Document:

Exhibit 10.46

 

 

 

December 30, 2014

 

To: The Borrower, the Guarantors and the
Lenders under the Credit Agreement defined below

 

Re:Credit Agreement dated as of August
29, 2012 (as amended, the “Credit Agreement”) by and among Meadowbrook Insurance Group, Inc. (the “Borrower”),
the Lenders (together with their respective successors and assigns, the “Lenders”), and JPMorgan Chase Bank, N.A.,
as Administrative Agent (in such capacity, the “Administrative Agent”). The terms used but not defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement.

 

Ladies/Gentlemen:

 

The Loan Parties have requested that the Lenders
and the Administrative Agent amend the Credit Agreement as set forth herein. Subject to the Required Lenders and the Loan Parties
signing this letter, the Lenders, the Borrower and the Administrative Agent hereby agree that clause (c) of the definition of “Change
of Control” in Section 1.01 of the Credit Agreement is amended by deleting the words “or shall have entered into a contract
or arrangement that, upon consummation thereof, will result in its or their acquisition of” therein.

 

The Loan Parties represent and warrant to
the Lenders that no Default exists under the Credit Agreement, and that no Indebtedness of any of the Loan Parties contains any
provision that would result in an event of default, or require, or allow the holders of any Indebtedness of any of the Loan Parties
to require, a prepayment, redemption or other defeasance of, or distribution with respect to, any such Indebtedness, upon any Loan
Party entering into a contract or arrangement that, upon consummation thereof, would result in a change of control or similar event
but prior to the actual change of control or similar event.

 

Except as expressly amended hereby, each Loan
Party agrees that the Loan Documents are ratified and confirmed and shall remain in full force and effect and that it has no set
off, counterclaim, defense or other claim or dispute with respect to any of the foregoing. Each Loan Party represents and warrants
to the Lenders and the Administrative Agent that it is not aware of, and hereby waives, any claims or causes of action against
the Administrative Agent, the Issuing Bank, any Lender or any of their successors or assigns arising in connection with the Credit
Agreement or any other Loan Document, in any case, on or prior to the date hereof.

 

The execution, delivery and effectiveness
of this letter shall not (a) except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender
or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents,
or (b) entitle any Loan Party to a waiver, amendment, modification or other change to, of or in respect of any provision of any
of the Loan Documents in the future in similar or dissimilar circumstances.

 

This letter may be signed upon any number
of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument, and signatures sent
by telecopy or other electronic imaging shall be enforceable as originals. This letter is a Loan Document, and shall be effective
as of the date written above when it is signed by the Required Lenders, the Administrative Agent and the Loan Parties.

 

    	1

    	 

    

	 	Very truly yours,
	 	 
	 	JPMORGAN CHASE BANK, individually
and as
	 	Administrative Agent
	 	 
	 	 
	 	By: /s/Hector J. Varona
	 	Name: Hector J. Varona
	 	Title: Vice President

 

    	2

    	 

    

 

	 	Accepted and agreed:
	 	 
	 	BANK OF AMERICA, N.A., individually
and as a 
	 	Syndication Agent
	 	 
	 	 
	 	By: /s/ Gregory J. Bosio
	 	Name: Gregory J. Bosio
	 	Title: Vice President
	 	 
	 	KEYBANK NATIONAL ASSOCIATION,
individually
	 	and as a Syndication Agent
	 	 
	 	 
	 	By: /s/James Cribbet
	 	Name: James Cribbet
	 	Title: Senior Vice President
	 	 
	 	THE PRIVATEBANK AND TRUST COMPANY
	 	 
	 	 
	 	By: /s/Laura M. Kalil
	 	Name: Laura M. Kalil
	 	Title: Managing Director
	 	 
	 	CITIZENS BANK, NATIONAL ASSOCIATION
	 	(formerly known as RBS Citizens,
N.A.)
	 	 
