Document:

Exhibit (10)(AJ)

Exhibit (10)(X)

Non-Employee Director Compensation

		
	

Type of Compensation

	

Amount

	Annual Retainer

	$25,000

	Additional Monthly Retainer for Non-Employee Chairman

	$  8,333

	Board Attendance Fee per Meeting

	$  1,500

	Committee Attendance Fee per Meeting

	$  1,000

	Annual Retainer for Committee Chair (1)

	$  6,000/9,000

	Deferred Stock Units (2)

	$50,000

	Other Compensation

	(3)

______________

(1)

The chair of the Audit Committee and the chair of the Compensation and Personnel Development Committee receive an annual retainer of $9,000; the chairs of the other committees receive an annual retainer of $6,000.  

(2)

Each non-employee director continuing to serve on the Board of Directors of the Registrant after each annual meeting of stockholders receives an automatic grant of Deferred Stock Units under the Directors’ Deferred Stock Unit Plan equal to a value of $50,000 on the date of grant.  A Deferred Stock Unit is the right to receive, without payment to the Company, one share of common stock of the Company.  The Deferred Stock Units have a dividend equivalent feature, which provides for payment of cash dividends when and if cash dividends are paid on the outstanding common stock.

(3)

Directors are reimbursed for out-of-pocket expenses.  A non-employee director who serves on both the Harleysville Group and Harleysville Mutual boards receives only one retainer and, if the boards or the same committees of Harleysville Group and Harleysville Mutual meet on the same day, the non-employee director receives only one attendance fee.  In either situation, the retainer or attendance fee is allocated equally to Harleysville Group and Harleysville Mutual.United States Securities and Exchange Commission EDGAR Filing

Exhibit (10)(AB)

AMENDED AND RESTATED EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNITS

AWARD COMMITMENT

FEBRUARY 21, 2007

The Compensation & Personnel Development Committee (the “Committee”) of Harleysville Group Inc. (the “Company”) approved an award of Restricted Stock Units to ______________ (the “Employee”) pursuant to the Harleysville Group Inc. Amended and Restated Equity Incentive Plan (the “Plan”) on February 21, 2007 (the “Date of Grant”).  The applicable terms of the Plan are hereby incorporated by reference and are made a part of this Award.  All capitalized terms used in this Award Commitment shall have the meanings set forth in the Plan unless set forth herein.

1.

AWARD OF RESTRICTED STOCK UNITS.  Employee is hereby awarded ________ Restricted Stock Units (the “Units”), subject to the restrictions upon transfer and the forfeiture restrictions (the “Restrictions”), as described in the Plan and in this Award Commitment.

2.

RESTRICTION PERIOD.  

(a)

The Restrictions shall lapse on February 21, 2012 if (1) the Employee remains continuously employed with the Company until such date and (2) the Performance Goal set forth in paragraph 3 has been accomplished for the Performance Period (the “Vesting Date”), subject to earlier vesting as set forth in this paragraph 2.  

(b)

The Restrictions shall lapse upon the occurrence, prior to the Vesting Date, of the Employee’s death, Disability or Normal Retirement, in each case if the Performance Goal set forth in paragraph 3 is satisfied as of the December 31 immediately prior to the date of the Employee’s death, Disability or Normal Retirement, as the case may be.

(c)

Unless the Committee decides otherwise in its sole discretion to increase the number of Units that shall vest, and informs the Employee of such decision within two (2) weeks following the Employee’s Termination of Employment, in the event of Termination of Employment due to Early Retirement before the Vesting Date, if the Performance Goal set forth in paragraph 3 is satisfied as of the immediately preceding December 31, the Restrictions shall lapse on that proportion of the Units, rounded down to the nearest whole number, that represents the number of days from the Date of Grant until the date of Early Retirement divided by the number of days in the vesting period between the Date of Grant and the Vesting Date. 

Amended and Restated Equity Incentive Plan

Restricted Stock Units Award Commitment – Pg 2

February 21, 2007

(d)

The Committee has the authority, as set forth in the Plan, to accelerate the vesting of any of the Units.

3,

PERFORMANCE GOAL.  The Performance Goal is the Company’s attainment of an Adjusted Operating Profit for the Performance Period.  “Adjusted Operating Profit” means an operating income exceeding zero for the Company and its insurance subsidiaries for the Performance Period, excluding ISO-numbered catastrophes and including a normalized catastrophe load (which is based on the 15 year average catastrophe load by line of business for the period beginning 15 years before January 1, 1992 and ending December 31, 2006).  The normalized catastrophe load will be applied by line of business based on the line of business mix over the Performance Period.   

4.

