Document:

EX-10.1:

 

	 	 	 
	

	 	2004 Long-Term Incentive Plan
	

	 	Performance Unit Award Agreement
	

	 	
W. R. Berkley Corporation
	

	 	
                     , ___, 20___

 

 

W. R. Berkley Corporation

2004 Long-Term Incentive Plan

Performance Unit Award Agreement

          THIS AGREEMENT, effective ___, 20___, represents an Award of Performance Units
by W. R. Berkley Corporation (the “Company”), to the Participant named below, pursuant to the
provisions of the W. R. Berkley Corporation 2004 Long-Term Incentive Plan (the “Plan”). The value
of the Performance Units will be determined based on the increase in the Company’s Book Value Per
Share during the Performance Cycle, as determined below.

          The Plan provides a complete description of the terms and conditions governing the Performance
Units. If there is any inconsistency between the terms of this Agreement and the terms of the Plan,
the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.
All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set
forth otherwise herein. The parties hereto agree as follows:

     1. General Grant Information. The individual named below has been selected to be a Participant
in the Plan and receive a grant of Performance Units, as specified below:

	 	(a)  	Participant:
	 
	 	(b)  	Number of Performance Units Granted:
	 
	 	(c)  	Initial Value of Performance Units: $0.00
	 
	 	(d)  	Date of Grant: ___, 20___
	 
	 	(e)  	Performance Measure: Increase in Book Value Per Share.

     2. Performance Period. The Performance Period commences on ___, 20___, and ends on
___, 20___.

     3. Performance Measure. The Performance Measure, as specified above, is expressed in terms of
the Company’s increase in Book Value Per Share.

     4. Value of a Performance Unit. Each Performance Unit shall have a value determined by adding
together the Increase in Book Value Per Share for each fiscal year of the Performance Period and
multiplying the resulting sum by ten (10); provided, however, that if the Increase
in Book Value Per Share for a particular fiscal year is not a positive number, there will be no
Increase in Book Value Per Share for that year, and thereafter there will only be an Increase in
Book Value Per Share that will be used to increase the value of a Performance Unit to the extent
that any subsequent Ending Book Value Per Share after the year in which the Increase in Book Value
Per Share was not positive exceeds the last Ending Book Value Per Share that resulted in an
increase to the Performance Unit value. The maximum value of a Performance Unit shall be ___
___dollars ($___.00).

 

 

     5. Eligibility for Earned Performance Units. A Participant shall only be eligible for payment
of earned Performance Units. Performance Units will be earned only if the Participant’s employment
with the Company:

(a) Continues through the earlier of (x) the end of the Performance Period or (y) the
last day of the fiscal year in which the maximum value of the Performance Units is
achieved (the “Maximum Value Date”); or

(b) Is terminated as a result of death, Disability or Retirement, or by the Company or a
Subsidiary or Affiliate, as applicable, for any reason other than Cause prior to the
earlier of the end of the Performance Period or the Maximum Value Date.

          Notwithstanding anything herein to the to the contrary, the Performance Units shall not be
earned and shall not become payable unless and until the Participant has complied with the
Competitive Action restriction set forth in Section 6(d) below on or prior to the Settlement Date.

     6. Payout of Performance Units. (a) Except as set forth in Section 6(b) or 9 below, the
aggregate positive value, if any, of the earned Performance Units, based on the value of the earned
Performance Units at the earlier of (i) last day of the Performance Period or (ii) the Maximum
Value Date, in either case as determined in accordance with this Agreement, shall be paid to the
Participant in cash. Such payment of the value of earned Performance Units shall be made within
ninety (90) calendar days following the earlier of such date.

