Document:

exv10w1

Exhibit 10.1

Execution Copy

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (“Agreement”) is entered into effective as of the 1st day
of May, 2009 (the “Effective Date”), by and between the Company, as hereinafter defined, and
William T. Whamond (“Executive”). As used herein, the “Company” shall mean HCC Insurance Holdings,
Inc., a Delaware corporation, or such other HCC entity as is designated by the Chief Executive
Officer of HCC, for which Executive devotes from time to time the substantial portion of his
efforts. The Company shall sometimes be referred to herein as “HCC.” Executive and the Company
are sometimes collectively referred to herein as the “Parties” and individually as a “Party.”

RECITALS:

     WHEREAS, Executive is to be employed as an officer or key employee of the Company;

     WHEREAS, it is the desire of the Company to engage Executive as an officer or key employee of
the Company; and

     WHEREAS, Executive is desirous of being employed by the Company on the terms herein provided.

     NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements set forth below, the Parties agree as follows:

AGREEMENT

     1. Term. Effective as of the Effective Date, the Company hereby employs Executive,
and Executive hereby accepts such employment, on the terms and conditions set forth herein, for the
period (the “Term”) commencing on the Effective Date and expiring at the earlier to occur of
(a) 11:59 p.m. on April 30, 2013 (the “Expiration Date”) or (b) the Termination Date (as
hereinafter defined).

     2. Duties.

          (a) Duties as Executive of the Company. Executive shall, subject to the supervision
of the Chief Executive Officer of the Company (the “CEO”) or such other person designated by the
CEO, act as the Executive Vice President and, as provided below in this Section 2(a), Chief
Financial Officer of the Company in the ordinary course of its business with all such powers
reasonably incident to the position or other such responsibilities or duties that may be from time
to time assigned by the CEO. After May 22, 2009 and no later than August 11, 2009, at the sole
discretion of Executive and upon three (3) days’ prior written notice to the CEO (with a copy to
the General Counsel), Executive shall also assume the position of Chief Financial Officer. After
his appointment as Chief Financial Officer, Executive may be reassigned or transferred to another
management position as designated by the CEO, provided such position provides the same or greater
level of responsibility as Chief Financial Officer and provided Executive continues to report to
the CEO. During normal business hours, Executive shall devote his full time and attention to
diligently attending to the business of the Company. During the Term, Executive shall not

 

 

directly or indirectly render any services of a business, commercial, or professional nature to any other
person, firm, corporation, or organization, whether for compensation or otherwise, without the
prior written consent of the CEO. However, Executive shall have the right to engage in such
activities as may be appropriate in order to manage his personal investments and in educational,
charitable and philanthropic activities so long as such activities do not materially interfere or
conflict with the performance of his duties to the Company hereunder. The conduct of such activity
shall not be deemed to materially interfere or conflict with Executive’s performance of his duties
until Executive has been notified in writing thereof and given a reasonable period in which to cure
the same.

          (b) Other Duties.

          (1) If elected, Executive agrees to serve as a member of such managerial committees of
the Company and of any of its direct or indirect parents or subsidiaries (collectively,
“Affiliates”) and in one or more executive offices of any of the Company’s Affiliates,
provided Executive is indemnified for serving in any and all such capacities in a manner
acceptable to the Company and Executive. If elected, Executive agrees that he shall not be
entitled to receive any compensation for serving as a director of the Company, or in any
capacities for the Company or the Company’s Affiliates other than the compensation to be
paid to Executive by the Company pursuant to this Agreement.

          (2) Executive acknowledges and agrees that he has read and considered the written
business policies and procedures of HCC as posted on HCC’s intranet and that he will abide
by such policies and procedures throughout the term of his employment with the Company.
Executive further agrees that he will familiarize himself with any amendments to the
policies and procedures and that he will abide by such policies and procedures as they may
change from time to time.

     3. Compensation and Related Matters.

          (a) Base Salary. Executive shall receive an initial base salary paid by the Company
of $750,000 per year during the Term. At the sole discretion of HCC, the base salary may be
increased. For purposes of this Agreement, “Base Salary” shall mean Executive’s initial base
salary or, if increased, then the increased base salary. The Base Salary shall be paid in
substantially equal semi-monthly installments.

          (b) Bonus Plan. During the Term, Executive shall be eligible to receive, in addition
to the Base Salary, an annual cash and/or stock bonus payment in amounts to be determined as
follows:

          (1) If Executive is a participant under the 2008 Flexible Incentive Plan (the
“Incentive Plan”) for a calendar year during the Term, then Executive’s bonus payment, if
any, for such year shall be determined and paid in accordance with the terms of the
Incentive Plan.

          (2) If Executive is not a participant in the Incentive Plan, Executive shall be
eligible to receive an annual cash and/or stock bonus payment in an amount, which may

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be zero, to be determined at the sole discretion of the CEO in accordance with HCC’s
policies. The CEO or such other person may unilaterally reduce or eliminate any annual
bonus payment, if any, up until the time the bonus is actually paid (and notwithstanding any
earlier, tentative determination of the bonus amount). Subject to Sections 4(b), 4(c), 4(d)
and 4(f), no bonus payment shall be paid to Executive for a year if Executive’s Termination
Date occurs at any time during such year. Moreover, even if Executive is employed by HCC on
the last day of the year for which a bonus may be payable, Executive shall not be eligible
for the payment of bonus compensation for such year if this Agreement or his employment with
HCC terminates for any reason prior to the payment of such bonus compensation, other than
termination by the Company without “Cause,” termination by Executive for “Good Reason,”
Death, Disability or termination by Executive in connection with a “Change of Control”
pursuant to Section 4(f).

          (3) Notwithstanding Sections 3(b)(1) and (2), Executive’s bonus payment for the bonus
year ending December 31, 2009 shall be not less than $250,000 and shall be paid in cash.
Such payment shall occur after December 31, 2009 and on or before March 15, 2010.

          (4) Notwithstanding Sections 3(b)(1) and (2), if the Agreement expires in accordance
with its terms on the Expiration Date, Executive shall be entitled to consideration for a
prorated bonus for the bonus year ending December 31, 2013 based on that portion of the
bonus year Executive was employed by the Company. Such payment shall occur after December
31, 2013 and on or before March 15, 2014.

          (c) Expenses. During the Term, Executive shall be entitled to receive prompt
reimbursement for all reasonable business expenses incurred by him (in accordance with the policies
and procedures established by the Company) in performing services hereunder, provided that
Executive properly accounts therefor in accordance with Company policy.

          (d) Other Benefits.

          (1) From time to time the Company may make available other compensation and employee
benefit plans and arrangements. Executive shall be eligible to participate in such other
compensation and employee benefit plans and arrangements on the same basis as similarly
situated employees, subject to and on a basis consistent with the terms, conditions, and
overall administration of such plans and arrangements, as amended from time to time.
Nothing in this Agreement shall be deemed to confer upon the Executive or any other person
(including any beneficiary) any rights under or with respect to any such plan or arrangement
or to amend any such plan or arrangement, and the Executive and each other person (including
any beneficiary) shall be entitled to look only to the express terms of any such plan or
arrangement for his or her rights thereunder. Nothing paid to Executive under any such plan
or arrangement presently in effect or made available in the future shall be deemed to be in
lieu of the Base Salary payable to Executive pursuant to Section 3(a).

          (2) If Executive’s employment ceases pursuant to Section 4(c), 4(d), or 4(f), the
Company shall provide continuation coverage under COBRA for Executive and/or
each of his qualified beneficiaries under the Company group health plans in which they

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participate on the Termination Date for twelve (12) months. The Company shall pay the full
required premium for such continuation coverage.

          (e) Vacation. Executive shall be entitled to twenty-five (25) vacation days each year
of full employment during the Term, exclusive of holidays, as long as the scheduling of Executive’s
vacation does not interfere with the Company’s normal business operation. Vacation not used by the
Executive during the calendar year will be forfeited. For purposes of this Paragraph, weekends
shall not count as Vacation days. Executive shall also be entitled to all paid holidays given by
the Company.

          (f) Life Insurance. The Company shall provide to Executive a term life insurance
policy or policies in an aggregate face amount of $1,000,000.00 and shall pay the premiums therefor
during the Term. Upon Executive’s cessation as an employee of the Company during or after the Term
for any reason other than death, the Company shall assign such policy or policies to Executive.
The life insurance provided for in this Section 3(f) shall be in addition to the group life
insurance program covering Executive and substantially all of the employees of the Company during
the Term.

          (g) Air Travel. During the Term, Executive shall be entitled to domestic first class
and international club business class air travel, where available, when traveling on Company
business, and Executive agrees to use any upgrade programs or opportunities for such travel
whenever feasible.

          (h) Relocation Costs. Benefits in connection with Executive’s relocation to Houston,
Texas, which shall include a resale guarantee relating to Executive’s sale of his residence in New
Rochelle, New York, in accordance with the terms of that certain Relocation Policy and
Reimbursement Agreement (“Relocation Agreement”) to be entered into contemporaneously herewith

          (i) Stock Options. Stock options, if any, issued to Executive during the Term shall
be issued under a stock option agreement containing terms with respect to vesting and exercise upon
the occurrence of certain termination events that are substantially the same as those set forth on
Exhibit 3(i) hereto, subject to any then required approval by the Compensation Committee of the
Board.

          (j) Proration. The Base Salary payable to Executive hereunder in respect of any
calendar year during which Executive is employed by the Company for less than the entire year shall
be prorated in accordance with the number of days in such calendar year during which he is so
employed.

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     4. Termination.

          (a) Definitions.

          (1) “Cause” shall mean:

          (i) the Executive’s failure or refusal to perform substantially his material duties,
responsibilities and obligations (other than a failure resulting from the Executive’s
incapacity due to physical or mental illness or other reasons beyond the control of the
Executive) as determined in the reasonable discretion of the CEO;

          (ii) any act involving fraud, misrepresentation, theft, embezzlement, dishonesty or
moral turpitude (“Fraud”) which results in material harm to Company;

          (iii) conviction of (or a plea of nolo contendere) to an offense which is a felony in
the jurisdiction or which is a misdemeanor in the jurisdiction involved but which involves
Fraud;

          (iv) a material breach of this Agreement by the Executive, including without
limitation, any breach of the non-competition or confidentiality provisions of this
Agreement; or

          (v) the Executive’s failure to act or discharge or negligently acting or discharging
any material part of his duties or obligations as determined in the reasonable discretion of
the CEO.

Provided that in the event that any of the foregoing events is capable of being cured, the
Company shall provide written notice to the Executive describing the nature of such event
and the Executive shall thereafter have ten (10) calendar days to cure such event to the
satisfaction of the Company.

     (2) A “Change of Control” shall be deemed to have occurred if:

     (i) Any “person” or “group” (within the meaning of sections 13(d) and 14(d)(2)
of the Securities Exchange Act of 1934) other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934), directly or indirectly, of 50% or more of the Company’s then outstanding
voting common stock; or

     (ii) The shareholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation (a) in
which a majority of the directors of the surviving entity were directors of the
Company prior to such consolidation or merger, and (b) which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being changed into voting
securities of the surviving entity) more than 50% of the combined voting power of
the voting

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securities of the surviving entity outstanding immediately after such merger or
consolidation; or

     (iii) The shareholders approve a plan of complete liquidation of the Company or
an agreement for the sale or disposition by the Company of all or substantially all
of the Company’s assets.

          (3) A “Disability” shall mean the inability of Executive to engage in any
substantial gainful activity by reason of any 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. Executive shall be considered to have a
Disability (i) if he is determined to be totally disabled by the Social Security
Administration or (ii) if he is determined to be disabled under HCC’s long-term disability
plan in which Executive participates and if such plan defines “disability” in a manner that
is consistent with the immediately preceding sentence.

          (4) A “Good Reason” shall mean any of the following (without Executive’s
express written consent):

     (i) A material diminution in the Executive’s Base Salary;

     (ii) A material diminution in Executive’s responsibilities, including
Executive’s ceasing to directly report to the CEO;

     (iii) Executive’s involuntary relocation to any place, other than the executive
offices as a result of the Company relocating its executive offices, exceeding a
distance of 50 miles from the place of Executive’s normal place of employment on
the Effective Date, except for reasonably required travel by Executive on the
Company’s business; or

     (iv) Any material breach by the Company of any material provision of this
Agreement.

However, Good Reason shall exist with respect to an above specified matter only if such
matter is not corrected, or begun to be corrected, by the Company within thirty (30) days
after the Company’s receipt of written notice of such matter from Executive. Any such
notice from Executive must be provided within thirty (30) days after the initial existence
of the specified event. In no event shall a termination by Executive occurring more than
ninety (90) days following the initial date of the event described be a termination for Good
Reason due to such event, whether that event is corrected or not.

          (5) “Termination Date” shall mean the date Executive’s employment with the Company
terminates or is terminated for any reason pursuant to this Agreement.

          (b) Termination Without Cause or for Good Reason: Benefits. In the event the Company
involuntarily terminates Executive’s employment with the Company without Cause or

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if Executive terminates employment with the Company for Good Reason (a “Termination Event”),
this Agreement shall terminate and Executive shall be entitled to the following severance benefits:

          (1) An amount equal to the Base Salary (as defined in Section 3(a)) that would have
been payable after the Termination Date and before the Expiration Date, at the rate in
effect immediately prior to the Termination Event, payable in a lump sum discounted at the
rate of return on 90-day Treasury bills in existence on the Termination Date to take into
consideration the lump sum early payment within ninety (90) days after the Termination Date;
provided that such payment shall in any event occur on or after such Termination Date and
before March 15 of the year following the year containing such Termination Date;

          (2) An amount equal to the Base Salary paid to Executive during the prior year in lieu
of any bonus payment that would have been earned for the year in which the Termination Date
occurs, payable in a lump sum discounted at the rate of return on 90-day Treasury bills in
existence on the Termination Date to take into consideration the lump sum early payment
within ninety (90) days after the Termination Date; provided that such payment shall in any
event occur on or after such Termination Date and before March 15 of the year following the
year containing such Termination Date;

          (3) Payment of accrued Base Salary and unreimbursed business expenses through the
Termination Date in accordance with Section 3(c). Such amounts shall be paid to Executive
in a lump sum in cash within thirty (30) days after the Termination Date; and

          (4) Executive shall be free to accept other employment during such period, and other
than as set forth herein, there shall be no offset of any employment compensation earned by
Executive in such other employment during such period against payments due Executive under
this Section 4, and there shall be no offset in any compensation received from such other
employment against the severance benefits set forth above, unless the Executive is employed
in a position of competing with the Company as described in Section 5 below.

