided
otherwise herein; provided, however, that if an insurance policy is held as an
asset of the Trust, the Trustee shall have no power to name a beneficiary of the
policy other than the Trust, to assign the policy (as distinct from conversion
of the policy to a different form) other than to a successor Trustee, or to loan
to any person the proceeds of any borrowing against such policy.

         8.3 Lack of Power of Trustee. Notwithstanding any powers granted to the
Trustee pursuant to this Trust Agreement or by applicable law, the Trustee shall
not have any power that could give this Trust the objective of carrying on a
business and dividing the gains therefrom, within the meaning of Section
301.7701-2 of the Procedure and Administrative Regulations promulgated pursuant
to the Code.

         8.4 Acts of Third Parties. The Trustee shall not be responsible for any
misconduct or negligence on behalf of any third parties, nor shall the Trustee
be responsible for any events outside of the Trustee's control which might have
a detrimental effect on the Trust.

                                    ARTICLE 9
                      COMPENSATION AND EXPENSES OF TRUSTEE

         9.1 Compensation and Expenses of Trustee. The Company shall pay all
administrative and Trustee's fees and expenses associated with the Trust, and
all taxes of any kind whatsoever that may be levied or assessed under existing
or future laws upon or in respect of the Trust or the income thereof. If not so
paid, such fees, expenses and taxes shall be paid from the Trust. The Trustee
shall be entitled to reasonable compensation for its services as Trustee
hereunder in such amount as is agreed to from time to time between the Company
and the Trustee. Such compensation shall be paid by the Company, and in the
event that the Company refuses to pay, the Trustee shall be entitled to
compensation from the Trust assets. The Company grants a lien to the Trustee
against the Trust assets to secure any unpaid fees and

                                       8
<PAGE>

expenses of the Trustee. Further, no provision of this Trust Agreement shall be
deemed to require the Trustee to expend or risk its own funds or otherwise to
incur any financial liability in the performance of its duties hereunder, or in
the exercise of its rights or powers, if the Trustee shall have reasonable
grounds for believing that repayment of such funds, or, in the alternative,
adequate indemnity against such risk or liability, is not reasonably assured to
it.

         9.2 Indemnification of Trustee. Before taking any action required of it
under this Trust Agreement, the Trustee may require that a satisfactory
indemnity bond be furnished for reimbursement of all expenses which it may incur
and to protect it against all liability, except liability which is adjudicated
to have resulted from its negligence or willful misconduct, by reason of any
action so taken.

                                   ARTICLE 10
                       RESIGNATION AND REMOVAL OF TRUSTEE

         10.1 Resignation of Trustee. The Trustee may resign at any time by
written notice to the Company, which shall be effective 30 days after receipt of
such notice unless the Company and Trustee agree otherwise.

         10.2 Removal of Trustee. The Trustee may be removed by the Company on
30 days notice or upon shorter notice accepted by Trustee.

         10.3 Transfer of Assets to Successor Trustee. Upon resignation or
removal of the Trustee and appointment of a successor Trustee, all assets shall
subsequently be transferred to the successor Trustee. The transfer shall be
completed within 30 days after receipt of notice of resignation, removal,
transfer, unless the Company extends the time limit.

         10.4 Appointment of Successor Trustee. If the Trustee resigns or is
removed, a successor shall be appointed, in accordance with Article 11 hereof,
by the effective date of resignation under Section 10.1 or removal under Section
10.2. If no such appointment has been made, the Trustee may apply to a court of
competent jurisdiction for appointment of a successor or for instructions. All
expenses of the Trustee in connection with the proceeding shall be allowed as
administrative expenses of the Trust.

                                   ARTICLE 11
                            APPOINTMENT OF SUCCESSOR

         11.1 Appointment of Successor Trustee. If the Trustee resigns or is
removed in accordance with Article 10 hereof, the Company may appoint any
independent and unrelated third party, such as a bank trust department or other
party that has been granted corporate trustee powers under state law, as a
successor to replace the Trustee upon resignation or removal. This

                                       9
<PAGE>

appointment shall be effective when accepted in writing by the new Trustee, who
shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. The former Trustee shall execute any
instrument necessary or reasonably requested by the Company or the successor
Trustee to evidence the transfer.

                                   ARTICLE 12
                            AMENDMENT OR TERMINATION

         12.1 Amendment. This Trust Agreement may be amended by a written
instrument executed by the Trustee and the Company. Notwithstanding the
foregoing, no such amendment shall conflict with the terms of the Plan or shall
make the Trust revocable.

         12.2 Termination. The Trust shall not terminate until the date on which
Plan Participants and their beneficiaries are no longer entitled to benefits
pursuant to the terms of the Plan. Upon termination of the Trust, any assets
remaining in the Trust shall be returned to the Company.

                                   ARTICLE 13
                                  MISCELLANEOUS

         13.1 Successors. This Trust Agreement shall be binding upon and inure
to the benefit of the Company and the Trustee and their respective successors
and assigns; provided, that this provision specifically anticipates that MEEMIC
Insurance Company will as a matter of law become the successor to the Company
under this Trust Agreement, upon the finalization of the Company's conversion to
a stock company pursuant to the Company's Plan of Conversion dated June 24,
1998.

         13.2 Construction. Any provision of this Trust Agreement prohibited by
law shall be ineffective to the extent of any such prohibition, without
invalidating the remaining provisions thereof.

         13.3 Non-alienation of Benefits. Benefits payable to the Plan
Participants and their beneficiaries under this Trust Agreement may not be
anticipated, assigned (either at law or in equity), alienated, pledged,
encumbered or subjected to attachment, garnishment, levy, execution or other
legal or equitable process.

         13.4 Governing Law. This Trust Agreement shall be governed by and
construed in accordance with the laws of the State of Michigan.

                                       10
<PAGE>

                                   ARTICLE 14
                                 EFFECTIVE DATE

         14.1 Effective Date. The effective date of this Trust Agreement shall
be , 1999.

         IN WITNESS WHEREOF, the undersigned have caused this Trust Agreement to
be executed and effective as of the dates set forth above.

                                       MICHIGAN EDUCATIONAL EMPLOYEES
                                       MUTUAL INSURANCE COMPANY

                                       By:
                                            ------------------------------------

                                       MICHIGAN NATIONAL BANK, Trustee

                                       By:
                                          --------------------------------------

                                       11

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