Document:

exv10w19

Exhibit 10.19

INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of
                     ,      20      between Fortegra Financial Corporation, a Delaware corporation (the
“Company”), and [     ] (“Indemnitee”). Capitalized terms not defined elsewhere in
this Agreement are used as defined in Section 13.

     WHEREAS, highly competent persons have become more reluctant to serve corporations as
directors or officers or in other capacities unless they are provided with adequate protection
through insurance or adequate indemnification against inordinate risks of claims and actions
against them arising out of their service to and activities on behalf of the corporation;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in
order to attract and retain qualified individuals, the Company will attempt to maintain on an
ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and
its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and other business
enterprises, the Company believes that, given current market conditions and trends, such insurance
may be available to it in the future only at higher premiums and with more exclusions. At the same
time, directors, officers, and other persons in service to corporations or business enterprises are
being increasingly subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the Company or business
enterprise itself. The certificate of incorporation of the Company (as amended, the
“Charter”) requires indemnification of the officers and directors of the Company.
Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the
State of Delaware (“DGCL”). The Charter and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby contemplate that
contracts may be entered into between the Company and members of the board of directors, officers
and other persons with respect to indemnification;

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons;

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified;

     WHEREAS, this Agreement is a supplement to and in furtherance of the Charter of the Company
and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder; and

 

 

     WHEREAS, Indemnitee does not regard the protection available under the Company’s Charter and
insurance as adequate in the present circumstances, and may not be willing to serve as a director
without adequate protection, and the Company desires Indemnitee to serve in such capacity.
Indemnitee is willing to serve, continue to serve and to take on additional service for or on
behalf of the Company on the condition that he be so indemnified.

     NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve as a director from and
after the date hereof, the parties hereto agree as follows:

          1. Indemnity of Indemnitee. The Company hereby agrees to hold harmless and indemnify
Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In
furtherance of the foregoing indemnification, and without limiting the generality thereof:

               (a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section l(a) if, by
reason of his Corporate Status, Indemnitee is, or is threatened to be made, a party to or
participant in any Proceeding other than a Proceeding by or in the right of the Company. Pursuant
to this Section 1(a), Indemnitee shall be indemnified against all Expenses, judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred by him, or on his
behalf, in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the
best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause
to believe Indemnitee’s conduct was unlawful.

               (b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 1(b) if, by reason of his Corporate
Status, Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding
brought by or in the right of the Company. Pursuant to this Section 1(b), Indemnitee shall
be indemnified against all Expenses actually and reasonably incurred by Indemnitee, or on
Indemnitee’s behalf, in connection with such Proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company;
provided, however, if applicable law so provides, no indemnification against such Expenses shall be
made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have
been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of
the State of Delaware shall determine that such indemnification may be made.

               (c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a party to and is successful, on the merits or otherwise, in any
Proceeding, he shall be indemnified to the maximum extent permitted by law, as such may be amended
from time to time, against all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful,
on the merits or otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably
incurred by him or on his behalf in connection with

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each successfully resolved claim, issue or matter. For purposes of this Section 1(c)
and without limitation, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

          2. Additional Indemnity. In addition to, and without regard to any limitations on,
the indemnification provided for in Section 1 of this Agreement, the Company shall and
hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties,
fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if,
by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in
any Proceeding (including a Proceeding by or in the right of the Company), including, without
limitation, all liability arising out of the negligence or active or passive wrongdoing of
Indemnitee. The only limitation that shall exist upon the Company’s obligations pursuant to this
Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that
is finally determined (under the procedures, and subject to the presumptions, set forth in
Sections 6 and 7 hereof) to be unlawful.

          3. Contribution.

               (a) Whether or not the indemnification provided in Sections 1 and 2 hereof is
available, in respect of any threatened, pending or completed action, suit or proceeding in which
the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or
settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such
payment and the Company hereby waives and relinquishes any right of contribution it may have
against Indemnitee. The Company shall not, without the Indemnitee’s prior written consent, enter
into any such settlement of any action, suit or proceeding (in whole or in part) unless such
settlement (i) provides for a full and final release of all claims asserted against Indemnitee and
(ii) does not impose any Expense, judgment, fine, penalty or limitation on Indemnitee.

               (b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in
which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of Expenses, judgments, fines and amounts
paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion
to the relative benefits received by the Company and all officers, directors or employees of the
Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in
such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the
transaction from which such action, suit or proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent necessary to conform to
law, be further adjusted by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the
other hand, in connection with the events that resulted in such expenses, judgments, fines or
settlement amounts, as well as any other equitable considerations which the Law may require to be considered. The relative fault of the

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Company and all officers, directors or employees of the Company, other than Indemnitee, who are
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other
things, the degree to which their actions were motivated by intent to gain personal profit or
advantage, the degree to which their liability is primary or secondary and the degree to which
their conduct is active or passive.

               (c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by officers, directors or employees of the Company, other than
Indemnitee, who may be jointly liable with Indemnitee.

               (d) To the fullest extent permissible under applicable law, if the indemnification provided
for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu
of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for
Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in
such proportion as is deemed fair and reasonable in light of all of the circumstances of such
Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as
a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the
relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in
connection with such event(s) and/or transaction(s).

          4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness, or
is made (or asked to) respond to discovery requests, in any Proceeding to which Indemnitee is not a
party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on
his behalf in connection therewith.

          5. Advancement of Expenses. Notwithstanding any other provision of this Agreement,
the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt
by the Company of a statement or statements from Indemnitee requesting such advance or advances
from time to time, whether prior to or after final disposition of such Proceeding. Such statement
or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be
preceded or accompanied by a written undertaking by or on behalf of Indemnitee to repay any
Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be
indemnified against such Expenses. Any advances and undertakings to repay pursuant to this
Section 5 shall be unsecured and interest free.

          6. Procedures and Presumptions for Determination of Entitlement to Indemnification.
It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as
favorable as may be permitted under the DGCL and public policy of the State of Delaware.
Accordingly, the parties agree that the following procedures and presumptions shall apply in the
event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

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               (a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon
receipt of such a request for indemnification, advise the Board of Directors in writing that
Indemnitee has requested indemnification. Notwithstanding the foregoing, any failure of Indemnitee
to provide such a request to the Company, or to provide such a request in a timely fashion, shall
not relieve the Company of any liability that it may have to Indemnitee unless, and to the extent
that, such failure actually and materially prejudices the interests of the Company.

