Document:

Exhibit 10.3

 

STEWART INFORMATION
SERVICES CORPORATION EXECUTIVE SEPARATION PAY AND

CHANGE IN CONTROL PLAN

(Effective as of January
1, 2018, the "Effective Date")

 

ARTICLE 1

PURPOSE

 

1.1            
General Purpose. The Stewart Information Services Corporation Executive Separation Pay and Change in Control Plan,
as set forth herein (the ''Plan"), is intended to provide certain benefits for eligible senior management employees ("Participants,"
as defined below) of Stewart Information Services Corporation, a Delaware corporation, and its Subsidiaries (collectively, the
 "Company") where the Participant is terminated by the Company, without Cause (as hereinafter defined) or resigns from
his or her employment with the Company for Good Reason (as hereinafter defined), as well as to provide certain enhanced benefits
where such a termination of employment occurs in connection with a transaction that constitutes a Change in Control (as hereinafter
defined). The Plan, as set forth herein supersedes all
prior plans or programs providing any Participant severance or separation pay benefits, whether written or unwritten.

 

1.2            
Coverage Under ERISA. It is the intention of the Company that the Plan be a welfare benefit plan providing severance
benefits, as defined in the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

 

ARTICLE
2

DEFINITIONS

 

2.1             
Defined Terms. Whenever used in the Plan, capitalized terms shall, unless the context clearly indicates otherwise,
have the same meanings set forth below:

 

2.1.1       
"Administrator" means the Company or any Committee appointed by the Board to act as Administrator.

 

 2.1.2        "Board" means the board of directors of the Company.

 

2.1.3        "Cause"
shall mean in the good faith determination of the Board, any of the following:

 

(a)                     
A Participant's willful failure to substantially perform his or her duties with the Company (other than by reason of disability),
after a written demand for substantial performance is delivered to the Participant that specifically identifies the manner in which
the Company believes the Participant has not substantially performed such duties, and Executive has failed to remedy the situation
within 30 days of such written notice from the Company;

 

		(b)	A
                                         Participant’s gross negligence in the performance of his or her duties;

 

     

     

    

 

(c)                     
 A Participant's conviction of, or plea of guilty or nolo contendre to any felony or any crime involving moral turpitude
or the personal enrichment of Executive at the expense of the Company;

 

(d)                     
A Participant's willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily or
otherwise, including, without limitation, Executive's breach of fiduciary duties owed to the Company;

 

(e)                     
A Participant's willful violation of any material provision of the Company's code of conduct;

 

(f)                      
A Participant's willful violation of any of the material covenants contained in his or her employment agreement;

 

(g)                     
A Participant's act of dishonesty resulting in or intending to result in personal gain at the expense of the Company; or

 

(h)                     
A Participant's engaging in any material act that is intended or may be reasonably expected to harm the reputation, business
prospects, or operations of the Company.

 

		2.1.4	A "Change in Control" shall be deemed to have occurred if,

 

(a)                     
Any "Person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
50% or more of the combined voting power of the Company's then outstanding securities; or

 

(b)                     
There occurs a proxy contest or a consent solicitation, or the Company is a party to a merger, consolidation, sale of assets,
plan of liquidation or other reorganization, as a consequence of which members of the Board in office immediately prior to such
transaction or event thereafter constitute less than a majority of the Board immediately after such transaction or event; or

 

(c)                     
There occurs a reverse merger involving the Company in which the Company is the surviving corporation but the shares of
common stock of the Company outstanding immediately preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise; or

 

(d)                     
There is a sale or other disposition of all or substantially all of the assets of the Company; or

 

(e)                     
There is an adoption of any plan or proposal for the liquidation or dissolution of the Company; or

 

(f)                      
Stewart Title Guaranty Company is placed in supervision, receivership, conservatorship, or special administrative action
by its domiciled Department of Insurance.

 

    -2- 

     

    

 

2.1.5       
 "Change in Control Effective Date" shall mean the first date on which a Change in Control occurs; provided that
if a Change in Control occurs and if a Participant's employment with the Company is terminated prior to the date on which the Change
in Control occurs, the Change in Control Effective Date shall be the date immediately prior to such termination of employment if
the Participant can demonstrate that such termination of employment (i) was at the request of a third party who has taken steps
reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change in Control.

