Document:

EX 102

		
			Exhibit 10.2
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			RULES OF THE CHAUCER
		

		
			2015 LONG-TERM CASH INCENTIVE PLAN
		

		

		

		 

		

			 

		

		

			 

		

 

		

			 

		

		﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Contents

				
	
					
						Rule

					
					
						 

					
					
						Page

				
	
					
						1

					
					
						Definition

					1 
				
	
					
						2

					
					
						Grant of Awards

					5 
				
	
					
						3

					
					
						Transfer

					5 
				
	
					
						4

					
					
						Cessation of Employment

					5 
				
	
					
						5

					
					
						Lapse of Awards

					6 
				
	
					
						6

					
					
						Vesting of an Award

					7 
				
	
					
						7

					
					
						Change in Control

					7 
				
	
					
						8

					
					
						Participation in Plan and Employment

					9 
				
	
					
						9

					
					
						Administration and Amendment

					10 
				
	
					
						10

					
					
						Exclusion of Third Party Rights

					11 
				
	
					
						11

					
					
						Termination

					12 
				
	
					
						12

					
					
						Governing Law

					12 
				
	
					
						13

					
					
						Reduction, Amendment or Cancellation of Awards

					12 
				

		
			﻿
		

		
			 
		

		 

		

			 

		

 

		

			 

		

			
	
			
				1
			

			
	
			
			Definitions

		
			In these Rules (unless the context otherwise requires) the following words and phrases have the following meanings:
		

		
			Award:  a conditional right to receive a cash payment under this Plan evidenced by an Award Certificate or, where the context permits, an Alternative Award;
		

		
			Award Certificate: a certificate issued by the Company and executed by a duly authorised officer thereof as evidence of the grant of an Award;
		

		
			Award Tax Liability: an amount sufficient to satisfy all of any jurisdiction’s taxes, duties, employee’s social security or national insurance contributions or any other amounts arising in connection with the Vesting or surrender of an Award or any cash payment pursuant to a Vested Award and which are required to be withheld or accounted for by the Withholding Agent;
		

		
			Base Salary: the annual rate of cash earnings (excluding, without limitation, bonuses and Awards hereunder) of the Employment by virtue of which the Eligible Employee may participate in the Plan, as of the date on which an Award is granted;
		

		
			Change in Control: Any of the following: (i) the members of the Board of Directors of The Hanover (the “Board”) at the beginning of any consecutive twenty-four (24) calendar month period (the “Incumbent Directors”) cease at any time during such period for any reason other than due to death, disability or retirement (in the event of a member’s death, disability of retirement, such member shall be deemed to continue as an Incumbent Director until such member’s seat on the Board is filled) to constitute at least a majority of the members of the Board, provided that any director whose election or nomination for election by The Hanover stockholders was approved by a vote of at least a majority of such Incumbent Directors shall be treated as an Incumbent Director; (ii) any “person” including a “group” (as such terms are used in Sections 13(d) and 14(d)(2) of The Securities Exchange Act of 1934, as amended (the “1934 Act”), but excluding The Hanover, its affiliates, any employee benefit plan of The Hanover or any affiliate, and an underwriter temporarily holding securities pursuant to an offering of such securities) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the 1934 Act), directly or indirectly, of securities of The Hanover representing 35% or more of the combined voting power of The Hanover’s then outstanding securities, except that this provision shall not be applicable if The Hanover, in connection with raising capital or making an acquisition (including through the issuance of debt or other securities which are convertible into securities with voting power), voluntarily agrees to issue to a “person” or a “group” (as defined above) in such a transaction, securities aggregating (when combined with securities owned by such person or group immediately prior to such transaction) 35% or more, but less than a majority, of the combined voting power of The Hanover’s then outstanding securities (but this exception shall not apply to any subsequent transfer, except to the extent agreed to by The 
		

		 

		

			1

		

 

		

			 

		

		Hanover, in writing, at the time such securities are issued); (iii) the consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving The Hanover or any affiliate that requires the approval of The Hanover’s stockholders (excluding a corporate transaction involving solely The Hanover and its affiliates) (a “Business Combination”), unless the stockholders immediately prior to such Business Combination own more than 50% of the total voting power of the successor corporation resulting from such Business Combination or a majority of the board of directors of the successor corporation were Incumbent Directors immediately prior to such Business Combination; (iv) the stockholders of The Hanover approve a sale of all or substantially all of The Hanover assets and such sale is consummated; or (v) the stockholders of The Hanover approve a plan of complete liquidation or dissolution of The Hanover; 
		

		
			Committee: the remuneration committee of the Company or other duly authorised committee which fulfils the same function;
		

		
			Companies Act: the Companies Act 2006 as amended from time to time;
		

		
			Company:  Chaucer Syndicates Limited;
		

		
			Control: has the meaning given to it by section 995 of the Income Tax Act 2007;
		

		
			Date of Grant:  the date on which an Award is granted pursuant to Rule 2.1;
		

		
			Eligible Employee:  any employee (including an executive director) of any Group Company;
		

		
			Employing Company:  the Company or any Group Company or former Group Company by which the Participant is or, where the context so admits, was Employed;
		

		
			Employment:  office or employment with any Group Company and Employed shall be construed accordingly;
		

		
			Executive Officer of Hanover.  Any Eligible Employee that has been designated by the Board of Directors of The Hanover as an “officer” (as that term is defined in Rule 16a-1(f) as promulgated under the Securities Exchange Act of 1934, as amended) of The Hanover.
		

		
			Financial Year: has the meaning given to it in section 390 of the Companies Act; 
		

		
			Group:  the Company and its Subsidiaries from time to time and Group Company shall be construed accordingly;
		

		
			Holding Company: the meaning given to it by section 1159 of the Companies Act;
		

		
			Participant:  an Eligible Employee who holds a Subsisting Award including, where the context permits, his personal representatives;
		

		

		

		 

		

			2

		

 

		

			 

		

		Performance Condition:  If applicable, the Performance Condition shall be the Average Post-Tax ROE during the Performance Period
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						FUNDING SCALE FOR AWARDS SUBJECT TO PERFORMANCE CONDITION

				
	
					
						Avg. Post-Tax ROE

					
					
						<7.5%

					
					
						7.5%

					
					
						15%

					
					
						>25%

				
	
					
						% of Target Award

					
					
						0%

					
					
						25%

					
					
						100%

					
					
						200%

				

		
			
		

		
			If actual Average Post-Tax ROE falls between the points identified on the scale, funding will increase or decrease in a linear manner
		

		
			﻿
		

		
			Performance Period:  the period commencing on 1 January 2015 and expiring on 31 December 2017;
		

		
			Plan:  this plan as governed by the Rules;
		

		
			Average Post-Tax ROE: equals:
		

			
					
						﻿

				
	
					
						Measurement Year 1 ROE + Measurement Year 2 ROE + Measurement Year 3 ROE

				
	
					
						3 

				

		
			﻿
		

		
			Measurement Year 1 ROE (1  January 2015  – 31 December 2015) equals(d):
		

		
			﻿
		

			
					
						(2015 Pre-Tax Chaucer Operating Income(a)) x (1 - 2015 Operating Tax Rate(b))

				
	
					
						2015 Average Chaucer Equity(c) 

				

		
			﻿
		

		
			﻿
		

		
			Measurement Year 2 ROE (1 January 2016 – 31 December 2016) equals(d):
		

		
			﻿
		

			
					
						﻿

				
	
					
						(2016 Pre-Tax Chaucer Operating Income(a)) x (1 - 2016 Operating Tax Rate(b))

				
	
					
						2016 Average Chaucer Equity(c) 

				

		
			﻿
		

		
			﻿
		

		
			Measurement Year 3 ROE (1 January 2017 – 31 December 2017) equals(d):
		

		
			﻿
		

			
					
						﻿

				
	
					
						(2017 Pre-Tax Chaucer Operating Income(a)) x (1 - 2017 Operating Tax Rate(b))

				
	
					
						2017 Average Chaucer Equity(c) 

				

		
			﻿
		

		
			Definitions
		

			
	
			
				 (a)
			

			
	
			
			“Pre-Tax Chaucer Operating Income” means Chaucer’s pre-tax operating income, excluding interest on debt (but including interest for Letters of Credit) and expense associated with the 2011 retention awards for Messrs.  Bartell and Fowle, for the applicable period determined in accordance with U.S. GAAP and as reported in The Hanover’s financial statements as filed with the U.S. Securities and Exchange Commission (the “SEC”).

		
			﻿
		

			
	
			
				 (b)
			

			
	
			
			“Operating Tax Rate” means the actual year end operating tax rate for the applicable portion of the performance period (e.g. year end 2015 tax rate will apply to 2015 performance period) determined in accordance with U.S. GAAP and as utilized in the preparation of The Hanover’s financial statements as filed with the SEC. 

		
			﻿
		

			
	
			
				 (c)
			

			
	
			
			Average Chaucer Equity is determined by averaging Chaucer’s consolidated equity as calculated in accordance with U.S. GAAP (but excluding all other comprehensive income) utilizing a five point average methodology including 12/31/XX,  3/31/XX,   6/30/XX , 9/30/XX and 12/31/XX for each Measurement Year. 