          (b) If a Participant’s employment with the Company and all Subsidiaries and Affiliates
terminates as a result of death, Disability or Retirement, or is terminated by the Company or a
Subsidiary or Affiliate, as applicable, for any reason other than Cause prior to the earlier of the
end of the Performance Period or the Maximum Value Date, as applicable, the Company shall pay to
the Participant the cash value of the Performance Units measured as of the end of the fiscal year
immediately prior to the fiscal year in which such termination of employment occurred. Payment of
such amount upon such termination of the Participant’s employment shall extinguish the Company’s
obligation hereunder and the Participant shall not be entitled to any further payment or
appreciation in the value of the Performance Units. In the event of the death of the Participant,
such payment shall be made to the Participant’s beneficiary (or the Participant’s estate if no
beneficiary has been chosen or if such beneficiary has predeceased the Participant). Any payment
upon any such termination of employment shall be made within ninety (90) calendar days following
such termination. Termination of the Participant’s employment with the Company and all
Subsidiaries and Affiliates for any reason other than death, Disability or Retirement or by the
Company or a Subsidiary or Affiliate, as applicable, without Cause prior to the earlier of the end
of the Performance Period or the Maximum Value Date, as applicable, shall require forfeiture of
this entire Award, with no payment to the Participant.

          (c) This Award shall expire and the Company shall have no further obligation to make any
payment hereunder once a payment is made pursuant to Section 6(a) or (b) above or Section 9 below.

          (d) The Participant agrees not to engage in any Competitive Action from the date hereof
through the second anniversary of the Settlement Date. If on or prior to the Settlement Date, the

	 	 	 	 	 	 	 
	 

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Participant engages in a Competitive Action or enters into, or has entered into, an agreement
(written, oral or otherwise) to engage in Competitive Action, all of the Performance Units shall be
immediately forfeited, and the Participant shall have no further rights with respect to such
Performance Units. In the event that the Participant engages in any Competitive Action or enters
into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive
Action after the Settlement Date but on or prior to the second anniversary of the Settlement Date,
the Participant shall pay to the Company, upon demand by the Company, an amount equal to the amount
paid to the Participant in respect of the Performance Units on the Settlement Date. The
determination as to whether the Participant has engaged in any Competitive Action shall be made by
the Committee in its sole and absolute discretion. The Committee’s exercise or nonexercise of such
discretion with respect to any particular event or occurrence by or with respect to the Participant
or any other recipient of performance units under the Plan shall not in any way reduce or eliminate
the authority of the Committee to (i) determine that any event or occurrence by or with respect to
the Participant constitutes engaging in Competitive Action or (ii) determine the related
Competitive Action date. The Participant acknowledges that the restriction on engaging in
Competitive Action, in view of the nature of the business in which the Company is engaged, is
reasonable in scope (as to both the temporal and geographical limits) and necessary in order to
protect the legitimate business interests of the Company, and that any violation thereof would
result in irreparable injuries to the Company. The Participant acknowledges further the amounts
required to be paid to the Company pursuant to this provision are reasonable and are not liquidated
damages nor shall they be characterized as such.

     7. Nontransferability. Performance Units may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.

     8. Administration. This Agreement and the rights of Participant hereunder are subject to all
the terms and conditions of the Plan, as the same may be amended from time to time, as well as to
such rules and regulations as the Committee may adopt for administration of the Plan. It is
expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan and this Agreement, all
of which shall be final and binding upon the Participant, including without limitation any
determination concerning a Competitive Action. Any inconsistency between the Agreement and the Plan
shall be resolved in favor of the Plan.

     9. Change of Control. Upon the occurrence of a Change of Control, unless otherwise
specifically prohibited under applicable laws or by the rules and regulations of any governing
governmental agencies or national securities exchanges, the value of all Performance Units shall be
determined and fixed as of the end of the fiscal year immediately preceding the year in which such
Change in Control occurs, and such value shall be paid to the Participant in accordance with, and
subject to, the provisions of Sections 5 and 6 hereof. Performance Units shall not accrue any
additional value for the fiscal year in which a Change in Control occurs or for any subsequent
fiscal years.

