Document:

hci-ex1034_7.htm

Exhibit 10.34

JOINDER, SECOND AMENDMENT TO CREDIT AGREEMENT AND MODIFICATION OF OTHER LOAN DOCUMENTS

 

THIS JOINDER, SECOND AMENDMENT TO CREDIT AGREEMENT AND MODIFICATION OF OTHER LOAN DOCUMENTS (this “Joinder”) is made effective as of December 31, 2020 (the “Amendment Effective Date”), by and among HCI GROUP, INC., a Florida corporation (“Borrower”), the Guarantors party hereto, and FIFTH THIRD BANK, NATIONAL ASSOCIATION (“Lender”).

 

BACKGROUND

 

A.Lender previously made available to Borrower a revolving line of credit loan (the “Loan”) in the principal amount of up to Sixty-Five Million and No/100 Dollars ($65,000,000.00), as evidenced by that certain Promissory Note dated December 5, 2018, in the original principal amount of $65,000,000.00, made by Borrower to the order of Lender (together with all renewals, amendments, modifications, increases and extensions thereof, the “Note”).  

 

B.The Note was issued pursuant to that certain Credit Agreement dated December 5, 2018 by and among Borrower, the Guarantors from time to time party thereto and Lender, as amended by that certain First Amendment to Credit Agreement dated February 28, 2019 (as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), and secured by, among other things, the security interests granted pursuant to that certain Security and Pledge Agreement dated December 5, 2018 by and among Borrower, the other obligors from time to time party thereto and Lender (as amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”). 

 

C.The parties desire to (i) join WESTVIEW HOLDINGS, LLC, a Florida limited liability company (“Joining Guarantor”) to the Credit Agreement, the Security Agreement and certain other documents entered into in connection therewith, (ii) release CYPRESS TECH DEVELOPMENT COMPANY, INC., a Florida corporation, EXZEO USA, INC., a Florida corporation, and TYPTAP MANAGEMENT COMPANY, a Florida corporation (collectively, the “Released Guarantors”) from liability in connection with the Loan and the Loan Documents, and (iii) make certain amendments to the Loan Documents as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Joinder, the parties mutually agree as follows:

 

1.Recitals; Defined Terms. The foregoing recitals are true and correct and are incorporated herein by this reference. Unless otherwise defined herein, all capitalized terms have the same meanings provided in the Credit Agreement.  The parties hereto acknowledge and agree that the references to December 5, 2019 in Recital A to the First Amendment to Credit Agreement dated February 28, 2019 (the “First Amendment”) are scrivener’s errors, and the correct date is December 5, 2018.  All references to December 5, 2019 in Recital A to the First Amendment are hereby replaced with December 5, 2018. 

 

THIS JOINDER WAS MADE, EXECUTED AND DELIVERED OUTSIDE THE STATE OF FLORIDA.

4819-7512-1107.5

 

 

2.Joinder. Joining Guarantor hereby (a) joins in and becomes an “Obligor” under the Security Agreement and (b) joins in and becomes a “Guarantor” under the Credit Agreement. All references to “Obligor” contained in the Security Agreement are hereby deemed for all purposes to also refer to and include Joining Guarantor and all references to “Guarantor” contained in the Credit Agreement are hereby deemed for all purposes to also refer to and include Joining Guarantor, and Joining Guarantor hereby agrees to comply with all of the terms and conditions of each Loan Document it is joining pursuant to this Joinder as if an original signatory thereto. In furtherance thereof, (i) Joining Guarantor agrees that it is, jointly and severally with the other Guarantors, liable to Lender under the Credit Agreement, and that it is, jointly and severally with the other Obligors, liable to Lender under the Security Agreement, and (ii) to secure the payment and performance of the Obligations, Joining Guarantor hereby grants to Lender a continuing security interest in all of its Collateral (as defined in the Security Agreement), whether now existing or at any time hereafter arising.

 

3.Financing Statement. Joining Guarantor hereby authorizes Lender to file a UCC Financing Statement naming Joining Guarantor as debtor and Lender as secured party with respect to its Collateral in such jurisdiction as determined by Lender to be appropriate to perfect the security interest granted by Joining Guarantor herein and in the Security Agreement.

 

4.Release.  Lender hereby agrees that (a) the Released Guarantors’ liability with respect to the Loan under the Loan Documents is hereby terminated and the Released Guarantors are released from any and all liability pursuant to the Loan Documents, (b) all security interests and other liens granted by the Released Guarantors to Lender pursuant to the Loan Documents are hereby released and terminated, and (c) the Loan Documents are hereby deemed amended to the extent necessary to reflect the releases and terminations provided in clauses (a) and (b); provided, however, the Loan Documents shall remain in full force and effect as to Borrower and any other Guarantors.  

  

5.Modifications to Credit Agreement.  

 

(a)The following definitions in Section 1.2 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“Advance Rates” shall have the meaning set forth in the Letter Agreement.

“Applicable Margin” shall have the meaning set forth in the Letter Agreement.

“LIBOR Rate” shall mean, as of any date of determination in accordance with this Agreement, the rate of interest rounded upwards, if necessary, to the next 1/8th of one percent (1%) and adjusted for reserves if Lender is required to maintain reserves with respect to relevant advances) fixed by ICE Benchmark Administration Limited (or any successor thereto, or replacement thereof, approved by Lender, each an “Alternate LIBOR Source”) at approximately 11:00 a.m., London, England time (or the relevant time established by ICE Benchmark Administration Limited, an Alternate LIBOR Source, or Lender, as applicable), two Business Days prior to such date of determination, relating to quotations for the one 

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month London InterBank Offered Rates on U.S. Dollar deposits, displayed by Bloomberg LP (or any successor thereto, or replacement thereof, as approved by Lender, each an “Approved Bloomberg Successor”), or if no longer displayed by Bloomberg LP (or any Approved Bloomberg Successor), such rate as shall be determined in good faith by Lender from such sources as it shall determine to be comparable to Bloomberg LP (or any Approved Bloomberg Successor), all as determined by Lender in accordance with this Agreement and Lender’s loan systems and procedures periodically in effect.  Notwithstanding anything to the contrary contained herein, in no event shall the LIBOR Rate be less than .25% as of any date (the “LIBOR Rate Minimum”); provided that, at any time during which a Rate Management Agreement with Lender is then in effect with respect to all or a portion of the Obligations, the LIBOR Rate Minimum shall be disregarded and no longer of any force and effect with respect to such portion of the Obligations subject to such Rate Management Agreement.  Each determination by Lender of the LIBOR Rate shall be binding and conclusive in the absence of manifest error.  

