Document:

Network Intelligence Corporation 2002 Amended and Restated Stock Option Plan

 EXHIBIT 4.7 
 NETWORK INTELLIGENCE CORPORATION 
 2002 AMENDED AND RESTATED STOCK OPTION PLAN 
 1. Purpose of the Plan. 
 This Network
Intelligence Corporation Stock Option Plan (the “Plan”) is intended to provide incentives: (a) to the employees of Network Intelligence Corporation (the “Corporation”) and any present or future subsidiaries of the
Corporation by providing them with the opportunities to purchase stock in the Corporation pursuant to options granted hereunder which qualify as “incentive stock options” under Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”) (“ISO” or “ISOs”); (b) to officers, employees, consultants and directors of the Corporation and any present or future subsidiaries by providing them with opportunities to purchase stock in the
Corporation pursuant to options granted hereunder which do not qualify as ISOs (“Non-Qualified Option” or “Non-Qualified Options”); and (c) to officers, employees, consultants and directors of the Corporation and any present
or future subsidiaries of the Corporation pursuant to stock awards. As used herein, the terms “parent” and “subsidiary” mean “parent Corporation” and “subsidiary Corporation,” respectively, as those terms are
defined in Section 424 of the Code and the Treasury Regulations promulgated thereunder (the “Regulations”). 
 2. Stock
Subject to the Plan. 
 (a) The total number of shares of common stock, no par value per share, of the Corporation (“Common
Stock”) available for stock options and stock awards granted under the Plan shall be 7,137,271 shares of Common Stock. The maximum number of shares of Common Stock available for grants or awards under this Plan shall be subject to adjustment in
accordance with Section 13 hereof. Shares issued under the Plan may be authorized but unissued shares of Common Stock or shares of Common Stock held in treasury. 
 (b) To the extent that any stock option shall lapse, terminate, expire or otherwise be cancelled without the issuance of shares of Common Stock, or any stock award is settled in cash, the shares of Common Stock
covered by such option(s) or award(s) shall again be available for the granting of stock options or awards. 
 (c) Common Stock issuable
under the Plan may be subject to such restrictions on transfer, repurchase rights or other restrictions as shall be determined by the Committee (as defined in Section 3 below). 
 3. Administration of the Plan. 
 (a)
At the discretion of the Corporation’s Board of Directors, the Plan shall be administered either (i) by the full Board of Directors of the Corporation or (ii) by a committee (the “Committee”) consisting of two or more
members of the Corporation’s Board of Directors. In the event the full Board of Directors is the administrator of the Plan, references herein to the 

 Committee shall be deemed to include the full Board of Directors. The Board of Directors may from time to time appoint a
member or members of the Committee in substitution for or in addition to the member or members then in office and may fill vacancies on the Committee however caused. The Committee shall choose one of its members as Chairman and shall hold meetings
at such times and places as it shall deem advisable. A majority of the members of the Committee shall constitute a quorum and any action may be taken by a majority of those present and voting at any meeting. 
 (b) Any action may also be taken without the necessity of a meeting by a written instrument signed by a majority of the Committee. The decision of the
Committee as to all questions of interpretation and application of the Plan shall be final, binding and conclusive on all persons. The Committee shall have the authority to adopt, amend and rescind such rules and regulations as, in its opinion, may
be advisable in the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any option agreement granted hereunder in the manner and to the extent it shall deem
expedient to carry the Plan into effect and shall be the sole and final judge of such expediency. No Committee member shall be liable for any action or determination made in good faith. 
 (c) Subject to the terms of the Plan, the Committee shall have the authority to (i) determine the employees of the Corporation and its subsidiaries
(from among the class of employees eligible under Section 6 to receive ISOs) to whom ISOs may be granted, and to determine (from the class of individuals eligible under Section 6 to receive Non-Qualified Options) to whom Non-Qualified
Options may be granted; (ii) determine the time or times at which options may be granted; (iii) determine the option price of shares subject to each option which price shall not be less than the minimum price specified in Section 8;
(iv) determine whether each option granted shall be an ISO or a Non-Qualified Option; (v) determine (subject to Section 11) the time or times when each option shall become exercisable and the duration of the exercise period;
(vi) determine whether restrictions such as repurchase options are to be imposed on shares subject to options and the nature of such restrictions; and (vii) determine the size of any Options under the Plan, taking into account the position
or office of the optionee with the Corporation, the job performance of the optionee and such other factors as the Committee may deem relevant in the good faith exercise of its independent business judgment. Subject to the provisions of
Section 3, the Committee shall also have the authority to grant stock awards under this Plan. 
 4. Restricted Stock Awards.

 (a) A Restricted Stock Award is an award pursuant to which the Corporation may, in its sole discretion, grant or sell, at such purchase
price as determined by the Committee, in its sole discretion, shares of Common Stock subject to such restrictions and conditions as the Committee may determine at the time of grant (“Restricted Stock”), which purchase price shall be
payable in cash or other form of consideration acceptable to the Committee. Conditions may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives. The terms and
conditions of each such agreement shall be determined by the Committee, and such terms and conditions may differ among individual awards and grantees. 
  

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 (b) Upon execution of a written instrument setting forth the Restricted Stock Award and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained in the written instrument evidencing the Restricted Stock Award. Unless the
Committee shall otherwise determine, certificates evidencing the Restricted Stock shall remain in the possession of the Corporation until such Restricted Stock is vested as provided in subsection (d) below of this Section, and the grantee shall
be required, as a condition of the grant, to deliver to the Corporation a stock power endorsed in blank. 
 (c) Restricted Stock may not be
sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Award agreement. If a grantee’s employment (or other service relationship) with the Corporation and
its subsidiaries terminates under the conditions specified in the relevant instrument relating to the award, or upon such other event or events as may be stated in the instrument evidencing the award, the Corporation or its assigns shall have the
right or shall agree, as may be specified in the relevant instrument, to repurchase some or all of the shares of Stock subject to the award at such purchase price as is set forth in such instrument. 
 (d) The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other
conditions on which Restricted Stock shall become vested, subject to such further rights of the Corporation or its assigns as may be specified in the instrument evidencing the Restricted Stock Award. 
 (e) The Restricted Stock Award agreement may require or permit the immediate payment, waiver, deferral or investment of dividends paid on the Restricted
Stock. 
 5. Unrestricted Stock Awards. 
 (a) The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Committee) an Unrestricted Stock Award to any grantee, pursuant to which such grantee may
receive shares of Common Stock free of any vesting restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold as described in the preceding sentence in respect of past services or other valid
consideration, or in lieu of any cash compensation due to such individual. 
 (b) Upon the request of a grantee and with the consent of the
Committee, each such grantee may, pursuant to an advance written election delivered to the Corporation no later than the date specified by the Committee, receive a portion of the cash compensation otherwise due to such grantee in the form of shares
of Unrestricted Stock either currently or on a deferred basis. 
 (c) The right to receive shares of Unrestricted Stock on a deferred basis
may not be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution. 
  

