Document:

ex_131815.htm

Exhibit 10.2E

 

AMENDMENT NUMBER ONE

TO

2016 SPLIT-DOLLAR AGREEMENT

 

This Amendment Number One to the 2016 Split-Dollar Agreement (this “Amendment”) is entered into as of the 13th day of December, 2018, by and between Michael D. Goodson, Jr., an individual (“Insured”) and National Bank of Commerce, a national banking association located in Birmingham, Alabama (the “Bank”).

 

RECITALS

 

A.     Pursuant to that certain Agreement and Plan of Merger dated as of November 23, 2018 (the “Merger Agreement”) by and between CenterState Bank Corporation, a Florida corporation (“CenterState”) and National Commerce Corporation, a Delaware corporation (the “Corporation”), the Corporation will merge with and into CenterState, and thereafter the Bank will merge with and into CenterState Bank, N.A., a national banking association and wholly-owned subsidiary of CenterState.

 

B.     The Insured and the Bank previously entered into that certain 2016 Split-Dollar Agreement (the “Agreement”), effective as of January 1, 2016.

 

C.     Section 15(l) of the Agreement provides that, subject to the Bank’s ability to terminate the Agreement in accordance with Section 8, no amendment or additions to the Agreement shall be binding unless in writing and signed by the Bank and the Insured.

 

D.     The Bank desires to amend the Agreement in order to provide that the Agreement will terminate in the event of the Insured’s voluntary resignation, other than a voluntary resignation for Good Reason (as defined herein).

 

NOW, THEREFORE, the parties hereto, for and in consideration of the foregoing and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound hereby, agree as follows:

 

1.     Sections 8(b) and 8(c) of the Agreement shall be deleted with the following substituted in lieu thereof:

 

“(b)     This Agreement shall terminate immediately upon the first to occur of the following:

 

	 	
			(i)

				
			the distribution of the death benefit proceeds in accordance with Section 6 above;

			

 

	 	
			(ii)

				
			the termination of the Insured’s employment prior to age 65 for any reason other than death, a voluntary resignation for Good Reason, an involuntary termination of the Insured’s employment by the Bank without Cause, or due to the insured becoming Substantially Disabled;

			

 

 

 

 

	 	
			(iii)

				
			the surrender or termination of the Policy by the Bank; provided, however, the Bank shall not surrender or otherwise terminate the Policy unless such surrender or termination is required by law or pursuant to any applicable bank regulatory order; or

			
	 	 	 
	 	(iv)	 the Insured attaining age 80.

 

The Insured acknowledges and agrees that the termination of this Agreement pursuant to Subsections (b)(ii), (b)(iii) or (b)(iv) above shall terminate any rights of the Insured and the Insured’s beneficiaries to receive any death proceeds of the Policy under this Agreement, and such termination shall not give rise to any liability of any nature against the Bank.

 

For purposes of this Agreement, ‘Cause’ shall mean any of the following events: (A) incompetence or dishonesty in Insured’ s job performance, gross negligence, deliberate neglect of duties, willful malfeasance or misconduct in performance or failure to substantially perform the duties assigned to the Insured by the Bank; (B) conviction of a felony or of any offense involving moral turpitude, dishonesty, breach of trust, organized crime or racketeering; (C) fraud, disloyalty, dishonesty, or willful violation of any law or significant Bank policy committed in connection with the Insured’ s employment; or (D) the Insured’ s unreasonable and/or abusive use of addictive substances, which in the Bank’ s reasonable judgment, interferes with the Insured’ s ability to perform his duties.

 

For purposes of this Agreement, the term ‘Good Reason’ shall mean any of the following which occurs, without the Insured’s advance written consent, after the Insured shall have given written notice to the Bank of the existence of one or more of the conditions described below within ninety (90) days after the initial existence of the condition, and after the Bank shall have defaulted in its obligation within 30 days thereafter to remedy the condition:

 

	 	
			(X)

				
			A reduction in the Insured’s Base Salary (as defined in the Insured’s employment agreement, dated November 23, 2018) or material reduction in Insured’s incentive compensation opportunity or structure;

			

 

	 	
			(Y)

				
			A material diminution of the Insured’s authority, duties, or responsibilities; or

			

 

2

 

 

	 	
			(Z)

				
			A material change in the principal office location at which the Insured must perform services for the Bank, which, for purposes of this provision, shall be a location outside the 25 mile radius from the Insured’ s existing office location.