          (c) Termination In Event of Death: Benefits. If Executive’s employment with the
Company is terminated by reason of Executive’s death during the Term, this Agreement shall
terminate without further obligation to Executive’s legal representatives under this Agreement,
other than for:

          (1) payment of all accrued Base Salary through the Termination Date, unreimbursed
business expenses through the Termination Date in accordance with Section 3(c), the amount
of any bonus under Section 3(b) that relates to a prior year and that is unpaid as of the
date of death, and an amount equal to twelve (12) months’ Base Salary payable to Executive’s
estate in a lump sum in cash within ninety (90) days after the date of death; provided that
such payment shall in any event occur on or after such date of death and before March 15 of
the year following the year of death;

          (2) a payment in lieu of a bonus payment under Section 3(b) with respect to the year in
which Executive dies equal to, (i) if such termination occurs on or before
December 31, 2009, $250,000, or (ii) if such termination occurs on or after January 1,
2010,

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an amount equal to a pro rata amount of Executive’s bonus compensation for the prior
calendar year; provided that the payment of any such bonus, if any, shall in any event occur
on or after such date of death and before March 15 of the year following the year of death;
and

          (3) continuing medical benefits under Section 3(d)(2).

          (d) Termination In Event of Disability: Benefits. If Executive’s employment with the
Company is terminated by reason of Executive’s Disability during the Term, this Agreement shall
terminate, but the Company shall pay the Executive

          (1) all accrued Base Salary through the Termination Date, unreimbursed business
expenses through the Termination Date in accordance with Section 3(c), the amount of any
bonus under Section 3(b) that relates to a prior year and that is unpaid as of the date of
Disability, and an amount equal to twelve (12) months’ Base Salary payable to Executive in a
lump sum in cash within ninety (90) days after the Termination Date due to Disability;
provided that such payment shall in any event occur on or after such Termination Date and
before March 15 of the year following the year containing such Termination Date;

          (2) for a payment in lieu of a bonus payment under Section 3(b) with respect to the
year in which Executive’s employment terminates due to Disability equal to, (i) if such
termination occurs on or before December 31, 2009, $250,000, or (ii) if such termination
occurs on or after January 1, 2010, an amount equal to a pro rata amount of Executive’s
bonus compensation for the prior calendar year; provided that any payment of such bonus, if
any, shall in any event occur on or after such Termination Date and before March 15 of the
year following the year containing such Termination Date.

          (e) Voluntary Termination by Executive and Termination for Cause: Benefits. Executive
may terminate his employment with the Company by giving written notice of his intent and stating an
effective Termination Date at least ninety (90) days after the date of such notice; provided,
however, that the Company may accelerate such effective date by paying Executive through the
proposed Termination Date (but not to exceed ninety (90) days). Upon such a termination by
Executive or upon termination of Executive’s employment with the Company for Cause by the Company,
this Agreement shall terminate and the Company shall pay to Executive all accrued Base Salary and
all unreimbursed business expenses through the Termination Date in accordance with Section 3(c).
Such amounts shall be paid to Executive in a lump sum in cash within thirty (30) days after the
Termination Date. Executive shall have no entitlement to any bonus for the year in which the
Termination Date occurs or for any unpaid bonus for the prior year.

          (f) Voluntary Termination by Executive after a Change of Control: Benefits. If
Executive’s authority, duties, or responsibilities are materially diminished within twelve (12)
months after a Change of Control occurs, Executive notifies the Company of such diminution within
thirty (30) days, and the Company does not fully correct the condition within thirty (30) days
after receiving such notice, Executive may voluntarily terminate her employment with the Company
and shall be entitled to the following severance benefits:

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          (1) An amount equal to the Base Salary (as defined in Section 3(a)) that would have
been payable after the Termination Date and before the Expiration Date, at the rate in
effect immediately prior to the Termination Event, payable in a lump sum discounted at the
rate of return on 90-day Treasury bills in existence on the Termination Date to take into
consideration the lump sum early payment within ninety (90) days after the Termination Date;
provided that such payment shall in any event occur on or after such Termination Date and
before March 15 of the year following the year containing such Termination Date;

          (2) An amount equal to the Base Salary paid to Executive during the prior year in lieu
of any bonus payment that would have been earned for the year in which the Termination Date
occurs, payable in a lump sum discounted at the rate of return on 90-day Treasury bills in
existence on the Termination Date to take into consideration the lump sum early payment
within ninety (90) days after the Termination Date; provided that such payment shall in any
event occur on or after such Termination Date and before March 15 of the year following the
year containing such Termination Date;

          (3) All unreimbursed business expenses through the Termination Date in accordance with
Section 3(c). Such amounts shall be paid to Executive in a lump sum in cash within thirty
(30) days after the Termination Date;

          (4) All stock options granted to Executive prior to the Effective Date shall vest
immediately, regardless of any limitation or condition when granted, and each such option
shall be exercisable for the period provided in the respective option grant agreement with
respect to such option. The provisions of this Section 4(f)(3) constitute an amendment to
the terms of each applicable option agreement (including agreements for options granted on
or after the Effective Date); and

          (5) Executive shall be free to accept other employment during such period, and other
than as set forth herein, there shall be no offset of any employment compensation earned by
Executive in such other employment during such period against payments due Executive under
this Section 4, and there shall be no offset in any compensation received from such other
employment against the severance benefits set forth above, unless the Executive is employed
in a position of competing with the Company as described in Section 5 below.

          (g) Director and Officer Positions. Executive agrees that upon termination of
employment, for any reason, Executive will immediately tender his resignation from any and all
Board or officer positions held with the Company and/or any of its Affiliates.

     5. Non-Competition, Non-Solicitation and Confidentiality. The Company agrees to give
Executive access to Confidential Information (including, without limitation, Confidential
Information, as defined below, of the Company’s Affiliates) that Executive has not had access to or
knowledge of before the execution of this Agreement. At the time this Agreement is made, the
Company agrees to provide Executive with initial and ongoing Specialized Training, which Executive
has not had access to or knowledge of before the execution of this Agreement. “Specialized
Training” includes the training the Company provides to its employees that is unique
to its business and enhances Executive’s ability to perform Executive’s job duties
effectively.

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Specialized Training includes, without limitation, orientation training; sales
methods/techniques training; operation methods training; and computer and systems training.

          (a) Non-Competition During Employment. Executive agrees that, in consideration for
the Company’s promise to provide Executive with Confidential Information and Specialized Training,
during the Term, he will not compete with the Company by engaging in the conception, design,
development, production, marketing, or servicing of any product or service that is substantially
similar to the products or services which the Company provides, and that he will not work for, in
any capacity, assist, or become affiliated with as an owner, partner, etc., either directly or
indirectly, any individual or business which offers or performs services, or offers or provides
products substantially similar to the services and products provided by Company; provided, however,
Executive shall not be prevented from owning no more than 2% of any company whose stock is publicly
traded.

          (b) Conflicts of Interest. Executive agrees that during the Term, he will not engage,
either directly or indirectly, in any activity (a “Conflict of Interest”) that might adversely
affect the Company or its Affiliates, including ownership of a material investment in a competitor
of the Company or its Affiliates, ownership of a material interest in any supplier, contractor,
distributor, subcontractor, customer or other entity with which the Company does business or
acceptance of any material payment, service, loan, gift, trip, entertainment, or other favor from a
supplier, contractor, distributor, subcontractor, customer or other entity with which the Company
does business, and that Executive will promptly inform the CEO as to each offer received by
Executive to engage in any such activity. As used in this Section 5(b), “materiality” shall be
viewed from the perspective of Executive. Executive further agrees to disclose to the Company any
other facts of which Executive becomes aware which in Executive’s good faith judgment could
reasonably be expected to involve or give rise to a Conflict of Interest or potential Conflict of
Interest.

          (c) Non-Competition After Termination. Executive agrees that in order to protect the
Company’s Confidential Information, it is necessary to enter into the following restrictive
covenant, which is ancillary to the enforceable promises between the Company and Executive
otherwise contained in this Agreement. Executive agrees that Executive shall not, at any time
during the Restricted Period (as hereinafter defined), within any of the markets in which the
Company has sold products or services or formulated a plan to sell products or services into a
market during the last twelve (12) months of Executive’s employ, engage in or contribute
Executive’s knowledge to any work which is competitive with or similar to a product, process,
apparatus, service, or development on which Executive worked while employed by the Company. It is
understood that the geographical area set forth in this covenant is divisible so that if this
clause is invalid or unenforceable in an included geographic area, that area is severable and the
clause remains in effect for the remaining included geographic areas in which the clause is valid.
For the purpose of this Agreement, “Restricted Period” means a period of twenty-four (24) months
after termination of Executive’s employment with the Company; provided, however, that in the event
Executive is terminated by the Company without “Cause” or Executive terminates his employment for
“Good Reason” or in connection with a “Change of Control” pursuant to Section 4(f), such period
shall be twelve (12) months. The Restricted Period shall commence at the time Executive ceases to
be a full-time employee of the Company.

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          (d) Confidential Information. Executive agrees that he will not, except as the
Company may otherwise consent or direct in writing, reveal or disclose, sell, use, lecture upon,
publish or otherwise disclose to any third party any Confidential Information or proprietary
information of the Company, or authorize anyone else to do these things at any time either during
or subsequent to his employment with the Company. This Paragraph shall continue in full force and
effect after termination of Executive’s employment and after the termination of this Agreement.
Executive’s obligations under this Paragraph with respect to any specific Confidential Information
and proprietary information shall cease when that specific portion of the Confidential Information
and proprietary information becomes publicly known, in its entirety and without combining portions
of such information obtained separately. It is understood that such Confidential Information and
proprietary information of the Company include matters that Executive conceives or develops, as
well as matters Executive learns from other employees of the Company. “Confidential Information”
is defined to include information: (1) disclosed to or known by Executive as a consequence of or
through his employment with the Company; (2) not generally known outside the Company; and (3) that
relates to any aspect of the Company or its business, finances, operation plans, budgets, research,
or strategic development. “Confidential Information” includes, but is not limited to, the
Company’s trade secrets, proprietary information, financial documents, long range plans, customer
lists, employer compensation, marketing strategy, data bases, costing data, computer software
developed by the Company, investments made by the Company, and any information provided to the
Company by a third party under restrictions against disclosure or use by the Company or others.

          (e) Non-Solicitation. To protect the Company’s Confidential Information, and in the
event of Executive’s termination of employment for any reason whatsoever, whether by Executive or
the Company, it is necessary to enter into the following restrictive covenant, which is ancillary
to the enforceable promises between the Company and Executive otherwise contained in this
Agreement. Executive covenants and agrees that during Executive’s employment and for the
Non-solicitation Period, Executive will not, directly or indirectly, either individually or as a
principal, partner, agent, consultant, contractor, employee or as a director or officer of any
corporation or association, or in any other manner or capacity whatsoever, except on behalf of the
Company, solicit business, or attempt to solicit business, and products or services competitive
with products or services sold by the Company, from the Company’s clients or customers, or those
individuals or entities with whom the Company did business during Executive’s employment.
Executive further agrees that during Executive’s employment and for the Non-Solicitation Period,
Executive will not, either directly or indirectly, or by acting in concert with others, solicit or
influence any Company employee to leave the Company’s employment. For the purpose of this
Agreement, “Non-solicitation Period” means a period of twenty-four (24) months after termination of
Executive’s employment with the Company; provided, however, that in the event Executive is
terminated by the Company without “Cause” or Executive terminates his employment for “Good Reason”
or in connection with a “Change of Control” pursuant to Section 4(f), such period shall be twelve
(12) months.

          (f) Return of Documents, Equipment, Etc. All writings, records, and other documents
and things comprising, containing, describing, discussing, explaining, or evidencing any
Confidential Information, and all equipment, components, parts, tools, and the like in Executive’s
custody or possession that have been obtained or prepared in the course of Executive’s employment

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with the Company shall be the exclusive property of the Company, shall not be copied and/or
removed from the premises of the Company, except in pursuit of the business of the Company, and
shall be delivered to the Company, without Executive retaining any copies, upon notification of the
termination of Executive’s employment or at any other time requested by the Company. The Company
shall have the right to retain, access, and inspect all property of Executive of any kind in the
office, work area, and on the premises of the Company upon termination of Executive’s employment
and at any time during employment by the Company to ensure compliance with the terms of this
Agreement.

          (g) Reaffirm Obligations. Upon termination of Executive’s employment with the
Company, Executive, if requested by Company, shall reaffirm in writing Executive’s recognition of
the importance of maintaining the confidentiality of the Company’s Confidential Information and
proprietary information, and reaffirm any other obligations set forth in this Agreement.

          (h) Prior Disclosure. Executive represents and warrants that Executive has not used
or disclosed any Confidential Information he may have obtained from the Company prior to signing
this Agreement, in any way inconsistent with the provisions of this Agreement.

          (i) No Previous Restrictive Agreements. Executive represents that, except as
disclosed in writing to the Company, Executive is not bound by the terms of any agreement with any
previous employer or other party to refrain from using or disclosing any trade secret or
confidential or proprietary information in the course of Executive’s employment by the Company or
to refrain from competing, directly or indirectly, with the business of such previous employer or
any other party. Executive further represents that Executive’s performance of all the terms of
this Agreement and Executive’s work duties for the Company does not and will not breach any
agreement to keep in confidence proprietary information, knowledge or data acquired by Executive in
confidence or in trust prior to Executive’s employment with the Company, and Executive will not
disclose to the Company or induce the Company to use any confidential or proprietary information or
material belonging to any previous employer or other party.

          (j) Breach. Executive agrees that any breach of Sections 5(a) through (f) above
cannot be remedied solely by money damages, and that in addition to any other remedies Company may
have, Company is entitled to obtain injunctive relief against Executive. Nothing herein, however,
shall be construed as limiting the Company’s right to pursue any other available remedy at law or
in equity, including recovery of damages and termination of this Agreement and/or any termination
or offset against any payments that may be due pursuant to this Agreement.

          (k) Right to Enter Agreement; Payment of Loans. Executive represents and covenants to
the Company that he has full power and authority to enter into this Agreement and that the
execution and performance of this Agreement will not breach or constitute a default of any other
agreement or contract to which he is a party or by which he is bound. Executive further
acknowledges that he has repaid all outstanding loans from the Company prior to entering into this
Agreement.