		
			﻿
		

			
	
			
				 (d)
			

			
	
			
			When calculating Post-Tax ROE, currencies shall be converted into USD based upon exchange rates utilized in the applicable financial statements filed with the SEC.

		

		

		 

		

			3

		

 

		

			 

		

		﻿
		

		
			Pro-Rating Formula: the formula which is used to establish the percentage of an Award which may Vest (subject, where applicable, to the satisfaction of Performance Conditions) where Rule 4 (Cessation of Employment) applies by applying the following formula:
		

		
			
		

		
			where X is the number of days (not to exceed 1,096)  comprised in the period beginning on the Date of Grant and ending on the day on which the Award Vests in accordance with Rule 4.
		

		
			Rules:  these rules as from time to time amended in accordance with their provisions by the Committee;
		

		
			Subsidiary:  a company which is a subsidiary of the Company (within the meaning of section 1159 of the Companies Act) and which is under the Control of the Company;
		

		
			Subsisting Award:  an Award to the extent that it has not Vested and has not lapsed; 
		

		
			The Hanover: The Hanover Insurance Group, Inc., a corporation organised under the laws of the state of Delaware,  USA;
		

		
			The Hanover Committee. The Compensation Committee of The Hanover’s Board of Directors or such other duly authorised committee which fulfils the same function; 
		

		
			Vest:  in relation to an Award,  for the Participant to become absolutely beneficially entitled to a payment of cash under the Award and Vesting, Vested and Unvested shall be construed accordingly;
		

		
			Vesting Date:  April 1, 2018 or such other earlier date which may be determined in accordance with these Rules; and
		

		
			Withholding Agent:  a Participant's Employing Company, the Company, any Group Company, any former Group Company, or any other entity or person designated by the Committee which is required to account to the relevant tax authorities for an Award Tax Liability.
		

		
			Where the context so permits, the singular shall include the plural and vice versa and the masculine gender shall include the feminine. Any reference to a statutory provision is to be construed as a reference to that provision as from time to time amended or re-enacted and shall include any regulations or other subordinate legislation made under it.
		

		
			﻿
		

		

		

		 

		

			4

		

 

		

			 

		

		﻿
		

			
	
			
				2
			

			
	
			
			Grant of Awards

			
	
			
				2.1
			

			
	
			
			Subject to section 2.6, the Committee may grant Awards by deed to such Eligible Employees as it shall at its absolute discretion, from time to time, select.  No Eligible Employee shall be entitled as of right to have an Award granted to him. The extent of any grant of Awards shall be determined by the Committee at its absolute discretion.

			
	
			
				2.2
			

			
	
			
			The Committee will determine the aggregate levels of Awards granted under the Plan.

			
	
			
				2.3
			

			
	
			
			No payment will be required in consideration for the grant of an Award.

			
	
			
				2.4
			

			
	
			
			Each Participant shall be issued with an Award Certificate which will set out the details mentioned in Rule 2.2.  To the extent that the terms of an Award Certificate conflict with the Rules, the Rules shall prevail.

			
	
			
				2.5
			

			
	
			
			The Performance Condition may not be varied (save as otherwise provided in these Rules) unless an event occurs which causes the Committee to determine that such Performance Condition has ceased to be appropriate whereupon the Committee may (subject to the consent of The Hanover Committee) at its absolute discretion vary or replace such Performance Condition provided that the variation or replacement is, in the Committee’s opinion, fair and reasonable.

			
	
			
				2.6
			

			
	
			
			Notwithstanding any language contained herein to the contrary (i) any Awards granted hereunder to an Executive Officer of Hanover will not be effective unless, and until such time as, such action by the Committee has been formally ratified by The Hanover Committee, and (ii) in no event shall the maximum aggregate value of all Awards granted hereunder exceed such amounts authorised by The Hanover Committee.

			
	
			
				3
			

			
	
			
			Transfer

		
			Subject to the rights of a deceased Participant’s personal representatives pursuant to Rule 4.2, an Award may not be transferred, charged, pledged, mortgaged or encumbered in any way whatsoever.
		

			
	
			
				4
			

			
	
			
			Cessation of Employment

			
	
			
				4.1
			

			
	
			
			If a Participant ceases to hold Employment prior to the date on which any payment pursuant to his Vested Award is made in accordance with Rule 6 by reason of:

			
	
			
				4.1.1
			

			
	
			
			injury, ill-health or disability proved to the satisfaction of the Committee; or

			
	
			
				4.1.2
			

			
	
			
			redundancy; or

		 

		

			5

		

 

		

			 

		

			
	
			
				4.1.3
			

			
	
			
			retirement with the agreement of his Employing Company; or

			
	
			
				4.1.4
			

			
	
			
			any other reason at the absolute discretion of the Committee,

		
			Portion of Award Not Subject to a Performance Condition:  This portion of the Award shall be deemed to immediately Vest but shall be reduced to reflect the Pro-Rating Formula, unless the Committee, in its absolute discretion, determines that the Award shall Vest to a greater extent; and
		

		
			Portion of Award Subject to a Performance Condition: This portion of the Award shall be deemed to immediately Vest to the extent that the Performance Condition is ultimately satisfied (to be determined at the conclusion of the Performance Period), but the amount payable shall be delayed until such time as the Committee makes such a determination and shall be reduced to reflect the Pro-Rating Formula, unless the Committee, in its absolute discretion, determines that the Award shall Vest to a greater extent
		

			
	
			
				4.2
			

			
	
			
			If a Participant dies, 

			
	
			
				4.2.1
			

			
	
			
			Portion of Award Not Subject to a Performance Condition:  This portion of the Award shall be deemed to immediately Vest but shall be reduced to reflect the Pro-Rating Formula, unless the Committee, in its absolute discretion, determines that the Award shall Vest to a greater extent; and

			
	
			
				4.2.2
			

			
	
			
			For Portion of Award Subject to a Performance Condition: This portion of the Award shall be deemed to immediately Vest to the extent that the Performance Condition is ultimately satisfied (to be determined at the conclusion of the Performance Period) and payment shall be made to his personal representatives, but the amount payable shall be delayed until such time as the Committee makes such a determination and shall be reduced to reflect the Pro-Rating Formula unless the Committee, in its absolute discretion, determines that the Award shall Vest to a greater extent.

			
	
			
				5
			

			
	
			
			Lapse of Awards

			
	
			
				5.1
			

			
	
			
			An Award shall lapse and cease to be capable of Vesting upon the earliest to occur of the following:

			
	
			
				5.1.1
			

			
	
			
			the expiry of the Performance Period, to the extent that any applicable Performance Condition remains unfulfilled at that date;

			
	
			
				5.1.2
			

			
	
			
			the date upon which a Participant ceases to hold Employment for any reason not set out in Rule 4.1;

			
	
			
				5.1.3
			

			
	
			
			the Participant being adjudicated bankrupt; 

			
	
			
				5.1.4
			

			
	
			
			any breach or purported breach of Rule 3 by the Participant; or

		 

		

			6

		

 

		

			 

		

			
	
			
				5.1.5
			

			
	
			
			a determination by the Committee pursuant to Rule 13 that the Award be cancelled.

			
	
			
				5.2
			

			
	
			
			For the purposes of these Rules:

			
	
			
				5.2.1
			

			
	
			
			a  Participant shall not be treated as ceasing to hold Employment until he ceases to hold Employment with any Group Company; 

			
	
			
				5.2.2
			

			
	
			
			a  Participant shall be treated as ceasing Employment on the day on which he gives or is served notice of such cessation, unless the Committee determines that he shall be treated as ceasing Employment upon the date on which he actually ceases Employment;

			
	
			
				5.2.3
			

			
	
			
			if a Participant’s Employment is suspended in accordance with his Employing Company’s disciplinary procedures and subsequently terminated, he shall be treated as having ceased Employment on the date on which he was suspended unless the Committee at its absolute discretion determines otherwise; and

			
	
			
				5.2.4
			

			
	
			
			a female Participant shall not be treated as ceasing Employment if absent from work wholly or partly because of pregnancy until such time as she ceases to be entitled to return to work.

			
	
			
				6
			

			
	
			
			Vesting of an Award

			
	
			
				6.1
			

			
	
			
			As soon as reasonably practicable after the Vesting Date of an Award, the Company shall pay the Participant the amount to which he is entitled.

			
	
			
				6.2
			

			
	
			
			Any amount paid pursuant to this Plan shall be paid net of any Award Tax Liability.

			
	
			
				6.3
			

			
	
			
			Notwithstanding any language contained herein to the contrary, the determination by the Committee as to the level of achievement of the Performance Condition, the aggregate amount of payments to be made hereunder upon Vesting of the Awards, and any specific amounts to be paid upon Vesting of Awards made to Executive Officers of Hanover, will not be effective unless, and until such time as, such determination by the Committee has be formally ratified by The Hanover Committee.