			

 

For purposes of this Agreement, the term ‘Substantially Disabled’ shall mean the Insured has been determined to be eligible for long-term disability benefits under the long-term disability benefit plan of the Bank covering Insured or for disability benefits under the federal Social Security Acts.

 

(c)     In the event of a termination of the Insured’s employment by the Bank without Cause, a voluntary resignation by the Insured for Good Reason or termination of employment due to the Insured becoming Substantially Disabled or, in the event of a Change in Control that occurs while the Insured is employed by the Bank or any of its affiliates, other than a Change in Control resulting from the consummation of the transactions contemplated by that certain Agreement and Plan of Merger by and among National Commerce Corporation, a Delaware corporation, and CenterState Bank Corporation, a Florida corporation, dated as of November 23, 2018, this Agreement shall remain in effect until the earlier of (i) the distribution of the death benefit proceeds in accordance with Section 6 above or (ii) the Insured attaining age 80, unless the Insured consents in writing to an earlier termination of the Agreement.”

 

2.     This Amendment shall become effective upon the closing of the transactions contemplated by the Merger Agreement. If the closing of the transactions contemplated in the Merger Agreement does not occur or in the event the Merger Agreement is terminated prior to the consummation of the transactions contemplated therein, this Amendment shall be null and void in ab initio and shall have no force and effect.

 

3.     By signing this Amendment below, the Insured hereby consents to this Amendment and acknowledges and agrees that any voluntary resignation, other than a voluntary resignation for Good Reason following the occurrence of a Change in Control that is the result of the consummation of the transactions contemplated by the Merger Agreement, will result in the immediate termination of the Agreement; provided however, the Agreement shall continue until the earlier of the distribution of the death benefit proceeds or the Insured’s 80th birthday, in the event of a Change in Control (other than a Change in Control resulting from the consummation of the transactions contemplated by the Merger Agreement) that occurs while the Insured is employed by the Bank or any affiliate (unless the Insured consents in writing to an earlier termination of the Agreement).

 

3

 

 

4.     All other terms and conditions of the Agreement not herein amended shall remain in full force and effect and any capitalized terms not defined in this Amendment shall have the meanings ascribed to them in the Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed, this Amendment as of the day and year first above written.

 

 

	 	BANK:
	 	 
	 	National Bank of Commerce
	 	 
	 	By	/s/ William E. Matthews, V
	 	 	William E. Matthews, V
	 	 	 
	 	Its	President and CFO
	 	 
	 	 
	 	INSURED:
	 	 
	 	 
	 	/s/ Michael D. Goodson, Jr.
	 	Michael D. Goodson, Jr.

 

4Exhibit 10.1

 

RIDER TO BUSINESS LOAN AGREEMENT (ASSET
BASED)

AND RELATED DOCUMENTS

 

This Rider to Business Loan Agreement (Asset
Based) (“Rider”) is attached to and made a part of that certain Change in Terms Agreement dated December 18,
2018 (the “Change in Terms Agreement”), referring to that certain original Promissory Note # 15695 dated December
18, 2013 and related to that certain Business Loan Agreement (Asset Based) dated December 18, 2016 (as amended to date, the “Business
Loan Agreement”), in each case between Electromed, Inc. (“Borrower”) and Choice Financial Group (formerly
Venture Bank) (“Lender”). In the event of any inconsistency between this Rider, the Change in Terms Agreement,
the Business Loan Agreement or any of the Related Documents as defined in the Business Loan Agreement (including any Change of
Terms Agreement executed concurrently herewith), the terms of this Rider shall control. Terms used herein and not otherwise defined
shall have the meanings given such terms in the Business Loan Agreement. Accordingly, notwithstanding any provisions of the Business
Loan Agreement or any of the Related Documents:

