Document:

Exhibit

Exhibit 10.8

AMENDED AND RESTATED RESTRICTED STOCK AGREEMENT
MEMORANDUM OF AGREEMENT (this “Agreement”) made as of the 5th day of September, 2018.
	
			
	BETWEEN:
	 
	 

	 
	KINGSWAY FINANCIAL SERVICES INC., 
incorporated pursuant to the laws of the Province of 
Ontario

	 
	(hereinafter called the “Corporation”)
	 

	 
	 
	OF THE FIRST PART

	 
	- and -
	 

	 
	LARRY G. SWETS, JR. 
(hereinafter called the “Participant”)
	 

	 
	 
	OF THE SECOND PART

	 
	 
	 

WHEREAS the Corporation has established the Kingsway Financial Services Inc. 2013 Equity Incentive Plan, as amended from time to time (the “Plan”), to attract, retain and motivate persons as officers and other employees of the Corporation and its Subsidiaries and to advance the interests of the Corporation by providing such persons with the opportunity to acquire an increased proprietary interest in the Corporation pursuant to and in accordance with the Plan; 
WHEREAS the Participant was previously granted 1,382,665 shares of restricted stock of the Corporation (the “Original Grant”);
WHEREAS, as of the termination of the Participant’s employment with the Corporation, the Participant will forfeit 1,032,665 shares of restricted stock represented by the Original Grant; and
WHEREAS, the remaining 350,000 shares of restricted stock (the “Restricted Shares”) will remain outstanding pursuant to this Agreement and the Plan and the Restricted Stock Agreement dated as of March 28, 2014 with respect to the Original Grant shall be amended and restated as set forth herein.
NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Corporation, it is agreed by and between the parties hereto as follows:
		
	1.
	In this Agreement and in any amendments hereto, words and phrases as used herein shall have the same meaning as used in the Plan.

		
	2.
	The Participant acknowledges and agrees that 1,032,665 shares represented by the Original Grant are hereby forfeited by the Participant as of his termination of employment with the Company and that the Restricted Shares shall be held by the Participant subject to the terms and conditions hereinafter set out and those of the Plan.

 DM_US 154616903-10.088627.0010    1

Exhibit 10.8

		
	3.
	The Restricted Shares shall become fully vested, and the Restriction Period shall lapse, upon (i) the completion of the sale by 1347 Investors LLC of its entire interest in the common shares of Limbach Holdings, Inc. and (ii) the subsequent completion of the liquidation of 1347 Investors LLC and distribution of its assets to its members.

		
	4.
	During the Restriction Period, the Restricted Shares shall be held by a custodian in book entry form with restrictions on such shares duly noted or, alternatively, a certificate or certificates representing the Restricted Shares shall be registered in the Participant’s name and may bear a legend, in addition to any legend which may be required pursuant to the Plan, indicating that the ownership of the Common Shares represented by such certificate is subject to the restrictions, terms and conditions of the Plan and this Agreement.  All such certificates shall be deposited with the Corporation, together with stock powers or other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed necessary or appropriate, which would permit transfer to the Corporation for cancellation all or a portion of the Restricted Shares in the event they are forfeited in whole or in part.  Upon termination of the Restriction Period, subject to the Corporation’s right to require payment of any taxes in accordance with the Plan, the restrictions shall be removed from the requisite number of any Common Shares that are held in book entry form, and all certificates evidencing ownership of the requisite number of Common Shares shall be delivered to the Participant.

		
	5.
	The Participant shall have all rights as a shareholder of the Corporation, including, but not limited to, the right to receive dividends and the right to participate in any capital adjustment applicable to all holders of Common Shares; provided, however, that (i) the Participant shall not be permitted to vote the Restricted Shares until they have vested and (ii) any distribution with respect to Common Shares shall be deposited with the Corporation and shall be subject to the same restrictions as the Common Shares with respect to which such distribution was made.

		
	6.
	Notwithstanding anything herein to the contrary, the underlying Common Shares may not be sold in the United States unless a Registration Statement on Form S-8 under the United States Securities Act of 1933 is in effect with respect to the Plan and the Common Shares issuable in connection with awards under the Plan.  A Registration Statement on Form S-8 in connection with the Plan was filed with the U.S. Securities and Exchange Commission on February 24, 2014.

		
	7.
	The Participant understands that the Participant is solely responsible for all tax consequences to the Participant in connection with this award.  The Participant represents that the Participant has consulted with any tax consultants the Participant deems advisable in connection with the award and that the Participant is not relying on the Corporation for any tax advice. By accepting this revised Agreement, the Participant acknowledges that he is required to submit to the Company the minimum statutory tax withholding requirements described in paragraph 8 below not later than one business day after the Company has determined, in good faith, that the Restricted Shares are taxable under Section 83 of the Internal Revenue Code.