          (l) Enforceability. The agreements contained in this Section 5 are independent of the
other agreements contained herein. Accordingly, failure of the Company to comply with any

12

 

of its obligations outside of this Section do not excuse Executive from complying with the
agreements contained herein.

          (m) Survivability. The agreements contained in this Section 5 shall survive the
termination of this Agreement for any reason.

          (n) Reformation. If a court concludes that any time period or the geographic area
specified in Sections 5(c) or (e) of this Agreement are unenforceable, then the time period will be
reduced by the number of months, or the geographic area will be reduced by the elimination of the
overbroad portion, or both, so that the restrictions may be enforced in the geographic area and for
the time to the fullest extent permitted by law.

     6. Assignment. This Agreement, and any rights and obligations hereunder, may not be
assigned by the Executive and may be assigned by the Company only to a successor by merger or
purchasers of substantially all of the assets of the Company. The Company shall obtain the
assumption and performance of this Agreement by any such successor or purchasers; provided,
however, that such commitment by the Company (including a failure to satisfy such commitment) shall
not give Executive the right to object to or enjoin any transaction among the Company, any of its
affiliates, and any such successor or purchasers. To the extent a failure by the Company to
satisfy the foregoing commitment constitutes a material breach of this Agreement and to the extent
not cured in accordance with Section 4(a)(4), such failure shall constitute “Good Reason” pursuant
to Section 4(a)(4)(iii).

     7. Binding Agreement. Executive understands that his obligations under this Agreement
are binding upon Executive’s heirs, successors, personal representatives, and legal
representatives.

     8. Notices. All notices pursuant to this Agreement shall be in writing and sent
certified mail, return receipt requested, addressed as set forth below, or by delivering the same
in person to such party, or by transmission by facsimile to the number set forth below (which shall
not constitute notice). Notice deposited in the United States Mail, mailed in the manner described
hereinabove, shall be effective upon deposit. Notice given in any other manner shall be effective
only if and when received:

	 	 	 	 	 
	 

	 	If to Executive:
	 	William T. Whamond
	 

	 	 	 	76 Pryer Terrace
	 

	 	 	 	New Rochelle, New York 10804
	 
	 	 	 	 
	 

	 	If to Company:
	 	HCC Insurance Holdings, Inc.
	 

	 	 	 	13403 Northwest Freeway
	 

	 	 	 	Houston, Texas 77040
	 

	 	 	 	Attn: General Counsel
	 

	 	 	 	Fax: (713) 744-9648

13

 

     9. Waiver. No waiver by either party to this Agreement of any right to enforce any
term or condition of this Agreement, or of any breach hereof, shall be deemed a waiver of such
right in the future or of any other right or remedy available under this Agreement.

     10. Severability. If any provision of this Agreement is determined to be void,
invalid, unenforceable, or against public policy, such provisions shall be deemed severable from
the Agreement, and the remaining provisions of the Agreement will remain unaffected and in full
force and effect.

     11. Entire Agreement. The terms and provisions contained herein shall constitute the
entire agreement between the parties with respect to Executive’s employment with Company during the
time period covered by this Agreement. This Agreement replaces and supersedes any and all existing
Agreements entered into between Executive and the Company relating generally to the same subject
matter, if any, and shall be binding upon Executive’s heirs, executors, administrators, or other
legal representatives or assigns.

     12. Modification of Agreement. This Agreement may not be changed or modified or
released or discharged or abandoned or otherwise terminated, in whole or in part, except by an
instrument in writing signed by Executive and an officer or other authorized executive of Company.

     13. Understand Agreement. Executive represents and warrants that he has read and
understood each and every provision of this Agreement, and Executive understands that he has the
right to obtain advice from legal counsel of his choice, if necessary and desired, in order to
interpret any and all provisions of this Agreement, and that Executive has freely and voluntarily
entered into this Agreement.

     14. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Texas, without regard to the conflicts of laws principles thereof.

     15. Jurisdiction and Venue. With respect to any litigation regarding this Agreement,
Executive agrees to venue in the state or federal courts in Harris County, Texas, and agrees to
waive and does hereby waive any defenses and/or arguments based upon improper venue and/or lack of
personal jurisdiction. By entering into this Agreement, Executive agrees to personal jurisdiction
in the state and federal courts in Harris County, Texas.

     16. Arbitration. Disputes between the parties shall be settled by binding arbitration in the
city of Houston in the State of Texas in accordance with the Commercial Arbitration Rules then in
effect of the American Arbitration Association (the “AAA Rules”). Arbitration will be conducted by
one (1) arbitrator The Company and Executive agree to use all commercially reasonable efforts to
cause the arbitration hearing to be conducted within sixty (60) calendar days after the appointment
of the last of the arbitrator and to use all commercially reasonably efforts to cause the
arbitrator’s decision to be furnished within ninety-five (95) calendar days after his or her
appointment. The Company and Executive further agree that discovery shall be completed at least
twenty (20) Business Days prior to the date of the arbitration hearing. The final decision of the
arbitrators shall be furnished to the Company and Executive in writing and shall constitute a
conclusive determination of the issue in question, binding upon the Company and Executive and shall
not be contested by
either of them. In any arbitration of a non-statutory claim, the Company and Executive

14

 

shall
each pay their own expenses (including attorneys’ fees), and the Company and Executive shall each
pay fifty percent (50%) of the fees and expenses associated with the arbitration (including the
arbitrators’ fees and expenses).

     17. Tolling. If Executive violates any of the restrictions contained in Sections 5(c)
or (e), the Restricted Period and the Non-Solicitation Period, respectively, will be suspended and
will not run in favor of Executive from the time of the commencement of any violation until the
time when Executive cures the violation to the Company’s satisfaction.

     18. Compliance With Section 409A.

          (a) Delay in Payments. Notwithstanding anything to the contrary in this Agreement,
(i) if upon the Termination Date, Executive is a “specified employee” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended, or any regulations or Treasury
guidance promulgated thereunder (the “Code”) and the deferral of any amounts otherwise payable
under this Agreement as a result of Executive’s termination of employment is necessary in order to
prevent any accelerated or additional tax to Executive under Code Section 409A, then the Company
will defer the payment of any such amounts hereunder until the date that is six (6) months
following the date of Executive’s termination of employment with the Company, at which time any
such delayed amounts will be paid to Executive in a single lump sum, with interest from the date
otherwise payable at the United States prime rate as published in the “Money Rates” section of The
Wall Street Journal on the first publication date coincident with or immediately following the
Termination Date, and (ii) if any other payments of money or other benefits due to Executive
hereunder could cause the application of an accelerated or additional tax under Code Section 409A,
such payments or other benefits shall be deferred if deferral will make such payment or other
benefits compliant under Code Section 409A and if this subsection (ii) does not otherwise cause the
application of an accelerated or additional tax under Code Section 409A.

          (b) Overall Compliance. To the extent any provision of this Plan or any omission from
the Plan would (absent this Section 18(b)) cause amounts to be includable in income under Code
section 409A(a)(1), the Plan shall be deemed amended to the extent necessary to comply with the
requirements of Code section 409A; provided, however, that this Section 18(b) shall not apply and
shall not be construed to amend any provision of the Plan to the extent this Section 18(b) or any
amendment required thereby would itself cause any amounts to be includable in income under Code
section 409A(a)(1).

          (c) Reformation. If any provision of this Agreement would cause Executive to incur any
additional tax under Code Section 409A , the parties will in good faith attempt to reform the
provision in a manner that maintains, to the extent possible, the original intent of the applicable
provision without violating the provision of Code Section 409A.

[signature page follows]

15

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement in multiple copies, effective as
of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	COMPANY:	 	 
	 	 	 	 	 	 	HCC Insurance Holdings, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	/s/ William T. Whamond
 

William T. Whamond
	 	 	 	By:
	 	/s/ Frank J. Bramanti
 

Frank J. Bramanti,
	 	 
	Date: April 28, 2009	 	 	 	 	 	Chief Executive Officer	 	 
	 	 	 	 	 	 	Date: April 28, 2009	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Acknowledged by:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ John N. Molbeck, Jr.	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	John N. Molbeck, Jr.,	 	 
	 

	 	 	 	 	 	 	 	President and Chief Operating Officer	 	 
	 	 	 	 	 	 	Date: April 28, 2009	 	 

Signature Page

Employment Agreement — Whamond

 

 

Exhibit 3(i)

Option Vesting and Exercise Provisions

Termination of Employment.

1. In the event the employment of the Employee is terminated by the Employee for Good Reason (as
defined in the Employment Agreement between the Company and the Employee entered into effective as
of May 1, 2009 (the “Employment Agreement”)) or by the Company without Cause (as such term is
defined in the Employment Agreement), the Employee shall have the right to exercise this option for
the full number of shares not previously exercised or any portion thereof, except as to the
issuance of fractional shares, to the full extent of this option at any time within the unexpired
term of this option.

2. In the event the employment of the Employee is terminated for Cause or by Employee without Good
Reason, the Employee shall have the right at any time within thirty (30) days after the termination
of such employment or, if shorter, during the unexpired term of this option, to exercise this
option for the full number of shares not previously exercised or any portion thereof, except as to
the issuance of fractional shares, but only to the extent this option was otherwise exercisable in
accordance with Paragraph 4 hereof as of the date of such termination of employment.

3. In the event the employment of the Employee is terminated by reason of Disability, then the
Employee shall have the right to exercise this option for the full number of shares not previously
exercised or any portion thereof, except as to the issuance of fractional shares, to the full
extent of this option at any time within the unexpired term of this option.

4. In the event of the death of the Employee while in the employ of the Company or the
Subsidiaries, this option may be exercised for the full number of shares not previously exercised,
or any portion thereof, except as to the issuance of fractional shares, to the full extent of this
option at any time within the unexpired term of this option, by the person or persons to whom the
Employee’s rights under this option shall pass by the Employee’s will or by the laws of descent and
distribution, whichever is applicable.

5. In the event the Employee terminates his employment on a Change of Control (as defined in the
Employment Agreement), then the Employee shall have the right to exercise this option for the full
number of shares not previously exercised or any portion thereof, except as to the issuance of
fractional shares, to the full extent of this option at any time within the unexpired term of this
option.

Exhibit 3(i)

 

 

Relocation Policy and Reimbursement Agreement

This Agreement is effective as of the date signed. It is between HCC Insurance Holdings, Inc. (the
“Company” or “HCC”) and William T. Whamond (“You”, “Your”, or “Employee”).

HCC has agreed to spend a substantial sum of money for the purpose of relocating you and your
legally-recognized immediate family members who currently live with you to the Houston, Texas area
(“Houston”).

The Company will reimburse you for reasonable and proper amounts or provide advance assistance of
expenses incurred as a result of your relocation from your current place of residence to Houston.

You are eligible to have your relocation expenses reimbursed after relocating from your former
residence to Houston, Texas. All relocation expenses should be filed separately from other types of
reimbursable business expenses and should be clearly marked “Relocation Expenses.”

The Administration Department will assist relocating employees to facilitate their move. Please
contact the Administration Department (Debbie Riffe, Vice President of Administration 713-744-9634)
to obtain the names of outside services, such as movers and real estate brokers, to help you
relocate.

The Internal Revenue Service (IRS) requires that certain relocation and moving expenses paid to and
on behalf of an employee be included as regular income and reflected on the employee’s W-2. The
Company includes these amounts, when applicable, on the employee’s W-2 summary of earnings. The
employee is allowed to deduct certain moving expenses (other than those reimbursed by the Company
and excluded from the employee’s W-2) as adjustments to gross income in calculating individual
income tax. The Company will provide a breakdown of all relocation expenses to ensure the necessary
information for completing the required tax forms. You are advised to see qualified tax counsel for
advice in these areas where specific questions arise.

To the extent the Company’s payment of reasonable relocation and moving expenses in accordance with
the foregoing is reported as taxable income to you on IRS Form W-2, the
Company shall make an additional tax gross-up payment to you such that the total of that payment
plus the amount of the reported taxable reimbursement of relocation and moving expenses shall equal
the amount of the reported taxable reimbursement divided by 0.6355 (i.e., 1 minus the deemed
marginal income tax rate of 36.45%).

In order to address the financial concerns you may have regarding a move, HCC has put together the
following relocation package. Included in this package are some items that may help to address some
personal concerns you may also have.

	 	1.	 	The Company will assist you with two (2) house hunting trips of not more than five
(5) days and four (4) nights, each for the purpose of orienting yourselves with the
Houston area and to locate a new residence. House hunting expenses apply to both you and
your spouse: They include the cost of transportation, meals, and lodging. You may claim
these expenses only if the travel begins after an Employment Agreement is signed and
travel is

 

 

	 	 	 	primarily to look for a place to live. The cost of transportation includes parking fees and
tolls, plus actual expenses, such as gas. Accurate records of each expense must be kept and
the original receipts provided when seeking reimbursement. Entertainment and personal
expenses are not reimbursable.

	 	2.	 	In some instances, you may wish to have an additional family member(s) to accompany
you on a house hunting trip or someone other than your spouse. In such cases, approval by
the Vice President of Human Resources will be required.
	 
	 	3.	 	All arrangements and accommodations for these trips (includes air, rental car, and
lodging) are provided through the Company’s Corporate Travel Department.
	 
	 	4.	 	The Company will pay for temporary housing, up to seven months, capped at $4,500 per
month for the initial 3 months and $3,000 per month thereafter.
	 
	 	5.	 	The Company will contract with a moving van lines to provide services to you at a
discounted rate. The type and extent of assistance in relocation of your household goods
is as follows:

	 	a.	 	The cost of normal household moving service from the former permanent
residence to the new residence.
	 
	 	b.	 	The cost for normal moving services including packing of normal
household effects for shipment and unpacking and placement of household goods at
the new residence.
	 
	 	c.	 	The Company will pay for full replacement valuation at released value
of $3.50 times the shipping weight. If the coverage is determined by you as not
sufficient, additional coverage can be purchased at your own expense.
	 
	 	d.	 	The cost of normal move via moving van or auto carrier for two
personal vehicles from the former permanent residence to the new residence.
	 
	 	e.	 	The normal cost of storage during the period you are in temporary
housing.

No assistance will be provided for the following:

	 	a.	 	Moving or shipment of items such as livestock, boats, shrubs,
construction materials, additional cars, or similar items requiring special
handling.
	 
	 	b.	 	Removal or installation of permanently fixed items such as lighting
fixtures, fencing, patios, fireplaces, etc.
	 
	 	c.	 	Assembly or disassembly of, pool tables, waterbeds, outdoor fixtures,
appliances, etc.
	 
	 	d.	 	Purchase of fixtures, appliances, equipment, or materials for new
residence.

