Document:

Exhibit

INDEMNIFICATION AGREEMENT
This Indemnification Agreement, dated as of [•] (this “Agreement”), is between ABM Industries Incorporated, a Delaware corporation (the “Company”), and [•] (“Indemnitee”).
RECITALS:
A.    Section 141 of the Delaware General Corporation Law provides that the business and affairs of a corporation will be managed by or under the direction of its board of directors.
B.    Pursuant to Sections 141 and 142 of the Delaware General Corporation Law, significant authority with respect to the management of the Company has been delegated to the officers of the Company.
C.    By virtue of the managerial prerogatives vested in the directors and officers of a Delaware corporation, directors and officers act as fiduciaries of the corporation and its stockholders.
D.    Thus, it is critically important to the Company and its stockholders that the Company be able to attract and retain the most capable individuals reasonably available to serve as directors and officers of the Company.
E.    In recognition of the need for corporations to be able to induce capable and responsible individuals to accept positions in corporate management, Delaware law authorizes (and in some instances requires) corporations to indemnify their directors and officers, and further authorizes corporations to purchase and maintain insurance for the benefit of their directors and officers.
F.    Delaware law also authorizes a corporation to pay in advance of the final disposition of an action, suit or proceeding the expenses incurred by a director or officer in the defense thereof, and any such right to the advancement of expenses may be made separate and distinct from any right to indemnification and need not be subject to the satisfaction of any standard of conduct or otherwise affected by the merits of any claims against the director or officer.
G.    The number of lawsuits challenging the judgment and actions of directors and officers of Delaware corporations, the costs of defending those lawsuits and the threat to directors’ and officers’ personal assets have all materially increased over the past several years, chilling the willingness of capable women and men to undertake the responsibilities imposed on corporate directors and officers.
H.    Recent federal legislation and rules adopted by the Securities and Exchange Commission and the national securities exchanges have imposed additional disclosure and corporate governance obligations on directors and officers of public companies and have exposed such directors and officers to new and substantially broadened civil liabilities and to significantly greater risk of criminal proceedings, with attendant defense costs and potential criminal fines and penalties.
I.    Indemnitee is a director or officer of the Company, and his or her willingness to serve in such capacity is predicated, in substantial part, upon the Company’s willingness to indemnify him or her in accordance with the principles reflected above, to the fullest extent permitted by the laws of the state of Delaware, and upon the other undertakings set forth in this Agreement.
M.    Therefore, in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s continued service as a director or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”), any change in the composition of the Company’s Board of Directors (the 

“Board”) or any change-in-control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification of and the advancement of expenses to Indemnitee as set forth in this Agreement and for the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies.
N.    In light of the considerations referred to in the preceding recitals, it is the Company’s intention and desire that the provisions of this Agreement be construed liberally, subject to their express terms, to maximize the protections to be provided to Indemnitee hereunder.
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1.Certain Definitions.  In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement with initial capital letters:
(a)“Change in Control” will be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a Person owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during any period of two consecutive years, Incumbent Directors cease for any reason to constitute a majority of the Board, (iii) the stockholders of the Company approve a merger, recapitalization, consolidation or other similar transaction to which the Company is a party, unless securities representing at least 50% of the combined voting power of the then-outstanding securities of the surviving Person or a parent thereof are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the Persons who beneficially owned the Company’s outstanding voting securities immediately before the transaction, or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of the Company’s assets. 

(b)“Claim” means (i) any threatened, asserted, pending or completed claim, demand, action, suit, hearing, mediation, alternative dispute mechanism or any other proceeding, whether civil, criminal, administrative, arbitrative, investigative or other, or any appeal of any kind therefrom, and whether made pursuant to federal, state or other law; and (ii) any threatened, pending or completed inquiry or investigation, whether made, instituted or conducted by or at the behest of the Company or any other Person, including any federal, state or other court or governmental entity or agency and any committee or other representative of any corporate constituency, that Indemnitee determines in good faith might lead to the institution of any such claim, demand, action, suit or proceeding.

(c)“Controlled Affiliate” means any Person, whether or not for profit, that is directly or indirectly controlled by the Company.  For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, through other voting rights, by contract or otherwise.

(d)“Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee.

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(e)“ERISA Losses” means any taxes, penalties or other liabilities under the Employee Retirement Income Security Act of 1974, as amended, or Section 4975 of the Internal Revenue Code of 1986, as amended.

(f)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(g)“Expenses” means all expenses and costs (including attorneys’ and experts’ fees, witness fees, court costs, retainers, transcript fees, travel expenses, duplicating, printing and binding costs and postage and courier charges) paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in (including on appeal), any Claim, other than the fees, expenses and costs in respect of which the Company is expressly stated in Section 15 to have no obligation.
(h)“Incumbent Directors” means the individuals who, as of the date hereof, are members of the Board and any individual becoming a member of the Board subsequent to the date hereof whose election, nomination for election by the Company’s stockholders, or appointment, was approved by a vote of at least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such individual is named as a nominee for director, without objection to such nomination); provided, however, that an individual will not be an Incumbent Director if such individual’s election or appointment to the Board initially occurs as a result of an actual or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

(i)“Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a director, officer, employee or agent of the Company or as a director, officer, employee, member, manager, trustee or agent of any other Person, whether or not for profit (including any employee benefit plan or related trust), as to which Indemnitee is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in respect of any business, transaction, communication, filing, disclosure or other activity of the Company or any other Person referred to in clause (i) of this sentence, or (iii) Indemnitee’s status as a current or former director, officer, employee or agent of the Company or as a current or former director, officer, employee, member, manager, trustee or agent of the Company or any other Person referred to in clause (i) of this sentence or any actual, alleged or suspected act or failure to act by Indemnitee in connection with any obligation or restriction imposed upon Indemnitee by reason of such status; provided, however, that except for compulsory counterclaims, Indemnifiable Claim will not include any Claim initiated by Indemnitee against the Company or any director or officer of the Company unless (1) the Incumbent Directors consented to the initiation of such Claim prior to its initiation, (2) the Incumbent Directors authorize the Company to join in such Claim, or (3) such Claim is initiated solely to enforce Indemnitee’s rights under this Agreement; provided, further, that Indemnifiable Claim will not include any Claim in which final judgement is rendered against Indemnitee or in which Indemnitee enters into a settlement, in each case, (x) for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and the rules promulgated thereunder, in each case as amended, or similar provisions of any federal, state or local laws, or (y) for any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act, or the payment to the Company of profits arising from the purchase and sale by the Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).  In addition to any service at the actual request of the Company, for purposes of this Agreement, Indemnitee will be deemed to be serving or to have served at the request of the Company as a director, officer, employee, member, manager, trustee or agent of another Person if 

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Indemnitee is or was serving as a director, officer, employee, member, manager, trustee or agent of such Person and (A) such Person is or at the time of such service was a Controlled Affiliate, (B) such Person is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or a Controlled Affiliate, or (C) the Company or a Controlled Affiliate caused or authorized Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity.

(j)“Indemnifiable Losses” means any and all Losses relating to, arising out of or resulting from any Indemnifiable Claim.

(k)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent (i) the Company (or any Subsidiary) or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other named (or, as to a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” will not include any Person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  

(l)“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA Losses and amounts paid in settlement, including all interest, assessments and other charges paid or payable in connection with or in respect of any of the foregoing.

(m)“Person” means, as applicable, any individual, corporation, general or limited partnership, limited liability company, joint venture, estate, association, trust, court or governmental entity or agency or other entity, enterprise or organization.

(n)“Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002.

(o)“Subsidiary” means a Person in which the Company directly or indirectly beneficially owns more than 50% of the outstanding securities entitled to vote generally in the election of directors (or similar governing bodies).

2.Indemnification Obligation.  Subject to Section 8, the Company will indemnify and hold harmless Indemnitee, to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required indemnification, against any and all Indemnifiable Claims and Indemnifiable Losses; provided, however, that no repeal or amendment of any law of the State of Delaware will in any way diminish or adversely affect the rights of Indemnitee pursuant to this Agreement in respect of any occurrence or matter arising prior to any such repeal or amendment.

3.Advancement of Expenses.  Indemnitee will have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim of any and all reasonable  Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or which Indemnitee determines in good faith are reasonably likely to be paid or incurred by Indemnitee.  Indemnitee’s right to such advancement is not subject to the satisfaction of any standard of conduct and is not conditioned upon any prior determination that Indemnitee is entitled to indemnification under this Agreement with respect to the Indemnifiable Claim or the absence of any prior determination to the contrary.  Without limiting the generality or effect of the foregoing, within ten calendar days after any request by Indemnitee, the Company will, in accordance with such request (but without duplication), 

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(a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses; provided that Indemnitee will repay, without interest any amounts actually advanced to Indemnitee that, at the final disposition of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable by Indemnitee in respect of Expenses relating to, arising out of or resulting from such Indemnifiable Claim.  As a condition to any such payment, advancement or reimbursement, Indemnitee will execute and deliver to the Company an undertaking in the form attached hereto as Exhibit A (subject to Indemnitee filling in the blanks therein and selecting from among the bracketed alternatives therein), which need not be secured and will be accepted by the Company without reference to Indemnitee’s ability to repay the Expenses.  In no event will Indemnitee’s right to the payment, advancement or reimbursement of Expenses pursuant to this Section 3 be conditioned upon any undertaking that is less favorable to Indemnitee than, or that is in addition to, the undertaking set forth in Exhibit A.
 
4.Indemnification for Additional Expenses.  Without limiting the generality or effect of the foregoing, the Company will indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, will reimburse Indemnitee for, or advance to Indemnitee, within ten calendar days of such request, any and all reasonable Expenses paid or incurred by Indemnitee or which Indemnitee determines in good faith are reasonably likely to be paid or incurred by Indemnitee in connection with any Claim made, instituted or conducted by Indemnitee, in each case to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required indemnification, reimbursement or advancement of such Expenses, for (a) indemnification or payment, advancement or reimbursement of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims, and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company; provided, however, that Indemnitee will return, without interest, any such advance of Expenses (or portion thereof) which remains unspent at the final disposition of the Claim to which the advance related.

