Document:

exv10w19

Exhibit 10.19

IRREVOCABLE PROXY

     The undersigned, on behalf of SunCoast Holdings, Inc., a Delaware corporation (“SH”) and sole
shareholder of Brandywine Insurance Holdings, Inc., a Delaware corporation (“BIH”) and Patriot Risk
Management, Inc., a Delaware corporation (“PRM”, and collectively with BIH, the “Companies”),
pursuant to and subject to Brooke Credit Corporation, a Kansas corporation (“BCC”) securing a loan
to SH, BIH and Patriot Risk Services, Inc., a Delaware corporation (“PRS”), which loan is to be
used in part to capitalize Guarantee Insurance Company, a South Carolina domiciled insurance
company, hereby nominates and appoints BCC as its true and lawful attorney and proxy (the
"Appointee”), with power of substitution, to vote upon all of the shares of the undersigned in the
Companies standing in the name of SH as of the date hereof or hereafter (the “Shares”) at any
meetings of the shareholders of the Companies upon the uncured default of SH, BIH and PRS on the
aforementioned loan and subject to the terms and conditions of the Stock Pledge Agreement by and
between SH and BCC of even date herewith. The Appointee is to have all of the powers the
undersigned would possess if present personally or otherwise duly represented at any such meetings.
In addition, this Irrevocable Proxy entitles the Appointee to also execute any and all consents of
shareholders of the Companies executed in lieu of the holding of any such shareholder meetings.

     The undersigned hereby affirms that this Irrevocable Proxy is coupled with an interest
sufficient under the laws of the State of Delaware to support an irrevocable proxy. SH hereby
ratifies and confirms all that the Appointee of this Irrevocable Proxy may lawfully do or cause to
be done by virtue of this Irrevocable Proxy. SH acknowledges and agrees that the irrevocable proxy
granted to the Appointee by this Irrevocable Proxy shall not terminate by operation of law, whether
by bankruptcy, insolvency or the occurrence of any other event.

     SH further acknowledges and agrees that this Irrevocable Proxy relates to all voting rights
with respect to the Shares and does not relate to any other rights incident to the ownership of the
Shares (including, without limitation, the right of the undersigned to receive dividends and the
right to receive the consideration from any sale of the Shares).

     This Irrevocable Proxy is governed by the laws of the State of Delaware, without giving effect
to any conflict of laws principles therein.

     THIS IRREVOCABLE PROXY WILL REMAIN IN FULL FORCE AND EFFECT AND BE ENFORCEABLE AGAINST ANY
DONEE, TRANSFEREE OR ASSIGNEE OF THE SHARES UNTIL THE INTEREST WITH WHICH IT IS COUPLED IS
EXTINGUISHED.

Dated:exv10w20

Exhibit 10.20

GUARANTY

	 	 	 
	Overland Park

	, 	Kansas
	(City)

	 	(State)

March 30, 2006

     For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and to induce Brooke Credit Corporation (herein, with its participants, successors
and assigns, called “Lender”), at its option, at any time or from time to time to make loans or
extend other accommodations to or for the account of SunCoast
Holdings Inc., Brandywine Insurance
Holdings, Inc., and Patriot Risk Services, Inc. (herein called “Borrower”) or to engage in any other
transactions with Borrower, the Undersigned hereby absolutely and unconditionally guarantees to
Lender the full and prompt payment when due, whether at maturity or earlier by reason of
acceleration or otherwise, of the debts, liabilities and obligations described as follows:

	 	A.	 	If this o is checked, the Undersigned guarantees to Lender the payment and
performance of the debt, liability or obligation of Borrower to Lender evidenced by or
arising out of the following:
______________________________________________
and any extensions, renewals
or replacements thereof (hereinafter referred to as the “Indebtedness”).
	 
