Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”), dated April 13, 2021 is made and entered into by and between HERITAGE INSURANCE
HOLDINGS, INC., Delaware corporation, and all of its affiliate and subsidiary companies (collectively, the “Company”), and Kirk H. Lusk (the “Executive”). 

RECITALS 
  

	1.	 The Company is publicly traded and engaged in the insurance and financial services industry and has over
$1 billion of in-force gross premiums across 16 states. 

  

	2.	 The Executive is currently the Chief Financial Officer and has been employed by the Company since 2018 pursuant
to that certain Employment Agreement dated as of January 30, 2018 between the Company and Executive (the “Prior Employment Agreement”) which the Company and Executive agree is hereby terminated. 

 

	3.	 Given the Executive’s unique experience and qualifications, the Company’s Board of Directors has
appointed Executive as the Company’s Chief Financial Officer effective January 30, 2018. 

  

	4.	 The Company and Executive desire to enter into this Agreement which sets forth the terms and conditions under
which Executive shall serve as the Company’s Chief Financial Officer. 

 AGREEMENT 

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties hereby agree as follows: 

Section I. Term 

1.    Term of Employment. The Company and Executive agree that the Prior Employment Agreement is terminated as of April 13,
2021 (the “Effective Date”). The term of the Executive’s employment as Chief Financial Officer hereunder shall commence on the Effective Date and shall continue until December 31, 2023 (the “Initial Employment Term”),
at which point this Agreement will automatically renew for successive twelve-month periods, unless terminated as hereinafter set forth, or as mutually agreed to by the parties (each a “Successive Employment Term” and together with the
Initial Employment Term, the “Employment Term”). 
 2.    Duties of Executive. The Executive shall serve as Chief
Financial Officer and shall perform the duties of an executive commensurate with such position, shall diligently perform all services as may be reasonably designated by the Board of Directors of the Company (the “Board”) and shall exercise
such power and authority as is necessary and customary to the performance of such duties and services. The Executive shall devote his services on a full-time basis to the business and affairs of the Company. 

  
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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 nine hundred fifty
thousand dollars ($950,000). 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 Cash Incentive. Beginning with calendar year 2021, and continuing throughout the Employment Term, Executive’s
annual cash incentive target is set at $250,000 with the ultimate potential cash incentive earned ranging from a threshold of $150,000 to a maximum    of $350,000, with pro rata amounts earned between threshold and maximum.
Achievement of the annual cash incentive will be based on the performance criteria included in Heritage’s executive incentive compensation program, attached as Schedule A. 

3.    Annual Time-Based Restricted Stock. Executive will be issued $150,000 of time-based restricted stock on April 13th, 2021, which will vest in three equal annual installments, beginning with December 31, 2021. In all future calendar years during the Employment Term, Mr. Lusk will be eligible to receive
$150,000 of time-based restricted stock annually, which will similarly vest in three equal annual installments, beginning with December 31st of the grant year. The time-based restricted stock
grants shall be subject to the terms and conditions of an award agreement between the Company and Executive which award agreement shall be subject to the terms and conditions of The Heritage Insurance Holdings, Inc. Omnibus Incentive Plan or any
other equity incentive plan approved and adopted by the Board. 
 4.    Annual Performance Based Restricted Stock. Beginning with
calendar year 2021, and continuing throughout the Employment Term, Executive’s annual performance equity grant target is set at $200,000 with the ultimate potential performance equity earned ranging from a threshold of $100,000 to a maximum of
$300,000. Pro rata amounts can be earned between threshold and maximum with performance measured over three consecutive calendar years, beginning with the grant year. Performance equity will be granted annually and will vest based on criteria and
vesting requirements included in the Company’s executive incentive compensation program, attached as Schedule A. The performance based equity grants shall be subject to the terms and conditions of an award agreement between the Company and
Executive which award agreement shall be subject to the terms and conditions of The Heritage Insurance Holdings, Inc. Omnibus Incentive Plan or any other equity incentive plan approved and adopted by the Board. 

