Document:

exv10w21

Exhibit 10.21

AMENDMENT TO COMMERCIAL LOAN AGREEMENT

(INCLUDING JOINDER OF ADDITIONAL BORROWERS)

     THIS AMENDMENT dated as of September 27, 2007 is made to and a part of the Commercial Loan
Agreement and Addendum thereto (the “CLA Addendum”) dated March 30, 2006 (the “Loan Agreement”) by
and between BROOKE CREDIT CORPORATION (“LENDER”) and SUNCOAST HOLDINGS, INC., a Delaware
corporation (“SH”), BRANDYWINE INSURANCE HOLDINGS, INC., a Delaware corporation (“BIH”), and
PATRIOT RISK SERVICES, INC., a Delaware corporation (“PRS”).

     WHEREAS, SH, BIH and PRS have collectively executed the Loan Agreement and related “Loan
Documents” (as defined in the Loan Agreement) dated March 30, 2006, including, but not limited to,
a Commercial Promissory Note (the “Original Note”), Guaranty of Steven M. Mariano (the
“Guaranty”), Commercial Security Agreement (the “Security Agreement”) and Stock Pledge Agreement
(the “Pledge Agreement”), together with a Consent dated August 2, 2007;

     WHEREAS, the Loan Agreement and other Loan Documents (i) name the Borrower as SunCoast
Holdings, Inc., Brandywine Insurance Holdings, Inc. and Patriot Risk Services, Inc. and (ii) refer
to a principal loan amount of $8,652,000.00;

     WHEREAS, the parties desire to (i) join SunCoast Capital, Inc., Patriot Risk Management, Inc.
and Patriot Risk Management of Florida, Inc. as additional borrowers (hereinafter the “Additional
Borrowers” and, together with SH, BIH and PRS, the “Borrower”) and (ii) have Lender make an
incremental $5,768,000.00 term loan to the Borrower and thereby increase the principal amount of
the loan outstanding under the Loan Documents from $8,033,172.47 to $13,801,172.47; and

     WHEREAS, it is also the intention of the parties (i) to confirm and continue the security
interests originally granted to Lender by SH, BIH and PRS and (ii) for additional security
interests to be granted by the Additional Borrowers to Lender.

     NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency and receipt of which are
acknowledged, it is agreed as follows:

     1. Capitalized terms used but not defined herein are used with the meanings assigned
to them in the Loan Documents.

     2. The term “Borrower”, as defined in the Loan Agreement and each other Loan
Document, is hereby amended to mean and include “SunCoast Holdings, Inc., Brandywine
Insurance Holdings, Inc., SunCoast Capital, Inc., Patriot Risk Services, Inc., Patriot Risk
Management, Inc. and Patriot Risk Management of Florida, Inc.”, and each reference in the Loan
Agreement and the other Loan Documents shall be deemed a reference to each of the foregoing
entities individually and collectively and jointly and severally.

 

 

     3. Borrower hereby acknowledges receipt on the date hereof of $5,768,000.00,
representing the proceeds of the incremental term loan referred to above (such incremental
term
loan being evidenced by a Commercial Promissory Note dated the date hereof and executed by
Borrower (the “New Note”)). Borrower represents, warrants and agrees that all such proceeds
shall be used solely for the following purposes: (i) $5,000,000.00 for a capital injection
from SH
to GIC; (ii) $500,000.00 to enable Borrower to purchase a Borrower’s Assistance Plan from and
in favor of Brooke Capital Advisors, Inc., a Delaware corporation (“BCA”), pursuant to such
documentation as BCA may require in its sole and absolute discretion; (iii) $168,000.00 for
the
payment of all loan, origination and other transaction-related fees that are payable by
Borrower to
Lender; and (iv) $100,000 to National Capital Advisors for the payment of consulting fees.

     4. The sections of the Loan Agreement entitled “Borrower Name and Address,”
“Loan Description,” “Loan Structure,” “Fees” and “Loan Proceeds” are hereby deemed to be
amended to incorporate by reference the terms of the incremental term loan, the New Note and
the use of proceeds thereof as set forth in this Amendment and the New Note, and the
“Borrower’s Name and Address” section of the Original Note is hereby deemed to be amended to
include the names of SunCoast Capital, Inc., Patriot Risk Management, Inc. and Patriot Risk
Management of Florida, Inc.