	 	 	 	 	 	 	 
	 

	 	 	3	 	 	 

 

 

	10.  	Miscellaneous.

          (a) This Agreement shall not confer upon the Participant any right to continuation of
employment by the Company, nor shall this Agreement interfere in any way with the Company’s right
to terminate the Participant’s employment at any time.

          (b) The Committee may terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any material way adversely affect the
Participant’s rights under this Agreement.

          (c) The Company or a Subsidiary or Affiliate, as applicable, shall have the authority to
deduct or withhold from any payment hereunder or from any other source of the Participant’s
compensation from the Company or a Subsidiary or Affiliate, as applicable, or may require the
Participant to remit to the Company or a Subsidiary or Affiliate, as applicable, before payment
hereunder, an amount sufficient to satisfy federal, state, and local taxes (including Participant’s
FICA obligation) required by law to be withheld with respect to any taxable event arising out of
this Agreement.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) To the extent not preempted by federal law, this Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware.

          (f) All obligations of the Company under the Plan and this Agreement with respect to the
Performance Units shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business and/or assets of the Company.

          (g) The provisions of this Agreement are severable and if any one or more provisions are
determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions
shall nevertheless be binding and enforceable.

          (h) By accepting this Award or other benefit under the Plan, the Participant and each person
claiming under or through the Participant shall be conclusively deemed to have indicated their
acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the
Board or the Committee.

          (i) The Participant, every person claiming under or through the Participant, and the Company
hereby waive to the fullest extent permitted by applicable law any right to a trial by jury with
respect to any litigation directly or indirectly arising out of, under, or in connection with the
Plan or this Award Agreement issued pursuant to the Plan.

          (j) Definitions. The following terms shall have the meanings ascribed to them when used in
this Agreement:

	 	 	 	 	 	 	 
	 

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               (i) “Beginning Book Value Per Share” means $___.___for the first fiscal
year of the Performance
Period, and for each subsequent fiscal year shall mean the Book Value Per Share determined as of
the end of the prior fiscal year.

               (ii) “Book Value Per Share” as of the end of any fiscal year shall be equal to the quotient of
X divided by Y, where X is equal to the sum of A, B and C minus D and Y is equal to the number of
shares of the Company’s common stock issued and outstanding, net of treasury shares, as of such
date [ (A+B+C-D) ÷Y]. For purposes of this calculation, (A) shall be equal to the Company’s
stockholders’ equity as of the end of the fiscal year, as determined in accordance with generally
accepted accounting principles and reported in the Company’s audited financial statements, (B)
shall be equal to the cumulative after-tax expense of the Company from ___, 20___through the
end of such fiscal year arising from all the Awards made under the Plan, (C) shall be equal to the
cumulative cash dividends on Company common stock declared by the Company from ___, 20___
through the end of such fiscal year, and (D) shall be equal to the accumulated other comprehensive
income of the Company for such fiscal year. Book Value Per Share shall be calculated without
taking into account any forward or reverse split of the Company’s common stock or any stock
dividend declared on the Company’s common stock and there shall be no adjustment to the number of
Performance Units awarded hereunder in either event. The calculation of Book Value Per Share shall
also exclude the effect of any stock repurchase program undertaken by the Company.

               (iii) “Cause” means Cause as defined in any active employment agreement between the
Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of
any such employment agreement, (i) fraud, personal dishonesty, embezzlement or acts of gross
negligence or gross misconduct on the part of Participant in the course of his or her employment or
services, (ii) the Participant’s engagement in conduct that is materially injurious to the Company,
a Subsidiary or an Affiliate, (iii) the Participant’s conviction by a court of competent
jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal
charge (other than minor traffic violations) which could reasonably be expected to have a material
adverse impact on the Company’s or a Subsidiary’s or an Affiliate’s reputation or business; (iv)
public or consistent drunkenness by the Participant or his or her illegal use of narcotics which
is, or could reasonably be expected to become, materially injurious to the reputation or business
of the Company, a Subsidiary or an Affiliate or which impairs, or could reasonably be expected to
impair, the performance of the Participant’s duties to the Company, a Subsidiary or an Affiliate;
(v) willful failure by the Participant to follow the lawful directions of a superior officer; or
(vi) the Participant’s continued and material failure to fulfill his or her employment obligations
to the Company or any Subsidiary or Affiliate.

