Form of Escrow Agreement



 Exhibit 10.1 
 ESCROW AGREEMENT 
 This Escrow Agreement (this
“Agreement”) is made and entered into as of the          day of
                    , 2011, by and among ANDERSON & STRUDWICK, INCORPORATED, a Virginia corporation (the “Placement
Agent”), HOMEOWNERS CHOICE, INC., a Florida corporation (the “Company”), and SUNTRUST BANK, a Georgia banking corporation (the “Escrow Agent”). 

R E C I T A L S: 
 A.        The Company proposes to sell a minimum of 1,200,000 and a maximum of 1,500,000 shares of its       % Series A
Cumulative Redeemable Preferred Stock (the “Shares”). 

B.        The Company has retained the Placement Agent, as agent for the Company
on a best efforts, minimum-maximum basis, to sell the Shares in a public offering (the “Offering”), and the Placement Agent has agreed to sell the Shares in the Offering as the Company’s agent on a best efforts, minimum-maximum
basis. 
 C.        The Escrow Agent is willing to hold the proceeds of
the Offering in escrow pursuant to this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing
and the mutual covenants and agreements contained in this Agreement, it is hereby agreed as follows: 

1.        Establishment of the Escrow
Account.    Contemporaneously herewith, the parties have established a non-interest-bearing account with the Escrow Agent, which escrow account is entitled “Homeowners Choice, Inc. Preferred Offering Escrow
Account” (the “Escrow Account”). The Placement Agent will transfer funds directly to the Escrow Agent as directed by its customers and will instruct other purchasers of the Shares to make checks payable to “SunTrust Bank
– Homeowners Choice, Inc. Preferred Offering Escrow Account.” 

2.        Escrow Period.    The escrow period
(the “Escrow Period”) shall begin with the commencement of the Offering and shall terminate upon the earlier to occur of the following dates: 
   (a)        the date on which the Escrow Agent confirms that it has received in the Escrow Account gross proceeds for the sale of 1,500,000 Shares;

   (b)        April 30, 2011; or 

  (c)        the date on which the Placement Agent and the Company
notify the Escrow Agent in writing that the Offering has been terminated. 
 The Company is aware and
understands that, during the Escrow Period, it is not entitled to any funds received into escrow and no amounts deposited in the Escrow Account shall become the property of the Company or any other entity or be subject to the debts of the Company or
any other entity. 







 3.        Deposits into the
Escrow Account.    The Placement Agent agrees that it shall deliver to the Escrow Agent for deposit in the Escrow Account all monies received from purchasers of the Shares by noon of the next business day after receipt
together with a written account of each sale, which account shall set forth, among other things, (a) the purchaser’s name and address, (b) the number of Shares purchased by the purchaser, (c) the amount paid therefor by the
purchaser, (d) whether the consideration received from the purchaser was in the form of a check, draft or money order, and (e) the purchaser’s social security or tax identification number. The Escrow Agent agrees to hold all monies so
deposited in the Escrow Account (the “Escrow Amount”) for the benefit of the parties hereto until authorized to disburse such monies under the terms of this Agreement. 

4.        Disbursements from the Escrow
Account.    In the event that the Escrow Agent does not receive deposits for the sale of 1,200,000 Shares prior to the termination of the Escrow Period, or if the Placement Agent and the Company notify the Escrow
Agent that the Offering has been terminated, the Escrow Agent shall promptly refund to each purchaser the amount received from the purchaser, without deduction, penalty, or expense to the purchaser, and the Escrow Agent shall notify the Company and
the Placement Agent of its distribution of the funds. The purchase money returned to each purchaser shall be free and clear of any and all claims of the Company or any of its creditors. 

  In the event that the Escrow Agent does receive minimum deposits for the sale of 1,200,000 Shares prior to
the termination of the Escrow Period, on the date of Closing (as defined below), the Escrow Agent shall disburse the Escrow Amount pursuant to the provisions of Section 6; provided, however, that in no event will the Escrow Amount be
released to the Company until such amount is received by the Escrow Agent in collected funds. For purposes of this Agreement, the term “collected funds” shall mean all funds, including fed funds, received by the Escrow Agent which have
cleared normal banking channels. 
 5.        Collection
Procedure. 
   (a)        The Escrow Agent is hereby
authorized to deposit each check in the Escrow Account. 

