Document:

Republic Financial Services, Inc. Deferred Compensation Plan

 Exhibit 10.8 
  
 REPUBLIC FINANCIAL SERVICES, INC. 
  
 DEFERRED COMPENSATION PLAN 

  
 TABLE OF CONTENTS

  

					
	ARTICLE I	  	PURPOSE OF THE PLAN	  	1
			
	ARTICLE II	  	DEFINITIONS AND CONSTRUCTION	  	1
			
	 2.1
	  	Definitions	  	1
	 2.2
	  	Construction	  	3
			
	ARTICLE III	  	ADMINISTRATION	  	4
			
	 3.1
	  	Appointment of Committee	  	4
	 3.2
	  	Duties of Committee	  	4
	 3.3
	  	Fiduciary Status	  	4
	 3.4
	  	Indemnification of Committee	  	4
			
	ARTICLE IV	  	ELIGIBILITY	  	5
			
	ARTICLE V	  	CONTRIBUTIONS	  	5
			
	 5.1
	  	Participant Deferrals; Deferral Election	  	5
	 5.2
	  	Company Matching Contributions	  	6
	 5.3
	  	Company Profit Sharing Contributions	  	6
	 5.4
	  	Company Discretionary Contributions	  	7
			
	ARTICLE VI	  	ACCOUNTS AND ADJUSTMENTS TO ACCOUNTS	  	7
			
	 6.1
	  	Accounts	  	7
	 6.2
	  	Adjustments to Accounts	  	7
			
	ARTICLE VII	  	DISTRIBUTION OF PLAN BENEFITS	  	8
			
	 7.1
	  	General	  	8
	 7.2
	  	Distribution Upon Retirement, Disability, or Other Separation from Service	  	8
	 7.3
	  	Distribution Upon Death	  	9
	 7.4
	  	Hardship Distribution	  	9
	 7.5
	  	Variance by Board	  	9

  

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	 ARTICLE VIII
	  	CLAIMS PROCEDURES	  	10
			
	 8.1
	  	Claims Procedure	  	10
	 8.2
	  	Unclaimed Benefits; Incapacity of Participant or Beneficiary	  	11
			
	ARTICLE IX	  	TAXES AND EXPENSES	  	11
			
	 9.1
	  	Taxes	  	11
	 9.2
	  	Expenses	  	11
			
	ARTICLE X	  	TERMINATION OR AMENDMENT OF PLAN	  	12
			
	 10.1
	  	Termination of Plan	  	12
	 10.2
	  	Amendment of Plan	  	12
	 10.3
	  	Preservation of Benefits	  	12
			
	ARTICLE XI	  	NATURE OF PLAN; NO FUNDING REQUIRED; ESTABLISHMENT OF TRUST	  	12
			
	 11.1
	  	Nature of the Plan	  	12
	 11.2
	  	No Funding Required; Establishment of Trust	  	12
			
	ARTICLE XII	  	MISCELLANEOUS	  	13
			
	 12.1
	  	No Guarantee of Employment	  	13
	 12.2
	  	Non-Assignability	  	13
	 12.3
	  	Effect on Other Benefits	  	13
	 12.4
	  	Disclaimer of Liability	  	13
	 12.5
	  	Successors	  	13
	 12.6
	  	Severability	  	13
	 12.7
	  	Governing Law	  	14
	 12.8
	  	Effective Date	  	14

  

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 REPUBLIC FINANCIAL
SERVICES, INC. 
  
 DEFERRED COMPENSATION PLAN

  
 ARTICLE I 
 PURPOSE OF THE PLAN 
  
 The purposes of the Republic Financial Services, Inc. Deferred Compensation Plan are: (1) to provide a means for certain employees whose elective
deferrals under the Republic Financial Services, Inc. Profit Sharing or Savings Plan are limited under the Internal Revenue Code to defer a portion of base salary and/or incentive compensation for retirement or other needs; (2) to restore employer
matching contributions which are not contributed under the Republic Financial Services, Inc. Profit Sharing or Savings Plan to eligible employees because of certain limitations under the Internal Revenue Code; and (3) to restore defined contribution
benefits which are not contributed for eligible employees under the Republic Financial Services, Inc. Profit Sharing or Savings Plan because of certain limitations under the Internal Revenue Code. 
  
 ARTICLE II 
 DEFINITIONS AND CONSTRUCTION 
  
 2.1 Definitions: As used herein, the following words and phrases have the following respective meanings, unless the context clearly indicates otherwise: 
  
 (a) Account means the memorandum account reflected on
the books and records of each Employer to record Participant Deferrals made pursuant to Section 5.1, Company Matching Contributions made pursuant to Section 5.2, Company Profit Sharing Contributions made pursuant to Section 5.3, Company
Discretionary Contributions made pursuant to Section 5.4, and investment gains and losses thereon as determined under Section 6.2. 
  
 (b) Base Salary for a Plan Year means that amount, determined on the first day of the Plan Year, due and payable to the Participant
in that Plan Year which for purposes of this Plan is designated by the Employer as the Participant’s base pay on the Employer’s personnel records, including any such amounts otherwise due and payable with respect to which the Deferral
Election hereunder applies, and without regard to the limitation on compensation taken into account under the Profit Sharing or Savings Plan under Internal Revenue Code Sections 401(a)(17), 402(g), 415, and 416. 
  
 (c) Beneficiary means the person or persons
designated by the Participant on a beneficiary designation form under the Profit Sharing or Savings Plan to receive benefits under the Profit Sharing or Savings Plan and this Plan if the Participant dies. 
  

 If the Participant does not designate a Beneficiary, or if the designated Beneficiary predeceases the
Participant, the Beneficiary shall be in order of preference: (i) the Participant’s surviving spouse; (ii) the Participant’s surviving descendants, per stirpes; (iii) the Participant’s surviving parents; (iv) the Participant’s
surviving brothers and sisters; and (iv) the Participant’s estate. 
  
 (d) Change of Control means the acquisition of fifty percent (50%) or more of the outstanding “shares” (as hereinafter defined) of the Company as a result of any tender or exchange offer, other than
one made by the Company or by a corporation or other entity that is owned or controlled by Winterthur Swiss Insurance Company. As used in this Section, a “share” shall mean and refer to a share of the Company’s present Common Stock,
par value $5.00 per share, and any share or shares of capital stock or other securities of the Company hereafter issued or issuable upon, in respect of or in substitution or in exchange for each present share. 
  
 (e) Company means Republic Financial Services, Inc.,
a Texas corporation, or its successor or successors. 
  
 (f) Deferral Election means an election to defer made by a Participant pursuant to the provisions of Section 5.1. 
  
 (g) Disability shall have the meaning set forth in the Profit Sharing or Savings Plan. If a Participant is determined to have a
Disability, as defined under the Profit Sharing or Savings Plan, he or she shall be considered to have a Disability under this Plan. 
  
 (h) Eligible Employee means any individual on the payroll of an Employer (i) whose wages from the Employer are subject to
withholding for Federal income tax and FICA purposes; (ii) who is included within a “select group of management or highly compensated employees,” within the meaning of ERISA; and (iii) who is designated by the Plan Committee as eligible to
participate in the Plan. 
  
 (i) Employer
means (i) the Company and (ii) any subsidiary or other affiliate of the Company which has adopted the Plan pursuant to a written resolution of the Board of Directors of such subsidiary or affiliate evidencing such adoption with the approval of the
Board of Directors of the Company. 
  
 (j)
ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 (k) Incentive Compensation for a Plan Year means cash bonuses or other similar cash incentive award, if any, due and payable to a
Participant by an Employer with respect to services performed by the Participant during the Plan Year, including any such bonuses or other amounts otherwise due and payable with respect to which the Deferral Election hereunder applies. 

 

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 (l) Internal Revenue Code means the Internal Revenue Code of 1986, as amended from
time to time. 
  
 (m) Participant means an
Eligible Employee who is participating in the Plan. 
  
 (n) Plan means the Republic Financial Services, Inc. Deferred Compensation Plan, as set forth herein and as amended from time to time. 
  
 (o) Plan Committee means the committee designated pursuant to Section 3.1 hereof to administer the Plan. 
  
 (p) Plan Year means the twelve-month period beginning
on January 1 and ending on December 31 of each calendar year. 
  
 (q) Profit Sharing or Savings Plan means the Profit Sharing Plan for Employees of Republic Financial Services, Inc. and Certain Affiliates (As Restated Effective January 1, 1993), as amended from time to time.

  
 (r) Profit Sharing or Savings Plan
Compensation for a Plan Year means an Eligible Employee’s Compensation, as that term is defined in the Profit Sharing or Savings Plan, without regard to limitation on compensation taken into account under the Profit Sharing or Savings Plan
pursuant to Code Section 401(a)(17), as indexed for cost-of-living adjustments thereunder; provided, however, that Profit Sharing or Savings Plan Compensation, as used hereunder, shall be adjusted to include amounts specifically excluded from the
definition of Compensation under the Profit Sharing or Savings Plan. 
  
 (s) Retirement means the occurrence of that event on and after which the Participant is entitled to payment of retirement benefits pursuant to the terms of the Profit Sharing or Savings Plan. 
  
 (t) Separation from Service means termination of
employment from an Employer by reason of Retirement, Disability, discharge, resignation, or death. 
  
 2.2 Construction: As used herein, the masculine shall include the feminine, the singular shall include the plural, and vice versa, unless the
context clearly indicates otherwise. Titles and headings herein are for convenience only and shall not be considered in construing the Plan. The words “hereof,” “herein,” “hereunder” and other similar compounds of the
word “here” shall mean and refer to the entire Plan and not to any particular provision or Section. 
  

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 ARTICLE III 
 ADMINISTRATION 
  
 3.1
Appointment of Committee: The Plan shall be administered by the Plan Committee consisting of at least three persons appointed by the Board of Directors of the Company. Except as otherwise provided below, the Plan Committee shall be considered
the “plan administrator” for purposes of ERISA. 
  
 3.2
Duties of Committee: The Plan Committee has the authority and discretion to select those employees who are eligible to participate in the Plan. The Plan Committee further has the authority and discretion to construe and interpret the Plan. As
part of this authority, the Plan Committee has the discretion to resolve inconsistencies or ambiguities in the language of the Plan, to supply omissions from or correct deficiencies in the language of the Plan, and to adopt rules for the
administration of the Plan which are not inconsistent with the terms of the Plan. The Plan Committee also has the authority and discretion to resolve all questions relating to any claim for benefits under the Plan. The Plan Committee’s
determination shall be final and binding on all parties. The Plan Committee also may employ such persons or appoint such agents to assist it in the performance of its duties hereunder as it may deem appropriate. If a member of the Plan Committee is
a Participant hereunder, such Committee member is precluded from participation in any decision directly related to his or her benefits under the Plan. 
  
 3.3 Fiduciary Status: Each person considered to be a fiduciary with respect to the Plan shall have only those powers and responsibilities
specifically given that person under this Plan. It is intended that each person shall be responsible for the proper exercise of his or her own powers and responsibilities, and shall not be responsible for any act or failure to act of any other
person considered to be a fiduciary or any act or failure to act of any person considered to be a non-fiduciary. 
  
 3.4 Indemnification of Committee: The Employers shall indemnify each member of the Plan Committee against any liability or loss sustained by the
member by reason of any act or failure to act relating to the Plan in his or her capacity as such a member, if the act or failure to act does not constitute gross negligence or willful or intentional misconduct Indemnification shall include
attorneys’ fees and other costs and expenses reasonably incurred by such member in defense of any action brought against the member by reason of any such act or failure to act. 
  

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 ARTICLE IV 
 ELIGIBILITY 
  
 Any
employee designated by the Plan Committee as an Eligible Employee, as defined in Section 2.1(h) hereof, is eligible to participate in the Plan on the date of such designation. 
  
 ARTICLE V 
 CONTRIBUTIONS 
  
 5.1 Participant Deferrals;
Deferral Election 
  
 (a) Each Plan Year, an Eligible Employee
may elect to defer (i) any whole percentage between 1 percent and 50 percent of the Participant’s Base Salary for such Plan Year, or a specified dollar amount, up to 50 percent of the Participant’s Base Salary, and (ii) any whole
percentage between 1 percent and 100 percent of Incentive Compensation, or a specified dollar amount, up to 100 percent of the Participant’s Incentive Compensation, for such Plan Year. The deferred amounts are referred to hereunder collectively
as Participant Deferrals or separately as, respectively, Participant Base Salary Deferrals and Participant Incentive Compensation Deferrals. The Deferral Election shall be made by completing and delivering to the Plan Committee a form approved by
the Committee for this purpose and containing the terms and conditions as deemed appropriate by the Plan Committee. 
  
 (b) A separate Deferral Election for the Participant’s Base Salary and Incentive Compensation shall be made for each Plan Year. The Deferral Election
for a Plan Year must be received by the Plan Committee at the time determined by the Plan Committee but, in any event, no later than December 31 of the preceding Plan Year (or, in the case of the first Plan Year, no later than 30 days following the
effective date of the Plan). If an employee becomes an Eligible Employee during the Plan Year, the Deferral Election for the remainder of the Plan Year must be received by the Plan Committee no later than 30 days following the date on which the
employee became an Eligible Employee and shall apply to Base Salary and/or Incentive Compensation attributable to services performed after the date of the Deferral Election. 
  
 (c) A Participant may not amend or change a Deferral Election during a Plan Year. A Participant may terminate a Deferral
Election at any time during the Plan Year but that Participant will not be permitted to make another Deferral Election for that Plan Year. 
  
 (d) A Deferral Election terminates (i) if the Participant Separates from Service with an Employer, if the Plan is terminated, or upon a Change of Control,
in any case, before the date that payment of Base Salary and/or Incentive Compensation would have been made if not deferred, or (ii) if the amount of Base Salary and/or Incentive Compensation available for deferral, after applicable withholding
taxes, is less than the minimum deferral amount (1%) required. 
  