  
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 5.    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 Employment 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. 
 6.    Disability. During the Employment
Term, the Company shall maintain long-term disability insurance coverage on Executive in an amount equal to sixty percent (60%) of Executive’s base salary during the Employment Term of this Agreement. In the case of a disability of Executive,
all benefits provided for under the above-described coverage shall be paid directly to Executive. Executive represents and warrants that, to the best of his knowledge, he has no disability which would impair his ability to perform the duties called
for under this Agreement. If Executive shall become unable to perform its duties as provided for herein by reason of illness or injury for a consecutive period of ninety (90) days, then the Company may, within thirty (30) days, suspend the
officership of the Executive. In the event of such suspension, Executive shall remain an employee of the Company and receive the compensation and the fringe benefits as set forth in Section 2 through December 31st of the current year (the
“Suspension Period”). Executive’s employment with the Company shall terminate at the end of the Suspension Period if the Executive has not returned by the end of the Suspension Period to the full-time performance of his duties
hereunder. 
 7.    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. 

8.    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 his employment. If Executive has not used all of his accrued and accumulated vacation time at the termination of his employment, the Company shall
pay any unused vacation to Executive in a lump sum within ninety (90) days following his termination of employment. 
 Section III.
Termination. 
 1.    Termination for Cause. Notwithstanding anything contained in this Agreement to the contrary, this
Agreement may be terminated by the Company for Cause. As used in this Agreement “Cause” shall only mean (i) any action or omission of the Executive which constitutes a breach of this Agreement, (ii) fraud, breach of fiduciary
duty, gross negligence, embezzlement or misappropriation as against the Company, (iii) conviction of a felony; material violation of Company policies which causes material reputational or financial harm to the Company. Upon any determination by
the Company’s Board that Cause exists under clause (i) of 

  
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the preceding sentence, the Company shall cause a special meeting of the Board to be called and held at a time mutually convenient to the Board and Executive. Executive shall have the right to
appear before such special meeting of the Board to refute any determination of Cause specified in such notice, and any termination of Executive’s employment by reason of such Cause determination shall not be effective until Executive is
afforded such opportunity to appear. Any termination shall be made in writing to Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying for such termination. Upon any termination for cause, the
Company shall have no obligation to pay the Executive any compensation or benefits under this Agreement. 
 2.    Severance. If
Executive is terminated without Cause or voluntarily terminates his employment for Good Reason, the Executive shall be entitled to a lump-sum cash severance payment equivalent to one times his annual base
salary in effect immediately preceding termination, but not less than $950,000, to be paid within ninety (90) days of his termination and upon receipt of any Company required release to comply with Code Section 409A. In addition, the
Executive will be entitled to receive a prorated annual cash incentive for the year of termination, subject to satisfying performance criteria, payable consistent with the Company’s normal annual cash incentive schedule included in the
Company’s executive incentive compensation program, attached as Schedule A. All previously granted and unvested time-based and performance-based stock compensation will immediately vest. As used in this Agreement, “Good Reason” shall
mean, without the Executive’s consent (i) reduction in Executive’s base salary, (ii) reduction in Executive’s cash bonus opportunity, (iii) reduction in Executive’s stock compensation opportunity,
(iv) reduction in title, duties or responsibilities, (v) any requirement that the Executive report to anyone other than the Chief Executive Officer, (vi) meaningful, involuntary relocation of Executive’s principal place of
business, or (vii) a material breach of this Agreement by the Company. 
 3.    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 prior written 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 unless the voluntary termination is with Good Reason, in which case the Severance clause of this Agreement will apply. 

