Document:

exv10w9

Exhibit 10.9

PROASSURANCE CORPORATION

INDEMNIFICATION AGREEMENT

     THIS Agreement is made effective as of the 8th day of September, 2010, by and between
ProAssurance Corporation, a Delaware corporation (the “Company”), and _______________
(“Indemnitee”).

Recitals

     WHEREAS, the Company has adopted Bylaws (the “Bylaws”) which provide for the indemnification
of the directors, officers, agents, and employees of the Company in accordance with Section 145 of
the General Corporation Laws of Delaware (the “State Statute”);

     WHEREAS, the State Statute provides that it is not exclusive, and thus contemplates that
contracts may be entered into between the Company and the members of its Board of Directors and
Officers and employees of the Company with respect to the indemnification of such individuals;

     WHEREAS, the terms, cost and availability of directors’ and officers’ liability insurance
(“Liability Insurance”) have raised questions regarding the adequacy and reliability of the
protection afforded to directors and officers thereby; and

     WHEREAS, in order to induce the Indemnitee to continue to perform services on behalf of the
Company, the Company has determined and agreed to enter into this contract with the Indemnitee.

Agreement

     NOW, THEREFORE, in consideration of and for the Indemnitee’s agreement to serve as a director,
officer, employee or agent of the Company, and to render service on behalf of the Company, the
parties agree as follows:

     1. Liability Insurance. The Company, as of the date of this Agreement, has acquired a
Liability Insurance policy. The Company shall use reasonable efforts to maintain Liability
Insurance during the term of this Agreement, but shall not be required to continue to maintain
Liability Insurance if in the sole business judgment of the directors then in office, (i) the
premium cost for such insurance is excessive, (ii) the premium cost for such insurance is not
reasonably related to the amount of coverage provided, of (iii) the coverage provided by such
insurance is so limited by its terms and exclusions or otherwise that sufficient benefit is not
derived therefrom.

     2. Indemnity. The Company agrees to indemnify and reimburse Indemnitee to the full
extent authorized and permitted by the provisions of the Bylaws of the Company and the laws of the
State of Delaware, and by any amendment thereof, authorizing or permitting such indemnification
which is adopted after the date hereof.

 

 

     3. Additional Indemnity.

          (a) Subject only to the exclusions set forth in Section 4 hereof, the Company shall indemnify
and reimburse Indemnitee under any circumstances where Indemnitee was or is a party or is
threatened to be made a party to a threatened, pending, or completed action, suit, or proceeding,
whether civil, criminal, administrative, or investigative and whether formal or informal, including
an action by or in the right of the corporation (a “Proceeding”), by reason of the fact that he or
she is or was a director, officer, employee, or agent of the Company, or is or was serving at the
request of the Company as a director, officer, partner, trustee, employee, or agent of another
foreign or domestic corporation, partnership, joint venture, trust, or other enterprise, whether
for profit or not, against reasonable expenses, including attorneys’ fees, judgments, penalties,
fines, and amounts paid in settlement actually and reasonably incurred by him or her in connection
with the action, suit, or proceeding, if Indemnitee acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the Company or its
shareholders or policyholders, and with respect to a criminal action or proceeding, if Indemnitee
had no reasonable cause to believe his or her conduct was unlawful. The termination of an action,
suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere
or its equivalent, does not, of itself, create a presumption that Indemnitee did not act in good
faith and in a manner which he or she reasonably believed to be in or not opposed to the best
interests of the Company or its shareholders or policyholders, and, with respect to a criminal
action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

          (b) The indemnification provided shall extend to all expenses and circumstances for which
indemnification is permitted under paragraph 3(a) above, that arise:

	 	(i)	 	During the term of this Agreement based upon
the activities of Indemnitee prior to or during the term of this
Agreement; and,
	 
	 	(ii)	 	Subsequent to the term of this Agreement based
upon the activities of Indemnitee prior to or during the term of this
Agreement.

          (c) The term “Company” shall for purposes of this Agreement include ProAssurance Corporation
and its direct and indirect majority-owned subsidiaries.