               (b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 6(a) hereof, a determination with respect to Indemnitee’s entitlement thereto shall
be made in the specific case by one of the following four methods, which shall be at the election
of the board: (1) by a majority vote of the disinterested directors, even though less than a
quorum, (2) by a committee of disinterested directors designated by a majority vote of the
disinterested directors, even though less than a quorum, (3) if there are no disinterested
directors, or if the disinterested directors so direct, by Independent Counsel in a written opinion
to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (4) if so directed
by the Board of Directors, by the stockholders of the Company; provided, however, that if a Change
in Control has occurred, the determination with respect to Indemnitee’s entitlement to
indemnification shall be made by Independent Counsel. For purposes hereof, disinterested directors
are those members of the board of directors of the Company who are not parties to the action, suit
or proceeding in respect of which indemnification is sought by Indemnitee.

               (c) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel, the Independent Counsel shall be selected as provided in this Section
6(c). If a Change in Control has not occurred, the Independent Counsel shall be selected by the
Board of Directors (including a vote of a majority of the Disinterested Directors if obtainable),
and the Company shall give written notice to the Indemnitee advising him of the identity of the
Independent Counsel so selected. Indemnitee may, within 10 days after such written notice of
selection shall have been given, deliver to the Company a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the Independent
Counsel so selected does not meet the requirements of “Independent Counsel” as defined in
Section 13 of this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the person so selected
shall act as Independent Counsel. If a written objection is made and substantiated, the
Independent Counsel selected may not serve as Independent Counsel unless and until such objection
is withdrawn or a court has determined that such objection is without merit. If a Change in
Control has occurred, the Independent Counsel shall be selected by the Indemnitee (unless the
Indemnitee shall request that such selection be made by the Board of Directors, in which event the
preceding sentence shall apply), and approved by the Board of Directors (which approval shall not
be unreasonably withheld). If (i) an Independent Counsel is to make the determination of
entitlement pursuant to this Section 6, and (ii) within 20 days after submission by
Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof, no
Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee
may petition the

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Court of Chancery of the State of Delaware or other court of competent jurisdiction for
resolution of any objection which shall have been made by Indemnitee to the Company’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the
court or by such other person as the court shall designate, and the person with respect to whom all
objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of
Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to
Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to
the procedures of this Section 6(c), regardless of the manner in which such Independent
Counsel was selected or appointed.

               (d) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure
of the Company (including by its directors or independent legal counsel) to have made a
determination prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its directors or independent
legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of
conduct.

               (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial statements, or on
information supplied to Indemnitee by the officers of the Enterprise in the course of their duties,
or on the advice of legal counsel for the Enterprise or on information or records given or reports
made to the Enterprise by an independent certified public accountant or by an appraiser or other
expert selected with reasonable care by the Enterprise. In addition, the knowledge and/or actions,
or failure to act, of any director, officer, agent or employee of the Enterprise shall not be
imputed to Indemnitee for purposes of determining the right to indemnification under this
Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied, it
shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the Company. Anyone
seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by
clear and convincing evidence.

               (f) If the person, persons or entity empowered or selected under this Section 6 to
determine whether Indemnitee is entitled to indemnification shall not have made a determination
within sixty (60) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such 60-day period may be extended
for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or
entity making such determination with respect to entitlement to indemnification in

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good faith requires such additional time to obtain or evaluate documentation and/or
information relating thereto; and provided, further, that the foregoing provisions of this
Section 6(f) shall not apply if the determination of entitlement to indemnification is to
be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A) within
fifteen (15) days after receipt by the Company of the request for such determination, the Board of
Directors or the Disinterested Directors, if appropriate, resolve to submit such determination to
the stockholders for their consideration at an annual meeting thereof to be held within
seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special
meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of
making such determination, such meeting is held for such purpose within sixty (60) days after
having been so called and such determination is made thereat.

               (g) Indemnitee shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person,
persons or entity upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any Independent Counsel, member of the Board of
Directors or stockholder of the Company shall act reasonably and in good faith in making a
determination regarding Indemnitee’s entitlement to indemnification under this Agreement. Any
costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so
cooperating with the person, persons or entity making such determination shall be borne by the
Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and
the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

               (h) The Company acknowledges that a settlement or other disposition short of final judgment
may be successful if it permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is
resolved in any manner other than by adverse judgment against Indemnitee (including, without
limitation, settlement of such action, claim or proceeding with or without payment of money or
other consideration) it shall be presumed that Indemnitee has been successful on the merits or
otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall
have the burden of proof and the burden of persuasion by clear and convincing evidence.

               (i) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

          7. Remedies of Indemnitee.

               (a) In the event that (i) a determination is made pursuant to Section 6 of this
Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii)

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advancement of Expenses is not timely made pursuant to Section 5 of this Agreement,
(iii) no determination of entitlement to indemnification is made pursuant to Section 6(b)
of this Agreement within 90 days after receipt by the Company of the request for indemnification,
(iv) payment of indemnification is not made pursuant to this Agreement within ten (10) days after
receipt by the Company of a written request therefor or (v) payment of indemnification is not made
within ten (10) days after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 6 of
this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the
State of Delaware, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to
such indemnification, contribution or advancement of Expenses. Alternatively, Indemnitee, at his
option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association. Except as set forth herein,
the provisions of Delaware law (without regard to its conflict of law rules) shall apply to any
such arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or
award in arbitration.

               (b) In the event that a determination shall have been made pursuant to Section 6(b) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding
commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial,
or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of the adverse
determination under Section 6(b). In any judicial proceeding or arbitration commenced
pursuant to this Section 7, Indemnitee shall be presumed to be entitled to indemnification
under this Agreement and the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or
introduce into evidence any determination pursuant to Section 6(b) of this Agreement
adverse to Indemnitee for any purpose. If Indemnitee commences a judicial proceeding or
arbitration pursuant to this Section 7, Indemnitee shall not be required to reimburse the
Company for any advances pursuant to Section 5 until a final determination is made with
respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been
exhausted or lapsed).

               (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in
any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for indemnification, or
(ii) a prohibition of such indemnification under applicable law.

               (d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial
adjudication of his rights under, or to recover damages for breach of, this Agreement, or to
recover under any directors’ and officers’ liability insurance policies maintained by the Company,
the Company shall pay on his behalf, in advance, any and all expenses (of the types described in
the definition of Expenses in Section 13 of this Agreement) actually and reasonably
incurred by him in such judicial adjudication, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advancement of expenses or insurance recovery.

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               (e) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of this Agreement are not
valid, binding and enforceable and shall stipulate in any such court that the Company is bound by
all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all
Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company
of a written request therefore) advance, to the extent not prohibited by law, such expenses to
Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee
for indemnification or advance of Expenses from the Company under this Agreement or under any
directors’ and officers’ liability insurance policies maintained by the Company, regardless of
whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of
Expenses or insurance recovery, as the case may be.

               (f) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.

          8. Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification;
Subrogation.