4.    Change of Control. For the purposes of this Agreement, (i) a “Change of Control” shall be deemed to have taken
place if: (i) any person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, becomes the owner or beneficial owner of Company securities, after the Effective Date, having
greater than 50% of the combined voting power of the then outstanding shares of the Company that may be cast for the election of directors of the Company (other than as a result of an issuance of securities initiated by the Company, or open market
purchases approved by the Board, as long as the majority of the Board approving the purchases is the majority at the time the purchases are made), or (ii) the persons who were directors of the Company before such transactions shall cease to
constitute a majority of the Board, or any successor to the Company, as the direct or indirect result of or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, or any
combination of the foregoing transactions and the (ii) the “Change of Control Date” shall be the date on which a Change of Control occurs. 

  
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 During the remaining Employment Term hereof after a Change of Control Date, the Company (or the acquiring or
surviving entity, will continue to be bound by this Agreement. Following a Change of Control, if the Executive is terminated without Cause or voluntarily terminates his employment for Good Reason, Section III(2) of this Agreement will apply, but the
lump sum cash severance payment will instead equal 1.5 times the Executive’s base salary in effect immediately preceding termination, reflecting a minimum payment of $1.425 million, to be paid within ninety (90) days following his
termination. The Executive will be entitled to receive a prorated annual cash incentive for the year of termination, subject to satisfying performance criteria, payable consistent with the Company’s normal annual cash incentive schedule
included in the Company’s executive incentive compensation program, attached as Schedule A. All previously granted and unvested time-based and performance-based stock compensation will immediately vest. 

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, 

  
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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 with potential investors 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 employment by the Company during the Employment Term is of a special, unique and
extraordinary character and hat 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 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 Board; 

 

	 	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 

  
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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 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 Board 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 one (1) year after Employee leaves the
employment of Company, the Employee covenants and agrees with the Company that the Employee 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 one (1) year following the Executive’s last
day of employment, the Employee covenants and agrees with the Company that the Employee will not serve as an employee for any Business that writes the same insurance products in the states in which the Company or its Subsidiaries sell insurance
products as of the date of this Agreement. For purposes hereof, “Business” shall mean a homeowner insurance carrier deriving 90% or more of its prior year written premium from coastal homeowners policies. “Business” shall also
mean any Florida domiciled insurance carrier regardless of the percentage of prior year written premium from coastal homeowners policies. If Executive is involuntarily terminated for any reason, or voluntarily terminates his employment for Good
Reason, the terms of this non- compete shall be unenforceable. 
 Section V. Taxes 

1.    Generally. Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company
hereunder to the Executive or the Executive’s estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation.
In lieu of withholding such amounts, in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholding as required by law, provided it is satisfied that all requirements of law affecting its
responsibilities to withhold have been satisfied. 

  
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 2.    Section 409A Compliance. It is the intention of both the Company and the
Executive that the benefits and rights to which the Executive could be entitled pursuant to this Agreement comply with Section 409A of the Internal Revenue Code of 1986, as amended and the Treasury Regulations and other guidance promulgated or
issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If the Executive
or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so comply, he, she or it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on the Executive and on the Company). If and to the extent required to comply with Section 409A, no payment or benefit required to
be paid under this Agreement on account of termination of the Executive’s employment shall be made unless and until the Executive incurs a “separation from service” within the meaning of Section 409A. Notwithstanding anything in
this Agreement to the contrary, to the extent necessary to comply with Section 409A of the Code, no transaction or series of transactions shall constitute a Change of Control unless such transaction or series of transactions is a permissible
payment event for purposes of Treasury Regulation Section 1.409A-3(a)(5) of the Code. If the Executive is a “specified employee” (as reasonably determined by the Company in accordance with
Section 409A), then no payment or benefit that is payable on account of the Executive’s “separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that is six months after
the Executive’s “separation from service” (or, if earlier, the date of the Executive’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation)
under Section 409A and such deferral is required to comply with the requirements of Section 409A. Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required
delay period in order to catch up to the original payment schedule. For purposes of applying the provisions of Section 409A to this Agreement, each separately identified amount to which the Executive is entitled under this Agreement shall be
treated as a separate payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated as a right to a series of separate payments. Any reimbursements by the Company to
the Executive of any eligible expenses under this Agreement that are not excludable from the Executive’s income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later than the last day of the taxable
year of the Executive following the year in which the expense was incurred. The amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to the Executive, during any taxable
year of the Executive shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year of the Executive. The right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another benefit. Notwithstanding anything to the contrary, the Company does not make any representation to the Executive that the payments or
benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and neither the Company nor any Related Entity shall have any liability or other obligation to indemnify or hold harmless the Executive or any
beneficiary of the Executive for any tax, additional tax, interest or 

