Document:

Form of Amended and Restated Registration Rights Agreement

 Exhibit 10.3 
  

  
 AMENDED AND RESTATED 
 REGISTRATION RIGHTS AGREEMENT 
  
 among 
  
 REPUBLIC COMPANIES GROUP, INC. 
  
 and 
  
 THE INVESTORS PARTY HERETO 
  

  
 Dated as of [August     ], 2005 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.

	 SECTION 1.
	  	Definitions	  	1
			
	 SECTION 2.
	  	Securities Subject to this Agreement	  	3
			
	 SECTION 3.
	  	Demand Registration	  	3
			
	 SECTION 4.
	  	Piggy-Back Registration	  	5
			
	 SECTION 5.
	  	Form S-3 Registration	  	6
			
	 SECTION 6.
	  	Holdback Agreements	  	7
			
	 SECTION 7.
	  	Registration Procedures	  	8
			
	 SECTION 8.
	  	Registration Expenses	  	12
			
	 SECTION 9.
	  	Indemnification; Contribution	  	12
			
	 SECTION 10.
	  	Rules 144 and 144A	  	14
			
	 SECTION 11.
	  	Limitation on Registration Rights of Others	  	15
			
	 SECTION 12.
	  	Miscellaneous	  	16

  

 AMENDED AND RESTATED 
 REGISTRATION RIGHTS AGREEMENT 
  
 THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT is dated as of [August         ], 2005 (this “Agreement”), by and among Republic Companies Group, Inc., a Delaware corporation
formerly known as RTXA, Inc. (the “Company”), and the investors that are or may become party hereto (collectively, the “Investors”). 
  
 Statement of Purpose 
  
 Pursuant to a Registration Rights Agreement, dated as of May 9, 2003 (the “Original Agreement”) among the Company and certain of the Investors,
the Company granted certain registration rights to such Investors. In connection with the anticipated initial public offering of the Common Stock of the Company, the Company and the Investors desire to amend and restate the Original Agreement in its
entirety as set forth herein. 
  
 NOW, THEREFORE, in consideration
of the mutual covenants and agreements contained herein, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 SECTION 1. Definitions. For the purposes of this Agreement, in
addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth below: 
  
 “Approved Underwriter” shall have the meaning assigned thereto in Section 3(d) hereof. 
  
 “Certificate of Incorporation” means the Amended and
Restated Certificate of Incorporation of the Company as amended or restated from time to time. 
  
 “Commission” means the Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the Securities Act. 
  
 “Common Stock” means (a) the Class A Common Stock, par value $0.01 per share, of the Company, as described
in the Certificate of Incorporation and (b) any other capital stock into which such Class A Common Stock is reclassified or reconstituted. 
  
 “Company Underwriter” shall have the meaning assigned thereto in Section 4 hereof. 
  
 “Demand Period” means the period commencing 180 days after
the Initial Public Offering and ending on the date on which the Investors cease to hold, in the aggregate, at least 17% of the outstanding Common Stock of the Company. 
  
 “Demand Registration” means a demand registration requested by the Demanding Holders pursuant to Section 3
hereof. 
  

 “Demanding Holders” means the parties requesting a Demand Registration pursuant to
Section 3(a) hereof. 
  
 “Eligible Investors”
means (a) commencing on the date hereof until the first anniversary of the closing date of the Initial Public Offering, Investors holding at least [43]%, in the aggregate, of the Registrable Securities then outstanding and (b) commencing on the day
after such first anniversary, Investors holding at least 5%, in the aggregate, of the Registrable Securities then outstanding. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Holders’ Counsel” shall have the meaning assigned thereto in Section 7(a)(i) hereof. 
  
 “Initial Public Offering” means the initial public offering
of Common Stock pursuant to an effective registration statement under the Securities Act. 
  
 “Inspector” shall have the meaning assigned thereto in Section 7(a)(viii) hereof. 
  
 “Lockup Period” means the period commencing on the closing date of the Initial Public Offering and ending on the earlier to occur of (a)
the second anniversary thereof and (b) the date on which the Investors cease to hold, in the aggregate, at least 17% of the outstanding Common Stock of the Company. 
  
 “Minimum Offering Threshold” means, for any registration requested pursuant to Section 3 or Section 5, that
the aggregate value of all Registrable Securities requested to be included in such registration, including any Registrable Securities requested to be included pursuant to Section 3(b) or Section 5(a), is at least $30,000,000 (calculated using the
average closing price of the Company’s Common Stock for the ten consecutive trading days immediately preceding the delivery of the initial notice from the Eligible Investors requesting such registration). 
  
 “NASD” means the National Association of Securities Dealers,
Inc. 
  
 “Person” means any individual, firm,
corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind, and shall include any
successor (by merger or otherwise) of such entity. 
  
 “Records” shall have the meaning assigned hereto in Section 7(a)(viii) hereof. 
  
 “Registrable Securities” means (a) all shares of Common Stock now owned or hereafter acquired by any party hereto (including pursuant to
Section 12(f)) or its successors or assigns (i) pursuant to conversion or exercise of securities now owned by any such party that are convertible into Common Stock (including the Company’s preferred stock and Class B Common Stock) or options,
warrants or other rights to subscribe for Common Stock that are now owned by any such party hereto, or (ii) as a distribution in respect of the partnership interests of Republic Co-Investors, 

  

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L.P. or upon any liquidation thereof, and (b) any other common equity securities of the Company issued in exchange for, upon a reclassification of, or in a
distribution with respect to, the foregoing Common Stock. 
  
 “Registration Expenses” shall have the meaning assigned thereto in Section 8. 
  
 “Required Investors” means Investors holding at least a majority of the Registrable Securities. 
  
 “Securities Act” means the Securities Act of 1933, as
amended. 
  
 SECTION 2. Securities Subject to this
Agreement. 
  
 (a) Registrable Securities. For the
purposes of this Agreement, Registrable Securities will cease to be Registrable Securities upon the earlier of (i) a registration statement covering such Registrable Securities having been declared effective under the Securities Act by the
Commission and such Registrable Securities having been disposed of pursuant to such effective registration statement or (ii) the date upon which the entire amount of Registrable Securities held by a particular Investor are, or in the opinion of
counsel reasonably satisfactory to the Company may be, distributed to the public by such Investor in a single sale pursuant to Rule 144 (or any successor provision then in force) under the Securities Act and without restriction under Section 6(a)
below.  
  
 (b) Holders of Registrable Securities. A
Person is deemed to be a holder of Registrable Securities whenever such Person owns of record Registrable Securities, or holds an option, warrant or other right to purchase, or a security convertible into, Registrable Securities, whether or not such
acquisition or conversion has actually been effected; provided, that all shares of Common Stock held by [TRUSTEE] (together with any successor thereto, the “BACI Trustee”) pursuant to the Voting Trust Agreement, dated the date
hereof among the Company, Banc of America Capital Investors SBIC, L.P. (“BACI”) and such BACI Trustee, shall be deemed to be held by BACI and shall be Registrable Securities hereunder. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the same Registrable Securities, the Company may act upon the basis of the instructions, notice or election received from the registered owner of such Registrable Securities. Registrable
Securities issuable upon exercise of an option, warrant or other right or upon conversion of another security shall be deemed outstanding for the purposes of this Agreement. 
  
 SECTION 3. Demand Registration. 
  
 (a) Demand Registration. During the Demand Period, the Eligible Investors may at any time make a written request for
registration of Registrable Securities under the Securities Act, and under the securities or blue sky laws of any jurisdiction reasonably designated by such Investors (collectively, the “Demanding Holders”); provided, that (i) the
Company will not be required to effect any registration pursuant to this Section 3 unless the Minimum Offering Threshold is met; (ii) subject to Section 3(c) below, the Company will not be required to effect more than three registrations at the
request of the Investors pursuant to this Section 3(a), (iii) the 

  

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Company will not be required to effect such registration within the period beginning on the effective date of a registration statement to be filed by the
Company or on its behalf covering a firm commitment underwritten public offering and ending on the expiration of any lock-up period (not to exceed one hundred eighty (180) days following the effective date of such registration statement, subject to
certain limited extensions in accordance with applicable NASD rules and regulations) required by the underwriters, (iv) the Company will not be required to effect any such registration if the Company has effected a registration pursuant to this
Section 3 within the twelve (12) month period immediately prior to such registration request and (v) if the Company shall furnish to such holders a certificate signed by the Chairman of the Board of Directors of the Company stating that in good
faith judgment of the Board of Directors it would be seriously detrimental to the Company or its stockholders for a registration statement to be filed in the near future, then the Company’s obligation pursuant to Section 3(a) hereof to file a
registration statement with the Commission relating to the Registrable Securities as to which such request for a Demand Registration relates shall be deferred for a period not to exceed ninety (90) days from the date of receipt of the written
request; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period. 
  
 (b) Company Obligation to Register. Each request for a Demand Registration pursuant to Section 3(a) shall specify the amount of the Registrable
Securities proposed to be sold, the intended method of disposition thereof and the jurisdictions in which registration is reasonably desired. Subject to the provisions set forth in Section 3(a) hereof, upon the Company’s receipt of the written
request for a Demand Registration, the Company shall (i) promptly and in any event at least thirty (30) days prior to the filing date of the registration statement with respect thereto, give written notice of such request to all other holders of
Registrable Securities and offer such holder the opportunity to register the number of Registrable Securities as such holder may request in writing within twenty (20) days after receipt of such written notice from the Company (which holders shall,
subject to subsection (c) hereof, be entitled to participate in such registration on the same basis as the Demanding Holders by delivery of written notice to the Company within such twenty (20) day period) and (ii) with reasonable promptness and in
any event not later than ninety (90) days after the Company’s receipt of such request, file a registration statement with the Commission relating to such Registrable Securities as to which such request for a Demand Registration relates and use
its best efforts to cause all Registrable Securities that such holders have requested to be registered to be registered under the Securities Act. A registration shall not constitute a Demand Registration until it has become effective and remains
continuously effective for a period of not less than 24 months or such shorter period which will terminate when all Registrable Securities covered by such Registration Statement have been sold (but not before the expiration of the ninety (90) day
period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable). In any registration initiated as a Demand Registration, the Company shall pay all Registration Expenses in connection therewith, whether or not such
Demand Registration becomes effective. 
  
 (c) Underwriting
Procedures. If the Demanding Holders so elect, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of a firm commitment underwritten offering and the managing underwriter or underwriters selected
for such offering shall be the Approved Underwriter selected in accordance with Section 3(d). In such event, 

  

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if the Approved Underwriter advises the Company, which advice shall be confirmed in writing, that in its opinion marketing considerations require a
limitation on the number of securities to be sold, the Company shall include in such registration only the number of Registrable Securities which, in the good faith opinion of such Approved Underwriter, can be sold, allocated among the holders of
Registrable Securities, pro rata, based on the number of Registrable Securities requested to be included by each such holder. 
  
 To the extent more than ten percent (10%) of the Registrable Securities held by a Demanding Holder are excluded from the offering to be made pursuant to
the Demand Registration requested by such Demanding Holder, then such Demanding Holder shall have the right to one additional Demand Registration under this Section 3 with respect to such Registrable Securities. 
  
 (d) Selection of Underwriters. In connection with its requesting a
Demand Registration of Registrable Securities pursuant to Section 3(a), the Demanding Holders may select and obtain an investment banking firm of first class national reputation to act as the managing underwriter of the offering (the “Approved
Underwriter”); provided, that the Approved Underwriter shall, in any case, be acceptable to the Company in its reasonable judgment. The Company and, if so requested by the Approved Underwriter, all Investors proposing to offer their
Registrable Securities through the underwritten offer shall enter into an underwriting agreement in customary form with the Approved Underwriter. 
  
 SECTION 4. Piggy-Back Registration. If the Company files a registration statement under the Securities Act with respect to an offering by the
Company for its own account, or an offering for the account of any stockholder of the Company or any group of such stockholders (other than a registration statement on Form S-4 or S-8 or any successor forms or any other forms not available for
registering capital stock for sale to the public and other than a registration statement filed pursuant to Section 3 hereof), then the Company shall give written notice of such filing to each holder of Registrable Securities not later than five (5)
business days after the filing date thereof, and such notice shall describe in detail the proposed registration and distribution (including whether the offering will be underwritten and those jurisdictions where registration under the securities or
blue sky laws is intended) and offer such holder the opportunity to register the number of Registrable Securities as such holder may request in writing within twenty (20) days after receipt of such written notice from the Company. The Company shall
use its best efforts, within twenty (20) days of the notice from the holder provided for in the preceding sentence, to cause the managing underwriter or underwriters of a proposed underwritten offering (the “Company Underwriter”) to permit
the holders of Registrable Securities who have requested to participate in the registration for such offering to include such Registrable Securities in such offering on the same terms and conditions as the securities of the Company included therein,
including execution of an underwriting agreement in customary form. Notwithstanding the foregoing, if the Company Underwriter delivers a written opinion to the holders of Registrable Securities that marketing considerations require a limitation on
the number of securities to be sold, the Company shall include in such registration (except in connection with a Demand Registration, which priority shall be governed by Section 3) for the account of holders of Registrable Securities only that
number of Registrable Securities which, in the good faith opinion 

  

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of the Company Underwriter, can be sold, allocated pro rata, based on the number of Registrable Securities requested to be included by each
such holder. 
  
 SECTION 5. Form S-3 Registration.

  
 (a) Requests for Registration on Form S-3. After the
Initial Public Offering, the Company shall use its reasonable best efforts to qualify to register securities on Form S-3 (or any successor to such form). After the Company has qualified for the use of Form S-3, in addition to the rights contained in
the foregoing provisions of this Agreement and subject to the limitations set forth in the next sentence, the Eligible Investors shall have the right to request the registration of any such Registrable Securities on Form S-3. All such requests shall
be in writing and shall state the number of shares of Registrable Securities to be disposed of and the intended methods of disposition of such shares by such holder or holders; provided, that the Company shall not be required to effect a
registration pursuant to this Section 5(a) (i) unless the Minimum Offering Threshold is met and (ii) more than once during any twelve (12) month period. If the Company shall receive from the Eligible Investors a written request that the Company
effect a registration on Form S-3 pursuant to this Section 5(a), the Company shall (x) promptly give written notice of the proposed registration to all other holders of Registrable Securities and (y) use its best efforts to effect as quickly as is
reasonably practicable the registration of the Registrable Securities specified in such request, together with the Registrable Securities of any other holder or holders joining in such request as are specified in a written request given within 20
days after receipt of such written notice from the Company. No registration requested or effected pursuant to this Section 5 shall be counted as a Demand Registration for purposes of Section 3. Notwithstanding anything in this Section 5(a) to the
contrary, the Company shall not be obligated to take any action pursuant to this Section 5(a) if the Company shall furnish to such holders a certificate signed by the Chairman of the Board of Directors of the Company stating that in the good faith
judgement of the Board of Directors it would be seriously detrimental to the Company or its stockholders for a registration statement to be filed in the near future, in which case the Company’s obligation to use its best efforts to effect as
quickly as is reasonably practicable the registration of the Registrable Securities shall be deferred for a period not to exceed ninety (90) days from the date of receipt of the written request; provided, however, that the Company may
not utilize this right more than once in any twelve (12) month period. 
  
 (b) Underwriting Procedures. If the Eligible Investors requesting registration on Form S-3 so elect, the offering of such Registrable Securities pursuant to a registration effected pursuant to Section 5(a) shall be in the form of a
firm commitment underwritten offering and the managing underwriter or underwriters selected for such offering shall be an Approved Underwriter selected by such holder in the same manner as described in Section 3(d). In such event, if the Approved
Underwriter advises the Company, which advice shall be confirmed in writing, that in its opinion marketing considerations require a limitation on the number of securities to be sold, then the Company shall include in such registration only the
number of Registrable Securities which, in the good faith opinion of such Approved Underwriter, can be sold, allocated pro rata, based on the number of Registrable Securities requested to be included by each such holder. 
  

