Document:

Exhibit 10.8

EXHIBIT 10.8

INDEMNIFICATION AGREEMENT

THIS
INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of July 2, 2010, is by and among
United America Indemnity Ltd. , an exempted company incorporated and registered in the Cayman
Islands (the “Company”) and Fox Paine Capital Fund II International L.P., a Cayman Islands exempted
limited partnership (“Fox Paine”) that owns shares having a majority of the voting power of the
shares of the Company through one or both of U.N. Holdings (Cayman), Ltd. and U.N. Holdings
(Cayman) II, Ltd., each a Cayman Islands company.

W I T N E S S E T H

WHEREAS, the Company has been advised that its current corporate structure can be enhanced by
replacing it with Global Indemnity plc (“GI plc”) as the parent company (the “Restructuring”);

WHEREAS, in order to effect the Restructuring, it was decided (a) to form GI plc as a
subsidiary of the Company, with six (6) shares of GI plc held by others in trust for the benefit of
the Company, and (b) to implement a scheme of arrangement under the laws of the Cayman Islands (the
“Scheme of Arrangement) pursuant to which (i) all outstanding Class A and Class B common shares of
the Company would be cancelled and the Company would issue to GI plc all of its outstanding common
shares, (ii) GI plc would issue Class A and Class B ordinary shares on a one-for-two basis to
owners of the Class A and Class B common shares of the Company that have been cancelled, with cash
being paid in lieu of fractional ordinary shares, and (iii) all previously outstanding ordinary
shares of GI plc would be reclassified as non-voting deferred shares, after which the Company would file an election to be treated
as an entity disregarded from GI plc for U.S. federal income tax purposes effective two days
following the effective time of the Scheme of Arrangement (collectively, the “Transaction”);

WHEREAS, one or more persons who either directly or indirectly own an interest in Fox Paine
will own (or may be treated as owning for purposes of Treasury Regulation section
1.367(a)-3(c)(5)(ii)) five (5) percent or more of either the voting power or value of the shares of
GI plc after the Transaction (the “Partners”);

WHEREAS, Fox Paine, the Partners, the Company and GI plc intend the Transaction to qualify as
a reorganization of the Company described in Section 368(a)(1)(F) and a reorganization of GI plc
described in Section 368(a)(1)(E) of the Internal Revenue Code of 1986, as amended from time to
time (the “Code”).

WHEREAS, the Partners should not be required, solely as a result of the Transaction, to enter
into agreements to recognize gain in accordance with Treasury Regulation section 1.367(a)-8
(“GRAs”);

WHEREAS, GI plc and its subsidiaries may engage or be treated for U.S. federal income tax
purposes as engaging in certain internal restructuring transactions after the Transaction that
could require the Partners to enter into GRAs in order to preserve the nonrecognition of some or
all of the gain realized by the Partners as a result of the Transaction;

 

 

 

WHEREAS, after completion of the Transaction, transfers of GI plc shares may be subject to
Irish stamp duty, currently imposed at a rate equal to one (1) percent of the greater of the price
paid and the fair market value of the shares transferred; and

WHEREAS, in connection with the Transaction, the Company and Fox Paine wish to enter into an
agreement regarding certain rights and obligations with respect to (i) triggering events under any
such GRAs in accordance with Treasury Regulation section 1.367(a)-8 and (ii) payment of Irish stamp
duty.

NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements set
forth herein and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

1. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

	 	(a)	 	“Actually Realized” with respect to tax savings, shall mean the time that any
refund of taxes is actually received or applied against other taxes due, or the time of
the filing of a tax return on which a loss, deduction or credit or increase in basis is
applied to reduce the amount of taxes that would otherwise be payable.
	 
	 	(b)	 	“Affiliate” has the meaning specified in Rule 12b-2 of the Exchange Act.
	 
	 	(c)	 	“Articles” means the Articles of Association of GI plc.
	 
	 	(d)	 	“Closing” means the Scheme of Arrangement becoming effective.
	 
	 	(e)	 	“Closing Date “ means the date on which the Closing occurs.
	 
	 	(f)	 	“Code” has the meaning specified in the recitals to this Agreement.
	 
	 	(g)	 	“Company” has the meaning specified in the recitals to this Agreement.

	 	(h)	 	“Company Assets” means the assets of the Company immediately prior to the
Closing.

	 	(i)	 	“Controlled Asset Transfer” means a transfer by GI plc of all or a portion of
the Company Assets to a corporation controlled (within the meaning of section 368(c) of
the Code) by GI plc, as described in Treasury Regulation section 1.367(a)-3(d).

 

2

 

	 	(j)	 	“Controlled Transferee” means the transferee corporation receiving Company
Assets from GI plc pursuant to a Controlled Asset Transfer.

	 	(k)	 	“Controlled Transferee Stock” means any stock received, or treated for U.S.
federal income tax purposes as received, by GI plc in exchange for all or a portion of
the Company Assets pursuant to a Controlled Asset Transfer.

	 	(l)	 	“Disposition of Company Assets” means one or more sales or other transfers that
would constitute a disposition for any purpose of the Code and the Treasury Regulations
thereunder, within the period beginning immediately after the Closing and ending five
years after the last day of the taxable year that includes the Closing Date, by a
Controlled Transferee of all or substantially all of the Company Assets acquired by it
in the Controlled Asset Transfer other than (A) in the ordinary course of business, or
(B) in a transfer (i) in which gain or loss will not be required to be recognized under
U.S. federal income tax principles provided that such transfer would not be a
triggering event under Treasury Regulation section 1.367(a)-8, (ii) in which the
transferee agrees, with respect to any subsequent transfer of such Company Assets, to
be subject to the same obligations as apply to the Company and the Controlled
Transferee under this Agreement with respect to transfers of such Company Assets, (iii)
in which the Controlled Transferee agrees not to transfer the interest received in
exchange for the Company Assets transferred except in a transaction that would satisfy
the requirements of clauses (i), (ii) and (iv) in the definition of Disposition of
Controlled Transferee Stock, and (iv) in which the Controlled Transferee (and any other
recipient of an interest described in clause (iii)) agrees to notify the Notice Persons
of any transfer described in clause (iii) in the manner required by Section 4 of this
Agreement.

	 	(m)	 	“Disposition of Controlled Transferee Stock” means a sale or other transfer
that would constitute a disposition for any purpose of the Code and the Treasury
Regulations thereunder, within the period beginning immediately after the Closing and
ending five years after the last day of the taxable year that includes the Closing
Date, (A) by GI plc of Controlled Transferee Stock or (B)(x) by GI plc of any interest
received in exchange for Controlled Transferee Stock in a transaction that satisfies
the requirements of clauses (i)-(iv) of this definition or (y) by the Controlled
Transferee of any interest(s) received in exchange for all or substantially all of the
Company Assets acquired by it in the Controlled Asset Transfer in a transaction that
satisfies the requirements of clauses (i)-(iv) of the definition of Disposition of
Company Assets (any such interests received, the “Exchange Interests”), in any manner
other than in a transaction: (i) in which all the Controlled Transferee Stock or all
the Exchange Interests are transferred to a 

 

3

 

	 	 	 	single transferee; (ii) in which such
transferee of the Controlled Transferee Stock or Exchange Interests agrees to be
subject to the same obligations as apply to the Company under this Agreement; (iii) in
which GI plc (or any other transferor that
has agreed to be subject to the same obligations as apply to the Company under this
Agreement) agrees not to transfer the interest received in exchange for the
Controlled Transferee Stock or Exchange Interests transferred except in a
transaction that satisfies the requirements of clauses (i), (ii) and (iv) of this
sentence and to notify the Notice Persons of any such transfer in the manner
required by Section 4 of this Agreement; and (iv) with respect to which gain or loss
will not be required to be recognized by GI plc (or by any transferor of the
Exchange Interests that agreed to be subject to the same obligations as apply to the
Company under this Agreement) under U.S. federal income tax principles provided that
such transfer would not be a triggering event under Treasury Regulation section
1.367(a)-8.

	 	(n)	 	“DTC” means the Depository Trust and Clearing Corporation.
	 
