Document:

cnfr-ex1025_196.htm

Exhibit 10.25

 

AMENDMENT TO PROMISSORY NOTE

 

 

This Amendment to Promissory Note (“Amendment”) is dated June 19, 2020 (and is effective as of June 19, 2020), and made by and between CONIFER HOLDINGS, INC. (“Borrower”), and THE HUNTINGTON NATIONAL BANK (“Lender”).

 

W IT N E S S ET H:

 

WHEREAS, Borrower has executed and delivered that certain Promissory Note dated as of June 21, 2018, in the original principal amount of Ten Million Dollars ($10,000,000) payable to Lender, as amended (the “Note”);

 

WHEREAS, Borrower and Lender desire to amend the Note as set forth herein; NOW, THEREFORE, the parties agree as follows:

	
 
	
1.
	
The Maturity Date of the Note is now June 18, 2021.

	
 
	
2.
	
The definitions of LIBO Rate and Replacement Index in the Note are amended to read as follows: “LIBO Rate” shall mean the rate obtained by dividing: (1) the actual or estimated per
	
 

annum rate, or the arithmetic mean of the per annum rates, of interest for deposits in U.S. dollars in the London interbank market for the related LIBO Rate Interest Period, as determined by Bank in its discretion based upon reference to information which appears on page LIBOR01, captioned ICE Benchmark Administration Interest Settlement Rates, of the Reuters America Network, a service of Reuters America Inc. (or such other page that may replace that page on that service for the purpose of displaying London interbank offered rates; or, if such service ceases to be available or ceases to be used by Bank, such other reasonably comparable money rate service as Bank may select) or upon information obtained from any other reasonable procedure, as of two Business Days prior to the first day of a LIBO Rate Interest Period; by (2) an amount equal to one minus the stated maximum rate (expressed as a decimal), if any, of all reserve requirements (including, without limitation, any marginal, emergency, supplemental, special or other reserves) that is specified on the first day of each LIBO Rate Interest Period by the Board of Governors of the Federal Reserve System (or any successor agency thereto) for determining the maximum reserve requirement with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D of such Board) maintained by a member bank of such System, or any other regulations of any governmental authority having jurisdiction with respect thereto as conclusively determined by Bank. Subject to any maximum or minimum interest rate limitation specified herein or by applicable law, any variable rate of interest on the obligation evidenced hereby shall change automatically, without notice to the Borrower, on the first day of each LIBO Rate Interest Period. The interest rate change will not occur more often than each month. The reference sources for the index used by Bank, as stated in this Note, may quote the index on any given day to as many as 5 places to the right of the decimal point. Therefore, the index value used to calculate the interest rate on and the amount of interest due under this Note will be up to 5 places to the right of the decimal point. Notwithstanding the foregoing, if the LIBO Rate shall be less than one half of one percent (1/2%), such rate shall be deemed to be one half of one percent (1/2%) for purposes of this Note.

 

“Replacement Index” means the sum of: (x) the alternate index rate (which may be based on the Secured Overnight Financing Rate) that has been selected by Bank and (y) the adjustment factor (which may be a positive or negative value or zero) that has been selected by Bank; provided, that if the Replacement Index is less than one half of one percent (1/2%), it shall be deemed to be one half of one percent (1/2%) for purposes of this Note. In making such selections, Bank shall give due consideration to (i) any selection or recommendation by the Federal Reserve Board and/or the Federal Reserve Bank of New York (or a committee officially endorsed or

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convened  thereby)  or  any  successor  thereto  or  (ii)  any  evolving  or  then-prevailing  market convention for such rate or adjustment.”

 

	
 
	
3.
	
This Amendment may be executed in counterparts, each of which shall constitute an original and all of which shall together constitute one and the same Amendment.
	
 

 

	
 
	
4.
	
Capitalized terms not defined herein shall have the meanings ascribed to them in the Note.

 

	
 
	
5.
	
Borrower  is  responsible  for  all  costs  incurred  by  Lender,  including,  without  limitation,  reasonable attorneys’ fees, with regard to the preparation and execution of this Amendment.
	
 

 

	
 
	
6.
	
The execution of this Amendment shall not be deemed to be a waiver of any Event of Default.

 

	
 
	
7.
	
This Amendment is not an agreement to any further or other amendment of the Note.

 

	
 
	
8.
	
Borrower expressly acknowledges and agrees that except as expressly amended by this Amendment, the Note, as amended, remains in full force and effect and is ratified, confirmed and restated.
	
 

 

[Remainder of Page Left Intentionally Blank]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth above.

 

All signatures on file

 

 

LENDER:BORROWER:

 

THE HUNTINGTON NATIONAL BANKCONIFER HOLDINGS, INC.