               (iv) “Competitive Action” means, either directly or indirectly, whether as an employee,
consultant, independent contractor, partner, joint venturer or otherwise, (i) in any geographical
area where the Company is engaged in business, engaging in any business activities which are
competitive, to any material extent with any type or kind of business activities conducted by the
Company in such area, (ii) on behalf of any person or entity engaged in business activities
competitive with the business activities of the Company, soliciting or inducing, or in any manner
attempting to solicit or induce, any person employed by, or as an agent of, the Company to
terminate such person’s employment or agency relationship, as the case may be, with the Company,
(iii) diverting, or attempting to divert, any person, concern or entity from doing business with
the Company or attempts to induce any such person, concern or entity to cease being a customer of
the

	 	 	 	 	 	 	 
	 

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Company or (iv) making use of, or attempting to make use of, the Company’s property or
proprietary information, other than in the course of the performance of services to the Company or
at the direction of the Company. References to the Company in this definition shall include the
Company and all Subsidiaries and Affiliates.

               (iv) “Disability” means the inability of the Participant to continue to perform services for
the Company or any Subsidiary or Affiliate, as applicable, on account of his or her total and
permanent disability as determined by the Committee.

               (v) “Ending Book Value Per Share” means for the applicable fiscal year, the Book Value Per
Share determined as of the end of such fiscal year.

               (vi) “Increase in Book Value Per Share” means the amount, if any, by which the Ending Book
Value Per Share exceeds Beginning Book Value Per Share for the applicable fiscal year.

               (vii) “Maximum Value Date” shall have the meaning ascribed thereto in Section 5 herein.

               (viii) “Retirement” means the Participant’s retirement from service with the Company and all
Subsidiaries and Affiliates with the written consent of the Chairman of the Board of the Company or
the Committee.

               (ix) “Settlement Date” means the date that the value of the Performance Units is actually paid
to the Participant.

          (k) This Award is granted pursuant to the proposed W. R. Berkley Corporation 2004 Long-Term
Incentive Plan and, as such, is contingent on the Company’s stockholders approving the 2004
Long-Term Incentive Plan at the annual meeting on May 11, 2004. If stockholders do not approve the
W. R. Berkley Corporation 2004 Long-Term Incentive Plan, then this Award will be considered null
and void ab initio, and neither the Company nor the Participant will be bound by
any of the terms of this Award.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of
______ ___, 20___.

	 	 	 	 	 
	 	W. R. Berkley Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	

	 	 	 	 
	

	 	Participant
	 	 

	 	 	 	 	 	 	 
	 

	 	 	6	 	 	 

 

 

Please indicate the name of the Participant’s beneficiary:

	 	 	 
	

	 	 
	Name

	 	 

     The Participant may change his or her beneficiary hereunder only by written notice to the
Company, which change will become effective only upon receipt by the Company during the
Participant’s lifetime.

	 	 	 	 	 	 	 
	 

	 	 	7EX-10.2:

 

L1

RESTRICTED STOCK UNIT AGREEMENT

Under the W. R. Berkley Corporation 2003 Stock Incentive Plan

               THIS AGREEMENT, dated as of ___, 200___, by and between W. R. BERKLEY CORPORATION, a
Delaware corporation (the “Company”), and ___ (the “Grantee”).

W I T N E S S E T H:

               WHEREAS, the Grantee is an employee of the Company or subsidiary thereof (an “Employee”), and
the Company wishes to grant the Grantee a notional interest in shares of the Company’s common
stock, par value $0.20 per share (the “Stock”), subject to certain restrictions (the “Restricted
Stock Units”), on the terms and conditions set forth herein; and

               WHEREAS, through the grant of these Restricted Stock Units, the Company hopes to incentivise
and retain the services of Grantee and encourage stock ownership by Grantee in order to give
Grantee a proprietary interest in the Company’s success and align Grantee’s interest with those of
the stockholders of the Company; and

               WHEREAS, the Restricted Stock Units awarded Grantee hereunder vest after five years, however
the issuance of the Stock after vesting is deferred until ninety 90 days following Grantee’s
termination of employment.

