Document:

exv10w2

 

EXHIBIT 10.2

FIRST AMENDMENT TO PROMISSORY NOTE 

     THIS FIRST AMENDMENT TO PROMISSORY NOTE (“First Amendment”), is made on this 10th day
of April, 2007, by Meadowbrook Insurance Group, Inc. (the “Borrower”) and LaSalle Bank
Midwest National Association, a national banking association (the “Lender”), and is based
upon the following:

     A. Borrower executed and delivered to Lender’s predecessor-in-interest, Standard Federal Bank
National Association, a certain Revolving Note dated November 12, 2004 (the “Promissory
Note”), and other documents (the “Loan Documents”), evidencing, securing or relating to
that certain Revolving Loan (the “Loan”) in the original principal sum of Twenty-Five
Million and 00/100 Dollars ($25,000,000.00).

     B. Lender and Borrower desire to amend the terms of the Promissory Note and Loan Documents to
(i) extend the Revolving Loan Maturity Date set forth in the Promissory Note from November 1, 2007
until September 30, 2010, and (ii) increase the principal amount available under the Promissory
Note from $25,000,000 to $35,000,000, all as more particularly provided herein.

     C. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in
the Promissory Note.

     Now, therefore, for good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged by each of Lender and Borrower, and further, in consideration of the mutual
covenants, promises, and agreements and subject to the terms, provisions, and conditions contained
herein, the parties agree as follows:

     1. Promissory Note.

          (a) The Revolving Loan Maturity Date set forth in the Promissory Note shall be extended from
November 1, 2007 until September 30, 2010, when all outstanding principal and interest and such
other obligations required by the Loan Documents shall be payable in full.

          (b) The reference to “TWENTY-FIVE MILLION and 00/100 DOLLARS ($25,000,000.00)” in the
Promissory Note is hereby deleted in its entirety and replaced with “THIRTY-FIVE MILLION and 00/100
DOLLARS ($35,000,000.00)”.

          (c) Except as specifically modified or amended by this First Amendment, the Promissory Note,
and all of the terms, covenants, conditions, and provisions thereof, are hereby ratified and
confirmed in their entirety and shall remain in full force and effect.

     2. Loan Documents.

          (a) The Loan Documents, which include any and all documents executed or delivered by Borrower
in connection with the Line of Credit, whether executed or delivered prior to, contemporaneously or
subsequent to the making of the Line of Credit, are hereby amended so that
any reference to the Promissory Note, wherever it appears in the Loan Documents shall be deemed to
also refer to this First Amendment.

 

 

          (b) Except as specifically modified or amended by this First Amendment, the Loan Documents,
and all of the terms, covenants, conditions, and provisions thereof, are hereby ratified and
confirmed in their entirety and shall remain in full force and effect.

     3. Miscellaneous.

          (a) This First Amendment shall be binding upon and shall inure to the benefit of the parties
hereby and their respective representatives, successors, and assigns.

          (b) The invalidity or unenforceability of a particular provision of this First Amendment shall
not affect the other provisions hereof, and this First Amendment shall be construed in all respects
as if such invalid or unenforceable provision were omitted.

     The undersigned have executed this First Amendment to Promissory Note on the date first above
written.

	 	 	 	 	 
	 	BORROWER:

MEADOWBROOK INSURANCE GROUP, INC.

 	 
	 	By:  	/s/ Karen Spaun
 	 
	 	 	Karen Spaun 	 
	 	 	Its: Sr. VP, Treasurer & CFOexv10w1xay

 

Exhibit 10.1(a)

Amendment to No. 2 to the Employment Agreement

     WHEREAS, KRATON Polymers LLC (the “Company”), a Delaware limited liability company, which is a
wholly owned subsidiary of Polymer Holdings LLC and George B. Gregory (the “Executive”) are parties
to an Employment Agreement dated November 1, 2004 (the “Employment Agreement”),

     WHEREAS, the parties desire to amend the Employment Agreement in the manner set forth below;

     RESOLVED, that the Employment Agreement be, and hereby is amended to provide a new Section
7(g) as follows:

          g.
Change in Control.

