Document:

Form of Restricted Stock Award dated 4/26/06

    EQUITY
      INCENTIVE PLAN

    

    RESTRICTED
      STOCK AWARD

    DATED
      APRIL 26, 2006

    

    

    Harleysville
      Group Inc. (“Company”), acting by and through the Board of Directors and the
      Compensation & Personnel Development Committee of the Board of Directors
      (Committee”), makes an award of restricted stock to __________, President &
CEO of the Company, ("Employee") pursuant to the Harleysville Group Inc. Equity
      Incentive Plan ("Plan") (the terms of which are hereby incorporated by reference
      and a made a part of this Award), in order to effectuate the purposes of the
      Plan. All capitalized terms shall have the meaning set forth in the Plan unless
      set forth herein.

    

    
      	
              1.

            	
              AWARD
                OF RESTRICTED STOCK.
                Employee is hereby awarded _______ shares of common stock of the
                Company,
                subject to restrictions upon transfer and possibility of forfeiture
                (the
                “Restrictions”), as described in the Plan and
                herein.

            

    

    

    
      	
              2.

            	
              RESTRICTION
                PERIOD.
                

               

            

    

    
      	(a)  	
              The
                Restrictions shall lapse on April 26, 2011 (the “Vesting Date”) if (1) the
                Employee remains continuously employed with the Company until the
                Vesting
                Date and (2) the Performance Goal set forth in paragraph 3 has been
                accomplished. 

            

    

    

    
      	(b)  	
              The
                Restrictions shall lapse upon the occurrence, prior to the Vesting
                Date,
                of the Employee’s death, Disability or Normal Retirement, in each case if
                the Performance Goal set forth in paragraph 3 is satisfied as of
                the date
                of the Employee’s death, Disability or Normal Retirement, as the case may
                be and, in the case of the Employee’s Normal Retirement, the Employee’s
                Normal Retirement is on or before the first March 1 following his
                attainment of age 65.

            

    

    

    
      	(c)  	
              Unless
                the Committee decides otherwise in its sole discretion and informs
                the
                Employee of such decision within two (2) weeks following the Employee’s
                termination of employment, the Restrictions shall lapse if the Employee
                voluntarily terminates employment as an Early Retirement before the
                Vesting Date, the date of such termination of employment is any date
                in
                January or February and the Performance Goal set forth in paragraph
                3 is
                satisfied; provided, however, that the Committee’s discretion not to allow
                the Restrictions to lapse shall not apply to that portion of the
                Shares
                represented by a fraction, the numerator of which is the number of
                full
                months that have elapsed between the date of this award and the Employee’s
                termination of employment, and the denominator of which is
                60.

            

    

    

    
      	
              3.

               

               

            	
              PERFORMANCE
                GOAL.
                The Performance Goal shall be the Company’s attainment of an Adjusted
                Operating Profit for the Performance Period. Adjusted Operating Profit
                shall mean the Company’s operating income for the Performance Period,
                excluding ISO-numbered catastrophes and including a normalized catastrophe
                load, which is based on the 15 year average catastrophe load by line
                of
                business for the period beginning 15 years before January 1, 1991
                and
                ending December 31, 2005, exceeds zero. The average catastrophe load
                will
                be applied by line of business based on the line of business mix
                over the
                Performance Period. 

            

    

    

    
      	
              4.  

            	
              PERFORMANCE
                PERIOD.
                The Performance Period shall mean the period that begins on January
                1,
                2006 and ends on the earlier of December 31, 2010 or December 31
                of the
                calendar year preceding the Employee’s termination of employment.
                

            

    

     

    
      	
              5.

            	
              FORFEITURE
                OF SHARES.
                If Employee terminates employment for any reason prior to the Vesting
                Date, then that portion of the Shares for which the Restrictions
                do not
                lapse as a result of the termination of employment and that portion
                of the
                Shares for which the Restrictions do not lapse as a result of the
                Committee’s exercise of discretion under paragraph 2(c) shall be forfeited
                and immediately revert to the Company. If
                the restrictions do not lapse on the Vesting Date because the performance
                goal has not been accomplished, the Shares will be forfeited and
                immediately revert to the Company.