  (b)        In the event that any check paid by a purchaser and
deposited in the Escrow Account shall be returned, the Escrow Agent shall notify the Placement Agent by telephone of such occurrence and advise it of the name of the purchaser, the amount of the check returned, and any other pertinent information.
The Escrow Agent shall then transmit the returned check directly to the purchaser and shall transmit the statement previously delivered by the Placement Agent relating to such purchase to the Placement Agent. 

  (c)        If the Company rejects any purchase of Shares for which
the Escrow Agent has already collected funds, the Escrow Agent shall promptly issue a refund check to the rejected purchaser. If the Placement Agent rejects any purchase for which the Escrow Agent has not yet collected funds but has submitted the
purchaser’s check for collection, the Escrow Agent shall promptly issue a check in the amount of the purchaser’s check to the rejected purchaser after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet submitted a
rejected purchaser’s check for collection, the Escrow Agent shall promptly remit the purchaser’s check directly to the purchaser. 

  
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 6.        Delivery of Escrow
Account. 
   (a)        Prior to the Closing (as
defined in Section 8 of this Agreement), the Placement Agent and the Company shall provide the Escrow Agent with a statement, executed by each party, containing the following information: 

     (i)        The total number of Shares sold by the
Placement Agent directly to purchasers and a list containing the name of each purchaser, the number of Shares purchased by each purchaser, and a specification of the manner in which the Shares should be issued; and 

     (ii)      A calculation by the Placement Agent and the
Company as to the manner in which the Escrow Account should be distributed to the Company and the Placement Agent and, in the event of oversubscription or rejection of certain purchasers, the aggregate amount to be returned to individual purchasers
and a listing of the exact amount to be returned to each such purchaser. 
      The
Escrow Agent shall hold the Escrow Amount and distribute it in accordance with the above-described statement on the date of Closing or such later date that it receives the above-described statement. 

  (b)        Upon termination of the Offering by the Company or the
Placement Agent for any reason, the Escrow Agent shall return to the purchasers who contributed to the Escrow Account the exact amount contributed by them. 
 7.        Investment of Escrow Account.  The Escrow Agent shall deposit funds received from purchasers in the Escrow Account, which shall be
a non-interest-bearing bank account at the Escrow Agent. 

8.        Closing Date.    The
“Closing” shall be the date of closing of the Offering, and the “Closing Date” shall be the date on or subsequent to the date on which the Escrow Agent has received minimum deposits for at least 1,200,000 Shares
that is designated to the Escrow Agent by the Placement Agent and the Company as the Closing Date. 

9.        Compensation of Escrow Agent.  The Company
shall pay the Escrow Agent a fee for its services hereunder in an amount equal to
                             Dollars
($            ), which amount shall be paid on the Closing Date. In the event the Offering is cancelled for any reason, the Company shall pay the Escrow Agent its fee within ten
(10) days after the Escrow Amount is refunded to purchasers. No such fee or any other monies whatsoever shall be paid out of or chargeable to the funds on deposit in the Escrow Account. 

10.        Disbursement into Court.  If, at any time,
there shall exist any dispute between the Company, the Placement Agent and/or the purchasers with respect to the holding or disposition of any portion of the Escrow Amount or any other obligations of the Escrow Agent hereunder, or if at any time the
Escrow Agent is unable to determine, to the Escrow Agent’s sole satisfaction, the proper disposition of any portion of the Escrow Amount or the Escrow Agent’s proper actions with respect to its obligations hereunder, or if the Company and
the Placement Agent have not within thirty (30) days of the furnishing by the Escrow Agent of a notice of resignation appointed a successor Escrow Agent to act hereunder, then the Escrow Agent may, in its sole discretion, take either or both of
the following actions: 
    (a)        suspend the
performance of any of its obligations under this Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of the Escrow Agent or until a successor Escrow Agent shall have been appointed (as the case may be);
provided, however, that the Escrow Agent shall continue to hold the Escrow Amount in accordance with Section 7 hereof; and/or 

  
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   (b)        petition (by means of an interpleader action or any
other appropriate method) any court of competent jurisdiction in Richmond, Virginia, for instructions with respect to such dispute or uncertainty, and pay into court all funds held by it in the Escrow Account for holding and disposition in
accordance with the instructions of such court. 
    The Escrow Agent shall have no liability
to the Company, the Placement Agent or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or
as a result of any delay in the disbursement of funds held in the Escrow Account or any delay in or with respect to any other action required or requested of the Escrow Agent. 

