Document:

ex10-17.htm

Exhibit 10.17 

 

EMPLOYMENT AGREEMENT

 

Employment Agreement dated as of March 4, 2013 (this “Agreement”), by and between OTELCO INC., a Delaware corporation (“Otelco” or the “Company”) and Eric T. Wessing (the “Employee”).

 

WHEREAS, the Company and the Employee desire to enter into this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.           Effective Date; Termination.

 

This Agreement shall become effective on the date first written above (the “Effective Date”).

 

SECTION 2.          Employment Period.

 

Subject to Section 4, the Company hereby agrees to employ the Employee, and the Employee hereby agrees to be employed by the Company, in accordance with the terms and provisions of this Agreement, for the period from the Effective Date through the Termination Date (the “Employment Period”).

 

SECTION 3.          Terms of Employment.

 

(a)           Duties and Position. During the Employment Period, the Employee shall serve as Vice President and General Manager Otelco Mid-Missouri Division. As such, the Employee shall have duties and responsibilities commensurate with such position and such other duties and responsibilities as may from time to time be assigned to or vested in the Employee by the Company’s board of directors (the “Board or, the Company’s Chief Executive.  During the Employment Period, and excluding any periods of vacation and sick leave to which the Employee is entitled, the Employee agrees to devote his full business time and efforts, to the best of his ability, experience and talent, to the business and affairs of the Company. During the Employment Period, it shall not be a violation of this Agreement for the Employee to serve on corporate, civic or charitable boards or committees or manage personal investments (including serving as a member of boards of directors or similar bodies of entities not engaged in competition with Otelco or its subsidiaries, (collectively, the “Company Entities”) (as determined by the Board in its reasonable discretion)), in each case, so long as such activities do not interfere with the performance of the Employee’s responsibilities as an employee of the Company in accordance with this Agreement.

 

(b)           Compensation.

 

(i)           Base Salary. During the Employment Period, the Employee shall receive an annual base salary of $125,000 subject to increase by the Board of Directors of the Company (the “Board”), which Annual Base Salary shall be further subject to annual increase by an amount equal to reflect the increase in the cost of living, if any, between the date of the immediately preceding increase and the date of each such adjustment, based upon the Consumer Price Index for Urban Consumers, or if that index is discontinued, a similar index prepared by a department or agency of the United States government (as so adjusted, the “Annual Base Salary”). The Annual Base Salary shall be paid in accordance with the customary payroll practices of the Company, subject to withholding and other payroll taxes.

 

  

  

  

 

(ii)           Bonus. For each fiscal year during the Employment Period, the Employee will be entitled to receive a bonus (the “Bonus”).  The Bonus shall be based upon the Company achieving operating and/or financial goals to be established by the Board or any duly appointed committee thereof in good faith, in its sole discretion.

 

(iii)           Benefits. During the Employment Period, the Employee shall be entitled to participate in all incentive (including any long term incentive plan), savings and retirement plans, practices, policies and programs applicable generally to other employees of the Company and shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company to the extent applicable generally to other employees of the Company.

 

(iv)           Automobile.  During the Employment Period, the Company shall provide the Employee with the use of a Company automobile (or, at the Company’s option, shall lease an automobile for the Employee’s use) and shall reimburse Employee for all reasonable expenses incurred by the Employee in connection with the use and maintenance of such automobile.

 

(v)            Expenses. The Employee shall be entitled to receive reimbursement for all reasonable expenses incurred by the Employee during the Employment Period in connection with the performance of his duties hereunder, in accordance with the policies, practices and procedures of the Company as in effect from time to time.

 

(vi)           Vacation and Holidays. During the Employment Period, the Employee shall be entitled to paid holidays and vacation in accordance with the policies of the Company generally applicable to other employees of the Company generally.

 

SECTION 4.          Termination of Employment.

 

(a)           Death or Disability. The Employee’s employment shall terminate automatically upon the Employee’s death or Disability. For purposes of this Agreement, “Disability” shall mean the Employee’s inability to perform his duties and obligations hereunder for any 90 days during a period of 180 consecutive days due to mental or physical incapacity as determined by a physician selected by the Company or its insurers.

 

(b)           Termination by the Employee. The Employee may terminate his employment with the Company at any time, without prior notice.