			
	
			
				7
			

			
	
			
			Change in Control

		
			In the event of a Change in Control, the following provisions of this Rule 7 shall apply:  
		

			
	
			
				7.1
			

			
	
			
			Except as provided in Rule 7.2 below, upon consummation of a Change in Control 

			
	
			
				7.1.1
			

			
	
			
			Portion of Award Not Subject to a Performance Condition:  This portion of the Award shall immediately Vest; and:

		 

		

			7

		

 

		

			 

		

			
	
			
				7.1.2
			

			
	
			
			Portion of Award Subject to a Performance Condition: This portion of the Award shall immediately Vest to the extent that the Performance Condition has been satisfied; provided, however, to the extent that the effective date of the Change in Control is prior to the expiration of the Performance Period and the Performance Condition has not yet been achieved as of such date, such Performance Condition shall be deemed satisfied at such level determined below:

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						Effective Date of Change in Control

					
					
						Calculation of Level of Performance Condition Achievement

				
	
					
						Prior to 1 January 2016

					
					
						Performance Condition deemed achieved at target 

				
	
					
						1 January 2016 to 31 December 2016 

					
					
						Measurement Year 1 ROE shall be achieved at the level of actual performance determined and certified by the Committee; Measurement Years 2 and 3 ROE shall be deemed achieved at target

				
	
					
						1 January 2017 to 31 December 2017

					
					
						Measurement Year 1 and 2 ROE shall be achieved at the level of actual performance determined and certified by the Committee; Measurement Year 3 ROE shall be deemed achieved at target

				
	
					
						On or after 1 January 2018

					
					
						Performance Condition shall be achieved at actual level of performance as determined by the Committee

				

		
			﻿
		

			
	
			
				7.2
			

			
	
			
			Notwithstanding Rule 7.1, no acceleration of Vesting shall occur with respect to an Award if The Hanover Committee reasonably determines in good faith prior to the occurrence of a Change in Control that this Award shall be honoured or assumed, or new rights substituted therefor (such honoured, assumed or substituted award hereinafter called an “Alternative Award”), by the Participant's employer (or the Holding Company or a Subsidiary of such employer) immediately following the Change in Control, provided that the Alternative Award shall become a time-based award that is no longer subject to any performance-based Vesting requirement, and shall also:

			
	
			
				7.2.1
			

			
	
			
			be payable in cash;

			
	
			
				7.2.2
			

			
	
			
			provide such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under this Award, including, but not limited to, an identical or better time-based Vesting schedule;

			
	
			
				7.2.3
			

			
	
			
			have substantially equivalent economic value to this Award (determined at the time of the Change in Control and based upon the value the Participant would have received had the Award been accelerated pursuant to Rule 7.1 above); and

		 

		

			8

		

 

		

			 

		

			
	
			
				7.2.4
			

			
	
			
			have terms and conditions which provide that in the event that the Participant's employment is involuntarily terminated (other than for misconduct or under circumstances whereby, pursuant to the terms of the Participant’s employment, the Participant could be summarily dismissed without notice) or the Participant terminates his employment for “Good Reason” (as defined in Rule 7.3 below) prior to the Vesting Date, the Alternative Award shall automatically Vest in full and any conditions on the Participant's rights under, or any restrictions on transfer or exercisability applicable to, such Alternative Award shall be waived or shall lapse.  

			
	
			
				7.3
			

			
	
			
			For the purpose of Rule 7.2.4 above, “Good Reason” shall mean the occurrence of one or more of the events listed below following a Change in Control: (A) a reduction in the Participant’s rate of annual base salary as in effect immediately prior to such Change in Control; (B) a reduction in the Participant’s annual short-term incentive compensation plan target award (but excluding the conversion of any cash incentive arrangement into an equity incentive arrangement of commensurate value or vice versa) from that which was in effect immediately prior to such Change in Control; or (C) any requirement that the Participant relocate to an office more than 55  kilometers from the facility where he was located immediately prior to the Change in Control.

			
	
			
				7.4
			

			
	
			
			If a Participant believes that a “Good Reason” event has been triggered, he must give his employing company written notice within 30 days of the occurrence of such triggering event and a proposed termination date which shall be not sooner than 60 days nor later than 90 days after the date of such notice.  Such notice shall specify the Participant’s basis for determining that “Good Reason” has been triggered.  The Company shall have the right to cure a purported “Good Reason” within 30 days of receipt of said notice.

			
	
			
				8
			

			
	
			
			Participation in Plan and Employment

			
	
			
				8.1
			

			
	
			
			No individual shall have any claim against a Group Company or any of its affiliates (including, without limitation, The Hanover) arising out of not being admitted to participation in the Plan which (for the avoidance of all, if any, doubt) is entirely at the discretion of the Committee.

			
	
			
				8.2
			

			
	
			
			The Plan shall not form part of any contract of employment between any Group Company or any of its affiliates (including, without limitation, The Hanover) and any employee and the rights and obligations of any individual under the terms of his Employment shall not be affected by his participation in the Plan.

			
	
			
				8.3
			

			
	
			
			Participation in the Plan shall be on the express condition that ceasing to participate in the Plan and/or the loss of Awards (or parts thereof) for any reason in accordance with the terms of the Plan shall not afford any individual any right to compensation or damages under the terms of his Employment.

		 

		

			9

		

 

		

			 

		

			
	
			
				8.4
			

			
	
			
			No Participant shall be entitled to claim compensation or damages from any Group Company or any of its affiliates (including, without limitation, The Hanover) in respect of any diminution or extinction of his rights or benefits (actual or potential) pursuant to any Award granted to him as a result of the exercise or failure to exercise any discretion vested in the Committee under the Plan to the advantage or fullest advantage of the Participant.

			
	
			
				8.5
			

			
	
			
			Each Group Company and its affiliated entities (including, without limitation, The Hanover) shall be entirely free to conduct its affairs as it sees fit without regard to any consequences under, upon or in relation to the Plan or any Award or Participant.

			
	
			
				8.6
			

			
	
			
			Neither the grant of an Award nor any benefit pursuant to an Award shall form part of an individual’s pensionable remuneration for the purposes of any pension plan or similar arrangement which may be operated by any Group Company.

			
	
			
				9
			

			
	
			
			Administration and Amendment

			
	
			
				9.1
			

			
	
			
			The Plan shall be administered under the direction of the Committee, which, subject to Rule 9.2, may at any time by resolution (ratified by The Hanover Committee) and without other formality delete from, amend or add to the Rules in any respect.

			
	
			
				9.2
			

			
	
			
			Subject to Rule 9.3, no deletion, amendment or addition may be made to the Rules if it would adversely affect the rights already acquired by Participants pursuant to Subsisting Awards without the approval of Participants holding more than fifty per cent. (50%) of the Subsisting Awards so affected.    

			
	
			
				9.3
			

			
	
			
			Notwithstanding anything to the contrary contained in these Rules, the Committee may (without any further formality) make deletions, amendments or additions to the Plan which it considers necessary or desirable in order to benefit the administration of the Plan, to take account of applicable legislation in any country or territory (and including any proposed change to such legislation), or other regulations or to obtain or maintain favourable taxation treatment for Participants or any Group Company provided that such amendments or additions do not diverge from the basic principles of the Plan.

			
	
			
				9.4
			

			
	
			
			The Committee may from time to time make and vary such rules and regulations not inconsistent with the Plan and establish such procedures for the administration and implementation of this Plan as it thinks fit and in the event of any dispute or disagreement as to the interpretation of any such rules, regulations or procedures, the decision of the Committee shall be final and binding upon all persons.

			
	
			
				9.5
			

			
	
			
			The Plan, the grant and Vesting of Awards thereunder, and the other obligations of the Company under the Plan, shall be subject to all applicable national or local laws, rules, and regulations and to such approvals by any regulatory or governmental agency as may be required.

		 

		

			10

		

 

		

			 

		

			
	
			
				9.6
			

			
	
			
			The Committee’s decision on any matter relating to the interpretation of the Rules and any other matters concerning the Plan (including the rectification of errors or mistakes of procedure or otherwise) shall be final and binding.

			
	
			
				9.7
			

			
	
			
			Any notice or other communication under or in connection with the Plan may be given:

			
	
			
				9.7.1
			

			
	
			
			by the Company to an Eligible Employee or Participant either personally or sent to him at his place of work by electronic mail or by post to the address last known to the Company (including any address supplied by the relevant Employing Company or any Subsidiary) or sent through the Company's internal postal service; and

			
	
			
				9.7.2
			

			
	
			
			to the Company, either personally or by post to the Company Secretary.

		
			Items sent by post shall be pre-paid and shall be deemed to have been received 72 hours after posting.
		

			
	
			
				9.8
			

			
	
			
			The Company shall bear the costs of setting up and administering the Plan. However, the Company may require any Employing Company to reimburse the Company for any costs borne by the Company directly or indirectly in respect of such Employing Company's Eligible Employees.

			
	
			
				9.9
			

			
	
			
			The Company (or one or more of its affiliated entities, including, without limitation, The Hanover) shall maintain all necessary books of account and records relating to the Plan.

			
	
			
				9.10
			

			
	
			
			If any Award Certificate or any other document issued for the purposes of the Plan shall be worn out, defaced or lost, it may be replaced on such evidence being provided as the Committee may require.

			
	
			
				9.11
			

			
	
			
			By participating in this Plan, each Participant agrees to the holding of information about him by any Group Company (or any of their respective affiliated entities, including, without limitation, The Hanover) and he authorises any Group Company (or any of their respective affiliated entities, including, without limitation, The Hanover) and their agents and advisers to use such information for the purposes of this Plan.  Each Participant further agrees that data concerning his participation may be processed by agents of any Group Company (or any of their respective affiliated entities, including, without limitation, The Hanover) wherever located and where necessary transmitted outside the European Economic Area.