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 6. Eligibility for Grant of Options. 
 Options designated as ISOs may be granted only to employees of the Corporation or any subsidiary. Non-Qualified Options may be granted to any officer,
employee, consultant or director of the Corporation or of any of its subsidiaries. 
 In determining the eligibility of an individual to be
granted an option, as well as in determining the number of shares to be optioned to any individual, the Committee shall take into account the position and responsibilities of the individual being considered, the nature and value to the Corporation
or its subsidiaries of his or her service and accomplishments, his or her present and potential contribution to the success of the Corporation or its subsidiaries, and such other factors as the Committee may deem relevant. 
 No option designated as an ISO shall be granted to any employee of the Corporation or any subsidiary if such employee owns, immediately prior to the
grant of an option, stock representing more than 10% of the combined voting power of all classes of stock of the Corporation or a parent or subsidiary, unless the purchase price for the stock under such option shall be at least 110% of its fair
market value at the time such option is granted and the option, by its terms, shall not be exercisable more than five years from the date it is granted. In determining the stock ownership under this paragraph, the provisions of Section 424(d)
of the Code shall be controlling. In determining the fair market value under this paragraph, the provisions of Section 8 hereof shall apply. 
 To the extent that the aggregate Fair Market Value (determined at the time the respective ISO is granted) of Common Stock with respect to which ISOs are exercisable for the first time by an individual during any calendar year under all
incentive stock option plans of the Corporation and its parent and subsidiary Corporations exceeds $100,000, such ISOs shall be treated as Options that do not constitute Incentive Stock Options. 
 7. Option Agreement. 
 Each option
shall be evidenced by an option agreement (the “Agreement”) duly executed on behalf of the Corporation and by the optionee to whom such option is granted, which Agreement shall comply with and be subject to the terms and conditions of the
Plan. The Agreement may contain such other terms, provisions and conditions which are not inconsistent with the Plan as may be determined by the Committee. The date of grant of an option shall be as determined by the Committee. More than one option
may be granted to an individual. 
 8. Option Price. 
 The option exercise price or prices of shares of the Corporation’s Common Stock for options designated as Non-Qualified Options shall be determined by the Committee, but in no event shall the option exercise
price of a Non-Qualified Option be less than the par value of such Common Stock at the time the option is granted. The option exercise price or prices of shares of the Corporation’s Common Stock for incentive stock options shall be no less than
the fair market value of such Common Stock at the time the option is granted as determined by the Committee in accordance with Section 422 of the Code and the Regulations promulgated thereunder. 
  

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 9. Manner of Payment; Manner of Exercise. 
 (a) The Agreement may provide for the payment of the exercise price by delivery of cash or a check payable to the order of the Corporation in an amount
equal to the exercise price of such options. With the consent of the Committee, payment may also be made by delivery of a properly executed exercise notice to the Corporation, together with a copy of irrevocable instruments to a broker to deliver
promptly to the Corporation the amount of sale or loan proceeds to pay the exercise price. To facilitate the foregoing, the Corporation may enter into agreements for coordinated procedures with one or more brokerage firms. 
 (b) To the extent that the right to purchase shares under an option has accrued and is in effect, options may be exercised in full at one time or in part
from time to time, by giving written notice, signed by the person or persons exercising the option, to the Corporation, stating the number of shares with respect to which the option is being exercised, accompanied by payment in full for such shares
as provided in subparagraph (a) above. Upon such exercise, delivery of a certificate for paid-up non-assessable shares shall be made at the principal office of the Corporation to the person or persons exercising the option at such time, during
ordinary business hours, not earlier than ten business days from the date of receipt of the notice by the Corporation, as shall be designated in such notice or at such time, place and manner as may be agreed upon by the Corporation and the person or
persons exercising the option. 
 10. Exercise of Options. 
 (a) Each option granted under the Plan shall, subject to the other provisions of this Plan, be exercisable at such time or times and during such period as
shall be set forth in the Agreement. 
 (b) To the extent that an option to purchase shares is not exercised by an optionee when it becomes
initially exercisable, it shall not expire but shall be carried forward and shall be exercisable, on a cumulative basis, until the expiration of the exercise period. 
 11. Term of Options; Exercisability. 
 (a) Term. 
 (1) Each stock option shall expire not more than ten (10) years from the date of the granting thereof (five years in the case of an ISO granted to an
employee owning stock comprising more than 10% of the total combined voting power of all classes of stock of the Corporation or any parent or subsidiary), but shall be subject to earlier termination as herein provided. 
 (2) Except as otherwise provided in this Section 11, an option granted to any employee optionee who ceases to be an employee of the Corporation or
one of its subsidiaries 
  

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 shall terminate on the passage of sixty (60) days after the date such optionee ceases to be an employee of the
Corporation or one of its subsidiaries, or on the date on which the option expires by its terms, whichever occurs first. 
 (3) If such
termination of employment is because of dismissal for cause or because the employee is in breach of any employment agreement, such option will terminate immediately on the date the optionee ceases to be an employee of the Corporation or one of its
subsidiaries. 
 (4) If such termination of employment is because the optionee has become permanently disabled (within the meaning of
Section 22(e)(3) of the Code), such option shall terminate on the last day of the twelfth month from the date such optionee ceases to be an employee, or on the date on which the option expires by its terms, whichever occurs first. 

(5) In the event of the death of any optionee, any option granted to such optionee shall terminate on the last day of the twelfth month from the date
of death, or on the date on which the option expires by its terms, whichever occurs first. 
 (6) Notwithstanding subparagraphs (2), (3),
(4) and (5) above, the Committee shall have the authority to extend the expiration date of any outstanding option in circumstances in which it deems such action to be appropriate, provided that no such extension shall extend the term of an
option beyond the date on which the option would have expired if no termination of the optionee’s employment had occurred. 
 (b)
Exercisability. 
 (1) An option granted to an employee optionee who ceases to be an employee of the Corporation or one of its
subsidiaries shall be exercisable only to the extent that the right to purchase shares under such option has accrued and is in effect on the date such optionee ceases to be an employee of the Corporation or one of its subsidiaries. 
 (2) In the event of the death of any optionee, the option granted to such optionee may be exercised by the estate of such optionee, or by any person or
persons who acquired the right to exercise such option by bequest or inheritance or by reason of the death of such optionee. 
 12.
Transferability. 
 The right of any optionee to exercise any option granted to him or her shall not be assignable or transferable by
such optionee other than by will or the laws of descent and distribution, except that an optionee may transfer options that are not ISOs granted under the Plan to the optionee’s spouse or children or to a trust or partnership for the benefit of
the optionee or the optionee’s spouse or children. ISOs shall be exercisable during the lifetime of such optionee only by the optionee. Any option granted under the Plan shall be null and void and without effect upon the bankruptcy of the
optionee to whom the option is granted, or upon any attempted assignment, whether voluntary or by operation of law, pledge, hypothecation or other disposition, attachment, divorce, trustee process or similar process, whether legal or equitable, upon
such option. 
  

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 13. Adjustment for Recapitalizations, Reorganizations and Other Events. 
 (a) In the event that the outstanding shares of the Common Stock of the Corporation are changed into or exchanged for a different number or kind of shares
or other securities of the Corporation or of another trust or company by reason of any reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, combination of shares, or dividends payable in capital stock,
appropriate adjustment shall be made in the number and kind of shares as to which options and stock awards may be granted under the Plan and as to which outstanding options or awards or portions thereof then unexercised shall be exercisable, to the
end that the proportionate interest of the optionee or award recipient shall be maintained as before the occurrence of such event; such adjustment in outstanding options shall be made without change in the total price applicable to the unexercised
portion of such options and with a corresponding adjustment in the option price per share. 
 (b) Unless otherwise determined by the
Committee in its sole discretion, in the case of any (i) sale or conveyance to another entity of all or substantially all of the property and assets of the Corporation or (ii) Change in Control (as defined below) of the Corporation, the
purchaser(s) of the Corporation’s assets or stock may, in his, her or its discretion, deliver to each optionee the same kind of consideration that is delivered to the stockholders of the Corporation as a result of such sale, conveyance or
Change in Control, or the Committee may cancel all outstanding vested options in exchange for consideration in cash or in kind, which consideration in both cases shall be equal in value to the value of those shares of stock or other securities the
optionee would have received had the option been exercised (to the extent then exercisable) and no disposition of the shares acquired upon such exercise been made prior to such sale, conveyance or Change in Control, less the option price thereof.
Upon receipt of such consideration by the optionee, the portion of the option for which such payment has been made shall immediately terminate and be of no further force and effect. Notwithstanding the foregoing, the unvested portion of such option
or award shall, unless otherwise determined by the Committee in its sole discretion, be assumed by the purchaser(s) of the Corporation’s assets or stock; provided however that the consideration to be received in exchange for such unvested
option or award less the option price thereof shall be placed in escrow and delivered to such optionee at the same time and upon the same terms, including continued employment in the case of ISOs, that such options would have vested. The value of
the stock or other securities the optionee would have received if the option had been exercised shall be determined in good faith by the Committee, and in the case of shares of the Common Stock of the Corporation, in accordance with the provisions
of Section 8 hereof. 
 (c) The Committee shall have the power and right to accelerate the exercisability of any options,
notwithstanding any limitations in this Plan or in the Agreement upon such a sale, conveyance or Change in Control. Upon such acceleration, any options or portion thereof originally designated as incentive stock options that no longer qualify as
incentive stock options under Section 422 of the Code as a result of such acceleration shall be redesignated as non-qualified stock options. To the extent permitted by law, upon such a sale, conveyance or a 
  