     5. Paragraph 11 of the CLA Addendum is amended and restated in its entirety to
read as follows:

     “11. PREPAYMENT PREMIUM. Any promissory note(s) executed by Borrower
which evidence the Loan(s) shall provide for a prepayment premium equal to
the Prepayment Percentage (as defined herein) of the principal loan balance
Borrower prepays. The “Prepayment Percentage” shall be 10% from
March 30, 2006 through March 29, 2007, 8% from March 30, 2007 through March
29, 2008, and 6% from March 30, 2008 through March 29, 2009. This
prepayment premium shall not apply after March 30, 2009.”

     6. Paragraph 8(g) of the CLA Addendum is amended to add the following at the end
of the clause after the words “attached hereto as Exhibit II”:

     “within thirty (30) days after notice from the Lender of such
amendment or deviation; provided, however, no Event of Default shall be
deemed to have occurred under this paragraph 8(g) if any such amendment or
deviation is reasonably capable of being cured and same is in fact cured
within 45 days after notice from Lender.”

     7. The enumerated events constituting a “Default” as set forth in the Original Note,
the New Note, the Security Agreement and the New Security Agreements (as defined below)
shall be superseded and replaced by the enumerated “Events of Default” set forth in paragraph 8
of the CLA Addendum, except for clause (4) of said Notes stating “any other creditor of mine

2

 

attempts to collect any debt I owe him through court proceedings”, which Default
provision shall remain in effect and not be superseded.

     8. Each of SunCoast Capital, Inc., Patriot Risk Management, Inc. and Patriot Risk
Management of Florida, Inc., as Additional Borrowers, shall as of the date hereof,
together with
SH, BIH and PRS, become party to the Loan Agreement, the Original Note, the New
Note, the
new Commercial Security Agreements dated the date hereof (the “New Security
Agreements”)
and the other Loan Documents (to the extent applicable) as “Borrower”, with the
same effect as
if each such Additional Borrower had originally executed each such Loan Document.
Further,
each such Additional Borrower hereby agrees that from the date hereof until payment
in full of
the principal of and interest on the Loans made under the Loan Documents and the
performance
of all of its other obligations thereunder, it (i) shall assume, perform, comply
with and be bound
by each of the covenants, obligations, conditions and other provisions of the Loan
Agreement
and other Loan Documents applicable to “Borrower” thereunder, including, but not
limited to,
the joint and several obligation to pay amounts owing on the Original Note, and
(ii) hereby grants
to Lender a security interest in its property as described in the New Security
Agreements to
secure the payment and performance of the Loans and all of such Additional
Borrower’s other
obligations and liabilities to Lender. Without limiting the generality of the
foregoing, each
Additional Borrower hereby represents and warrants that (a) it has received a true
and correct
copy of the Loan Documents as in effect on the date hereof, (b) the representations
and
warranties of Borrower contained in the Loan Documents are hereby made by such
Additional
Borrower as the date hereof and are true and correct, (c) the Loan Agreement, the
Original Note,
the New Note, the New Security Agreements and the other Loan Documents constitute
the legal,
valid and binding obligations of such Additional Borrower enforceable (jointly and
severally)
against such Additional Borrower in accordance with their respective terms. Each
Borrower
entity hereby represents and warrants that no Default or Event of Default under the
Loan
Documents has occurred and is continuing.

     9. This Amendment may be affixed to each and every Loan Document as evidence
of the amendment thereof in accordance with the above terms; provided, that
failure to so affix
this Amendment shall not affect the validity or enforceability thereof.

     10. Unless specifically amended hereby, all provisions, terms and conditions in the
Loan Agreement and the other Loan Documents shall otherwise remain unaltered and in
full
force and effect, and the respective terms, conditions and covenants thereof are
hereby ratified
and confirmed in all respects as originally executed. Upon effectiveness of this Amendment,
all
references to the Loan Agreement or other Loan Documents shall be a reference to the
Loan Agreement and Loan Documents as amended hereby, and all references in the Loan
Documents to “commercial promissory note,” “promissory note” or “note” shall be deemed
to refer to each and every promissory note at any time issued by any Borrower entity to
Lender, including the Original Note and the New Note, as from time to time further
amended or replaced.