               NOW, THEREFORE, in consideration of the covenants and agreements herein contained, the parties
hereto hereby agree as follows:

     SECTION 1. Grant of Restricted Stock Units. As of the date hereof, subject to the
terms and conditions of this Agreement and the W. R. Berkley Corporation 2003 Stock Incentive Plan
(the “Plan”), the Company hereby grants to the Grantee
___ Restricted Stock Units. Each
Restricted Stock Unit shall represent the right to receive one share of Stock subject to the terms
and conditions set forth herein. Capitalized terms not defined herein shall have the meaning
ascribed to them in the Plan.

     SECTION 2. Non-Transferability. Except as specifically consented to by the
Compensation and Stock Option Committee (the “Committee”) of the Board of Directors of the Company
(the “Board”), the Grantee may not sell, transfer, pledge, or otherwise encumber or dispose of the
Restricted Stock Units other than by will, the laws of descent and distribution, or as otherwise
provided for in the Plan.

     SECTION 3. Vesting; Forfeiture.

          (a) The Restricted Stock Units granted hereunder shall vest (subject to forfeiture, as set
forth in Section 3(d) below) on the fifth anniversary of the date hereof, provided the Grantee has
remained an Employee from the date hereof through such fifth anniversary. In the event that
Grantee’s employment with the Company is terminated on account of death or Disability (as

 

 

defined below), a pro-rata portion of the Restricted Stock Units shall vest (subject to
forfeiture, as set forth in Section 3(d) below) immediately upon such termination. The number of
Restricted Stock Units that will vest upon termination on account of death or Disability shall be
the total number of Restricted Stock Units granted hereunder multiplied by a fraction, the
numerator of which is the number of days the Grantee served as an Employee from the date of this
Agreement to the date of such termination and the denominator of which is one thousand eight
hundred twenty five (1,825). Notwithstanding the vesting schedule set forth above, the Committee
shall have absolute discretion to accelerate the vesting (subject to forfeiture, as set forth in
Section 3(d) below) of the Restricted Stock Units at any time and for any reason, including without
limitation retirement.

               (b) In the event that Grantee’s employment with the Company is terminated for any reason, all
unvested Restricted Stock Units (except for those that vest immediately upon death or Disability)
shall be forfeited, and the Grantee shall have no further rights with respect to such Restricted
Stock Units.

               (c) For purposes of this Agreement, the Grantee’s employment will be deemed to have terminated
on account of a Disability if such employment has terminated on account of the total and permanent
disability of the Grantee, as determined by the Committee in its sole discretion.

               (d) The Grantee agrees not to engage in a Competitive Action (as defined below) from the date
hereof through the first anniversary of the date of Grantee’s termination of employment with the
Company. If on or prior to the Settlement Date (as defined below), the Grantee engages in a
Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise)
to engage in Competitive Action, all of the Restricted Stock Units (whether vested or not) shall be
immediately forfeited, and the Grantee shall have no further rights with respect to such Restricted
Stock Units or underlying shares of Stock. In the event that the Grantee engages in a Competitive
Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in
Competitive Action after the Settlement Date but on or prior to the first anniversary of the
Grantee’s termination of employment with the Company, the Grantee shall pay to the Company, upon
demand by the Company, an amount equal to (i) the value, as of the Settlement Date, of the number
of shares of Stock delivered to the Grantee in respect of Restricted Stock Units, (ii) the amount
paid to the Grantee on the Settlement Date in respect of Dividend Equivalents (as defined below)
and interest thereon and (iii) the value of all dividends, if any, paid to the Grantee in respect
of the shares of Stock delivered to the Grantee on the Settlement Date, provided that any amounts
due under (ii) and (iii) above must be remitted to the Company in addition to the return of shares.
The Grantee may satisfy the payment obligation to the Company of the portion due under (i) above
by returning the shares delivered to the Grantee on the Settlement Date, provided that any amounts
due under (ii) and (iii) above must be remitted to the Company in addition to the return of shares.
Grantee acknowledges that the restriction on engaging in Competitive Action, in view of the nature
of the business in which the Company is engaged, is reasonable in scope (as to both the temporal
and geographical limits) and necessary in order to protect the legitimate business interests of the
Company, and that any violation thereof would result in irreparable injuries to the Company.
Grantee acknowledges further the amounts required to be paid to the Company pursuant to this
provision are reasonable and are not liquidated damages nor shall they be characterized as such.