	 	 
	 	By: ____________________________
	 	Name: _________________________
	 	Title: __________________________

 

    	3

    	 

    

 

	 	Accepted and agreed:
	 	 
	 	 
	 	MEADOWBROOK INSURANCE GROUP, INC.
	 	 
	 	 
	 	By: /s/Karen M. Spaun
	 	Name: Karen M. Spaun
	 	Title: Sr. Vice President and
Chief Financial Officer
	 	 
	 	CREST FINANCIAL CORPORATION
	 	 
	 	 
	 	By: /s/Karen M. Spaun
	 	Name: Karen M. Spaun
	 	Title: Sr. Vice President and
Chief Financial Officer
	 	 
	 	MEADOWBROOK INC.
	 	 
	 	 
	 	By: /s/Karen M. Spaun
	 	Name: Karen M. Spaun
	 	Title: Sr. Vice President and
Chief Financial Officer
	 	 
	 	PROCENTURY CORPORATION
	 	 
	 	 
	 	By: /s/Karen M. Spaun
	 	Name: Karen M. Spaun
	 	Title: Sr. Vice President and
Chief Financial Officer

    	4SRCL-2014.12.31-EX10.25

Exhibit 10.25
Program Year 2015

BONUS CONVERSION PROGRAM
Summary of Program Terms – Annual Incentive Plan
Program Objectives
		
	•
	To increase the opportunity for employee ownership of Stericycle stock

		
	•
	To provide an alternative means of deferring the tax obligation on incentive compensation

Program Overview
The Bonus Conversion Program (BCP) provides you with an opportunity to defer current taxation into the future and to increase your ownership of Stericycle stock. This Program allows you to receive vested Stericycle non-qualified stock option(s) in lieu of all or a portion of any 2015 Annual Incentive Plan bonus that Stericycle otherwise would pay you.
If you elect to participate for the 2015 Program Year, you will receive a vested option during the first quarter of 2016 to purchase $5 or more worth of Stericycle stock for every $1 of your AIP bonus for 2015 that you elected to forgo. The number of option shares will be determined by the dollar amount that you elected to forgo multiplied by 5 and then divided by the average closing price of Stericycle stock during 2015 (determined on December 31st 2015).  The exercise price per share of the option will be the closing price of the stock on the date of the option grant which is the same as the payout date of the bonus. For example, if under this Program you elect to forgo $5,000 of your annual bonus for 2015, you will receive a vested option to purchase, at the option exercise price, a number of shares equal to $25,000 divided by the average closing price of Stericycle stock during 2015 (or, if lower, the closing price on the date of the option grant) rounded to the nearest whole share.
The BCP provides participants with an excellent opportunity to accumulate wealth if Stericycle stock performs well. A stock investment includes a potential for significant gain as well as an investment risk. The BCP is designed to provide a $5-for-$1 replacement ratio or premium for risk so your participation means trading certain cash for uncertain investment gain. With the $5-for-$1 replacement ratio, your potential for gain depends on whether Stericycle stock performs well. However, your risk is that Stericycle stock may not appreciate and you may not recover the full amount of your cash bonus forfeited or match the earnings you could have received under an alternative investment.
	
							
	December 15, 2014 to January 7, 2015
	 
	January 1, 2015 – December 31, 2015
	 
	January 1, 2016 – March 3, 2016
	 
	March 4, 2016 (no later than March 15, 2016)

	- Bonus Conversion program (BCP) election period open for 2015 bonus plan year

-Forms must be returned by January 7, 2015

-Every eligible participant must return a form, even if declining to participate
	è
	-Plan Year for Annual Incentive Plan (AIP)

-Note: AIP payouts in March 2015 for the 2014 bonus plan year are based on BCP elections made in 2013 and are not subject to the BCP election made in December 2014
	è
	-2015 average stock price determined after market close on 12/31/2015

-2015 AIP achievement levels and payouts determined and finalized (to be paid March 2016)