 

  

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(c)           Termination by the Company. The Company may terminate the Employee’s employment with the Company at any time, with or without Cause and without prior notice. “Cause” will mean that any of the following will have occurred (i) the Employee has been convicted of a felony, stolen funds or otherwise engaged in fraudulent conduct, (ii) the Employee has engaged in willful misconduct or has been grossly negligent, in each case, which has been materially injurious to the Company, (iii) the Employee has failed or refused to comply with directions of the Board that are reasonably consistent with the Employee’s current position or (iv) the Employee has breached the terms of this Agreement. “Without Cause” shall mean a termination by the Company of the Employee’s employment during the Employment Period for any reason other than a termination based upon Cause, death or Disability.

 

SECTION 5.          Obligations of the Company upon Termination.

 

(a)           Without Cause. If, during the Employment Period, the Company shall terminate the Employee’s employment Without Cause, then the Company will provide the Employee with the following severance payments and/or benefits:

 

(i)           The Company shall pay to the Employee a lump sum in the amount of the Employee’s accrued but unpaid Annual Base Salary through the Termination Date (“Accrued Obligations”);

 

(ii)          The Employee, if applicable, and members of his family shall be entitled to continue their participation in the Company’s welfare and benefit plans (the “Benefits”) until the Termination Date;

 

(iii)         The Company shall pay to the Employee a lump sum in the amount of one-half (1/2) of his Annual Base Salary within six (6) months following termination but not later than March 14 of the calendar year following termination; and

 

(iv)         The Company shall pay to the Employee a lump sum amount equal to the Bonus the Employee would have received had he remained employed by the Company through the end of the fiscal year in which the termination accrued, pro rated for the number of days Employee was employed by the Company during such fiscal year, to be paid at the same time that similar bonuses are paid to the Company’s other employees.

 

(b)           Cause; by the Employee; Death or Disability. If the Employee’s employment shall be terminated by the Company for Cause, by the Employee for any reason, or due to death or Disability, then the Company shall have no further payment obligations to the Employee (or his heirs or legal representatives) other than for (i) payment of Accrued Obligations and (ii) the continuance of Benefits through the Termination Date.

 

(c)           Condition; Release. The Employee acknowledges and agrees that the Company’s obligations to make payments under Section 5(a) will be conditioned on the Employee executing and delivering a customary general release in form and substance reasonably satisfactory to the Company.

 

  

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SECTION 6.           Nondisclosure and Nonuse of Confidential Information.

 

(a)           The Employee shall not disclose or use at any time, either during the Employment Period or thereafter, any Confidential Information (as hereinafter defined) of which the Employee is or becomes aware as a consequence of or in connection with his employment with the Company, whether or not such information is developed by him, except (i) to the extent that such disclosure or use is in furtherance of the Employee’s performance in good faith of his duties as Vice President and General Manager Otelco Mid-Missouri Division or (ii) to the extent required by law or legal process; provided that (A) the Employee agrees to provide the Company with prompt written notice of any such law or legal process and to assist the Company, at the Company’s expense, in asserting any legal challenges to or appeals of such law or legal process that the Company in its sole discretion pursues, and (B) in complying with any such law or legal process, the Employee shall limit his disclosure only to the Confidential Information that is expressly required to be disclosed by such law or legal process. The Employee will take all commercially reasonable steps to safeguard Confidential Information and to protect it against disclosure, misuse, espionage, loss and theft. The Employee shall deliver to the Company on the Termination Date, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as hereinafter defined) of the Company Entities which the Employee may then possess or have under his control.

 

(b)           The Employee agrees that all Work Product belongs in all instances to the Company Entities. The Employee will promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm the Company Entities’ ownership of the Work Product (including, without limitation, the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance to the Company (whether during or after the Employment Period), at the Company’s sole expense, in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product. The Employee recognizes and agrees that the Work Product, to the extent copyrightable, constitutes works for hire under the copyright laws of the United States.

 

(c)           “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company Entities in connection with their business, including, but not limited to, information, observations and data obtained by the Employee while employed by the Company or any predecessors thereof (including those obtained prior to the date of this Agreement) concerning (i) the business or affairs of Otelco and its Affiliates (including the Company Entities) and (ii) products, services, fees, costs, pricing structures, analyses, drawings, photographs and reports, computer software (including operating systems, applications and program listings), data bases, accounting and business methods, inventions, devices, new developments, methods and processes (whether patentable or unpatentable and whether or not reduced to practice), customers and clients and customer and client lists, all technology and trade secrets, and all similar and related information in whatever form. Confidential Information will not include any information that (A) is or becomes generally available to the public other than through disclosure by the Employee in violation of this Section 6, (B) was provided to the Employee prior to the date hereof on a non-confidential basis from a Person who was not otherwise bound by a confidentiality agreement or duty to Otelco or an Affiliate thereof (including the Company Entities) or (C) becomes available to the Employee on a non-confidential basis from a Person who is not otherwise bound by a confidentiality agreement or duty to Otelco or its Affiliates (including the Company Entities) or is not otherwise prohibited from transmitting the information to the Employee.