“Revolving Commitment Termination Date” shall mean the earliest of (i) December 31, 2023, (ii) the date on which the Revolving Commitment is terminated pursuant to Section 2.3 and (iii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise).

(b)The defined term “Unused Commitment Fee” is hereby deleted from Section 1.1 of the Credit Agreement in its entirety.

(c)The following new definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:   

“Capital” shall mean all interest-bearing Indebtedness plus Shareholders’ Equity.

“Debt-To-Capital Ratio” shall mean total Indebtedness divided by total Capital.

“Letter Agreement” shall mean that certain Letter Agreement between Borrower and Lender dated December 31, 2020.

“Shareholders’ Equity” shall mean total assets minus total liabilities.

“Tangible Net Worth” shall mean as of any applicable date, the consolidated total assets of Borrower and its Subsidiaries minus, without duplication, (i) the sum of any amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and development expenses except prepaid expenses, and (c) all reserves not already deducted from assets, and (ii) total liabilities.  

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“Interest Period” shall mean each period beginning on (and including) each LIBOR Adjustment Date and ending on (but excluding) the next LIBOR Adjustment Date;

(d)Section 2.5(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: Intentionally Deleted.

(e)Section 2.9 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

2.9   LIBOR Provisions.

	
 
	
(A)
	
Temporary Inability:  In the event, prior to commencement of any Interest Period relating to a LIBOR Rate Loan, Lender shall determine that (i) deposits in Dollars (in the applicable amounts) are not being offered to it in the London Interbank Offered Rate market for such Interest Period, (ii) by reason of circumstances affecting the London Interbank Offered Rate Market adequate and reasonable methods do not exist for ascertaining the LIBOR Rate, (iii) the LIBOR Rate as determined by Lender will not adequately and fairly reflect the cost to Lender of funding their LIBOR Rate Loans for such Interest Period, or (iv) the making or funding of LIBOR Rate Loans becomes impracticable; 
	
 

then, Lender shall promptly provide notice of such determination to Borrower (which shall be conclusive and binding on Borrower), and (x) any request for a LIBOR Rate Loan or for a conversion to or continuation of a LIBOR Rate Loan shall be automatically withdrawn and shall be deemed a request for a Prime Rate Loan, (y) each LIBOR Rate Loan will automatically, on the last day of the then current Interest Period relating thereto, become a Prime Rate Loan, and (z) the obligations of Lender to make LIBOR Rate Loans shall be suspended until Lender  determines that the circumstances giving rise to such suspension no longer exist, in which event Lender shall so notify Borrower.

	
 
	
(B)
	
Permanent Inability:  
	
 

	
 
	
(i)
	
In the event Lender shall determine (which determination shall be deemed presumptively correct absent manifest error) that:
	
 

	
 
	
(a)
	
the circumstances set forth in Section 2.9(A) have arisen and such circumstances are unlikely to be temporary;
	
 

	
 
	
(b)
	
a public statement or publication of information has been made (1) by or on behalf of the administrator of the LIBOR Rate; or by the regulatory supervisor for the administrator of the LIBOR Rate, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for the LIBOR Rate, a resolution authority with jurisdiction over the administrator for the 
	
 

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LIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the LIBOR Rate, stating that such administrator has ceased or will cease to provide the LIBOR Rate, permanently or indefinitely, provided that, at the time of the statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate, (2) by the administrator of the LIBOR Rate that it has invoked or will invoke, permanently or indefinitely, its insufficient submissions policy, or (3) by the regulatory supervisor for the administrator of the LIBOR Rate or any Governmental Authority having jurisdiction over Lender announcing that the LIBOR Rate is no longer representative or may no longer be used; 
	
 

	
 
	
(c)
	
a LIBOR Rate is not published by the administrator of the LIBOR Rate for five consecutive Business Days and such failure is not the result of a temporary moratorium, embargo or disruption declared by the administrator of the LIBOR Rate or by the regulatory supervisor for the administrator of the LIBOR Rate; or
	
 

	
 
	
(d)
	
a new index rate has become a widely-recognized replacement benchmark rate for the LIBOR Rate in newly originated or amended loans denominated in Dollars in the U.S. market;
	
 

then Lender may, in its sole discretion, amend this Agreement as described below to replace the LIBOR Rate with an alternative replacement index and to modify the applicable margins (the new index and margin together, the “Benchmark Replacement”), in each case giving due consideration to any evolving or then existing convention for similar US dollar denominated credit facilities, or any selection, endorsement or recommendation by a relevant governmental body with respect to such facilities.  Lender may also from time to time, in Lender’s sole discretion, make other related amendments (“Conforming Changes”), including but not limited to increasing or decreasing the “floor” applicable to the replacement index and/or Benchmark Replacement, to permit the administration thereof by Lender in an administratively and operationally practicable manner and in a manner substantially consistent with market practice and similarly situated counterparties with similar assets in similar facilities.

	
 
	
(ii)
	
Lender shall provide notice to Borrower of an amendment of this Agreement to reflect the Benchmark Replacement and Conforming Changes.  Notwithstanding anything to the contrary in this Agreement or the other Loan Documents (including, without limitation, Section 10.2), such amendment shall become effective without any further action or consent of any other party to this Agreement upon delivery of notice to Borrower.
	
 

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(iii)
	
For the avoidance of doubt, following the date when a determination is made pursuant to Section (B)(i), above, and until a Benchmark Replacement has been selected and implemented in accordance with the terms and conditions of Section (B)(i) and (ii), at Lender’s election, all loans shall accrue interest as Prime Rate Loans, and the Interest Rate shall be based on the Prime Rate.  
	
 

	
 
	
(C)
	
Subject to any Conforming Changes, if at any time the replacement index is less than .25% for purposes of this Agreement; provided, however, even if the replacement index is greater than zero, if due to a negative margin the Benchmark Replacement would be zero, the Benchmark Replacement shall be deemed to be .25%.
	
 

	
 
	
(D)
	
In the event that circumstances similar to those set out in paragraph (B)(i)(a)-(d) occur in relation to an index selected to replace the LIBOR Rate (or another index previously selected pursuant to this provision) or if Lender determines a replacement index is administratively or operationally impracticable, the terms governing replacement of the LIBOR Rate set forth in paragraphs (B) and (C) shall govern replacement of the replacement index.
	
