Document:

exv10w2

Exhibit 10.2

SunCoast Holdings, Inc.

	 	 	 
	401 E. Las Olas Blvd. Suite 1540

	 	Telephone 954.670.2900
	Ft. Lauderdale, FL 33301
	 	 

November 17, 2006

Ted Bryant

12507 SE
67 St. 
Bellevue, WA
98006

Dear Ted:

On behalf of SunCoast Holdings, Inc., I am pleased to offer you the position as
the Director of Business Development of SunCoast Holdings, Inc. We believe your
skills and abilities are well suited to our current needs, and we look forward to
your contributions.

As the Director of Business Development, you will be responsible for all
business development matters of the company and its subsidiaries. You will be
reporting directly to me.

The
following summarizes our understanding of your employment:

	 	1.	 	HIRE DATE -TBD
	 
	 	2.	 	COMPENSATION — This is a full-time position with a bi-weekly salary of
$6,923.07, which is the equivalent of $180,000 per year. You will
receive an increase in salary to $200,000 per year which will be
effective on January 1 , 2008
	 
	 	3.	 	INCENTIVE BONUS PLAN — You will be awarded an Incentive Bonus not less
than $12,500. The award will be paid by the end of the First quarter
of the following year. Subsequent incentives will be determined under
our incentive bonus plan whereby your award will be determined by
goals and expectations as approved the Board of Directors. These
awards range between 0% — 50% of base pay and are determined on goals
that are financial in nature.
	 
	 	4.	 	SIGN ON BONUS — You will be awarded a $7,500 sign on bonus which will
be payable at start date.
	 
	 	5.	 	STOCK OPTIONS — This position is eligible for stock option grants.
Stock Option grants are subject Board approval and all provisions of
the SunCoast Holdings, Inc. Stock Option Plan. You will receive
5,000 stock options at signing. Subsequent grants are subject to board
approval usually done every February Board meeting.
	 
	 	6.	 	BENEFITS — You will be eligible for participation in employee benefit
plans offered by the Company. Benefits will be effective the first
day of the month following 30 days of employment.
	 
	 	7.	 	VACATION — Senior management and executives are provided four weeks of
vacation, prorated based on date of hire, with additional weeks in
accordance with the anniversary dates in the vacation policy.
	 
	 	8.	 	MOVING EXPENSES — Since it is difficult to estimate the costs of
moving you and your family to Fort Lauderdale, FL, we agree to pay for
all reasonable moving and relocation expenses. These expenses will
include, but not be limited to, moving your tangible personal
property, travel expenses for you and your family, temporary housing
for a period not to exceed three months, and other miscellaneous
personal expenses brought

 

 

SunCoast Holdings, Inc.

	 	 	 
	401 E. Las Olas Blvd. Suite 1540

	 	Telephone 954.670.2900
	Ft. Lauderdale, FL 33301
	 	 

	 	 	 	to or caused by your move to Florida. In all instances, the expenses will be
reasonable and will be incurred only after obtaining prior approval by SunCoast
Holdings, Inc.

	 	9.	 	Severance- 1 year severance.

We are excited that you have selected SunCoast Holdings, Inc. and look forward to having you on our
team.

Sincerely,

Steven M. Mariano

Chairman and CEO

Please signify your acceptance and understanding of the above terms by signing below. You
understand that you are free to resign at any time with or without cause and without prior notice.
SunCoast also reserves the same right to terminate employment at anytime with or without cause and
without prior notice except as may be required by law. This offer of employment does not constitute
an agreement or contract for employment for any specified period or definite duration. You
understand that no representative of SunCoast, other than an authorized officer, has the authority
to make any assurances to the contrary. You further understand that any such assurances must be in
writing and signed by an authorized officer.

	 	 	 	 	 	 	 	 	 
	 

Signature

	 	 
	 	Dateexv10w4

EXHIBIT 10.4

401 E. Las Olas Blvd., Ste. 1540 Ft. Lauderdale, FL 33301 • Phone (954) 670-2900

August 1, 2007

Timothy J. Ermatinger

41 NW 128th Ave.

Plantation, FL 33325

On behalf of SunCoast Holdings, Inc., I am pleased to offer you the position of President and Chief
Operating Officer of Patriot Risk Management, Inc., a subsidiary of SunCoast Holdings, Inc.

The following summarizes our understanding of your employment as of August 1, 2007:

	 	1.	 	Effective Date of Transition – August 1, 2007. You will report to the Board of Directors of
Patriot Rick Management.
	 
	 	2.	 	Compensation – This is an exempt full-time position with an annual salary of $205,000 per
year.
	 
	 	3.	 	Stock Options – Your current stock options remain unchanged and unaffected. You may be
eligible for additional option grants going forward.
	 
