Document:

Exhibit 10.13

NI HOLDINGS, INC.

 

Time-Based Restricted Stock Unit Agreement
for Non-Employee Directors

 

	Name of Participant:  [___________]	Date of Grant:  
	No. of Units Covered:  [___________]	Vesting Commencement Date:  
	 	
        Vesting Date:

         

 

THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”)
governs the Stock Unit Award granted by NI HOLDINGS, INC., a North Dakota corporation (the “Company”) to the above-named
individual (the “Participant”), in accordance with and subject to the provisions of the Company’s 2017 Stock
and Incentive Plan (the “Plan”). A copy of the Plan has been made available to the Participant. Unless the context
indicates otherwise, capitalized terms that are not defined in this Agreement shall have the meaning set forth in the Plan.

 

I.       Grant
of Restricted Stock Units.

A.       In
accordance with the Plan, and effective as of the Date of Grant specified above, the Company has granted to the Participant the
number of Stock Units specified at the beginning of this Agreement (collectively, the “Restricted Stock Units,” and
each a “Restricted Stock Unit.”). Each Restricted Unit represents the right to receive a share of Common Stock (a “Share”)
and dividend equivalent amounts corresponding to the Share, subject to the terms and conditions of this Agreement and the Plan.

B.       The
Restricted Stock Units granted to the Participant shall be credited to an account in the Participant’s name. This account
shall be a record of book-keeping entries only and shall be utilized solely as a device for the measurement and determination of
the number of Shares to be issued to or in respect of the Participant pursuant to this Agreement. Restricted Stock Units may not
be transferred by the Participant without the Committee’s prior written consent other than by will or the laws of descent
and distribution.

II.       Vesting
of the Shares.

A.       The
Participant’s interest in the Restricted Stock Units shall vest and become non-forfeitable on the vesting date(s) set forth
above (each a “Vesting Date”) if the Participant remains in the continuous service on the Company’s Board of
Directors (the “Board”) from the Vesting Commencement Date through each applicable Vesting Date. Except as provided
in paragraphs 2(b) through (d) below, if the Participant’s service on the Board is terminated prior to a Vesting Date, any
Restricted Stock Units that remain unvested as of the date of such termination shall be forfeited.

B.       If
the Participant remains on the Board from the Vesting Commencement Date until the date the Participant’s service is terminated
due to Disability or death that occurs before the Vesting Date, then any Restricted Stock Units that remain unvested will vest
in full and become non-forfeitable as of the date of such termination.

C.       If
the Participant voluntarily resigns from the Board for any reason prior to the Vesting Date (other than due to Disability), then
the Restricted Stock Units will vest in a pro rata number of the Restricted Stock Units. The pro rata number of Restricted Stock
Units that vest shall be determined by multiplying the unvested Restricted Stock Units by a fraction, the numerator of which is
the number of full and partial calendar months of the Participant’s service with Board from the first day of the Vesting
Commencement Date to the date of resignation, and the denominator of which is the number of full calendar months from the Vesting
Commencement Date to the Vesting Date. A partial month of service shall count as a full month. 

D.       If
the Participant remains on the Board from the Vesting Commencement Date until a Change in Control that occurs before the Vesting
Date, then any Restricted Stock Units that remain unvested will vest in full and become non-forfeitable upon the Change in Control.

    106 

     

    

III.       Issuance
and Settlement.

A.       After
any Restricted Stock Units vest in accordance with Section 2, the Company shall cause to be issued to the Participant, or
to the Participant’s designated beneficiary or estate in the event of the Participant’s death, one Share in payment
and settlement of each vested Restricted Stock Unit. The Committee shall cause the Shares issuable in connection with the vesting
of any such Restricted Stock Units to be issued as soon as practicable after vesting, but in all events no later than 30 days
after vesting, and the Participant shall have no power to affect the timing of such issuance. Such issuance shall be evidenced
by a stock certificate or appropriate entry on the books of the Company or a duly authorized transfer agent of the Company and
shall be in complete settlement and satisfaction of such vested Restricted Stock Units.

