Document:

exhibit1034a

1    SIXTH AMENDMENT TO  ADMINISTRATOR AGREEMENT    THIS SIXTH AMENDMENT TO ADMINISTRATOR AGREEMENT (this “Sixth Amendment”), is entered  into this 4th day of November, 2020, (the “Execution Date”) by and among SageSure Insurance Managers,  LLC  (“Administrator”) and FedNat  Insurance Company  (the “Company”). Capitalized  terms used  in this  Sixth Amendment and not otherwise defined have the meanings ascribed to them in Exhibit D attached  hereto and made a part of the Agreement.    WHEREAS, Administrator and Company entered into that certain Administrator Agreement, as of  June 28, 2013 (the “Agreement”), and    WHEREAS, Administrator and Company desire to make certain amendments to the Agreement as  more particularly described herein.  AGREEMENT    NOW  THEREFORE,  in  consideration  of  the  foregoing  and  the  representations,  warranties,  covenants and agreements contained herein, and for other good and valuable consideration, the receipt  and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:  1. Section 6(D) will be deleted in its entirety and replaced with the following:    (D) The  Administrator  shall  only  have  the  authority  to  prepare  online  transfers  against  the  Program Bank Account, for the following purposes:    a) Payment of monies due  insureds  in connection with return premiums and endorsements  relating to Insurance produced under this Agreement;  b) Refund of monies received in account for policies related to other insurance carriers;  c) Payments of amounts due the Administrator in accordance with Exhibit B of this Agreement  including  ITD  Profit  Participation  from  the  Program Bank Account,  including  for  interest  earned by the Program Bank Account; and,  d) Payments to the Company.    Consistent  with  Administrator’s  reporting  obligations  under  this  Agreement,  the  Administrator shall furnish supporting documentation for all transfers from the Program Bank  Account.    2. Company  and Administrator  agree  to modify  Exhibit  B  – Administrator  Compensation  to  reflect the following:    a) Profit  Sharing  as  defined  in  Exhibit  B,  Section  E  for  the  period  from  inception  of  the  Agreement through June 30, 2020 is unchanged.    b) Profit Sharing as defined in Exhibit B, Section E for the period from July 1, 2020 and thereafter  is superseded by:  _______________________  Certain identified information has been omitted from this exhibit because it is not material and would be  competitively harmful if publicly disclosed.  Redactions are indicated by [***].  

 

2    i. Quota  Share  agreement(s)  between  Company  and  Administrator’s  affiliates  until  terminated  at which  time  this  Agreement will  revert  to  Profit  Sharing  as  currently  defined;  ii. Released Profit Participation from Company to Administrator on a monthly basis; and,  iii. Reimbursed Profit Participation Deficits  from Administrator  to Company as mutually  agreed.  c) Provisional Commission in Exhibit B, Section A for the period from July 1, 2020 and thereafter  is changed to [***]%.    The parties will endeavor to amend and restate Exhibit B in its entirety before December 31,  2020 to fully reflect this intent and other terms as mutually agreed.    3. Company must not restrict new business or compel non‐renewals so long as the new business  or renewals are consistent with the mutually agreed upon projected portfolio that was the  basis  for  the  current  treaty  year  reinsurance purchase unless  (a) directly  compelled by  a  regulator or rating agency; or (b) as a direct result of Administrator Underperformance (as  defined  in Exhibit D).   For sake of clarity, nothing  in this paragraph will be construed to be  more  restrictive  on  the  Administrator  than  the  existing  Agreement  and  its  executed  amendments.      4. All  provisions  of  the  Agreement  not  otherwise  amended  or modified  herein  are  hereby  ratified and shall remain in full force and effect.                IN WITNESS WHEREOF,  the  parties  have  hereto  executed  this  Sixth  Amendment  as  of  the  Execution Date set forth above.  SageSure Insurance Managers, LLC      FedNat Insurance Company    By:   /s/ Terrence McLean        By:  /s/ Michael Braun      Name:  Terrence McLean        Name:  Michael Braun        Title:  President & CEO        Title:    CEO & President      Date:   November 3, 2020        Date:   November 3, 2020    

 

3    EXHIBIT D  DEFINITIONS    “ITD  Profit  Participation”  is  the  (a)  ITD  Profit  as  calculated  in  Exhibit  B  for  the  period  beginning  December 1, 2020 and continuing thereafter; times (b) the larger of either [***]% or subscribing quota  share  percentage  by  Administrator’s  affiliates.    For  sake  of  clarity,  if  the  ITD  Profit  is  negative,  the  calculation herein prevails.  “Administrator  Underperformance”  is  a  specifically‐defined  deficiency  in  the  performance  of  Administrator that is provided with written notice from Company to Administrator and remains not cured  with rate increase filings or eligibility guideline changes for 90 days.exhibit1047b

