Document:

Amendment, dated March 30, 2015, to Amended and Restated Employment Agreement

 Exhibit 10.1 
  

 
 March 30, 2015 

Michael D. Hershberger 
 4100 Misty Valley Drive 

Middleton, Wisconsin 53562 
 Dear Mike, 

We are conducting a search to fill the role of Chief Financial Officer of Health Insurance Innovations, Inc. (“HII”). As we discussed, you
will be considered among the pool of potential candidates to fill this position. 
 During this period, I am pleased to offer you the position of interim
Chief Financial Officer of HII on the terms and subject to the conditions contained in this letter and in the Amended and Restated Employment Agreement, dated as of November 13, 2013, by and between HII and you (your “Employment
Agreement”). 
 The terms of this offer are as follows: 
  

	1.	Title. During the Interim Period (as defined below), your title will be interim Chief Financial Officer. 

  

	2.	Interim Period. The period during which you will hold the role of interim Chief Financial Officer will begin on the effective date of the resignation of HII’s current Chief Financial Officer and conclude on
the date this position is filled on a permanent basis. 

  

	3.	Reporting; Duties and Powers. During the Interim Period, you will report directly to the Chief Executive Officer of HII, and will perform such duties and exercise such powers which the Chief Executive Officer and
the Board of Directors of HII may assign to you from time to time in your capacity as interim Chief Financial Officer. Without limiting the generality of the foregoing, in your capacity as interim Chief Financial Officer, you will be designated as
the “principal financial officer” and the “principal accounting officer” of the Company. 

  

			
	

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	4.	Location. During the Interim Period, your duties will be performed primarily at HII’s home office in Tampa, Florida, subject to reasonable travel requirements on HII’s behalf. 

 

	5.	Salary. Effective March 30, 2015, your Salary (as defined in your Employment Agreement) will be increased to $29,166.67 per month (i.e., an annual rate of $350,000). At the conclusion of the Interim Period,
your salary will revert to $20,833.33 per month (i.e., an annual rate of $250,000), unless you are appointed to the position of Chief Financial Officer. 

  

	6.	2015 Management Bonus Program: For calendar year 2015, you will be eligible to participate in HII’s management bonus program (“MBP”) in such amounts, on such terms and subject to such
conditions as determined by the Compensation Committee of HII. For calendar year 2015, your target bonus under the MBP will be equal to $192,500; provided, that you will be paid a minimum bonus of $25,000 for calendar year 2015 no later than
March 15, 2016 if you are employed by HII at such time. 

  

	7.	Retention Bonus. During the Interim Period, you will accrue $5,000 per month, pro-rated for any partial month at the beginning or end of the Interim Period (the aggregate of such amounts, the
“Retention Bonus”). The Retention Bonus will be payable to you as follows: 

  

	 	a.	If the Interim Period is less than six (6) months, you will be paid as follows: (i) $50,000 if you are not appointed to the position of Chief Financial Officer of the Company, or (ii) the amount of the
Retention Bonus accrued during the Interim Period if you are appointed to the position of Chief Financial Officer of HII. Such payment will be made to you in a lump sum following the end of the Interim Period in accordance with HII’s customary
payroll practices. 

  

	 	b.	 If the Interim Period is longer than six (6) months you will be paid (i) $30,000 at the end of the initial six (6) month period, and
(ii) as applicable (A) for subsequent periods of less than six (6) months, the amount of the Retention Bonus 

  

			
	

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accrued during such period or (B) $30,000 at the end of each subsequent six (6) month period; provided, that the minimum aggregate Retention Bonus for which you shall be eligible if you
are not appointed to the position of Chief Financial Officer of HII will be at least $50,000. Such payments will be made to you in lump sums following the end of the applicable periods and at the end of the Interim Period in accordance with
HII’s customary payroll practices. 

 Please note the following: 

 

	 	a.	If during the Interim Period your employment is terminated for Cause (as defined in your Employment Agreement) or you resign in the absence of a Good Reason Event (as defined in your Employment Agreement), you will
forfeit any portion of the Retention Bonus which has been accrued, but not paid to you. 

  

	 	b.	If during the Interim Period you die, or your employment is terminated because you are Disabled (as defined in your Employment Agreement), your employment is terminated without Cause or you resign as a result of a Good
Reason Event, you will be paid the amount of the Retention Bonus which has accrued, but not been paid to you; provided, that the amount of such payment shall not be less than an amount equal to $50,000 less the aggregate amount of Retention
Bonuses previously paid to you. As a condition to HII’s obligations, if any, to make any such payment, you or your personal representative must execute, deliver to HII and not revoke a general release substantially in the form attached to your
Employment Agreement as Exhibit A. 