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               (e) For purposes of this Agreement, the Grantee will be deemed to engage in a “Competitive
Action” if, either directly or indirectly, and whether as an employee, consultant, independent
contractor, partner, joint venturer or otherwise, the Grantee (i) who was last employed by W. R.
Berkley Corporation, engages in or directs any business activities, in any geographical area where
the Company is engaged in business or outside of any such geographical area, in either case, which
are competitive with any business activities conducted by the Company in such geographical area,
(ii) who was last employed by a subsidiary of the Company, engages in or directs any business
activities, in any geographical area where such subsidiary is engaged in business or outside of any
such geographical area, in either case, which are competitive with any business activities
conducted by such subsidiary in such geographical area (iii) on behalf of any person or entity
engaged in business activities competitive with the business activities of the Company, solicits or
induces, or in any manner attempts to solicit or induce, any person employed by, or as an agent of,
the Company to terminate such person’s employment or agency relationship, as the case may be, with
the Company, (iv) diverts, or attempts to divert, any person, concern or entity from doing business
with the Company or attempts to induce any such person, concern or entity to cease being a customer
of the Company or (v) makes use of, or attempts to make use of, the Company’s property or
proprietary information, other than in the course of the performance of services to the Company or
at the direction of the Company. The determination as to whether the Grantee has engaged in a
Competitive Action (as defined herein) shall be made by the Committee in its sole and absolute
discretion. The Committee’s exercise or nonexercise of such discretion with respect to any
particular event or occurrence by or with respect to the Grantee or any other recipient of
restricted stock units shall not in any way reduce or eliminate the authority of the Committee to
(i) determine that any event or occurrence by or with respect to the Grantee constitutes engaging
in a Competitive Action or (ii) determine the related Competitive Action date.

          SECTION 4. Delivery and Possession of Share Certificates. Ninety (90) days following
the Grantee’s termination of employment for any reason, including death or Disability, or such
earlier date as determined by the Committee in its sole discretion (the “Settlement Date”),
provided the Grantee has not engaged in, or entered into an agreement (written, oral or otherwise)
to engage in, a Competitive Action, the Company shall deliver to the Grantee (or the Grantee’s
estate in the event of death) a certificate or certificates representing the number of shares of
Stock equal to the number of vested Restricted Stock Units (if any) as of the date of such
termination and Grantee shall take possession thereof. Notwithstanding anything herein to the
contrary, in the event of a Change of Control, the Restricted Stock Units shall immediately become
fully vested and no longer subject to forfeiture and the Company shall immediately deliver to the
Grantee (or the Grantee’s estate in the event of death) a certificate or certificates representing
the number of shares of Stock equal to the number of vested Restricted Stock Units. The terms with
respect to any deferral are subject to change and amendment to comply with laws or regulation.