 

  

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(d)           “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service, marks, trademarks, trade names, trade dress, logos and all similar or related information (whether patentable or unpatentable) which relates to the Company’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by the Employee (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during the Employment Period together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.

 

SECTION 7.           Non-Compete and Non-Solicit.

 

(a)           The Employee acknowledges that, in the course of the Employee’s employment with the Company, the Employee has become familiar, or will become familiar, with Otelco and its Affiliates (including the Company Entities) trade secrets and with other confidential information concerning Otelco and its Affiliates (including the Company Entities) and that his services have been and will be of special, unique and extraordinary value to Otelco and its Affiliates (including the Company Entities). Therefore, the Employee agrees that, during the Employment Period and for six (6) months thereafter (the “Restricted Period”), the Employee shall not directly or indirectly (i) engage, within the Restricted Territory, in any telephone or communications business, including, but not limited to, incumbent local exchange carrier, long distance telephone business, cable television, Internet access, or other business that Otelco or any of its Affiliates (including the Company Entities) is engaged in during the Employee’s employment by the Company (the “Company Business”), (ii) compete or participate as agent, employee, consultant, advisor, representative or otherwise in any enterprise engaged in a business which has any operations engaged in the Company Business within the Restricted Territory or (iii) compete or participate as a stockholder, partner, member or joint venturer, or have any direct or indirect financial interest, in any enterprise which has any material operations engaged in the Company Business within the Restricted Territory; provided, however, that nothing contained herein will prohibit the Employee from (A) owning, operating or managing any business, or acting upon any business opportunity, after obtaining approval of a majority of the Board or (B) owning no more than five percent (5%) of the equity of any publicly traded entity with respect to which the Employee does not serve as an officer, director, employee, consultant or in any other capacity other than as an investor. The term “Restricted Territory” means all states within the United States in which Otelco or any of its Affiliates (including the Company Entities) conducts or is pursuing or analyzing plans to conduct Company Business as of the Termination Date.

 

  

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(b)           As a means reasonably designed to protect Confidential Information, the Employee agrees that, during the period commencing on the Effective Date and ending on the expiration of the Restricted Period, the Employee will not (i) solicit or make any other contact with, directly or indirectly, any customer of Otelco or any of its Affiliates (including the Company Entities) as of the date that the Employee ceases to be employed by the Company with respect to the provision of any service to any such customer that is the same or substantially similar to any service provided to such customer by Otelco or any of its Affiliates (including the Company Entities) or (ii) solicit or make any other contact with, directly or indirectly, any employee of Otelco or any of its Affiliates (including the Company Entities) on the date that the Employee ceases to be employed by the Company (or any person who was employed by Otelco or any of its Affiliates (including the Company Entities) at any time during the three-month period prior to the Termination Date) with respect to any employment, services or other business relationship.

 

SECTION 8.          Remedies.

 

The Employee acknowledges that irreparable damage would occur in the event of a breach of the provisions of Section 6 or Section 7 by the Employee. It is accordingly agreed that, in addition to any other remedy to which its is entitled at law or in equity, the Company will be entitled to an injunction or injunctions to prevent breaches of such sections of this Agreement and to enforce specifically the terms and provisions of such sections.

 

SECTION 9.          Definitions.

 

“Accrued Obligations” has the meaning set forth in Section 5(a)(i).

 

“Affiliate” means, with respect to any Person, any other Person that is controlled by, controlling or under common control with, such Person. Notwithstanding anything to the contrary contained herein, with respect to Otelco, the term “Affiliate” will include, without limitation, each Person with an ownership interest in Otelco (and each member, stockholder or partner of each such Person), each Person in which any stockholder of Otelco (and each member, stockholder or partner of each such Person) holds or has the right to acquire, collectively, more than 10% of the voting equity interests.

 

“Agreement” has the meaning set forth in the Caption.

 

“Annual Base Salary” has the meaning set forth in Section 3(c)(i).

