# EDGAR Filing Document

**Accession Number:** 0001873951
**File Stem:** 0001193125-25-216498
**Filing Date:** 2025-9
**Character Count:** 1582031
**Document Hash:** f7aad90715c1cd0d8e57571a35a283ac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-216498.hdr.sgml**: 20250925

**ACCESSION NUMBER**: 0001193125-25-216498

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 44

**FILED AS OF DATE**: 20250925

**DATE AS OF CHANGE**: 20250925

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Exzeo Group, Inc.
- **CENTRAL INDEX KEY:** 0001873951
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 852578837
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290500
- **FILM NUMBER:** 251340432

**BUSINESS ADDRESS:**
- **STREET 1:** 5300 WEST CYPRESS STREET
- **STREET 2:** SUITE 100
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33607
- **BUSINESS PHONE:** 813-405-3600

**MAIL ADDRESS:**
- **STREET 1:** 5300 WEST CYPRESS STREET
- **STREET 2:** SUITE 100
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33607

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TypTap Insurance Group, Inc.
- **DATE OF NAME CHANGE:** 20210720

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on September 25, 2025.** 

**Registration No. 333-** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM S-1** 

**REGISTRATION STATEMENT** 

***UNDER***

***THE SECURITIES ACT OF 1933***

## Exzeo Group, Inc.
**(Exact name of registrant as specified in its charter)** 

---

| | | |
|:---|:---|:---|
| **Florida** | **6331** | **85-2578837** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(Primary Standard Industrial**<br> **Classification Code Number)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

**1000 Century Park Drive** 

**Tampa, Florida 33607** 

**813-776-1000** 

**(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)** 

**Paresh Patel, Chief Executive Officer** 

**Kevin Mitchell, President** 

**Exzeo Group, Inc.** 

**1000 Century Park Drive** 

**Tampa, Florida 33607** 

**813-776-1000** 

**(Name, address, including zip code, and telephone number including area code, of agent for service)** 

***Copies of all communications, including communications sent to agent for service, should be sent to:***

---

| | |
|:---|:---|
| **Curt P. Creely**<br> **Carrie Long**<br> **Megan Odroniec**<br> **Foley & Lardner LLP**<br> **100 North Tampa Street, Suite 2700**<br> **Tampa, Florida 33602**<br> **(813) 229-2300** | **Thomas S. Levato**<br> **DLA Piper LLP (US)**<br> **1251 Avenue of the Americas**<br> **27th Floor**<br> **New York, New York 10020**<br> **(212) 335-4500** |

---

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this Registration Statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended (the "Securities Act"), check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☒

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

------

##### [**Table of Contents**](#toc)
**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell, and it is not soliciting an offer to buy, these securities in any jurisdiction where the offer or sale is not permitted.** 

**Subject to completion, dated September 25, 2025** 

**PRELIMINARY PROSPECTUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**![LOGO](g28749g64l34.jpg)

**Common Stock** 

This is an initial public offering of shares of our common stock.

Prior to this offering, there has been no public market for our common stock. It is currently estimated that the initial public offering price will be between $ and $ per share. We intend to apply to list our common stock on the New York Stock Exchange ("NYSE") under the symbol "XZO".

Immediately after this offering, HCI Group, Inc., or HCI, will own 75,000,000 shares of our common stock, which will represent approximately % of our total outstanding shares of common stock and voting power. As long as HCI continues to control shares representing a majority of our voting power, it will generally be able to determine the outcome of all corporate actions requiring shareholder approval, including the election of directors. As a result, we believe we are eligible for, but do not intend to take advantage of, the "controlled company" exemptions to the corporate governance rules for NYSE-listed companies.

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), and, as such, are subject to reduced public company reporting requirements. See "Prospectus Summary — Emerging Growth Company Status."

**Investing in our common stock involves risks. See "[Risk Factors](#tx28749_2)" beginning on page 13 to read about factors you should consider before buying shares of our common stock.** 

**Neither the Securities and Exchange Commission ("SEC") nor any state securities commission or other regulatory body has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.** 

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
|  Initial Public Offering Price | $| $|
|  Underwriting Discounts and Commissions<sup>(1)</sup> | $| $|
|  Proceeds, Before Expenses, to Exzeo Group, Inc. | $| $|

---

<sup>(1)</sup> See "Underwriting" for a description of the compensation payable to the underwriters.

The underwriters have options for a period of 30 days from the date of this prospectus to purchase up to a maximum of additional shares of our common stock from us at the initial public offering price, less the underwriting discounts and commissions.

At our request, the underwriters have reserved up to 5% of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to certain individuals associated with us and our stockholders. See "Underwriting—Directed Share Program."

Delivery of the shares of common stock will be made on or about , 2025.

*Joint Bookrunning Managers* 

**Truist Securities**

---

| | |
|:---|:---|
| **Citizens Capital Markets** | **William Blair** |

---

*Co-Manager* 

**Fifth Third Securities** 

**The date of this prospectus is , 2025.** 

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  | Page |
|  [PROSPECTUS SUMMARY](#tx28749_1) | 1 |
|  [RISK FACTORS](#tx28749_2) | 13 |
|  [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tx28749_3) | 47 |
|  [USE OF PROCEEDS](#tx28749_4) | 49 |
|  [DIVIDEND POLICY](#tx28749_5) | 50 |
|  [CAPITALIZATION](#tx28749_6) | 51 |
|  [DILUTION](#tx28749_7) | 52 |
|  [BUSINESS](#tx28749_8) | 54 |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tx28749_9) | 72 |
|  [MANAGEMENT](#tx28749_11) | 95 |
|  [EXECUTIVE COMPENSATION](#tx28749_12) | 102 |
|  [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#tx28749_13) | 112 |
|  [PRINCIPAL SHAREHOLDERS](#tx28749_14) | 120 |
|  [DESCRIPTION OF CAPITAL STOCK](#tx28749_15) | 121 |
|  [SHARES ELIGIBLE FOR FUTURE SALE](#tx28749_16) | 129 |
|  [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR COMMON STOCK](#tx28749_17) | 132 |
|  [UNDERWRITING](#tx28749_18) | 136 |
|  [LEGAL MATTERS](#tx28749_19) | 144 |
|  [EXPERTS](#tx28749_20) | 144 |
|  [WHERE YOU CAN FIND MORE INFORMATION](#tx28749_21) | 144 |
|  [INDEX TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS](#tx28749_22) | F-1 |

---

------

##### [**Table of Contents**](#toc)
Neither we nor the underwriters have authorized anyone to provide you with any information other than that contained in this prospectus and any free writing prospectus prepared by or on behalf of us that we have referred to you. If anyone provides you with additional, different or inconsistent information, we and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, such information. Offers to sell, and solicitations of offers to buy, shares of our common stock are being made only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of our common stock. Our business, financial condition, operating results and prospects may have changed since such date.

**Presentation and Other Information** 

In this prospectus, "Exzeo," the "company," "our company," "we," "us" and "our" refer to Exzeo Group, Inc. and its consolidated subsidiaries.

No action is being taken by us or the underwriters in any jurisdiction outside the United States to permit a public offering of shares of common stock or possession or distribution of this prospectus in that jurisdiction. Persons who come into possession of this prospectus in jurisdictions outside the United States must inform themselves about and observe any restrictions relating to this offering and the distribution of this prospectus applicable to that jurisdiction.

Certain monetary amounts, percentages and other figures included in this prospectus have been subject to rounding adjustments. Percentage amounts included in this prospectus have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this prospectus may vary from those obtained by performing the same calculations using the figures in our consolidated financial statements or the figures included elsewhere in this prospectus. Certain other amounts that appear in this prospectus may not sum due to rounding.

**Market and Industry Data** 

This prospectus includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys, filings of public companies in our industry and internal company surveys. These sources include government and industry sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe the industry and market data to be reliable as of the date of this prospectus, this information could prove to be inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the forecasts from the sources relied upon or cited herein. Such data and assumptions, including those relating to a specified market's projected growth or future performance, are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "*Risk Factors.*" These and other factors could cause future performance to differ materially from such data and estimates. See "Cautionary Note Regarding Forward-Looking Statements."

**Non-GAAP Financial Measures** 

We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of the measurements are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America ("GAAP") under SEC rules and regulations. We refer to these measures as "non-GAAP financial measures." For example, in this prospectus, we present Adjusted EBITDA and Adjusted Revenue, which are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. We believe that non-GAAP financial measures, which may be defined and calculated differently by other companies, help explain and enhance the understanding of our results of operations. However, these measures should not be

------

##### [**Table of Contents**](#toc)
viewed as a substitute for those determined in accordance with GAAP. Reconciliations of our non-GAAP financial measures to the most comparable GAAP figures are included in this prospectus. For further discussion, see "Prospectus Summary—Summary Consolidated Financial Information."

**Trademarks and Service Marks** 

This prospectus contains references to a number of trademarks and service marks which are our registered trademarks or service marks or which are our trademarks or service marks for which we have pending applications or common law rights. Trade names, trademarks and service marks of other companies appearing in this prospectus are the property of their respective holders. Solely for convenience, the trademarks, service marks and trade names are referred to in this prospectus without the <sup>®</sup>, <sup>TM</sup> or <sup>SM</sup> symbols, but such references are not intended to indicate, in any way, that we or other owner thereof will not assert, to the fullest extent under applicable law, our or such owner's rights to these trademarks, service marks and trade names. We do not intend our use or display of other companies' trademarks, service marks or trade names to imply a relationship with, or endorsement or sponsorship of us by, such other companies.

**Until , all dealers that buy, sell or trade these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscription.** 

------

##### [**Table of Contents**](#toc)
**PROSPECTUS SUMMARY** 

*The following summary contains selected information about us and about this offering. It does not contain all of the information that may be important to you. You should review this prospectus in its entirety, including matters set forth under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and the Consolidated Financial Statements and the notes thereto included elsewhere in this prospectus. Some of the statements in the following summary constitute forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements."* 

**Our Business** 

**Who We Are** 

Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the "Exzeo Platform," currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain.

Through the Exzeo Platform, Exzeo provides technology-based solutions and services for all operational and administrative activities and functions needed by P&C insurance carriers and their agents, including quoting and underwriting, policy management, claims processing management, data reporting, and financial reporting. As a result, the Exzeo Platform streamlines and automates the interaction between insurance carriers and their policyholders.

Exzeo was established in 2012 as the technology and innovation division of HCI Group, Inc., or HCI, a leading underwriter of homeowners insurance in Florida and 12 other states. Exzeo's initial customers are insurance carriers or their managing general agent that are owned or managed by HCI and its subsidiaries, and Exzeo has derived substantially all of its revenues to date from such customers. In addition to working with existing customers to expand their business, Exzeo intends to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology. Exzeo was founded with a clear mission: to develop a platform that enhances underwriting margins, reduces operating expenses, enables rapid expansion across both geographic markets and product lines, and delivers a streamlined, user-friendly experience for both carriers and policyholders.

Exzeo's data-centric technology and mission inspired its name, which is derived from the combination of three words that describe the "Big Data" it collects and utilizes in its products and services: <u>Ex</u>abyte (a million trillion – 10<sup>18</sup> – bytes), <u>Ze</u>ttabyte (10<sup>21</sup> bytes) and <u>Yo</u>ttabyte (10<sup>24</sup> bytes).

We currently hold insurance agency or managing general agent licenses, as appropriate, in 29 states. Through the Exzeo Platform, we currently provide services in the following 13 states in which our customers have operations: Florida, Connecticut, Georgia, Massachusetts, Montana, North Carolina, New Jersey, New Mexico, Nevada, Rhode Island, South Carolina, South Dakota, and Utah. We intend to expand our operations (and obtain additional licenses as needed) in the 21 remaining states based upon growth plans of our existing customers or the existing geographies and growth plans of new customers with which we engage.

------

##### [**Table of Contents**](#toc)
**The Exzeo Platform** 

The Exzeo Platform is a proprietary software, analytics, and visualization tools platform that can support, enhance and/or replace legacy operational systems that are inefficient but commonplace across the insurance industry. With the Exzeo Platform, Exzeo has created and refined several out-of-the-box software offerings that can be tailored to a customer's specific insurance portfolio and operational needs. The Exzeo Platform accumulates, verifies, and analyzes proprietary and third-party data within its large data warehouse that is critical to making profitable insurance decisions in near real-time, and without the need of human underwriting input. A team of over 175 developers and data scientists work and collaborate daily to build, implement, and upgrade the Exzeo Platform.

The Exzeo Platform is designed to be highly scalable and to optimize the performance of companies that operate in the insurance markets to the benefit of policyholders, capital providers, and other participants in the P&C insurance value chain. Exzeo's technology-led solutions currently support the management of over $1.2 billion of in-force premium across 13 states and 4 insurance companies.

**Long-Standing P&C Software Development**![LOGO](g28749g00x09.jpg)

Source: Company data

(1) Customer Premiums-in-Force managed by Exzeo.

The Exzeo Platform has three core components: advanced underwriting solutions, data analytics solutions, and insurance management solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Advanced Underwriting Solutions** – Successful decision-making in the insurance industry requires the
ability both to consume large sets of structured and unstructured data and to transform those data into actionable underwriting decisions. Exzeo has a 13-year track-record of turning Big Data into predictive
algorithms to enhance underwriting decisions. Exzeo's technology platform uses a micro-site organizational structure to give customers maximum flexibility to optimize for underwriting characteristics specific to an individual insurance
company's risk appetite. By making precise decisions at the individual risk level, Exzeo's models help insurers build portfolios focused on profitable risk accumulation.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Data Analytics Solutions** – The Exzeo Platform transforms both structured and unstructured data into
an actionable format to power its advanced decision-based models and workflow systems. We believe that this purely data-driven decision approach enhances capabilities across a carrier's entire organization, including underwriting, portfolio
construction, and claims management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insurance Management Solutions** – The Exzeo Platform is designed to handle all day-to-day activities of insurance carriers. Exzeo provides front-end distribution management, underwriting and pricing models, policy
administration and claims management, and currently supports the operations of managing general agents, attorney-in-fact companies, and insurance/reinsurance carriers
and capital providers. The Exzeo Platform utilizes automated underwriting that requires minimal information from the insurance agent and leverages the extensive internal data repository that Exzeo develops and curates. Delivered through a flexible, web-based interface, Exzeo's suite of applications offers scalable and efficient solutions for insurance company management and operations.

**The Exzeo Value Proposition** 

Exzeo has an innovative approach that we believe enables customers to fundamentally reimagine their investments in technology. Exzeo offers a differentiated platform designed to achieve two paramount objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivering a comprehensive suite of products that supports the full underwriting infrastructure, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Providing a technology solution purpose-built to drive enhanced underwriting performance for its
customers.

The Exzeo Platform is structured primarily as a variable-cost model to its customers, wherein insurance companies are charged based on the volume of premium managed through the platform. Upfront expenditures by customers to begin utilizing the platform are minimal, enabling carriers to adopt the solution with limited initial financial burden.

We believe that this model inherently aligns Exzeo's incentives with those of its customers. Exzeo is motivated to support customers in optimizing profitability within their existing premium portfolios while facilitating growth in the most profitable lines of business. Consequently, we believe that the success of Exzeo is directly and meaningfully aligned with the success of its customers.

We believe that the effectiveness of the Exzeo Platform is demonstrated by its initial carrier customers' market-leading results. Exzeo's customers experienced an approximate 12 percentage point improvement in their average loss ratio compared with the Florida homeowners' insurance industry average loss ratio during the years 2017-2024 (representing the period post-application of the Exzeo Platform to our initial customers), and Exzeo's customers enjoyed increased efficiency with an expense ratio (*i.e.,* the dollar amount of operating cost needed to manage $1 of premium) of its customers improving by approximately 14 percentage points in 2024 compared to 2017. See "Our Business – Exzeo Platform Customer Case Studies – HCI's Industry Leading Underwriting Margins."

**Solutions Overview** 

Exzeo generates revenue from three primary sources: underwriting and management services, claim services, and other technology services. Underwriting and management services include policy issuance and renewal, reinsurance placement, and administrative support, with fees tied to a percentage of premiums written or assumed, plus related policy fees. Claim services involve investigating, adjusting, and settling claims, including catastrophe-related claims, with pricing based on percentage of premiums written or assumed, fees per claim or a percentage of the covered loss. Other technology services are primarily derived from proprietary software solutions offered through Software-as-a-Service, or SaaS, service agreements, with fees based on a combination of policy or claim volumes, fixed charges, or percentages of claims handled.

------

##### [**Table of Contents**](#toc)
**Our Growth Strategy**

Based on the use of the Exzeo Platform and the performance and growth of our current customers to date, we intend to pursue multiple opportunities to expand our customer base and grow managed premium for current and future customers. The following are the key elements of our growth strategy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Improve customer margins:** We intend to work with our existing customers to enable them to continue to
profitably grow their premium over time and to work with new carriers to profitably grow their business with the use of the Exzeo Platform and our solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Expand customer base:** In addition to working with existing customers to expand their business, we intend
to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology and variable fee structure. While we currently have one customer that is not affiliated with HCI, we do not expect
to generate significant revenue from this customer in the current fiscal year. As such, a key component of our growth strategy is to broaden our customer base beyond affiliates of HCI and reduce our reliance on a concentrated group of customers over
time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Facilitate the rapid growth of our customers:** Insurance companies have different approaches to growth due
to capital flexibility, market opportunity, and other factors. Exzeo gives customers flexibility to pursue their growth objectives including quickly capitalizing on growth opportunities in a cost-efficient manner, while giving them the tools to make
sound underwriting decisions. We intend to work with customers to facilitate rapid growth through the use and advantages of our platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Allow customers to grow into new states:** Exzeo will work with existing and new customers on our platform
to execute on expansion into new states and across the nation and to seize on customers' growth opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Allow customers to enter new lines of business:** Exzeo's variable-fee structure means that customers can grow new product lines at a pace that meets both their growth and profitability targets. We intend to work with customers to explore and expand into new lines to
facilitate their growth.

**Summary Risk Factors** 

There are a number of risks that you should understand before making an investment decision regarding this offering. These risks are discussed more fully in the section entitled "Risk Factors" following this prospectus summary. If any of these risks actually occur, our business, financial condition, or results of operations would likely be materially and adversely affected. In such case, the trading price of our common stock would likely decline, and you may lose all or part of your investment. These risks include, but are not limited to:

*Risks Related to Our Business and Industry* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not maintain profitability in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We expect a number of factors to cause our results of operations to fluctuate on a quarterly and annual
basis, which may make it difficult to predict our future performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may lose our existing customers and/or fail to acquire new customers. We expect to continue to rely on
a relatively small number of customers (including our existing customers) for a substantial portion of our revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our success will depend on the continuous development and improvement of our proprietary Insurance-as-a-Service platform of products and services, including the development and implementation of new features and analytical
models.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face intense competition in our industry, which could negatively impact our business, results of
operations, and financial condition and cause our market share to decline.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Natural catastrophes and environmental risks may have significant adverse effects on our customers'
property and casualty insurance businesses, which may prevent us from maintaining or expanding our customer base and increasing our revenue.

*Risks Related to Intellectual Property, Data Privacy, and Cybersecurity* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our intellectual property and proprietary rights are valuable, and any inability to obtain, maintain,
protect, defend, and enforce them could reduce the value of our products and brand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An unauthorized disclosure or loss of customer or employee data or information or other sensitive,
confidential or personal information, including by cyber-attack or other security breach, or a suspected or actual violation of federal or state data privacy or protection laws, regulations or other obligations, could cause a loss of data or
information, give rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could have an adverse effect on our business, cash flows, financial condition, and
results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our information technology systems may fail or be disrupted or subject to errors, bugs, vulnerabilities,
or defects, which could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any disruption of our Internet connections, including to any third-party cloud providers that host any of
our websites or web-based services, could affect the success of our Insurance-as-a-Service platform of products and services and our business.

*Risks Related to Regulation of Our Business* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We operate in a highly regulated environment, and any failure to comply with applicable insurance, data
privacy, or other regulatory requirements could materially and adversely affect our business, financial condition, and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulatory scrutiny of delegated authority and claims administration functions may increase our regulatory
compliance costs, limit our flexibility, and adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to stringent fiduciary duties with respect to insurance premium funds, and noncompliance
could result in regulatory enforcement or reputational harm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to extensive and evolving data privacy and cybersecurity regulation, which could increase
our compliance burden and exposure to liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our international operations in India expose us to regulatory risks under Indian law and cross-border
compliance obligations.

*Risks Related to Our Relationship with HCI* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HCI controls the direction of our business, and the concentrated ownership of our common stock will prevent you
and other shareholders from influencing significant decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If HCI sells a controlling interest in us to a third party in a private transaction, you may not realize any change-of-control premium on shares of our common stock, and we may become subject to the control of a currently unknown third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HCI's interests may conflict with our interests and the interests of our other shareholders. Conflicts of
interest between HCI and us could be resolved in a manner unfavorable to us and our other shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Chief Executive Officer and Chairman of our board of directors may have actual or potential conflicts of
interest because of his financial interests in HCI or because of his positions with HCI.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have, and expect to continue to have, significant customer concentration, and substantially all of our
revenues to date are from customers who are affiliated with our controlling shareholder, HCI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to achieve some or all of the anticipated benefits of being a standalone public company.

*Risks Related to Our Common Stock and the Securities Markets* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no existing market for our common stock and an active, liquid trading market for our common stock
may not develop following this offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The market price of our common stock may be highly volatile, and you may not be able to resell your shares at or
above the initial public offering price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Holders of our common stock may be diluted and our stock price may decline due to equity issuances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are an emerging growth company and the information we provide shareholders may be different from
information provided by other public companies, which may result in a less active trading market for our common stock and higher volatility in our stock price.

**Emerging Growth Company Status** 

We are an "emerging growth company," as defined by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). We will continue to be an emerging growth company until the earliest to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which our total annual gross revenues first meet or exceed
$1.235 billion (as adjusted for inflation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have, during the prior three-year period, issued more than $1.0 billion in non-convertible debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which we (i) have an aggregate worldwide market value of common
stock held by non-affiliates of $700 million or more (measured at the end of each fiscal year) as of the last business day of our most recently completed second fiscal quarter and (ii) have been a
reporting company under the Securities Exchange Act of 1934 (the "Exchange Act"), for at least one year (and have filed at least one annual report under the Exchange Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
common stock pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act").

For as long as we are an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements, and exemptions from the requirement of holding a nonbinding advisory vote on executive compensation and shareholder approval on golden parachute compensation not previously approved. We may choose to take advantage of some or all of these reduced burdens. For example, we have taken advantage of the reduced disclosure obligations regarding executive compensation in this prospectus.

For as long as we take advantage of the reduced reporting obligations, the information we provide shareholders may be different from information provided by other public companies. In addition, it is possible that some investors will find our common stock less attractive as a result of these elections, which may result in a less active trading market for our common stock and higher volatility in the price of our common stock.

We have elected to not take advantage of the extended transition period that allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private

------

##### [**Table of Contents**](#toc)
companies, which means that the financial statements included in this prospectus, as well as financial statements we file in the future, will be subject to all new or revised accounting standards generally applicable to public companies. Our election not to take advantage of the extended transition period is irrevocable.

**Our Corporate Information** 

Exzeo Group, Inc. is the registrant and the issuer of the common stock being sold in this offering. Our corporate headquarters is located at 1000 Century Park Dr, Tampa, FL 33607. Our telephone number is (813) 776-1000. Our website address is *www.exzeo.com*. Information contained on, or that can be accessed through, our website is not part of, and is not incorporated into, this prospectus.

Exzeo was established in 2012 as the technology and innovation division of HCI. We are now a majority owned subsidiary of HCI. HCI is a Florida corporation and publicly traded company listed on the New York Stock Exchange under the symbol "HCI" with operations in homeowners' insurance, reinsurance, real estate, and information technology. Immediately prior to this offering, HCI holds approximately 90.69% of our outstanding common stock, and current and former employees and directors of Exzeo hold the remaining approximately 9.31%.

We were incorporated in the State of Florida on July 21, 2020 as TypTap Insurance Group, Inc. In February 2025, we changed our name to Exzeo Group, Inc. Exzeo Group, Inc. operates through the following wholly owned subsidiaries: (i) Exzeo Insurance Services, Inc., a Florida corporation that, among other things, handles claims processing, policyholder service, and marketing; (ii) Exzeo USA, Inc., a Florida corporation focused on developing software products to modernize the insurance industry; (iii) Dark Horse Re, LLC, a Florida limited liability company that provides reinsurance intermediary brokerages; and (iv) Cypress Tech Development Company, Inc., a Florida corporation which also owns Exzeo Software Private Limited, a subsidiary domiciled in India. Following this offering, Exzeo Group, Inc. will continue to be majority owned by HCI but will be managed and operated primarily as an independent public company. After giving effect to the offering at a price per share of $(the midpoint of the range set forth on the cover of this prospectus) and assuming the exercise in full of the underwriters' option, HCI will own approximately % of our outstanding common stock, current and former employees and directors of Exzeo will own approximately %, and investors in this offering will own approximately %.

------

##### [**Table of Contents**](#toc)
The chart below displays the structure described above.

![LOGO](g28749g78k77.jpg)

------

##### [**Table of Contents**](#toc)
**The Offering** 

---

| | |
|:---|:---|
| **Common stock offered by us**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or shares if the underwriters exercise in full their option to purchase additional shares). |

---

---

| | |
|:---|:---|
| **Underwriters' option to purchase additional shares of common stock**  | The underwriters have an option to purchase up to additional shares of common stock from us at the initial public offering price, less underwriting discounts and commissions. The underwriters can exercise this option at any time within 30 days from the date of this prospectus. |

---

---

| | |
|:---|:---|
| **Common stock to be outstanding after this offering**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares (or shares if the underwriters exercise their option to purchase additional shares from us in full). |

---

---

| | |
|:---|:---|
| **Use of proceeds**  | We estimate that we will receive net proceeds from the sale of shares of our common stock in this offering of approximately $ million, assuming an initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We intend to use the net proceeds from this offering for general corporate purposes, including working capital, software development, operating expenses and capital expenditures. Additionally, we may use a portion of the net proceeds to acquire or invest in businesses or technologies. However, currently we do not have agreements or commitments for any material acquisitions or investments. Pending the use of proceeds from this offering as described above, we plan to invest the net proceeds that we receive in this offering in short-term and intermediate-term interest-bearing obligations, investment-grade investments, certificates of deposit, or direct or guaranteed obligations of the U.S. government. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds. See "Use of Proceeds." |

---

---

| | |
|:---|:---|
| **Dividend policy**  | We do not expect to pay any dividends on our common stock for the foreseeable future. See "Dividend Policy." |

---

---

| | |
|:---|:---|
| **Trading symbol**  | We intend to apply to list our common stock on the New York Stock Exchange ("NYSE") under the symbol "XZO". |

---

---

| | |
|:---|:---|
| **Directed share program**  | At our request, the underwriters have reserved up to 5% of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to certain individuals associated with us and our stockholders. The sales will be administered by Truist Securities, Inc., an underwriter in this offering, and its affiliates. The number of shares of common stock available for sale to the general public will be  |

---

------

##### [**Table of Contents**](#toc)
reduced to the extent these persons purchase such reserved shares of common stock. Any reserved shares of common stock that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares of common stock offered by this prospectus. See "Underwriting—Directed Share Program." <br>

---

| | |
|:---|:---|
| **Risk factors**  | Investing in our common stock involves a high degree of risk. See "Risk Factors" beginning on page 13 of this prospectus for a discussion of factors you should carefully consider before investing in our common stock. |

---

The number of shares of our common stock that will be outstanding immediately after this offering is based on shares of our common stock outstanding as of , 2025.

The number of shares of our common stock to be outstanding after this offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 6,350,000 shares of our common stock issuable upon the exercise of options granted under our 2021 Omnibus
Incentive Plan, or 2021 Omnibus Plan, at an exercise price of $23.00 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,275,776 shares of common stock reserved for future issuance under the 2021 Omnibus Plan, as well as any
automatic increases in the number of shares of common stock reserved for future issuance under the plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 10,000,000 shares of our common stock reserved for future issuance under our 2025 Omnibus Incentive Plan, or
2025 Omnibus Plan, which will become effective in connection with this offering (which number includes 3,275,776 shares of common stock available for future issuance under the 2021 Omnibus Plan), and shares of our common stock that become
available pursuant to provisions in the 2025 Omnibus Plan that automatically increase the share reserve under the 2025 Omnibus Plan.

**Unless the context otherwise requires, the information in this prospectus:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumes that the shares of our common stock to be sold in this offering are sold at
$ per share (the midpoint of the range set forth on the cover of this prospectus);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumes that all shares of our common stock offered hereby are sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assumes no exercise by the underwriters of their option to purchase additional shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gives effect to the filing and effectiveness of our amended and restated articles of incorporation and the
adoption of our amended bylaws, each of which will occur immediately prior to the completion of this offering.