          (i) If the Executive’s employment is terminated by KRATON without Cause (other
than by reason of death or Disability) or by Executive’s resignation for Good Reason
within one (1) year following a Change in Control, Executive shall be entitled to
receive:

(A) at the times set forth in Section 7(a)(iii) hereof, the Accrued
Obligations;

(B) continuation of Executive’s annual Base Salary for a period of
eighteen months following such termination (the “Severance Continuation
Period”) which shall be paid at the same time and in the same manner as if
Executive had remained employed by KRATON during such period;

(C) 1.5 times Annual Bonus calculated at the target level payable as a lump
sum; and a pro rata portion of any Annual Bonus that Executive would have
been entitled to receive pursuant to Section 4 hereof in such year
calculated by taking the product of (a) his Target Annual Bonus multiplied
by (b) a fraction, the numerator of which is the number of days during which
the Executive was employed by the Company in the year of his termination and
the denominator of which is 365, as further adjusted to reflect the
then-current bonus accrual as it exists on the Company’s books as of the
date of Termination. All sums due under this sub-paragraph shall be payable
within thirty (30) days of Executive’s termination of employment; and

(D) all health benefits including medical, dental and vision for
Executive and his eligible dependents comparable to those health benefits
Executive participated in on the date of termination during the Severance
Continuation Period, provided in any case such health benefits shall cease
if Executive becomes entitled to health benefits from a new employer.
KRATON may provide such health benefits by paying the Executive’s COBRA
continuation coverage through such Severance Continuation Period.

 For purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the
following events:

	 	(i)	 	any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all of the assets of the Company, Polymer Holdings, or TJ Chemical
Holdings (together, the

 

 

	 	 	 	“Entities”) to any Person or group of related persons (a “Group”) for purposes of Section
13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), together with any
affiliates thereof other than to TPG III Polymer Holdings LLC, TPG IV Polymer Holdings
LLC or J.P. Morgan Partners LLC or any of their affiliates (hereinafter the “Sponsors”);
	 
	 	(ii)	 	the complete liquidation or dissolution of any of the Entities;
	 
	 	(iii)	 	(A) any Person or Group (other than the Sponsors) shall become the beneficial owner
(within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, of
equity interests of an Entity representing more than 40% of the aggregate outstanding
voting equity interests of such Entity and such Person or Group actually has the power to
vote such equity interests in any such election and (B) the Sponsors beneficially own
(within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the
aggregate a lesser percentage of the voting equity interests of an Entity than such other
Person or Group;
	 
	 	(iv)	 	the replacement of a majority of the board of directors of an Entity over a two-year
period from the directors who constituted such board at the beginning of such period, and
such replacement shall not have been approved by a vote of at least a majority of the board
then still in office who either were members of such board at the beginning of such period
or whose election as a member of such board was previously so approved or who were
nominated by, or designees of, the Sponsors; or
	 
	 	(v)	 	a merger or consolidation of an Entity with another entity in which holders of the
equity interests of the Entity immediately prior to the consummation of the transaction
hold, directly or indirectly, immediately following the consummation of the transaction,
less than 50% of the common equity interest in the surviving corporation in such
transaction and the Sponsors do not hold a sufficient amount of voting equity interests to
elect a majority of the surviving entity’s board of directors.

                                   (ii) The payments and benefits described in subparagraphs (B) — (D) above shall be subject to
and conditioned upon the Executive’s execution and delivery of a valid and effective general
release and waiver, in a form satisfactory to the Company, waiving all claims the Executive may
have against the Company, its affiliates and their respective executives, directors, partners,
members, shareholders, successors and assigns. Following Executive’s termination of employment by
the Company as a result of a Change in Control, Executive shall have no further rights to any
compensation or any other benefits in the nature of severance or termination pay or in connection
with the termination of his employment.

     IN
WITNESS WHEREOF, the parties have executed this Amendment, effective as of April 9, 2007.

	 	 	 
	KRATON POLYMERS LLC

	 	GEORGE B. GREGORY
	 
	 	 
	/s/ Richard Ott

	 	/s/ George B. Gregory
	 

	 	 
	By:      Richard Ott
	 	 
	Title:   Vice President - HRexv10w5xay

 

Exhibit 10.5(a)

Amendment to No. 2 to the Employment Agreement

     WHEREAS, KRATON Polymers LLC (the “Company”), a Delaware limited liability company, which is a
wholly owned subsidiary of Polymer Holdings LLC and Richard Ott (the “Executive”) are parties to an
Employment Agreement dated April 12, 2004 (the “Employment Agreement”),

     WHEREAS, the parties desire to amend the Employment Agreement in the manner set forth below;

     RESOLVED, that the Employment Agreement be, and hereby is amended to provide a new Section
7(g) as follows:

          h.
Change in Control.