  

	8.	Amendment to Employment Agreement – Salary Severance. Your Employment Agreement is amended as follows: 

  

	 	a.	in Section 2 of your Employment Agreement, the text “12 months” is replaced with the text “24 months”; 

  

	 	b.	in Section 4(b)(iii)(C) of your Employment Agreement, the text “one-twelfth” and “12 months” are replaced, respectively, with “one-twenty fourth” and “24 months”; and

  

			
	

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	 	c.	for the purposes of Section 2 and Section 4(b)(iii)(C) of your Employment Agreement, the term “Executive’s annual Salary hereunder (at the rate then in effect)” means, as applicable:

  

	 	i.	your average annualized salary over the preceding six (6) month period, if your employment ends during the Interim Period; or 

  

	 	ii.	your Salary under your Employment Agreement at the rate then in effect, if your employment ends after the Interim Period. 

  

	9.	LTIP Awards. If you are employed by HII on the following dates, then on the terms and subject to the conditions of the Health Insurance Innovations, Inc. Long Term Incentive Plan (the “LTIP”) and
the applicable grant document: 

  

	 	a.	you will be granted, on July 1, 2015, (i) 40,000 Class A Shares of HII (the “Restricted Shares”) and (ii) 30,000 Class A Share-settled stock appreciation rights
(“SSARs”) with a strike price equal to the market closing price on July 1, 2015; and 

  

	 	b.	if you are appointed to the permanent role of Chief Financial Officer, on such date you will be granted (i) 33,333 Restricted Shares and (ii) 66,667 SSARs with a strike price equal to the market closing price
on such date. 

 The foregoing grants will vest 25% on each of the first two anniversaries of the applicable grant date, and
50% on the third anniversary of the applicable grant date. Unvested Restricted Shares and unvested or unexercised SSARs will be subject to forfeiture if you resign absent a Good Reason Event or are terminated for Cause. Similarly, unvested
Restricted Shares and unvested or unexercised SSARs will be subject to 100% accelerated vesting if you resign as a result of a Good Reason Event or are terminated without Cause. In the event your employment is terminated because you resign as a
result of a Good Reason Event or are terminated without Cause, the 

  

			
	

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SSARs forming part of the foregoing grants, to the extent that they are otherwise vested and exercisable at the time of your termination of service, shall terminate at 5:00 p.m. (Eastern time) on
the date that is one year after the date of your termination of service. In addition, each grant document will provide that unvested Restricted Shares and unvested or unexercised SSARs will be subject to 100% accelerated vesting at the time a Change
in Control (as defined in the LTIP) occurs. The applicable grant documents will otherwise be on terms, and contain such conditions, offered to other similarly situated executive officers of HII. 

In the event that your employment is terminated because you resign as a result of a Good Reason Event or are terminated without Cause, in
either case prior to July 1, 2015, you will be awarded (a) 40,000 Class A Shares of HII and (b) 30,000 SSARs with a strike price equal to the market closing price on the date your employment is terminated, provided that such
SSARs shall terminate at 5:00 p.m. (Eastern time) on the date that is one year after the date of your termination of service. 
  

	10.	Withholding. Any payments provided hereunder or under your Employment Agreement shall be subject to applicable withholding. 

  

	11.	Governance. In your role as interim Chief Financial Officer HII will look to you to play an integral role in refining and developing our procedures regarding the delegation of authority to members of the senior
management team. 

 Your employment with HII will continue to be “at will,” which means that you or HII may terminate your
employment at any time, for any reason or no reason, with or without cause, and with or without prior notice or prior disciplinary action. All terms and conditions of your Employment Agreement not expressly amended or modified hereby shall remain in
full force and effect. Without limiting the generality of the foregoing, you acknowledge and agree that a “Good Reason Event” (as defined in your Employment Agreement) will not be triggered if HII decides not to appoint you to the position
of Chief Financial Officer. 

  

			
	

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 If you agree with our offer as specified above, please sign and date this letter where indicated below and
send it to me via e-mail (mkosloske@hiiquote.com), with a copy to Michael A. Petrizzo, Jr., our General Counsel (mpetrizzo@hiiquote.com). 
 We hope you
find this offer attractive, and look forward to your continuing contributions to the HII team. Please feel free to call or e-mail me if you have any questions. 