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 SECTION 6. Lockup and Holdback Agreements. 
  
 (a) General Restrictions on Sales by Investors. During the Lockup
Period, each Investor agrees, solely for the benefit of the Company and not for the benefit of any other Investor or Investors, that such Investor will not, without the prior written consent of the Company, directly or indirectly, (i) offer, pledge,
announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly,
any shares of the Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the
power of disposition (collectively, the “Lock-Up Securities”); or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Lockup Securities, whether any such
swap or transaction is to be settled by delivery of Common Stock or other securities, in cash or otherwise; provided, that notwithstanding the foregoing, an Investor may transfer Lock-Up Securities without such consent (i) pursuant to a
registration effected hereunder and in accordance with the registration statement relating thereto, (ii) as a bona fide gift or gifts, provided that the donee or donees thereof agree to be bound in writing by the restriction set forth herein, (iii)
to any trust for the direct or indirect benefit of the undersigned or the immediate family (which shall mean any relationship by blood, marriage or adoption, not more remote than first cousin) of the undersigned, provided that the trustee of
the trust agrees to be bound in writing by the restrictions set forth herein, and provided further that any such transfer shall not involve a disposition for value, (iv) to the Company through the exercise of a stock option granted pursuant
to the Company’s stock option or incentive plans, in satisfaction of any tax withholding obligation of the undersigned or in payment of the exercise price for any stock option exercised by the undersigned, (v) if the transfer occurs by
operation of law, such as rules of descent and distribution (whether pursuant to a will or via intestate transfer), statutes governing the effects of a merger or a qualified domestic order, provided that the transferee agrees to be bound in
writing by the restrictions set forth herein, (vi) to an affiliate (as that term is defined in Rule 405 under the Securities Act) of the undersigned, provided that such affiliate agrees to be bound in writing by the restrictions set forth
herein; provided further that in the case of any transfer or distribution pursuant to clause (v) or (vi), no filing under the Exchange Act shall be made in connection with subsequent sales of Common Stock or other securities acquired
in such transfer or distribution unless required by law, (vii) to the Company in any transaction approved by the Board of Directors, (viii) to the BACI Trustee pursuant to the Voting Trust Agreement relating thereto and (ix) commencing upon
expiration of the 20-day period described in Section 3(b) or Section 5(a), if such Investor has requested its Registrable Securities be included in a registration pursuant to Section 3 or Section 5 and the Minimum Offering Threshold is not met
during such 20-day period. 
  
 (b) Restrictions on Public Sale
by Participating Investors. In order to participate in a registration effected hereby, to the extent not inconsistent with applicable law and except as contemplated by the registration statement relating to such registration, each holder of
Registrable Securities agrees not to effect any public sale or distribution of any Registrable Securities being registered or of any securities convertible into or exchangeable or exercisable for such Registrable Securities, including a sale
pursuant to Rule 144 under the Securities Act, 

  

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during the period beginning on the filing date of such registration statement and ending on the later of (i) ninety (90) days after the effective date of
such registration statement or the commencement of a public distribution of the Registrable Securities pursuant to such registration statement or (ii) the expiration of any lock-up period required by the underwriters. In furtherance of the foregoing
provisions of Sections 6(a) and 6(b), each Investor consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the restrictions
herein. 
  
 (c) Restrictions on Public Sale by the Company.
The Company agrees not to effect any public sale or distribution of any of its securities, or any securities convertible into or exchangeable or exercisable for such securities (except pursuant to registrations on Form S-4 or S-8 or any successor to
such forms or any other forms not available for registering capital stock for sale to the public) during the period beginning on the filing date of any registration statement in which the holders of Registrable Securities are participating and
ending on the later of (i) ninety (90) days after the effective date of any such registration statement and (ii) the expiration of any lock-up period required by the underwriters. 
  
 SECTION 7. Registration Procedures. (a) Obligations of the Company. Whenever registration of Registrable
Securities has been requested pursuant to Sections 3, 4 or 5 of this Agreement, the Company shall use its best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of distribution thereof
as quickly as practicable, and in connection with any such request, the Company shall, as expeditiously as possible: 
  
 (i) prepare and file with the Commission (as promptly as practicable, but in any event not later than ninety (90) days after receipt of a
request to file a registration statement with respect to Registrable Securities) a registration statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for
the sale of such Registrable Securities in accordance with the intended method of distribution thereof, and use its best efforts to cause such registration statement to become effective; provided, that before filing a registration statement
or prospectus or any amendments or supplements thereto, the Company shall (A) provide counsel selected by the holders of a majority of the Registrable Securities being registered in such registration (“Holders’ Counsel”) with an
adequate and appropriate opportunity to participate in the preparation of such registration statement and each prospectus included therein (and each amendment or supplement thereto) to be filed with the Commission, which documents shall be subject
to the review of Holders’ Counsel, and (B) notify the Holders’ Counsel and each seller of Registrable Securities of any stop order issued or threatened by the Commission and take all reasonable action required to prevent the entry of such
stop order or to remove it if entered; 
  
 (ii)
prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period of not less than 24
months or 

  

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such shorter period which will terminate when all Registrable Securities covered by such registration statement have been sold (but not before the expiration
of the ninety (90) day period referred to in Section 4(3) of the Securities Act and Rule 174 thereunder, if applicable), and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; 
  
 (iii) as soon as reasonably possible, furnish to each seller of Registrable Securities, prior to filing a
registration statement, copies of such registration statement as it is proposed to be filed, and thereafter such number of copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto),
the prospectus included in such registration statement (including each preliminary prospectus) and such other documents as each such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such
seller; 
  
 (iv) use its best efforts to register
or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller of Registrable Securities reasonably requests, and to continue such qualification in effect in such jurisdictions for as long as
is permissible pursuant to the laws of such jurisdictions, or for as long as any such seller requests or until all of such Registrable Securities are sold, whichever is shortest, and do any and all other acts and things which may be reasonably
necessary or advisable to enable any such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller; provided, that the Company shall not be obligated to effect, or take any action to
effect, any such registration or qualification in any particular jurisdiction in which the Company would be required to qualify as a foreign corporation, subject itself to taxation in that jurisdiction or execute a general consent to service of
process in effecting such registration or qualification unless the Company is already subject to taxation or service in such jurisdiction and except as may be required by the Securities Act or applicable rules or regulations thereunder; 

 
 (v) use its best efforts to cause the Registrable
Securities covered by such registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company to enable the seller or sellers of
Registrable Securities to consummate the disposition of such Registrable Securities; 
  
 (vi) notify each seller of Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the
Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such registration statement contains an untrue statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and the Company shall promptly prepare a supplement or amendment to such prospectus and furnish to each seller a
reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, after delivery to the purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a 

  

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material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances under which they were made; 
  
 (vii) enter into and perform customary agreements (including an underwriting agreement in customary form with the Approved Underwriter or Company Underwriter, if any, selected as provided in Sections 3, 4 or 5) and take such other actions
as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities; 
  
 (viii) make available for inspection by any seller of Registrable Securities, any managing underwriter participating in any disposition
pursuant to such registration statement, Holders’ Counsel and any attorney, accountant or other agent retained by any such seller or any managing underwriter (each, an “Inspector” and collectively, the “Inspectors”), all
financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and
cause the Company’s and its subsidiaries’ officers, directors and employees, and the independent public accountants of the Company, to supply all information reasonably requested by any such Inspector in connection with such registration
statement. Records that the Company determines, in good faith, to be confidential and which it notifies the Inspectors are confidential shall not be disclosed by the Inspectors unless (A) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in the registration statement or to confirm that no such misstatement or omission has been made, (B) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction or (C) the information in such Records has been made generally available to the public or is required to be filed with, or made available as supplemental information to, the Commission. Each seller of Registrable Securities agrees that
it shall, upon learning that disclosure of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company’s expense, to undertake appropriate action to prevent disclosure of the
Records deemed confidential; 
  
 (ix) if such
sale is pursuant to an underwritten offering, obtain a “cold comfort” letter from the Company’s independent public accountants in customary form and covering such matters of the type customarily covered by “cold comfort”
letters and as Holders’ Counsel or the managing underwriters reasonably request; 
  
 (x) furnish, at the request of any seller of Registrable Securities on the date such securities are delivered to the underwriters for sale
pursuant to such registration or, if such securities are not being sold through underwriters, on the date the registration statement with respect to such securities becomes effective, an opinion, dated such date, of counsel representing the Company
for the purposes of such registration, addressed to the underwriters, if any, and to the seller making such request, covering such legal matters with respect to the registration in respect of which such opinion is being given as such seller or
underwriters may reasonably request and are customarily included in such opinions; 
  
 (xi) otherwise use its best efforts to comply with all applicable rules and regulations of the Commission, and make available to its
security holders, as soon as reasonably practicable but no later than 15 months after the effective date of the registration statement, an 

  

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earnings statement covering a period of 12 months beginning after the effective date of the registration statement, in a manner which satisfies the
provisions of Section 11(a) of the Securities Act; 
  
 (xii) cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed; provided, that the applicable listing requirements are satisfied; 
  
 (xiii) keep each seller of Registrable Securities reasonably
advised in writing as to the initiation and progress of any registration under Sections 3, 4 or 5 hereunder; 
  
 (xiv) provide officers’ certificates and other customary closing documents; 
  
 (xv) cooperate with each seller of Registrable Securities
and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD; and 
  
 (xvi) use its best efforts to take all other steps necessary to effect the registration of the Registrable
Securities contemplated hereby and cooperate with the holders of such Registrable Securities to facilitate the disposition of such Registrable Securities pursuant thereto. 
  
 (b) Seller Information. Each seller of Registrable Securities as to which any registration is being effected shall
furnish to the Company such information regarding such seller, the Registrable Securities held by them and the distribution of such securities as the Company may reasonably request and as shall be required under the Securities Act upon the
Company’s written request therefor. 
  
 (c) Notice to
Discontinue. Each holder of Registrable Securities agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 7(a)(vi), such holder shall forthwith discontinue disposition of
Registrable Securities pursuant to the registration statement covering such Registrable Securities until such holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 7(a)(vi) and, if so directed by the
Company, such holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such holder’s possession, of the prospectus covering such Registrable Securities which is current at the time
of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such registration statement shall be maintained effective pursuant to this Agreement (including without limitation the period
referred to in Section 7(a)(ii)) by the number of days during the period from and including the date of the giving of such notice pursuant to Section 7(a)(vi) to and including the date when the holder shall have received the copies of the
supplemented or amended prospectus contemplated by and meeting the requirements of Section 7(a)(vi). 
  

 11 

 SECTION 8. Registration Expenses. 
  
 (a) The Company shall pay all expenses (other than underwriting discounts, commissions and stock transfer taxes) arising
from or incident to the performance of, or compliance with, Sections 3, 4 and 5 of this Agreement, including without limitation, (i) Commission, stock exchange and NASD registration and filing fees, (ii) all fees and expenses incurred in complying
with securities or blue sky laws (including reasonable fees, charges and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (iii) all printing, engraving, messenger and delivery expenses and (iv) the
fees, charges and disbursements of counsel to the Company and of its independent public accountants and any other accounting and legal fees, charges and expenses incurred by the Company (including without limitation any fees and expenses in
connection with any “cold comfort” letters and any special audits incident to or required by any registration or qualification) regardless of whether such registration statement is declared effective (collectively, “Registration
Expenses”). 
  
 (b) The Company will, in any event, pay its
internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the
securities to be registered on each securities exchange on which securities of the same class are then listed or the qualification for trading of the securities to be registered in each inter-dealer quotation system in which securities of the same
class are then traded, and rating agency fees. 
  
 (c) In
connection with each registration requested pursuant to Section 3 of this Agreement, the Company will reimburse the Investors for the reasonable fees and disbursements of one set of counsel to the Investors. 
  
 (d) Notwithstanding any provision of this Section 8 to the contrary, the
Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 3 of this Agreement if the registration request is subsequently withdrawn at the request of the holders of a majority of the Registrable
Securities to be registered therein (in which case all participating holders (other than any such holder designated on the signature pages hereto as a Management Investor) shall bear such expenses pro rata based on the number of Registrable
Securities requested to have been included therein by such holders), unless the holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 3; provided, however, that
if at the time of the withdrawal any of the holders have learned of a material adverse change in the condition, business or prospects of the Company which did not exist at the time of their request, then the holders shall not be required to pay any
of such expenses and shall retain their rights pursuant to Section 3. 
  
 SECTION 9. Indemnification; Contribution. 
  
 (a)
Indemnification by the Company. The Company agrees to indemnify, to the full extent permitted by law, each holder of Registrable Securities, its officers, directors, partners, employees and agents and each Person who controls (within the
meaning of the Securities Act or the Exchange Act) such holder from and against any and all losses, claims, damages, liabilities and 

  

 12 

 
expenses (including reasonable costs of investigation and, subject to Section 9(c) hereof, reasonable fees, disbursements and other charges of legal counsel)
arising out of or based upon any untrue, or allegedly untrue, statement of a material fact contained in any registration statement, prospectus or preliminary prospectus (as amended or supplemented if the Company shall have furnished any amendments
or supplements thereto) or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same are caused
by or contained in any information furnished in writing to the Company by such holder expressly for use therein. The Company shall also indemnify any underwriters of the Registrable Securities, their officers, directors and employees and each Person
who controls such underwriters (within the meaning of the Securities Act and the Exchange Act) to the same extent as provided above with respect to the indemnification of the holders of Registrable Securities. 
  
 (b) Indemnification by Holders. Each holder agrees to indemnify, to
the extent permitted by law, the Company and any underwriter retained by the Company and their respective directors, officers, employees and each Person who controls the Company or such underwriter (within the meaning of the Securities Act and the
Exchange Act) to the same extent as the foregoing indemnity from the Company to the holders, but only with respect to any information furnished in writing by such holder to the Company expressly for use in such registration statement.
Notwithstanding the provisions of this Section 9(b), a holder of Registrable Securities shall not be required to pay any indemnification in an amount in excess of the net proceeds received by such holder in the offering to which such registration
statement relates. 
  
 (c) Conduct of Indemnification
Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give prompt written notice to any party with indemnification obligations hereunder (the “Indemnifying Party”) after the receipt
by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this
Agreement; provided, that the failure so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any liability that it may have to the Indemnified Party hereunder, unless (and then solely to the extent that) the
Indemnifying Party is materially prejudiced thereby. If notice of commencement of any such action is given to the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish,
jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and satisfactory to such Indemnified Party in its reasonable judgment. The Indemnified Party shall have
the right to employ separate legal counsel in any such action and participate in the defense thereof, but the fees, disbursements and other charges of such legal counsel shall be paid by the Indemnified Party unless (i) the Indemnifying Party agrees
to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with legal counsel satisfactory to the Indemnified Party in its reasonable judgment or (iii) the named parties to any such action (including any impleaded
parties) have been advised by such legal counsel that either (A) representation of such Indemnified Party and the Indemnifying Party by the same legal counsel would be inappropriate under applicable standards of professional conduct or (B) there may
be one or more legal defenses available to it which are different from or additional to those available to the Indemnifying Party. In either of such cases the 

  

 13 

 
Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party. No Indemnifying Party shall be liable
for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. 
  
 (d) Contribution. If the indemnification provided for in this Section 9 from the Indemnifying Party is unavailable to an Indemnified Party
hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions which resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative faults of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in
question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include, subject to the limitations set forth in Sections 9(a), 9(b) and 9(c), any fees, charges or expenses (including fees, disbursements and other charges of legal counsel) reasonably incurred by such party in connection with any
investigation or proceeding. 
  
 The parties hereto agree that it
would not be just and equitable if contribution pursuant to this Section 9(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 9(d), a holder of Registrable Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such holder in the
offering to which such registration statement relates exceeds the amount of any damages that such holder has otherwise been required to pay. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person. 
  