          (i) If the Executive’s employment is terminated by KRATON without Cause (other
than by reason of death or Disability) or by Executive’s resignation for Good Reason
within one (1) year following a Change in Control, Executive shall be entitled to
receive:

(A) at the times set forth in Section 7(a)(iii) hereof, the Accrued
Obligations;

(B) continuation of Executive’s annual Base Salary for a period of
twelve months following such termination (the “Severance Continuation
Period”) which shall be paid at the same time and in the same manner as if
Executive had remained employed by KRATON during such period;

(C) 1.0 times Annual Bonus calculated at the target level payable as a lump
sum; and a pro rata portion of any Annual Bonus that Executive would have
been entitled to receive pursuant to Section 4 hereof in such year
calculated by taking the product of (a) his Target Annual Bonus multiplied
by (b) a fraction, the numerator of which is the number of days during which
the Executive was employed by the Company in the year of his termination and
the denominator of which is 365, as further adjusted to reflect the
then-current bonus accrual as it exists on the Company’s books as of the
date of Termination. All sums due under this sub-paragraph shall be payable
within thirty (30) days of Executive’s termination of employment; and

(D) all health benefits including medical, dental and vision for
Executive and his eligible dependents comparable to those health benefits
Executive participated in on the date of termination during the Severance
Continuation Period, provided in any case such health benefits shall cease
if Executive becomes entitled to health benefits from a new employer.
KRATON may provide such health benefits by paying the Executive’s COBRA
continuation coverage through such Severance Continuation Period.

 For purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the
following events:

	 	(vi)	 	any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all of the assets of the Company, Polymer Holdings, or TJ Chemical
Holdings (together, the

 

 

	 	 	 	“Entities”) to any Person or group of related persons (a “Group”) for purposes of Section
13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), together with any
affiliates thereof other than to TPG III Polymer Holdings LLC, TPG IV Polymer Holdings
LLC or J.P. Morgan Partners LLC or any of their affiliates (hereinafter the “Sponsors”);
	 
	 	(vii)	 	the complete liquidation or dissolution of any of the Entities;
	 
	 	(viii)	 	(A) any Person or Group (other than the Sponsors) shall become the beneficial owner
(within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, of
equity interests of an Entity representing more than 40% of the aggregate outstanding
voting equity interests of such Entity and such Person or Group actually has the power to
vote such equity interests in any such election and (B) the Sponsors beneficially own
(within the meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the
aggregate a lesser percentage of the voting equity interests of an Entity than such other
Person or Group;
	 
	 	(ix)	 	the replacement of a majority of the board of directors of an Entity over a two-year
period from the directors who constituted such board at the beginning of such period, and
such replacement shall not have been approved by a vote of at least a majority of the board
then still in office who either were members of such board at the beginning of such period
or whose election as a member of such board was previously so approved or who were
nominated by, or designees of, the Sponsors; or
	 
	 	(x)	 	a merger or consolidation of an Entity with another entity in which holders of the
equity interests of the Entity immediately prior to the consummation of the transaction
hold, directly or indirectly, immediately following the consummation of the transaction,
less than 50% of the common equity interest in the surviving corporation in such
transaction and the Sponsors do not hold a sufficient amount of voting equity interests to
elect a majority of the surviving entity’s board of directors.

                                   (ii) The payments and benefits described in subparagraphs (B) — (D) above shall be subject to
and conditioned upon the Executive’s execution and delivery of a valid and effective general
release and waiver, in a form satisfactory to the Company, waiving all claims the Executive may
have against the Company, its affiliates and their respective executives, directors, partners,
members, shareholders, successors and assigns. Following Executive’s termination of employment by
the Company as a result of a Change in Control, Executive shall have no further rights to any
compensation or any other benefits in the nature of severance or termination pay or in connection
with the termination of his employment.

     IN
WITNESS WHEREOF, the parties have executed this Amendment,
effective as of April 9, 2007.

	 	 	 
	KRATON POLYMERS LLC

	 	RICHARD OTT
	 
	 	 
	/s/
George B. Gregory

	 	/s/ Richard Ott
	 

	 	 
	By:
   George B. Gregory
	 	 
	Title:
President and Chief Executive Officer

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