 

 

	 	e.	 	Tips or gifts to moving company employees.
	 
	 	f.	 	Any services performed by you, your dependents or relatives.

	 	6.	 	When you sell your primary residence, you will be reimbursed for the following costs,
including but not limited to:

	 	a.	 	Real estate commission (limited to prevailing local rate, but not to
exceed seven percent (7%)). If you should sell your home without a real-estate
agent, you will receive 2% of the selling price as a bonus.
	 
	 	b.	 	One real estate appraisal.
	 
	 	c.	 	Real estate transfer taxes.
	 
	 	d.	 	Title survey costs.
	 
	 	e.	 	Legally required inspection fees (if paid by seller).

	 	7.	 	When you purchase a residence to be used as your primary residence in Houston, you
will be reimbursed for customary buying cost, including, but not limited to:

	 	a.	 	Mortgage applications and credit rating fee.
	 
	 	b.	 	Cost of building inspection, plot survey, and termite inspection, if
required by mortgage lending institution.
	 
	 	c.	 	Title insurance premium (only if specifically required by state
statute or mortgage lending institution).
	 
	 	d.	 	Recording fees and property tax transfer.

No reimbursement will be allowed for the following:

	 	a.	 	Baby-sitting.
	 
	 	b.	 	Care of pets.
	 
	 	c.	 	Disconnecting and connecting appliances and utilities.
	 
	 	d.	 	Removing and installing antennas, carpet and draperies.
	 
	 	e.	 	Home cleaning, maintenance or repair costs.

	 	8.	 	After joining HCC, you promptly will obtain two bona fide appraisals for the value of
your New Rochelle residence. After receiving those two appraisals, you will place the
home on the market at a fair market price. If your home has not sold after 90 days on the

 

 

	 	 	 	market, at the Executive’s option, HCC will purchase the home at the average price of the
two appraisals. The Executive must elect this option no later than 120 days after joining
HCC. The appraisals, marketing of the home and, if necessary, HCC’s purchase of the home,
must be completed within six months of your joining HCC.

	 	9.	 	The Company will provide transportation for you and your family at the time of the
move by air transportation (First Class). At the time of the move, if you drive your
family to Houston, you will be paid daily expenses of $400 not to exceed a total of $2000.
If air transportation is chosen as the travel method, please contact the Company’s
Corporate Travel Department for assistance with making reservations. Eight days advance
notice is required.

Before any reimbursement is made under this Relocation Policy and Reimbursement Agreement, you will
be required to sign a Promissory Note requiring you to reimburse the Company for all expenses paid
by the Company and all payments to you (including any amounts withheld for taxes), if you should
voluntarily leave the employment of the Company before December 31, 2009 (unless for Good Reason or
Special Reason as defined in the employment Agreement).

You understand and agree that the Company’s agreement to pay certain relocation costs and expenses
is contingent upon your relocation to Houston, no later than July 1, 2009, as well as your
continued employment with the Company until at least December 31, 2009. You further understand and
agree that should you voluntarily leave the Company’s employment before December 31, 2009 (unless
for Good Reason as defined in the Employment Agreement), you must repay the Company all expenses
paid by the Company and all payments to you (including the tax gross-up payment and any amounts
withheld for taxes) in connection with the relocation.

You further agree and authorize the Company to withhold wages, expense reimbursements, unused
earned paid time off, benefits and any other monies or property due you in order to satisfy any
repayment obligation.

In order to receive relocation benefits, the Relocation Policy and Reimbursement Agreement,
together with the Employment Agreement, must be signed and returned to the General Counsel via
e-mail (rrinicella@hcc.com) or facsimile transmission (713-744-9648).

I have read, understand, and agree to abide by the terms of this Agreement.

	 	 	 	 	 
	Signature:

	 	/s/ William T. Whamond
 

	 	Date: April 28, 2009  
	 

	 	William T. Whamondexv10w1

Exhibit 10.1

Execution Copy

DELPHI FINANCIAL GROUP, INC.

3,000,000 Shares

Class A Common Stock

UNDERWRITING AGREEMENT

April 28, 2009

Barclays Capital Inc.

745 Seventh Avenue

New York, New York 10019

Ladies and Gentlemen:

          Delphi Financial Group, Inc., a Delaware corporation (the “Company”), proposes to sell
3,000,000 shares (the “Firm Stock”) of the Company’s Class A common stock, par value $0.01 per
share (the “Common Stock”). In addition, the Company proposes to grant to the underwriters (the
“Underwriters”) named in Schedule 1 attached to this agreement (this “Agreement”) an option to
purchase up to 450,000 additional shares of the Common Stock on the terms set forth in Section 2
(the “Option Stock”). The Firm Stock and the Option Stock, if purchased, are hereinafter
collectively called the “Stock.” This is to confirm the agreement concerning the purchase of the
Stock from the Company by the Underwriters. In the event only a single Underwriter is named in
Schedule 1, then all references to the “Underwriters” shall be deemed to mean and refer to such
Underwriter, mutatis mutandis.

          1. Representations, Warranties and Agreements of the Company. The Company represents,
warrants and agrees that:

     (a) A registration statement on Form S-3 relating to the Stock (i) has been prepared by
the Company in conformity with the requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and the rules and regulations (together, the “Rules and
Regulations”) of the Securities and Exchange Commission (the “Commission”) thereunder; (ii)
has been filed with the Commission under the Securities Act; and (iii) is effective under
the Securities Act. Copies of such registration statement and any amendment thereto have
been delivered by the Company to Barclays Capital Inc. as the representative (“you” or the
“Representative”) of the Underwriters. As used in this Agreement:

     (i) “Applicable Time” means April 28, 2009 at 9:03 a.m. (New York City time);

     (ii) “Effective Date” means any date as of which any part of such registration
statement relating to the Stock became, or is deemed to have become, effective under
the Securities Act in accordance with the Rules and Regulations;

 

2

     (iii) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as
defined in Rule 405 of the Rules and Regulations) prepared by or on behalf of the
Company or used or referred to by the Company in connection with the offering of the
Stock;

     (iv) “Preliminary Prospectus” means any preliminary prospectus relating to the
Stock included in such registration statement or filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations, including any preliminary prospectus
supplement thereto relating to the Stock;

     (v) “Pricing Disclosure Package” means, as of the Applicable Time, the most
recent Preliminary Prospectus, together with the information included in Schedule 4
hereto and each Issuer Free Writing Prospectus filed or used by the Company on or
before the Applicable Time, other than a road show that is an Issuer Free Writing
Prospectus under Rule 433 of the Rules and Regulations;

     (vi) “Prospectus” means the final prospectus relating to the Stock, including
any prospectus supplement thereto relating to the Stock, as filed with the
Commission pursuant to Rule 424(b) of the Rules and Regulations; and

     (vii) “Registration Statement” means, collectively, the various parts of such
registration statement, each as amended as of the Effective Date for such part,
including any Preliminary Prospectus or the Prospectus and all exhibits to such
registration statement.

Any reference to any Preliminary Prospectus or the Prospectus shall be deemed to refer to
and include the documents incorporated by reference therein pursuant to Form S-3 under the
Securities Act as of the date of such Preliminary Prospectus or the Prospectus, as the case
may be, any reference to the Registration Statement shall be deemed to refer to and include
the documents incorporated by reference therein pursuant to Form S-3 under the Securities
Act as of the date of this Agreement; and all references to information that is “included”
or “contained” in any Preliminary Prospectus, the Prospectus, the Registration Statement or
the Pricing Disclosure Package (and any similar references) shall mean and include all
information that is incorporated by reference therein pursuant to Form S-3 under the
Securities Act. Any reference to the “most recent Preliminary Prospectus” shall be deemed
to refer to the latest Preliminary Prospectus included in the Registration Statement or
filed pursuant to Rule 424(b) prior to or on the date hereof. Any reference to any
amendment or supplement to any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include any document filed under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), after the date of such Preliminary Prospectus or the
Prospectus, as the case may be, and incorporated by reference in such Preliminary Prospectus
or the Prospectus, as the case may be; and any reference to any amendment to the
Registration Statement shall be deemed to refer to any document filed under the Exchange Act
after the date of this Agreement that is incorporated by reference in the Registration
Statement. The Commission has not issued any order preventing or suspending the use of any
Preliminary Prospectus or the Prospectus or suspending the effectiveness of the Registration
Statement, and no proceeding or examination for such

 

3

purpose has been instituted or, to the Company’s knowledge, threatened by the Commission.
The Commission has not notified the Company of any objection to the use of the form of the
Registration Statement.

     (b) The Company has been since the time of initial filing of the Registration Statement
and continues to be a “well-known seasoned issuer” (as defined in Rule 405) eligible to use
Form S-3 for the offering of the Stock, including not having been an “ineligible
issuer” (as defined in Rule 405) at any such time or date. The Registration Statement is an
“automatic shelf registration statement” (as defined in Rule 405) and was filed not earlier
than the date that is three years prior to the applicable Delivery Date (as defined in
Section 4).

     (c) The Registration Statement conformed and will conform in all material respects on
the Effective Date and on the applicable Delivery Date, and any amendment to the
Registration Statement filed after the date hereof will conform in all material respects
when filed, to the requirements of the Securities Act and the Rules and Regulations. The
most recent Preliminary Prospectus conformed, and the Prospectus will conform, in all
material respects when filed with the Commission pursuant to Rule 424(b) and on the
applicable Delivery Date to the requirements of the Securities Act and the Rules and
Regulations. The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus conformed, and any further documents so incorporated will conform, when filed
with the Commission, in all material respects to the requirements of the Exchange Act or the
Securities Act, as applicable, and the rules and regulations of the Commission thereunder.

     (d) The Registration Statement did not, as of the Effective Date, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided that no representation
or warranty is made as to information contained in or omitted from the Registration
Statement in reliance upon and in conformity with written information furnished to the
Company through the Representative by or on behalf of any Underwriter specifically for
inclusion therein, which information is specified in Section 8(e).

     (e) The Prospectus will not, as of its date and on the applicable Delivery Date,
contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that no representation or
warranty is made as to information contained in or omitted from the Prospectus in reliance
upon and in conformity with written information furnished to the Company through the
Representative by or on behalf of any Underwriter specifically for inclusion therein, which
information is specified in Section 8(e).

     (f) The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus did not, and any further documents filed and incorporated by reference therein
will not, when filed with the Commission, contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to

 

4

make the statements therein, in the light of the circumstances under which they were
made, not misleading.

     (g) The Pricing Disclosure Package did not, as of the Applicable Time, contain an
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided that no representation or warranty is made as to information contained
in or omitted from the Pricing Disclosure Package in reliance upon and in conformity with
written information furnished to the Company through the Representative by or on behalf of
any Underwriter specifically for inclusion therein, which information is specified in
Section 8(e).

     (h) Each Issuer Free Writing Prospectus (including, without limitation, any road show
that is a free writing prospectus under Rule 433), when considered together with the Pricing
Disclosure Package as of the Applicable Time, did not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading.

     (i) Each Issuer Free Writing Prospectus conformed or will conform in all material
respects to the requirements of the Securities Act and the Rules and Regulations on the date
of first use, and the Company has complied with any filing requirements applicable to such
Issuer Free Writing Prospectus pursuant to the Rules and Regulations. The Company has not
made any offer relating to the Stock that would constitute an Issuer Free Writing Prospectus
without the prior written consent of the Representative (such consent not to be unreasonably
delayed or withheld). The Company has retained in accordance with the Rules and Regulations
all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the
Rules and Regulations.

     (j) Each of the Company and its Significant Subsidiaries (as defined below) has been
duly incorporated, organized or formed and is validly existing in good standing under the
laws of the jurisdiction of its incorporation, organization or formation, with full power
and authority to own, lease and operate its properties and conduct its business; and each of
the Company and its Significant Subsidiaries is duly qualified to do business and is in good
standing in each jurisdiction in which the character of the business conducted by it or the
location of the properties owned, leased or operated by it make such qualification
necessary, except where the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect
on the condition (financial or otherwise), results of operations or business of the Company
and its subsidiaries taken as a whole or a material adverse effect on the performance by the
Company of this Agreement (a “Material Adverse Effect”). The Company does not have any
subsidiaries or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Exhibit 21 to the Company’s Annual Report on
Form 10-K for the most recent fiscal year. None of the subsidiaries of the Company (other
than the Significant Subsidiaries) is a “significant subsidiary” (as defined in Rule 405).

 

5

     (k) The authorized, issued and outstanding Class A Common Stock, Class B common stock,
par value $0.01 per share (the “Class B Common Stock”), and other capital stock of the
Company is as set forth in each of the most recent Preliminary Prospectus and the Prospectus
(except for subsequent issuances, if any, of Class A Common Stock or Class B Common Stock
pursuant to employee or director stock option or stock purchase plans or pursuant to the
exercise of options referred to in the most recent Preliminary Prospectus and the
Prospectus). The shares of issued and outstanding Class A Common Stock and Class B Common
Stock have been duly authorized and validly issued and are fully paid and non-assessable,
conform to the descriptions thereof contained in the most recent Preliminary Prospectus and
the Prospectus and were issued in compliance with federal and state securities laws; none of
the outstanding shares of Class A Common Stock or Class B Common Stock was issued in
violation of any preemptive rights, resale rights, rights of first refusal or other similar
rights; and no capital stock of the Company is outstanding other than shares of Class A
Common Stock and Class B Common Stock. All of the Company’s options, warrants and other
rights to purchase or exchange any securities for shares of Class A Common Stock, Class B
Common Stock or other capital stock have been duly authorized and validly issued, conform to
the description thereof contained in the most recent Preliminary Prospectus and the
Prospectus and were issued in compliance with federal and state securities laws. All of the
outstanding shares of capital stock of each Significant Subsidiary of the Company that is a
corporation have been duly authorized and validly issued and are fully paid and
non-assessable. All of the outstanding shares of capital stock, partnership interests or
other ownership interests of each Significant Subsidiary of the Company are owned directly
or indirectly by the Company, free and clear of any claim, lien, encumbrance, security
interest, restriction upon voting or transfer, preemptive rights or any other claim of any
third party (collectively, “Liens”), except such Liens as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     (l) The shares of the Stock to be issued and sold by the Company to the Underwriters
hereunder have been duly authorized and, upon payment and delivery in accordance with this
Agreement, will be validly issued, fully paid and non-assessable, will conform to the
description thereof contained in the most recent Preliminary Prospectus and the Prospectus,
will be issued in compliance with federal and state securities laws and will be free of
statutory and contractual preemptive rights, rights of first refusal and similar rights.