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 (e) Participants shall be fully vested in Participant Deferrals allocated to their Accounts at all times.

  
 5.2 Company Matching Contributions 
  
 (a) For any Plan Year in which an Employer makes matching contributions to
the Profit Sharing or Savings Plan, the Employer shall make a Company Matching Contribution to this Plan for a Participant equal to the sum of (1) plus (2), where- 
  

	 	(1)	is the product of (i) the Participant’s Base Salary Deferrals under this Plan, limited to an amount determined by multiplying the maximum percentage of compensation eligible
for matching contributions under the Profit Sharing or Savings Plan (as applied to Base Salary only in this Plan) in excess of the amount determined under Internal Revenue Code Section 401(a)(17), times (ii) the matching contribution percentage rate
determined under the Profit Sharing or Savings Plan; and 

  

	 	(2)	is the product of (i) the Participant’s Incentive Compensation Deferrals under this Plan, limited to the maximum percentage of compensation (as applied to Incentive
Compensation only in this Plan) eligible for matching contributions under the Profit Sharing or Savings Plan times (ii) the matching contribution percentage rate determined under the Profit Sharing or Savings Plan. 

  
 (b) Participants shall be vested in Company Matching Contributions allocated
to their Accounts to the extent that they are vested under the Profit Sharing or Savings Plan; provided, however, that Participants shall become fully vested in Company Matching Contributions allocated to their Accounts immediately upon termination
of employment resulting from a Change of Control. 
  
 5.3
Company Profit Sharing Contributions 
  
 (a) For any Plan
Year in which an Employer makes a discretionary profit sharing contribution to the Profit Sharing or Savings Plan, the Employer shall make a Company Profit Sharing Contribution to this Plan for a Participant equal to: (i) the discretionary profit
sharing contribution that would have been made to the Profit Sharing or Savings Plan for the Participant without regard to the limitations under Code Sections 401(a)(17), 415, and 416, and without regard to the reduction in Profit Sharing
Compensation on account of salary deferrals made under Code Section 125, less (ii) the discretionary profit sharing contribution actually contributed to the Profit Sharing or Savings Plan for the Plan Year for the Participant and allocated to the
Participant’s account thereunder. The Company Profit Sharing Contributions shall be credited to a Participant’s Account as set forth in Section 6.2. 
  

(b) Participants shall be vested in Company Profit Sharing Contributions allocated to their Accounts to the extent that they are vested under the
Profit Sharing or Savings Plan; provided, however, that Participants shall become fully vested in Company 

  

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Profit Sharing Contributions allocated to their Accounts immediately upon termination of employment resulting from a Change of Control. 
  
 5.4 Company Discretionary Contributions 
  
 (a) For each Plan Year, an Employer shall contribute such additional Company
Discretionary Contributions to the Plan for each Participant as its Board of Directors shall from time to time authorize in its sole discretion. The Company Discretionary Contributions shall be credited to a Participant’s Account as set forth
in Section 6.2. 
  
 (b) Participants shall be vested in Company
Discretionary Contributions allocated to their Accounts to the extent that they are vested under the Profit Sharing or Savings Plan; provided however, that Participants shall become fully vested in Company Discretionary Contributions allocated to
their Accounts immediately upon termination of employment resulting from a Change of Control. 
  
 ARTICLE VI 
 ACCOUNTS AND ADJUSTMENTS TO ACCOUNTS 
  
 6.1 Accounts: There shall be established on each Employer’s books
and records an Account for each Participant hereunder. All Participant Deferrals, Company Matching Contributions, Company Profit Sharing Contributions, Company Discretionary Contributions, and investment gains and losses thereon, shall be credited
to the Participant’s Account. The Employer shall furnish annually to each Participant (or, in the case of a deceased Participant, to the Participant’s Beneficiary) a statement of the amounts credited to the Participant’s Account.

  
 6.2 Adjustments to Accounts 
  
 (a) Participant Deferrals, Company Matching Contributions, Company Profit
Sharing Contributions and Company Discretionary Contributions: All Participant Deferrals for a Plan Year made pursuant to a Deferral Election under Section 5.1 shall be credited to the Participant’s Account when elective deferrals under the
Profit Sharing or Savings Plan are paid to the Profit Sharing or Savings Plan. All Company Matching Contributions, if any, made under Section 5.2 and Company Profit Sharing Contributions, if any, for the Plan Year made under Section 5.3 shall be
credited to the Participant’s Account when contributions are made to the Profit Sharing or Savings Plan. All Company Discretionary Contributions, if any, for the Plan Year made under Section 5.4 shall be credited to the Participant’s
Account as soon as administratively feasible. 
  
 (b)
Participant Investment Selection: A Participant may specify, in accordance with procedures prescribed by the Plan Committee, the extent to which his or her existing Account balance and future contributions to such Account will be deemed
invested in certain investment media selected from time to time by the Plan Committee. Investment selections shall be solely for purposes of crediting earnings or losses to Participant Accounts and may not reflect the actual investment of accounts.
The Employers may consider the Participant’s investment selections but shall not, in any way, be bound to 

  

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actually invest the Participant’s Account in accordance with the selections. In the case of a Participant receiving installment payments under Article
VII hereof, the Participant may make investment selections under this Section until his or her Account is paid in full. 
  
 If a Participant fails to provide investment selections, the Participant’s Account will be deemed invested in the investment fund consisting of a
money market fund designated as having the least investment risk. If a Beneficiary is entitled to receive a distribution of a Participant’s Account, the Account shall be deemed to remain invested in accordance with the Participant’s
investment selections in effect prior to death until paid in full to the Beneficiary. 
  
 (c) Earnings and Losses: The Employers shall credit each Participant’s Account with earnings or losses on a daily basis according to the hypothetical investment selections made by the Participant, as
follows: 
  

	 	(1)	The earnings or losses attributable to each investment fund offered under the Plan first will be determined as if Accounts were actually invested in the fund.

  

	 	(2)	The earnings or losses of each investment fund determined under the preceding paragraph then will be allocated to Participants who had unpaid balances in their Accounts invested, on
a hypothetical basis, in the investment fund in proportion to the balances in the Accounts invested in such fund, subject to such adjustments as the Plan Committee may deem necessary to address administrative concerns. 

  
 In the case of a Participant receiving installment payments under Article VII hereof, the
Participant’s Account will continue to receive allocations of earnings or losses in accordance with this Section until his or her Account is paid in full. 
  

ARTICLE VII 
 DISTRIBUTION OF PLAN
BENEFITS 
  
 7.1 General: Any benefits payable under
the Plan shall be based on the balance of the Participant’s Account. Except as otherwise provided in this Article, Plan benefits shall be payable upon a Participant’s Retirement, Disability, death, or other Separation from Service with an
Employer. 
  
 7.2 Distribution Upon Retirement, Disability, or
Other Separation from Service: Except as otherwise provided in the Plan, a Participant’s benefits shall be payable on account of Retirement in fifteen substantially equal annual installments commencing within sixty days following the end of
the Plan Year in which Retirement occurs. 
  
 Except as otherwise
provided in the Plan, a Participant’s benefits shall be payable on account of Disability or Other Separation from Service in a lump sum payment within 

  

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sixty days following the date of Separation from Service on account of Disability or for other reasons. 
  
 Notwithstanding the foregoing provisions, a Participant may elect, at
commencement of participation, to have Plan benefits paid on account of Retirement, Disability, or other Separation from Service in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to fifteen years,
commencing within sixty days following the end of the Plan Year in which Retirement occurs or 60 days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable. 
  
 7.3 Distribution Upon Death: If a Participant dies, whether or not the
Participant has received Plan benefits, the Participant’s Beneficiary shall receive the balance in the Participant’s Account payable in a lump sum payment as soon as administratively feasible, but no later than sixty days, following
receipt by the Plan Committee of a death certificate or other satisfactory proof of the Participant’s death. 
  
 7.4 Hardship Distribution: Upon the request of a Participant (or, in the case of a deceased Participant, the Participant’s Beneficiary) and
with the approval of the Plan Committee, except as provided in this Section, the Employers shall pay to the Participant (or Beneficiary, as applicable) all or any portion of the balance in the Participant’s Account. Approval may be given only
if, taking into account all of the facts and circumstances, continued deferral or adherence to the Plan’s payment schedule would result in financial hardship to the Participant (or Beneficiary, as applicable) arising from an unforeseen event or
emergency beyond the control of the Participant (or Beneficiary, as the case may be). 
  
 The distribution shall be limited to the amount necessary to satisfy the financial hardship (including any applicable federal, state, or local taxes attributable to the distribution), shall be made in the form of a
lump sum payment, and shall reduce the balance of the Participant’s Account. The Participant (or Beneficiary, as applicable) shall resume the regular payment schedule following distribution of the hardship payment. The determination of the
existence of a financial hardship and the approval of the request for a distribution based on the hardship shall be made by the Plan Committee, whose decision with respect thereto shall be final and binding on all parties. 
  
 7.5 Variance by Board: Notwithstanding anything in this Article VII to
the contrary, the Board of Directors of the Company shall have the right in its sole discretion to vary the manner and time of making any installment distributions described in this Article VII and may make such distributions in lump sums or over a
shorter or longer period of time than 15 years as it may deem appropriate. 
  

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 ARTICLE VIII 
 CLAIMS PROCEDURES 
  
 8.1
Claims Procedure: If a Participant does not receive the benefits which the Participant believes are provided under the Plan, the Participant may file a claim for benefits with the Plan Committee. All claims will be made in writing and will be
signed by the client. If the claimant does not furnish sufficient information to determine the validity of the claim, the Plan Committee will indicate to the claimant any additional information which is required. 
  
 Each claim will be approved or disapproved by the Plan Committee within
ninety days following receipt of the information necessary to process the claim, unless special circumstances require an extension of time of up to ninety (90) days for processing the claim. The claimant will be notified of the extension within the
initial ninety (90)-day period. If the Plan Committee denies a claim for benefits in whole or in part, the Plan Committee will notify the claimant in writing of the denial of the claim. The notice also will set forth, in a manner calculated to be
understood by the claimant, the specific reasons for the denial, the specific Plan provisions on which the denial is based, a description of any additional material or information necessary to perfect the claim with an explanation of why the
material or information is necessary, and an explanation of the Plan’s claim review procedure as set forth in the following paragraph. If no action is taken by the Plan Committee on a claim within ninety (90) days, the claim will be deemed to
be denied for purposes of the review procedure. 
  
 A claimant may
appeal a denial of a claim by requesting a review of the decision by the Plan Committee. An appeal must be submitted in writing within sixty (60) days after the denial and must (i) request a review of the claim for benefits under the Plan, (ii) set
forth all of the grounds upon which the claimant’s request for review is based and any facts in support thereof, and (iii) set forth any issues or comments which the claimant deems pertinent to the appeal. The Plan Committee will make a full
and fair review of each appeal and any written materials submitted in connection with the appeal. The Plan Committee will act upon each appeal within sixty (60) days after receipt thereof, unless special circumstances require an extension of time of
up to sixty (60) days for processing. The claimant will be notified of the extension within the initial sixty (60)-day period. The claimant will be given the opportunity to review pertinent documents or materials upon submission of a written request
to the Plan Committee, provided the Plan Committee finds the requested documents or materials pertinent to the appeal. On the basis of its review, the Plan Committee will make an independent determination of the claimant’s eligibility for
benefits under the Plan. The decision of the Plan Committee on any claim for benefits will be final and conclusive upon all parties thereto. If the Plan Committee denies an appeal in whole or in part, the Plan Committee will give written notice of
the decision to the claimant. If no action is taken by the Plan Committee on the appeal within sixty (60) days, the claim will be deemed to be denied. 
  

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 8.2 Unclaimed Benefits; Incapacity of Participant or Beneficiary: During any time in which Plan
benefits are payable to a Participant or Beneficiary and remain unclaimed, the Plan Committee may, in its discretion, mail a notice to such Participant Of Beneficiary at the last known address by registered or certified mail requesting a current
address and any other information deemed appropriate by the Plan Committee. If the information is not provided to the Plan Committee within twelve months from the mailing of the demand, then the Plan Committee may, in its sale discretion, declare
the Plan benefits or any unpaid portion of the Plan benefits suspended, and the assets of the Trust, if any, shall be used to pay other Plan benefits. Plan benefits are subject to restoration if the lost Participant or Beneficiary later files a
claim for the benefit. 
  
 If the Plan Committee is presented with
documentation, including (but not limited to) a power of attorney or court order which determines that a Participant or Beneficiary to whom a payment is due under the Plan is physically, mentally, or legally incompetent and unable to tend to his or
her affairs, any payment due under the Plan may, at the discretion of the Plan Committee, be paid to the Participant’s or Beneficiary’s spouse, child, parent, brother or sister, or to any other person having custody or care, or
responsibility for the support, of the Participant or Beneficiary. Any such payment shall be a complete discharge of the obligations of the Employers under the Plan. 
  
 ARTICLE IX 
 TAXES AND EXPENSES 
  
 9.1 Taxes: Any taxes
imposed on Plan benefits shall be the sole responsibility of the Participant or Beneficiary. The Employers shall deduct from Plan benefits any federal taxes (including, without limitation, Social Security and Medicare taxes), state taxes, local
taxes, or other taxes required to be withheld. The Employers are authorized (i) to withhold any federal taxes (including, without limitation, Social Security and Medicare taxes), state taxes, local taxes, or other taxes required to be withheld with
respect to Plan benefits from other sources of compensation payable to the Participant or Beneficiary by the Employers, or (ii) to require the Participant or Beneficiary to pay the taxes to the Employers by personal check or otherwise for deposit
with the appropriate taxing authority. 
  