 

 

 

 

	
 
	
By:
	
By:  Andrew R. CraigBrian Roney
	
 

 

Its: Senior Vice PresidentIts:President

 

 

 

	
 
	
By: 
	
 Nicholas Petcoff
	
 

 

Its:Executive Vice-President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment to Promissory Note (16786071]cnfr-ex1026_197.htm

Exhibit 10.26

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (“Amendment”), is made

as of the 19th day of June, 2020 (and is effective as of June 19, 2020), by and among CONIFER HOLDINGS, INC. (“Borrower”) and THE HUNTINGTON NATIONAL BANK (“Bank”).

 

RECITALS:

 

A.Borrower and Bank entered into a Credit Agreement dated as of June 21, 2018, as amended by three Amendments (“Agreement”).

 

B.Borrower and Bank desire to amend the Agreement, all as set forth below. NOW, THEREFORE, the parties agree as follows:

1.The definition of Revolving Credit Maturity Date in Section 1.1 of the Agreement is amended to read as follows:

 

“Revolving Credit Maturity Date” shall mean June 18, 2021.”

 

	
 
	
2.
	
Section 2.12 of the Agreement is amended to read as follows:

 

“2.12 Paydown. Borrower shall reduce to Zero Dollars ($0) the Advances under the Revolving Credit Note for thirty (30) consecutive days during the period beginning on June 18, 2020 and ending June 18, 2021.”

 

3.Borrower hereby represents and warrants that, after giving effect to the amendments contained herein, (a) execution, delivery and performance of this Amendment and any other documents and instruments required under this Amendment or the Agreement are within its corporate powers, have been duly authorized, are not in contravention of law or the terms of such Borrower’s Articles of Incorporation or Bylaws and do not require the consent or approval of any governmental body, agency, or authority; and this Amendment and any other documents and instruments required under this Amendment or the Agreement, will be valid and binding in accordance with their terms; (b) the continuing representations and warranties of Borrower set forth in the Agreement are true and correct on and as of the date hereof with the same force and effect as made on and as of the date hereof; (c) except as previously disclosed by Borrower to Bank, no Event of Default (as defined in the Agreement) or condition or event which, with the giving of notice or the running of time, or both, would constitute an Event of Default under the Agreement, as hereby amended, has occurred and is continuing as of the date hereof.

 

4.Borrower hereby waives, discharges, and forever releases Bank, Bank’s employees, officers, directors, attorneys, stockholders and successors and assigns, from and of any and all claims, causes of action, allegations or assertions that Borrower has or may have had at any time up through and including the date of this Amendment, against any or all of the foregoing, regardless of whether any such claims, causes of action, allegations or assertions arose

 

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as a result of Bank’s actions or omissions in connection with the Agreement, or any amendments, extensions or modifications thereto, or Bank’s administration of debt evidenced by the Agreement or otherwise.

 

5.Except as expressly provided herein, all of the terms and conditions of the Agreement remain unchanged and in full force and effect.

 

6.This Amendment shall be effective as of June 19, 2020 upon (a) execution of this Amendment by Borrower and Bank and (b) payment by Borrower to Bank of a non-refundable amendment fee in the amount of $10,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS the due execution hereof as of the day and year first above written.

 

THE HUNTINGTON NATIONAL BANKCONIFER HOLDINGS, INC.

 

All signatures on file

 

 

	
 
	
By:
	
By:  Andrew R. CraigBrian Roney
	
 

 

Its: Senior Vice PresidentIts:President

 

 

 

 

	
 
	
By: 
	
 Nicholas Petcoff
	
 

 

Its:Executive Vice-President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Fourth Amendment to Credit Agreement (16786069)ex_195896.htm

 

Exhibit 10.1

 

Offer of Employment between the Company and Michael Hotta, dated April 24, 2020

 

	Name:	Michael Hotta
	Job Title: 	Chief Financial Officer (CFO)
	Reports To: 	Chief Executive Officer (CEO)
	Offer Date:	April 21,2020
	Start Date:	May 26, 2020

 

 

Primary Responsibilities

 

The Chief Financial Officer is responsible for managing the accounting operations of the Company, including the preparation of periodic financial reports, maintenance of the system of accounting controls, policies and procedures, monitoring of budgets, and filing of all regulatory reports with the Securities and Exchange Commission ("SEC"). The Chief Financial Officer will ensure that the Company's reported financial results are in compliance with generally accepted accounting principles and will coordinate all quarterly reviews and annual audits with the Company's internal and external auditors.

 

In addition, the CFO's responsibilities will also include cash and risk management and tax reporting. The CFO will also actively participate and assist in the Company's business initiatives including real estate development activities, community relations, and project management.

 

The primary place of employment will be at the Company's corporate office at 200 Village Road in the Kapalua Resort. The expectations are that the CFO will be on Maui at least 3-4 days per week.

 

It is understood by the parties that the specific duties and responsibilities of the CFO are subject to modification, supplementation, change or deletion by the Chief Executive Officer ("CEO").

 

During the term of employment, the CFO shall provide services exclusively on behalf of the Company and shall render services to no other person, organization or company, except as may be approved in writing by the CEO or other officers of the Company.