	 	4.	 	Bonus Plan – Your eligibility in the company bonus plan remains unchanged.
	 
	 	5.	 	Benefits – You will continue to be eligible for participation in employee benefit plans
offered by the Company. Benefits are already in effect.
	 
	 	6.	 	Vacation – You current vacation grant of three weeks remains unchanged.
	 
	 	7.	 	Severance Agreement – 1-year severance subject to agreement.

Continued best wishes in your new assignment. Should you have questions, feel free to contact me
directly at 954-670-2901.

Sincerely,

Steven M. Mariano

President and Chief Executive Officer, SunCoast Holdings, Inc.

Please signify your acceptance and understanding of the above terms by signing below. You
understand that you are free to resign at any time with our without cause and without prior notice.
SunCoast also reserves the same right to terminate employment at anytime with or without cause and
without prior notice except as may be required by law. This offer of employment does not constitute
an agreement or contract for employment for any specified period of definite duration. You
understand that no representative of SunCoast, other than an authorized officer, has the authority
to make any assurances to the contrary. You further understand than any such assurances must be in
writing and signed by an authorized officer.

	 	 	 
	 

	 	 
	Signature

	 	Dateexv10w6

Exhibit 10.6

EXECUTIVE

EMPLOYMENT AGREEMENT

     This Executive Employment Agreement (“Agreement”) is entered into as of February 11, 2008 (the
“Effective Date”), by and between SunCoast Holdings, Inc. (the “Company”), a corporation organized
under the laws of Delaware, with its principal administrative office at 401 East Las Olas
Boulevard, Suite 1540, Fort Lauderdale, Florida 33301, and Michael Grandstaff (“Executive”).

     WHEREAS, the Company wishes to assure itself of the services or continued services of
Executive for the period provided in this Agreement; and

     WHEREAS, Executive is willing to serve (or continue to serve) in the employ of the Company on
a full-time basis for said period.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other
terms and conditions hereinafter provided, the parties hereby agree as follows:

	1.	 	Position and Responsibilities. The Company hereby employs Executive and Executive accepts
employment as the Senior Vice President and Chief Financial Officer of the Company, on the
terms and conditions herein set forth. Executive shall have such duties, responsibilities and
authority as is commensurate with his position and shall report to the Chief Executive Officer
and the Board of Directors of the Company (the “Board”). Executive shall also perform such
other duties as may from time to time be assigned to Executive by the Chairman of the Board or
the Board itself. During said period, Executive also agrees to serve, if elected, as an
officer and director of any direct or indirect subsidiary of the Company (individually, a
“Subsidiary” or collectively, the “Subsidiaries”).

	2.	 	Term. The period of Executive’s employment under this Agreement shall commence as of the
Effective Date and shall continue for a period of 36 full calendar months thereafter (the
“Initial Term”) provided that such term shall be automatically extended for an additional
12-month period commencing at the end of the Initial Term, and successively thereafter for
additional 12-month periods (each such period an “Additional Term”), unless either party shall
have given notice to the other party that such party does not desire to extend the term of
this Agreement, such notice to be given at least 90 days prior to the end of the Initial Term
or the applicable Additional Term (the Initial Term and any Additional Terms, if applicable,
collectively, the “Employment Term”). The date of expiration of the Employment Term shall be
referred to herein as the “Termination Date.”

 

 

	3.	 	Extent of Services. During the term hereof, Executive shall devote his entire attention
and energy to the business and affairs of the Company and Subsidiaries on a full-time basis
and shall not be engaged in any other business activity, regardless of whether such business
activity is pursued for gain, profit or other pecuniary advantage, unless the Company
otherwise consents; but this shall not be construed as preventing Executive from investing
his assets in such form or manner as will not require any services on the part of Executive
in the operation of the affairs of the companies in which such investments are made and will
not otherwise conflict with the provisions of this Agreement. Full-time, as used above,
shall mean a 40-hour work week, or such longer work week as the Board shall from time to
time adopt. The foregoing shall not be deemed to prevent Executive from participating in
any charitable or not-for-profit organization to a reasonable extent, provided however that
Executive does not receive any salary or other remuneration from such charity or
not-for-profit organization. Executive agrees to comply with all codes of conduct, personnel
policies and procedures applicable to senior executives of the Company including, without
limitation, policies regarding sexual harassment, conflicts of interest and insider trading.

	4.	 	Compensation.

	 	(a)	 	Salary. During the term of this Agreement, the Company shall pay Executive an
annual salary of not less than $350,000 (“Annual Salary”), payable in accordance with
the Company’s regular payroll procedures. During each year that this Agreement is in
effect, the Company will review possible increases in Executive’s salary at least
annually, with any such increases subject to the determination of the Board or the
Compensation Committee of the Board.
	 