 9.2 Expenses:
All or any portion of Plan administration expenses incurred by the Employers or the Plan Committee shall be paid by the Employers or, at the discretion of the Plan Committee, charged against the Accounts of Participants in such manner as the Plan
Committee shall determine; provided, however, that such expenses shall reduce only Company Matching Contributions, Company Profit Sharing Contributions, Company Discretionary Contributions, and investment gains, but not Participant Deferrals, to be
credited to Participant Accounts under Section 5.1 hereof. 
  

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 ARTICLE X 
 TERMINATION OR AMENDMENT OF PLAN 
  
 10.1 Termination of Plan: The Board of Directors of the Company may terminate or discontinue the Plan at any time. If the Commissioner of Internal Revenue, upon the Company’s request for initial approval of this Plan, declines
to issue a favorable ruling on the Plan, this Plan shall automatically terminate at that time. This Plan is expressly conditioned on the continued deferral of income tax on amounts deferred by a Participant under the Plan until such amounts are
actually distributed to the Participant. If, as a result of a change in the tax laws or applicable income tax regulations, amounts deferred by Participants under the Plan become subject to income tax prior to the actual distribution of such amounts,
the Plan and each Deferral Election hereunder shall automatically terminate as of the effective date of the change in the law. 
  
 10.2 Amendment of Plan: The Board of Directors of the Company may amend the Plan at any time and from time to time, without prior notice to any
Participant or Beneficiary. 
  
 10.3 Preservation of
Benefits: Once benefits hereunder to a Participant or Beneficiary have commenced or accrued, no termination or amendment of the Plan may affect materially or adversely the right of the Participant or Beneficiary to the benefits without that
person’s written consent. 
  
 ARTICLE XI 
 NATURE OF PLAN; NO FUNDING REQUIRED; 
 ESTABLISHMENT OF TRUST 
  
 11.1 Nature of the
Plan: The Plan is intended to be a “pension plan,” as defined in ERISA, and is maintained by the Employers on an unfunded basis primarily for the purpose of providing supplementary pension benefits to a select group of management or
highly compensated employees. As such, the Plan is intended to be construed not to provide income to any Participant or Beneficiary under the Internal Revenue Code prior to actual receipt of benefit payments under the Plan. To the extent that this
Plan provides benefits in excess of limitations under Code Section 415, the Plan is intended to be an “excess benefit plan,” within the meaning of ERISA. 
  
 11.2 No Funding Required; Establishment of Trust: Plan benefits shall be payable solely from the general assets of
the Company and each respective Employer. The Company and each respective Employer shall not be required to, but may at their discretion, segregate or physically set aside any funds or assets attributable to Plan benefits. Notwithstanding the
preceding sentence, the Company and the Employers intend to establish an irrevocable trust (the “Trust”), commonly referred to as a “rabbi trust,” for accumulating and holding funds or assets of the Company and each respective
Employer to be used solely for the purpose of paying Plan benefits. No Participant or Beneficiary shall be deemed to have, pursuant to the Plan, any legal or equitable interest 

  

 - 12 - 

 
in any specific assets of the Company or the respective Employer or in the assets of the Trust, and no Participant or Beneficiary shall have any preference
or priority over the rights of any general unsecured creditor of the Company or the respective Employer. The funds and assets of the Trust shall remain subject to the claims of creditors of the Company or each respective Employer in the event of
insolvency of any such entity. 
  
 ARTICLE XII 

MISCELLANEOUS 
  
 12.1 No Guarantee of Employment: Neither participation in the Plan nor any action taken under the Plan shall confer upon a Participant any right to
continue in the employ of an Employer or affect the right of the Employer to terminate the Participant’s employment at any time. 
  
 12.2 Non-Assignability: Unless otherwise required by law, and prior to distribution to a Participant or Beneficiary, Plan benefits shall not be
subject to assignment, transfer, sale, pledge, encumbrance, alienation, or charge by the Participant or Beneficiary, and any attempt to do so shall be void. Plan benefits shall not be liable for or subject to garnishment, attachment, execution, or
levy, or liable for or subject to the debts, contracts, or liabilities of the Participant or Beneficiary; provided, however, that the Employers may offset from the payment of any Plan benefits to a Participant or Beneficiary amounts owed by the
Participant to an Employer. 
  
 12.3 Effect on Other
Benefits: Participation in the Plan shall not reduce any welfare or retirement benefits offered by the Employers, except that neither the amounts deferred under the Plan nor any Plan benefits shall be considered “Compensation” for
purposes of the Profit Sharing or Savings Plan or the Pension Plan for Employees of Republic Financial Services, Inc. and Certain Affiliates (As Restated Effective January 1, 1994), as amended from time to time. 
  
 12.4 Disclaimer of Liability: To the extent not made under the Trust,
the Company and each respective Employer shall be solely responsible for the payment of Plan benefits hereunder. The members of the Plan Committee, and the officers, directors, employees, or agents of the Company or any other Employer, shall not be
liable for the benefits. Unless otherwise required by law, no person shall be liable for any action or failure to act, except where such act or omission constitutes gross negligence or willful or intentional misconduct. 
  
 12.5 Successors: The Plan and any Deferral Election shall be binding
on (i) the Company and its successors and assigns, (ii) any Employer and its successors- and assigns, (iii) each Participant, (iv) each Beneficiary, and (v) the heirs, distributees, and legal representatives of each Participant and Beneficiary.

  
 12.6 Severability: If any provision of the Plan shall
be held invalid or unenforceable, the invalidity or unenforceability shall apply only to that provision, and shall not affect or render invalid or unenforceable any other provision of the Plan. The 

  

 - 13 - 

 
Plan shall be administered and construed as if the invalid or unenforceable provision were not contained herein. If the application of any Plan provision to
any Participant or Beneficiary shall be held invalid or unenforceable, the application of the provision to any other Participant or Beneficiary shall not in any manner be affected thereby. 
  
 12.7 Governing Law: Except to the extent that the Plan may be subject
to the provisions of ERISA, the Plan shall be construed and enforced according to the laws of the State of Texas without giving effect to the conflict of laws principles thereof. 
  
 12.8 Effective Date: The effective date of the Plan shall be July 1, 1995. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  

 - 14 - 

  
 Joined by REPUBLIC INSURANCE COMPANY as a
participating Employer, effective July 1, 1995. 
  

			
	REPUBLIC INSURANCE COMPANY
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  
 Joined by BLUE RIDGE INSURANCE COMPANY
as a participating Employer, effective July 1, 1995. 
  

			
	BLUE RIDGE INSURANCE COMPANY
		
	By:	 	/s/    PETER CHRISTEN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  
 Joined by WINTERTHUR LIFE RE INSURANCE
COMPANY as a participating Employer, effective July 1, 1995. 
  

			
	WINTERTHUR LIFE RE INSURANCE COMPANY
		
	By:	 	/s/    GORDON JARDIN        
	 Title:
	 	President

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  

 - 15 - 

  
 AMENDMENT NO. 1

 TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic Financial Services, Inc. (the “Company”) previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and

  
 WHEREAS, the Company now wishes to amend the Plan in certain
respects pursuant to the authority retained in Section 10.2; 
  
 NOW, THEREFORE, the Company hereby amends the Plan as follows: 
  

	 	1.	Section 7.2 of the Plan is hereby amended to be and to read as follows: 

  
 “7.2 Distribution Upon Retirement, Disability, or Other Separation from Service: Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Retirement in fifteen substantially equal annual installments commencing within thirty days following the end of the Plan Year in which Retirement occurs. 
  
 Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Disability or Other Separation from Service in a lump sum payment within thirty days following the date of Separation from Service on account of Disability or for other reasons. 

 
 Notwithstanding the foregoing provisions, a Participant
may elect, at commencement of participation, to have Plan benefits paid on account of Retirement, Disability, or other Separation from Service in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to
fifteen years, commencing within thirty days following the end of the Plan Year in which Retirement occurs or thirty days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable.”

  

	 	2.	Section 7.3 of the Plan is hereby amended to be and to read as follows: 

  
 “7.3 Distribution Upon Death: If a Participant dies, whether or not the Participant has received Plan benefits, the
Participant’s Beneficiary shall receive the balance in the Participant’s Account payable in a lump sum payment as soon as administratively feasible, but no later than 

  

 
thirty days, following receipt by the Plan Committee of a death certificate or other satisfactory proof of the Participant’s death.” 
  

	 	3.	Section 7.5 of the Plan is hereby deleted in its entirety. 

  

	 	4.	Section 12.2 of the Plan is hereby amended to be and read as follows: 

  
 “12.2 Non-Assignability: Unless otherwise required by law, and prior to distribution to a Participant or Beneficiary, Plan
benefits shall not be subject to assignment, transfer, sale, pledge, encumbrance, alienation, or charge by the Participant or Beneficiary, and any attempt to do so shall be void. Plan benefits shall not be liable for or subject to garnishment,
attachment, execution or levy, or liable for or subject to the debts, contracts, or liabilities of the Participant or Beneficiary.” 
  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to the Republic Financial Services, Inc. Deferred Compensation Plan to be executed in its
name and on its behalf this 21 day of August, 1996, to be effective as of July 1, 1995. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	ATTEST:
	
	/s/    FOY WALLACE        

  

 - 2 - 

  
 AMENDMENT NO. 2 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic
Financial Services, Inc. (the “Company”) previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, the Company now wishes to amend the Plan pursuant to the authority
retained in Section 10.2 to cease participation in and contribution to the Plan by Blue Ridge Insurance Company pursuant to its withdrawal as a participating Employer in the Plan; 
  
 NOW, THEREFORE, the Company hereby amends the Plan effective July 1, 1996, as follows: 
  
 Section 2.1(h) of the Plan is hereby amended to be and to read as follows:

  
 “EMPLOYER means (i) the Company
and (ii) any subsidiary or other affiliate of the Company which has adopted the Plan pursuant to a written resolution of the Board of Directors of such subsidiary or affiliate evidencing such adoption with the approval of the Board of Directors of
the Company. Effective July 1, 1996, Blue Ridge Insurance Company, a subsidiary of the Company, shall cease to be a participating Employer in this Plan.” 
  

IN WITNESS WHEREOF, the Company has caused this Amendment No. 2 to the Republic Financial Services, Inc. Deferred Compensation Plan to be executed in
its name and on its behalf this 21 day of August, 1996, to be effective July 1, 1996. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

  
 AMENDMENT NO. 3 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic
Financial Services, Inc. (the “Company”) has previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, pursuant to the provisions of Section 10.2 of the Plan, the Company
desires to amend the Plan in certain particulars as hereinafter provided; 
  
 NOW, THEREFORE, the Company hereby amends Section 7.2 of the Plan effective April 28, 1998, as follows: 
  
 “7.2 Distribution Upon Retirement, Disability, or Other Separation from Service: Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Retirement commencing within thirty (30) days following the end of the Plan Year in which Retirement occurs, in either (i) a lump sum or (ii) substantially equal annual installments over a
period of two to fifteen years. A Participant must elect the form of payment no later than twelve (12) months preceding the date of his termination of employment by reason of Retirement. If the Participant fails to make such an election, his
benefits will be distributed in a lump sum. 
  
 A
Participant’s benefits shall be payable on account of Disability or other Separation from Service in a lump sum payment within thirty (30) days following the date of Separation from Service on account of Disability or for other reasons provided
that, if the Participant so elects no later than twelve (12) months preceding his date of Separation from Service, such benefits shall be paid in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to
fifteen years, commencing within thirty (30) days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable.” 
  

 IN WITNESS WHEREOF, the Company has caused this Amendment No. 3 to the Republic Financial Services, Inc.
Deferred Compensation Plan to be executed in its name and on its behalf this 28 day of April, 1998, effective as of April 28, 1998. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	Officer

  

	
	ATTEST:
	
	/s/    FOY WALLACE        

  

 - 2 - 

  
 AMENDMENT NO. 4 TO

 REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Company with the authority to amend the Plan from time to time, the Company
desires to amend the Plan in certain respects as set forth herein; 
  
 NOW,
THEREFORE, the Company hereby amends the Plan as follows: 
  

	 	1.	In accordance with the provisions of Section 2.1(i) of the Plan, Winterthur Investment Management Corporation (“WIMC”) has adopted the Plan as a Participating Employer
effective January 1, 1999. Accordingly, to the extent necessary to evidence and effect such adoption and participation, the Plan is hereby amended to add WIMC as a Participating Employer effective as of January 1, 1999. 

  

	 	2.	In accordance with the relevant provisions of the Plan, Wintherthur Life Re Insurance Company has ceased its participation in the Plan effective as December 23, 1998. Accordingly,
to the extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude Winterthur Life Re Insurance Company as a Participating Employer effective as of December 23, 1998. 

  

	 	3.	Except as expressly amended hereby, the Plan shall remain unchanged and in full force and effect. 

  

	 	4.	Unless otherwise defined herein, each capitalized term used herein shall have the meaning given to it in the Plan. 

  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 4 to be executed on this 27 day
of April, 1999. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	 Attest:

	
	/s/    FOY WALLACE        

  

  
 AMENDMENT NO. 5 TO

 REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, the Company now wishes to amend the Plan pursuant to the authority retained in
Section 9.2 to discontinue participation in, and contributions to, the Plan by Republic Insurance Company pursuant to its withdrawal as a participating Employer under the Plan; 
  
 NOW, THEREFORE, the Company amends the Plan effective August 1, 2000, as follows: 
  

	 	1.	In accordance with the relevant provisions of the Plan, Republic Insurance Company shall cease its participation in the Plan effective as of August 1, 2000. Accordingly, to the
extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude Republic Insurance Company as a participating Employer effective as of August 1, 2000. 

  
 IN WITNESS WHEREOF, the Company has executed this Amendment No. 5 to be effective as of
August 1, 2000. 
  

			
	 REPUBLIC FINANCIAL SERVICES, INC.