5.Contribution.  To the fullest extent permissible under applicable law in effect on the date hereof or as such law may from time to time hereafter be amended to increase the scope of permitted or required indemnification, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, will contribute to the payment of any and all Indemnifiable Claims or Indemnifiable Losses, in such proportion as is fair and reasonable in light of all of the circumstances in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Indemnifiable Claim or Indemnifiable Loss and/or (ii) the relative fault of the Company (and its other directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s); provided that such contribution will not be required where it is determined, pursuant to a final disposition of such Indemnifiable Claim or Indemnifiable Loss in accordance with Section 8 or pursuant to the last sentence of Section 9(a), that Indemnitee is not entitled to indemnification by the Company with respect to such Indemnifiable Claim or Indemnifiable Loss.  The Company will indemnify and hold harmless Indemnitee from any claim of contribution that may be brought by directors, officers, employees or other agents or representatives of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

6.Partial Indemnity.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss, but not for all of the total amount thereof, the Company will indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.  

7.Procedure for Notification.  To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee will submit to the Company a written request 

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therefor, including a brief description (based upon information then available to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss.  If, at the time of the receipt of such request, the Company has directors’ and officers’ liability insurance in effect under which coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company will give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the applicable insurers in accordance with the procedures set forth in the applicable policies.  The Company will provide to Indemnitee a copy of such notice delivered to the applicable insurers, and copies of all subsequent correspondence between the Company and such insurers regarding the Indemnifiable Claim or Indemnifiable Loss, in each case substantially concurrently with the delivery or receipt thereof by the Company.  If requested by Indemnitee, the Company will use its reasonable best efforts, at the Company’s expense, to enforce on behalf of and for the benefit of Indemnitee all rights (including rights to receive payment) that may exist under the applicable policies of insurance in relation to such Indemnifiable Claim or Indemnifiable Loss.  The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss will not relieve the Company from any liability hereunder unless, and only to the extent that, the Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and such failure results in forfeiture by the Company of substantial defenses, rights or insurance coverage.

8.Determination of Right to Indemnification.

(a)To the extent that Indemnitee has been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee will be indemnified against Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 8(b)) will be required with respect to such Indemnifiable Claim.

(b)To the extent that the provisions of Section 8(a) are inapplicable to an Indemnifiable Claim that has been finally disposed of, any determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law that is a legally required condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct Determination”) will be made as follows:  (i) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board; (ii) if such Disinterested Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a majority vote of all Disinterested Directors; or (iii) if there are no such Disinterested Directors or if Indemnitee so requests, by Independent Counsel, selected by the Indemnitee and approved by the Board (such approval not to be unreasonably withheld, delayed or conditioned), in a written opinion addressed to the Board, a copy of which will be delivered to Indemnitee; provided, however, that, if at the time of any Standard of Conduct Determination, Indemnitee is neither a director nor an officer of the Company, such Standard of Conduct Determination may be made by or in the manner specified by the Board, any duly authorized committee of the Board or any duly authorized officer of the Company (unless Indemnitee requests that such Standard of Conduct Determination be made by Independent Counsel, in which case such Standard of Conduct Determination will be made by Independent Counsel).  Indemnitee will cooperate with the Person or Persons making such Standard of Conduct Determination, including providing to such Person or Persons, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  The Company will indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, will reimburse Indemnitee for, or advance to Indemnitee, within ten calendar days of such request, any and all reasonable costs and expenses (including attorneys’ and experts’ fees and expenses) incurred by Indemnitee in so cooperating with the Person or Persons making such Standard of Conduct Determination.

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(c)The Company will use its reasonable efforts to cause any Standard of Conduct Determination required under Section 8(b) to be made as promptly as practicable.  If (i) the Person or Persons empowered or selected under Section 8 to make the Standard of Conduct Determination have not made a determination within 30 days after the later of (A) receipt by the Company of written notice from Indemnitee advising the Company of the final disposition of the applicable Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) the selection of an Independent Counsel, if such determination is to be made by Independent Counsel, and (ii) Indemnitee has fulfilled his or her obligations set forth in the second sentence of Section 8(b), then Indemnitee will be deemed to have satisfied the applicable standard of conduct; provided that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the Person or Persons making such determination in good faith requires such additional time for obtaining or evaluating any documentation or information relating thereto.

(d)If (i) Indemnitee is entitled to indemnification hereunder against any Indemnifiable Losses pursuant to Section 8(a), (ii) no determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been determined or deemed pursuant to Section 8(b) or (c) to have satisfied any applicable standard of conduct under Delaware law which is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, then the Company will pay to Indemnitee, within 15 calendar days after the later of (x) the Notification Date in respect of the Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (y) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above has been satisfied, an amount equal to the amount of such Indemnifiable Losses.

9.Presumption of Entitlement.  

(a)In making a determination of whether Indemnitee has been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, the Company acknowledges that a resolution, disposition or outcome short of dismissal or final judgment, including outcomes that permit Indemnitee to avoid expense, delay, embarrassment, injury to reputation, distraction, disruption or uncertainty, may constitute such success.  In the event that any Indemnifiable Claim or any portion thereof or issue or matter therein is resolved or disposed of in any manner other than by adverse judgment against Indemnitee (including any resolution or disposition thereof by means of settlement with or without payment of money or other consideration), it will be presumed that Indemnitee has been successful on the merits or otherwise in defense of such Indemnifiable Claim or portion thereof or issue or matter therein.  The Company may overcome such presumption only by its adducing clear and convincing evidence to the contrary.

(b)In making any Standard of Conduct Determination, the Person or Persons making such determination will presume that Indemnitee has satisfied the applicable standard of conduct, and the Company may overcome such presumption only by its adducing clear and convincing evidence to the contrary.  The knowledge and/or action, or failure to act, of any other director, officer, employee, agent or representative of the Company will not be imputed to Indemnitee for purposes of any Standard of Conduct Determination.  Any Standard of Conduct Determination that Indemnitee has satisfied the applicable standard of conduct will be final and binding in all respects, including with respect to any litigation or other action or proceeding initiated by Indemnitee to enforce his or her rights hereunder.  Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by Indemnitee in the Court of Chancery of the State of Delaware.  No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct will create a presumption that Indemnitee has not met any applicable standard of conduct.

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(c)Without limiting the generality or effect of Section 9(b), (i) to the extent that any Indemnifiable Claim relates to any Person (other than the Company) referred to in clause (i) of the first sentence of the definition of “Indemnifiable Claim,” Indemnitee will be deemed to have satisfied the applicable standard of conduct if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the interests of such Person (or the owners or beneficiaries thereof, including in the case of any employee benefit plan the participants and beneficiaries thereof) and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful, and (ii) in all cases, any belief of Indemnitee that is based on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Company in the course of their duties, or on the advice of legal counsel for the Company, the Board, any committee of the Board or any director, or on information or records given or reports made to the Company, the Board, any committee of the Board or any director by an independent certified public accountant or by an appraiser or other expert selected by or on behalf of the Company, the Board, any committee of the Board or any director will be deemed to be reasonable.

10.No Adverse Presumption.  For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet any applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

11.Non‐Exclusivity.  The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have against the Company under the Constituent Documents, or the substantive laws of the Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder.  The Company will not adopt any amendment to any of the Constituent Documents the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this Agreement or any Other Indemnity Provision.

12.Liability Insurance and Funding.  

(a)The Company will, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for Expenses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement.  Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage.  All decisions as to whether and to what extent the Company maintains directors’ and officers’ liability insurance will be made by the Board in its sole and absolute discretion.  

(b)The Company will provide Indemnitee with a copy of all directors’ and officers’ liability insurance applications, binders, policies, declarations, endorsements and other related materials, and will provide Indemnitee with a reasonable opportunity to review and comment on the same.  In all policies of directors’ and officers’ liability insurance, Indemnitee will be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or as are accorded to the most favorably insured of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or as are accorded to the most favorably insured of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee.   

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(c)At or prior to any Change in Control, the Company will obtain a prepaid, fully earned and non-cancellable “tail” directors’ and officers’ liability insurance policy in respect of acts or omissions occurring at or prior to the Change in Control with a claims period of six (6) years from the Change in Control, covering Indemnitee, to the extent that Indemnitee is covered by directors’ and officers’ liability insurance immediately prior to the Change in Control, with the coverage and amounts and containing terms and conditions that are not less advantageous to the directors and officers of the Company and its subsidiaries than those of the D&O Insurance in effect immediately prior to such Change in Control; provided, however, that the aggregate premium therefor is not in excess of 200% of the annual premium then paid by the Company for coverage for its then-current policy year for such insurance, and if the premium therefor would be in excess of such amount, the Company will purchase such “tail” policy with the greatest coverage available as to matters occurring prior to the Change in Control as is available for a cost not exceeding that premium amount.  Any such tail policy may not be amended, modified, cancelled or revoked after the Change in Control by the Company or any successor thereto in any manner that is adverse to Indemnitee.

(d)The Company may, but will not be required to, create a trust fund, grant a security interest or use other means, including a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy its obligations to indemnify and advance expenses pursuant to this Agreement.

13.Subrogation.  In the event of payment under this Agreement, the Company will be subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee against other Persons (other than Indemnitee’s successors), including any Person referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(i).  Indemnitee will execute all papers reasonably required to evidence such rights (all of Indemnitee’s reasonable Expenses, including attorneys’ fees and charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the Company).

14.No Duplication of Payments.  The Company will not be liable under this Agreement to make any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has otherwise actually received and is entitled to retain payment (net of any Expenses incurred in connection therewith and any repayment by Indemnitee made with respect thereto) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise (including from any Person referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(i)) in respect of such Indemnifiable Losses otherwise indemnifiable hereunder.