	 	(b)	 	Bonus. Executive shall be eligible to receive an annual bonus in an amount as
may be determined by the Board, pursuant to a bonus plan which may then be in effect or
otherwise. Executive’s target bonus for any fiscal year of the Company shall be up to
50% of Executive’s Annual Salary, subject to the attainment of such goals as the Board
or Compensation Committee shall establish.
	 
	 	(c)	 	Business Expenses. Executive shall be entitled to prompt reimbursement for all
reasonable expenses incurred by him in furtherance of the business of the Company in
connection with Executive’s performance of his duties hereunder, in accordance with the
policies and procedures established for executive officers of the Company, and provided
Executive properly accounts for such expenses.
	 
	 	(d)	 	Club Expenses. The Company shall pay up to $60,000 toward the initiation fee
for Executive to become a member of one private country club, golf club, tennis club or
similar club or association for business use selected by Executive and approved by the
Compensation Committee of the Board, which approval shall not be unreasonably withheld
or delayed. The Company will also provide Executive with a gross-up payment so that
such initiation fee payment (and any gross-up payment) do not result in Executive
incurring any net expense for taxes associated with such payment. The Company shall pay
all annual or other periodic fees and dues for Executive to remain a member of such
club. Fees and expenses under

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	 	 	 	this Section 4(d) are subject to an annual budget to be prepared by Executive and approved
by the Compensation Committee. If Executive’s employment with the Company terminates
within one year after the Effective Date for any reason other then death, disability,
resignation of Executive for Good Reason (as defined below) or termination without cause
(as defined below), any amount paid by the Company for the initiation fee referenced above
shall be reimbursed by the Executive to the Company.

	 	(e)	 	Vacation. Executive will be provided four weeks of vacation per calendar year, prorated based
on date of hire, with additional weeks in accordance with the anniversary dates pursuant to
the Company’s vacation policy.
	 
	 	(f)	 	Relocation Expenses. The Company shall reimburse Executive for all
reasonable moving expenses incurred or paid by Executive in relocating his current residence
to Florida, including the brokerage commission on the sale of Executive’s Michigan residence,
subject to Executive providing reasonable substantiation and documentation as specified by
the Company. The Company will provide Executive with a gross-up payment if necessary so that
such reimbursements (and any gross-up payment) do not result in Executive incurring any net
expense for taxes associated with the reimbursement of moving expenses. In addition, the
Company shall reimburse Executive’s temporary living expenses in Ft. Lauderdale through June
30, 2008 (or such earlier date as Executive has obtained a new residence in Florida).
	 
	 	(g)	 	Automobile Allowance. During the Employment Term, the Company shall pay or provide Executive
an automobile allowance of $1,000 per month in accordance with policies established by the
Company from time to time.
	 
	 	(h)	 	Stock Options. Upon the successful completion of the Company’s initial public offering as
currently planned, and subject to Board approval, Executive shall be eligible to receive a
grant of stock options to purchase 100,000 shares with an exercise price equal to the initial
public offering price, upon such terms as may be set forth in the stock option plan and an
accompanying stock option agreement pursuant to which such options will be granted, with such
terms to include a three year vesting, 10 year duration, and a 90-day period to exercise
vested options upon termination of Executive’s employment with the Company for reasons other
than Cause (as defined below). If the Company’s initial public offering is not completed as
planned, (i) Executive shall be eligible to receive, subject to Board approval, a stock
option grant that represents the approximate equivalent equity interest in the Company based
on the then current capital structure of the Company, and (ii) the Company shall repurchase
the shares issued to Executive upon exercise of such options at a price per share equal to
the Company’s most recent annual independent valuation of its share price, provided that if
the purchase price exceeds $100,000, the Company may pay the purchase price over a 5 year
period, with interest thereon at the minimum applicable federal rate under Section 7872 of
the Internal Revenue Code of 1986, as amended (the “Code”), and further provided that any
payment of the purchase price is subject to the

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	 	 	 	Company’s determination that making such payment, to the extent that the proceeds
to make such payment first need to paid to the Company as a dividend from the
Company’s insurance company subsidiary or subsidiaries, will not materially impair
such subsidiaries’ statutory policyholders’ surplus.
	 
	 	(i)	 	Other Benefits. Executive shall be entitled to participate in all medical and
other employee plans of the Company, if any, on the same basis as other executives of
the Company, subject in all cases to the respective terms of such plans.

	5.	 	Termination.

	 	(a)	 	Death. This Agreement and Executive’s employment hereunder shall terminate
immediately upon Executive’s death. In such event, the Company shall be obligated to
pay only Executive’s salary to the date of Executive’s death and any earned but unpaid
bonus with respect to any calendar year ended prior to the date of termination.
	 