11.        Duties and Rights of the Escrow
Agent.    The foregoing agreements and obligations of the Escrow Agent are subject to the following provisions: 
     (a)        The Escrow Agent’s duties hereunder are limited solely to the safekeeping and disposition of the Escrow Account in
accordance with the terms of this Agreement. It is agreed that the duties of the Escrow Agent are only such as herein specifically provided, being purely of a ministerial nature, and the Escrow Agent shall incur no liability whatsoever except for
negligence, willful misconduct or bad faith. 

    (b)        The Escrow Agent is authorized to rely on any
document believed by the Escrow Agent to be authentic in making any delivery of the Escrow Amount. It shall have no responsibility for the genuineness or the validity of any document or any other item deposited with it and it shall be fully
protected in acting in accordance with this Agreement or instructions received. 

    (c)        The Company and the Placement Agent hereby
waive any suit, claim, demand or cause of action of any kind which they may have or may assert against the Escrow Agent arising out of or relating to the execution or performance by the Escrow Agent of this Agreement, unless such suit, claim, demand
or cause of action is based upon the gross negligence, willful misconduct, or bad faith of the Escrow Agent. 

  
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12.         Notices.    All notices given
hereunder will be in writing and delivered by registered or certified mail, return receipt requested, postage prepaid, hand-delivery, overnight courier, or confirmed facsimile or electronic mail transmission to the parties at the following
addresses, or such other address as a party may specify by proper notice: 
 To the Company: 

Homeowners Choice, Inc. 
 2340 Drew Street, Suite 200 
 Clearwater, Florida 33765

 Attention: Andrew Graham, Esquire 

Facsimile: (727) 797-7591 
 E-mail: agraham@hcpci.com 
 With a copy to: 

Foley & Lardner LLP 
 100 North Tampa Street, Suite 2700 
 Tampa, Florida 33602

 Attention: Curt P. Creely, Esq. 

Facsimile: (813) 221-4210 
 Email: ccreely@foley.com 
 To the Placement Agent: 

Anderson & Strudwick, Incorporated 

707 East Main Street, 20th Floor 
 Richmond, Virginia 23219 
 Attention: L. McCarthy Downs, III

 Facsimile: (804) 648-3404 

E-mail: mdowns@andersonstrudwick.com 

With a copy to: 
 McCarter & English, LLP 
 265 Franklin Street 

Boston, MA 02110 
 Attention: Theodore M. Grannatt, Esq. 
 Facsimile:
(617) 607-6026 
 Email: tgrannatt@mccarter.com 

  
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 To the Escrow Agent: 

SunTrust Bank 
 919 East Main Street 
 7th Floor 

Richmond, Virginia 23219 
 Attention: Matthew Ward 
 Facsimile: (804) 782 7855

 E-mail: matthew.ward@suntrust.com. 

13.        Miscellaneous. 

    (a)        This Agreement shall be binding upon, inure
to the benefit of and be enforceable by the parties hereto and their respective successors and assigns. 

    (b)        If any provision of this Agreement shall be
held invalid by any court of competent jurisdiction, such holding shall not invalidate any other provision hereof. 
     (c)        This Agreement shall be governed by the applicable laws of the Commonwealth of Virginia. 

    (d)        This Agreement may not be modified except in
writing signed by the parties hereto. 

    (e)        All demands, notices, approvals, consents,
requests and other communications hereunder shall be given in the manner provided in this Agreement. 

    (f)        This Agreement may be executed in one or more
counterparts, and if executed in more than one counterpart, the executed counterparts shall together constitute a single instrument. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in their respective names, all as of the date first above written. 
  

			
	 ANDERSON & STRUDWICK, INCORPORATED

		
	 By:
	 	  

		 	 L. McCarthy Downs, III

		 	 Senior Vice President

	
	 HOMEOWNERS CHOICE, INC.

		
	 By:
	 	  

	 Name:
	 	 Francis McCahill, III

	 Title:
	 	 Chief Executive Officer

	
	 SUNTRUST BANK

		
	 By:
	 	  

	 Name:
	 	 Matthew Ward

	 Title:
	 	 Assistant Vice President