 

(f)The introductory sentence of Section 5.1 of the Credit Agreement is hereby amended and restated to read as follows:

Section 5.1.Financial Statements and Other Information.  Deliver to Lender, in form and substance reasonably acceptable to Lender:

(g)Section 5.9 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

Section 5.9Use of Proceeds.  Use the proceeds of the Revolving Loan solely to provide financing for general corporate purposes, including acquiring investment assets, share buybacks and working capital. Without Lender’s prior written consent, the Revolving Loan proceeds may not be used (i) for an Acquisition or (ii) to meet any statutory reserve requirements for payments of claims for the purchase of insurance policies.

(h)Section 5.11(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

	
 
	
(d)
	
Real Property.Cause all Unencumbered Real Estate that is Collateral and all Real Property acquired with proceeds of the Revolving Loan to be subject at all times to a valid and, subject to any filing and/or recording referred to herein, enforceable Lien in favor of Lender on, and security interest in, real property that is prior and superior in right to any other Lien in favor of Lender to secure the Obligations as required by the Collateral Documents 
	
 

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(subject to Liens permitted by Section 7.2) and, in connection with the foregoing, deliver to Lender such documentation as Lender may reasonably request including filings and deliveries necessary to perfect such Liens, Organization Documents, resolutions, Real Property Security Documents and favorable opinions of counsel to such Person, all in form, content and scope reasonably satisfactory to Lender.
	
 

(i)Section 6.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:  

Section 6.1Minimum Tangible Net Worth.  Permit Borrower’s Minimum Tangible Net Worth as of the end of any Fiscal Quarter, commencing with the Fiscal Quarter ending December 31, 2020, to be less than $134,541,000.00 plus 50% of aggregate quarterly net income (determined on a consolidated basis without duplication in accordance with GAAP and for which purpose any net loss shall be deemed to be a net income of zero) of Borrower and its Subsidiaries for the Fiscal Quarter then ending.

(j)Section 6.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 6.2Debt-To-Capital Ratio.  Permit Borrower’s Debt-To-Capital Ratio to be greater than 55% at the end of the Fiscal Quarter ending December 31, 2020 or at the end of any Fiscal Quarter thereafter.

 

(k)Section 6.3 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 6.3Authorized Control Level Risk Based Capital Ratio.  Permit the Authorized Control Level Risk Based Capital Ratio of HCPCIC to be less than 300% at the end of the Fiscal Year ending December 31, 2020 or at the end of any other Fiscal Year thereafter.

 

(l)Section 10.4 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

	
 
	
10.4.
	
Assignments; Participations.
	
 

 

(a)Assignments.  Without obtaining any consent of any of the Loan Parties, Lender (and any subsequent assignee of Lender) may (i) transfer and assign all or any of its rights or delegate any or all of its duties under this Agreement and/or the other Loan Documents, or (ii) grant participations in the Advances to Participants in accordance with Section 10.4(b).  Lender may, without obtaining any consent of any of the Loan Parties, disclose to all prospective and actual assignees and Participants all 

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financial, business and other information about the Loan Parties which Lender may possess at any time.  For the avoidance of doubt, Lender may, without obtaining any consent of any of the Loan Parties, at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided, that no such pledge or assignment shall release Lender from any of its obligations hereunder or substitute any such pledgee or assignee for Lender as a party hereto.

 

(b)Participations.  Lender may at any time, without the consent of, or notice to, Borrower, sell to one or more Persons participating interests in its Advances, commitments or other interests hereunder (any such Person, a "Participant").  In the event of a sale by Lender of a participating interest to a Participant, (i)  Lender's obligations hereunder shall remain unchanged for all purposes, (ii) Borrower shall continue to deal solely and directly with Lender in connection with Lender's rights and obligations hereunder, and (iii) all amounts payable by Borrower shall be determined as if Lender had not sold such participation and shall be paid directly to Lender, provided, however, notwithstanding the foregoing, Borrower hereby agrees that each Participant shall be entitled to the benefits of Section 2.5(c); provided, further, a Participant shall not be entitled to receive any greater payment under Section 2.5(c), with respect to any participation, than Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a change in Law, regulation ruling, treaty or other action or doctrine of a Governmental Authority that occurs after the date the Participant acquired the applicable participation.  Borrower agrees that if amounts outstanding under this Agreement are due and payable (as a result of acceleration or otherwise), each Participant shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement and with respect to any Letter of Credit to the same extent as if the amount of its participating interest were owing directly to it as Lender under this Agreement.  If Lender sells a participation to a Participant as provided under this Section 10.4(b), it shall, acting solely for this purpose as a non-fiduciary agent of Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Advances or other obligations under the Loan Documents (the "Participant Register"); provided, that Lender shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form 

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under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive and binding absent manifest error, and Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, Lender shall have no responsibility for maintaining a Participant Register.

 

(c)Loan Party Assignments.  None of the Loan Parties may assign, delegate or otherwise transfer any of their rights or other obligations hereunder or under any other Loan Document without the prior written consent of Lender.

 

6.Notice Information.  All references in the Credit Agreement and the other Loan Documents to the notice addresses for Lender are hereby amended to read as follows:

Fifth Third Bank, National Association 

201 East Kennedy Blvd., Suite 1800

Tampa, Florida 33602

Attn: David Austin, Senior Vice President

Email: david.austin@53.com

 

With a copy to:

 

Fifth Third Bank, National Association

222 South Riverside Plaza

Chicago, Illinois 60606

Attn: Dave Meier

Email: david.meier@53.com

 

And a copy to:

 

Bradley Arant Boult Cummings LLP

100 N. Tampa Street, Suite 2200

Tampa, Florida 33602

Attn: Stephanie Kane

Email: skane@bradley.com

 

7.Westview Survey.  On the Amendment Effective Date, Joining Guarantor has executed and delivered to Lender Real Property Security Documents encumbering certain real property located at 402 N. Reo Street, Tampa, Florida (the “Westview Property”).  Within thirty (30) days after the Amendment Effective Date, Borrower will deliver to Lender a final ALTA/NSPS survey in form and substance satisfactory to Lender.   

 

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8.Representations and Warranties.  Borrower and Guarantors hereby represent, covenant and warrant to Lender as follows:

(a)The representations and warranties in the Loan Documents are true and correct in all material respects as of the date hereof.

(b)There is currently no Default or Event of Default under the Loan Documents, and none of Borrower or Guarantors have knowledge of any event or circumstance that with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Loan Documents.

(c)The Loan Documents are in full force and effect and, following the execution and delivery of this Joinder, the Loan Documents continue to be the legal, valid and binding obligations of Borrower and Guarantors, enforceable in accordance with their respective terms, subject to limitations imposed by bankruptcy, insolvency, other debtor relief laws and general principles of equity.