  
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penalties that the Executive or any beneficiary of the Executive may incur in the event that any provision of this Agreement or any other action taken with respect thereto is deemed to violate
any of the requirements of Section 409A. 
 3.    Notwithstanding any other provision of this Agreement or any other plan,
arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company Group to the Executive or for the Executive’s benefit pursuant to the terms of this Agreement or otherwise (“Covered
Payments”) constitute parachute payments (“Parachute Payments”) within the meaning of Section 280G of the Code and would, but for this Section be subject to the excise tax imposed under Section 4999 of the Code (or any
successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then the Covered Payments shall be payable either (i) in full or
(ii) reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax, whichever of the foregoing (i) or (ii) results in the Executive’s receipt on an after-tax basis of the greatest amount of benefits after taking into account the applicable federal, state, local and foreign income, employment and excise taxes (including the Excise Tax). If a reduction in
payments or benefits is necessary, reduction shall occur in the following order: (i) cash payments; (ii) equity-based payments and acceleration; and (iii) other non-cash forms of benefits. Within any
such category of payments and benefits (that is, (i), (ii) or (iii)), a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then with respect to
amounts that are. To the extent any such payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order. Any determination required hereunder, including whether any payments or
benefits are Parachute Payments, shall be made by the Company in its sole discretion. 
 Section VI. 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. 
 3.    Survival. The
restrictions and obligations of this Section IV shall survive any expiration, termination, or cancellation of either the Employment Term of this Agreement and shall continue to bind the Executive and the Executive’s respective heirs, executors,
successors, administrators, representatives and agents. 

  
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 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 Section III,
Paragraph 4 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.    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. 
 7.    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. 

8.    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. 

9.    Assignment. This Agreement may not be assigned by the Executive and may not be assigned by the Company except as described in
above. 
 10.    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. 
 11.    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. 

12.    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. 

13.    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. 

  
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 14.    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. 
 15.    Counterparts. This Agreement may be executed in one or more counterparts, each of which will be
deemed an original. 
 16.    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/ Ernie Garateix

		 	Ernie Garateix, CEO

 Executive 
  

			
		 	 /s/ Kirk Lusk

		 	Kirk Lusk, CFO

  
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 Schedule A 

ANNUAL INCENTIVE COMPENSATION PLAN 

Eligible executives can receive annual performance-based cash and equity incentives and annual time-based equity grants in accordance with Heritage’s
annual incentive compensation plan. 
 Annual cash incentives are associated with Heritage’s short-term annual incentive plan, while annual time-based
and performance-based equity grants are associated with Heritage’s long-term annual incentive plan. 
 Payout amounts for annual cash and performance
equity grants are based on target dollar amounts established in eligible executives’ employment agreements. Pro rata amounts are calculated between threshold and target and target and max. The dollar amount of time-based restricted stock grants
that executives are eligible to receive annually are similarly outlined in executives’ employment agreements. 
 Annual short-term incentive plan:

 Heritage’s annual short-term incentive plan is performance-based and consists of annual cash incentives that are payable no later than March 5th of the immediately subsequent calendar year. Performance criteria are measured over a single calendar year. 
  