     4. Limitations on Indemnity. No indemnity pursuant to Section 3 hereof shall be paid
by the Company:

          (a) except to the extent the aggregate of losses to be indemnified hereunder exceed the amount
of such losses for which Indemnitee is indemnified either: pursuant to Section 2 hereof; pursuant
to an Indemnification Agreement with any parent, subsidiary or affiliate of the Company; or,
pursuant to any Liability Insurance purchased and maintained by the Company pursuant to Section 1
hereof;

          (b) in respect to remuneration paid to Indemnitee if it shall be determined by a final
judgment or other final adjudication that such remuneration was in violation of law;

2

 

          (c) on account of any suit in which judgment is rendered against Indemnitee for an accounting
of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to
the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any federal, state, or local statutory law;

          (d) on account of Indemnitee conduct which is finally adjudged to have been knowingly
fraudulent, deliberately dishonest or willful misconduct;

          (e) if indemnification is prohibited by applicable law of the State of Delaware;

          (f) for a claim, issue, or matter in which Indemnitee has been found liable to the Company
unless and only to the extent that the Court of Chancery in Delaware or the court in which the
action or suit was brought has determined upon application that, despite the adjudication of
liability but in view of all circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnification for the expenses which the court considers proper; or

          (g) if a final decision by a court having jurisdiction in the matter shall determine that such
indemnification is not lawful.

     5. Term of Agreement. The original term of this Agreement shall be the twelve month
period commencing on the date of this agreement. This Agreement shall renew for successive one
year terms unless sooner terminated upon termination of Indemnitee’s position as an officer,
director or employee of the Company or upon delivery of written notice of termination by the
Company to the Indemnitee not less than 60 days prior to the date of termination stated in the
notice. Notwithstanding anything in this Agreement to the contrary, the indemnification and
advancement of expenses provided pursuant to this Agreement shall survive the termination of this
Agreement with respect to all actions or inactions occurring or alleged to have occurred prior to
or during the term of this Agreement, and this Agreement shall remain binding upon the Company with
respect to the covered activities of Indemnitee occurring or alleged to have occurred prior to or
during the term of this Agreement.

     6. Notification and Defense of Claim. Promptly after receipt by Indemnitee of notice
of the commencement or threatened commencement of any Proceeding, Indemnitee will, if a claim in
respect thereof is to be made against the Company under this Agreement, notify the Company of the
commencement thereof; but the omission so to notify the Company will not relieve it from any
liability which it may have to Indemnitee otherwise than under this Agreement. With respect to any
such action, Proceeding as to which Indemnitee notifies the Company of the commencement thereof:

          (a) The Company will be entitled to participate therein at its own expense; and

          (b) Except as otherwise provided below, to the extent that it may wish, the Company jointly
with any other indemnifying party similarly notified will be entitled to assume the defense
thereof, with counsel selected by the Company and consented to by Indemnitee, which consent shall
not be unreasonably withheld. After notice from the Company to Indemnitee of its election so to
assume the defense thereof, the Company will not be liable to

3

 

Indemnitee under this Agreement for any legal or other expenses subsequently incurred by
Indemnitee in connection with the defense thereof other than reasonable costs of investigation or
as otherwise provided below. Indemnitee shall have the right to employ his own counsel in such
action, suit or proceeding but the fees and expenses of such counsel incurred after the notice from
the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless
(i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) a conflict of
interest between the Company and Indemnitee exists in the conduct of the defense of such action; or
(iii) the Company shall not in fact have employed counsel to assume the defense of such action, in
each of which cases the reasonable fees and expenses of counsel shall be at the expense of the
Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding
brought by or on behalf of the Company or as to which a conflict of interest exists between the
Company and Indemnitee.

The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid
in settlement of any action or claim effected without its written consent. The Company shall not
settle any action or claim in any manner that would impose any penalty or limitation on Indemnitee
without Indemnitee’s written consent. Neither the Company nor Indemnitee will unreasonably
withhold its consent to any proposed settlement.

     7. Payment of Indemnity. Any indemnification shall be made promptly and in any event
within forty-five (45) days, upon the written request of the director, officer, employee or agent
of the Company, unless a determination is reasonably and promptly made that such director, officer,
employee or agent failed to meet the applicable standard of conduct set forth in Section 1 hereof
or that such director, officer or employee is not entitled to indemnity under Section 3 hereof.
Such determination shall be made (l) by the Board of Directors by a majority vote of a quorum
consisting of disinterested directors, or (2) by a committee of such directors designated by
majority vote of such directors, even though less than a quorum, or (3) if such a quorum is not
obtainable, or, even if obtainable a quorum of disinterested directors so directs, by independent
legal counsel in a written opinion, or (4) by the stockholders. If the request for indemnification
involves a Proceeding that arises from the merger, consolidation, reorganization, liquidation, sale
of all or substantially all of the assets, or other extraordinary transaction of the Company, the
inquiry and resolution thereof required by this Section 7, at the option of the person seeking
indemnification, shall be made by a neutral person mutually acceptable to the Company and the
person seeking indemnification. If no disposition of such claim for indemnification is made within
forty-five (45) days, a favorable determination of entitlement to indemnification shall be deemed
to have been made. The expenses (including attorney’s fees) incurred by the person seeking
indemnification in connection with successfully establishing such person’s right to
indemnification, in whole or in part, shall also be indemnified by the Company.