 

“Benefits” has the meaning set forth in Section 5(a)(ii).

 

“Board” has the meaning set forth in Section 3(a).

 

“Bonus” has the meaning set forth in Section 3(c)(ii).

 

“Business Day” means any day that is not a Saturday, Sunday, legal holiday or other day on which banks are required to be closed in New York, New York.

 

“Cause” has the meaning set forth in Section 4(c).

 

“Company” has the meaning set forth in the Caption.

 

“Company Business” has the meaning set forth in Section 7(a).

 

  

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“Company Entities” has the meaning set forth in Section 3(b).

 

“Confidential Information” has the meaning set forth in Section 6(c).

 

“Disability” has the meaning set forth in Section 4(a).

 

“Effective Date” has the meaning set forth in Section 1.

 

“Employee” has the meaning set forth in the Caption.

 

“Employment Period” has the meaning set forth in Section 2.

 

“Person” means an individual, partnership, corporation, limited liability company, trust or unincorporated organization, or a government or agency or political subdivision thereof.

 

“Restricted Period” has the meaning set forth in Section 7(a).

 

“Restricted Territory” has the meaning set forth in Section 7(a).

 

“Termination Date” means the effective date of the termination of the Employee’s employment with the Company, for any reason, by any party, or by death or Disability.

 

“Without Cause” has the meaning set forth in Section 4(c).

 

“Work Product” has the meaning set forth in Section 6(d).

 

SECTION 10.         General Provisions.

 

(a)           Severability. It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

(b)           Entire Agreement. This Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof. This Agreement supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

(c)           Survival. Notwithstanding anything to the contrary contained herein, the provisions of Section 6, Section 7 and Section 8 shall survive the termination of this Agreement.

 

  

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(d)           Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

 

(e)           Successors and Assigns; Beneficiaries. This Agreement is personal to the Employee and without the prior written consent of the Company shall not be assignable by the Employee other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee’s heirs and legal representatives and the successors and assigns of the Company. The Company reserves the right to assign this Agreement in whole or in part to any of its Affiliates and upon any such assignment, the term “Company” will be deemed to be such Affiliate

 

(f)           Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF NEW YORK WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY.

 

(g)           Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF.

 

(h)           Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Employee and the Company and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall be construed as a waiver of such provisions or affect the validity, binding effect or enforceability of this Agreement or any provision hereof.

 

(i)           Notices. All notices, requests, demands, claims, consents and other communications which are required or otherwise delivered hereunder shall be in writing and shall be deemed to have been duly given if (i) personally delivered or transmitted by electronic mail, (ii) sent by nationally recognized overnight courier, (iii) mailed by registered or certified mail with postage prepaid, return receipt requested or (iv) transmitted by facsimile (with a copy of such transmission concurrently transmitted by registered or certified mail with postage prepaid, return receipt requested), to the parties hereto at the following addresses (or at such other address for a party as shall be specified by like notice):

 

(j)           If to the Board or the Company, to:

 

Otelco Inc.

505 Third Avenue East

Oneonta, Alabama 35121

Attention: Curtis L. Garner, Jr.

Telephone No: (205) 625-3571

Facsimile No: (205) 625-3528

 

  

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with a copy to:

 

Dorsey & Whitney LLP

250 Park Avenue

New York, New York 10177

Attention: Steven Khadavi, Esq.

Telephone No: (212) 415-9376

Facsimile No: (212) 953-7201

 

(k)           if to the Employee to:

 

Eric T. Wessing

13869 N Highway Pilot Grove, MO 65276

Telephone No: 660 834-7026

Facsimile No: 866-394-9809

 

or to such other address as the party to whom such notice or other communication is to be given may have furnished to each other party in writing in accordance herewith. Any such notice or communication shall be deemed to have been received (i) when delivered, if personally delivered or transmitted by electronic mail, with receipt acknowledgment by the recipient by return electronic mail, (ii) when sent, if sent by facsimile on a Business Day during normal business hours (or, if not sent on a Business Day during normal business hours, on the next Business Day after the date sent by facsimile), (iii) on the next Business Day after dispatch, if sent by nationally recognized, overnight courier guaranteeing next Business Day delivery and (iv) on the fifth (5th) Business Day following the date on which the piece of mail containing such communication is posted, if sent by mail.

 

(l)           Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

(m)          Construction. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

 

(n)          Nouns and Pronouns. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice-versa.

 

[Signature page follows]

 

  

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

 

	 	
OTELCO INC.