	 	(o)	 	“Exchange Act” means the United States Securities Exchange Act of 1934, as
amended from time to time, and the rules and regulations promulgated thereunder.
	 
	 	(p)	 	“Exchange Interests” has the meaning specified in Section 1(m).
	 
	 	(q)	 	“Fox Paine” has the meaning specified in the recitals to this Agreement.
	 
	 	(r)	 	“GI plc” has the meaning specified in the recitals to this Agreement.
	 
	 	(s)	 	“GRA” has the meaning specified in the recitals to this Agreement.
	 
	 	(t)	 	“GRA Partner” has the meaning specified in Section 4(b).
	 
	 	(u)	 	“IRS” means the United States Internal Revenue Service.
	 
	 	(v)	 	“Notice Person” has the meaning specified in Section 14.
	 
	 	(w)	 	“Opinion” has the meaning specified in Section 4(c).
	 
	 	(x)	 	“Partners” has the meaning specified in the recitals to this Agreement.

 

4

 

	 	(y)	 	“Restructuring” has the meaning specified in the recitals to this Agreement.
	 
	 	(z)	 	“Scheme of Arrangement” has the meaning specified in the recitals to this
Agreement.

	 	(aa)	 	“Transaction” has the meaning specified in the recitals to this agreement.
	 
	 	(bb)	 	“Transferee” means a person that is the transferee of Class A or Class B
ordinary shares of GI plc transferred by Fox Paine or its Affiliates.

	 	(cc)	 	“Treasury Regulations” means the final and temporary (but not proposed) tax
regulations promulgated under the Code, as such regulations may be amended from time to
time.

2. Representations and Warranties.

(a) Fox Paine. Fox Paine represents and warrants to the Company that: (i) Fox Paine is
duly authorized to execute, deliver and perform this Agreement; and (ii) this Agreement has been
duly executed by Fox Paine and is a valid and binding agreement of Fox Paine, enforceable against
Fox Paine in accordance with its terms.

(b) The Company. The Company represents and warrants to Fox Paine that: (i) the
Company is duly authorized to execute, deliver and perform this Agreement; and (ii) this Agreement
has been duly executed by the Company and is a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms.

3. U.S. Federal Income Tax Treatment of the Transaction. The Company and Fox-Paine
shall treat, and the Company shall cause GI plc to treat, the Transaction as a reorganization of
the Company described in Section 368(a)(1)(F) and a reorganization of GI plc described in Section
368(a)(1)(E) of the Code for all U.S. federal income tax purposes.

4. Notification Requirements.

(a) The Company shall provide Fox Paine with prior written notice before GI plc effects a
Controlled Asset Transfer that could reasonably be expected to give rise to an obligation of a
Partner to file a GRA in order to preserve nonrecognition of gain realized by such Partner as a
result of the Transaction. Such notification shall be provided 30 business days prior to the
closing of such Controlled Asset Transfer and shall include (i) a description of the Controlled
Asset Transfer, including the amount and nature of the property to be transferred, a description of
the amount of cash and the class, amount and characteristics of the stock or securities received in
the transfer, and the date on which such transfer is to take place; (ii) the name, address and
United States taxpayer identification number (if any) of the Controlled Transferee, (iii) the
applicable section of the Code which provides for non-recognition treatment with respect to such
Controlled Asset Transfer, if any; and (iv) any other information requested by Fox Paine or
the Partner that is reasonably necessary for the Partner to file a properly completed GRA.

 

5

 

(b) Fox Paine shall provide the Company in writing the name and address of a Partner promptly
after such Partner has filed a GRA pursuant to Treasury Regulation section 1.367(a)-8 (hereinafter,
a “GRA Partner”). A Partner shall not file a GRA with respect to the Transaction unless (i) Fox
Paine or such Partner has been notified of a Controlled Asset Transfer pursuant to Section 4(a) or
(ii) such filing is based on the advice of such Partner’s tax counsel or accountant, provided that
the Partner shall not file a GRA if the Company delivers or causes to be delivered to the Partner a
written opinion from a nationally recognized law or accounting firm concluding that at least
“substantial authority” exists for the position that such filing is not necessary to avoid gain
recognition pursuant to Section 367 of the Code. Before filing a GRA in a circumstance where the
Company has not provided notice pursuant to Section 4(a), a Partner shall first notify the Company
of the basis for its filing a GRA and shall give the Company a reasonable opportunity to provide
such opinion. If a taxing authority asserts that a GRA was required for a transaction for which
no GRA was filed, such contest and any resulting tax liability shall be governed as provided by
Sections 5(a), (b), (c) and (d).

(c) The Company shall (or shall cause a Controlled Transferee to) notify Fox Paine of any sale
or other transfer that would constitute a disposition for U.S. federal income tax purposes, within
the period beginning immediately after the Closing and ending five years after the last day of the
taxable year that includes the Closing Date, (i) by GI plc of any Controlled Transferee Stock or
Exchange Interests or (ii) (A) by a Controlled Transferee, (B) by one or more other transferees of
Company Assets, or (C) by both a Controlled Transferee and one or more such transferees, (whether
in one or a series of transactions) of any Exchange Interests or of all or substantially all of the
Company Assets acquired by such transferee other than in the ordinary course of business. Such
notification shall be provided 30 business days prior to the closing of such disposition
transaction and shall include (x) a description of the disposition, including the amount and nature
of the property to be transferred, a description of the class, amount and characteristics of the
stock or securities received in the transfer (if any), and the date on which such transfer is to
take place, (y) the name, address and United States taxpayer identification number (if any) of the
transferee and (z) with respect to any disposition as to which gain or loss will not be required to
be recognized under U.S. federal income tax principles, the applicable section of the Code which
provides for such non-recognition treatment. The Company shall cause GI plc not to (and shall
cause the Controlled Transferee or other transferee not to) consummate such disposition unless (i)
it first provides to Fox Paine a written opinion of a nationally recognized law or accounting firm
reasonably acceptable to Fox Paine stating that the transaction should not constitute a “triggering
event” pursuant to Treasury Regulation section 1.367(a)-8 that would cause a GRA Partner to
recognize some or all of the gain not recognized by such GRA Partner with respect to the
Transaction as a result of entering into the GRA (an “Opinion”) or (ii) it confirms in writing that
it will indemnify the GRA Partners pursuant to Section 5(a) (for the avoidance of doubt, as
modified by Sections 5(b) and 5(c)). If such Opinion is provided by the Company, neither Fox Paine
nor any GRA Partner shall treat such transfer as giving rise to a
triggering event. In

 

6

 

connection
with any transfer for which notice was given under Section 4(a) or for which an Opinion was
provided under Section 4(c), Fox Paine and each GRA Partner shall comply with any GRA requirements
(including, filing a new GRA) necessary
to avoid a triggering event under Treasury Regulation section 1.367(a)-8 in connection with
such transfer and such Opinion may include an assumption that Fox Paine and each GRA Partner have
complied with specifically enumerated GRA requirements necessary to avoid recognition of gain. The
Company shall provide Fox Paine with information regarding all events that could affect the GRA,
including triggering events and other gain recognition events as provided by Treasury Regulation
section 1.367(a)-8(c)(2)(iv).

5. Indemnification.

(a) Subject to the conditions of Section 5(b), (c), and (d), the Company shall reimburse and
indemnify each Partner for, and hold each Partner harmless on an after-tax basis against, any
increase (determined on a with and without basis) in the Partner’s United States federal, state or
local income tax liability (including any interest or penalties relating thereto, except to the
extent such interest or penalties arise from a failure of any Partner to promptly (i) notify the
Company that the applicable taxing authority (if any) has made a claim or (ii) pay such tax
liability after the Company has paid to the Partner the amount required by this Section 5(a)) and
reasonable attorneys’ fees (except as provided below under Section 5(d)), actually incurred by such
Partner as a result of (i) in the case of a GRA Partner, any Disposition of Company Assets or
Disposition of Controlled Transferee Stock and (ii) in the case of a Partner that is not a GRA
Partner, a failure to file a GRA with respect to the Transaction if (x) the Company fails to give
notice under Section 4(a) or (y) the Partner received an opinion pursuant to Section 4(b) to the
effect that there was at least “substantial authority” that no GRA was required with respect to the
Transaction; provided, for the avoidance of doubt, the Company shall be under no obligation to
reimburse and indemnify a Partner to the extent the Partner failed to file a GRA after receiving
notification pursuant to Section 4(a), unless such partner received an opinion pursuant to Section
4(b).