	 	(b)	 	Incapacity. To the extent permitted by law, if Executive is absent from his
employment for reasons of illness or other physical or mental incapacity which renders
Executive unable to perform the essential functions of his position, with or without
reasonable accommodation, for more than an aggregate of 90 days, whether or not
consecutive, in any period of twelve consecutive months, then upon at least 60 days’
prior written notice to Executive, if such is consistent with applicable law, the
Company may terminate this Agreement and Executive’s employment hereunder, unless,
within that notice period, Executive shall have resumed performance of the essential
functions of his positions, with or without reasonable accommodation.
	 
	 	(c)	 	Termination by the Company.

	 	(i)	 	Termination for Cause. The Company may terminate this
Agreement and Executive’s employment hereunder at any time for Cause. As used
herein, “Cause” shall mean:

	 	(A)	 	a material breach by Executive of
Executive’s duties and obligations hereunder, including but
not limited to gross negligence in the performance of his duties
and responsibilities or the willful failure to follow the Board’s
directions; provided, however, that Cause shall not exist unless the
Company has provided Executive with written notice setting forth the
existence of the non-performance, failure or breach and Executive shall
not have cured same within 30 days after receiving such notice;
	 
	 	(B)	 	willful misconduct by Executive which
in the reasonable determination of the Board has caused or is likely
to cause material injury to the reputation or business of the Company;

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	 	(C)	 	any act of fraud, material misappropriation or other dishonesty by
Executive; or
	 
	 	(D)	 	Executive’s conviction of a felony.

	 	 	 	Executive shall be considered to have been discharged for Cause if the Company determines within
30 days after his resignation or discharge that discharge for Cause was warranted. In the event of
termination for Cause, the Company shall be obligated to pay Executive only Executive’s salary up
to the date of termination and any earned but unpaid bonus with respect to any calendar year ended
prior to the date of termination.

	 	(ii)	 	Termination Without Cause.

	 	(A)	 	Notwithstanding anything contained herein to the contrary, the Company also
may terminate this Agreement and Executive’s employment hereunder for reason other
than death, incapacity or cause upon no less than 60 days’ prior written notice to
Executive. In the event that the Company terminates this Agreement pursuant to the
provisions of this Section 5(c)(ii), Executive shall be entitled to receive a
severance payment equal to 100% of Executive’s Annual Salary at the time of
termination (the “Severance Payment”). Subject to Section 10 hereof, the Severance
Payment shall be payable in a series of 12 monthly installments
commencing on the first day of the month following the date of termination. If for any
reason any court determines that any of the restrictions contained in Section 8 hereof
are not enforceable, the Company shall have no obligation to pay the Severance Payment
or any remaining installment thereof to Executive. The Company agrees that it will not
petition any court to determine that any of the restrictions contained in Section 8
hereof are not enforceable in order to avoid the obligation to pay the Severance
Payments referenced above.
	 
	 	(B)	 	If the Company is obligated by law (including the WARN Act or any similar
state or foreign law) to pay Executive severance pay, a termination indemnity, notice
pay, or the like, then the amount of such legally required pay shall reduce the
Severance Payment hereunder.
	 
	 	(C)	 	Notwithstanding anything herein to the contrary, the payment of any Severance
Payments hereunder to Executive shall be subject to the execution by Executive (and
failure to revoke) of a general release of the Company and its affiliates of any and
all claims under this Agreement or related to or arising out of Executive’s employment
hereunder, in a form and manner satisfactory to the Company and Executive.

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	 	(D)	 	Executive will not be entitled to receive Severance Payments
under this Section 5(c)(ii) in the event that this Agreement is
terminated as a result of the Company’s giving notice of non-renewal
prior to the end of the Initial Term or any Additional Term as
provided in Section 2 above.
	 
	 	(E)	 	In the event of termination by the Company
without Cause, the Company shall be obligated to pay Executive only
Executive’s salary up to the date of termination and any earned but
unpaid bonus with respect to any calendar year ended prior to the date
of termination.

	 	(d)	 	Termination by Executive Without Good Reason. Executive may terminate this
Agreement and his employment hereunder for any reason whatsoever, upon no less than 120
days’ prior written notice to the Company. In the event that Executive terminates
this Agreement pursuant to the provisions of this Section 5(d) without “Good Reason” as
hereinafter defined, the Company shall be obligated to pay Executive only Executive’s
salary up to the date of termination and any earned but unpaid bonus with respect to
any calendar year ended prior to the date of termination.
	 