 (e)
Survival. The indemnity and contribution covenants contained in this Section 9 shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of a holder or any person controlling a holder, (ii)
any sale of any Registrable Securities pursuant to this Agreement and receipt by the holders of the proceeds thereof, or (iii) any termination of this Agreement for any reason, including after the initial filing of the registration statement to
which these indemnity and contribution covenants relate. 
  
 SECTION 10. Rules 144 and 144A. The Company covenants that it shall use its best efforts to duly and timely file any reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations
adopted by the Commission thereunder and that it shall take such further action as each holder of Registrable Securities may reasonably request (including providing any information necessary to comply with Rules 144 and 144A under the Securities
Act), all to the extent required from time to time to enable such holder to sell 

  

 14 

 
Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 or Rule 144A under the
Securities Act, as such rules may be amended from time to time, or any similar rules or regulations hereafter adopted by the Commission. The Company shall, upon the request of any holder of Registrable Securities, deliver to such holder a written
statement as to whether it has complied with such requirements. Without limiting the foregoing, the Company agrees that it will use its best efforts to: 
  
 (a) if required by law, maintain a registration statement (containing such information and documents as the Commission shall specify) with respect to the
Common Stock under Section 12 of the Exchange Act and will timely file such information, documents and reports as the Commission may require or prescribe for companies whose stock has been registered pursuant to said Section 12; 
  
 (b) if a registration statement with respect to the Common Stock under
Section 12 is effective, or if required by Section 15(d) of the Exchange Act, make whatever filings with the Commission or otherwise make generally available to the public such financial and other information as may be necessary to enable the
holders of Registrable Securities to be permitted to sell shares of Common Stock pursuant to the provisions of Rule 144 or 144A promulgated under the Securities Act (or any successor rule or regulation thereto); and 
  
 (c) at any time when any holder of Registrable Securities desires to make
sales of any Registrable Securities in reliance on Rule 144A under the Securities Act (or any successor rule or regulation), provide, upon request, such holder and any prospective purchaser therefrom with the information required by Rule 144A and
otherwise cooperate with the holder in connection with such sale. 
  
 The Company represents and warrants that any registration statement or any information document or report filed with the Commission in connection with the foregoing or any information so made public shall not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements contained therein not misleading. The Company agrees to indemnify and hold harmless (or to the extent the same is not
enforceable, make contribution to) the seller of Registrable Securities, its partners, officers, directors, employees and agents and each broker, dealer or underwriter (within the meaning of the Securities Act) acting for any such seller in
connection with any offering or sale by such seller of Registrable Securities or any person, firm or corporation controlling (within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act) such seller and any such
broker, dealer or underwriter from and against any and all losses, claims, damages, liabilities or expenses (or actions in respect thereof) arising out of or resulting from any breach of the foregoing representation or warranty, all on terms and
conditions comparable to those set forth in Section 9 of this Agreement. 
  
 SECTION 11. Limitation on Registration Rights of Others. The Company represents and warrants that it has not granted to any Person the right to request or require the Company to register any securities issued
by the Company. The Company covenants and agrees that, so long as any Person holds any Registrable Securities in respect of which any registration rights 

  

 15 

 
provided for in Section 3 of this Agreement remain in effect, the Company will not, directly or indirectly, grant to any Person or agree to or otherwise
become obligated in respect of rights of registration in the nature or substantially in the nature of those set forth herein except pursuant to this Agreement. 
  

SECTION 12. Miscellaneous. 
  
 (a) Recapitalizations, Exchanges, Etc. The provisions of this Agreement shall apply, to the full extent set forth herein with respect to the Common
Stock, to any and all shares of capital stock of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the
Common Stock and shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations, recapitalizations and the like occurring after the date hereof. 
  
 (b) No Inconsistent Agreements. The Company shall not enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the designated holders of the Registrable Securities in this Agreement. 
  
 (c) Remedies. The holders of the Registrable Securities, in addition to being entitled to exercise all rights granted by law, including recovery of
damages, shall be entitled to specific performance of their rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this
Agreement and hereby agrees to waive in any action for specific performance the defense that a remedy at law would be adequate. 
  
 (d) Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given unless in writing signed by the Company and the Required Investors; provided, that (i) the Company may, upon approval of its Board of Directors, waive the
provisions of Section 6(a) to allow an Investor or Investors to transfer or otherwise dispose of Lockup Securities during the Lockup Period, without the consent of the Required Investors, and (ii) except for waivers granted pursuant to the foregoing
clause (i), no amendment, modification or waiver of any provision of this Agreement that adversely affects the rights of one Investor in a manner different from any other Investor shall be effective against such adversely affected Investor unless
approved in writing by that Investor. Any amendment or waiver effected in accordance with this Section 12(d) shall be binding upon each then-current and future holder of Registrable Securities and the Company. 
  

 16 

 (e) Notices. All notices, demands and other communications provided for or permitted hereunder
shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, telecopy, recognized overnight courier service or personal delivery: 
  

	 	(i)	if to the Company: 

  
 Republic Companies Group, Inc.. 
 5525 Lyndon
B. Johnson Freeway 
 Dallas, Texas 75240 
 Attention:     Parker W. Rush 
 Facsimile:     (972) 788-6109 
  

	 	(ii)	if to any Investor, to such Investor’s respective address as listed on Schedule A hereto. 

  
 All such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally
delivered; when delivered by courier, if delivered by commercial overnight courier service; five business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is acknowledged, if telecopied. 
  
 (f) Additional Parties. Each Person hereafter becoming a transferee of
any Registrable Securities pursuant to any Section 6(a) shall, to the extent required under Section 6(a), execute a supplement to this Agreement in the form attached hereto as Exhibit A for the purposes of making such Person a party hereto
and subject to all of the terms and conditions hereof. 
  
 (g)
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties and the registration rights and the other obligations of the Company contained in this Agreement shall
with respect to any Registrable Security be automatically transferred to any subsequent holder of Registrable Securities (excluding any person who acquires such securities in a transaction with respect to which a registration statement under the
Securities Act is effective at the time or pursuant to a sale complying with Rule 144 under the Securities Act). Notwithstanding any transfer of such rights, all of the obligations of the Company hereunder shall survive any such transfer and shall
continue to inure to the benefit of all transferees. 
  
 (h)
Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. 
  
 (i) Headings. The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 (j) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the
principles of conflicts of law of such state. 
  
 (k)
Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and 

  

 17 

 
of the remaining provisions hereof shall not be in any way impaired, it being intended that all of the rights and privileges of the holders of Registrable
Securities shall be enforceable to the fullest extent permitted by law. 
  
 (l) Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter, including the Original Agreement which is amended and restated in its entirety hereby. 
  
 [SIGNATURE PAGES TO FOLLOW] 
  

 18 

 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and delivered as of the day
and year first above written. 
  

					
	COMPANY:
	
	 REPUBLIC COMPANIES GROUP, INC.

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 [Registration Rights Agreement]

  

 [Signature Pages Continue] 
  

					
	INVESTORS:
	
	 BANC OF AMERICA CAPITAL INVESTORS SBIC, L.P.

		
	 By:
	 	 Banc of America Capital Management SBIC, LLC, Its general partner

		
	 By:
	 	 Banc of America Capital Management, L.P., Its sole member

		
	 By:
	 	 BACM GP, LLC, Its general partner

		
	 By:
	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  

					
	GREENHILL CAPITAL PARTNERS, L.P.
		
	 By:
	 	 GCP, LLC, its General Partner

		
	 By:
	 	 
	 	 	 Name: 
	 	 Scott L. Bok

	 	 	 Title:
	 	 Managing Member

	
	 GREENHILL CAPITAL PARTNERS (CAYMAN), L.P.

		
	 By:
	 	 GCP, LLC, its General Partner

		
	 By:
	 	 
	 	 	 Name:
	 	 Scott L. Bok

	 	 	 Title:
	 	 Managing Member

	
	 GREENHILL CAPITAL PARTNERS (EXECUTIVE), L.P.

		
	 By:
	 	 GCP, LLC, its General Partner

		
	 By:
	 	 
	 	 	 Name:
	 	 Scott L. Bok

	 	 	 Title:
	 	 Managing Member

	
	 GREENHILL CAPITAL, L.P.

		
	 By:
	 	 GCP, LLC, its General Partner

		
	 By:
	 	 
	 	 	 Name:
	 	 Scott L. Bok

	 	 	 Title:
	 	 Managing Member

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  

					
	 BRAZOS EQUITY FUND 2000, L.P.

		
	 By:
	 	 Brazos Investment Partners, LLC, Its general partner

		
	 By:
	 	 
	 	 	 Name: 
	 	 
	 	 	 Title:
	 	 

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  

					
	 NORWEST EQUITY PARTNERS VI, LP

		
	 By:
	 	 ITASCA LBO Partners VI, LLP, Its general partner

		
	 By:
	 	 
	 	 	 Name: 
	 	 
	 	 	 Title:
	 	 
	
	 NORWEST EQUITY PARTNERS VII, LP

		
	 By:
	 	 ITASCA LBO Partners VII, LLP, Its general partner

		
	 By:
	 	 
	 	 	 Name: 
	 	 
	 	 	 Title:
	 	 

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  

					
	 21ST CENTURY GROUP EQUITY FUND, L.P.

		
	 By:
	 	 21st Century GP, L.L.C., Its general partner

		
	By: 	 	 
	 	 	 Name:
	 	 John Ware

	 	 	 Title:
	 	 President

	
	 21ST CENTURY GROUP COINVESTORS I, L.P.

		
	 By:
	 	 21st Century GP, L.L.C., Its general partner

		
	By:	 	 
	 	 	 Name:
	 	 John Ware

	 	 	 Title:
	 	 President

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  

	
	 
	 Bruce W. Schnitzer

	
	 
	 John S. Struck

	
	 
	 Patrick McLaughlin

	
	 
	 David Callard

  
 [Amended and Restated
Registration Rights Agreement] 
  

 [Signature Pages Continue] 
  
 [Amended and Restated Registration Rights Agreement] 
  

 MANAGEMENT INVESTORS: 
  

	
	
	 
	 Parker W. Rush

	
	 
	 Martin B. Cummings

	
	 
	 Michael E. Ditto

	
	 
	 James E. Drawert

	
	 
	 Robert S. Howey

  
 [Amended and Restated Registration Rights Agreement] 
  

 Schedule A 
  

Investors 
  
 Banc Of America Capital Investors SBIC I, L.P. 
 Bank of America
Corporate Center 
 100 North Tryon St., 25th Floor 
 Charlotte, North Carolina 28255-0001 
 Attn: Robert H. Sheridan III 
 Fax: (704) 386-6432 
  
 Greenhill Capital Partners, L.P. 
 Greenhill Capital Partners
(Cayman), L.P. 
 Greenhill Capital Partners (Executive), L.P. 
 Greenhill Capital, L.P. 
 300 Park Ave., 23rd Floor 
 New York, NY 10022 
 Attn: Timothy M. Dwyer 
 Fax: (212) 389-1726 
  
 Brazos Equity Fund 2000, L.P. 
 300
Crescent Court 
 Suite 1740 
 Dallas, TX 75201 
 Attn: Patrick K. McGee 
 Fax: (214) 756-6505 
  
 Norwest Equity Partners VI, LP 
 Norwest Equity Partners VII, LP 
 c/o Norwest Venture Capital
Management, Inc. 
 3600 IDS Center 
 Minneapolis, MN55402

 Attn: Timothy C. DeVries and Stephen B. Soderling 
 Fax: (612)
215-1601 
  
 21st Century Group Equity Fund, L.P. 
 21st Century Group Coinvestors I, L.P. 
 200 Crescent Court 
 Suite 1600 
 Dallas, TX 75201 
 Office: (214) 965-7973 
 Attn: John
L. Ware 
 Fax: (214) 965-7993 
  

 Bruce W. Schnitzer 
 John S. Struck 
 Patrick McLaughlin 
 David Callard 
 c/o Wand Partners, Inc. 
 630
Fifth Ave, Suite 2435 
 New York, NY 10111 
 Attn: Bruce
Schnitzer 
 Fax: (212) 307-5599 
  
 Parker W. Rush 
 Martin B. Cummings 
 Michael E. Ditto 
 James E. Drawert 
 Robert E. Howey 
 c/o Republic Companies Group, Inc. 
 5525 Lyndon B. Johnson Freeway 
 Dallas, Texas 75240 
 Facsimile: (972) 788-             
  
 [Amended and Restated Registration Rights Agreement] 
  

 Exhibit A 
  

Form of Supplement 
  
 THIS SUPPLEMENT TO REGISTRATION RIGHTS AGREEMENT (this “Supplement”) is dated as of
                ,
                             between REPUBLIC COMPANIES GROUP, INC., a Delaware corporation (the
“Company”), and                          (“New Investor”). 
  
 Statement of Purpose 
  
 The Company has entered into an Amended and Restated Registration Rights
Agreement dated as of [August     ], 2005 among the Company and the Investors party thereto, a copy of which agreement is attached hereto as Exhibit A (as amended, the “Registration Rights Agreement”).
Pursuant to Section 12(f) of the Registration Rights Agreement, the Company and the New Investor have agreed to execute this Supplement for the purposes of making the New Investor a party to the Registration Rights Agreement. The New Investor has
agreed to execute this Supplement in consideration of the receipt of his, her or its Registrable Securities and the benefits afforded the New Investor by the Registration Rights Agreement. 
  
 NOW, THEREFORE, the Company and the New Investor agree as follows:

  
 1. Defined Terms. All capitalized undefined terms used
in this Supplement have the meanings assigned thereto in the Registration Rights Agreement. 
  
 2. Joinder of New Investor. The New Investor hereby joins in and agrees to become a party to the Registration Rights Agreement with all right, title and interest as a holder of Registrable Securities thereunder
and subject to all of the terms and conditions thereof as if the New Investor were an original party and signatory thereto. The New Investor’s notice address for purposes of Section 12(e) of the Registration Rights Agreement is: 
  
 __________________________________ 
  
 __________________________________ 
  

 IN WITNESS WHEREOF, the Company and the New Investor have executed this Supplement, this
             day of                     ,
                    . 
  

					
	 REPUBLIC COMPANIES GROUP, INC.

		
	By: 	 	 
	 	 	 Name: 
	 	 
	 	 	 Title:
	 	 
	
	 NEW INVESTOR:

	
	 
			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:Republic Companies Group, Inc. Stock Plan, effective May 1, 2004

 Exhibit 10.7 
  
 REPUBLIC COMPANIES GROUP, INC. 
 STOCK PLAN 
  

  
 Table of Contents

  

			
	 	  	Page

		
	 Article 1. Establishment, Duration and Purpose
	  	1
		
	 Article 2. Definitions
	  	1
		
	 Article 3. Administration
	  	3
		
	 Article 4. Shares Subject to the Plan
	  	3
		
	 Article 5. Participation
	  	4
		
	 Article 6. Stock Options
	  	5
		
	 Article 7. Restricted Stock and Restricted Stock Units
	  	7
		
	 Article 8. Deferrals
	  	8
		
	 Article 9. Rights of Participants
	  	8
		
	 Article 10. Amendment, Modification and Termination
	  	9
		
	 Article 11. Withholding and Fractional Shares
	  	10
		
	 Article 12. Indemnification
	  	10
		
	 Article 13. Successors and Corporate Transactions
	  	11
		
	 Article 14. Legal Construction
	  	11

  

 i 

  
 REPUBLIC COMPANIES GROUP,
INC. 
 STOCK PLAN 
  
 Article 1. Establishment, Duration and Purpose 
  
 1.1 Establishment and Duration. Republic Companies Group, Inc. (the “Company”) hereby establishes the Republic Companies Group,
Inc. Stock Plan (the “Plan”) effective as of May 1, 2004, subject to the Plan having been approved by the Company’s shareholders within the time required by Section 422 of the Code. The Plan shall remain in effect until the earliest
of (i) the date that no additional Shares are available for issuance under the Plan, (ii) the date that the Plan has been terminated in accordance with Article 11, or (iii) the close of business May 1, 2014.  
  
