Employment Agreement



 Exhibit 10.3 

Heritage Insurance Holdings, Inc. 

A DELAWARE CORPORATION 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as on November 4, 2015 by and between HERITAGE INSURANCE
HOLDINGS, INC., and its subsidiary companies (collectively, the “Company”), and Stephen Rohde (the “Executive”). 

RECITALS 
  

	1.	The Company is engaged in the insurance and financial services industry; 

  

	2.	The Executive will serve as the Chief Financial Officer of the Company; 

  

	3.	The Company and the Executive are parties to an employment agreement, as amended from time to time (the “Prior Agreement”), and now desire to amend and restate the terms of the Prior Agreement to provide for
the continued employment of the Executive; 

  

	4.	The Board of Directors (the “Board”) approved the employment of the Executive upon the terms and conditions set forth herein. 


NOW, therefore, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the Company and Executive agree as
follows: 
 AGREEMENT 
 NOW, THEREFORE,
in consideration of the premises and mutual covenants set forth herein, the parties hereby agree as follows: 
 Section I. Employment

 1. Employment. The Company shall employ Executive as its Chief Financial Officer and Executive accepts such employment and agrees to perform
the services and duties specified herein or as assigned to Executive from time to time by the Board. 
 2. Term of Employment. The Company shall
continue to employ the Executive and the Executive shall continue to serve the Company and its Subsidiaries, on the terms and conditions set forth herein, until May 31, 2016, unless terminated as hereinafter set forth, or as mutually agreed to
by the parties (the “Term”). 

  
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 Section II. Compensation and Benefits 

1. Base Salary. During the Employment Term, the Executive shall receive a base salary at the annual rate of $475,000.00. The base salary shall be
payable in substantially equal installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes. 

2. Annual Bonus. The Executive shall be receive an annual cash bonus of $500,000 on December 31, 2015, and a cash bonus of $250,000 on
May 31, 2015. 
 3. Expense Reimbursement. During the Employment Term, the Company, upon the submission of supporting documentation by the
Executive, and in accordance with Company policies for its executives, shall reimburse the Executive for all expenses actually paid or incurred by the Executive in the course of and pursuant to the business of the Company and the Subsidiaries,
including a reasonable car and housing allowance, and expenses for travel and entertainment, for which the Executive shall have an expense allowance as set by the Board from time to time. 

4. Insurance. During the Employment Term, the Company shall obtain comprehensive major medical, hospitalization and disability insurance coverage,
either group or individual, for the Executive and his dependents, and may obtain or may continue in force life (“key man”) insurance on the Executive for the benefit of the Company/Executive (collectively, the “Policies”), which
Policies the Company shall keep in effect at its sole expense throughout the Term. The Policies to be provided by the Company shall be on terms as determined by the Board. Within 30 days following any termination of this Agreement, at the
Executive’s option, the Company shall assign to the Executive all insurance policies on the life of the Executive then owned by the Company in consideration of the payment by the Executive of the premiums accruing after the date of such
termination. 
 5. Working Facilities. During the Employment Term, the Company shall furnish the Executive with an office, and such other facilities
and services suitable to his position and adequate for the performance of his duties hereunder. 
 6. Vacation. Executive shall receive up to thirty
paid vacation days every calendar year. Any portion of the unused annual vacation days shall be accrued and will accumulate, and may be used by the Executive at any time during its employment 

Section III. Termination. 
  

	1.	At Will Employee. Notwithstanding anything contained in this Agreement to the contrary, Executive is an at will employee and may be terminated for any reason as determined by the Company in its sole discretion.


  

	2.	Voluntary. Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated by the Executive for any reason by giving no less than 90 days notice. The Company shall not be
responsible for any further compensation of any kind to the Executive beyond 90 days from the date the Executive provides notice of his intent to terminate his employment. 


  
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 Section IV. Restrictive Covenants 

 

	1.	Confidentiality/Non-Disclosure. “Confidential Information” shall mean any intellectual property, information, or trade secrets (whether or not specifically labeled or identified as
“confidential” or “private”), in any form or medium, that is disclosed to, or developed or learned by, the Executive, and that relates to the business plan, underwriting, products, services, research, or development of or by the
Company or its Subsidiaries, suppliers, distributors, customers, investors, partners, and/or other business associates, and that has not become publicly known. Confidential Information includes, but is not limited to, the following:


 a. Internal business information (including but not limited to information relating to strategy, staffing, financial data,
training, marketing, promotional and sales plans and practices, costs, bidding activities and strategies, rate and pricing structures, and accounting and business methods); 

b. Identities of, negotiations with, individual requirements of, specific contractual arrangements with, and information about, the
Company’s or its Subsidiaries’ suppliers, distributors, customers, investors, partners and/or other business associates, their contact information, and their confidential information; 

c. Compilations of data and analyses, underwriting process and parameters, material processes, technical data, specific program information,
trade or industrial practices, computer programs, formulae, systems, research, records, reports, manuals, documentation, customer and supplier lists, data and databases relating thereto, and technology and methodology regarding specific projects;
and 
 d. Intellectual Property not generally available to the public, or published by the Company or its Subsidiaries. “Intellectual
Property,” or “IP,” shall mean (1) inventions or devices, whether patentable or not; (2) original works of authorship produced by or on behalf of the Company or its Subsidiaries; (3) trade secrets; (4) know-how;
(5) customer lists and confidential information; and (6) any other intangible property protectable under federal, state or foreign law. Other examples of Intellectual Property include, but are not limited to, patent applications, patents,
copyrighted works, technical data, computer software, knowledge of suppliers or business partnerships, documentation, processes, and methods and results of research. 
  