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Exhibit 10.8

		
	8.
	Prior to the delivery of the certificates for any Common Shares upon vesting under paragraph 4 above, the Participant shall have paid all federal, state, local or other taxes that are required to be withheld or paid in connection with such award.  For avoidance of doubt, as of the date of this Agreement, the minimum statutory required withholding rate for federal income taxes with respect to the taxation of this award is (i) 22% for any taxable amount up to $1,000,000 and (ii) 37% for any taxable amount in excess of $1,000,000.  The Participant may satisfy any such obligation by any of the following means:  (A) a cash payment to the Corporation; (B) authorizing the Corporation to withhold from the Restricted Shares the whole Common Shares which would otherwise be delivered or available for vesting having an aggregate Fair Market Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation; or (C) any combination of (A) or (B).  Common Shares to be delivered or withheld may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate.  Any fraction of a Common Share which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the holder.  

For the avoidance of doubt, the Company believes the signing of this Agreement will be a taxable event for the Participant.  As a result, the Tax Date will be deemed to be the date this Agreement is fully executed.  After the signing of this Agreement, the Company will withhold from the Restricted Shares the necessary number of Common Shares having an aggregate Fair Market Value, determined as of the Tax Date, in order to meet its obligations to remit the minimum tax withholding for federal and state income and employment taxes.  The Participant will be responsible to pay all taxes due to the vesting of the Restricted Shares in excess of the minimum tax withholding amount.  The Company will not withhold any further Common Shares or require further withholding tax at vesting and/or delivery of the remaining Common Shares.  The Participant acknowledges that he shall not have the right to compel any additional Common Shares to be acquired by the Company to meet his tax obligations.
		
	9.
	Nothing in the Plan or herein confers upon the Participant any right to continue as a service provider to the Corporation or any Subsidiary in any capacity or affect in any way the right of the Corporation or any Subsidiary to terminate any service provider relationship at any time.

		
	10.
	Time shall be of the essence of this Agreement.

		
	11.
	The Restricted Shares are personal to the Participant and, subject to the provisions of the Plan, are non-assignable.

		
	12.
	This Agreement shall inure to the benefit of and be binding upon the Corporation, its successors and assigns, and the Participant and his legal personal representatives.  This Agreement shall not be assignable by the Participant or his legal personal representatives.

		
	13.
	This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario.

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Exhibit 10.8

		
	14.
	In the event of any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan shall prevail except with respect to Sections 3, 7 and 8 of this Agreement, the terms of which such Sections shall prevail if such terms conflict with any of the provisions of the Plan.

		
	15.
	This Agreement supersedes in its entirety that certain Restricted Stock Agreement dated as of March 28, 2014.

		
	16.
	All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

 DM_US 154616903-10.088627.0010    4

Exhibit 10.8

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto.
	
			
	 
	)
	LARRY G. SWETS, JR.

	 
	)
	 

	 
	)
	 

	                                                 
	)
	                                                                        

	Witness
	 
	 

	 
	)
	 

	 
	)
	 

	 
	)
	KINGSWAY FINANCIAL SERVICES INC.

	 
	)
	 

	 
	)
	 

	 
	)
	Per:                                                                 

	 
	 
	Name:

	 
	 
	Title:

	 
	 
	 

[Signature Page to Amended and Restated Restricted Stock Agreement]

DM_US 154616903-10.088627.0010Exhibit

Exhibit 10.9

MEMBERSHIP INTEREST PURCHASE AGREEMENT
THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this "Agreement"), dated as of September 5, 2018, is entered into between 1347 Capital LLC, a Delaware limited liability company (the "Seller"), and IGI Partners, LLC (the "Buyer").
WHEREAS, Seller owns 4,572 of the issued and outstanding units, representing 45.72% of the membership percentage interest (the "Membership Interest"), of Itasca Golf Investors, LLC, an Illinois limited liability company (the "Company"); and
WHEREAS, Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller, the Membership Interest, subject to the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Purchase and Sale. Subject to the terms and conditions set forth herein, at the Closing (as defined in Section 2), Seller shall sell, transfer and assign to Buyer, and Buyer shall purchase from Seller, all of Seller's right, title and interest in and to the Membership Interest. The aggregate purchase price for the Membership Interest shall be One Million Five Hundred Thousand U.S. Dollars ($1,500,000.00) (the "Purchase Price").  In addition, Seller shall transfer to the Company the URL itascagolf.com (the “URL”).  
2.    Closing. Subject to the terms and conditions contained in this Agreement, the purchase and sale of the Membership Interest contemplated hereby shall take place electronically via mutual exchange of facsimile or portable document format (.PDF) signatures (the "Closing") on the date hereof (the "Closing Date"). The Closing will be effective as of 12:01 a.m. local time in Chicago, Illinois on the Closing Date. 
3.    Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer as follows:
(a)    Seller is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware.
(b)    Seller has all requisite power and authority to execute and deliver this Agreement, to carry out its obligations hereunder, and to consummate the transactions contemplated hereby. Seller has obtained all necessary approvals, including the approval of the Kingsway Financial Services Inc. (“Kingsway”) Audit Committee pursuant to Kingsway’s Related Party Transaction Policy dated January 6, 2017, for the execution and delivery of this Agreement, the performance of 