(d)There has been no material adverse change in the financial condition of Borrower, Guarantors or any other party whose financial statement has been delivered to Lender in connection with the Loan from the date of the most recent financial statement received by Lender.

(e)As of the date hereof, none of Borrower or any of the Guarantors has any claims, counterclaims, defenses or set-offs with respect to the Loan or the Loan Documents, as modified herein.

(f)Borrower and each Guarantor validly exists under the laws of their respective State of formation or organization and has the requisite power and authority to execute and deliver this Joinder and to perform the Loan Documents, as modified herein.  The execution and delivery of this Joinder by Borrower and Guarantors and the performance by Borrower and Guarantors of the Loan Documents, as modified herein, have been duly authorized by all requisite action by or on behalf of Borrower and Guarantors.  This Joinder has been duly executed and delivered on behalf of Borrower and Guarantors.

9.Reaffirmation.  Borrower and each Guarantor (i) acknowledges and consents to all of the terms and conditions of this Joinder, (ii) agrees that this Joinder and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents or any certificates, documents, agreements and instruments executed in connection therewith, (iii) affirms all of its obligations under the Loan Documents, (iv) agrees that this Joinder shall in no manner impair or otherwise adversely affect any of the liens granted in or pursuant to the Loan Documents and (v) affirms that each of the liens granted in or pursuant to the Loan Documents are valid and subsisting.

10.Loan Fees and Expenses.  As a condition precedent to Lender's agreement to enter into this Joinder, Borrower hereby agrees to pay Lender on the Amendment Effective Date all reasonable out-of-pocket costs and expenses incurred by Lender in connection with this Joinder, including, without limitation, reasonable attorneys' fees and expenses.  

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11.Release of Claims.  Borrower, Guarantors, Released Guarantors and any other obligors, on behalf of themselves and their respective successors and assigns (collectively and individually, “Borrower Parties”), hereby fully, finally and completely RELEASE AND FOREVER DISCHARGE  Lender and its successors, assigns, affiliates, subsidiaries, parents, officers, shareholders, directors, employees, servicers, attorneys, agents and properties, past, present and future, and their respective heirs, successors and assigns (collectively and individually, “Lender Parties”), of and from any and all claims, controversies, disputes, liabilities, obligations, demands, damages, debts, liens, actions and causes of action of any and every nature whatsoever, known or unknown, whether at law, by statute or in equity, in contract or in tort, under state or federal jurisdiction, and whether or not the economic effects of such alleged matters arise or are discovered in the future, which Borrower Parties have as of the date of this Joinder or may claim to have against Lender Parties arising out of or with respect to any and all transactions relating to the Loan or the Loan Documents occurring on or before the date of this Joinder, including any loss, cost or damage of any kind or character arising out of or in any way connected with or in any way resulting from the acts, actions or omissions of Lender Parties occurring on or before the date of this Joinder.  The foregoing release is intended to be, and is, a full, complete and general release in favor of Lender Parties with respect to all claims, demands, actions, causes of action and other matters described therein, including specifically, without limitation, any claims, demands or causes of action based upon allegations of breach of fiduciary duty, breach of any alleged duty of fair dealing in good faith, economic coercion, usury, or any other theory, cause of action, occurrence, matter or thing which might result in liability upon Lender Parties arising or occurring on or before the date of this Joinder.  Borrower Parties understand and agree that the foregoing general release is in consideration for the agreements of Lender contained herein and that they will receive no further consideration for such release.

12.Further Assurances.  Borrower and Guarantors agree to cooperate, adjust, initial, re-execute and redeliver any and all documents including, but not limited to, any notes, loan documents, security agreements, financing statements, guarantees, deeds, affidavits and closing statements deemed necessary in the reasonable discretion of Lender to consummate or complete the transactions contemplated herein, to correct errors or to perfect Lender’s liens or security interests.

13.Ratification. Except as expressly modified hereby, the terms and conditions of the Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

14.Governing Law. This Joinder shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida without regard to the conflicts of laws principles thereof.

 

15.Counterparts. This Joinder may be executed by one or more of the parties to this Joinder on any number of separate counterparts (including by electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Joinder by facsimile transmission or by any other electronic imaging means, shall be effective as delivery of a manually executed counterpart of this Joinder.

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16.Documentary Stamp Taxes; Intangible Taxes. Borrower acknowledges, stipulates, covenants and agrees that Borrower is solely responsible for payment of any and all documentary stamp taxes and intangible taxes with respect to the Loan.  In the event that at any time or from time to time the Florida Department of Revenue shall impose any documentary stamp tax, intangible tax, interest, penalties or fines with respect to the Loan or the Loan Documents, Borrower shall pay same immediately upon demand and Borrower shall indemnify, defend and hold Lender harmless of, from and against any and all such documentary stamp tax, intangible tax, interest, penalties or fines, together with all costs of collection thereof.

17.Miscellaneous.

(i)An Event of Default hereunder shall be an "Event of Default" under Section 8.1 of the Credit Agreement entitling Lender to all of the remedies afforded Lender in Section 8.2 of the Credit Agreement. 

(ii)Borrower, Guarantors and Lender acknowledge that there are no other understandings, agreements or representations, either oral or written, express or implied, with respect to the Loan that are not embodied in the Loan Documents and this Joinder, which collectively represent a complete integration of all prior and contemporaneous agreements and understandings of Borrower, Guarantors and Lender with respect to the Loan; and that all such prior understandings, agreements and representations are hereby modified as set forth in this Joinder.  Except as expressly modified hereby, the terms of the Loan Documents are and remain unmodified and in full force and effect.

(iii)This Joinder shall bind and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

(iv)Any references to the Credit Agreement or the Loan Documents contained in any of the Loan Documents shall be deemed to refer to the Credit Agreement and the other Loan Documents as amended hereby.  This Joinder shall be deemed a "Loan Document" and accordingly, the definition of the term "Loan Documents" appearing in the Loan Documents is hereby amended to include, in addition to the documents already covered thereby, this Joinder.  The paragraph and section heading used herein are for convenience only and shall not limit the substantive provisions hereof. All words herein which are expressed in the neuter gender shall be deemed to include the masculine, feminine and neuter genders.  Any word herein which is expressed in the singular or plural shall be deemed, whenever appropriate in the context, to include the plural and the singular.

(v)Time is of the essence of each of Borrower's and Guarantors’ obligations under this Joinder.