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 Change of Control, the Committee may, in its sole discretion, amend any Award Agreement issued under the Plan in such
manner as it deems appropriate, including without limitation, by amendments that advance the dates upon which any or all outstanding awards shall become free of restrictions or shall become issued or payable, or that advance the dates upon which any
or all outstanding awards shall terminate. 
 (d) For purposes of the Plan, a “Change of Control” shall be deemed to have occurred
if any of the following conditions have occurred: (1) the merger or consolidation of the Corporation with another entity where the Corporation is not the surviving entity and where after the merger or consolidation (i) its stockholders
prior to the merger or consolidation hold less than 50% of the voting stock of the surviving entity and (ii) its Directors prior to the merger or consolidation are less than a majority of the Board of the surviving entity; (2) the sale of
all or substantially all of the Corporation’s assets to a third party and subsequent to the transaction (i) its stockholders hold less than 50% of the stock of said third party and (ii) its Directors are less than a majority of the
Board of said third party; or (3) a transaction or series of related transactions, including a merger of the Corporation with another entity where the Corporation is the surviving entity, but excluding any equity financing transactions, whereby
(i) 50% or more of the voting stock of the Corporation after the transaction(s) is owned actually or beneficially by parties who held less than thirty percent (30%) of the voting stock, actually or beneficially, prior to the transaction(s)
and (ii) its Board of Directors after the transaction(s) or within sixty (60) days thereof, is comprised of less than a majority of the Directors serving prior to the transaction(s). For the avoidance of doubt, the occurrence of a Change
of Control shall not be deemed to be a material diminution or reduction in an employee’s duties or responsibilities. 
 (e) Upon
dissolution or liquidation of the Corporation, all options granted under this Plan shall terminate, but each optionee (if at such time in the employ of or otherwise associated with the Corporation or any of its subsidiaries) shall have the right,
immediately prior to such dissolution or liquidation, to exercise his or her option to the extent then exercisable. The Committee shall have the right to accelerate the vesting of any option or award or take such other action with respect thereto as
the Committee shall in its sole discretion determine in the event of any contemplated dissolution or liquidation of the Corporation. 
 (f)
No fraction of a share shall be purchasable or deliverable upon the exercise of any option or stock award, but in the event any adjustment hereunder of the number of shares covered by the option or award shall cause such number to include a fraction
of a share, such fraction shall be adjusted to the nearest smaller whole number of shares. 
  

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 14. No Special Employment Rights. 
 Nothing contained in the Plan or in any option granted under the Plan shall confer upon any option holder any right with respect to the continuation of
his employment by the Corporation (or any subsidiary) or interfere in any way with the right of the Corporation (or any subsidiary), subject to the terms of any separate employment agreement to the contrary, at any time to terminate such employment
or to increase or decrease the compensation of the option holder from the rate in existence at the time of the grant of an option. Whether an authorized leave of absence, or absence in military or government service, shall constitute termination of
employment shall be determined by the Committee at the time. 
 15. Withholding. 
 The Corporation’s obligation to deliver shares upon settlement of an award or upon the exercise of any option granted under the Plan, or to make any
cash payment in connection with an award, and any payments or transfers under Section 13 hereof, shall be subject to the option or award holder’s satisfaction of all applicable Federal, state, local and foreign governmental tax withholding
requirements. Whenever cash is to be paid pursuant to an award under the Plan, the Corporation shall be entitled to deduct therefrom an amount sufficient in its opinion to satisfy all applicable tax withholding requirements related to such payment.
Whenever shares of Common Stock are to be delivered pursuant to an award or the exercise of an option under the Plan, the Corporation shall be entitled to require as a condition of delivery that the option or award holder remit to the Corporation an
amount sufficient in the opinion of the Corporation to satisfy all applicable tax withholding requirements related thereto. In the sole discretion of the Committee (on such terms and conditions as the Committee may impose), the option or award
holder may satisfy the foregoing condition by electing to have the Corporation withhold from delivery shares having a value equal to the amount of tax to be withheld. The Committee shall also have the right to require that shares be withheld from
delivery to satisfy such condition. 
 16. Restrictions on Issue of Shares. 
 (a) Notwithstanding the provisions of Section 9, the Corporation may delay the issuance of shares covered by the exercise of an option and the
delivery of a certificate for such shares until the delivery or distribution of any shares issued under this Plan complies with all applicable laws (including without limitation, the Securities Act of 1933, as amended), and with the applicable rules
of any stock exchange upon which the shares of the Corporation are then listed or traded. 
 (b) It is intended that all exercises of options
shall be effective, and the Corporation shall use its best efforts to bring about compliance with all applicable legal and regulatory requirements within a reasonable time, except that the Corporation shall be under no obligation to qualify shares
or to cause a registration statement or a post-effective amendment to any registration statement to be prepared for the purpose of covering the issue of shares in respect of which any option may be exercised, except as otherwise agreed to by the
Corporation in writing. 
  

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 17. Loans. 
 The Corporation may not make loans to optionees to permit them to exercise options. 
 18. Modification of Outstanding
Options. 
 The Committee may authorize the amendment of any outstanding option with the consent of the optionee when and subject to such
conditions as are deemed to be in the best interests of the Corporation and in accordance with the purposes of this Plan. 
 19. Approval
of Stockholders. 
 The Plan shall be subject to approval by the vote of stockholders holding at least a majority of the voting stock of
the Corporation present, or represented, and entitled to vote at a duly held stockholders’ meeting after the adoption of the Plan by the Board of Directors and shall take effect as of the date of adoption by the Board of Directors upon such
approval. The Committee may grant options under the Plan prior to such approval, but any such option shall become effective as of the date of grant only upon such approval and, accordingly, no such option may be exercisable prior to such approval.

 20. Termination and Amendment. 
 Unless sooner terminated as herein provided, the Plan shall terminate ten (10) years from the date upon which the Plan was duly adopted by the Board of Directors of the Corporation. The Board of Directors may at any time terminate the
Plan or make such modification or amendment thereof as it deems advisable; provided, however, that the Board of Directors may not terminate, modify, or amend the Plan without stockholder approval if such stockholder approval is expressly required by
applicable law. The Committee may terminate, amend or modify any outstanding option without the consent of the option holder, provided, however, that, except as provided in Section 13, without the consent of the optionee, the Committee shall
not change the number of shares subject to an option, nor the exercise price thereof, nor extend the term of such option. 
 21.
Reservation of Stock. 
 The Corporation shall at all times during the term of the Plan reserve and keep available such number of
shares of stock as will be sufficient to satisfy the requirements of the Plan and shall pay all fees and expenses necessarily incurred by the Corporation in connection therewith. 
 22. Notices. 
 Any communication or
notice required or permitted to be given under the Plan shall be in writing, and mailed by registered or certified mail or delivered by hand, if to the Corporation, to its principal place of business, attention: President, and, if to an optionee, to
the address as appearing on the records of the Corporation. 
  