	 	(e)	 	Termination by Executive For Good Reason. If Executive resigns for Good
Reason, then Executive’s termination shall be treated as a termination by the Company
without Cause pursuant to Section 5(c)(ii) hereof. As used herein, a resignation for
“Good Reason” shall mean a resignation by Executive within 90 days following the
initial existence of one or more of the following conditions arising without
Executive’s consent:

	 	(i)	 	a material reduction in Executive’s Annual Salary;
	 
	 	(ii)	 	a material diminution in Executive’s authority, duties, or
responsibilities;
	 
	 	(iii)	 	a relocation of Executive’s principal place of employment
by more than 50 miles from its location at the Effective Date of this
Agreement; or
	 
	 	(iv)	 	any other action or inaction that constitutes a material
breach by the Company of this Agreement;

	 	 	 	provided, however, that Good Reason shall not exist unless Executive has provided
the Company with a written notice setting forth the reason(s) for the existence of
Good Reason within 30 days of the initial existence of the condition(s), and the
Company has not cured the reason(s) for the existence of Good Reason within 30 days
after receiving such notice.

	6.	 	Change in Control.

	 	(a)	 	Change in Control Severance Compensation. If within twelve months
following a Change in Control (as defined below) Executive’s employment with

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	 	 	 	the Company is terminated by the Company without Cause or Executive resigns for Good
Reason, then Executive shall be entitled to terminate this Agreement and employment
hereunder and receive from the Company a payment equal to 200% of the amount of the
Severance Payment specified in Section 5(c)(ii) or 5(e) of this Agreement (the “Change in
Control Compensation”). Subject to Section 10 hereof, the Change in Control Compensation
shall be payable in 12 monthly installments commencing on the first day of the month
following the date of termination. If for any reason any court determines that any of the
restrictions contained in Section 8 hereof are not enforceable, the Company shall have no
obligation to pay the Change in Control Compensation or any remaining installment thereof
to Executive. The Company agrees that it will not petition any court to determine that any
of the restrictions contained in Section 8 hereof are not enforceable in order to avoid
the obligation to pay the Change of Control Compensation referenced above.
	 
	 	(b)	 	Change in Control. For purposes of this Agreement, “Change in Control” shall mean the
occurrence of any of the following events:

	 	(i)	 	the date any one person, or more than one “person” acting as a group,
acquires (or has acquired during the twelve-month period ending on the date of the
most recent acquisition by such person(s)) ownership of common stock possessing 51% or
more of the total voting power of the common stock of the Company;
	 
	 	(ii)	 	individuals who at any time during the term of this Agreement constitute the
board of directors of the Company (the “Incumbent Board”) cease for any reason to
constitute at least a majority thereof, provided that any person becoming a director
subsequent to the date hereof whose election or nomination for election was approved
by a vote of at least three-quarters of the directors comprising the Incumbent Board
(either by a specific vote or by approval of the proxy statement of the Company in
which such person is named as a nominee for director, without objection to such
nomination) shall be, for purposes of this clause (ii) considered as though such
person were a member of the Incumbent Board;
	 
	 	(iii)	 	any consolidation or merger to which the Company is a party, if following
such consolidation or merger, stockholders of the Company immediately prior to such
consolidation or merger shall not beneficially own securities representing at least
51% of the combined voting power of the outstanding voting securities of the
surviving or continuing corporation; or
	 
	 	(iv)	 	any sale, lease, exchange or other transfer (in one transaction or in a
series of related transactions) of all, or substantially all, of the assets of the
Company, other than to an entity (or entities) of which the Company or the
stockholders of the Company immediately prior to such transaction beneficially own
securities representing at least 51% of the combined voting power of the outstanding
voting securities.

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	 	(c)	 	Nonduplication of Benefits. If Executive receives any Change in Control
Compensation under this Section 6, he or she shall not be entitled to receive any
Severance Payments under Section 5(c)(ii) or 5(e) hereof.
	 
	 	(d)	 	General Release. Notwithstanding anything herein to the contrary, the payment
of any Change in Control Compensation hereunder to Executive shall be subject to the
execution by Executive (and failure to revoke) of a general release of the Company and
its affiliates of any and all claims under this Agreement or related to or arising out
of Executive’s employment hereunder, in a form and manner satisfactory to the Company
and Executive.

	7.	 	Tax and Other Restrictions. Notwithstanding anything herein to the contrary:

	 	(a)	 	Excess Parachute Payments. In the event that payment of any amount under this
Agreement, including, but not limited to, any Severance Payment under Section 5(c)(ii)
or 5(e) or Change in Control Compensation under Section 6, would cause Executive to be
the recipient of an excess parachute payment within the meaning of section 280G(b) of
the Code, the amount of the payments to be made to Executive pursuant to this Agreement
shall be reduced to an amount equal to 299% of Executive’s “base amount” within the
meaning of Code section 280G. The manner in which such reduction occurs, including
the items of payment and amounts thereof to be reduced, shall be determined by the
Company.
	 