     (m) The Company has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement. This Agreement has been duly and validly
authorized, executed and delivered by the Company.

     (n) None of the execution, delivery and performance of this Agreement by the Company,
the issuance, sale and delivery of the Stock by the Company, compliance by the Company with
any of the provisions of this Agreement nor the application of the proceeds from the sale of
the Stock as described under “Use of Proceeds” in the most recent Preliminary Prospectus and
the Prospectus will (i) conflict with or result in a breach or violation of any agreement,
indenture or other instrument to which the

 

6

Company or any of its subsidiaries is a party or by which any of them is bound, or to
which any of their properties is subject; (ii) result in the creation or imposition of any
lien, charge, claim or encumbrance upon any property or asset of the Company or any of its
subsidiaries; (iii) result in a breach or violation of, or constitute a default under, the
certificate of incorporation, by-laws, partnership agreement or other organizational
documents of the Company or any of its subsidiaries; or (iv) violate any law, rule,
administrative regulation or decree of any court or any governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their respective
properties, except, with respect to clauses (i), (ii) and (iv), conflicts or violations that
would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.

     (o) No permit, consent, approval, authorization or order of any court, governmental
agency or body or financial institution is required for the issue and sale of the Stock, the
execution, delivery and performance of this Agreement by the Company, or the application of
the proceeds from the sale of the Stock as described under “Use of Proceeds” in the most
recent Preliminary Prospectus and the Prospectus, except for the registration of the Stock
under the Securities Act and such consents, approvals, authorizations, orders, filings,
registrations or qualifications as may be required under the Exchange Act and applicable
state or foreign securities laws in connection with the purchase and sale of the Stock
through the Underwriters.

     (p) There are no contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company owned or to
be owned by such person or to require the Company to include such securities in the
securities registered pursuant to the Registration Statement or in any securities being
registered pursuant to any other registration statement filed by the Company under the
Securities Act.

     (q) The Company has not sold or issued any securities that would be integrated with the
offering of the Stock contemplated by this Agreement pursuant to the Securities Act, the
Rules and Regulations or the interpretations thereof by the Commission.

     (r) Since the date of the latest audited financial statements included or incorporated
by reference in the most recent Preliminary Prospectus, neither the Company nor any of its
subsidiaries has (i) sustained any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, (ii) issued or granted any
securities (other than (A) the Stock and (B) shares of capital stock issued pursuant to
employee benefit plans, qualified stock option plans or other employee compensation plans
existing on the date hereof or pursuant to currently outstanding options, warrants or rights
not issued under one of those plans), (iii) incurred any material liability or obligation,
direct or contingent, other than liabilities and obligations that were incurred in the
ordinary course of business, (iv) entered into any material transaction not in the ordinary
course of business, or (v) declared or paid any dividend on its capital

 

7

stock (other than regular cash dividends on the Class A Common Stock or the Company’s
Class B Common Stock), and since such date, there has not been any change in the capital
stock or long-term debt of the Company or any of its subsidiaries or any adverse change, or
any development involving a prospective adverse change, in or affecting the condition
(financial or otherwise), results of operations, business or prospects of the Company and
its subsidiaries taken as a whole, in each case in this paragraph (r) (except clause (v)
hereof) as would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     (s) The financial statements (including the related notes and supporting schedules)
included or incorporated by reference in the most recent Preliminary Prospectus and the
Prospectus present fairly in all material respects the financial condition, results of
operations and cash flows of the entities purported to be shown thereby at the dates and for
the periods indicated (subject to year-end adjustments in the case of unaudited interim
financial statements) and have been prepared in accordance with U.S. generally accepted
accounting principles applied on a consistent basis throughout the periods indicated and
conform in all material respects with such generally accepted accounting principles, except
as otherwise noted therein; and the supporting schedules included or incorporated by
reference in the Registration Statement present fairly in all material respects the
information required to be stated therein.

     (t) Any pro forma financial statements that may be included or incorporated by
reference in the most recent Preliminary Prospectus or the Prospectus include assumptions
that provide a reasonable basis for presenting the significant effects directly attributable
to the transactions and events described therein, the related pro forma adjustments give
appropriate effect to those assumptions, and the pro forma adjustments reflect the proper
application of those adjustments to the historical financial statement amounts in the pro
forma financial statements included or incorporated by reference in the most recent
Preliminary Prospectus or the Prospectus, as the case may be. Any pro forma financial
statements included or incorporated by reference in the most recent Preliminary Prospectus
or the Prospectus comply as to form in all material respects with the applicable
requirements of Regulation S-X under the Act.

     (u) Ernst & Young LLP, who have reported on certain financial statements of the Company
included in the most recent Preliminary Prospectus and the Prospectus and whose report
appears in the most recent Preliminary Prospectus and the Prospectus or is incorporated by
reference therein, are independent public accountants as required by the Securities Act and
the rules and regulations thereunder, and were independent public accountants as required by
the Securities Act and the rules and regulations thereunder during the periods covered by
the financial statements on which they reported contained or incorporated by reference in
the most recent Preliminary Prospectus and the Prospectus.

     (v) The statistical and market-related data, if any, included in the most recent
Preliminary Prospectus and the Prospectus and the consolidated financial statements of the
Company and its subsidiaries included or incorporated by reference in the most recent

 

8

Preliminary Prospectus and the Prospectus are based on or derived from sources that the
Company believes to be reliable and accurate in all material respects.

     (w) Neither the Company nor any subsidiary is, and as of the applicable Delivery Date
and, after giving effect to the offer and sale of the Stock and the application of the
proceeds therefrom as described under “Use of Proceeds” in the most recent Preliminary
Prospectus and the Prospectus, none of them will be, (i) an “investment company” within the
meaning of such term under the Investment Company Act of 1940, as amended (the “Investment
Company Act”), and the rules and regulations of the Commission thereunder or (ii) a
“business development company” (as defined in Section 2(a)(48) of the Investment Company
Act).

     (x) There is no litigation or governmental proceeding to which the Company or any of
its subsidiaries is a party or to which any property or assets of the Company or any of its
subsidiaries is subject or which is pending or, to the knowledge of the Company,
contemplated or threatened against the Company or any of its subsidiaries that would,
individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

     (y) There are no statutes or regulations, legal or governmental proceedings or
contracts or other documents that would be required to be described in the Registration
Statement, the most recent Preliminary Prospectus or the Prospectus (in each case including,
without limitation, the documents incorporated by reference therein) or, in the case of
documents, to be filed as exhibits to the Registration Statement, that are not described and
filed as required.

     (z) To the knowledge of the Company, after due inquiry, no labor disturbance by or
dispute with the employees of the Company or any of its subsidiaries exists or is imminent
that would reasonably be expected to have a Material Adverse Effect.

     (aa) (i) Except as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect, (i) each “employee benefit plan” (within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”))
for which the Company or any of its subsidiaries would have any liability, including, but
not limited to, any liability relating to the Company or any of its subsidiaries being a
member of a “Controlled Group” (defined as any organization which is a member of a
controlled group of corporations within the meaning of Section 414 of the Internal Revenue
Code of 1986, as amended (the “Code”) (each, a “Plan”)), has been maintained in compliance
with its terms and with the requirements of all applicable statutes, rules and regulations
including ERISA and the Code; (ii) no prohibited transaction, within the meaning of Section
406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan excluding
transactions effected pursuant to a statutory or administrative exemption; (iii) with
respect to each Plan subject to Title IV of ERISA (A) no “reportable event” (within the
meaning of Section 4043(c) of ERISA) has occurred or is reasonably expected to occur, (B)
there has been no failure to satisfy the minimum funding standard under Section 302 of ERISA
or Section 412 of the Code and (C) neither the Company or any member of its Controlled Group
has incurred, or

 

9

reasonably expects to incur, any liability under Title IV of ERISA (other than
contributions to the Plan or premiums to the PBGC in the ordinary course and without
default) in respect of a Plan (including a “multiemployer plan”, within the meaning of
Section 4001(c)(3) of ERISA); and (iv) each Plan that is intended to be qualified under
Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or by
failure to act, which would cause the loss of such qualification.

     (bb) The Company and each of its subsidiaries have filed all Federal and all material
state, local and foreign tax returns required to be filed through the date hereof, subject
to permitted extensions, which returns are complete and correct in all material respects,
and have paid all taxes due, and neither the Company nor any subsidiary is in default in the
payment of any taxes which were payable pursuant to said returns or any assessments with
respect thereto, except for any such taxes or assessments which are being contested in good
faith by appropriate proceedings and for which appropriate reserves, if any, have been
established in accordance with U.S. generally accepted accounting principles and statutory
accounting principles, and no tax deficiency has been determined adversely to the Company or
any of its subsidiaries, nor does the Company have any knowledge of any tax deficiencies
that have been, or could reasonably be expected to be, asserted against the Company that
would, in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (cc) Neither the Company nor any of its subsidiaries (i) is in violation of its
certificate of incorporation or by-laws or other organizational documents, (ii) is in
default, and no event has occurred which, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or
condition contained in any indenture, mortgage, deed of trust, loan agreement, license or
other agreement or instrument to which it is a party or by which it is bound or to which any
of its properties or assets is subject or (iii) is in violation of any law, ordinance, rule,
regulation or order of any court or governmental agency or body having jurisdiction over it
or its property or assets, except in the case of clauses (ii) and (iii), to the extent any
such conflict, breach, violation or default would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     (dd) The Company and, to the knowledge of the Company, its officers and directors are
in compliance in all material respects with the Sarbanes-Oxley Act of 2002 and the rules and
regulations promulgated in connection therewith.

     (ee) Each of the Company and its subsidiaries hold such permits, licenses, patents,
franchises, certificates of need, authorities and other approvals or authorizations from
governmental or regulatory authorities (including, without limitation, insurance licenses
from the insurance regulatory agencies of the various states where it conducts business (the
“Insurance Licenses”)) (collectively, the “Permits”) which are necessary under applicable
law (i) to the conduct of its insurance businesses as presently operated and (ii) to own its
properties and conduct its businesses in the manner described in the most recent Preliminary
Prospectus and the Prospectus; each of the Company and its subsidiaries has fulfilled and
performed all of its obligations necessary to maintain the Permits; there is no past,
pending or, to the knowledge of the Company or any of its

 

10

subsidiaries, threatened action, suit, proceeding or investigation that may reasonably
be expected to lead to the revocation, termination or suspension of any Permit (including,
without limitation, the Insurance Licenses); except, in each of the foregoing cases, as to
Insurance Licenses, the failure of which to obtain or maintain would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect; and no insurance
regulatory agency or body has issued any order or decree (specifically applicable to one or
more of the Insurance Subsidiaries as opposed to insurance companies generally) impairing,
restricting or prohibiting the payment of dividends by any of the Company’s subsidiaries to
their respective parent companies. Neither the Company nor any of its subsidiaries has
received notice of any revocation or modification of any such Permits or has any reason to
believe that any such Permits will not be renewed in the ordinary course.

     (ff) The Company and its subsidiaries own or possess, or have the ability to acquire,
all patents, patent rights, licenses, inventions, copyrights, know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures), trademarks, service marks and trade names currently employed by them
in connection with the business now operated by them, except where the failure to own,
possess or have the ability to acquire such patents, patent rights, licenses, inventions,
copyrights, know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures), trademarks, service marks
and trade names would not, individually or in the aggregate, have a Material Adverse Effect,
and none of the Company nor its subsidiaries has received any notice of infringement of or
conflict with asserted rights of others with respect to any of the foregoing which,
individually or in the aggregate, if subject to any unfavorable decision, ruling or finding,
would have a Material Adverse Effect.

     (gg) The Company and its subsidiaries (i) are in compliance with any and all applicable
foreign, Federal, state and local laws and regulations relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other
approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (iii) are in compliance with all terms and conditions of any such permit,
license or approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with the terms
and conditions of such permits, licenses or approvals would not, individually or in the
aggregate, have a Material Adverse Effect.

     (hh) Neither the Company nor any of its subsidiaries, nor, to the knowledge of the
Company, any director, officer, agent, employee or other person acting on behalf of the
Company or any of its subsidiaries, has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) violated or is in violation of any
provision of the U.S. Foreign Corrupt Practices Act of 1977; or (iv) made any bribe or other
unlawful payment.

 

11

     (ii) The operations of the Company and its subsidiaries are and have been conducted at
all times in compliance with applicable financial recordkeeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all applicable jurisdictions, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or
enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its subsidiaries with respect to
the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

     (jj) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not
directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.

     (kk) The Company has not distributed and, prior to the later to occur of any Delivery
Date and completion of the distribution of the Stock, will not distribute any offering
material in connection with the offering and sale of the Stock other than any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus to which the Representative
has consented in accordance with Section 1(i) or 5(a)(vi) (such consent not to be
unreasonably withheld or delayed).

     (ll) The Company has not taken and will not take, directly or indirectly, any action
designed to or that has constituted or that could reasonably be expected to cause or result
in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the shares of the Stock.

     (mm) The Stock has been approved for listing, subject to official notice of issuance,
on the New York Stock Exchange (the “Exchange”).

     (nn) The Company and its subsidiaries maintain systems of internal control over
financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) that
have been designed by, or under the supervision of, their respective principal executive and
principal financial officers, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in
accordance with U.S. generally accepted accounting principles and statutory accounting
principles. The Company and its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with U.S.
generally accepted accounting principles and statutory accounting practices and to maintain
accountability for assets; (iii) access to assets is permitted only

 

12

in accordance with management’s general or specific authorization and (iv) recorded
assets are compared with existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

     (oo) The Company and its subsidiaries have established and maintain disclosure controls
and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that have
been designed to ensure that material information relating to the Company and its
subsidiaries required to be disclosed in the reports the Company files or submits under the
Exchange Act is made known to the Company’s principal executive officer and principal
financial officer by others within those entities; and such disclosure controls and
procedures are effective in all material respects to perform the functions for which they
were established.

     (pp) Since the date of the latest audited financial statements incorporated by
reference in the most recent Preliminary Prospectus, (i) the Company has not been advised of
any fraud, whether or not material, that involves management or other employees who have a
significant role in the internal controls of the Company and each of its subsidiaries, and
(ii) there have been no significant changes in internal controls or in other factors that
would significantly affect internal controls, including any corrective actions with regard
to significant deficiencies and material weaknesses.