		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO & President

  

	
	 Attest:

	
	/s/    LARRY WESTERFIELD        

  

  
 AMENDMENT No. 6 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”); and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Board with the authority to amend the Plan from time to time, the Board
desires to amend the Plan in certain respects as set forth herein. 
  
 NOW,
THEREFORE, the Board hereby amends the Plan effective July 15, 2003, as follows: 
  
 In accordance with the relevant provisions of the Plan, Winterthur Investment Management Corporation (“WIMCO”) shall cease its participation in the Plan effective as of July 15, 2003. Accordingly, to the
extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude WIMCO as a participating Employer effective as of July 15, 2003. 
  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 6 to the Republic Financial Services, Inc. Deferred Compensation Plan to be
executed in its name and on its behalf the 29th day of August, 2003, to be effective July 15, 2003. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

  
 AMENDMENT No. 7 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (“RFSI”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”); and 
  
 WHERAS, Republic Underwriters Insurance Company (“RUIC”) is a wholly-owned subsidiary of Republic Financial Services, Inc., a
Nevada corporation (“RFSI—Nevada”), which is a wholly-owned subsidiary of RFSI; and 
  
 WHEREAS, RUIC is a participating employer in the Plan; and 
  
 WHEREAS, RFSI anticipates entering into a transaction pursuant to which all of the common stock of RUIC will be sold to RTXA Sub, Inc., an unrelated entity, to be effective on or about August 29, 2003, but in all
events at a time and date specified in that certain Stock Purchase Agreement by and between RFSI, RFSI-Nevada, Winterthur U.S. Holdings, Inc., RTXA, Inc. and RTXA Sub, Inc. (“Effective Time”); and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Board of Directors of RFSI
with the authority to amend the Plan from time to time, the Board desires to amend the Plan in certain respects as set forth herein. 
  
 NOW, THEREFORE, the Plan is hereby amended as follows, effective immediately prior to the Effective Time, or as otherwise stated herein: 
  

	1.	In accordance with the relevant provisions of the Plan, Republic Financial Services, Inc. (“RFSI”) shall cease its participation in the Plan effective immediately prior to
the Effective Time. Accordingly, to the extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude RFSI as a participating Employer effective immediately prior to the Effective Time.

  

	2.	Section 2.1(e) of the Plan is hereby amended to be and read as follows: 

  

	 	(e)	Company means Republic Underwriters Insurance Company, a Texas corporation, or its successor or successors. 

  

	3.	Section 2.1(n) of the Plan is hereby amended to be and read as follows: 

  

	 	(n)	Plan means the Republic Underwriters Insurance Company Deferred Compensation Plan, as set forth herein and as amended from time to time. 

  

 IN WITNESS WHEREOF, RFSI has caused this Amendment No. 7 to the Republic Financial Services, Inc. Deferred Compensation
Plan to be executed in its name and on its behalf the 29th day of August, 2003, to be effective immediately prior to
the Effective Time, as defined herein, or as otherwise stated herein. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

 Approved by Republic Underwriters Insurance Company, a participating employer in the Plan. 
  

			
	REPUBLIC UNDERWRITERS INSURANCE COMPANY
		
	By:	 	/s/    MARTIN B.
CUMMINGS        
	 Title:
	 	Vice President

  

	
	ATTEST:
	
	/s/    GINA BOONE        

  

 

 
  
 Deferred Compensation Plan 
 2006 Enrollment and Change Form 
  

							
	Employee Information	 	Last Name	 	 	 	First Name, MI
				
	  	 	|                                      
                                        
        |	 	 	 	|                                      
                                        
        |
	 	 	 Street
	 	 	 	 City, State, Zip

				
	  	 	|                                      
                                        
        |	 	 	 	|                                      
                                        
        |
	 	 	 Social Security
Number                    Date of Birth
	 	 	 	Date of Hire
		
	 	 	|                                      
                      |  |               
                                        
     |  |                                
                            |

  

										
	Election Options	 	 ̈	  	I elect to participate in the Deferred Compensation Plan and I authorize my employer to deduct and contribute the percentage of my compensation as specified below.	  	 ̈	 	  	I am a participant in the Deferred Compensation Plan and elect to stop my salary deferral percentage.
					
	 	 	 ̈	  	I elect not to participate.	  	 ̈	 	  	I am a participant in the Deferred Compensation Plan and elect to change my existing balance investment allocation.
			
	Deferral Percentage	 	Base Salary Deferral (up to 50%)	  	 	Incentive Compensation Deferral (up to 100%)
			
	 	 	|                    %	  	 	|                    %

  

					
	Contribution Investment Election	 	Percentages must be in increments of 1% and total must equal 100%.
	 	 	|                    %	  	Guaranteed Income Fund
	 	 	|                    %	  	Janus Balanced
	 	 	|                    %	  	Fidelity Advisor Equity Income
	 	 	|                    %	  	Dryden Stock Index Fund
	 	 	|                    %	  	T. Rowe Price Blue Chip Growth
	 	 	|                    %	  	Mid Cap Value American Century Equity Income-Investor Shares
	 	 	|                    %	  	Julius Baer International Equity A
	 	 	|                    %	  	Times Square Small Cap Growth - Premium
	 	 	|                    %	  	Royce Total Return
	 	 	|                    %	  	Managers Special Equity
	 	 	|                    %	  	Janus Twenty
	 	 	|                    %	  	Artisan Mid Cap
	 	 	|                    %	  	Oppenheimer Global (Class A)
		
	Existing Balance Investment Allocation	 	Percentages must be in increments of 1% and total must equal 100%.
	 	 	|                    %	  	Guaranteed Income Fund
	 	 	|                    %	  	Janus Balanced
	 	 	|                    %	  	Fidelity Advisor Equity Income
	 	 	|                    %	  	Dryden Stock Index Fund
	 	 	|                    %	  	T. Rowe Price Blue Chip Growth
	 	 	|                    %	  	Mid Cap Value American Century Equity Income-Investor Shares
	 	 	|                    %	  	Julius Baer International Equity A
	 	 	|                    %	  	Times Square Small Cap Growth - Premium
	 	 	|                    %	  	Royce Total Return
	 	 	|                    %	  	Managers Special Equity
	 	 	|                    %	  	Janus Twenty
	 	 	|                    %	  	Artisan Mid Cap
	 	 	|                    %	  	Oppenheimer Global (Class A)

  

					
	Beneficiary Designation	  	If someone other than the spouse of a married person is named as the beneficiary, the spouse must complete the Spousal Consent on the reverse side.

							
				
	 	  	Name	  	 	  	 Relationship

				
	 	  	|                                      
                                        
        |	  	 	  	|                                      
                                        
        |
	 	  	Address	  	 	  	 City, State, Zip

				
	 	  	|                                      
                                        
        |	  	 	  	|                                      
                                        
        |

					
		
	Employee Consent	  	I further authorize my employer or its agents to act upon my instructions to cease, increase, decrease, or otherwise modify the above choices. I agree that neither my employer nor
its designee(s) shall be liable for any loss, expense or cost arising from such instructions, including fraudulent or unauthorized instructions, when it acts upon them in the belief that they are genuine.

							
				
	 	  	Signature	  	 	  	 Date

				
	 	  	|                                      
                                        
        |	  	 	  	|                                      
                                        
        |

					
		
	Spousal Consent	  	Only complete this section if someone other than a spouse of a married participant is named as the beneficiary.
	 	  	 The undersigned, being the spouse of the named participant, hereby consents to the designation of beneficiary as elected by the
participant.
 The undersigned spouse represents and specifically acknowledges that he/she is aware of the following:
  
 1.      By the
execution of this written consent, the spouse is waiving certain rights to which the spouse is entitled as a matter of federal law.
 2.      That if the spouse does not execute this consent, the spouse will be the death beneficiary of 100% of the employee’s account.
 3.      That the undersigned spouse, after reading the foregoing explanations, is waiving these
legal rights in the presence of a witness, and has requested this witness in his/her presence to notarize and witness his/her signature at the same time that he/she signs this witness consent.

							
				
	 	  	 Spouse Signature
	  	 	  	 Date

				
	 	  	|                                      
                                        
        |	  	 	  	|                                      
                                        
        |

  

									
	 	 	STATE OF	 	 |                                      
                        |
	 	 	  	 
					
	 	 	COUNTY OF	 	 |                                      
                        |
	 	 	  	 

  

									
	 	 	On the |                | day of
|                                        
        | , AD 20                 | , personally appeared before me the above named spouse, who declared to me that
he/she is the spouse of
|                                        
            | and requested me to be a witness to his/her signature of the above Spousal Consent, and who thereupon signed said Spousal Consent in my presence, and I do now hereby sign
my name as a witness to the signature of said spouse.	  	 

							
				
	 	 	 Notary Signature
	 	 	 	 
				
	 	 	|                                      
                                        
        |	 	 	 	 
				
	 	 	 State of Residence
	 	 	 	 
				
	 	 	|                                      
                                        
        |	 	 	 	 
				
	 	 	 Commission Expiration Date
	 	 	 	 
				
	 	 	|                                      
                                        
        |	 	 	 	 

  

 

 
  
 Deferred Compensation Plan 
 Distribution Election Form 
  

					
	Employee Information	  	 Last Name
  
 |                                      
                                        
              |
	  	 First Name, MI
  
 |                                      
                                        
              |

	 	  	Street	  	City, State, Zip
			
	 	  	|                                      
                                        
              |	  	|                                      
                                        
              |
	 	  	Social Security Number                        Marital Status	  	Work Phone
		
	 	  	|                                      
                      |  |               
                                        
     |  |                                
                            |

									
		
	 Distribution
 Options
	  	You may elect the form of distribution of your Plan benefits. If you do not make this election, your Plan benefits will be paid as specified in the Plan.
			
	 	  	 ̈ Retirement:	  	The Plan provides for distribution upon retirement in a lump sum payment on the date specified in the Plan.
			
	 	  	|                        |	  	(between 2 and 15 years) In lieu of the above, I elect to have my Plan benefits distributed upon retirement in annual installments to be paid over the number of years
indicated.
			
	 	  	 ̈ Disability:	  	The Plan provides for distribution upon disability in a lump sum payment on the date specified in the Plan.
			
	 	  	|                        |	  	(between 2 and 15 years) In lieu of the above, I elect to have my Plan benefits distributed upon disability in annual installments to be paid over the number of years
indicated.
			
	 	  	 ̈ Termination:	  	The Plan provides for distribution upon termination of employment in a lump sum payment on the date specified in the Plan.
			
	 	  	|                        |	  	(between 2 and 15 years) In lieu of the above, I elect to have my Plan benefits distributed upon termination of employment in annual installments to be paid over the number of years
indicated.

									
		
	 Employee
 Consent
	  	I have read and understand the terms and conditions of the Plan and above election, and I consent to the above election.

					
	 	  	Signature	  	Date
			
	 	  	|                                      
                                        
              |	  	|                                      
                                        
              |Form of 2005 Equity-Based Compensation Plan

 Exhibit 10.15 
  
 REPUBLIC COMPANIES GROUP, INC. 
  
 2005 EQUITY-BASED COMPENSATION PLAN 

 TABLE OF CONTENTS 
  

							
	1.	  	Purpose	  	1
			
	2.	  	Definitions	  	1
			
	3.	  	Administration	  	6
				
	 	  	(a)	 	Authority of the Committee	  	6
	 	  	(b)	 	Manner of Exercise of Committee Authority	  	6
	 	  	(c)	 	Limitation of Liability	  	7
			
	4.	  	Stock Subject to Plan	  	7
				
	 	  	(a)	 	Overall Number of Shares Available for Delivery	  	7
	 	  	(b)	 	Application of Limitation to Grants of Awards	  	7
	 	  	(c)	 	Availability of Shares Not Delivered under Awards	  	8
	 	  	(d)	 	Stock Offered	  	8
			
	5.	  	Eligibility	  	8
			
	6.	  	Specific Terms of Awards	  	8
				
	 	  	(a)	 	General	  	8
	 	  	(b)	 	Options	  	8
	 	  	(c)	 	Stock Appreciation Rights	  	9
	 	  	(d)	 	Restricted Stock	  	11
	 	  	(e)	 	Phantom Stock	  	12
	 	  	(f)	 	Bonus Stock and Awards in Lieu of Obligations	  	13
	 	  	(g)	 	Dividend Equivalents	  	13
	 	  	(h)	 	Other Stock-Based Awards	  	13
			
	7.	  	Certain Provisions Applicable to Awards	  	13
				
	 	  	(a)	 	Stand-Alone, Additional, Tandem, and Substitute Awards	  	13
	 	  	(b)	 	Term of Awards	  	14
	 	  	(c)	 	Form and Timing of Payment under Awards; Deferrals	  	14
	 	  	(d)	 	Exemptions from Section 16(b) Liability	  	14
	 	  	(e)	 	Non-Competition Agreement	  	14
			
	8.	  	Performance and Annual Incentive Awards	  	15
				
	 	  	(a)	 	Performance Conditions	  	15
	 	  	(b)	 	Performance Awards Granted to Designated Covered Employees	  	15
	 	  	(c)	 	Annual Incentive Awards Granted to Designated Covered Employees	  	16
	 	  	(d)	 	Written Determinations	  	17
	 	  	(e)	 	Status of Section 8(b) and Section 8(c) Awards under Section 162(m) of the Code	  	18

  

 i 

							
			
	9.	  	Recapitalization or Reorganization	  	18
				
	 	  	(a)	 	Existence of Plans and Awards	  	18
	 	  	(b)	 	Subdivision or Consolidation of Shares	  	18
	 	  	(c)	 	Corporate Restructuring	  	19
	 	  	(d)	 	Change in Control Price	  	20
	 	  	(e)	 	Non-Option Awards	  	20
	 	  	(f)	 	Additional Issuances	  	20
	 	  	(g)	 	Restricted Stock Awards	  	21
			
	10.	  	General Provisions	  	21
				
	 	  	(a)	 	Transferability	  	21
	 	  	(b)	 	Taxes	  	22
	 	  	(c)	 	Changes to this Plan and Awards	  	23
	 	  	(d)	 	Limitation on Rights Conferred under Plan	  	23
	 	  	(e)	 	Unfunded Status of Awards	  	23
	 	  	(f)	 	Nonexclusivity of this Plan	  	23
	 	  	(g)	 	Payments in the Event of Forfeitures; Fractional Shares	  	23
	 	  	(h)	 	Severability	  	24
	 	  	(i)	 	Governing Law	  	24
	 	  	(j)	 	Conditions to Delivery of Stock	  	24
	 	  	(k)	 	Plan Effective Date and Stockholder Approval	  	25

  

 - ii - 

 REPUBLIC COMPANIES GROUP, INC. 
  