 

	
	Very truly yours,
	
	HEALTH INSURANCE INNOVATIONS, INC.
	
	/s/ Michael W. Kosloske
	
	Michael W. Kosloske
	Chairman, President and Chief Executive Officer
	
	AGREED AND ACCEPTED:
	
	 /s/ Michael D. Hershberger

	Michael D. Hershberger
	
	DATE: March 30, 2015

  

			
	

		Page 6CINAV Series C Note Exhibit 10.11

THE INDEBTEDNESS EVIDENCED BY THIS INSTRUMENT IS SUBORDINATED TO THE PRIOR PAYMENT IN FULL OF THE LENDER DEBT (AS DEFINED IN THE SUBORDINATION AGREEMENT HEREINAFTER REFERRED TO) PURSUANT TO, AND TO THE EXTENT PROVIDED IN, THE SUBORDINATION AGREEMENT DATED AS OF DECEMBER 16, 2014, AS AMENDED, AMONG COLE REAL ESTATE INCOME STRATEGY (DAILY NAV), INC., COLE REAL ESTATE INCOME STRATEGY (DAILY NAV) OPERATING PARTNERSHIP, LP, SERIES C, LLC AND JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT (THE “SUBORDINATION AGREEMENT”). 

SUBORDINATE PROMISSORY NOTE
U.S. $20,000,000.00    December 16, 2014
 

FOR VALUE RECEIVED, Cole Real Estate Income Strategy (Daily NAV) Operating Partnership, LP, a Delaware limited partnership ("Borrower"), hereby promises to pay to the order of Series C, LLC, an Arizona limited liability company ("Lender"), at the office of Lender located at 2325 East Camelback Road, Suite 1100, Phoenix, AZ 85016, the principal amount of $20,000,000.00, together with interest on the principal balance outstanding hereunder, from (and including) the date of disbursement until (but not including) the date of payment, at a per annum rate equal to the Stated Interest Rate specified below or, to the extent applicable, the Default Interest Rate specified below, in accordance with the following terms and conditions:
1.Revolving Line of Credit.  The principal balance of this Note represents a revolving line of credit, all or any part of which may be advanced to Borrower, repaid by Borrower, and re‐advanced to Borrower from time to time, subject to the other terms hereof, and provided that the principal balance outstanding at any one time shall not exceed the face amount hereof.
2.    Contracted For Rate of Interest  The contracted for rate of interest of the indebtedness evidenced hereby, without limitation, shall consist of the following:
(a)    The Stated Interest Rate (as hereinafter defined), as from time to time in effect, calculated daily on the basis of actual days elapsed over a 360-day year, applied to the principal balance from time to time outstanding hereunder;
(b)    The Default Interest Rate (as hereinafter defined), as from time to time in effect, calculated daily on the basis of actual days elapsed over a 360-day year, applied to the principal balance from time to time outstanding hereunder; and
(c)    All Additional Sums (as hereinafter defined), if any.
Borrower agrees to pay an effective contracted for rate of interest which is the sum of the Stated Interest Rate referred to in Subsection 2(a) above, plus any additional rate of interest resulting from the application of the Default Interest Rate referred to in Subsection 2(b) above, and the Additional Sums, if any, referred to in Subsection 2(c) above.