(b) The Company shall be under no obligation to reimburse and indemnify a Partner pursuant to
Section 5(a) or Section 5(e) unless such Partner shall have agreed to promptly pay when Actually
Realized to the Company the amount of (i) any refunds of amounts paid by the Company to such
Partner hereunder to the extent such refunds result from a determination, as applicable, that no
GRA was required to be filed or any existing GRA was not triggered, and (ii) any United States
federal, state or local tax savings Actually Realized by such Partner as a direct or indirect
result of a transaction for which an indemnification payment was made by the Company as described
in Section 5(a) (increased by any further tax savings as a result of any payment by such Partner
under this Section 5(b)); provided, that such Partner shall not be required to pay the Company
amounts of any refunds or tax savings to the extent they exceed the sum of all payments made by the
Company to such Partner under Section 5(a). For the avoidance of doubt, such tax savings shall be
determined on a with and without basis and shall include (but not be limited to) any tax benefit
Actually Realized that is attributable to (i) an increase in tax basis in the shares of GI plc
and/or interests in any pass-through entity which directly or indirectly owns such stock and (ii)
the deductibility of any payments for which indemnification is sought pursuant to Section 5(a).

 

7

 

(c) Any request by a Partner for reimbursement or indemnification under Section 5(a) above
shall be delivered to the Company in writing and shall set forth in reasonable detail a description
of the basis for the request and the amount payable to such Partner and the nature and amount
(to the extent it can be determined at such time) of any tax benefits or potential tax benefits for
which the Partner may be required to pay the Company pursuant to Section 5(b). Fox Paine and the
Partners will cooperate with the Company’s reasonable requests to determine any tax benefits that
are Actually Realized (including providing the Company with the relevant with and without
calculations) and agree to notify the Company promptly upon a sale of the stock of GI plc or an
interest in a pass-through entity which directly or indirectly owns such stock or otherwise upon
determining that a tax benefit has been Actually Realized. At the Company’s request, the amount
payable to a Partner by the Company, or by a Partner to the Company, under this Section 5 shall be
verified and certified by a nationally recognized firm of independent U.S. accountants mutually
acceptable to the Company and such Partner. The Company shall pay the fees of such accountants,
and such Partner and the Company shall cooperate in good faith with such accountants.

(d) In the event that a taxing authority asserts that a transfer gives rise to a tax
liability for which a Partner would be entitled to reimbursement or indemnification pursuant to
Section 5(a), the Company shall be under no obligation to reimburse and indemnify such Partner
unless (i) such Partner promptly informs the Company of any such claim made by the taxing
authority; (ii) such Partner agrees to contest in good faith such claim and any adverse judicial
decision relating thereto (provided that there is a realistic possibility of success for such
contest in the good-faith determination of the Partner based on advice received by the Partner from
a nationally recognized law or accounting firm reasonably acceptable to the Company and such
Partner and the Company pays the amount of any tax (including penalties and interest required to be
paid by the Company hereunder) or posts any bond required under applicable law to be paid or posted
in order to contest such claim in the forum chosen by the Partner); (iii) such Partner consults in
good faith with the Company and allows the Company reasonable opportunity to participate in such
tax contest; and (iv) such Partner does not pay, discharge, settle, compromise, litigate, or
otherwise dispose (collectively, “dispose”) of such claim without obtaining the prior written
consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed,
provided, however, the Partner may dispose of any claim for which it has determined
there is no realistic possibility of success in accordance with (ii) above without the prior
written consent of the Company. The Company shall pay all of its own costs and expenses, as well as
all reasonable out-of-pocket costs and expenses of such Partner, incurred in connection with such
contest; provided, for the avoidance of doubt, the Company shall only pay such amounts to the
extent they relate to the tax liability for which the Partner would be entitled to indemnification
hereunder; provided, further, the Company shall not be liable for costs or expenses relating to the
legal or other advisors of Fox Paine or the Partners if the Company has notified Fox Paine of a
sale or other transfer pursuant to Section 4(c) that would be a triggering event and for which the
Company has agreed to indemnify the GRA Partners pursuant to Section 4(c) and such Partner does not
report such triggering event on its tax return.

 

8

 

(e) To the extent that Fox Paine and its Affiliates convert or dispose of their Class B
ordinary Shares (i) in the manner set out in Section 6 below, or (ii) pursuant to any other
procedures established by the Board of Directors pursuant to Section 3(d)(ii) of the Articles
(unless Fox Paine, in accordance with such Section, has notified the Company of its unwillingness
to have such Class B ordinary shares converted so as to be redeemable), the
Company shall reimburse and indemnify Fox Paine and its Affiliates and the Transferees for,
and hold Fox Paine and its Affiliates and their Transferees harmless on an after-tax basis against,
any Irish stamp duty (including any interest or penalties relating thereto, except to the extent
such interest or penalties arise from a failure of Fox Paine or its Affiliates, or the Transferees,
to promptly pay such tax liability after the Company has paid to such person the amount required by
this Section 5(e)) arising on such conversion or disposal. The Company shall not be required to
reimburse or indemnify Fox Paine, its Affiliates or the Transferees for any such Irish stamp duty
(or any interest or penalties relating thereto) unless (i) the Irish taxing authority has asserted
that such Irish stamp duty is due and payable and Fox Paine, its Affiliates or the Transferees have
promptly notified the Company that the Irish taxing authority has made such a claim; or (ii) there
has been a change of law (or the official interpretation of the law), after the date hereof, such
that Irish stamp duty arises on a conversion or disposal of shares effected by taking the steps set
out in Section 6 below. The Company at its own expense may control any proceeding with the Irish
taxing authority related to such claim, provided that there is a realistic
possibility of success for such contest in the good-faith determination of the Company based on
advice received by the Company from a nationally recognized law or accounting firm reasonably
acceptable to the Company and Fox Paine, its Affiliates or the Transferees, as applicable. For the
avoidance of doubt, any refund of Irish stamp tax indemnified or reimbursed by the Company
hereunder shall be for the Company’s account.

6. Procedures Applicable to Transfer and Conversion.

Fox Paine, its Affiliates, and the Transferees shall be entitled to reimbursement and indemnity
pursuant to Section 5(e) to the extent they convert their Class B ordinary shares into Class A
ordinary shares and/or dispose of their Class B ordinary shares in the following manner, unless
agreed in writing in advance by the Company. If Fox Paine, an Affiliate or Transferee provides
written notice to the Company of a proposed transfer of Class B ordinary shares or a proposed
conversion of Class B ordinary shares into Class A ordinary shares, the Company shall provide
notice to Fox Paine and its Affiliates that such conversion or transfer must comply with the
procedures set forth in this Section 6 as a condition to reimbursement and indemnity of Irish stamp
duty pursuant to Section 5(e).

(a) Where Fox Paine or one of its Affiliates (the “Converter”) wishes to convert Class B
ordinary shares into Class A ordinary shares, this will be effected by the Company redeeming the
relevant Class B ordinary shares and issuing the same number of new Class A ordinary shares in the
name of Cede & Co (to be held in DTC on behalf of the Converter) as permitted by Article
3(d)(ii)(A) of the Articles;

(b) Where Fox Paine or one of its Affiliates (the “Transferor”) wishes to convert Class B
ordinary shares into Class A ordinary shares with a view to a sale or other transfer of the Class A
ordinary shares to a Transferee which neither holds Class B ordinary shares nor is an Affiliate of
Fox Paine, this will be effected by the Company redeeming the relevant Class B ordinary shares and
issuing the same number of new Class A ordinary shares in the name of Cede & Co (to be held in DTC
on behalf of the Transferor) and by the Transferor transferring those new Class A ordinary shares
to the Transferee through DTC, as permitted by Article 3(d)(ii)(A) of the Articles; and

 

9

 

(c) Where Fox Paine or one of its Affiliates wishes to sell or transfer Class B ordinary
shares and a Transferee either (A) is a nominee or Affiliate of Fox Paine and such transfer will
not result in a change of beneficial ownership (as determined under 13d-3 under the Exchange Act)
or (B) is already a holder of Class B ordinary shares, this will be effected by the Company
redeeming the relevant Class B ordinary shares and issuing the same number of new Class B ordinary
shares in the name of the Transferee, as permitted by Article 3(d)(ii)(B) of the Articles.