	 
	 	 	 	 
	 	By:	
/s/ Curtis L. Garner, Jr.

	 
	 	 	
Name:  Curtis L. Garner, Jr.

	 
	 	 	
Title:    Chief Financial Officer

	 

 

	 	

EMPLOYEE

	 
	 	 	 	 
	 	 	

/s/ Eric T. Wessing

	 
	 	 	

Eric T. Wessing

	 

 

 

10EX-10.1

 Exhibit 10.1 
 EXECUTION COPY 
 REPURCHASE AGREEMENT 

THIS REPURCHASE AGREEMENT (this “Agreement”) is made and entered into as of April 1, 2013, by and between
Universal Insurance Holdings, Inc., a Delaware corporation (the “Company”), and Bradley I. Meier, an individual with an address at 229 Ocean Blvd., Golden Beach, Florida 33160 (“Seller”). 

WHEREAS, Seller owns in the aggregate 11,338,971 shares of common stock of the Company, par value $0.01 per share (collectively,
the “Shares”); 
 WHEREAS, Seller desires to sell to the Company, and the Company desires to repurchase
and redeem from Seller, an aggregate of 4,000,000 of the Shares (the “Repurchase Shares”), on the terms and conditions set forth in this Agreement (the “Repurchase”); 

WHEREAS, Seller desires to grant to the Company, and the Company desires to accept, a right of first refusal on any other sales of Shares
by Seller, on the terms and conditions set forth in this Agreement; and 
 WHEREAS, Seller and the Company intend the Repurchase
to be an isolated transaction between them. 
 NOW, THEREFORE, for good and valuable consideration, the receipt, adequacy and
sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Initial Purchase and Sale.
Contemporaneously with the execution and delivery of this Agreement, Seller hereby sells, assigns and transfers to the Company, and the Company hereby purchases, accepts and acquires from Seller, 2,000,000 of the Repurchase Shares in consideration
of the payment by the Company to Seller contemporaneously herewith of U.S. $8,040,000.00 by wire transfer of immediately available funds to Seller’s designated account. Seller shall deliver to the Company contemporaneously herewith stock
certificates representing such Repurchase Shares, accompanied by stock powers and, subject to Section 9(h), bearing or accompanied by all requisite stock transfer stamps. 

2. Subsequent Purchase and Sale. On or before June 1, 2013, the Company shall purchase, accept and acquire from Seller, and
Seller shall sell, assign and transfer to the Company the remaining 2,000,000 Repurchase Shares at an aggregate purchase price of U.S. $8,040,000.00 (the “Subsequent Purchase”). The Company shall provide Seller written notice of a
proposed closing date for the Subsequent Purchase on or before May 28, 2013, which closing date shall be at least three (3) business days after the date on which the Company provides such notice. At the closing of the Subsequent Purchase,
(a) Seller shall deliver to the Company stock certificates representing the Repurchase Shares being transferred in the Subsequent Purchase, accompanied by stock powers and, subject to Section 9(h), bearing or accompanied by all
requisite stock transfer stamps and (b) the Company shall deliver to Seller U.S. $8,040,000.00 by wire transfer of immediately available funds to Seller’s designated account. 

 3. Right of First Refusal. 

(a) Right and Notice. Commencing on the date hereof and continuing until December 31, 2014 (the “Offer
Period”), Seller hereby agrees that before he may sell or otherwise transfer for value any other Shares to a third party, the Company shall have a right of first refusal to purchase such Shares (the “Offered Shares”) on
terms and conditions at least as favorable to the Company as those set forth in this Section 3 (the “Right of First Refusal”). Seller shall deliver to the Company a written notice (the “Offer Notice”)
stating: (i) Seller’s bona fide intention to sell or otherwise transfer for value the Offered Shares; (ii) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the number of
Offered Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which Seller proposes to transfer the Offered Shares or, if Seller proposes to transfer or sell the Offered Shares
pursuant to an open market transaction on the NYSE MKT LLC or other national securities exchange, the closing price of such Offered Shares as of the last trading day before the date of the Offer Notice (in either case, the “Offered
Price”). Seller shall offer such Offered Shares to the Company at a price equal to (x) the Offered Price, multiplied by (y) eighty-eight percent (88%) (the “Purchase Price”); provided,
however, that if the Offered Price per Offered Share is $4.02 or less, then the Purchase Price shall equal one hundred percent (100%) of the Offered Price. Notwithstanding anything to the contrary contained herein, the Right of First
Refusal (A) shall terminate and be of no further force or effect from and after the expiration of the Offer Period, (B) shall not apply to any direct or indirect transfer of Shares by Seller as a bona fide gift or distribution of Shares to
any trust, family limited partnership or other estate planning vehicle for the direct or indirect benefit of Seller or any member of Seller’s family and (C) shall not apply at any time when Seller shall cease to own at least five percent
(5%) of the issued and outstanding shares of the Company’s common stock. 
 (b) Exercise of Right and Purchase
Price. At any time within ten (10) business days after receipt of the Offer Notice, the Company may, by giving written notice to Seller (the “Election Notice”), elect to purchase all (but not less than all) of the
Offered Shares at the Purchase Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined in good faith by the Company and Seller. 