15.Defense of Claims.  Except for any Indemnifiable Claim asserted by or in the right of the Company (as to which Indemnitee will be entitled to exclusively control the defense), the Company will be entitled to participate in the defense of any Indemnifiable Claim or to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee.  The Company’s participation in the defense of any Indemnifiable Claim of which the Company has not assumed the defense will not in any manner affect the rights of Indemnitee under this Agreement, including Indemnitee’s right to control the defense of such Indemnifiable Claims.  With respect to the period (if any) commencing at the time at which the Company notifies Indemnitee that the Company has assumed the defense of any Indemnifiable Claim and continuing for so long as the Company is using its reasonable best efforts to provide an effective defense of such Indemnifiable Claim, the Company will have the right to control the defense of such Indemnifiable Claim and will have no obligation under this Agreement in respect of any attorneys’ or experts’ fees or expenses or any other costs or expenses paid or incurred by Indemnitee in connection with defending such Indemnifiable Claim (other than such costs and expenses paid or incurred by Indemnitee in connection with any cooperation in the Company’s defense of such Indemnifiable Claim or other action undertaken by Indemnitee at the request of the Company or with the consent of the Company (which consent will not be unreasonably withheld, conditioned or delayed)); provided that if Indemnitee believes, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with a conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the Company and 

9

Indemnitee and Indemnitee concludes that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the Company, or (c) any such representation by such counsel chosen by the Company would be precluded under the applicable standards of professional conduct then prevailing, then Indemnitee will be entitled to retain and use the services of separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim) at the Company’s expense.   Nothing in this Agreement will limit Indemnitee’s right to retain or use his or her own counsel at his or her own expense in connection with any Indemnifiable Claim; provided that in all events Indemnitee will not unreasonably interfere with the conduct of the defense by the Company of any Indemnifiable Claim that the Company has assumed and of which the Company is using its reasonable best efforts to provide an effective defense.  The Company will not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company’s prior written consent.  The Company will not, without the prior written consent of Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim to which Indemnitee is, or could have been, a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of Indemnitee from all liability on any claims that are the subject matter of such Indemnifiable Claim.  Neither the Company nor Indemnitee will unreasonably withhold, condition or delay its consent to any proposed settlement; provided that Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of Indemnitee.

16.Successors and Binding Agreement.  

(a)The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place.  This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the “Company” for purposes of this Agreement), but will not otherwise be assignable or delegatable by the Company.

(b)This Agreement will inure to the benefit of and be enforceable by Indemnitee’s personal or legal representatives, executors, administrators, heirs, distributees, legatees and other successors.

(c)This Agreement is personal in nature and neither of the parties hereto will, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 16(a) and 16(b).  Without limiting the generality or effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted assignment or transfer contrary to this Section 16(c), the Company will have no liability to pay any amount so attempted to be assigned or transferred.

(d)Indemnitee hereby agrees to serve or continue to serve as a director of the Company, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed. 

17.Notices.  For all purposes of this Agreement, all communications, including notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile (with receipt 

10

thereof orally confirmed), or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid or one business day after having been sent for next‐day delivery by a nationally recognized overnight courier service, addressed to the Company at:

ABM Industries Incorporated
One Liberty Plaza, 7th Floor
New York, New York 10006
Attn: General Counsel
Fax: 1-866-787-7495

and to Indemnitee at the applicable address shown on the signature page hereto. Notices of changes of address will be effective when given in accordance with this Section 17.

18.Governing Law.  The validity, interpretation, construction and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such State.  The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement will be brought only in the Chancery Court of the State of Delaware.

19.Validity.  If any provision of this Agreement or the application of any provision hereof to any Person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other Person or circumstance will not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal.  In the event that any court or other adjudicative body declines to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the immediately preceding sentence, the parties thereto will take all such action as may be necessary or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.  This Agreement will replace and supersede any indemnification agreement in effect between Indemnitee and the Company immediately prior to the execution and delivery of this Agreement by Indemnitee and the Company.

20.Specific Performance.  The parties recognize that if any provision of this Agreement is violated by the Company, Indemnitee may be without an adequate remedy at law. Accordingly, in the event of any such violation, Indemnitee will be entitled, if Indemnitee so elects, to institute proceedings, either in law or at equity, to obtain damages, to enforce specific performance, to enjoin such violation, or to obtain any relief or any combination of the foregoing as Indemnitee may elect to pursue.

21.Period of Limitation.  No legal action will be brought and no cause of action will be asserted by or in the right of the Company (or any of its Subsidiaries) against Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives, administrators or estate after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of action of the Company will be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action such shorter period will govern.

22.Miscellaneous.  No provision of this Agreement may be waived, modified or discharged unless such waiver, modification or discharge is agreed to in writing signed by Indemnitee and the Company.  No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party will be 

11

deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party hereto that are not set forth expressly in this Agreement. 

23.Legal Fees and Expenses; Interest.  

(a)It is the intent of the Company that Indemnitee not be required to incur legal fees and or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder.  Accordingly, without limiting the generality or effect of any other provision hereof, if it should appear to Indemnitee that the Company has failed to comply with any of its obligations under this Agreement (including its obligations under Section 3) or in the event that the Company 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, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, the Company irrevocably authorizes Indemnitee from time to time to retain counsel of Indemnitee’s choice, at the expense of the Company as hereafter provided, to advise and represent Indemnitee in connection with any such interpretation, enforcement or defense, including the initiation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other Person affiliated with the Company, in any jurisdiction.  The Company will pay and be solely financially responsible for any and all reasonable attorneys’ and related fees and expenses incurred by Indemnitee in connection with any of the foregoing to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted or required payment of such fees and expenses.
(b)Any amount due to Indemnitee under this Agreement that is not paid by the Company by the date on which it is due will accrue interest at the maximum legal rate under Delaware law from the date on which such amount is due to the date on which such amount is paid to Indemnitee. 
 
24.Certain Interpretive Matters.  Unless the context of this Agreement otherwise requires, (a) “it” or “its” or words of any gender include each other gender, (b) words using the singular or plural number also include the plural or singular number, respectively, (c) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (d) the terms “ “Section” or “Exhibit” refer to the specified Section or Exhibit of or to this Agreement, (e) the terms “include,” “includes” and “including” will be deemed to be followed by the words “without limitation” (whether or not so expressed), and (f) the word “or” is disjunctive but not necessarily exclusive.  Whenever this Agreement refers to a number of days, such number will refer to calendar days unless business days are specified and whenever action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a certain period of time or by a particular date that ends or occurs on a non-business day, then such period or date will be extended until the immediately following business day.  As used herein, “business day” means any day other than Saturday, Sunday or a United States federal holiday.

25.Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same agreement.

[Signatures Appear on Following Page]

12

IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized representative to execute this Agreement as of the date first above written.

ABM Industries Incorporated

By:    ____________________________________                                                                              Name:
Title:

[INDEMNITEE]

 __________________________________________                                                                                                           [Indemnitee]

                            
[ADDRESS]
[CITY, STATE, ZIP]
Email: [E-MAIL]

13

EXHIBIT A
UNDERTAKING
This Undertaking is submitted pursuant to the Indemnification Agreement, dated as of [•] (the “Indemnification Agreement”), between ABM Industries Incorporated, a Delaware corporation (the “Company”), and the undersigned.  Capitalized terms used and not otherwise defined herein have the meanings ascribed to such terms in the Indemnification Agreement.
The undersigned hereby requests [payment], [advancement], [reimbursement] by the Company of Expenses which the undersigned [has incurred] [reasonably expects to incur] in connection with [•] (the “Indemnifiable Claim”).
The undersigned hereby undertakes to repay the [payment], [advancement], [reimbursement] of Expenses made by the Company to or on behalf of the undersigned in response to the foregoing request to the extent it is determined, following the final disposition of the Indemnifiable Claim and in accordance with Section 8 or pursuant to the last sentence of Section 9(a) of the Indemnification Agreement, that the undersigned is not entitled to indemnification by the Company under the Indemnification Agreement with respect to the Indemnifiable Claim.
IN WITNESS WHEREOF, the undersigned has executed this Undertaking as of this [•] day of [•].

                           _________________________________________
[Indemnitee]

14EX-10.1

 EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”), dated as of December 17, 2018, is between Universal Insurance Holdings,
Inc., a Delaware corporation (the “Company”), and Jon W. Springer (the “Executive”). 
 WHEREAS,
the Company and Executive are parties to an Employment Agreement, dated as of April 11, 2018 (such agreement, the “Prior Agreement”), pursuant to which Executive was employed as President and Chief Risk Officer of the Company;

 WHEREAS, the Prior Agreement expires on December 31, 2018; and 

WHEREAS, Executive and the Company now desire to enter into this Agreement in connection with Executive’s continuing employment for the
Term (as defined below) as the President and Chief Risk Officer of the Company; 
 NOW, THEREFORE, in consideration of the covenants and
promises contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

1.    Employment and Acceptance. During the Term, the Company agrees to employ Executive, and Executive agrees to
continue his employment with the Company, subject to the provisions of this Agreement. As of the Effective Date (as defined below), this Agreement supersedes and replaces in all respects the Prior Agreement. 

2.    Term. 

(a)    Duration. The period of Executive’s employment with the Company under this Agreement will commence on
January 1, 2019 (the “Effective Date”) and will continue until the earlier of: (i) December 31, 2019 and (ii) the termination of such employment in accordance with Section 5 ( the “Term”).
Except as provided in Section 6(a), the Term will not be subject to any automatic renewal or extension unless this Agreement is amended by the parties after the Effective Date to so provide. 

(b)    Expiration of Employment Term. If Executive’s employment with the Company continues following the
expiration of the Term, Executive shall be an employee-at-will whose employment may be terminated by the Company for any reason or for no stated reason at any time,
subject only to the severance protections contemplated by Section 5 for the one-year period following the expiration of the Term. 

3.    Duties and Title. 

(a)    Title and Reporting. During the Term, the Company will employ Executive as the President and Chief Risk
Officer of the Company, reporting to the Chief Executive Officer of the Company (the “CEO”). 

(b)    Duties. Executive shall render on a full-time basis all of his business time and attention to business of
the Company and its subsidiaries (collectively, the “Company Group”). Executive will have such authority and responsibilities and will perform such duties assigned to the President and Chief Risk Officer by the CEO, commensurate
with his position as the President and Chief Risk Officer of the Company. If requested by the CEO, Executive will also serve as an officer or director of another member of the Company Group for no additional consideration. The principal place of
Executive’s employment shall be Eagan, Minnesota, except that Executive acknowledges and agrees that he will be required to travel for business purposes. 