 2005 EQUITY-BASED COMPENSATION PLAN 
  
 1. Purpose. The purpose of the Republic Companies Group, Inc. 2005 Equity-Based Compensation Plan (the
“Plan”) is to provide a means through which Republic Companies Group, Inc., a Delaware corporation (the “Company”), and its Subsidiaries may attract and retain able persons as employees, directors and consultants of the Company
and its Subsidiaries and to provide a means whereby those persons upon whom the responsibilities of the successful administration and management of the Company rest, and whose present and potential contributions to the welfare of the Company are of
importance, can acquire and maintain stock ownership, or awards the value of which is tied to the performance of the Company’s stock, thereby strengthening their concern for the welfare of the Company and its Subsidiaries and their desire to
remain in its employ. A further purpose of this Plan is to provide such employees and directors with additional incentive and reward opportunities designed to enhance the profitable growth of the Company. Accordingly, this Plan primarily provides
for granting Incentive Stock Options, options which do not constitute Incentive Stock Options, Restricted Stock Awards, Stock Appreciation Rights, Phantom Stock Awards or any combination of the foregoing, as is best suited to the circumstances of
the particular individual as provided herein. 
  
 2.
Definitions. For purposes of this Plan, the following terms shall be defined as set forth below, in addition to such terms defined in Section 1 hereof: 
  

(a) “Annual Incentive Award” means a conditional right granted to a Participant under Section 8(c) hereof to receive a cash payment, Stock or
other Award, unless otherwise determined by the Committee, after the end of a specified fiscal year. 
  
 (b) “Award” means any Option, SAR (including Limited SAR), Restricted Stock Award, Phantom Stock Award, Stock granted as a bonus or in lieu of
another award, Dividend Equivalent, Other Stock-Based Award, Performance Award or Annual Incentive Award, together with any other right or interest granted to a Participant under this Plan. 
  
 (c) “Beneficiary” means one or more persons, trusts or other
entities which have been designated by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under this Plan upon such Participant’s death or to which Awards or other
rights are transferred if and to the extent permitted under Section 10(a) hereof. If, upon a Participant’s death, there is no designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the persons, trusts or
other entities entitled by will or the laws of descent and distribution to receive such benefits. 
  
 (d) “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act and any successor to such Rule.

  
 (e) “Board” means the Company’s Board of
Directors. 
  
 (f) “Business Day” means any day other
than a Saturday, a Sunday, or a day on which banking institutions in the state of Texas are authorized or obligated by law or executive order to close. 
  

 1 

 (g) “Change in Control” means the occurrence of any of the following events: 
  
 (i) The agreement to acquire or a tender offer for beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act by any individual, entity or group (within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”), of 50% or more of either (x) the then
outstanding shares of Stock (the “Outstanding Stock”) or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B)
and (C) of paragraph (iii) below; or 
  
 (ii) Individuals who
constitute the Incumbent Board cease for any reason to constitute at least a majority of the Board; or 
  
 (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or
an acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such Business Combination, (A) the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business
Combination represent or are converted into or exchanged for securities which represent or are convertible into more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company,
or all or substantially all of the Company’s assets either directly or through one or more Subsidiaries), (B) no Person (excluding any employee benefit plan (or related trust) of the Company or the corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership of the Company existed prior to the Business Combination and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
  
 (iv) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 (h) “Change in Control Price” means the amount calculated in
accordance with Section 9 of this Plan. 
  
 (i) “Code”
means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor provisions and regulations thereto. 
  

 - 2 - 

 (j) “Committee” means a committee of two or more directors designated by the Board to
administer this Plan; provided, however, that, unless otherwise determined by the Board, the Committee shall consist solely of two or more directors, each of whom shall be (i) a “nonemployee director” within the meaning of Rule 16b-3 under
the Exchange Act, and (ii) an “outside director” as defined under section 162(m) of the Code, unless administration of this Plan by “outside directors” is not then required in order to qualify for tax deductibility under section
162(m) of the Code. 
  
 (k) “Covered Employee” means an
Eligible Person who is a Covered Employee as specified in Section 8(e) of this Plan. 
  
 (l) “Dividend Equivalent” means a right, granted to a Participant under Section 6(g), to receive cash, Stock, other Awards or other property equal in value to dividends paid with respect to a specified
number of shares of Stock, or other periodic payments. 
  
 (m)
“Effective Date” means the date immediately prior to a firm commitment underwritten public offering of the Stock for cash. 
  
 (n) “Eligible Person” means all officers and employees of the Company or of any Subsidiary, and other persons who provide services to the
Company or any of its Subsidiaries, including directors of the Company. An employee on leave of absence may be considered as still in the employ of the Company or a Subsidiary for purposes of eligibility for participation in this Plan. 

 
 (o) “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time, including rules thereunder and successor provisions and rules thereto. 
  
 (p) “Executive Officer” means an executive officer of the Company as defined under the Exchange Act. 
  
 (q) “Fair Market Value” means, for a particular day: 
  
 (i) if shares of Stock of the same class are listed or admitted to unlisted
trading privileges on any national or regional securities exchange at the date of determining the Fair Market Value, then the last reported sale price, regular way, on the composite tape of that exchange on that business day or, if no such sale
takes place on that business day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to unlisted trading
privileges on that securities exchange or, if no such closing prices are available for that day, the last reported sale price, regular way, on the composite tape of that exchange on the last business day before the date in question; or 

 
 (ii) if shares of Stock of the same class are not listed or admitted to
unlisted trading privileges as provided in subparagraph (i) and if sales prices for shares of Stock of the same class in the over-the-counter market are reported by the National Association of Securities Dealers, Inc. Automated Quotations, Inc.
(“NASDAQ”) National Market System as of the date of determining the Fair Market Value, then the last reported sales price so reported on that business day or, if no such sale takes place on that business day, the average of the high bid
and low asked prices so reported or, if no such prices are available for that day, the last reported sale price so reported on the last business day before the date in question; or 
  

 - 3 - 

 (iii) if shares of Stock of the same class are not listed or admitted to unlisted trading privileges as
provided in subparagraph (i) and sales prices for shares of Stock of the same class are not reported by the NASDAQ National Market System (or a similar system then in use) as provided in subparagraph (ii), and if bid and asked prices for shares of
Stock of the same class in the over-the-counter market are reported by NASDAQ (or, if not so reported, by the National Quotation Bureau Incorporated) as of the date of determining the Fair Market Value, then the average of the high bid and low asked
prices on that business day or, if no such prices are available for that day, the average of the high bid and low asked prices on the last business day before the date in question; or 
  
 (iv) if shares of Stock of the same class are not listed or admitted to unlisted trading privileges as provided in
subparagraph (i) and sales prices or bid and asked prices therefor are not reported by NASDAQ (or the National Quotation Bureau Incorporated) as provided in subparagraph (ii) or subparagraph (iii) as of the date of determining the Fair Market Value,
then the value determined in good faith by the Committee, which determination shall be conclusive for all purposes; or 
  
 (v) if shares of Stock of the same class are listed or admitted to unlisted trading privileges as provided in subparagraph (i) or sales prices or bid and
asked prices therefor are reported by NASDAQ (or the National Quotation Bureau Incorporated) as provided in subparagraph (ii) or subparagraph (iii) as of the date of determining the Fair Market Value, but the volume of trading is so low that the
Board of Directors determines in good faith that such prices are not indicative of the fair value of the Stock, then the value determined in good faith by the Committee, which determination shall be conclusive for all purposes notwithstanding the
provisions of subparagraphs (i), (ii) or (iii). 
  
 For purposes of valuing
Incentive Stock Options, the Fair Market Value of Stock shall be determined without regard to any restriction other than one that, by its terms, will never lapse. 
  
 (r) “Incentive Stock Option” or “ISO” means any Option intended to be and designated as an incentive
stock option within the meaning of section 422 of the Code or any successor provision thereto. 
  
 (s) “Incumbent Board” shall mean individuals who constitute the Board as of the Effective Date and any other individual who becomes a director of the Company after that date and whose election or appointment
by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then comprising the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Incumbent Board. 
  
 (t) “Limited SAR” means a right
granted to a Participant under Section 6(c) hereof. 
  

 - 4 - 

 (u) “Option” means a right, granted to a Participant under Section 6(b) hereof, to purchase
Stock or other Awards at a specified price during specified time periods. 
  
 (v) “Other Stock-Based Awards” means Awards granted to a Participant under Section 6(h) hereof. 
  
 (w) “Participant” means a person who has been granted an Award under this Plan which remains outstanding, including a person who is no longer an
Eligible Person. 
  
 (x) “Performance Award” means a
right, granted to a Participant under Section 8 hereof, to receive Awards based upon performance criteria specified by the Committee. 
  
 (y) “Person” means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a corporation, a
partnership, a limited liability company, a trust or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act), and any Persons acting as a partnership,
limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting jointly or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any express
agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a single “Person.” 
  
 (z) “Phantom Stock” means a right, granted to a Participant under Section 6(e) hereof, to receive Stock, cash or a
combination thereof at the end of a specified deferral period. 
  
 (aa) “Qualified Member” means a member of the Committee who is a “Non-Employee Director” within the meaning of Rule 16b-3(b)(3) and an “outside director” within the meaning of regulation 1.162-27 under section
162(m) of the Code. 
  
 (bb) “Restricted Stock” means
Stock granted to a Participant under Section 6(d) hereof, that is subject to certain restrictions and to a risk of forfeiture. 
  
 (cc) “Rule 16b-3” means Rule 16b-3, promulgated by the Securities and Exchange Commission under section 16 of the Exchange Act, as from time to
time in effect and applicable to this Plan and Participants. 
  
 (dd) “Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder, or any successor law, as it may be amended from time to time. 
  
 (ee) “Stock” means the Company’s Common Stock, par value $.01
per share, and such other securities as may be substituted (or resubstituted) for Stock pursuant to Section 9. 
  
 (ff) “Stock Appreciation Rights” or “SAR” means a right granted to a Participant under Section 6(c) hereof. 
  

 - 5 - 

 (gg) “Subsidiary” means with respect to any Person, any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by that Person. 
  
 3. Administration. 
  
 (a) Authority of the Committee. This Plan shall be administered by the Committee except to the extent the Board elects, in order to comply with
Rule 16b-3 or for any other reason, to administer this Plan, in which case references herein to the “Committee” shall be deemed to include references to the “Board.” Subject to the express provisions of the Plan and Rule 16b-3,
the Committee shall have the authority, in its sole and absolute discretion, to (i) adopt, amend, and rescind administrative and interpretive rules and regulations relating to the Plan; (ii) determine the Eligible Persons to whom, and the time or
times at which, Awards shall be granted; (iii) determine the amount of cash and the number of shares of Stock, Stock Appreciation Rights, Phantom Stock Rights, or Restricted Stock Awards, or any combination thereof, that shall be the subject of each
Award; (iv) determine the terms and provisions of each Award agreement (which need not be identical), including provisions defining or otherwise relating to (A) the term and the period or periods and extent of exercisability of the Options, (B) the
extent to which the transferability of shares of Stock issued or transferred pursuant to any Award is restricted, (C) the effect of termination of employment of a Participant on the Award, and (D) the effect of approved leaves of absence (consistent
with any applicable regulations of the Internal Revenue Service); (v) accelerate the time of exercisability of any Option that has been granted; (vi) construe the respective Award agreements and the Plan; (vii) make determinations of the Fair Market
Value of the Stock pursuant to the Plan; (viii) delegate its duties under the Plan to such agents as it may appoint from time to time, provided that the Committee may not delegate its duties with respect to making Awards to, or otherwise with
respect to Awards granted to, Eligible Persons who are subject to section 16(b) of the Exchange Act or section 162(m) of the Code; (ix) subject to ratification by the Board, terminate, modify, or amend the Plan; and (x) make all other
determinations, perform all other acts, and exercise all other powers and authority necessary or advisable for administering the Plan, including the delegation of those ministerial acts and responsibilities as the Committee deems appropriate.
Subject to Rule 16b-3 and section 162(m) of the Code, the Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan, in any Award, or in any Award agreement in the manner and to the extent it deems necessary
or desirable to carry the Plan into effect, and the Committee shall be the sole and final judge of that necessity or desirability. The determinations of the Committee on the matters referred to in this Section 3(a) shall be final and conclusive.