															
	 Cash bonus criteria    
	 
	 Weighting    
	  	 	  	Threshold	 	 	Target	 	 	Max	 
	[    ]%	  	Net operating ratio*	  	 	[    	]% 	 	 	[    	]% 	 	 	[    	]% 
	[    ]%	  	Ex-FL organic GPW growth**	  	 	[    	]% 	 	 	[    	]% 	 	 	[    	]% 
	[    ]%	  	Qualitative	  	 	Qualitative	 

  

	*	 The numerator of the net operating ratio is calculated as the sum of net losses and loss adjustment expenses,
policy acquisition costs and general and administrative expenses, less net investment income and policy fee income, while the denominator represents net premiums earned. 

	**	 Organic gross premiums written (GPW) growth is calculated as year-over-year GPW growth excluding premiums associated with acquisitions of whole entities for twelve months from the acquisition date. 

Annual long-term incentive plan: 
 Heritage’s annual
long-term incentive plan consists of two components: 
  

	 	•	 	 Annual grants of time-based restricted stock [units?] that vest in
one-third annual increments, beginning with December 31st of the grant year. 

 

	 	•	 	 Annual grants of performance-based restricted stock [units?] that vest following the conclusion of the three-year
performance period, but no later than March 5th of the calendar year immediately following the three-year performance period. The performance period is over three calendar years, beginning with
the year of grant. 

  

													
	 Performance stock criteria    
	  	 	 	 	 	 	 	 	 
	 	  	Threshold	 	 	Target	 	 	Max	 
	 3-year adjusted book value per share growth
	  	 	[    	]% 	 	 	[    	]% 	 	 	[    	]% 

 Note: adjusted book value per share growth excludes cumulative dividends declared and accumulated other comprehensive
income.Document

[Exhibit 10.1]
AMENDMENT NO. 9 TO AMENDED AND RESTATED CREDIT AGREEMENT 

AMENDMENT NO. 9 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 9, 2021 (this “Amendment No. 9”), is by and among Wells Fargo Bank, National Association, in its capacity as agent pursuant to the Credit Agreement (as hereinafter defined) acting for and on behalf of the parties thereto as lenders (in such capacity, “Agent”), the parties to the Credit Agreement as lenders (individually, each a “Lender” and collectively, “Lenders”), Hamilton Beach Brands, Inc., formerly known as Hamilton Beach/Proctor-Silex Inc., a Delaware corporation (“US Borrower”), and Hamilton Beach Brands Canada, Inc., formerly known as Proctor-Silex Canada Inc., an Ontario corporation (“Canadian Borrower”, and together with US Borrower, each individually a “Borrower” and collectively, “Borrowers”).

W I T N E S S E T H :

WHEREAS, Agent, Lenders and Borrowers have entered into financing arrangements pursuant to which Lenders (or Agent on behalf of Lenders) have made and may make loans and advances and provide other financial accommodations to Borrowers as set forth in the Amended and Restated Credit Agreement, dated as of May 31, 2012, by and among Agent, Lenders and Borrowers, as amended by Amendment No. 1 to Amended and Restated Credit Agreement, dated July 29, 2014, Amendment No. 2 to Amended and Restated Credit Agreement, dated November 20, 2014, Amendment No. 3 to Amended and Restated Credit Agreement, dated December 23, 2015, Amendment No. 4 to Amended and Restated Credit Agreement, dated as of June 30, 2016, Amendment No. 5 to Amended and Restated Credit Agreement, dated as of September 13, 2017, Amendment No. 6 to Amended and Restated Credit Agreement, dated as of May 14, 2018, Amendment No. 7 to Amended and Restated Credit Agreement and Waiver, dated as of May 20, 2020 and Amendment No. 8 to Amended and Restated Credit Agreement and Joinder, dated as of November 23, 2020 (as the same now exists, the “Existing Credit Agreement” and the Existing Credit Agreement, as amended and supplemented pursuant hereto and as may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Credit Agreement”) and the other Loan Documents;

WHEREAS, Borrowers, Agent and Lenders have agreed to amend the Existing Credit Agreement pursuant to the terms and conditions of this Amendment No. 9;

WHEREAS, by this Amendment No. 9, Agent, Lenders and Borrowers desire and intend to evidence such amendments;

NOW THEREFORE, in consideration of the foregoing and the mutual agreements and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.    Definitions.