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3.    Stated Interest Rate.  Except as provided in Section 4 below, interest shall accrue on the principal balance outstanding hereunder during each Interest Period (as hereinafter defined) at the Stated Interest Rate.  “Stated Interest Rate” means a rate per annum equal to the 1-month LIBOR plus 2.45%.  “Interest Period” means each period commencing on the first day of the calendar month and ending on the first day of the next succeeding calendar month; provided (i) the first Interest Period shall commence on the date hereof and end on the first day of the next succeeding calendar month and (ii) any Interest Period that would otherwise extend past the maturity date of this Note shall end on the maturity date of this Note.  “LIBOR” means, with respect to each Interest Period, the rate for U.S. dollar deposits with a maturity equal to the number of months specified above, as reported on Telerate page 3750 as of 11:00 a.m., London time, on the second London business day before such Interest Period begins, or, in the case of the first Interest Period, the second London business day before the first day of the calendar month during which such Interest Period begins (or if not so reported, then as determined by the Lender from another recognized source or interbank quotation).  
4.    Default Interest Rate.  “Default Interest Rate” means the Stated Interest Rate plus 4.0% per annum.  The principal balance outstanding hereunder from time to time shall bear interest at the Default Interest Rate from the date of the occurrence of an Event of Default (as hereinafter defined) hereunder until the earlier of: (a) the date on which the principal balance outstanding hereunder, together with all accrued interest and other amounts payable hereunder, are paid in full; or (b) the date on which such Event of Default is timely cured in a manner satisfactory to Lender, (i) if Borrower is specifically granted a right to cure such Event of Default herein or (ii) if no such right to cure is specifically granted, then Lender, in its sole and absolute discretion, permits such Event of Default to be cured.
5.    Payments.  Accrued interest under this Note shall be due and payable in arrears on the last day of each Interest Period.  The principal balance outstanding hereunder, together with all accrued interest and other amounts payable hereunder, if not sooner paid as provided herein, shall be due and payable on December 15, 2015.    
6.    Application and Place of Payments.  Payments received by Lender with respect to the indebtedness evidenced hereby shall be applied in such order and manner as Lender in its sole and absolute discretion may elect.  Unless otherwise elected by Lender, all such payments shall first be applied to accrued and unpaid interest at the Stated Interest Rate and, to the extent applicable, the Default Interest Rate, next to the principal balance then outstanding hereunder, and the remainder to any Additional Sums or other costs or added charges provided for herein.  Payments hereunder shall be made at the address for Lender first set forth above, or at such other address as Lender may specify to Borrower in writing.
7.    Prepayments.  Payments of principal hereof may be made at any time, or from time to time, in whole or in part, without penalty, provided that all previously matured interest and other charges accrued to the date of prepayment are also paid in full.  Notwithstanding any partial prepayment of principal hereof, there will be no change in the due date or amount of scheduled payments due hereunder unless Lender, in its sole and absolute discretion, agrees in writing to such change. 

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8.    Subordinate Loan.  Notwithstanding anything to the contrary contained herein and as long as the Credit Facility (as defined below), or any portion thereof, remains outstanding, this Note will be subject and subordinate to the Credit Facility and all of Borrower’s obligations in connection therewith, and unless permitted pursuant to the Subordination Agreement, the maximum outstanding principal amount of this Note shall not exceed $10,000,000.  The term “Credit Facility” shall mean a credit facility in an amount not to exceed $750,000,000 by and among the Borrower, as borrower, the lenders from time to time that are parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent, and the loan documents executed or delivered in connection therewith (each as amended, supplemented, amended and restated or replaced).  As long as the Credit Facility, or any portion thereof, remains outstanding, Borrower shall not, and shall not be obligated to, make any payments under or with respect to this Note unless all amounts then due and owing under the Credit Facility, including, without limitation, monthly debt service payments and deposits to reserve accounts, if any, have been paid and such payments are permitted pursuant to the Subordination Agreement.
9.    Events of Default; Acceleration.  The occurrence of any one or more of the following events shall constitute an "Event of Default" hereunder, and upon such Event of Default, the entire principal balance outstanding hereunder, together with all accrued interest and other amounts payable hereunder, at the election of Lender, shall become immediately due and payable, without any notice to Borrower:
(a)    The failure of Borrower to pay any principal, interest or other amounts when the same shall become due and payable hereunder, and such failure is not cured within five (5) business days after notice from Lender;
(b)    The failure of Borrower to comply with any other provision of this Note, and such failure is not cured within five (5) business days after notice from Lender; 
(c)    The dissolution, winding-up or termination of the existence of Borrower;
(d)    The making by Borrower of an assignment for the benefit of its creditors; or
(e)    The filing by Borrower of a petition or application for relief under federal bankruptcy law or any similar state or federal law.
10.    Additional Sums.  All fees, charges, goods, things in action or any other sums or things of value, other than the interest resulting from the Stated Interest Rate and the Default Interest Rate, as applicable, paid or payable by Borrower (collectively, the "Additional Sums"), whether pursuant to this Note or otherwise with respect to this lending transaction, that, under the laws of the State of Arizona, may be deemed to be interest with respect to this lending transaction, for the purpose of any laws of the State of Arizona that may limit the maximum amount of interest to be charged with respect to this lending transaction, shall be payable by Borrower as, and shall be deemed to be, additional interest, and for such purposes only, the agreed upon and "contracted for rate of interest" of this lending transaction shall be deemed to be increased by the rate of interest resulting from the Additional Sums.  Borrower understands and believes that this lending transaction complies with the usury laws of the State of Arizona; however, if any interest or other charges in 