     (qq) The Company and each of its subsidiaries have good and marketable title in fee
simple to all real property and good and marketable title to all personal property owned by
them, in each case free and clear of all liens, encumbrances and defects, except where the
failure to have such good and marketable title or the existence of any such liens,
encumbrances or defects would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. All assets held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as do not materially interfere with the use made and proposed to be made of such
assets by the Company and its subsidiaries, except where the failure of any such leases to
be valid, subsisting or enforceable or the existence of such exceptions would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (rr) The Company is not required to be licensed as an insurance company; Reliance
Standard Life Insurance Company of Texas (“RSLIC-Texas”), Reliance Standard Life Insurance
Company (“RSLIC”), First Reliance Standard Life Insurance Company (“FRSLIC”), Safety First
Insurance Company (“SFIC”) and Safety National Casualty Corporation (“SNCC”; RSLIC-Texas,
RSLIC, FRSLIC, SFIC and SNCC are herein called, collectively, the “Insurance Subsidiaries”,
and RSLIC-Texas, RSLIC, SNCC and SIG Holdings, Inc. are herein called, collectively, the
“Significant Subsidiaries”) are each duly licensed as insurers under the insurance laws and
regulations of Texas, Illinois, New York, Illinois and Missouri, respectively; and the
Insurance Subsidiaries have filed with the appropriate insurance regulatory authorities all
reports, documents and other information required to be filed under the insurance laws of
Texas, Illinois, New York, Illinois and Missouri, respectively, except as to filings the

 

13

failure of which to make would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     (ss) All reinsurance ceded treaties, contracts, agreements and arrangements to which
the Company or any of the Insurance Subsidiaries is a party are in full force and effect,
other than those that, by their terms, have expired or otherwise terminated, or those the
failure of which to be in full force and effect would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, and none of the Company or any of
its Insurance Subsidiaries is in violation of, or in default in the performance, observance
or fulfillment of, any material obligation agreement, covenant or condition contained
therein, which violation or default would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; none of the Company or any of its Insurance
Subsidiaries has received any notice from any of the other parties to such treaties,
policies, contracts, agreements or arrangements that such other party intends not to perform
in any material respect such treaty, contract, agreements or arrangements or will be unable
to perform such treaty, contract, agreement or arrangement where the failure to perform
would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     (tt) The statutory annual and quarterly statements of each of the Insurance
Subsidiaries and the statutory balance sheets and income statements included in such
statutory annual and quarterly statements most recently filed in any state have been
prepared in conformity with required or permitted statutory accounting principles or
practices consistently followed, except as may otherwise be indicated in the notes thereto,
and present fairly in all material respects the statutory financial position of each
Insurance Subsidiary as at the dates thereof, and on a statutory basis for the periods
covered thereby.

     (uu) The Company and each of its subsidiaries carry, or are covered by, liability
insurance and insurance against physical damage to their properties from insurers of
recognized financial responsibility in such amounts and covering such risks as the Company
believes to be adequate for the conduct of the business of the Company and its subsidiaries,
taken as a whole. Except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, (i) the Company and its subsidiaries are in
compliance with the terms of such policies in all material respects; (ii) neither the
Company nor any of its subsidiaries has received notice from any insurer or agent of such
insurer that capital improvements or other expenditures are required or necessary to be made
in order to continue such insurance; and (iii) there are no claims by the Company or any of
its subsidiaries under any such policy or instrument as to which any insurance company is
denying liability or defending under a reservation of rights clause.

     (vv) No relationship, direct or indirect, exists between or among the Company, on the
one hand, and the directors, officers, stockholders, customers or suppliers of the Company,
on the other hand, that is required to be described in the most recent Preliminary
Prospectus which is not so described.

 

14

     (ww) The statements set forth in the most recent Preliminary Prospectus and the
Prospectus under the captions “Description of Common Stock,” “Description of Preferred
Stock,” and “Dividend Policy,” insofar as they purport to describe the Class A Common Stock,
Class B Common Stock or the Company’s preferred stock, provisions of the Company’s charter
or bylaws or the provisions of the laws, regulations and other documents and legal matters
referred to therein, are accurate in all material respects.

     (xx) There are no contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company owned or to
be owned by such person or to require the Company to include such securities in the
securities registered pursuant to the Registration Statement or in any securities being
registered pursuant to any other registration statement filed by the Company under the
Securities Act.

     (yy) Neither the Company nor any of its subsidiaries is a party to any contract,
agreement or understanding with any person (other than this Agreement) that would give rise
to a valid claim against any of them or the Underwriters for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the Stock.

     (zz) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any of its affiliates has taken, directly or indirectly, any action designed to or
that has constituted or that would reasonably be expected to cause or result in the
stabilization or manipulation of the price of any security of the Company in connection with
the offering of the shares of the Stock; and, without limitation to the foregoing, neither
the Company nor any of its subsidiaries has, on or after the date of this Agreement,
purchased any Class A Common Stock or any other capital stock of the Company pursuant to the
Company’s previously announced share repurchase program or any similar program.

     (aaa) Neither the Company nor any subsidiary is in violation of or has received notice
of any violation with respect to any federal or state law relating to discrimination in the
hiring, promotion or pay of employees, any applicable federal or state wage and hour laws,
or any state law precluding the denial of credit due to the neighborhood in which a property
is situated, the violation of any of which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Affect.

     (bbb) The Class A Common Stock is an “actively-traded security” exempted from the
requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such
rule.

     (ccc) None of the proceeds from the sale of the Stock has been or will be paid to the
Underwriters (except for the payment of the commissions pursuant to this Agreement) or, to
the knowledge of the Company, to any affiliate of the Underwriters; and the Company is not
an “affiliate” (as defined in NASD Conduct Rule 2720) of any member of the Financial
Industry Regulatory Authority (“FINRA”).

 

15

          Any certificate signed by any officer of the Company and delivered to the Representative or
counsel for the Underwriters in connection with the offering of the Stock shall be deemed a
representation and warranty by the Company to each Underwriter as to matters covered thereby.

          2. Purchase of the Stock by the Underwriters. On the basis of the representations and
warranties contained in, and subject to the terms and conditions of, this Agreement, the Company
agrees to sell 3,000,000 shares of the Firm Stock to the several Underwriters, and each of the
Underwriters, severally and not jointly, agrees to purchase the number of shares of the Firm Stock
set forth opposite that Underwriter’s name in Schedule 1 hereto. The respective purchase
obligations of the Underwriters with respect to the Firm Stock shall be rounded among the
Underwriters to avoid fractional shares, as the Representative may determine.

          In addition, the Company grants to the Underwriters an option to purchase up to 450,000
additional shares of Option Stock. Such option is exercisable in the event that the Underwriters
sell more shares of Common Stock than the number of shares of Firm Stock in the offering and in
accordance with the procedures set forth in Section 4 hereof. Each Underwriter agrees, severally
and not jointly, to purchase the number of shares of Option Stock (subject to such adjustments to
eliminate fractional shares as the Representative may determine) that bears the same proportion to
the total number of shares of Option Stock to be sold on such Delivery Date as the number of shares
of Firm Stock set forth in Schedule 1 hereto opposite the name of such Underwriter bears to
the total number of shares of Firm Stock.

          The price of both the Firm Stock and any Option Stock purchased by the Underwriters shall be
$17.005625 per share; provided that the purchase price for any Option Stock to be delivered on the
applicable Delivery Date shall be reduced by an amount per share equal to any dividends or
distributions paid or payable on the Firm Stock but not payable on such Option Stock.

          The Company shall not be obligated to deliver any of the Firm Stock or Option Stock to be
delivered on the applicable Delivery Date, except upon payment for all such Stock to be purchased
on such Delivery Date as provided herein.

          3. Offering of Stock by the Underwriters. Upon authorization by the Representative of the
release of the Firm Stock, the several Underwriters propose to offer the Firm Stock for sale upon
the terms and conditions to be set forth in the Prospectus.

          4. Delivery of and Payment for the Stock. Delivery of and payment for the Firm Stock shall be
made at 10:00 A.M., New York City time, on May 1, 2009 or at such other date or place as shall be
determined by agreement between the Representative and the Company. This date and time are
sometimes referred to as the “Initial Delivery Date.” Delivery of the Firm Stock shall be made to
the Representative for the account of each Underwriter against payment by the several Underwriters
through the Representative and of the respective aggregate purchase prices of the Firm Stock being
sold by the Company of the purchase price by wire transfer in immediately available funds to the
accounts specified by the Company. Time shall be of the essence, and delivery at the time and place
specified pursuant to this Agreement is a further

 

16

condition of the obligation of each Underwriter hereunder. The Company shall deliver the Firm
Stock through the facilities of DTC unless the Representative shall otherwise instruct.

          The option granted in Section 2 will expire 30 days after the date of this Agreement and may
be exercised in whole or from time to time in part by written notice being given to the Company by
the Representative; provided that if such date falls on a day that is not a business day, the
option granted in Section 2 will expire on the next succeeding business day. Such notice shall set
forth the aggregate number of shares of Option Stock as to which the option is being exercised, the
names in which the shares of Option Stock are to be registered, the denominations in which the
shares of Option Stock are to be issued and the date and time, as determined by the Representative,
when the shares of Option Stock are to be delivered; provided, however, that this date and time
shall not be earlier than the Initial Delivery Date nor earlier than the second business day after
the date on which the option shall have been exercised nor later than the fifth business day after
the date on which the option shall have been exercised. Each date and time the shares of Option
Stock are delivered is sometimes referred to as an “Option Stock Delivery Date,” and the Initial
Delivery Date and any Option Stock Delivery Date are sometimes each referred to as a “Delivery
Date.”

          Delivery of the Option Stock by the Company and payment for the Option Stock by the several
Underwriters through the Representative shall be made at 10:00 A.M., New York City time, on the
date specified in the corresponding notice described in the preceding paragraph or at such other
date or place as shall be determined by agreement between the Representative and the Company. On
the Option Stock Delivery Date, the Company shall deliver or cause to be delivered the Option
Stock to the Representative for the account of each Underwriter against payment by the several
Underwriters through the Representative and of the respective aggregate purchase prices of the
Option Stock being sold by the Company to or upon the order of the Company of the purchase price
by wire transfer in immediately available funds to the accounts specified by the Company. Time
shall be of the essence, and delivery at the time and place specified pursuant to this Agreement is
a further condition of the obligation of each Underwriter hereunder. The Company shall deliver the
Option Stock through the facilities of DTC unless the Representative shall otherwise instruct.

          5. Further Agreements of the Company and the Underwriters. (a) The Company agrees:

     (i) To prepare the Prospectus in a form approved by the Representative and to file such
Prospectus pursuant to Rule 424(b) under the Securities Act not later than the Commission’s
close of business on the second business day following the execution and delivery of this
Agreement; to make no further amendment or any supplement to the Registration Statement or
the Prospectus prior to the last Delivery Date except as provided herein; to advise the
Representative, promptly after it receives notice thereof, of the time when any amendment or
supplement to the Registration Statement or the Prospectus has been filed and to furnish the
Representative with copies thereof; to file promptly all reports and any definitive proxy or
information statements required to be filed by the Company with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the
Prospectus and for so long as the delivery of a prospectus is required in connection with
the offering or sale of the Stock; to

 

17

advise the Representative, promptly after it receives notice thereof, of the issuance
by the Commission of any stop order or of any order preventing or suspending the use of the
Prospectus or any Issuer Free Writing Prospectus, of the suspension of the qualification of
the Stock for offering or sale in any jurisdiction, of the initiation or threatening of any
proceeding or examination for any such purpose, of any notice from the Commission objecting
to the use of the form of the Registration Statement or any post-effective amendment thereto
or of any request by the Commission for the amending or supplementing of the Registration
Statement, the Prospectus or any Issuer Free Writing Prospectus or for additional
information; and, in the event of the issuance of any stop order or of any order preventing
or suspending the use of the Prospectus or any Issuer Free Writing Prospectus or suspending
any such qualification, to use promptly its reasonable best efforts to obtain its
withdrawal;

     (ii) To pay the applicable Commission filing fees relating to the Stock within the time
required by Rule 456(b)(1) without regard to the proviso therein;

     (iii) To deliver promptly to the Representative such number of the following documents
as the Representative shall reasonably request: (A) conformed copies of the Registration
Statement as originally filed with the Commission and each amendment thereto (in each case
excluding exhibits other than this Agreement and the computation of per share earnings), (B)
each Preliminary Prospectus, the Prospectus and any amended or supplemented Prospectus, (C)
each Issuer Free Writing Prospectus and (D) any document incorporated by reference in any
Preliminary Prospectus or the Prospectus; and, if the delivery of a prospectus is required
at any time after the date hereof in connection with the offering or sale of the Stock or
any other securities relating thereto and if at such time any events shall have occurred as
a result of which the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made when
such Prospectus is delivered, not misleading, or, if for any other reason it shall be
necessary to amend or supplement the Prospectus or to file under the Exchange Act any
document incorporated by reference in the Prospectus in order to comply with the Securities
Act or the Exchange Act, to notify the Representative and, upon its request, to file such
document and to prepare and furnish without charge to each Underwriter and to any dealer in
securities as many copies as the Representative may from time to time reasonably request of
an amended or supplemented Prospectus that will correct such statement or omission or effect
such compliance;

     (iv) To file promptly with the Commission any amendment or supplement to the
Registration Statement or the Prospectus that may, in the judgment of the Company or the
Representative, be required by the Securities Act or requested by the Commission;

     (v) Prior to filing with the Commission any amendment or supplement to the Registration
Statement or the Prospectus, any document incorporated by reference in the Prospectus or any
amendment to any document incorporated by reference in the Prospectus, to furnish a copy
thereof to the Representative and counsel for the Underwriters and obtain the consent of the
Representative to the filing (such consent not to be unreasonably delayed or withheld);

 

 

18

     (vi) Not to make any offer relating to the Stock that would constitute an Issuer Free
Writing Prospectus without the prior written consent of the Representative (such consent not
to be unreasonably delayed or withheld).