(a)    Additional Definitions. Schedule 1.1 to the Credit Agreement is hereby amended by inserting the following new definitions in the appropriate alphabetical order:

									
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(i)    “Amendment No. 9” shall mean Amendment No. 9 to Amended and Restated Credit Agreement, dated as of April 9, 2021, by and among Agent, Lenders and Borrowers, as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.

(ii)    “Amendment No. 9 Effective Date” shall mean the date upon which all of the conditions precedent set forth in Amendment No. 9 are satisfied.

(b)    Amendments to Definitions.

(i)    The definition of “Maximum US Revolver Amount” set forth in the Credit Agreement is hereby deleted in its entirety and replaced with the following:

“Maximum US Revolver Amount” means (a) $130,000,000 during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date, and (b) $115,000,000 at all times thereafter, in each case, as decreased by the amount of reductions in the US Revolver Commitments made in accordance with Section 2.4(c) of the Agreement and increased by the amount of any Increase made in accordance with Section 2.16 of this Agreement.

(ii)    The definition of “US Eligible Inventory Amount” set forth in the Credit Agreement is hereby deleted in its entirety and replaced with the following:

“US Eligible Inventory Amount” means, on any date of determination, the lesser of the amounts set forth in clause (i) and (ii) as follows: (i) an amount equal to (A) $77,000,000 (minus the amount of Eligible Inventory then included in the Canadian Borrowing Base as calculated in accordance with clause (b) of the definition thereof) during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date and (B) $70,000,000 (minus the amount of Eligible Inventory then included in the Canadian Borrowing Base as calculated in accordance with clause (b) of the definition thereof) at all times thereafter, and (ii) the product of (A) the Applicable Inventory Percentage applicable on such date multiplied by (B) the Value of Eligible Inventory of the US Borrowers as of such date.

(c)    Interpretation. For purposes of this Amendment No. 9, all terms used herein which are not otherwise defined herein, including but not limited to, those terms used in the recitals hereto, shall have the respective meanings assigned thereto in the Credit Agreement as amended by this Amendment No. 9.

2.    Commitment Schedule. Effective as of the Amendment No. 9 Effective Date, Schedule C-1 to the Credit Agreement is hereby deleted in its entirety and replaced with the amended Schedule C-1 attached hereto as Exhibit A.

3.    Collateral Reporting/Borrowing Base Delivery Frequency. Schedule 5.2 to the Credit Agreement is hereby amended by deleting the contents of the column to the left of clauses (a) through (j) therein and replacing it with the following: “Monthly (no later than the twentieth (20th) day of each month), or (1) if either (x) an Event of Default exists or (y) a Compliance Period exists, weekly (no later than Wednesday of the immediately succeeding week), or at such other times as Agent shall request in its Permitted Discretion, or (2) during the period from and including the Amendment No. 9 Effective Date through and 
									
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including the date that is sixty (60) days after the Amendment No. 9 Effective Date, weekly (no later than Tuesday of the immediately succeeding week)”.

4.    Amendment Fee. In consideration of the amendments set forth herein, Borrowers shall pay to Agent, for the account of Lenders, or Agent, at its option, may charge the loan account of Borrowers maintained by Agent, an amendment fee in the amount of $25,000 (the “Amendment Fee”), which fee is fully earned and payable on the date of this Amendment No. 9 and shall constitute part of the Obligations.