 

2.1.6       
"Change in Control Period" shall mean the period commencing on the Change in Control Effective Date and ending
on the second anniversary of the Change in Control Effective Date,

 

2.1.7       
"Code" means the Internal Revenue Code of 1986, as amended, and regulations issued thereunder.

 

2.1.8       
"Employer" means the Company and its Subsidiaries, and, as to a Participant, the entity that is that Participant's
employer.

 

2.1.9       
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and regulations issued thereunder.

 

 2.1.10      "Good Reason" means "Good Reason" means any of the following:

 

(a)                     
The occurrence of any material breach of the Participant's employment agreement by the Company or any of its Subsidiaries;

 

(b)                     
Any material failure by the Company after a Change in Control to vest any grants under the LTI Plan consistent with the
requirements of that plan and the terms of the Participant's grants thereunder;

 

(c)                     
The Company's failure, following a Change in Control, to obtain the assumption in writing of all of the Company's material
obligations under the

Participant's employment
agreement and any of the Participant's outstanding grants or awards by the successor to all or substantially all of the assets
of the Company or any Subsidiary within 15 days after a reorganization, merger, consolidation, sale or other disposition of assets
of the Company or such Subsidiary;

 

(d)                     
The Company's assignment to a Participant of any duties materially inconsistent with the Participant's position, including
any other action which results in a material diminution in such status, title, authority, duties or responsibility; or

 

(e)                     
The relocation of the Participant's office to a location more than 35 miles farther from the Participant's residence as
compared to as the Participant's office location immediately prior to such relocation or as specified at the time of the Participant's
most recent employment agreement.

 

    -3- 

     

    

 

Notwithstanding the foregoing,
a Participant resignation shall not be deemed to be for Good Reason if the Participant has consented to the condition claimed to
constitute Good Reason, nor shall a Participant’s resignation be deemed to be for Good Reason, unless the Participant has
provided any written notice to the Company specifying the event or condition claimed to constitute Good Reason within 60 days following
the initial existence of such event or condition, and the Company has, after receipt of such notice of Good Reason from the Participant,
failed to cure or correct such condition or event within 60 days following the Company's receipt of the Participant's notice of
intent to resign for Good Reason.

 

2.1.11   
"LTI Plan” means the Company's shareholder approved incentive plan or plans providing for equity-based compensation
grants, as such plan or plans may be in effect and as amended and/or superseded from time to time.

 

2.1.12   
"Participant" means an executive employee who has been designated as eligible to participate in the Plan by the
Administrator or as provided for in the Participant's employment agreement.

 

2.1.13   
"Plan Year" means the calendar year, except that the first Plan Year shall be the shorter period commencing on
the Effective Date and ending on December 31, 2018.

 

2.1.14   
"Subsidiary'' means each of the entities specified in the Schedule of Subsidiaries attached hereto as Exhibit A, as
that may be amended by the Administrator from time to time.

 

ARTICLE
3

PARTICIPATION

 

3.1             
Eligibility for Participation. An executive employee will be eligible to participate in the Plan if, and only if,
he or she has been designated as eligible to participate in the Plan on the Schedule of Participation attached hereto as Exhibit
B or has otherwise been notified in writing of his or her eligibility to participate in the Plan by the Administrator.

 

3.2             
Eligibility for Benefits. A Participant shall be eligible for separation pay benefits hereunder if his or her employment
is terminated involuntarily by the Company (other than a termination for Cause), or if the Participant resigns for "Good Reason."

 

ARTICLE
4 

SEPARATION
BENEFITS

 

4.1             
Schedule of Separation Pay Benefits. In the event a Participant's employment with the Company or a Subsidiary is
terminated by the Company without Cause, or by the Participant for Good Reason, the Participant shall, subject to execution of
a Release, receive, in addition to any payments required by law, the following severance benefits:

 

4.1.1        
Twelve (12) months of the Participant's then current base salary, payable in semi-monthly installments or other regular
installments in accordance with the Company's payroll practices, beginning on the 60th day after the Participant's termination
of employment (the "Severance Payment Commencement Date");

 

    -4- 

     

    

 

4.1.2        
An additional payment in installments payable on the same schedule as the payments provided for in Section 4.1.1, above,
equal to an amount such that, net after taxes paid by the Participant (assuming the Participant is taxed at the highest applicable
federal, state and local tax rates in effect for the Participant), the Participant will retain, in the aggregate, the dollar value
of the Company's subsidy (based on costs borne by the Company for active employees) of the cost of the Participant's coverage under
the Company's group health plan for a period of twelve (12) months;

 

4.1.3        
Outplacement services provided by a firm selected by the Company in its sole discretion for a period of 12 months and at
a cost to the Company not in excess of $10,000; and

 

4.1.4        
Such accelerated vesting as may be provided for under the terms of the LTI Plan and/or award agreement under the LTI Plan.