			
	
			
				10
			

			
	
			
			Exclusion of Third Party Rights

		
			The Contracts (Rights of Third Parties) Act 1999 shall not apply to this Plan or to any Award granted under it and no person other than the parties to an Award shall have any rights under it nor shall it be enforceable under that Act by any person other than the parties to it.
		

		
			
		

		 

		

			11

		

 

		

			 

		

		
		

			
	
			
				11
			

			
	
			
			Termination

		
			The Plan shall terminate on the 31 December 2015.  This Rule 11 shall not affect Subsisting Awards.
		

			
	
			
				12
			

			
	
			
			Governing Law

		
			These Rules shall be governed by and construed in accordance with English law.  Any  dispute concerning these Rules not resolved by mutual agreement between the parties to that dispute shall be referred to the courts of England and Wales.
		

			
	
			
				13
			

			
	
			
			Reduction, Amendment or Cancellation of Awards

		
			Awards may be reduced, amended or cancelled as set out below:
		

			
	
			
				13.1
			

			
	
			
			The Committee may, subject to Rules 2.6 and 6.3, at any time at its sole discretion determine, before an Award has Vested, to:

			
	
			
				13.1.1
			

			
	
			
			reduce the amount potentially payable under the Award; and/or 

			
	
			
				13.1.2
			

			
	
			
			defer the date on which the Award Vests; and/or

			
	
			
				13.1.3
			

			
	
			
			amend the Performance Condition applying to the Award; and/or

			
	
			
				13.1.4
			

			
	
			
			impose additional conditions to the Award; or

			
	
			
				13.1.5
			

			
	
			
			cancel the Award.

			
	
			
				13.2
			

			
	
			
			The circumstances in which the Committee may make this determination include (but are not limited to):

			
	
			
				13.2.1
			

			
	
			
			the conduct of the Participant or the team or division in which he is working or has worked, or the business unit of which he is or has been a part, is considered to have had a detrimental impact on the business of any Group Company or to have brought the business of any such company into disrepute; or

			
	
			
				13.2.2
			

			
	
			
			evidence emerges that past performance which was taken into account either when the Award was made or when the relevant bonus pool on the basis of which the Award was made was calculated was materially worse than was understood on the relevant date; or

			
	
			
				13.2.3
			

			
	
			
			the prior financial statements of any Group Company or any business unit or division of any Group Company are materially restated, corrected or amended; or

			
	
			
				13.2.4
			

			
	
			
			evidence emerges that the Participant or the Participant’s team, business unit or division has engaged in improper or inadequate risk analysis or has failed to raise concerns in relation to improper or inadequate risk analysis.

		 

		

			12EX-103

		

			 

		

		
			Exhibit 10.3
		

		
			Confidential
		

		
			﻿
		

		
			﻿
		

		
			THIS AGREEMENT is dated 13 March 2017 and is made
		

		
			BETWEEN:
		

		
			(1)CHAUCER UNDERWRITING SERVICES LIMITED of Plantation Place, 30 Fenchurch Street, London EC3M 3AD (the Company); and
		

		
			﻿
		

		
			(2)Johan G. Slabbert of [XX] (the Employee).
		

		
			WHEREAS:
		

		
			(A)The Employee asserts various claims against the Company arising out of the termination of the Employment including but not limited to wrongful dismissal and unfair dismissal.
		

		
			(B)The Employee and the Company have entered into this Agreement to record and implement the terms on which they have agreed to compromise and settle such claims and any other claims which the Employee may have in connection with the Employment, or the Employment Contract or their termination, his directorships or their termination, or otherwise against the Company and/or any Group Company or its or their officers, trustees, directors, shareholders, employees or agents and whether or not the claims are, or could be, in the contemplation of the parties at the time of signing the Agreement including, in particular the statutory complaints which the Employee raises in the Agreement.
		

		
			(C)The Company is entering into the Agreement for itself and as agent for all its Group Companies and is duly authorised in that behalf and without any admission of liability.
		

		
			(D)The parties intend this Agreement to be an effective waiver of any such claims and to satisfy the conditions relating to settlement agreements in the relevant legislation.
		

		
			IT IS AGREED as follows:
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			1

		

 

		

			 

		

		1.Definitions and Interpretation
		

		
			Definitions
		

		
			1.1In this Agreement references to specific clauses are references to clauses in this Agreement unless otherwise stated and:
		

		
			Certificate has the meaning given in clause 3.5.
		

		
			Employment means the Employee’s employment with the Company the terms of which are set out in the Employment Contract.
		

		
			Employment Contract has the meaning given to that term in clause 2.1.
		

		
			Group Company means any holding company or parent undertaking for the time being of the Company or any subsidiary or subsidiary undertaking for the time being of the Company or of any such holding company or parent undertaking (for which purpose the expressions “holding company” and “subsidiary” shall have the meanings ascribed thereto by section 1159 Companies Act 2006 and the expressions “parent undertaking” and “subsidiary undertaking” shall have the meanings ascribed thereto by Section 1162 Companies Act 2006). 
		

		
			Lloyd’s means the Corporation of Lloyd’s of London.
		

		
			PAYE Regulations means the Income Tax PAYE Regulations 2003 (as amended, extended or replaced from time to time).
		

		
			Pension Scheme means the Chaucer Pension Scheme.
		

		
			Severance Payment has the meaning given to that term in clause 3.1.
		

		
			Termination Date has the meaning given to that term in clause 2.1.
		

		
			1.2The headings in this Agreement are inserted for convenience only and shall not affect its construction.
		

		
			1.3A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension, or re-enactment and includes any subordinate legislation for the time being in force made under it.
		

		
			1.4A reference to one gender includes a reference to other genders.
		

		 

		

			EPID-#4168501-v1

		

		

			2

		

 

		

			 

		

		
			1.5Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular.
		

		
			1.6The schedules to this Agreement form part of (and are incorporated into) this Agreement.
		

		
			1.7References herein to officers, directors, trustees, shareholders, employees or agents of the Company or any Group Company shall include past, present and future officers, directors, trustees, shareholders, employees or agents of the Company or any Group Company.
		

		
			2.Termination
		

		
			2.1The Employee’s Employment with the Company as Chief Executive Officer under the terms of the Employment Contract a true copy of which is appended to this Agreement as Schedule 2 terminated on 20 February 2017 (the Termination Date) by reason of redundancy.
		

		
			2.2The Employee shall be paid any outstanding salary and contractual benefits which have accrued up to and including the Termination Date, less all deductions the Company is required to make.  The parties agree that the Employer will pay a sum in respect of 9 days accrued but untaken holiday less all deductions the Company is required to make.  The Employee agrees and acknowledges that save as provided for in this Agreement he has no outstanding entitlement to any benefits (including any bonus or other short or long-term compensation) including between the Termination Date and the date of the Agreement.
		

		
			2.3The Company will pay the Employee all outstanding expenses properly and legitimately incurred on behalf of the Company in the proper performance of the Employee’s duties to the Termination Date on production of appropriate invoices and receipts in accordance with normal Company policy provided that such claims are submitted within 7 days of the Termination Date.
		

		
			3.Severance Payment
		

		
			3.1Subject to and conditional on the Employee entering into and complying with the terms and obligations under this Agreement (and the warranties given by the Employee in this Agreement being true and accurate), and receipt by the Company of the Certificate, the Company shall pay to the Employee (without admission of liability) the sum of £892,445, plus an amount to be determined at a later date as described in clause 3.2(d)  (collectively, the Severance Payment) less all deductions the Company is required to make in accordance with clause 3.3 and 3.4.
		

		 

		

			EPID-#4168501-v1

		

		

			3

		

 

		

			 

		

		
			3.2The Severance Payment is made up as follows:
		

		
			(a)£320,500 (less such deductions the Company is required to make) payment in lieu of notice pursuant to the Employment Contract;
		

		
			(b)£381,920 (less such deductions the Company is required to make) in respect of the 2016 Chaucer Annual Bonus Scheme.
		

		
			(c)£186,825 (less such deductions the Company is required to make) in respect of the Company's 2014 Long Term Incentive Plan.
		

		
			(d)An amount equal to 63.1% (less such deductions the Company is required to make) of the amount the Employee otherwise would have received under his awards granted pursuant to the 2015 Long-Term Incentive Plan had he remained employed by the Company throughout the full vesting period and had the full performance period been completed, payable in cash in accordance with the level of performance actually achieved and with the share value being determined based upon its then current value and converted from U.S. dollars to U.K Pounds Sterling in each case at the values and exchange rates determined by the Company in good faith and consistent with past practices.
		

		
			(e)£3,200 (less deductions the Company is required to make) in respect of compensation for loss of office (including the Employee’s statutory redundancy payment of £2,156). 
		

		
			3.3The Severance Payment shall be subject to any deductions the Company is required by law to make. The parties believe, although the Company gives no warranty, that the payment described in subclause 3.2(e) above will be paid without any deductions. The remainder of the Severance Payment will be subject to deduction for income tax in accordance with PAYE Regulations and primary class 1 National Insurance Contributions (where applicable).
		