 1.2 Purpose. The purpose of the Plan is to promote the success
and enhance the value of the Company and its subsidiaries by linking the personal interests of officers, directors, consultants, insurance and other agents, and key employees to those of the Company’s shareholders, and by providing such
individuals with an incentive for outstanding performance that contributes to the Company’s growth and success. The Plan is further intended to provide flexibility to the Company and its subsidiaries in their ability to motivate, attract, and
retain the services of officers, directors, consultants, insurance and other agents, and key employees upon whose judgment, interest and special effort the successful conduct of their operations largely is dependent. 
  
 Article 2. Definitions 
  
 Whenever used in the Plan, the following terms shall have the meanings set
forth below and, when the meaning is intended, the initial letter of the word is capitalized: 
  
 “Award” means, individually or collectively, a grant under the Plan of Nonqualified Stock Options, Incentive Stock
Options, Restricted Stock or Restricted Stock Units. 
  
 “Award Agreement” means an agreement between the Company and a Participant setting forth the terms and provisions applicable to Awards granted under the Plan. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Code” means the Internal Revenue Code of
1986, as amended from time to time. References to the Code include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder. 
  
 “Committee” means the Compensation
Committee of the Board or any other committee that the Board authorizes to administer the Plan in accordance with the terms set forth herein. 
  

 “Common Stock” means the Class B Non-Voting Common Stock of the Company
or any security of the Company issued in substitution, exchange or lieu thereof pursuant to Article 4. 
  
 “Company” means Republic Companies Group, Inc., a Delaware corporation, and any successor as provided in Article 13.

  
 “Effective Date” means May
1, 2004. 
  
 “Fair Market Value”
of a Share of the Company’s Common Stock means such value as determined from time to time by the Committee using any reasonable valuation method as determined by the Committee. 
  
 “Incentive Stock Option” means a right to purchase Shares upon exercise of an Option
granted under Article 6 that is intended to meet the requirements of Section 422 of the Code. 
  
 “Nonqualified Stock Option” means a right to purchase Shares upon exercise of an option granted under Article 6 that is
not intended to meet the requirements of Section 422 of the Code. 
  
 “Option” means an Incentive Stock Option or a Nonqualified Stock Option. 
  
 “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option. 
  
 “Participant” means a person designated
pursuant to Section 5.1 to receive an Award. 
  
 “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock or an Award of Restricted Stock Units is limited pursuant to Section 7.4. 
  
 “Restricted Stock” means an Award of
Shares, subject to a Period of Restriction, granted to a Participant under Article 7. 
  
 “Restricted Stock Unit” means an Award, subject to a Period of Restriction, that is granted to a Participant under
Article 7 and is settled either (i) by the delivery of one Share for each Restricted Stock Unit or (ii) in cash in an amount equal to the Fair Market Value of one Share for each Restricted Stock Unit. The Award of a Restricted Stock Unit represents
the mere promise of the Company to deliver a Share or the appropriate amount of cash, as applicable, at the end of the Period of Restriction (or such later date as provided by the Award Agreement) in accordance with and subject to the terms and
conditions of the applicable Award Agreement, and is not intended to constitute a transfer of “property” within the meaning of Section 83 of the Code. 
  

 2 

 “Sale of the Company” means Sale of the Company as defined in the
Investor Rights Agreement among RTXA, Inc. (now known as Republic Companies Group, Inc.) and other parties thereto dated May 9, 2003, as amended. 
  
 “Shares” means the shares of Common Stock of the Company. 
  
 “Termination” means the (i) termination of employment with or (ii) cessation of performance
of services for the Company and its subsidiaries by a Participant, regardless of whether such termination is by the Company or the Participant, for or without cause, with or without good reason, voluntary or mandatory or due to the death, disability
or retirement of the Participant. 
  
 Article 3. Administration

  
 3.1 The Committee. The Plan shall be
administered by a Committee established for such purpose by the Board; provided that if the Board has not established a Committee, the Plan shall be administered by the Board and all references herein to the Committee shall be deemed to refer to the
Board. 
  
 3.2 Authority of the Committee. Except as
limited by law, or by the Certificate of Incorporation or Bylaws of the Company, and subject to the provisions herein, the Committee shall have full power to select employees, directors, consultants, insurance and other agents, and key employees of
the Company or any of its subsidiaries to become Participants; determine the amounts and types of Awards; determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any agreement or
instrument entered into under the Plan; establish, amend, or waive rules and regulations for the Plan’s administration; and subject to the provisions of Article 10, amend the terms and conditions of any outstanding Award to the extent such
terms and conditions are within the sole discretion of the Committee as provided in the Plan. Further, the Committee shall make all other determinations which may be necessary or advisable for the administration of the Plan. As permitted by law, the
Committee may delegate its authority as identified herein. 
  
 3.3 Decisions Binding. All determinations and decisions made by the Committee pursuant to the provisions of the Plan and all related orders and resolutions of the Board shall be final, conclusive and binding on all persons,
including the Company, its shareholders, employees, Participants, and their estates and beneficiaries. 
  
 Article 4. Shares Subject to the Plan 
  
 4.1 Number of Shares Available for Grants. Subject to the provisions of this Article 4, the aggregate number of Shares that may be issued to
Participants pursuant to Awards granted under the Plan shall not exceed One-Hundred-Twenty-Six Thousand (126,000) Shares. For purposes of Section 422 of the Code, this is also the maximum number of Shares that are available for grants of Incentive
Stock Options. 
  

 3 

 4.2 Lapsed Awards. If any Award is canceled, terminates, expires, or lapses for any reason,
any Shares subject to such Award shall not count against the aggregate number of Shares that may be issued under the Plan set forth in Section 4.1. 
  
 4.3 Adjustments in Authorized Shares. Subject to the provisions of Article 14, in the event of any change in corporate capitalization, such
as a stock split, or a corporate transaction, such as any merger, consolidation, separation, including a spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization comes within the
definition of such term in Section 368 of the Code) or any partial or complete liquidation of the Company, such adjustment shall be made in the number and class of Shares which may be delivered under the Plan, and in the number and class of and/or
price of Shares subject to outstanding Awards granted under the Plan, as may be determined to be appropriate and equitable by the Committee, in its sole discretion, to prevent dilution or enlargement of rights; provided, however, that (i) the number
of Shares subject to any Award shall always be a whole number and (ii) if the Award is an Incentive Stock Option and is intended to remain an Incentive Stock Option after the adjustment, the adjustment shall be made consistent with the requirements
of Section 424 of the Code. 
  
 4.4 Shares Used to Pay Option
Price and Withholding Taxes. If, in accordance with the terms of the Plan, a Participant pays the Option Price for an Option or satisfies any tax withholding requirement in connection with any Award by either tendering previously owned
Shares or having the Company withhold Shares, then such Shares surrendered to pay the Option Price or used to satisfy such tax withholding requirements shall not count against the aggregate number of Shares that may be issued under the Plan set
forth in Section 4.1.  
  
 4.5 Other Items Not
Included. The following items shall not count against the aggregate number of Shares that may be issued under the Plan set forth in Section 4.1: (i) the payment in cash of dividends or dividend equivalents under any outstanding Award;
(ii) any Award that is settled in cash rather than by issuance of Shares; or (iii) Awards granted through the assumption of, or in substitution for, outstanding awards previously granted to individuals who become Participants as a result of a
merger, consolidation, acquisition or other corporate transaction involving the Company or any subsidiary. 
  
 4.6 Source of Shares. Shares issued under the Plan may be original issue shares, treasury stock or shares purchased in the open market or
otherwise, all as determined by the Chief Financial Officer of the Company (or the Chief Financial Officer’s designee) from time to time, unless otherwise determined by the Committee. 
  
 Article 5. Participation 
  
 5.1 Participation. The Committee shall, in its sole discretion,
select individuals to receive Awards from among the officers, directors, consultants, insurance and other agents, and key employees of the Company and its subsidiaries, including persons who have agreed to commence serving in any such capacity
within 90 days of the date of an Award. 
  

 4 

 Article 6. Stock Options 
  
 6.1 Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants
in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee in its sole discretion. 
  
 6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the duration of the
Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall determine, including without limitation, conditions or other provisions related to the performance of the Company or the Participant as may
be established by the Committee in its sole discretion from time to time. The Award Agreement also shall specify whether the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option. 
  
 6.3 Option Price. The Option Price per Share for each grant of
an Option under the Plan shall be determined by the Committee at the time of grant, but in no event shall the exercise price of an Incentive Stock Option be less than 100% of the Fair Market Value of the Common Stock on the date of the grant of such
Incentive Stock Option. 
  
 6.4 Duration of Options.
Each Option shall expire at such time as the Committee shall determine at the time of grant; provided, however, that no Option shall be exercisable later than the tenth (10th) anniversary date of its grant. 
  
 6.5 Exercise of Options. Options granted under this Article 6
shall be exercisable at such times and be subject to such restrictions and conditions, including without limitation conditions related to the performance of the Company or the Participant, as the Committee shall in each instance approve and which
shall be set forth in the applicable Award Agreement, which need not be the same for each grant or for each Participant. 
  
 6.6 Payment. Options shall be exercised by the delivery of a written notice of exercise to the Committee, setting forth the number of Shares
with respect to which the Option is to be exercised, accompanied by full payment for the Shares. The Option Price upon exercise of any Option shall be payable to the Company in full in cash or its equivalent or, if acceptable to the Committee in its
sole discretion, in shares of Common Stock either already owned by the Participant or subject to such Option. As soon as practicable after receipt of a written notification of exercise and full payment, the Company shall deliver to the Participant,
in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 
  
 6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an
Option granted under this Article 6 as it may deem advisable, including, without limitation, restrictions under applicable Federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or
traded, and under any blue sky or state securities laws applicable to such Shares. 
  

 5 

 6.8 Termination. Each Participant’s Award Agreement shall set forth the extent to
which the Participant shall have the right to exercise the Option following his Termination. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement, need not be uniform among all Options
issued pursuant to this Article 6, and may reflect distinctions based on the reasons for Termination. If an Award Agreement permits exercise of an Option following the death of the Participant, the Award Agreement shall provide that such Option
shall be exercisable to the extent provided therein by any person that may be empowered to do so under the Participant’s will, or if the Participant fails to make a testamentary disposition of the Option or dies intestate, by the
Participant’s executor or other legal representative. 
  
 6.9 Nontransferability of Options. 
  

	 	(a)	Incentive Stock Options. No Incentive Stock Option granted under this Article 6 may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution. All Incentive Stock Options granted to a Participant under the Plan shall be exercisable during his lifetime only by such Participant. 

  

	 	(b)	Nonqualified Stock Options. Except as otherwise provided in an Award Agreement, no Nonqualified Stock Option granted under this Article 6 may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, except as otherwise provided in an Award Agreement, all Nonqualified Stock Options granted to a Participant under this
Article 6 shall be exercisable during his lifetime only by such Participant. 

  
 6.10 No Rights. A Participant granted an Option shall have no rights as a shareholder of the Company with respect to the Shares covered by such Option except to the extent that Shares are issued to the
Participant upon the due exercise of the Option. 
  
 6.11
Additional Provisions for Incentive Stock Options. Notwithstanding any provision herein to the contrary, any Incentive Stock Option granted under the Plan shall be subject to the following additional provisions: 
  

	 	(a)	$100,000 Limit. The aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the Shares with respect to which Incentive Stock
Options are exercisable for the first time by a Participant during any calendar year shall not exceed $100,000 or such other limit as may be required by the Code. 

  

	 	(b)	10% Owners. The exercise price for an Incentive Stock Option granted under the Plan to a Participant who owns more than 10% of the voting power of all classes of stock
of the Company at the time of such grant shall be not less than 110% of the Fair Market Value of the Common Stock on the date of the grant and the term of such Incentive Stock Option shall not exceed five years from the grant date.

  

 6 

 Article 7. Restricted Stock and Restricted Stock Units 
  
 7.1 Grant of Restricted Stock. Subject to the terms and
provisions of the Plan, Awards of Restricted Stock or Restricted Stock Units may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee in its sole discretion.

  
 7.2 Restricted Stock Agreement. Each grant of
Restricted Stock or Restricted Stock Units shall be evidenced by an Award Agreement that shall specify the Period or Periods of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other
provisions as the Committee shall determine in its sole discretion. 
  
 7.3 Transferability. Except as provided in this Article 7, the Shares of Restricted Stock or Restricted Stock Units granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until
the end of the applicable Period of Restriction specified in the Award Agreement, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set forth in the Award Agreement. During the
Participant’s lifetime, all rights with respect to the Restricted Stock or Restricted Stock Units granted to such Participant under the Plan shall be available only to such Participant. 
  
 7.4 Other Restrictions. The Committee, in its sole discretion,
shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to the Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, the passage of time, the achievement of specific performance goals (Company-wide, divisional, and/or individual), time-based restrictions on vesting following the
attainment of the performance goals, the occurrence of a designated event and/or restrictions under applicable Federal or state securities laws. The Company shall retain in its possession all certificates representing the Shares of Restricted Stock
(along with a stock power executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such shares) until such time as all conditions and/or restrictions applicable to such Shares have been satisfied.
Except as otherwise provided in this Article 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall become freely transferable by the Participant after the last day of the Period of Restriction. 
  
 7.5 Settlement of Restricted Stock Units. Any Restricted Stock
Units that become payable in accordance with the terms and conditions of the applicable Award Agreement shall be settled in cash, Shares, or a combination of cash and Shares as determined by the Committee in its sole discretion or as otherwise
provided for under the Award Agreement. 
  
 7.6 Voting
Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights (if any) with respect to those Shares. There shall be no voting rights with respect to Restricted
Stock Units. 
  

 7 

 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants
holding Shares of Restricted Stock granted hereunder may receive regular cash dividends paid with respect to the underlying Shares. The Committee may apply any restrictions to the dividends that the Committee deems appropriate. The Committee, in its
sole discretion, may also grant dividend equivalents rights with respect to vested and earned but unpaid Restricted Stock Units as evidenced by the applicable Award Agreement. 
  
 7.8 Termination. Each Restricted Stock or Restricted Stock Unit Award Agreement shall set forth the extent to
which the Participant shall have the right to receive unvested Restricted Shares or Restricted Stock Units following his Termination. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award
Agreement entered into with a Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units awarded pursuant to the Plan, and may reflect distinctions based on the reasons for Termination. 
  
 7.9 Beneficiary Designation. Each Participant under the Plan
may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any Restricted Stock or Restricted Stock Units due under the Plan are to be distributed in case of his death before he receives any
or all of such benefit. Unless expressly stated to the contrary, each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only when filed by the
Participant in writing with the Committee during the Participant’s lifetime. In the absence of any such designation, any benefits due a Participant at the time of his death shall be distributed to the Participant’s estate. 
  
 Article 8. Deferrals 
  
 The Committee may permit a Participant to defer such Participant’s
receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the exercise of an Option or the lapse or waiver of restrictions with respect to Restricted Stock or Restricted Stock Units. If any
such deferral election is required or permitted, the Committee shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  
 Article 9. Rights of Participants 
  
 9.1 Employment and Services. Nothing in the Plan shall interfere with or limit in any way the right of the Company or any of its
subsidiaries to terminate any Participant’s employment or other service relationship with the Company or any of its subsidiaries at any time, nor confer upon any Participant any right to continue in the employ or service of the Company and its
subsidiaries. 
  
 9.2 Participation. No persons
shall have the right to be selected to receive an Award under the Plan, or, having been so selected, to be selected to receive a future Award. 
  