 

Compensation

 

Your annual base salary will be $190,000. You will also be eligible to participate in the Company's 2019

Equity and Incentive Award Plan (the "Plan"), effective as of, and to be pro-rated, upon your achieving proficiency in and being capable of preparing and filing the Company's periodic SEC reports on your own. This determination will be made by the Company's CEO, at his full discretion. Your initial annual incentive target is 35% of your annual salary or $66,500, and your long-term incentive target is 35% of your annual salary or $66,500. Both the annual incentive and the long-term incentive awards are paid in restricted stock units (RSUs). The annual incentive is paid following the Compensation Committee's approval, which typically happens in February of each year, and the entire RSUs vest immediately. The long-term incentive is also awarded in the February timeframe and has a 3-year vesting period, meaning that it will vest ratably over 12 quarters. In total, your target total annual direct compensation is $323,000.

 

Your compensation shall be paid in accordance with the Company's regular pay practices. All compensation shall be subject to applicable withholdings and deductions.

 

 

Benefits

 

You may participate in the benefit plans and programs currently provided by the Company including medical, dental and vision coverage with the Company covering the premiums of the lowest cost plan; flexible spending account; group life insurance, accidental death and dismemberment coverage; travel accident insurance; temporary and long-term disability insurance; 401(k) plan; and other benefit plans generally available commensurate with your position.

 

 

 

 

Paid Time Off

 

Fifteen days of paid time off in your first year, which accrues at 4.615 hours per pay period.

 

Executive Severance Plan

 

The Company maintains an Executive Severance Plan, or Severance Plan, to retain key executives and encourage such executives to use their best business judgment in managing the affairs of the Company. The Severance Plan is administered by our Compensation Committee and provides certain severance benefits in the event an executive is involuntary terminated. The Severance Plan generally covers the Company's named executive officers, which includes the CFO.

 

Your coverage under the Severance Plan needs to be approved by the Compensation Committee and will be brought before them for consideration in February 2021. We will consider the initial period of your employment, from the start date until February 2021, as a probationary period to determine your capabilities to grow into the Chief Financial Officer position.

 

Confidential Information

 

During your employment with the Company and at all times after termination of such employment, regardless of the reason for such termination, you shall hold all Confidential Information relating to the Company in strict confidence and shall not use, disclose or otherwise communicate the Confidential Information to anyone other than the Company without the prior written consent of the Company. "Confidential Information" includes, without limitation, business, operations and financial information (such as costs, profits and plans for future expansion or development, plans for rendering additional services, methods of operation and marketing concepts of Company, as well as employment policies and plans), trade secrets and other proprietary business information of the Company. "Confidential Information" shall not include information that is or becomes in the public domain through no action by you or information that is generally disclosed by the Company to third parties without restrictions on such third parties. Upon termination of employment, you shall return all Confidential Information to the Company.

 

Code of Business Conduct and Ethics

 

In accordance with the Company’s Code of Business Conduct and Ethics (“Code”), all employees are required to annually sign an acknowledgment stating that they have reviewed, understand and agree to comply with the Code. The Code can be reviewed on the Company’s website: http://mauiland.com/documents/MLPCodeofBusinessConductandEthics20150101.pdf

 

Arbitration

 

In the event of a dispute arising out of the terms and conditions of this Offer of Employment, such dispute shall, absent settlement of the parties, be promptly resolved by final and binding arbitration in the State of Hawaii in accordance with the provisions of the Hawaii Uniform Arbitration Act, Hawaii Revised Statutes, Chapter 658A, by a single arbitrator mutually agreed upon by the parties. The arbitrator shall be required to abide by the provisions of this Offer of Employment and the arbitrator shall not modify or alter same. A judgment upon the award may be entered in any court having jurisdiction of the parties.

 

In arbitration, each party shall bear the costs, fees and expenses of presenting its own case, and one-half of the arbitrator's fees and administration expenses, unless otherwise ordered by the arbitrator for cause shown.

 

Pre-Employment Testing

 

This offer of employment is contingent upon the candidate’s successful completion of the Company’s pre-employment testing and screening.

 

Severability

 

Each provision in this Offer of Employment is separate. If necessary to effectuate the purpose of a particular provision, the Offer of Employment, in whole or in part, is held to be invalid or unenforceable, the parties agree that any such provision shall be deemed modified to make such provision enforceable to the maximum extent permitted by applicable law. As to any provision held to be invalid or unenforceable, the remaining provisions of this Offer of Employment shall remain in effect.

 

 

 

 

Offer of Employment is accepted this 24 day of April 2020.

 

	Signature:	/s/ Michael S. Hotta	 
	 	 	 
	Name:	Michael S. Hotta	 
	 	 	 
	 	 	 
	 	 	 
	Maui Land & Pineapple Company, Inc.	 
	 	 	 
	 	 	 
	/s/ Warren H. Haruki	 
	Warren H. Haruki	 
	Chief Executive Officer

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