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 23. Purchase for Investment; Rights of Holder on Subsequent Registration. 
 Unless the shares to be issued upon exercise of an option granted under the Plan have been effectively registered under the Securities Act of 1933, as now
in force or hereafter amended, the Corporation shall be under no obligation to issue any shares covered by any option unless the person who exercises such option, in whole or in part, shall give a written representation to the Corporation which is
satisfactory in form and scope to counsel for the Corporation and upon which, in the opinion of such counsel, the Corporation may reasonably rely, that he or she is acquiring the shares issued pursuant to such exercise of the option for his or her
own account as an investment and not with a view to, or for sale in connection with, the distribution of any such shares, and that he or she will make no transfer of the same except in compliance with any rules and regulations in force at the time
of such transfer under the Securities Act of 1933, or any other applicable law, and that if shares are issued without such registration, a legend to this effect may be endorsed upon the securities so issued. In the event that the Corporation shall,
nevertheless, deem it necessary or desirable to register under the Securities Act of 1933 or other applicable statutes any shares with respect to which an option shall have been exercised, or to qualify any such shares for exemption from
registration under the Securities Act of 1933 or other applicable statutes, then the Corporation may take such action and may require from each optionee such information in writing for use in any registration statement, supplementary registration
statement, prospectus, preliminary prospectus or offering circular as is reasonably necessary for such purpose and may require reasonable indemnity to the Corporation and its officers and directors and controlling persons from such holder against
all losses, claims, damages and liabilities arising from such use of the information so furnished and caused by any untrue statement of any material fact therein or caused by the omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances under which they were made. 
 24. Compliance
With Rule 16b-3. 
 It is intended that the provisions of this Plan and any option granted hereunder to a person subject to the reporting
requirements of Section 16(a) of the Securities and Exchange Act of 1934, as amended, shall comply in all respects with the terms and conditions of Rule 16b-3 promulgated under the Exchange Act or any successor provisions thereto. Any agreement
granting options shall contain such provisions as are necessary or appropriate to assure such compliance. To the extent that any provision hereof is found not to be in compliance with such Rule, such provision shall be deemed to be modified so as to
be in compliance with such Rule or, if such modification is not possible, shall be deemed to be null and void, as it relates to a recipient subject to Section 16(a) of the Exchange Act. 
  

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 25. Lock-up Agreement. 
 The optionee will not, for such period following the effective date of the Corporation’s initial distribution of securities in an underwritten public
offering to the general public pursuant to a registration statement filed with the Securities and Exchange Commission as the managing underwriter of such offering shall reasonably request, but in any event not to exceed 180 days, directly or
indirectly, sell, offer to sell or otherwise dispose of the Corporation’s securities other than any securities which are included in such initial public offering. 
 Adopted by the Board of Directors: March 14, 2002 
 Approved by the stockholders: March 14, 2002 
  

 12Amended and Restated Employment Agreement with Parker W. Rush

 EXHIBIT 10.1 
 EXECUTION COPY 
 AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 This Amended and Restated Employment Agreement (the
“Agreement”) is entered into as of September 14, 2006, between Republic Underwriters Insurance Company, a Texas corporation, having its principal place of business at 5525 LBJ FWY, Dallas, Texas 75219 (the “Company”), and
Parker W. Rush, an individual residing at 204 Riviera Drive, McKinney, TX 75070 (the “Employee”). 
 RECITALS

 WHEREAS, on August 4, 2006, the Company’s indirect parent, Republic Companies Group, Inc., a Delaware corporation
(“RCG”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among RCG, Arrow Capital US Inc., a Delaware corporation, Arrow Subsidiary Corporation, a Delaware corporation (“Parent Sub”), and
Delek Group Ltd., a company incorporated under the laws of Israel (“Parent”), pursuant to which, at the Effective Time, Parent Sub will be merged with and into RCG, with RCG continuing as the surviving corporation to the merger, in
accordance with the terms of the Merger Agreement (the “Merger”); 
 WHEREAS, the Company and the Employee previously entered into
an Employment Agreement dated as of August 4, 2006 (the “First Agreement”); 
 WHEREAS, in furtherance of certain
modifications desired by the parties, the First Agreement has been amended and restated as provided herein to provide for a revision to Section 3(d);
 WHEREAS, the Company, RCG, Parent and the Employee each desire to provide for the Employee’s continued employment by the Company following the Effective Time; 
 WHEREAS, this Agreement is conditional upon consummation of the Merger; 
 WHEREAS, the parties desire that this Agreement supersede all prior agreements, whether oral or written, between the parties arising out of or in connection with the Employee’s employment, including but not
limited to the employment agreement entered into as of November 17, 2003, between Republic Underwriters Insurance Company and the Employee (the “Prior Agreement”) and the First Agreement; and 
 WHEREAS, unless specified otherwise, capitalized terms used herein without definition shall have the meanings assigned thereto in the Merger Agreement.

 NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the Employee hereby agree as follows:

 TERMS OF AGREEMENT  
 1. Definitions. 
 (a) The “Board” shall mean the Board of Directors of the Company. 
 (b) The “Effective Date” shall mean the Closing Date of the Merger. 
 (c) The “Employment Period” shall mean the period commencing on the Effective Date and continuing until the fifth year
anniversary of the Effective Date, unless earlier terminated in accordance with the terms of this Agreement. If not earlier terminated, and in the event the Company and the Employee wish to extend this Agreement, this Agreement shall be
automatically extended on a year-to-year basis until such time as a new Agreement is executed or the Agreement is terminated by either party upon ninety (90) days prior written notice. 
 2. Employment Period. The Company hereby agrees to employ the Employee, and the Employee hereby agrees to be employed by the Company, for the
duration of the Employment Period and pursuant to the other terms and conditions provided herein. This Agreement shall terminate at the end of the Employment Period, unless extended as set forth in Section 1(c), or unless earlier terminated
under Section 5 below. In the event that the Merger is not consummated, the terms of this Agreement shall be null, void and of no effect ab initio. 