          SECTION 5. Dividends and Dividend Equivalents. No dividends or dividend equivalents
shall accrue or be paid with respect to any outstanding unvested Restricted Stock Units. With
respect to each vested Restricted Stock Unit, an amount equal to any cash dividends paid by the
Company in respect of a share of Stock shall be accrued for the account of the Grantee at the time
any such dividends are paid to stockholders (the “Dividend Equivalents”). The Dividend Equivalents
shall be subject to forfeiture to the same extent that the corresponding Restricted Stock Units are
subject to forfeiture pursuant to Section 3. On the Settlement Date, an amount equal to the
Dividend Equivalents accrued for the account of the Grantee (plus any interest

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accrued with respect to such Dividend Equivalents) shall be paid to the Grantee in cash.
Accrued Dividend Equivalents shall be credited with interest, compounded quarterly. The interest
rate will be the prime rate in effect from time to time as reported in the Wall Street Journal or
as established by the Committee prior to the beginning of each year.

          SECTION 6.  Rights of Stockholder. Grantee or any transferee will have no rights as
a stockholder with respect to any share covered by this Agreement until the Grantee becomes the
holder of record of such shares.

          SECTION 7. Company; Grantee.

               (a) The term “Company” as used in Section 3 or otherwise in this Agreement with reference to
the Grantee’s employment shall include the Company and its subsidiaries. The term “subsidiary” as
used in this Agreement shall mean any subsidiary of the Company within the meaning of Section
424(f) of the Internal Revenue Code of 1986, as amended.

               (b) Whenever the word “Grantee” is used in any provision of this Agreement under circumstances
where the provision should logically be construed to apply to the executors, the administrators, or
the person or persons to whom the Restricted Stock Units may be transferred by will or by the laws
of descent and distribution, the word “Grantee” shall be deemed to include such person or persons.

          SECTION 8. Compliance with Law. Notwithstanding any of the provisions hereof, the
Grantee hereby agrees and the Company will not be obligated to issue or transfer shares to Grantee
hereunder, if the issuance or transfer of such shares will constitute a violation by the Grantee or
the Company of any provision of any law or regulation of any governmental authority. Any
determination in this connection by the Committee will be final, binding and conclusive. The
Company shall in no event be obliged to register any securities pursuant to the Securities Act or
to take any other affirmative action in order to cause the issuance or transfer of shares acquired
pursuant to this Agreement to comply with any law or regulation of any governmental authority.

          SECTION 9. Notice. Every notice or other communication relating to this Agreement
shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at
such address as may from time to time be designated by it in a notice mailed or delivered to the
other party as herein provided, provided that, unless and until some other address be so
designated, all notices or communications by the Grantee to the Company shall be mailed or
delivered to the Company at its principal executive office, and all notices or communications by
the Company to the Grantee may be given to the Grantee personally or may be mailed to Grantee at
the Grantee’s last known address, as reflected in the Company’s records.

          SECTION 10. Changes in Capital Structure. The existence of this Agreement will not
affect in any way the right or power of the Company or its stockholders to make or authorize any of
the following:

     (a) any adjustments, recapitalization, reorganizations or other changes in the
Company’s capital structure or its business;

     (b) any merger or consolidation of the Company;

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     (c) any issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred to prior preference stocks ahead of or affecting the Stock or the
rights thereof or convertible into or exchangeable for Stock;

     (d) the dissolution or liquidation of the Company;

     (e) any sale or transfer of all or any part of its assets or
business; or

     (f) any other corporate act or proceeding.

          SECTION 11. Other Share Issues. Except as expressly provided in the Plan, the issue
by the Company of shares of stock of any class, or securities convertible into or exchangeable for
shares of stock of any class, for cash, property or services, either upon direct sale or upon the
exercise of options, rights or warrants, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities will not affect, and no adjustment by reason
thereof will be made with respect to, the number of shares subject to this Agreement.