 

Notwithstanding anything in this Section 4.1
to the contrary, the Company shall have the right to cease or terminate the severance pay or benefits otherwise provided for in
the event the Participant breaches, in the
Company's sole discretion, any covenant set forth in the Participant's employment agreement.

 

4.2              
Other Severance Benefits. Notwithstanding anything in this Article 4, if a Participant
is entitled to any separation pay by reason of any agreement or arrangement applicable to such Participant other than by reason
of the terms of the Plan ("Other Separation Pay"), the separation pay otherwise payable to the Participant under this
Article 4 shall be reduced by the amount of such Participant's Other Separation Pay. A Participant's entitlement to Other Separation
Pay shall be deemed to be separation pay provided for under and shall be incorporated into the Plan for purposes of the Plan's
administrative procedures. To the extent any separation pay is subject to Code Section 409A, the provisions regarding the time
and manner such separation payments are to be made shall not be modified so as to avoid, to the extent possible, any modification
to the time and manner of payment of compensation that would constitute a violation of the requirements of Code Section 409A.

 

4.3              
Consequences of a Change in Control.
In the event a Participant's employment is terminated by the Company without Cause or by the Participant for Good Reason during
a Change in Control Period, and provided the Participant executes, and does not thereafter revoke, a Release, the Participant shall
be entitled to receive, in lieu of the separation pay provided for under Section 4.1.1, twenty-four (24) months of the Participant's
then current base salary, payable in semi-monthly
installments or other regular installments in accordance with the Company's payroll practices,
beginning on the Severance Payment Commencement Date, plus an amount equal to two times the Participant's target annual bonus in
effect for the fiscal year in which the Participant's termination of employment occurs, to be paid to the Participant in
a lump sum within 30 days after the date all applicable revocation periods under the Release have expired, and, in all events,
no later than the end of the ''applicable 2 1⁄2 month period" (as that phrase is
defined for purposes of Treasury Regulation Section 1.409A-l(b)(4). The Participant shall also be entitled to all other payments
and/or benefits provided for under Section 4.1 (other than Section 4.1.1).

 

    -5- 

     

    

 

4.4             
Required Release and Other Requirements. As a condition to a Participant's receipt of payments and/or benefits provided
for under the Plan, the Participant must execute and deliver to the Company a full release of all claims that Executive may have
against the Company, its Subsidiaries and affiliates, and all of their respective officers, employees, directors, and agents, and
that shall include the Participant's agreement not to disparage the Company and not to divulge any of the Company's confidential
information, in a form acceptable to the Company
(the "Release"), and all applicable
revocation periods must have expired prior to the Severance Payment Commencement Date. The Company shall provide the Participant
with the form of Release within 10 days following his or her termination of employment. In
addition, the Participant must execute such other documentation that formalizes the Participant's resignation from the Board, the
boards of any affiliates of the Company, and any other positions with the Company and its affiliates to be eligible for receipt
of payments and benefits under the Plan.

 

4.5             
Excess Parachute Payments. Notwithstanding anything in this Article 4 to the contrary, in the event payments to a
Participant under the Plan would cause any amounts to be subject to loss of deductibility pursuant to Code Section 280G and/or
to excise taxes under Code Section 4999, the amount of the payments to such Participant shall be reduced, if possible, to the extent
necessary so that no portion of the payments under the Plan are subject to the aforementioned provisions of the Code; provided,
however, that the aforementioned reduction to Plan payments shall not be made (and payments of the Plan benefits shall be made
in full) if such full payment of Plan benefits
produces a better net after-tax position for the Participant (taking into account any applicable excise tax under Section 4999
of the Code and any other applicable taxes). In no
event shall the Company be obligate to pay any tax gross-up payment to a Participant by reason of the Participant's participation
in the Plan.