	 	(b)	 	Payments in Excess of $1 Million. If any payment hereunder, including but not
limited to, a Severance Payment under Section 5(c)(ii) or 5(e) or Change in Control
Compensation under Section 6, would not be deductible by the Company for federal income
tax purposes by reason of Code section 162(m), or any similar or successor statute
(excluding Code section 280G), such payment shall be deferred and the amount thereof
shall be paid to Executive at the earliest time that such payment shall be deductible
by the Company.

	8.	 	Covenants of the Executive.

	 	(a)	 	Nonsolicitation. During the Employment Term and for a period of one year
thereafter, Executive shall not, directly or indirectly, (i) employ, solicit for
employment or otherwise contract for the services of any individual who is or was an
employee of the Company or any of its Subsidiaries during the Employment Term; (ii)
otherwise induce or attempt to induce any employee of the Company or its Subsidiaries
to leave the employ of the Company or such Subsidiary, or in any way knowingly
interfere with the relationship between the Company or any such Subsidiary and any
employee respectively thereof, provided, however, that this clause (ii) shall not
prohibit the activities described in the preceding clause (i) following termination of
the Employment Term with respect to any individual who was not an employee of the
Company or its Subsidiaries during the Employment Term; or (iii) induce or attempt to
induce any customer, supplier, broker, agent, licensee or other business relation of
the Company or any Subsidiary of the Company to cease doing business with the Company
or such

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	 	 	 	Subsidiary, or interfere in any way with the relationship between any such customer,
supplier, broker, agent, licensee or business relation and the Company or any subsidiary
thereof.
	 
	 	(b)	 	Nondisclosure. For the Employment Term and thereafter, (i) Executive shall not divulge,
transmit or otherwise disclose (except as legally compelled by court order, and then only to
the extent required, after prompt notice to the Company’s Chief Executive Officer and Chief
Legal Officer of any such order), directly or indirectly, other than in the regular and proper
course of business of the Company and its Subsidiaries, any confidential knowledge or
information with respect to the operations or finances of the Company or any of its
Subsidiaries or with respect to confidential or secret processes, methods, services,
techniques, reinsurance arrangements, customers or plans with respect to the Company or its
Subsidiaries and (ii) Executive will not use, directly or indirectly, any confidential
information for the benefit of anyone other than the Company and its Subsidiaries;
provided, however, that Executive has no obligation, express or implied, to refrain from
using or disclosing to others any knowledge or information which is or hereafter shall
become available to the general public other than through disclosure by Executive, or as
requested by regulatory bodies or as required by judicial courts. All new processes,
techniques, know-how, methods, inventions, plans, products, patents and devices developed,
made or invented by Executive, alone or with others, while an employee of the Company which
are related to the business of the Company and its Subsidiaries shall be and become the sole
property of the Company, unless released in writing by the Board, and Executive hereby assigns
any and all rights therein or thereto to the Company.
	 
	 	(c)	 	Nondisparagement. During the Employment Term and thereafter, Executive shall not take any
action to disparage or criticize the Company or its Subsidiaries or their respective
employees, directors, owners or customers or to engage in any other action that injures or
hinders the business relationships of the Company or its Subsidiaries. During the Employment
Term and thereafter, the Company shall not take any action to disparage or criticize Executive
to any third parties. Nothing contained in this Section 8(c) shall preclude either Executive
or the Company from (i) making truthful statements or disclosures that are required by
applicable law, regulation or legal process or (ii) enforcing their respective rights under
this Agreement.
	 
	 	(d)	 	Noncompetition. In consideration of the payment to Executive of the Severance payments
pursuant to Section 5(c)(ii) or 5(e) or Change in Control Compensation pursuant to Section
6, Executive hereby agrees that, from and after the Termination Date, and for 12 months
thereafter, Executive shall not participate as a partner, joint venturer, proprietor,
shareholder, employee or consultant, or have any other direct or indirect financial interest
(other than a less than 10% interest in a corporation whose shares are regularly traded on a
national securities exchange or in the over-the-counter market), including, without
limitation, the interest of a creditor in any form, in, or in connection with, any business
competing directly or

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	 	 	 	indirectly with the business of the Company and its Subsidiaries in any geographic area
where the Company and its Subsidiaries are actively engaged in conducting business as of
the Termination Date. The purpose of this restrictive covenant is to protect the Company’s
trade secrets and other confidential information, including, without limitation, its
business plans, processes and customer information.
	 
	 	(e)	 	Return of Company Property. All files, records, correspondence, memoranda, notes or other
documents (including, without limitation, those in computer-readable form) or property
relating or belonging to the Company or its Subsidiaries or affiliates, whether prepared
by Executive or otherwise coming into Executive’s possession in the course of the performance
of his services under this Agreement, shall be the exclusive property of the Company and shall
be delivered to the Company, and not retained by Executive (including without limitations, any
copies thereof), promptly upon request by the Company and, in any event, within 60 days
following the Termination Date.
	 