 3. Terms of Employment. 
 (a) Position and Duties. During the Employment Period, the Employee shall serve as Chief Executive Officer and President. The
Employee shall perform such duties as the Board shall from time to time determine and shall report directly to the Board. In the performance of his duties, the Employee shall comply with the stated policies of the Company. In addition, prior to an
initial public offering of the common shares of RCG the Employee shall be a member of the Board and a member of the board of directors of RCG, and after any such initial public offering, RCG and the Company shall use commercially reasonable efforts
to maintain such director seats for the Employee. 
 (b) Location. The principal place of employment of the Employee
shall be the principal offices of the Company, as determined by the Board, subject to Section 5(f). 
 (c)
Compensation. 
 (i) Base Salary. The Employee’s annual salary (the “Salary”) shall be at the
rate of $350,000 per annum for the duration of the Employee’s employment hereunder, subject to any increase as approved by the Board. The Salary shall be paid in accordance with the Company’s customary payroll practices. 
 (ii) Annual Performance Bonus. The Employee shall be eligible to participate in an annual bonus plan providing for a performance
bonus (“Performance Bonus”) consistent with the bonus opportunities as in effect for the period immediately prior to the consummation of the Merger and subject to such terms, conditions and goals as may be established by the Board
following consultation with the Employee. The Company shall pay such Performance Bonus to the Employee at the same time and in the same manner as similar bonuses are paid to its senior executive officers generally. Except as set forth in
Section 3(c)(viii)(C) below, the Employee shall not be entitled to any such Performance Bonus or other bonus or incentive pay that may be unpaid at the time the Employee’s employment is terminated. 
 (iii) Withholding, etc. The payment of any Salary and bonus to the Employee shall be subject to all applicable withholding and
payroll taxes and such other deductions as may be required under the Company’s employee benefit plans. 
 (iv)
Benefits. In addition to the compensation payable to the Employee as set forth in Sections 3(c)(i) and (ii) above, during the Employment Period the Employee shall be eligible to participate in the Company’s benefit plans and
programs that the Company generally provides to other senior executives of the Company (the “Benefits”). 
 (v)
Vacation. During the Employment Period, the Employee shall be entitled to paid vacation in accordance with the policies and practices applicable on or after the Effective Date to other employees of the Company; provided, that the Employee
shall be entitled to a minimum of four weeks paid vacation each year effective on the Effective Date. 
 (vii)
Expenses. The Company shall pay or reimburse the Employee, in accordance with the Company’s policies, for reasonable expenses incurred or paid by him during the Employment Period in the performance of his services under this Agreement
upon presentation of itemized expense statements and such other supporting information as may be required by the Company. In addition, the Company shall pay or reimburse the Employee in an amount not to exceed $15,000.00 for reasonable legal fees
incurred or paid by him in connection with the negotiation and execution of this Agreement upon production of receipts and/or invoices to the reasonable satisfaction of the Board. 
 (viii) Severance. Upon termination of the Employee’s employment or expiration of the Employment Period the Employee shall be
entitled to the following severance benefits: 
 (A) The Employee shall be promptly paid (1) any earned but unpaid
salary through his date of termination, and (2) all accrued and unused vacation, if any, and shall be promptly reimbursed for any expenses incurred in connection with the business of the Company, for which he would otherwise be entitled to
reimbursement in accordance with Section 3(c)(vii) of this Agreement. 
  

 2 

 (B) The Employee shall receive any benefits that are payable under any benefit plans or
programs based exclusively on the terms and conditions set forth in such plans or programs, except to the extent expressly modified by this Agreement. 
 (C) If the termination of the Employment Period occurs by reason of the Employee’s death, by the Company without Cause (pursuant to Section 5(c)) or due to the Employee’s disability (as defined in
Section 5(b)) or the Company’s non-extension of the Agreement (pursuant to Section 1(c)), or by the Employee for Good Reason pursuant to Section 5(f), the Company shall: 
 (1) continue to pay the Employee an amount equal to his then current Salary, subject to Section 3(c)(viii)(F) below, for a period
eighteen (18) months after the date of such termination (such applicable period, the “Severance Period”); 
 (2) if the termination date occurs after January 1 of any year, but on or before the date of payment of the Performance Bonus in respect of the Company’s performance for the preceding fiscal year (the “Bonus Payment
Date”), the Company shall pay to the Employee the full amount of the Performance Bonus based on the performance goals for such preceding fiscal year, in the amount and at the time set forth in Section 3(c)(ii), above; 
 (3) if the termination date occurs after June 30 of any fiscal year, the Company shall pay to the Employee a prorated portion of the
Performance Bonus, if any, to which the Employee would have been entitled based on the performance goals relating to the fiscal year in which such termination occurs, which Performance Bonus, if any, shall be (I) prorated based on the number of
days in the fiscal year occurring prior to the date of termination divided by the actual number of days in such fiscal year and (II) otherwise calculated and paid following completion of such fiscal year in the amount, if any, and at the time set
forth in Section 3(c)(ii), above, and 
 (4) pay the Employee’s applicable COBRA coverage premiums for the Employee
and his dependents for the Severance Period. 
 Sums paid to the Employee pursuant to this Section 3(c)(viii) are referred to herein as
the “Severance Payment” and will be made minus applicable taxes and withholdings, and are contingent upon the Employee’s (or, in the case of the Employee’s death, the Employee’s legal representative’s) executing (and
not revoking such signature) a Release Agreement that is reasonable in content (including a mutual non-disparagement clause) and is in a form mutually agreeable to the parties. None of the Severance Payments shall be considered in calculating
pension or related benefits, if any. 
 (D) After termination of the Employee’s employment, the Company shall have no
severance or other obligations to the Employee as an employee other than those set forth in this Section 3(c)(viii), Section 5(a) and Section 5(b) or as required by applicable law. The Employee waives any rights to receive any other
severance benefits from the Company under any severance plan or arrangement in existence prior to the Effective Date. 
 (E)
The Employee shall be under no obligation to seek other employment and there shall be no offset against any amounts due the Employee under this Agreement on account of any remuneration attributable to any subsequent employment that the Employee may
obtain. 
 (F) In the event the Employee violates his obligations under the agreements referred to in Section 7 of this
Agreement and does not cure such violation within ten (10) business days after receipt by the Employee of written notice from the Company specifying such violation, in addition to any other remedies available to the Company, any amounts due
under Section 3(c)(viii)(C) shall immediately cease to be payable by the Company to the Employee. 
  

 3 

 (d) Equity Incentives. The Employee shall be entitled to participate in the equity
incentive plan of RCG (the “Equity Plan”) as follows: 
 (i) The Employee shall be granted stock options (which, to
the extent permissible under the Internal Revenue Code of 1986, as amended, shall be incentive stock options) with seven (7) year terms to purchase shares of common stock of RCG representing, in the aggregate, 0.85% of the outstanding shares of
common stock of RCG on the Closing Date (the “Options”). The Options will be subject to the plan documentation referred to below and will vest 20% per year commencing with the 1st anniversary of the Closing Date based upon continuous employment through each anniversary date and can be exercised by means of a cashless exercise in the
Employee’s discretion. The strike price of these Options will be as follows based upon a percentage of the fair market value of RCG and its subsidiaries (including the Company) at the Closing Date, which for such purpose shall be the price paid
by Parent per common share of RCG: One fifth of the Options shall constitute Tranche I and have a strike price of 107.5% of fair market value, one fifth of the Options shall constitute Tranche II and have a strike price of 115% of fair market value,
one fifth of the Options shall constitute Tranche III and have a strike price of 120% of fair market value, one fifth of the Options shall constitute Tranche IV and have a strike price of 125% of fair market value, and one fifth of the Options shall
constitute Tranche V and have a strike price of 130% of fair market value. Except for termination for Cause, vested Options will be exercisable for thirty (30) days following termination of employment and any unvested Options will be forfeited.
Upon a termination for Cause, all Options will be forfeited immediately. 
 (ii) In addition, the Employee shall be granted
performance-based restricted shares of 0.5% of the common stock of RCG as of the Closing Date, subject to vesting and the other terms and conditions set forth in the applicable plan documentation referred to below (the “Restricted
Shares”). The Restricted Shares shall be divided into two equal tranches with restrictions on each tranche lapsing as follows: 
 The
first tranche will fully vest on the 2nd anniversary of the Closing Date subject to continuous employment through such date if Return on Average Equity (“ROAE”) measured over Years 1 and 2 is at least 13%. 
 The second tranche will fully vest on the 4th anniversary of the Closing Date subject to continuous employment through such date if ROAE is at least 13%
measured over Years 3 and 4. 
 If ROAE is at least 10% on a measurement date for a tranche, then 75% of the shares in that tranche will
vest. If ROAE is at least 18%, then 125% of the shares in that tranche will vest (i.e. additional vested shares will be granted). There will be linear interpolation for achievement between 10% and 13% and between 13% and 18%. No shares will vest if
ROAE is less than 10%. Any Restricted Shares that do not vest shall be forfeited. 
 Return on Average Equity (ROAE) shall be equal to the
following calculation: 
 Annual Net Income ÷ Weighted Average Shareholders Equity 
 where 
  

	 	(a)	Annual Net Income is determined in accordance with US GAAP calculated on a per share basis (basic), excluding the amortization of the intangible assets associated with the
Merger and, should the transaction close after December 31, 2006, the expenses associated with the acceleration of vesting of employee stock based compensation plans in place at the time of the Merger; and 

  

	 	(b)	Weighted Average Shareholders Equity is determined by the Board based on the Company’s audited financials under US GAAP on a per share basis (fully diluted basis).