 

ARTICLE 5

ADMINISTRATION

 

5.1            
Plan Administrator. As defined in Section 3(16)(A) of ERISA, the Company shall act as Administrator. The Administrator
shall be charged with the interpretation, administration and operation of the Plan.

 

5.2             
Delegation of Duties. The Administrator may delegate to any person or persons, severally or jointly, the responsibility
for the preparation and filing of all disclosure material and reports which the Plan Administrator is required to file by law,
and the responsibility for the day to day operation of the Plan.

 

5.3            
Rules and Regulations. The Administrator, subject to the provisions of the Plan, may adopt such rules and regulations
as it deems necessary to carry out the provisions of the Plan.

 

5.4              Discretionary
Actions. The Administrator shall have the power of full and final determination as to all issues concerning eligibility
for benefits under the Plan and all matters involving the interpretation of the Plan and determination of disputed facts, and
such determinations with respect to any individual's rights or benefits under the Plan shall be entitled to the maximum
deference permitted by law. With respect to any decision that is delegated to the Company in its sole discretion under the
Plan, any review of such decision that shall be undertaken in the capacity of the Administrator shall be implemented by a
Company executive (or committee consisting of company employees) who is (or are) not subject to the supervision of the
Company representative exercising such discretion.

 

    -6- 

     

    

 

5.5            
Benefit Claims Procedure. In accordance with Section 503 of ERISA and the regulations of the Secretary of Labor prescribed
thereunder:

 

5.5.1         
All claims for benefits under the Plan shall be filed in writing with the Administrator in accordance with such procedures
as the Administrator shall reasonably establish.

 

5.5.2         
The Administrator shall, within ninety (90) days of submission of a claim, provide adequate notice in writing to any claimant
with a description of any material or information which is necessary in order for the claimant to perfect his or her claim and
an explanation of why such information is necessary. If special circumstances require an extension of time for processing the claim,
the Administrator shall furnish the claimant a written notice of such extension prior to the expiration of the ninety (90) day
period. The extension notice shall indicate the reasons for the extension and the expected date for a final decision, which date
shall not be more than one hundred eighty (180) days from the initial claim.

 

5.6            
The Administrator shall, upon written request by a claimant within sixty (60) days of receipt of the notice that his or
her claim has been denied, afford a reasonable opportunity to such claimant for a full and fair review by the Administrator of
the decision denying the claim. The Administrator will afford the claimant an opportunity to review his or her decision, the Administrator
will attempt to make his or her decision as soon as practicable, and in no event will the Administrator take more than one hundred
twenty (120) days to send the claimant a written notice of its decision.

 

ARTICLE
6

MISCELLANEOUS

 

6.1             
Right to Amend or Terminate. The Company reserves the right to amend the Plan, in whole or in part, or discontinue
or terminate the Plan; provided, however, that no such amendment, discontinuance or termination made during the period starting
six (6) months prior to a Change in Control, and ending two (2) years after the Change in Control shall affect any right of any
Participant to claim benefits under the Plan without the Participant's consent.

 

6.2             
Benefits Payable from General Assets. Benefits payable hereunder shall be paid exclusively from the general assets
of the Company that employed the Participant, and no person entitled to payment hereunder shall have any claim, right, security
interest, or other interest in any fund, trust account, insurance contracts or other asset of the Company. In no event shall benefits
payable hereunder be the financial responsibility of any officer or shareholder of the Company or of any successor thereto who
does not assume liabilities hereunder or of any related corporation which may be looked to for such payment.

 

6.3             
No Contract for Continued Services. The Plan shall not be construed as creating any contract for continued services
between the Company and the Participant, and nothing herein contained shall give the Participant the right to be retained as an
employee of the Company.

 

    -7- 

     

    

 

6.4             
 Tax Matters. The Plan is structured so that all payments under the Plan are intended to be exempt from Code Section
409A by reason of the short-term deferral rules set forth in Treasury Regulation Section l.409A-l(b)(4) and shall be interpreted
consistent with that intent. Notwithstanding the foregoing, the Company makes no representations or warranties regarding the tax
treatment of any payments made to any Participant under the Plan and the Participant shall be liable for all income and wage taxes
imposed on the Participant by reason of the Participant's participation in the Plan. The Company shall in all events deduct and
withhold from any payments made pursuant to the Plan all amounts required to be deducted or withheld for federal, state or local
income or wage taxes, or otherwise required to be withheld by any applicable law.