PERFORMANCE PERIOD.  The Performance Period is the period that begins on January 1, 2007 and ends on the earlier of December 31, 2011 or December 31 of the calendar year preceding the Employee’s Termination of Employment.

5.

FORFEITURE OF UNITS.  If Employee terminates employment for any reason prior to the Vesting Date, then that portion of the Units for which the Restrictions do not lapse as a result of the Termination of Employment under paragraph 2, including that portion of the Units for which the Restrictions do not lapse as a result of the Committee’s exercise of its discretion under paragraph 2(c) or 2(d) shall be forfeited and immediately revert to the Company.  If the Restrictions do not lapse on the Vesting Date because the Performance Goal has not been accomplished, the Units will be forfeited and immediately revert to the Company.

6.

RESTRICTION UPON TRANSFER.  Until the Restrictions lapse under paragraph 2 of this Award Commitment, the Units may not be sold, assigned, transferred, exchanged, pledged, hypothecated, or otherwise encumbered, except as provided in the Plan.  

7.

LAPSE OF RESTRICTIONS.  

(a)

Shares of Common Stock will be issued upon vesting of the Units.  The issuance may be effected by the issuance of a certificate or a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange on which the Common Stock is then listed.  

(b)

Prior to the issuance of Shares of Common Stock upon vesting, the Employee shall be required to make full payment to the Company of all amounts, which, under federal, state or local law, the Company is required to withhold related to the vesting of the Units.

(c)

The Employee may surrender already owned shares of the Company’s Common Stock or forego delivery of shares due as a result of the lapse of 

Amended and Restated Equity Incentive Plan

Restricted Stock Units Award Commitment – Pg 3

February 21, 2007

Restrictions of this Award in order to pay any withholding tax required to be collected upon lapse of the Restrictions.  Such Shares shall be valued at their Fair Market Value as of the trading day immediately prior to the date of the lapse of Restrictions.  

8.

CHANGE IN CONTROL.  In the event of a Change in Control, notwithstanding any other restrictive provisions in this Award Commitment or in the Plan, all Restrictions on the Units shall lapse immediately and Shares will be issued promptly in accordance with the Plan.  

9.

LIMITATIONS ON RIGHTS AS A STOCKHOLDER.  The Employee shall have no rights as a stockholder with respect to the Units represented by the Award Commitment until the date of the issuance of Shares of Common Stock in book entry or certificated form.

I hereby certify that the foregoing Award, with the foregoing terms and conditions has been authorized by the Committee.

			
	                                                       

	HARLEYSVILLE GROUP INC.

	 
	 

	 
	 
	 

	 
	By:  

	/s/  ROBERT A. KAUFFMAN

	 
	 
	Robert A. Kauffman

	 
	 
	Senior Vice President, Secretary

& General Counsel

I acknowledge receipt of a copy of this Award Commitment and have read, understand and accept its terms and conditions.ex4-1.htm

    Exhibit
4.1

     

    Subscription
Rights Certificate Number:

    Number
of Common Shares and Common

    Share Equivalents Held on Record
Date:

    Number
of Rights Represented by this

    Subscription Rights
Certificate:

    Maximum
Number of Convertible Preferred

    Shares for which You May
Subscribe:

     

    CENTERLINE
HOLDING COMPANY

     

    

     

    SUBSCRIPTION
RIGHTS CERTIFICATE TO SUBSCRIBE FOR 11.0% CUMULATIVE CONVERTIBLE PREFERRED
SHARES, SERIES A-1

    FOR
HOLDERS OF RECORD

    OF
COMMON SHARES OR COMMON SHARE EQUIVALENTS ON FEBRUARY 4, 2008 (THE “RECORD
DATE”).

     

    EXERCISABLE
ON OR BEFORE 5:00 P.M., EASTERN TIME, ON APRIL 4, 2008, UNLESS EXTENDED BY
THE COMPANY (THE “EXPIRATION TIME”)

     

    Centerline
Holding Company, a Delaware statutory trust (the “Company”), is conducting a
rights offering (the “Rights Offering”), which entitles the holders of eligible
securities (as defined in the prospectus supplement dated March 7,
2008 (the “Prospectus”)) to receive subscription rights for eligible securities
held by them at the close of business on the Record Date. As the registered
owner of this certificate (the “Subscription Rights Certificate”), you are the
owner of the number of subscription rights (each a “Right”) shown above. Six
Rights entitle you to subscribe for one 11.0% cumulative convertible preferred
share, series A-1 (each a “Convertible Preferred Share”) of the Company
(the “Subscription Privilege”). You may subscribe for such Convertible Preferred
Shares at the subscription price of $11.70 per share (the “Subscription
Price”).