------

##### [**Table of Contents**](#toc)
**SUMMARY CONSOLIDATED FINANCIAL INFORMATION** 

*The following tables present summary historical consolidated financial data of Exzeo Group, Inc. and its consolidated subsidiaries.* 

*The summary historical consolidated financial and other data presented below do not purport to be indicative of the results that can be expected for any future period and should be read together with "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus.* 

---

| | | | |
|:---|:---|:---|:---|
|  | **As of<br>June 30,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** | **2023** |
| **($ in thousands)** | **(Unaudited)** |  |  |
|  Cash and cash equivalents | $110732 | $54502 | $15055 |
|  Assets of discontinued operations |  |  | 576376 |
|  Total assets | 160812 | 89441 | 625007 |
|  Contract liabilities | 82205 | 55576 | 40080 |
|  Liabilities of discontinued operations |  |  | 439975 |
|  Total liabilities | 104261 | 73934 | 554142 |
|  Total liabilities, redeemable preferred stock and stockholders' equity | 160812 | 89441 | 625007 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2022** |
| **($ in thousands)** | **(Unaudited)** | **(Unaudited)** |  |  |  |
|  Revenue | $108498 | $60305 | $133948 | $88333 | $45631 |
|  Cost of revenue | 46122 | 36919 | 80739 | 71061 | 71740 |
|  Gross profit (loss) | 62376 | 23386 | 53209 | 17272 | (26109) |
|  Operating expenses |  |  |  |  |  |
|  Selling, general and administrative | 5666 | 4232 | 8343 | 7898 | 7339 |
|  Research and development | 4575 | 3290 | 6514 | 6528 | 4130 |
|  Depreciation and amortization | 211 | 156 | 335 | 292 | 175 |
|  Total operating expenses | 10452 | 7678 | 15192 | 14718 | 11644 |
|  Operating income (loss) | 51924 | 15708 | 38017 | 2554 | (37753) |
|  Operating margin <sup>(1)</sup> | 48% | 26% | 28% | 3% | (83%) |
|  Income (loss) from continuing operations, after taxes | $39614 | $9111 | $26068 | $12901 | $(42014) |
|  Net cash provided by (used in) operating activities | 57526 | 18227 | 49266 | 10153 | (13990) |
|  Net cash provided by (used in) investing activities | (1252) | (1802) | (3334) | (3247) | (21448) |
|  Net cash provided by (used in) financing activities |  | (3016) | (6398) | (7124) | 12066 |
|  Other data |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA <sup>(2)</sup> | $54769 | $18323 | $43958 | $7670 | $(32581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted Revenue <sup>(3)</sup> | 102412 | 56414 | 120169 | 80633 | 33899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA Margin <sup>(4)</sup> | 53.5% | 32.5% | 36.6% | 9.5% | (96.1%) |

---

(1) We define Operating margin as Operating income (loss) as a percentage of Revenue.

------

##### [**Table of Contents**](#toc)
(2) We define Adjusted EBITDA, as net income (loss), adjusted to exclude income tax, interest expense, investment
income, depreciation and amortization, and stock-based compensation expense. We use Adjusted EBITDA as a key measure of our operating performance and to assess the results of our business excluding certain items that we believe are not indicative of
our core operating results. However, Adjusted EBITDA should not be viewed in isolation or as a substitute for Net income (loss) calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently. Refer to
"Management's Discussion and Analysis - Non-GAAP Financial Measures" for additional details.

(3) We define Adjusted Revenue as the portion of total GAAP revenue that is earned through services delivered
directly via our proprietary platform technology, without being outsourced to third-party service providers. This metric excludes revenue associated with services primarily within claims management that we outsource to a subsidiary of HCI. Although
this revenue is recognized on a gross basis because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from outsourced service providers closely match the revenue recognized. We
believe the Adjusted Revenue provides investors with useful insight into the performance and scalability of our core platform services and helps clarify the underlying revenue contribution from internally delivered operations. This metric also
assists management and investors in evaluating period-over-period trends in technology-driven revenue streams, excluding variability associated with outsourced service arrangements. This non-GAAP measure
should not be considered in isolation or as a substitute for total revenue or any other performance measure calculated in accordance with GAAP. Refer to "Management's Discussion and Analysis - Non-GAAP Financial Measures" for additional details.

(4) We define Adjusted EBITDA Margin, as Adjusted EBITDA expressed as a percentage of Adjusted Revenue. This
measure provides management and investors with additional insight into our operating efficiency and the scalability of our business model, as it reflects our progress toward long-term profitability.

------

##### [**Table of Contents**](#toc)
**RISK FACTORS** 

*Investing in our common stock involves a high degree of risk. You should carefully consider the following risks and uncertainties, together with all of the other information contained in this prospectus, before deciding to invest in our common stock. Our business, financial condition, results of operations, and prospects could be materially and adversely affected by any of these risks or uncertainties, as well as by risks or uncertainties not currently known to us, or that we do not currently believe are material. In that case, the trading price of our common stock could decline, and you may lose all or part of your investment.* 

**Risks Related to Our Business and Industry** 

***We may not maintain profitability in the future.***

We may incur significant losses in the future for a number of reasons, including insufficient growth in the number of new customers, a failure to retain our existing customers, and increasing competition, as well as other risks described in this "Risk Factors" section, and we may encounter unforeseen expenses, difficulties, complications and delays, and other unknown factors. We expect to continue to make investments in the development and expansion of our business, which may not result in increased or sufficient revenue or growth, as a result of which we may not be able to maintain profitability in the future.

***We expect a number of factors to cause our results of operations to fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance.***

Our revenue and results of operations could vary significantly from quarter to quarter and year to year and may fail to match periodic expectations as a result of a variety of factors, many of which are outside of our control. Our results may vary from period to period as a result of fluctuations in the number of customers purchasing our insurance technology and operations solutions as well as fluctuations in the timing and amount of our expenses. In addition, the property and casualty insurance industry we serve is subject to its own cyclical trends and uncertainties, including periods of intense pricing competition due to excessive underwriting capacity, periods when shortages of underwriting capacity permit more favorable underwriting profits as well as extreme weather which is often seasonal and may result in volatility in claims reporting and payment patterns. Fluctuations and variability across the industry may also affect our revenue. As a result, comparing our results of operations on a period-to-period basis may not be meaningful, and the results of any one period should not be relied on as an indication of future performance. Our results of operations may not meet the expectations of investors or public market analysts who follow us, which may adversely affect our stock price. In addition to other risk factors discussed in this "Risk Factors" section and elsewhere in this prospectus, factors that may contribute to the variability of our quarterly and annual results include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to attract and retain new customers and retain our existing customers, including in a
cost-effective manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to accurately forecast revenue and losses and appropriately plan our expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effects of increased competition on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to successfully expand our business in existing markets and successfully enter new markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to obtain, maintain, protect, defend, and enforce our existing intellectual property and to
create or otherwise acquire new intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to grow our business and effectively manage that growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to keep pace with technology changes in the insurance technology industry and the property and
casualty insurance industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the success of our sales and marketing efforts;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs associated with defending claims, including intellectual property infringement, misappropriation, or
other claims and related judgments or settlements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of, and changes in, governmental or other regulations affecting our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the attraction and retention of qualified employees and key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effectiveness of our internal controls; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our tax rates or exposure to additional tax liabilities.

***We may lose our existing customers and/or fail to acquire new customers.***

Our future operating results will depend, in part, on the rate at which we acquire new customers and on our ability to maintain our relationships with existing customers as measured by the amount of managed premium on our Insurance-as-a-Service platform. Our ability to support this expansion depends on the performance of our customer, onboarding, and support teams, which are critical to ensuring high customer satisfaction, adoption, and retention.

We believe that growth of our business and revenue depends upon our ability to expand our business in the geographic markets that we currently serve by retaining our existing customers and adding new customers and to expand our business into new geographic markets across the nation. Expanding into new geographic markets takes time, requires us to navigate and comply with new regulations, and may occur more slowly than we expect. If we lose our existing customers, our value will diminish, materially and adversely impacting our business, operating results and financial condition, our ability to implement our business plan, and, unless we have acquired significant new customers, our ability to continue to operate. In addition, the loss of future customers could lead to diminished revenue, which would adversely impact our profitability. If we fail to remain competitive on customer experience, pricing, and service options, our ability to grow our business may also be adversely affected.

Further, our ability to attract new customers may be adversely affected by the fact that we are majority-owned by HCI, who competes with certain potential customers. Prospective customers who view HCI as a competitor may be reluctant to engage with us, or may elect to seek products and services from other providers, which could materially and adversely impact our growth prospects and results of operations. In addition, customers who compete with HCI may be hesitant to share sensitive business information or data with us, out of concern that such information or data could be accessible to, or used by, HCI to the detriment of the customer, which may further inhibit our ability to win new business.

While a key part of our business strategy is to retain and add customers in our existing markets, we also intend to expand our operations into new markets. In doing so, we may incur losses or otherwise fail to enter new markets successfully. Our expansion into new markets may place us in unfamiliar competitive environments and involve various risks, including competition, government regulation, the need to invest significant resources, and the possibility that returns on such investments will not be achieved for several years or at all.

There are many factors that could negatively affect our ability to grow our customer base, including if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our proprietary Insurance-as-a-Service platform of products and services fails to achieve market acceptance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competing platforms, solutions, products, and services that serve as substitutes for, or represent an
improvement over, our platform, solutions, products, and services are introduced and gain market share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we lose customers to new market entrants and/or existing competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we do not obtain regulatory approvals necessary for expansion into new markets;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to effectively market and advertise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we suffer reputational harm to our brand including from negative publicity, whether accurate or
inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to provide effective updates to our existing platform, solutions, products, and services or to
keep pace with technological improvements in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technical or other problems frustrate the policyholder experience, particularly if those problems prevent
us from processing and paying claims in a fast and reliable manner, or affect the functionality of the policy administration and underwriting systems; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we fail to obtain, maintain, protect, defend, and enforce our intellectual property and proprietary
rights.

Our inability to overcome these challenges could impair our ability to attract and retain new customers and retain our existing customers and could have a material adverse effect on our business, operating results, and financial condition.

In addition, if the market for our platform, solutions, products, and services grows more slowly than anticipated, or if demand for our platform, solutions, products, and services does not grow as quickly as anticipated, whether as a result of competition, pricing sensitivities, product obsolescence, technological change, unfavorable economic conditions, uncertain geopolitical environment, budgetary constraints of our customers, or other factors, our business, results of operations, and financial condition would be adversely affected.

***We have relied on a small number of customers, all of which are affiliated with HCI, for all of our revenue, and we expect to continue to rely on a relatively small number of customers (including our existing customers) for a substantial portion of our revenue. The loss of any of these customers would significantly harm our business, results of operations, and financial condition.***

All of our revenue prior to this offering comes from a small number of customers, all of which are affiliated with HCI, and we expect that our future revenue will continue to be dependent on a relatively small number of customers in the property and casualty insurance industry, which may be adversely affected by worldwide economic, environmental, public health, and political conditions. While we expect this reliance to decrease over time as our customer base and revenue grow, we expect that we will continue to depend upon a relatively small number of customers (including our existing customers) for a significant portion of our revenue for the foreseeable future. The loss of any of these customers or a reduction in revenue from any of these customers would significantly harm our business, results of operations, and financial condition. If we fail to successfully sell our insurance technology and operations solutions to one or more of these anticipated or existing customers or fail to identify additional potential customers or such customers purchase fewer of our insurance technology and operations solutions, defer or terminate agreements, fail to renew their agreements or otherwise terminate or scale back their relationship with us, our business, results of operations, and financial condition would be harmed. Additionally, if one or more of these anticipated customers do not enter into an agreement with us in any particular period, or if we fail to achieve any required performance criteria for one or more of these relatively small number of customers, our quarterly and annual results of operations may fluctuate significantly.

***Our success will depend on the continuous development and improvement of our proprietary Insurance-as-a-Service platform of products and services, including the development and implementation of new features and analytical models.***

To date, our Insurance-as-a-Service platform of products and services has only been utilized internally by affiliates of our company. Our future success will depend on the continuous development and improvement of our proprietary Insurance-as-a-Service platform of products and services, including further refinements and enhancements to our data engine, analytical models, proprietary underwriting algorithms, and agent and customer interfaces. The success of our efforts to further develop and refine our Insurance-as-a-Service platform depends

------

##### [**Table of Contents**](#toc)
on several factors, including the timely completion, introduction and effectiveness of such refinements and enhancements. We may not be successful in either developing these refinements and enhancements or in bringing them into use in a timely fashion. Our Insurance-as-a-Service platform is expensive and complex, and its continuous development, maintenance and operation may entail unforeseen difficulties, including performance problems or undetected defects, errors, failures, bugs, or vulnerabilities. We may encounter technical obstacles, especially in implementing our platform for new third-party customers, and it is possible that we may discover additional problems that prevent our technology from operating properly. Any of these possibilities would result in a material adverse effect on our business, results of operations, and financial condition.

***Estimates of market opportunity may prove to be inaccurate.***

Market opportunity estimates, including those we have generated ourselves, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The variables that go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of potential customers covered by our market opportunity estimates will purchase our insurance technology and operations solutions at all or generate any particular level of revenue for us. Any expansion of our business depends on a number of factors, including the cost, performance, and perceived value associated with our platform, solutions, products, and services and those offered by our competitors.

***We face intense competition in our industry, which could negatively impact our business, results of operations and financial condition and cause our market share to decline.***

The market for our insurance technology and operations solutions is intensely competitive and fragmented. This market is subject to changing technology, shifting customer needs, and introductions of new products, solutions, and services. Competitors vary in size and in the breadth and scope of the products, solutions, and services offered. In addition, the competitors we face in any particular sale may change depending on, among other things, the breadth and scope of the products, solutions, and services being sold, the geography in which we are operating, and the size of the insurance carrier to which we are selling. The principal competitive factors in our industry include total cost of ownership, product functionality, flexibility, and performance, customer references, and in-depth knowledge of the property and casualty insurance industry. Competitors may also compete on the basis of the time and cost required for implementation of the applicable products, solutions, and services and/or unique features or functions.

Additionally, we believe that many of our prospective customers operate firmly entrenched legacy systems, some of which have been in operation for decades. We expect that our implementation cycles will be lengthy and variable and will require the investment of significant time and expense. These expenses and associated operating risks attendant on any significant process of technology implementation may cause prospective customers to prefer maintaining their legacy systems. Also, maintaining legacy systems may be so time consuming and costly for prospective customers that they do not have adequate resources to devote to the purchase and implementation of our insurance technology and operations solutions. We also expect to compete against technology consulting firms that either helped create such legacy systems or may own, in full or in part, subsidiaries that develop software and systems for the property and casualty insurance industry. As we work to expand our business and begin to market our insurance technology and operations solutions to new customers who are not affiliates of HCI, we will also begin to compete with software and service providers we have not competed against previously. Such potential competitors offer data and analytics tools that may, in time, become more competitive with our offerings. In addition, instead of purchasing property and casualty insurance technology and operations solutions from a third party, including one of our direct competitors, our customers may decide to internally develop their own systems.

We expect the intensity of competition to remain high in the future. In addition to existing competitors in this market, we believe investment in emerging insurance technology or InsurTech companies, which seek to

------

##### [**Table of Contents**](#toc)
innovate and disrupt the insurance industry, is growing rapidly and could produce new competitive threats. Continuing intense competition could result in increased pricing pressure, increased sales and marketing expenses, and greater investments in research and development, each of which could negatively impact our profitability. In addition, the failure to increase or the loss of market share would harm our business, results of operations, financial condition, and/or future prospects.

Current and potential competitors have longer operating histories, greater name recognition, and greater financial, technical, sales, marketing and other resources than we do, as well as larger customer bases. As a result, such competitors may be able to devote greater resources to the development, promotion and sale of their solutions, products, and/or services than we can devote to ours, which could allow them to respond more quickly than we can to new or emerging technologies and changes in customer needs, thus leading to their wider market acceptance. To the extent any competitor has existing relationships with potential customers for other applications, those customers may be unwilling to purchase our solutions because such existing relationships create customer "stickiness." For instance, if a potential customer uses one product or solution from a competitor that is key to the customer's day-to-day operations, they may be more likely to turn to such competitor in the future to the extent they require further products or solutions, rather than purchasing products or solutions from us. We may not be able to compete effectively and competitive pressures may prevent us from acquiring and maintaining the customer base necessary for us to increase our revenue and profitability.

In addition, our industry is evolving rapidly, and we anticipate the market for products, solutions, and services like those we provide will become increasingly competitive. New competitors may emerge that offer products, solutions, and services either comparable to ours or better suited than ours to address the demand for such products, solutions, and services, which could reduce demand for our offerings. To compete effectively, we will likely be required to increase our investment in product development and technology, as well as the personnel and third-party services required to improve reliability and lower the cost of delivery of our solutions. This may increase our costs more than we anticipate and may adversely impact our results of operations.

Current and potential competitors may also establish cooperative relationships among themselves or with third parties to further enhance their resources and offerings. Current or potential competitors may be acquired by other vendors or third parties with greater available resources. As a result of such acquisitions, current or potential competitors might be more able than we are to adapt quickly to new technologies and customer needs, to devote greater resources to the promotion or sale of their solutions, products, and services, to initiate or withstand substantial price competition, or to take advantage of emerging opportunities by developing and expanding their offerings more quickly than we can. Additionally, they may hold larger portfolios of patents and other intellectual property rights as a result of such relationships or acquisitions. If we are unable to compete effectively with these evolving competitors for market share, our business, results of operations, and financial condition would be materially and adversely affected.

***Natural catastrophes and environmental risks may have significant adverse effects on our customers' property and casualty insurance businesses, which may prevent us from maintaining or expanding our customer base and increasing our revenue.***

Our customers are property and casualty insurers that have experienced, and will continue to experience in the future, losses from catastrophes that have adversely impacted and may in the future adversely impact their businesses. Catastrophes can be caused by various events, including, without limitation, hurricanes, tsunamis, floods, typhoons, windstorms, earthquakes, hail, tornadoes, explosions, volcanic eruptions, severe weather, excessive heat, epidemics, pandemics, and fires. Climate change and other environmental factors are contributing to an increase in erratic weather patterns globally and intensifying the impact of certain types of catastrophes. The risks associated with natural catastrophes are inherently unpredictable, and it is difficult to forecast the timing of such events or estimate the amount of losses they will generate. Recently, for example, various parts of the United States have suffered extensive damage due to hurricanes, droughts, floods, severe heat and cold events, fires, and other natural disasters. The combined and expected effect of those losses on insurance carriers

------

##### [**Table of Contents**](#toc)
is significant. Such losses and losses due to future events may adversely impact our existing and potential customers, which may prevent us from maintaining or expanding our customer base and increasing our revenue, as such events may cause customers to postpone new service engagements, discontinue or reduce existing service engagements, or, in severe cases, cease operations entirely. The failure of our existing or one or more potential customers due to these external pressures could result in the loss of those customers or otherwise negatively affect our revenue and growth.

***There may be consolidation in the insurance industry, which could reduce the use of our platform, solutions, products, and services and adversely affect our revenues.***

Mergers or consolidations among our customers could reduce our number of existing customers and potential customers. This could adversely affect our revenues even if these events do not reduce the aggregate number of customers or the activities of the consolidated entities. If our existing customers or future customers merge with or are acquired by other entities that are not our customers, or that purchase more limited solutions, products, and services from us, they may discontinue or reduce the scope of solutions, products, and services we provide to them. Any of these developments could materially and adversely affect our business, results of operations, and financial condition.

***Large potential customers may have substantial negotiating leverage, which may require that we agree to terms and conditions that result in increased cost of sales, decreased revenue, and lower average selling prices and gross margins, all of which could harm our results of operations.***

Our target market for potential customers includes large property and casualty insurers. These customers may have significant bargaining power when negotiating new agreements with us and have the ability to buy similar products, solutions, and services from other companies or to develop such products, solutions, and services internally. These customers may have and may continue to seek advantageous pricing and other commercial and performance terms that may require us to develop additional features in the products we utilize in providing services to them or add complexity to our customer agreements. These customers may also delay making payments under agreements, or at renewal, in an attempt to obtain more favorable terms from us. We may be required to reduce the average price of our products, solutions, and services in response to these pressures. If we are unable to avoid reducing our average prices, our results of operations could be harmed.

***We may fail to set the optimal pricing and packaging of our insurance technology and operations solutions, which could negatively impact our growth strategy and ability to effectively compete in the market.***

We may face challenges in selling our insurance technology and operations solutions to insurers that have internally developed their own proprietary software, and we face competition from emerging and established vendors. As a result, these companies may offer lower prices, additional solutions, products, or services, or other incentives that may impact our ability to maintain our prices.

The market for our insurance technology and operations solutions is constantly evolving, and our pricing and packaging decisions are made based on the best information available at the time, but may change significantly in the future from our expectations. We expect that we will continually analyze and refine our pricing and packaging models to adapt to this dynamic environment. For example, we may need to change our pricing in future periods in response to market demands, the inflation and interest rate environment, or increased costs. Our contracts are generally multi-year in duration and unforeseen changes could impact the profitability of certain contracts. Further, as competitors introduce new solutions, products, and services that compete with ours or reduce their prices, we may be unable to attract new customers or retain existing customers based on our historical pricing. In addition, if our mix or bundle of solutions, products, and services sold changes, then we may need to, or choose to, revise our pricing. As a result, we may be required or choose to reduce our prices or change our pricing model, which could harm our business, results of operations, and financial condition. In addition, we cannot predict whether our current or prospective customers, or the market in general, will accept

------

##### [**Table of Contents**](#toc)
these changes. If these adjustments do not gain acceptance, our business and operational results could be adversely affected. Failure to identify an optimal pricing and packaging strategy may harm our business and operational outcomes. Should customers reject our new or modified pricing plans, we may face increasing challenges in attracting new customers and retaining existing ones, particularly if we attempt to apply new pricing models to current customers.  ****

***Because the business conducted by our customers is highly concentrated in Florida and other coastal states, adverse economic conditions, natural disasters, or regulatory changes in these states could adversely affect our customers' and, in turn, our financial condition, results of operations, and cash flows.***

A significant portion of the business conducted by our customers is concentrated in Florida and other coastal states. The insurance business is primarily a state-regulated industry, and therefore, state legislatures may enact laws that adversely affect the insurance industry. Because the business conducted by our customers is concentrated in Florida and other coastal states, both we and our customers face greater exposure to unfavorable changes in regulatory conditions in those states than companies whose operations are more diversified through a greater number of states. In addition, the occurrence of adverse economic conditions, natural or other disasters, or other circumstances specific to or otherwise significantly impacting these states could adversely affect the financial condition, results of operations, and cash flows of our customers, which could, in turn, adversely affect our financial condition, results of operations, and cash flows in the event that our customers are unable to pay us in accordance with the terms of our agreements with them.

***We expect that our sales cycles may be lengthy and variable, may depend upon factors outside our control, and may cause us to expend significant time and resources.***

The sales cycle for our Insurance-as-a-Service platform of products and services may be lengthy and unpredictable, require extensive pre-purchase evaluation by potential new customers, involve a significant operational decision by potential new customers, and be affected by factors outside of our control. Our sales efforts will involve educating potential new customers about the use and benefits of our platform, including the technical capabilities of our platform, the potential cost savings achievable by organizations deploying our platform, and the benefits and risks associated with cloud-based products. Customers may undertake a significant evaluation process, involving not only our platform of products and services, but also those of our competitors. We expect to spend substantial time, effort, and money in our sales efforts without any assurance that our efforts will produce sales, and our customers have significant negotiating power during the sales process which may result in a lengthy sales cycle and significant contractual complexity. Additionally, we may be unable to predict the size and terms of the initial contract with a potential customer until late in the sales cycle, which would affect our ability to accurately forecast revenue. In addition, if we commit to include specific features in our platform at the request of a customer or group of customers, we may be unable to recognize revenue until the specific features have been delivered as part of our platform of products and services. Providing this additional functionality may be time consuming and may involve factors that are outside of our control. Potential future customers may also insist that we commit to certain time frames in which our platform of products and services will be operational or that, once operational, our platform of products and services will be able to meet certain operational requirements. Our ability to meet such timeframes and requirements may involve factors that are outside of our control, and failure to meet such timeframes and requirements could result in us failing to attract and/or retain new customers, incurring penalties and costs, and/or making additional resource commitments, which would adversely affect our business and results of operations.

Before our Insurance-as-a-Service platform of products and services can be utilized by our customers, it must be integrated with our customers' and/or third parties' systems and customer and/or third-party data must be added to it. This process can be complex, time consuming, and expensive for our customers and can result in delays in the implementation and deployment of our platform of products and services. Failing to meet the expectations of our customers with respect to our platform of products and services could result in a loss of customers and negative publicity about us and our platform of products and services. Such failure could result from deficiencies

------

##### [**Table of Contents**](#toc)
in our platform's capabilities, performance issues, or inadequate service by us. The consequences of such failure could include monetary credits, reduced fees for additional products or services or upon renewal of existing agreements for products and services, potential reversals of previously recognized revenue, renegotiating existing customers' contractual terms, and a customer's refusal to pay their contractually obligated fees and costs. In addition, time-consuming and delayed implementations may also increase the amount of services personnel we must allocate to the implementation for it to be successful, thereby increasing our costs and adversely affecting our business, results of operations, and financial condition.

***We utilize models to provide services to our customers in key areas such as underwriting, reserving, risk management, reinsurance purchasing, and the evaluation of catastrophe risk, and our customers and our business could be adversely impacted if these models are inadequate or unfit for the purpose for which they are being used.***

We employ various modeling techniques (for example, scenario, predictive, stochastic, and/or forecasting models) to analyze and estimate exposures and risks for our customers. We utilize modeled outputs and related analyses to assist us in providing services to our customers, for example, related to underwriting and pricing, reserving, risk management, reinsurance purchasing, and the evaluation of catastrophe risk through estimates of probable maximum losses, or "PMLs." The modeled outputs and related analyses, both from proprietary and third-party models, are subject to various assumptions, professional judgment, uncertainties, and the inherent limitations of any statistical analysis, including the use and quality of historical internal and industry data. These models may turn out to be inadequate representations of the underlying subject matter, including as a result of inaccurate inputs or application thereof (whether due to data error, human error, or otherwise). Further, to the extent we incorporate automation and machine learning as part of our modeling process, this may lead to heightened risk. Consequently, actual losses from loss events, whether from individual components (for example, wind, flood, earthquake, etc.) or in the aggregate, may differ materially from modeled results. If, based upon these models or other factors, we misprice products or underestimate the frequency and/or severity of loss events, our results of operations, financial condition, and liquidity may be adversely affected. In addition, PMLs are based on results of stochastic models that consider a wide range of possible events, their losses and probabilities. It is important to consider that stochastic events are not an exact representation of actual events. Thus, an actual event does not necessarily resemble one of the stochastic events, and the specific characteristics of the actual event can lead to substantial differences between actual and modelled losses.

With respect to the evaluation of catastrophe risk, our modeling utilizes a mix of historical data, scientific theory, and mathematical methods. Output from multiple commercially available vendor models serves as a key input in our PML estimation process. We believe that there is considerable inherent uncertainty in the data and parameter inputs for these vendor models. In that regard, there is no universal standard in the preparation of insured data for use in the models and the running of modeling software. In our view, the accuracy of the models depends heavily on the availability of detailed insured loss data from actual recent large catastrophes. Due to the limited number of events, there is significant potential for substantial differences between the modeled loss estimate and actual company experience for a single large catastrophe event. This potential difference could be even greater for perils with limited or no modeled annual frequency. We perform our own vendor model validation (including sensitivity analysis and backtesting, where possible) and supplement model output with historical loss information and analysis and management judgment. In addition, we derive our own estimates for non-modeled perils. Despite this, our PML estimates are subject to a high degree of uncertainty, and actual losses from catastrophe events may differ materially.

***We rely on highly skilled and experienced personnel and if we are unable to attract, retain, or motivate key personnel or hire qualified personnel, our business may be seriously harmed. In addition, the loss of our Chief Executive Officer and Chairman, President, Chief Financial Officer or other key senior management personnel could harm our business and future prospects.***

Our performance largely depends on the talents and efforts of highly-skilled and experienced individuals. Our future success depends on our continuing ability to identify, hire, develop, motivate, and retain highly skilled and

------

##### [**Table of Contents**](#toc)
experienced personnel and, if we are unable to hire and train a sufficient number of qualified employees for any reason, we may not be able to maintain or implement our current business strategy or grow our business. Moreover, certain of our competitors in the insurance and insurance technology or InsurTech industries may seek to hire our existing employees, may compete with us in hiring new employees, and may have greater resources than we do. We cannot assure you that we will provide adequate incentives to attract, retain, and motivate employees in the future. If we do not succeed in attracting, retaining, and motivating highly qualified personnel, our business may be seriously harmed. Our operations are highly dependent on the efforts of our senior executive officers, particularly our Chief Executive Officer and Chairman of our board of directors, Paresh Patel, our President, Kevin Mitchell, and our Chief Financial Officer, Suela Bulku. The loss of Paresh Patel, architect of our proprietary policy administration and underwriting technology, Kevin Mitchell, or Suela Bulku could materially adversely impact our business, results of operations, and financial condition. Further, to the extent that our business grows, we will need to attract and retain additional qualified management personnel in a timely manner, and we may not be able to do so. Our future success depends on our continuing ability to identify, hire, develop, motivate, retain, and integrate highly skilled personnel in all areas of our organization.

***We may not continue to grow at historical rates in the future.***

Our limited operating history may make it difficult to evaluate our current business and our future prospects. While our revenue has grown in recent periods, this growth rate may not be sustainable and should not be considered indicative of future performance, and we may not realize sufficient revenue to maintain profitability in the future. As we focus on growing our business, we expect our revenue growth rates may slow in future periods for a number of reasons, which may include lack of a broader demand for our products, increasing competition, a decrease in the growth of our overall market, and our failure to capitalize on growth opportunities.