(vi)All of the Collateral shall remain in all respects subject to the lien, charge and encumbrance of the Loan Documents, and, nothing herein contained and nothing done pursuant hereto shall affect the lien, charge or encumbrance of the Loan Documents or the priority thereof with respect to other liens, charges, encumbrances or conveyances, or release or affect the liability of any party or parties whomsoever who may now or hereafter be liable under or on account of the Loan Documents.

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(vii)If one or more of the provisions contained in this Joinder shall for any reason be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Joinder, and this Joinder shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein or therein.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Joinder to be duly executed effective as of the Amendment Effective Date. 

 

	
BORROWER:
	
 
	
 
	
HCI GROUP, INC.,

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name:
	
James Mark Harmsworth

	
 
	
 
	
 
	
Title:
	
Chief Financial Officer

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
GUARANTORS:
	
 
	
 
	
HOMEOWNERS CHOICE MANAGERS, INC.,

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
GREENLEAF CAPITAL, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
OMEGA INSURANCE AGENCY, INC., 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
SOUTHERN ADMINISTRATION, INC., 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
ENCLAVE SERVICES, INC., 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
GATORS ON THE PASS HOLDINGS LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
JOHN’S PASS MARINA INVESTMENT HOLDINGS LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
PASS INVESTMENT HOLDINGS LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
TV INVESTMENT HOLDINGS LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
SILVER SPRINGS PROPERTY INVESTMENTS, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
GRISTON CLAIM SERVICES, INC., 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
HCPCI HOLDINGS, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company 

	
 
	
 
	
 
	
BIG BEND LINCOLN SWC, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
FMKT MEL OWNER LLC, 

	
 
	
 
	
 
	
a Florida limited liability company  

	
 
	
 
	
 
	
SORRENTO PBX, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company 

	
 
	
 
	
 
	
CENTURY PARK HOLDINGS, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company 

	
 
	
 
	
 
	
GULF TO BAY LM, LLC, 

	
 
	
 
	
 
	
a Florida limited liability company 

	
 
	
 
	
 
	
JP BEACH HOLDINGS LLC, 

	
 
	
 
	
 
	
a Florida limited liability company

	
 
	
 
	
 
	
HCI INSURANCE ADMINISTRATION SERVICES, INC., 

 

 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
WESTVIEW HOLDINGS, LLC, 

	
 
	
 
	
 
	
a Florida limited liability

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name:
	
James Mark Harmsworth

	
 
	
 
	
 
	
Title:
	
Chief Financial Officer

	
 
	
 
	
 
	
 
	
 

	
RELEASED
	
 
	
 
	
 
	
 

	
GUARANTORS:
	
 
	
 
	
CYPRESS TECH DEVELOPMENT COMPANY, INC.,

	
 
	
 
	
 
	
a Florida corporation 

	
 
	
 
	
 
	
EXZEO USA, INC., 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
TYPTAP MANAGEMENT COMPANY, 

	
 
	
 
	
 
	
a Florida corporation

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name:
	
James Mark Harmsworth

	
 
	
 
	
 
	
Title:
	
Chief Financial Officer

 

 

 

 

 

[LENDER’S SIGNATURE APPEARS ON FOLLOWING PAGE]

 

 

 

 

	
LENDER:

	
 
	
 
	
 

	
FIFTH THIRD BANK, NATIONAL ASSOCIATION

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
David Austin, its Senior Vice Presidentex_223147.htm

EXHIBIT 10.1

 

SUPPORT AGREEMENT

 

This Support Agreement, dated as of January 27, 2021 (this “Agreement”), is entered into between Stock Yards Bancorp, Inc., a Kentucky corporation (“SYBT”), and ___________ (“Shareholder”).

 

Recitals

 

D.     Concurrently with the execution and delivery of this Agreement, SYBT, H. Meyer Merger Subsidiary, Inc., a Kentucky corporation and direct, wholly-owned subsidiary of SYBT (“Merger Subsidiary”), and Kentucky Bancshares, Inc., a Kentucky corporation (“KTYB”) and parent bank holding company of Kentucky Bank, a Kentucky banking corporation (the “Bank”) are entering into an Agreement and Plan of Merger, dated as of the date of this Agreement (as amended or supplemented from time to time, the “Merger Agreement”), pursuant to which, among other things, Merger Subsidiary shall be merged with and into KTYB, upon the terms and subject to the conditions set forth in the Merger Agreement. Capitalized terms not otherwise defined in this Agreement shall have meanings provided in the Merger Agreement.

 

E.     As of the date of this Agreement, Shareholder is the record and beneficial owner and has the power to vote the number of shares of KTYB Common Stock set forth, and in the manner reflected, on Attachment A to this Agreement (the shares listed on Attachment A, together with all shares of KTYB Common Stock subsequently acquired by the Shareholder during the term of this Agreement, are referred to in this Agreement as the “Owned Shares”).

 

F.     As an inducement and condition to entering into the Merger Agreement, SYBT has required that Shareholder agree, and Shareholder has agreed, to enter into this Agreement.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

aRTICLE I

VOTING AGREEMENT

 

Section 1.1     Agreement to Vote. Shareholder hereby agrees that, during the time this Agreement is in effect, at the KTYB Meeting, and at any other meeting of the shareholders of KTYB, however called, or any adjournment or postponement thereof, Shareholder shall:

 

(a)     appear at each meeting or otherwise cause the Owned Shares to be counted as present at each meeting for purposes of calculating a quorum; and

 

(b)     vote (or cause to be voted), in person or by proxy, all of the Owned Shares (i) in favor of (A) the adoption and approval of the Merger, the Merger Agreement and the transactions contemplated thereby, (B) any other matter that is required to facilitate the transactions contemplated by the Merger Agreement and (C) any proposal to adjourn or postpone the meeting to a later date if there are not sufficient votes to approve the Merger, the Merger Agreement and the transactions contemplated thereby; (ii) against any action or agreement that could reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation or agreement of KTYB contained in the Merger Agreement or of Shareholder contained in this Agreement; and (iii) against any Acquisition Proposal or any other action, agreement or transaction that is intended, or could reasonably be expected, to materially impede, interfere or be inconsistent with, delay, postpone, discourage or materially and adversely affect consummation of the Merger or the transactions contemplated by the Merger Agreement or the performance by Shareholder of Shareholder’s obligations under this Agreement.