 Jon W. Springer 

Employment Agreement 
 Page 2 of 19 

 

 (c)    Other Business and Other Activities. Executive may not
engage in any activity that conflicts with the interests of any member of the Company Group or that would interfere with the performance of Executive’s duties to any member of the Company Group, as determined by the CEO. During the Term,
Executive may not hold, directly or indirectly, an ownership interest of more than 2% in any entity other than the Company. Nothing in this Agreement shall preclude Executive from dedicating reasonable amounts of time during the Term to charitable
or civic activities or from managing his personal finances, as long as such activities do not interfere in any material way with his duties and responsibilities to any member of the Company Group. 

4.    Compensation and Benefits by the Company. As compensation for all services rendered pursuant to this
Agreement, the Company will provide Executive with the following pay and benefits during the Term: 
 (a)    Base
Salary. The Company will pay Executive an annual base salary of $1,000,000, payable in accordance with the Company’s customary payroll practices (“Base Salary”). The annual rate of Executive’s Base Salary shall not be
increased or decreased during the Term. 
 (b)    Annual Bonus. For 2019, Executive shall be eligible to earn a
cash incentive award (the “Annual Bonus”), which shall be calculated based on Return on Average Equity (“ROAE”) before calculation of the 2019 annual bonuses paid to the CEO, Executive and Chief Operating Officer
(as calculated, the “Compensation ROAE”, or “CROAE”) using a target bonus of $3.25 million at a CROAE of 25.0%. CROAE shall be determined in a manner consistent with generally accepted accounting principles,
subject to adjustments for certain extraordinary or special items, in the form and manner determined in the sole discretion of the Compensation Committee (the “Committee”) of the Board of Directors of the Company (the
“Board”). Executive’s Annual Bonus will be determined in accordance with the following schedule: 
  

							
	 	  	CROAE	  	% of Target	  	 
	  	0%	  	0%
	  	10%	  	25%
	  	15%	  	57.5%
	  	20%	  	90%
	  	25%	  	100%
	  	30%	  	120%
	  	35%	  	130%

 For performance between two thresholds, the applicable % of Target will be determined by straight-line interpolation between
the applicable thresholds; provided, however, that no Annual Bonus shall be earned if CROAE is less than 10%. 

 Jon W. Springer 

Employment Agreement 
 Page 3 of 19 

 

 The calculation of the Annual Bonus shall be made promptly after the completion of the annual audit for the
fiscal year ending December 31, 2019, subject to certification by the Committee; provided, however, that in no event shall any Annual Bonus be paid to Executive later than March 15, 2020. Except as provided in Section 5,
Executive shall not be eligible to earn or receive an Annual Bonus unless he is employed by the Company on December 31, 2019. 

(c)    Participation in Executive Benefit Plans; Private Office and Secretary. Executive is entitled, if and to the
extent eligible, to participate in the Company’s benefit plans generally available to Company employees in similar positions. For each full month during the Term, the Company shall provide Executive with a car allowance in the amount of $600
per month. Additionally, Executive shall (1) have the right to participate in a 401(k) plan available to employees of the Company, (2) receive life insurance with a coverage limit equal to $1 million, and (3) receive medical,
dental and disability insurance with a coverage limit equal to $500,000. Executive shall be given a private office with secretarial help at Executive’s principal place of employment as specified in Section 3(b) above and any and all
reasonable facilities and services so as to be suitable with his position as President and Chief Risk Officer, and so as to assist in the performance of his duties and activities. 

(d)    PSU Grants and Vesting. 

(i)    Grant of PSUs. On the Effective Date, Executive shall be eligible to receive a grant of
performance share units (“PSUs”) with a target value of $1 million on the grant date. The number of PSUs to be granted to Executive on the grant date (the “Target Number”) shall be determined by dividing the
annual grant target value (i.e., $1 million) by the closing sales price of the common stock of the Company, par value $0.01 per share, on the exchange having the greatest number of shares listed or eligible for trading on that date, or, if no
sale of the common stock of the Company occurred on that date, on the next preceding date on which there was a reported sale (the “Fair Market Value”). The grant shall be made pursuant to Universal Insurance Holdings, Inc. 2009
Omnibus Incentive Plan, as it may be amended from time to time, and any successor plan thereto (the “Omnibus Plan”), shall be subject to the terms and conditions of the applicable equity award agreement that evidences such award
under the Omnibus Plan, and shall be governed by the Omnibus Plan, the applicable equity award agreement, and any other applicable award documentation, except that, in the event of any inconsistency between the terms of the award documentation and
this Agreement, the provisions of this Agreement shall control. The PSUs will be subject to a three-year award cycle commencing on the date of grant (the “Award Cycle”) and shall be subject to the performance-vesting and
time-vesting requirements described in this Agreement. 
 (ii)    Performance-Vesting
Requirements. The earn out with respect to the PSUs will be determined by reference to the attainment of one or more pre-established performance objectives (as determined prior to the date of grant by the
Committee) measured over the first year of the Award Cycle applicable to the grant of PSUs (the “Performance Year”). Depending upon the level of attainment of the relevant performance objective or objectives, Executive shall be
eligible to earn 100% of the Target Number for “target-level” performance. No portion of the PSU award shall be earned (and the entire award will be forfeited) if performance is less than target performance. It is intended by the parties
that no minimum earn out is guaranteed with respect to such PSU award and that payout at target level will be challenging but attainable. The performance objective and required levels of achievement for target payout for the 2019 Performance Year
are set forth in attached Schedule A. 

 Jon W. Springer 

Employment Agreement 
 Page 4 of 19 

 

 (iii)    Time-Vesting Requirements and Payment.
For purposes of the PSU award, “Earn Out Number” means the number of PSUs earned for the Performance Year based upon achievement of the applicable performance objective or objectives, as certified by the Committee. Subject to
Executive’s continuous employment with the Company through the applicable vesting date, Executive shall be fully vested in two-thirds of the Earn Out Number on the first anniversary of the date of grant
(the “First Tranche”); in one-sixth of the Earn Out Number on the second anniversary of the date of grant (the “Second Tranche”); and in
one-sixth of the Earn Out Number on the third anniversary of the date of grant (the “Third Tranche”). Payment with respect to the vested portion of the Earn Out Number shall be made only
through delivery and settlement of the appropriate number of shares of the Company’s common stock within 60 days following the applicable date of vesting; provided, however, that payment with respect to the First Tranche shall not
be made until the Committee has certified attainment of the applicable performance objectives for the Performance Year. Except as otherwise provided in Section 5 or 6, Executive shall forfeit, and have no rights with respect to, any portion of
the Earn Out Number that has not vested prior to the date Executive’s employment with the Company ends. 

(iv)    Dividend Equivalents. With respect to the Second Tranche and the Third Tranche (but not the
First Tranche) of the Earn Out Number, Executive shall be credited with a cash amount equal to the cash dividends paid on the corresponding number of shares of Company’s common stock during the period beginning after the Performance Year and
ending on the vesting date of the applicable tranche. Such cash amount shall be subject to the same time-vesting conditions as the related PSUs and shall be paid to Executive in cash at the time that the shares of the Company’s common stock are
delivered to Executive in settlement of such tranche. 
 (e)    Stock Option Grant. Executive shall be entitled
to receive a grant of options to purchase shares of the Company’s common stock (the “Options”) in the sole discretion of the Committee. Any grant shall be made pursuant to the Omnibus Plan, shall be subject to the terms and
conditions of the applicable equity award agreement that evidences such award under the Omnibus Plan as determined by the Committee in its sole discretion, and shall be governed by the Omnibus Plan, the applicable equity award agreement, and any
other applicable award documentation. 

 Jon W. Springer 

Employment Agreement 
 Page 5 of 19 

 

 (f)    Condition to Grants of PSUs and Options; Effect of Change in
Control. Anything in this Agreement to the contrary notwithstanding: (i) the Company shall have no obligation to grant PSUs or Options to Executive if Executive’s employment with the Company ends for any reason prior to the applicable
grant date; and (ii) the Company shall have no obligation to grant PSUs or Options to Executive or to deliver any shares of the Company’s common stock to Executive in settlement of any previously granted PSUs or Options if the stockholders
of the Company have not previously approved in accordance with applicable law an equity incentive plan of the Company with sufficient share reserves to permit such grants and settlements. It shall not be a breach of this Agreement if the Company
does not grant the PSUs or Options described in Section 4(d) or 4(e) or fails to settle previously granted PSUs or Options through the delivery of shares of Common Stock, in each case, because the Company’s stockholders have not approved
an equity incentive plan with sufficient share reserves to permit the grant and settlement of PSUs or Options described above. The Company shall have no obligation to make any substitute cash or replacement grants or awards of any type to Executive
if the stockholders of the Company fail to approve an equity incentive plan with sufficient share reserves to permit or settle the grants contemplated by this Agreement. Moreover, nothing in this Agreement shall preclude the Committee from making
grants of equity awards during the Term or thereafter to other officers, employees or consultants of any member of the Company Group. In addition, nothing in this Agreement shall preclude the Committee from granting additional awards to Executive in
recognition of exceptional performance. The Company will use reasonable efforts to maintain a registration statement in effect on Form S-8 covering the grants and awards pursuant to this Agreement.
Subject to Section 6, (i) any substitute, amended or replacement awards granted to Executive in connection with a Change in Control (as defined below) shall contain vesting, payment-timing and exercisability terms that are no less
favorable to Executive than the comparable terms in the PSUs and Options to which they relate and (ii) the exercise price of any substitute options granted to replace outstanding Options shall be determined in a manner that complies with Treas.
Reg. Section 1.409A-1(b)(5)(v)(D) and that preserves the aggregate intrinsic value in the Option immediately prior to the CIC Date (as defined below). 

(g)    Vacation. Executive will be entitled to 30 days of paid vacation per calendar year (earned pro rata
over the course of the year), subject to the Company’s standard vacation policies. Any unused vacation for a given calendar year, up to a maximum of 20 days, may be accrued, and the aggregate value of any unused accrued vacation shall be paid
to Executive upon the termination of Executive’s employment with the Company; provided that Executive has submitted a report to the Committee within 30 days following the end of each calendar year reporting on the number of accrued and
unused vacation days for such year and the total number of accrued but unused vacation days for all prior years commencing after 2016. 