***We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.***

We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new platform features, solutions, products, and services or enhance our existing platform, solutions, products, and services, improve our operating infrastructure, or acquire complementary businesses and technologies. Many factors will affect our capital needs as well as their amount and timing, including our growth and profitability, regulatory requirements, market disruptions, and other developments. If our present capital is insufficient to meet our current or future operating requirements, we may need to raise additional funds through financings or curtail our growth. We expect to evaluate financing opportunities from time to time, and our ability to obtain financing in the future will depend, among other things, on our development efforts, business plans, and operating performance, as well as the condition of the capital markets at the time we seek financing. We cannot be certain that financing will be available to us on favorable terms, or at all.

If we raise funds through future issuances of equity or convertible debt securities, our existing shareholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our common stock. Moreover, any debt financing that we secure in the future could subject us to restrictive covenants relating to our capital raising activities, our ability to make certain types of investments or payments, and other financial and operational matters, which may increase our difficulty to obtain capital or to pursue business opportunities, including new platform, product, and service offerings and potential acquisitions. We may not be able to obtain financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be impaired, and our business, revenue, results of operations, and financial condition may be materially harmed.

------

##### [**Table of Contents**](#toc)
***Future acquisitions or investments contain inherent strategic, execution, and compliance risks that could disrupt our business and harm our financial condition.***

We may pursue acquisitions or investments to grow our business in line with our strategic objectives. There is no guarantee that these acquisitions or investments (whether for internal technology or products used or for external uses) will achieve the desired return sought. Or, these acquisitions or investments could cause additional risk due to the liabilities or unforeseen expenses such acquisitions or investments may bring, such as higher than expected costs due to market competition for the acquisition/investment, regulatory approval requirements, delays in implementation, lost opportunities that could have been pursued with cash being used, litigation or regulatory enforcement post-acquisition or investment, contingent liabilities, implementation cost, misalignment of culture, loss of technology through theft or trade secrets exchanged, loss of key partners/vendors, timing within overall economic environment, carrying costs, and tax liabilities. Additionally, the risks from future acquisitions or investments could result in impairment charges against goodwill or increases in the liabilities on our consolidated balance sheet, as well as missed earnings results.

***Litigation and legal proceedings filed by or against us and our subsidiaries could have a material adverse effect on our business, results of operations and financial condition.***

From time to time, we may be subject to allegations and may be party to litigation and other legal proceedings relating to our business operations. Litigation and other legal proceedings may include complaints from or litigation by customers related to alleged breaches of contract or otherwise.

We expect to face risks associated with litigation of various types arising in the normal course of our business operations, including, without limitation, general commercial, breach of contract, indemnification, and employment disputes. We cannot predict with any certainty what impact such litigation would have on our business. If we were to be involved in litigation and it was determined adversely, it could require us to pay significant damages or to change aspects of our operations, either of which could have a material adverse effect on our financial results. Even claims without merit can be time-consuming and costly to defend and may divert management's attention and resources away from our business and adversely affect our business, results of operations, and financial condition. In addition to increasing costs, a significant volume of customer complaints or litigation could also adversely affect our brand and reputation, regardless of whether such allegations have merit or whether we are liable. We cannot predict with certainty the costs of defense, the costs of prosecution, insurance coverage, or the ultimate outcome of litigation or other legal proceedings filed by or against us, including remedies or damage awards, and adverse results in such litigation and other legal proceedings may harm our business and financial condition.

***Our business may be materially adversely impacted by U.S. and global market and economic conditions adverse to the insurance industry.***

We expect to continue to derive most of our revenue from the insurance technology and operations solutions we provide to the property and casualty insurance industry. Given the concentration of our business activities in this industry, we will be particularly exposed to certain economic downturns affecting the insurance industry, in particular the property and casualty insurance industry. U.S. and global market and economic conditions have been, and continue to be, disrupted and volatile. General business and economic conditions that could affect us and our customers include fluctuations in economic growth, debt and equity capital markets, liquidity of the global financial markets, the availability and cost of credit, investor and consumer confidence, inflation, and the strength of the economies in which our customers operate. A poor economic environment could result in significant decreases in demand for our insurance technology and operations solutions, including the delay, reduction in scope or duration or cancellation of current or anticipated agreements, or could present difficulties in collecting accounts receivables from our customers due to their deteriorating financial condition. In addition, customers may be acquired by or merged into other entities that use our competitors' products, or they may decide to terminate their relationships with us for other reasons. As a result, our sales could decline if a customer is merged with or acquired by another company that has a poor economic outlook or is closed.

------

##### [**Table of Contents**](#toc)
***Our brand may not become as widely known or accepted as competitors' brands or the brand may become tarnished.***

Many of our competitors have brands that are well-recognized. As a new entrant into the broader insurance technology and services market, we expect to spend considerable amounts of money and other resources on creating brand awareness and building our reputation with potential customers. We may not be able to build brand awareness to levels matching our competitors, and our efforts at building, maintaining, and enhancing our reputation with customers could fail and/or may not be cost-effective. Complaints or negative publicity about our business practices, our marketing and advertising campaigns, our compliance with applicable laws, data privacy or security issues, and other aspects of our business, whether real or perceived, could diminish confidence in our brand, which could adversely affect our reputation and business. As we work to enter new markets, we will need to establish our reputation with new customers, and to the extent we are not successful in creating positive impressions, our business in these newer markets could be adversely affected. While we may choose to engage in a broader marketing campaign to further promote our brand, this effort may not be successful or cost effective. If we are unable to maintain or enhance our reputation or enhance customer awareness of our brand in a cost-effective manner, our business, results of operations, and financial condition could be materially adversely affected.

**Risks Related to Intellectual Property, Data Privacy, and Cybersecurity** 

***Our intellectual property and proprietary rights are valuable, and any inability to obtain, maintain, protect, defend, and enforce them could reduce the value of our products and brand.***

Our trade secrets, trademarks, copyrights, and other intellectual property rights are important assets for us. Our ability to compete effectively will be dependent in part on our ability to obtain, maintain, protect, defend, and enforce our intellectual property and other proprietary rights, including our proprietary technology. We rely on, and expect to continue to rely on, various agreements with our employees, independent contractors, consultants, and other third parties with whom we have relationships, as well as trademark, trade dress, domain name, copyright, and trade secret laws and regulations, to protect our brand and other intellectual property rights. Such agreements, laws, and regulations may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property, or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information, intellectual property, or technology, and we may fail to consistently obtain, police, and enforce such agreements. Additionally, various factors outside our control pose a threat to our intellectual property rights, as well as to our products and technologies. For example, we may fail to obtain effective intellectual property protection. Also, the efforts we have taken to protect our intellectual property rights may not be sufficient or effective in all cases. For example, governmental entities that grant intellectual property rights may deny our applications for such rights despite our best efforts. Additionally, granted intellectual property rights are subject to challenge. Successful challenges may result in such rights being narrowed in scope or declared invalid or unenforceable. Despite our efforts to obtain and protect broad intellectual property rights, there can be no assurance our intellectual property rights will be sufficient to protect against others offering platforms and solutions that are substantially similar to ours and compete with our business, and unauthorized parties may attempt to copy aspects of our technology and use information that we consider proprietary. Competitors or other third parties may also attempt to circumvent or design around our intellectual property rights. In each case, our ability to compete could be significantly impaired.

We have filed, and may continue in the future to file, applications to protect certain of our innovations and intellectual property. We have not applied for any patents and cannot give assurances that any patent applications will be made by us or that, if they are made, they will be granted. We do not know whether any of our applications will result in the issuance of a trademark or copyright, as applicable, or whether the examination process will require us to narrow our claims or otherwise limit the scope of such intellectual property. In addition, we may not receive competitive advantages from the rights granted under our intellectual property. Our existing intellectual property, and any intellectual property granted to us or that we otherwise acquire in the future, may be contested, circumvented, or invalidated, and we may not be able to prevent third parties from

------

##### [**Table of Contents**](#toc)
infringing our intellectual property rights. Therefore, the exact effect of the protection of this intellectual property cannot be predicted with certainty. Because obtaining patent protection requires disclosing our inventions to the public, such disclosure may facilitate our competitors developing improvements to our innovations. Given this risk, we have chosen not to, and in the future may sometimes choose not to seek patent protection for certain innovations and instead rely on trade secret protection. Any failure to adequately obtain such patent protection, or other intellectual property protection, could later prove to adversely impact our business.

We currently hold various domain names relating to our brand, including *Exzeo.com*. Failure to protect our domain names could adversely affect our reputation and brand and make it more difficult for users to find our website. We may be unable, without significant cost or at all, to prevent third parties from acquiring domain names that are similar to, infringe upon, or otherwise decrease the value of our trademarks and other proprietary rights.

In addition to registered intellectual property rights such as trademark and domain name registrations, we rely on non-registered proprietary information and technology, such as trade secrets, confidential information, know-how, and technical information. Certain information or technology that we endeavor to protect as trade secrets may not be eligible for trade secret protection in all jurisdictions, or the measures we undertake to establish and maintain such trade secret protection may be inadequate. In order to protect our proprietary information and technology, we rely in part on agreements with our employees, independent contractors, consultants, and other third parties that place restrictions on the use and disclosure of this intellectual property and confidential information. In some cases, these agreements may not adequately protect our trade secrets or confidential information, these agreements may be breached, or this intellectual property, including trade secrets, may otherwise be disclosed or become known to our competitors, which could cause us to lose a competitive advantage resulting from this intellectual property. However, our employees, independent contractors, consultants, or other third parties with whom we do business may nonetheless use intellectual property owned by others in their work for us, and disputes may arise as to the rights in related or resulting know-how and inventions. Current or future legal requirements may require us to disclose certain proprietary information or technology, such as our proprietary algorithms to regulators or other third parties, including our competitors, which could impair or result in the loss of trade secret protection for such information or technology. In addition, any changes in, or unexpected interpretations of, intellectual property laws may compromise our ability to enforce our trade secret and intellectual property rights. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain protection of our trade secrets or other proprietary information could harm our business, results of operations, and competitive position.

We may be required to spend significant resources in order to monitor and protect our intellectual property rights, and some violations may be difficult or impossible to detect. To prevent substantial unauthorized use of our intellectual property and proprietary rights, it may be necessary to prosecute actions for infringement, misappropriation, or other violations of our intellectual property and proprietary rights against third parties. In addition, third parties may seek to challenge, invalidate, or circumvent our trademarks, copyrights, trade secrets, or other intellectual property and proprietary rights, or any applications for any of the foregoing, including through administrative processes such as re-examination or interference, or litigation. The legal standards relating to the validity, enforceability, and scope of protection of intellectual property and proprietary rights are uncertain and still evolving. The value of our intellectual property and proprietary rights could also diminish if others assert rights therein or ownership thereof, and we may be unable to successfully resolve any such conflicts in our favor or to our satisfaction. Litigation to protect and enforce our intellectual property rights could be costly, time-consuming, and distracting to management and could result in the impairment or loss of portions of our intellectual property. There can be no assurance that we will be successful in such action, even when our rights have been infringed, misappropriated, or otherwise violated. Our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property rights or asserting that we infringe third-party intellectual property rights, and if such defenses, counterclaims, or countersuits are successful, we could lose valuable intellectual

------

##### [**Table of Contents**](#toc)
property and proprietary rights. The unauthorized copying or use of our proprietary technology, as well as any costly litigation or diversion of our management's attention and resources, could impair the functionality of our platform, delay introductions of enhancements to our platform, result in our substituting inferior or more costly technologies into our platform, or harm our reputation or brand. In addition, we may be required to license additional technology from third parties to develop and market new offerings or platform features, which may not be on commercially reasonable terms or at all and could adversely affect our ability to compete.

While we take precautions designed to protect our intellectual property, it may still be possible for competitors and other unauthorized third parties to copy our technology and use our proprietary brand, content, and information to create or enhance competing products, which could adversely affect our competitive position in our rapidly evolving and highly competitive industry. Some license provisions that protect against unauthorized use, copying, transfer, and disclosure of our technology may be unenforceable under the laws of certain jurisdictions and foreign countries. While we enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality agreements with our third-party providers and strategic partners, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to our proprietary information, know-how, and trade secrets or that has developed intellectual property on our behalf, and these agreements may be insufficient to protect us, especially if breached. Further, no assurance can be given that these agreements will be effective in controlling access to, and use, distribution, misuse, misappropriation, reverse engineering, or disclosure of, our technology, platform, products, and proprietary information. Further, these agreements do not prevent our competitors from independently developing technologies that are substantially equivalent or superior to our offerings. Moreover, these agreements may not provide an adequate remedy for breaches or in the event of unauthorized use or disclosure of our confidential information or technology, or infringement of our intellectual property. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret or know-how is difficult, expensive, and time-consuming, and the outcome is unpredictable. In addition, trade secrets and know-how can be difficult to protect and some courts inside and outside the United States are less willing or unwilling to protect trade secrets and know-how. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor or other third party, we would have no right to prevent them from using that technology or information to compete with us, and our competitive position would be materially and adversely harmed. Additionally, individuals not subject to invention assignment agreements may make adverse ownership claims to our current and future intellectual property, and, to the extent that our employees, independent contractors, consultants, or other third parties with whom we do business use intellectual property owned by others, as to the rights in related or resulting know-how and inventions.

Changes to existing laws or regulations or new laws or regulations could impede our use of our confidential information, intellectual property, or technology, or require that we disclose our confidential information, intellectual property, or technology to our competitors, which could impair our competitive position and could have a material adverse effect on our business, operating results, and financial condition.

***We use open source software in our proprietary Insurance-as-a-Service platform, which may pose particular risks in a manner that could have a negative effect on our business.***

We use open source software in our proprietary Insurance-as-a-Service platform and anticipate continuing to use open source software in the future. Some open source software licenses require those who distribute open source software as part of their own software product to publicly disclose all or part of the source code of such software product or to make available any derivative works of the open source code on unfavorable terms or at no cost, and we may be subject to such terms. The terms of certain open source licenses to which we are subject have not been interpreted by U.S. or foreign courts, and there is a risk that open source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide our platform of products and services. Additionally, we could face claims from third parties claiming ownership of, or demanding release of, the open source software or derivative works that we develop using such software, which could include our proprietary source code, or otherwise seeking to enforce the terms of the applicable open

------

##### [**Table of Contents**](#toc)
source license. These claims could result in litigation and could require us to make our software source code freely available, purchase a costly license, or cease offering the implicated products and services unless and until we can re-engineer such source code to eliminate use of such open source software. This re-engineering process could require us to expend significant additional research and development resources, and we may not be able to complete the re-engineering process successfully. We may also incur significant legal expenses defending such allegations or be subject to significant damages. If we are required by the terms of any open source license to release our proprietary source code, it could allow our competitors to create similar software with lower development effort and time and ultimately could result in a loss of customers for us.

In addition to risks related to license requirements, use of certain open source software can lead to greater risks than use of third-party commercial software, as open source licensors generally do not provide warranties, assurance of title, or controls on the origin or operation of the open source software, which are risks that cannot be eliminated, and could, if not properly addressed, negatively affect our business. There is typically no support available for open source software, and we cannot ensure that the authors of open source software will implement or push updates to address security risks or will not abandon further development and maintenance. We have established processes to help alleviate these risks, including a review process for screening requests from our development teams for the use of open source software, but we cannot be sure that all of our use of open source software is in a manner that is consistent with our current policies and procedures, or will not subject us to liability. Any of these risks could be difficult to eliminate or manage, and, if not addressed, could have a negative effect on our business, financial condition and operating results.

***Claims by others that we infringe, misappropriate, or otherwise violate, or have infringed, misappropriated, or otherwise violated, their proprietary technology or other intellectual property rights could harm our business.***

From time to time, third parties may assert claims of infringement, misappropriation, or other violations of intellectual property rights against us. As we become more well known and face increasing competition, the possibility of receiving a larger number of intellectual property claims against us grows. In addition, various "nonpracticing entities" and other intellectual property rights holders may attempt to assert intellectual property claims against us or seek to monetize intellectual property rights they own to extract value through licensing or other settlements. Although we may have meritorious defenses, there can be no assurance that we will be successful in defending against these allegations or in reaching a business resolution that is satisfactory to us. Many potential litigants, including some of our competitors, have the ability to dedicate substantial resources to the assertion of their intellectual property rights. Any claim of infringement by a third party, even those without merit, could cause us to incur substantial costs defending against the claim, could distract our management from our business, and could require us to cease use of such intellectual property.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, we risk compromising our confidential and proprietary information during this type of litigation. We may be required to pay substantial damages, royalties, or other fees in connection with a claimant securing a judgment against us, we may be subject to an injunction or other restrictions that prevent us from using or licensing our intellectual property, or from operating under our brand, or we may agree to a settlement that prevents us from using, selling, or licensing certain portions of our insurance technology and operations solutions, which could adversely affect our business, results of operations, and financial condition. In addition, we could be found liable for significant monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a patent or other intellectual property right. Our use of third-party software, data, and other intellectual property rights also may be subject to claims of infringement or misappropriation. In addition, to the extent we hire personnel from competitors, we may be subject to allegations that such personnel have divulged proprietary or other confidential information to us. Further, we may be unaware of intellectual property rights or proprietary rights of others that may cover some or all of our insurance technology and operations solutions.

With respect to any intellectual property rights claim, we may have to seek out a license to continue operations found or alleged to violate such rights, which may not be available, or if available, may not be available on

------

##### [**Table of Contents**](#toc)
favorable or commercially reasonable terms and may significantly increase our operating expenses. Some licenses may be non-exclusive, and therefore our competitors may have access to the same technology licensed to us. If a third party does not offer us a license to its intellectual property on reasonable terms, or at all, we may be required to develop alternative, non-infringing technology, which could require significant time (during which we would be unable to continue to use, sell, or license the affected part of our insurance technology and operations solutions), effort, and expense and may ultimately not be successful. Any of these events could adversely affect our business, results of operations, and financial condition.

***Our business and Insurance-as-a-Service platform make extensive use of third-party data.***

We utilize third-party data to support and develop our Insurance-as-a-Service platform of products and services. We anticipate that we will continue to rely on this third-party data in the future. We cannot ensure that this third-party data will continue to be available to us on commercially reasonable terms, if at all. Any defects or errors in the third-party data could adversely affect the operation of our Insurance-as-a-Service platform. Many of the risks associated with the use of third-party data cannot be eliminated, and these risks could negatively affect our brand and business.

In addition, we leverage data, technology, and proprietary underwriting algorithms to enhance risk management. For instance, we leverage dynamic data sources obtained through various sources and apply advanced statistical methods to model that data into our pricing algorithm. We expect to improve our ability to manage risk and price risk accurately over time as we incorporate new external data sources and utilize the experience gained over time with our own customer base. These enhancements are expected to lead to better underwriting, lower loss frequency, and lower loss ratios over time – after adjusting for weather-related events. Our success in this area depends on our ability to continuously incorporate new data sources as they become available and effectively apply them to improve our ability to accurately and competitively price risk.

***An unauthorized disclosure or loss of customer or employee data or information or other sensitive, confidential, or personal information, including by cyber-attack or other security breach, or a suspected or actual violation of federal or state data privacy or protection laws, regulations, or other obligations, could cause a loss of data or information, give rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could have an adverse effect on our business, cash flows, financial condition, and results of operations.***

As part of our normal operations, we collect, retain, use, store, transmit, and otherwise process certain sensitive and confidential information, including personal information. We are subject to various federal and state privacy laws, rules and regulations, and contractual obligations regarding the use, storage, sharing, disclosure, protection, and other processing of certain sensitive or confidential information, including the Gramm-Leach-Bliley Act and its state-law progeny. For example, we may currently be, or may become, subject to certain state and federal privacy laws that require enhanced protection of certain types of data or new obligations with regard to data retention, transfer, disclosure, or other processing, all of which may significantly impact our business. Given the rapid development of data protection, privacy, and security laws and regulations, we expect to encounter inconsistent interpretation and enforcement of these laws and regulations.

Our facilities and systems, and those of our third-party service providers and vendors, may be vulnerable to cyber-attacks, security breaches, ransomware, unauthorized activity and access, malicious code, acts of vandalism, computer viruses, theft of data, misplaced or lost data, fraud, misconduct or misuse, social engineering attacks and denial of service attacks, phishing attacks, programming or human errors, physical break-ins, or other disruptions, any of which could result in the loss or disclosure of confidential or personal policyholder or employee information or our own proprietary information, software, methodologies, and business secrets. Our information security risks have increased recently in part because of new technologies, the use of the internet and telecommunications technologies (including mobile and other connected devices) to conduct financial and other business transactions, and the increased sophistication and activities of organized crime,

------

##### [**Table of Contents**](#toc)
perpetrators of fraud, hackers, terrorists, and others. In addition to cyber-attacks or other security breaches involving the theft of sensitive, confidential, or personal information, we and our third-party service providers now also face threats from sophisticated hackers who engage in attacks against organizations that are designed to disrupt key business services.

We rely on service providers and vendors to provide certain technology, systems, and services that we use in connection with various functions of our business, including PCI DSS (Payment Card Industry Data Security Standard) compliant credit card processing, and we may entrust them with confidential or personal information. The information systems of our third-party service providers and vendors are also vulnerable to an increasing threat of continually evolving cybersecurity risks. Unauthorized parties may attempt to gain access to these systems or our information through fraud or other means of deceiving our associates, third-party service providers, or vendors. Hardware, software, or applications we obtain from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. The methods used to obtain unauthorized access, disable or degrade service, or sabotage systems are also constantly changing and evolving and may be difficult to anticipate or detect for long periods of time. Ever-evolving threats mean our third-party service providers and vendors must continually evaluate and adapt their own respective systems and processes, and there is no assurance that they will be adequate to safeguard against all data security breaches or misuses of data. Any future significant compromise or breach of our data security via a third-party service provider or vendor could result in additional significant costs, lost revenues, fines, lawsuits, and damage to our reputation.

Notwithstanding our efforts to create security barriers to such threats, it is virtually impossible for us to entirely mitigate these risks, and we cannot ensure that we will be able to identify, prevent, or contain the effects of possible cyber-attacks or other cybersecurity risks in the future that may bypass our security measures or disrupt our information technology systems or business. While we have implemented safeguards and processes to thwart unwanted intrusions and to protect the data in our platform and computer systems, whether housed internally or externally by third parties, such safeguards and the cybersecurity measures taken by our third-party service providers may be unable to anticipate or detect these techniques or implement adequate preventative measures quickly enough to prevent all attempts to compromise our platform. Additionally, our remediation efforts may not be successful or timely. Further, notwithstanding any contractual rights or remedies we may have, because we do not control our third-party service providers, including their security measures and the processing of data by our third-party service providers, we cannot ensure the integrity or security of measures they take to protect customer information and prevent data loss.

Noncompliance or perceived noncompliance with any privacy or security laws, rules, regulations, or contractual obligations, or our privacy policies, or any security breach, cyber-attack, or cybersecurity breach, and any incident involving the misappropriation, loss, or other unauthorized disclosure or use of, or access to, sensitive, confidential, or personal information, could require us to expend significant capital and other resources to continue to modify or enhance our protective measures and to remediate any damage caused by such breaches or violations. In addition, this could result in interruptions to our operations and damage to our reputation, misappropriation of confidential or personal information, or regulatory enforcement actions or investigations, material fines and penalties, litigation, or other liability or actions which could have a material adverse effect on our business, cash flows, financial condition, and results of operations. As the regulatory environment related to information security, data collection and use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to our business, compliance with those requirements could also result in additional costs.

We make public statements about our use and disclosure of personal information through our privacy policies, information provided on our website and/or press statements. Although we endeavor to comply with our public statements and documentation, we may at times fail to do so or be alleged to have failed to do so. The publication of our privacy policies and other statements that provide promises and assurances about data privacy and security can subject us to potential government or legal action if they are found to be deceptive, unfair, or

------

##### [**Table of Contents**](#toc)
misrepresentative of our actual practices. Moreover, from time to time, concerns may be expressed about whether our platform, products, solutions, and services compromise the privacy of customers and others. Any concerns about our data privacy and security practices, even if unfounded, could damage the reputation of our business, discourage potential customers from using our platform, products, solutions, and services, and have a material adverse effect on our business.

In addition, our insurance coverage may not be adequate to cover costs, expenses, and losses associated with such events, and in any case, such insurance may not cover all of the types of costs, expenses, and losses we could incur to respond to and remediate a security breach. Any incidents may result in loss of, or increased costs of, our cybersecurity insurance. We also cannot ensure that our existing insurance coverage will continue to be available on acceptable terms or will be available in sufficient amounts to cover one or more large claims related to a security incident or breach, or that the insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or coinsurance requirements, could adversely affect our reputation and our business, financial condition, and results of operations. In addition to costs associated with investigating and fully disclosing a data breach, we could be subject to regulatory proceedings or private claims by affected individuals resulting in substantial monetary fines or damages, and our reputation would likely be harmed.

***Our information technology systems may fail or be disrupted or subject to errors, bugs, vulnerabilities, or defects, which could adversely affect our business.***

Our business and our Insurance-as-a-Service platform of products and services are highly dependent upon the successful and uninterrupted functioning of our computer and data processing systems. Our information technology systems are complex, and therefore undetected errors, failures, bugs, vulnerabilities, or defects may be present in our products and services or occur in the future in our products and services, our technology or software, or technology or software we license in from third parties, including open source software, especially when updates or new products are released. The failure or disruption of these systems could interrupt our operations and result in a material adverse effect on our business.

The growth of our business is dependent upon the successful development and implementation of advanced computer and data processing systems as well as the development and deployment of new information technologies to streamline our operations, including our policy administration, underwriting, and data analytics services. The failure of these systems to function as planned could slow our growth and adversely affect our future business volume and results of operations. Real or perceived errors, failures, bugs, vulnerabilities, or defects in our information technology systems could result in negative publicity, loss of or delay in market acceptance of our products and services, harm to our brand, and weakening of our competitive position. In such an event, we may be required, or may choose, for customer relations or other reasons, to expend significant additional resources in order to help correct the problem. Any real or perceived errors, failures, bugs, vulnerabilities, or defects in our information technology systems could also impair our ability to attract new customers, retain existing customers, or expand their use of our products and services, which would adversely affect our business, results of operations, and financial condition. Additionally, our computer and data processing systems could become obsolete or could cease to provide a competitive advantage which could negatively affect our future results of operations. We may also be subject to liability claims for damages related to real or perceived errors, failures, bugs, vulnerabilities, or defects in our information technology systems. A material liability claim may harm our business and results of operations.

We conduct our business primarily from offices located in Tampa, Florida, where tropical storms could damage our facilities or interrupt our power supply. The loss or significant impairment of functionality in these facilities for any reason could have a material adverse effect on our business, although we believe we have sufficient redundancies to replace our facilities if functionality is impaired. In the event of a disaster causing a complete loss of functionality at our Tampa location, we plan to temporarily use our secondary office in Ocala, Florida to continue our operations.  ****

------

##### [**Table of Contents**](#toc)
***Any disruption of our Internet connections, including to any third-party cloud providers that host any of our websites or web-based services, could affect the success of our Insurance-as-a-Service platform of products and services and our business.***

Any system failure, including network, software, or hardware failure, that causes an interruption in our network or a decrease in the responsiveness of our website or our Insurance-as-a-Service platform could result in reduced revenue and potential breaches of our customer contracts. Continued growth in Internet usage could cause a decrease in the quality of Internet connection service. Websites have experienced service interruptions as a result of outages and other delays occurring throughout the worldwide Internet network infrastructure. In addition, there have been several incidents in which individuals have intentionally caused service disruptions of websites. If these outages, delays, or service disruptions frequently occur in the future, usage of our web-based services and our Insurance-as-a-Service platform could grow more slowly than anticipated or decline and we may lose revenue and customers.

If the third-party cloud providers that host any of our websites or web-based services were to experience a system failure, the performance of our websites and web-based services, including our Insurance-as-a-Service platform, would be harmed. Currently, we rely on two third-party cloud providers to host our websites and web-based services. As a result, it may take significant resources if we need to switch to another cloud provider for any reason. Any disruption of or interference with our use of these third-party cloud providers could impair our ability to deliver our insurance technology and operations solutions to our customers, resulting in customer dissatisfaction, damage to our reputation, loss of customers, and harm to our operations and our business. In general, third-party cloud providers are vulnerable to damage from fire, floods, earthquakes, acts of terrorism, power loss, telecommunications failures, break-ins, and similar events. The controls implemented by our current or future third-party cloud providers may not prevent or timely detect such system failures, and we do not control the operation of third-party cloud providers that we use. Our current or future third-party cloud providers could decide to close their facilities without adequate notice. In addition, any financial difficulties, such as bankruptcy, faced by our current or future third-party cloud providers, or any of the service providers with whom we or they contract, may have negative effects on our business. If our current or future third-party cloud providers are unable to keep up with our growing needs for capacity or any spikes in customer demand, it could have an adverse effect on our business. Any changes in service levels by our current or future third-party cloud providers could result in loss or damage to our customers' stored information and any service interruptions at these third-party cloud providers could hurt our reputation, cause us to lose customers, harm our ability to attract new customers, or subject us to potential liability. Our property and business interruption insurance coverage may not be adequate to fully compensate us for losses that may occur. Additionally, our systems are not fully redundant, and we have not yet implemented a complete disaster recovery plan or business continuity plan. Although the redundancies we do have in place will permit us to respond, at least to some degree, to service outages, our current or future third-party cloud providers that host our Insurance-as-a-Service platform are vulnerable in the event of failure. We do not yet have adequate structure or systems in place to recover from a third-party cloud provider's severe impairment or total destruction, and recovery from the total destruction or severe impairment of any of our third-party cloud providers could be difficult and may not be possible at all.