-2015 AIP payouts reduced and set aside based on the BCP election made in December, 2014. Funds are converted 5:1 to options based on the 2015 average stock price
	è
	-AIP Payout date for 2015  plan year

-Stock Options are issued to all 2015 BCP participants who made an election by January 7, 2015

-Stock Options are issued with at the closing strike price on AIP payout date

-Participants will be provided notification within 2-3 weeks of this date confirming the options are available to accept within eTrade

Enrollment
THE ELECTION FORM IS ATTACHED SEPARATELY AND MUST BE COMPLETED AND RETURNED AS INDICATED ON THE FORM. THIS FORM MUST BE COMPLETED AND RETURNED EVEN IF YOU ELECT NOT TO PARTICIPATE. YOUR PARTICIPATION IN THE PROGRAM IS NOT A STERICYCLE PROMISE THAT YOU WILL RECEIVE A BONUS OF ANY PARTICULAR AMOUNT OR ANY BONUS AT ALL.  YOUR ELECTION TO 

PARTICIPATE IS SUBJECT TO APPROVAL OF THE BCP FOR THE 2015 PROGRAM YEAR.  ELECTION DEADLINE DATE IS:  January 7, 2015
Program Design
		
	•
	Participants may elect to convert up to 100% of their Annual Incentive Plan earned for 2015 (payable in 2016) (minimum of $1,000 in the aggregate) into a Stericycle non-qualified stock option.

		
	•
	Eligibility: US based Grade level S11 and above as approved by the Board of Directors.

		
	•
	Replacement ratio, or premium for risk, is $5 for options to purchase Stericycle stock for every $1 of cash bonus forgone.

		
	•
	The number of option shares will be equal to (a) 5 times the amount that a participant elected to forgo divided by (b) the average closing price of Stericycle stock during 2015 determined on December 31, 2015 (or, if lower, the closing price on the date of the option grant). The exercise price per share of the option will be the closing price of Stericycle stock on the date of the option grant which is the same as the payout date as the cash bonus.  Note: Deductions for annual dollar amount elections will only be made to the extent that a bonus is earned in the 2015 plan year.  If earned bonus is less than your election amount, the entire election amount will be deducted first, which could result in a zero cash bonus payout

		
	•
	If a participant’s employment terminates before receiving a stock option for his or her converted bonus or bonuses, the participant’s election will be canceled as of his or her termination date and all amounts previously withheld will be paid in cash.

		
	•
	Participants forgo all or a portion of their cash bonuses (before any withholding tax that would have been taken out) in order to receive stock options. Generally, a participant will be taxed at ordinary income rates on the option gain upon exercise of the stock option. Upon sale of the shares, any additional gain or loss will be taxed as short-term or long-term capital gain or loss depending on the holding period of the stock for tax law purposes.

		
	•
	An election to participate in this Program must be made by the election deadline (as noted in your invitation e-mail and above) to avoid constructive receipt and securities law restrictions. An election is irrevocable and cannot be changed by the participant after the election deadline. New employees who start after December 31, 2014, will not be eligible to participate in the BCP for 2015.

		
	•
	Participants vest in the stock options immediately.

		
	•
	Option term: 10 years – participants have 10 years from date of grant to exercise options.

		
	•
	In the event of death, disability, resignation, retirement, or other termination of employment (other than termination for cause), the stock option remains exercisable until the end of the 10-year option term.

		
	•
	If you elect to participate in this BCP you will receive information about your stock option account after the grant date from E Trade who is the Stock Administration vendor for Stericycle. 

Any stock options you elect to receive will be issued under any available Stericycle Stock Option Plan and the terms of that Plan and the related Option Agreement will apply to your stock options received under the BCP.

Program Administrator:  Corporate Compensation, Team Member Experience-HR, Northbrook, Illinois.  Please send all questions via email to Human Resources-Compensation at HRCompensation@Stericycle.com

2

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