		
			3.4Any further liability to tax on the Severance Payment and on any other benefits provided to the Employee pursuant to this Agreement shall be the Employee’s alone.
		

		
			3.5The Severance Payment referred to in clauses 3.2 (a) and (e) above shall be paid on the first available payroll date of the Company following the later of the Termination Date and receipt by the Company of this Agreement signed by the Employee and the Certificate signed by the Adviser (see clause 15.1) in the form set out in Schedule 5 provided that 
		

		 

		

			EPID-#4168501-v1

		

		

			4

		

 

		

			 

		

		such payroll date falls at least 5 working days after such receipt.  Provided the Employee has complied with all of his representations, warranties and covenants, the payment described in clause 3.2(b) shall be paid in two equal instalments in April 2017 and January 2018; the payment provided in clause 3.2(c) shall be paid in April 2017; and the payments provided in clause 3.2(d) shall be paid in April 2018, in each case provided and conditional upon the Employee having complied in all respects with the terms of this Agreement and in particular clauses 8 and 9 of this Agreement. 
		

		
			4.Insurance 
		

		
			4.1Subject to and conditional on the Employee entering into and complying with the terms and obligations under this Agreement (and the warranties given by the Employee in this Agreement being true and accurate) and receipt by the Company of the Certificate as further compensation for loss of employment and without any admission of liability whatsoever, the Company shall from the Termination Date until 1 June 2017 continue to provide for the Employee private medical insurance on the terms and conditions subsisting on the Termination Date.
		

		
			4.2If any scheme provider (including but not limited to any insurance company) refuses for any reason to provide any benefits to the Employee, the Company shall not be liable to provide any such benefits itself or any compensation in lieu thereof.  
		

		
			4.3Such provision of these benefits will be subject to the rules of the relevant schemes as varied from time to time and provided that the Employee is not entitled to receive equivalent benefits from another source.  The Employee undertakes to inform the Company as soon as the Employee becomes entitled to receive equivalent benefits from another source.
		

		
			5.Pension
		

		
			5.1Subject to and conditional on the Employee entering into and complying with the terms and obligations under this Agreement (and the warranties given by the Employee in this Agreement being true and accurate) the Company will, without any admission of liability whatsoever, subject in all other respects to the provisions of the governing documentation of the Pension Scheme as they apply from time to time, pay as soon as reasonably practicable £43,400 into the Pension Scheme to provide additional benefits to or in respect of the Employee. 
		

		 

		

			EPID-#4168501-v1

		

		

			5

		

 

		

			 

		

		
			5.2Any charge (including, without limitation, tax charges, unauthorised payment charges and scheme sanction charges) which becomes payable as a result of the payment of such additional benefits shall be paid by the Employee or deducted from the benefits payable prior to any payment to the Employee. The payment of benefits shall be subject in all other respects to the rules of the Pension Scheme.
		

		
			6.Tax indemnity
		

		
			6.1The Company makes no warranty as to the taxable status of the Severance Payment and benefits provided pursuant to this Agreement, including, without limitation, the tax treatment of any payments made pursuant to clause 3.2(e), and accordingly the Employee undertakes that if the Company or any of its Group Companies is called upon to account to HM Revenue & Customs or similar authority in any other jurisdiction for any income tax, employees’ National Insurance contributions, social security or similar liabilities, interest and/or penalties thereon arising in respect of the payments made and benefits provided under this Agreement, other than the income tax deducted under clause 3 (such income tax, National Insurance contributions, interest and/or penalties referred to in this Agreement as the “excess tax”), and if the Company or any other company pays the excess tax to the HM Revenue & Customs or similar authority in any jurisdiction, the Employee will, at the written request of such company immediately pay to such company an amount equal to the excess tax (on an after-tax basis) provided always that this indemnity shall not apply to any penalties or interest which arise as a result of any unreasonable delay of the Company (and provided the Employee has not contributed to, or caused the default in any way).
		

		
			7.Resignation of offices
		

		
			Resignation of Offices
		

		
			7.1 The Employee shall immediately resign as a director of the Company and any of its Group Companies of which he is a director and from any other offices which he holds in the Company and any of its Group Companies by delivering to the Company a letter of resignation in accordance with the draft annexed in Schedule 3, such resignations to take effect from the Termination Date.
		

		
			7.2The Employee shall immediately do all such acts and things as the Company may require to effect the resignations pursuant to clause 7.1 above. 
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			6

		

 

		

			 

		

		8. Secrecy
		

		
			8.1The Employee undertakes that he will not, whether directly or indirectly, make, publish or otherwise communicate any disparaging or derogatory statements, whether in writing or otherwise, concerning the Company or any of its Group Companies or any of its or their officers, trustees, directors, shareholders, employees or agents.
		

		
			8.2Whilst the Employee acknowledges that the terms of this Agreement must be disclosed to, and filed with, the U.S. Securities and Exchange Commission (the SEC) and will become a matter of public record (and may be described in a public proxy statement), otherwise both the Employee and the Company agree to keep the terms on which Employee’s Employment is terminated and all discussions and other correspondence on this subject strictly confidential and agree not to disclose, communicate or otherwise make public the same to anyone (save to professional advisers, immediate family (in Employee’s case), relevant tax authorities and otherwise as may be required to be disclosed by law or regulatory authorities, or as ordered by a court of competent jurisdiction) and shall require that anyone to whom such disclosure is made keeps the matter confidential, save and except that the Company may publish a press release and a notice to staff and others regarding the leadership transition at the Company.
		

		
			8.3The Employee agrees not to make or cause to be made (directly or indirectly) any statement to the media concerning the Employment or its termination or the Employee’s resignation from the Company or Group Company directorships or other offices without the prior written consent of the Company (or as may be required by law).  The Employee also agrees to update any entry on any social networking site to reflect the fact the Employment and the directorships and other offices have terminated.
		

		
			8.4The Employee agrees not to conduct himself in any way which is inconsistent with having surrendered his authority, whether in matters of the internal administration of the Company or any other Group Company or externally.  The Employee will not represent himself as being employed by, or connected in any way with the Company or any other Group Company following the Termination Date.
		

		
			8.5Nothing in this clause shall prevent the Employee from making a protected disclosure under section 43A of the Employment Rights Act 1996 or to the SEC or other U.S. governmental or regulatory authority, and nothing in this clause shall prevent the Company from making such disclosure as it is required by law to make.
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			7

		

 

		

			 

		

		9.Confidential Information and Covenants
		

		
			Confidential Information
		

		
			9.1In accordance with the Employment Contract, the Employee undertakes not to divulge to any person, or commercially make use of, for his own benefit or purposes or for the benefit or purpose of any other person, firm, corporation, company, association or business entity, any trade secrets or Confidential Information (including but not limited to terms of contracts or arrangements (including compensation arrangements with officers and employees, or with brokers, coverholders, reinsurers or others), existing and potential projects, financial information regarding customers, clients or suppliers, disputes, business development and/or marketing programmes and plans) belonging to or which relate to the affairs of the Company or any Group Company or any of its customers, brokers, agents, coverholders, reinsurers, clients or other suppliers.
		

		
			Covenants
		

		
			9.2The Employee also confirms that the restrictive covenants contained in clauses 17.2(a) (as modified per clause 9.3 below), 17.2(e), (f), (g) and (h) of the Employment Contract expressed to have ongoing effect past the Termination Date shall remain in full force and effect notwithstanding the termination of the Employment and the Company confirms that it hereby waives the covenants contained in clauses 17.2(b) to (d) inclusive of the Employment Contract provided the Employee complies with all other terms of this Agreement. 
		

		
			9.3Clause 17.2 (a) of the Employment Contract shall be modified by adding at the end thereof the following clause: “; provided, however, that this provision shall only be deemed to apply to you if such entity (i) is a Lloyd’s managing agency (or a service company thereof); or (ii) is a holding company of which it, any direct or indirect parent company thereof or any direct or indirect subsidiary of such holding company or parent company, derives fifty percent (50%) or more of its revenues from one or more Lloyd’s managing agencies (or service companies thereof), (unless, in the case of subclause (ii), Employee’s responsibilities are entirely and demonstrably unrelated to the business of a Lloyd’s managing agency or service company).”  For the avoidance of doubt, nothing in clause 17.2 of the Employment Contract shall prohibit Employee from employment by Lloyd’s, the Lloyd’s Market Association or the London Market Group (provided all other covenants to which Employee is bound are observed).
		

		 

		

			EPID-#4168501-v1

		

		

			8

		

 

		

			 

		

		
			9.4Nothing in this clause 9 shall prevent the Employee from making a protected disclosure in accordance with the Public Interest Disclosure Act 1998 provided that the disclosure is made in accordance with the provisions of that Act.
		