     8. Expense Advances.

          (a) Except as set forth in subparagraph Section 8(b) below, the Company will, if requested by
Indemnitee, advance, to the fullest extent permitted by law, to Indemnitee (hereinafter an “Expense
Advance”) any and all Expenses (as defined in subparagraph (d) below) actually and reasonably paid
or incurred by Indemnitee in connection with any Proceeding (whether prior to or after its final
disposition). Indemnitee’s right to each Expense Advance will be made without regard to
Indemnitee’s ultimate entitlement to indemnification under the other

4

 

provisions of this Agreement, or under provisions of the Certificate of Incorporation or
Bylaws or otherwise. Each Expense Advance will be unsecured and interest free and will be made by
the Company without regard to Indemnitee’s ability to repay the Expense Advance; provided, however,
that an Expense Advance will be made only upon delivery to the Company of a written affirmation by
Indemnitee of such Indemnitee’s good faith belief that Indemnitee has met the standard of conduct
necessary for indemnification under the Delaware General Corporation Law, and a written undertaking
(hereinafter an “Undertaking”), by or on behalf of Indemnitee, to repay such Expense Advance if it
is ultimately determined, by final decision by a court or arbitrator, as applicable, from which
there is no further right to appeal, that Indemnitee has not met the standard of conduct necessary
for indemnification under the Delaware General Corporation Law, or is not entitled to be
indemnified for such Expenses under the Certificate of Incorporation, Bylaws, the Delaware General
Corporation Law, this Agreement or otherwise. An Expense eligible for an Expense Advance will
include any and all reasonable Expenses incurred pursuing an action to enforce the right of
advancement provided for in this Section 8 including Expenses incurred preparing and forwarding
statements to the Company to support the Expense Advances claimed.

          (b) Indemnitee will not be entitled to any Expense Advance in connection with any of the
matters for which indemnity is excluded pursuant to Section 4.

          (c) An Expense Advance pursuant to Section 8(a) hereof will be made within ten business days
after the receipt by the Company of a written statement or statements from Indemnitee requesting
such Expense Advance (which statement or statements will include, if requested by the Company,
reasonable detail underlying the Expenses for which the Expense Advance is requested), whether such
request is made prior to or after final disposition of such Proceeding. Such request must be
accompanied by all information required by Section 8(a), including but not limited to, the
Undertaking.

          (d) “Expenses” means all attorney’s fees, disbursements and retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding
costs, telephone charges, postage, fax transmission charges, secretarial services, delivery service
fees and all other disbursements or expenses paid or incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in,
or otherwise participating in, a Proceeding, or in connection with seeking indemnification under
this Agreement. Expenses will also include Expenses paid or incurred in connection with any appeal
resulting from any Proceeding, including the premium, security for and other costs relating to any
appeal bond or its equivalent. Expenses, however, will not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

     9. Enforcement.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on the Company hereby in order to induce Indemnitee to serve and/or
continue to serve the Company, and acknowledges that Indemnitee is relying upon this Agreement in
continuing to serve in such capacity.

5

 

          (b) In the event Indemnitee is required to bring any action to enforce rights and/or to
collect moneys due under this Agreement and is successful in such action, Company shall reimburse
Indemnitee for all of Indemnitee’s reasonable fees and expenses in bringing and pursuing such
action.

     10. Separability. Each of the provisions of this Agreement is a separate and distinct
agreement and independent of the others, so that if any provision hereof shall be held to be
invalid or unenforceable under applicable federal or state law or for any other reason, such
invalidity or unenforceability shall not affect the validity or enforceability of the other
provisions hereof.

     11. Governing Law; Binding Effect; Amendment; Notice.

          (a) This Agreement shall be interpreted and enforced in accordance with the laws of the State
of Delaware without effect to its conflict of law provisions, except to the extent that the
provisions of the Sarbanes-Oxley Act of 2002 and other federal laws preempt the applicable state
law to the enforceability or interpretation of this Agreement.