               (a) The rights of indemnification and to receive advancement of expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Charter, the By-laws, any agreement, a vote of stockholders, a
resolution of directors or otherwise, of the Company. No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this
Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status
prior to such amendment, alteration or repeal. To the extent that a change in the DGCL, whether by
statute or judicial decision, permits greater indemnification than would be afforded currently
under the Charter, By-laws and this Agreement, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right
or remedy herein conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other right or remedy.

               (b) The Company shall obtain and maintain in effect during the entire period for which the
Company is obligated to indemnify Indemnitee under this Agreement, one or more policies of
insurance with reputable insurance companies to provide the directors of the Company with coverage
for losses from wrongful acts and omissions and to ensure the Company’s performance of its
indemnification obligations under this Agreement. Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available for
any such officer or director under such policy or policies. In all such insurance policies,
Indemnitee shall be named as an insured in such a manner as to provide Indemnitee with the same
rights and benefits as are accorded to the most favorably insured of the Company’s directors and
officers. At the time of the receipt of a notice of a claim

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pursuant to the terms hereof, the Company shall give prompt notice of the commencement of such
proceeding to the insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the
terms of such policies.

               (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

               (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement or otherwise.

               (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification or advancement of
expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise.

          9. Exception to Right of Indemnification. Notwithstanding any provision in this
Agreement, the Company shall not be obligated under this Agreement to make any indemnity in
connection with any claim made against Indemnitee:

               (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
any insurance policy or other indemnity provision; or

               (b) for an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or
similar provisions of state statutory law or common law; or

               (c) for reimbursement to the Company of any bonus or other incentive-based or equity-based
compensation or of any profits realized by Indemnitee from the sale of securities of the Company in
each case as required under the Exchange Act; or

               (d) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the
Company or its directors, officers, employees or other indemnitees, unless (i) the Company has
joined in or the Board of Directors of the Company authorized the Proceeding (or any part of any
Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole
discretion, pursuant to the powers vested in the Company under applicable law, or (iii) the Proceeding is one to enforce Indemnitee’s rights under this
Agreement.

10

 

          10. Non-Disclosure of Payments. Except as expressly required by the securities laws of
the United States of America, neither party shall disclose any payments under this Agreement unless
prior approval of the other party is obtained. If any payment information must be disclosed, the
Company shall afford the Indemnitee an opportunity to review all such disclosures and, if
requested, to explain in such statement any mitigating circumstances regarding the events to be
reported.

          11. Duration of Agreement. All agreements and obligations of the Company contained
herein shall continue upon the later of (a) ten (10) years after the date that Indemnitee shall
have ceased to serve as a director of the Company or a director, officer, trustee, partner,
managing member, fiduciary, employee or agent of any other corporation, partnership, joint venture,
trust, employee benefit plan or other Enterprise which Indemnitee served at the request of the
Company; or (b) one (1) year after the final termination of any Proceeding (including any rights of
appeal thereto) in respect of which Indemnitee is granted rights of indemnification or advancement
of Expenses hereunder and of any Proceeding commenced by Indemnitee pursuant to Section 7
of this Agreement relating thereto (including any rights of appeal of any Section 7
Proceeding. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company), assigns, spouses, heirs, executors and personal and legal representatives.

          12. Security. To the extent requested by Indemnitee and approved by the Board of
Directors of the Company, the Company may at any time and from time to time provide security to
Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit,
funded trust or other collateral. Any such security, once provided to Indemnitee, may not be
revoked or released without the prior written consent of Indemnitee.

          13. Definitions. For purposes of this Agreement:

               (a) “Change in Control” shall be deemed to occur upon the earliest to occur after the
date of this Agreement of any of the following events:

     (i) Acquisition of Stock by Third Party. Any Person, other
than Summit Partners and its affiliates and other than a trustee or
other fiduciary holding securities under an employee benefit plan of
the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company, is or becomes the
Beneficial Owner, directly or indirectly, of securities of the
Company representing fifty (50%) or more of the combined voting
power of the Company’s then outstanding securities;

     (ii) Change in Board of Directors. During any period of
two (2) consecutive years (not including any period prior to the
execution of this Agreement), individuals who at the beginning of
such period constitute the Board, and any new director (other than

11

 

a director designated by a person who has entered into an agreement
with the Company to effect a transaction described in Section
13(a)(i), 13(a)(iii) or 13(a)(iv)) whose
election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a
least a majority of the members of the Board;

     (iii) Corporate Transactions. The effective date of a merger
or consolidation of the Company with any other entity, other than a
merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the
surviving entity) more than 51% of the combined voting power of the
voting securities of the surviving entity outstanding immediately
after such merger or consolidation and with the power to elect at
least a majority of the board of directors or other governing body
of such surviving entity; and

     (iv) Liquidation. The approval by the stockholders of the
Company of a complete liquidation of the Company or an agreement or
series of agreements for the sale or disposition by the Company of
all or substantially all of the Company’s assets, or, if such
approval is not required, the decision by the Board to proceed with
such a liquidation, sale, or disposition in one transaction or a
series of related transactions.

               (b) “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under
the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise
becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the
Company with another entity.

               (c) “Corporate Status” describes the status of a person who is or was a director,
officer, employee, agent or fiduciary of the Company, any direct or indirect subsidiary of the
Company, or of any other corporation, partnership, joint venture, trust, employee benefit plan or
other enterprise that such person is or was serving at the request of the Company.

               (d) “Disinterested Director” means a director of the Company who is not and was not a
party to the Proceeding in respect of which indemnification is sought by Indemnitee.

               (e) “Enterprise” shall mean the Company and any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the
request of the Company as a director, officer, employee, agent or fiduciary.

12

 

               (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

               (g) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, participating, or being or preparing to be a witness in a
Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding.
Expenses also shall include Expenses incurred in connection with any appeal resulting from any
Proceeding and any federal, state, local or foreign taxes imposed on Indemnitee as a result of the
actual or deemed receipt of any payments under this Agreement, including without limitation the
premium, security for, and other costs relating to any cost bond, supersede as bond, or other
appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

               (h) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five years has
been, retained to represent: (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The
Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of
or relating to this Agreement or its engagement pursuant hereto.

               (i) “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or
other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

               (j) “Proceeding” includes any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing
or any other actual, threatened or completed proceeding, whether brought by or in the right of the
Company or otherwise and whether civil, criminal, administrative or investigative, in which
Indemnitee was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was a director of the Company, by reason of any action taken
by him or of any inaction on his part while acting as a director of the Company, or by reason of
the fact that he is or was serving at the request of the Company as a director, officer, employee,
agent or fiduciary of another corporation, partnership, joint venture, trust or other Enterprise;
in each case whether or not he is acting or serving in any such capacity at the time any liability
or

13

 

expense is incurred for which indemnification can be provided under this Agreement; including
one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee
pursuant to Section 7 of this Agreement to enforce his rights under this Agreement.