 In the event that Parent or any of its affiliates invests in RCG at a lower price per share than the Merger
value, then the Employee will receive additional Restricted Shares in a manner such that he will be in the same economic position as if such investment had been at Merger value; provided, however, that Parent may first obtain an independent
appraiser and if such appraiser determines that there is a decrease in the value of RCG below the Merger value, then notwithstanding the foregoing, 

  

 4 

 
the Employee will not receive additional Restricted Shares. In the event that Parent or any of its affiliates invests in RCG at a lower price per share than
the Merger value in conjunction with a side by side investment with an unrelated third party, then no appraisal shall be performed and the Employee will not receive any additional Restricted Shares; provided, however, if Parent or one of its
affiliates and such third party investor have entered into, or at the time of the new investment contemplate entering into, or have a legally binding commitment to enter into any arrangement or agreement with each other or to co-invest in another
transaction that could reasonably be expected to result in an economic or strategic benefit to Parent or any of its affiliates, then Parent shall obtain an independent appraiser and if such appraiser determines that there has been no decrease in the
value of RCG below the Merger value, then the Employee will receive additional Restricted Shares in a manner such that he will be in the same economic position as if such investment had been at the Merger value. 
 (iii) All Option shares and Restricted Shares shall be subject to a Company call right at Fair Market Value (as defined below) at any time
following termination of employment for any reason other than Cause. For termination for Cause, such call right shall be at the lesser of (A) Fair Market Value or (B) the exercise price in the case of Option shares and the price paid by
Parent per share of common stock on the Closing Date in the case of Restricted Shares. “Fair Market Value” shall be determined by the board of directors of RCG based on an independent appraisal. If after five (5) years from the
Closing Date, RCG is not then public, the Employee will have the right to sell vested Restricted Shares and exercised Option shares to the Company based on the appraisal of an appraiser mutually selected by the Company and the Employee; provided
that either party may request a second appraisal by an appraiser mutually agreed upon, in which case the average of the two appraisals shall be the sale price (the “Non-IPO Put Right”). In addition, upon a termination of employment without
Cause or for Good Reason, the Employee will have the right to sell vested Restricted Shares and exercised Option shares to the Company based, at the election of the Employee, on the most recent appraisal value (other than the appraisal performed by
Keefe, Bruyette & Woods in connection with the Merger) or the appraisal of an appraiser selected by the Company, which appraisal will take place within fifteen (15) months following the Employee’s termination of employment (the
“Termination of Employment Put Right”). 
 (iv) If the Employee reinvests an amount equal to fifty
(50%) percent of his after-tax proceeds (calculated using an assumed tax rate of 25%) from the Merger consideration received from the sale of his restricted stock and cash-out of stock options (including for this purpose pre-Closing Date stock
options continued with the Company) in common stock of the Company (the “Reinvestment Equity”), then the grant of Options will be increased by twenty (20%) percent. If Employee reinvests less than 50%, the increase in the amount of
grant shall be adjusted proportionately (e.g., a 25% reinvestment will result in a 10% increase in Options). 
 (v) The
Reinvestment Equity shall be subject to the Non-IPO Put Right and, upon the Employee’s termination of employment for any reason, the Termination of Employment Put Right. The Reinvestment Equity shall be subject to a Company call right at any
time following termination of employment at Fair Market Value as defined above in Section 3(d)(iii). 
 (vi) The
Employee’s right to sell shares to the Company and the Company’s right to purchase shares from the Employee shall expire upon an initial public offering of RCG’s common stock in which the Employee’s shares are registered.

 (vii) The Options and the Restricted Shares will be subject to the governing Equity Plan and ancillary documentation,
including award agreements and investor documents which will reflect the terms and conditions set forth in this Section 3(d). The Company will use reasonable efforts to finalize and implement those documents as expeditiously as possible.

 4. Employee’s Obligations and Representations. 
 (a) During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee
agrees to devote substantially all of his attention and time to the business and affairs of the Company and to professionally perform his duties hereunder and the responsibilities assigned to the Employee by the Board. 
  

 5 

 (b) The Employee represents and warrants to the Company that there are no agreements or
arrangements, whether written or oral, in effect which would prohibit or impair the Employee from rendering the services required of him hereunder to the Company during the Employment Period. The Employee further represents, warrants and agrees with
the Company that as of the Effective Date he has not made and will not make during the Employment Period any commitment or do any act in conflict with this Agreement, or take any action adverse to the Company that might divert from the Company any
opportunity which would be in the scope of any present or future business of the Company or any subsidiary thereof. 
 5. Termination.

 (a) Death. This Agreement shall terminate automatically upon the Employee’s death. If the Employee’s
employment is terminated by reason of the Employee’s death, the Company shall have no further obligations to the Employee’s legal representatives, spouse or estate under this Agreement except as provided in Section 3(c)(viii) and
other than the Severance Payment obligations, if any, accrued as of the date of his death and the Employee’s rights under Section 3(d)(iii) and 3(d)(v) of this Agreement. 
 (b) Disability. If the Board determines in good faith that the Employee has a “disability” (as defined below), it may
give the Employee written notice of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Company shall terminate effective on the 30th day after receipt by the Employee of such notice. For
purposes of this Agreement, “disability” shall mean a physical or mental condition which, five (5) months after its commencement, is determined by a physician selected by the Company to be a total and permanent condition which
substantially prevents the Employee from performing the services to be provided by him hereunder. The Employee shall be entitled to all compensation and benefits provided for under this Agreement during the five (5) month waiting period for the
disability determination and during the 30-day notice of termination period, less any amounts paid to the Employee pursuant to any Company-provided disability insurance policies and to the Severance Payment obligations, if any, accrued on the date
of termination and thereafter, except as provided in Section 3(c)(viii), the Company shall have no further obligations to the Employee. 
 (c) Cause. During the Employment Period, the Company may terminate the Employee’s employment for Cause, as determined by the Board and as defined below. For purposes of this Agreement, “Cause”
shall mean: 
 (i) an act or acts of fraud, embezzlement or any other act committed by the Employee, as determined by the Board in good faith,
that would constitute a felony under the laws of the State of Texas; 
 (ii) the Employee’s failure or inability to perform the duties or
obligations of this Agreement, including, but not limited to, the obligations and representations of Sections 3(a) and 4, or to comply with the policies or directives of the Company applicable to its employees or senior executive generally, in each
case, as determined by the Board in good faith, if such failure or inability remains uncured for at least ten (10) days after written notice of such failure or inability has been provided to the Employee; 
 (iii) breach by the Employee of the representations or obligations under Section 4 or 7 hereof or any provision of the confidentiality or
non-competition agreements referred to in Section 7, as determined by the Board in good faith; 
 (iv) the indictment of the Employee of
a crime which constitutes a felony, if the Board reasonably and in good faith determines that such indictment or any conviction thereunder would impair the Employee’s ability to perform his services under this Agreement; 
 (v) willful and gross misconduct by the Employee in the performance of his duties hereunder as determined by the Board in good faith; or 
 (vi) the commission by the Employee of an act (other than good faith exercise of business judgment in the exercise of his responsibilities pursuant to
this Agreement) resulting in material damage to the Company as determined by the Board in good faith. 
 (d) Termination
without Cause. Notwithstanding anything herein to the contrary, the Company shall have the right, at any time by written notice to the Employee to terminate the Employment Period without Cause. 
  