          (b) This Agreement shall be binding upon Indemnitee and upon the Company, its successors and
assigns, and shall inure to the benefit of the Indemnitee, his or her heirs, personal
representatives and assigns and to the benefit of the Company, its successors and assigns.

          (c) No amendment or modification of this Agreement (including any retroactive or prospective
amendment) shall be effective unless in writing signed by both parties hereto. The termination or
cancellation of this Agreement shall not be effective unless terminated in accordance with Section
5 hereof or terminated or cancelled in a writing signed by both parties hereto.

          (d) Any notice required to be given hereunder shall be deemed given when deposited with the
United States Postal Service, postage prepaid, addressed to the person to receive notice at its
address below, or such other address as may have theretofore been specified by such person in a
notice pursuant hereto, or delivered in person to that person (or an executive officer thereof in
the case of the Company).

     12. Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration, in Birmingham, Alabama, in
accordance with the Commercial Arbitration rules of the American Arbitration Association, except
that the arbitrator(s) shall be required to be familiar with the laws of the State of Delaware as
they relate to this Agreement. Judgment upon the award rendered by the Arbitrator(s) may be
entered in any court having jurisdiction thereof.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day
and year first above written.

6

 

	 	 	 	 	 	 	 

	 	 	PROASSURANCE CORPORATION
	 	 	(the “Company”)
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	W. Stancil Starnes	 	 
	 
	 	 	 	 	 	 
	 

	 	Its
	 	Chief Executive Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:	 	 
	 
	 	 	 	 	 	 
	 	 	ProAssurance Corporation

100 Brookwood Place

Birmingham, Alabama 35209

Attn: Corporate Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(“Indemnitee”)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notice:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

7exv10w15

Exhibit 10.15

PROASSURANCE CORPORATION

2011 EMPLOYEE STOCK OWNERSHIP PLAN

     1. Purpose of the Plan. ProAssurance Corporation (the “Company”) has adopted the
ProAssurance 2008 Equity Compensation Plan (the “2008 Equity Plan”) to further corporate
profitability and growth in value of its shares of common stock (“Common Stock”) by offering
proprietary interests in the Company to officers, directors and employees of the Company and its
Subsidiaries (as defined in the 2008 Equity Plan) who will be largely responsible for such growth.
The Board of Directors of the Company has established the Company’s 2010 Employee Stock Ownership
Plan (the “Plan”) under the 2008 Equity Plan to provide employees and directors of the Company and
its subsidiaries an opportunity and an incentive to purchase shares of Common Stock by allowing
them to apply contributions made to the Plan principally in the form of payroll deductions toward
the purchase shares of Common Stock and by granting matching Restricted Stock Units (as defined in
the 2008 Equity Plan) with respect to the shares of Common Stock purchased with contributions to
the Plan (up to a designated amount).

     2. Definitions.

          (a) Reference is made to the definitions set forth in Section 2 of the 2008 Equity Plan, which
are incorporated herein by this reference. Unless otherwise specifically defined in this Plan,
capitalized terms shall have the meanings attributable to them under the 2008 Equity Plan.

          (b) For purposes of this Plan, the following terms shall have the meanings herein set forth:

          (i) “Account” shall mean the bookkeeping accounts established and maintained by the
Committee for each Participant and the Corporation in accordance with Section 8 below.

          (ii) “Agent” shall mean any independent agent appointed by the Committee to assist it
in the administration of the Plan as herein provided. Any reference to the Committee or the
Company shall be deemed to include the Agent to the extent that the Committee has engaged
the Agent to perform the obligations of the Committee or the Company hereunder.

          (iii) “Cash Deposit” shall mean the amount deducted from the pay of a Participant, or
deposited by a Participant in accordance with any other method of deposit approved by the
Committee, in each case for the purpose of purchasing shares of Common Stock under the Plan.

          (iv) “Effective Date” shall mean the effective date of this plan which is January 1,
2011.

          (v) “Executive Officer” shall mean an officer of the Company under the definition of
“officer” in Rule 16a-1(f) of the regulations promulgated by the SEC under the 1934 Act.

 

 

          (vi) “Grant” shall mean a grant of Restricted Stock Unit(s) made by the Company to a
Participant in accordance with the terms of the Plan.

          (vii) “Grant Date” shall mean the date the Grant Unit is issued to a Participant
pursuant to Section 7(a) of this Plan, e.g. the Grant Date is the same date as the Purchase
Date for the matching Participant Share with respect to which the Grant Unit is issued.