     11. This Amendment shall be construed and governed by the laws of the State of
Kansas, except to the extent that the laws of a jurisdiction other than the
State of Kansas are
required to govern any enforcement or foreclosure action with respect to any of the
Collateral.

3

 

     12. This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

[signature pages follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date
first above written.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	LENDER:	 	 
	SUNCOAST HOLDINGS, INC.,	 	BROOKE CREDIT CORPORATION,	 	 
	a Delaware corporation	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano
	 	By:
	 	/s/ Michael S. Lowry	 	 
	Name:

	 	 

Steven M. Mariano
	 	Name:
	 	 

 Michael S. Lowry
	 	 
	Title:

	 	President and Chief Executive Officer
	 	Title:
	 	 President & CEO	 	 
	 
	 	 	 	 	 	 	 	 
	BRANDYWINE INSURANCE	 	 	 	 	 	 
	HOLDINGS, INC.,	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	Name:

	 	 

Steven M. Mariano
	 	 	 	 	 	 
	Title:

	 	President and Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SUNCOAST CAPITAL, INC.,	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Steven M. Mariano	 	 	 	 	 	 
	Title:

	 	President and Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PATRIOT RISK MANAGEMENT, INC.,	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Steven M. Mariano	 	 	 	 	 	 
	Title:

	 	Chairman & EVP	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PATRIOT RISK SERVICES, INC.,	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Steven M. Mariano	 	 	 	 	 	 
	Title:

	 	Chairman & EVP	 	 	 	 	 	 

5

 

	 	 	 	 	 
	PATRIOT RISK MANAGEMENT OF FLORIDA, INC.	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 
	Name:

	 	 

Steven M. Mariano
	 	 
	Title:

	 	Chairman & EVP	 	 

6

 

CONSENT OF GUARANTOR

The undersigned, as guarantor of all debt and obligations of Borrower to Lender under the Guaranty,
hereby acknowledges and consents to the above-referenced Amendment.

	 	 	 
	 

	 	/s/ Steven M. Mariano
	 

	 	Steven M.Mariano, individually

7exv10w22

Exhibit 10.22

					
	SunCoast Holdings, Inc., Brandywine Insurance Holdings, Inc.,

SunCoast Capital, Inc., Patriot Risk Services, Inc., Patriot Risk Management, Inc. and Patriot Risk Management of Florida, Inc.

	  	 Brooke Credit Corporation 
 
10950 Grandview Dr., Ste. #600
Overland Park, KS 66210
	  	  
 Loan Number
6530

	401 East Las Olas Blvd.	  	 	  	Date 09-27-2007
	Ft. Lauderdale, FL 33301	  	 	  	Maturity Date 04-15-2016
	 	  	 	  	Loan Amount $5,768,000.00
	 	  	 	  	Renewal Of ___________________
	BORROWER’S NAME AND ADDRESS	  	LENDER’S NAME AND ADDRESS	  	 
	“I” includes each borrower above, jointly and severally.	  	“You” means the lender, its successors and assigns.	  	 

  
 For value received, I promise to pay
to you, or your order, at your address listed above the PRINCIPAL sum of five million seven hundred sixty eight thousand and no/100 Dollars $5,768,000.00. 
  

	x	Single Advance: I will receive all of this principal sum on 09-27-2007. No additional advances are contemplated under this note. 

  

	 ̈	Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On ______________________ I will receive the amount of
$___________________ and future principal advances are contemplated. 

  
 Conditions: The conditions for future advances are
                                        
                                        
                                        
   
  
                                       
                                        
                                        
                                        
                            
 
  
                                       
                                        
                
                    
                                        
                                        
           
  

	 	 ̈	Open End Credit: You and I agree that I may borrow up to the maximum amount of principal more than one time. This feature is subject to all other conditions and expires on
_________________________. 

  

	 	 ̈	Closed End Credit: You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions). 

  

	INTEREST: 	I agree to pay interest on the outstanding principal balance from 09-27-2007 at the rate of 12.250% per year until 09-28-2007. 

  

	x	Variable Rate: This rate may then change as stated below. 

  

	 	x	Index Rate: The future rate will be 4.500 percent above the following index rate: Prime Rate, as published in The Wall Street Journal. 

  

	 	 ̈	No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control. 

  

	 	x	Frequency and Timing: The rate on this note may change as often as every day beginning 09-28-2007. A change in the interest rate will take effect On the following day.