          14. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality, and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section, paragraph or sentence of this Agreement containing any such provision held
to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable)
shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest
extent permitted by law; (b) such provision or provisions shall be deemed reformed to the fullest
extent necessary to conform to applicable law and to give the maximum effect to the intent of the
parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section, paragraph or sentence of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby. Without limiting the generality of the foregoing, this Agreement is intended
to confer upon Indemnitee indemnification rights to the fullest extent permitted by applicable
laws.

          15. Enforcement and Binding Effect.

               (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director
of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in
serving as a director of the Company.

               (b) Without limiting any of the rights of Indemnitee under the Charter or Bylaws of the
Company as they may be amended from time to time, this Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect
to the subject matter hereof.

               (c) The indemnification and advancement of expenses provided by, or granted pursuant to this
Agreement shall be binding upon and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase, merger,
consolidation or otherwise to all or substantially all of the business or assets of the Company),
shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of
the Company or of any other Enterprise at the Company’s request, and shall inure to the benefit of
Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other
legal representatives.

               (d) The Company shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all or a substantial part, of the
business and/or assets of the Company to expressly to assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place.

14

 

               (e) The Company and Indemnitee agree herein that a monetary remedy for breach of this
Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further
agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree
that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance
hereof, without any necessity of showing actual damage or irreparable harm and that by seeking
injunctive relief and/or specific performance, Indemnitee shall not he precluded from seeking or
obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree
that Indemnitee shall be entitled to such specific performance and injunctive relief, including
temporary restraining orders, preliminary injunctions and permanent injunctions, without the
necessity of posting bonds or other undertaking in connection therewith. The Company acknowledges
that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court,
and the Company hereby waives any such requirement of such a bond or undertaking.

          16. Modification and Waiver. No supplement, modification, termination or amendment of
this Agreement shall be binding unless executed in writing by both of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

          17. Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in writing
upon being served with or otherwise receiving any summons, citation, subpoena, complaint,
indictment, information or other document relating to any Proceeding or matter which may be subject
to indemnification covered hereunder. The failure to so notify the Company shall not relieve the
Company of any obligation which it may have to Indemnitee under this Agreement or otherwise.

          18. Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, and if not so confirmed, then on the next business day, (c)
five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be
sent:

               (a) To Indemnitee at the address set forth below Indemnitee signature hereto.

               (b) To the Company at:

               
     Fortegra Financial Corporation

               
     100 West Bay Street

               
     Jacksonville, Florida 32202

               
     Attention: Chief Executive Officer

15

 

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

          19. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
Agreement. This Agreement may also be executed and delivered by facsimile signature and in two or
more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

          20. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

          21. Usage of Pronouns. Use of the masculine pronoun shall be deemed to include usage
of the feminine pronoun where appropriate.

          22. Governing Law and Consent to Jurisdiction. This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of
the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee
hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in
connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware
(the “Delaware Court”), and not in any other state or federal court in the United States of
America or any court in any other country, (ii) generally and unconditionally consent to submit to
the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising
out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of
any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum. The foregoing consent to jurisdiction shall not constitute
general consent to service of process in the state for any purpose except as provided above, and
shall not be deemed to confer rights on any person other than the parties to this Agreement.

[SIGNATURE PAGE TO FOLLOW]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and
year first above written.

	 	 	 	 	 
	 	COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INDEMNITEE

 	 
	 	Name: 	  	 	 
	 	    	  	 	 
	 	Address: 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

17exv10w23

Exhibit 10.23

Execution Version

EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT

     AGREEMENT, dated as of the 1st day of January, 2009, by and between Fortegra Financial
Corporation, a Georgia corporation (the “Company”), and Michael Vrban, a resident of Ponte Vedra
Beach, Florida (the “Executive”).

     WHEREAS, the Company desires to engage the services of the Executive and the Executive desires
to be employed by the Company;

     WHEREAS, the Company desires to be assured that the unique and expert services of the
Executive will be substantially available to the Company, and that the Executive is willing and
able to render such services on the terms and conditions hereinafter set forth; and

     WHEREAS, the Company desires to be assured that the confidential information and good will of
the Company will be preserved for the exclusive benefit of the Company;

     NOW, THEREFORE, in consideration of such employment and the mutual covenants and promises
herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Executive agree as follows:

     Section 1. Employment and Position. Subject to Section 2, the Company hereby employs
the Executive as its Executive Vice President, CFO & Treasurer, and the Executive hereby accepts
such employment under and subject to the terms and conditions hereinafter set forth.

     Section 2. Term. The term of employment under this Agreement shall begin on January
1, 2009 (the “Effective Date”) and, unless sooner terminated as provided in Section 6, shall be for
a rolling, three-year term (the “Term”) so that the initial term shall be three years and, on each
anniversary of the Effective Date, the Agreement shall be renewed automatically for an additional
year unless either party shall provide written notice to the other party not less than ninety (90)
days prior to the anniversary of the Effective Date that it or he does not wish to so extend the
Agreement. Upon delivery of such notice, the “Term” of this Agreement shall be the three years
following the anniversary of this Agreement that next follows such notice and this Agreement shall
terminate upon the expiration of such Term.

     Section 3. Duties. The Executive shall perform services in a managerial capacity in a
manner consistent with the Executive’s position as Executive Vice President, CFO & Treasurer,
subject to the general supervision of the Company’s Chief Executive Officer. The Executive hereby
agrees to devote his full business time and best efforts to the faithful performance of such duties
and to the promotion and forwarding of the business and affairs of the Company for the Term.

     Section 4. Compensation. (a) Salary. In consideration of the services
rendered by the Executive under this Agreement, the Company shall pay the Executive a base salary
(the “Base Salary”) as set forth in Schedule A. The Base Salary shall be paid in such installments
and at such times as the Company pays its regularly salaried executives and shall be subject to all

 

necessary withholding taxes, FICA contributions and similar deductions. The Base Salary will
be reviewed annually by the Chief Executive Officer of the Company. The Base Salary may be
adjusted each year based on the recommendations and approval of the Chief Executive Officer of the
Company, as approved by the Board of Directors.

     (b) Annual Bonus. During the Term, the Company from time to time shall pay the
Executive an annual bonus (the “Annual Bonus’). The Annual Bonus shall be calculated as described
in Schedule A hereto. Any compensation paid to the Executive as the Annual Bonus shall be
in addition to the Base Salary, but shall be in lieu of participation in any other incentive,
profit sharing or bonus compensation program which the Company currently maintains, provided
however, that the foregoing shall not preclude participation in other Company stock and option
plans. All Bonus and benefit plans are subject to annual review and changes by the Company
relative to key strategic objectives for the year.

