UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
December 15, 2014
Date of report (Date of earliest event reported)
Universal
Insurance Holdings, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-33251 |
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65-0231984 |
(State or other jurisdiction of
incorporation or organization) |
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(Commission
file number) |
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(IRS Employer
Identification No.) |
1110 W. Commercial Boulevard, Fort Lauderdale, Florida 33309
(Address of Principal Executive Offices)
Registrants telephone number, including area code: (954) 958-1200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425). |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12). |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)). |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)). |
ITEM 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensation Arrangements of Certain Officers |
On December 15, 2014, Universal Insurance Holdings, Inc. (Company) entered into amended employment agreements with Jon W. Springer,
Executive Vice President and Chief Operating Officer, and Stephen J. Donaghy, Chief Administrative Officer, extending their employment by one year through December 31, 2015.
Mr. Springers base salary will be frozen for 2015 and will remain $1,340,625. His annual incentive performance bonus for 2015 will be
determined by the same formula as in 2014, at 2.5% of the Companys income before taxes, and will be awarded under the Companys previously approved 2009 Omnibus Incentive Plan, as amended (Plan). Mr. Donaghys base
salary will also be frozen for 2015 and will remain $804,375. His annual incentive performance bonus for 2015 will be determined by the same formula as in 2014, at 1.5% of the Companys net income, and will be awarded under the Plan.
Other than incidental technical clarifications, the amendments do not otherwise modify the terms of the existing employment agreements.
The Companys Compensation Committee is undertaking a coordinated and comprehensive review of the Companys executive compensation program following
the say on pay vote that passed by a narrow margin at the Companys 2014 annual meeting of shareholders. In order to provide the necessary time and resources for such a review, the Compensation Committee approved the one-year
extensions of Messrs. Springers and Donaghys employment agreements, which would otherwise expire on December 31, 2014, and will coordinate their future agreements with that of Sean P. Downes, the Companys Chairman, President
and Chief Executive Officer, whose employment agreement will also expire on December 31, 2015.
The preceding summary of the amendments does not
purport to be complete and is qualified in its entirety by reference to the full text of the amendments, which are attached hereto as Exhibits 10.1 and 10.2 and incorporated by reference.
ITEM 9.01 |
Financial Statements and Exhibits |
(d) Exhibits:
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Exhibit No. |
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Description |
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10.1 |
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Amendment No. 1 to Employment Agreement, dated December 15, 2014, between Jon W. Springer and the Company |
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10.2 |
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Amendment No. 1 to Employment Agreement, dated December 15, 2014, between Stephen J. Donaghy and the Company |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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Date: December 16, 2014 |
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UNIVERSAL INSURANCE HOLDINGS, INC. |
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/s/ Sean P. Downes |
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Sean P. Downes |
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President and Chief Executive Officer |
Exhibit 10.1
EXECUTION VERSION
AMENDMENT NO. 1
TO EMPLOYMENT AGREEMENT
This Amendment No. 1 is made and entered into this 15th day of December, 2014 (the Amendment
Date), by Universal Insurance Holdings, Inc., a Delaware corporation (the Company), and Jon W. Springer (Executive).
WHEREAS, the Company and Executive have entered into an Employment Agreement, dated as of February 22, 2013 (the Employment
Agreement); and
WHEREAS, the Company and Executive desire to enter into this Amendment No. 1 to extend the term of
Executives employment with the Company, to make certain adjustments to Executives compensation pending the determination of a revised compensation program for the Companys executive officers and to correct a technical error in the
Employment Agreement relating to the timing of payment of the pro rata bonus in the event of Executives termination without Cause or for Good Reason.
Accordingly, the parties agree as follows:
1. Capitalized terms not defined herein shall have the meanings set forth in the Employment Agreement.
2. Section 2 of the Employment Agreement is amended to extend the Term to December 31, 2015. Except as provided
herein, the Employment Agreement shall remain in full force and effect.
3. Effective January 1, 2015,
Section 4.1 of the Employment Agreement is deleted in its entirety and replaced with the following:
4.1 Base
Salary. Beginning January 1, 2015, the Company will pay Executive an annual base salary of $1,340,625, payable in accordance with the Companys customary payroll practices (Base Salary), with no subsequent increases
during the Term unless the Compensation Committee provides otherwise subsequent to the Amendment Date.