In addition, our customers depend on Internet service providers, online service providers, and other website operators for access to our website and Insurance-as-a-Service platform. These providers could experience outages, delays and other difficulties due to system failures unrelated to our systems. Any of these events could seriously harm our business, results of operations, and financial condition.

***The increasing adoption by states of cybersecurity regulations could impose additional compliance burdens on us and expose us to additional liability.***

In response to the growing threat of cyber-attacks, certain jurisdictions have begun to consider new cybersecurity measures, including the adoption of cybersecurity regulations. Some jurisdictions have enacted more generalized data privacy and security laws, rules, and regulations that apply to certain data that we process. Although we take

------

##### [**Table of Contents**](#toc)
steps to comply with financial industry cybersecurity regulations and other data privacy and security laws, our failure to comply with new or existing cybersecurity laws, rules, and regulations could result in material regulatory actions, litigation, fines, reputational harm, and other penalties. In addition, efforts to comply with new or existing cybersecurity or privacy laws, rules, and regulations could impose significant costs on our business, which could materially and adversely affect our business, financial condition, and results of operations.

**Risks Related to Regulation of Our Business** 

***We operate in a highly regulated environment, and any failure to comply with applicable insurance, data privacy, or other regulatory requirements could materially and adversely affect our business, financial condition, and results of operations.***

Our business operates within a complex, evolving, and highly regulated legal environment across federal, state, and international jurisdictions. We provide Insurance-as-a-Service solutions to property and casualty insurers, and as such, we are subject to a wide array of regulatory obligations relating to insurance operations, consumer protection, data privacy, cybersecurity, and compensation practices. While we do not underwrite insurance risk or issue policies in our own name, we perform delegated functions such as policy administration, claims handling, premium collection, and underwriting support on behalf of licensed insurers. These services subject us to various state laws and regulations, including licensing and registration requirements, fiduciary responsibilities, and financial oversight. Noncompliance, even if inadvertent, could lead to enforcement actions, monetary penalties, license suspension or revocation, reputational harm, or restrictions on our ability to operate in certain markets.

Our customers upload to and store their customer and other data in our cloud-based platform. We must monitor and comply with a wide variety of laws and regulations regarding the data stored and processed on our cloud-based platform as well as in the operation of our business. Non-compliance with these laws could result in penalties or significant legal liability.

The legal environment of cloud-based technology businesses is evolving, and we are subject to a variety of laws and regulations that involve matters central to our business. Many of these laws and regulations are still evolving and being tested in courts and could be interpreted in ways that could harm our business. These may involve privacy, data protection and personal information, content, intellectual property, data security, and data retention and deletion. In particular, we are subject to federal and state laws regarding privacy and protection of data. Federal and state laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain, particularly in the evolving industry in which we operate, and may be interpreted and applied inconsistently from state to state and inconsistently with our current policies and practices.

***Regulatory scrutiny of delegated authority and claims administration functions may increase our regulatory compliance costs, limit our flexibility, and adversely affect our business.***

Our business depends on the ability to act under delegated authority from licensed insurance entities. State regulators, guided in part by the National Association of Insurance Commissioners ("NAIC"), are increasingly scrutinizing the use of managing general agents and third-party administrators, especially where such entities perform core insurance functions. Several states require that managing general agent and third-party administrator agreements be submitted for review or approval and impose restrictions on the scope of delegated authority.

In connection with our delegated claims administration functions, we are also subject to fair claims practices laws that prohibit, among other things, misrepresentations of coverage, unreasonable delays, or unfair settlement practices. In some states, claims adjusters must be licensed and comply with continuing education and conduct requirements. Any failure by us or by third-party adjusters we oversee, to comply with these standards may expose us to administrative actions, penalties, or litigation.

------

##### [**Table of Contents**](#toc)
Emerging regulatory initiatives could impose additional burdens on companies like ours, including mandatory disclosures, expanded fiduciary requirements, governance standards, and oversight obligations. These changes may require us to renegotiate customer contracts, enhance internal compliance infrastructure, or limit the services we are permitted to perform, all of which could adversely affect our business operations and profitability.

***Failure to maintain required licenses in one or more jurisdictions could disrupt our business and impair our ability to grow.***

We are required to maintain a variety of licenses across jurisdictions, including insurance agency, managing general agent, and claims adjuster licenses, as well as registrations in states where we perform regulated functions. Licensing requirements vary by jurisdiction and often include background checks, disclosures of ownership and key personnel, continuing education, and annual renewals.

A lapse in any required license, whether due to administrative oversight, changes in state law, or increased regulatory scrutiny, could result in our inability to service existing customers or enter new markets. In certain cases, losing a license in one jurisdiction could result in negative publicity that affects our relationships with insurance carriers and managing general agents.

***We are subject to stringent fiduciary duties with respect to insurance premium funds, and noncompliance could result in regulatory enforcement or reputational harm.***

In many jurisdictions, insurance premiums collected and held by managing general agents or third-party administrators are considered fiduciary assets. We may be required to maintain premium trust accounts, implement reconciliation and segregation protocols, and ensure the timely remittance of funds to insurers. Failure to adhere to these fiduciary responsibilities, whether due to internal error, systems failure, or fraud, could lead to state enforcement actions, fines, and possible revocation of licensure. Any such incident could also damage our reputation with customers and regulators and undermine our credibility as a reliable insurance services provider.

***We are subject to extensive and evolving data privacy and cybersecurity regulation, which could increase our compliance burden and exposure to liability.***

Our operations involve the collection, storage, and processing of significant volumes of sensitive personal and financial data, including information from insurance policyholders, applicants, and claims. We are subject to a growing body of federal and state data privacy and cybersecurity laws, such as the NAIC Insurance Data Security Model Law (adopted in several states). These laws require the implementation of comprehensive data protection programs, security risk assessments, breach notification protocols, and vendor oversight processes. Although we take steps to comply with applicable cybersecurity regulations, our failure to comply with new or existing cybersecurity regulations could result in regulatory actions and other penalties. In addition, efforts to comply with new or existing cybersecurity regulations could impose significant costs on our business.

Regulatory frameworks governing data privacy and cybersecurity are rapidly evolving. Future regulations could require us to modify or restrict the use of certain technologies, increase governance and disclosure requirements, or impose additional compliance costs. Noncompliance with data privacy or cybersecurity regulations could result in investigations, enforcement actions, litigation, or reputational damage.

***Our relationships with insurance carriers are subject to regulatory oversight and third-party risk.***

The insurance companies with which we do business are themselves subject to regulation by state departments of insurance, including solvency and reserve requirements. We cannot guarantee that all of our insurance company partners are in compliance with all applicable regulations. If any of these partners face regulatory action, insolvency, or are otherwise adversely impacted, we may be required to expend resources addressing related inquiries or disruptions to our operations. This could divert management attention and negatively affect our results of operations.

------

##### [**Table of Contents**](#toc)
***Our international operations in India expose us to regulatory risks under Indian law and cross-border compliance obligations.***

Our proprietary technology platform is developed and maintained by our subsidiary in India. These international operations expose us to a range of regulatory obligations under Indian law, including employment, tax, data protection, and cybersecurity requirements. In particular, India's Digital Personal Data Protection Act, enacted in 2023, and related implementing regulations expected to be operational in 2025, is a new legal framework designed to protect individuals' personal data and introduces obligations related to consent management, data handling, breach notification, and cross-border data transfers that may affect how we conduct business.

We may also be affected by restrictions on data localization, changes to labor laws, or new corporate compliance mandates in India. Additionally, our cross-border operations must comply with anti-corruption laws such as the U.S. Foreign Corrupt Practices Act, which imposes obligations relating to internal controls, recordkeeping, and the prohibition of bribery of foreign officials.

Failure to comply with applicable Indian or U.S. regulations could result in fines, sanctions, reputational harm, or disruption to our technology development. Although policies and procedures are designed to ensure compliance with these laws and regulations, there can be no assurance that our employees, contractors, or agents will not violate our policies. Geopolitical instability, policy shifts, or infrastructure disruptions in India could also interfere with our technology operations, potentially impairing our ability to deliver services to customers.

***Changes in state insurance laws or regulations, or new interpretations of existing laws, could impose significant additional compliance costs or impede our ability to operate certain aspects of our business.***

Insurance regulation continues to evolve in response to market innovation, increased use of technology, and heightened consumer protection concerns. State regulators and the NAIC are increasingly focused on governance of delegated authority arrangements and third-party risk management, particularly where core insurance functions are outsourced. New legislation or regulatory guidance, such as model acts adopted by individual states, could impose more stringent operational, financial, or governance obligations on us.

Any such changes could require us to modify our business practices, increase investment in compliance infrastructure, or limit our ability to offer certain services, any of which could adversely affect our business and results of operations.

***Federal regulation of the insurance industry is evolving and may increase our compliance obligations and costs.***

The U.S. federal government generally has not directly regulated the insurance industry. However, the federal government has undertaken initiatives or considered legislation in several areas that may affect the insurance industry. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") also established the Federal Insurance Office ("FIO"), which is authorized to study, monitor, and report to Congress on the insurance industry and to recommend that the Financial Stability Oversight Council designate an insurer as an entity posing risks to U.S. financial stability in the event of the insurer's material financial distress or failure. Any additional regulations established as a result of the Dodd-Frank Act or actions in response to the FIO could increase our costs of compliance or lead to disciplinary action. In addition, legislation has been introduced from time to time that, if enacted, could result in the federal government assuming a more direct role in the regulation of the insurance industry, including federal licensing in addition to or in lieu of state licensing and reinsurance for natural catastrophes. We cannot predict whether future federal laws or regulations will be enacted, nor how existing federal initiatives may evolve. However, any expansion of federal regulation could increase our compliance costs, lead to duplicative or conflicting requirements, or require changes to our business practices, which could adversely affect our business, financial condition, and results of operations.

------

##### [**Table of Contents**](#toc)
**Risks Related to Our Relationship with HCI** 

***HCI controls the direction of our business, and the concentrated ownership of our common stock will prevent you and other shareholders from influencing significant decisions.***

Following the completion of this offering, our parent company, HCI, will continue to control shares representing a majority of the voting power of all of our issued and outstanding shares of common stock. Immediately after this offering, HCI will own 75,000,000 shares of our common stock, which will represent approximately % of our total outstanding shares of common stock and voting power (assuming no exercise of the underwriters' option to purchase additional shares of common stock from us). As long as HCI continues to control shares representing a majority of our voting power, it will generally be able to determine the outcome of all corporate actions requiring shareholder approval (unless supermajority approval of such matter is required), including the election of directors. Even if HCI were to control less than a majority of our voting power, HCI may be able to influence the outcome of corporate actions so long as it owns a significant portion of our voting power. If HCI does not dispose of its shares of our common stock, HCI could retain control over us for an extended period of time or indefinitely.

Investors in this offering will not be able to affect the outcome of any shareholder vote while HCI controls the majority of our voting power. Due to its ownership and rights under our amended and restated articles of incorporation and bylaws that will be in effect immediately prior to the completion of this offering, HCI will be able to control, subject to applicable law, the composition of our board of directors, which in turn will be able to control all matters affecting us, including, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any determination with respect to our business direction and policies, including the appointment and removal of
officers and, in the event of a vacancy on our board of directors, additional or replacement directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any determinations with respect to mergers, business combinations or dispositions of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determination of our management policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determination of the composition of the committees on our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our financing policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our compensation and benefit programs and other human resources policy decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• termination of, changes to, or determinations under our agreements with HCI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to any other agreements that may adversely affect us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dividend policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determinations with respect to our tax returns.

See "Description of Capital Stock."

Because HCI's interests may differ from ours or from those of our other shareholders, actions that HCI takes with respect to us, as our controlling shareholder, may not be favorable to us or our other shareholders.

***If HCI sells a controlling interest in us to a third party in a private transaction, you may not realize any change-of-control premium on shares of our common stock, and we may become subject to the control of a currently unknown third party.***

Following the completion of this offering, HCI will continue to hold approximately % of our voting power (assuming no exercise of the underwriters' option to purchase additional shares of common stock from us). HCI will have the ability, should it choose to do so, to sell some or all of its shares of our common stock in a privately negotiated transaction, which, if sufficient in size, could result in a change of control of us.

------

##### [**Table of Contents**](#toc)
The ability of HCI to privately sell its shares of our common stock, with no requirement for a concurrent offer to be made to acquire all of our shares that will be publicly traded hereafter, could prevent you from realizing any change-of-control premium on your shares of our common stock that may otherwise accrue to HCI on its private sale of the shares of our common stock it holds. Additionally, if HCI privately sells shares representing a significant portion of our common stock, we may become subject to the control of a presently unknown third party. Such third party may have conflicts of interest with other shareholders.

***HCI's interests may conflict with our interests and the interests of our other shareholders. Conflicts of interest between HCI and us could be resolved in a manner unfavorable to us and our other shareholders.***

Various conflicts of interest between us and HCI could arise. HCI's interests as our controlling shareholder may differ from our interests or those of our other shareholders. Additionally, ownership interests of our Chief Executive Officer and chairman of our board of directors, Paresh Patel, in our common stock and in the stock of HCI, or his service as a director and officer of both companies, could create or appear to create potential conflicts of interest when he is faced with decisions relating to us or our business. These decisions could include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• corporate opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact that operating decisions for our business may have on HCI's consolidated financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• differences in tax positions between HCI and us, particularly in light of the tax allocation agreement among HCI
and its subsidiaries, including us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact that operating or capital decisions (including the incurrence of indebtedness) for our business may
have on HCI's current or future indebtedness or the covenants under that indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future, potential commercial arrangements between HCI (or its affiliates) and us or between HCI and third
parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• business combinations involving us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• management stock ownership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the intercompany agreements between HCI (or its affiliates) and us.

See "Certain Relationships and Related Party Transactions."

Furthermore, disputes may arise between HCI (or its affiliates) and us relating to our past and ongoing relationships and these potential conflicts of interest may make it more difficult for us to favorably resolve such disputes, including those related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax, employee benefits, indemnification, and other matters arising from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nature, quality, and pricing of services HCI agrees to provide to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the nature, quality, and pricing of services we agree to provide to HCI and/or its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales or other disposals by HCI of all or a portion of its ownership interest in us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• business combinations involving us.

We may not be able to resolve any potential conflicts, and even if we do, the resolution may be less favorable to us than if we were dealing with an unaffiliated party. While we are controlled by HCI, we may not have the leverage to negotiate amendments to our agreements with HCI and/or its affiliates, if required, on terms as favorable to us as those we would negotiate with an unaffiliated third party.

------

##### [**Table of Contents**](#toc)
***Our Chief Executive Officer and Chairman of our board of directors may have actual or potential conflicts of interest because of his financial interests in HCI or because of his positions with HCI.***

Following this offering, Paresh Patel, our Chief Executive Officer and Chairman of our board of directors, will continue to serve as Chairman of the board of directors of HCI and as HCI's Chief Executive Officer. Mr. Patel also owns HCI common stock, options to purchase HCI common stock, and other HCI equity awards. Mr. Patel's position at HCI and his ownership of HCI equity and equity awards creates, or may create the appearance of, conflicts of interest when he is faced with decisions that could have different implications for HCI than the decisions have for us. Additionally, because of his positions with HCI, Mr. Patel owns equity interests in both us and HCI. Continuing ownership of HCI shares could create, or appear to create, potential conflicts of interest if we and HCI face decisions that could have implications for both us and HCI. See "Management—Executive Officers and Directors." Mr. Patel is our only director, officer or employee who will serve as an officer or director of, or otherwise be employed by, HCI following the offering. Potential conflicts of interest may also arise out of commercial arrangements that we currently have with HCI and its affiliates or that we and HCI or its affiliates may enter into in the future. See "Certain Relationships and Related Party Transactions."

***We have, and expect to continue to have, significant customer concentration, and substantially all of our revenues to date are from customers who are affiliated with our controlling shareholder, HCI.***

All of our revenue prior to this offering comes from a small number of customers. All of these customers are also affiliates of HCI, our controlling shareholder. While we have one current customer that is not affiliated with HCI, we do not anticipate generating significant revenue from this customer in fiscal 2025. As a result, we expect our revenue for the foreseeable future will continue to be heavily dependent on customers affiliated with HCI. The loss of any of these customers, a reduction in revenue from any of these customers or an interruption in business from any of these customers would significantly harm our business, results of operations, and financial condition. While we expect this reliance to decrease over time as our customer base and revenue grow, we expect that we will continue to depend upon a relatively small number of customers (including affiliates of HCI) for a significant portion of our revenue for the foreseeable future.

***We may be unable to achieve some or all of the anticipated benefits of being a standalone public company.***

We may be unable to achieve the full strategic and financial benefits expected as a result of being a standalone public company, or such benefits may be delayed or not occur at all. These anticipated benefits include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allowing investors to evaluate the distinct merits, performance and future prospects of our business, independent
of HCI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhancing our ability to focus on our own operating priorities, strategies, and specific market dynamics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• improving our strategic and operational flexibility, allowing us to better target innovation and respond more
effectively to different customer needs and the competitive environment for our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allowing us to adopt a capital structure better suited to our financial profile and business needs, without
competing for capital with HCI's other businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating an independent equity structure that will facilitate our ability to effect future acquisitions utilizing
our capital stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• articulating a clear investment proposition and capital allocation policy to attract a long-term investor base
aligned with our strategic goals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enhancing employee hiring and retention by, among other things, improving the alignment of management and
employee incentives with performance and growth objectives of our business.

------

##### [**Table of Contents**](#toc)
We may be unable to achieve some or all of the benefits that we expect to achieve as a standalone public company in the time we expect, if at all, for a variety of reasons, including management distractions and potential operational disruptions during the transition; increased exposure to market volatility; and reduced business diversification compared to HCI. Failure to realize the expected benefits of becoming a standalone public company, or delays in doing so, could adversely affect our business, financial condition, cash flows, and results of operations.

***We may not be able to effectively perform the administrative and back-office services that we previously received from HCI at the same levels and costs as were previously provided by HCI.***

We have previously obtained, but no longer obtain, certain administrative and back-office services from HCI, as we have replicated, developed, or replaced functions and administrative services that we previously received from HCI.

We may not be able to perform these services, either internally or through third-party vendors, on terms and conditions, including cost, comparable to those that we previously received in the past from HCI. Additionally, we may be unable to sustain the services at the same levels or obtain the same benefits as when we were receiving such services and benefits from HCI. If we do not maintain our own adequate systems and business functions at the same levels and costs previously received from HCI, or if we are unable to obtain them from other providers at the same levels and costs previously received from HCI, we may not be able to operate our business effectively or at comparable costs, and our profitability may decline. In addition, we have historically received informal support from HCI. The level of this informal support could diminish or be eliminated following this offering.

***Third parties may seek to hold us responsible for liabilities of HCI, which could result in a decrease in our income.***

Third parties may seek to hold us responsible for HCI's liabilities. If those liabilities are significant and we are ultimately held liable for them, we cannot assure that we will be able to recover the full amount of our losses from HCI.

***We may be required to make cash payments to HCI for prior tax years under the Tax Allocation Agreement with HCI.***

We are a party to a tax allocation agreement with HCI (the "Tax Allocation Agreement") that requires that we pay to HCI the amount of U.S. federal income tax we would owe for each taxable year if we had filed a U.S. federal income tax return for such year as a separate company. If we incur a loss (or have unused tax credits) for a taxable year that can be carried back to prior years, HCI is required to pay us the amount of U.S. federal income tax refund we would be entitled to receive, computed on a separate company basis. If no carryback is allowed, however, HCI is obligated to pay us the amount of the reduction in the consolidated U.S. federal income taxes of HCI's affiliated group that results from such group's use of our losses or credits. The Tax Allocation Agreement will automatically terminate with respect to us if our membership in HCI's affiliated group terminates, but certain rights and obligations arising under the Tax Allocation Agreement will survive termination. Following the completion of this offering, we may be required to make cash payments to HCI in respect of taxes for prior years under the Tax Allocation Agreement, which payments could harm our results of operations and financial condition.

------

##### [**Table of Contents**](#toc)
***We could incur substantial additional costs and experience temporary business interruptions, and we may not be adequately prepared to meet the requirements of an independent, publicly traded company on a timely or cost-effective basis.***

We have historically operated as part of HCI and have had access to various corporate functions. Following this offering, we will need to provide internally or obtain from unaffiliated third parties the services we will no longer receive from HCI. We may be unable to replace these services in a timely manner or on terms and conditions as favorable as those we receive from HCI.

In anticipation of operating as an independent, publicly traded company, we have been installing and implementing information technology infrastructure to support certain of our business functions, including accounting and financial reporting, human resources, legal and compliance, communications, engineering, manufacturing and distribution, and sourcing. We may incur substantially higher costs than currently anticipated as we transition from the existing transactional and operational systems and data centers we currently use as part of HCI. If we are unable to transition effectively, we may incur temporary interruptions in business operations. Any delay in implementing, or operational interruptions suffered while implementing, our new information technology infrastructure could disrupt our business and have a material adverse effect on our results of operations.

Following this offering, and particularly after we are no longer an emerging growth company, we will incur significant legal, accounting, and other expenses that we did not incur as part of HCI. In addition, we will be directly subject to reporting and other obligations under the Exchange Act and the Listing Rules of the New York Stock Exchange. The Exchange Act requires that we file annual, quarterly, and current reports with respect to our business and financial condition. Beginning with our second required Annual Report on Form 10-K, we intend to comply with Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), which will require annual management assessments of the effectiveness of our internal control over financial reporting and a report by our independent registered public accounting firm on the effectiveness of internal control over financial reporting. However, while we remain an emerging growth company, we will not be required to include an attestation report by our independent registered public accounting firm on the effectiveness of internal control over financial reporting. Under the Sarbanes-Oxley Act, we are also required to maintain effective disclosure controls and procedures. To comply with these requirements, we may need to upgrade our systems, implement additional financial and management controls, reporting systems, and procedures and hire additional accounting and finance staff. These reporting and other obligations may place significant demands on management, administrative, and operational resources, including accounting systems and resources. If we are unable to upgrade our financial and management controls, reporting systems, information technology systems, and procedures in a timely and effective fashion, our ability to comply with financial reporting requirements and other rules that apply to reporting companies under the Exchange Act could be impaired, and we may be unable to conclude that our internal control over financial reporting is effective. If we are not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner, or if we or our independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of shares of our common stock could decline and we could be subject to sanctions or investigations by the Securities and Exchange Commission ("SEC") or other regulatory authorities, which would require additional financial and management resources.

Moreover, we cannot be certain that these measures would ensure that we implement and maintain adequate controls over our financial processes and reporting in the future. Even if we were to conclude, and our auditors were to concur, that our internal control over financial reporting provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, because of its inherent limitations, internal control over financial reporting might not prevent or detect fraud or misstatements. This, in turn, could have an adverse impact on trading prices for shares of our common stock, and could adversely affect our ability to access the capital markets.

------

##### [**Table of Contents**](#toc)
***We have no operating history as an independent, publicly traded company, and our historical consolidated financial information is not necessarily representative of the results we would have achieved as an independent, publicly traded company and may not be a reliable indicator of our future results.***

We derived the historical consolidated financial information included in this prospectus from HCI's consolidated financial statements, and this information does not necessarily reflect the results of operations and financial position we would have achieved as an independent, publicly traded company during the periods presented, or those that we will achieve in the future. This is primarily because of the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have operated as part of HCI, and HCI has performed various corporate functions for us. Our historical
consolidated financial information reflects allocations of corporate expenses from HCI for these functions. These allocations may not reflect the costs we will incur for similar services in the future as an independent, publicly traded company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may enter into transactions with HCI that did not exist prior to this offering, such as HCI's
provision of transition and other services, and undertake indemnification obligations, which will cause us to incur new costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our historical consolidated financial information does not reflect changes that we expect to experience in
the future as a result of our separation from HCI, including changes in the financing, cash management, operations, cost structure, and employee needs of our business. As part of HCI, we enjoyed certain benefits from HCI's operating diversity,
reputation, size, purchasing power, ability to borrow, and available capital for investments, and we may lose these benefits after this offering. As an independent entity, we may be unable to purchase goods, services, and technologies, obtain
insurance and health care benefits, computer software licenses, or other services or licenses, or access capital markets, on terms as favorable to us as those we obtained as part of HCI, and our results of operations may be adversely affected.

We will also face additional costs and demands on management's time associated with being an independent, publicly traded company, including costs and demands related to investor and public relations, public financial reporting, and corporate governance, including board of director fees and expenses. For additional information about our past financial performance and the basis of presentation of our consolidated financial statements, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our historical consolidated financial statements and the notes thereto included elsewhere in this prospectus.

***Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price.***

We are not currently required to comply with the rules of the SEC implementing Section 404 of the Sarbanes-Oxley Act and are, therefore, not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. Upon becoming a public company, we will be required to comply with the SEC's rules implementing Sections 302 and 404 of the Sarbanes-Oxley Act, which will require management to certify financial and other information in our quarterly and annual reports and provide an annual management report on the effectiveness of controls over financial reporting. Although we will be required to disclose changes made in our internal controls and procedures on a quarterly basis, we will not be required to make our first annual assessment of our internal control over financial reporting pursuant to Section 404 until the year following our first annual report required to be filed with the SEC. As an emerging growth company, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 until the later of (i) the year following our first annual report required to be filed with the SEC or (ii) the date we are no longer an emerging growth company. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our controls are documented, designed, or operating.

As a subsidiary of a public company, we do not currently have our own independent internal audit function, as our internal audit function is part of HCI's audit function. To comply with the requirements of being a public

------

##### [**Table of Contents**](#toc)
company, we have undertaken various actions, and will need to take additional actions, such as implementing numerous internal controls and procedures and hiring additional accounting or internal audit staff or consultants. Testing and maintaining internal control can divert our management's attention from other matters that are important to the operation of our business. Additionally, when evaluating our internal control over financial reporting, we may identify material weaknesses that we may not be able to remediate in time to meet the applicable deadline imposed upon us for compliance with the requirements of Section 404. If we identify any material weaknesses in our internal control over financial reporting or are unable to comply with the requirements of Section 404 in a timely manner or assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting once we are no longer an emerging growth company, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively affected. We could also become subject to investigations by the SEC, the stock exchange on which our securities are listed or other regulatory authorities, which could require additional financial and management resources. In addition, if we fail to remedy any material weakness, our financial statements could be inaccurate and we could face restricted access to capital markets.

**Risks Related to Our Common Stock and the Securities Markets** 

***There is no existing market for our common stock and an active, liquid trading market for our common stock may not develop following this offering.***

Prior to this offering, there has been no public market for our common stock. We cannot predict the extent to which investor interest in us will lead to the development of an active trading market or how liquid that market may become. If an active trading market does not develop, you may have difficulty selling any of our common stock that you purchase. The initial public offering price of our common stock will be determined by negotiation between us and the underwriters. This price will not necessarily reflect the price at which investors in the market will be willing to buy and sell shares of our common stock following this offering. In addition, the market price of our common stock may decline below the initial public offering price, and you may not be able to resell your shares at, or above, the initial public offering price.

***The market price of our common stock may be highly volatile, and you may not be able to resell your shares at or above the initial public offering price.***

Prior to this offering, there has been no public market for shares of our common stock. In addition, the market price of our common stock following this offering is likely to be highly volatile, may be higher or lower than the initial public offering price, and could be subject to wide fluctuations in response to various factors, some of which are beyond our control. These fluctuations could cause you to lose all or part of your investment in our common stock since you might be unable to sell your shares at or above the price you paid in this offering. The following factors, in addition to other factors described in this "Risk Factors" section and included elsewhere in this prospectus, may have a significant impact on the market price of our common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the occurrence of severe weather conditions and other catastrophes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our operating and financial performance, quarterly or annual earnings relative to similar companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• publication of research reports or news stories about us, our competitors or our industry, or positive or
negative recommendations or withdrawal of research coverage by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the public's reaction to our press releases, our other public announcements, and our filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of acquisitions, business plans, or commercial relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any major change in our board of directors or senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additional sales of our common stock by us, our directors, executive officers or principal shareholders;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse market reaction to any indebtedness we may incur or securities we may issue in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• short sales, hedging, and other derivative transactions in our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to capital market risks related to changes in interest rates, realized investment losses, credit
spreads, equity prices, foreign exchange rates, and performance of insurance-linked investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our creditworthiness, financial condition, performance, and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dividend policy and whether dividends on our common stock have been, and are likely to be, declared and paid
from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• perceptions of the investment opportunity associated with our common stock relative to other investment
alternatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory or legal developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in general market, economic, and political conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions or trends in our industry, geographies or customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting standards, policies, guidance, interpretations or principles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• threatened or actual litigation or government investigations.

In addition, broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating performance, and factors beyond our control may cause our stock price to decline rapidly and unexpectedly. In addition, in the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Litigation of this type could result in substantial costs and diversion of management's attention and resources, which could have a material adverse effect on our business, financial condition, results of operations, and prospects. Any adverse determination in litigation could also subject us to significant liabilities.

Additionally, if our common stock is not listed on, or becomes delisted from, the NYSE for any reason, and is quoted on an OTC Market, a trading system for equity securities that is not a national securities exchange, the liquidity and price of our securities may be more limited than if we were quoted or listed on the NYSE or another national securities exchange. You may be unable to sell your securities unless a market can be established or sustained.