 

1.          Lender
does not require any opinions of counsel to Borrower in connection with the Loan.

 

2.          Borrower’s
representations and warranties with respect to Hazardous Substances are made to the best of its knowledge, based upon reasonable
investigation, and subject to any matters disclosed in any environmental site assessments obtained by or delivered to Lender.
Lender acknowledges and agrees that the Collateral has been used for the storage, use and generation of hazardous substances as
customary in Borrower’s business in compliance with all applicable laws and may in the future be used for such purposes
in compliance with all applicable laws. Further, inspections, tests and assessments of the Collateral by Lender to determine compliance
with the provisions of the Business Loan Agreement and Related Documents relating to Hazardous Substances shall be at Borrower’s
expense only if Lender has reasonable cause to believe Borrower is in violation of such provisions.

 

3.          Lender’s
request for additional information and insurance coverage shall be reasonable for the type of business and type of property constituting
the Collateral. Borrower shall not have the obligation to have the Collateral appraised for insurance purposes during the term
of the Loan.

 

4.          Borrower
shall not have the obligation to notify Lender of defaults under any agreements other than the Business Loan Agreement or Related
Documents unless such defaults are material.

 

5.          Borrower
shall not have the obligation to notify Lender of management changes other than executive management changes.

 

6.          Lender
shall give Borrower reasonable notice prior to inspection of the tangible Collateral or Borrower’s books and records.

 

7.          Lender
shall not have the right to exercise any of the remedies (including the right of setoff and the right to freeze accounts of Borrower)
provided for under the Business Loan Agreement or Related Documents except upon the occurrence of an Event of Default as defined
therein and during the continuance of such Event of Default.

 

8.          Failure
of the Borrower to make any payment when due under the Loan shall not constitute an Event of Default under the Business Loan Agreement
or any of the Related Documents until five (5) days after written notice thereof is given to Borrower.

 

9.          Lender
will promptly notify Borrower if it makes any expenditures or takes any action pursuant to the paragraph labeled “LENDER’S
EXPENDITURES.”

 

     

     

    

 

10.        Borrower
shall have the right to incur indebtedness and grant related liens to other lenders and to enter into equipment leases from third
party vendors or finance companies to finance equipment acquisitions not to exceed $100,000 per year without the consent of Lender.

 

11.        The
filing of any involuntary bankruptcy or insolvency petition against Borrower shall not constitute an Event of Default unless the
Borrower fails to have such filing dismissed within thirty days after such filing is made or the court grants the petition tor
relief.

 

12.        A
change in ownership of Borrower’s stock shall not constitute a default.

 

13.        A
material adverse change in Borrower’s financial condition, or Lender believing the prospect of payment or performance is
impaired, or the Lender otherwise believing itself insecure, shall not constitute an event of default so long as no other event
of default has occurred and is continuing.

 

14.        Borrower
shall have the right to sell obsolete equipment or fixtures constituting part of the Collateral without the consent of Lender,
so long as such equipment or fixtures are promptly replaced with items of equivalent or greater value.

 

15.        Lender
shall not sell the Loan to another lender or sell participation interests in the Loan without Borrower’s prior consent,
except in the event of the sale or transfer of substantially all the assets of Lender.

 

16.        There
are no guarantors of the Loan, and no affiliates of Borrower shall be required to provide Collateral.

 

17.        The
definition of “Eligible Accounts” is hereby modified to include (i) foreign accounts that are secured by a letter
of credit issued by a U.S. state or federal bank acceptable to Lender, and (ii) accounts that are conditional but are carried
on Borrower’s books in accordance with GAAP. Further, Lender shall not unreasonably disqualify accounts as Eligible Accounts
based upon the creditworthiness or financial condition of the Account Debtor.