 6 

 (e) Voluntary Resignation without Good Reason. The Employee may terminate the
Employment Period upon ninety (90) days’ prior written notice to the Company, which the Company may in its sole discretion elect to make effective prior to the end of such 90-day period. 
 (f) Voluntary Resignation with Good Reason. During the Employment Period, the Employee may terminate his employment for “Good
Reason” as defined below. For purposes of this Agreement, “Good Reason” shall mean: 
 (i) the diminution of the
Employee’s title and/or duties as set forth in Section 3(a) of this Agreement or any action by the Company, which is not remedied by the Company as set forth below; 
 (ii) any material failure by the Company to comply with any of the provisions of Section 3(c) of this Agreement, which is not remedied by the Company
as set forth below; or 
 (iii) the Company’s requiring the Employee (over the Employee’s objection) to relocate his primary office
to a location more than one hundred (100) miles from the Company’s principal place of business as of the Effective Date (the foregoing shall not apply to travel reasonably required in the performance of the Employee’s
responsibilities). 
 The Employee shall provide the Company thirty (30) days prior written notice of the Employee’s intention to terminate the
Employment Period for Good Reason, stating with specificity the reason for the termination and the provision of this Section 5(f) upon which the Employee relies. The Company shall have twenty-five (25) days to cure or remedy the reason for
the Good Reason termination. In the event that the Company fails to remedy the reason for the Good Reason termination, the termination for Good Reason shall be effective as of the thirtieth day after the date of the written notice to the Company
(unless the Company, in its sole discretion, elects to make such termination effective earlier). 
 6. Indemnification. If the
Employee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and the Company has no reasonable cause to believe that his conduct was unlawful or detrimental to the Company, the
Company shall indemnify and hold harmless the Employee and his heirs and legal representatives from and against any and all claims, losses, liabilities, damages, costs, demands, causes of action (whether legal, equitable, administrative, civil or
criminal), judgments, settlements (subject to the last sentence of Section 6(b)), fines, court costs and other expenses of any kind or nature whatsoever, including, without limitation, attorneys’ fees and disbursements (collectively,
“Losses”), which may be threatened against, incurred or suffered by the Employee or his heirs and legal representatives in connection with, relating to or arising out of the Employee’s performance, duties and responsibilities to, for
or on behalf of, the Company, to the extent set forth herein and as permitted under applicable law. 
 (a) Exceptions.
Notwithstanding anything contained herein or in the bylaws of the Company, the Company shall have no obligation to indemnify the Employee if the Loss incurred by the Employee (i) arises out of an action brought directly by the Company against
the Employee; or (ii) arises out of an action brought by the Employee against the Company; including, but not limited to, any action as a result of the Employee being terminated from employment for any reason. 
 (b) Notification of Claim. Promptly after receipt by the Company of notice of any claim against the Employee pursuant to which the
Employee is entitled to indemnification, the Company shall have the right to assume the defense of such claim, including the employment of counsel of its choice. Although the Employee shall have the right to employ his own counsel, the fees and
expenses of such counsel shall be at the expense of the Employee. The Company shall not be liable for any settlement of any claim or action effected without its written consent. 
 7. Confidentiality and Non-Competition. The Employee agrees to execute (concurrently with the execution of this Agreement), be bound by and comply
with the Confidentiality and Non-Competition agreements in the forms attached hereto as Exhibit A and Exhibit B, respectively. 
 8.
Successors. This Agreement is personal to the Employee and without the prior written consent of the Company shall not be assignable by the Employee. The Company may assign its rights and obligations hereunder, provided that the Company will
require the assignee to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such assignment had taken place. 
  

 7 

 9. Binding Arbitration. In the event that the Company and the Employee cannot agree on an
interpretation of any provision of this Agreement, or in the event that either of the parties fails to fulfill any obligations required by the terms of this Agreement, the Company and the Employee agree to resolve any such dispute through binding
arbitration in Dallas, Texas, under the then-current rules of the American Arbitration Association in the State of Texas. For the purposes of confirming any such award and entering judgment thereon, each party hereby submits to the exclusive
jurisdiction and venue of the State and Federal courts located in Dallas, Texas. The obligations of this Section shall not apply to any dispute arising out of or in connection with Section 7 hereof or the agreements referred to therein.

 10. Miscellaneous. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Each party to this Agreement hereby irrevocably (i) accepts and consents to the exclusive personal
jurisdiction of the courts of Dallas County, Texas or in the U.S. District Court for the Northern District of Texas for the purpose of any suit, action or proceeding arising out of, or relating in any way to, this Agreement or the Company’s
employment of the Employee, (ii) waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding or any judgment entered by any court in respect
thereof brought in such courts and (iii) waives any claim that any suit, action or proceedings brought in such courts has been brought in an inconvenient forum. Each party further agrees that service of process, summons, notice or document by
U.S. registered mail in accordance with this Agreement shall be effective service of process for any action, suit or proceeding brought against a party in any such court. 
 (b) The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
 (c) All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been given if sent by facsimile transmission, delivered by overnight or other carrier service, or
mailed, certified first class mail, postage prepaid, return receipt requested, to the parties hereto at the following addresses: 
 If to the
Company, to: 
 Republic Underwriters Insurance Company. 
 5525 LBJ FWY 
 Dallas, Texas 75219 
 Attention: Board of Directors and General Counsel 
 With copies (which shall not constitute notice) to: 
 Republic Companies Group, Inc.

 c/o Republic Underwriters Insurance Company 
 5525 LBJ FWY 
 Dallas, Texas 75219 
 Attention: Board of Directors 
 If to the Employee, to: 
 Parker W. Rush

 204 Riviera Drive 
 McKinney,
Texas 75070 
 or to such other address as either party shall have furnished to the other in accordance with the foregoing notice provisions. 
 (d) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement. 
 (e) A party’s failure to insist upon strict compliance with any provision hereof shall
not be deemed to be a waiver of such provision or any other provision thereof. All waivers of any provision of this Agreement must be in writing by the party waiving such rights. 
  

 8 

 (f) This Agreement, together with the agreements referred to in Section 7, embodies
the entire agreement between the Company and the Employee and supersedes all prior agreements and understandings, oral or written, with respect to the subject matter hereof, including but not limited to the Prior Agreement and the First Agreement.

 (g) Nothing herein, expressed or implied, is intended or will be construed to confer upon or give to any person, firm,
corporation or legal entity, other than the parties hereto and the Company’s subsidiaries or affiliates, any rights, remedies or other benefits under or by reason of this Agreement. 
 (h) This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, together, shall constitute
one and the same instrument. 
 (i) If any provision of this Agreement conflicts with the stated policies, practices or
procedures of the Company, the provision of this Agreement shall control. 
 IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed and delivered as of the day and year first above written. 
  