     The Annual Bonus to which the Executive is entitled pursuant to this Section, is referred to
herein as the “Bonus.” Such Bonus shall be paid within thirty (30) days after receipt of audited
financial statements by the Company for the year for which such Bonus is paid, provided that an
earlier draw against the Annual Bonus projected to be earned may at the discretion of the Company
be paid when earnings for the fiscal year can be reasonably determined in accordance with past
practices.

     Section 5. Benefits. In addition to the compensation detailed in Section 4 of this
Agreement, the Executive shall be entitled to the following additional benefits:

     Section 5.01. Paid Vacation. The Executive shall be entitled to four (4) weeks paid
vacation per calendar year, such vacation to extend for such periods and shall be taken at such
intervals as shall be appropriate and consistent with the proper performance of the Executive’s
duties hereunder.

     Section 5.02. Insurance Coverage. During the Term, the Executive and/or the
Executive’s dependents, as the case may be, shall be eligible for participation in and shall
receive all benefits under welfare benefit plans, practices, policies and programs provided by the
Company to similarly-situated executives of the Company (including, without limitation, medical,
dental and group life insurance plans and programs and the executive medical reimbursement plan) to
the extent applicable generally to other executives of the Company.

     Section 5.03. Reimbursement of Expenses. The Company shall reimburse the Executive
for all reasonable and necessary expenses actually incurred by the Executive directly in connection
with the business affairs of the Company and the performance of his duties hereunder, upon
presentation of proper receipts or other proof of expenditure and subject to such reasonable
guidelines or limitations provided by the Company from time to time. The Executive shall comply
with such reasonable limitations and reporting requirements with respect to such expenses as the
Company may establish from time to time. Except to the extent specifically provided however, the
Executive shall not use Company funds for non-business, non-Company related matters or for personal
matters.

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     Section 5.04. Perquisites. During the Term, the Executive shall be entitled to
perquisites, such as an automobile allowance, as set forth in Schedule A. All perquisites are
subject to annual review and adjustment by the Company, subject to the recommendations and approval
of the Chief Executive Officer.

     Section 5.05. Other Benefit Plans. During the Term, the Executive shall be entitled
to participate in other incentive, savings, retirement, 401k, deferred compensation and pension
plans, practices, policies and programs as determined by the Company from time to time.

     Section 6. Termination. This Agreement shall be terminated at the end of the Term or
earlier as follows:

     Section 6.01. Death. This Agreement shall automatically terminate upon the death of
the Executive and all rights of the Executive and his heirs, executors and administrators to
compensation and other benefits shall cease, except that the compensation provided in Section 4
shall continue through the end of the month in which the Executive’s death occurs.

     Section 6.02. Permanent Disability. In the event of any physical or mental disability
of the Executive rendering the Executive substantially unable to perform his duties in any material
respect hereunder for a period of at least 180 days out of any twelve-month period, this Agreement
shall terminate automatically. Any determination of disability shall be made by the Company in
consultation with a qualified physician or physicians selected by the Company and reasonably
acceptable to the Executive. The failure of the Executive to submit to a reasonable examination by
such physician or physicians shall act as an estoppel to any objection by the Executive to the
determination of disability by the Company.

     Section 6.03. By the Company For Cause.  The employment of the Executive
may be terminated by the Company for Cause (as defined below) at any time effective upon written
notice to the Executive. For purposes hereof, the term “Cause” shall mean that the Company has
determined that any one or more of the following has occurred:

     (a) The Executive shall have been convicted of, or shall have pleaded guilty or nolo
contendere to, any felony or any crime involving moral turpitude or misrepresentation;

     (b) The Executive shall have failed or refused to carry out the reasonable and lawful
instructions of the Company (other than as a result of illness or disability) concerning
duties or actions consistent with the Executive’s position as Executive Vice President, CFO
& Treasurer and such failure or refusal shall have continued for a period of ten (10) days
following written notice from the Company;

     (c) the Executive shall have breached any provision of Section 8 or 9 hereof; or

     (d) the Executive shall have committed any fraud, embezzlement, misappropriation of
funds, misrepresentation, breach of fiduciary duty or other material act of dishonesty
against the Company.

3

 

     (e) the Executive shall have engaged in any gross or willful misconduct resulting in a
substantial loss to the Company or substantial damage to its reputation.

     Notwithstanding the foregoing, the occurrence of the event specified in (c) above shall
not constitute Cause unless the Company gives Executive written notice that such event
constitutes Cause and the Executive thereafter fails to cure such event within thirty (30)
days after receipt of such notice.

     Section 6.04. By the Company without Cause. The Company may terminate the Executive’s
employment at any time without Cause effective upon written notice to the Executive.

     Section 6.05. By the Executive Voluntarily. The Executive may terminate this
Agreement at any time effective upon at least 30 days prior written notice to the Company.

     Section 6.06. By the Executive for Good Reason. The Executive may terminate this
Agreement effective upon written notice to the Company for Good Reason. Such notice must provide a
detailed explanation of the Good Reason. Any such termination shall be treated for purposes of
this Agreement as a termination by the Company without Cause. For this purpose, the term “Good
Reason” shall mean: (i) the assignment to the Executive of any duties inconsistent in any
substantial respect with the Executive’s position, authority or responsibilities as contemplated by
Section 1 of this Agreement or any duties which are illegal or unethical; (ii) any material failure
to pay the compensation or benefits described in Sections 4 or 5 of this Agreement; or (iii) the
relocation by the Company of the Executive’s primary place of employment with the Company to a
location not within a 50 mile radius of Jacksonville, FL. Notwithstanding the foregoing, in the
event the Executive provides notice of Good Reason contained in subclause (i) of the immediately
preceding sentence, the Company shall have the opportunity to cure such Good Reason within 30 days
of receiving such notice.

     Section 7. Termination Payments and Benefits.

     Section 7.01. Voluntary Termination, Termination For Cause. Upon any termination of
this Agreement either (i) voluntarily by the Executive or (ii) by the Company for Cause as provided
in Section 6.03, all payments, salary and other benefits hereunder shall cease at the effective
date of termination. Notwithstanding the foregoing, the Executive shall be entitled to receive
from the Company (a) all Base Salary earned or accrued through the date the Executive’s employment
is terminated, (b) reimbursement for any and all monies advanced in connection with the Executive’s
employment for reasonable and necessary expenses incurred by the Executive through the date the
Executive’s employment is terminated and (c) all other payments and benefits to which the Executive
may be entitled under the terms of any applicable compensation arrangement or benefit plan or
program of the Company, including any earned and accrued, but unused vacation pay, any Annual Bonus
for a prior year provided the Executive was employed on December 31 of such year. For purposes of
this Agreement, Accrued Benefits shall not include any entitlement to Annual Bonus for the then
current year, or any severance under any Company severance policy generally applicable to the
Company’s salaried employees.