		
			10.Company property
		

		
			10.1The Employee represents and confirms that he has returned on or before the Termination Date to the Company without modification all property belonging to the Company or any Group Company in satisfactory condition which is in his possession, custody or under his control, including but not limited to keys, security pass, credit or charge cards, equipment, blackberry or other device, laptop and printer, records, correspondence, documents, files and other information of any description (whether originals, copies or extracts) belonging or licensed to the Company or any of its Group Companies
		

		
			10.2Notwithstanding the foregoing, the Employee warrants that he has not retained any copies and that he has deleted irretrievably from any non-Company devices and shall not retain, will not retain access to and shall not hold any documents, software, disks including all back up disks, and copies thereof or other media (including such systems (including “cloud” storage systems) and data storage services provided by third parties) which contain confidential and/or proprietary information in relation to the business of the Company and/or any Group Company and/or any of their customers, suppliers or other business/trading partners and which belong to the Company and/or any Group Company including, but not limited to, all product information, technical information, legal information, financial information, customer and supplier data base information, company marketing, promotional and sales lead information and information containing details of relating to the requirements of customers, suppliers and/or business/trading partners.
		

		
			10.3If, after the date of their Agreement, the Employee discovers that, notwithstanding the terms of this clause 10, he does retain any property, he will return it forthwith.  
		

		
			10.4In addition the Employee will provide the Company with all necessary information and access as will allow such person as the Company may determine to access any computer equipment owned by the Employee, Company or any Group Company and used by the Employee to enable any Group Company to verify, and if necessary take steps to ensure compliance with this clause 10.
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			9

		

 

		

			 

		

		11.Reference
		

		
			11.1The Company agrees to provide to the Employee and to any prospective employer requesting the same a written reference in the form of Schedule 4 to this Agreement subject always to the Company’s compliance with its regulatory or other obligations to third parties relating to the giving of references and the Company will not directly or indirectly make any statements or comments (whether written or oral) inconsistent with the said reference provided always that, (i) any request for a reference is directed to Karen Reid (or if relevant her successor from time to time); and (ii) should the Company or any Group Company obtain information after the date of this Agreement, the facts of which would have amounted to a fundamental breach of the terms of the Employment Contract by the Employee and as a result of which the Company would not have agreed to provide a reference in the form of Schedule 4, the Company will inform the Employee, and may decline to give a reference in the form in Schedule 4 or give an alternative reference. (For the avoidance of doubt, the Company reserves the right to make such disclosures as are required by law or regulatory requirement, notwithstanding that such disclosures may deviate from the terms of the reference set out in Schedule 4).
		

		
			12.Breach of Agreement and compensation payable to the Employee
		

		
			12.1The Employee acknowledges that the Company has agreed to the terms of this Agreement in reliance on the representations, warranties and covenants in this Agreement (including, without limitation those set out in clause 15 below) and that, in the event of any breach of the representation, warranties or covenants (including, in particular, those set forth in clauses 8 and 9)(and without prejudice to any other remedy which the Company may have), (i) that part of the payment which is equal to the losses incurred by the Company as a result of such breach (or, if the losses to the Company exceed the payments made, the entire amount) must be repaid to the Company immediately and will be recoverable by the Company as a debt, and (ii) any amounts otherwise payable under clauses 3.2 (b), (c) or (d) shall be forfeited. 
		

		
			12.2The Employee further agrees, and without prejudice to any other rights or remedies of the Company or any Group Company arising from such action, that if in breach of this Agreement, the Employee institutes or continues any proceedings against the Company or any Group Company or its or their officers, trustees, directors, shareholders, employees or agents relating to the Employment, the Employment Contract or its or their termination or his directorships or their termination (including making complaints to professional or trade 
		

		 

		

			EPID-#4168501-v1

		

		

			10

		

 

		

			 

		

		or regulatory bodies but excluding (i) any such claim falling with the definition of a “qualifying disclosure” within section 43B Employment Rights Act 1996, or (ii) claims to the SEC or other U.S. governmental or regulatory authority), and if any award is made to the Employee in respect of such proceedings (the Award) that:
		

		
			(a)If the net value of the Award (after any deductions required by law are made) (Net Award) is less than the total value of the severance payments and benefits set out in clause 3 (except for deductions which are refundable or otherwise result in payments being made by any tax authority to the Employee) (Net Severance Payment), then at the Company’s sole election the Employee shall repay to the Company a sum equal to the Net Award and such sum shall be recoverable as a debt or the amount will be set off against and reduce the Net Award to zero; and
		

		
			(b)If the Net Award is more than the Net Severance Payment, at the Company’s sole election, the entire Net Severance Payment shall be immediately repayable by the Employee to the Company and shall be recoverable as a debt.
		

		
			12.3In addition, the Employee recognises that in the circumstances described in clause 12.2 the Company will no longer be bound by its obligations under clauses 8  (Secrecy) and 11 (11.Reference) or to make further payments under clause 3.2.
		

		
			13.Legal expenses
		

		
			13.1The Company shall, on the production of a valid VAT invoice addressed to the Employee but marked payable by the Company, pay to the Employee’s solicitors up to a maximum sum of £1,500 plus VAT in respect of the Employee’s legal expenses to the extent these are incurred in connection with the termination of the Employment and/or relate exclusively to the negotiation and preparation of this Agreement.  These costs will be paid by the Company following receipt of a properly addressed invoice. The Employee warrants that such legal costs were incurred solely in relation to the termination of the Employment and the preparation of the Agreement.
		

		
			14.Settlement of claims
		

		
			14.1The Employee acknowledges that he has carefully considered the facts and circumstances relating to the Employment, the Employment Contract, their termination, his directorships and their termination and agrees that he will not institute any proceedings or complaints before an employment tribunal or court arising out of or in connection with the Employment 
		

		 

		

			EPID-#4168501-v1

		

		

			11

		

 

		

			 

		

		or the Employment Contract, their termination, his directorships or their termination, in respect of any of the claims set out in Schedule 1 to this Agreement and will not assist or encourage any third party to bring any similar claims or proceedings.
		

		
			14.2The Employee confirms that he is not aware of having any claim for personal injury against the Company or any Group Company at the date of this Agreement.
		

		
			14.3Without prejudice to the Employee’s rights to enforce any part of this Agreement or to bring a claim in respect of any breach of this Agreement, the Employee agrees that in consideration of the Severance Payment, the terms of this Agreement are in full and final settlement of all claims, costs, expenses and causes of action of any kind and which are hereby waived, including but not limited to: 
		

		
			(a)the claims set out in Schedule 1; and
		

		
			(b)any other claims whether at common law, under statute, equity under contract or otherwise and in any jurisdiction in the world,
		

		
			which he may or may in the future have against the Company or any Group Company or its or their officers, trustees, directors, shareholders, employees or agents arising out of or connected with his Employment or its termination or the Employment Contract or its termination or his directorships or their termination excepting any claims for personal injury of which the Employee was not aware and could not reasonably have been aware at the date of this Agreement or accrued pension rights whether such claims are or could be known to the parties and whether or not they are or could be in contemplation of the parties at the date of this Agreement in any jurisdiction. The Employee hereby agrees that, except for the sums and benefits referred to in this Agreement, no other sums or benefits are due to him from the Company or any Group Company.
		

		
			14.4The Employee agrees not to make any subject access request pursuant to the Data Protection Act 1998 and/or submit any grievances to the Company in relation to the Employment, the Employment Contract or their termination or the directorships or their termination and not to submit an appeal with regard to the termination of the Employment.  The Employee agrees that any data subject access request, grievances or appeals he may have in relation to the Employment, the Employment Contract or their termination or the directorships or their termination and all claims that may arise from or in relation to such grievances and/or appeals shall be settled conclusively by the terms of this Agreement.
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			12

		

 

		

			 

		

		15.Warranty
		

		
			Employee warranties
		

		
			15.1The Employee represents, warrants and undertakes that:
		

		
			(a)before entering into this Agreement he has received advice from a “relevant independent adviser” (the Adviser) (for the purposes of the legislation specified in clause 16 below) as to the terms and effect of this Agreement (and in particular its effect on the Employee’s ability to pursue his rights before an employment tribunal) and that he will procure that the Adviser forthwith provides a certificate in the form of Schedule 5 to this Agreement and that in such Schedule the name and other relevant details of the Adviser are correctly set out.  
		

		
			(b)the Adviser has confirmed to the Employee that they are a solicitor holding a current practising certificate and that there is in place a policy of insurance or indemnity provided for members of a profession or professional body covering the risk of a claim by the Employee in respect of any loss arising in consequence of their advice.
		