            

    

     

    6.     RESTRICTION
      UPON TRANSFER.
      Until
      the Restrictions lapse under paragraph 2, the Shares and the right to vote
      the
      Shares and to receive dividends thereon may not be sold, assigned, transferred,
      exchanged, pledged, hypothecated, or otherwise encumbered, except as herein
      provided. Notwithstanding the foregoing and except as otherwise provided in
      the
      Plan, the Employee shall have all the other rights of a stockholder including,
      but not limited to, the right to receive dividends and the right to vote such
      shares.

    

    
      	
              7.

            	
              CERTIFICATES.
                Each certificate issued in respect of shares awarded to a participant
                shall be deposited with the Company or its designee and shall bear
                the
                following legend:

            

    

    

    
      	 	 	
              This
                certificate and the shares of stock represented hereby are subject
                to the
                terms and condi-tions (including forfeiture provisions and restrictions
                against transfer) contained in the Harleysville Group Inc. Equity
                Incentive Plan and an Agreement entered into between the registered
                owner
                and Harleysville Group Inc. Release from such terms and conditions
                shall
                be obtained only in accordance with the provisions of the Plan and
                Agreement, a copy of each of which is on file in the office of the
                Secretary of Harleysville Group
                Inc.

            

    

    

    
      	
              8.

            	
              LAPSE
                OF RESTRICTIONS.
                Upon the lapse of such restrictions, certificates for Shares free
                of the
                restrictive legend shall be delivered to the Employee. Prior to the
                issuance of such certificates, the Employee shall be required to
                make full
                payment to the Company of all amounts, which, under federal, state
                or
                local law, the Company is required to withhold.

            

    

    

    
      	
              9.

            	
              CHANGE
                IN CONTROL.
                In the event of a Change in Control, notwithstanding any other restrictive
                provisions in this Award or in the Plan, all Shares shall be issued
                free
                of restrictive legend, within 90 days following the date of occurrence
                of
                such Change in Control regardless of whether the applicable Restriction
                period has expired or whether Performance Goals have been met.
                

            

    

    

    I
      hereby
      certify that the foregoing Award on the foregoing terms and conditions has
      been
      authorized by the Board of Directors and the Compensation & Personnel
      Development Committee of the Board of Directors of Harleysville Group
      Inc.

    

    
      	 	 	 
	 	HARLEYSVILLE
              GROUP INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
                

                Robert A. Kauffman

              Senior
                Vice President, Secretary

              &
                General Counsel

               

            
	 	 

    

    
 

    I
      acknowledge receipt of a copy of this Award and have read, understand and accept
      its terms and conditions. 

    

     

    ____________________________________

    EmployeeForm of Restricted STock Award (reporting persons) dated 4/26/06

    EQUITY
      INCENTIVE PLAN

    

    RESTRICTED
      STOCK AWARD

    DATED
      APRIL 26, 2006

    

    

    Harleysville
      Group Inc. (“Company”), acting by and through the Board of Directors and the
      Compensation & Personnel Development Committee of the Board of Directors
      (Committee”), makes an award of restricted stock to ___________________
      ("Employee") pursuant to the Harleysville Group Inc. Equity Incentive Plan
      ("Plan") (the terms of which are hereby incorporated by reference and a made
      a
      part of this Award), in order to effectuate the purposes of the Plan. All
      capitalized terms shall have the meaning set forth in the Plan unless set forth
      herein.

    

    
      	
              1.

            	
              AWARD
                OF RESTRICTED STOCK.
                Employee is hereby awarded ___ shares of common stock of the Company,
                subject to restrictions upon transfer and possibility of forfeiture
                (the
                “Restrictions”), as described in the Plan and
                herein.

            

    

    

    
      	
              2.

            	
              RESTRICTION
                PERIOD.
                

               

            

    

    
      	
              (a)  

            	
              The
                Restrictions shall lapse on April 26, 2011 (the “Vesting Date”) if the
                Employee remains continuously employed with the Company until the
                Vesting
                Date. 