          (viii) “Grant Units” shall mean the Restricted Stock Units awarded to a Participant
pursuant to a Grant made to such Participant.

          (ix) “Participant” shall mean an Employee (as defined in the 2008 Equity Plan) or
Director (as defined in the 2008 Equity Plan) who is eligible and has elected to participate
in the Plan in accordance with its terms.

          (x) “Participant Shares” shall mean the shares of Common Stock purchased for the
Account of a Participant with his or her Cash Deposits.

          (xi) “Participating Employer” shall mean the Company and each Subsidiary which the
Committee authorizes to participate in the Plan, which include without limitation those
Subsidiaries specified in Section 17 hereof. Subsidiary is defined under the 2008 Equity
Plan to include all direct and indirect 80% subsidiaries.

          (xii) “Participation Date” shall mean each October 1 occurring on or after the
Effective Date and during the continuance of the Plan; provided, however, that if such date
is not a business day, the Participation Date will be the next business day.

          (xiii) “Participation Period” shall mean each twelve (12) month period commencing on a
Participation Date, except that the initial Participation Period shall be the nine month
period commencing on the Effective Date.

          (xiv) “Plan” shall mean this ProAssurance Corporation 2010 Stock Purchase Plan, as the
same may from time to time be amended.

          (xv) “Purchase Date” shall mean October 3 immediately following the end of each
Participation Period; provided that if such date is not a business day, the Purchase Date
shall be the next business day.

          (xvi) “Restricted Period” shall mean with respect to a Grant Unit the three (3) year
period commencing on the Grant Date of the Grant Unit.

     3. Source of Shares. The Participant Shares purchased under the Plan shall be deemed
to be Other Stock-Based Awards (as defined in the 2008 Equity Plan), and the Grant Units to be
issued in accordance with the Plan shall be deemed to be Restricted Stock Units (as defined in the
2008 Equity Plan). The shares of Common Stock to be purchased and issued with respect to the
foregoing (all of which shall be deemed to be Awards under the 2008 Equity Plan) shall be issued
from the Shares (as defined in the 2008 Equity Plan) reserved and available for issuance under
Section 4(a) of the 2008 Equity Plan. The number of Shares reserved and

2

 

available for issuance under the 2008 Equity Plan shall be reduced by the sum of the number of
Shares delivered to Participants as Participant Shares purchased under the Plan and the number of
Shares delivered to Participants in respect to the Grant Units awarded under the Plan. If any
Grant Unit is cancelled or forfeited for any reason without delivery of Shares, the Shares subject
to such Grant Unit shall thereafter again be available for an Award pursuant to the 2008 Equity
Plan. Whenever Shares are retained or received by the Company in connection with the payment of
Grant Units, only the net number of Shares actually issued to or for the benefit of the Participant
shall be counted against the limit in Section 4(a) of the 2008 Equity Plan and Shares retained or
received by the Company shall be treated in the same manner as Shares subject to canceled or
forfeited awards.

     4. Administration. The Committee (as defined in the 2008 Equity Plan) will be
responsible for the administration of the Plan including, without limitation, the determination of
the eligibility of Employees to participate in the Plan, the collection of Cash Deposits from
Participants, the making of Grants, the purchase of Shares, and the allocation of Shares to the
Accounts of Participants, and the maintenance of Account records. The Committee shall also have
the right to interpret the Plan and its determinations shall be conclusive and binding on all
parties. To assist it in the administration of the Plan, the Committee may appoint one or more
officers, employees or agents of the Company to perform any or all of the functions of the
Committee. To assist it in the administration of the Plan, the Committee may appoint one or more
Agents to perform any or all of the functions of the Company or the Committee. The Company shall
pay the expenses of the Plan, including without limitation, the expenses of the Committee in the
administration of the Plan.

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

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

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

          (c) If a Participant elects to stop making Cash Deposits during a Participation Period, such
Participant must wait until the next Participation Period to reenroll in the Plan. Unless the Cash
Deposits are sooner withdrawn from the Participant’s Cash Subaccount in

3

 

accordance with Section 11(a) hereof, the Cash Deposits in such Participant’s Cash Subaccount
will be applied to the purchase of Participant Shares on the next Purchase Date.