 

 

 

 

     Section 1.2     Shareholder Capacity. Notwithstanding anything to the contrary contained in this Agreement, Shareholder makes no agreement or understanding in this Agreement in Shareholder’s capacity as a director or officer, as applicable, of KTYB or the KTYB Subsidiaries, and nothing in this Agreement: (a) will limit or affect any actions or omissions taken by Shareholder in Shareholder’s capacity as such a director or officer, as applicable, of KTYB or the KTYB Subsidiaries, including in exercising rights under the Merger Agreement, and no such actions or omissions shall be deemed a breach of this Agreement; or (b) will be construed to prohibit, limit or restrict Shareholder from exercising in a manner consistent with the terms of the Merger Agreement Shareholder’s fiduciary duties as a director or officer, as applicable, to KTYB, the KTYB Subsidiaries or their respective shareholders.          

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF SHAREHOLDER

 

Shareholder represents and warrants to SYBT as follows:

 

Section 2.1     Authority; Authorization.

 

(a)     Shareholder has all requisite power, right, authority and capacity to execute and deliver this Agreement, to perform Shareholder’s obligations under this Agreement, and to consummate the transactions contemplated by this Agreement.

 

(b)     This Agreement has been duly and validly executed and delivered by Shareholder, and the execution, delivery and performance of this Agreement by Shareholder and the consummation of the transactions contemplated by this Agreement have been duly authorized by all necessary action on the part of Shareholder, and no other actions or proceedings on the part of Shareholder are necessary to authorize this Agreement or to consummate the transactions contemplated by this Agreement.

 

(c)     Assuming the authorization, execution and delivery of this Agreement by SYBT, this Agreement constitutes a legal, valid and binding obligation of Shareholder, enforceable against Shareholder in accordance with its terms.

 

(d)     If Shareholder is married and the Owned Shares set forth by the name of Shareholder on the signature page to this Agreement constitute property owned jointly with Shareholder’s spouse, this Agreement has been executed by Shareholder’s spouse and constitutes the valid and binding agreement of Shareholder’s spouse. If this Agreement is being executed in a representative or fiduciary capacity, the person signing this Agreement has full power and authority to enter into and perform this Agreement.

 

 

 

 

Section 2.2     Non-Contravention. The execution and delivery of this Agreement by Shareholder does not, and the consummation of the transactions contemplated by this Agreement and the compliance with the provisions of this Agreement will not (a) to the knowledge of Shareholder, require Shareholder to obtain the consent or approval of, or make any filing with or notification to, any governmental or regulatory authority, domestic or foreign, (b) require the consent or approval of any other person pursuant to any agreement, obligation or instrument binding on Shareholder, (c) conflict with or violate any organizational document or law, rule, regulation, order, judgment or decree applicable to Shareholder, or (d) violate any other agreement to which Shareholder is a party including, without limitation, any voting agreement, shareholder agreement, irrevocable proxy or voting trust. The Owned Shares are not, with respect to the voting or transfer of the Owned Shares, subject to any other agreement, including any voting agreement, shareholder agreement, irrevocable proxy or voting trust.

 

Section 2.3     Ownership of Securities. On the date of this Agreement, the Owned Shares set forth on Attachment A to this Agreement are owned of record or beneficially by Shareholder in the manner reflected on Attachment A, include all of the shares of KTYB Common Stock owned of record or beneficially by Shareholder, and are free and clear of any proxy or voting restriction, claims, liens, encumbrances and security interests (other than as created by this Agreement). As of the date of this Agreement Shareholder has, and at the KTYB Meeting or any other shareholder meeting of KTYB in connection with the Merger, the Merger Agreement and the transactions contemplated by the Merger Agreement (except respecting Owned Shares that Shareholder is permitted to Transfer (as defined in Section 3.2(a) below) pursuant to this Agreement), Shareholder will have, sole voting power and sole dispositive power with respect to all of the Owned Shares. For purposes of this Agreement, the term “beneficial ownership” shall be interpreted in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended.

 

Section 2.4     Absence of Litigation. There is no suit, action, investigation or proceeding pending or, to the knowledge of Shareholder, threatened against or affecting Shareholder or any of its affiliates before or by any governmental authority that could reasonably be expected to impair the ability of Shareholder to perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement on a timely basis.

 

Section 2.5     Reliance by SYBT. Shareholder understands and acknowledges that SYBT is entering into the Merger Agreement in reliance upon Shareholder’s execution, delivery and performance of this Agreement.

 

ARTICLE III

COVENANTS

 

     Section 3.1     No Solicitation; Notice of Acquisitions; Proposals Regarding Prohibited Transactions.     

 

 

 

 

(a)     Shareholder agrees that during the term of this Agreement Shareholder shall not, and shall not permit any investment banker, financial advisor, attorney, accountant or other representative retained by Shareholder, directly or indirectly, to (i) take any of the actions specified in Section 5.14 of the Merger Agreement except as permitted by such Section 5.14 of the Merger Agreement, (ii) participate in, directly or indirectly, a “solicitation” of “proxies” (as those terms are used in the rules of the SEC) or powers of attorney or similar rights to vote, or seek to advise or influence any person with respect to the voting of, any shares of KTYB Common Stock in connection with any vote or other action on any matter of a type described in Section 1.1(b) of this Agreement, other than to recommend that shareholders of KTYB vote in favor of the adoption and approval of the Merger Agreement and the Merger and as otherwise expressly permitted by this Agreement or the Merger Agreement. Except as permitted by the Merger Agreement, Shareholder agrees immediately to cease and cause to be terminated any activities, discussions or negotiations conducted before the date of this Agreement with any persons other than SYBT with respect to any possible Acquisition Proposal and will take all necessary steps to inform any investment banker, financial advisor, attorney, accountant or other representative retained by him, her or it of the obligations undertaken by Shareholder pursuant to this Section 3.1.

 

(b)     Shareholder hereby agrees to notify SYBT promptly (and, in any event, within 24 hours) in writing of the number of any additional shares of KTYB Common Stock of which Shareholder acquires beneficial or record ownership on or after the date hereof.

 

Section 3.2     Restrictions on Transfer and Proxies; Non-Interference.

 

(a)     Shareholder agrees that it will not, prior to the termination of this Agreement, Transfer or agree to Transfer any Owned Shares other than with SYBT’s prior written consent. For purposes of this Agreement, “Transfer” shall mean to, other than in connection with the Merger or the other transactions contemplated by the Merger Agreement, offer, sell, contract to sell, pledge, assign, distribute by gift or donation, or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition of (whether by actual disposition or effective economic disposition due to cash settlement or otherwise)), directly or indirectly, any shares of capital stock of KTYB or any securities convertible into, or exercisable or exchangeable for such capital stock, or publicly announce an intention to effect any such transaction. Notwithstanding the foregoing, Shareholder may make gifts of Owned Shares during the term of this Agreement if the donee enters into an agreement containing covenants governing the voting and transfer of the transferred Owned Shares equivalent to those set forth in this Agreement.