(c) Payment and Closing. Seller and the Company shall execute such agreements as may be appropriate so that the sale of the
Offered Shares to the Company occurs on substantially the same terms and conditions as those provided for in the Offer Notice. At the closing of the sale for the Offered Shares, which closing shall occur not more than ten (10) business days
after the date of the Company’s Election Notice, (i) Seller shall deliver to the Company those duly executed instruments or documents as may be reasonably requested by the Company to permit the Company to acquire such Offered Shares free
and clear of any and all liens, security interests or other encumbrances, and (ii) the Company shall deliver to Seller by wire transfer of immediately available funds to Seller’s designated account the aggregate Purchase Price for the
Offered Shares. 
 (d) Seller’s Right to Transfer. If the Company fails to deliver to Seller an Election Notice
within the ten (10) business day exercise period described in subsection (b) herein, then Seller may sell or otherwise transfer the Offered Shares to the Proposed Transferee at the Offered Price or at a higher price (except to the
extent such Offered Shares are sold to the Proposed Transferee at the then current trading price for the shares of the Company’s common stock); provided, that such sale or 

 
other transfer is consummated within fifteen (15) business days after expiration of Company’s ten (10) business day exercise period. If such Offered Shares are not transferred to
the Proposed Transferee within such period, they shall again be subject to this Section 3, and Seller shall again offer the Company a Right of First Refusal, subject to the provisions set forth in Section 3(a), before any of
such Shares may be sold or otherwise transferred. 
 4. Available Remedies. If for any reason (a) the Company fails
to consummate the closing of the Subsequent Purchase on or before June 1, 2013, (b) the Company fails to consummate the closing of any Right of First Refusal exercised by the Company within the applicable ten (10) business day period
set forth in Section 3(c), or (c) the Company otherwise breaches in any material respect any of the terms or conditions of this Agreement, then, in addition to any other rights or remedies available to Seller at law or in equity:

 (i) with respect to the occurrence of any condition specified in subsections (a), (b) or (c),
Seller shall have the right to terminate this Agreement by providing written notice of such termination to the Company in accordance with Section 8(g); 
 (ii) with respect to the occurrence of the condition described in subsection (a), the Company shall pay to Seller an amount in cash equal to U.S. $964,800.00, which amount (x) shall be
payable promptly upon demand by Seller, (y) shall be payable notwithstanding any termination of this Agreement by Seller in accordance with the foregoing clause (i) and (z) shall be payable even if the Subsequent Purchase
occurs after June 1, 2013; and 
 (iii) with respect to the occurrence of the condition described in subsection (b),
the price payable by the Company for the Offered Shares in connection with any exercise of the Right of First Refusal shall increase to one hundred percent (100%) of the Offered Price. 

Notwithstanding the foregoing, (A) the remedies set forth in clauses (i), (ii) and (iii) above shall
not be available to the extent the failure of the Company to consummate timely the closing of the Subsequent Purchase or any Right of First Refusal, as applicable, is due to any act or omission of Seller or if Seller is in material breach of any of
the provisions of this Agreement and (B) the remedies set forth in clauses (ii) and (iii) above shall not be available to the extent the failure of the Company to consummate timely the closing of the Subsequent Purchase
or any Right of First Refusal, as applicable, is due to any order, injunction or other action of any governmental authority restraining or otherwise prohibiting the applicable closing; provided, that any such order, injunction or other action
shall not otherwise limit Seller’s ability to terminate this Agreement pursuant to clause (i) above. 
 5.
Representations and Warranties of Seller. Seller hereby represents and warrants to the Company as follows: 
 (a) Seller
has full power and authority to execute and deliver this Agreement and to perform Seller’s obligations hereunder. This Agreement has been duly authorized, executed, and delivered by Seller and constitutes the legal, valid, and binding
obligation of Seller, enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency, and general equitable principles. 
 (b) Seller is the holder of record or beneficially owns all of the Shares. 