 

6.5             
Governing Law. The Plan shall be construed as administered and enforced in accordance with ERISA and, where appropriate
and not otherwise preempted, the laws of the State of Texas.

 

6.6             
Definition of Words. Feminine or neuter pronouns shall be substituted for those of the masculine form, the plural
shall be substituted for the singular, and vice-versa, in any place or places herein where the context may require such substitution
or substitutions.

 

IN WITNESS WHEREOF the
Plan has been signed and sealed for and in behalf of the Company by its duly authorized representative, this 15
day of Feb, 2017.

 

STEWART
INFORMATION SERVICES CORPORATION

 

 

    -8- 

     

    

 

Exhibit A

 

Schedule of Subsidiaries

 

Stewart Title Company

Stewart Title Guaranty Company

Stewart Title Insurance Company

 

    -9-Exhibit
10.4 

 

STEWART INFORMATION SERVICES
CORPORATION EXECUTIVE VOLUNTARY RETIREMENT PLAN

(Effective January 1,
2018)

 

ARTICLE I PURPOSE

 

The purpose of the Stewart
Information Services Corporation Executive Voluntary Retirement Plan (the "Plan') is to provide for certain supplemental retirement
payments for a select group of management and highly compensated employees of Stewart Information Services Corporation, a Delaware
corporation, and its affiliates (collectively referred to herein as the "Company") as part of an integrated compensation
program which is intended to assist the Company in attracting, motivating and retaining employees of superior ability, industry
and loyalty.

 

ARTICLE
II DEFINITIONS

 

		2.1	"Board" means the Company's board of directors.

 

		2.2	"Code" means Internal Revenue Code of 1986, as amended.

 

		2.3	"Committee" means the compensation committee of the Company's Board

 

2.4          
"Company Business" means the business of providing real estate support services, including, without limitation,
title insurance, real estate information services, escrow services and related transaction services.

 

2.5          
"Level I Participant" shall mean those Participants designated by the Committee as a Level I Participant;

 

2.6          
"Level II Participant" shall mean those Participants designated by the Committee as Level II Participants;

 

2.7          
"Participant" means each executive of the Company who has been designated by the Committee either as a Level I
or as a Level II Participant.

 

2.8          
"Salary Continuation Period" shall mean twelve (12) months for Level I Participants, and shall mean six (6) months
for Level II Participants.

 

2.9          "Voluntary
Retirement" shall mean a Participant's voluntary termination of employment with the Company at or after the attaining
age sixty-five (65) or, with respect to Level I Participants, after attaining at least age sixty (60) and having completed at
least five years of service with the Company. A Participant's termination of employment shall not be deemed to be a Voluntary
Retirement unless the Participant has no expectation of returning to work in any capacity for any business engaged in the
Company Business without the prior written consent of the Company. A Participant's Voluntary Retirement shall be deemed to
have occurred as of the date of the Participant's "separation from service" (as that term is used for purpose of
Code Section 409A) and the Participant's termination of employment otherwise qualifies under this definition of Voluntary
Retirement and the Participant otherwise satisfies the requirements of the Plan.

 

     

     

    

 

ARTICLE
III PARTICIPATION

 

Each Participant shall
be entitled to receive payments provided for under the Plan following the Participant's Voluntary Retirement and provided all other
conditions for payment are satisfied.

 

ARTICLE IV - TERM OF PLAN

 

The Plan shall be in effect
as of the Effective Date, and shall continue until all obligations of the Company pursuant to the Plan have been paid, unless sooner
terminated at the discretion of the Company.

 

ARTICLE V - BENEFIT ENTITLEMENT

 

(a)              
All of the following requirements must be satisfied for a Participant to be entitled to receive any benefit otherwise payable
under the Plan:

 

(i)                
The Participant must have provided notice of at least 90 days of the Participant's Voluntary Retirement;

 

(ii)               
The Participant must execute a full release of all claims that Executive may have against the Company, its Subsidiaries
and affiliates, and all of their respective officers, employees, directors, and agents, and that shall include the Participant's
agreement not to disparage the Company and not to divulge any of the Company's confidential information, in a form acceptable to
the Company in a form satisfactory to the Committee (the "Release"); and

 

(iii)              
The Participant must execute such other agreements as the Committee deems appropriate from time to time, which may include,
without limitation, an agreement not to compete with the Company, a non-solicitation agreement and any documentation that formalizes
the Participant's resignation from the Board, the boards of any affiliates of the Company, and any other positions with the Company
and its affiliates (the "Other Agreements").