7. Operational Rules. For purposes of this Agreement, (A) the assets of an entity
disregarded from its direct or indirect owner for U.S. federal income tax purposes shall be treated
as held by such owner and (B) a sale or other disposition (i) by any entity disregarded from its
direct or indirect owner for U.S. federal income tax purposes shall be treated as a sale or other
disposition by such owner and (ii) of any entity disregarded from its direct or indirect owner for
U.S. federal income tax purposes shall be treated as a sale or other disposition of the assets of
such entity by such owner.

8. 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 conflict of laws principles or rules
thereof).

9. Submission to Jurisdiction; Waiver of Immunity. Each party hereto, on behalf of
itself and its successors and assigns, hereby irrevocably (a) consents to submit itself to the
personal jurisdiction of the United States District Court for the Southern District of New York or
any court of the State of New York located in such district solely for the purpose of any action,
suit or proceeding commenced to resolve any dispute that arises out of this Agreement (b) waives
any objection which it may now or hereafter have to the venue of any such action, suit or
proceeding, and (c) irrevocably waives any immunity from jurisdiction to which it might otherwise
be entitled in any such action, suit or proceeding which may be instituted in any state or federal
court in the State of New York, and irrevocably waives any immunity from the maintaining of an
action against it to enforce any judgment for money obtained in any such action, suit or proceeding
and, to the extent permitted by applicable law, any immunity from execution.

10. Additional Parties. No party hereto shall assign its rights or obligations
hereunder without the prior written consent of the other party, except that Fox Paine’s rights and
obligations shall inure to the benefit of and be binding upon each Partner and any person who
shares or succeeds to such Partner’s tax liability as a matter of law. (A) Each of the Partners
and (B) with respect to and as set forth in Section 5(e), each of the Affiliates of Fox Paine and
the Transferees, is an express third party beneficiary of the Agreement with rights to enforce the
obligations of the Company; provided, that, no such person shall be entitled to exercise any rights
hereunder unless at the time such rights are exercised, such person at the request of the Company
agrees in writing that it shall be bound by any and all obligations applicable to such person under
this Agreement.

 

10

 

11. Effective Date. This Agreement shall become effective at the Closing.

12. Timing of Payments. All payments required to be made pursuant to Section 5(a)
shall be made by the Company to the Partner no later than 5 business days before such payment is
required to be paid to a taxing authority. All payments required to be made pursuant to Section
5(b) shall be made by the Partner to the Company no later than 5 business days after a tax benefit
is Actually Realized. All payments of expenses required to be made pursuant to Section 5(d) and
5(e) shall be made by the Company to the Partner, Fox Paine or its Affiliates, or the Transferee,
as applicable, as soon as practicable but in any event no later than twenty (20) days after written
demand is presented to the Company.

13. Currency of Payments. All payments to be made to any party under any of the
provisions hereof shall be made in U.S. Dollars.

14. Notices. All notices, requests, demands and other communications made in
connection with this Agreement shall be in writing and shall be (a) mailed by first-class,
registered or certified mail, return receipt requested, postage prepaid, (b) transmitted by hand
delivery, (c) transmitted by facsimile or (d) sent by overnight courier, addressed as follows (each
such addressee a “Notice Person”):

if to the Company, to:

United America Indemnity Ltd.

Walker House,

87 Mary Street,

George Town, Grand Cayman

KY1-9005, Cayman Islands

Attn: Larry A. Frakes

With a copy to

United America Indemnity Group, Inc.,

Three Bala Plaza East, Suite 300,

Bala Cynwyd, PA 19004.

If to Fox Paine or its Affiliates, to:

Fox Paine Capital Fund II International L.P.

Suite 150

3500 Alameda de las Pulgas

Menlo Park, CA 94025

 

11

 

With a copy to:

Fox Paine & Company, LLC

Suite 150

3500 Alameda de las Pulgas

Menlo Park, CA 94025

Att’n: Saul A. Fox

Fax: +1 (650) 295-4045

And a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

1440 New York Avenue, N.W.

Washington, D.C. 20005-2111

Att’n: Paul W. Oosterhuis

Fax: +1 (202) 661-8232

15. Miscellaneous. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and may not be amended, modified or supplemented except
in writing signed by the Company and, insofar as it applies to Fox Paine and its Affiliates or the
Partners, by Fox Paine. If any term, provision or covenant of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions
and covenants of this Agreement shall remain in full force and effect, unless such action would
substantially impair the benefits to either party of the remaining provisions of this Agreement.
This Agreement may be executed in one or more counterparts, each of which will be deemed an
original and all of which together will constitute one and the same instrument.

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or has caused this
Agreement to be executed, as of the date and year first above written.

	 	 	 	 	 
	 	UNITED AMERICA INDEMNITY LTD.

 	 
	 	By:  	/s/ Larry A. Frakes	 
	 	 	Name:  	Larry A. Frakes	 
	 	 	Title:  	President and Chief Executive Officer	 
	 
	 	FOX PAINE CAPITAL FUND II INTERNATIONAL L.P.,

acting by Fox Paine Capital International GP L.P., its general partner, acting by Fox Paine
International GP, Ltd., its general partner

 	 
	 	By:  	/s/ Saul A. Fox	 
	 	 	Name:  	Saul A. Fox	 
	 	 	Title:  	Director	 
	 

 

12Exhibit 10.9

EXHIBIT 10.9

INDEMNIFICATION AGREEMENT

This
Indemnification Agreement is dated July 2, 2010 (this “Agreement”) and is between
United America Indemnity, Ltd., an exempted company incorporated with limited liability under the
laws of the Cayman Islands (the “Indemnitor”) and wholly owned subsidiary of Global
Indemnity plc, an Irish public limited Company (the “Company”), and [Name of
director/secretary/officer], a [director][officer][secretary] of the Company,
(“Indemnitee”).

Background

The Company believes that in order to attract and retain highly competent persons to serve as
directors or in other capacities, including as officers and secretary, it must provide such persons
with adequate protection through indemnification against the risks of claims and actions against
them arising out of their services to and activities on behalf of the Company.

The Indemnitee has previously served as a [director][secretary][officer] for the Indemnitor,
which, upon the effectiveness of the scheme of arrangement of the Indemnitor under section 86 of
the Companies Law (2009 Revision) of the Cayman Islands (as amended, the “Companies Law”),
has become a wholly owned subsidiary of the Company.

The Company and the Indemnitor desire and have requested the Indemnitee to serve as a
[director] [officer] [secretary] of the Company and, in order to induce the Indemnitee to serve as
a [director] [officer] [secretary] of the Company, the Indemnitor is willing to grant the
Indemnitee the indemnification provided for herein. Indemnitee is willing to so serve on the basis
that such indemnification be provided.

The parties by this Agreement desire to set forth their agreement regarding indemnification
and the advancement of expenses.

In consideration of Indemnitee’s service to the Company and the Indemnitor and the covenants
and agreements set forth below, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

Section 1. Indemnification.

To the fullest extent permitted by the Companies Law:

(a) The Indemnitor shall indemnify Indemnitee if Indemnitee was or is made or is threatened to
be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending
or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether
civil, criminal, administrative or investigative and whether formal or informal, including appeals,
by reason of the fact that Indemnitee is or was or has agreed to serve as a director, secretary,
officer, employee or agent of the Company, or while serving as a director, secretary or officer,
employee or agent of the Company or the Indemnitor, is or was serving or has agreed to serve at the
request of the Company and/or Indemnitor as a director, secretary, officer, employee or agent
(which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar
capacity) of another corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or
omitted in any such capacity.