  
 (b) Manner of Exercise of Committee Authority. At any
time that a member of the Committee is not a Qualified Member, any action of the Committee relating to an Award granted or to be granted to a Participant who is then subject to section 16 of the Exchange Act in respect of the Company, or relating to
an Award intended by the Committee to qualify as “performance-based compensation” within the meaning of section 162(m) of the Code and regulations thereunder, may be taken either (i) by a subcommittee, designated by the Committee, composed
solely of two or more Qualified Members, or (ii) by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action; provided, however, that, upon such abstention or recusal, the
Committee remains 
  

 - 6 - 

 composed solely of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon
the abstention or recusal of such non-Qualified Member(s), shall be the action of the Committee for purposes of this Plan. Any action of the Committee shall be final, conclusive and binding on all persons, including the Company, its Subsidiaries,
stockholders, Participants, Beneficiaries, and transferees under Section 10(a) hereof or other persons claiming rights from or through a Participant. The express grant of any specific power to the Committee, and the taking of any action by the
Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any Subsidiary, or committees thereof, the authority, subject to such terms as the Committee
shall determine, to perform such functions, including administrative functions, as the Committee may determine, to the extent that such delegation will not result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants
subject to section 16 of the Exchange Act in respect of the Company and will not cause Awards intended to qualify as “performance-based compensation” under section 162(m) of the Code to fail to so qualify. The Committee may appoint agents
to assist it in administering this Plan. 
  
 (c) Limitation of
Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee of the Company or a Subsidiary, the Company’s legal
counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan. Members of the Committee and any officer or employee of the Company or a Subsidiary acting at the direction or on behalf of the Committee
shall not be personally liable for any action or determination taken or made in good faith with respect to this Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action
or determination. 
  
 4. Stock Subject to Plan. 

 
 (a) Overall Number of Shares Available for Delivery. Subject to
adjustment in a manner consistent with any adjustment made pursuant to Section 9, the total number of shares of Stock reserved and available for delivery in connection with Awards under this Plan shall not exceed 1,000,000 shares; provided, however,
that any shares issued pursuant to awards granted on or after July 12, 2005 under the Republic Stock Plan, adjusted in a manner consistent with Section 9, shall count against this limit. 
  
 (b) Application of Limitation to Grants of Awards. No Award may be granted if the number of shares of Stock to be
delivered in connection with such Award exceeds the number of shares of Stock remaining available under this Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards. The Committee may adopt
reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of
shares previously counted in connection with an Award. 
  

 - 7 - 

 (c) Availability of Shares Not Delivered under Awards. Shares of Stock subject to an Award under
this Plan that expire or are canceled, forfeited, settled in cash or otherwise terminated without a delivery of shares to the Participant, including (i) the number of shares withheld in payment of any exercise or purchase price of an Award or taxes
relating to Awards, and (ii) the number of shares surrendered in payment of any exercise or purchase price of an Award or taxes relating to any Award, will again be available for Awards under this Plan, except that if any such shares could not again
be available for Awards to a particular Participant under any applicable law or regulation, such shares shall be available exclusively for Awards to Participants who are not subject to such limitation. 
  
 (d) Stock Offered. The shares to be delivered under the Plan shall be
made available from (i) authorized but unissued shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market, in each situation
as the Board or the Committee may determine from time to time at its sole option. 
  
 5. Eligibility. Awards may be granted under this Plan only to Eligible Persons. 
  
 6. Specific Terms of Awards. 
  
 (a) General. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee may impose on any Award or
the exercise thereof, at the date of grant or thereafter (subject to Section 10(c)), such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Committee shall determine, including terms requiring forfeiture of
Awards in the event of termination of employment by the Participant and terms permitting a Participant to make elections relating to his or her Award. The Committee shall retain full power and discretion to accelerate, waive or modify, at any time,
any term or condition of an Award that is not mandatory under this Plan; provided, however, that the Committee shall not have any discretion to accelerate, waive or modify any term or condition of an Award that is intended to qualify as
“performance-based compensation” for purposes of section 162(m) of the Code if such discretion would cause the Award to not so qualify. Except in cases in which the Committee is authorized to require other forms of consideration under this
Plan, or to the extent other forms of consideration must be paid to satisfy the requirements of the Delaware General Corporation Law, no consideration other than services may be required for the grant (but not the exercise) of any Award. 

 
 (b) Options. The Committee is authorized to grant Options to
Participants on the following terms and conditions: 
  
 (i)
Exercise Price. Each Option agreement shall state the exercise price per share of Stock (the “Exercise Price”); provided, however, that the Exercise Price per share of Stock subject to an Incentive Stock Option shall not be less
than the greater of (A) the par value per share of the Stock or (B) 100% of the Fair Market Value per share of the Stock on the date of grant of the Option or in the case of an individual who owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or its parent or any Subsidiary 110% of the Fair Market Value per share of the Stock on the date of grant, and the exercise price per share of Stock subject to an Option other than an
Incentive Stock Option shall not be less than the par value per share of the Stock (but may be less than the Fair Market Value of a share of the Stock on the date of grant). 
  

 - 8 - 

 (ii) Time and Method of Exercise. The Committee shall determine the time or times at which or the
circumstances under which an Option may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the methods by which such exercise price may be paid or deemed to be paid, the form of
such payment, including without limitation cash, Stock, other Awards or awards granted under other plans of the Company or any Subsidiary, or other property (including notes or other contractual obligations of Participants to make payment on a
deferred basis), and the methods by or forms in which Stock will be delivered or deemed to be delivered to Participants, including, but not limited to, the delivery of Restricted Stock subject to Section 6(d). In the case of an exercise whereby the
Exercise Price is paid with Stock, such Stock shall be valued as of the date of exercise. 
  
 (iii) ISOs. The terms of any ISO granted under this Plan shall comply in all respects with the provisions of section 422 of the Code. Anything in this Plan to the contrary notwithstanding, no term of this Plan
relating to ISOs (including any SAR in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under this Plan be exercised, so as to disqualify either this Plan or any ISO under section 422 of the
Code, unless the Participant has first requested the change that will result in such disqualification. ISOs shall not be granted more than ten years after the earlier of the adoption of this Plan or the approval of this Plan by the Company’s
stockholders. Notwithstanding the foregoing, the Fair Market Value of shares of Stock subject to an ISO and the aggregate Fair Market Value of shares of stock of any parent or Subsidiary corporation (within the meaning of sections 424(e) and (f) of
the Code) subject to any other incentive stock option (within the meaning of section 422 of the Code)) of the Company or a parent or Subsidiary corporation (within the meaning of sections 424(e) and (f) of the Code) that first becomes purchasable by
a Participant in any calendar year may not (with respect to that Participant) exceed $100,000, or such other amount as may be prescribed under section 422 of the Code or applicable regulations or rulings from time to time. As used in the previous
sentence, Fair Market Value shall be determined as of the date the incentive stock option is granted. Failure to comply with this provision shall not impair the enforceability or exercisability of any Option, but shall cause the excess amount of
shares to be reclassified in accordance with the Code. 
  
 (c)
Stock Appreciation Rights. The Committee is authorized to grant SARs to Participants on the following terms and conditions: 
  
 (i) Right to Payment. An SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise or settlement thereof, the
excess of (A) the Fair Market Value of one share of Stock on the date of exercise or settlement (or, in the case of a “Limited SAR,” the Fair Market Value determined by reference to the Change in Control Price, as defined under Section
2(h) hereof) over (B) the grant price of the SAR as determined by the Committee. 
  
 (ii) Rights Related to Options. A Stock Appreciation Right granted pursuant to an Option shall entitle a Participant, upon exercise or settlement, to surrender that 
  

 - 9 - 

 Option or any portion thereof, to the extent unexercised or not settled, and to receive payment of an amount computed
pursuant to Subsection 6(c)(ii)(B). That Option shall then cease to be exercisable or settleable to the extent surrendered. Stock Appreciation Rights granted in connection with an Option shall be subject to the terms of the Award agreement governing
the Option, which shall comply with the following provisions in addition to those applicable to Options: 
  
 (A) A Stock Appreciation Right granted in connection with an Option shall be exercisable or settleable only at such time or times and
only to the extent that the related Option is exercisable and shall not be transferable except to the extent that the related Option is transferable. 
  
 (B) Upon the exercise or settlement of a Stock Appreciation Right related to an Option, a Participant shall be entitled to receive
payment from the Company of an amount determined by multiplying: 
  
 (1) the difference obtained by subtracting the exercise price of a share of Stock specified in the related Option from the Fair Market Value of a share of Stock on the date of exercise or settlement of the Stock
Appreciation Right, by 
  
 (2) the number of
shares as to which that Stock Appreciation Right has been exercised or settled. 
  
 (iii) Right Without Option. A Stock Appreciation Right granted independent of an Option shall be exercisable or settleable as determined by the Committee and set forth in the Award agreement governing the Stock
Appreciation Right, which Award agreement shall comply with the following provisions: 
  
 (A) Each Award agreement shall state the total number of shares of Stock to which the Stock Appreciation Right relates. 
  
 (B) Each Award agreement shall state the time at which the
Stock Appreciation Right will vest, the time the Stock Appreciation Right will be settled, or the time or periods in which the right to exercise the Stock Appreciation Right or a portion thereof shall vest and the number of shares of Stock for which
the right to exercise the Stock Appreciation Right shall vest at each such time or period. 
  
 (C) Each Award agreement shall state the date at which the Stock Appreciation Rights shall expire if not previously exercised or settled.

  
 (D) Each Stock Appreciation Right shall
entitle a Participant, upon exercise or settlement thereof, to receive payment of an amount determined by multiplying: 
  
 (1) the difference obtained by subtracting the Fair Market Value of a share of Stock on the date of grant of the Stock Appreciation Right
from the Fair Market Value of a share of Stock on the date of exercise or settlement of that Stock Appreciation Right, by 
  

 - 10 - 

 (2) the number of shares as to which the Stock Appreciation Right has been exercised or
settled. 
  
 (iv) Terms. The Committee shall determine at
the date of grant or thereafter, the time or times at which and the circumstances under which an SAR may be exercised or settled in whole or in part (including based on achievement of performance goals and/or future service requirements), the method
of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Participants, whether or not any SAR shall be in tandem or in combination with any other
Award, and any other terms and conditions of any SAR. Limited SARs that may only be exercised in connection with a Change in Control or other event as specified by the Committee may be granted on such terms, not inconsistent with this Section 6(c),
as the Committee may determine. SARs and Limited SARs may be either freestanding or in tandem with other Awards. 
  
 (d) Restricted Stock. The Committee is authorized to grant Restricted Stock to Participants on the following terms and conditions: 
  
 (i) Grant and Restrictions. Restricted Stock shall be subject to
such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement
of performance goals and/or future service requirements), in such installments or otherwise, as the Committee may determine at the date of grant or thereafter. Except to the extent restricted under the terms of this Plan and any Award agreement
relating to the Restricted Stock, a Participant granted Restricted Stock shall have all of the rights of a stockholder, including the right to vote the Restricted Stock and the right to receive dividends thereon (subject to any mandatory
reinvestment or other requirement imposed by the Committee). During the restricted period applicable to the Restricted Stock, the Restricted Stock may not be sold, transferred, pledged, hypothecated, margined or otherwise encumbered by the
Participant. 
  
 (ii) Forfeiture. Except as otherwise
determined by the Committee, upon termination of employment during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by the Company; provided that the Committee may
provide, by rule or regulation or in any Award agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Stock shall be waived in whole or in part in the event of terminations resulting
from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted Stock. 
  
 (iii) Certificates for Stock. Restricted Stock granted under this Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Stock are registered in the name of the Participant, the Committee may require that such certificates bear an appropriate legend referring to the terms, conditions and restrictions 
  

 - 11 - 

 applicable to such Restricted Stock, that the Company retain physical possession of the certificates, and that the
Participant deliver a stock power to the Company, endorsed in blank, relating to the Restricted Stock. 
  
 (iv) Dividends and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may require or permit a Participant to elect
that any cash dividends paid on a share of Restricted Stock be automatically reinvested in additional shares of Restricted Stock or applied to the purchase of additional Awards under this Plan. Unless otherwise determined by the Committee, Stock
distributed in connection with a Stock split or Stock dividend, and other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such Stock or
other property has been distributed. 
  
 (e) Phantom Stock.
The Committee is authorized to grant Phantom Stock to Participants, which are rights to receive Stock, cash, or a combination thereof at the end of a specified deferral period, subject to the following terms and conditions: 
  
 (i) Award and Restrictions. Satisfaction of an Award of Phantom
Stock shall occur upon expiration of the deferral period specified for such Phantom Stock by the Committee (or, if permitted by the Committee, as elected by the Participant). In addition, Phantom Stock shall be subject to such restrictions (which
may include a risk of forfeiture) as the Committee may impose, if any, which restrictions may lapse at the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or future service
requirements), separately or in combination, in installments or otherwise, as the Committee may determine. Phantom Stock may be satisfied by delivery of Stock, cash equal to the Fair Market Value of the specified number of shares of Stock covered by
the Phantom Stock, or a combination thereof, as determined by the Committee at the date of grant or thereafter. 
  
 (ii) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment during the applicable deferral period or portion
thereof to which forfeiture conditions apply (as provided in the Award agreement evidencing the Phantom Stock), all Phantom Stock that is at that time subject to deferral (other than a deferral at the election of the Participant) shall be forfeited;
provided that the Committee may provide, by rule or regulation or in any Award agreement, or may determine in any individual case, that restrictions or forfeiture conditions relating to Phantom Stock shall be waived in whole or in part in the event
of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Phantom Stock. 
  
 (iii) Dividend Equivalents. Unless otherwise determined by the Committee at date of grant, Dividend Equivalents on the specified number of shares
of Stock covered by an Award of Phantom Stock shall be either (A) paid with respect to such Phantom Stock on the dividend payment date in cash or in shares of unrestricted Stock having a Fair Market Value equal to the amount of such dividends, or
(B) deferred with respect to such Phantom Stock and the amount or value thereof automatically deemed reinvested in additional Phantom Stock, other Awards or other investment vehicles, as the Committee shall determine or permit the Participant to
elect. 
  