	2.	Acknowledgements. 

 a. The Executive acknowledges and agrees with the representations of
the Company that Confidential Information and IP is proprietary and valuable to the Company, and that any disclosure or unauthorized use thereof may cause irreparable harm and loss to the Company. It is further acknowledged by the Executive that if
the general public or competitors (now existing or to be created in the future) learn of these ongoing discussions and negotiations 

  
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with potential investors and of the formation of the Company, the Insurance Entity and other Subsidiaries as a result of the Executive’s failure to comply hereunder, irreparable harm and
substantial financial loss may occur to the Company’s, the Insurance Entity or other Subsidiary’s viability and future revenues. The Executive acknowledges and agrees that the knowledge and experience the Executive shall acquire by virtue
of assisting with the formation of the Insurance Entity and application to the FOIR for approval of the Insurance Entity to write homeowner’s insurance coverage in the State of Florida during the Employment Term and by virtue of employment by
the Company during the Employment Term is of a special, unique and extraordinary character and that such position allows the Executive access to Confidential Information and Intellectual Property. 

b. The Executive acknowledges and agrees that (a) the nature and periods of restrictions imposed by the covenants contained in this
Agreement are fair, reasonable and necessary to protect and preserve for the Company and its Subsidiaries their viability and future revenues; (b) the Company or its Subsidiaries would sustain great and irreparable loss and damage if the
Executive were to breach any of such covenants set forth herein; (c) the Company and its Subsidiaries intend to conduct business actively in the entire territory that is the subject of this Agreement (as defined below) and beyond; and
(d) the covenants herein set forth are made as an inducement to and have been relied upon by the Company in entering into this Agreement. The Executive acknowledges and agrees this Agreement is binding on the Executive’s heirs, executors,
successors, administrators, representatives and agents. 
 c. The Executive agrees to receive and to treat Confidential Information and the
knowledge of IP on a confidential and restricted basis and to undertake the following additional obligation with respect thereto: 
  

	 	i.	To use the Confidential Information for the singular purpose of benefiting the Company and its Subsidiaries, and specifically not use the Company’s and its Subsidiaries’ customer or prospective customer data
to conduct marketing, or otherwise undertake personal contacts, to solicit, divert or appropriate customers or prospective customers of the Company or its Subsidiaries, whether for the benefit of the Executive or any Person; 


 

	 	ii.	Not to disclose Confidential Information, except to the extent the Executive is required to disclose or use such Confidential Information in the performance of the Executive’s assigned duties for the Company or its
Subsidiaries, to any Person without the prior express written consent of the Member-Managers of the Company, or their successors, including Manager(s), as an action permitted under the operating agreement of the Company; 


 

	 	iii.	To tender all Confidential Information to the Company, and destroy any of the Executive’s additional notes or records made from such Confidential Information, immediately upon request by the Company or upon
termination of this Agreement either during the Initial Term or Employment Term; 


  
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	 	iv.	To promptly disclose and assign any right, title and interest to the Company all IP authored, made, conceived or actually reduced to practice, alone or jointly with others, (a) while performing duties for
the Company or its Subsidiaries, or (b) during the Initial Term or Employment Term of this Agreement, or (c) which results or is suggested by any work done for or at the request of the Company or its Subsidiaries, or (d) which was
aided by the use of trade secret information, whether or not during working hours and regardless of location; 

  

	 	v.	To use best efforts to safeguard the Confidential Information and protect it against disclosure, misuse, espionage, loss, misappropriation and theft; 


 

	 	vi.	Immediately notify the Members and Manager(s) of the Company of any breach of this Agreement; and 

  

	 	vii.	Assist the Company or its Subsidiaries, both during and after the termination of this Agreement, in obtaining and enforcing any legal rights in IP of the Company or its Subsidiaries, or assigned or to be assigned by the
Executive to the Company or its Subsidiaries. 

  

	3.	Non-Solicitation. For a period of five years after the Executive leaves the employment of the Company, the Executive covenants and agrees with the Company that the Executive will not, directly or indirectly,
attempt to employ, divert away an employee, or enter into any contractual arrangement with any employee or former employee, of the Company or its Subsidiaries, unless such employee or former employee has not been employed by the Company or its
Subsidiaries for a period in excess of one (1) year. 

  

	 	4.	Non-Compete. For a period of two years after the Executive leaves the employment of the Company, the Executive covenants and agrees with the Company that the Executive will not, directly or indirectly, work for
or consult with any competing insurance companies that do write the same insurance products in the states in which the Company does business. 