 8 

 9.3 Engaging in Competition With Company. If, following a Participant’s
Termination for any reason whatsoever, and during the “Restricted Period” such Participant engages in “Competition” with the Company or any of its subsidiaries, the Committee, in its sole discretion, may require such Participant
to return to the Company the economic value of any Award which is realized or obtained (measured at the date of exercise, vesting or payment) by such Participant after the “Look-Back Date.” For purposes of this Section, 
  

	 	(a)	“Competition” means: 

  

	 	(i)	in the case of a Participant with a written employment agreement or non-competition agreement with the Company or any of its subsidiaries, a breach by the Participant of any
non-competition provision of said employment agreement or said non-competition agreement; or 

  

	 	(ii)	in the case of a Participant without a written employment agreement or non-competition agreement with the Company or any of its subsidiaries, accepting employment with any
competitor of, or otherwise engaging in competition with, the Company or any of its subsidiaries. 

  

	 	(b)	“Look-Back Date” means the date that is six months prior to the date of the affected Participant’s Termination. 

  

	 	(c)	“Restricted Period” means the one-year period commencing on the date of Termination. 

  
 Article 10. Amendment, Modification and Termination 
  
 10.1 Amendment, Modification and Termination. The Board may at any time and from time to time, alter, amend,
suspend or terminate the Plan in whole or in part; provided, however, that no such amendment shall increase the number of Shares reserved for issuance under the Plan unless such increase is approved by the shareholders. 
  
 10.2 Awards Previously Granted. No termination, amendment, or
modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant holding such Award. 
  
 10.3 Acceleration of Award Vesting; Waiver of Restrictions. Notwithstanding any provision of the Plan or any
Award Agreement provision to the contrary, the Committee, in its sole discretion, shall have the power at any time to (i) accelerate the vesting of any Award granted under the Plan, including without limitation, acceleration to such a date that
would result in said Awards becoming immediately vested, or (ii) waive any restrictions of any Award granted under the Plan; provided, however, that such waiver shall not affect the obligations of the Participant under any other contract with the
Company or any of its subsidiaries. Such 

  

 9 

 
acceleration or waiver may vary among individual Participants and may vary among Awards held by Participants 
  
 Article 11. Withholding and Fractional Shares 
  
 11.1 Tax Withholding. The Company shall have the power and the
right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes (including a Participant’s FICA obligation) required by law to be withheld with respect to any
taxable event arising as a result of the Plan. 
  
 11.2 Share
Withholding. The Company may cause any tax withholding obligation described in Section 11.1 to be satisfied by the Company withholding Shares having a Fair Market Value on the date the tax is to be determined equal to the amount otherwise
to be withheld. In the alternative, the Company may permit Participants to elect to satisfy the tax withholding obligation, in whole or in part, by either (i) having the Company withhold Shares having a Fair Market Value on the date the tax is to be
determined equal to the amount otherwise to be withheld or (ii) tendering previously acquired Shares having an aggregate Fair Market Value equal to the amount otherwise to be withheld (provided that the Shares which are tendered must have been held
by the Participant for at least six months prior to their tender unless such Shares had been acquired by the Participant on the open market). All such elections shall be irrevocable, made in writing, signed by the Participant, and shall be subject
to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
  
 11.3 Fractional Shares. The Company shall not be required to issue any fractional Shares pursuant to the Plan. The Committee may provide for
the elimination of fractions or the settlement of fractional Shares in cash. 
  
 Article 12. Indemnification 
  
 Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including without limitation reasonable
attorneys’ fees) that may be imposed upon or reasonably incurred by him in connection with or resulting from any claim, action, suit, or proceeding to which he may be a party or in which he may be involved by reason of any action taken or
failure to act under the Plan and against and from any and all amounts paid by him in settlement thereof, with the Company’s approval, or paid by him in satisfaction of any judgment in any such action, suit, or proceeding against him, provided
he shall give the Company an opportunity, at its own expense, to handle and defend the same before he undertakes to handle and defend it on his own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

 10 

 Article 13. Successors and Corporate Transactions 
  
 13.1 Obligation Binding on Successors. All obligations of the
Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company. 
  
 13.2 Special Provisions for Corporate Transactions. Notwithstanding any provision herein to the contrary, but except as otherwise specified in a particular Award Agreement, in the event of a Sale of the Company, the Committee
in its sole discretion may effect one or more of the following alternatives without the approval of Participants, which may vary among individual Participants and which may vary among Awards held by a Participant: (i) accelerate the time at which
outstanding Options may be exercised so that the Options may be exercised in full for a limited period of time on or before a specified date (before or after the Sale of the Company) fixed by the Committee, after which all unexercised Options and
all rights of Participants thereunder will terminate; (ii) require the mandatory surrender to the Company by selected Participants of some or all of the outstanding Options held by the Participants (irrespective of whether the Options then
outstanding are exercisable) as of a date before or after the Sale of the Company, specified by the Committee, in which event the Committee will cancel the Options and the Company will pay to each Participant a per Share cash amount equal to the
excess, if any, of the Fair Market Value of the Shares subject to the Option over the applicable Option Price; (iii) with the agreement of the successor corporation (or an affiliate of the successor corporation), outstanding Options will be assumed
or equivalent options or rights will be substituted by the successor corporation (or an affiliate of the successor corporation) for the outstanding Options; (iv) accelerate the vesting of any outstanding Awards of Restricted Stock or Restricted
Stock Units; (v) consider any restricted periods or restrictions on outstanding Shares of Restricted Stock or Restricted Stock Units to have lapsed; or (vi) make any other adjustments to outstanding Awards as the Committee deems appropriate to
reflect the Sale of the Company (provided, however, that the Committee may determine that no adjustment is appropriate). 
  
 Article 14. Legal Construction 
  
 14.1 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the
plural shall include the singular and the singular shall include the plural. 
  
 14.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan
shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 14.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. 
  

 11 

 14.4 Governing Law. To the extent not governed by Federal law, the Plan, and all agreements
hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware. 
  
 14.5 Jurisdiction. To the maximum extent permitted by law, the Company and each Participant hereby irrevocably agree that any legal action
or proceeding arising out of or relating to the Plan or any agreements or transactions contemplated hereby may be brought in the courts of the State of Texas or of the United States of America for the Northern District of Texas and hereby expressly
submit to the personal jurisdiction and venue of such courts for the purposes thereof and expressly waive any claim of improper venue and any claim that such courts are an inconvenient forum. To the maximum extent permitted by law, the Company and
each Participant hereby irrevocably consent to the service of process of any of the aforementioned courts in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to the address set
forth in the Company’s records, such service to become effective six (6) days after such mailing. 
  

 12 

 REPUBLIC STOCK PLAN 
  
 STOCK OPTION AWARD AGREEMENT 
  

											
	 GRANTED
 TO

	 	 GRANT
 DATE

	 	 EXPIRATION
 DATE

	  	 NUMBER
 OF SHARES

	  	 OPTION
PRICE
 PER SHARE

	  	SOCIAL
SECURITY
NUMBER

	 	 	 	 	 	  	 	  	 	  	 

  
 This Stock Option Award Agreement,
including all Exhibits hereto (the “Agreement”), is made between Republic Companies Group, Inc., a Delaware corporation (the “Company”), and you, an officer, director, consultant, insurance or other agent, or key employee of the
Company or a subsidiary of the Company. 
  
 The Company sponsors the Republic
Stock Plan (the “Plan”). A copy of the Plan is attached as Exhibit A. The terms and provisions of the Plan are incorporated herein by reference. When used herein, the terms defined in the Plan have the meanings given to them in the Plan;
the word “or” means “and/or”; and the word “including” or its derivatives means “including without limitation.” 
  
 In recognition of the value of your contributions to the Company, you and the Company mutually covenant and agree as follows: 
  

	1.	Subject to the terms and conditions of the Plan and this Agreement, the Company grants to you the Option to purchase from the Company the above-stated number of shares of the Class
B Non-Voting Common Stock of the Company (the “Shares”) at the Option Price per Share stated above. This Option is intended to be a Nonqualified Stock Option [Incentive Stock Option]. By signing this Agreement you acknowledge having
read the Plan and agree to be bound by all of the terms and conditions of the Plan and this Agreement. 

  

	2.	This Option vests as described on Exhibit B attached hereto and incorporated herein by reference. No unvested portion of the Option may be exercised. The vested portion of the
Option is exercisable only upon the earliest to occur of your Termination or the Sale of the Company. (As stated in Exhibit B, you forfeit all rights to any unvested Options immediately upon your Termination.) The manner of exercising the Option and
the method for paying the applicable Option Price shall be as set forth in the Plan. Any applicable withholding taxes must also be paid by you in accordance with the Plan. Shares issued upon exercise of the Option shall be issued solely in your
name. 

  

	3.	In the event of your Termination, for any reason, including death, disability, termination by the Company or your resignation, your right to exercise your Option shall expire on the
earlier of the Expiration Date stated above or the date which is 90 days following the date of your Termination. 

  
 In addition to and notwithstanding the foregoing, no Option may be exercised more than 30 days after the Sale of the Company. 
  
 If the Option is exercisable following your death, the Option shall be
exercisable by such person empowered to do so under your will, or if you fail to make a testamentary disposition of the Option or shall have died intestate, by your executor or other legal representative. 
  

	4.	You agree that you shall comply with (or provide adequate assurance as to future compliance with) all applicable securities laws and income tax laws as determined by the Company
and, if requested by the Company, you shall execute a supplement for purposes of making you a party to the Investor Rights Agreement among RTXA, Inc. (now known as Republic Companies Group, Inc.) and other parties thereto dated May 9, 2003 (as
amended, the “Investor Rights Agreement”), as conditions precedent to your exercise of the Option pursuant to this Agreement. In addition, you agree that, upon request, you will furnish a letter agreement providing that you will (i) not
distribute or resell in violation of the Securities Act of 1933, as amended, any of the Shares acquired upon your exercise of the Option, (ii) indemnify and hold the Company harmless against all liability for any such violation and (iii) accept all
liability for any such violation. You agree that you will not distribute or resell such Shares until the Company, in its sole discretion, determines that such Shares may be transferred and notifies you of such determination. You further agree not to
convert any of such Shares into shares of the Company’s Class A Voting Common Stock. 

  

	5.	Transfer Restrictions. 

  
 (a) You shall not sell, assign, convey, donate, transfer or otherwise dispose of, or contract to do any of the foregoing (collectively,
“Transfer”), any and all Shares acquired upon your exercise of the Option without the prior written approval of the Company, except that you may Transfer all or any portion of such Shares to any of your spouse, your children, the spouse of
your children, your grandchildren or your parent, or any trust created for the benefit of any of the foregoing (each a “Permitted Transferee”), if and only if, in each case (A) you retain exclusive control of, and continue to exercise, all
voting and consent rights with respect to any such Shares Transferred to a Permitted Transferee pursuant to a proxy in form reasonably satisfactory to the Board of Directors of the Company, or as trustee of any trust to which such Shares are
Transferred, (B) any trust to which such Shares are transferred does not require or permit distribution of such Shares during the term of the Investor Rights Agreement and (C) the Permitted Transferee agrees in writing to be bound by the provisions
of the Investor Rights 

  

 2 

 
Agreement (if requested by the Company) and this Agreement; provided, that you shall (i) provide prior written notice to the Company of such proposed
Transfer (ii) if requested by the Board, provide an opinion of counsel, in form and substance reasonably satisfactory to the Board, that such Transfer will not require registration of any such Company Securities under the Securities Act and (iii)
cooperate with the Company (and the Company shall cooperate with such Stockholder) to make any Form A filings and other insurance regulatory filings as may be required in connection with such Transfer. 
  
 (b) Upon any Involuntary Transfer (as defined below) of any
of such Shares, you (or your personal representative, if applicable) shall promptly, but in any event within thirty (30) days after such Involuntary Transfer, give written notice to the Company, with a copy to the Person to whom the Transfer was
made (the “Involuntary Transferee”), stating that the Involuntary Transfer occurred, the reason therefor, the date of the Involuntary Transfer, the name and address of the Involuntary Transferee and the type and amount of Shares acquired
by such Person. Upon receipt of such written notice by the Company, the Company shall have the option, for a period of 180 days after receipt of such notice, to purchase all, but not less than all, of the Shares subject to the Involuntary Transfer
at a price equal to the Fair Market Value of such shares as of the date of the Involuntary Transfer. 
  
 “Involuntary Transfer” means any sale, assignment, conveyance, donation, transfer or other disposition of, or contract to do any
of the foregoing (collectively, “Transfer”), proceeding or action (other than a forfeiture in accordance with the vesting provisions hereof or a Transfer pursuant to Paragraphs 5(a), 6 or 7 of this Agreement) by or in which you shall be
deprived or divested of any right, title or interest in or to such Shares, including any seizure under levy of attachment or execution, any Transfer in connection with a foreclosure upon a pledge, any Transfer in connection with bankruptcy (whether
pursuant to the filing of a voluntary or an involuntary petition under the Federal Bankruptcy Code of 1978, or any modifications or revisions thereto) or other court proceeding to a debtor-in-possession, trustee in bankruptcy or receiver or other
officer or agency, any Transfer to a state or to a public officer or agency pursuant to any statute pertaining to escheat or abandoned property, any Transfer pursuant to a separation agreement or divorce, equitable or community or marital property
distribution, judicial decree or other court order relating to the division or partition of property between spouses or any Transfer, in case of your death, by will or by the laws of intestate succession to your executors, administrators,
testamentary trustees, legatees or beneficiaries. 
  
 (c) If any Transfer is made or attempted contrary to the provisions of this Agreement, such purported Transfer shall be null and void, and the Company shall refuse to record such purported Transfer and shall not recognize any purported
transferee as a stockholder for any purpose. 
  

 3 

	6.	In connection with an Approved Sale (as defined below) of the Company, you shall (i) consent to, vote for and raise no objections against the Approved Sale or the process pursuant
to which the Approved Sale is arranged, (ii) waive any dissenters’ or appraisal rights and all other rights with respect to the Approved Sale under the Delaware General Corporation Law and (iii) agree to sell all Shares acquired upon exercise
of the Option on the terms and conditions thereof. You shall take all reasonably necessary and desirable actions in connection with the consummation of any Approved Sale, including the execution of such agreements and instruments and other actions
reasonably necessary to (A) provide such representations, warranties, indemnities, covenants, conditions, escrow agreements and other provisions and agreements relating to such Approved Sale as are customary in transactions of a similar nature and
(B) effectuate the allocation and distribution of the aggregate consideration upon the Approved Sale. 

  
 “Approved Sale” means a Sale of the Company (a) approved by any two of Banc of America Capital Investors SBIC I, L.P., Greenhill
Capital Partners, L.P. (or an affiliate thereof as designated by the holders of a majority of the common stock held by it and its affiliates) or Brazos Equity Fund 2000, L.P. (collectively the “Sponsors”) and (b) pursuant to which any
independent third party or affiliated group of independent third parties proposes to acquire, in one or more related transactions, (i) at least 80% of the common stock of the Company (whether by merger, consolidation, share exchange or other
Transfer of the Company’s capital stock) or (ii) all or substantially all of the Company’s assets. 
  

	7.	Repurchase Rights. 

  
 (a) For a period (the “Call Period”) of one hundred eighty (180) days immediately following the date on which your employment
with the Company or any of its Subsidiaries is terminated, the Company shall have the right, but not the obligation, to purchase from you, and upon the exercise of such right by the Company, you shall be obligated to sell to the Company all Shares
acquired upon exercise of the Option on the following terms: 
  
 (i) if Cause (as defined below) existed for your Termination, the purchase price shall be equal to $0.01 per share (as adjusted for any stock split, stock dividend or equivalent transaction); or 
  
 (ii) in the event of any Termination for any reason other
than as set forth in clause (i) above (including death or disability), the purchase price shall be the Fair Market Value of such Shares as of the date of your Termination. 
  