(h)    Expense Reimbursement. The Company will pay or reimburse Executive for all appropriate business expenses
Executive incurs in connection with Executive’s duties under this Agreement, in accordance with the Company’s policies as in effect from time to time, subject to the timely submission by Executive of written documentation of such expenses
in accordance with the applicable policies of the Company. 
 5.    Termination of Employment. 

(a)    Notice. Subject to the provisions of this Section 5, the Company may terminate Executive’s
employment, and Executive may resign his employment, for any reason or for no stated reason, at any time during the Term. The Company shall give Executive 90 days’ prior written notice of its intention to terminate his employment other than for
Cause, and Executive shall give the Company 90 days’ prior written notice of his intention to resign for any reason. Any such notice shall specify the applicable termination or resignation date. In the event of a termination or resignation
notice, the Company will have the right to restrict Executive’s access to its premises, clients and employees during the notice period. 

 Jon W. Springer 

Employment Agreement 
 Page 6 of 19 

 

 (b)    Accrued Obligations. If Executive’s employment ends
for any reason, Executive (or in the event of his death, Executive’s estate) will receive, within 30 days following the Termination Date (as defined below), a lump sum cash payment equal to: (i) his accrued but unpaid Base Salary through
the Termination Date and any earned but unpaid Annual Bonus for any year prior to the year in which the Termination Date occurs, and any undelivered shares of Company common stock in respect of a tranche of PSUs for which the vesting and payment
date has occurred on or prior to the Termination Date, (ii) any employee benefits Executive may be entitled to pursuant to the Company’s employee benefit plans through the Termination Date, (iii) any accrued and unused vacation as set
forth in Section 4(g) above through the Termination Date, and (iv) any expenses reimbursable under Section 4(h) incurred but not yet reimbursed to Executive through the Termination Date (collectively, the “Accrued
Obligations”). 
 (c)    Termination with Cause; Resignation without Good Reason. 

(i)    In General; Payments. The Company has the right at any time to terminate Executive’s
employment with the Company for Cause (as defined below) and, subject to Section 5(a) above, Executive has the right to resign without Good Reason (as defined below). If the Company terminates Executive for an event of Cause described in
clause (B), (C), or (D) of Section 5(c)(ii), the Company shall provide Executive 30 days prior to the date on which it intends to terminate Executive’s employment for Cause with a written notice from the Company identifying the
reasons that are alleged to constitute Cause and shall afford Executive a reasonable opportunity to meet once with the CEO within the 30-day notice period to discuss and present evidence relevant to the
termination decision. If the Company terminates Executive’s employment for an event of Cause not described in the previous sentence, such termination shall be effective immediately upon the Company’s written notice to Executive. If the
Company terminates Executive’s employment for Cause or Executive resigns without Good Reason, the Company’s obligation to Executive shall be limited solely to the Accrued Obligations. If Executive’s employment is terminated for Cause,
(i) no Annual Bonus shall be payable for the calendar year in which such termination occurs, and (ii) any then outstanding unvested PSUs shall be immediately forfeited as of the Termination Date (as defined in Section 5(g)(i) below)
and (iii) any vested and unvested Options shall terminate as of the Termination Date. If Executive resigns his employment without Good Reason, (i) no Annual Bonus shall be payable for the calendar year in which such resignation occurs, and
(ii) any then outstanding unvested PSUs shall be immediately forfeited as of the Termination Date (as defined in Section 5(g)(ii) below) and any vested and unvested Options shall terminate 90 days following the Termination Date (or, if
earlier, on the expiration date of the term of the Options). 

 Jon W. Springer 

Employment Agreement 
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 (ii)    For purposes of this Agreement,
“Cause” means, as determined by the CEO (or his designee), any of the following: (A) Executive’s abuse of alcohol or any controlled substance; (B) a willful act of fraud, dishonesty or breach of fiduciary duty on the
part of Executive with respect to the business or affairs of the Company; (C) a knowing and material failure by Executive to comply with applicable laws and regulations or professional standards relating to the business of the Company;
(D) Executive’s willful and continuing failure to perform his duties to the Company (after notice from the CEO of such failure) or any material breach by Executive of a provision of this Agreement except, in each case, where such failure
or breach is caused by the illness or other similar medical incapacity (other than for a reason described in clause (A) of this Section 5(c)(ii)) of Executive or any willful act or omission by Executive that results in material harm to the
Company’s financial condition, business or reputation; (E) Executive being subject to an inquiry or investigation by a governmental authority or self-regulatory organization such that the existence of such inquiry or investigation will, in
the judgment of the CEO, result in material damage to the Company’s business interests, licenses, reputation or prospects; or (F) Executive’s conviction of, or plea of guilty or no contest to: (i) any felony or (ii) any
misdemeanor involving moral turpitude. For purposes of this definition, no act or omission shall be deemed willful unless done intentionally and without a good faith belief by Executive that such act or omission was in the best interest of the
Company. 
 (d)    Termination without Cause; Resignation for Good Reason. 

(i)    Subject to the further provisions of this Section 5(d) and Section 6, if during the Term
or, if the Term expires without renewal or extension and prior to a Change in Control, during the one-year period following the expiration of the Term, the Company terminates Executive’s employment
without Cause or Executive resigns for Good Reason, the Company will pay Executive on the 60th day following the Termination Date (as defined below), in addition to the Accrued Obligations, a lump-sum cash payment equal to the following (the “Severance Amount”): 
  

	 	•	 	 One times the amount of Executive’s then-current annual rate of Base Salary (based on the rate in effect
immediately prior to the Termination Date); and 

  

	 	•	 	 The cost of 12 months of COBRA coverage for Executive and his dependents (based on the COBRA rates in effect on
the Termination Date). 

 In addition, by no later than March 15th of
the year following the year in which the Termination Date occurs, Executive shall receive a pro rata portion of the Annual Bonus (the “Pro Rata Bonus”) for the year of termination calculated on the basis of the Company’s
actual performance for such year and prorated based on the numbers of days elapsed in such year through the Termination Date. 

(ii)     Subject to the further provisions of this Section 5(d) and Section 6, in the event of
Executive’s termination without Cause or resignation for Good Reason, the portion of then outstanding PSUs and Options that would have vested had Executive remained continuously employed by the Company through the end of the one-year period following the Termination Date shall fully vest immediately as of the Termination Date (the “Additional Equity Vesting”). The PSUs entitled to Additional Equity Vesting pursuant to
this Section 5(d)(ii) shall become payable within 30 days following their originally scheduled vesting dates contemplated by Section 3(d)(iii). The Earn Out Number for any PSUs entitled to Additional Equity Vesting pursuant to this
Section 5(d)(ii) for which the Performance Year has not been completed shall be determined after the end of the Performance Year based on actual performance for the full Performance Year. Any then vested Options (including Options that vested
in accordance with this paragraph) held by Executive shall remain exercisable for a period of one year following the Termination Date (but not beyond the original term of the Options) (“Extended Exercisability”). 

 Jon W. Springer 

Employment Agreement 
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 (iii)    The Company’s obligation to pay Executive
the Severance Amount and the Pro Rata Bonus and to provide the Additional Equity Vesting and the Extended Exercisability are each expressly conditioned upon Executive’s execution and timely delivery to the Company of a valid and irrevocable
release agreement in substantially the form of attached Schedule B by no later than 45 days following the Termination Date. 

(iv)    As used in this Section 5(d), “Good Reason” means any of the following acts
or omissions by the Company occurring without Executive’s prior written consent: (A) any action by the Company which results in Executive ceasing to be the President and Chief Risk Officer of the Company or any other material adverse
change in Executive’s title, duties or reporting responsibilities; (B) the assignment to Executive of duties materially inconsistent with Executive’s position as the President and Chief Risk Officer of the Company; (C) a
reduction in Executive’s rate of Base Salary or Annual Bonus opportunity or the failure by the Company (other than by reason of bankruptcy, insolvency or receivership) to pay Executive’s Base Salary or any earned Annual Bonus or, subject
to Section 4(f), to make the PSU grant contemplated by this Agreement; (D) the requirement by the Company that Executive move his principal place of employment more than 50 miles from the location of his principal place of employment
on the Effective Date; or (E) any material breach by the Company of this Agreement. Notwithstanding the above, an act or omission by the Company shall not constitute an event of Good Reason unless Executive gives the Company written notice
within 60 days following the date Executive first knows, or reasonably should have known, of the event constituting Good Reason of his intention to resign for Good Reason if such Good Reason event is not cured by the Company, and the Company does
not cure such event (retroactively with respect to any monetary matter) to the reasonable satisfaction of Executive within 30 days following the date the Company receives such written notice from Executive. 

(e)    Termination Due to Death or Disability. 

(i)    If, during the Term, Executive shall become unable to perform his duties as provided for herein by
reason of Disability (as defined below), then the Company may, on 30 days’ prior written notice to Executive, temporarily suspend his status as President and Chief Risk Officer of the Company. In the event of such suspension, Executive shall
remain an employee of the Company and receive his compensation and benefits as set forth above in Section 4 for the lesser of: (i) one year from the date of such suspension or (ii) the date on which Executive is first eligible for
long-term disability payments under the Company’s long-term disability plan then applicable to him (the “Suspension Period”). If during the Suspension Period, Executive returns to perform his duties as provided for herein, and
there is no physical or mental inability to perform such duties, then Executive shall resume his status as President and Chief Risk Officer, and the Company shall continue payment of his full compensation and benefits as set forth in Section 4.
Executive’s employment with the Company shall terminate at the end of the Suspension Period if Executive has not returned by the end of the Suspension Period to the full-time performance of his duties hereunder. 

