Document:

ex105dougseveranceletter

EXHIBIT 10.5

September 25, 2012

Douglas Raucy
16404 Brieva DE Avila
Tampa, FL 33613-1064

Dear Doug,

In connection with your employment with Kingsway America Inc. (“Company” or we), this letter shall constitute our sole agreement relating to amounts owing to you in connection with any termination of your employment.  For the avoidance of doubt, the severance payment contemplated herein supersedes and replaces any other severance payment offered by the Company, such as under the Kingsway America Inc. Severance Plan, but does not affect your rights with respect to COBRA or any other state statutes, if any.

In the event that we terminate your employment without Cause (as hereinafter defined), or you terminate your employment for Good Reason (as hereinafter defined), we will pay you as severance an amount equal to twelve (12) months base salary at the rate being paid on the date your employment is terminated, less applicable withholdings, in one (1) lump-sum payment no later than fourteen (14) days after your separation date.

For purposes of this agreement, “Cause” shall be defined as involuntary separation from employment for any of the following reasons:

		
	(1)
	An intentional act of fraud, embezzlement, theft or any other illegal or unethical act in connection with the performance of your duties as an employee of the Company that the Company determines, acting in good faith, has materially injured or is highly likely to materially injure the Company, or any other terminable offense under the Company's policies and practices;

		
	(2)
	intentional damage to the Company’s assets;

		
	(3)
	conviction of (or plea of nolo contendere to) any felony or other crime involving moral turpitude;

		
	(4)
	improper, willful and material disclosure or use of the Company’s confidential information or other willful material breach of your duty of loyalty to the Company;

		
	(5)
	a willful, material violation of the Company’s policies and procedures as set out in its employee handbook or a material violation of the Company’s code of conduct that the Company determines, acting in good faith, has materially injured or is highly likely to materially injure the Company, monetarily or otherwise; or

		
	(6)
	your willful failure or refusal to follow the lawful and good faith directions of the Company, as determined in good faith by the Company.

EXHIBIT 10.5

For purposes of this agreement, “Good Reason” shall be defined as voluntary separation from employment for any of the following reasons:

		
	(1)
	a material diminution of your base salary;

		
	(2)
	any material diminution in your authority, duties or responsibilities; or

		
	(3)
	any material breach by the Company of this agreement.

No severance payment whatsoever shall be payable upon your voluntary resignation without Good Reason or upon termination of your employment for Cause.  

As consideration for the severance and benefits to be provided to you pursuant to this letter and as a condition to your receipt of any payments hereunder, you agree to execute a separation and release agreement in which you will agree to release any and all claims against the Company, other than (1) claims for unemployment compensation; (2) indemnification rights existing at law, pursuant to the bylaws of Employer or any of its parents, subsidiaries, or affiliates, or under any separate written agreement; (3) coverage rights under directors and officers policies of insurance; (4) vested employee benefits, if any.

Sincerely,

KINGSWAY AMERICA INC.

By: /s/ Larry G. Swets, Jr.
Larry G. Swets, Jr.

By:  /s/ Leeann Repta
Leeann Repta

Acknowledgement:

/s/ Douglas Raucy
Douglas Raucy

Dated: 9/27/2012ex107trademarklicense

EXHIBIT 10.7

TRADEMARK LICENSE AGREEMENT 
 
This TRADEMARK LICENSE AGREEMENT (this “Agreement”) is made and effective as of _____________, 2014 (the “Effective Date”) by and between 1347 Advisors LLC a limited liability company organized under the laws of the State of Delaware (the “Licensor”), and 1347 Property Insurance Holdings, Inc., a corporation organized under the laws of the State of Delaware (“Corporation”) (each a “party,” and collectively, the “parties”). 
 