	 	(f)	 	Scope. The Company and Executive further acknowledge that the time, scope, geographic area
and other provisions of this Section 8 have been specifically negotiated by sophisticated
commercial parties and agree that all such provisions are reasonable under the circumstances
of the activities contemplated by this Agreement. In the event that the agreements in this
Section 8 shall be determined by any court of competent jurisdiction to be unenforceable by
reason of their extending for too great a period of time or over too great a geographical area
or by reason of their being too extensive in any other respect, they shall be interpreted to
extend only over the maximum geographical area as to which they may be enforceable and/or to
the maximum extent in all other respect as to which they may be enforceable, all as determined
by such court in such action.
	 
	 	(g)	 	Enforcement. Both parties recognize that the services to be rendered under this Agreement by
Executive are special, unique and of extraordinary character and that in the event of the
breach by Executive of any of the terms and conditions of this Section 8 to be performed by
him, then the Company shall be entitled, if it so elects, to institute and prosecute
proceedings in any court of competent jurisdiction, either in law or in equity, to obtain
damages for any breach hereof, or to enforce the specific performance hereof by Executive or
to enjoin Executive from performing acts prohibited above during the period herein covered,
but nothing herein contained shall be construed to prevent such other remedy in the courts as
the Company may elect to invoke.
	 
	 	(h)	 	Other. If Executive competes with the Company or otherwise violates any of the restrictions
contained in this Section 8, the Company shall have no obligation to pay the Severance
Payment or Change of Control Compensation or any remaining installment thereof to Executive.

10

 

	9.	 	Indemnification. The Company shall provide Executive (including Executive’s heirs,
executors and administrators) with coverage under a standard directors’ and officers’
liability insurance policy at its expense, and shall indemnify Executive (and Executive’s
heirs, executors and administrators) to the fullest extent permitted under Delaware law
against all expenses and liabilities reasonably incurred by Executive in connection with or
arising out of any action, suit or proceeding in which Executive may be involved by reason
of Executive’s having been a director or officer of the Company (whether or not Executive
continues to be a director or officer at the time of incurring such expenses or
liabilities), such expenses and liabilities to include, but not be limited to, judgments,
court costs and attorneys’ fees and the cost of reasonable settlements.
	 
	10.	 	Application of Code Section 409A.

	 	(a)	 	General. To the extent applicable, it is intended that this Agreement comply
with the provisions of Code section 409A, so as to prevent inclusion in gross income of
any amounts payable or benefits provided hereunder in a taxable year that is prior to
the taxable year or years in which such amounts or benefits would otherwise actually be
distributed, provided or otherwise made available to Executive. This Agreement shall
be construed, administered, and governed in a manner consistent with this intent and
the following provisions of this Section shall control over any contrary provisions of
this Agreement.
	 
	 	(b)	 	Restrictions on Specified Employees. In the event Executive is a “specified
employee” within the meaning of Code section 409A(a)(2)(B)(i) and delayed payment of
any amount or commencement of any benefit under this Agreement is required to avoid a
prohibited distribution under Code section 409A(a)(2), then amounts payable in
connection with Executive’s termination of employment will be delayed and paid, with
interest at the short term applicable federal rate as in effect as of the termination
date, in a single lump sum six months thereafter (or if earlier, the date of
Executive’s death); provided, however, that payments to which Executive is entitled
under Section 5(c)(ii), 5(e) and 6(a) of this Agreement need not be delayed under this
Section 10(b) to the extent those payments would comply with the requirements of
1.409A-l(a)(b)(9), which generally requires that such payments not exceed two times the
lesser of (1) Executive’s annualized compensation based on his annual rate of pay in
the year before the date of termination or (2) the Code section 401(a)(17) limit
applicable to qualified plans during the year of Executive’s date of termination.
	 
	 	(c)	 	Separation from Service. Payments and benefits hereunder upon Executive’s
termination or severance of employment with the Company that constitute deferred
compensation under Code section 409A payable shall be paid or provided only at the time
of a termination of Executive’s employment which constitutes a “separation from
service” within the meaning of Code section 409A (subject to a possible six-month delay
pursuant to the subsection (b) above).
	 
	 	(d)	 	Installment Payments. For purposes of Code section 409A, the right to a series
of payments under this Agreement shall be treated as a right to a series of separate

11

 

	 	 	 	payments so that each payment hereunder is designated as a separate payment for
purposes of Code section 409A.
	 