4

 

     Section 7.02. Termination without Cause or for Good Reason. In the event that this
Agreement is terminated by the Company without Cause, or by the Executive for Good Reason, the
Executive shall be entitled to receive, as his exclusive right and remedy in respect of such
termination, (i) his Accrued Benefits, (ii) as long as the Executive does not violate the
provisions of Section 8 and Section 9 hereof, severance pay equal to the Executive’s then current
monthly Base Salary, payable in accordance with the Company’s regular pay schedule, for twelve (12)
months from the date of termination of employment, (iii) at the times the Company pays its
executive bonuses in accordance with its general payroll policies, an amount equal to that portion
of the Annual Bonus which but for his termination would have been earned by the Executive during
the year of his termination (pro-rated based on a formula, the denominator of which shall be 365
and the numerator of which shall be the number of days during the year of his termination during
which the Executive was employed by the Company on an active status) (the “Pro-Rated Bonus”) and
(iv) the Executive and the Executive’s family shall continue to be covered, upon the same terms and
conditions as described hereinabove, by the same or equivalent medical, dental, and life insurance
coverages as in effect for the Executive immediately prior to the termination of his employment,
until the earlier of (A) the expiration of the period for which he receives severance pay pursuant
to clause (ii) above or (B) the date the Executive has commenced new employment and has thereby
becomes eligible for comparable benefits, subject to the Executive’s rights under COBRA.

     Section 7.03. Termination due to Death or Permanent Disability. In the event that
this Agreement is terminated due to the death or Permanent Disability of the Executive, the
Executive, or his estate or designated beneficiary, as the case may be, shall receive (i) Accrued
Benefits and (ii) the Pro-Rated Bonus. In addition, the Executive and his family shall continue to
be covered for a period of one (1) year, upon the same terms and conditions as described
hereinabove, by the same or equivalent medical, dental, and life insurance coverage as in effect
for the Executive immediately prior to the termination of his employment because of Death or
Permanent Disability.

     Section 7.04. Accrued Benefits. Notwithstanding anything else herein to the contrary,
all Accrued Benefits to which the Executive (or his estate or beneficiary) is entitled shall be
payable in cash promptly upon termination of his Employment Period, except as otherwise
specifically provided herein, or under the terms of any applicable policy, plan or program.

     Section 7.05. No Other Benefits. Except as specifically provided in this Section 7,
the Executive shall not be entitled to any compensation, severance or other benefits from the
Company or any of its subsidiaries or affiliates upon the termination of this Agreement for any
reason whatsoever. Payment by the Company of all Accrued Benefits and other amounts and
contributions to the cost of the Executive’s participation in the Company’s group health and dental
plans that may be due to the Executive under the applicable termination provision of Section 6
shall constitute the entire obligation of the Company to the Executive.

     Section 7.06 Survival of Certain Provisions. Provisions of this Agreement shall
survive any termination of employment if so provided herein or if necessary or desirable fully to
accomplish the purposes of such provision, including, without limitation, the obligations of the
Executive under Section 8 and 9 hereof. The obligation of the Company to make payments to or on
behalf of the Executive under Section 7 hereof is expressly conditioned upon the Executive’s

5

 

continued full performance of obligations under Section 8 and Section 9 hereof and execution
of a waiver releasing claims against the Company in a form satisfactory to the Company. The
Executive recognizes that, except as expressly provided in Section 7, no compensation is earned
after termination of employment.

     Section 7.07 Public Statement of Termination. In the event the Executive’s employment
terminates for any reason, the Company and the Executive shall agree upon a public statement
pertaining to the Executive’s termination of employment, and the terms of said statement shall not
be subject to subsequent modification by either party unless required by law; provided, however,
that in the event the Company and the Executive are unable in good faith to agree on such a
statement, the Company may make public statements as are necessary to comply with the law.

     Section 7.08 Limitation on Benefits on Termination. (a) Anything in this Agreement
to the contrary notwithstanding and except as set forth below, in the event it shall be determined
that any payment or distribution by the Company to or for the benefit of the Executive (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise) (a “Payment”) would be treated as an “excess parachute payment” (as defined in Section
280G(b)(1) of the Internal Revenue Code of 1986 as amended (the “Code”)), then the Company and the
Executive shall modify such Payments so that such Payments shall not cause the Company to make an
“excess parachute payment.” The Company and the Executive agree to work together in good faith,
and consistent with applicable law, to modify such Payments in a way so as to have the least impact
on the Executive and his Payments.

     (b) All determinations required to be made under this Section 7.08 and the assumptions to be
utilized in arriving at such determination, shall be made by the Company’s independent auditors or
such other certified public accounting firm reasonably acceptable to the Executive as may be
designated by the Company. The Executive shall be entitled, to the extent permitted by law and not
adverse to the Company, to elect which Payments shall be modified or reduced so that, using the
assumptions of the accounting firm referred to herein, no Payment shall be treated as an “excess
parachute payment.” If the Executive fails to identify which Payments shall be reduced as provided
herein within 10 days of the Company’s written request therefor, then the Company shall be entitled
to determine which Payments shall be modified or reduced such that no Payment shall be treated as
an “excess parachute payment.”

     (c) This Section 7.08 shall be interpreted so as to avoid the imposition of excise taxes on
the Executive under Section 4999 of the Code or the disallowance of a deduction to the Company
pursuant to Section 280G(a) of the Code with respect to amount payable, or to be provided, under
this Agreement. Notwithstanding the foregoing, in no event will any of the provisions of this
Section 7.08 create, without the consent of the Executive, an obligation on the part of the
Executive to refund any amount to the Company following payment of such amount.

     Section 8. Proprietary Information; Inventions in the Field.

     Section 8.01. Proprietary Information. In the course of service to the Company, the
Executive will have access to confidential specifications, know-how, strategic or technical data,
marketing research data, product research and development data, manufacturing techniques,

6

 

confidential customer lists, sources of supply and trade secrets, all of which are
confidential and may be proprietary and are owned or used by the Company, or any of its
subsidiaries or affiliates. Such information shall hereinafter be called “Proprietary Information”
and shall include any and all items enumerated in the preceding sentence and coming within the
scope of the business of the Company or any of its subsidiaries or affiliates as to which the
Executive may have access, whether conceived or developed by others or by the Executive alone or
with others during the period of service to the Company, whether or not conceived or developed
during regular working hours. Proprietary Information shall not include any records, data or
information which are in the public domain during or after the period of service by the Executive
provided the same are not in the public domain as a consequence of disclosure directly or
indirectly by the Executive in violation of this Agreement.