	 	B.	 	If this þ is checked, the Undersigned guarantees to Lender the payment and
performance of each and every debt, liability and obligation of every type and
description which Borrower may now or at any time hereafter owe to Lender (whether such
debt, liability or obligation now exists or is hereafter created or incurred, and whether
it is or may be direct or indirect, due or to become due, absolute or contingent, primary
or secondary, liquidated or unliquidated, or joint, several, or joint and several; all
such debts, liabilities and obligations being hereinafter collectively referred to as the
“Indebtedness”). Without limitation, this guaranty includes the following described
debt(s): Commercial Loan Agreement and Commercial Promissory Note of even date herewith
by and among Borrowers and Lender.

     The Undersigned further acknowledges and agrees with Lender that:

     1. No act or thing need occur to establish the liability of the Undersigned hereunder, and no
act or thing, except full payment and discharge of all indebtedness, shall in any way exonerate the
Undersigned or modify, reduce, limit or release the liability of the Undersigned hereunder.

     2. This is an absolute, unconditional and continuing guaranty of payment of the Indebtedness
and shall continue to be in force and be binding upon the Undersigned, whether or not all
Indebtedness is paid in full, until this guaranty is revoked by written notice actually received by
the Lender, and such revocation shall not be effective as to Indebtedness existing or committed for
at the time of actual receipt of such notice by the Lender, or as to any renewals, extensions and
refinancings thereof. If there be more than one Undersigned, such revocation shall be effective
only as to the one so revoking. The death or incompetence of the Undersigned shall not revoke this
guaranty, except upon actual receipt of written notice thereof by Lender and then only as to the
decedent or the Incompetent and only prospectively, as to future transactions, as herein set forth.

     3. If the Undersigned shall be dissolved, shall die, or shall be or become insolvent (however
defined) or revoke this guaranty, then the Lender shall have the right to declare immediately due
and payable, and the Undersigned will forthwith pay to the Lender, the full amount of all
Indebtedness, whether due and payable or unmatured. If the Undersigned voluntarily commences or
there is commenced involuntarily against the Undersigned a case under the United States Bankruptcy
Code, the full amount of all Indebtedness, whether due and payable or unmatured, shall be
immediately due and payable without demand or notice thereof.

     4. The liability of the Undersigned hereunder shall be limited to a principal amount of $
unlimited (if unlimited or if no amount is stated, the Undersigned shall be liable for all
Indebtedness, without any limitation as to amount), plus accrued interest thereon and all
attorneys’ fees, collection costs and enforcement expenses referable thereto. Indebtedness may be
created and continued in any amount, whether or not in excess of such principal
amount, without affecting or impairing the liability of the Undersigned hereunder. The Lender may
apply any sums received by or available to Lender on account of the Indebtedness from Borrower or
any other person (except the Undersigned), from their properties, out of any collateral security or
from any other source to payment of the excess. Such application of receipts shall not reduce,
affect or impair the liability of the Undersigned hereunder. If the liability of the Undersigned is
limited to a stated amount pursuant to this paragraph 4, any payment made by the Undersigned under
this guaranty shall be effective to reduce or discharge such liability only if accompanied by a
written transmittal document, received by the Lender, advising the Lender that such payment is made
under this guaranty for such purpose.

     5. The Undersigned will pay or reimburse Lender for all costs and expenses (including
reasonable attorneys’ fees and legal expenses) incurred by Lender in connection with the
protection, defense or enforcement of this guaranty in any litigation or bankruptcy or insolvency
proceedings.

     This guaranty includes the additional provisions on page 2, all of which are made a part
hereof.

     This guaranty is þ unsecured; o secured by a mortgage or security agreement
dated ________________;
o secured by ______________________________________________________________.

     IN WITNESS WHEREOF, this guaranty has been duly executed by the Undersigned the day and year
first above written.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Steven M. Mariano, Individually 	 
	 	 	 
	 	 	 
	 	“Undersigned” shall refer to all persons who sign this guaranty, severally and
jointly. 	 
	 