 

(b)     Shareholder hereby covenants and agrees that, except for this Agreement, it (i) has not entered into, and shall not enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect to the Owned Shares, (ii) has not granted, and except for proxies granted as contemplated by Section 1.1(b), shall not grant at any time while this Agreement remains in effect, a proxy, consent or power of attorney with respect to the Owned Shares, (iii) has not taken any action, and shall not take any action at any time while this Agreement remains in effect, that would or is reasonably likely to (A) make any representation or warranty contained in this Agreement untrue or incorrect in any material respect or (B) have the effect of preventing Shareholder from performing its obligations under this Agreement.

 

Section 3.3     Dissenters’ Rights. Shareholder agrees not to exercise any right to dissent (including, without limitation, under any rights set forth in Sections 271B.13-010 through 271B.13-310 of the KBCA) as to any Owned Shares which may arise with respect to the Merger or the transactions contemplated by the Merger Agreement.

 

 

 

 

Section 3.4     Stop Transfer. Shareholder agrees that it shall not request that KTYB register the transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any Owned Shares, unless the transfer is made in compliance with this Agreement.

 

Section 3.5     Further Assurances; Cooperation.

 

(a)     Shareholder, without further consideration, will (i) use all reasonable efforts to cooperate with SYBT and KTYB in furtherance of the transactions contemplated by the Merger Agreement, (ii) promptly execute and deliver all additional documents that may be reasonably necessary in furtherance of the transactions contemplated by the Merger Agreement, and take all reasonable actions as are necessary or appropriate to consummate the transactions contemplated by the Merger Agreement, and (iii) promptly provide any information, and make all filings, reasonably requested by SYBT for any regulatory application or filing made or approval sought in connection with the transactions contemplated by the Merger Agreement (including filings with any Regulatory Agencies).

 

(b)     Shareholder consents to the publication and disclosure in the Proxy Statement (and, as and to the extent otherwise required by law or any Regulatory Agency or Governmental Entity, in any other documents or communications provided by SYBT or KTYB to any Regulatory Agency or Governmental Entity or to security holders of SYBT or KTYB) of Shareholder’s identity and beneficial and record ownership of the Owned Shares, the nature of Shareholder’s commitments, arrangements and understandings under and relating to this Agreement and the Merger Agreement and any additional requisite information regarding the relationship of Shareholder with SYBT and the SYBT Subsidiaries and/or KTYB, the Bank, and the other KTYB Subsidiaries.

 

Section 3.6     Non-Competition and Non-Solicitation.

 

(a)     Shareholder agrees that for (x) the period between the date of this Agreement and the Effective Time (except for service on the Board of Directors of KTYB or Bank) and (y) for a period of [three (3) years/eighteen (18) months]’2 following the Effective Time, Shareholder will not:

 

(i)     engage in a Competitive Business (as defined below) as an employee, officer or director; provided that the foregoing shall not prohibit the Shareholder from (A) continuing to engage in the activities in which the Shareholder is currently a participant which are expressly set forth on Attachment B attached hereto, or (B) holding up to two (2%) of the outstanding securities of any class of any publicly held company which is a Competitive Business;

 

 

2 Duration will be tied to length of service on KTYB’s board (i.e. directors serving more than 5 years as of the date of the Agreement will be subject to a three (3) year period; directors serving less than 5 years as of the date of the Agreement will be subject to an eighteen (18) month period).

 

 

 

 

(ii)     solicit or otherwise attempt in any manner to cause or otherwise encourage any persons who are employees of KTYB or the Bank or any other KTYB Subsidiary prior to the Closing (“KTYB Employees”) to leave the employ of SYBT or any of the SYBT Subsidiaries; or

 

(iii)     (A) induce, persuade, encourage or influence, or attempt to induce, persuade, encourage or influence, any person (as such term is interpreted in Section 8.6 of the Merger Agreement) having a business relationship with KTYB, the Bank, and other KTYB Subsidiary, SYBT or any of the SYBT Subsidiaries, to discontinue, reduce or restrict such relationship or (B) solicit, target or divert, or attempt to solicit, target or divert, the deposits, loans or other products and services from persons who were depositors, borrowers or customers of KTYB, the Bank, or any other KTYB Subsidiary on the date of this Agreement and/or as of the Effective Time; provided, however, nothing in this Section 3.6(a)(iii) shall prevent the Shareholder from engaging in the Shareholder’s personal, family, business or employment activities as a customer of a Competitive Business.

 

(iv)     For purposes of this Agreement, the term “Competitive Business” shall mean the business or operations of a bank, thrift, credit union, investment, mortgage banking, financial planning or wealth management advisor, trust company, industrial bank, or any other financial institution or bank holding company either located or doing business either (A) within the Kentucky counties of Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, and/or Woodford, or (B) within any county contiguous to any county referred to in item (A) of this Section 3.6(a)(iv). 

 

(b)     Shareholder acknowledges and agrees that the business conducted by SYBT and the SYBT Subsidiaries is highly competitive and that the covenants made by Shareholder in this Section 3.6 are made as a necessary inducement for SYBT to enter into the Merger Agreement and to consummate the transactions contemplated by the Merger Agreement. It is the desire and intent of the parties to this Agreement that the provisions of this Section 3.6 shall be enforced to the fullest extent permissible under the laws and public policies of each jurisdiction in which enforcement is sought. It is expressly understood and agreed that although Shareholder and SYBT each consider the restrictions contained in this Section 3.6 to be reasonable, if a final determination is made by a court of competent jurisdiction or an arbitrator that the time or territory or any other restriction contained in this Section 3.6 is unenforceable against any party, the provisions of this Section 3.6 shall be deemed amended to apply as to the maximum time and territory and to the maximum extent as the applicable court may judicially determine or indicate to be enforceable. The parties further agree to execute all documents necessary to evidence the applicable amendment.

 

(c)     Shareholder acknowledges and agrees that the provisions of this Agreement are fair, reasonable and necessary to protect SYBT’s legitimate business interests and to protect the value of SYBT’s acquisition of KTYB.

 

(d)     Shareholder will not, at any time during the [three-year/eighteen-month] period referred to in Section 3.6(a) of this Agreement, disparage SYBT or any of the SYBT Subsidiaries, or the business conducted by SYBT or any of the SYBT Subsidiaries, or any stockholder, member, director, manager, officer, employee or agent of SYBT or any of the SYBT Subsidiaries.