     Section 8.02. Fiduciary Obligations. The Executive agrees that Proprietary
Information is of critical importance to the Company and a violation of this Section 8.02 and
Section 8.03 would seriously and irreparably impair and damage the Company’s business. The
Executive agrees that he shall keep all Proprietary Information in a fiduciary capacity for the
sole benefit of the Company.

     Section 8.03. Non-Use and Non-Disclosure. The Executive shall not during the Term or
at any time thereafter (a) disclose, directly or indirectly, any Proprietary Information to any
person other than the Company or Executives thereof at the time of such disclosure who, in the
reasonable judgment of the Executive, need to know such Proprietary Information or such other
persons to whom the Executive has been specifically instructed to make disclosure by the Company
and in all such cases only to the extent required in the course of the Executive’s service to the
Company or (b) use any Proprietary Information, directly or indirectly, for his own benefit or for
the benefit of any other person or entity. At the termination of his employment, the Executive
shall deliver to the Company all notes, letters, documents and records which may contain
Proprietary Information which are then in his possession or control and shall destroy any and all
copies and summaries thereof.

     Section 8.04. Assignment of Inventions. The Executive agrees to assign and transfer
to the Company or its designee, without any separate remuneration or compensation, his entire
right, title and interest in and to all Inventions in the Field (as defined below), together with
all United States and foreign rights with respect thereto, and at the Company’s expense to execute
and deliver all appropriate patent and copyright applications for securing United States and
foreign patents and copyrights on Inventions in the Field and to perform all lawful acts, including
giving testimony, and to execute and deliver all such instruments that may be necessary or proper
to vest all such Inventions in the Field and patents and copyrights with respect thereto in the
Company, and to assist the Company in the prosecution or defense of any interference which may be
declared involving any of said patent applications, patents, copyright applications or copyrights.
For the purposes of this Agreement, the words “Inventions in the Field” shall include any
discovery, process, design, development, improvement, application, technique, or invention, whether
patentable or copyrightable or not and whether reduced to practice or not, conceived or made by the
Executive, individually or jointly with others (whether on or off the Company’s premises or during
or after normal working hours) while in the employ of the Company, and which was or is directly or
indirectly related to the Business of the Company or

7

 

any of its subsidiaries, or which resulted or results from any work performed by any Executive
or agent thereof during the Term.

     Section 8.05 Return of Documents. All notes, letters, documents, records, tapes and
other media of every kind and description relating to the business, present or otherwise, of the
Company or its affiliates and any copies, in whole or in part, thereof (collectively, the
“Documents”), whether or not prepared by the Executive, shall be the sole and exclusive property of
the Company. The Executive shall safeguard all Documents and shall surrender to the Company at the
time his employment terminates, or at such earlier time or times as the Company or its designee may
specify, all Documents then in the Executive’s possession or control.

     Section 9. Restrictions on Activities of the Executive

     Section 9.01. Acknowledgments. The Executive and Company agree that he is being
employed hereunder in a key capacity with the Company and that the Company is engaged in a highly
competitive business and that the success of the Company’s business in the marketplace depends upon
its goodwill and reputation for quality and dependability. The Executive and Company further agree
that reasonable limits may be placed on his ability to compete against the Company as provided
herein to the extent that they protect and preserve the legitimate business interests and good will
of the Company.

     Section 9.02. General Restrictions.

          (a) During the Term and for the Non-Competition Period (as defined below), and during any time
the Executive is receiving severance payments under this Agreement, the Executive will not
(anywhere in the United States where the Company or any of its subsidiaries then conducts business)
engage or participate in, directly or indirectly, as principal, agent, employee, employer,
consultant, investor or partner, or assist in the management of, or provide advisory or other
services to, or own any stock or any other ownership interest in, or make any financial investment
in, any business which is Competitive with the Company (as defined below); provided that the
ownership of not more than 2% of the outstanding securities of any class listed on an exchange or
regularly traded in the over-the-counter market shall not constitute a violation of this Section
9.02. For purposes of this Agreement, a business shall be considered “Competitive with the
Company” only if it offers products or provides marketing, distribution, administration or related
products and services for financial institutions or engages in any other business the Company
and/or its subsidiaries are engaged in or have taken steps to be engaged in prior to Executive’s
termination of employment.

          (b) For purposes of this Agreement, the “Non-Competition Period” shall mean the longer of (i)
the Term and (ii) a period of twenty-four (24) consecutive months after the Executive’s employment
terminates and (iii) the period during which the Company is paying any amounts to the Executive
hereunder or otherwise providing benefits to the Executive.

     Section 9.03. Executives, Customers and Suppliers.

          (a) During the Term and the Non-Solicitation Period (as defined below), the Executive will not
solicit, or attempt to solicit, any officer, director, consultant or Executive of

8

 

the Company or any of its subsidiaries or affiliates to leave his or her engagement with the
Company or such subsidiary or affiliate nor will he call upon, solicit, divert or attempt to
solicit or divert from the Company or any of its affiliates or subsidiaries any of their customers,
agents or suppliers, or potential customers, agents or suppliers; provided, however, that nothing
in this Section 9.03 shall be deemed to prohibit the Executive from calling upon or soliciting a
customer, agent or supplier during the Non-Solicitation Period if such action relates solely to a
business which is not Competitive with the Company; and provided, further, however, that nothing in
this Section 9.03 shall be deemed to prohibit the Executive (i) from soliciting or hiring any
employee of the Company or any of its subsidiaries or affiliates, if such employee is a member of
the Executive’s immediate family; and (ii) from placing advertisements in newspapers or other media
of general circulation advertising employment opportunities and hiring persons who respond to such
advertisements, provided that they were not otherwise solicited by the Executive in violation of
this section.

          (b) For purposes of this Agreement, the “Non-Solicitation Period” shall mean the longer of (i)
the Term and (ii) a period of twenty-four (24) consecutive months after the Executive’s employment
terminates and (iii) the period during which the Company is paying any amounts to the Executive
hereunder or otherwise providing benefits to the Executive.

     Section 9.04. THE EXECUTIVE REPRESENTS AND WARRANTS THAT THE KNOWLEDGE, SKILLS AND ABILITIES
HE OR SHE POSSESSES AT THE TIME OF COMMENCEMENT OF EMPLOYMENT HEREUNDER ARE SUFFICIENT TO PERMIT
HIM OR HER, IN THE EVENT OF TERMINATION OF HIS OR HER EMPLOYMENT HEREUNDER, TO EARN A LIVELIHOOD
SATISFACTORY TO HIMSELF WITHOUT VIOLATING ANY PROVISION OF SECTION 8 OR 9 HEREOF, FOR EXAMPLE, BY
USING SUCH KNOWLEDGE, SKILLS AND ABILITIES, OR SOME OF THEM, IN THE SERVICE OF A NON-COMPETITOR.