 Jon W. Springer 

Employment Agreement 
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 (ii)    If Executive’s employment terminates because
of Executive’s death or Disability, within 30 days of such termination, the Company will pay to Executive (or Executive’s estate, in the case of Executive’s death) the Accrued Obligations and any employee benefits to which Executive
may be entitled to pursuant to the Company’s employee benefit plans through such period; provided, however, that, in the case of Executive’s death, benefit payments under any employee benefit plan shall be paid to
Executive’s beneficiary or beneficiaries designated pursuant to such employee benefit plans in lieu of to his estate. In addition, by no later than March 15th of the year following the year
in which the Termination Date (as defined in Section 5(g)(iv) or Section 5(g)(v) below, as applicable) occurs, Executive (or Executive’s estate in the case of Executive’s death) shall also be paid a Pro Rata Bonus for the year in
which the termination occurs. Solely for purposes of this Section 5(e), the date of Executive’s termination of employment due to Disability or death shall be treated as the date of a termination without Cause under Section 5(d) (but
not Section 6) for purposes of the vesting, payment and exercisability of then outstanding PSUs and Options. 

(iii)    “Disability” means a determination by the Company after review of written
information provided by Executive’s healthcare provider that, as a result of a physical or mental injury or illness, Executive has been unable to perform the essential functions of Executive’s job for a period of 90 consecutive days. 

(f)    Unvested Options and PSUs. Anything in this Agreement to the contrary notwithstanding, any Options and PSU
awards outstanding on the Termination Date that have not vested prior to such Termination Date or that do not expressly vest or remain outstanding by operation of this Section 5 or Section 6 below shall be forfeited on the Termination
Date. 
 (g)    Termination Date. For purposes of this Agreement, “Termination Date” shall have
the following meanings: 
 (i)    in the event of Executive’s termination for Cause, subject to the
applicable notice provisions, the date specified in the written notice of termination delivered to Executive by the Company in accordance with Section 5(c); 

(ii)    in the event of Executive’s resignation with or without Good Reason, the 90th day following the date the written notice of intention to resign is received by the Company; 

(iii)    in the event of Executive’s termination without Cause, the 90th day following the date the written notice of termination is received by Executive; 

 Jon W. Springer 

Employment Agreement 
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 (iv)    in the event of Executive’s termination due
to death, the date of Executive’s death; and 
 (v)    in the event of Executive’s termination
due to Disability, the last day of the Suspension Period, if Executive has not returned to the full-time performance of his duties as specified in Section 5(e) by such date. 

6.    Change in Control. 

(a)    Termination in Connection with a Change in Control. 

(i)    In the event of a Change in Control (as defined in Section 6(a)(iii) below) occurring during
the then existing Term, the Term shall automatically continue until the second anniversary of the CIC Date. In the event that the Company terminates Executive’s employment without Cause or Executive resigns his employment with the Company for
Good Reason, in each case, upon or within 24 months following the date on which a Change in Control occurs (such date of occurrence, the “CIC Date”), then: (A) in lieu of the Severance Amount, the Company or its successor shall
pay Executive no later than the 60th day following the Termination Date a cash lump sum amount equal to the sum of (1) four times Executive’s then annual rate of Base Salary plus
(2) two times the amount of the Annual Bonus paid or payable to Executive for the calendar year prior to the calendar year in which the CIC Date occurs; (B) all Options held by Executive shall immediately vest and become exercisable for
the period of Extended Exercisability; and (C) all PSUs held by Executive shall immediately vest and become payable within 30 days following their regularly scheduled vesting dates contemplated by Section 3(d)(iii); provided,
however, the Earn Out Number for any previously granted PSUs for which the Performance Year has not been completed shall be based on the annualized performance for the Performance Year (based on actual performance through the Termination
Date), adjusted in an equitable manner determined by the Committee to take into account the Change in Control; and further provided that in no event shall the Earn Out Number as determined hereunder exceed that which would be payable
in connection with target performance. Notwithstanding anything herein to the contrary, Executive’s entitlements under clauses (A), (B) and (C) of this Section 6(a)(i) are each expressly conditioned upon the timely satisfaction of the
release delivery requirements of Section 5(d)(iii). 

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Employment Agreement 
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 (ii)    Notwithstanding Section 6(a)(i) above, in
the event of a consolidation or merger of the Company described in clause (A)(I) of the definition of Change in Control in Section 6(a)(iii) in which the consideration received by the stockholders of the Company in the Change in Control
consists exclusively of cash, securities not listed for trading on a national securities exchange or automated quotation system, or a combination of cash and such unlisted securities, then the following shall apply: (A) all then outstanding
Options shall immediately vest in full upon the CIC Date and the Company or its successor shall cause Executive to receive in cancellation of such Options a lump sum cash payment equal to the product of the number of shares of common stock
underlying such Options multiplied by the fair market value of the consideration per share paid to the Company’s stockholders in the merger or consolidation less the aggregate exercise price of such Options; and (B) all outstanding PSUs
shall vest in full immediately prior to the CIC Date and shall be settled through the delivery of shares of the Company’s common stock to Executive. For purposes of the previous sentence, the Earn Out Number for any previously granted PSUs for
which the Performance Year has not been completed on the CIC Date shall be based on target performance. Notwithstanding anything herein to the contrary, no acceleration of the settlement or delivery of any PSUs pursuant to this
Section 6(a)(ii)(B) shall occur unless the Change in Control constitutes a “change in ownership,” “change in effective control” or “change in the ownership of a substantial portion of the assets” of the Company, as
such terms are described in Treas. Reg. Section 1.409A-3(i)(5). 

(iii)    For purposes of this Agreement, and notwithstanding any contrary definition in the Omnibus Plan
as to the treatment of the PSUs under this Agreement, a “Change in Control” shall be deemed to have occurred if: (A) there shall be consummated (I) any consolidation or merger in which the Company is not the continuing or
surviving corporation or pursuant to which shares of the Company’s common stock would be converted into cash, securities or other property, other than a consolidation or a merger having the same proportionate ownership of common stock of the
surviving corporation immediately after the consolidation or merger or (II) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions other than in the ordinary course of business of the Company) of
all, or substantially all, of the assets of the Company to any corporation, person or other entity which is not a direct or indirect wholly-owned subsidiary of the Company, (B) any person, group, corporation or other entity (collectively,
“Persons”) shall acquire beneficial ownership (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and rules and regulations promulgated hereunder) of more than 50% of the Company’s
outstanding common stock or voting securities or (C) individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising
the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board. 

(iv)    For purposes of this Agreement, the “CIC Date” shall mean: (A) with respect
to a transaction contemplated under clause (A)(I) of Section 6(a)(iii), the closing date of such consolidation or merger; (B) with respect to a transaction contemplated under clause A(II) of Section 6(a)(iii), the date on which such
sale, lease, exchange or other transfer is completed (which shall be the completion date of the final transaction if a series of transactions is contemplated); (C) with respect to an acquisition contemplated under clause (B) of
Section 6(a)(iii), the date of the closing of the tender offer or other acquisition pursuant to which the requisite beneficial ownership percentage is acquired by such Person or Persons; and (D) with respect to a change in Board
composition contemplated under clause (C) of Section 6(a)(iii), the date of appointment of the director or group of directors that would cause the Incumbent Board to cease to constitute a majority for purposes of such clause (C). 

 Jon W. Springer 

Employment Agreement 
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 (b)    Limitation on Change in Control Payments. Notwithstanding
anything in this Agreement to the contrary, in the event that it is determined by an independent accounting firm chosen by mutual agreement of the parties (the “Accounting Firm”) that any economic benefit, payment or distribution by
the Company to or for the benefit of Executive, whether paid, payable, distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (and the applicable regulations thereunder) (the “Code”) (such excise tax referred to in this Agreement as the “Excise Tax”), then the value of any such Payments
payable under this Agreement (the “Agreement Payments”) which constitute “parachute payments” under Section 280G(b)(2) of the Code, as determined by the Accounting Firm, will be reduced so that the present value of
all Payments (calculated in accordance with Section 280G of the Code and the regulations thereunder), in the aggregate, is equal to 2.99 times Executive’s “base amount,” within the meaning of Section 280G(b)(3) of the Code
(the “Reduced Amount”). Notwithstanding the foregoing, the Agreement Payments shall be reduced to the Reduced Amount only if the Accounting Firm determines that Executive would have a greater “Net
After-Tax Receipt” (as defined below) of aggregate Payments if the Executive’s Agreement Payments were reduced to the Reduced Amount. “Net After
Tax-Receipt” shall mean the present value (as determined in accordance with Section 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Executive with respect
thereto under Sections 1 and 4999 of the Code and under applicable state and local laws (and including any employment, social security or Medicare taxes, and other taxes (including any other excise taxes)), determined by applying the highest
marginal rate under Section 1 of the Code and under state and local laws which applied to Executive’s taxable income for the tax year in which the CIC Date occurs, or such other rate(s) as the Accounting Firm determines to be likely to
apply to Executive in the relevant tax year(s) in which any Payment is expected to be made. 
 7.    Restrictions and
Obligations of Executive. 
 (a)    Non-Disparagement. Executive will
not at any time (whether during or after the Term) publish or communicate to any person or entity any Disparaging remarks, comments or statements concerning the Company or any member of the Company Group and any of its or their respective present
and former members, partners, directors, officers, stockholders, employees, agents, attorneys, successors, assigns, clients and agents. The Company will not at any time (whether during or after the Term) cause or assist the CEO or any of its
then-current directors to publish or communicate, to any person or entity any Disparaging remarks, comments or statements concerning Executive. “Disparaging” remarks, comments or statements are those that impugn the character,
honesty, integrity, morality, business acumen or abilities in connection with any aspect of the operation of business of the individual or entity being disparaged. 

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 (b)    Confidentiality. 