 

 

 

(b) The indemnification provided by this Section 1 shall be from and against all loss and
liability suffered and expenses (including attorneys’ fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by or on behalf of Indemnitee in connection with such
action, suit or proceeding, including any appeals.

Section 2. Advance Payment of Expenses. To the fullest extent permitted by the
Companies Law, expenses (including attorneys’ fees) incurred by Indemnitee in appearing at,
participating in or defending any action, suit or proceeding or in connection with an enforcement
action as contemplated by Section 3(e), shall be paid by the Indemnitor in advance of the final
disposition of such action, suit or proceeding as soon as reasonably practicable, but in no event
later than 30 days after receipt by the Indemnitor of a statement or statements from Indemnitee
requesting such advance or advances from time to time. Advances shall be unsecured and without
interest and made without regard to Indemnitee’s ability to repay such advances. The Indemnitee
hereby undertakes to repay any amounts advanced (without interest) to the extent that it is
ultimately determined by a court of competent jurisdiction that Indemnitee is not entitled to be
indemnified by the Indemnitor in respect thereof. No other form of undertaking shall be required
of Indemnitee other than the execution of this Agreement. This Section 2 shall be subject to
Section 3(b) and shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 6.

Section 3. Procedure for Indemnification; Notification and Defense of Claim.

(a) Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or
proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Indemnitor
hereunder, notify the Indemnitor in writing of the commencement thereof. The failure to promptly
notify the Indemnitor of the commencement of the action, suit or proceeding, or of Indemnitee’s
request for indemnification, will not relieve the Indemnitor from any liability that it may have to
Indemnitee hereunder, except to the extent the Indemnitor is actually and materially prejudiced in
its defense of such action, suit or proceeding as a result of such failure. To obtain
indemnification under this Agreement, Indemnitee shall submit to the Indemnitor a written request
therefor including such documentation and information as is reasonably available to Indemnitee and
is reasonably necessary to enable the Indemnitor to determine whether and to what extent Indemnitee
is entitled to indemnification, provided, however, that under no circumstances shall documentation
be required to be provided that, prepared in connection with legal services, contain references to
legal work performed or to expenditures made that would cause Indemnitee to waive any privilege
accorded by applicable law.

(b) With respect to any action, suit or proceeding of which the Indemnitor is so notified as
provided in this Agreement, the Indemnitor shall, subject to the last two sentences of this
paragraph, be entitled to assume the defense of such action, suit or proceeding, with counsel
reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its
election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Indemnitor, the Indemnitor will not be liable to Indemnitee under
this Agreement for any subsequently-incurred fees of separate counsel engaged by Indemnitee with
respect to the same action, suit or proceeding unless the employment of separate counsel by
Indemnitee has been previously authorized in writing by the Indemnitor. Notwithstanding
Indemnitor’s assumption of the defense of any such action, suit or proceeding, the Indemnitor shall
be obligated to pay the fees and expenses of Indemnitee’s separately engaged counsel to the extent
(i) the employment of counsel by Indemnitee is authorized by the Indemnitor, (ii) counsel for the
Indemnitor or Indemnitee shall have reasonably concluded that there is a conflict of interest or
position between the Indemnitor and Indemnitee in the conduct of any such defense such that
Indemnitee needs to be separately represented, (iii) the fees and expenses are non-duplicative and
reasonably incurred in connection with Indemnitee’s role in the action, suit or proceeding despite
the Indemnitor’s assumption of the defense, (iv) the Indemnitor is not financially or legally able
to perform
its indemnification obligations or (v) the Indemnitor shall not have retained, or shall not
continue to retain, such counsel to defend such action, suit or proceeding. Regardless of any
provision in this Agreement, the Indemnitee shall have the right to employ counsel in any suit,
action or proceeding at Indemnitee’s personal expense. In addition, the Indemnitor will not be
entitled, without the written consent of Indemnitee, to assume the defense of any claim brought by
or in the right of the Indemnitor.

 

 

 

(c) To the fullest extent permitted by the Companies Law, the Indemnitor’s assumption of the
defense of an action, suit or proceeding in accordance with paragraph (b) above will constitute an
irrevocable acknowledgement by the Indemnitor that any loss and liability suffered by Indemnitee
and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement by or for
the account of Indemnitee incurred in connection therewith are indemnifiable by the Indemnitor
under Section 1 of this Agreement.

(d) The determination whether to grant Indemnitee’s indemnification request shall be made
promptly and in any event within 30 days following the Indemnitor’s receipt of a request for
indemnification in accordance with Section 3(a). If the Indemnitor determines that Indemnitee is
entitled to such indemnification or, as contemplated by paragraph (c) above, the Indemnitor has
acknowledged such entitlement, the Indemnitor will make payment to Indemnitee of the indemnifiable
amount within such 30 day period. If the Indemnitor is not deemed to have so acknowledged such
entitlement or the Indemnitor’s determination of whether to grant Indemnitee’s indemnification
request shall not have been made within such 30 day period, the requisite determination of
entitlement to indemnification shall, subject to Section 6, nonetheless be deemed to have been made
and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee
of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading, in connection with the request for indemnification, or (ii) a prohibition of
such indemnification under the Companies Law.

(e) In the event that (i) the Indemnitor determines in accordance with this Section 3 that
Indemnitee is not entitled to indemnification under this Agreement, (ii) the Indemnitor denies a
request for indemnification, in whole or in part, or fails to respond or make a determination of
entitlement to indemnification within 30 days following receipt of a request for indemnification as
described above, (iii) payment of indemnification is not made within such 30 day period, (iv)
advancement of expenses is not timely made in accordance with Section 2, or (v) the Indemnitor or
any other person takes or threatens to take any action to declare this Agreement void or
unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to
recover from, the Indemnitee the benefits provided or intended to be provided to Indemnitee
hereunder, Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction
of Indemnitee’s entitlement to such indemnification or advancement of expenses. Indemnitee’s
expenses (including attorneys’ fees) incurred in connection with successfully establishing
Indemnitee’s right to indemnification or advancement of expenses, in whole or in part, in any such
proceeding or otherwise shall also be indemnified by the Indemnitor to the fullest extent permitted
by the Companies Law.

(f) Upon written request by Indemnitee for indemnification pursuant to Section 3(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case (i) if a Change in Control of the Company shall have occurred,
by Independent Counsel in a written opinion to the Indemnitor’s board of directors, a copy of which
shall be delivered to Indemnitee or (ii) if a Change in Control of the Company shall not have
occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of
the Indemnitor’s board of directors, (B) by a committee of Disinterested Directors designated by a
majority vote of the Disinterested Directors, even though less than a quorum of the Indemnitor’s
board of directors, or (C) if there are no such Disinterested Directors or, if such Disinterested
Directors so direct, by Independent Counsel in a written opinion to the Indemnitor’s board of
directors, a copy of which shall be delivered to Indemnitee.
If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall
be made as soon as practicable, but in no event later than thirty (30) days after such
determination. Indemnitee shall cooperate with the person, persons or entity making the
determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any documentation or information
that is not privileged or otherwise protected from disclosure and that is reasonably available to
Indemnitee and reasonably necessary to such determination. Any costs or expenses (including
attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the
person, persons or entity making such determination shall be borne by the Indemnitor, to the extent
permitted by applicable law.