B.       Notwithstanding
the foregoing, the Restricted Stock Units shall be treated as “deferred compensation” subject to section 409A of the
Internal Revenue Code (the “Code”) if they are not otherwise exempt under the “short-term” deferral exemption.
In such case, if any Restricted Stock Units vest and become payable on account of a Change in Control, the Restricted Stock Units
shall not become payable (even though non-forfeitable) unless the Change in Control constitutes a “change in control event”
as defined in Treasury Regulations promulgated under section 409A of the Code. In addition, if any Units vest and become payable
on account of a Participant’s resignation from the Board, the Units shall not become payable (even though non-forfeitable)
unless the resignation constitutes a “separation from service” as defined in Treasury Regulations promulgated under
section 409A of the Code.

IV.       Shareholder
Rights. The Restricted Stock Units do not entitle the Participant to any rights of a shareholder of the Company. Notwithstanding
the foregoing, the Participant shall accumulate an unvested right to payment of cash dividend equivalents on the Shares underlying
Restricted Stock Units if cash dividends are declared by the Company on the Shares on or after the Date of Grant. Such dividend
equivalents will be in an amount of cash per Restricted Stock Unit equal to the cash dividend paid with respect to one Share. The
Participant shall be entitled solely to payment of accumulated dividend equivalents with respect to the number of Restricted Stock
Units equal to the number of Shares that become issuable to the Participant pursuant to this Agreement. Dividend equivalents will
be paid to the Participant as soon as administratively possible following the date that the Shares are issued to the Participant.
The Participant shall not be entitled to dividend equivalents with respect to dividends declared prior to the Date of Grant. All
dividend equivalents accumulated with respect to forfeited Restricted Stock Units shall also be irrevocably forfeited. As of the
date of issuance of Shares underlying Restricted Stock Units, the Participant shall have all of the rights of a shareholder of
the Company with respect to any Shares issued pursuant hereto.

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

A.       “Change
in Control” means:

1.       the
approval of the shareholders of the Company, and consummation, of (A) any consolidation, merger or statutory share exchange
of the Company with any person in which the surviving entity would not have as its directors at least a majority of the Incumbent
Board and as a result of which those persons who were shareholders of the Company immediately prior to such transaction would not
hold, immediately after such transaction, at least 50% of the Voting Power of the Company then outstanding or the combined voting
power of the surviving entity’s then outstanding voting securities; (B) any sale, lease, exchange or other transfer
in one transaction or series of related transactions substantially all of the assets of the Company; or (C) the adoption of
any plan or proposal for the complete or partial liquidation or dissolution of the Company. For purposes of this Section 5(a),
“Voting Power” when used with reference to the Company shall mean the voting power of all classes and series of capital
stock of the Company now or hereafter authorized; or

2.       the
individuals who, as of the date of this Agreement, are members of the Board of Directors of the Company (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board (provided, however, that if the election or nomination for
election by the Company’s shareholders of any new director was approved by a vote of at least a majority of the Incumbent
Board, such new director shall be considered to be a member of the Incumbent Board).

B.       “Disability”
means the Participant has been determined, by a physician selected by the Company and reasonably acceptable to the Participant,
to be unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

VI.       No
Right to Continued Service. This Agreement and the grant of the Stock Unit Award do not give the Participant any rights with respect
to continued service with the Company or an Affiliate.

    107

     

    

VII.       Change
in Capital Structure. In accordance with the terms of the Plan, the terms of this Agreement and the number and kind of Shares shall
be adjusted as the Board determines to be equitably required in the event the Company effects one or more stock dividends, stock
split-ups, subdivisions or consolidations of shares or other similar changes in capitalization.