		
			(c)before receiving the advice that he has disclosed to the Adviser all facts and issues which may give rise to a claim against the Company, or any Group Company or its or their officers, trustees, directors, shareholders, employees or agents (whether past or present);
		

		
			(d)the claims and prospective proceedings listed at clause 14 and Schedule 1 are all of the claims and prospective proceedings that the Employee has against the Company, any Group Company or their, officers, trustees, directors, shareholders, employees or agents arising out of or in connection with the Employment, the Employment Contract or his directorships or other offices (including the termination thereof) and that the Employee is not aware of any other claim, whether statutory or not, that he may have against the Company or any Group Company or any of its or their officers, trustees, directors, shareholders, employees or agents and is not aware of any facts or circumstances which may give rise to any such claim;
		

		
			(e)as of the date of this Agreement the Employee has not commenced employment and has not received either orally or in writing or accepted or agreed to accept any offer of employment from a third party or has an immediate expectation of receiving such an offer.  The expression “employment” for the purpose of this clause includes a contract of service, a contract for services or a partnership.  In the event that the 
		

		 

		

			EPID-#4168501-v1

		

		

			13

		

 

		

			 

		

		Employee is offered employment, consultancy or other business activities the Employee will show such person making the offer a copy of the restrictions in the Employment Contract in Schedule 2;
		

		
			(f)as at the date of this Agreement, there are no circumstances of which the Employee is aware or of which the Employee ought reasonably to be aware which would amount to a repudiatory breach by the Employee of any express or implied term of the Employment which would entitle (or would have entitled) the Company to terminate the Employment without notice or payment in lieu of notice and any payment to the Employee pursuant to this Agreement is conditional upon this being so.  Furthermore, in the event that the Company after the date of this Agreement becomes aware that the Company has or had grounds to terminate the Employment without notice in accordance with the Employment Contract or summarily in response to a breach of contract by the Employee, then in addition to any other remedies which the Company may have, the Severance Payment will immediately become repayable by the Employee as a debt to the Company.  To the extent that at any time after the Employee has made a repayment in accordance with this clause he receives a refund for any tax and/or social security contributions paid in respect of the Severance Payment the Employee agrees to immediately pay an amount equal to such refunded tax and/or social security contributions to the Company;
		

		
			(g)save in respect of the payments and benefits payable under this Agreement the Employee is not owed any sum by the Company or any Group Company;
		

		
			(h)that he will provide such assistance as shall be required by the Company and any Group Company in the performance of such tasks necessary to ensure an orderly handover of duties to such person or persons as the Company may nominate;
		

		
			(i)that he will on the request of the Company or any Group Company, assist it or them in any threatened or actual litigation concerning it or them where he has in his possession or knowledge any facts or other matters which the Company or any Group Company reasonably considers is relevant to such legal proceedings (including but not limited to giving statements/affidavits, providing documents, meeting with the legal and other professional advisers and attending any legal hearing and giving evidence in person on behalf of the Company or any Group Company).  Such assistance will also be given in any internal investigation or any regulatory investigation, action or proceedings. The Company or the relevant Group Company shall reimburse the Employee for reasonable expenses properly incurred 
		

		 

		

			EPID-#4168501-v1

		

		

			14

		

 

		

			 

		

		by him in giving such assistance as are agreed by the Company provided that all such sums are approved in advance by the Company in writing and subject to the Employee providing such receipts or other evidence as the Company may require in respect of those sums; and
		

		
			(j)that he has not issued proceedings before the employment tribunals, High Court or County Court in respect of any claim in connection with the Employment, the Employment Contract or its termination or the directorships or their termination and the Employee undertakes that neither he nor anyone acting on his behalf will present such an application or claim.
		

		
			15.2The waiver in clause 15.1(d) shall have effect irrespective of whether or not, at the date of this Agreement, the Employee is or could be aware of such claims or have claims in his express contemplation (including such claims of which the Employee becomes aware after the date of this Agreement in whole or in part as a result of new legislation or the development of common law or equity).
		

		
			15.3The Employee acknowledges that the Company acted in reliance on these warranties in this clause 15 when entering into this Agreement.
		

		
			16.Compliance with Legislation
		

		
			16.1The conditions regulating settlement agreements and compromise agreements contained in:
		

		
			(a)section 203(3) Employment Rights Act 1996;
		

		
			(b)section 147(3) Equality Act 2010;
		

		
			(c)section 77(4A) Sex Discrimination Act 1975 (in relation to claims under that Act and the Equal Pay Act 1970); 
		

		
			(d)section 72(4A) Race Relations Act 1976;
		

		
			(e)section 288(2B) Trade Union and Labour Relations (Consolidation) Act 1992; 
		

		
			(f)Schedule 3A Part 1 paragraph 2 Disability Discrimination Act 1995; 
		

		
			(g)regulation 35(3) of the Working Time Regulations 1998;
		

		 

		

			EPID-#4168501-v1

		

		

			15

		

 

		

			 

		

		
			(h)section 49(4) of the National Minimum Wage Act 1998;
		

		
			(i)regulation 41(4) Transnational Information and Consultation of Employee Regulations 1999;
		

		
			(j)regulation 9 of the Part Time Workers (Prevention of Less Favourable Treatment) Regulations 2000;
		

		
			(k)regulation 10 of the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002;
		

		
			(l)Schedule 4, Paragraph 2(2) Employment Equality (Sexual Orientation) Regulations 2003;
		

		
			(m)Schedule 4, Paragraph 2(2) Employment Equality (Religion or Belief) Regulations 2003;
		

		
			(n)Regulation 40(4) Information and Consultation of Employees Regulations 2004;
		

		
			(o)paragraph 12 of the schedule to the Occupational and Personal Pension Schemes (Consultation  by Employers and Miscellaneous Amendment) Regulations 2006; and
		

		
			(p)Schedule 5 paragraph 2(2) of the Employment Equality (Age) Regulations 2006,
		

		
			are intended to be and have been satisfied.
		

		
			17.Miscellaneous
		

		
			17.1This Agreement may be executed in any number of counterparts, each of which when executed, shall be an original, and all counterparts together shall constitute one and the same instrument.  Delivery of an executed signature page of a counterpart by facsimile transmission or by electronic mail on Adobe TM Portable Document Format (PDF) shall take effect as delivery of an executed counterpart of the Agreement.
		

		
			17.2The parties confirm that they consider the provisions of this Agreement to be valid, reasonable and enforceable. However, without prejudice to the above, the parties acknowledge and agree that various provisions and sub-provisions in this Agreement are severable and that if any provision or sub-provision or identifiable part thereof is held to be invalid or unenforceable by any court or tribunal of competent jurisdiction, then such 
		

		 

		

			EPID-#4168501-v1

		

		

			16

		

 

		

			 

		

		invalidity or unenforceability shall not affect the validity or enforceability of the remaining provisions or sub provisions of this Agreement or parts thereof.
		

		
			17.3The failure to exercise or delay in exercising a right or remedy provided by the Agreement or by law does not constitute a waiver of the right or remedy or a waiver of other rights or remedies.
		

		
			17.4A waiver of a breach of any of the terms of this Agreement or of a default under this Agreement does not constitute a waiver of any other breach or default and shall not affect the other terms of this Agreement.
		

		
			17.5A waiver of a breach of any of the terms of this Agreement or of a default under this agreement will not prevent a party from subsequently requiring compliance with the waived obligation.
		

		
			17.6The rights and remedies provided by this Agreement are cumulative and (subject to as otherwise provided in this Agreement) are not exclusive of any rights or remedies provided by law.  
		

		
			17.7This Agreement and any non-contractual obligations connected with it shall be governed by and interpreted in accordance with English Law.  The parties hereby submit to the jurisdiction of the English courts.
		

		
			17.8Subject to any provision which specifically refers to a Group Company or any officer, trustee, director, shareholder, employee or agent of the Company or any Group Company and which is intended to confer benefits on any such Group Company, officer, trustee, director, shareholder, employee or agent no term of this Agreement is enforceable by a person who is not party to it.   The terms of this Agreement may be varied, amended or modified or this Agreement may be suspended, cancelled or terminated by agreement in writing by the parties or this Agreement may be rescinded (in each case) without the consent of any third party.
		

		
			18.Whole agreement
		

		
			18.1This Agreement (together with the provisions of the Employment Contract referred to in clause 9 of this Agreement) sets out the entire agreement between the parties and supersedes all prior discussions between them or their advisers and all statements, representations, terms and conditions, warranties, guarantees, proposals, communications and understandings whenever given and whether orally or in writing.  
		

		 

		

			EPID-#4168501-v1

		

		

			17

		

 

		

			 

		

		
			18.2If signed by all parties to the Agreement it shall then, notwithstanding being marked “without prejudice” or “without prejudice subject to contract” and subject to any written statement to the contrary, be treated as an open and binding agreement.  
		

		
			IN WITNESS whereof this Agreement has been executed the day and year first above written.
		

		
			SIGNED by /s/ David Bendle
		

		
			for and on behalf of the Company
		

		
			dated
		

		
			Witnessed by David Bendle........................... (name)
		

		
			/S/ David Bendle..........................................(signature)
		

		
			..................................................................(address)
		

		
			SIGNED by /s/ Johan G. Slabbert
		

		
			the Employee
		

		
			dated 3/10/17
		

		
			Witnessed by Martelle Slabbert.....................(name)
		

		
			/s/ Martelle Slabbert...................................(signature)
		

		
			...............................................................(address)
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			18

		

 

		

			 

		

		Schedule 1
Claims
		

		
			1any claim for wrongful dismissal or any other claim for breach of contract;
		

		
			2any claim for unfair dismissal under Part X of the Employment Rights Act 1996; 
		

		
			3any claim for a redundancy payment pursuant to section 163 of the Employment Rights Act 1996 or otherwise; 
		

		
			4any claim arising out of a contravention or an alleged contravention of Part II of the Employment Rights Act 1996 (protection of wages including any claim for unlawful deduction from wages pursuant to section 13 Employment Rights Act 1996);
		

		
			5any claim in relation to Guarantee Payments pursuant to section 34 Employment Rights Act 1996); 
		

		
			6any claim in relation to the right to employment particulars and an itemised pay statement pursuant to s11 Employment Rights Act 1996;
		

		
			7any claim in relation to the right for written statement of reasons for dismissal pursuant to section 93 Employment Rights Act 1996;
		