***We will evaluate whether to pay cash dividends on shares of our common stock in the future.***

Once this offering is complete and we are a standalone, publicly traded company, our board of directors will evaluate whether to pay cash dividends to our shareholders. The timing, declaration, amount, and payment of future dividends to shareholders, if any, will fall within the discretion of our board of directors. Our board of directors' decisions regarding the payment of dividends will depend on consideration of many factors, such as our financial condition, earnings, sufficiency of distributable reserves, opportunities to retain future earnings for use in the operation of our business and to fund future growth, capital requirements, debt service obligations, legal requirements, regulatory constraints, and other factors that our board of directors deems relevant. There can be no assurance that we will pay a dividend in the future or continue to pay any dividend if we do commence the payment of dividends. See "Dividend Policy."

***Investors purchasing common stock in this offering will experience immediate and substantial dilution as a result of this offering and any future equity issuances.***

The initial public offering price of our common stock will be substantially higher than the pro forma net tangible book value per share of our outstanding common stock prior to completion of this offering. Accordingly, if you

------

##### [**Table of Contents**](#toc)
purchase our common stock in this offering, you will pay substantially more for your shares than the amounts paid by our existing shareholders for their shares and you will suffer immediate dilution of approximately $ per share in pro forma net tangible book value of our common stock. In addition, if the underwriters exercise their option to purchase additional shares from us, or if we issue additional equity securities in the future, investors purchasing shares of common stock in this offering will experience additional dilution. See "Dilution."

***Holders of our common stock may be diluted due to equity issuances.***

In the future, holders of our common stock may be diluted because of equity issuances for acquisitions, capital market transactions, or otherwise, including any equity awards that we will grant to our directors, officers, and employees. Such awards will have a dilutive effect on our earnings per share, which could adversely affect the market price of our common stock. We also plan to issue additional stock-based awards, including annual awards, new hire awards, and periodic retention awards, as applicable, to our directors, officers, and other employees under our employee benefits plans as part of our ongoing equity compensation program.

***We have broad discretion over the use of the net proceeds from this offering and it is possible that we will not use them effectively.***

We cannot specify with any certainty the particular uses of the net proceeds that we will receive from this offering. Our management will have broad discretion in the application of the net proceeds from this offering, including for any of the purposes described in the section titled "Use of Proceeds," and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. Because of the number and variability of factors that will determine our use of the net proceeds from this offering, their ultimate use may vary substantially from their currently intended use. The failure by our management to apply these proceeds effectively could adversely affect our business, results of operations, and financial condition. Pending their use, we may invest our proceeds in a manner that does not produce income or that loses value. Our investments may not yield a favorable return to our investors and may negatively impact the price of our common stock.

***A substantial portion of the outstanding shares of our common stock after this offering will be restricted from immediate resale, but may be sold on a stock exchange in the near future. The large number of shares eligible for public sale could depress the market price of our common stock.***

The market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market after this offering, and the perception that these sales could occur may also depress the market price of our common stock. Based on the shares of our common stock outstanding as of , 2025, we will have shares of our common stock outstanding after this offering, assuming no exercise of the underwriters' option to purchase additional shares from us. Our executive officers and directors, as well as holders of all of our currently outstanding shares, have entered into lock-up agreements with the underwriters under which they have agreed, or will agree, subject to specific exceptions, not to sell any of our stock for 180 days following the date of this prospectus. We refer to such period as the lock-up period. The underwriters may release certain shareholders from the lock-up agreements prior to the end of the lock-up period.

As a result of these agreements, and subject to the provisions of Rule 144, as promulgated under the Securities Act ("Rule 144"), or Rule 701, as promulgated under the Securities Act ("Rule 701"), shares of our common stock will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this prospectus, all shares of our common stock sold in this offering will be
immediately available for sale in the public market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning 181 days after the date of this prospectus, the remainder of the shares of our common stock will be
eligible for sale in the public market from time to time thereafter, subject in some cases to the

------

##### [**Table of Contents**](#toc)
volume and other restrictions of Rule 144, including the availability of current public information about us.

Sales of our common stock as restrictions end may make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. These sales could also cause the trading price of our common stock to fall and make it more difficult for you to sell shares of our common stock. See "Shares Eligible for Future Sale."

***We are an emerging growth company and the information we provide shareholders may be different from information provided by other public companies, which may result in a less active trading market for our common stock and higher volatility in our stock price.***

We are an "emerging growth company" as defined by the JOBS Act. We will continue to be an emerging growth company until the earliest to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which our total annual gross revenues first meet or exceed
$1.235 billion (as adjusted for inflation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have, during the prior three-year period, issued more than $1.0 billion in non-convertible debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which we (i) have an aggregate worldwide market value of common stock
held by non-affiliates of $700 million or more (measured at the end of each fiscal year) as of the last business day of our most recently completed second fiscal quarter and (ii) have been a
reporting company under the Exchange Act for at least one year (and filed at least one annual report under the Exchange Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of the date of the first sale of
our common stock pursuant to an effective registration statement under the Securities Act.

For as long as we are an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not being required to comply with the auditor attestation requirements of the assessment of our internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemption from new or revised financial accounting standards applicable to public companies until such standards
are also applicable to private companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements, and
registration statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exemptions from the requirement of holding a nonbinding advisory vote on executive compensation and shareholder
approval on golden parachute compensation not previously approved.

We may choose to take advantage of some or all of these reduced burdens while we qualify as an emerging growth company. We have taken advantage of some of these reduced burdens in this prospectus, and currently intend to do so in future filings while we qualify as an emerging growth company. For as long as we take advantage of any reduced burdens, the information we provide shareholders may be different from information provided by other public companies. In addition, it is possible that some investors will find our common stock less attractive as a result of these elections, which may result in a less active trading market for our common stock and higher volatility in our stock price.

------

##### [**Table of Contents**](#toc)
***Some provisions of Florida law and our amended and restated articles of incorporation and bylaws that will be in effect immediately prior to the completion of this offering may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition would be beneficial to our shareholders, and may prevent attempts by our shareholders to replace or remove our current management.***

Upon the closing of this offering, our status as a Florida corporation and the anti-takeover provisions of the Florida Business Corporation Act, which we sometimes refer to as the FBCA, may discourage, delay, or prevent a change in control even if a change in control would be beneficial to our shareholders.

The control share acquisition statute, Section 607.0902 of the FBCA, generally provides that in the event a person acquires voting shares of the company in excess of 20% of the voting power of all of our issued and outstanding shares, such acquired shares will not have any voting rights unless such rights are restored by the holders of a majority of the votes of each class or series entitled to vote separately, excluding shares held by the person acquiring the control shares or any of our officers or employees who are also directors of the company. Certain acquisitions of shares are exempt from these rules, such as shares acquired pursuant to the laws of intestate succession or pursuant to a gift or testamentary transfer, pursuant to a merger or share exchange effected in compliance with the FBCA if we are a party to the agreement, or pursuant to an acquisition of our shares if the acquisition has been approved by our board of directors before the acquisition. The control share acquisition statute generally applies to any "issuing public corporation," which means a Florida corporation which has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• One hundred or more shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Its principal place of business, its principal office, or substantial assets within Florida; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Either (i) more than 10% of its shareholders are resident in Florida; (ii) more than 10% of its shares
are owned by residents of Florida; or (iii) one thousand shareholders are resident in Florida. The residence of a shareholder is presumed to be the address appearing in the corporate records of the company.

Shares held by banks (except as trustee or guardian), brokers, or nominees are disregarded for purposes of calculating these percentages or numbers.

The affiliated transaction (or so-called "business combination") statute, Section 607.0901 of the FBCA, provides that we may not engage in certain mergers, consolidations, sales of assets, issuances of stock, reclassifications, recapitalizations, and other affiliated transactions with any "interested shareholder" for a period of three years following the time that such shareholder became an interested shareholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the time that such shareholder became an interested shareholder, our board of directors approved either
the affiliated transaction or the transaction which resulted in the shareholder becoming an interested shareholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder, the
interested shareholder owned at least 85% of our voting shares outstanding at the time the transaction commenced; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At or subsequent to the time that such shareholder became an interested shareholder, the affiliated transaction
is approved by our board of directors and authorized at an annual or special meeting of shareholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting shares
which are not owned by the interested shareholder.

An "interested shareholder" is generally defined as any person who is the beneficial owner of more than 15% of our outstanding voting shares.

The voting requirements set forth above do not apply to a particular affiliated transaction if one or more conditions are met, including, but not limited to, the following: if the affiliated transaction has been approved by a majority of our disinterested directors; if we have not had more than 300 shareholders of record at any time

------

##### [**Table of Contents**](#toc)
during the three years preceding the date the affiliated transaction is announced; if the interested shareholder has been the beneficial owner of at least 80% of our outstanding voting shares for at least three years preceding the date the affiliated transaction is announced; if the interested shareholder is the beneficial owner of at least 90% of our outstanding voting shares, exclusive of shares acquired directly from the company in a transaction not approved by a majority of disinterested directors; or if the consideration to be paid to the holders of each class or series of voting shares in the affiliated transaction meets certain requirements of the statute with respect to form and amount, among other things.

Both the control share acquisition statute and the affiliated transactions statute may have the effect of discouraging or preventing certain change of control or takeover transactions involving us.

In addition, our amended and restated articles of incorporation and bylaws that will be in effect immediately prior to the completion of this offering contain provisions that may make it more difficult for a third party to acquire us or increase the cost of acquiring us, even if doing so would benefit our shareholders, including transactions in which shareholders might otherwise receive a premium for their shares. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our board of directors is classified into three classes of directors with staggered three-year terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• nothing in our amended and restated articles of incorporation precludes future issuances without shareholder
approval of the authorized but unissued shares of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advance notice procedures apply for shareholders to nominate candidates for election as directors or to bring
matters before an annual meeting of shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our shareholders will only be able to take action at a meeting of shareholders and not by written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a special meeting of shareholders can only be called by our chairman of our board of directors, our chief
executive officer, our president (in the absence of a chief executive officer), a majority of our board of directors or the holders of 10% or more of all of our votes entitled to be cast on any issue proposed to be considered at the special meeting
of shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no provision in our amended and restated articles of incorporation or bylaws provides for cumulative voting,
which limits the ability of minority shareholders to elect director candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• directors will only be able to be removed for cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our amended and restated articles of incorporation authorize undesignated preferred stock, the terms of which may
be established and shares of which may be issued, without the approval of the holders of our capital stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain litigation against us can only be brought in Florida.

These provisions could discourage, delay or prevent a transaction involving a change in control of our company. These provisions could also discourage proxy contests and make it more difficult for you and other shareholders to elect directors of your choosing and cause us to take corporate actions other than those you desire. See "Description of Capital Stock."

***Our bylaws that will be in effect immediately prior to the completion of this offering designates the state courts located within the State of Florida as the exclusive forum for substantially all disputes between us and our shareholders and the federal district courts as the exclusive forum for Securities Act claims, which could limit our shareholders' ability to obtain a favorable judicial forum for disputes with us.***

Our bylaws that will be in effect immediately prior to the completion of this offering provide that, unless we consent in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed

------

##### [**Table of Contents**](#toc)

By becoming a shareholder in our company, you will be deemed to have notice of and have consented to the provisions of our bylaws related to choice of forum. The choice of forum provisions in our bylaws may limit our shareholders' ability to obtain a favorable judicial forum for disputes with us. Additionally, the enforceability of choice of forum provisions in other companies' governing documents has been challenged in legal proceedings, and it is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions contained in our bylaws to be inapplicable or unenforceable in such action. If so, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, results of operations, and financial condition.

------

##### [**Table of Contents**](#toc)
**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS** 

This prospectus contains forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential", or "continue" or the negative of these terms or other similar expressions. In particular, statements about the markets in which we operate, including growth of our various markets, and our expectations, beliefs, plans, strategies, objectives, prospects, assumptions, or future events or performance contained in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in this prospectus under the headings "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not maintain profitability in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we expect a number of factors to cause our results of operations to fluctuate on a quarterly and annual basis,
which may make it difficult to predict our future performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may lose our existing customers and/or fail to acquire new customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we expect to continue to rely on a relatively small number of customers, including our existing customers, all of
which are affiliated with HCI, for a substantial portion of our revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our success will depend on the continuous development and improvement of our proprietary Insurance-as-a-Service platform of products and services, including the development and implementation of new features and analytical
models;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• estimates of market opportunity may prove to be inaccurate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we face intense competition in our industry, which could negatively impact our business, results of operations
and financial condition and cause our market share to decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural catastrophes and environmental risks may have significant adverse effects on our customers'
property and casualty insurance businesses, which may prevent us from maintaining or expanding our customer base and increasing our revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• there may be consolidation in the insurance industry, which could reduce the use of our platform, solutions,
products, and services and adversely affect our revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our intellectual property and proprietary rights are valuable, and any inability to obtain, maintain, protect,
defend, and enforce them could reduce the value of our products and brand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an unauthorized disclosure or loss of customer or employee data or information or other sensitive, confidential,
or personal information, including by cyber-attack or other security breach, or a suspected or actual violation of federal or state data privacy or protection laws, regulations, or other obligations, could cause a loss of data or information, give
rise to remediation or other expenses, expose us to liability under federal and state laws, and subject us to litigation and investigations, which could have an adverse effect on our business, cash flows, financial condition, and results of
operations;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our information technology systems may fail or be disrupted or subject to errors, bugs, vulnerabilities, or
defects, which could adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any disruption of our Internet connections, including to any third-party cloud providers that host any of our
websites or web-based services, could affect the success of our Insurance-as-a-Service platform of products and services and our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we operate in a highly regulated environment, and any failure to comply with applicable insurance, data privacy,
or other regulatory requirements could materially and adversely affect our business, financial condition, and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory scrutiny of delegated authority and claims administration functions may increase our regulatory
compliance costs, limit our flexibility, and adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to stringent fiduciary duties with respect to insurance premium funds, and noncompliance could
result in regulatory enforcement or reputational harm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to extensive and evolving data privacy and cybersecurity regulation, which could increase our
compliance burden and exposure to liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our international operations in India expose us to regulatory risks under Indian law and cross-border compliance
obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HCI controls the direction of our business, and the concentrated ownership of our common stock will prevent you
and other shareholders from influencing significant decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If HCI sells a controlling interest in us to a third party in a private transaction, you may not realize any
change-of-control premium on shares of our common stock, and we may become subject to the control of a currently unknown third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• HCI's interests may conflict with our interests and the interests of our other shareholders and conflicts
of interest between HCI and us could be resolved in a manner unfavorable to us and our other shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our Chief Executive Officer and Chairman of our board of directors may have actual or potential conflicts of
interest because of his financial interests in HCI or because of his positions with HCI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have, and expect to continue to have, significant customer concentration, and substantially all of our
revenues to date are from customers who are affiliated with our controlling shareholder, HCI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may be unable to achieve some or all of the anticipated benefits of being a standalone public company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other risks and factors described under "Risk Factors" and elsewhere in this prospectus.

Given the risks and uncertainties set forth in this prospectus, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this prospectus are not guarantees of future performance and our actual results of operations, financial condition, and liquidity, and the development of the industry in which we operate, may differ materially from the forward-looking statements contained in this prospectus. In addition, even if our results of operations, financial condition and liquidity, and events in the industry in which we operate, are consistent with the forward-looking statements contained in this prospectus, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this prospectus speaks only as of the date of such statement. Except as required by federal securities laws, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this prospectus.

------

##### [**Table of Contents**](#toc)
**USE OF PROCEEDS** 

The net proceeds to us from the sale of shares of common stock by us in this offering will be approximately $ million, assuming an initial public offering price of $ per share (the midpoint of the range set forth on the cover of this prospectus), and after deducting underwriting discounts and commissions and estimated offering expenses.

We intend to use the net proceeds from this offering for general corporate purposes, including working capital, software and technology research and development, operating expenses and capital expenditures. Additionally, we may use a portion of the net proceeds to acquire or invest in businesses or technologies. However, currently we do not have agreements or commitments for any material acquisitions or investments.

We cannot specify with certainty the particular uses of the net proceeds that we will receive from this offering or the amounts we actually spend on the uses set forth above. Pending the use of proceeds from this offering as described above, we plan to invest the net proceeds that we receive in this offering in short-term and intermediate-term interest-bearing obligations, investment-grade investments, certificates of deposit or direct or guaranteed obligations of the U.S. government. Our management will have broad discretion in the application of the net proceeds from this offering and investors will be relying on the judgment of our management regarding the application of the proceeds.

------

##### [**Table of Contents**](#toc)
**DIVIDEND POLICY** 

We have never declared or paid any cash dividends on our common stock. We currently intend to retain any future earnings and do not expect to pay any dividends on our common stock in the foreseeable future. Any future determination to declare cash dividends will be made at the discretion of our board of directors, subject to applicable laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions, and other factors that our board of directors may deem relevant. Our ability to pay dividends may also be restricted by the terms of any future credit agreement or any future debt or preferred equity securities of us or our subsidiaries.

------

##### [**Table of Contents**](#toc)
**CAPITALIZATION** 

The following table sets forth our cash and cash equivalents, as well as our total capitalization, as of June 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis, giving effect to the receipt of the estimated net proceeds from the sale and issuance by us
of    shares of our common stock in this offering (assuming no exercise of the underwriters' option to purchase additional shares of common stock from us) at an assumed initial public offering price of
$ per share (the midpoint of the range set forth on the cover of this prospectus), and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

You should read this table together with our consolidated financial statements and related notes and the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" that are included elsewhere in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **As of June 30, 2025** | **As of June 30, 2025** |
| **(in thousands)** | **Actual** | **Pro forma<sup>(1)</sup>** |
|  Cash and cash equivalents | $110732 | $— |
|  Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, par value $0.001; no shares authorized, issued and outstanding, actual; no shares authorized, issued and outstanding, pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, par value $0.001; 184,000,000 shares authorized and 82,701,189 shares issued and outstanding, actual; shares authorized and shares issued and outstanding, pro forma | 83 |  |
|  Additional paid-in capital | 74185 |  |
|  Accumulated deficit | (17717) |  |
|  Total stockholders' equity | 56551 |  |
|  Total capitalization | $160812 | $— |

---

(1) Each $1.00 increase (decrease) in the assumed initial public offering price of $ per
share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma as adjusted amount of each of cash and cash equivalents, additional paid in capital, total stockholders'
equity and total capitalization by $ million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and
commissions and estimated offering expenses payable by us.

The information in the table above excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 6,350,000 shares of our common stock issuable upon the exercise of options under our 2021 Omnibus Plan at an
exercise price of $23.00 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,275,776 shares of common stock reserved for future issuance under the 2021 Omnibus Plan, as well as any
automatic increases in the number of shares of common stock reserved for future issuance under the plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 10,000,000 shares of our common stock reserved for future issuance under our 2025 Omnibus Plan, which will
become effective in connection with this offering (which number includes 3,275,776 shares of common stock available for future issuance under the 2021 Omnibus Plan), and shares of our common stock that become available pursuant to provisions in
the 2025 Omnibus Plan that automatically increase the share reserve under the 2025 Omnibus Plan.

------

##### [**Table of Contents**](#toc)
**DILUTION** 

If you invest in our common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the public offering price per share of our common stock and the pro forma net tangible book value per share of our common stock immediately after this offering. Dilution in pro forma net tangible book value per share to new investors represents the difference between the amount per share paid by purchasers of shares of our common stock in this offering and the pro forma net tangible book value per share of our common stock immediately after completion of this offering.

Net tangible book value per share is determined by dividing our total tangible assets less our total liabilities and common stock in stockholders' equity by the number of shares of our common stock outstanding. Our historical net tangible book value as of June 30, 2025, was approximately $, or $ per share.

After giving further effect to receipt of the net proceeds from our issuance and the sale of shares of our common stock in this offering, based on an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma net tangible book value as of June 30, 2025 would have been $ million, or $ per share. This amount represents an immediate increase in pro forma net tangible book value of $ per share to our existing shareholders and an immediate dilution of approximately $ per share to new investors participating in this offering. The following table illustrates this dilution:

---

| | |
|:---|:---|
|  Assumed initial public offering price per share of common stock | $|
|  Historical net tangible book value (deficit) per share as of June 30, 2025 | $— |
|  Increase per share attributable to new investors purchasing shares of common stock in this offering |  |
|  Pro forma net tangible book value per share immediately after this offering |  |
|  Dilution in pro forma net tangible book value per share to new common stock investors in this offering | $|

---

The following table presents, on a pro forma basis as of June 30, 2025, after giving effect to the sale by us of shares of our common stock in this offering, the difference between the directors, officers and their affiliates and the new investors purchasing shares of our common stock in this offering with respect to the number of shares of our common stock purchased from us, the total consideration paid or to be paid to us, and the average price per share paid or to be paid to us by such persons during the last five years and new investors, before deducting underwriting discounts and commissions and estimated offering expenses payable by us:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Shares Purchased | Shares Purchased | | |
|  | Number | Percent | Total<br>Consideration<br>Percent | Average Price<br>Per Share |
|  | ($ in millions) | ($ in millions) | ($ in millions) | ($ in millions) |
|  Directors, officers and their affiliates% |  |  | $nan% | $|
|  New investors% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total% |  |  | $nan% |  |

---

If the underwriters exercise in full their option to purchase additional shares of our common stock from us in this offering, the pro forma net tangible book value per share after this offering would be $ per share and the dilution to new investors in this offering would be $ per share. If the underwriters exercise such

------

##### [**Table of Contents**](#toc)
option in full, the number of shares held by new investors will increase to approximately shares of our common stock, or approximately % of the total number of shares of our common stock outstanding after this offering.

In addition, we may choose to raise additional capital due to market conditions or strategic considerations, even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity, as common stock, or other securities that are convertible into our common stock, such as convertible debt securities, the issuance of these securities could result in further dilution to our shareholders.

The number of shares of our common stock to be outstanding immediately after this offering is based on shares of our common stock outstanding as of , 2025. The number of shares of our common stock to be outstanding after this offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 6,350,000 shares of our common stock issuable upon the exercise of options under the 2021 Omnibus Plan at an
exercise price of $23.00 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,275,776 shares of common stock reserved for future issuance under the 2021 Omnibus Plan, as well as any
automatic increases in the number of shares of common stock reserved for future issuance under the plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 10,000,000 shares of our common stock reserved for future issuance under our 2025 Omnibus Plan, which will
become effective in connection with this offering (which number includes 3,275,776 shares of common stock available for future issuance under the 2021 Omnibus Plan), and shares of our common stock that become available pursuant to provisions in the
2025 Omnibus Plan that automatically increase the share reserve under the 2025 Omnibus Plan.

------

##### [**Table of Contents**](#toc)
**OUR BUSINESS** 

**Company Overview** 

Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the "Exzeo Platform," currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain.

Through the Exzeo Platform, Exzeo provides technology-based solutions and services for all operational and administrative activities and functions needed by P&C insurance carriers and their agents, including quoting and underwriting, policy management, claims processing management, data reporting, and financial reporting. As a result, the Exzeo Platform streamlines and automates the interaction between insurance carriers and their policyholders.

Exzeo was established in 2012 as the technology and innovation division of HCI Group, Inc., or HCI, a leading underwriter of homeowners insurance in Florida and 12 other states. Exzeo's initial customers are insurance carriers or their managing general agent that are owned or managed by HCI and its subsidiaries, and Exzeo has derived substantially all of its revenues to date from such customers. In addition to working with existing customers to expand their business, Exzeo intends to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology. Exzeo was founded with a clear mission: to develop a platform that enhances underwriting margins, reduces operating expenses, enables rapid expansion across both geographic markets and product lines, and delivers a streamlined, user-friendly experience for both carriers and policyholders.

Exzeo's data-centric technology and mission inspired its name, which is derived from the combination of three words that describe the "Big Data" it collects and utilizes in its products and services: <u>Ex</u>abyte (a million trillion – 10<sup>18</sup> – bytes), <u>Ze</u>ttabyte (10<sup>21</sup> bytes) and <u>Yo</u>ttabyte (10<sup>24</sup> bytes).

We currently hold insurance agency or managing general agent licenses, as appropriate, in 29 states. Through the Exzeo Platform, we currently provide services in the following 13 states in which our customers have operations: Florida, Connecticut, Georgia, Massachusetts, Montana, North Carolina, New Jersey, New Mexico, Nevada, Rhode Island, South Carolina, South Dakota, and Utah. We intend to expand our operations (and obtain additional licenses as needed) in the 21 remaining states based upon growth plans of our existing customers or the existing geographies and growth plans of new customers with which we engage.

**The Exzeo Platform** 

The Exzeo Platform is a proprietary software, analytics, and visualization tools platform that can support, enhance and/or replace legacy operational systems that are inefficient but commonplace across the insurance industry.

With the Exzeo Platform, Exzeo has created and refined several out-of-the-box software offerings that can be tailored to a customer's specific insurance portfolio and operational needs. The Exzeo Platform accumulates,

------

##### [**Table of Contents**](#toc)
verifies, and analyzes proprietary and third-party data within its large data warehouse that is critical to making profitable insurance decisions in near real-time and without the need of human underwriting input. A team of over 175 developers and data scientists work and collaborate daily to build, implement and upgrade the Exzeo Platform.

The Exzeo Platform is designed to be highly scalable and to optimize the performance of companies that operate in the insurance markets to the benefit of policyholders, capital providers, and other participants in the P&C insurance value chain. Exzeo's technology-led solutions currently support the management of over $1.2 billion of in-force premium across 13 states and 4 insurance companies.

**Long-Standing P&C Software Development**![LOGO](g28749g00x09.jpg)

Source: Company data

(1) Customer Premiums-in-Force managed by Exzeo.

The Exzeo Platform has three core components: advanced underwriting solutions, data analytics solutions, and insurance management solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Advanced Underwriting Solutions** – Successful decision-making in the insurance industry requires the
ability both to consume large sets of structured and unstructured data and to transform those data into actionable underwriting decisions. Exzeo has a 13-year track-record of turning Big Data into predictive
algorithms to enhance underwriting decisions. Exzeo's technology platform uses a micro-site organizational structure to give customers maximum flexibility to optimize for underwriting characteristics specific to an individual insurance
company's risk appetite. By making precise decisions at the individual risk level, Exzeo's models help insurers build portfolios focused on profitable risk accumulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Data Analytics Solutions** – The Exzeo Platform transforms both structured and unstructured data into
an actionable format to power its advanced decision-based models and workflow systems. We believe that this purely data-driven decision approach enhances capabilities across a carrier's entire organization, including underwriting, portfolio
construction, and claims management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insurance Management Solutions** – The Exzeo Platform is designed to handle all day-to-day activities of insurance carriers. Exzeo provides front-end distribution management, underwriting and pricing models, policy
administration and claims management and currently supports the operations of

------

##### [**Table of Contents**](#toc)
managing general agents, attorney-in-fact companies, and insurance/reinsurance carriers and capital providers. The Exzeo Platform utilizes automated underwriting that requires minimal information from the insurance agent and leverages the extensive internal data repository that Exzeo continues to develop and curate. Delivered through a flexible, web-based interface, Exzeo's suite of applications is designed to offer scalable and efficient solutions for insurance company management and operations. <br>

**The Exzeo Value Proposition** 

Exzeo has an innovative approach that we believe enables customers to fundamentally reimagine their investments in technology. Exzeo offers a differentiated platform designed to achieve two paramount objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivering a comprehensive suite of products that supports the full underwriting infrastructure, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Providing a technology solution purpose-built to drive enhanced underwriting performance for its
customers.

The Exzeo Platform is structured primarily as a variable-cost model to its customers, wherein insurance companies are charged based on the volume of premium managed through the platform. Upfront expenditures by customers to begin utilizing the platform are minimal, enabling carriers to adopt the solution with limited initial financial burden.

We believe that this model inherently aligns Exzeo's incentives with those of its customers. Exzeo is motivated to support customers in optimizing profitability within their existing premium portfolios while facilitating growth in the most profitable lines of business. Consequently, we believe that the success of Exzeo is directly and meaningfully aligned with the success of its customers.

We believe that the effectiveness of the Exzeo Platform is demonstrated by its initial carrier customers' market-leading results. Exzeo's customers experienced an approximate 12 percentage point improvement in their average loss ratio compared to the Florida homeowners' insurance industry average loss ratio during the years 2017-2024 (representing the period post-application of the Exzeo Platform to our initial customers), and Exzeo's customers enjoyed increased efficiency with an expense ratio (*i.e.,* the dollar amount of operating cost needed to manage $1 of premium) of its customers improving by approximately 14 percentage points in 2024 compared to 2017. See "—Exzeo Platform Customer Case Studies – HCI's Industry Leading Underwriting Margins."

**Industry Overview** 

*Overview of the P&C Insurance Industry* 

The P&C insurance industry is large, fragmented, highly regulated, and complex. P&C insurance protects policyholders against a range of losses on items of value, including homes, commercial property and vehicles, as well as from unforeseen events including natural disaster, litigation, and bodily injury. P&C insurance is pervasive and purchased by nearly all businesses and individuals. While some forms of P&C insurance are optional, others such as homeowners' insurance, are often obligatory (e.g. required by mortgage financing). The P&C insurance industry is highly competitive, and carriers compete primarily on product differentiation, pricing options, customer service and experience, marketing and advertising, affiliate programs and channel strategies.

The key functional areas in P&C insurance are underwriting and policy management, claims management, and billing. Underwriting and policy management are the cornerstone functions of all P&C insurance carriers' operations. These processes involve collecting information from potential policyholders, determining appropriate coverage and terms, pricing the policy, issuing the policy and updating and maintaining the policy over its lifetime. Claims management includes loss report intake, investigation and evaluation of incidents, claims negotiation, payment processing and litigation management. Billing includes account creation, policyholder invoicing, payment collection, commission calculation and disbursement. Each of these functions involves multiple touch points and information exchanges between individuals, carriers, agents, adjusters and systems.