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 (f) Bonus Stock and Awards in Lieu of Obligations. The Committee is authorized to grant Stock as a
bonus, or to grant Stock or other Awards in lieu of obligations to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, provided that, in the case of Participants subject to section 16 of the Exchange
Act, the amount of such grants remains within the discretion of the Committee to the extent necessary to ensure that acquisitions of Stock or other Awards are exempt from liability under section 16(b) of the Exchange Act. Stock or Awards granted
hereunder shall be subject to such other terms as shall be determined by the Committee. In the case of any grant of Stock to an officer of the Company or a Subsidiary in lieu of salary or other cash compensation, the number of shares granted in
place of such compensation shall be reasonable, as determined by the Committee. 
  
 (g) Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents to a Participant, entitling the Participant to receive cash, Stock, other Awards, or other property equal in value to
dividends paid with respect to a specified number of shares of Stock, or other periodic payments. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award. The Committee may provide that Dividend Equivalents
shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Stock, Awards, or other investment vehicles, and subject to such restrictions on transferability and risks of forfeiture, as the Committee may
specify. 
  
 (h) Other Stock-Based Awards. The Committee is
authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, as deemed by the
Committee to be consistent with the purposes of this Plan, including without limitation bonus Stock grants, Stock in lieu of salary or other compensation, convertible or exchangeable debt securities, other rights convertible or exchangeable into
Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of or
the performance of specified Subsidiaries. The Committee shall determine the terms and conditions of such Awards. Stock delivered pursuant to an Award in the nature of a purchase right granted under this Section 6(h) shall be purchased for such
consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Stock, other Awards, or other property, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award
under this Plan, may also be granted pursuant to this Section 6(h). 
  
 7. Certain Provisions Applicable to Awards. 
  
 (a) Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted under this Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any
other Award or any award granted under another plan of the Company, any Subsidiary, or any business entity to be acquired by the Company or a Subsidiary, or any other right of a Participant to receive payment from the Company or any Subsidiary. Such
additional, tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Committee shall require the surrender of such other Award in consideration 
  

 - 13 - 

 for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of
cash amounts payable under other plans of the Company or any Subsidiary, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for example, Phantom Stock or Restricted Stock), or in which the exercise
price, grant price or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying Stock minus the value of the cash compensation surrendered (for example, Options granted with an
exercise price “discounted” by the amount of the cash compensation surrendered). 
  
 (b) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee; provided that in no event shall the term of any Option or SAR exceed a period of ten years (or such
shorter term as may be required in respect of an ISO under section 422 of the Code). 
  
 (c) Form and Timing of Payment under Awards; Deferrals. Subject to the terms of this Plan and any applicable Award agreement, payments to be made by the Company or a Subsidiary upon the exercise of an Option or
other Award or settlement of an Award may be made in such forms as the Committee shall determine, including without limitation cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a
deferred basis. The settlement of any Award may be accelerated, and cash paid in lieu of Stock in connection with such settlement, in the discretion of the Committee or upon occurrence of one or more specified events (in addition to a Change in
Control). Installment or deferred payments may be required by the Committee (subject to Section 10(c) of this Plan, including the consent provisions thereof in the case of any deferral of an outstanding Award not provided for in the original Award
agreement) or permitted at the election of the Participant on terms and conditions established by the Committee. Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Stock. Any deferral shall only be allowed as is provided in a separate deferred compensation plan adopted by
the Company. This Plan shall not constitute an “employee benefit plan” for purposes of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 
  
 (d) Exemptions from Section 16(b) Liability. It is the intent of the Company that the grant of any Awards to or other
transaction by a Participant who is subject to section 16 of the Exchange Act shall be exempt from section 16 pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by such Participant). Accordingly, if
any provision of this Plan or any Award agreement does not comply with the requirements of Rule 16b-3 as then applicable to any such transaction, such provision shall be construed or deemed amended to the extent necessary to conform to the
applicable requirements of Rule 16b-3 so that such Participant shall avoid liability under section 16(b). 
  
 (e) Non-Competition Agreement. Each Participant to whom an Award is granted under this Plan may be required to agree in writing as a condition to
the granting of such Award not to engage in conduct in competition with the Company or any of its Subsidiaries for a period after the termination of such Participant’s employment with the Company and its Subsidiaries as determined by the
Committee. 
  

 - 14 - 

 8. Performance and Annual Incentive Awards. 
  
 (a) Performance Conditions. The right of a Participant to exercise or
receive a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem
appropriate in establishing any performance conditions, and may exercise its discretion to reduce or increase the amounts payable under any Award subject to performance conditions, except as limited under Sections 8(b) and 8(c) hereof in the case of
a Performance Award or Annual Incentive Award intended to qualify under section 162(m) of the Code. 
  
 (b) Performance Awards Granted to Designated Covered Employees. If the Committee determines that a Performance Award to be granted to an Eligible
Person who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of section 162(m) of the Code, the grant, exercise and/or settlement of such Performance Award may
be contingent upon achievement of preestablished performance goals and other terms set forth in this Section 8(b). 
  
 (i) Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria or individual
performance criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 8(b). Performance goals shall be objective and shall otherwise meet the requirements
of section 162(m) of the Code and regulations thereunder (including Treasury Regulation §1.162-27 and successor regulations thereto), including the requirement that the level or levels of performance targeted by the Committee result in the
achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance Awards shall be granted, exercised, and/or settled upon achievement of any one performance goal or that two or more of the
performance goals must be achieved as a condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards granted to any one Participant or to different Participants. 
  
 (ii) Business and Individual Performance Criteria. 
  
 (A) Business Criteria. One or more of the following
business criteria for the Company, on a consolidated basis, and/or for specified Subsidiaries or business or geographical units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used by
the Committee in establishing performance goals for such Performance Awards: (1) earnings per share; (2) increase in revenues; (3) increase in cash flow; (4) increase in cash flow return; (5) return on net assets, return on assets, return on
investment, return on capital, or return on equity; (6) economic value added; (7) operating margin or contribution margin; (8) net income; pretax earnings; pretax earnings before interest, depreciation and amortization; pretax operating earnings
after interest expense and before incentives, service fees, and extraordinary or special items; or operating income; (9) total stockholder return; (10) debt reduction; (11) combined ratio; (12) reduction in expense ratio; and (13) any of the above
goals determined on an absolute or relative basis or as compared to the performance of a 
  

 - 15 - 

 published or special index deemed applicable by the Committee including, but not limited to, the Standard
& Poor’s 500 Stock Index or a group of comparable companies. One or more of the foregoing business criteria shall also be exclusively used in establishing performance goals for Annual Incentive Awards granted to a Covered Employee under
Section 8(c) hereof. 
  
 (B) Individual
Performance Criteria. The grant, exercise and/or settlement of Performance Awards may also be contingent upon individual performance goals established by the Committee. If required for compliance with section 162(m) of the Code, such criteria
shall be approved by the stockholders of the Company. 
  
 (iii)
Performance Period; Timing for Establishing Performance Goals. Achievement of performance goals in respect of such Performance Awards shall be measured over a performance period of up to ten years, as specified by the Committee. Performance
goals shall be established not later than 90 days after the beginning of any performance period applicable to such Performance Awards, or at such other date as may be required or permitted for “performance-based compensation” under section
162(m) of the Code. 
  
 (iv) Performance Award Pool. The
Committee may establish a Performance Award pool, which shall be an unfunded pool, for purposes of measuring performance of the Company in connection with Performance Awards. The amount of such Performance Award pool shall be based upon the
achievement of a performance goal or goals based on one or more of the criteria set forth in Section 8(b)(ii) hereof during the given performance period, as specified by the Committee in accordance with Section 8(b)(iii) hereof. The Committee may
specify the amount of the Performance Award pool as a percentage of any of such criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly mathematical relationship to such criteria.

  
 (v) Settlement of Performance Awards; Other Terms.
After the end of each performance period, the Committee shall determine the amount, if any, of (A) the Performance Award pool, and the maximum amount of potential Performance Award payable to each Participant in the Performance Award pool, or (B)
the amount of potential Performance Award otherwise payable to each Participant. Settlement of such Performance Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion,
reduce the amount of a settlement otherwise to be made in connection with such Performance Awards, but may not exercise discretion to increase any such amount payable to a Covered Employee in respect of a Performance Award subject to this Section
8(b). The Committee shall specify the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of employment by the Participant prior to the end of a performance period or settlement of Performance
Awards. 
  
 (c) Annual Incentive Awards Granted to Designated
Covered Employees. If the Committee determines that an Annual Incentive Award to be granted to an Eligible Person who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation”
for purposes of section 162(m) of the Code, the grant, exercise and/or settlement of such Annual Incentive Award shall be contingent upon achievement of preestablished performance goals and other terms set forth in this Section 8(c). 
  

 - 16 - 

 (i) Annual Incentive Award Pool. The Committee may establish an Annual Incentive Award pool,
which shall be an unfunded pool, for purposes of measuring performance of the Company in connection with Annual Incentive Awards. The amount of such Annual Incentive Award pool shall be based upon the achievement of a performance goal or goals based
on one or more of the business criteria set forth in Section 8(b)(ii) hereof during the given performance period, as specified by the Committee in accordance with Section 8(b)(iii) hereof. The Committee may specify the amount of the Annual Incentive
Award pool as a percentage of any of such business criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly mathematical relationship to such business criteria. 
  
 (ii) Potential Annual Incentive Awards. Not later than the end of the
90th day of each fiscal year, or at such other date as may be required or permitted in the case of Awards intended to be “performance-based compensation” under section 162(m) of the Code, the Committee shall determine the Eligible Persons
who will potentially receive Annual Incentive Awards, and the amounts potentially payable thereunder, for that fiscal year, either out of an Annual Incentive Award pool established by such date under Section 8(c)(i) hereof or as individual Annual
Incentive Awards. In the case of individual Annual Incentive Awards intended to qualify under section 162(m) of the Code, the amount potentially payable shall be based upon the achievement of a performance goal or goals based on one or more of the
business criteria set forth in Section 8(b)(ii) hereof in the given performance year, as specified by the Committee; in other cases, such amount shall be based on such criteria as shall be established by the Committee. 
  
 (iii) Payout of Annual Incentive Awards. After the end of each fiscal
year, the Committee shall determine the amount, if any, of (A) the Annual Incentive Award pool, and the maximum amount of potential Annual Incentive Award payable to each Participant in the Annual Incentive Award pool, or (B) the amount of potential
Annual Incentive Award otherwise payable to each Participant. The Committee may, in its discretion, determine that the amount payable to any Participant as a final Annual Incentive Award shall be increased or reduced from the amount of his or her
potential Annual Incentive Award, including a determination to make no final Award whatsoever, but may not exercise discretion to increase any such amount in the case of an Annual Incentive Award intended to qualify under section 162(m) of the Code.
The Committee shall specify the circumstances in which an Annual Incentive Award shall be paid or forfeited in the event of termination of employment by the Participant prior to the end of a fiscal year or settlement of such Annual Incentive Award.

  
 (d) Written Determinations. All determinations by the
Committee as to the establishment of performance goals, the amount of any Performance Award pool or potential individual Performance Awards and as to the achievement of performance goals relating to Performance Awards under Section 8(b), and the
amount of any Annual Incentive Award pool or potential individual Annual Incentive Awards and the amount of final Annual Incentive Awards under Section 8(c), shall be made in writing in the case of any Award intended to qualify under section 162(m)
of the Code. The Committee may not delegate any responsibility relating to such Performance Awards or Annual Incentive Awards. 
  

 - 17 - 

 (e) Status of Section 8(b) and Section 8(c) Awards under Section 162(m) of the Code. It is the
intent of the Company that Performance Awards and Annual Incentive Awards under Sections 8(b) and 8(c) hereof granted to persons who are designated by the Committee as likely to be Covered Employees within the meaning of section 162(m) of the Code
and regulations thereunder (including Treasury Regulation §1.162-27 and successor regulations thereto) shall, if so designated by the Committee, constitute “performance-based compensation” within the meaning of section 162(m) of the
Code and regulations thereunder. Accordingly, the terms of Sections 8(b), (c), (d) and (e), including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with section 162(m) of the Code and
regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Participant will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered
Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards or an Annual Incentive Award, who is likely to be a Covered Employee with respect to that fiscal year. If any provision of this
Plan as in effect on the date of adoption or any agreements relating to Performance Awards or Annual Incentive Awards that are designated as intended to comply with section 162(m) of the Code does not comply or is inconsistent with the requirements
of section 162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
  
 9. Recapitalization or Reorganization. 
  
 (a) Existence of Plans and Awards. The existence of this Plan and the Awards granted hereunder shall not affect in
any way the right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of
the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or
any other corporate act or proceeding. 
  
 (b) Subdivision or
Consolidation of Shares. The terms of an Award and the number of shares of Stock authorized pursuant to Section 4 for issuance under the Plan shall be subject to adjustment from time to time, in accordance with the following provisions:

  
 (i) If at any time, or from time to time, the Company shall
subdivide as a whole (by reclassification, by a Stock split, by the issuance of a distribution on Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of Stock, then (A) the maximum
number of shares of Stock available for the Plan as provided in Section 4 shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or
other kind of shares or securities) that may be acquired under any Award shall be increased proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding
Awards shall be reduced proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. 
  

 - 18 - 

 (ii) If at any time, or from time to time, the Company shall consolidate as a whole (by
reclassification, reverse Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, (A) the maximum number of shares of Stock available for the Plan as provided in Section 4 shall be decreased
proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired under any Award shall be decreased
proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or
value as to which outstanding Awards remain exercisable or subject to restrictions. 
  
 (iii) Whenever the number of shares of Stock subject to outstanding Awards and the price for each share of Stock subject to outstanding Awards are required to be adjusted as provided in this Section 9(b), the
Committee shall promptly prepare a notice setting forth, in reasonable detail, the event requiring adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the change in price and the number of shares of
Stock, other securities, cash, or property purchasable subject to each Award after giving effect to the adjustments. The Committee shall promptly give each Participant such a notice. 
  