VIII.       Governing
Law; Venue. The laws of the State of North Dakota shall govern all matters arising out of or relating to this Agreement including,
without limitation, its validity, interpretation, construction and performance but without giving effect to the conflict of laws
principles that may require the application of the laws of another jurisdiction. Any party bringing a legal action or proceeding
against any other party arising out of or relating to this Agreement may bring the legal action or proceeding in the United States
District Court for the District of North Dakota or in any court of the State of North Dakota sitting in Fargo, North Dakota. Each
party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of
any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence
and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum.

IX.       Conflicts.
In the event of any conflict between the provisions of the Plan as in effect on the Date of Grant and this Agreement, the provisions
of the Plan shall govern. All references herein to the Plan shall mean the Plan as in effect on the Date of Grant.

X.       Participant
Bound by Plan. The Participant hereby acknowledges that a copy of the Plan has been made available to the Participant and the Participant
agrees to be bound by all of the terms and provisions of the Plan.

XI.       Binding
Effect. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon the Participant and the Participant’s
successors in interest and the Company and any successors of the Company.

 

IN WITNESS WHEREOF, the Company and the Participant
have executed this Restricted Stock Unit Agreement as of the date first set forth above.

 

 

	NI HOLDINGS, INC.	 	[NAME OF PARTICIPANT]
	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	Signature: 	 
	Name:	 	 	Date:	 
	Title: 	 	 	 	 

 

    108zixi-ex1022_84.htm

EXHIBIT 10.22

ZIX CORPORATION
RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement (this “Agreement”) is effective as of the grant date set forth in the Grant Details section below (“Grant Details”) with respect to the Restricted Shares (defined below) described in the Grant Details which are granted by Zix Corporation, a Texas corporation (the “Company”), to the person (“Grantee”) named in the Grant Details.  The Company wishes to recognize Grantee’s contributions to the Company, and to encourage Grantee's sense of proprietorship in the Company, by providing Grantee with Shares of Restricted Stock of the Company as described below.

	
1)
	
Grant Details

Pursuant to and subject to the Zix Corporation Amended and Restated 2012 Incentive Plan (the “Plan”) and this Agreement, the Company hereby grants to Grantee, effective on the grant date indicated below (“Grant Date”), the number of shares (“Shares”) of the Company’s common stock, par value $0.01 (“Stock”) indicated below:

		
	
Grantee
	
 

	
Number of Shares
	
 

	
Grant Date
	
 

	
Vesting Schedule
	
Annual vesting pro rata over four years on the Grant Date anniversary

	
2)
	
Terms

By accepting the Shares, Grantee is deemed to agree to the terms of the Plan and this Agreement, including but not limited to the restrictions imposed by section 5) of this Agreement.

	
3)
	
Terms of the Plan Govern

The terms contained in the Plan are incorporated into and made a part of this Agreement. This Agreement is governed by the terms of the Plan and it is subject to and will be construed in accordance with the Plan. The terms of the Plan govern and control any conflict between the terms of the Plan and this Agreement. All capitalized terms not defined in this Agreement have the meanings ascribed to them in the Plan.  This grant of Shares and this Agreement are subject to the terms and conditions of the Company’s Incentive Compensation Recoupment Policy adopted by the Board, as amended from time to time, and any other compensation recoupment policy adopted from time to time by the Board or any committee of the Board.  

 

“Restricted Period” means, as to any Share, the period before the expiration of the restrictions on that Share imposed under section 5) of this Agreement, during which period that Share is a Restricted Share.

“Restricted Share” means a Share that is subject to the restrictions imposed by section 5) of this Agreement. All shares of the Company’s Stock or other securities that are issued in replacement of or with respect to any Restricted Shares, whether issued in connection with any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Stock or otherwise, also are deemed to be Restricted Shares.

	
4)
	
Condition for Grant

As a condition of accepting this grant of Shares and this Agreement, Grantee must have a brokerage account with the Company’s authorized administrative stock brokerage, which is currently Merrill Lynch (“Broker”).