------

##### [**Table of Contents**](#toc)
Total premiums collected by insurance carriers, known as Direct Written Premiums or DWP, is a key industry metric used in sizing the insurance market. According to S&P Global Market Intelligence, a global market research and insights firm, DWP for US P&C insurance was $1.1 trillion in 2024. We believe there are approximately 2,700 P&C insurance carriers within the United States. Carriers within the United States are regulated on a state-by-state basis.

Effective policy management by P&C insurance companies requires information and insurance technology systems that integrate with other internal systems and can control workflow, enable extensive configurability and provide visibility to users. Additionally, stringent archiving and audit requirements, along with frequent changes in underwriting, reporting and regulatory policy, have imposed a significant burden on systems and staff, which struggle to adequately support such requirements in technology environments dominated by legacy systems.

*Increasing Demand for Insurance-as-a-Service* 

Carriers invest substantial time and resources to develop and maintain their technology assets. We believe reliance on legacy systems, often on-premises, limits carriers' ability to respond to many of the significant challenges facing the industry, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Heightened end-user expectations*. Today's
policyholders and other end-users expect seamless and tailored experiences with every interaction, which has led to the increase in demand for digital distribution and servicing capabilities. For instance,
personal and commercial insurance end-users expect improved digital experiences with real time multi-channel service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Increased competition in the marketplace*. Carriers are diversifying into new geographies and lines
of business to drive profitable growth in direct written premiums. In response to escalating competition, carriers are investing in new technology solutions to increase speed to market, improve the underwriting process and reduce operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *New and evolving risks*. Carriers are under pressure to offer new and more complex insurance
products to address evolving use cases. Emerging risk categories, such as climate change, political risks and cybersecurity, are creating demand for new insurance products. These new and evolving risks require carriers to be increasingly agile in
their product development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Increased number of catastrophic events*. Natural disasters with large scale catastrophic losses
have become more frequent. More than ever, carriers need access to accurate, complete and large datasets about risk to accurately underwrite.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *The rise of the large-scale data analytics*. Carriers have predominately relied on traditional data
sources for underwriting, pricing and claims handling. The rise of large-scale data analytics, such as centralized data warehouses containing diverse datasets, is significantly increasing the amount of data available to carriers, enabling carriers
to assess risk on a more granular level, identify losses faster, simplify claims processing and mitigate fraud. Taking advantage of the new volumes of data requires open and flexible core systems that allow carriers to move more quickly and make
data-driven decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Emerging capabilities and advancing technologies*. Carriers can better analyze risk through enhanced
pricing models, artificial intelligence and machine learning technology. These emerging technologies offer carriers the opportunity to better understand and price risk in real time and a potential competitive advantage to realize the value from data
science research. As a result, carriers are more aggressively investing in technology to keep up with innovations and integrations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Digitization of insurance.* In the property insurance sub-sector, processing a single event such as a claim can require numerous transactions, involving consumers, lenders, contractors, adjustors, litigation and others. The complexity seen in one property claim
grows exponentially more difficult to manage at scale, and complexity is continuing to increase across the P&C insurance economy. Seamless integrations that enable information sharing across technology systems which cover the full-suite of
insurance carrier operations are now more important than ever.

------

##### [**Table of Contents**](#toc)
These challenges are placing increased pressure on carriers to improve consumer experience, business agility and speed to market. However, many carriers rely on legacy systems that are difficult to change, update or integrate without significant cost.

We believe that carriers will increasingly look to adopt Insurance-as-a-Service solutions, like the Exzeo Platform, that maximize efficiency of their systems, optimize underwriting outcomes and reduce operating expenses, while ultimately serving their customers more effectively.

**Market Opportunity**

The Exzeo Platform is built to serve the significant market opportunity that we believe exists at the intersection of P&C insurance, technology infrastructure and data analytics.

Exzeo's core competency is in property insurance. Exzeo was initially developed to serve customers operating in the Florida homeowners' insurance market, an $18 billion annual direct written premium market in 2024 according to S&P Global Market Intelligence. Since 2021, Exzeo's customers have expanded their operations to an additional 12 other states. These 13 operating states represent more than $47 billion of annual direct written premium. Exzeo's managed premium represents a less than 2% market share in its operating states, with only a 4% market share in its largest market, Florida.

While Exzeo currently supports customers in 13 states, the company has the infrastructure and regulatory approvals in place to deliver its data and services in 16 additional states—serving both new and existing customers expanding into new states. Over the next twelve months, Exzeo plans to obtain the necessary approvals to operate in the remaining 21 states, thereby positioning the company for nationwide coverage.

Given the substantial opportunity in the $173 billion annual premium US homeowners' insurance market, Exzeo expects to remain focused on its core market in the near-term. However, similar factors and experience are relevant in underwriting both personal and commercial properties. Nationwide, commercial property insurance represents $67 billion of annual direct written premium in 2024 according to S&P Global Market Intelligence.

![LOGO](g28749g58v58.jpg)

Note: 2024 statutory Direct Premiums Written ("DPW"); Source: S&P Global Market Intelligence, statutory filings

(1) Includes all states with reported DPW over $0; Homeowners line of business is using the "Homeowners
MP" LOB classification from S&P Global Market Intelligence and statutory filings

(2) Commercial Property line of business is using the "Commercial Multi Peril" LOB classification from
S&P Global Market Intelligence and statutory filings

------

##### [**Table of Contents**](#toc)
Cumulatively, across personal and commercial property insurance, we believe that Exzeo's core addressable market could exceed $240 billion in annual insurance premium and represents a significant opportunity to grow premium managed by Exzeo. Additionally, Exzeo's technology is designed to be highly flexible and can be adapted to serve additional product lines within the broader P&C marketplace, which represented approximately $1.062 trillion in annual direct written premium in 2024 according to S&P Global Market Intelligence.

![LOGO](g28749g59a01.jpg)

Note: 2024 statutory Direct Premiums Written ("DPW"); Source: S&P Global Market Intelligence, statutory filings

(1) Includes all states with reported DPW over $0.

(2) Calculated as Total HCI Homeowners DPW / Industry National Homeowners DPW; Homeowners line of business is using
the "Homeowners MP" LOB classification from S&P Global Market Intelligence and statutory filings.

Exzeo's core focus and expertise is building integrated, end-to-end insurance management technology. It is estimated that the U.S. property & casualty (P&C) insurance industry will spend approximately $43 billion on information technology software, services and infrastructure in 2025 according to Gartner. Approximately 75% of this spend is expected to be allocated to software (model and application development and implementation) and services (maintenance, support and advisory). The insurance industry makes this investment to increase operating efficiency and improve underwriting decision-making. Exzeo's objectives and business strategy are focused on expanding its share of this spend.

------

##### [**Table of Contents**](#toc)
![LOGO](g28749g59b02.jpg)

Source: Gartner, Inc., Forecast: Enterprise IT Spending for the Insurance Market, Worldwide, 2022-2028, 4Q24 Update, James Ingham and Inna Agamirzian, January 31, 2025

(1) Represents 2023 – 2028 CAGR based on Gartner research (sourced above).

(2) Includes TAM for Exzeo core solutions.

**Solutions Overview** 

The Exzeo Platform includes several core components that collectively address all critical functions of P&C insurance carrier operations, including quoting and underwriting, policy administration, claims management, data analytics, reporting, and financial management.

Exzeo generates revenue from three primary sources: underwriting and management services, claim services, and other technology services. Underwriting and management services include policy issuance and renewal, reinsurance placement, and administrative support, with fees tied to a percentage of premiums written or assumed, plus related policy fees. Claim services involve investigating, adjusting, and settling claims, including catastrophe-related claims, with pricing based on fees per claim or a percentage of covered losses. Other technology services are primarily derived from proprietary software solutions offered through software-as-a-service, or SaaS, service agreements, with fees based on policy or claim volumes, fixed charges, or percentages of claims handled.

------

##### [**Table of Contents**](#toc)
![LOGO](g28749g00x60.jpg)

Below is a summary of Exzeo's core solutions and services delivered through the Exzeo Platform: <u>Quoting and Underwriting</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **CasaClue** – Intelligent data repository with the ability to transform data from multiple sources to
enable precise risk selection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Harmony** – Comprehensive policy administration platform that streamlines the entire policy lifecycle,
from quoting to binding, while offering advanced underwriting capabilities. Its intuitive design enhances user experiences, ensuring a seamless and efficient workflow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AtlasViewer** – A mapping and data visualization platform that integrates location-based data from
multiple sources, providing users with a comprehensive and tailored view of risk. By transforming data into actionable insights, AtlasViewer helps drive smarter business decisions.

<u>Policy Management:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Harmony** – Next-generation policy administration platform that easily supports multiple companies and
their products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **SAMS** – Web-based system designed to automate and streamline
the process of managing insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Mercury** – Integrated workflow solution designed to ensure uniform routing and seamless policy change
tracking, thereby enhancing efficiency, maintaining consistency and staying compliant with automated processes.

<u>Claims Management:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ClaimColony** – End-to-end claims management platform used by carriers, third-party administrators, independent adjusters and insurance litigation services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AtlasViewer** – A tool providing a unique, visual way to look at claims and manage the claims
lifecycle, driving better efficiency and improving operational outcomes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **JustEZ** – The JustEZ app helps sync inspections from various carriers, schedule appointments, sync
photos to cloud and write scoping reports. JustEZ is built to help adjusters do more inspections better.

------

##### [**Table of Contents**](#toc)
<u>Data, Reporting & Financials:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **AtlasViewer** – Application that simplifies secure data sharing with stakeholders, enhancing
transparency and communication. It has powerful mapping and visualization tools that provide real-time insights and enable better decision-making.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exahub –** Centralized data platform built to efficiently store and manage complex, diverse datasets.
Designed for seamless large-scale data analytics, enterprise data warehousing, and cloud-based solutions, Exahub ensures scalability, speed and reliability for data-driven decision-making.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ExzeoIQ** – Provides transparent reporting for customers including month end financials, data calls,
exposure management, and overall risk management.

**Exzeo Platform Customer Case Studies** 

We believe that the value and advantages of the Exzeo Platform and Exzeo's solutions are illustrated by the performance and growth of Exzeo's initial customers' since the launch of the Exzeo Platform, as follows: 

*HCI's Industry Leading Underwriting Margins* 

We believe that Exzeo's technology and solutions have facilitated HCI's underwriting performance over the last 10 years since its launch, as we believe that Exzeo has enabled HCI to underwrite better, to be more efficient and to grow its business more effectively. HCI's carriers have experienced an approximate 12 percentage point improvement in their average loss ratio compared to the Florida homeowners' insurance industry average loss ratio during the years 2017-2024 (representing the period post-application of the Exzeo Platform to our initial customers), and Exzeo's customers enjoyed increased efficiency with an expense ratio (*i.e.,* the dollar amount of operating cost needed to manage $1 of premium) of its customers improving by approximately 14 percentage points in 2024 compared to 2017. If we expand this analysis nationwide, a similar trend emerges: when comparing HCI's 10-year average homeowners insurance net loss ratio to the same number for the nationwide P&C industry, Exzeo has enabled HCI to outperform by approximately 10 percentage points.

![LOGO](g28749g62v62.jpg)

Source: S&P Global Market Intelligence, Company filings, statutory filings

(1) HCI FL Homeowners LoB Direct Loss Ratio vs P&C Industry FL Homeowners LoB Direct Loss Ratio; DPE = Direct
Premiums Earned, DLI = Direct Losses Incurred, DLR = Direct Loss Ratio = DLI / DPE

(2) HCI GAAP Expense Ratio for FY 2017 – 2024

(3) Peers include ACIC, HRTG and UVE

------

##### [**Table of Contents**](#toc)
*HCI's Rapid Scaling While Using Exzeo Platform* 

We believe that Exzeo has made a significant contribution to HCI's ability to scale quickly, both geographically and in total premium written since the full implementation of the Exzeo Platform.

Following several years of implementation of Exzeo's technology in Florida, HCI announced its plans for a nationwide expansion in August 2020. By the end of 2021, HCI expanded its operations and sold policies in ten new states beyond Florida exclusively using the Exzeo Platform.

Additionally, HCI has leveraged the Exzeo Platform to pre-underwrite over one million policies at Citizens Property Insurance Corporation, the Florida state-backed carrier of last resort, identify the most attractive policies and ultimately grow its in-force premium by approximately $470 million, a 61% increase when comparing first quarter 2025 to third quarter 2023. HCI was able to grow its insurance book significantly in a short period of time while having to hire almost no additional employees.

*Exzeo Powers CORE's Launch and Speed to Market* 

We believe that Exzeo also increases its customers' speed to market. For example, in late 2023, HCI identified an opportunity in the commercial residential insurance market in Florida. By February 2024, HCI's newest carrier, the Condo Owners Reciprocal Exchange (CORE), had commenced operations. In a matter of a few months, Exzeo's technology infrastructure and management expertise enabled HCI to swiftly enter a new line of business and grow quickly in this new market. By year end 2024, CORE had in-force premium of $67 million.

**Our Growth Strategy** 

Based on the use of the Exzeo Platform and the performance and growth of our current customers to date, we intend to pursue multiple opportunities to expand our customer base and grow managed premium for current and future customers. The following are the key elements of our growth strategy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Improve customer margins:** The P&C insurance industry is a results-driven industry where the success of
insurers is measured by their ability to produce solid underwriting results. We intend to work with our existing customers to enable them to continue to profitably grow their premium over time and to work with new carriers to profitably grow their
business with the use of the Exzeo Platform and our solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Expand customer base:** In addition to working with existing customers to expand their business, we intend
to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology and variable fee structure. While we currently have one customer that is not affiliated with HCI, we do not expect
to generate significant revenue from this customer in the current fiscal year. As such, a key component of our growth strategy is to broaden our customer base beyond affiliates of HCI and reduce our reliance on a concentrated group of customers over
time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Facilitate the rapid growth of our customers:** Insurance companies have different approaches to growth due
to capital flexibility, market opportunity, and other factors. Exzeo gives customers flexibility to pursue their growth objectives including quickly capitalizing on growth opportunities in a cost-efficient manner, while giving them the tools to make
sound underwriting decisions. We intend to work with customers to facilitate rapid growth through the use and advantages of our platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Allow customers to grow into new states:** Exzeo allows customers to grow in their existing markets but also
expand their geographic footprint. Exzeo will work with existing and new customers on our platform to execute on expansion into new states and across the nation and to realize their growth objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Allow customers to enter new lines of business:** Exzeo's technology is also customizable to meet the
demands of customers to expand into new product lines. And to the benefit of the customer, Exzeo's

------

##### [**Table of Contents**](#toc)
variable-fee structure means that customers can grow new product lines at a pace that meets both their growth and profitability targets. We intend to work with customers to explore and expand into new lines to facilitate their growth.

We recognize the need for an expanded sales and marketing team as revenue and customer profile expand. We intend to invest in and grow our current sales and marketing team to support our future customer growth and diversification. Management will provide strategic direction as we add additional team members in order to seek out new customer partnerships.

**Competitive Environment** 

The market for insurance services and technology solutions focused on the P&C industry is competitive and fragmented. We compete with a wide range of entities, including established enterprise software vendors, specialized insurtech companies, legacy insurance technology providers, and in some cases, internal development teams within insurance carriers. We believe that the drive toward digital modernization in the insurance industry is fueling strong competition across every stage of the insurance value chain. We believe Exzeo is well-positioned to differentiate itself among competitors, given its unique and tailored platform and the success of its customers.

We view our competitors as falling into three categories: (1) insurance technology providers, (2) underwriting services providers and (3) insurance data providers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insurance technology providers include companies like Guidewire, Duck Creek and Majesco that provide web-based core insurance technology platforms, centered on policy management systems. Like Exzeo, these competitors seek to provide stable technology infrastructure that carriers use as the backbone of their
internal operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Underwriting service providers include managing general underwriters (MGUs) and program administrators
like Ryan Specialty and Brown & Brown that underwrite, price and manage insurance policies for carriers. Like Exzeo, these competitors seek to enable carriers to distinguish profitable from unprofitable policies and to manage aggregate
exposures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insurance data providers include companies like Verisk and Moody's RMS that curate third party and
proprietary data for use in underwriting and pricing decisions by carriers. Like Exzeo, these competitors seek to provide accurate and detailed data that form the basis for decision making.

Despite these competitive pressures, we believe our proprietary platform, deep industry expertise, and integrated approach provide significant differentiation. Our industry-specific applications are designed to work together seamlessly, delivering operational efficiency, improved data-driven decision-making, and faster time to market for our customers. However, our competitors may possess greater name recognition, larger sales forces, longer operating histories, and greater financial and technical resources, which may enable them to innovate more rapidly or offer more aggressive pricing or bundling strategies.

**Exzeo Subsidiaries and Corporate Structure** 

Exzeo provides its solutions principally through its wholly owned subsidiary, Exzeo Insurance Services, Inc., or EIS, which is a Florida corporation that holds a managing general agency license in the State of Florida and equivalent licenses in other states which it provides services to customers. EIS enters into managing general agency agreements or policy administration services agreements with its insurance-industry customers under which EIS may serve as the managing general agent of an insurance carrier or may provide services to a carrier's managing general agent in exchange for a fee based largely on a percentage of managed premium. Under these agreements, through the Exzeo Platform, EIS provides policy issuance and renewal services, as well as management services, including soliciting and negotiating reinsurance for authorized programs and managing

------

##### [**Table of Contents**](#toc)
and maintaining a policy administration system and providing claims management services. In addition to EIS, Exzeo also owns and operates Dark Horse Re, LLC, a reinsurance broker subsidiary formed in November 2023 that arranges and negotiates reinsurance contracts for insurance company customers, and from which we had a small amount of revenue from customers not affiliated with HCI in the amount of $1.75 million in the six months ended June 30, 2025 and $0.5 million in fiscal year 2024.

Software development and data analytics capabilities for the Exzeo Platform are supported by Exzeo USA, Inc., or Exzeo USA, and Cypress Tech Development Company, Inc., or Cypress Tech, both of which are wholly owned subsidiaries of Exzeo that design and maintain components of Exzeo's technology infrastructure. Cypress Tech also owns Exzeo Software Private Limited, or Exzeo India, a wholly owned subsidiary domiciled in India, which provides research and development services to the other subsidiaries of Exzeo along with technical support services.

Although EIS currently outsources claims adjustment and other claims management services to Griston Claim Management, Inc., a separate subsidiary of HCI ("Griston"), Griston and its personnel provide such services through the Exzeo Platform under license from Exzeo, and we may in the future use other providers of claim management services. The claims management services that we currently subcontract to Griston consist principally of activities that require human capital, including field adjusters and desk adjusters who manage the individual claims process for our customers and insureds. We have made a business decision that this physical or other human-performed work relating to the adjustment of claims is most efficiently handled via outsourcing to a claims vendor (such as Griston or other readily-available claims vendors) rather than by having our company staff a large claims department itself. In servicing our customers, the adjusters and other persons who perform these tasks use the reporting, scheduling, workflow management, and other tools in our proprietary *ClaimColony* suite to make the process faster and more efficient for the benefit of our customers. While we have historically chosen Griston for the provision of claims adjustment and related human-performed services, other vendors may be chosen in the future based upon needs or requirements of particular customers, claims volume, geography, and other factors, and these other vendors would utilize the Exzeo Platform for their activities. We do not believe that Griston would be a competitor of our company in the future. While Griston may offer its claims adjustment services to others in the future, Griston cannot offer the claims technology or platform to manage claims without the involvement of or a license from our company, as Griston merely provides the physical and human-performed adjustment services that are routinely outsourced by insurers and managing general agents.

Following this offering, Exzeo Group, Inc. will continue to be a majority owned subsidiary of HCI but will be managed and operated primarily as an independent public company. Immediately prior to this offering, HCI holds approximately 90.69% of our outstanding common stock, and current and former employees and directors of Exzeo hold the remaining approximately 9.31%. After giving effect to the offering at a price per share of $(the midpoint of the range set forth on the cover of this prospectus) and assuming the exercise in full of the underwriters' option, HCI will own approximately % of our outstanding common stock, current and former employees and directors of Exzeo will own approximately %, and investors in this offering will own approximately %.

------

##### [**Table of Contents**](#toc)
The following graphic illustrates the corporate structure and ownership of Exzeo and its subsidiaries:

![LOGO](g28749g78k77.jpg)

**Human Capital Management** 

As of September 23, 2025, we had approximately 352 full-time employees, the majority of which are based in the United States. We also engage with contractors, vendors, and consultants. We have invested substantial time and resources into building our team. Our success depends in large part on our collective effort across our areas of expertise and across sites in Tampa, Florida and Ocala, Florida. Therefore, it is crucial that we continue to attract and retain high-performing employees from all demographics by providing competitive compensation and benefits, and fostering a diverse, inclusive, and safe workplace, while making opportunities for all employees to grow and develop in their careers. None of our employees are represented by a labor union or covered by a collective bargaining agreement. We consider our relationship with our employees to be good.

*Work Environment* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We adhere to a harassment prevention policy which details how to report and respond to harassment issues
and prohibits any form of retaliation. This includes mandatory harassment prevention training for all employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are committed to paying a living wage to all of our full-time employees. We offer competitive benefits
to our employees including alternative plans for health coverage and short-term and long-term disability insurance at no cost to the employee. We also award restricted stock and stock options to certain of our employees to align their interests with
shareholder interests.

------

##### [**Table of Contents**](#toc)
*Diversity* 

We value a diverse and inclusive work environment and accordingly our workforce consists of individuals of many races, religions, and national origins with a variety of backgrounds and specialties, enriching our collective knowledge and skill base. We forbid any form of discrimination based upon race, gender, religion, or ethnicity. We embrace talent from all backgrounds, seek out diverse perspectives, and facilitate and invite open and authentic conversations.

**Intellectual Property** 

The insurance technology and software industry is characterized by the existence of a large number of patents and frequent claims and related litigation regarding patent and other intellectual property rights. Our success and ability to compete depend in part upon our ability to protect our proprietary technology, to establish and adequately protect our intellectual property rights, and to protect against third-party claims and litigation related to intellectual property. To accomplish these objectives, we rely on a combination of trademark, copyright, and trade secret laws in the United States and other jurisdictions, as well as contractual protections.

We also rely on several registered and unregistered trademarks, as well as pending applications for such registrations, in order to protect our brand both in the United States and internationally. We have registered the trademark "EXZEO" and related design marks in the United States and other jurisdictions.

We also seek to protect our intellectual property rights by entering into confidentiality and invention assignment agreements with our employees and contractors, as well as confidentiality agreements with third parties.

Despite these precautions, it may be possible for unauthorized parties to copy or use our proprietary information to create products or services that compete with ours. Policing unauthorized use of our technology and intellectual property rights can be difficult. The enforcement of our intellectual property rights depends on any legal actions, which can be costly and time consuming, against infringers being successful, which may not always be the case even when our rights have been infringed.

**Research and Development** 

We continuously engage in research and development activities aimed at enhancing the components of the Exzeo Platform and the services and solutions that we offer through the Platform. Our research and development efforts focus on the complex requirements of P&C insurers with particular emphasis on capabilities, operational efficiency, data analytics, security, and privacy in the cloud. These efforts are intended to help our customers improve their operations, efficiency, and underwriting and claims management activities.

**Properties** 

Our principal office facility is located in Tampa, Florida, where we lease an office comprised of approximately 28,400 square feet from Century Park Holding, LLC, a subsidiary of HCI. Our lease agreement with Century Park Holding, LLC will expire on December 31, 2032.

We also lease a secondary office in Ocala, Florida comprised of approximately 25,300 square feet. This facility is leased from Silver Springs Property Investment, LLC, a subsidiary of HCI. The lease is scheduled to expire on December 31, 2027.

We also lease an additional office in Noida, India comprised of substantially 15,000 square feet. This facility is leased from RKR Software Solutions Private Limited. The lease is scheduled to expire on January 31, 2031.

------

##### [**Table of Contents**](#toc)
**Government Regulations** 

We operate in a highly regulated and continually evolving legal and regulatory environment that spans federal, state, and international jurisdictions. Our Insurance-as-a-Service platform delivers a comprehensive suite of technology and operational solutions to property and casualty (P&C) insurers. As such, we are subject to a complex array of regulatory requirements related to insurance operations, consumer protection, data privacy, cybersecurity, and compensation practices.

In addition, our proprietary technology and analytics platform, developed and supported in India, introduces cross-border regulatory obligations, including data handling and international compliance standards. Meeting these regulatory requirements demands substantial and ongoing investment in compliance infrastructure, personnel, and governance practices. Any failure to comply with applicable laws and regulations could lead to enforcement actions, monetary penalties, reputational damage, or restrictions on our ability to operate in key markets.

*Insurance Regulatory Environment* 

We operate in a highly regulated and evolving legal environment that governs the provision of insurance-related services across multiple state jurisdictions. Exzeo provides its insurance technology and operational solutions to customers primarily through its wholly-owned subsidiary, EIS, a Florida corporation licensed as a managing general agent ("MGA") in the State of Florida and holding equivalent licenses in other states where it provides services. EIS enters into managing general agency agreements or policy administration services agreements with property and casualty insurance carriers or their managing general agents. Under these agreements, EIS may act as the managing general agent of an insurance carrier or may provide services to a carrier's MGA in exchange for fees that are primarily based on a percentage of managed premium.

Although neither Exzeo nor EIS assumes underwriting risk or issues insurance policies in their own names, EIS supports insurance carriers and their MGAs by providing a range of delegated operational services critical to the insurance value chain. These services include policy issuance and renewal, reinsurance negotiation support, management and maintenance of policy administration systems, and claims management services. Accordingly, we are subject to regulatory oversight from state insurance departments, which impose requirements related to licensing, contractual practices, fiduciary obligations, consumer protection, and financial reporting.

Because EIS operates under delegated authority from licensed insurance entities, it must comply with a patchwork of state-specific laws and regulations. These laws typically address licensing and registration, the disclosure of corporate and ownership structures, minimum financial responsibility requirements (such as surety bonds or errors and omissions insurance), recordkeeping standards, and periodic reporting. In jurisdictions that have adopted elements of the National Association of Insurance Commissioners ("NAIC") Third-Party Administrator Model Act, we may be required to comply with additional requirements, including mandatory records retention and heightened fiduciary responsibilities when handling insurance-related funds.

Under applicable state laws, insurance premiums are considered fiduciary assets. As part of our services, EIS may collect and manage such premiums, which requires compliance with specific legal obligations, including the maintenance of segregated premium trust accounts, timely remittance to insurers, reconciliation protocols, and in some states, posting of financial guarantees such as surety bonds. We have implemented internal controls, compliance policies, and audit procedures designed to ensure adherence to these fiduciary obligations.

EIS may also assist insurance carrier customers in the preparation and submission of rate and form filings to state regulators. This process requires us to navigate a decentralized and often inconsistent regulatory landscape, as some states mandate prior approval for such filings, while others follow "file-and-use" or "use-and-file" systems. Our compliance team works to ensure that all filings meet statutory requirements and align with carrier expectations and applicable regulatory standards.

------

##### [**Table of Contents**](#toc)
When performing delegated claims management functions, we are subject to laws governing fair claims practices. These include prohibitions on improper settlement conduct, delays in communication, or misrepresentation of policy coverage. In certain jurisdictions, individuals performing or overseeing claims adjusting services must be appropriately licensed, and we are responsible for ensuring that EIS personnel comply with such licensing and continuing education requirements.

The regulatory framework governing insurance service providers like EIS continues to evolve, with regulators placing greater scrutiny on delegated authority arrangements, outsourcing relationships, and consumer protection mechanisms. In parallel, emerging regulatory trends, such as heightened standards around cybersecurity, third-party risk oversight, and enterprise governance, may increase our compliance obligations either directly or indirectly through our contracts with insurer customers.

We monitor regulatory developments and maintain ongoing dialogue with insurance regulators and our customers to ensure transparency and alignment on compliance responsibilities. While we believe we are currently in material compliance with applicable laws and regulations, changes in regulatory interpretation, enhanced enforcement activity, or the enactment of new rules could increase compliance costs or affect the scope of services we are able to provide.

*Licensing of our Employees and Adjusters* 

In certain states where we operate, insurance claims adjusters must be licensed, and some jurisdictions impose annual continuing education requirements. In most instances, employees performing underwriting support services are not required to be licensed agents. As of September 8, 2025, 103 employees of our subsidiary, EIS, were required to maintain and did maintain the appropriate licenses to conduct activities in the applicable states in which we operate.

*Federal and State Legislative and Regulatory Changes* 

The U.S. federal government's oversight of the insurance industry was expanded under the Dodd-Frank Act with the establishment of the FIO in the U.S. Department of the Treasury. Although FIO has little actual regulatory power, it has the authority to monitor all aspects of the insurance sector and to represent the United States on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (the "IAIS"). In addition, the FIO serves as an advisory member of the Financial Stability Oversight Council, assists the secretary of the U.S. Department of the Treasury with administration of the Terrorism Risk Insurance Program, and advises the secretary of the U.S. Department of the Treasury on important national and international insurance matters. In addition, the FIO has the ability to recommend to the Financial Stability Oversight Council the designation of an insurer as "systemically significant" and therefore subject to regulation by the Federal Reserve as a bank holding company.