Section V. Miscellaneous 
  

	1.	Severability. In the event that the provisions of this Agreement should ever be deemed to exceed the time or geographic limitations permitted by applicable law, then the provisions will be reformed to the maximum
time or geographic limitations permitted by applicable law. Every provision of this Agreement is intended to be severable, and, if any term or provision is determined to be illegal, invalid or unenforceable for any reason whatsoever, and cannot be
reformed, such illegal, invalid or unenforceable provision shall be deemed severed here from and shall not affect the validity, legality or enforceability of the remainder of this Agreement. 


 

	2.	Books and Records. All books, records, accounts and similar repositories of Confidential Information of the Company and its Subsidiaries, whether prepared by the Executive or otherwise coming into the
Executive’s possession, shall be the exclusive property of the Company and shall be returned immediately to the Company and its Subsidiaries on termination of this Agreement or on the Board’s request at any time. 


  
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	3.	Survival. The restrictions and obligations of this Section IV shall survive any expiration, termination, or cancellation of either the Initial Term or Employment Term of this Agreement and shall continue to bind
the Executive and the Executive’s respective heirs, executors, successors, administrators, representatives and agents. 

  

	4.	Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from consolidating or merging into or with, or transferring all or substantially all of its assets to, another
corporation which assumes this Agreement, and all obligations of the Company hereunder, in writing. Upon such consolidation, merger, or transfer of assets and assumption, the term “the Company” as used herein, shall mean such other
corporation and this Agreement shall continue in full force and effect, subject to the provisions of Paragraph 6 hereof. 

  

	5.	Binding Effect. Except as herein otherwise provided, this Agreement shall inure to the benefit of and shall be binding upon the parties hereto, their personal representatives, successors, heirs and
assigns. The obligations of Company and the Subsidiaries to Executive are joint and several. All provisions of this Agreement are specifically enforceable by the Subsidiaries in addition to Company. Each of the Subsidiaries shall be considered a
third party beneficiary under the provisions of this Agreement. 

  

	6.	Terminology. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders; the singular shall include the plural and vice versa.
Titles of Paragraphs are for convenience only, and neither limit nor amplify the provisions of the Agreement itself. 

  

	7.	Further Assurances. At any time, and from time to time, each party will take such action as may be reasonably requested by the other party to carry out the intent and purposes of this Agreement.


  

	8.	Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof. It supersedes all prior negotiations, letters and understandings
relating to the subject matter hereof. 

  

	9.	Amendment. This Agreement may not be amended, supplemented or modified in whole or in part except by an instrument in writing signed by the party or parties against whom enforcement of any such amendment,
supplement or modification is sought. 

  

	10.	Assignment. This Agreement may not be assigned by the Executive, and may not be assigned by the Company except as described in above. 


 

	11.	Choice of Law. This Agreement will be interpreted, construed and enforced in accordance with the laws of the State of Delaware, without giving effect to the application of the principles pertaining to conflicts
of laws. The Company shall have the right to seek both equitable and monetary damages from the Executive for any violation of this agreement. 


  
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	12.	Effect of Waiver. The failure of any party at any time or times to require performance of any provision of this Agreement will in no manner affect the right to enforce the same. The waiver by any party of any breach of
any provision of this Agreement will not be construed to be a waiver by any such party of any succeeding breach of that provision or a waiver by such party of any breach of any other provision. 


 

	13.	Construction. The parties hereto and their respective legal counsel participated in the preparation of this Agreement; therefore, this Agreement shall be construed neither against nor in favor of any of the parties
hereto, but rather in accordance with the fair meaning thereof. 

  

	14.	Arbitration. The parties agree that all disputes related to this Agreement, other than disputes seeking equitable remedies, shall be submitted to arbitration in Pinellas County, Florida pursuant to the rules of the
American Arbitration Association. 

  

	15.	Equitable Remedy. The parties hereto acknowledge and agree that any party’s remedy at law for a breach or threatened breach of any of the provisions of this Agreement would be inadequate and such breach or
threatened breach shall be per se deemed as causing irreparable harm to such party. Therefore, in the event of such breach or threatened breach, the parties hereto agree that, in addition to any available remedy at law, including but not limited to
monetary damages, an aggrieved party, without posting any bond, shall be entitled to obtain, and the offending party agrees to oppose the aggrieved party’s request for, equitable relief in the form of specific enforcement, temporary restraining
order, temporary or permanent injunction, or any other equitable remedy that may then be available to the aggrieved party. 

  

	16.	Binding Nature. This Agreement will be binding upon and will inure to the benefit of any successor or successors of the parties hereto. 


 

	17.	Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original. 

  

	18.	Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered when sent by facsimile with receipt confirmed or when deposited in the United States mail, postage prepaid, registered
or certified mail, return receipt requested, or by overnight courier, addressed to the parties at the address first stated herein, or to such other address as either party hereto shall from time to time designate. 


 

			
	Agreed to by:
	
	Heritage Insurance Holdings, Inc.
		
	By:	 	 /s/ Bruce Lucas

		 	Bruce Lucas, CEO
		
	By:	 	 /s/ Stephen Rohde

		 	Stephen Rohde, CFO


  
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