(9) Stock Based Compensation:

The Company grants shares of Class B restricted stock to the Company's outside directors, in lieu of cash, as their annual retainer compensation (the "annual retainer shares"). These annual retainer shares are distributed on the vesting date, one year following the date of grant. On August 31, 2017, the Company granted shares of Class B restricted stock to a new outside director, in lieu of cash, as such director's pro-rated annual retainer compensation, which shares will vest and be distributed on May 9, 2018. The table below provides detail of the stock issuances for 2016 and 2017:

					Value
					Per Share
Effective	Number of Shares		Vesting	Service	on Grant
Date	Issued		Date	Period	Date

5/10/2016		17,677	5/10/2017	7/1/2016 - 6/30/2017	$	24.89

5/9/2017		18,183	5/9/2018	7/1/2017 - 6/30/2018	$	24.20

8/31/2017		1,257	5/9/2018	8/31/2017 - 6/30/2018	$	21.90

Compensation expense related to the above stock grants is recognized over the period in which the directors render services.

On February 8, 2017, the Company awarded 20,181 shares of Class B restricted stock to certain of the Company's executives under the Company's Restricted Stock Compensation Plan. The restricted shares were granted to certain executives under the terms of the Company's Executive Incentive Bonus Plan. The restricted shares will vest over a three-year period from the date of grant and will be distributed solely in the Company's Class B common stock. The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted. Each share was valued at $23.80 per share, representing a total value of $480. Non-vested restricted shares will be forfeited should an executive's employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee of the Company's Board of Directors.

In May 2017, the Company's Compensation Committee granted equity-based awards. Under the Long-Term Incentive Plan ("LTIP") the final bonus amount will be determined by applying a performance matrix consisting of a measurement of the combined results of the Company's 2017 growth in net premiums earned and the 2017 combined ratio. The combined ratio is calculated as a ratio of (A) losses and loss expenses incurred, plus other operating expenses, less commission and other income to (B) net premiums earned. All LTIP awards for the Company's named executive officers ("NEOs") will be paid in restricted shares of the Company's Class B common stock at the end of the 2017 annual performance period and will vest after a one year period. All LTIP awards for non-NEOs will be paid in restricted shares of the Company's Class B common stock at the end of the 2017 annual performance period and will vest over a three year period. The Value Creation Incentive Plan ("VCIP") is an equity-based award for NEO's based on a cumulative increase in operating income over a three-year performance period. Each target VCIP share opportunity will be determined by a measurement of the Corporation's cumulative operating income from January 1, 2017 through December 31, 2019 relative to an operating income goal for the period set by the Committee in March 2017. For the purpose of VCIP calculation, cumulative operating income is equal to income before taxes excluding net realized gains (losses) on investments. All VCIP awards are paid in unrestricted shares of the Company's Class B common stock at the end of the three-year performance period, but no later than March 15, 2020. No shares have been issued as of September 30, 2017 under these plans.