In addition, a number of federal laws affect and apply to the insurance industry, including various privacy and data protection laws, the Fair Credit Reporting Act ("FCRA"), and the economic and trade sanctions implemented by the Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury. OFAC maintains and enforces economic sanctions against certain foreign countries and groups and prohibits U.S. persons from engaging in certain transactions with certain persons or entities. OFAC has imposed civil penalties on persons, including insurance and reinsurance companies, arising from violations of its economic sanctions program.

*Data Privacy and Cybersecurity* 

As a provider of insurance technology and operational services that involve the collection, processing, and storage of personal, financial, and claims-related information from policyholders and applicants, we are subject to a range of federal and state data protection and cybersecurity laws. Many states have adopted versions of the

------

##### [**Table of Contents**](#toc)
NAIC Insurance Data Security Model Law, which imposes requirements on licensed entities to maintain written information security programs, perform regular risk assessments, implement safeguards to protect consumer data, and provide timely breach notifications to regulators and affected individuals.

In addition to the NAIC model law, certain states have enacted their own cybersecurity and data protection regulations, and other jurisdictions may adopt new or more stringent standards that diverge from existing frameworks. Legislative and regulatory developments at both the federal and state levels—whether industry-specific or generally applicable to financial services or technology providers—could expand our compliance obligations and increase operational complexity.

We have implemented internal cybersecurity policies and maintain a written information security program designed to comply with applicable regulatory requirements. We also conduct periodic assessments and testing of our cybersecurity controls to help ensure readiness and responsiveness in an evolving threat environment. See "Risk Factors—Risks Related to Intellectual Property, Data Privacy, and Cybersecurity."

*Regulatory Considerations for India-Based Technology Operations* 

Through our subsidiary domiciled in India, Exzeo Software Private Limited, we operate a technology center that is integral to the development, enhancement, and maintenance of our proprietary software platform and the provision of operational support for our U.S.-based services. As part of these activities, our Indian operations process personal data, including the personal information of individuals located outside India, in connection with services provided to our U.S. operations. This international structure subjects us to a range of regulatory and compliance requirements in both India and the United States.

In India, we are required to comply with various domestic laws governing employment practices, labor relations, taxation, corporate governance, cybersecurity, and data protection. Our processing of personal data in India— particularly data concerning non-Indian individuals—may be subject to India's evolving legal framework governing digital privacy and information security. This includes the Digital Personal Data Protection Act, 2023, and forthcoming implementing rules, which impose obligations on entities processing personal data within India, regardless of the data subject's nationality or residency. These obligations may include requirements related to consent, data retention, breach notification, and cross-border data transfers. We are monitoring the development and implementation of these regulations to ensure continued compliance.

Additionally, as a U.S.-based company with operations abroad, we are subject to the Foreign Corrupt Practices Act (FCPA) and similar anti-corruption and anti-bribery laws in other jurisdictions. These laws prohibit unlawful payments to foreign government officials and require companies to maintain accurate books and records and internal controls. We have adopted and implemented policies, training, and monitoring procedures designed to promote compliance with these legal requirements.

**Legal Proceedings** 

We are subject to routine legal proceedings in the normal course of operating our business. We are currently not involved in any legal proceedings which reasonably could be expected to have a material adverse effect on our business, results of operations or financial condition.

**Emerging Growth Company Status** 

We are an "emerging growth company," as defined by the JOBS Act. We will continue to be an emerging growth company until the earliest to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which our total annual gross revenues first meet or exceed
$1.235 billion (as adjusted for inflation);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have, during the prior three-year period, issued more than $1.0 billion in non-convertible debt;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year in which we (i) have an aggregate worldwide market value of common
stock held by non-affiliates of $700 million or more (measured at the end of each fiscal year) as of the last business day of our most recently completed second fiscal quarter and (ii) have been a
reporting company under the Exchange Act for at least one year (and have filed at least one annual report under the Exchange Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the fiscal year following the fifth anniversary of the date of the first sale of our
common stock pursuant to an effective registration statement under the Securities Act.

For as long as we are an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act of 2002, exemption from new or revised financial accounting standards applicable to public companies until such standards are also applicable to private companies, reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements, and exemptions from the requirement of holding a nonbinding advisory vote on executive compensation and shareholder approval on golden parachute compensation not previously approved. We may choose to take advantage of some or all of these reduced burdens. For example, we have taken advantage of the reduced disclosure obligations regarding executive compensation in this prospectus. For as long as we take advantage of the reduced reporting obligations, the information we provide shareholders may be different from information provided by other public companies. In addition, it is possible that some investors will find our common stock less attractive as a result of these elections, which may result in a less active trading market for our common stock and higher volatility in the price of our common stock.

We have elected to not take advantage of the extended transition period that allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies, which means that the financial statements included in this prospectus, as well as financial statements we file in the future, will be subject to all new or revised accounting standards generally applicable to public companies. Our election not to take advantage of the extended transition period is irrevocable.

------

##### [**Table of Contents**](#toc)
**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND** 

**RESULTS OF OPERATIONS** 

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited consolidated financial statements and the related notes included elsewhere in this prospectus. This section is intended to provide management's perspective on our financial performance, material trends, and uncertainties that may affect our business, financial condition, results of operations, and cash flows. This discussion contains forward-looking statements that are based on current expectations and assumptions and involve risks and uncertainties. Actual results may differ materially from those expressed or implied in these forward-looking statements due to various factors, including those described in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" included elsewhere in this prospectus. Our historical results of operations may not be indicative of future results.* 

**Company Overview** 

Exzeo Group, Inc., or Exzeo, is engaged in the business of providing turnkey insurance technology and operations solutions to insurance carriers and their agents, who we refer to as our "customers," based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo's Insurance-as-a-Service (IaaS) platform, which we refer to as the "Exzeo Platform," currently includes nine highly configurable software and data analytics applications that are purpose-built to serve the insurance value chain. The Exzeo Platform provides technology-based solutions for all operational and administrative activities and functions by insurance carriers and their agents, including quoting and underwriting, policy management, claims processing management, data reporting, and financial reporting. As a result, the Exzeo Platform streamlines and automates the interaction between insurance carriers and their policyholders.

Exzeo was established in 2012 as the technology and innovation division of HCI Group, Inc., or HCI, a leading underwriter of homeowners insurance in Florida that now writes policies in 12 additional states. Since its founding, Exzeo has been led by experienced technology and insurance operators with deep domain expertise who are focused on developing advanced data analytics algorithms and software tools that enable carriers to maximize efficiency of their systems, optimize underwriting outcomes and ultimately serve their customers more effectively.

The Exzeo Platform is a proprietary software, analytics, and visualization tools platform that can support, enhance and/or replace legacy operational systems that are inefficient but commonplace across the insurance industry. The Exzeo Platform is developed and maintained by Exzeo USA, Inc., a Florida corporation and wholly-owned subsidiary of our company, and Exzeo Software Private Limited, an indirect wholly-owned subsidiary of our company, which license the Exzeo Platform to Exzeo Insurance Services, Inc. ("EIS").

Exzeo provides its solutions to carrier customers principally through its wholly-owned subsidiary, EIS, which is a Florida corporation that holds a managing general agency license in the State of Florida and equivalent licenses in other states in which it provides services to customers. EIS enters into managing general agency agreements or policy administration services agreements with its insurance-industry customers under which EIS may serve as the managing general agent of an insurance carrier or may provide services to a carrier's managing general agent in exchange for a fee based largely on a percentage of managed premium. Under these agreements, EIS utilizes the Exzeo Platform to provide policy issuance and renewal services, as well as management services, including soliciting and negotiating reinsurance for authorized programs and managing and maintaining a policy administration system and providing claims management services. The Exzeo Platform has three core components: advanced underwriting solutions, data analytics solutions, and insurance management solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Advanced Underwriting Solutions** – Exzeo brings over a decade of expertise in developing and training
underwriting data models that Exzeo believes are demonstrated with its initial customers to

------

##### [**Table of Contents**](#toc)
deliver superior results compared to industry peers. These models efficiently process large data sets and distill them into actionable underwriting insights for carriers. By making precise decisions at the individual risk level, Exzeo's models help insurers build portfolios focused on profitable risk accumulation. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Data Analytics Solutions** – The Exzeo Platform transforms both structured and unstructured data into
an actionable format to power its advanced decision-based models and workflow systems. This purely data-driven decision approach enhances capabilities across a carrier's entire organization, including underwriting, portfolio construction, and
claims management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insurance Management Solutions** – EIS uses the Exzeo Platform to handle all of the day-to-day activities of insurance carriers. Through the platform, EIS provides front-end distribution management, underwriting and
pricing models, policy administration and claims management, as individual products or as a fully integrated set of solutions that solely utilize the Exzeo Platform. The insurance solutions offered by EIS currently support the operations of managing
general agents, attorney-in-fact companies, and insurance/reinsurance carriers and capital providers. The Exzeo Platform includes efficient, automated underwriting that
requires minimal information from the insurance agent and uses the extensive internal data repository that Exzeo develops and curates. Delivered through a flexible, web-based interface, Exzeo's suite of
applications offers scalable and efficient solutions.

**Discontinued Operations** 

Prior to July 2024, Exzeo was also engaged in the P&C insurance business, primarily focusing on homeowners' multi-peril policies in the State of Florida, via its subsidiary TypTap Insurance Company ("TTIC"). On July 1, 2024, Exzeo transferred all 2,500,000 outstanding shares of TTIC to HCI in exchange for the settlement of promissory notes issued by Exzeo. The sale of TTIC constituted a disposal of a significant component of Exzeo, resulting in a strategic shift in Exzeo's business and a major effect on Exzeo's operations and financial results. The results of TTIC are reflected in Exzeo's consolidated financial statements as discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the consolidated balance sheets and income from discontinued operations on the consolidated statements of income. As a result, and unless specifically stated, all discussions regarding results for years ended December 31, 2024, 2023 and 2022 and for the six months ended June 30, 2025 and 2024, reflect results from our continuing operations. As the transaction was between entities under common control and there was no change in control of TTIC, the purchase was accounted for as a common control transaction, which was recognized as an equity transaction. The purpose of this transaction was to restructure Exzeo, allowing it to focus on expanding its technology and insurance solutions services. This restructuring also reduced Exzeo's debt, thereby improving its capital structure and balance sheet. Refer to "Note 3—Discontinued Operations" in the notes to our audited consolidated financial statements for further discussion of this transaction included within the audited consolidated financial statements.

**Key Factors and Trends Affecting Results of Operations** 

We believe our performance and future success depends on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section entitled "Risk Factors."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Underwriting performance and continued investments in our technology*. We leverage data, technology,
and proprietary underwriting algorithms to enhance risk management. For instance, we leverage dynamic data sources obtained through various sources and apply advanced statistical methods to model that data into our pricing algorithm. We expect to
improve our ability to manage risk and price risk accurately over time as we incorporate new external data sources and utilize the experience gained over time with HCI's policyholder base. These enhancements are expected to lead to better
underwriting, lower loss frequency, and lower loss ratios over time – after adjusting for weather-related events. Our success in this area depends on our ability to continuously incorporate new data sources as they become available and
effectively apply them to improve our ability to accurately and competitively price risk.

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Intense competition in our market.* The market to provide core system software to the P&C
insurance industry is highly competitive and fragmented. This market is subject to changing technology, shifting customer needs and introductions of new products and services. Our competitors vary in size and in the breadth and scope of the products
and services offered. The principal competitive factors in our industry include total cost of ownership, product functionality, flexibility and performance, customer references and in-depth knowledge of the
P&C insurance industry. We believe that we compete favorably with our competitors on the basis of each of these factors. However, many of our current or potential competitors have greater financial and other resources, greater name recognition
and longer operating histories than we do.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *New customer success and retention*. We have relied and expect to continue to rely on customer
relationships with a relatively small number of carriers in the P&C insurance industry for a substantial portion of our revenue, and the loss of any of these customers or a reduction in revenue from any of these customers would significantly
harm our business, results of operations and financial condition. While we currently have one customer that is not affiliated with HCI, we do not expect to generate significant revenue from this customer in the current fiscal year. As part of our
growth strategy, we are focused on expanding our customer base by developing new partnerships with additional carriers and their agents. Our future operating results will depend, in part, on the rate at which we acquire new customers that are not
affiliates of HCI and maintain our relationships with existing customers as measured by the amount of managed premium on our platform. We believe that introducing these prospective customers to the advantages of our technology and variable fee
structure will be critical to diversifying our revenue and reducing customer concentration over time. Our ability to support this expansion depends on the continued performance of our customer success, onboarding, and support teams, which are
critical to ensuring high customer satisfaction, adoption, and retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *National expansion strategy / Expansion into new geographies and use cases.* We believe national
expansion will be a key driver of our long-term growth and success of our business. As of June 30, 2025, we provide services to P&C companies in the states of Connecticut, Florida, Georgia, Massachusetts, Montana, Nevada, New Jersey, New Mexico,
North Carolina, Rhode Island, South Carolina, South Dakota and Utah. We expect to apply our highly scalable model nationally, with a tailored approach to each state that is driven by the regulatory environment and local market dynamics. We hope to
expand rapidly and efficiently across different geographies while maintaining a high level of control over the specific strategy within each state. State expansion should create a broader base from which to grow premiums while increasing the
geographic diversity in the policyholder base and risk portfolio that we manage. We believe that broader geographic diversification will also improve our ability to secure favorable terms from reinsurers, which would improve the overall cost
structure and profitability for our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Regulatory matters.* The legal environment of cloud-based technology businesses is evolving in the
United States, and we are subject to a variety of laws and regulations in the United States that involve matters central to our business. Many of these laws and regulations are still evolving and being tested in courts and could be interpreted in
ways that could harm our business. These may involve privacy, data protection and personal information, content, intellectual property, data security, and data retention and deletion. In particular, we are subject to federal and state laws regarding
privacy and protection of people's data. U.S. federal and state laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change.
As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain, particularly in the evolving industry in which we operate, and may be interpreted and applied inconsistently from state to state and
inconsistently with our current policies and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Data privacy.* Our customers and their policyholders upload to and store their data in our
cloud-based platform. This presents legal challenges to our business and operations, such as consumer privacy rights and intellectual property rights. We must monitor and comply with a wide variety of laws and

------

##### [**Table of Contents**](#toc)
regulations regarding the data stored and processed on our cloud-based platform as well as in the operation of our business. Non-compliance with these laws could result in penalties or significant legal liability. We have invested, and continue to invest, human and technology resources into our compliance efforts and our data privacy compliance efforts generally. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Transition to a standalone public company.* We will become subject to the reporting and compliance
obligations of the federal and state securities laws, as well as stock exchange requirements. Operating as a standalone public company will require us to establish additional governance structure and corporate functions. Such expanded capabilities
will include external financial reporting, internal audit, treasury, investor relations, board of directors and officers, and stock administration resulting in additional costs incurred.

**Summary of Key Performance Metrics** 

We review a number of metrics, including the following key operating operational measures, as we make strategic decisions, measure our performance, evaluate our business, and identify trends in our business:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **In thousands, except percentages and counts** | **As of June 30,** | **As of June 30,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| **In thousands, except percentages and counts** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Managed Premium | $1220280 | $502758 | $580276 | $384143 | $319532 |
|  Managed Policies | 270094 | 97595 | 112475 | 93016 | 94441 |
|  Premium Per Policy | $4518 | $5151 | $5159 | $4130 | $3383 |
|  Gross Dollar Retention Rate | 88.8% | 97.4% | 95.1% | 96.6% | 105.1% |
|  Net Dollar Retention Rate | 242.7% | 148.8% | 151.1% | 120.2% | 162.0% |
|  Annual Recurring Revenue | $195257 | $118679 | $138462 | $98361 | $82244 |

---

***Managed Premium***

Managed premium is defined as the aggregate gross dollar value of in-force premiums that are processed, managed, or administered by our software solutions as of the period end date. This excludes any applicable policy fee income associated with managed policies. Premium pricing may vary by state due to a combination of factors including regulatory requirements; however, the majority of the policies are written in the state of Florida. Revenue is primarily derived from usage-based pricing models, which are structured based on the amount of managed premiums processed, in most cases. We view this as an important metric because it is an indicator of overall size of our platform. However, managed premium is an operational metric and should not be considered a substitute for revenue or other financial results.

Managed premiums attributable to insurance policies written in the state of Florida represented 84.8%, 77.3%, and 79.5% of total managed premiums for the years ended December 31, 2024, 2023, and 2022, respectively, and 90.0% and 82.7% for the six months ended June 30, 2025 and 2024, respectively.

***Managed Policies***

Managed policies is defined as the number of currently active policies managed by us on our platform as of the period end date. We consider managed policies a key metric for evaluating our financial performance, as growth in the number of managed policies not only drives revenue growth, but we also believe that an increase in managed policies may reflect broader brand awareness and deeper market penetration of our Exzeo Platform.

***Premiums Per Policy***

Premiums per policy is defined as the managed premium divided by managed policies. We view premium per policy as an important metric which provides information as to the average size of our customers' policyholder relationships. Growth in the metric can be indicative of increased coverages offered to our customers.

------

##### [**Table of Contents**](#toc)
***Gross Dollar Retention Rate***

Gross dollar retention rate measures the percentage of managed premium retained from our customers' existing policyholders. We calculate gross dollar retention rate by measuring the managed premium attributable to policyholders who remained active as of the end of the current period and dividing this amount by the managed premium attributable to those same policyholders as of the end of the corresponding prior-year period (i.e. twelve months earlier) We believe the gross dollar retention rate is a valuable indicator of platform engagement among existing policyholders and provides insight into our ability to retain and sustain premium volume over time through our services.

The managed premiums attributable to policyholders active at the end of the prior calendar year used to recalculate the gross dollar retention rates were $365,419, $308,781, and $207,228 for December 31, 2024, 2023 and 2022, respectively, and $446,209 and $329,145 as of June 30, 2025 and 2024, respectively.

***Net Dollar Retention Rate ("NRR")***

We use NRR as a key performance metric to measure the success of our carrier customer relationships and the growth of our revenue from new and existing carrier customers. To calculate NRR, we divide the amount of managed premium from new and existing policyholders of our customers at the end of the current period, by the amount of managed premium attributable to the policyholders active as of the respective prior-year period (i.e., twelve months earlier).

Our NRR is influenced by both the growth of existing carrier customers on the platform as well as the addition of new carrier customers. We believe that maintaining a high NRR is critical to achieving sustained long-term growth and reflects the strength of our value proposition to existing as well as future customers.

***Annual Recurring Revenue ("ARR")***

We use ARR as a key operational metric to assess the scale of our recurring revenue generated from managed premium. ARR is defined as the sum of each customer's managed premiums, multiplied by their respective contractual fee rates, plus any applicable policy fee income associated with managed policies as of the period end date. ARR excludes revenue from non-recurring sources, such as catastrophe services.

**Components of Operating Results**

***Revenue***

Exzeo generates revenue from three primary sources: underwriting and management services, claim services, and other technology services. Underwriting and management services include policy issuance and renewal, reinsurance placement, and administrative support, with fees tied to a percentage of premiums written or assumed, plus related policy fees. Claim services involve investigating, adjusting, and settling claims, including catastrophe-related claims, with pricing based on percentage of premiums written or assumed, fees per claim or a percentage of indemnification costs or both. Other technology services are primarily derived from proprietary software solutions offered through SaaS service agreements, with fees based on a combination of policy or claim volumes, fixed charges, or percentages of claims handled.

***Cost of revenue***

Cost of revenue consists of expenses directly attributable to the delivery of services that generate revenue. These include salaries and benefits of employees engaged in providing underwriting, management, administrative, and claim services, commissions for which Exzeo collects fees inclusive of agent commissions and subsequently pays the applicable commissions to agents, amortization of software intangible assets used to provide services, and allocated overhead costs from supporting departments. Information technology services that support policy

------

##### [**Table of Contents**](#toc)
underwriting, administrative functions, and claim handing services are also included. Claim handling costs are comprised of expenses incurred throughout the claims process, including adjustment, investigation, defense, recording, and payment functions. Allocated expenses from departments supporting these functions are also included in cost of revenue.

***Gross profit (loss)***

Gross profit represents profit or loss after cost of sales, as defined previously, and is the difference between revenues and cost of revenue. The increase in gross profit in the recent periods presented was primarily driven by growth in our managed premiums, which allows us to leverage our relatively fixed cost structure. As we continue to scale and find operational efficiencies, we expect gross margins to improve over time.

***Selling, general and administrative expenses***

Selling, general and administrative expenses represent costs associated with supporting operations and primarily consists of employee compensation, including stock-based compensation and benefits for our finance, IT, human resources, legal, sales, and general management functions, as well as facilities and professional services.

***Research and development***

Research and development costs consist primarily of personnel expenses, including salaries and benefits, bonuses, stock-based compensation and related overhead costs for employees engaged in the design and development of Exzeo's offerings and other internally used systems and applications.

***Depreciation and amortization***

Depreciation and amortization costs reflect expenses associated with the ongoing use of our tangible long-lived assets, including computer hardware, office equipment and leasehold improvements.

***Investment income***

Investment income represents interest earned from short-term investments. The principal factors that influence net investment income are the size of our investment portfolio and the yield on that portfolio.

***Interest expense***

Interest expense primarily consists of the allocation of interest from borrowing and funding associated with notes payable and loans to HCI.

***Income tax expense (benefit)***

Income tax expense (benefit) primarily consists of domestic corporate federal and state income taxes related to the sale of our services. The effective tax rate can be affected by many factors, including changes in tax laws, states of operation, regulation or rates, new interpretations of existing laws or regulations and changes to our overall levels of income before tax.

**Results of Operations** 

The following table presents selected financial information for Exzeo including the amounts expressed as a percentage of total revenue for the periods indicated and the percentage change year-over-year for the six months ended June 30, 2025 and 2024, respectively.

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended<br>June 30,** | **For the Six Months Ended<br>June 30,** | **Percentage of Revenue <sup>(1)</sup>** | **Percentage of Revenue <sup>(1)</sup>** | **Increase<br>(Decrease)** |
| **In Thousands** | **2025** | **2024** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Revenue | $108498 | $60305 | 100.0% | 100.0% | 79.9% |
|  Cost of revenue | 46122 | 36919 | 42.5% | 61.2% | 24.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** | **62376** | **23386** | **57.5%** | **38.8%** | **166.7%** |
|  **Operating expenses** |  |  |  |  |  |
|  Selling, general and administrative | 5666 | 4232 | 5.2% | 7.0% | 33.9% |
|  Research and development | 4575 | 3290 | 4.2% | 5.5% | 39.1% |
|  Depreciation and amortization | 211 | 156 | 0.2% | 0.3% | 35.3% |
|  **Total operating expenses** | **10452** | **7678** | **9.6%** | **12.8%** | **36.1%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** | **51924** | **15708** | **47.9%** | **26.0%** | **230.6%** |
|  Investment income | 1161 | 142 | 1.1% | 0.2% | 717.6% |
|  Interest expense |  | (3306) | 0.0% | (5.5%) | (100.0%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income before taxes** | **53085** | **12544** | **48.9%** | **20.8%** | **323.2%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense | 13471 | 3433 | 12.4% | 5.7% | 292.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income after taxes** | $**39614** | $**9111** | **36.5%** | **15.1%** | **334.8%** |

---

(1) Percentage may not total due to rounding.

------

##### [**Table of Contents**](#toc)
The following table presents selected financial information for Exzeo including the amounts expressed as a percentage of total revenue for the periods indicated and the percentage change year-over-year for the years ended December 31, 2024, 2023, and 2022, respectively.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **In Thousands** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **Percentage of Revenue<sup>(1)</sup>** | **Percentage of Revenue<sup>(1)</sup>** | **Percentage of Revenue<sup>(1)</sup>** | **Increase <br>(Decrease)** | **Increase <br>(Decrease)** | **Increase <br>(Decrease)** |
| **In Thousands** | **2024** | **2023** | **2022** | **2024** | **2023** | **2022** | **2024**<br>**vs.**<br>**2023** |  | **2023 vs.**<br>**2022** |
|  Revenue | $133948 | $88333 | $45631 | 100.0% | 100.0% | 100.0% | 51.6 | % | 93.6% |
|  Cost of revenue | 80739 | 71061 | 71740 | 60.3% | 80.4% | 157.2% | 13.6 | % | (0.9%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit (loss)** | **53209** | **17272** | **(26109)** | **39.7%** | **19.6%** | **(57.2** **%)** | **208.1** | **%** | **(166.2** **%)** |
|  **Operating expenses** |  |  |  |  |  |  |  |  |  |
|  Selling, general and<br>administrative . . . | 8343 | 7898 | 7339 | 6.2% | 8.9% | 16.1% | 5.6 | % | 7.6% |
|  Research and development | 6514 | 6528 | 4130 | 4.9% | 7.4% | 9.1% | (0.2) | %) | 58.1% |
|  Depreciation and amortization | 335 | 292 | 175 | 0.3% | 0.3% | 0.4% | 14.8 | % | 67.1% |
|  **Total operating expenses** | **15192** | **14718** | **11644** | **11.3%** | **16.7%** | **25.5%** | **3.2** | **%** | **26.4%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income (loss)** | **38017** | **2554** | **(37753)** | **28.4%** | **2.9%** | **(82.7** **%)** | **N.M** | **.** | **(106.8** **%)** |
|  Investment income | 548 | 52 | 30 | 0.4% | 0.1% | 0.1% | N.M | . | 73.3% |
|  Interest expense | (3329) | (1723) | (882) | (2.5%) | (2.0%) | (1.9%) | 93.2 | % | 95.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) from continuing operations, before taxes** . . . . | **35236** | **883** | **(38605)** | **26.3%** | **1.0%** | **(84.6** **%)** | **N.M** | **.** | **(102.3** **%)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from continuing operations . . . | 9168 | (12018) | 3409 | 6.8% | (13.6%) | 7.5% | (176.3) | %) | (452.5%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss) from continuing operations, after taxes** | $**26068** | $**12901** | $**(42014)** | **19.5%** | **14.6%** | **(92.1** **%)** | **102.1** | **%** | **(130.7** **%)** |

---

(1) Percentage may not total due to rounding.

N.M.—Percentage not qualitatively meaningful

***Revenue***

*<u>Comparison of the Six Months Ended June 30, 2025 and 2024</u>*

The following table sets forth, for the periods presented, summary information regarding our disaggregated revenue:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** | **Percentage of Revenue <sup>(1)</sup>** | **Percentage of Revenue <sup>(1)</sup>** | **Increase<br>(Decrease)** |
| **In thousands** | **2025** | **2024** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Underwriting and management | $88545 | $45122 | 81.6% | 74.8% | 96.2% |
|  Claim services <sup>(2)</sup> | 15452 | 11930 | 14.2% | 19.8% | 29.5% |
|  Other technology services | 4501 | 3253 | 4.2% | 5.4% | 38.4% |
|  **Total revenue** | $**108498** | $**60305** | **100.0%** | **100.0%** | **79.9%** |

---

(1) Percentage may not total due to rounding.

------

##### [**Table of Contents**](#toc)
(2) Portion of this revenue is earned through services delivered directly via outsourcing to a subsidiary of HCI.
Although this revenue is recognized on a gross basis because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from the subsidiary of HCI closely match the revenue recognized. Refer
to "—Non-GAAP Financial Measures" for additional details.

Revenue increased by $48.2 million, or 79.9%, to $108.5 million for the six months ended June 30, 2025, compared to $60.3 million for the six months ended June 30, 2024. Underwriting and management revenue increased by $43.4 million, or 96.2%, to $88.5 million, representing 81.6% of total revenue, compared to $45.2 million, representing 74.8% of total revenue for the six months ended June 30, 2024. This increase was primarily driven by contributions from new management fee arrangements that commenced earlier in the year along with growth in managed premiums from our existing customer base. Claim services revenue grew by $3.5 million, or 29.5%, to $15.5 million, representing 14.2% of total revenue, compared to $11.9 million, representing 19.8% of total revenue for the six months ended June 30, 2024. The increase in claim services was primarily driven by higher Catastrophe ("CAT") claim service fees and field adjuster service fees along with the increase in managed premiums from our existing customer base. Other technology services revenue increased $1.3 million, or 38.4%, to $4.5 million for the six months ended June 30, 2025, representing 4.1% of total revenue, compared to $3.3 million, representing 5.4% of total revenue for the six months ended June 30, 2024. The increase in other technology services was primarily driven by higher CAT software fees. The higher CAT software fees were primarily driven by hurricanes Milton and Helene, which began generating significant revenue in 2025.

*<u>Comparison of the Years Ended December 31, 2024, 2023 and 2022</u>*

The following table sets forth, for the periods presented, summary information regarding our disaggregated revenue:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended**<br> **December 31,** | **For the Years Ended**<br> **December 31,** | **For the Years Ended**<br> **December 31,** | **Percentage of Revenue<sup>(1)</sup>** | **Percentage of Revenue<sup>(1)</sup>** | **Percentage of Revenue<sup>(1)</sup>** | **Increase**<br> **(Decrease)** | **Increase**<br> **(Decrease)** |
| **In thousands** | **2024** | **2023** | **2022** | **2024** | **2023** | **2022** | **2024 vs.**<br>**2023** | **2023 vs.**<br>**2022** |
|  Underwriting and management | $95373 | $61410 | $27337 | 71.2% | 69.5% | 59.9% | 55.3% | 124.6% |
|  Claim services<sup>(2)</sup> | 30777 | 19911 | 15555 | 23.0% | 22.5% | 34.1% | 54.6% | 28.0% |
|  Other technology services | 7798 | 7012 | 2739 | 5.8% | 7.9% | 6.0% | 11.2% | 155.9% |
|  **Total revenue** | $**133948** | $**88333** | $**45631** | **100.0%** | **100.0%** | **100.0%** | **51.6%** | **93.6%** |

---

(1) Percentage may not total due to rounding.