     (vii) To comply with all applicable requirements of Rule 433 with respect to any Issuer
Free Writing Prospectus; and if at any time after the date hereof any events shall have
occurred as a result of which any Issuer Free Writing Prospectus, as then amended or
supplemented, would conflict with the information in the Registration Statement, the most
recent Preliminary Prospectus or the Prospectus or would include an untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, or,
if for any other reason it shall be necessary to amend or supplement any Issuer Free Writing
Prospectus, to notify the Representative and, upon its request, to file such document and to
prepare and furnish without charge to each Underwriter as many copies as the Representative
may from time to time reasonably request of an amended or supplemented Issuer Free Writing
Prospectus that will correct such conflict, statement or omission or effect such compliance;

     (viii) As soon as practicable after the Effective Date and in any event not later than
16 months after the date hereof, to make generally available to the Company’s security
holders and to deliver to the Representative an earnings statement of the Company and its
subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act
and the Rules and Regulations;

     (ix) Promptly from time to time to take such action as the Underwriters may reasonably
request to qualify the Stock for offering and sale under the securities or Blue Sky laws of
Canada and such other jurisdictions as the Underwriters may reasonably request, and to
maintain such qualifications in effect for as long as may be necessary to complete the
distribution of the Stock; provided that in connection therewith the Company shall not be
required to (i) qualify as a foreign corporation in any jurisdiction in which it would not
otherwise be required to so qualify, (ii) file a general consent to service of process in
any such jurisdiction or (iii) subject itself to taxation in any jurisdiction in which it
would not otherwise be subject.

     (x) For a period commencing on the date hereof and ending on the 60th day after the
date of the Prospectus (the “Lock-Up Period”), not to, directly or indirectly, (1) offer for
sale, sell, pledge or otherwise dispose of (or enter into any transaction or device that is
designed to, or could be expected to, result in the disposition by any person at any time in
the future of) any shares of Class A Common Stock or Class B Common Stock (collectively, the
“Common Stock”) or securities convertible into or exercisable or exchangeable for Common
Stock (other than the Stock and shares issued pursuant to employee benefit plans, qualified
stock option plans or other employee compensation plans existing on the date hereof), or
sell or grant options, rights or warrants with respect to any shares of Common Stock or
securities convertible into or exercisable or exchangeable for Common Stock (other than the
grant of options pursuant to option plans existing on the date hereof), (2) enter into any
swap or other derivatives transaction that transfers to another, in whole or in part, any of
the economic benefits or risks of

 

19

ownership of any shares of Common Stock, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Common Stock or other securities, in
cash or otherwise, (3) file or cause to be filed a registration statement, including any
amendments, with respect to the registration of any shares of Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock or any other securities of
the Company or (4) publicly disclose the intention to do any of the foregoing, in each case
without the prior written consent of Barclays Capital Inc. on behalf of the Underwriters,
and to cause each officer, director and stockholder of the Company set forth on Schedule
3 hereto to furnish to the Representative, prior to the Initial Delivery Date, a letter
or letters, substantially in the form of Exhibit A hereto (the “Lock-Up
Agreements”).

     (xi) To apply the net proceeds from the sale of the Stock being sold by the Company as
set forth in the Preliminary Prospectus and the Prospectus;

          (b) Each Underwriter severally agrees that such Underwriter shall not include any “issuer
information” (as defined in Rule 433) in any “free writing prospectus” (as defined in Rule 405)
used or referred to by such Underwriter without the prior consent of the Company (any such issuer
information with respect to whose use the Company has given its consent, “Permitted Issuer
Information”); provided that (i) no such consent shall be required with respect to any such issuer
information contained in any document filed by the Company with the Commission prior to the use of
such free writing prospectus and (ii) “issuer information,” as used in this Section 5(b), shall not
be deemed to include information prepared by or on behalf of such Underwriter on the basis of or
derived from issuer information.

          6. Expenses. The Company agrees, whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, to pay all costs, expenses, fees and
taxes incurred by the Company and, to the extent expressly provided in this Section 6 and in
Sections 8 and 10, incurred by the Underwriters incident to and in connection with (a) the
authorization, issuance, sale and delivery of the Stock and any stamp duties or other taxes payable
in that connection, and the preparation and printing of certificates for the Stock; (b) the
preparation, printing and filing under the Securities Act of the Registration Statement (including
any exhibits thereto), any Preliminary Prospectus, the Prospectus, any Issuer Free Writing
Prospectus and any amendment or supplement thereto; (c) the distribution of the Registration
Statement (including any exhibits thereto), any Preliminary Prospectus, the Prospectus, any Issuer
Free Writing Prospectus and any amendment or supplement thereto, or any document incorporated by
reference therein, all as provided in this Agreement; (d) the production and distribution of this
Agreement and any other related documents in connection with the offering, purchase, sale and
delivery of the Stock; (e) any required review by the Financial Industry Regulatory Authority (the
“FINRA”) of the terms of sale of the Stock (including related reasonable and reasonably documented
fees and expenses of counsel to the Underwriters); (f) the listing of the Stock on the New York
Stock Exchange; (g) the qualification of the Stock under the securities laws of the several
jurisdictions as provided in Section 5(a)(ix) and the preparation, printing and distribution of a
Blue Sky Memorandum (including related reasonable and reasonably documented fees and expenses of
counsel to the Underwriters not to exceed $5,000); (h) the preparation, printing and distribution
of one or more versions of the Preliminary Prospectus and the Prospectus for distribution in
Canada, often in the form of a Canadian

 

20

“wrapper”; (i) the investor presentations on any “road show” undertaken in connection with the
marketing of the Stock, including, without limitation, expenses associated with any electronic
roadshow, travel and lodging expenses of the representatives and officers of the Company and the
cost of any aircraft chartered in connection with the road show; and (j) all other costs and
expenses incident to the performance of the obligations of the Company under this Agreement;
provided that, except as expressly provided in this Section 6 and in Sections 8 and 10, the
Underwriters shall pay their own costs and expenses, including the costs and expenses of their
counsel, any transfer taxes on the Stock which they may sell and the expenses of advertising any
offering of the Stock made by the Underwriters.

          7. Conditions of Underwriters’ Obligations. The respective obligations of the Underwriters
hereunder are subject to the accuracy, when made and on the date of the Prospectus and on each
Delivery Date, of the representations and warranties of the Company contained herein, to the
performance by the Company of its obligations hereunder, and to each of the following additional
terms and conditions:

     (a) The Prospectus shall have been timely filed with the Commission in accordance with
Section 5(a)(i); the Company shall have complied with all filing requirements applicable to
any Issuer Free Writing Prospectus used or referred to after the date hereof; no stop order
suspending the effectiveness of the Registration Statement or preventing or suspending the
use of the Prospectus or any Issuer Free Writing Prospectus shall have been issued and no
proceeding or examination for such purpose shall have been initiated or threatened by the
Commission; any request of the Commission for inclusion of additional information in the
Registration Statement or the Prospectus or any document incorporated by reference therein
or otherwise shall have been complied with; and the Commission shall not have notified the
Company of any objection to the use of the form of the Registration Statement.

     (b) No Underwriter shall have discovered and disclosed to the Company on or prior to
such Delivery Date that the Registration Statement, the Prospectus or the Pricing Disclosure
Package, or any amendment or supplement thereto, contains an untrue statement of a fact
which, in the reasonable opinion of Sidley Austin LLP, counsel for the Underwriters, is
material or omits to state a fact which, in the opinion of such counsel, is material and is
required to be stated therein or is necessary to make the statements therein not misleading.

     (c) All corporate proceedings and other legal matters incident to the authorization,
form and validity of this Agreement, the Stock, the Registration Statement, the Prospectus
and any Issuer Free Writing Prospectus, and all other legal matters relating to this
Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Underwriters, and the Company shall have furnished to
such counsel all documents and information that they may reasonably request to enable them
to pass upon such matters.

     (d) Cahill Gordon & Reindel LLP shall have furnished to the Underwriters its written
opinion and letter, as counsel to the Company, addressed to the Underwriters and delivered
and dated such Delivery Date, in form and substance reasonably satisfactory to

 

21

the Underwriters, substantially in the forms attached hereto as Exhibit B-1 and Exhibit
B-2.

     (e) Chad W. Coulter, Esq., General Counsel of the Company and Jeffrey Otto, Esq.,
General Counsel of Safety National Casualty Corporation, as applicable, shall have furnished
their written opinions addressed to the Underwriters and delivered and dated such Delivery
Date, in form and substance reasonably satisfactory to the Underwriters, substantially in
the form attached hereto as Exhibit B-3.

     (f) The Representative shall have received from Sidley Austin LLP, counsel for the
Underwriters, such opinion or opinions, dated such Delivery Date, with respect to the
issuance and sale of the Stock, the Registration Statement, the Prospectus and the Pricing
Disclosure Package and other related matters as the Representative may reasonably require,
and the Company shall have furnished to such counsel such documents as they reasonably
request for the purpose of enabling them to pass upon such matters.

     (g) At the time of execution of this Agreement, the Representative shall have received
from Ernst & Young LLP a letter, in form and substance reasonably satisfactory to the
Representatives, addressed to the Underwriters and dated the date hereof (i) confirming that
they are independent public accountants within the meaning of the Securities Act and are in
compliance with the applicable requirements relating to the qualification of accountants
under Rule 2-01 of Regulation S-X of the Commission, and (ii) stating, as of the date hereof
(or, with respect to matters involving changes or developments since the respective dates as
of which specified financial information is given in the most recent Preliminary Prospectus,
as of a date not more than three days prior to the date hereof), the conclusions and
findings of such firm with respect to the financial information and other matters ordinarily
covered by accountants’ “comfort letters” to underwriters in connection with registered
public offerings.

     (h) With respect to the letter of Ernst & Young LLP referred to in the preceding
paragraph and delivered to the Representative concurrently with the execution of this
Agreement (the “initial letter”), the Company shall have furnished to the Representative a
letter (the “bring-down letter”) of such accountants, addressed to the Underwriters and
dated such Delivery Date (i) confirming that they are independent public accountants within
the meaning of the Securities Act and are in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X of the
Commission, (ii) stating, as of the date of the bring-down letter (or, with respect to
matters involving changes or developments since the respective dates as of which specified
financial information is given in the Prospectus, as of a date not more than three days
prior to the date of the bring-down letter), the conclusions and findings of such firm with
respect to the financial information and other matters covered by the initial letter, (iii)
covering financial information in the Prospectus and (iv) confirming in all material
respects the conclusions and findings set forth in the initial letter.

 

22

     (i) The Company shall have furnished to the Representative a certificate, dated such
Delivery Date, of any two of its Chief Executive Officer, President, Executive Vice
President, Vice President-Finance, General Counsel or Treasurer to the effect that:

     (A) The representations and warranties of the Company in Section 1 are true and
correct on and as of such Delivery Date, and the Company has complied in all
material respects with all its agreements contained herein and satisfied all the
conditions on its part to be performed or satisfied hereunder at or prior to such
Delivery Date;

     (B) No stop order suspending the effectiveness of the Registration Statement
has been issued; no proceedings or examination for that purpose have been instituted
or, to the knowledge of such officers, threatened; and the Commission has not
notified the Company of any objection to the use of the form of the Registration
Statement or any post-effective amendment thereto; and

     (C) They have examined the Registration Statement, the Prospectus and the
Pricing Disclosure Package, and, in their opinion, (A) (1) the Registration
Statement, as of each Effective Date, (2) the Prospectus, as of the date of the
Prospectus Supplement and as of such Delivery Date, and (3) the Pricing Disclosure
Package, as of the Applicable Time and as of such Delivery Date, did not and do not
contain any untrue statement of a material fact and did not and do not omit to state
a material fact required to be stated therein or necessary to make the statements
therein (except in the case of the Registration Statement, in the light of the
circumstances under which they were made) not misleading, and (B) no event has
occurred that should have been set forth in a supplement or amendment to the
Registration Statement, the Prospectus or any Issuer Free Writing Prospectus that
has not been so set forth.

     (j) Except as described in the most recent Preliminary Prospectus and the Prospectus,
(i) neither the Company nor any of its subsidiaries shall have sustained, since the date of
the latest audited financial statements included or incorporated by reference in the most
recent Preliminary Prospectus, any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree or (ii) since such date there shall
not have been any change in the capital stock or long-term debt of the Company or any of its
subsidiaries or any change, or any development involving a prospective change, in or
affecting the condition (financial or otherwise), results of operations, stockholders’
equity, business or prospects of the Company and its subsidiaries taken as a whole, the
effect of which, in any such case described in clause (i) or (ii), is, individually or in
the aggregate, in the judgment of the Representative, so material and adverse as to make it
impracticable or inadvisable to proceed with the offering or sale of the Stock being
delivered on such Delivery Date on the terms and in the manner contemplated in the
Prospectus.

     (k) Subsequent to the execution and delivery of this Agreement, no downgrade in the
rating of the Company or any of its Insurance Subsidiaries or their

 

23

respective financial strength or claims paying ability or the rating of any of the
Company’s securities by A.M. Best Company, Inc. (“A.M. Best”) or by any other “nationally
recognized statistical rating organization”, as that term is defined by the Commission for
purposes of Rule 436(g)(2) under the Securities Act (together with A.M. Best, the “Rating
Agencies”) shall have occurred or be pending.

     (l) Subsequent to the execution and delivery of this Agreement there shall not have
occurred any of the following: (i) trading in securities generally on the New York Stock
Exchange or the NASDAQ National Market, or trading in any securities of the Company on any
exchange or in the over-the-counter market, shall have been suspended or materially limited
or the settlement of such trading generally shall have been materially disrupted or minimum
prices shall have been established on any such exchange or such market by the Commission, by
such exchange or by any other regulatory body or governmental authority having jurisdiction,
(ii) a general moratorium on commercial banking activities shall have been declared by
federal or New York state authorities, (iii) the United States shall have become engaged in
hostilities, there shall have been an escalation in hostilities involving the United States
or there shall have been a declaration of a national emergency or war by the United States
or (iv) there shall have occurred such a material adverse change in general economic,
political or financial conditions, including, without limitation, as a result of terrorist
activities after the date hereof (or the effect of international conditions on the financial
markets in the United States shall be such), as to make it, in the judgment of the
Representative, impracticable or inadvisable to proceed with the offering or sale of the
Stock being delivered on such Delivery Date on the terms and in the manner contemplated in
the Prospectus.

     (m) The New York Stock Exchange shall have approved the Stock for listing, subject only
to official notice of issuance.

     (n) The Lock-Up Agreements between the Representative and the officers, directors and
stockholders of the Company set forth on Schedule 3, delivered to the Representative
shall be in full force and effect on such Delivery Date.