			
	 	 	 
	 © Bankers Systems, Inc., St. Cloud, MN 56301
FORM M-24D 5/20/2002 (For Corporate Guarantor use M-250)
	 	(page 1 of 2)

 

 

ADDITIONAL PROVISIONS

     6. Whether
or not any existing relationship between the Undersigned and Borrower has been
changed or ended and whether or not this guaranty has been revoked, Lender may, but shall not be
obligated to, enter into transactions resulting in the creation or continuance of Indebtedness,
without any consent or approval by the Undersigned and without any notice to the Undersigned. The
liability of the Undersigned shall not be affected or impaired by any of the following acts or
things (which Lender is expressly authorized to do, omit or suffer from time to time, both before
and after revocation of this guaranty, without notice to or approval by the Undersigned): (i) any
acceptance of collateral security, guarantors, accommodation parries or sureties for any or all
indebtedness; (ii) any one or more extensions or renewals of Indebtedness (whether or not for
longer than the original period) or any modification of the interest rates, maturities or other
contractual terms applicable to any Indebtedness; (iii) any waiver, adjustment, forbearance,
compromise or indulgence granted to Borrower, any delay or lack of diligence in the enforcement of
Indebtedness, or any failure to institute proceedings, file a claim, give any required notices or
otherwise protect any Indebtedness; (iv) any full or partial release of, settlement with, or
agreement not to sue, Borrower or any other guarantor or other person liable in respect of any
Indebtedness; (v) any discharge of any evidence of Indebtedness or the acceptance of any instrument
in renewal thereof or substitution therefor; (vi) any failure to obtain collateral security
(including rights of setoff) for Indebtedness, or to see to the
proper or sufficient creation and
perfection thereof, or to establish the priority thereof, or to protect, insure, or enforce any
collateral security; or any release, modification, substitution, discharge, impairment,
deterioration, waste, or loss of any collateral security; (vii) any foreclosure or enforcement of
any collateral security; (viii) any transfer of any Indebtedness or any evidence thereof; (ix) any
order of application of any payments or credits upon Indebtedness; (x) any election by the Lender
under §1111(b)(2) of the United States Bankruptcy Code.

     7. The Undersigned waives any and all defenses, claims and discharges of Borrower, or any
other obligor, pertaining to Indebtedness, except the defense of discharge by payment in full.
Without limiting the generality of the foregoing, the Undersigned will not assert, plead or enforce
against Lender any defense of waiver, release, statute of limitations, res judicata, statute of
frauds, fraud, incapacity, minority, usury, illegality or unenforceability which may be available
to Borrower or any other person liable in respect of any Indebtedness, or any setoff available
against Lender to Borrower or any such other person, whether or not an account of a related
transaction. The Undersigned expressly agrees that the Undersigned shall be and remain liable, to
the fullest extent permitted by applicable law, for any deficiency remaining after foreclosure of
any mortgage or security interest securing Indebtedness, whether or not the liability of Borrower
or any other obligor for such deficiency is discharged pursuant to statute or judicial decision.
The undersigned shall remain obligated, to the fullest extent permitted by law, to pay such amounts
as though the Borrower’s obligations had not been discharged.

     8. The Undersigned further agrees that the Undersigned shall be and remain obligated to pay
Indebtedness even though any other person obligated to pay Indebtedness, including Borrower, has
such obligation discharged in bankruptcy or otherwise discharged by law. “Indebtedness” shall
include post-bankruptcy petition interest and attorneys’ fees and any other amounts which Borrower
is discharged from paying or which do not otherwise accrue to Indebtedness due to Borrower’s
discharge, and the Undersigned shall remain obligated to pay such amounts as though Borrower’s
obligations had not been discharged.

     9. If
any payment applied by Lender to Indebtedness is thereafter set aside, recovered,
rescinded or required to be returned for any reason (including, without limitation, the bankruptcy,
insolvency or reorganization of Borrower or any other obligor), the Indebtedness to which such
payment was applied shall for the purposes of this guaranty be deemed to have continued in
existence, notwithstanding such application, and this guaranty shall be enforceable as to such
Indebtedness as fully as if such application had never been made.