 For purposes of this Agreement, “Cause” shall be defined as that term is defined in your offer letter or other
applicable employment agreement with the Company or its subsidiaries. If there is no such definition or you 

  

 4 

 
do not have an offer, employment or other contract with the Company or its subsidiaries which defines the term, Cause means your (i) conviction for, or plea
of nolo contendere to, a felony or a crime involving moral turpitude, (ii) commission of an act, injurious to the Company, or of personal dishonesty or fraud in connection with your service for the Company as determined by the Board, (iii)
commission of an act which the Board finds to have involved your willful misconduct or gross negligence in the conduct of your duties for the Company, (iv) habitual absenteeism, chronic alcoholism or any other form of addiction which adversely
affects your ability to perform your duties and obligations for the Company or any of its subsidiaries, or (v) breach, after reasonable notice and opportunity to cure, of any material provision of any agreement with the Company or its subsidiaries
to which you or your employer is a party or of any written employment or other policy of the Company or its subsidiaries. 
  
 (b) The Company may exercise such right by delivering to you a written notice to such effect (the “Call Notice”) or, if
applicable, to your personal or succession representative, as the case may be, prior to the expiration of the Call Period. 
  
 (c) The closing for the repurchase of such Shares under this Paragraph 7 shall take place on such date as determined by the Board, but no
later than sixty (60) business days after the delivery of the Call Notice. The closing of such repurchase shall take place at the principal place of business of the Company at 10:00 a.m., local time, or at such other place and time as the parties to
such repurchase may mutually agree in writing. At the closing: 
  
 (i) you shall execute and deliver to the Company such documents, certificates and other papers as the Company may reasonably require to effect the transfer and conveyance by assignment of absolute title to the Company
of such Shares free and clear of all liens (other than restrictions imposed pursuant to applicable federal and state securities laws, hereby and by the Investor Rights Agreement, to the extent such restrictions do not relate to any breach or default
by you thereunder) of all Persons whomsoever and such party shall so represent and warrant; 
  
 (ii) the Company shall purchase such Shares and pay the applicable purchase price therefor; and 
  
 (iii) both you and the Company shall covenant to execute all
such documents and take all such further action as may be necessary to effect the provisions of, and transactions described in and contemplated by, the applicable provisions of this Paragraph. 
  

 5 

	8.	By executing and returning the Beneficiary Designation Form attached as Exhibit C, you may designate a beneficiary to receive any Shares acquired upon exercise of the Option in the
event of your death while in service with the Company or its subsidiaries. If you do not designate a beneficiary or if your designated beneficiary does not survive you, then your beneficiary will be your estate. 

  

	9.	The existence of this Option shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or
otherwise affecting the Company common stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise. 

  

	10.	Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, fax or mail to such
address and directed to such person(s) as the Committee may select from time to time and to you, at your address as shown on the records of the Company from time to time, or at such other address as you, by notice to the Committee, may designate in
writing from time to time. 

  

	11.	Regardless of any action the Company, its subsidiaries or your employer takes with respect to any or all income tax, payroll tax or other tax-related withholding (“Tax-Related
Items”), you acknowledge that the ultimate liability for all Tax-Related Items owed by you is and remains your responsibility and that the Company and/or your employer (i) makes no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the Option grant, including the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends and (ii) does not commit
to structure the terms of the grant or any aspect of the Option to reduce or eliminate your liability for Tax-Related Items. 

  
 Prior to exercise of the Option, you shall pay or make adequate arrangements satisfactory to the Company to satisfy all withholding obligations of the
Company. In this regard, you authorize the Company to withhold all applicable Tax-Related Items legally payable by you from your wages or other cash compensation paid to you by the Company or from proceeds of the sale of the Shares. Alternatively,
or in addition, to the extent permissible under applicable law, the Company may (i) sell or arrange for the sale of Shares that you acquire to meet the withholding obligation for Tax-Related Items, and/or (ii) withhold in Shares, provided that the
Company only withholds the amount of Shares necessary to satisfy the minimum withholding amount. Finally, you shall pay to the Company any amount of Tax-Related Items that the Company may be required to withhold as a result of your participation in
the Plan or your purchase of Shares that cannot be satisfied by the 

  

 6 

 
means previously described. The Company may refuse to honor the exercise and refuse to deliver the Shares if you fail to comply with your obligations in
connection with the Tax-Related Items as described in this Paragraph 11. 
  

	12.	In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Agreement, and
the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. This Agreement constitutes the final understanding between you and the Company regarding the Option. Any prior agreements, commitments or
negotiations concerning the Option are superseded. 

  

	13.	The Agreement may be modified only by written agreement between you, your beneficiaries or other legal representatives, as applicable, and the Company. 

  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and you have hereunto set your hand and seal, all effective as of the Grant Date stated above. 
  

									
	 REPUBLIC COMPANIES GROUP, INC.
	 	 	 	 OPTION HOLDER

					
	By:	 	 	 	 	 	By:	 	 
					
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 	 	 

  
 [SEAL] 
  

 7 

 Exhibit B 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Vesting of Stock Options 
  
 (a) Vesting Schedule. The Option shall become vested in five annual installments if you continue to perform services for the Company and its
subsidiaries through each of the vesting dates as follows: 
  

			
	 Vesting Date

	  	 Number of Options that become Vested

	 1st
anniversary of award
	  	one-fifth (1/5) of Shares covered by Option
	 2nd
anniversary of award
	  	one-fifth (1/5) of Shares covered by Option
	 3rd
anniversary of award
	  	one-fifth (1/5) of Shares covered by Option
	 4th
anniversary of award
	  	one-fifth (1/5) of Shares covered by Option
	 5th
anniversary of award
	  	one-fifth (1/5) of Shares covered by Option

  
 Notwithstanding the
foregoing provisions of this Agreement, the Option shall become 100% vested upon a Sale of the Company if and only if the Investors receive cash payments (whether pursuant to dividends, sale proceeds or otherwise) sufficient to realize an Investor
Return of at least 30%. For purposes of this Paragraph, “Investor Return” as of the date of a Sale of the Company means the annual compounded pre-tax internal rate of return on the aggregate amount of funds invested by the Investors in
debt and equity securities or instruments of the Company and its subsidiaries through the date of determination, assuming vesting and exercise of all options outstanding as of such date (after giving effect to different dates of investment, if any,
and after giving effect to any dilution of such securities or instruments arising in connection with such Sale of the Company). 
  
 (b) Termination Prior to Full Vesting. If your Termination occurs prior to any of the above vesting date(s) for any reason, including death,
disability, termination by the Company or your resignation, then all unvested Options shall be immediately forfeited as of the date of your Termination. 
  

 i 

 Exhibit C 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Beneficiary Designation Form 
  
 Please complete this form to designate a beneficiary or beneficiaries or change your current beneficiary designation for Shares of Restricted Stock acquired upon exercise
of the Option awarded to you under the Republic Stock Plan (the “Plan”). Completed forms should be returned to Michael E. Ditto, Corporate Secretary. 
  

******************************************************************************* 
  
 With respect to the Shares of Restricted Stock acquired upon exercise of the Option awarded to me under the Plan, I hereby designate the
following person(s) or entity(ies) as my beneficiary(ies) to receive such Shares in the event of my death while in service with Republic Companies Group, Inc. or its subsidiaries. 
  
 If my beneficiary(ies) named below predeceases me, any such payment will be made to my estate. 
  

					
	 Name and Address
 of Beneficiary(ies)

	  	 Social Security #

	  	 Relationship
 to Participant

			
	 	  	 	  	 
	
	  	
	  	

			
	 	  	 	  	 
	
	  	
	  	

			
	 	  	 	  	 
	
	  	
	  	

  
 I understand that I may change this
designation at any time by executing a new form and delivering it to Michael E. Ditto, Corporate Secretary, or his predecessor in office. This designation supercedes any prior beneficiary designation made by me under the Plan with respect to Shares
of Restricted Stock acquired upon exercise of the Option awarded to me under the Plan and will be effective on the date received by the Company as indicated below. 
  

					
			
	  	 	     Date: 
	 	  
	 Participant’s Signature
	 	 	 	 
			
	  	 	 	 	  
	 Participant’s Printed Name
	 	 	 	 

  
 Received on this
             day of
                                ,
20            . 
  

			
		
	By:	 	 

  

 ii 

 REPUBLIC STOCK PLAN 
  
 SENIOR EXECUTIVE RESTRICTED STOCK AWARD AGREEMENT 
  

									
	 GRANTED TO

	 	 GRANT DATE

	 	 NUMBER OF SHARES

	  	FAIR MARKET VALUE
PER SHARE

	  	SOCIAL SECURITY
NUMBER

	 	 	 	 	 	  	 	  	 

  
 This Senior Executive Restricted Stock
Award Agreement, including all Exhibits hereto (the “Agreement”), is made between Republic Companies Group, Inc., a Delaware corporation (the “Company”), and you, an officer, director, consultant, insurance or other agent, or key
employee of the Company or a subsidiary of the Company. 
  
 The Company sponsors
the Republic Stock Plan (the “Plan”). A copy of the Plan is attached as Exhibit A. The terms and provisions of the Plan are incorporated herein by reference. When used herein, the terms defined in the Plan have the meanings given to them
in the Plan; the word “or” means “and/or”; and the word “including” or its derivatives means “including without limitation.” 
  
 The Shares of Restricted Stock covered by this Agreement are being awarded to you subject to the following terms and provisions: 

 

	1.	Subject to the terms and conditions of the Plan and this Agreement, the Company awards to you the number of Shares of Restricted Stock shown above. 

  

	2.	You acknowledge having read and agree to be bound by all the terms and conditions of the Plan and this Agreement. 

  

	3.	The Shares of Restricted Stock covered by this Award become vested in the amounts and on the dates shown on the attached Exhibit B. The certificates for the Shares shall be held by
the Company until the Shares are both 100% vested and the Company, in its sole discretion, decides that the Shares are transferable. 

  

	4.	You shall have the right to receive Board-declared dividends in cash on the Shares prior to their vesting. 

  

	5.	 You agree that you shall comply with (or provide adequate assurance as to future compliance with) all applicable securities laws and income tax laws as determined
by the Company, and, if requested by the Company, you shall execute a supplement for purposes of making you a party to the Investor Rights Agreement among RTXA, Inc. (now known as Republic Companies Group, Inc.) and other parties thereto dated May
9, 2003 (as amended, the “Investor Rights Agreement”), as conditions precedent to the release of any 

  

	 	 
Shares pursuant to this Agreement. In addition, you agree that, upon request, you will furnish a letter agreement providing that you will (i) not distribute
or resell any of said Shares in violation of the Securities Act of 1933, as amended, (ii) indemnify and hold the Company harmless against all liability for any such violation and (iii) accept all liability for any such violation. You further agree
that you will not distribute or resell any Shares granted to you under this Agreement until the Company, in its sole discretion, determines that such Shares may be transferred and notifies you of such determination. You further agree not to convert
any of the Shares granted to you under this Agreement into shares of the Company’s Class A Voting Common Stock. 

  

	6.	Transfer Restrictions. 

  
 (a) You shall not sell, assign, convey, donate, transfer or otherwise dispose of, or contract to do any of the foregoing (collectively,
“Transfer”), any Shares acquired under this Agreement without the prior written approval of the Company, except that you may Transfer all or any portion of your vested Shares to any of your spouse, your children, the spouse of your
children, your grandchildren or your parent, or any trust created for the benefit of any of the foregoing (each a “Permitted Transferee”), if and only if, in each case (A) you retain exclusive control of, and continue to exercise, all
voting and consent rights with respect to any such Shares Transferred to a Permitted Transferee pursuant to a proxy in form reasonably satisfactory to the Board of Directors of the Company, or as trustee of any trust to which such Shares are
Transferred, (B) any trust to which such Shares are transferred does not require or permit distribution of such Shares during the term of the Investor Rights Agreement and (C) the Permitted Transferee agrees in writing to be bound by the provisions
of the Investor Rights Agreement (if requested by the Company) and this Agreement; provided, that you shall (i) provide prior written notice to the Company of such proposed Transfer (ii) if requested by the Board, provide an opinion of
counsel, in form and substance reasonably satisfactory to the Board, that such Transfer will not require registration of any such Company Securities under the Securities Act and (iii) cooperate with the Company (and the Company shall cooperate with
such Stockholder) to make any Form A filings and other insurance regulatory filings as may be required in connection with such Transfer. 
  
 (b) Upon any Involuntary Transfer (as defined below) of any of your Shares, you (or your personal representative, if applicable) shall
promptly, but in any event within thirty (30) days after such Involuntary Transfer, give written notice to the Company, with a copy to the Person to whom the Transfer was made (the “Involuntary Transferee”), stating that the Involuntary
Transfer occurred, the reason therefor, the date of the Involuntary Transfer, the name and address of the Involuntary Transferee and the type and amount of Shares acquired by such Person. Upon receipt of such written notice by the Company, the
Company shall have the option, for a period of 180 days after receipt of such notice, to purchase all, but not less than all, of the Shares subject to the Involuntary Transfer at a price equal to the Fair Market Value of such shares as of the date
of the Involuntary Transfer. 
  

 2 

 “Involuntary Transfer” means any sale, assignment, conveyance, donation,
transfer or other disposition of, or contract to do any of the foregoing (collectively, “Transfer”), proceeding or action (other than a forfeiture in accordance with the vesting provisions hereof or a Transfer pursuant to Paragraphs 6(a),
7 or 8 of this Agreement) by or in which you shall be deprived or divested of any right, title or interest in or to your Shares, including any seizure under levy of attachment or execution, any Transfer in connection with a foreclosure upon a
pledge, any Transfer in connection with bankruptcy (whether pursuant to the filing of a voluntary or an involuntary petition under the Federal Bankruptcy Code of 1978, or any modifications or revisions thereto) or other court proceeding to a
debtor-in-possession, trustee in bankruptcy or receiver or other officer or agency, any Transfer to a state or to a public officer or agency pursuant to any statute pertaining to escheat or abandoned property, any Transfer pursuant to a separation
agreement or divorce, equitable or community or marital property distribution, judicial decree or other court order relating to the division or partition of property between spouses or any Transfer, in case of your death, by will or by the laws of
intestate succession to your executors, administrators, testamentary trustees, legatees or beneficiaries. 
  
 (c) If any Transfer is made or attempted contrary to the provisions of this Agreement, such purported Transfer shall be null and void and
the Company shall refuse to record such purported Transfer and shall not recognize any purported transferee as a stockholder for any purpose. 
  

	7.	In connection with an Approved Sale (as defined below) of the Company, you shall (i) consent to, vote for and raise no objections against the Approved Sale or the process pursuant
to which the Approved Sale is arranged, (ii) waive any dissenters’ or appraisal rights and all other rights with respect to the Approved Sale under the Delaware General Corporation Law and (iii) agree to sell all of your vested Shares on the
terms and conditions thereof. You shall take all reasonably necessary and desirable actions in connection with the consummation of any Approved Sale, including the execution of such agreements and instruments and other actions reasonably necessary
to (A) provide such representations, warranties, indemnities, covenants, conditions, escrow agreements and other provisions and agreements relating to such Approved Sale as are customary in transactions of a similar nature and (B) effectuate the
allocation and distribution of the aggregate consideration upon the Approved Sale. 

  
 “Approved Sale” means a Sale of the Company (a) approved by any two of Banc of America Capital Investors SBIC I, L.P., Greenhill
Capital Partners, L.P. (or an affiliate thereof as designated by the holders of a majority of the common stock held by it and its affiliates) or Brazos Equity Fund 2000, L.P. (collectively the “Sponsors”) and (b) pursuant to which any
independent third party or affiliated group of independent third parties proposes to acquire, in one or more related transactions, (i) at least 80% of the common stock of the Company (whether by merger, consolidation, share exchange or other
Transfer of the Company’s capital stock) or (ii) all or substantially all of the Company’s assets. 
  

 3 

	8.	Repurchase Rights. 

  
 (a) For a period (the “Call Period”) of one hundred eighty (180) days immediately following the date on which your employment
with the Company or any of its Subsidiaries is terminated, the Company shall have the right, but not the obligation, to purchase from you, and upon the exercise of such right by the Company, you shall be obligated to sell to the Company all of your
vested Shares on the following terms: 
  
 (i) if
Cause (as defined below) existed for your Termination or you resigned without Good Reason, the purchase price shall be equal to $0.01 per share (as adjusted for any stock split, stock dividend or equivalent transaction); or 
  
 (ii) in the event of any Termination for any reason other
than as set forth in clause (i) above (including death or disability), the purchase price shall be the Fair Market Value of such Shares as of the date of your Termination. 
  