	 	(e)	 	Reimbursements. All reimbursements and in kind benefits provided under this
Agreement, including, but not limited to, payments under Sections 4(c) and 9, shall be
made or provided in accordance with the requirements of Code section 409A, including,
where applicable, the requirement that (i) any reimbursement is for expenses incurred
during Executive’s lifetime (or during a shorter period of time specified in this
Agreement), (ii) the amount of expenses eligible for reimbursement, or in kind benefits
provided, during a calendar year may not affect the expenses eligible for
reimbursement, or in kind benefits to be provided, in any other calendar year, (iii)
the reimbursement of an eligible expense will be made on or before the last day of the
calendar year following the year in which the expense is incurred, and (iv) the right
to reimbursement or in kind benefits is not subject to liquidation or exchange for
another benefit.
	 
	 	(f)	 	References to Code Section 409A. References in this Agreement to Code
section 409A include both that section of the Code itself and any guidance
promulgated thereunder.

	11.	 	Miscellaneous.

	 	(a)	 	Modification. This Agreement may not be modified or amended except by an
instrument in writing signed by the parties hereto.
	 
	 	(b)	 	Waiver. No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision of
this Agreement, except by written instrument of the party charged with such waiver or
estoppel. No such written waiver shall be deemed a continuing waiver unless
specifically stated therein, and each such waiver shall operate only as to the specific
term or condition waived and shall not constitute a waiver of such term or condition
for the future as to any act other than that specifically waived.
	 
	 	(c)	 	Notices. Any notice required or permitted to be given under this Agreement
shall be sufficient if in writing and if sent by registered or certified mail to
Executive or the Company at the address set forth below or to such other address as
they shall notify each other in writing:
	 
	 	 	 	If to the Company:

	 	 	 	SunCoast Holdings, Inc.

401 East Las Olas Boulevard, Suite 1540

Fort Lauderdale, Florida 33301

	 	 	 	If to Executive:

	 	 	 	To the last mailing address on file with the Company.

12

 

	 	(d)	 	Assignment. This Agreement shall be binding upon and inure to the benefit of the
Company and its successors and permitted assigns and Executive and personal
representatives, heirs, legatees and beneficiaries. This Agreement may be assigned by
the Company with the consent of Executive to a fiscally responsible entity that assumes the
obligations set forth herein, but shall not be assignable by Executive.
	 
	 	(e)	 	Applicable Law. This Agreement shall be construed in accordance with the laws of the State of
Florida in every respect, including, without limitation, validity, interpretation and
performance. Any dispute between the parties hereto, arising under or relating to this
Agreement (as hereinafter defined), or Executive’s employment with the Company, other than for
an action by the Company for specific performance, injunction or other equitable remedy to
enforce Section 8 hereof shall be settled by arbitration in Fort Lauderdale, Florida in
accordance with the then applicable rules of the American Arbitration Association. The
prevailing party may be awarded in such arbitration its reasonable attorneys’ fees and
expenses, and judgment upon the award rendered may be entered in any court having jurisdiction
thereof.
	 
	 	(f)	 	Headings. Section headings and numbers herein are included for convenience of reference only
and this Agreement is not to be construed with reference thereto. If there be any conflict
between such numbers and headings and the text hereof, the text shall control.
	 
	 	(g)	 	Severability. If for any reason any portion of this Agreement shall be held invalid or
unenforceable, it is agreed that the same shall not affect the validity or enforceability of
the remainder hereof. The portion of the Agreement which is not invalid or unenforceable
shall be considered enforceable and binding on the parties and the invalid or unenforceable
provision(s), clause(s) or sentence(s) shall be deemed excised, modified or restricted to the
extent necessary to render the same valid and enforceable and this Agreement shall be
construed as if such invalid or unenforceable provision(s), clause(s), or sentences(s) were
omitted. The provisions of this Section 11(g), as well as Sections 8 and 9 hereof, shall
survive the termination of this Agreement.
	 
	 	(h)	 	Entire Agreement. This Agreement contain the entire agreement of the parties with respect to
its subject matter and supersedes all previous agreements between the parties. No officer,
employee, or representative of the Company has any authority to make any representation or
promise in connection with this Agreement or the subject matter thereof that is not contained
therein, and Executive represents and warrants he has not executed this Agreement in reliance
upon any such representation or promise. No modification of this Agreement shall be valid
unless made in writing and signed by the parties hereto.
	 
	 	(i)	 	Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement
by the other party shall not operate or be construed as a waiver of any subsequent breach by
the breaching party.

13

 

	 	(j)	 	Counterparts.  This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one agreement.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer and Executive has signed this Agreement all on the day and year first above
written.

	 	 	 	 	 
	 	SUNCOAST HOLDINGS, INC.

  a Delaware corporation

 	 
	 	By:  	/s/
Steven M. Mariano	 
	 	 	Title: President 	 	 
	 	 	 	 
	 	EXECUTIVE

	 
	 
	 	 	/s/
[ILLEGIBLE]	 

14

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