            

    

    

    
      	(b)  	
              Restrictions
                shall lapse upon the occurrence, prior to the Vesting Date, of the
                Employee’s death, Disability or Normal
                Retirement.

            

    

    

    
      	(c)  	
              Unless
                the Committee decides otherwise in its sole discretion and informs
                the
                Employee of such decision within two (2) weeks following the Employee’s
                termination of employment, the Restrictions shall lapse if the Employee
                voluntarily terminates employment as an Early Retirement before the
                Vesting Date; provided, however, that the Committee’s discretion not to
                allow the Restrictions to lapse shall not apply to that portion of
                the
                Shares represented by a fraction, the numerator of which is the number
                of
                full months that have elapsed between the date of this award and
                the
                Employee’s termination of employment, and the denominator of which is
                60.

            

    

    

    
      	
              3.

            	
              FORFEITURE
                OF SHARES.
                If Employee terminates employment for any reason prior to the Vesting
                Date, then that portion of the Shares for which the Restrictions
                do not
                lapse as a result of the termination of employment and that portion
                of the
                Shares for which the Restrictions do not lapse as a result of the
                Committee’s exercise of discretion under paragraph 2(c) shall be forfeited
                and immediately revert to the
                Company.

            

    

     

     
      4.      RESTRICTION
      UPON
      TRANSFER.
      Until
      the Restrictions lapse under paragraph 2, the Shares and the right to vote
      the
      Shares and to receive dividends thereon may not be sold, assigned, transferred,
      exchanged, pledged, hypothecated, or otherwise encumbered, except as herein
      provided. Notwithstanding the foregoing and except as otherwise provided in
      the
      Plan, the Employee shall have all the other rights of a stockholder including,
      but not limited to, the right to receive dividends and the right to vote such
      shares.

    

    
      	
              5.

            	
              CERTIFICATES.
                Each certificate issued in respect of shares awarded to a participant
                shall be deposited with the Company or its designee and shall bear
                the
                following legend:

            

    

    

    
      	 	 	
              This
                certificate and the shares of stock represented hereby are subject
                to the
                terms and condi-tions (including forfeiture provisions and restrictions
                against transfer) contained in the Harleysville Group Inc. Equity
                Incentive Plan and an Agreement entered into between the registered
                owner
                and Harleysville Group Inc. Release from such terms and conditions
                shall
                be obtained only in accordance with the provisions of the Plan and
                Agreement, a copy of each of which is on file in the office of the
                Secretary of Harleysville Group
                Inc.

            

    

    

    
      	
              6.

            	
              LAPSE
                OF RESTRICTIONS.
                Upon the lapse of such restrictions, certificates for Shares free
                of the
                restrictive legend shall be delivered to the Employee. Prior to the
                issuance of such certificates, the Employee shall be required to
                make full
                payment to the Company of all amounts, which, under federal, state
                or
                local law, the Company is required to withhold.

            

    

    

    
      	
              7.

            	
              CHANGE
                IN CONTROL.
                In the event of a Change in Control, notwithstanding any other restrictive
                provisions in this Award or in the Plan, all Shares shall be issued
                free
                of restrictive legend, within 90 days following the date of occurrence
                of
                such Change in Control regardless of whether the applicable Restriction
                period has expired. 

            

    

    

    I
      hereby
      certify that the foregoing Award on the foregoing terms and conditions has
      been
      authorized by the Board of Directors and the Compensation & Personnel
      Development Committee of the Board of Directors of Harleysville Group
      Inc.

    

    

    
      	 	 	 
	 	HARLEYSVILLE GROUP INC.
	 
 	 
 	 
 
	Date: 	By:  	 
	 	
              
                

                Robert A. Kauffman

              Senior Vice President, Secretary 

              & General Counsel

            
	 	 

    

     

     

    I
      acknowledge receipt of a copy of this Award and have read, understand and accept
      its terms and conditions. 

     

     

    __________________________________

    Employee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]