1    AMENDMENT   TO  EMPLOYMENT AGREEMENT      THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is entered into  effective as of November 4, 2020 (the “Amendment Effective Date”) by and between:    (i) Ronald A. Jordan (the “Executive”); and    (ii) FEDNAT HOLDING COMPANY, a Florida corporation (the "Company").    P R E L I M I N A R Y   S T A T E M E N T    WHEREAS, the Company and the Executive are parties to (i) an Employment Agreement dated as of  January 8, 2019 (the “Employment Agreement”); and (ii) a Confidential Information, Non-Solicitation and Non- Competition Agreement dated as of April 17, 2017 (the “Restrictive Covenant Agreement”); and    WHEREAS, the Company and the Executive desire to amend the Employment Agreement as set forth  herein.    NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for  other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the  parties hereto hereby agree as follows:    1. Capitalized Terms.  Capitalized terms used but not defined in this Amendment shall have the meanings  as set forth in the Employment Agreement.    2. Amendment to Section 2 of Employment Agreement.  Section 2 of the Employment Agreement is  hereby amended and restated in its entirety as follows:    “The Executive shall continue to serve as the Company’s Chief Financial Officer and be  employed for a period of two (2) years beginning on the Amendment Effective Date (the “Term”);  provided, however, that the Term of this Agreement shall automatically be extended so that at all times  the balance of the Term shall not be less than two (2) years unless sooner terminated as provided  herein.”    3. Effect of Amendment.  Except as expressly set forth in this Amendment, the provisions of the  Employment Agreement and the Restrictive Covenant Agreement shall be unmodified and remain in full force  and effect.        4. Injunction.  It is recognized and hereby acknowledged by the parties hereto that a breach by the  Executive of this Amendment will cause irreparable harm and damage to the Company, the monetary amount of  which may be virtually impossible to ascertain.  As a result, the Executive recognizes and hereby acknowledges  that the Company shall be entitled to an injunction from any court of competent jurisdiction enjoining and  restraining any violation of this Amendment by the Executive or any of his affiliates, associates, partners or  agents, either directly or indirectly, and that such right to injunction shall be cumulative and in addition to  whatever other remedies the Company may possess.    5. Entire Agreement; Conflict with Restrictive Covenant Agreement.  This Amendment, the Employment  Agreement, and the Restrictive Covenant Agreement constitute the entire agreement between the parties hereto  

 

2    with respect to the subject matter hereof and supersede all prior negotiations, letters and understandings relating  to the subject matter hereof.  If any provision of this Amendment shall conflict with the Employment Agreement  or the Restrictive Covenant Agreement, the terms of this Amendment shall control.    6. Amendment.  This Amendment may not be amended, supplemented or modified in whole or in part  except by an instrument in writing signed by the party or parties against whom enforcement of any such  amendment, supplement or modification is sought.    7. Choice of Law.  This Amendment will be interpreted, construed and enforced in accordance with the  laws of the State of Florida, without giving effect to the application of the principles pertaining to conflicts of  laws.    8. Effect of Waiver.  The failure of any party at any time or times to require performance of any provision  of this Amendment will in no manner affect the right to enforce the same.  The waiver by any party of any  breach of any provision of this Amendment will not be construed to be a waiver by any such party of any  succeeding breach of that provision or a waiver by such party of any breach of any other provision.    9. Severability.  The invalidity, illegality or unenforceability of any provision of this Amendment will not  affect any other provision of this Amendment, which will remain in full force and effect, nor will the invalidity,  illegality or unenforceability of a portion of any provision of this Amendment affect the balance of such  provision.  In the event that any provision of this Amendment shall for any reason be held to be invalid, illegal  or unenforceable in any respect, the parties agree that this Amendment shall be modified, reformed, construed  and enforced so that such invalid, illegal or unenforceable provision is enforceable and comes closest to  expressing the intention of the unenforceable provision.    10. Enforcement.  Should it become necessary for any party to institute legal action to enforce the terms and  conditions of this Amendment, the successful party will be awarded reasonable attorneys' fees at all trial and  appellate levels, expenses and costs.  Any suit, action or proceeding with respect to this Amendment shall be  brought in the courts of Broward County in the State of Florida or in the U.S. District Court for the Southern  District of Florida.  Each party hereto consents to service of process by any means authorized by the applicable  law of such forum and each party irrevocably waives, to the fullest extent each may effectively do so, the  defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.     Venue for any such action, in addition to any other venue permitted by statute, will be Broward County,  Florida.  The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that  any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or  relating to this Amendment or any judgment entered by any court in respect thereof brought in Broward County,  Florida, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in Broward  County, Florida, has been brought in an inconvenient forum.    11. Assignment; Binding Effect.  This Amendment may not be assigned by the Executive.  This  Amendment may be assigned by the Company, in whole or in part, without the consent of the Executive.  This  Amendment shall be binding upon and inure to the benefit of the parties, and their heirs, personal  representatives, successors and permitted assigns.    12. Counterparts.  This Amendment may be executed in one or more counterparts, including by facsimile or  other electronic transmission, each of which shall be deemed an original, but all of which together shall  constitute one and the same instrument.    13. Notice.  Any notice required or permitted to be delivered hereunder shall be deemed to be delivered  when sent by facsimile with receipt confirmed or when deposited in the United States mail, postage prepaid,  

 

3    registered or certified mail, return receipt requested, or by overnight courier, addressed to the Executive at the  address currently on record with the Company and to the Company at 14050 N.W. 14th Street, Suite 180,  Sunrise, FL  33323, or to such other address as either party hereto shall from time to time designate to the other  party by notice in writing as provided herein.    14. Voluntary Execution.  Executive acknowledges that he has read and understands this Amendment, has  had an opportunity to consult with an attorney, and signs this Amendment voluntarily, without coercion, based  upon his own judgment and not in reliance upon any representations or promises other than those set forth  herein.     IN WITNESS WHEREOF, this Amendment has been duly signed by the parties hereto effective as of the  Amendment Effective Date.         FEDNAT HOLDING COMPANY           By: /s/ Michael H. Braun          Name: Michael H. Braun       Title: Chief Executive Officer      EXECUTIVE            /s/ Ronald A. Jordan          Name:  Ronald A. Jordan

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