 

 

 

(g) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 3(f), the Independent Counsel shall be selected as provided
in this Section 3(g). If a Change in Control of the Company shall not have occurred, the
Independent Counsel shall be selected by the Indemnitor’s board of directors, and the Indemnitor
shall give written notice to Indemnitee advising him or her of the identity of the Independent
Counsel so selected. If a Change in Control of the Company shall have occurred, the Independent
Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be
made by the Indemnitor’s board of directors, in which event the preceding sentence shall apply),
and Indemnitee shall give written notice to the Indemnitor advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Indemnitor, as the case may be,
may, within ten (10) days after such written notice of selection shall have been given, deliver to
the Indemnitor or to Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in this
Agreement, and the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person so selected shall act as Independent
Counsel. If such written objection is so made and substantiated, the Independent Counsel so
selected may not serve as Independent Counsel unless and until such objection is withdrawn or a
court of competent jurisdiction has determined that such objection is without merit. If, within
twenty (20) days after the later of (i) submission by Indemnitee of a written request for
indemnification pursuant to Section 3(a) hereof and (ii) the final disposition of the action, suit
or proceeding, the parties have not agreed upon an Independent Counsel, either the Indemnitor or
Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Indemnitor or Indemnitee to the other’s selection of Independent
Counsel and for the appointment as Independent Counsel of a person selected by the court or by such
other person as the court shall designate, and the person with respect to whom all objections are
so resolved or the person so appointed shall act as Independent Counsel under Section 3(f) hereof.
Upon the due commencement of any judicial proceeding pursuant to Section 3(e) of this Agreement,
the Independent Counsel shall be discharged and relieved of any further responsibility in such
capacity (subject to the applicable standards of professional conduct then prevailing). The
Indemnitor agrees to pay the reasonable fees and expenses of any Independent Counsel and to fully
indemnify such counsel against any and all expenses, claims, liabilities and damages arising out of
or relating to this Agreement or its engagement pursuant hereto.

(h) In making a determination with respect to entitlement to indemnification hereunder, the
person, persons or entity making such determination shall presume that the Indemnitee is entitled
to indemnification and advancement of expenses under this Agreement upon submission of a request
therefor in accordance with Section 2 or Section 3 of this Agreement, as the case may be. The
Indemnitor shall have the burden of proof in overcoming such presumption, and such presumption
shall be used as a basis for a determination of entitlement to indemnification and advancement of
expenses unless the Indemnitor overcomes such presumption by clear and convincing evidence.

 

 

 

(i) To the fullest extent not prohibited by law, the Company and the Indemnitor shall be
precluded from asserting in any judicial proceeding commenced pursuant to this Section 3 that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court that the Company and the Indemnitor are bound by all the provisions of
this Agreement.

(j) The termination of any action, suit or proceeding or of any claim, issue or matter
therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee
acted in a manner that was knowingly fraudulent or was the result of willful misconduct.

Section 4. Insurance and Subrogation.

(a) The Company shall use all reasonable efforts to purchase and maintain a policy or policies
of insurance with reputable insurance companies with A.M. Best ratings of “A” or better, providing
Indemnitee with coverage for any liability asserted against, and incurred by, Indemnitee or on
Indemnitee’s behalf by reason of the fact that Indemnitee is or was or has agreed to serve as a
director, secretary, officer, employee or agent of the Company or the Indemnitor, or while serving
as a director or officer of the Company or the Indemnitor, is or was serving or has agreed to serve
at the request of the Company or Indemnitor as a director, secretary, officer, employee or agent
(which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar
capacity) of another corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise, or arising out of Indemnitee’s status as such, whether
or not the Indemnitor would have the power to indemnify Indemnitee against such liability under the
provisions of this Agreement. Such insurance policies shall have coverage terms and policy limits
at least as favorable to Indemnitee as the insurance coverage provided in either case to any other
director, secretary, officer, employee or agent of the Company or the Indemnitor. If the Company
has such insurance in effect at the time the Indemnitor receives from Indemnitee any notice of the
commencement of an action, suit or proceeding, the Indemnitor shall give prompt notice of the
commencement of such action, suit or proceeding to the insurers in accordance with the procedures
set forth in the policy. The Indemnitor shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such
proceeding in accordance with the terms of such policy.

(b) In the event of any payment by the Indemnitor under this Agreement, the Indemnitor shall
be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with
respect to any insurance policy. Indemnitee shall execute all papers required and take all action
necessary to secure such rights, including execution of such documents as are necessary to enable
the Indemnitor to bring suit to enforce such rights in accordance with the terms of such insurance
policy. The Indemnitor shall pay or reimburse all expenses actually and reasonably incurred by
Indemnitee in connection with such subrogation.

(c) Subject to Section 9(b), the Indemnitor shall not be liable under this Agreement to make
any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments,
fines and amounts paid in settlement, and ERISA excise taxes or penalties) if and to the extent
that Indemnitee has otherwise actually received such payment under this Agreement or any insurance
policy, contract, agreement or otherwise.

 

 

 

Section 5. Certain Definitions. For purposes of this Agreement, the following
definitions shall apply:

(a) The term “action, suit or proceeding” shall be broadly construed and shall
include, without limitation, the investigation, preparation, prosecution, defense, settlement,
arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed
claim, action, suit, arbitration, alternative dispute mechanism or proceeding, whether civil,
criminal, administrative or investigative.

(b) The term “by reason of the fact that Indemnitee is or was or has agreed to serve as a
director, secretary, officer, employee or agent of the Company or the Indemnitor, or while serving
as a director or officer of the Company or Indemnitor, is or was serving or has agreed to serve at
the request of the Company or Indemnitor as a director, secretary, officer, employee or agent
(which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of
another corporation, limited liability company, partnership, joint venture, trust, employee benefit
plan or other enterprise” shall be broadly construed and shall include, without limitation, any
actual or alleged act or omission to act.

(c) The term “Change in Control” shall be deemed to occur upon the earliest to occur
after the date of this Agreement of any of the following events:

(i) Acquisition of Stock by Third Party. Any Person (as defined below), other than Fox Paine
or any Affiliate of Fox Paine (as defined below) or any underwriters or initial purchasers in
connection with a bona fide offering of the Company’s securities, is or becomes the Beneficial
Owner (as defined below), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding securities,
other than by a transfer by an existing shareholder to an Affiliate of an existing shareholder;

(ii) Change in Board Composition. During any period of two consecutive years (not including
any period prior to the execution of this Agreement), individuals who at the beginning of such
period constitute the Company’s board of directors, and any new directors (other than a director
designated by a person who has entered into an agreement with the Company to effect a transaction
described in Sections 5(c)(i), 5(c)(iii), and 5(c)(iv)) whose election by the board of directors or
nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds
of the directors then still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for any reason to
constitute at least a majority of the members of the Company’s board of directors;

(iii) Corporate Transactions. The effective date of a merger, takeover or consolidation of the
Company with any other entity, other than a merger, takeover or consolidation which would result in
the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the surviving entity outstanding immediately after such merger or consolidation and
with the power to elect at least a majority of the board of directors or other governing body of
such surviving entity;

(iv) Liquidation. The approval by the shareholders of the Company of the winding up or a
complete liquidation of the Company or an agreement for the sale or disposition by the Company of
all or substantially all of the Company’s assets; and

(v) Other Events. Any other event of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any
similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended,
whether or not the Company is then subject to such reporting requirement.

 

 

 

For purposes of this Section 5(c), the following terms shall have the following meanings:

“Affiliate” shall mean any Person, that directly or indirectly through one or more
intermediaries, controls or is under common control with another Person.

“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended; provided, however, that “Beneficial Owner” shall
exclude any Person otherwise becoming a Beneficial Owner by reason of (i) the shareholders of the
Company approving a merger of the Company with another entity or (ii) the Company’s board of
directors approving a sale of securities by the Company to such Person.

“Fox Paine” shall mean Fox Paine & Company, LLC, a Delaware limited liability company,
and its successors and assigns.

“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended; provided, however, that “Person” shall exclude
(i) the Company, (ii) the Indemnitor, (iii) any trustee or other fiduciary holding securities under
an employee benefit plan of the Company or the Indemnitor, and (iv) any corporation owned, directly
or indirectly, by the shareholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

(d) The term “Disinterested Director” shall mean a director of the Indemnitor who is
not and was not a party to the action, suit or proceeding in respect of which indemnification is
sought by the Indemnitee.

(e) The term “expenses” shall be broadly construed and shall include, without
limitation, all direct and indirect costs of any type or nature whatsoever (including, without
limitation, all attorneys’ fees and related disbursements, appeal bonds, other out-of-pocket costs
and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise
compensated by the Indemnitor or any third party), actually and reasonably incurred by Indemnitee
in connection with either the investigation, defense or appeal of an action, suit or proceeding or
establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in
connection with a claim that is indemnifiable hereunder.