4. Effective
January 1, 2015, Section 4.2 of the Employment Agreement is deleted in its entirety and replaced with the following:
4.2 Annual Bonus. For 2015, Executive shall be entitled to receive a cash incentive award under Article X of the
Universal Insurance Holdings, Inc. 2009 Omnibus Incentive Plan, as it may be amended from time to time, in an amount equal to 2.5% of the Companys income before taxes as reported in the Companys Annual Report on Form 10-K for fiscal year
2015 (the Annual Bonus), which Annual Bonus shall be paid to Executive no later than March 15, 2016. For the avoidance of doubt, if Executive has earned an Annual Bonus under this Section 4.2, he need not be employed on
the Annual Bonus payment date to receive such Annual Bonus, provided, except as otherwise provided in the Employment Agreement, that he is employed through December 31, 2015.
Jon W. Springer
Amendment No. 1 to Employment Agreement
Page 2 of 4
5. Effective January 1, 2015, Section 4 of the Employment Agreement is amended to add a new Section 4.7 that reads in its
entirety:
4.7 The Compensation Committee will consider an equity grant to Executive in 2015 in accordance with its regular
equity grant policy.
6. Section 5.3 of the Employment Agreement is deleted in its entirety and replaced with the following:
5.3 Payment Upon Termination Without Cause. If during the Term the Company terminates Executives employment
without Cause (which may be done at any time without prior notice), the Company will pay Executive (i) on the sixtieth (60th) day following the date of such termination of employment, in
addition to the Accrued Obligations, (1) a lump-sum cash payment equal to Executives then-current Base Salary for a period of twelve (12) months and (2) a lump-sum cash payment equal to the cost of COBRA coverage for Executive
and his dependents for twelve (12) months, and (ii) no later than March 15 of the year following the year to which the Annual Bonus relates, payment for the prorated share of Executives Annual Bonus pursuant to Section 4.2,
based on the Companys actual performance, for the year in which termination without Cause occurs; provided that Executive executes and delivers to the Company a valid and irrevocable release agreement in a form reasonably acceptable to the
Company by no later than forty-five (45) days following the date of such termination of employment without Cause. Additionally, any restricted stock award granted in accordance with Section 4.4 prior to the date of Executives
termination without Cause shall fully vest immediately prior to such termination without Cause; for the avoidance of doubt, Executive shall not be entitled to any award under Section 4.4 which has not been granted prior to such termination
without Cause. The Company will have no obligation to provide the benefits set forth in this Section 5.3 in the event that Executive breaches the provisions of Section 7.
7. Section 5.4 of the Employment Agreement is deleted in its entirety and replaced with the following:
5.4 Payment Upon Termination For Good Reason. If during the Term Executive terminates his employment with the Company
for Good Reason by giving notice as provided in this Section 5.4, the Company will pay Executive (i) on the sixtieth (60th) day following the date of such termination of employment,
in addition to the Accrued Obligations, (1) a lump-sum cash payment equal to Executives then-current Base Salary for a period of twelve (12) months, and (2) a lump-sum cash payment equal to the cost of COBRA coverage for
Executive and his dependents for twelve (12) months, and (ii) no later than March 15 of the year following the year to which the Annual Bonus relates, payment for the prorated share of Executives Annual Bonus pursuant to
Section 4.2, based on the Companys actual performance, for the year in which termination for Good Reason occurs; provided that Executive executes and delivers to the Company within a valid and irrevocable release agreement in a form
reasonably acceptable to the Company by no later than forty-five (45) days
Jon W. Springer
Amendment No. 1 to Employment Agreement
Page 3 of 4
following the date of such
termination of employment for Good Reason. Additionally, any restricted stock award granted in accordance with Section 4.4 prior to the date of Executives termination for Good Reason shall fully vest immediately prior to such termination
with Good Reason; for the avoidance of doubt, Executive shall not be entitled to any award under Section 4.4 which has not been granted prior to such termination for Good Reason. Prior to the effectiveness of termination for Good Reason, the
Company shall be given thirty (30) calendar days prior written notice from Executive, specifically identifying the reasons which are alleged to constitute Good Reason for termination hereunder, and an opportunity to be heard by Executive
in the event the Company disputes such allegations and to cure such allegations; provided, however, that Executive shall have no obligation to remain employed by the Company following such thirty (30) calendar day notice period
unless such allegations are cured to Executives reasonable satisfaction. As used in this Section 5.4, Good Reason means any of the following without Executives prior written consent: (i) assignment to
Executive of duties materially inconsistent with Executives position hereunder; (ii) failure to pay Executives Base Salary in accordance with Section 4.1 hereof; (iii) failure to pay Executives Annual Bonus pursuant
to Section 4.2; (iv) requiring Executive to move his situs of employment more than twenty (20) miles from his situs of employment prior to such move; or (v) the Companys material breach of this Agreement.