 

(b)              
If all requirements for receipt of Plan benefits are met, the Participant shall be entitled to receive:

 

(i)                His
or her salary paid for the Salary Continuation Period to be paid consistent with the Company's normal payroll schedule. The
first such payment shall be made on the first regularly scheduled payroll date following that occurs on or after the end of
the sixty (60) day period measured from the date of the Participant's separation from service, but only if the Release and
the Other Agreements have become effective. Notwithstanding the foregoing, payments shall be deferred to the extent required
pursuant to Section 9.10(a).

 

    -2- 

     

    

 

(ii)                
 An amount equal to the sum of (A) In the case of a Level I Participant, the Participant's annual short-term incentive bonus
target amount (the "Target Bonus") as established pursuant to any Company plan that provides for annual performance-
based cash bonuses, as such plan shall be in effect and amended and/or superseded from time to time, for the fiscal year in which
the Participant's Voluntary Retirement occurs, and in the case of a Level II Participant, 50% of the Participant's Target Bonus,
plus (B) and amount equal to the value of the Company's monthly subsidy of the Participant's group health coverage while actively
employed (as determined by the Company at its discretion) multiplied by the number of months in the Salary Continuation Period,
to be paid on or as soon as practicable following the end of the sixty (60) day period measured from the date of the Participant's
separation from service, but only if the Release and the Other Agreements have become effective. Notwithstanding the foregoing,
payments shall be deferred to the extent required pursuant to Section 9.10(a).

 

(iii)              
The Participant's outstanding grants under the Stewart Information Services Corporation 2014 Long Term Incentive Plan or
the Stewart Information Services Corporation 2018 Incentive Plan, as such plan or plans shall be in effect and amended and/or superseded
from time to time, shall be vested or forfeited, as the case may be, following the Participant's Voluntary Retirement, as provided
for under the terms of the relevant award agreement or agreements.

 

(c)              
Notwithstanding the other provisions of the Plan, the Company shall have the right to cease or terminate the all benefits
otherwise payable under the Plan to a Participant in the event the Participant breaches any term of any agreement between the Company
and the Participant, including, but not limited to, the Release and the Other Agreements.

 

ARTICLE VI FUNDING OF LIABILITIES

 

The Plan is intended to be
an unfunded, non-qualified plan that qualifies as a "top hat" plan maintained by the Company for the purpose of providing
deferred compensation for a select group of management and highly compensated employees. Benefits under the Plan shall be payable
from the general assets of the Company. Any liability of the Company to any person with respect to benefits payable under the Plan
shall be based solely upon such contractual obligations, if any, as shall be created by the Plan, and shall give rise only to a
claim against the general assets of the Company. No such liability shall be deemed to be secured by any pledge or any other encumbrance
on any specified property of the Company.

 

ARTICLE VII - PLAN ADMINISTRATOR

 

7.1          
Powers. The Committee (or such other person as may be designated by the Committee to act on its behalf) shall be
the plan administrator ("Plan Administrator") for the Plan. The Plan Administrator shall have the power and duty to do
all things necessary or convenient to effect the intent and purposes of the Plan and not inconsistent with any of the provisions
hereof, whether or not such powers and duties are specifically set forth herein, and, by way of amplification and not limitation
of the foregoing, the Plan Administrator shall have the power to:

 

    -3- 

     

    

 

(a)               
 provide rules and regulations for the management, operation and administration of the Plan, and, from time to time, to
amend or supplement such rules and regulations;

 

(b)              
construe the Plan, which construction, as long as made in good faith, shall be final and conclusive upon all parties hereto;
and

 

(c)               
correct any defect, supply any omission, or reconcile any inconsistency in the Plan in such manner and to such extent as
it shall deem expedient to carry the same into effect, and it shall be the sole and final judge of when such action shall be appropriate.

 

The
acts and determinations of the Plan Administrator, including determinations with respect to claims of a Participant or beneficiary
made in accordance with this Article VII shall be final and conclusive.