 (c) Upon (i) delivery to the Company of certificates representing the Repurchase
Shares, duly endorsed by Seller for transfer to the Company, or (ii) confirmation reasonably acceptable to the Company of the transfer to the Company of any Repurchase Shares held by Seller in book-entry position, and upon Seller’s receipt
of payment therefor, Seller will have transferred to the Company good and marketable title to the Repurchase Shares, free and clear of all liens, encumbrances, claims of third parties, security interests, mortgages, pledges, agreements, options,
warrants, rights of first refusal and rights of others of any kind or nature whatsoever, whether or not filed, recorded or perfected. 
 (d) Seller is not a party to or subject to any suit or any administrative, arbitration or other proceeding with respect to the Shares or any judgment, decree or order entered in any suit or proceeding
brought by any governmental agency or other person enjoining or otherwise restraining or restricting Seller with respect to the Shares, and, to the best of Seller’s knowledge, no such suit or proceeding is threatened against Seller. 

(e) Other than any required filings under U.S. securities laws, Seller is not required to give any notice to, make any filing with, or
obtain any authorization, consent, or approval of any governmental or regulatory authority or any other person in order to consummate any transfer of the Shares to the Company. The execution, delivery and performance of this Agreement by Seller will
not violate, result in the breach of or constitute a default under any contract, instrument or other agreement to which Seller is bound. To the best of Seller’s knowledge, Seller has in all material respects owned and held the Shares in
accordance with all applicable laws and requirements of governmental authorities. 
 (f) As the former Chairman, President and
Chief Executive Officer of the Company, Seller was familiar with the condition (financial and otherwise), properties, assets, liabilities, business operation and prospects of the Company as of February 22, 2013. Seller has such knowledge and
experience in business and financial matters that Seller is capable of evaluating the merits and risks of the Repurchase and Right of First Refusal. 
 (g) Seller and his advisors have had an opportunity to ask questions of, and to receive information from, the Company and persons acting on its behalf concerning the terms of this Agreement and the terms
and conditions of the Repurchase and Right of First Refusal as set forth herein. Seller participated in the drafting and negotiation of, has carefully read and is familiar with this
Agreement. Seller acknowledges that he has had an
opportunity to consult with counsel and other advisors about this Agreement and the Repurchase and Right of First Refusal. Seller has received no representations or warranties from the Company, its affiliates, employees, agents or attorneys in
making his decision to enter into this Agreement, other than as set forth herein. 
 6. Representations and Warranties of the
Company. The Company represents and warrants to Seller as follows: 
 (a) The Company has full power and authority to
execute and deliver this Agreement and to perform its obligations hereunder and consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Company, and constitutes the legal, valid, and binding
obligation of the Company, enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, and general equitable principles. 

 (b) The Company is the issuer of the Shares. 

(c) Other than any required filings under U.S. securities laws, the Company is not required to give any notice to, make any filing with,
or obtain any authorization, consent, or approval of any governmental or regulatory authority or any other person in order to consummate the transfer of the Repurchase Shares. The execution, delivery and performance of this Agreement by the Company
will not violate, result in the breach of or constitute a default under any contract, instrument or other agreement to which the Company is bound, or result in the violation of any provision of its charter, bylaws or similar organizational
documents. 
 (d) The Company is not a party to or subject to any suit or any administrative, arbitration or other proceeding or
any judgment, decree or order entered in any suit or proceeding brought by any governmental agency or other person enjoining or otherwise restraining or restricting the Company with respect to the transactions contemplated hereby, and, to the best
of the Company’s knowledge, no such suit or proceeding is threatened against the Company. 
 7. Survival. All
representations and warranties of Seller and the Company contained in this Agreement shall survive indefinitely. 
 8.
Dividends and Distributions. Seller shall be entitled to receive all dividends and distributions paid by the Company in respect of the Shares to the extent the record date for such dividends and distributions is on or prior to the
consummation of the related purchase and sale of such Shares hereunder. 
 9. Miscellaneous Provisions. 