		
			8any claim in relation to Sunday working for shop and betting workers pursuant to Part IV Employment Rights Act 1996;
		

		
			9any claim in relation to protection from suffering detriment in employment pursuant to Part V the Employment Rights Act 1996;
		

		
			10any claim in relation to exercising the right to time off work pursuant to Part VI the Employment Rights Act 1996;
		

		
			11any claim in relation to suspension from work pursuant to Part VII the Employment Rights Act 1996;
		

		
			12any claim in relation to the right to take parental leave pursuant to Part VIII the Employment Rights Act 1996;
		

		
			13any claim in relation to flexible working pursuant to Part VIIIA Employment Rights Act 1996;
		

		 

		

			EPID-#4168501-v1

		

		

			19

		

 

		

			 

		

		
			14any claim for pregnancy or maternity discrimination, direct or indirect discrimination, harassment or victimisation related to sex, marital status, gender re-assignment, civil partnership status or pregnancy or maternity under section 120 Equality Act 2010 and/or section 63 Sex Discrimination Act 1975;
		

		
			15any claim pursuant to sections 120 and 127 Equality Act 2010 and section 2 the Equal Pay Act 1970 (equality of terms);
		

		
			16any claim for direct or indirect discrimination, harassment or victimisation related to colour, race, nationality or ethnic or national origin under section 120 Equality Act 2010 and/or section 54 Race Relations Act 1976; 
		

		
			17any claim for direct or indirect discrimination, harassment or victimisation related to disability or discrimination arising from a disability or failure to make reasonable adjustments under section 120 Equality Act 2010 and and/or direct discrimination, disability related discrimination, harassment or victimisation related to disability or failure to make reasonable adjustments under section 17A or 25(8) Disability Discrimination Act 1995; 
		

		
			18any claim for direct or indirect discrimination, harassment or victimisation related to sexual orientation under section 120 Equality Act 2010 and/or regulation 28 the Employment Equality (Sexual Orientation) Regulations 2003;
		

		
			19any claim for direct or indirect discrimination, harassment or victimisation related to religion or belief under section 120 Equality Act 2010 and/or regulation 28 the Employment Equality (Religion or Belief) Regulations 2003;
		

		
			20any claim for direct or indirect discrimination, harassment or victimisation related to age under section 120 Equality Act 2010 and/or regulation 36 the Employment Equality (Age) Regulations 2006;
		

		
			21any claim pursuant to Regulation 8 Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 (discrimination on the ground of part time status);
		

		
			22any claim pursuant to regulation 7 the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (discrimination on the grounds of fixed term status);
		

		 

		

			EPID-#4168501-v1

		

		

			20

		

 

		

			 

		

		
			23any claim pursuant to regulation 15 of the Flexible Working (Procedural Requirements) Regulations 2002 and the Flexible Working (Eligibility, Complaints and Remedies) Regulations 2002 pursuant to section 80 Employment Rights Act 1996;
		

		
			24any claim in relation to the right to request time off for study or training under section 63I the Employment Rights Act 1996;
		

		
			25any claim for detriment under the Pensions Act 2008 relating to automatic pension scheme membership for jobholders;
		

		
			26any claim relating to breach of an equality clause or rule under the Equality Act 2010;
		

		
			27any claim relating to breach of a maternity equality clause or rule under the Equality Act 2010;
		

		
			28any claim for refusal of employment or employment agency services or detriment for a reason related to a prohibited list under the Employment Relations Act 1999 (Blacklists) Regulations 2010;
		

		
			29any claim in relation to the Agency Workers Regulations 2010;
		

		
			30any claim pursuant to regulation 30 Working Time Regulations 1998 (working time or holiday pay);
		

		
			31any claim under the National Minimum Wage Act 1998 (as specified in section 18 (1)(dd) Employment Tribunals Act 1996 including section 19D of the National Minimum Wage Act 1998;
		

		
			32any claim pursuant to section 10 Employment Relations Act 1999 (right to be accompanied to a disciplinary or grievance hearing);
		

		
			33any claim pursuant to regulation 27 and regulation 32 the Transnational Information and Consultation of Employees Regulations 1999;
		

		
			34any claim arising out of a contravention or alleged contravention of the Trade Union and Labour Relations (Consolidation) Act 1992 as specified in section 18(1)(b) Employment Tribunals Act 1996 (excluding a claim for non-compliance of section 188);
		

		
			35any claim pursuant to regulation 29 or 33 the Information and Consultation of Employees Regulations 2004
		

		 

		

			EPID-#4168501-v1

		

		

			21

		

 

		

			 

		

		
			36any claim in relation to failure to elect appropriate representatives or inform or consult or any entitlement to compensation under the Transfer of Undertaking (Protection of Employment) Regulations 2006;
		

		
			37any claim under S47B Employment Rights Act 1996; and/or
		

		
			38any claim in relation to the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006;
		

		
			39any claim under regulations 45 and 51 of the Companies (Cross-Border Mergers) Regulations 2007;
		

		
			40any claim for failure to comply with obligations under the Human Rights Act 1998;
		

		
			41any claim for failure to comply with obligations under the Data Protection Act 1998;
		

		
			42any claim under any provision of directly applicable European law;
		

		
			43any claim in respect of harassment under section 3 Protection from Harassment Act 1997; 
		

		
			44any claims for physical or psychiatric illness relating to any acts of discrimination, harassment, victimisation or detriment or any stress-related claims and/or any claims relating to depression; 
		

		
			45in relation to any existing personal injury claims, of which the Employee is aware at the date of this Agreement; and 
		

		
			46in relation to the right not to be subjected to a detriment under regulation 3 Exclusivity Terms in Zero Hours Contracts (Redress) Regulations 2015.
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			22

		

 

		

			 

		

		Schedule 2
Contract of Employment

		

		
			﻿
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			23

		

 

		

			 

		

		Schedule 3
Letter of Resignation
		

		
			Private & Confidential
		

		
			Company Secretary
		

		
			Chaucer Underwriting Services Limited
		

		
			Plantation Place
		

		
			30 Fenchurch Street
		

		
			London
		

		
			EC3M 3AD
		

		
			20 February 2017
		

		
			Dear Sirs
		

		
			Please accept this letter as formal notice of my resignation as a Director of the Company and each of the companies named in the schedule below of which I am a Director.  Each of the named companies will be sent a copy of this letter of resignation addressed to that company secretary and should be accepted as an immediate resignation.  My resignation as a Director of the Company is to be effective immediately.
		

		
			You and the other company secretaries are asked to arrange for particulars of my resignation to be filed with the Registrar of Companies.
		

		
			Yours faithfully
		

		
			SIGNED./s/. Johan G. Slabbert...................................
		

		
			Johan G. Slabbert
		

		
			CH1997 Limited
		

		
			Chaucer Capital Investments Limited
		

		
			Chaucer Holdings Limited 
		

		
			Chaucer Insurance Group Plc 
		

		
			Chaucer Syndicates Limited 
		

		
			Lonham Limited 
		

		
			Lonham Group Limited 
		

		
			The Hanover Insurance International Holdings Limited  
		

		
			﻿
		

		
			﻿
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			24

		

 

		

			 

		

		Schedule 4
Reference
		

		
			[NOTE:  Example of reference inserted below. Company should use its standard form]
		

		
			Strictly Private and Confidential
		

		
			[insert name and address]
		

		
			[insert date]
		

		
			Dear [insert name]
		

		
			Re:  Johan G. Slabbert
		

		
			Thank you for your recent letter requesting a reference in relation to the above named.
		

		
			Johan G. Slabbert was Chief Executive Officer of Chaucer Underwriting Services Limited (the Company) from 1 November 2015 until 20 February 2017, and was Chief Financial Officer from 24 June 2013 to 1 November 2015.
		

		
			The Company does not comment on an individual’s character, performance at work or suitability as a prospective employee.  This does not imply any comment, negative or positive about the employee or the course of the employee’s employment with the Company.
		

		
			In accordance with Company policy this reference is given with no legal liability on the part of the Company, or any of its group companies.
		

		
			Yours sincerely
		

		

		

		 

		

			EPID-#4168501-v1

		

		

			25

		

 

		

			 

		

		Schedule 5
Certificate by Adviser
		

		
			I, S.J.P. Lewis of Lewis Townsend LLP confirm that I have given independent legal advice to Johan G. Slabbert as to the terms and effect of the above Agreement and between him and Chaucer Underwriting Services Limited (the Company) in particular its effect on my client’s ability to pursue his rights before an employment tribunal or other court. 
		

		
			I confirm that I am a Solicitor of the Senior Courts holding both at the date of the above Agreement and at the date the said advice was given a current practising certificate and that there is and was at the time I gave the advice referred to above in force a policy of insurance which covers the risk of a claim by Johan G. Slabbert in respect of any loss arising in consequence of that advice.
		

		
			I confirm that I am not employed by the Company nor am I or Lewis Townsend LLP acting in this matter for the Company or any Group Company (as defined in the agreement). 
		

		
			Signed/s/ S.J.P. Lewis...................................................
		

		
			S.J.P. Lewis
		

		
			Solicitor
		

		
			Lewis Townsend LLP
		

		
			﻿
		

		
			﻿
		

		 

		

			EPID-#4168501-v1

		

		

			26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00270-of-00352.parquet"}]]