	
5)
	
Restrictions

From the Grant Date until the end of the Restricted Period as to any particular Share, that Share is deemed a Restricted Share. Each Restricted Share is subject to all of the following restrictions:

	
 
	
a)
	
Restricted Shares cannot be sold, transferred, exchanged, assigned, pledged, encumbered or hypothecated to or in favor of any person other than the Company or a Subsidiary, or be subjected to any lien, obligation or liability of Grantee to any other person other than the Company or a Subsidiary.

	
 
	
b)
	
Any time there is an interruption of Grantee’s Continuous Service for any reason other than those contemplated section 6) below, Grantee will immediately and automatically forfeit all right, title and interest in and to Restricted Shares, the Restricted Shares will automatically revert to the Company, and Grantee will not be entitled to any consideration for those Restricted Shares.

	
6)
	
Expiration and Termination of Restrictions

Except as otherwise provided in Grantee’s Employment Termination Benefits Agreement or any other employment, severance or similar agreement between the Company and Grantee, if any, the restrictions imposed under section 5) above expire on the earliest to occur of the following:

	
 
	
a)
	
as to any particular Restricted Share, on the vesting dates described in the Grant Details, if and only if Grantee is on each applicable Vesting Date either a full time employee or full time individual contractor of the Company or a Subsidiary;

	
 
	
b)
	
as to all of the Restricted Shares, upon Grantee’s death or termination of Continuous Service by reason of his or her Disability; or

	
 
	
c)
	
as to all of the Restricted Shares, as provided in Section 14.6 of the Plan in connection with a Change in Control.

 

	
7)
	
Delivery and Form of Restricted Shares

Restricted Shares will be registered in the name of Grantee as of the Grant Date. The Company may issue the Restricted Shares in either certificated or uncertificated form. The Company has the right to hold certificated Restricted Shares during the Restriction Period, for purposes of enforcing the restrictions imposed under section 5) above. If the Company chooses to deliver to Grantee a stock certificate for Restricted Shares registered in Grantee’s name, that stock certificate will bear a legend in substantially the following form:

“This certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture and restrictions against transfer) contained in a Restricted Stock Agreement between Zix Corporation and the registered owner of the shares represented hereby. Release from such terms and conditions shall be made only in accordance with the provisions of such Agreement, copies of which are on file in the offices of Zix Corporation.”

	
8)
	
Delivery and Form of Unrestricted Shares

After the expiration of the Restricted Period as to formerly Restricted Shares, the Company shall deliver the unrestricted Shares to Grantee or, upon Grantee’s request, to Grantee’s designee. The Company may choose to deliver the Shares in either certificated or uncertificated form. If the Company chooses to deliver a stock certificate, it will not contain the above legend. The Company is entitled to delay delivery of the Shares for a reasonable period in order to comply with registration requirements under the 1933 Act, listing requirements under the rules of any stock exchange, and requirements under any other law or regulation applicable to the issuance or transfer of the Shares.

	
9)
	
Voting Rights

Grantee is the beneficial owner of the Restricted Shares and has full voting rights during the Restricted Period with respect to the Restricted Shares. 

	
10)
	
Dividends

Any dividend that is declared and paid with respect to Restricted Shares will be automatically reinvested in additional Restricted Shares, which will be subject to the same restrictions as the related Restricted Shares (or, if such reinvestment is not possible due to Share availability under the Plan, any such cash dividends or other cash distributions shall be accrued by the Company during the Restricted Period and paid to Grantee only if and when the related Restricted Shares vest and become non-forfeitable as provided in section 6) above, and any such accrued dividends shall be paid to Grantee no later than 30 days after the applicable vesting date).

 

	
11)
	
Successors

This Agreement is binding upon any successor of the Company.