          (d) As a condition to participation in the Plan, the Committee may at any time require each
new and current Participant to establish one or more investment brokerage accounts with the Agent
or if there is no Agent, with a licensed broker dealer selected by the Committee. The Committee
shall have the authority to act on behalf of the Plan and the Participants in establishing the
terms and conditions for maintenance of the brokerage accounts and the execution of transactions in
connection therewith.

     6. Method of Participation.

          (a) An Employee or Director who is or will be eligible to participate in the Plan at the
commencement of a Participation Period may elect to participate in the Plan during such
Participation Period by executing and filing with the Company a written enrollment form (in such
form as may be prescribed by the Committee from time to time) at least thirty (30) days prior to
the commencement of such Participation Period, except that the enrollment for the initial
Participation Period must be completed by January 1, 2011. The enrollment form shall reflect the
dollar amount that such Participant desires to be deducted from his compensation as a Cash Deposit
to the Plan during the Participation Period which amount will be deducted from the Participant’s
compensation each payroll period during such Participation Period; provided that the total Cash
Deposits made by a Participant and used to purchase Participant Shares for his or her Account in
any Participation Period may not exceed $5000; and provided further that the payroll deductions
are subject to a minimum rate of $20.00 per payroll period. The Company shall hold the Cash
Deposits for the benefit of the Participants until applied toward the purchase of Shares pursuant
to Section 6(b) below unless sooner withdrawn as provided in Section 11 hereof. A Participant may
elect to modify or terminate his or her election to make Cash Deposits during a Participation
Period at any time by delivery of written notice to the Company in which event the modification or
termination shall be effective for the payroll period beginning not sooner than the ten (10) days
after delivery of the notice unless a later date is designated by the Participant. In the event a
Participant elects to terminate his or her participation in the Plan, the Participant will not be
eligible to make Cash Deposits to the Plan from the effective date of such termination to beginning
of the next Participation Period.

          (b) On each Purchase Date, the Company will apply Cash Deposits credited to the Accounts of
Participants toward the purchase of Shares in accordance with the following. The purchase price
for each Share shall be the Fair Market Value (as defined in the 2008 Equity Plan) of a Share on
the Purchase Date. The Company shall purchase for each Account the number of whole Shares that can
be purchased using the cash in the Account on the Purchase Date. Any cash not applied toward the
purchase of the Shares shall remain credited to the Account and applied to the purchase of Shares
on the next Purchase Date unless sooner withdrawn by the Participant or refunded to the Participant
at the direction of the Committee. The Shares purchased for the Accounts of Participants shall be
issued in book entry form to such nominee as the Committee may select to hold the Shares for the
account of the Participant; the Company shall credit each Account with the number of Shares
purchased for the Account, and the Shares credited to the Accounts shall be held for the benefit of
the Participants in accordance with Section 12(f) hereof.

4

 

     7. Grants from the Company.

          (a) The Company shall make matching grants of Grant Units with respect to the Shares purchased
for Participants on each Purchase Date on the terms and conditions hereinafter set forth. Grant
Units will be issued as Restricted Stock Units under the 2008 Equity Plan. The Company shall grant
to each Participant one Grant Unit for each Share purchased for the Account of the Participant on
the Purchase Date in accordance with Section 6 hereof. Each Unit shall be equal in value to one
share of Common Stock. Each Grant Unit granted to a Participant will be credited to the Account of
the Participant as of the Grant Date and will be payable to the Participant as herein provided.

          (b) Each Grant Unit shall become fully vested and payable as herein provided three years after
its Grant Date unless the Grant Units become sooner vested and payable in accordance with the terms
of this Plan.

          (c) A Grant Unit allocated to a Participant shall become fully vested and shall not be subject
to forfeiture upon the occurrence of the sooner of the following:

          (i) The Participant has been an Employee of a Participating Employer continuously for a
period of three years from the Grant Date of the Grant Unit; or

          (ii) The Termination (as defined in the 2008 Equity Plan) of the Participant by reason
of (A) the Disability (as defined in the 2008 Equity Plan) of the Participant; or (B) the
death of the Participant; or

          (iii) The Change of Control (as defined in the 2008 Equity Plan) of the Company.

          (d) If not sooner vested under Section 7(c) above, Grant Units allocated to a Participant
shall become partially vested upon the Termination of a Participant in accordance with the
following formula:

          (i) For unvested Grant Units with a Grant Date that is less than twelve (12) months
before the date of Termination, all of such Grant Units shall be cancelled and forfeited and
the rights of the Participant with respect to the cancelled Grant Units shall terminate.