 For purposes of this Agreement, “Cause” shall be defined as that term is defined in your offer letter or other
applicable employment agreement with the Company or its subsidiaries. If there is no such definition or you do not have an offer, employment or other contract with the Company or its subsidiaries which defines the term, Cause means your (i)
conviction for, or plea of nolo contendere to, a felony or a crime involving moral turpitude, (ii) commission of an act, injurious to the Company, or of personal dishonesty or fraud in connection with your service for the Company as determined by
the Board, (iii) commission of an act which the Board finds to have involved your willful misconduct or gross negligence in the conduct of your duties for the Company, (iv) habitual absenteeism, chronic alcoholism or any other form of addiction
which adversely affects your ability to perform your duties and obligations for the Company or any of its subsidiaries, or (v) breach, after reasonable notice and opportunity to cure, of any material provision of any agreement with the Company or
its subsidiaries to which you are a party or of any written employment or other policy of the Company or its subsidiaries. 
  
 For purposes of this Agreement, “Good Reason” shall be defined as that term is defined in your offer letter or other applicable employment
agreement with the Company or its subsidiaries. If there is no such definition or you do not have an offer, employment or other contract with the Company or its subsidiaries, Good Reason means the occurrence of any of the following events: (i) a
material diminution in your status, title, position or responsibilities or (ii) your principal place of work being relocated by a distance of 100 miles or more from the location at which you worked immediately prior to the date of this
Agreement. 
  
 (b) The Company may
exercise such right by delivering to you a written notice to such effect (the “Call Notice”) or, if applicable, to your personal or succession representative, as the case may be, prior to the expiration of the Call Period. 
  

 4 

 (c) The closing for the repurchase of your Shares under this Paragraph 8 shall take place
on such date as determined by the Board, but no later than sixty (60) business days after the delivery of the Call Notice. The closing of such repurchase shall take place at the principal place of business of the Company at 10:00 a.m., local time,
or at such other place and time as the parties to such repurchase may mutually agree in writing. At the closing: 
  
 (i) you shall execute and deliver to the Company such documents, certificates and other papers as the Company may reasonably require to
effect the transfer and conveyance by assignment of absolute title to the Company of your Shares free and clear of all liens (other than restrictions imposed pursuant to applicable federal and state securities laws, hereby and by the Investor Rights
Agreement, to the extent such restrictions do not relate to any breach or default by you thereunder) of all Persons whomsoever and such party shall so represent and warrant; 
  
 (ii) the Company shall purchase your Shares and pay the applicable purchase price therefor; and 

 
 (iii) both you and the Company shall covenant to execute
all such documents and take all such further action as may be necessary to effect the provisions of, and transactions described in and contemplated by, the applicable provisions of this Paragraph. 
  

	9.	By executing and returning the Beneficiary Designation Form attached as Exhibit C, you may designate a beneficiary to receive any Shares awarded hereunder in the event of your death
while in service with the Company or its subsidiaries. If you do not designate a beneficiary or if your designated beneficiary does not survive you, then your beneficiary will be your estate. 

  

	10.	You acknowledge and agree that upon any Termination resulting in the forfeiture of any unvested Shares in accordance with Paragraph 3 and Exhibit B of this Agreement or otherwise in
accordance with the Plan, (i) your right to receive dividends on, and all other rights, title or interest in, to or with respect to, unvested Shares shall automatically, without further act, terminate and (ii) the unvested Shares shall be returned
to the Company. You hereby irrevocably appoint (which appointment is coupled with an interest) the Company as your agent and attorney-in-fact to take any necessary or appropriate action to cause the Shares to be returned to the Company, including
without limitation executing and delivering stock powers and instruments of transfer, making endorsements and/or making, initiating or issuing instructions or entitlement orders, all in your name and on your behalf. You hereby ratify and approve all
acts done by the Company as such attorney-in-fact. Without limiting the foregoing, you expressly acknowledge and agree that any transfer agent for the Shares is fully authorized and protected in relying on, and shall incur no liability in acting on,
any documents, instruments, endorsements, instructions, orders or communications from the Company in connection with the Shares or the transfer thereof, and that any such transfer agent is a third party beneficiary of this Agreement.

  

 5 

	11.	The existence of this Award shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or
otherwise affecting the Company common stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise. 

  

	12.	Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, fax or mail to such
address and directed to such person(s) as the Committee may select from time to time and to you, at your address as shown on the records of the Company from time to time, or at such other address as you, by notice to the Committee, may designate in
writing from time to time. 

  

	13.	Regardless of any action the Company, its subsidiaries or your employer takes with respect to any or all income tax, payroll tax or other tax-related withholding (“Tax-Related
Items”), you acknowledge that the ultimate liability for all Tax-Related Items owed by you is and remains your responsibility and that the Company and/or your employer (i) makes no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the grant of Shares of Restricted Stock, including the grant and vesting of the Shares, the subsequent sale of Shares, and the receipt of any dividends and (ii) does not commit to structure the
terms of the grant or any aspect of the Shares of Restricted Stock to reduce or eliminate your liability for Tax-Related Items. 

  
 In the event the Company determines that it and/or your employer must withhold any Tax-Related Items as a result of your participation in the Plan, you
agree as a condition of the grant of the Shares of Restricted Stock to make arrangements satisfactory to the Company and/or your employer to enable it to satisfy all withholding requirements, including, but not limited to, withholding any applicable
Tax-Related Items from the vesting and delivery of the Shares. In addition, you authorize the Company and/or your employer to fulfill its withholding obligations by all legal means, including, but not limited to: (i) withholding Tax-Related Items
from your wages, salary or other cash compensation the Company and/or your employer pays to you; (ii) withholding Tax-Related Items from the cash proceeds, if any, received upon sale of any Shares; and (iii) at the time of vesting, withholding
Shares sufficient to meet minimum withholding obligations for Tax-Related Items. The Company may refuse to deliver Shares if you fail to comply with any withholding obligation. 
  

	14.	 Regardless of any action the Company, its subsidiaries or your employer takes with respect to the filing of any Elections to Include Value of Restricted Property in
Gross Income in Year of Transfer pursuant to the provisions of Section 83(b) of the Internal Revenue Code and applicable Treasury Regulations (the “83(b) Elections”), you acknowledge that the ultimate liability for the filing of any 83(b)
Elections is and remains your responsibility 

  

 6 

	 	 
and that the Company and/or your employer makes no representations or undertakings regarding such filings in connection with any aspect of the grant of
Shares of Restricted Stock. A form for making an 83(b) Election is attached as Exhibit D. 

  

	15.	In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Agreement, and
the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. This Agreement constitutes the final understanding between you and the Company regarding the Shares of Restricted Stock. Any prior
agreements, commitments or negotiations concerning the Shares of Restricted Stock are superseded. 

  

	16.	This Agreement may be modified only by written agreement between you, your beneficiaries or other legal representatives, as applicable, and the Company. 

  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and you have hereunto set your hand, all effective as of the Grant Date listed above. 
  

									
	 REPUBLIC COMPANIES GROUP, INC.
	 	 	 	 SHAREHOLDER

					
	By:	 	 	 	 	 	By:	 	 
	 	 	 Parker W. Rush
	 	 	 	 	 	 
	 	 	 President & Chief Executive Officer
	 	 	 	 Printed Name:_________________________________________

  

 7 

 Exhibit B 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Vesting of Restricted Stock 
  
 (a) Vesting Schedule. Subject to the provisions of paragraph (b) below, the Shares of Restricted Stock shall be vested in five equal annual
installments if you continue to perform services for the Company and its subsidiaries through each of the vesting dates as follows: 
  

			
	 Vesting Date

	  	 Number of Shares of
Restricted Stock that
Become Vested and Earned

	 1st anniversary of Grant Date
	  	 one-fifth (1/5) of award

	 2nd anniversary of Grant Date
	  	 one-fifth (1/5) of award

	 3rd anniversary of Grant Date
	  	 one-fifth (1/5) of award

	 4th anniversary of Grant Date
	  	 one-fifth (1/5) of award

	 5th anniversary of Grant Date
	  	 one-fifth (1/5) of award

  
 The Grant Date is
specified on page 1 of your Senior Executive Restricted Stock Award Agreement. 
  
 (b) Termination Prior to Full Vesting. If your Termination occurs prior to any of the above vesting date(s), then all unvested Shares of Restricted Stock shall become vested or be forfeited depending on the
reason for Termination as follows: 
  

	 	(i)	Death or Total Disability. Any unvested Shares of Restricted Stock shall become immediately vested as of the date of your Termination if your Termination is due to your death
or Total Disability. “Total Disability” means 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 you from performing the services described of you in your offer letter or other applicable employment agreement with the Company or its subsidiaries. (Shares will be delivered as soon as administratively practicable following the later of
the date of your Termination and the date on which the Company determines the Shares are transferable.) 

  

	 	(ii)	 Temporary Disability. If your Termination is due to your Temporary Disability, then any unvested and/or nontransferable Shares of Restricted Stock shall be
immediately forfeited as of the date of your Termination. “Temporary Disability” means a physical or mental condition which substantially prevents you from performing the services described of you in your offer letter or other applicable

  

 i 

	 	 
employment agreement with the Company or its subsidiaries, but which does not constitute a Total Disability. 

  

	 	(iii)	Termination by the Company. If your Termination is by the Company (regardless of whether or not there is Cause for such Termination), then any unvested and/or nontransferable
Shares of Restricted Stock shall be immediately forfeited as of the date of your Termination. 

  

	 	(iv)	Resignation. If your Termination is by your resignation, then any unvested Shares of Restricted Stock shall be immediately forfeited as of the date of your Termination.
(Shares that are vested but nontransferable will be delivered as soon as administratively practicable following the later of the date of your Termination and the date on which the Company determines the Shares are transferable.)

  
 (c) Vesting After a Sale of the Company.
Notwithstanding the foregoing provisions of this Agreement, the Shares of Restricted Stock shall become 100% vested and transferable upon a Sale of the Company if and only if the Sponsors receive cash payments (whether pursuant to dividends, sale
proceeds or otherwise) sufficient to realize an Investor Return of at least 30%. For purposes of this paragraph, “Investor Return” as of the date of a Sale of the Company means the annual compounded pre-tax internal rate of return on the
aggregate amount of funds invested by the Sponsors in debt and equity securities or instruments of the Company and its subsidiaries through the date of determination, assuming vesting and exercise of all options outstanding as of such date (after
giving effect to different dates of investment, if any, and after giving effect to any dilution of such securities or instruments arising in connection with such Sale of the Company). 
  
 (d) Transferability of Shares. Regardless of whether the Shares of Restricted Stock have vested as otherwise provided
in this Exhibit B, Shares are nontransferable until the later of the date they become 100% vested and the date the Company, in its sole discretion, determines that such Shares may be transferred and notifies you of such determination. 
  

 ii 

 Exhibit C 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Beneficiary Designation Form 
  
 Please complete this form to designate a beneficiary or beneficiaries or change your current beneficiary designation for Shares of Restricted Stock awarded to you under
the Republic Stock Plan (the “Plan”). Completed forms should be returned to [Name and Address]. 
  
 ************************************************************************************* 
  
 With respect to the Shares of Restricted Stock vested and transferable awarded to me under the Plan, I hereby designate the following person(s) or entity(ies) as my
beneficiary(ies) to receive such Shares in the event of my death while in service with Republic Companies Group, Inc. or its subsidiaries. 
  
 If my beneficiary(ies) named below predeceases me, any such payment will be made to my estate. 
  

					
	 Name and Address
 of Beneficiary(ies)

	  	 Social Security #

	  	 Relationship to
 Participant

	 	  	 	  	 
	
	  	
	  	

	 	  	 	  	 
	
	  	
	  	

	 	  	 	  	 
	
	  	
	  	

  
 I understand that I may change this
designation at any time by executing a new form and delivering it to Michael E. Ditto, Corporate Secretary, or his successor in office. This designation supercedes any prior beneficiary designation made by me under the Plan with respect to Shares of
Restricted Stock awarded to me under the Plan and will be effective on the date received by the Company as indicated below. 
  

					
			
	  	 	     Date: 
	 	  
	 Participant’s Signature
	 	 	 	 
			
	 	 	 	 	 
	 Participant’s Printed Name
	 	 	 	 

  
 Received on this
         day of                     ,
20            . 
  

			
		
	By:	 	 
	 	 	 

  

 REPUBLIC STOCK PLAN 
  
 RESTRICTED STOCK AWARD AGREEMENT 
  

									
	 GRANTED TO

	 	 GRANT
 DATE

	 	 NUMBER OF
 SHARES

	  	 FAIR
 MARKET
 VALUE PER
 SHARE

	  	 SOCIAL
 SECURITY
 NUMBER

	 	 	 	 	 	  	 	  	 

  
 This Restricted Stock Award Agreement,
including all Exhibits hereto (the “Agreement”), is made between Republic Companies Group, Inc., a Delaware corporation (the “Company”), and you, an officer, director, consultant, insurance or other agent, or key employee of the
Company or a subsidiary of the Company. 
  
 The Company sponsors the Republic
Stock Plan (the “Plan”). A copy of the Plan is attached as Exhibit A. The terms and provisions of the Plan are incorporated herein by reference. When used herein, the terms defined in the Plan have the meanings given to them in the Plan;
the word “or” means “and/or”; and the word “including” or its derivatives means “including without limitation.” 
  
 The Shares of Restricted Stock covered by this Agreement are being awarded to you subject to the following terms and provisions: 
  

	1.	Subject to the terms and conditions of the Plan and this Agreement, the Company awards to you the number of Shares of Restricted Stock shown above. 

  

	2.	You acknowledge having read and agree to be bound by all the terms and conditions of the Plan and this Agreement. 

  

	3.	The Shares of Restricted Stock covered by this Award become vested in the amounts and on the dates shown on the attached Exhibit B. The certificates for the Shares shall be held by
the Company until the Shares are both 100% vested and the Company, in its sole discretion, decides that the Shares are transferable. 

  

	4.	You shall have the right to receive Board-declared dividends in cash on the Shares prior to their vesting. 

  

	5.	 You agree that you shall comply with (or provide adequate assurance as to future compliance with) all applicable securities laws and income tax laws as determined
by the Company, and, if requested by the Company, you shall execute a supplement for purposes of making you a party to the Investor Rights Agreement among RTXA, Inc. (now known as Republic Companies Group, Inc.) and other parties thereto dated May
9, 2003 (as amended, the “Investor Rights Agreement”), as conditions precedent to the release of any 

  

	 	 
Shares pursuant to this Agreement. In addition, you agree that, upon request, you will furnish a letter agreement providing that you will (i) not distribute
or resell any of said Shares in violation of the Securities Act of 1933, as amended, (ii) indemnify and hold the Company harmless against all liability for any such violation and (iii) accept all liability for any such violation. You further agree
that you will not distribute or resell any Shares granted to you under this Agreement until the Company, in its sole discretion, determines that such Shares may be transferred and notifies you of such determination. You further agree not to convert
any of the Shares granted to you under this Agreement into shares of the Company’s Class A Voting Common Stock. 