 

 

 

 

ARTICLE IV

Termination

 

Section 4.1     Termination. This Agreement shall terminate upon the earlier to occur of (i) the termination of the Merger Agreement in accordance with its terms and (ii) the date that is [three (3) years/eighteen (18) months] following the Effective Time.

 

Section 4.2     Effect of Termination. In the event of termination of this Agreement pursuant to Section 4.1, this Agreement shall become void and of no effect with no liability on the part of any party hereto; provided, however, no termination of this Agreement shall relieve any party to this Agreement from any liability for any breach of this Agreement occurring prior to the termination of this Agreement or any obligations under this Agreement.

 

ARTICLE V

MISCELLANEOUS

 

Section 5.1     Amendment; Waivers. Any provision of this Agreement may be amended or waived if, and only if, the amendment or waiver is in writing and signed (a) in the case of an amendment, by SYBT and Shareholder, and (b) in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege under this Agreement shall operate as a waiver the applicable right, power or privilege, nor shall any single or partial exercise any right, power or privilege preclude any other or further exercise of the applicable right, power or privilege or the exercise of any other right, power or privilege.

 

Section 5.2     Expenses. Subject to Section 5.8, all costs and expenses incurred in connection with this Agreement and the transactions contemplated by this Agreement shall be paid by the party incurring the expenses.

 

Section 5.3     Notices. All notices, requests, instructions or other communications or documents to be given or made hereunder by one party to the other party shall be in writing and (a) served by personal delivery upon the party for whom it is intended, (b) sent by an internationally recognized overnight courier service upon the party for whom it is intended, or (c) sent by email, provided that the transmission of the e-mail is promptly confirmed:

 

(i)      if to Shareholder: The address provided on Attachment A hereto.

 

(ii)     if to SYBT:

 

Stock Yards Bancorp, Inc.

1040 E. Main St.

Louisville, KY 40206

Attention:          James A. Hillebrand, CEO

Email:               Ja.Hillebrand@syb.com

 

 

 

 

 with a copy to :

Stock Yards Bancorp, Inc.

1040 E. Main St.

Louisville, KY 40206

Attention:          Craig Bradley, General Counsel

Email:                craig.bradley@syb.com

 

and with a copy (which shall not constitute notice) to:

 

Frost Brown Todd LLC

400 West Market Street, 32nd Floor

Louisville, KY 40202

Attention:        R. James Straus

                        Nathan L. Berger.

Email:              jstraus@fbtlaw.com

                        nberger@fbtlaw.com

 

 

Section 5.4     Entire Agreement; Assignment. This Agreement constitutes the entire agreement among the parties with respect to the subject matter of this Agreement and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. Neither this Agreement, nor any of the rights and obligations under this Agreement, shall be transferred by Shareholder without the prior written consent of SYBT.

 

Section 5.5     Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each party to this Agreement and their respective successors, heirs, and permitted assigns. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

 

Section 5.6     Severability. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, the invalidity, illegality or unenforceability shall not affect any other provision or portion of any provision in the applicable jurisdiction, and this Agreement shall be reformed, construed and enforced in the applicable jurisdiction so that the invalid, illegal or unenforceable provision or portion thereof shall be interpreted to be only so broad as is enforceable.

 

 

 

 

Section 5.7     Specific Performance; Remedies. Each of the parties to this Agreement agrees that this Agreement is intended to be legally binding and specifically enforceable pursuant to its terms and that SYBT would be irreparably harmed if any of the provisions of this Agreement are not performed in accordance with their specific terms and that monetary damages would not provide adequate remedy in such event. Accordingly, in the event of any breach or threatened breach by Shareholder of any covenant or obligation contained in this Agreement, in addition to any other remedy to which SYBT may be entitled (including monetary damages), SYBT shall be entitled to seek injunctive relief to prevent breaches of this Agreement and to specifically enforce the terms and provisions of this Agreement. Shareholder further agrees that neither SYBT, Merger Subsidiary nor any other person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 5.7, and Shareholder irrevocably waives any right it may have to require the obtaining, furnishing or posting of any bond or similar instrument. All rights, powers and remedies provided under this Agreement or otherwise available in respect of this Agreement at law or in equity shall be cumulative and not alternative, and the exercise of any right, power or remedy thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.

 

Section 5.8     Governing Law.

 

(a)     This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Kentucky without regard to any applicable conflicts of law.

 

(b)     Each party agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Agreement or the transactions contemplated hereby exclusively in the federal or state courts located in either Louisville, Jefferson County, Kentucky or Lexington, Fayette County, Kentucky (the “Chosen Courts”), and, solely in connection with claims arising under this Agreement or the transactions that are the subject of this Agreement, (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any action or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of process upon any party in any action or proceeding will be effective if notice is given in accordance with Section 5.3. Notwithstanding any other provision in this Agreement, in the event of any action arising out of or resulting from this Agreement, the prevailing party shall be entitled to recover its costs and expenses (including reasonable attorneys' fees and expenses) incurred in connection with the action.

 

Section 5.9     Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY LAW AT THE TIME OF INSTITUTION OF THE APPLICABLE LITIGATION, ANY RIGHT THE PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.9.

 

 

 

 

Section 5.10     Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

 

Section 5.11     Counterparts. This Agreement may be executed in two or more counterparts (including by facsimile, email of a PDF copy, or other electronic means) all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

Section 5.12     Delivery by Facsimile or Electronic Transmission.  This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments or waivers hereto or thereto, to the extent signed and delivered by means of a facsimile machine or by email delivery of a “.pdf” format data file, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  No party hereto or to any agreement or instrument entered into in connection with this Agreement shall raise the use of a facsimile machine or email delivery of a “.pdf” format data file to deliver a signature to this Agreement or any amendment hereto or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or email delivery of a “.pdf” format data file as a defense to the formation of a contract and each party hereto forever waives any defense based on the foregoing.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed as of the day and year first above written.

	 	 
	 	
			SYBT:

			 

			Stock Yards Bancorp, Inc.

			 

			By:                                                                  

			James A. Hillebrand, CEO

			 

			 

			 

			SHAREHOLDER

			 

			Print Name:                                                     

			 

			 

			 

			SHAREHOLDER’S SPOUSE

			 

			_______________________________ _____

			 

			Print Name:      ________________________

			
	 	 
	 	 
	 	 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Support Agreement]

 

 

 

 

Attachment A

 

Owned Shares

 

	
			Name and Address of Shareholder

			 

				
			Owned Shares

			
	
			[NAME]

			[                             ]

			[                             ]

			Phone:  [               ]

			Email:   [               ]

				 

 

 

 

 

Attachment B

 

Current Activities

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