(f) The term “Independent Counsel” shall mean (a) a law firm, or a partner or member
of a law firm, that is experienced in matters of corporation law and such law firm, or if a partner
or member of a law firm, the law firm for which such partner or member is a partner or member,
neither presently is, nor in the past five years has been retained to represent (i) the Company,
the Indemnitor, the Indemnitee or any beneficial owner of securities of the Company representing
fifteen percent (15%) or more of the consolidated voting power of the Company’s then outstanding
securities (such beneficial owner an “Interested Stockholder”) in any matter material to
any such party (other than as Independent Counsel with respect to matters concerning Indemnitee
under this Agreement, or other indemnitees under similar indemnification agreements), or (ii) any
other party to the action, suit or proceeding giving rise to a claim for indemnification hereunder
or (b) a law firm, or a partner or member of a law firm, that is experienced in matters of
corporation law and has been selected by the Indemnitee, as approved by each of the Company and the
Indemnitor (which approval shall not be unreasonably withheld or delayed), to act as Independent
Counsel pursuant to this Agreement. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional
conduct then prevailing, would have a conflict of interest in representing any of the Company, the
Indemnitor, the Indemnitee or any Interested Stockholder in an action to determine the Indemnitee’s
rights under this Agreement unless each of the Company, the Indemnitor and the Indemnitee waive
such conflict of interest in writing.

 

 

 

(g) The term “judgments, fines and amounts paid in settlement” shall be broadly
construed and shall include, without limitation, all direct and indirect payments of any type or
nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an
employee benefit plan).

Section 6. Limitation on Indemnification. Notwithstanding any other provision herein
to the contrary, the Indemnitor shall not be obligated pursuant to this Agreement:

(a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to an action, suit or proceeding (or part thereof), however denominated, initiated by
Indemnitee, other than (i) an action, suit or proceeding brought to establish or enforce a right to
indemnification or advancement of expenses under this Agreement (which shall be governed by the
provisions of Section 6(b) of this Agreement); (ii) an action, suit or proceeding (or part
thereof) that was authorized or consented to by the Board of Directors of the Indemnitor, it being
understood and agreed that such authorization or consent shall not be unreasonably withheld in
connection with any compulsory counterclaim brought by Indemnitee in response to an action, suit or
proceeding otherwise indemnifiable under this agreement; (iii) indemnification provided by the
Indemnitor pursuant to the powers vested in the Indemnitor under applicable law; or (iv) as
otherwise required by applicable law.

(b) Action for Indemnification. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any action, suit or proceeding instituted by Indemnitee to enforce or
interpret this Agreement, unless Indemnitee is successful in such action, suit or proceeding in
establishing Indemnitee’s right, in whole or in part, to indemnification or advancement of expenses
hereunder (in which case such indemnification or advancement shall be to the fullest extent
permitted by the Companies Law), or unless and to the extent that the court in such action, suit or
proceeding shall determine that, despite Indemnitee’s failure to establish their right to
indemnification, Indemnitee is entitled to indemnity for such expenses; provided, however, that
nothing in this Section 6(b) is intended to limit the Indemnitor’s obligations with respect to the
advancement of expenses to Indemnitee in connection with any such action, suit or proceeding
instituted by Indemnitee to enforce or interpret this Agreement, as provided in Section 2 hereof.

(c) Section 16(b) Matters. To indemnify Indemnitee on account of any suit in which
judgment is rendered against Indemnitee for disgorgement of profits made from the purchase or sale
by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934, as amended.

(d) Fraud or Willful Misconduct. To indemnify Indemnitee on account of conduct by
Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other
adjudication of a court or arbitration or administrative body of competent jurisdiction as to which
there is no further right or option of appeal or the time within which an appeal must be filed has
expired without such filing to have been knowingly fraudulent or constitute willful misconduct.

(e) Prohibited by Law. To indemnify Indemnitee in any circumstance where such
indemnification has been determined by a final (not interlocutory) judgment or other adjudication
of a court or arbitration or administrative body of competent jurisdiction as to which there is no
further right or option of appeal or the time within which an appeal must be filed has expired
without such filing to be prohibited by law.

 

 

 

Section 7. Certain Settlement Provisions. The Indemnitor shall have no obligation to
indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or
proceeding without the Indemnitor’s prior written consent. The Indemnitor and the Company shall
not,
without the prior written consent of the Indemnitee, settle any action, suit or proceeding for
which the Indemnitee would be entitled to indemnification under this Agreement, unless such
settlement includes an unconditional release of such Indemnitee from all liability on claims that
are the subject matter of such proceeding. Neither the Indemnitor, the Company nor Indemnitee will
unreasonably withhold his, her, its or their consent to any proposed settlement.

Section 8. Savings Clause. If any provision or provisions (or portion thereof) of this
Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the
Indemnitor shall nevertheless indemnify Indemnitee if Indemnitee was or is made or is threatened to
be made a party or is otherwise involved in, whether as a witness or otherwise, any threatened,
pending or completed action, suit or proceeding (brought in the right of the Company or otherwise),
whether civil, criminal, administrative or investigative and whether formal or informal, including
appeals, by reason of the fact that Indemnitee is or was or has agreed to serve as a director,
secretary, officer, employee or agent of the Company or the Indemnitor, or while serving as a
director or officer of the Company or the Indemnitor, is or was serving or has agreed to serve at
the request of the Company or the Indemnitor as a director, secretary, officer, employee or agent
(which, for purposes hereof, shall include a trustee, partner or manager or similar capacity) of
another corporation, limited liability company, partnership, joint venture, trust, employee benefit
plan or other enterprise, or by reason of any action alleged to have been taken or omitted in such
capacity, from and against all loss and liability suffered and expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of
Indemnitee in connection with such action, suit or proceeding, including any appeals, to the
fullest extent permitted by any applicable portion of this Agreement that shall not have been
invalidated and to the fullest extent permitted by the Companies Law.

Section 9. Contribution/Jointly Indemnifiable Claims.

(a) In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for herein is unavailable to Indemnitee in whole or in part, whether held
by a court of competent jurisdiction or otherwise, to be unavailable , it is agreed that, in such
event, the Indemnitor shall, to the fullest extent permitted by law, contribute to the payment of
all of Indemnitee’s loss and liability suffered and expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement reasonably incurred by or on behalf of Indemnitee
in connection with any action, suit or proceeding, including any appeals, in an amount that is just
and equitable in the circumstances of such action, suit or proceeding in order to reflect (i) the
relative benefits received by the Indemnitor and Indemnitee as a result of the events and
transactions giving rise to such action, suit or proceeding; and (ii) the relative fault of
Indemnitee and the Indemnitor (and its other directors, officers, employees and agents) in
connection with such events and transactions; provided, that, without limiting the generality of
the foregoing, such contribution shall not be required where such holding by the court is due to
any limitation on indemnification set forth in Section 4(c), 6 or 7 hereof.

(b) Given that certain jointly indemnifiable claims may arise due to the service of the
Indemnitee as a director, secretary, officer, employee or agent of the Indemnitor or Company at the
request of the Indemnitee-related entities, the Indemnitor acknowledges and agrees that the
Indemnitor shall be fully and primarily responsible for the payment to the Indemnitee in respect of
indemnification or advancement of expenses in connection with any such jointly indemnifiable claim,
pursuant to and in accordance with the terms of this Agreement, irrespective of any right of
recovery the Indemnitee may have from the Indemnitee-related entities. Under no circumstance shall
the Indemnitor be entitled to any right of subrogation or contribution by the Indemnitee-related
entities and no right of advancement or recovery the Indemnitee may have from the
Indemnitee-related entities shall reduce or otherwise alter the rights of the Indemnitee or the
obligations of the Indemnitor hereunder. In the event that any of the Indemnitee-related entities
shall make any payment to the Indemnitee in respect of

 

 

 

indemnification
or advancement of expenses with respect to any jointly indemnifiable claim, the Indemnitee-related
entity making such payment shall be subrogated to the extent of such payment to all of the rights
of recovery of the Indemnitee against the Indemnitor, whether pursuant to this agreement, the
memorandum and articles of association of the Indemnitor or otherwise, and Indemnitee shall execute
all papers reasonably required and shall do all things that may be reasonably necessary to secure
such rights, including the execution of such documents as may be necessary to enable the
Indemnitee-related entities effectively to bring suit to enforce such rights. The Indemnitor and
Indemnitee agree that each of the Indemnitee-related entities shall be third-party beneficiaries
with respect to this Section 9(b), entitled to enforce this Section 9(b) as though each such
Indemnitee-related entity were a party to this Agreement. For purposes of this Section 9(b), the
following terms shall have the following meanings:

(i) The term “Indemnitee-related entities” means any corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than
the Company, the Indemnitor or any other corporation, limited liability company, partnership, joint
venture, trust, employee benefit plan or other enterprise, for which Indemnitee has agreed, on
behalf of the Company or the Indemnitor or at the Company’s or the Indemnitor’s request, to serve
as a director, secretary, officer, employee or agent and which service is covered by the indemnity
described in this Agreement) from whom an Indemnitee may be entitled to indemnification or
advancement of expenses with respect to which, in whole or in part, the Indemnitor may also have an
indemnification or advancement obligation (other than as a result of obligations under an insurance
policy).