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connection with this lending transaction are ever determined to exceed the maximum amount permitted by law, then Borrower agrees that: (a) the amount of interest or charges payable pursuant to this lending transaction shall be reduced to the maximum amount permitted by law; and (b) any excess amount previously collected from Borrower in connection with this lending transaction that exceeded the maximum amount permitted by law, will be credited against the principal balance then outstanding hereunder.  If the outstanding principal balance hereunder has been paid in full, the excess amount paid will be refunded to Borrower.
11.    Waivers.  Except as set forth in this Note, to the extent permitted by applicable law, Borrower, and each person who is or may become liable hereunder, severally waive and agree not to assert:  (a) any exemption rights; (b) demand, diligence, grace, presentment for payment, protest, notice of nonpayment, nonperformance, extension, dishonor, maturity, protest and default; and (c) recourse to guaranty or suretyship defenses (including, without limitation, the right to require the Lender to bring an action on this Note).  Lender may extend the time for payment of or renew this Note, release collateral as security for the indebtedness evidenced hereby or release any party from liability hereunder, and any such extension, renewal, release or other indulgence shall not alter or diminish the liability of Borrower or any other person or entity who is or may become liable on this Note except to the extent expressly set forth in a writing evidencing or constituting such extension, renewal, release or other indulgence.
12.    Costs of Collection.  Borrower agrees to pay all reasonable costs of collection, including, without limitation, attorneys' fees, whether or not suit is filed, and all costs of suit and preparation for suit (whether at trial or appellate level), in the event any payment of principal, interest or other amount is not paid when due.  In the event of any court proceeding, attorneys' fees shall be set by the court and not by the jury and shall be included in any judgment obtained by Lender.
13.    No Waiver by Lender.  No delay or failure of Lender in exercising any right hereunder shall affect such right, nor shall any single or partial exercise of any right preclude further exercise thereof.
14.    Governing Law.  This Note shall be construed in accordance with and governed by the laws of the State of Arizona, without regard to the choice of law rules of the State of Arizona.
15.    Time of Essence. Time is of the essence of this Note and each and every provision hereof.
16.    Amendments.  No amendment, modification, change, waiver, release or discharge hereof and hereunder shall be effective unless evidenced by an instrument in writing and signed by the party against whom enforcement is sought.
17.    Severability.  If any provision hereof is invalid or unenforceable, the other provisions hereof shall remain in full force and effect and shall be liberally construed in favor of Lender in order to effectuate the other provisions hereof.  

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18.    Binding Nature.  The provisions of this Note shall be binding upon Borrower and the heirs, personal representatives, successors and assigns of Borrower, and shall inure to the benefit of Lender and any subsequent holder of all or any portion of this Note, and their respective successors and assigns.  Lender may from time to time transfer all or any part of its interest in this Note without notice to Borrower. 
19.    Notice.  Any notice or other communication with respect to this Note shall: (a) be in writing; (b) be effective on the day of hand-delivery thereof to the party to whom directed, one day following the day of deposit thereof with delivery charges prepaid, with a national overnight delivery service, or two days following the day of deposit thereof with postage prepaid, with the United States Postal Service, by regular first class, certified or registered mail; (c) if directed to Lender, be addressed to Lender at the office of Lender set forth above, or to such other address as Lender shall have specified to Borrower by like notice; and (d) if directed to Borrower, be addressed to Borrower at the address for Borrower set forth below Borrower's name, or to such other address as Borrower shall have specified by like notice.
20.    Section Headings.  The section headings set forth in this Note are for convenience only and shall not have substantive meaning hereunder or be deemed part of this Note.
21.    Construction.  This Note shall be construed as a whole, in accordance with its fair meaning, and without regard to or taking into account any presumption or other rule of law requiring construction against the party preparing this Note.
IN WITNESS WHEREOF, Borrower has executed this Note as of the date first set forth above.
COLE REAL ESTATE INCOME STRATEGY (DAILY NAV) OPERATING PARTNERSHIP, LP, a Delaware limited partnership

		
	By:
	Cole Real Estate Income Strategy (Daily NAV), Inc., a Maryland corporation, its general partner

By:    /s/  Simon J. Misselbrook     
Name: Simon J. Misselbrook 
Title: Chief Financial Officer and Treasurer

Address of Borrower:
2325 E. Camelback Road, Suite 1100 
Phoenix, AZ 85016

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