     Section 10. Remedies. It is specifically understood and agreed that any breach of
the provisions of Section 8 or 9 of this Agreement is likely to result in irreparable injury to the
Company and that the remedy at law alone will be an inadequate remedy for such breach, and that in
addition to any other remedy it may have, the Company shall be entitled to enforce the specific
performance of this Agreement by the Executive and to seek both temporary and permanent injunctive
relief (to the extent permitted by law) without bond and without liability should such relief be
denied, modified or violated. Neither the right to obtain such relief nor the obtaining of such
relief shall be exclusive or preclude the Company from any other remedy.

     Section 11. Severable Provisions. The provisions of this Agreement are severable and
the invalidity of any one or more provisions shall not affect the validity of any other provision.
In the event that a court of competent jurisdiction shall determine that any provision of this
Agreement or the application thereof is unenforceable in whole or in part because of the duration
or scope thereof, the parties hereto agree that said court in making such determination shall have
the power to reduce the duration and scope of such provision to the extent necessary to make it
enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full
extent permitted by law.

9

 

     Section 12. Notices. All notices hereunder, to be effective, shall be in writing and
shall be delivered by hand or mailed by certified mail, postage and fees prepaid, as follows:

	 	 	 	 	 
	 

	 	If to the Company:
	 	Fortegra Financial Corporation
	 

	 	 	 	100 West Bay Street
	 

	 	 	 	PO Box 44130
	 

	 	 	 	Jacksonville, Florida 32231-4130
	 

	 	 	 	Facsimile No: (904) 354-4525
	 

	 	 	 	Attention: Chief Executive Officer
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Fortegra Financial Corporation
	 

	 	 	 	100 West Bay Street
	 

	 	 	 	PO Box 44130
	 

	 	 	 	Jacksonville, Florida 32231-4130
	 

	 	 	 	Facsimile No: (904) 354-4525
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	If to the Executive:
	 	Michael Vrban
	 

	 	 	 	221 Clearlake Drive
	 

	 	 	 	Ponte Vedra Beach, FL 32082

or to such other address as a party may notify the other pursuant to a notice given in accordance
with this Section 12.

     Section 13. Miscellaneous.

     Section 13.01. Amendment. This Agreement constitutes the entire Agreement between the
parties hereto with regard to the subject matter hereof, superseding all prior understandings and
agreements, whether written or oral. This Agreement may not be amended or revised except by a
writing signed by the parties.

     Section 13.02. Assignment and Transfer. The provisions of this Agreement shall be
binding on and shall inure to the benefit of any such successor in interest to the Company.
Neither this Agreement nor any of the rights, duties or obligations of the Executive shall be
assignable by the Executive, nor shall any of the payments required or permitted to be made to the
Executive by this Agreement be encumbered, transferred or in any way anticipated, except as
required by applicable laws. This Agreement shall not be terminated by the merger or consolidation
of the Company with any corporate or other entity or by the transfer of all or substantially all of
the assets of the Company to any other person, corporation, firm or entity. However, all rights of
the Executive under this Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, estates, executors, administrators, heirs and
beneficiaries. All amounts payable to the Executive hereunder shall be paid, in the event of the
Executive’s death, to the Executive’s estate, heirs or representatives.

     Section 13.04 Waiver of Breach. A waiver by the Company or the Executive of any
breach of any provision of this Agreement by the other party shall not operate or be construed as a
waiver of any other or subsequent breach by the other party.

10

 

     Section 13.05. Entire Agreement. This Agreement contains the entire agreement of the
parties with respect to the subject matter hereof and supersedes all prior agreements among the
parties.

     Section 13.06 Withholding. The Company shall be entitled to withhold from any amounts
to be paid or benefits provided to the Executive hereunder any federal, state, local, or foreign
withholding or other taxes or charges which it is from time to time required to withhold. The
Company shall be entitled to rely on an opinion of counsel if any question as to the amount or
requirement of any such withholding shall arise.

     Section 13.07. Captions. Captions herein have been inserted solely for convenience of
reference and in no way define, limit or describe the scope or substance of any provision of this
Agreement.

     Section 13.08. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and shall have the same effect as if the
signatures hereto and thereto were on the same instrument.

     Section 13.09. Governing Law. This Agreement shall be construed under and enforced in
accordance with the internal laws of the State of Florida.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as a sealed
instrument as of the day and year first above written.

	 	 	 	 	 
	 	 	FORTEGRA FINANCIAL CORPORATION

 	 
	 	 	By:  	/s/
Richard S. Kahlbaugh	 
	 	 	Name:  	Richard S. Kahlbaugh	 
	 	 	Title:  	 	 
	 
	 	 	EXECUTIVE

 	 
	 	 	/s/ Michael Vrban
 	 
	 	 	Michael Vrban 	 
	 	 	 
	 

11

 

Execution Version

Schedule A

Annual Parameters

Base Salary will be set at $215,000.00 per Year for the Term and as defined in Section 4(a) of the
EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT attached hereto.

Auto Allowance will be set at $1,000.00 per Month for the Term and as defined in section 5.04 of
the EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT attached hereto.

Annual Bonus will be determined as provided below for the Term and as defined in Section 4(b) of
the EXECUTIVE EMPLOYMENT AND NON-COMPETITION AGREEMENT attached hereto. The Executive shall be
entitled to an Annual Bonus based on the achievement of certain EBITDA targets by the Company, as
set forth below. The EBITDA targets will be adjusted each year of the Term as recommended and
approved by the Chief Executive Officer of the Company and as approved by the Board of Directors.

The EBITDA target for the fiscal year ending December 31, 2009 (the “Target EBITDA”) is $28.0
million.

	 	 	 
	 	 	Bonus Available as Percent of
	Percent of Target EBITA	 	Base Salary
	Less than 100%
	 	0%
	100%
	 	36.5%
	125%
	 	70.0%
	150%
	 	98.0%

Any level of Company performance which falls between two specific points set forth in the above
charts under “Percent of Target EBITDA” shall entitle Executive to receive a percentage of Base
Salary determined on a straight-line basis between two such points.

Notwithstanding the foregoing, if actual EBITDA in any fiscal year is not equal to or greater than
the amount specified for such fiscal year, then no Annual Bonus shall be paid to the Executive for
that fiscal year.

For purposes of calculating any Annual Bonus, EBITDA for any fiscal year is defined as consolidated
net income of the Company after adding back interest expense, depreciation, income tax expense and
amortization and, for any fiscal year, after taking into account any bonuses paid to any executive
of the Company, including the Annual Bonus. The Executive shall only be eligible to receive the
Annual Bonus if he is employed by the Company on December 31 of the year for which the Annual Bonus
is to be paid. For the sake of clarity, EBITDA will fully take into account and be burdened by all
bonuses paid to any executive of the Company, including the Annual Bonus.

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