DM_US 154610927-5.088627.0010

Exhibit 10.9

its obligations hereunder, and the consummation of the transactions contemplated hereby. This Agreement has been duly executed and delivered by Seller and (assuming due authorization, execution and delivery by Buyer) constitutes Seller's legal, valid and binding obligation, enforceable against Seller in accordance with its terms.
(c)    The Membership Interest and the URL is owned of record and beneficially by Seller, free and clear of all liens, pledges, security interests, charges, claims, encumbrances, agreements, options, voting trusts, proxies and other arrangements or restrictions of any kind ("Encumbrances").
(d)    The execution, delivery and performance by Seller of this Agreement do not conflict with, violate or result in the breach of, or create any Encumbrance on the Membership Interest pursuant to, any agreement, instrument, order, judgment, decree, law or governmental regulation to which Seller is a party or is subject or by which the Membership Interest is bound.
(e)    No governmental, administrative or other third party consents or approvals are required by or with respect to Seller in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
(f)    There are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of Seller, threatened against or by Seller that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.
(g)    No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller.
(h)    Seller has had full access to the financial statements and materials of the Company, including but not limited to the appraisal of the Itasca Country Club, information concerning offers and inquires by prospective purchasers, tax returns and all other information of any type that Seller wanted to review.  Seller is not relying on any statement or representation of Buyer and has conducted its own due diligence prior to arriving at the Purchase Price.  
4.    Representation and Warranties of Buyer.
(a)    Buyer is an Illinois limited liability company duly organized, validly existing and in good standing under the laws of the State of Illinois.
(b)    Buyer has all requisite power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder and the consummation by Buyer of the transactions contemplated hereby have been duly authorized 

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Exhibit 10.9

by all requisite action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer and (assuming due authorization, execution and delivery by Seller) this Agreement constitutes a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms.
(c)    Buyer is acquiring the Membership Interest solely for its own account for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof. Buyer acknowledges that the Membership Interest is not registered under the Securities Act of 1933, as amended, or any state securities laws, and that the Membership Interest may not be transferred or sold except pursuant to the registration provisions of the Securities Act of 1933, as amended or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable.
(d)    No governmental, administrative or other third party consents or approvals are required by or with respect to Buyer in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
(e)    There are no actions, suits, claims, investigations or other legal proceedings pending or, to the knowledge of Buyer, threatened against or by Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.
(f)    No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.
(g)    Buyer has had full access to the financial statements and materials of the Company, including but not limited to the appraisal of the Itasca Country Club, information concerning offers and inquires by prospective purchasers, tax returns and all other information of any type that Buyer wanted to review.  Buyer is not relying on any statement or representation of Seller and has conducted its own due diligence prior to arriving at the Purchase Price.  
5.    Survival. All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Closing hereunder.
6.    Further Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments, conveyances and assurances, and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.
7.    Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

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Exhibit 10.9

8.    Entire Agreement. This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.
9.    Successor and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. No party may assign any of its rights or obligations hereunder without the prior written consent of the other parties hereto, which consent shall not be unreasonably withheld or delayed.
10.    Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
11.    Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
12.    Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, 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 a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
13.    Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Illinois without giving effect to any choice or conflict of law provision or rule (whether of the State of Illinois or any other jurisdiction). Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the United States District Court for the Northern District of Illinois or the Circuit Court for the Eighteenth Judicial Circuit located in DuPage County, Illinois, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive 

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Exhibit 10.9

and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES TO SUBMIT TO A TRIAL BY JUDGE, AND WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY, IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  
14.    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[SIGNATURE PAGE FOLLOWS]

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DM_US 154610927-5.088627.0010

Exhibit 10.9

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above.
	
		
	 
	

SELLER:

1347 CAPITAL LLC

	 
	

By: ____________________
Name:  Hassan Baqar
Title:  Managing Director

	
		
	 
	BUYER:

IGI PARTNERS, LLC

	 
	

By_____________________
Name: Larry Swets 
Title:  President of Itasca Golf Managers, Inc., its Manager

[Signature Page to Membership Interest Purchase Agreement]

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