 (iv) Adjustments under Subsections 9(b)(i) and (ii) shall be made by the Committee, and its determination as to what
adjustments shall be made and the extent thereof shall be final, binding, and conclusive. No fractional interest shall be issued under the Plan on account of any such adjustments. 
  
 (c) Corporate Restructuring. If the Company recapitalizes, reclassifies its capital stock, or otherwise changes its
capital structure (a “recapitalization”), the number and class of shares of Stock covered by an Option theretofore granted shall be adjusted so that such Option shall thereafter cover the number and class of shares of stock and securities
to which the holder would have been entitled pursuant to the terms of the recapitalization if, immediately prior to the recapitalization, the holder had been the holder of record of the number of shares of Stock then covered by such Option and the
share limitations provided in Sections 4 and 5 shall be adjusted in a manner consistent with the recapitalization. Upon a Change in Control the Committee, acting in its sole discretion without the consent or approval of any holder, shall effect one
or more of the following alternatives, which may vary among individual holders and which may vary among Options held by any individual holder: (1) accelerate the time at which Options then outstanding may be exercised so that such Options may be
exercised in full for a limited period of time on or before a specified date (before or after such Change in Control) fixed by the Committee, after which specified date all unexercised Options and all rights of holders thereunder shall terminate,
(2) require the mandatory surrender to the Company by selected holders of some or all of the outstanding Options held by such holders (irrespective of whether such Options are then exercisable under the provisions of this Plan) as of a date, before
or after such Change in Control, specified by the Committee, in which event the Committee shall thereupon cancel such Options and pay to each holder an amount of cash per share equal to the 
  

 - 19 - 

 excess, if any, of the amount calculated in Section 9(d) (the “Change in Control Price”) of the shares subject
to such Option over the exercise price(s) under such Options for such shares, or (3) make such adjustments to Options then outstanding as the Committee deems appropriate to reflect such Change in Control; provided, however, that the Committee may
determine in its sole discretion that no adjustment is necessary to Options then outstanding; provided, further, that the right to make such adjustments shall include, but not be limited to, the modification of an Option such that the holder of the
Option shall be entitled to purchase or receive (in lieu of the total shares that the holder would otherwise be entitled to purchase or receive under the Option (the “Total Shares”)), the number of shares of stock, other securities, cash
or property to which the Total Shares would have been entitled to in connection with the Change in Control, at an aggregate exercise price equal to the exercise price that would have been payable if the Total Shares had been purchased upon the
exercise of the Option immediately before the consummation of the Change in Control. 
  
 (d) Change in Control Price. The “Change in Control Price” shall equal the amount determined in clause (i), (ii), (iii), (iv) or (v), whichever is applicable, as follows: (i) the per share price
offered to holders of the same class of Stock of the Company in any such merger or consolidation, (ii) the per share value of the Stock immediately before the Change in Control without regard to assets sold in the Change in Control and assuming the
Company has received the consideration paid for the assets in the case of a sale of the assets, (iii) the amount distributed per share of Stock in a dissolution transaction, (iv) the price per share offered to holders of the same class of Stock of
the Company in any tender offer or exchange offer whereby a Change in Control takes place, or (v) if such Change in Control occurs other than pursuant to a tender or exchange offer, the fair market value per share of the shares into which such
Options being surrendered are exercisable, as determined by the Committee as of the date determined by the Committee to be the date of cancellation and surrender of such Options. In the event that the consideration offered to stockholders of the
Company in any transaction described in this Section 9(d) or Section 9(c) above consists of anything other than cash, the Committee shall determine the fair cash equivalent of the portion of the consideration offered which is other than cash.

  
 (e) Non-Option Awards. In the event of changes in the
outstanding Stock by reason of recapitalization, reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization occurring after the date of the grant of any Award and not otherwise provided for by this
Section 9, any outstanding Awards and any agreements evidencing such Awards shall be subject to adjustment by the Committee at its discretion as to the number and price of shares of Stock or other consideration subject to such Awards. In the event
of any such change in the outstanding Stock, the aggregate number of shares available under this Plan may be appropriately adjusted by the Committee, whose determination shall be conclusive. 
  
 (f) Additional Issuances. Except as hereinbefore expressly provided,
the issuance by the Company of shares of stock of any class or securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or obligations of the Company convertible into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of
shares of Stock subject to Awards theretofore granted or the purchase price per share, if applicable. 
  

 - 20 - 

 (g) Restricted Stock Awards. Plan provisions to the contrary notwithstanding, with respect to any
Restricted Stock Awards outstanding at the time a Change in Control as described in Section 2(g) occurs, the Committee may, in its discretion and as of a date determined by the Committee, fully vest any or all Stock awarded to the holder pursuant to
such Restricted Stock Award and then outstanding and, upon such vesting, all restrictions applicable to such Restricted Stock Award shall terminate as of such date. Any action by the Committee pursuant to this Section 9(g) may vary among individual
holders and may vary among the Restricted Stock Awards held by any individual holder. 
  
 10. General Provisions. 
  
 (a) Transferability. 
  
 (i) Permitted
Transferees. The Committee may, in its discretion, permit a Participant to transfer all or any portion of an Option, Stock Appreciation Right, Phantom Stock Award or Restricted Stock Award (if such Restricted Stock Award does not require the
transfer of consideration by the Participant or the holder other than usual and customary service) after the Company’s initial registration of the Stock under section 12(b) or 12(g) of the Exchange Act, or authorize all or a portion of such
Awards to be granted to an Eligible Person to be on terms which permit transfer by such Participant; provided that, in either case the transferee or transferees must be any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, in each case with respect to the Participant, any person sharing the
Participant’s household (other than a tenant or employee of the Company), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Participant) control the management of
assets, and any other entity in which these persons (or the Participant) own more than fifty percent of the voting interests (collectively, “Permitted Transferees”); provided further that, (X) there may be no consideration for any such
transfer and (Y) subsequent transfers of Awards transferred as provided above shall be prohibited except subsequent transfers back to the original holder of the Award and transfers to other Permitted Transferees of the original holder. Agreements
evidencing Awards with respect to which such transferability is authorized at the time of grant must be approved by the Committee, and must expressly provide for transferability in a manner consistent with this Subsection 10(a)(i). 
  
 (ii) Qualified Domestic Relations Orders. An Option, Stock
Appreciation Right, Phantom Stock Award or Restricted Stock Award (if such Restricted Stock Award does not require the transfer of consideration by the Participant or the holder other than usual and customary service) after the Company’s
initial registration of the Stock under section 12(b) or 12(g) of the Exchange Act, may be transferred, to a Permitted Transferee, pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the
Company of written notice of such transfer and a certified copy of such order. 
  

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 (iii) Other Transfers. Except as expressly permitted by Subsections 10(a)(i) and 10(a)(ii),
Awards shall not be transferable other than by will or the laws of descent and distribution except that in the Committee’s discretion a Stock Appreciation Right, Phantom Stock Award (if such Stock Appreciation Right or Phantom Stock Award is
not exercisable for Stock and not subject to the Participant’s or holder’s discretion as to the timing or method of payment) or Restricted Stock Award (if such Restricted Stock Award does not require the transfer of consideration by the
Participant or the holder other than usual and customary service) may be transferable, however, not for consideration. Notwithstanding anything to the contrary in this Section 10, an Incentive Stock Option shall not be transferable other than by
will or the laws of descent and distribution. 
  
 (iv) Effect
of Transfer. Following the transfer of any Award as contemplated by Subsections 10(a)(i), 10(a)(ii) and 10(a)(iii), (A) such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer,
provided that the term “Participant” shall be deemed to refer to the Permitted Transferee, the recipient under a qualified domestic relations order, the estate or heirs of a deceased Participant, or other transferee, as applicable, to the
extent appropriate to enable the Participant to exercise the transferred Award in accordance with the terms of this Plan and applicable law and (B) the provisions of the Award relating to exercisability hereof shall continue to be applied with
respect to the original Participant and, following the occurrence of any such events described therein the Awards shall be exercisable by the Permitted Transferee, the recipient under a qualified domestic relations order, the estate or heirs of a
deceased Participant, or other transferee, as applicable, only to the extent and for the periods that would have been applicable in the absence of the transfer. 
  

(v) Procedures and Restrictions. Any Participant desiring to transfer an Award as permitted under Subsections 10(a)(i), 10(a)(ii) or 10(a)(iii)
shall make application therefor in the manner and time specified by the Committee and shall comply with such other requirements as the Committee may require to assure compliance with all applicable securities laws. The Committee shall not give
permission for such a transfer if (A) it would give rise to short-swing liability under section 16(b) of the Exchange Act or (B) it may not be made in compliance with all applicable federal, state and foreign securities laws. 
  
 (vi) Registration. To the extent the issuance to any Permitted
Transferee of any shares of Stock issuable pursuant to Awards transferred as permitted in this Section 10(a) is not registered pursuant to the effective registration statement of the Company generally covering the shares to be issued pursuant to
this Plan to initial holders of Awards, the Company shall not have any obligation to register the issuance of any such shares of Stock to any such transferee. 
  

(b) Taxes. The Company and any Subsidiary is authorized to withhold from any Award granted, or any payment relating to an Award under this Plan,
including from a distribution of Stock, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company
and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Stock or other property and to make cash payments in respect
thereof in satisfaction of a Participant’s tax obligations, either on a mandatory or elective basis in the discretion of the Committee. 
  

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 (c) Changes to this Plan and Awards. The Board may amend, alter, suspend, discontinue or terminate
this Plan or the Committee’s authority to grant Awards under this Plan without the consent of stockholders or Participants, except that any amendment or alteration to this Plan, including any increase in any share limitation, shall be subject
to the approval of the Company’s stockholders not later than the annual meeting next following such Board action if such stockholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated
quotation system on which the Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other such changes to this Plan to stockholders for approval; provided that, without the consent of an affected
Participant, no such Board action may materially and adversely affect the rights of such Participant under any previously granted and outstanding Award. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue or
terminate any Award theretofore granted and any Award agreement relating thereto, except as otherwise provided in this Plan; provided that, without the consent of an affected Participant, no such Committee action may materially and adversely affect
the rights of such Participant under such Award. 
  
 (d)
Limitation on Rights Conferred under Plan. Neither this Plan nor any action taken hereunder shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or
service of the Company or a Subsidiary, (ii) interfering in any way with the right of the Company or a Subsidiary to terminate any Eligible Person’s or Participant’s employment or service at any time, (iii) giving an Eligible Person or
Participant any claim to be granted any Award under this Plan or to be treated uniformly with other Participants and employees, or (iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is
duly issued or transferred shares of Stock in accordance with the terms of an Award. 
  
 (e) Unfunded Status of Awards. This Plan is intended to constitute an “unfunded” plan for certain incentive awards. 
  
 (f) Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor its submission to the
stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable, including incentive arrangements and awards
which do not qualify under section 162(m) of the Code. Nothing contained in this Plan shall be construed to prevent the Company or any Subsidiary from taking any corporate action which is deemed by the Company or such Subsidiary to be appropriate or
in its best interest, whether or not such action would have an adverse effect on this Plan or any Award made under this Plan. No employee, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such
action. 
  
 (g) Payments in the Event of Forfeitures;
Fractional Shares. Unless otherwise determined by the Committee, in the event of a forfeiture of an Award with respect to which a Participant paid cash or other consideration to the Company in exchange for such Award, the Participant shall be
repaid the amount of such cash or other consideration. No fractional shares 
  

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 of Stock shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash,
other Awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
  
 (h) Severability. If any provision of this Plan is held to be illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and the Plan shall be construed and enforced as if the illegal or invalid provision had never been
included herein. If any of the terms or provisions of this Plan or any Award agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Eligible Persons who are subject to section 16(b) of the Exchange Act)
or section 422 of the Code (with respect to Incentive Stock Options), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as
appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3) or section 422 of the Code. With respect to Incentive Stock Options, if this Plan does not contain any provision required to be included herein
under section 422 of the Code, that provision shall be deemed to be incorporated herein with the same force and effect as if that provision had been set out at length herein; provided, further, that, to the extent any Option that is intended to
qualify as an Incentive Stock Option cannot so qualify, that Option (to that extent) shall be deemed an Option not subject to section 422 of the Code for all purposes of the Plan. 
  
 (i) Governing Law. All questions arising with respect to the provisions of the Plan and Awards shall be determined by
application of the laws of the State of Delaware, without giving effect to any conflict of law provisions thereof, except to the extent Delaware law is preempted by federal law. The obligation of the Company to sell and deliver Stock hereunder is
subject to applicable federal and state laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock. 
  
 (j) Conditions to Delivery of Stock. Nothing herein or in any Award granted hereunder or any Award agreement shall
require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable
statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect. At the time of any exercise of an Option or Stock Appreciation Right, or at the time of any grant of a Restricted Stock Award,
the Company may, as a condition precedent to the exercise of such Option or Stock Appreciation Right or vesting of any Restricted Stock Award, require from the Participant (or in the event of his death, his legal representatives, heirs, legatees, or
distributees) such written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such written covenants and agreements, if any, as
to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be necessary to ensure that any disposition by that holder (or in the event of the holder’s death, his legal representatives, heirs, legatees, or
distributees) will not involve a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities
association, as then in effect. No Option or Stock Appreciation Right shall be exercisable and no restriction on any Restricted Stock 
  

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 Award shall lapse with respect to a Participant unless and until the holder thereof shall have paid cash or property to,
or performed services for, the Company or any of its Subsidiaries that the Committee believes is equal to or greater in value than the par value of the Stock subject to such Award. 
  
 (k) Plan Effective Date and Stockholder Approval. This Plan has been adopted by the Board and by the stockholders of
the Company effective as of the date immediately prior to a firm commitment underwritten public offering of Stock for cash. 
  

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 EXECUTED this              day of
                    , 2005. 
  

			
	 REPUBLIC COMPANIES GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 - 26 -

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