          SECTION 12. Withholding. At the time of vesting and/or settlement of the Restricted
Stock Units, as appropriate, the Committee shall require the Grantee to pay to the Company an
amount sufficient to pay all federal, state and local withholding taxes applicable, in the
Committee’s judgment, to the settlement of the Restricted Stock Units, and the Grantee’s right to
vesting and/or settlement, as appropriate, shall be contingent upon such payment. Such payment to
the Company may be effected through (a) payment by the recipient to the Company of the aggregate
withholding taxes in cash or cash equivalents; (b) at the discretion of the Committee, the
Company’s withholding from the number of shares of Stock that would otherwise be delivered to the
Grantee upon settlement of the Restricted Stock Units, a number of shares of Stock with an
aggregate fair market value on the date of settlement (as determined by the Committee) equal to the
aggregate amount of withholding taxes; or (c) at the discretion of the Committee, any combination
of these two methods.

          SECTION 13. Grantee’s Tax Considerations. The tax impact of the award hereunder can
be quite complex and will vary with each Grantee. It is recommended that each Grantee review their
own tax situation and consult their tax advisor.

          SECTION 14. Agreement to Arbitrate. Any controversy or claims between the parties
arising out of or related to this Agreement shall be submitted to binding arbitration before the
American Arbitration Association in the greater New York metropolitan area and judgment upon the
award rendered as a result of such arbitration shall be final and binding and may be entered in any
court having competent jurisdiction. Any such arbitration shall be conducted by a panel of three
arbitrators under the “baseball arbitration” methodology. As such, each party shall submit to the
arbitrator and exchange with each other in advance of the arbitration hearing their last best
offers for settlement of the controversy or claim under the Agreement. The arbitrators shall be
limited to ruling in favor of one or the other parties. The party who prevails in the arbitration
shall be entitled to reimbursement, from the losing party, of the cost of attorneys’ fees and other
expenses to pursue the arbitration and payment of statutory interest on any amounts owed to the
prevailing party.

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          SECTION 15. No Right to Continued Service. This Agreement does not confer upon the
Grantee any right to continue as an Employee of the Company, nor shall it interfere in any way with
the right of the Company to terminate Grantee’s employment at any time for any reason.

          SECTION 16. Binding Effect. This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties hereto.

          SECTION 17. The Plan. The terms and provisions of the Plan are incorporated herein by
reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the
Plan shall govern. The Grantee hereby acknowledges that he has received a copy of the Plan and
understands and agrees to the terms thereof. This Agreement, together with the Plan, constitutes
the entire agreement by and between the parties hereto with respect to the subject matter hereof,
and this Agreement and the Plan supersedes all prior agreements, correspondence and understandings
and all prior and contemporaneous oral agreements and understandings, among the parties hereto with
regard to the subject matter hereof.

          SECTION 18. Governing Law. This Agreement shall be construed and interpreted in
accordance with the laws of the State of Delaware, without regard to the principles of conflicts of
law thereof.

          SECTION 19. Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any other provision
or provisions of this Agreement, which shall remain in full force and effect. If any provision of
this Agreement is held to be invalid, void or unenforceable in any jurisdiction, any court or
arbitrator so holding shall substitute a valid, enforceable provision that preserves, to the
maximum lawful extent, the terms and intent of such provisions of this Agreement. If any of the
provisions of, or covenants contained in, this Agreement are hereafter construed to be invalid or
unenforceable in any jurisdiction, the same shall not affect the remainder of the provisions or the
enforceability thereof in any other jurisdiction, which shall be given full effect, without regard
to the invalidity or unenforceability in such other jurisdiction. Any such holding shall affect
such provision of this Agreement, solely as to that jurisdiction, without rendering that or any
other provisions of this Agreement invalid, illegal or unenforceable in any other jurisdiction. If
any covenant should be deemed invalid, illegal or unenforceable because its scope is considered
excessive, such covenant will be modified so that the scope of the covenant is reduced only to the
minimum extent necessary to render the modified covenant valid, legal and enforceable.

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          SECTION 20. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

*     *     *

             This Agreement contains an arbitration clause in Section 14.

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

	 	 	 	 	 
	 	W. R. BERKLEY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	

	 	 	 	 
	

	 	Grantee
	 	 
	 
	 	 	 	 
	

	 	Address of Grantee:
	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

RSU.Agreement.L1 (2004)

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