     10. The Undersigned waives any claim, remedy or other right which the Undersigned may now have
or hereafter acquire against Borrower or any other person obligated to pay Indebtedness arising out
of the creation or performance of the Undersigned’s obligation under this guaranty, including,
without limitation, any right of subrogation, contribution, reimbursement, indemnification,
exoneration, and any right to participate in any claim or remedy the Undersigned may have against
the Borrower, collateral, or other party obligated for Borrower’s debts, whether or not such claim,
remedy or right arises in equity, or under contract, statute or common law.

     11. The Undersigned waives presentment, demand for payment, notice of dishonor or nonpayment,
and protest of any instrument evidencing Indebtedness. Lender shall not be required first to resort
for payment of the
Indebtedness to Borrower or other persons or their properties, or first to enforce, realize
upon or exhaust any collateral security for Indebtedness, before enforcing this guaranty.

     12. The liability of the Undersigned under this guaranty is in addition to and shall be
cumulative with all other liabilities of the Undersigned to Lender as guarantor or otherwise,
without any limitation as to amount, unless the instrument or agreement evidencing or creating such
other liability specifically provides to the contrary.

     13. This guaranty shall be enforceable against each person signing this guaranty, even if only
one person signs and regardless of any failure of other persons to sign this guaranty. If there be
more than one signer, all agreements and promises herein shall be construed to be, and are hereby
declared to be, joint and several in each of every particular and shall be fully binding upon and
enforceable against either, any or all the Undersigned. This guaranty shall be effective upon
delivery to Lender, without further act, condition or acceptance by Lender, shall be binding upon
the Undersigned and the heirs, representatives, successors and assigns of the Undersigned and shall
inure to the benefit of Lender and its participants, successors and assigns. Any invalidity or
unenforceability of any provision or application of this guaranty shall not affect other lawful
provisions and application hereof, and to this end the provisions of this guaranty are declared to
be severable. Except as authorized by the terms herein, this guaranty may not be waived, modified,
amended, terminated, released or otherwise changed except by a writing signed by the Undersigned
and Lender. This guaranty shall be governed by the laws of the State in which it is executed. The
Undersigned waives notice of Lender’s acceptance hereof.

			
	 	 	 
	
 ©
Bankers Systems, Inc., St. Cloud, MN 56301 FORM M-240 5/20/2002
(For Corporate Guarantor use M-250)
	 	(page 2 of 2)

 

 

ADDENDUM A TO GUARANTY

     This Addendum to Guaranty is made to and a part of the Guaranty, dated March 30, 2006 (the
“Guaranty”), given by Steven M. Mariano, Individually (“Guarantor”), to Brooke
Credit Corporation, a Kansas corporation (“Lender”).

     The Guaranty is amended to add the following new paragraphs 14 and 15:

14. Notwithstanding any other provision of this Guaranty, in the event Lender executes upon
this Guaranty, Lender will not seek to attach and waives its right to proceed against
Guarantor’s residential real property, household personal property, or personal automobile.
Furthermore, if and at such time as SunCoast Holdings, Inc., on a consolidated basis with any
and all subsidiary companies, increases its stockholders’ GAAP equity to $9,000,000, the terms
of his guaranty (including the limitation set forth in the first sentence of this paragraph
14) shall only apply in the event of fraud, willful misconduct, and/or material breach by
Borrower of any of the representations and warranties contained in the Commercial Loan
Agreement executed by Borrowers of even date herewith. Guarantor acknowledges and agrees that
nothing set forth in this paragraph shall be construed as a waiver by Lender of any financial
covenant or requirement set forth in any Loan Document as such is defined in the Commercial
Loan Agreement.

     IN WITNESS WHEREOF, the parties have executed and delivered this Addendum to Guaranty as of
the 30th of March, 2006.

	 	 	 	 	 
	GUARANTOR:

Steven M. Mariano 	LENDER:

BROOKE CREDIT

CORPORATION

a Kansas corporation

 	 
	
                  	By:  	
 	 
	 	 	Name:  	Michael S. Lowry
 	 
	 	 	Title:  	
President 	 

Brooke/SunCoast

Guaranty V1

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