5.    Representations and Warranties. Borrowers, jointly and severally, represent and warrant with and to Agent and Lenders as follows, which representations and warranties shall survive the execution and delivery hereof:

(a)    no Default or Event of Default exists or has occurred and is continuing as of the date of this Amendment No. 9;

(b)    this Amendment No. 9 and each other agreement to be executed and delivered by Borrowers in connection herewith (together with this Amendment No. 9, the “Amendment Documents”) has been duly authorized, executed and delivered by all necessary corporate or organizational action on the part of each Borrower which is a party and is in full force and effect as of the date hereof, as the case may be, and the agreements and obligations of each of the Borrowers, as the case may be, contained herein and therein constitute legal, valid and binding obligations of each of the Borrowers, enforceable against them in accordance with their terms, except as enforceability is limited by equitable principals or by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights generally;

(c)    the execution, delivery and performance of this Amendment No. 9 and the other Amendment Documents (i) are all within each Borrower’s corporate or other organizational powers and (ii) are not in contravention of law or the terms of any Borrower’s certificate of incorporation, bylaws, or other organizational documentation, or any material indenture, agreement or undertaking to which any Borrower is a party or by which any Borrower or its property are bound which such contravention could individually or in the aggregate reasonably be expected to have a Material Adverse Effect; and

(d)    all of the representations and warranties set forth in the Credit Agreement and the other Loan Documents, each as amended hereby, are true and correct in all material respects on and as of the date hereof, as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct in all material respects as of such date.

6.    Conditions Precedent.  The amendments contained herein shall only be effective upon the satisfaction of each of the following conditions precedent in a manner reasonably satisfactory to Agent or waived in writing by Agent (the date on which each of such conditions precedent are completed or waived, the “Amendment No. 9 Effective Date”):

(a)    Agent shall have received counterparts of this Amendment No. 9, duly authorized, executed and delivered by Borrowers and Lenders;

(b)    Agent shall have received in immediately available funds (or Agent shall have charged the loan account of Borrowers) the full amount of the Amendment Fee;

									
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(c)    Agent shall have received the consent or authorization from such Lenders as are required for the amendments provided for herein to execute this Amendment No. 9 on behalf of the Lenders;

(d)    Agent shall have received a true and correct copy of each consent, waiver or approval (if any) to or of this Amendment No. 9, which any Borrower is required to obtain from any other Person, and such consent, approval or waiver (if any) shall be in form and substance reasonably satisfactory to Agent;

(e)    Agent shall have received internal Flood Disaster Prevention Act
approval; and

(f)    No Default or Event of Default shall exist or have occurred and be
continuing as of the date of this Amendment No. 9 and immediately after giving effect to this Amendment No. 9.

7.    Release. In consideration of the Agent’s and the Lenders’ willingness to enter into this Amendment No. 9, each Borrower hereby releases and forever discharges the Agent and the Lenders and each of their respective affiliates, predecessors, successors and assigns, and the officers, managers, directors, employees, agents, attorneys, advisors and representatives of the foregoing (hereinafter all of the above collectively referred to as “Releasees”), from (and agrees not to sue the Releasees for) any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever (whether arising in contract, tort, in law or in equity or otherwise) that such Borrower may have or claim to have against any of the Releasees on or prior to the Amendment No. 9 Effective Date, arising under or in connection with this Amendment No. 9, the Credit Agreement, the Loan Documents, any documents or instruments delivered pursuant thereto, the transactions governed thereby or the dealings among each Borrower and its Affiliates with the Releasees with respect thereto, or in any way based on or related to any of the foregoing, including any transactions contemplated by or funded with the proceeds of the foregoing, in each case based on facts, circumstances, acts or omissions occurring or in existence on or prior to the date hereof.

8.    Effect of this Amendment. Except as expressly set forth herein, no other amendments, changes or modifications to the Loan Documents are intended or implied, and in all other respects the Loan Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the Amendment No. 9 Effective Date and Borrowers shall not be entitled to any other or further amendment by virtue of the provisions of this Amendment No. 9 or with respect to the subject matter of this Amendment No. 9. To the extent of conflict between the terms of this Amendment No. 9 and the other Loan Documents, the terms of this Amendment No. 9 shall control. The Credit Agreement and this Amendment No. 9 shall be read and construed as one agreement.