  

	 	 ̈	Limitations: During the term of this loan, the applicable annual interest rate will not be more than ______________% or less than ____________%. The rate may not change more than
____________________% each ______________________. 

  

	  	Effect of Variable Rate: A change in the interest rate will have the following effect on the payments: 

  

	 	x	The amount of each scheduled payment will change.          ̈  The amount of the final payment will change. 

   

 

	 	 ̈	                                      
                                        
                                        
                                        
                               . 

  
 ACCRUAL METHOD: Interest will be calculated on a Actual/365 basis. 
  
 POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing
after maturity, and until paid in full, as stated below: 
  

	 	x	on the same fixed or variable rate basis in effect before maturity (as indicated above). 

  

	 	 ̈	at a rate equal to
                                        
                                        
                                        
                                        
    . 

  

	x	LATE CHARGE: If a payment is made more than 10 days after it is due, I agree to pay a late charge of 5.000% of the payment amount. 

  

	 ̈	ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which  ̈ are  ̈ are not included in the principal amount above:__________________________________________________________.

  
 PAYMENTS: I agree to pay this note as follows:

  
 102 monthly payments of $91,857.07 beginning 11-15-2007. This is a variable rate loan and the payment amounts may change. 
  

ADDITIONAL TERMS:

(1) See Commercial Loan Agreement and Addendum thereto dated March 30, 2006, as modified by a Consent dated August 2, 2007 and Amendment dated September 27, 2007 (the “Amendment”).

(2) The term following day referred to in “Frequency and Timing” above refers to the next business day following a change in the Prime Rate as reported in The Wall Street Journal.

(3) As referenced in “Effects of Variable Rate” above, the payments will change on the 15th day of the calendar month following the month during which the rate changed.

(4) Notwithstanding any other provision of this Note, Borrower shall pay a prepayment premium equal to 8% from the date hereof through March 29, 2008 and 6% from March 30, 2008 through March 29, 2009. No prepayment premium shall apply after March 30, 2009.

					
	 x     SECURITY: This note is separately secured by (describe
separate document by type and date): Security Agreement and Pledge
Agreements dated March 30, 2006 and Security Agreements dated September 27, 2007.
	 	 	  	PURPOSE: The purpose of this loan is set forth in the Amendment referred to above 

			
	 	 	 	  	SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGE 2). I have received a copy on today’s date.
			
	(This section is for your internal use. Failure to list a separate security document does not mean the agreement will not secure this note.)	 	 	  	 
			
	Signature for Lender	 	 	  	   SunCoast Holdings, Inc., Brandywine Insurance Holdings, Inc., SunCoast Capital, Inc., Patriot

 

	 	 	 	  	See Attached Signature Page
			
	 /s/ Michael Lowry
	 	 	  	 
	Michael Lowry, President and CEO	 	 	  	 
			
	 	 	 	  	 
			
	 UNIVERSAL NOTE
	 	 	  	 

 
 

			
	

    ©1984, 1991 BankersSystems, Inc., St. Cloud, MN Form UN-FL 3/4/2002	  	(page 1 of 2)

 

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	LENDER:
	SUNCOAST HOLDINGS, INC.	 	 	 	BROOKE CREDIT CORPORATION
	a Delaware corporation	 	 	 	a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano
	 	 	 	By:
	 	/s/ Michael S. Lowry
	 

	 	 
	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	Name: Michael S. Lowry
	Title: President and Chief Executive Officer	 	 	 	Title: President & CEO
	 
	 	 	 	 	 	 	 	 
	BRANDYWINE INSURANCE	 	 	 	 	 	 
	HOLDINGS, INC., a Delaware
corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	 	 	 
	Title: President and Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SUNCOAST CAPITAL, INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	 	 	 
	Title: President and Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PATRIOT RISK MANAGEMENT, INC., a Delaware
corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	 	 	 
	Title: Chairman & EVP	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PATRIOT RISK SERVICES, INC.	 	 	 	 	 	 
	a Delaware corporation	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	 	 	 
	Title: Chairman & EVP	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PATRIOT RISK MANAGEMENT OF FLORIDA, INC., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Steven M. Mariano	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Name: Steven M. Mariano	 	 	 	 	 	 
	Title: Chairman & EVP

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