			
	REPUBLIC UNDERWRITERS INSURANCE COMPANY
		
	By:	 	 /s/ Martin B. Cummings

	Name:	 	Martin B. Cummings
	Title:	 	Vice President

 EXECUTIVE 
  

			
		 	 /s/ Parker W. Rush

		 	Parker W. Rush

  

 9 

 Exhibit A 
 CONFIDENTIALITY AGREEMENT  
 I, Parker W. Rush, recognize that in the day to day performance of my job duties
while in the employment of Republic Underwriters Insurance Company (hereinafter referred to, collectively with its subsidiaries, parent companies and affiliates and together with its successors and assigns, as the “Company”), it is likely
that I will be given or acquire access to confidential Company records. In consideration of my employment with the Company, I agree as follows: 
 1. During the term of my employment, and after the termination of my employment for any reason: 
 (a) To keep secret and treat as
confidential all information of the Company, whether I have such information in my memory or in writing or their physical form, unless compelled to release such information by law (“Confidential Information”). Confidential Information for
the purposes of this Agreement shall be defined as any and all Company information, in whatever form, that I become aware of during the term of my employment, including, but not limited to, client lists, client files, agent lists, agent files,
software, source code, analytical techniques, databases, confidential financial and/or pricing data, or business strategies. Confidential Information shall not include information generally available to and known by the public or information that is
or becomes available to me on a non-confidential basis from a source other than the Company (or any of its affiliates) or the Company’s stockholders, directors, officers, employees or agents (other than as a result of a breach of any obligation
of confidentiality). 
 (b) To keep secret and treat as confidential all agent, customer, client or prospective client information, and all
other information complied or maintained internally by the Company concerning or relating to agents, customers, clients, or prospective clients. 
 2. I agree, during the term of my employment, to conduct myself at all times for the benefit of the Company and never knowingly take any action inconsistent with the Company’s best interest and to refrain from any action or activity
which may cause or give rise to a conflict of interest with Company business or the business of the Company’s agents, clients, customers or prospective clients. 
 3. I agree that any work done or compiled by me, including, but not limited to, research, analysis, computer programs, customer information, lists, products, procedures or developments, during the term of my
employment shall constitute “WORK MADE FOR HIRE” and any such work shall belong solely to the Company or its assignees, together with any and all copyright, trademark or service mark and patent rights related to or arising from such work,
without further compensation. I agree that immediately upon the request of the Company to execute any and all such assignments and other documents and take and all such actions as the Company may reasonably request in order to vest in the Company
all my rights, titles and interest in any work free and clear of all liens, charges and encumbrances. I hereby grant to the Company the exclusive right to use such work in whatever form the Company chooses, including without limitation, the right to
prepare, publish and distribute derivative works thereunder. 
 4. I agree that after the termination of my employment, for any reason, to
promptly return to the Company any and all documents, whether belonging to the Company, its agents, clients, customers or prospective customers, made or obtained in the course of my employment. 
 5. I understand and agree that this Agreement does not constitute a contract of employment, retention or engagement or obligate the Company to employ,
retain or engage me for any specified period of time, nor shall this Agreement be interpreted in any way to interfere with any right the Company has or any right that I have to terminate my employment at any time, for no reason or for any reason.

 6. I acknowledge that a breach of this Agreement will cause the Company irreparable harm and hereby agree that in the event of such
breach, the Company will be entitled to obtain an injunction against me in addition to any other remedy available. 
 7. I agree that all the
terms of this Agreement are severable, and in the event that any provision of this Agreement shall be held to be invalid or unenforceable, this Agreement shall be read or construed as if such provision were not contained herein. 
 This Agreement, together with the Employment Agreement and the Non-Competition Agreement, each dated the date hereof between me and the Company (the “Concurrent
Agreements”), represents the entire agreement between the parties on the subject, and all prior agreements, whether oral or written, are deemed null and void and superseded in their entirety by the terms of the Concurrent Agreements.

  

 10 

 This Agreement shall be governed and construed in accordance with the laws of the State of Texas. 
  

	
	 /s/ Parker W. Rush

	Parker W. Rush

 Date: September 14, 2006 
  

			
	Witness
		
	Signature:	 	 /s/ Michael E. Ditto

	Printed Name:	 	Michael E. Ditto

 Date: September 14, 2006 
  

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 Exhibit B 
 NON-COMPETITION AGREEMENT  
 In consideration of my employment by Republic Underwriters Insurance Company
(hereinafter referred to, collectively with its subsidiaries, parent companies and affiliates and together with its successors and assigns, as the “Company”), I agree as follows: 
 1. Restrictions. I agree that during the term of my employment and for a period of twelve (12) months following the termination of my employment for any
reason that I shall not directly or indirectly: 
 (a) Persuade or attempt to persuade any customer (including, but not limited to, insurance
agents, policyholders and insureds) or client of the Company which has produced revenue for the Company in the past twelve (12) months to cease doing business with the Company or to reduce the amount of business it does with the Company.

 (b) Persuade or attempt to persuade any potential customer (including, but not limited to, insurance agents, policyholders and insureds) or
client of the Company of which I am aware or which anyone in the Company is actively pursuing as a customer or client for the Company, not to utilize the services of the Company or to utilize the services of another company. 
 (c) Attempt to convert any business the Company has with any existing customer (including, but not limited to, insurance agents, policyholders and
insureds) or client for my own benefit or for the benefit of any other person or company other than the Company. 
 (d) Persuade or attempt to
persuade any employee of the Company to leave the Company’s employ or become employed by any person or company other than the Company. 
 2. Covenant
Not To Compete. I agree that during the period of my employment and ending one (1) year after the termination of my employment for any reason, I shall not, except as a passive investor in publicly held companies: 
 (a) engage in, own or control an interest in or act as principal, director, officer or employee of, or consultant to any firm or corporation directly
engaged in any venture or business competitive with any insurance business conducted by the Company or any affiliate in any geographical market such business is being conducted by the Company or any affiliate (“Competing Business”); or

 (b) assist others in engaging in Competing Business, provided, however, that after the date of my termination, should I desire to become
employed as a consultant or employee of an entity that is in a Competing Business, I shall provide the Company written request for consent to do so, and the Company shall make a reasonable determination, based on the totality of the circumstances,
whether to consent to such employment or consultancy. 
 3. Reasonable and Necessary Restrictions. I acknowledge that during the course of my
employment with the Company I have received or will receive and have had or will have access to confidential information and trade secrets of the Company, including but not limited to confidential and secret business and marketing plans, strategies,
and studies, detailed agent, client and customer lists and information relating to the operations and business requirements of those agents, clients and customers and, accordingly, I am willing to enter into the covenants contained in this Agreement
in order to provide the Company with what I consider to be reasonable protection for its interests. I further acknowledge that the restrictions, prohibitions and other provisions in this Agreement, are reasonable, fair and equitable in scope, terms
and duration, are necessary to protect the legitimate business interests of the Company, and are a material inducement to the Company to employ me. I agree that I will not challenge the enforceability of this Agreement nor will he raise any
equitable defense to its enforcement. 
 4. Injunctive Relief, Integration and Applicable Law. I acknowledge that a breach of this Agreement will
cause the Company irreparable harm and hereby agree that in the event of such breach, the Company will be entitled to obtain an injunction against me in addition to any other remedy available. 
 5. Severability. I agree that all the terms of this Agreement are severable, and in the event that any provision of this Agreement shall be held to be invalid or
unenforceable, this Agreement shall be read or construed as if such provision were not contained herein. 
  

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 6. Employment; Engagement. I understand and agree that this Agreement does not constitute a contract of
employment, retention or engagement or obligate the Company to employ, retain or engage me for any specified period of time, nor shall this Agreement be interpreted in any way to interfere with any right the Company has or any right that I have to
terminate my employment at any time, for no reason or for any reason. 
 7. Entire Agreement. This Agreement, together with the Employment Agreement
and the Confidentiality Agreement, each dated the date hereof between me and the Company (the “Concurrent Agreements”), represents the entire agreement between the parties on the subject, and all prior agreements, whether oral or written,
are deemed null and void and superseded in their entirety by the terms of the Concurrent Agreements. 
 8. Governing Law. This Agreement shall be
governed and construed in accordance with the laws of the State of Texas. 
  

	
	 /s/ Parker W. Rush

	Parker W. Rush

 Date: September 14, 2006 
  

			
	Witness
		
	Signature:	 	 /s/ Michael E. Ditto

	Printed Name:	 	Michael E. Ditto

 Date: September 14, 2006 
  

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