9.    Governing Law. The validity, interpretation and enforcement of this Amendment No. 9 and any dispute arising out of the relationship between the parties hereto whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

10.    Binding Effect. This Amendment No. 9 shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

									
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11.    Further Assurances. Borrowers shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Agent to effectuate the provisions and purposes of this Amendment No. 9.

12.    Entire Agreement. This Amendment No. 9 represents the entire agreement and understanding concerning the subject matter hereof among the parties hereto, and supersedes all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written.

13.    Headings. The headings listed herein are for convenience only and do not constitute matters to be construed in interpreting this Amendment No. 9.

14.    Counterparts. This Amendment No. 9, any documents executed in connection herewith and any notices delivered under this Amendment No. 9, may be executed by means of
(i) an electronic signature that complies with the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, or any other relevant and applicable electronic signatures law; (ii) an original manual signature; or (iii) a faxed, scanned, or photocopied manual signature. Each electronic signature or faxed, scanned, or photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Agent reserves the right, in its sole discretion, to accept, deny, or condition acceptance of any electronic signature on this Amendment No. 9 or on any notice delivered to Agent under this Amendment No. 9. This Amendment No. 9 and any notices delivered under this Amendment No. 9 may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument. Delivery of an executed counterpart of a signature page of this Amendment No. 9 and any notices as set forth herein will be as effective as delivery of a manually executed counterpart of the Amendment No. 9 or notice.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

									
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    IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 9 to be duly executed and delivered by their authorized officers as of the day and year first above written. 

US BORROWER

HAMILTON BEACH BRANDS, INC.

By: /s/ Michelle Mosier

Title: Senior Vice President and Chief Financial Officer

CANADIAN BORROWER

HAMILTON BEACH BRANDS CANADA, INC.

By: /s/ Michelle Mosier

Title: Senior Vice President and Chief Financial Officer

[Signatures Continued on Following Page]

									
			Amendment No. 9 to A&R Credit Agreement  – Hamilton Beach

AGENT AND LENDERS
WELLS FARGO BANK, NATIONAL 
ASSOCIATION, as Agent and a Lender
By: /s/ Sang Kim
Title: Authorized Signatory

WELLS FARGO CAPITAL FINANCE
CORPORATION CANADA, as a Lender
By: /s/ David G. Phillips
Title: Senior Vice President Credit Officer, Canada Wells Fargo Capital Finance Corporation Canada    

									
			Amendment No. 9 to A&R Credit Agreement  – Hamilton Beach

BANK OF AMERICA, N.A., as a Lender
By: /s/ Michelle L. Terwilleger
Title: Vice President

									
			Amendment No. 9 to A&R Credit Agreement  – Hamilton Beach

TRUIST BANK, as a Lender
By: /s/ Mark Bohntinsky
Title: Managing Director

									
			Amendment No. 9 to A&R Credit Agreement  – Hamilton Beach

Exhibit A
to
Amendment No. 9 to Amended and Restated Credit Agreement

Schedule C-1 
to
Credit Agreement 

Revolver Commitments

									
	Lender	US Revolver Commitment	Canadian Revolver Commitment
	Wells Fargo Bank, National Association	(i) $62,200,000 during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date, and (ii) $55,000,000 at all times thereafter	$-0-
	Wells Fargo Capital Finance Corporation Canada	$-0-	$10,000,000
	Bank of America, N.A.	(i) $33,900,000 during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date, and (ii) $30,000,000 at all times thereafter	$-0-
	Truist Bank	(i) $33,900,000 during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date, and (ii) $30,000,000 at all times thereafter	$-0-
	Total	(i) $130,000,000 during the period from and including the Amendment No. 9 Effective Date through and including the date that is sixty (60) days after the Amendment No. 9 Effective Date, and
(ii)$115,000,000 at all times thereafter
	$10,000,000

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