(i)    During the course of Executive’s employment, Executive has had and will have access to
certain trade secrets and confidential information relating to the Company and the members of the Company Group which is not readily available from sources outside the Company. The parties agree that the business in which the Company and the Company
Group engages is highly sales-oriented and the goodwill established between Executive and the Company’s customers and potential customers is a valuable and legitimate business interest worthy of protection under this Agreement. Executive
recognizes that, by virtue of Executive’s employment by the Company, Executive is granted otherwise prohibited access to the Company Group’s confidential and proprietary data which is not known to its competitors and which has independent
economic value to the Company and that Executive will gain an intimate knowledge of each member of the Company Group’s reinsurance business and its policies, customers, employees and trade secrets, and of other confidential, proprietary,
privileged or secret information of the Company and its clients (collectively, all such nonpublic information is referred to as “Confidential Information”). This Confidential Information includes, but is not limited to, data
relating to each member of the Company Group’s marketing and servicing programs, procedures and techniques, business, management and personnel strategies, analytic tools and processes, the criteria and formulae used by the Company and other
members of the Company Group in pricing its insurance products and claims management, loss control and information management services, the Company’s and each Company Group member’s computer system, reinsurance marketing program and the
skill of marketing and selling products, the structure and pricing of special reinsurance products or packages that each member of the Company Group has negotiated with various underwriters, lists of prospects, customer lists and renewals, the
identity, authority and responsibilities of key contacts at clients’ accounts, the composition and organization of clients’ business, the peculiar risks inherent in a client’s operations, highly sensitive details concerning the
structure, conditions and extent of a client’s existing insurance and reinsurance coverages, policy expiration dates and premium amounts, commission rates, risk management service arrangements, loss histories and other data showing
clients’ particularized insurance requirements and preferences. 
 (ii)    Except as required by
law or an order of a court or governmental agency with jurisdiction, Executive will not, during the Term or any time thereafter, disclose any Confidential Information, directly or indirectly, to any person or entity for any reason or purpose
whatsoever, nor will Executive use Confidential Information for any commercial or business purpose. Executive will take all reasonable steps to safeguard the Confidential Information and to protect it against disclosure, misuse, espionage, loss and
theft. Executive understands and agrees that Executive will acquire no rights to any such Confidential Information. 

(iii)    At the Company’s request from time to time and upon the termination of Executive’s
employment for any reason, Executive will promptly deliver to the Company all copies and embodiments, in whatever form, of all Confidential Information in Executive’s possession or within Executive’s control (including, but not limited to,
memoranda, records, notes, plans, photographs, manuals, notebooks, documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes and all other materials containing any Confidential Information) irrespective of the location or
form of such material. If requested by the Company, Executive will provide the Company with written confirmation that all such materials have been delivered to the Company as provided herein. 

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Employment Agreement 
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 (iv)    Notwithstanding anything herein to the contrary,
Executive shall have the right under Federal law to certain protections for cooperating with or reporting legal violations to the Securities and Exchange Commission (the “SEC”) and/or its Office of the Whistleblower, as well as
certain other governmental entities. No provisions in this Agreement are intended to prohibit Executive from disclosing this Agreement to, or from cooperating with or reporting violations to, the SEC or any other such governmental entity, and
Executive may do so without disclosure to the Company. The Company may not retaliate against Executive for any of these activities, and nothing in this Agreement would require Executive to waive any monetary award or other payment that Executive
might become entitled to from the SEC or any other governmental entity. 

(c)    Non-Solicitation or Hire. During the Term and for a period of 12
months following the termination of Executive’s employment for any reason (whether during or after the Term) (the “Non-Solicit Period”), Executive will not directly or indirectly
solicit or attempt to solicit or induce, directly or indirectly: (1) any person who is a client, customer or policyholder of any member of the Company Group, or who was a client, customer or policyholder of any member of the Company Group at
any time during the one-year period immediately prior to the Termination Date, for the purpose of marketing, selling or providing to any such party any services or products offered by or available from any
member of the Company Group and (2) any employee of, or independent contractor or consultant to, any member of the Company Group or any person who was an employee of, or independent contractor or consultant to, any member of the Company Group
during the one-year period immediately prior to the Termination Date to terminate such employee’s employment relationship or such independent contractor’s or consultant’s relationship with such
member of the Company Group, in either case, to enter into a similar relationship with Executive or any other person or any entity in competition with any member of the Company Group. During the Non-Solicit
Period, Executive will not enter into an employment, consulting or independent contractor relationship, directly or indirectly, with any employee of, or independent contractor or consultant to, any member of a Company Group or any person who was an
employee of, or independent contractor or consultant to, any member of a Company Group during the one-year period immediately prior to the date Executive’s employment terminates. Notwithstanding the
foregoing, solicitations incidental to general advertising or other general solicitations in the ordinary course not specifically targeted at such employees, independent contractors or consultants and employment of (or entry into an independent
contractor or consultancy relationship with) any person not otherwise solicited in violation hereof shall not be considered a violation of this Section 7(c). Executive shall not be in violation of this Section 7(c) solely by providing a
reference for a former employee of, or independent contractor or consultant to, the Company. 

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Employment Agreement 
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 (d)    Non-Competition.
During the Term and for a period of 12 months following Executive’s termination of employment for any reason (whether during or after the Term, but subject to the limitation set forth in the last sentence of this paragraph) (the “Non-Compete Period”), Executive will not, whether individually, as a director, manager, member, stockholder, partner, owner, employee, consultant or agent of any business, or in any other capacity, other
than on behalf of a member of the Company Group, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit Executive’s name to be used by, act as a consultant or advisor to, render services for (alone or
in association with any person, firm, corporation or business organization) or otherwise assist any person or entity that engages in or owns, invests in, operates, manages or controls any venture or enterprise which engages or proposes to engage in
any business conducted by any member of the Company Group during the one-year period immediately prior to the date Executive’s employment terminates. In the event that the Term expires on
December 31, 2019 and Executive and Company have not entered into a new employment agreement or renewed this Agreement on or prior to such date, the Non-Compete Period shall not extend beyond
December 31, 2021. 
 (e)    Company Policies. During the Term and all periods thereafter, Executive will
remain in material compliance with the Company’s policies and guidelines, including the Company’s code of business conduct or code of ethics. 

8.    Remedies; Specific Performance. The parties acknowledge and agree that Executive’s breach or threatened
breach of any of the restrictions set forth in Section 7 will result in irreparable and continuing damage to the Company and the Company Group for which there may be no adequate remedy at law and that the Company and the Company Group are
entitled to equitable relief, including specific performance and injunctive relief as remedies for any such breach or threatened or attempted breach. Executive consents to the grant of an injunction (temporary or otherwise) against Executive or the
entry of any other court order against Executive prohibiting and enjoining Executive from violating, or directing Executive to comply with, any provision of Section 7. Executive also agrees that such remedies are in addition to any and all
remedies, including damages, available to the Company and the Company Group against Executive for such breaches or threatened or attempted breaches. In addition, without limiting the Company’s and the Company Group’s remedies for any
breach of any restriction on Executive set forth in Section 7, except as required by law, Executive is not entitled to any payments set forth in Sections 5(d) or 6(a) if Executive has materially breached the covenants contained in
Section 7. Executive will immediately return to the Company any such payments previously received under Sections 5(d) or 6(a) upon such a material breach and, in the event of such breach, the Company will have no obligation to pay any of
the amounts that remain payable by the Company under Sections 5(d) or 6(a). 
 9.    Code
Section 409A. The provisions of this Section 9 shall apply notwithstanding any provision of this Agreement. 

(a)    Delay of Payments. If, at the time of Executive’s termination or resignation with the Company,
Executive is a Specified Employee (as defined below), then any amounts payable to Executive that the Company determines constitute deferred compensation within the meaning of Section 409A of the Code and which are subject to the six-month delay required by Treas. Reg. Section 1.409A-1(c)(3)(v), shall be delayed and not paid to Executive until the first business day following the six-month anniversary of Executive’s date of termination or resignation (the “Deferral Date”), at which time such delayed amounts will be paid to Executive in a cash lump sum (the “Catch-Up Amount”). If payment of an amount is delayed as a result of this Section 9(a), such amount shall be increased with interest from the date on which such amount would otherwise have been paid to
Executive but for this Section 9(a) to the day prior to the date the Catch-Up Amount is paid. The rate of interest shall be the applicable short-term federal rate applicable under
Section 7872(f)(2)(A) of the Code for the month in which the date of Executive’s termination or resignation occurs. Such interest shall be paid at the same time that the Catch-Up Amount is paid.
If Executive dies on or after the date of Executive’s termination or resignation of employment and prior to the Deferral Date, any amount delayed pursuant to this Section 9(a) shall be paid to Executive’s estate or beneficiary, as
applicable, together with interest, within 30 days following the date of Executive’s death. 

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Employment Agreement 
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 (b)    “Specified Employee” has the meaning set forth in
Section 409A(a)(2)(B)(i) of the Code. The determination of whether Executive constitutes a Specified Employee on the date of his termination or resignation shall be made in accordance with the Company’s established methodology for
determining Specified Employees. 
 (c)    “Separation from Service” means a “separation from
service” from the Company within the meaning of the default rules under the final regulations issued pursuant to Section 409A of the Code. For purposes of compliance with Section 409A of the Code, when used in this Agreement, the
terms “terminate,” “terminated,” “termination,” “resign,” “resigned” and “resignation” mean a termination of Executive’s employment that constitutes a Separation from Service. 

(d)    Separate Payments and Reimbursements. For purposes of applying the provisions of Section 409A of the
Code to this Agreement, each separately identifiable amount to which Executive is entitled under this Agreement shall be treated as a separate payment. To the extent any reimbursements or in-kind benefit
payments under this Agreement are subject to Section 409A, such reimbursements and in-kind benefit payments shall be made in accordance with Section 409A, and payments of such reimbursements or in-kind benefits shall be made on or before the last day of the calendar year following the calendar year in which the relevant expense is incurred. 

10.    Stock Ownership Guidelines. Executive will comply with all stock ownership and stock retention guidelines or
policies established by the Board and the Committee, as in effect from time to time. 
 11.    Claw Back Policy.
All compensation granted to Executive hereunder shall be subject to any and all claw back policies of the Company, as in effect from time to time. 