          All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.

     8. Indemnification and Contribution.

     (a) The Company shall indemnify and hold harmless each Underwriter, its directors,
officers and employees and each person, if any, who controls any Underwriter within the
meaning of Section 15 of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof (including, but not limited
to, any loss, claim, damage, liability or action relating to purchases and sales of Stock),
to which that Underwriter or that affiliate, director, officer, employee or controlling
person may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement
or alleged untrue statement of a material fact contained in (A) any Preliminary

 

24

Prospectus, the Registration Statement, the Prospectus or in any amendment or
supplement thereto, (B) any Issuer Free Writing Prospectus or in any amendment or supplement
thereto or (C) any Permitted Issuer Information used or referred to in any “free writing
prospectus” (as defined in Rule 405) used or referred to by any Underwriter, or (D) any
“road show” (as defined in Rule 433) not constituting an Issuer Free Writing Prospectus (a
“Non-Prospectus Road Show”) or (ii) the omission or alleged omission to state in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or in any amendment or supplement thereto or in any Permitted Issuer Information,
any Non-Prospectus Road Show, any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were
made, not misleading, and shall reimburse each Underwriter and each such director, officer,
employee or controlling person promptly upon demand for any legal or other expenses
reasonably incurred by the Underwriter or that affiliate, director, officer, employee or
controlling person in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that the Company shall not be liable in any such case to the extent that
any such loss, claim, damage, liability or action arises out of, or is based upon, any
untrue statement or alleged untrue statement or omission or alleged omission made in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or in any such amendment or supplement thereto or in any Permitted Issuer
Information or any Non-Prospectus Road Show, in reliance upon and in conformity with written
information concerning such Underwriter furnished to the Company through the Representative
by or on behalf of any Underwriter specifically for inclusion therein, which information
consists solely of the information specified in Section 8(e). The foregoing indemnity
agreement is in addition to any liability which the Company may otherwise have to any
Underwriter or to any affiliate, director, officer, employee or controlling person of that
Underwriter.

     (b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless the
Company, its directors, officers and employees, and each person, if any, who controls the
Company within the meaning of Section 15 of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof, to which the
Company or any such director, officer, employee or controlling person may become subject,
under the Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement
of a material fact contained in any Preliminary Prospectus, the Registration Statement, the
Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto or
in any Non-Prospectus Road Show, or (ii) the omission or alleged omission to state in any
Preliminary Prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or in any amendment or supplement thereto or in any Non-Prospectus Road Show, any
material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, but in each case
only to the extent that the untrue statement or alleged untrue statement or omission or
alleged omission was made in reliance upon and in conformity with written information
concerning such Underwriter furnished to the Company through the Representative by or

 

25

on behalf of that Underwriter specifically for inclusion therein, which information
consists solely of the information specified in Section 8 (e). The foregoing indemnity
agreement is in addition to any liability that any Underwriter may otherwise have to the
Company or any such director, officer, employee or controlling person of the Company

     (c) Promptly after receipt by an indemnified party under this Section 8 of notice of
any claim or the commencement of any action, the indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under this Section 8, notify
the indemnifying party in writing of the claim or the commencement of that action; provided,
however, that the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has been materially
prejudiced by such failure and, provided, further, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to an
indemnified party otherwise than under this Section 8. If any such claim or action shall be
brought against an indemnified party, and it shall notify the indemnifying party thereof,
the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume the defense
thereof with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the defense of
such claim or action, the indemnifying party shall not be liable to the indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that the indemnified party shall have the right to employ
counsel to represent jointly the indemnified party and those other indemnified parties and
their respective directors, officers, employees and controlling persons who may be subject
to liability arising out of any claim in respect of which indemnity may be sought under this
Section 8 if (i) the indemnified party and the indemnifying party shall have so mutually
agreed; (ii) the indemnifying party has failed within a reasonable time to retain counsel
reasonably satisfactory to the indemnified party; (iii) the indemnified party and its
directors, officers, employees and controlling persons shall have reasonably concluded that
there may be legal defenses available to them that are different from or in addition to
those available to the indemnifying party; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the indemnified parties or their respective
directors, officers, employees or controlling persons, on the one hand, and the indemnifying
party, on the other hand, and representation of both sets of parties by the same counsel
would be inappropriate due to actual or potential differing interests between them, and in
any such event the fees and expenses of such separate counsel shall be paid by the
indemnifying party as incurred. No indemnifying party shall (i) without the prior written
consent of the indemnified parties (which consent shall not be unreasonably withheld),
settle or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability arising out
of such claim, action, suit or proceeding and does not include any findings of fact or
admissions of fault or culpability as to the indemnified party, or (ii) be liable for any
settlement of

 

26

any such action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with the consent of the indemnifying party or if
there be a final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any loss or
liability by reason of such settlement or judgment.

     (d) If the indemnification provided for in this Section 8 shall for any reason be
unavailable to or insufficient to hold harmless an indemnified party under Section 8(a), or
8(b) in respect of any loss, claim, damage or liability, or any action in respect thereof,
referred to therein, then each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified party as a
result of such loss, claim, damage or liability, or action in respect thereof, (i) in such
proportion as shall be appropriate to reflect the relative benefits received by the Company,
on the one hand, and the Underwriters, on the other, from the offering of the Stock or (ii)
if the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company, on the one hand, and the Underwriters,
on the other, with respect to the statements or omissions that resulted in such loss, claim,
damage or liability, or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company, on the one hand, and the
Underwriters, on the other, with respect to such offering shall be deemed to be in the same
proportion as the total net proceeds from the offering of the Stock purchased under this
Agreement (before deducting expenses) received by the Company, as set forth in the table on
the cover page of the Prospectus, on the one hand, and the total underwriting discounts and
commissions received by the Underwriters with respect to the shares of the Stock purchased
under this Agreement, as set forth in the table on the cover page of the Prospectus, on the
other hand. The relative fault, of the Company, on the one hand, and the Underwriters, on
the other, shall be determined by reference to whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company or the Underwriters, the intent of the
parties and their relative knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Underwriters agree that it would
not be just and equitable if contribution pursuant to this Section 8(d) were to be
determined by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take into account the
equitable considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 8(d) shall be deemed to include, for purposes of this
Section 8(e), any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8(e), no Underwriter shall be required to contribute any amount
in excess of the amount by which the net proceeds from the sale of the Stock underwritten by
it exceeds the amount of any damages that such Underwriter has otherwise paid or become
liable to pay by reason of any untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of

 

27

such fraudulent misrepresentation. The Underwriters’ obligations to contribute as
provided in this Section 8(d) are several in proportion to their respective underwriting
obligations and not joint.

     (e) The Underwriters severally confirm, and the Company acknowledges and agrees, that
(i) the statements regarding delivery of shares by the Underwriters set forth on the cover
page of the Preliminary Prospectus and the Prospectus and (ii) the concession figure
appearing in the fourth paragraph under the caption “Underwriting”, and the first paragraph
under the caption “Underwriting — Stabilization and Short Positions” (relating to
stabilization by the Underwriters), in the Preliminary Prospectus and the Prospectus, are
correct and constitute the only information concerning such Underwriters furnished in
writing to the Company by or on behalf of the Underwriters specifically for inclusion in any
Preliminary Prospectus, the Registration Statement, the Prospectus, the Pricing Disclosure
Package, any Issuer Free Writing Prospectus or any amendment or supplement thereto or in any
Non-Prospectus Road Show.

          9. Termination. The obligations of the Underwriters hereunder may be terminated by the
Representative by notice given to and received by the Company prior to delivery of and payment for
the Firm Stock if, prior to that time, any of the events described in Sections 7(j), 7(k) and 7(l)
shall have occurred or if the Underwriters shall decline to purchase the Stock for any reason
permitted under this Agreement.

          10. Reimbursement of Underwriters’ Expenses. If the Company shall fail to tender the Stock
for delivery to the Underwriters by reason of any failure, refusal or inability on the part of the
Company to perform any agreement to be performed on its part hereunder, or because any other
condition of the obligations hereunder required to be fulfilled by the Company is not fulfilled for
any reason, or (b) the Underwriters shall decline to purchase the Stock for any reason permitted
under this Agreement, the Company will reimburse the Underwriters for all reasonable out-of-pocket
expenses (including reasonable fees and disbursements of one counsel) incurred by the Underwriters
in connection with this Agreement and the proposed purchase of the Stock, and upon demand the
Company shall pay the full amount thereof to the Representative.

          11. Research Analyst Independence. The Company acknowledges that the Underwriters’ research
analysts and research departments are required to be independent from their respective investment
banking divisions and are subject to certain regulations and internal policies, and that such
Underwriters’ research analysts may hold views and make statements or investment recommendations
and/or publish research reports with respect to the Company and/or the offering that differ from
the views of their respective investment banking divisions. The Company hereby waives and
releases, to the fullest extent permitted by law, any claims that the Company may have against the
Underwriters with respect to any conflict of interest that may arise from the fact that the views
expressed by their independent research analysts and research departments may be different from or
inconsistent with the views or advice communicated to the Company by such Underwriters’ investment
banking divisions. The Company acknowledges that each of the Underwriters is a full service
securities firm and as such from time to time, subject to applicable securities laws, may effect
transactions for its own account or the account of its customers and hold long or short positions
in debt or equity securities of the Company.

 

28

          12. No Fiduciary Duty. The Company acknowledges and agrees that in connection with this
offering, sale of the Stock or any other services the Underwriters may be deemed to be providing
hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between the parties
or any oral representations or assurances previously or subsequently made by the Underwriters: (i)
no fiduciary or agency relationship between the Company and any other person, on the one hand, and
the Underwriters, on the other, exists; (ii) the Underwriters are not acting as advisors, expert or
otherwise, to the Company, including, without limitation, with respect to the determination of the
public offering price of the Stock, and such relationship between the Company, on the one hand, and
the Underwriters, on the other, is entirely and solely commercial, based on arms-length
negotiations; (iii) any duties and obligations that the Underwriters may have to the Company shall
be limited to those duties and obligations specifically stated herein; and (iv) the Underwriters
and their respective affiliates may have interests that differ from those of the Company. The
Company hereby waives any claims that the Company may have against the Underwriters with respect
to any breach of fiduciary duty in connection with this offering.

          13. Notices, Etc. All statements, requests, notices and agreements hereunder shall be in
writing, and:

(a) if to the Underwriters, shall be delivered or sent by mail to Barclays Capital
Inc., 745 Seventh Avenue, New York, New York 10019, Attention: Syndicate
Registration, with a copy, in the case of any notice pursuant to Section 8(c), to
the Director of Litigation, Office of the General Counsel, Barclays Capital Inc.,
745 Seventh Avenue, New York, New York 10019; and

(b) if to the Company, shall be delivered or sent by mail or facsimile transmission
to the address of the Company c/o Reliance Standard Life Insurance Company, 2001
Market Street, Suite 1500, Philadelphia, Pennsylvania 19103-7303, Attention: Chad W.
Coulter (Fax: (267) 256-0650).

Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof. The Company shall be entitled to act and rely upon any request, consent, notice or
agreement given or made on behalf of the Underwriters by Barclays Capital Inc.

          14. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of
and be binding upon the Underwriters, the Company, and their respective successors. This
Agreement and the terms and provisions hereof are for the sole benefit of only those persons,
except that (A) the representations, warranties, indemnities and agreements of the Company
contained in this Agreement shall also be deemed to be for the benefit of the directors, officers
and employees of the Underwriters and each person or persons, if any, who control any Underwriter
within the meaning of Section 15 of the Securities Act and (B) the indemnity agreement of the
Underwriters contained in Section 8(c) of this Agreement shall be deemed to be for the benefit of
the directors of the Company, the officers of the Company who have signed the Registration
Statement and any person controlling the Company within the meaning of Section 15 of the Securities
Act. Nothing in this Agreement is intended or shall be construed to give any person, other than
the persons referred to in this Section 14, any legal or equitable right, remedy or claim under or
in respect of this Agreement or any provision contained herein.

 

29

          15. Survival. The respective indemnities, representations, warranties and agreements of the
Company and the Underwriters contained in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement, shall survive the delivery of and payment for the Stock
and shall remain in full force and effect, regardless of any investigation made by or on behalf of
any of them or any person controlling any of them.

          16. Definition of the Terms “Business Day” and “Subsidiary”. For purposes of this Agreement,
(a) “business day” means each Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on
which banking institutions in New York are generally authorized or obligated by law or executive
order to close and (b) “subsidiary” has the meaning set forth in Rule 405.

          17. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

          18. Counterparts. This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be deemed to be an
original but all such counterparts shall together constitute one and the same instrument.

          19. Headings. The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.

 

30

     If the foregoing correctly sets forth the agreement between the Company and the Underwriters,
please indicate your acceptance in the space provided for that purpose below.

	 	 	 	 	 
	 	Very truly yours,

DELPHI FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/ Chad W. Coulter	 
	 	 	Name:  	Chad W. Coulter	 
	 	 	Title:  	Senior Vice President	 
	 

Accepted:

Barclays Capital Inc.

For itself and as Representative

of the several Underwriters named

in Schedule 1 hereto

	 	 	 	 	 
	By:  	/s/ Joseph P. Coleman	 	 
	 	Authorized Representative 	 	 

 

 

SCHEDULE 1

	 	 	 	 	 
	 	 	Number of Shares of
	Underwriters	 	Firm Stock
	 
	 	 	 	 
	Barclays Capital Inc.
	 	 	3,000,000	 
	 
	 	 	 	 
	 
	 	 	 	 
	Total
	 	 	3,000,000	 
	 
	 	 	 	 

 

 

SCHEDULE 2

[RESERVED]

 

 

SCHEDULE 3

PERSONS DELIVERING LOCK-UP AGREEMENTS

Those persons indicated by * are both directors and officers of Delphi Financial Group, Inc.

Directors

Kevin R. Brine

Lawrence E. Daurelle

Edward A. Fox

Steven A. Hirsh

Harold F. Ilg

James M. Litvack

James N. Meehan

Philip R. O’Connor

Robert Rosenkranz*

Donald A. Sherman*

Robert M. Smith, Jr.*

Robert F. Wright

Officers

Thomas W. Burghart

Chad W. Coulter

Terrence T. Schoeninger

Stockholders

Rosenkranz & Company, L.P.

 

 

SCHEDULE 4

	1.	 	Public offering price: $17.50 per share
	 
	2.	 	Number of shares of Class A Common Stock offered: 3,000,000 shares.

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