RECITALS 
 
WHEREAS, Licensor is the owner of the trade name “1347” (the “Licensed Mark”) in the United States of America (the “Territory”);
 
WHEREAS, Corporation is an insurance holding company with a focus on homeowner’s insurance; 

WHEREAS, Licensor provides strategic consulting, corporate development, corporate finance and actuarial services to its parent company, Kingsway Financial Services Inc., its affiliates and third-party clients; and
  
WHEREAS, Corporation desires to use the Licensed Mark in its corporate name and the corporate name which appears in its official logo as of January 8, 2014 (the “Official Logo”), a copy of which is attached hereto and incorporated herein as Exhibit A, and Licensor is willing to permit Corporation to use the Licensed Mark, subject to the terms and conditions of this Agreement;
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 
ARTICLE 1 
LICENSE GRANT 
 
1.1 License. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Corporation, and Corporation hereby accepts from Licensor, a personal, non-exclusive, royalty-free right and license to use the Licensed Mark solely and exclusively as an element of Corporation’s name “1347 Property Insurance Holdings, Inc.” and as an element of the Corporation’s Official Logo.  Except as provided above, neither Corporation nor any affiliate, owner, director, officer, employee, or agent thereof shall otherwise revise, amend, change or use the Licensed Mark or any derivative thereof without the prior express written consent of Licensor in its sole and absolute discretion.  All rights not expressly granted to Corporation hereunder shall remain the exclusive property of Licensor. 
 
1.2 Licensor’s Use. Nothing in this Agreement shall preclude Licensor, its affiliates, or any of their respective successors or assigns from using or permitting other entities to use the Licensed Mark whether or not such entity directly or indirectly competes or conflicts with Corporation’s business in any manner. 
 

EXHIBIT 10.7

ARTICLE 2 
OWNERSHIP 
 
2.1 Ownership. Corporation acknowledges and agrees that Licensor is the owner of all right, title, and interest in and to the Licensed Mark, and all such right, title, and interest shall remain with the Licensor. Corporation shall not otherwise contest, dispute, or challenge Licensor’s right, title, and interest in and to the Licensed Mark. 
 
2.2 Goodwill. All goodwill and reputation generated by Corporation’s use of the Licensed Mark shall inure to the benefit of Licensor.  Corporation shall not by any act or omission use the Licensed Mark in any manner that disparages or reflects adversely on Licensor or its business or reputation. Except as expressly provided herein, neither party may use any trademark or service mark of the other party without that party’s prior written consent, which consent shall be given in that party’s sole discretion. 
 
ARTICLE 3 
COMPLIANCE 
 
3.1 Quality Control. In order to preserve the inherent value of the Licensed Mark, Corporation agrees to use reasonable efforts to ensure that it maintains the quality of the Corporation’s business and the operation thereof equal to the standards prevailing in the operation of Licensor’s and Corporation’s business as of the date of this Agreement. The Corporation further agrees to use the Licensed Mark in accordance with such quality standards as may be reasonably established by Licensor and communicated to the Corporation from time to time in writing, or as may be agreed to by Licensor and the Corporation from time to time in writing. 
 
3.2 Compliance With Laws. Corporation agrees that the business operated by it in connection with the Licensed Mark shall comply with all laws, rules, regulations and requirements of any governmental body in the Territory or elsewhere as may be applicable to the operation, advertising and promotion of the business, and shall notify Licensor of any action that must be taken by Corporation to comply with such law, rules, regulations or requirements. 
 
3.3 Notification of Infringement. Each party shall immediately notify the other party and provide to the other party all relevant background facts upon becoming aware of (i) any registrations of, or applications for registration of, marks in the Territory that do or may conflict with any Licensed Mark, and (ii) any infringements, imitations, or illegal use or misuse of the Licensed Mark in the Territory. 
 
ARTICLE 4 
REPRESENTATIONS AND WARRANTIES 
 
4.1 Mutual Representations. Each party hereby represents and warrants to the other party as follows: 
 
(a) Due Authorization. Such party is a corporation duly incorporated and in good standing as of the Effective Date, and the execution, delivery and performance of this Agreement by such party have been duly authorized by all necessary action on the part of such party. 
 