          (ii) For unvested Grant Units with a Grant Date that is twelve (12) months or more
before the date of Termination, the number of Grant Units granted on such Grant Date that
shall become vested will be determined by multiplying the Grant Units granted on the Grant
Date by a fraction in which the numerator is the number of days that the Participant was an
Employee during the three years after the Grant Date and the denominator is 1095 days with
the result to be truncated into whole Grant Units. The Grant Units that do not become
vested hereunder shall be cancelled and all rights of the Participants with respect to such
cancelled Grant Units shall forthwith terminate.

5

 

     8. Accounts. The Committee shall establish and maintain the following Accounts under the Plan. The
Committee and the Company are authorized to use and share information with any Agent engaged to
administer all or part of the Plan.

          (a) All Cash Deposits and shares of Common Stock purchased with the Cash Deposits shall be
reflected in the following accounts to be established and maintained in the name of each
Participant:

          (i) All Cash Deposits shall be credited to the Cash Account maintained for such
Participant until applied to the purchase of Common Stock as provided in Section 6(b) hereof
or withdrawn by the Participant. No interest shall be payable on the Cash Deposits.

          (ii) All shares of Common Stock purchased with funds from the Cash Account of such
Participant shall be credited to the Participant Shares Account maintained for such
Participant until distributed to or withdrawn by the Participant.

          (b) Until fully vested, the number of unvested Grant Units held for each Participant shall be
credited to a Grant Units Account maintained for each Participant.

          (c) The Committee may from time to time establish such other or Substitute Accounts as it
deems appropriate for the administration of the Plan.

          (d) Each Participant shall receive an annual report reflecting the following: (i) the amount
of cash credited to the Participant’s Cash Account; (ii) the number of Participant Shares credited
to the Participant’s Participant Share Account and the Purchase Dates for such Participant Shares;
and (iii) the number of Grant Units credited to the Participant’s Grant Unit Account and the Grant
Dates for such Grant Units. The Committee shall make reasonable effort to ensure that the
Participants who are Executive Officers and Directors of the Company receive the notice within one
(1) business day of the purchase of the Shares, and the grant of Grant Units, allocated to the
Accounts of the Participant.

     9. Payment of Grant Units .

          (a) The Grant Units shall be payable in Shares except that the Committee may provide for
federal and state withholding taxes in accordance with the following. The Committee may, in its
discretion, elect either (i) to withhold such number of Shares as may be necessary to generate
funds to pay federal and state withholding taxes or (ii) to pay the Grant Units partly in Shares
and partly in cash, with the cash portion being approximately equal to the amount of federal, state
and local taxes which the Participant’s employer is required to withhold on account of such
payment. In the event the Committee elects to pay the Grant Units partly in cash, the number of
Shares to be paid with respect to a Grant Unit shall be determined by dividing the Fair Market
Value of a Share on the Vesting date into an amount equal to the Fair Market Value of all vested
Shares payable with respect to the vested Grant Units less the the cash applied to withholding
taxes; provided that any fractional shares resulting from such determination shall be payable in
cash based on the Fair Market Value of a Share on the vesting date.

6

 

          (b) The net Shares payable in respect to vested Grant Units and the Participant Shares
purchased on the Grant Date of such Grant Units shall be delivered to the Participants promptly
after vesting of the Grant Units, but not later than the end of the 2-1/2 Month Period (as defined
in the 2008 Equity Plan). The method of delivery of the Shares shall be in accordance with the
directions of the Committee.

     10. Withdrawal from the Accounts

          (a) A Participant may at any time prior to the Purchase Date withdraw all of the Cash Deposits
then reflected in the Cash Account maintained for such Participant A Participant shall have no
right to withdraw less than all of the cash in the Cash Account at the time of withdrawal.

          (b) A Participant may at any time withdraw the Shares reflected in the Participant Shares
Account maintained for such Participant; provided that the Participant must withdraw not less than
all of the Participant Shares purchased for his or her Account on the same Purchase Date; and
provided further that except that no Executive Officer or Director may withdraw Participant Shares
prior to the expiration six (6) months after the purchase of such Participant Shares with Cash
Deposits made by the Executive Officer or Director.

          (d) In the event that a Participant withdraws his or her Participant Shares, the Shares
subject to withdrawal shall be taken from the Shares that have been credited to the Participant
Shares Account for the longest period of time. The withdrawal of any shares of Common Stock from a
Participant’s Participant Shares Account shall be subject to the provisions of Section 11(b)
hereof.