 

18.        The
Commercial Security Agreement shall secure only the Note, the obligations under the Related Documents, and that certain Promissory
Note dated December 18, 2013 between Borrower and Lender in the amount of $1,300,000 (the “RE Note”) and the “Related
Documents” as defined in the Business Loan Agreement of even date herewith between Borrower and Lender relating to the RE
Note.

 

19.        Borrower
may maintain deductib1es under its insurance policies up to $20,000. Borrower shall not have the obligation to notify Lender and
shall have the right to adjust and receive insurance proceeds upon damage to the Collateral not exceeding $50,000, so long as
Borrower promptly repairs and restores such damage. The occurrence of casualty damage or other loss which is insured (other than
a reasonable deductible) shall not constitute an Event of Default.

 

20.        Lender
waives the obligation of Borrower to make monthly payments into reserves for payment of insurance unless and until an Event of
Default occurs.

 

21.        Lender
will not require direct payment of accounts to Lender or into a lock box unless and until an Event of Default occurs.

 

22.        Borrower
has a corporate seal but it is not required for effective execution of the Business Loan Agreement or any of the Related Documents.

 

     

     

    

 

23.        The
immediate termination of all commitments pursuant to the paragraph labeled “EFFECT OF AN EVENT OF DEFAULT” will not
trigger the mandatory loan prepayment obligation of Borrower pursuant to the paragraph labeled “Mandatory Loan Repayments”
unless and until Lender elects to accelerate the Indebtedness.

 

24.        Borrower
may sell inventory in the ordinary course of business without the prior written consent of the Lender. Borrower may also compromise,
settle, adjust or extend payment under or with regard to Accounts in the ordinary course of business using prudent business practices,
provided the Borrower promptly remedies any noncompliance with the Borrowing Base following such action.

 

25.        All
representations and warranties made by Borrower related to Collateral ownership, title and Security Interests, as well as all
conditions precedent to Advances and covenants of Borrower related to the foregoing, are amended to specifically permit the existence
of and allow the continuance of Permitted Liens.

 

26.        The
terms set forth in the Business Loan Agreement (as modified and controlled by this Rider) control in the event of any inconsistency
between the Business Loan Agreement (as modified and controlled by this Rider) and any Related Document.

 

27.        Borrower
shall only be obligated to reimburse or make payment to Lender for reasonable costs, expenditures and expenses incurred by Lender;
provided, however, that in the event of an enforcement action or proceeding, Borrower shall be obligated to reimburse Lender for
all costs, expenditures and expenses.

 

28.        A
default will not arise in respect of any representations, warranties or covenants made by or binding on Borrower related to compliance
with laws, ordinances, rules and regulations unless the Borrower has failed to comply with such laws, ordinances, rules and regulations
in a manner that has or could have, in the reasonable opinion of the Lender, a material adverse effect on Borrower’s operations
or properties.

 

29.        Notwithstanding
that Lender has required the form of “Corporate Resolution to Borrower / Grant Collateral” be dated as of December
18, 2018, Borrower and Lender hereby acknowledge and agree that Borrower has duly adopted and approved resolutions approving the
Change in Terms Agreement, Business Loan Agreement, the Related Documents and this Rider as of December 17, 2018.

 

30.        Notwithstanding
any reference in the Change in Terms Agreement or any other document executed in connection therewith in December 2018, Borrower
and Lender hereby acknowledge and agree that (a) no replacement or new Business Loan Agreement is executed by the parties in December
2018 and (b) each reference to the “Business Loan Agreement” contained in the Change in Terms Agreement or any other
related documents shall be a reference to the Business Loan Agreement (Asset Based) dated December 18, 2016 (as amended by the
Change in Terms Agreement). 

 

Signature page follows

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Rider to be duly executed effective as of December 18, 2018.

 

	 	CHOICE FINANCIAL GROUP
	 	 	 
	 	By: /s/ Kevin P. Doyle
	 	Name: Kevin P. Doyle
	 	Title:   Vice President
	 	 	 
	 	ELECTROMED, INC.
	 	 	 
	 	By: /s/ Jeremy Brock
	 	Name: Jeremy Brock
	 	Title:   Chief Financial Officer

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