(b) Due Execution. This Agreement has been duly executed and delivered by such party and, with due authorization, execution and delivery by the other party, constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms. 
 

EXHIBIT 10.7

(c) No Conflict. Such party’s execution, delivery and performance of this Agreement do not: (i) violate, conflict with or result in the breach of any provision of the charter or by-laws (or similar organizational documents) of such party; (ii) conflict with or violate any law or governmental order applicable to such party or any of its assets, properties or businesses; or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of any contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which it is a party. 
 
ARTICLE 5 
TERM AND TERMINATION 
 
5.1 Term.  Unless otherwise agreed to in writing by the parties hereto, the term of this Agreement shall expire upon (i) the liquidation or dissolution of the Corporation or (ii) sixty (60) days written notice to the other party by either Licensor or Corporation. 
 
5.2 Upon Termination. Upon expiration or termination of this Agreement, all rights granted to Corporation under this Agreement with respect to the Licensed Mark shall cease, and Corporation shall immediately discontinue use of the Licensed Mark. 
 
ARTICLE 6 
MISCELLANEOUS 
 
6.1 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign, delegate or otherwise transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party. No assignment by either party permitted hereunder shall relieve the applicable party of its obligations under this Agreement. Any assignment by either party in accordance with the terms of this Agreement shall be pursuant to a written assignment agreement in which the assignee expressly assumes the assigning party’s rights and obligations hereunder. 
 
6.2 Independent Contractor. Except as expressly provided or authorized, neither party shall have, or shall represent that it has, any power, right or authority to bind the other party to any obligation or liability, or to assume or create any obligation or liability on behalf of the other party. 
 
6.3 Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service (with signature required), by facsimile, or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses: 
 

EXHIBIT 10.7

	
			
	 
	 
	 

	If to Licensor:
 
1347 Advisors LLC
150 Pierce Road, 6th Floor
Itasca, Illinois  60143
ATTN: LEGAL DEPARTMENT
	 
	If to Corporation:
 
1347 Property Insurance Holdings, Inc.
9100 Bluebonnet Centre Blvd., Ste. 502
Baton Rouge, LA  70809
ATTN:  PRESIDENT

 
6.4 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without giving effect to the principles of conflicts of law rules. The parties unconditionally and irrevocably consent to the exclusive jurisdiction of the courts located in the State of Delaware and waive any objection with respect thereto, for the purpose of any action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. 
 
6.5 Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by all parties hereto. 
 
6.6 No Waiver. The failure of either party to enforce at any time for any period the provisions of or any rights deriving from this Agreement shall not be construed to be a waiver of such provisions or rights or the right of such party thereafter to enforce such provisions, and no waiver shall be binding unless executed in writing by all parties hereto. 
 
6.7 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. 
 
6.8 Headings. The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. 
 
6.9 Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed shall be deemed to be an original instrument and all of which taken together shall constitute one and the same agreement. 
 
6.10 Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, between the parties with respect to such subject matter. 
 
6.11 Third party Beneficiaries. Nothing in this Agreement, either express or implied, is intended to or shall confer upon any third party any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
 
[Remainder of Page Intentionally Blank] 

EXHIBIT 10.7

 
IN WITNESS WHEREOF, each party has caused this Agreement to be executed as of the Effective Date by its duly authorized officer. 
 
	
			
	 
	 
	 

	LICENSOR:

	 

	1347 Advisors LLC

	 

	 
	 
	 

	By:
	 
	______________________

	Name:
	 
	 

	Title:
	 
	 

	 

	LICENSOR:

	 

	__________________

	 

	 

	CORPORATION:

	 

	1347 Property Insurance Holdings, Inc.

	 
	 

	 
	 
	 

	By:
	 
	______________________

	Name:
	 
	 

	Title:
	 
	 

EXHIBIT 10.7

Exhibit A

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