8. Except as expressly amended herein, the terms and conditions of the Employment Agreement shall continue in full force and effect.
[signatures on following page]
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this
Amendment No. 1 as of the day and year first above mentioned.
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Executive: |
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/s/ Jon W. Springer |
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Jon W. Springer |
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UNIVERSAL INSURANCE HOLDINGS, INC. |
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/s/ Sean P.
Downes |
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Sean P. Downes |
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President and Chief Executive Officer |
Exhibit 10.2
EXECUTION VERSION
AMENDMENT NO. 1
TO EMPLOYMENT AGREEMENT
This Amendment No. 1 is made and entered into this 15th day of December, 2014 (the Amendment
Date), by Universal Insurance Holdings, Inc., a Delaware corporation (the Company), and Stephen J. Donaghy (Executive).
WHEREAS, the Company and Executive have entered into an Employment Agreement, dated as of March 21, 2013 (the Employment
Agreement); and
WHEREAS, the Company and Executive desire to enter into this Amendment No. 1 to extend the term of
Executives employment with the Company and to make certain adjustments to Executives compensation pending the determination of a revised compensation program for the Companys executive officers.
Accordingly, the parties agree as follows:
1. Capitalized terms not defined herein shall have the meanings set forth in the Employment Agreement.
2. Section 2 of the Employment Agreement is amended to extend the Term to December 31, 2015. Except as provided
herein, the Employment Agreement shall remain in full force and effect.
3. Effective January 1, 2015,
Section 4.1 of the Employment Agreement is deleted in its entirety and replaced with the following:
4.1 Base
Salary. Beginning January 1, 2015, the Company will pay Executive an annual base salary of $804,375, payable in accordance with the Companys customary payroll practices (Base Salary), with no subsequent increases
during the Term unless the Compensation Committee provides otherwise subsequent to the Amendment Date.
4. Effective
January 1, 2015, Section 4.2 of the Employment Agreement is deleted in its entirety and replaced with the following:
4.2 Annual Bonus. For 2015, Executive shall be entitled to receive a cash incentive award under Article X of the
Universal Insurance Holdings, Inc. 2009 Omnibus Incentive Plan, as it may be amended from time to time, in an amount equal to 1.5% of the Companys net income as reported in the Companys Annual Report on Form 10-K for fiscal year 2015
(the Annual Bonus), which Annual Bonus shall be paid to Executive no later than March 15, 2016. For the avoidance of doubt, if Executive has earned an Annual Bonus under this Section 4.2, he need not be employed on the
Annual Bonus payment date to receive such Annual Bonus, provided that he is employed through December 31, 2015.
Stephen J. Donaghy
Amendment No. 1 to Employment Agreement
Page 2 of 3
5. Effective January 1, 2015, Section 4 of the Employment Agreement is amended to add a new Section 4.9 that reads in its
entirety:
4.9 The Compensation Committee will consider an equity grant to Executive in 2015 in accordance with its regular
equity grant policy.
6. Except as expressly amended herein, the terms and conditions of the Employment Agreement shall continue in full
force and effect.
[signatures on following page]
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this
Amendment No. 1 as of the day and year first above mentioned.
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Executive: |
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/s/ Stephen J. Donaghy |
Stephen J. Donaghy |
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UNIVERSAL INSURANCE HOLDINGS, INC. |
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/s/ Sean P. Downes |
Sean P. Downes |
President and Chief Executive Officer |
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