     11. Forfeiture of Grant Units.

          (a) In the event of the Termination of a Participant, then, unless the Committee shall
otherwise determine in its sole discretion, any Shares subject to Grant Units that that do not
become vested pursuant to Section 7(c) or Section 7(d) hereof shall be forfeited and cancelled as
of the date of Termination.

          (b) In the event that a Participant withdraws Shares from his or her Participant Shares
Account, any unvested Grant Units that were granted on the Purchase Date of the Shares so withdrawn
shall be forfeited and cancelled as of the date of withdrawal.

     12. Beneficial Ownership of the Shares held in the Accounts.

          (a) A Participant will be the beneficial owner of any Participant Shares held for the Account
of the Participant under the Plan. The Corporation shall have no right to sell or withdraw the
shares of Common Stock held in the Participant Shares Accounts.

          (b) The Participants will have the right to direct the Company as to the voting of Participant
Shares held in their respective Participant Shares Accounts and that are entitled to vote at any
meeting of the shareholders of the Corporation and will receive all communications addressed by the
Company to its shareholders.

7

 

          (c) All cash dividends, stock dividends or stock splits paid with respect to Participant
Shares shall be credited to the Participant Shares Account.

          (d) Participants will not be entitled to receive any dividends or dividend equivalents on
Grant Units unless specifically provided for at the time of dividend; shall not have any voting or
other rights of a stockholder of the Company with respect to Grant Units, and shall not have any
interest in or right to receive Shares prior to the time the Committee determines whether the
payment of Grant Units will be made solely in Shares or in Shares and cash in accordance with the
Plan.

          (e) If the Company shall offer any subscription rights to its shareholders, the Committee
shall to the extent it is able provide to each Participant who then has Shares allocated to his or
her Participant Shares Account the right to exercise, sell, or assign, in accordance with the terms
thereof, all subscription rights issued with respect to the shares in his or her Participant Shares
Account and to receive any shares subscribed for free and clear of any restrictions under the Plan.

          (f) Any Shares of Common Stock registered in the name of the Company and held for the
Accounts of Participants shall be held in trust for the Participants as the beneficial owners of
such Shares. The Company shall have no interest in the Shares in the Accounts and shall have no
right to sell or dispose of the Shares other than as expressly provided herein.

     13. Rights not Transferable. No Participant shall be permitted to sell, assign, transfer, pledge, or otherwise dispose of
or encumber either his right to participate in the Plan or his interest in any Shares being held by
the Company for the Account of a Participant prior to the withdrawal or distribution thereof as
herein contemplated. Except as otherwise provided by law, the right and interest of a Participant
under the Plan shall not be liable for or subject to the debts, contracts or liabilities of such
Participant.

     14. Termination or Amendment of Plan. The Company reserves the right to amend, modify, suspend, or terminate the Plan at any
time without notice, provided that no such amendment, modification, suspension, or termination
shall adversely affect, without the Participant’s written consent, any Shares or Grant Units
credited to the Account of the Participant. If at any time the Committee determines that the Plan
or any Awards hereunder may be subject to Code Section 409A, the Committee shall have the right, in
its sole discretion, to amend the Plan or the terms of the Grant Units to be exempt from the
requirements of Code Section 409A or to satisfy the requirements of Code Section 409A, including by
adding conditions with respect to the vesting and/or payment of said Grant Units.

     15. Interpretation. This Plan is subject to the terms, conditions and definitions as
set forth in the 2008 Equity Plan. The Participant Shares and Grant Units are to be construed as
Awards under the 2008 Plan. The Plan and the enrollment form (in such form as may be from time to
time approved by the Committee) shall be deemed to be the Award Notice (as defined in the 2008
Equity Plan) with respect to the Awards (as defined in the 2008 Equity Plan) to Participants
hereunder. Any determination or interpretation by the Committee under or pursuant to this Plan or
the 2008 Equity Plan shall be final and conclusive on all persons affected thereby.

8

 

     16. No Right to Employment. Neither this Plan or any action taken hereunder shall be
construed as giving any person the right to be retained as an Employee.

     17. Transition Provisions. The initial Participating Employers under the Plan are the
Company and each of its Subsidiaries at November 23, 2010. Notwithstanding the provisions of
Section 5(a) hereof, all persons who are Employees or Directors of Participating Employers on
November 23, 2010, shall be eligible to participate in the Plan subject to the limitation set forth
in Section 5(b) hereof.

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}]]