12.    Notice. For purposes of this Agreement, all notices and other communications will be in writing and will be
deemed to have been duly given when delivered or if sent either by Federal Express, hand-delivery, e-mail, or postage prepaid, by certified mail, return receipt requested, with a copy by ordinary mail, to the
addresses below: 

 Jon W. Springer 

Employment Agreement 
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	If to Executive:	  	If to the Company:
	 Jon W. Springer
 At Executive’s most recent
address
 on file with the Company
	  	 Universal Insurance Holdings, Inc.
 1110 West
Commercial Boulevard
 Fort Lauderdale, Florida 33309
 Attn:
Beth Wallace

 or to such other address as any party may have furnished to the other in writing in accordance with this Section 12,
except that notices of any change of address is effective only upon actual receipt. 
 13.    Entire Agreement.
This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto, including, without limitation, the Prior Agreement;
provided, however, that the terms of this Agreement shall not supersede or replace any equity award made prior to the Effective Date. No severance or other termination payments are payable to Executive under the Prior Agreement or
under any other plan or arrangement of the Company in connection with the execution of this Agreement or the termination of the Prior Agreement. 

14.    Waiver and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended,
and the terms and conditions hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. Except as provided in Section 5(d)(iv), no delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder,
preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 

15.    Governing Law. This Agreement and the implementation of it shall be subject to and governed by the laws of
the State of Florida applicable to contracts fully executed and performed in such State. 
 16.    Venue. The
parties agree that the exclusive venue for any litigation relating to this Agreement will be the state courts located in Broward County, Florida and the United States District Court, Southern District of Florida, Fort Lauderdale Division in Broward
County, Florida.    The parties waive any rights to object to venue as set forth herein, including any argument of inconvenience for any reason. 

17.    Assignability by the Company and Executive. The Company shall have the right to assign this Agreement to its
successors or assigns, and the Executive hereby consents to any such assignment. All covenants or agreements hereunder shall inure to the benefit of, and be enforceable by or against, the Company’s successors or assigns. The terms
“successors” and “assigns” shall include, but not be limited to, any successor upon a Change in Control.    Executive may not assign this Agreement or the rights and entitlements hereunder, except that any
payments owed to Executive under this Agreement in the event of his death shall be payable to his estate. Executive may not delegate his duties and responsibilities hereunder. 

18.    Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original but
all of which will constitute one and the same instrument. 

 Jon W. Springer 

Employment Agreement 
 Page 18 of 19 

 

 19.    Headings. The headings in this Agreement are for
convenience of reference only and will not limit or otherwise affect the meaning of terms contained herein. 

20.    Severability. If any term, provision, covenant or restriction of this Agreement, or any part thereof, is
held by a court of competent jurisdiction of any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any
reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement will remain in full force and effect and will in no way be affected or impaired or invalidated. If any court determines that any of such covenants, or any
part thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such court will reduce such scope to the minimum extent necessary to make such covenants valid and enforceable. Executive acknowledges that the
restrictive covenants contained in Section 7 are a condition of this Agreement and are reasonable and valid in temporal scope and in all other respects. 

21.    Tax Withholding. The Company or other payor is authorized to withhold from any benefit provided or payment
due hereunder, the amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take such other action as may be necessary in the Company’s opinion to satisfy all obligations for the payment
of such withholding taxes. 
 [remainder of page intentionally left blank] 

 Jon W. Springer 

Employment Agreement 
 Page 19 of 19 

 

 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed
this Agreement as of the day and year first above mentioned. 
  

			
		 	EXECUTIVE:
		
		 	/s/ JON W. SPRINGER
		 	Jon W. Springer

  

			
		 	UNIVERSAL INSURANCE HOLDINGS, INC.
		
		 	/s/ SEAN P. DOWNES
		 	 Name: Sean P. Downes
 Title: Chairman and
Chief Executive Officer

 Schedule A 

2019 PERFORMANCE GOALS APPLICABLE TO PSUs 

A. Description of Performance Objective 
 For the PSUs
granted on the Effective Date under the Agreement, the performance objective to determine the Earn Out Number shall be policy count as measured by growth in Non-Florida Premiums for 2019 in comparison to Non-Florida Premiums for 2018. 
 B. Calculation of the Earn Out Number: 

The Earn Out Number will be: 
  

	 	1.	 Zero, if the Performance Level is less than 125%. 

 

	 	2.	 100% of the Target Number, if the Performance Level is 125% or greater. 

C. Definitions and Certification. 
 “Non-Florida Premiums” for any year shall be the aggregate amount of in-force rate adequate premiums for such year from states other than Florida as reported in the
Policy Portfolio and Claims Liability Overview Reports (the “Reports”) presented to the Company’s Board of Directors. The methodology for determining rate adequate in-force premiums shall
be consistently applied in the 2018 and 2019 Reports. 
 “Performance Level” means a percentage equal to (i) the aggregate amount of Non-Florida Premiums for 2019 divided by (ii) the aggregate amount of Non-Florida Premiums for 2018. 

All results under this Schedule A shall be objectively determined in accordance with the methodology used to prepare the reports
noted above and consistently applied from year-to-year and certified in writing by the Company’s Chief Financial Officer based upon such reports, and the Earn Out
Number shall be subject to the Committee’s certification, and such certifications shall be binding and conclusive on all parties. 

 Schedule B 

RELEASE AGREEMENT 
 In
consideration of the payments and benefits to be provided to him by Universal Insurance Holdings, Inc. ( the “Company”) pursuant to the agreement dated as of December 17, 2018, by and between the Company and himself (the
“Employment Agreement”), Jon W. Springer (“Executive”), agrees to be bound by this Release Agreement (the “Agreement”). 

Accordingly, Executive agrees as follows: 

1.    Release. 

(a)    Executive waives any claims he may have for employment by the Company and agrees not to seek such employment or
reemployment by the Company in the future. Further, in consideration of the payments and benefits to be provided by the Company pursuant to the Employment Agreement, Executive, on behalf of himself and his heirs, executors, devisees, successors and
assigns, knowingly and voluntarily releases, remises, and forever discharges the Company and its parents, subsidiaries or affiliates, together with each of their current and former principals, officers, directors, stockholders, agents,
representatives and employees, and each of their heirs, executors, successors and assigns (collectively, the “Releasees”), from any and all debts, demands, actions, causes of action, accounts, covenants, contracts, agreements,
claims, damages, omissions, promises, and any and all claims and liabilities whatsoever, of every name and nature, known or unknown, suspected or unsuspected, both in law and equity (“Claims”), which Executive ever had, now has, or
may hereafter claim to have against the Releasees by reason of any matter or cause whatsoever arising from the beginning of time to the time he signs this Agreement (the “General Release”). This General Release of Claims shall apply
to any Claim of any type, including, without limitation, any and all Claims of any type that Executive may have arising under the common law, under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Older Workers Benefit
Protection Act, the Americans With Disabilities Act of 1967, the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, and the Sarbanes-Oxley Act of 2002, each as amended,
and any other federal, state, local or foreign statutes, regulations, ordinances or common law, or under any policy, agreement, contract, understanding or promise, written or oral, formal or informal, between any of the Releasees and Executive, and
shall further apply, without limitation, to any and all Claims in connection with, related to or arising out of Executive’s employment relationship, or the termination of his employment, with the Company. 

(b)    For the purpose of implementing a full and complete release, Executive understands and agrees that this Agreement
is intended to include all claims, if any, which Executive or his heirs, executors, devisees, successors and assigns may have and which Executive does not now know or suspect to exist in his favor against the Releasees, from the beginning of time
until the time he signs this Agreement, and this Agreement extinguishes those claims. 
 (c)    In consideration of the
promises of the Company set forth in the Employment Agreement, Executive hereby releases and discharges the Releasees from any and all Claims that Executive may have against the Releasees arising under the Age Discrimination Employment Act of 1967,
as amended, and the applicable rules and regulations promulgated thereunder (“ADEA”). Executive acknowledges that he understands that the ADEA is a federal statute that prohibits discrimination on the basis of age in employment,
benefits and benefit plans. Executive also understands that, by signing this Agreement, he is waiving all Claims against any and all of the Releasees. 

 (d)    This General Release shall not apply to (i) any obligation
of the Company pursuant to the Employment Agreement, (ii) any benefit to which Executive is entitled under any tax qualified pension plan of the Company or its affiliates, COBRA continuation coverage benefits, vested benefits under other
benefit plans of the Company or its affiliates or any other welfare benefits required to be provided by statute, (iii) any claim related to acts, omissions or events occurring after the date this Agreement is signed by Executive and
(iv) any right as a former employee of the Company that Executive may have to indemnification under the bylaws of the Company or under any directors and officers liability insurance policy then applicable to him. 

Capitalized words not otherwise defined herein have the meanings assigned thereto in the Employment Agreement. 

2.    Consultation with Attorney; Voluntary Agreement. The Company advises Executive to consult with an attorney of
his choosing prior to signing this Agreement. Executive understands and agrees that he has the right and has been given the opportunity to review this Agreement and, specifically, the General Release in Section 1 above, with an attorney.
Executive also understands and agrees that he is under no obligation to consent to the General Release set forth in Section 1 above. Executive acknowledges and agrees that the payments to be made to Executive pursuant to the Employment
Agreement are sufficient consideration to require him to abide with his obligations under this Agreement, including but not limited to the General Release set forth in Section 1. Executive represents that he has read this Agreement, including
the General Release set forth in Section 1, and understands its terms and that he enters into this Agreement freely, voluntarily, and without coercion. 

3.    Effective Date; Revocation. Executive acknowledges and represents that he has been given at least 21 days
during which to review and consider the provisions of this Agreement and, specifically, the General Release set forth in Section 1 above. Executive further acknowledges and represents that he has been advised by the Company that he has the
right to revoke this Agreement for a period of seven days after signing it. Executive acknowledges and agrees that, if he wishes to revoke this Agreement, he must do so in a writing, signed by him and received by the Company no later than 5:00 p.m.
Eastern Time on the seventh day of the revocation period. If no such revocation occurs, the General Release and this Agreement shall become effective on the eighth day following his execution of this Agreement. 

4.    Severability. In the event that any one or more of the provisions of this Agreement are held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remainder of this Agreement shall not in any way be affected or impaired thereby. 

5.    Waiver. No waiver by either party of any breach by the other party of any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time. 

 6.    Governing Law. This Agreement and the implementation of it
shall be subject to and governed by the laws of the State of Florida applicable to contracts fully executed and performed in such State. 
  

			
		 	EXECUTIVE:
		
		 	 
		 	Jon W. Springer

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