  

	6.	Transfer Restrictions. 

  
 (a) You shall not sell, assign, convey, donate, transfer or otherwise dispose of, or contract to do any of the foregoing (collectively,
“Transfer”), any Shares acquired under this Agreement without the prior written approval of the Company, except that you may Transfer all or any portion of your vested Shares to any of your spouse, your children, the spouse of your
children, your grandchildren or your parent, or any trust created for the benefit of any of the foregoing (each a “Permitted Transferee”), if and only if, in each case (A) you retain exclusive control of, and continue to exercise, all
voting and consent rights with respect to any such Shares Transferred to a Permitted Transferee pursuant to a proxy in form reasonably satisfactory to the Board of Directors of the Company, or as trustee of any trust to which such Shares are
Transferred, (B) any trust to which such Shares are transferred does not require or permit distribution of such Shares during the term of the Investor Rights Agreement and (C) the Permitted Transferee agrees in writing to be bound by the provisions
of the Investor Rights Agreement (if requested by the Company) and this Agreement; provided, that you shall (i) provide prior written notice to the Company of such proposed Transfer (ii) if requested by the Board, provide an opinion of
counsel, in form and substance reasonably satisfactory to the Board, that such Transfer will not require registration of any such Company Securities under the Securities Act and (iii) cooperate with the Company (and the Company shall cooperate with
such Stockholder) to make any Form A filings and other insurance regulatory filings as may be required in connection with such Transfer. 
  
 (b) Upon any Involuntary Transfer (as defined below) of any of your Shares, you (or your personal representative, if applicable) shall
promptly, but in any event within thirty (30) days after such Involuntary Transfer, give written notice to the Company, with a copy to the Person to whom the Transfer was made (the “Involuntary Transferee”), stating that the Involuntary
Transfer occurred, the reason therefor, the date of the Involuntary Transfer, the name and address of the Involuntary Transferee and the type and amount of Shares acquired by such Person. Upon receipt of such written notice by the Company, the
Company shall have the option, for a period of 180 days after receipt of such notice, to purchase all, but not less than all, of the Shares subject to the Involuntary Transfer at a price equal to the Fair Market Value of such shares as of the date
of the Involuntary Transfer. 
  

 2 

 “Involuntary Transfer” means any sale, assignment, conveyance, donation,
transfer or other disposition of, or contract to do any of the foregoing (collectively, “Transfer”), proceeding or action (other than a forfeiture in accordance with the vesting provisions hereof or a Transfer pursuant to Paragraphs 6(a),
7 or 8 of this Agreement) by or in which you shall be deprived or divested of any right, title or interest in or to your Shares, including any seizure under levy of attachment or execution, any Transfer in connection with a foreclosure upon a
pledge, any Transfer in connection with bankruptcy (whether pursuant to the filing of a voluntary or an involuntary petition under the Federal Bankruptcy Code of 1978, or any modifications or revisions thereto) or other court proceeding to a
debtor-in-possession, trustee in bankruptcy or receiver or other officer or agency, any Transfer to a state or to a public officer or agency pursuant to any statute pertaining to escheat or abandoned property, any Transfer pursuant to a separation
agreement or divorce, equitable or community or marital property distribution, judicial decree or other court order relating to the division or partition of property between spouses or any Transfer, in case of your death, by will or by the laws of
intestate succession to your executors, administrators, testamentary trustees, legatees or beneficiaries. 
  
 (c) If any Transfer is made or attempted contrary to the provisions of this Agreement, such purported Transfer shall be null and void, and
the Company shall refuse to record such purported Transfer and shall not recognize any purported transferee as a stockholder for any purpose. 
  

	7.	In connection with an Approved Sale (as defined below) of the Company, you shall (i) consent to, vote for and raise no objections against the Approved Sale or the process pursuant
to which the Approved Sale is arranged, (ii) waive any dissenters’ or appraisal rights and all other rights with respect to the Approved Sale under the Delaware General Corporation Law and (iii) agree to sell all of your vested Shares on the
terms and conditions thereof. You shall take all reasonably necessary and desirable actions in connection with the consummation of any Approved Sale, including the execution of such agreements and instruments and other actions reasonably necessary
to (A) provide such representations, warranties, indemnities, covenants, conditions, escrow agreements and other provisions and agreements relating to such Approved Sale as are customary in transactions of a similar nature and (B) effectuate the
allocation and distribution of the aggregate consideration upon the Approved Sale. 

  
 “Approved Sale” means a Sale of the Company (a) approved by any two of Banc of America Capital Investors SBIC I, L.P., Greenhill
Capital Partners, L.P. (or an affiliate thereof as designated by the holders of a majority of the common stock held by it and its affiliates) or Brazos Equity Fund 2000, L.P. (collectively the “Sponsors”) and (b) pursuant to which any
independent third party or affiliated group of independent third parties proposes to acquire, in one or more related transactions, (i) at least 80% of the common stock of the Company (whether by merger, consolidation, share exchange or other
Transfer of the Company’s capital stock) or (ii) all or substantially all of the Company’s assets. 
  

 3 

	8.	Repurchase Rights. 

  
 (a) For a period (the “Call Period”) of one hundred eighty (180) days immediately following the date on which your employment
with the Company or any of its Subsidiaries is terminated, the Company shall have the right, but not the obligation, to purchase from you, and upon the exercise of such right by the Company, you shall be obligated to sell to the Company all of your
vested Shares on the following terms: 
  
 (i) if
Cause (as defined below) existed for your Termination, the purchase price shall be equal to $0.01 per share (as adjusted for any stock split, stock dividend or equivalent transaction); or 
  
 (ii) in the event of any Termination for any reason other
than as set forth in clause (i) above (including death or disability), the purchase price shall be the Fair Market Value of such Shares as of the date of your Termination. 
  
 For purposes of this Agreement, “Cause” shall be defined as that term is defined in your offer letter or other
applicable employment agreement with the Company or its subsidiaries. If there is no such definition or you do not have an offer, employment or other contract with the Company or its subsidiaries which defines the term, Cause means your (i)
conviction for, or plea of nolo contendere to, a felony or a crime involving moral turpitude, (ii) commission of an act, injurious to the Company, or of personal dishonesty or fraud in connection with your service for the Company as determined by
the Board, (iii) commission of an act which the Board finds to have involved your willful misconduct or gross negligence in the conduct of your duties for the Company, (iv) habitual absenteeism, chronic alcoholism or any other form of addiction
which adversely affects your ability to perform your duties and obligations for the Company or any of its subsidiaries, or (v) breach, after reasonable notice and opportunity to cure, of any material provision of any agreement with the Company or
its subsidiaries to which you are a party or of any written employment or other policy of the Company or its subsidiaries. 
  
 (b) The Company may exercise such right by delivering to you a written notice to such effect (the “Call Notice”) or, if
applicable, to your personal or succession representative, as the case may be, prior to the expiration of the Call Period. 
  
 (c) The closing for the repurchase of your Shares under this Paragraph 8 shall take place on such date as determined by the Board, but no
later than sixty (60) business days after the delivery of the Call Notice. The closing of such repurchase shall take place at the principal place of business of the Company at 10:00 a.m., local time, or at such other place and time as the parties to
such repurchase may mutually agree in writing. At the closing: 
  
 (i) you shall execute and deliver to the Company such documents, certificates and other papers as the Company may reasonably require to effect the 

  

 4 

 
transfer and conveyance by assignment of absolute title to the Company of your Shares free and clear of all liens (other than restrictions imposed pursuant
to applicable federal and state securities laws, hereby and by the Investor Rights Agreement, to the extent such restrictions do not relate to any breach or default by you thereunder) of all Persons whomsoever and such party shall so represent and
warrant; 
  
 (ii) the Company shall purchase your
Shares and pay the applicable purchase price therefor; and 
  
 (iii) both you and the Company shall covenant to execute all such documents and take all such further action as may be necessary to effect the provisions of, and transactions described in and contemplated by, the
applicable provisions of this Paragraph. 
  

	9.	By executing and returning the Beneficiary Designation Form attached as Exhibit C, you may designate a beneficiary to receive any Shares awarded hereunder in the event of your death
while in service with the Company or its subsidiaries. If you do not designate a beneficiary or if your designated beneficiary does not survive you, then your beneficiary will be your estate. 

  

	10.	You acknowledge and agree that upon any Termination resulting in the forfeiture of any unvested Shares in accordance with Paragraph 3 and Exhibit B of this Agreement or otherwise in
accordance with the Plan, (i) your right to receive dividends on, and all other rights, title or interest in, to or with respect to, unvested Shares shall automatically, without further act, terminate and (ii) the unvested Shares shall be returned
to the Company. You hereby irrevocably appoint (which appointment is coupled with an interest) the Company as your agent and attorney-in-fact to take any necessary or appropriate action to cause the Shares to be returned to the Company, including
without limitation executing and delivering stock powers and instruments of transfer, making endorsements and/or making, initiating or issuing instructions or entitlement orders, all in your name and on your behalf. You hereby ratify and approve all
acts done by the Company as such attorney-in-fact. Without limiting the foregoing, you expressly acknowledge and agree that any transfer agent for the Shares is fully authorized and protected in relying on, and shall incur no liability in acting on,
any documents, instruments, endorsements, instructions, orders or communications from the Company in connection with the Shares or the transfer thereof, and that any such transfer agent is a third party beneficiary of this Agreement.

  

	11.	The existence of this Award shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or
otherwise affecting the Company common stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise. 

  

 5 

	12.	Any notice which either party hereto may be required or permitted to give to the other shall be in writing and may be delivered personally, by intraoffice mail, fax or mail to such
address and directed to such person(s) as the Committee may select from time to time and to you, at your address as shown on the records of the Company from time to time, or at such other address as you, by notice to the Committee, may designate in
writing from time to time. 

  

	13.	Regardless of any action the Company, its subsidiaries or your employer takes with respect to any or all income tax, payroll tax or other tax-related withholding (“Tax-Related
Items”), you acknowledge that the ultimate liability for all Tax-Related Items owed by you is and remains your responsibility and that the Company and/or your employer (i) makes no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the grant of Shares of Restricted Stock, including the grant and vesting of the Shares, the subsequent sale of Shares, and the receipt of any dividends and (ii) does not commit to structure the
terms of the grant or any aspect of the Shares of Restricted Stock to reduce or eliminate your liability for Tax-Related Items. 

  
 In the event the Company determines that it and/or your employer must withhold any Tax-Related Items as a result of your participation in the Plan, you
agree as a condition of the grant of the Shares of Restricted Stock to make arrangements satisfactory to the Company and/or your employer to enable it to satisfy all withholding requirements, including, but not limited to, withholding any applicable
Tax-Related Items from the vesting and delivery of the Shares. In addition, you authorize the Company and/or your employer to fulfill its withholding obligations by all legal means, including, but not limited to: (i) withholding Tax-Related Items
from your wages, salary or other cash compensation the Company and/or your employer pays to you; (ii) withholding Tax-Related Items from the cash proceeds, if any, received upon sale of any Shares; and (iii) at the time of vesting, withholding
Shares sufficient to meet minimum withholding obligations for Tax-Related Items. The Company may refuse to deliver Shares if you fail to comply with any withholding obligation. 
  

	14.	Regardless of any action the Company, its subsidiaries or your employer takes with respect to the filing of any Elections to Include Value of Restricted Property in Gross Income in
Year of Transfer pursuant to the provisions of Section 83(b) of the Internal Revenue Code and applicable Treasury Regulations (the “83(b) Elections”), you acknowledge that the ultimate liability for the filing of any 83(b) Elections is and
remains your responsibility, and that the Company and/or your employer makes no representations or undertakings regarding such filings in connection with any aspect of the grant of Shares of Restricted Stock. A form for making an 83(b) Election is
attached as Exhibit D. 

  

	15.	 In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of
the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. This Agreement constitutes the final understanding between you 

  

 6 

	 	 
and the Company regarding the Shares of Restricted Stock. Any prior agreements, commitments or negotiations concerning the Shares of Restricted Stock are
superseded. 

  

	16.	This Agreement may be modified only by written agreement between you, your beneficiaries or other legal representatives, as applicable, and the Company. 

  
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and you have hereunto set your hand, all effective as of the Grant Date listed above. 
  

									
	 REPUBLIC COMPANIES GROUP, INC.
	 	 	 	 SHAREHOLDER

					
	By:	 	 	 	 	 	By:	 	 
	 	 	Parker W. Rush	 	 	 	 	 	 
	 	 	President & Chief Executive Officer	 	 	 	Printed Name: _____________________________________

  

 7 

 Exhibit B 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Vesting of Restricted Stock 
  
 (a) Vesting Schedule. Subject to the provisions of paragraph (b) below, the Shares of Restricted Stock shall be vested in five equal annual
installments if you continue to perform services for the Company and its subsidiaries through each of the vesting dates as follows: 
  

			
	 Vesting Date

	  	 Number off Shares of
Restricted Stock
that
Become Vested and Earned

	 1st anniversary of Grant Date
	  	one-fifth (1/5) of award
	 2nd anniversary of Grant Date
	  	one-fifth (1/5) of award
	 3rd anniversary of Grant Date
	  	one-fifth (1/5) of award
	 4th anniversary of Grant Date
	  	one-fifth (1/5) of award
	 5th anniversary of Grant Date
	  	one-fifth (1/5) of award

  
 The Grant Date is specified on page 1
of your Restricted Stock Award Agreement. 
  
 (b) Termination
Prior to Full Vesting. If your Termination occurs prior to any of the above vesting date(s) for any reason, including death, disability, termination by the Company or your resignation, then all unvested Shares of Restricted Stock shall be
immediately forfeited as of the date of your Termination. (Shares that are vested but nontransferable will be delivered as soon as administratively practicable following the later of the date of your Termination and the date on which the Company
determines the Shares are transferable.) 
  
 (c) Vesting After
a Sale of the Company. Notwithstanding the foregoing provisions of this Agreement, the Shares of Restricted Stock shall become 100% vested and transferable upon a Sale of the Company if and only if the Sponsors receive cash payments (whether
pursuant to dividends, sale proceeds or otherwise) sufficient to realize an Investor Return of at least 30%. For purposes of this paragraph, “Investor Return” as of the date of a Sale of the Company means the annual compounded pre-tax
internal rate of return on the aggregate amount of funds invested by the Sponsors in debt and equity securities or instruments of the Company and its subsidiaries through the date of determination, assuming vesting and exercise of all options
outstanding as of such date (after giving effect to different dates of investment, if any, and after giving effect to any dilution of such securities or instruments arising in connection with such Sale of the Company). 
  
 (d) Transferability of Shares. Regardless of whether the Shares of
Restricted Stock have vested as otherwise provided in this Exhibit B, Shares are nontransferable until the later of the date they become 100% vested and the date the Company, in its sole discretion, determines that such Shares may be transferred and
notifies you of such determination. 
  

 Exhibit C 
  

Republic Companies Group, Inc. 
  
 REPUBLIC STOCK PLAN 
  
 Beneficiary Designation Form 
  
 Please complete this form to designate a beneficiary or beneficiaries or change your current beneficiary designation for Shares of Restricted Stock awarded to you under
the Republic Stock Plan (the “Plan”). Completed forms should be returned to [Name and Address]. 
  
 ******************************************************************************* 
  
 With respect to the Shares of Restricted Stock vested and transferable awarded to me under the Plan, I hereby designate the following person(s) or entity(ies) as my
beneficiary(ies) to receive such Shares in the event of my death while in service with Republic Companies Group, Inc. or its subsidiaries. 
  
 If my beneficiary(ies) named below predeceases me, any such payment will be made to my estate. 
  

					
	 Name and Address
 of Beneficiary(ies)

	  	 Social Security #

	  	 Relationship
to Participant

			
	 	  	 	  	 
	
	  	
	  	

			
	 	  	 	  	 
	
	  	
	  	

			
	 	  	 	  	 
	
	  	
	  	

  
 I understand that I may change this
designation at any time by executing a new form and delivering it to Michael E. Ditto, Corporate Secretary, or his predecessor in office. This designation supercedes any prior beneficiary designation made by me under the Plan with respect to Shares
of Restricted Stock awarded to me under the Plan and will be effective on the date received by the Company as indicated below. 
  

									
				
	 	 	 	 	Date:	 	 
	Participant’s Signature	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
	Participant’s Printed Name	 	 	 	 	 	 

  
 Received on this
             day of
                                ,
20            . 
  

			
		
	By:

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