 

7.2             
Indemnity. The Plan Administrator shall not be directly or indirectly responsible or under any liability by reason
of any action or default by him or her, or the exercise of or failure to exercise any power or discretion as Plan Administrator.
The Company shall indemnify and save harmless the Plan Administrator against any and all expenses and liabilities arising out of
his or her role as Plan Administrator hereunder.

 

7.3             
Compensation and Expenses. The Plan Administrator shall receive no compensation for his or her services rendered
as such, but shall be entitled to reimbursement for any reasonable expenses incurred in his or her capacity as Plan Administrator.

 

7.4             
Participant Information. The Company shall furnish to the Plan Administrator in writing all information the Company
deems appropriate for the Plan Administrator to exercise its powers and duties in administration of the Plan. Such information
may include, but shall not be limited to, the names of all Participants, the date each became a Participant, his or her Compensation
and date of birth, employment, termination of employment, retirement or death. Such information shall be conclusive for all purposes
of the Plan and the Plan Administrator shall be entitled to rely thereon without any investigation thereof; provided, however,
that the Plan Administrator may correct any errors discovered in any such information,

 

7.5             
Inspection of Documents. The Plan Administrator shall make available to each Participant and his Designated Beneficiary,
for examination at the principal office of the Company (or at such other location as may be determined by the Plan Administrator),
a copy of the Plan and such of its records, or copies thereof, as may pertain to any benefits of such Participant and Designated
Beneficiary under the Plan.

 

ARTICLE VIII

EFFECTIVE DATE, TERMINATION AND AMENDMENT

 

8.1             
Effective Date of Participation in Plan. Participants shall commence participation in the Plan on the later of the
Effective Date or the first day of the month coincident with or following designation as a Participant.

 

    -4- 

     

    

 

8.2              
 Amendment and Termination of the Plan or Participation Agreement. The Plan may be terminated or revoked by the Company
at any time and amended by the Company from time to time, provided that neither the termination, revocation or amendment of the
Plan or a Participation Agreement may, without the written approval of the Participant, reduce the Plan Deferral Account or benefit
payable to a Participant calculated as of the time of such termination or amendment.

 

ARTICLE IX MISCELLANEOUS
PROVISIONS

 

9.1             
Anti-alienation. No benefit payable under the Plan shall be subject to any manner of anticipation, alienation, sale,
transfer, assignment, pledge, attachment or encumbrance except by the Company; and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, attach or encumber such benefit, except by the Company, shall be void.

 

9.2             
Unsecured Creditor Status. Any Participant who may have or claim any interest in or right to any compensation, payment,
or benefit payable hereunder, shall rely solely upon the unsecured promise of the Company, as set forth herein, for the payment
thereof, and nothing herein contained shall be construed to give to or vest in a Participant or any other person now or at any
time in the future, any right, title, interest, or claim in or to any specific asset, fund, reserve, account, insurance or annuity
policy or contract, or other property of any kind whatever owned by the Company, or in which the Company may have any right, title,
or interest, nor or at any time in the future. Any insurance policy or other assets acquired by the Company to fund, in whole or
in part, the Company's liabilities under the Plan shall not be deemed to be held as security for the performance of the obligations
of the Company hereunder but shall be, and remain, a general asset of the Company subject to the claims of its creditors.

 

9.3             
Other Company Plans. It is agreed and understood that any benefits under this Plan are in addition to any and all
employee benefits to which a Participant may otherwise be entitled under any other contract, arrangement, or voluntary pension,
profit sharing or other compensation plan of the Company, whether funded or unfunded, and that this Plan shall not affect or impair
the rights or obligations of the Company or a Participant under any other such contract, arrangement, or voluntary pension, profit
sharing or other compensation plan.

 

9.4             
Separability. If any term or condition of the Plan shall be invalid or unenforceable to any extent or in any application,
then the remainder of the Plan, with the exception of such invalid or unenforceable provision, shall not be affected thereby, and
shall continue in effect and application to its fullest extent.

 

9.5             
Continued Employment. Neither the establishment of the Plan, any provisions of the Plan, nor any action of the Plan
Administrator shall be held or construed to confer upon any Participant the right to a continuation of employment by the Company.
The Company reserves the right to dismiss any employee (including a Participant), or otherwise deal with any employee (including
a Participant) to the same extent as though the Plan had not been adopted.