	
12)
	
Notice

Notices under this Agreement must be in writing, delivered personally or sent by registered or certified U.S. mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Zix Corporation, 2711 North Haskell Avenue, Suite 2200, LB 36, Dallas, Texas 75204-2960, Attn: Corporate Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

	
13)
	
Grant Conditioned on Employee Obligations

This grant of Shares and Grantee’s rights under this Agreement are subject to and conditioned upon Grantee’s full compliance with Grantee’s Confidentiality and Invention Agreement with the Company or its Subsidiary, or any similar agreement with the Company or its Subsidiary. If in any dispute between Grantee and the Company or its Subsidiary a court or arbitrator determines that Grantee did not comply in any respect with that agreement, the Company will be entitled to receive from Grantee all Shares, or if Grantee has sold, transferred or otherwise disposed of the Shares, the Fair Market Value of the Shares on the date of sale, transfer or other disposition. This provision will survive any termination or expiration of this Agreement.

	
14)
	
Tax Withholding

The Company or any employer Subsidiary has the authority and the right to deduct or withhold, or require Grantee to remit to the employer, an amount sufficient to satisfy taxes required by law to be withheld by the Company or any employer Subsidiary with respect to any taxable event arising as a result of the vesting of the Shares. Subject to any contractual or legal limitations or restrictions imposed on the Company or any employer Subsidiary (including under any credit or similar agreement), the withholding requirement may be satisfied, in whole or in part, by withholding from the Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Company establishes. 

	
15)
	
Continued Employment or Service Not Guaranteed

Nothing in this Agreement, the Plan or any document describing the Plan or this Agreement, or the grant of any Shares, gives Grantee the right to continue employment or service with the Company or any Subsidiary or affects the right of the Company or a Subsidiary to terminate the employment or service of Grantee with or without Cause.

 

	
16)
	
Governing Law

This Agreement is governed by and will be construed, interpreted and enforced in accordance with the laws of the State of Texas (excluding its conflict of laws rules).

	
17)
	
Injunctive Relief

In addition to all other rights or remedies available at law or in equity, the Company is entitled to injunctive and other equitable relief to prevent or enjoin any violation of the provisions of this Agreement.

	
18)
	
Amendment; Termination

The Committee may amend or terminate this Agreement without approval of Grantee; provided, however, that such amendment, modification or termination shall not, without Grantee’s consent, reduce or diminish the value of the Shares determined as if they were fully vested on the date of such amendment or termination.

	
19)
	
Modifications in Writing

No amendment of this Agreement or waiver of any provision of this Agreement is binding on the Company unless it is in a writing signed by the Company.

	
20)
	
No Deemed Waivers

No failure by the Company to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof will constitute a waiver of any such breach or any other covenant, duty, agreement or condition. No waiver of any of provision of this Agreement will be deemed to occur, or to constitute a waiver of any other provision of this Agreement, or to constitute a continuing waiver, unless that waiver is in a writing signed by the party against whom the waiver is asserted.

	
21)
	
Blue-penciling

If any provision of this Agreement is declared or found to be illegal, unenforceable or void, in whole or in part, then the parties will be relieved of all obligations arising under such provision, but only to the extent that it is illegal, unenforceable or void, it being the intent and agreement of the parties that this Agreement will be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same objectives.

	
22)
	
Further Acts

Grantee will execute all documents, provide all information and take or refrain from taking all actions as the Company deems necessary or appropriate to achieve the purposes of this Agreement.

	
23)
	
Electronic Signatures

This Agreement may be digitally signed by Grantee. By accepting the Restricted Shares on the Broker’s online system, Grantee agrees to the terms of this Agreement together with the pertinent Plan documents found in the Communications Center on the Broker’s website. By failing to accept the Shares on the Broker’s online system, Grantee forfeits all rights to the Shares. Evidence of Grantee’s acceptance of the Shares will be captured and stored in electronic format in the Broker’s database, and that electronic acceptance will create and evidence a binding contract between Grantee and the Company.  

 

 

ZIX CORPORATION

By: 

Its:

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