     

    Set forth
above is the number of Rights evidenced by this Subscription Rights Certificate
that you are entitled to exercise pursuant to your Subscription Privilege. You
have been issued one Right for each common share and common share equivalent (as
defined in the Prospectus) that you held at the close of business on the Record
Date. FOR A MORE COMPLETE DESCRIPTION OF THE TERMS AND CONDITIONS OF THE RIGHTS
OFFERING, PLEASE REFER TO THE PROSPECTUS, WHICH IS INCORPORATED HEREIN BY
REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM THE
INFORMATION AGENT, THE ALTMAN GROUP, INC.

     

    THIS
SUBSCRIPTION RIGHTS CERTIFICATE AND THE RIGHTS HEREUNDER ARE NON-TRANSFERABLE,
EXCEPT AS DISCLOSED IN THE PROSPECTUS.

     

    SUBSCRIPTION
FOR SHARES: To subscribe for Convertible Preferred Shares pursuant to your
Subscription Privilege, please complete all applicable information on the
reverse side of this Subscription Rights Certificate.

     

     (Complete
appropriate lines and section on reverse side of this Subscription Rights
Certificate.)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      
        
          

        

      

      Payment of Shares: Full
payment for Subscription Privilege shares must accompany your completed
Subscription Rights Certificate (or Notice of Guaranteed Delivery) before the
Expiration Time. Please see the procedures described in the Prospectus under
“The Rights Offering—Guaranteed Delivery Procedures” if you are utilizing the
Notice of Guaranteed Delivery method. Please reference your Subscription Rights
Certificate Number shown above on your certified check, cashier’s check, money
order or Notice of Guaranteed Delivery.

      
        
 

    

    Please
send your completed Subscription Rights Certificate (or Notice of Guaranteed
Delivery) and payment to the following:

     

    To:

    
      	 	
              BY
      UNITED STATES MAIL:

               

              Centerline
      Holding Company

              c/o
      Computershare Trust Company, N.A.     

              P.O.
      Box 859208

              Braintree,
      MA  02185-9208

              Attention:
      Voluntary Corporate Actions

            	
              BY
      OVERNIGHT COURIER:

               

              Centerline
      Holding Company

              c/o
      Computershare Trust Company, N.A.

              161
      Bay State Drive

              Braintree,
      MA  02184

              Attention:
      Voluntary Corporate Actions

            

    

     

     

    
      PLEASE
FILL IN ALL APPLICABLE INFORMATION

       

      
        	
                A.    Subscription
      Privilege(1)
(6
      Rights = 1 Convertible Preferred Share)    
      

                 

              	
                       
                                  
(No.
      of Shares)

              	
                    
      X     

              	
                    
      $     

              	
                     
                
      $11.70           
      

                (Price
      Per Share)

              	
                    
      =     

              	
                    
      $     

              	
                                                           
(Purchase
      Price)(2)

              

      

      
        	
                (1)

              	
                As
      described in the Prospectus, you must exercise enough Rights to purchase
      at least one whole Convertible Preferred
Share.

              

      

      
        	
                (2)

              	
                Enclosed herewith or previously
      sent with Notice of Guaranteed
Delivery.

              

      

       

      TO
SUBSCRIBE: I hereby irrevocably subscribe for the number of Convertible
Preferred Shares indicated in line “A” above upon the terms and conditions
specified in the Prospectus relating thereto, receipt of which is
acknowledged.

       

      

                                  

      Signature(s)
of Subscriber(s)

       

                                  

      Address
for delivery of a direct registration system (DRS) statement if other than shown
on front

       

      If
permanent change of address, check here   o

       

      Please
give your telephone number (     )                        

       

      Please
give your email address:                   
 

       

      
        	
                If
      you are signing in your capacity as a trustee, executor, administrator,
      guardian, attorney-in-fact, agent, officer of a corporation or another
      acting in a fiduciary or representative capacity, please provide the
      following information:

                 

              
	
                Name:                                 

              	 
      
	 
      	 
      
	
                Capacity:                                   

              	 
      
	 
      	 
      
	
                Telephone
      Number:                         

              	 
      

      

      

      IMPORTANT:
Signature guarantee by (a) a commercial bank or trust company; (b) a member firm
of a domestic stock exchange; or (c) a savings bank or credit union, is required
if this Subscription Rights Certificate is not registered in your name or you
are not an eligible institution:

       

      
        	
                Signature: 

              	 
	 	
                (Name
      of Bank or Firm) 

              
	 	 
	
                Guaranteed
      By: 

              	 
	 	
                (Signature/Title)

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