 

9.6              Incapacity.
If the Plan Administrator determines that a Participant or Designated Beneficiary is unable to care for his affairs because
of illness or accident, or is a minor, any benefit due such Participant or Designated Beneficiary under the Plan may be paid
to his spouse, child, parent, or any other person deemed by the Plan Administrator to have incurred expense for such
Participant or Designated Beneficiary (including a duly appointed guardian, committee, or other legal representative), and
any such payment shall be a complete discharge of the Company's obligation hereunder.

 

    -5- 

     

    

 

9.7             
Jurisdiction. The Plan shall be construed, administered, and enforced according to the laws of the State of Texas,
except to the extent that such laws are preempted by the Federal laws of the United States of America.

 

9.8             
Claims. If, pursuant to the provisions of the Plan, the Plan Administrator denies the claim of a Participant or Designated
Beneficiary for benefits under the Plan, the Plan Administrator shall provide written notice, within 60 days after receipt of the
claim, setting forth in a manner calculated to be understood by the claimant:

 

		(a)	the specific reasons for such denial;

 

		(b)	the specific reference to the Plan provisions on which the denial is based;

 

(c)           
a description of any additional material or information necessary to perfect the claim and an explanation of why such material
or information is needed; and

 

(d)          
an explanation of the Plan's claim review procedure and the time limitations of this subsection applicable thereto.

 

A Participant or Designated
Beneficiary whose claim for benefits has been denied may request review by the Plan Administrator of the denied claim by notifying
the Plan Administrator in writing within 60 days after receipt of the notification of claim denial. As part of said review procedure,
the claimant or his authorized representative may review pertinent documents and submit issues and comments to the Plan Administrator
in writing. The Plan Administrator shall render its decision to the claimant in writing in a manner calculated to be understood
by the claimant not later than 60 days after receipt of the request for review, unless special circumstances require an extension
of time, in which case a decision shall be rendered as soon after the sixty-day period as possible, but not later than 120 days
after receipt of the request for review. The decision on review shall state the specific reasons therefor and the specific Plan
references on which it is based.

 

9.9             
Withholding. The Participant or the Designated Beneficiary shall make appropriate arrangements with the Company for
satisfaction of any federal, state or local income tax withholding requirements and Social Security or other tax requirements applicable
to the accrual or payment of benefits under the Plan. If no other arrangements are made, the Company may provide, at its discretion,
for any withholding and tax payments as may be required.

 

9.10          Compliance
with Code Section 409A. The Plan is intended to comply with Code Section 409A and applicable Treasury Regulations or
other guidance as may be issued by the Treasury Department or the Internal Revenue Service interpreting such requirements so
as to avoid the imposition of tax on participants under Code Section 409A(a), and shall in all instances be interpreted in a
manner consistent with such intent. The following specific provisions shall be applicable to the extent necessary to comply
with Code Section 409A

 

    -6- 

     

    

 

(a)            If
the Participant is deemed at the time of his Voluntary Retirement to be a "specified employee" for purposes of Section
409A(a)(2)(B)(i) of the Code, then to the extent delayed commencement of any portion of the benefits to which Executive is entitled
under the Plan is required in order to avoid a prohibited payment under Section 409A(a)(2)(B)(i) of the Code, such portion of
Executive's termination benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month
period measured from the date of Executive's Separation from Service or (ii) the date of Executive's death. Upon the earlier of
such dates, all payments deferred pursuant to this Section shall be paid in a lump sum to Executive (or Executive's estate, as
the case may be) without interest. The determination of whether a Participant is a "specified employee" for purposes
of Section 409A(a)(2)(B)(i) of the Code as of the time of his Separation from Service shall be made by Company in accordance with
the terms of Section 409A of the Code, and applicable guidance thereunder (including without limitation Treasury Regulation Section
1.409A-1(i) and any successor provision thereto).

 

(b)           
For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)),
each payment that Executive may be eligible to receive under this Agreement shall be treated as a separate and distinct payment
and shall not collectively be treated as a single payment.

 

Notwithstanding anything to
the contrary herein, the Company does not guarantee the tax treatment of any payment hereunder and in no event shall the Company
be liable for any Section 409A Penalties that may be imposed on Executive.

 

 

    -7-

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