(ii) The term “jointly indemnifiable claims” shall be broadly construed and shall
include, without limitation, any action, suit or proceeding for which the Indemnitee shall be
entitled to indemnification or advancement of expenses from both the Indemnitee-related entities
and the Indemnitor pursuant to the Companies Law, any agreement or the memorandum and articles of
association, partnership agreement, operating agreement, certificate of formation, certificate of
limited partnership or comparable organizational documents of the Company or the Indemnitee-related
entities, as applicable.

Section 10. Form and Delivery of Communications. All notices, requests, demands and
other communications under this Agreement shall be in writing and shall be deemed to have been duly
given if (a) delivered by hand, upon receipt by the party to whom said notice or other
communication shall have been directed, (b) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable
overnight courier, one day after deposit with such courier and with written verification of
receipt, or (d) sent by email or facsimile transmission, with receipt of oral confirmation that
such transmission has been received. Notice to the Company shall be directed to:

Global Indemnity plc

Arthur Cox Building, Earlsfort Terrace

Dublin 2

Ireland

Attention: Larry A. Frakes

Phone: + 353 1618 0517

Facsimile: +353 1616 3901

Email: info @uai.ky

Notice to the Indemnitor shall be directed to:

United America Indemnity, Ltd.

Walker House, 87 Mary Street

George Town, Grand Cayman KY1-9005

Attention: Larry A. Frakes

Phone: (610) 664-1500

Facsimile: (345) 949-7886

Email: info @uai.ky

 

 

 

Notice to Indemnitee shall be directed to:

[XXXXXX]

[Address]

Phone: [(XXX)-XXX-XXXX]

Email: [XXX@XXX.com],

Facsimile: [(XXX)-XXX-XXXX].

Section 11. Nonexclusivity. The provisions for indemnification and advancement of
expenses set forth in this Agreement shall not be deemed exclusive of any other rights which
Indemnitee may have under any provision of law, in any court in which a proceeding is brought, the
Company’s memorandum and articles of association, other agreements or otherwise, and Indemnitee’s
rights hereunder shall inure to the benefit of the heirs, executors and administrators of
Indemnitee. No amendment or alteration of the Company’s memorandum and articles of association or
any other agreement shall adversely affect the rights provided to Indemnitee under this Agreement.
To the extent that a change in applicable law, whether by statute or judicial decision, permits
greater indemnification or advancement of expenses than would be afforded currently under the
memorandum and articles of association of the Indemnitor and this Agreement, it is the intent of
the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
by such change, subject to the restrictions expressly set forth herein or therein. Except as
expressly set forth herein, no right or remedy herein conferred is intended to be exclusive of any
other right or remedy, and every other right and remedy shall be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. Except as expressly set forth herein, the assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.

Section 12. No Construction as Employment Agreement. Nothing contained herein shall
be construed as giving Indemnitee any right to be retained as a director of the Company or the
Indemnitor or in the employ of the Company or the Indemnitor. For the avoidance of doubt, the
indemnification and advancement of expenses provided under this Agreement shall continue as to the
Indemnitee even though he or she may have ceased to be a director, secretary, officer, employee or
agent of the Company or the Indemnitor.

Section 13. Interpretation of Agreement. It is understood that the parties hereto
intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee
to the fullest extent now or hereafter permitted by the Companies Law.

Section 14. Entire Agreement. This Agreement and the documents expressly referred to
herein constitute the entire agreement between the parties hereto with respect to the matters
covered hereby, and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby are expressly superseded by this Agreement.

 

 

 

Section 15. Modification and Waiver. No supplement, modification, waiver or amendment
of this Agreement shall be binding unless executed in writing by all of the parties hereto. No
amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee
under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her
service as a director, secretary, officer, employee or agent of Company or Indemnitor, or while
serving as a director or officer of the Company or Indemnitor, is or was serving or has agreed to
serve at the request of the Company and/or
Indemnitor as a director, secretary, officer, employee or agent (which, for purposes hereof, shall
include a trustee, fiduciary, partner or manager or similar capacity) of another corporation,
limited liability company, partnership, joint venture, trust, employee benefit plan or other
enterprise, prior to such amendment, alteration or repeal. No waiver of any of the provisions of
this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver. For the avoidance
of doubt, this Agreement may not be terminated by the Indemnitor without Indemnitee’s prior written
consent.

Section 16. Successor and Assigns. All of the terms and provisions of this Agreement
shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto
and their respective successors, assigns, heirs, executors, administrators and legal
representatives. The Indemnitor shall require and cause any direct or indirect successor (whether
by purchase, merger, consolidation or otherwise) to all or substantially all of the business or
assets of such Indemnitor, by written agreement in form and substance reasonably satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Indemnitor would be required to perform if no such succession had taken place.

Section 17. Service of Process and Venue. The Indemnitor, the Indemnitee and the
Company hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out
of or in connection with this Agreement shall be brought only in the Grand Court of the Cayman
Islands (the “Cayman Court”), (b) consent to submit to the jurisdiction of the Cayman
Court for purposes of any action or proceeding arising out of or in connection with this
Agreement, (c) appoints to the extent such party is not otherwise subject to service of process in
Walkers Corporate Services Limited, Cayman Islands, irrevocably FAO Neydis Taveras, Walkers
Corporate Services Limited, Walker House, 87 Mary Street, George Town, Grand Cayman, KY1-9005,
Cayman Islands as its agent in the Cayman Islands as such party’s agent for acceptance of legal
process in connection with any such action or proceeding against such party with the same legal
force and validity as if served upon such party personally within the Cayman Islands, (d) waive
any objection to the laying of venue of any such action or proceeding in the Cayman Court, and (e)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in
the Cayman Court has been brought in an improper or inconvenient forum.

Section 18. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Cayman Islands. If a court of competent jurisdiction shall make a
final determination that the provisions of the law of any country other than Cayman Islands govern
indemnification by the Indemnitor of Indemnitee, then the indemnification provided under this
Agreement shall in all instances be enforceable to the fullest extent permitted under such law,
notwithstanding any provision of this Agreement to the contrary.

 

 

 

Section 19. Duration. This Agreement shall continue until and terminate upon the
later of (a) six years after the date that Indemnitee shall have ceased to serve as a director,
secretary, officer, employee or agent of the Company or the Indemnitor, or while serving as a
director, secretary, officer, employee or agent of the Company or the Indemnitor, is or was serving
or has agreed to serve at the request of the Company and/or Indemnitor as a director, secretary,
officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner
or manager or similar capacity) of another corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise, as applicable; or (b) one year
after the final termination of any action, suit or proceeding, including any appeal, then pending
in respect of which Indemnitee is granted rights of indemnification or advancement of expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to Section 3(e) of this Agreement
relating thereto.

Section 20. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed to be an original and all of which together shall be deemed to be one
and the same instrument, notwithstanding that both parties are not signatories to the original or
same counterpart.

Section 21. Headings. The section and subsection headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

 

 

This Indemnification Agreement has been duly executed and delivered to be effective the date
stated above.

	 	 	 	 	 	 	 
	 	 	UNITED AMERICA INDEMNITY, LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 

	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]