(a) Further Assurances. Each of the parties hereto shall take, or cause to be taken, all action, and to do, or cause to be done,
all things reasonably necessary, proper or advisable under applicable laws and existing agreements or otherwise reasonably required to be taken or done by it to consummate the transactions contemplated hereby in accordance with the terms hereof and
to more fully and effectively vest in the Company title to the Repurchase Shares, and upon any exercise of the Right of First Refusal, the Offered Shares. To the extent Seller delivers to the Company one or more certificates representing more than
the number of Shares required to sold to the Company hereunder, the Company shall promptly issue replacement certificates to Seller representing the remaining number of Shares not otherwise sold to the Company, and the Company shall update its stock
ledger and other stock transfer records to reflect the issuance of such replacement certificates. 
 (b) Successors and
Assigns. This Agreement will be binding upon and inure to the benefit of the parties to this Agreement and the successors and assigns of the parties hereto; provided, however, that, no rights, obligations or liabilities hereunder will be
assignable by any party without the prior written consent of the other parties. 
 (c) No Third Party Beneficiaries. This
Agreement is not intended to confer any rights or remedies hereunder upon, and will not be enforceable by, any other person or entity, other than the parties to this Agreement. 

 (d) Controlling Law. This Agreement shall be governed by, construed and enforced in
accordance with the laws of the State of Delaware, without giving effect to the choice of law provisions thereof. 
 (e)
Entire Agreement; Amendments; Waiver. This Agreement constitutes the entire contract between the parties hereto pertaining to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations,
and discussions, whether written or oral, of the parties. There are no representations, warranties, or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein. No supplement,
modification or waiver of this Agreement shall be binding unless executed in writing by the parties to be bound thereby. Any agreement on the part of the parties to waive any term or provision of this Agreement shall be valid only if set forth in an
instrument in writing signed on behalf of the party against whom the waiver is to be effective. No such waiver shall constitute a waiver of, or estoppel with respect to, any subsequent or other inaccuracy, breach or failure to strictly comply with
the provisions of this Agreement. 
 (f) Counterparts. This Agreement may be executed in one or more counterparts,
including by facsimile or other electronic delivery, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement. 
 (g) Notices. All notices and other communications hereunder shall be in writing and shall be deemed given (i) upon delivery, if delivered in person, (ii) upon receipt of written
confirmation of transmission, if transmitted by facsimile or other electronic communication (with written confirmation and a copy of the notice or other communication mailed by express courier or certified or registered mail, return receipt
requested) or (iii) one (1) business day after it is sent, if delivered by an express courier (with written confirmation), to the parties at the following addresses: 

If to the Company: 
  

					
		 	 Universal Insurance Holdings, Inc.

		 	1110 West Commercial Boulevard
		 	Fort Lauderdale, Florida 33309
		 	Attention:	  	    Stephen J. Donaghy
		 	Facsimile:	  	    (954) 958-1201
		 	E-mail:	  	    sdonaghy@universalproperty.com

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

 

					
		 	K&L Gates LLP
		 	1601 K Street, NW
		 	Washington, DC 20006
		 	Attention:	  	    Alan J. Berkeley
		 	Facsimile:	  	    (202) 778-9100
		 	E-mail:	  	    alan.berkeley@klgates.com

 If to Seller: 

 

					
		 	Bradley I. Meier
		 	229 Ocean Blvd.
		 	Golden Beach, Florida 33160
		 	Facsimile:	 	    (954) 958-1202

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

 

					
		 	Vedder Price P.C.
		 	222 North LaSalle Street
		 	Chicago, Illinois 60601
		 	Attention:	  	    Michael A. Nemeroff
		 	Facsimile:	  	    (312) 609-5005
		 	E-mail:	  	    mnemeroff@vedderprice.com

 (h) Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses. Seller and the Company shall pay their respective brokerage fees, commissions, and finder’s fees, if any, and shall
indemnify and hold the other party harmless from and against any and all other claims or liabilities for brokerage fees, commissions, and finder’s fees incurred by reason of any action taken by such party. Notwithstanding the foregoing, all
transfer and documentary taxes relating to the purchase and sale of the Shares hereunder shall be borne by the Company. 

[Signatures follow on the next page.] 

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

			
	UNIVERSAL INSURANCE HOLDINGS, INC.
		
	By:	 	 /s/ Sean P. Downes

	Name:	 	Sean P. Downes
	Title:	 	President and Chief Executive Officer
		
	By:	 	 /s/ Bradley I. Meier

		 	Bradley I. Meier

 Signature Page to Repurchase Agreement

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