(2) Portion of this revenue is earned through services delivered directly via outsourcing to a subsidiary of HCI.
Although this revenue is recognized on a gross basis because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from the subsidiary of HCI closely match the revenue recognized. Refer
to "—Non-GAAP Financial Measures" for additional details.

*Year ended December 31, 2024 compared with year ended December 31, 2023* 

Revenue increased overall by $45.6 million, or 51.6%, to $133.9 million for the year ended December 31, 2024, compared to $88.3 million in 2023. Underwriting and management revenue increased by $34.0 million, or 55.3% to $95.4 million, representing 71.2% of total revenue, compared to $61.4 million, representing 69.5% of total revenue, in 2023. The increase was primarily driven by the growth in managed premiums from our existing customer base and the absence of a fee waiver in the amount of $15.0 million that reduced revenue in 2023, but was not in effect in 2024. Fee waivers are entirely at Exzeo's discretion and Exzeo does not intend to offer fee waivers in the future. Claim services revenue grew by $10.9 million, or 54.6% to $30.8 million, representing 23.0% of total revenue, compared to $19.9 million, representing 22.5% of total revenue, in 2023. Growth in this category was also driven by the increase in managed premiums from our existing customer base along with higher CAT claims driven by newly developed Hurricanes Milton and Helene. In general, the claims service revenue will increase with higher managed premiums. Other technology services revenue increased $0.8 million,

------

##### [**Table of Contents**](#toc)
or 11.2%, to $7.8 million, representing 5.8% of total revenue, compared to $7.0 million, representing 7.9% of total revenue, in 2023. The growth was driven by increased software licensing fees and CAT software fees related to Hurricanes Helene and Milton.

*Year ended December 31, 2023 compared with year ended December 31, 2022* 

Revenue increased by $42.7 million, or 93.6%, to $88.3 million for the year ended December 31, 2023, compared to $45.6 million in 2022. Underwriting and management revenue grew by $34.1 million, or 124.6%, to $61.4 million, representing 69.5% of total revenue, compared to $27.3 million, or 59.9% of total revenue, in 2022. The increase was primarily driven by the lower fee waiver arrangement in 2023 of $15.0 million compared to $44.0 million in 2022, which significantly reduced revenue in 2022. Claim services revenue grew by $4.4 million, or 28.0%, to $19.9 million, or 22.5% of total revenue, compared to $15.6 million, or 34.1% of total revenue, in 2022. Growth in this category was driven by an increase in managed premiums from our existing customer base. In general, the claims service revenue will increase with higher managed premiums. Other technology services revenue increased $4.3 million, or 155.9%, to $7.0 million, or 7.9% of total revenue, compared to $2.7 million, or 6.0% of total revenue, in 2022. The increase was driven by higher CAT software fees tied to Hurricane Ian, which began generating significant revenue in 2023.

***Cost of Revenue***

<u>*Comparison of the Six Months ended June 30, 2025 and 2024*</u>

The following table presents a summary of our disaggregated cost of revenue for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** | **Percentage of Revenue <sup>(1)</sup>** | **Percentage of Revenue <sup>(1)</sup>** | **Increase**<br>**(Decrease)** |
| **In Thousands** | **2025** | **2024** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Policy commission and related expenses | $22741 | $18710 | 21.0% | 31.0% | 21.5% |
|  Outsourced claims fees | 6086 | 3891 | 5.6% | 6.5% | 56.4% |
|  Direct personnel expense | 10079 | 7002 | 9.3% | 11.6% | 43.9% |
|  Other operating expenses | 6011 | 6214 | 5.5% | 10.3% | (3.3%) |
|  Depreciation and amortization | 1205 | 1102 | 1.1% | 1.8% | 9.3% |
|  **Total Cost of Revenue** | $**46122** | $**36919** | **42.5%** | **61.2%** | **24.9%** |

---

(1) Percentage may not total due to rounding.

Cost of revenue increased $9.2 million, or 24.9%, to $46.1 million for the six months ended June 30, 2025, compared to $36.9 million for the six months ended June 30, 2024. As a percentage of total revenue, cost of revenue was 42.5% for the six months ended June 30, 2025, compared to 61.2% for the six months ended June 30, 2024. Policy commission and related expenses increased by $4.0 million, or 21.5%, to $22.7 million, representing 21.0% of total revenue, for the six months ended June 30, 2025, compared to $18.7 million, representing 31.0% of total revenue, for the six months ended June 30, 2024. The increase was driven by growth in managed premiums from our existing customer base. Outsourced claims fees increased $2.2 million, or 56.4%, to $6.1 million, representing 5.6% of total revenue, for the six months ended June 30, 2025, compared to $3.9 million, representing 6.5% of total revenue, for the six months ended June 30, 2024. The increase in outsourced claims fees was mainly driven by $1.9 million higher hurricane Ian litigation fees. Direct personnel expense increased by $3.1 million, or 43.9%, to $10.1 million, representing 9.3% of total revenue, for the six months ended June 30, 2025, compared with $7.0 million, or 11.6% of total revenue, for the six months ended June 30, 2024. The increase in direct personnel expense was primarily driven by higher compensation-related expenses of salaries, wages, and discretionary pay. Other operating expenses decreased by $0.2 million, or 3.3%, to $6.0 million, representing 5.5% of total revenue, compared to $6.2 million, representing 10.3% of total

------

##### [**Table of Contents**](#toc)
revenue, for the six months ended June 30, 2024. The decrease in other operating expenses is driven by lower claims management activity and systems expenses related to cloud hosting costs. Depreciation and amortization expenses remained relatively flat at $1.2 million, representing 1.1% of total revenue, for the six months ended June 30, 2025 and $1.1 million, representing 1.8% of total revenue, for the six months ended June 30, 2024.

*<u>Comparison of the Years Ended December 31, 2024, 2023 and 2022</u>*

The following table presents a summary of our disaggregated cost of revenue for the periods presented:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **In Thousands** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Increase<br>(Decrease)** | **Increase<br>(Decrease)** |
| **In Thousands** | **2024** | **2023** | **2022** | **2024** | **2023** | **2022** | **2024**<br>**vs.**<br>**2023** | **2023<br>vs.**<br>**2022** |
|  Policy commission and related expenses | $39013 | $36837 | $38657 | 29.1% | 41.7% | 84.7% | 5.9% | (4.7%) |
|  Outsourced claims fees | 13779 | 7700 | 11732 | 10.3% | 8.7% | 25.7% | 78.9% | (34.4%) |
|  Direct personnel expense | 13422 | 13802 | 10820 | 10.0% | 15.7% | 23.8% | (2.8%) | 27.4% |
|  Other operating expense | 12298 | 10825 | 9046 | 9.2% | 12.2% | 19.7% | 13.6% | 19.7% |
|  Depreciation and amortization | 2227 | 1897 | 1485 | 1.7% | 2.1% | 3.3% | 17.4% | 27.8% |
|  **Total Cost of Revenue** | $**80739** | $**71061** | $**71740** | **60.3%** | **80.4%** | **157.2%** | **13.6%** | **(0.9** **%)** |

---

(1) Percentage may not total due to rounding.

*Year ended December 31, 2024 compared with year ended December 31, 2023* 

Cost of revenue increased $9.7 million, or 13.6%, to $80.7 million for the year ended December 31, 2024, compared to $71.1 million in 2023. As a percentage of total revenue, cost of revenue was 60.3% in 2024, compared with 80.4% in 2023. Policy commission and related expenses increased $2.2 million, or 5.9%, to $39.0 million, representing 29.1% of total revenue, compared to $36.8 million, or 41.7% of total revenue, in 2023. The increase was driven by growth in managed premiums from our existing customer base. However, the weighted average commission rate declined from 10.4% in 2023 to 9.1% in 2024 as Florida premiums grew from 59% to 70% of total managed premiums, where commission rates are generally lower due to competitive market dynamics. The overall commission rate as a percentage of premium declined despite higher managed premiums. Outsourced claims fees increased $6.1 million, or 78.9%, to $13.8 million, representing 10.3% of total revenue, compared to $7.7 million, or 8.7% of total revenue, in 2023. The increase was mainly driven by higher current period CAT claims activity related to Hurricanes Milton and Helene as well as the litigation and claims fees from growth in managed premiums. These storms resulted in a greater number of reported claims, which required increased use of outsourced claims handling services. The increase in fees was attributable to this higher claim volume rather than changes in the cost per claim. Direct personnel expense decreased $0.4 million, or 2.8%, to $13.4 million, representing 10.0% of total revenue, compared with $13.8 million, or 15.7% of total revenue, in 2023. The decrease was primarily driven by lower compensation-related expenses, including salaries, wages, and discretionary pay, compared to the prior year. Other operating expenses increased $1.5 million, or 13.6%, to $12.3 million, representing 9.2% of total revenue, compared to $10.8 million, or 12.2% of total revenue, in 2023. The increase is driven by higher claims management activity and systems expenses related to cloud hosting costs. These costs relate to third-party cloud infrastructure services used to support our core policy administration, claims management, and internal systems. Our contracts with cloud service providers are typically annual and include usage-based pricing components that scale with activity levels. Depreciation and amortization increased $0.3 million, or 17.4%, to $2.2 million, representing 1.7% of total revenue, compared to $1.9 million, or 2.1% of total revenue, in 2023. The increase is driven by higher depreciation expense associated with internally developed software placed into service.

------

##### [**Table of Contents**](#toc)
*Year ended December 31, 2023 compared with year ended December 31, 2022* 

Cost of revenue decreased $0.7 million, or 0.9%, to $71.1 million for the year ended December 31, 2023, compared to $71.7 million in 2022. As a percentage of total revenue, cost of revenue was 80.4% in 2023, compared to 157.2% in 2022. Policy commission and related expenses decreased $1.8 million, or 4.7%, to $36.8 million, representing 41.7% of total revenue, compared to $38.7 million, or 84.7% of total revenue, in 2022. The decrease is primarily driven by lower commissions on new and renewal policies in Florida as commission rates decreased from 10.0% to 8.0%. In addition, the decrease is due to lower commission related to the discontinuation of the flood insurance business. Since the approval in January 2023 to discontinue flood policies, the carrier has cancelled or non-renewed majority of the flood policies. Outsourced claims fees decreased $4.0 million, or 34.4%, to $7.7 million, representing 8.7% of total revenue, compared to $11.7 million, or 25.7% of total revenue, in 2022. The decrease is driven by a decline in CAT claims activity tied to prior-year events, specifically Hurricane Ian in 2022. With reported claims requiring less outsourcing fees, the related service fees declined accordingly. Direct personnel expense increased $3.0 million, or 27.4%, to $13.8 million, representing 15.7% of total revenue, compared to $10.8 million, or 23.8% of total revenue, in 2022. The increase was primarily driven by higher overall compensation costs, mainly the discretionary pay, which reflected the achievement of company-wide performance goals for the year. This increase was partially offset by lower salaries, wages and stock-based compensation expense primarily due to organizational adjustments associated with changes in our business operations. These compensation-related changes were limited in scope and not indicative of an ongoing trend. Other operating expenses increased $1.8 million, or 19.7%, to $10.8 million, representing 12.2% of total revenue, compared to $9.0 million, or 19.7% of total revenue, in 2022. The increase was driven by increased non-CAT desk adjusters and claims management activity growth, partially offset by lower systems expense. Depreciation and amortization increased $0.4 million, or 27.8%, to $1.9 million, representing 2.1% of total revenue, compared to $1.5 million, or 3.3% of total revenue, in 2022. The increase is driven by continued investment in internally developed software placed into service.

***Operating Expenses***

<u>*Comparison of the Six Months Ended June 30, 2025 and 2024*</u> 

The following table presents a summary of our disaggregated operating expenses for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended<br>June 30,** | **For the Six Months Ended<br>June 30,** | **Percentage of Revenue <sup>(1)</sup>** | **Percentage of Revenue <sup>(1)</sup>** | **Increase<br>(Decrease)** |
| **In Thousands** | **2025** | **2024** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Selling, general and administrative | $5666 | $4232 | 5.2% | 7.0% | 33.9% |
|  Research and development | 4575 | 3290 | 4.2% | 5.5% | 39.1% |
|  Depreciation and amortization | 211 | 156 | 0.2% | 0.2% | 35.3% |
|  **Total operating expenses** | $**10452** | $**7678** | **9.6%** | **12.7%** | **36.1%** |

---

(1) Percentage may not total due to rounding.

Total operating expenses increased $2.8 million, or 36.1%, to $10.5 million for the six months ended June 30, 2025, compared to $7.7 million for the six months ended June 30, 2024. As a percentage of total revenue, total operating expenses was 9.6% for the six months ended June 30, 2025, compared to 12.7% for the six months ended June 30, 2024. Selling, general and administrative expenses increased $1.4 million, or 33.9%, to $5.7 million, representing 5.2% of total revenue, for the six months ended June 30, 2025, compared to $4.2 million, representing 7.0% of total revenue, for the six months ended June 30, 2024. The increase in selling, general and administrative expenses was driven by higher salary, bonus, and stock comp expenses as a result of increased headcount slightly offset by higher overhead allocations to TTIC. Research and development expenses increased by $1.3 million, or 39.1%, to $4.6 million, representing 4.2% of total revenue, for the six months ended June 30, 2025, compared to $3.3 million, representing 5.5% of total revenue, for the six months ended June 30, 2024. The increase in research and development was mainly driven by a combination of higher employee compensation,

------

##### [**Table of Contents**](#toc)
including salary and bonus, as well as increased investment in research and development initiatives. Depreciation and amortization expenses remained relatively flat at $0.2 million, representing 0.2% of total revenue for the six months ended June 30, 2025 and 0.3% of total revenue for the six months ended June 30, 2024.

*<u>Comparison of the Years Ended December 31, 2024, 2023, 2022</u>* 

The following table presents a summary of our disaggregated operating expenses for the periods presented:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Percentage of<br>Revenue<sup>(1)</sup>** | **Increase<br>(Decrease)** | **Increase<br>(Decrease)** |
| **In Thousands** | **2024** | **2023** | **2022** | **2024** | **2023** | **2022** | **2024 vs.**<br>**2023** | **2023 vs.**<br>**2022** |
|  Selling, general and administrative | $8343 | $7898 | $7339 | 6.2% | 8.9% | 16.1% | 5.6% | 7.6% |
|  Research and development | 6514 | 6528 | 4130 | 4.9% | 7.4% | 9.1% | (0.2%) | 58.1% |
|  Depreciation and amortization | 335 | 292 | 175 | 0.3% | 0.3% | 0.4% | 14.7% | 66.9% |
|  **Total operating expenses** | $**15192** | $**14718** | $**11644** | **11.3%** | **16.7%** | **25.5%** | **3.2%** | **26.4%** |

---

(1) Percentage may not total due to rounding.

*Year ended December 31, 2024 compared with year ended December 31, 2023* 

Operating Expenses increased $0.5 million, or 3.2%, to $15.2 million, representing 11.3% of total revenue, for the year ended December 31, 2024, compared with $14.7 million, or 16.7% of total revenue, in 2023 reflecting improved operating efficiency. Selling, general and administrative expenses increased $0.4 million, or 5.6%, to $8.3 million, representing 6.2% of total revenue, compared to $7.9 million, or 8.9% of total revenue, in 2023. The increase was driven by lower corporate overhead allocation to TTIC, higher employee health insurance costs and stock-based compensation, partially offset by a reduction in salaries and system expenses. The corporate overhead allocation to TTIC included shared services such as HR, IT, legal, accounting, and lease-related costs. Allocations were based on departmental inputs and applied consistently using methodologies appropriate to each cost type. The Company ceased to provide corporate services, and ceased allocating related expenses, to TTIC as of July 1, 2025. Research and development expenses remained relatively flat at $6.5 million, representing 4.9% and 7.4% of total revenue, in 2024 and 2023, respectively. Depreciation and Amortization expenses remained flat at $0.3 million, representing 0.3% of total revenue, for both 2024 and 2023, respectively.

*Year ended December 31, 2023 compared with year ended December 31, 2022* 

Operating expenses increased $3.1 million, or 26.4%, to $14.7 million, representing 16.7% of total revenue, for the year ended December 31, 2023, compared with $11.6 million, or 25.5% of total revenue, in 2022, reflecting improved operating efficiency. Selling, general and administrative expenses increased $0.6 million, or 7.6%, to $7.9 million, representing 8.9% of total revenue, compared to $7.3 million, representing 16.1% of total revenue, in 2022. The increase was primarily driven by higher compensation costs, including salaries, wages, and discretionary pay, partially offset by a lower allocation of corporate overhead to TTIC and reduced stock-based compensation expense. Research and development expenses increased $2.4 million, or 58.1%, to $6.5 million, representing 7.4% of total revenue, compared to $4.1 million, representing 9.1% of total revenue, in 2022. The increase was primarily driven by higher personnel-related costs, including salaries, wages, and discretionary pay. Depreciation and amortization expenses increased $0.1 million, or 66.9%, to $0.3 million, representing 0.3% of total revenue, compared to $0.2 million, representing 0.4% of total revenue, in 2022. The slight increase is driven by higher depreciation on software and office equipment.

------

##### [**Table of Contents**](#toc)
***Investment Income***

*<u>Comparison of the Six Months Ended June 30, 2025 and 2024</u>* 

The following table summarizes our investment income for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended<br>June 30,** | **For the Six Months Ended<br>June 30,** | **Increase<br>(Decrease)** |
| **In Thousands** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Investment income | $1161 | $142 | 718% |

---

Investment income increased by $1.1 million, or 718%, to $1.2 million for the six months ended June 30, 2025, compared to $0.1 million for the six months ended June 30, 2024. The increase was primarily driven by higher average cash and investment balances during the period, which resulted in greater interest income.

*<u>Comparison of the Years Ended December 31, 2024, 2023 and 2022</u>* 

The following table summarizes our investment income for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended**<br>**December 31,** | **For the Years Ended**<br>**December 31,** | **For the Years Ended**<br>**December 31,** | **Increase**<br>**(Decrease)** | **Increase**<br>**(Decrease)** |
| **In Thousands** | **2024** | **2023** | **2022** | **2024 vs.<br>2023** | **2023 vs.<br>2022** |
|  Investment income | $548 | $52 | $30 | 954% | 73.3% |

---

*Year ended December 31, 2024 compared with year ended December 31, 2023* 

Investment income increased $0.5 million, or 954% to $0.5 million for the year ended December 31, 2024, compared to less than $0.1 million in 2023. The increase was primarily driven by higher average cash and investment balances during the period, which resulted in greater interest income.

*Year ended December 31, 2023 compared with year ended December 31, 2022* 

Investment income remained relatively flat for the year ended December 31, 2023, compared to 2022.

As a percentage of revenue, investment income was 0.4%, 0.1% and 0.1% for the years ended December 31, 2024, 2023 and 2022, respectively.

***Interest Expense***

<u>*Comparison of the Six Months Ended June 30, 2025 and 2024*</u>

The following table summarizes our interest expense for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** | **Increase<br>(Decrease)** |
| **In Thousands** | **2025** | **2024** | **2025 vs.<br>2024** |
|  Interest expense | $— | $3306 | (100%) |

---

There was no interest expense recorded for the six months ended June 30, 2025, compared to interest expense of $3.3 million recorded for the six months ended June 30, 2024. On July 1, 2024, Exzeo entered into a purchase agreement with HCI to transfer 2,500,000 shares of TTIC's $1.00 par value common stock, representing all of TTIC's issued and outstanding common shares. In exchange, three promissory notes previously issued to HCI by Exzeo were deemed fully repaid, with the exception of the 2.0% Promissory Note, which was later repaid in full in November 2024.

------

##### [**Table of Contents**](#toc)
<u>*Comparison of the Years Ended December 31, 2024, 2023 and 2022*</u>

The following table summarizes our interest expense for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Years Ended**<br>**December 31,** | **For the Years Ended**<br>**December 31,** | **For the Years Ended**<br>**December 31,** | **Increase**<br>**(Decrease)** | **Increase**<br>**(Decrease)** |
| **In Thousands** | **2024** | **2023** | **2022** | **2024 vs.<br>2023** | **2023 vs.<br>2022** |
|  Interest expense | $3329 | $1723 | $882 | 93.3% | 95.2% |

---

*Year ended December 31, 2024 compared with year ended December 31, 2023* 

Interest expense increased $1.6 million, or 93.3% to $3.3 million for the year ended December 31, 2024, compared to $1.7 million in 2023. The increase was primarily driven by interest on a note payable to HCI used to redeem all outstanding Series A Preferred Stock in January 2024. This loan was subsequently repaid following the sale of TTIC in July 2024.

*Year ended December 31, 2023 compared with year ended December 31, 2022* 

Interest expense increased $0.8 million, or 95.2%, to $1.7 million for the year ended December 31, 2023, compared to $0.9 million in 2022. This increase was primarily driven by a note payable to HCI to satisfy a capital contribution obligation.

As a percentage of revenue, interest expense was 2.5%, 1.9% and 1.9% for the years ended December 31, 2024, 2023 and 2022, respectively.

***Income Tax***

<u>*Comparison of the Six Months Ended June 30, 2025 and 2024*</u>

The following table summarizes our income tax expense for the periods presented, including total tax expense and effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** |
| **In Thousands** | **2025** | **2024** |
|  Income before taxes | $53085 | $12544 |
|  Income tax expense | 13471 | 3433 |
|  Effective tax rate | 25% | 27% |

---

Income tax expense was $13.4 million and $3.4 million for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate was 25% and 27% for the six months ending June 30, 2025 and 2024, respectively. Our effective tax rate for the six months ended June 30, 2025 was 25.4%, compared with the U.S. federal statutory rate of 21%. The difference was primarily driven by state income taxes, net of federal tax benefits, which contributed approximately 4.0%. We expect our effective tax rate to continue to vary from the statutory rate due to state tax obligations and other similar permanent differences.

Our effective tax rate for the six months ended June 30, 2024 was 27.4.%, compared with the U.S. federal statutory rate of 21%. The difference was primarily driven by state income taxes, net of federal tax benefits, which contributed approximately 4.0%, and non-deductible compensation expenses, which contributed an additional 1.7%. We expect our effective tax rate to continue to vary from the statutory rate due to state tax obligations and similar permanent differences.

------

##### [**Table of Contents**](#toc)
<u>*Comparison of the Years Ended December 31, 2024, 2023 and 2022*</u>

The following table summarizes our income tax expense for the periods presented, including total tax expense and effective tax rate:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **In Thousands** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** |
| **In Thousands** | **2024** | **2024** | **2023** | **2023** | **2022** | **2022** |
|  Income (loss) from continuing operations, before taxes | $| 35236 | $| 883 | $| (38605) |
|  Income tax expense (benefit) from continuing operations |  | 9168 |  | (12018) |  | 3409 |
|  Effective tax rate |  | 26% |  | (1,361%) |  | (9%) |

---

*For the years ended December 31, 2024, 2023 and 2022* 

Income tax expense (benefit) was $9.2 million, $(12.0) million and $3.4 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively. The effective tax rate was 26%, (1,360%) and (9%) for the twelve months ended December 31, 2024, 2023 and 2022, respectively.

Our effective tax rate for 2024 was 26.0%, compared with the U.S. federal statutory rate of 21%. The difference was primarily driven by state income taxes, net of federal tax benefits, which contributed approximately 4.1%, and non-deductible compensation expenses, which contributed an additional 0.9%. We expect our effective tax rate to continue to vary from the statutory rate due to similar permanent differences and state tax obligations.

Our effective tax rate for 2023 was significantly below the U.S. federal statutory rate of 21%, primarily due to the full release of the valuation allowance established in 2022, which reduced our effective tax rate by approximately 1,449.1%. Additional impacts included a benefit from state income taxes, net of federal tax effects, of 122.5%, partially offset by other items totaling approximately 190.0%, including non-deductible compensation expenses, which increased our tax expense by approximately 39%. We do not expect similar impacts from valuation allowance adjustments in future periods.

Our effective tax rate for 2022 was a benefit of 8.8%, compared to the U.S. federal statutory rate of 21%. The difference was primarily driven by the establishment of a full valuation allowance on the deferred tax assets of the group, which reduced our tax expense due to the pre-tax loss for the year. Additional impacts included a tax benefit from non-deductible compensation expense of approximately 0.7%, partially offset by state income taxes, net of federal tax effects, which increased our tax expense by approximately 4.2%. Other items contributed a net impact of 0.1%.

Our future effective tax rate is subject to future regulatory developments and changes in the mix of our geographic earnings. Our total tax expense in future years may also vary as a result of discrete items such as excess tax benefits or deficiencies.

For additional information regarding income tax expense, see Note 12—"Income Taxes" in the notes to our audited consolidated financial statements included in this prospectus.

**Non-GAAP Financial Measures** 

In addition to our results determined in accordance with accounting principles generally accepted in the United States ("GAAP"), we use certain non-GAAP financial measures to evaluate our operating performance and make strategic decisions. These non-GAAP financial measures may include metrics such as adjusted EBITDA and Adjusted Revenue. We believe these measures provide useful supplemental information for investors by facilitating comparisons of our performance across reporting periods and with other companies in our industry, many of which use similar non-GAAP financial measures.

------

##### [**Table of Contents**](#toc)
However, these non-GAAP financial measures are not prepared in accordance with GAAP, are not based on a standardized methodology, and may not be comparable to similarly titled measures used by other companies. They should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. These measures exclude items that may be significant to an understanding of our financial condition and results of operations under GAAP. The use of non-GAAP financial measures involves judgment by management about which items to exclude or include. Accordingly, these measures have limitations and should be viewed as a supplement to, not a replacement for, our GAAP results. We urge investors to review the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures included in this prospectus and not to rely on any single financial measure to evaluate our business.

***Adjusted EBITDA***

We define adjusted EBITDA, as net income (loss), adjusted to exclude income tax, interest expense, investment income, depreciation and amortization, and stock-based compensation expense. We use Adjusted EBITDA as a key measure of our operating performance and to assess the results of our business excluding certain items that we believe are not indicative of our core operating results. However, Adjusted EBITDA should not be viewed in isolation or as a substitute for Net income (loss) calculated in accordance with GAAP, and other companies may define Adjusted EBITDA differently.

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **In thousands; Unaudited** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **In thousands; Unaudited** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Income (loss) from continuing operations, after taxes | $39614 | $9111 | $26068 | $12901 | $(42014) |
|  Adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 13471 | 3433 | 9168 | (12018) | 3409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  | 3306 | 3329 | 1723 | 882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment income | (1161) | (142) | (548) | (52) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 1416 | 1258 | 2562 | 2189 | 1660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 1429 | 1357 | 3379 | 2927 | 3512 |
|  **Adjusted EBITDA** | $**54769** | $**18323** | $**43958** | $**7670** | $**(32581)** |

---

***Adjusted Revenue***

We define Adjusted Revenue as the portion of total GAAP revenue that is earned through services delivered directly via our proprietary platform technology, without being outsourced to other service providers. This metric excludes revenue associated with services primarily within claims management that we outsource to a subsidiary of HCI. Although this revenue is recognized on a gross basis because we are considered the principal in the transaction, the economics are largely neutral, as the related costs incurred from outsourced service providers closely match the revenue recognized. We believe the Adjusted Revenue provides investors with useful insight into the performance and scalability of our core platform services and helps clarify the underlying revenue contribution from internally delivered operations. This metric also assists management and investors in evaluating period-over-period trends in technology-driven revenue streams, excluding variability associated with outsourced service arrangements. This non-GAAP measure should not be considered in isolation or as a substitute for total revenue or any other performance measure calculated in accordance with GAAP.

------

##### [**Table of Contents**](#toc)
The following table presents the calculation of the Adjusted Revenue for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **In thousands; Unaudited** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **In thousands; Unaudited** | **2025** | **2024** | **2024** | **2 023** | **2022** |
|  Total Revenue | $108498 | $60305 | $133948 | $88333 | $45631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Outsourced claims services | 6086 | 3891 | 13779 | 7700 | 11732 |
|  **Total Adjusted Revenue** | $**102412** | $**56414** | $**120169** | $**80633** | $**33899** |

---

***Adjusted EBITDA Margin***

We define Adjusted EBITDA Margin, as Adjusted EBITDA expressed as a percentage of Adjusted Revenue. This measure provides management and investors with additional insight into our operating efficiency and the scalability of our business model, as it reflects our progress toward long-term profitability.

The following table presents the calculation of Adjusted EBITDA Margin for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
| **In thousands; Unaudited** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Numerator: Adjusted EBITDA | $54769 | $18323 | $43958 | $7670 | $(32581) |
|  Denominator: Adjusted Revenue | 102412 | 56414 | 120169 | 80633 | 33899 |
|  **Adjusted EBITDA Margin** | **53.5%** | **32.5%** | **36.6%** | **9.5%** | **(96.1** **%)** |

---

**Liquidity and Capital Resources** 

***Overview***

As of June 30, 2025, we had cash and cash equivalents of $110.7 million and working capital of $44.5 million. As of December 31, 2024, we had cash and cash equivalents of $54.5 million and working capital of $10.8 million. Prior to the offering, we were primarily funded through intercompany transactions with HCI. Following the offering, we expect to fund our operations primarily through cash flows from operations and, if needed, through access to external financing. We believe our existing cash and cash equivalents, together with expected operating cash flows, will be sufficient to meet our working capital, capital expenditure, and other liquidity requirements for at least the next 12 months.

We have no material long-term contractual obligations outside of standard vendor agreements and lease commitments.

Our primary cash requirements include employee and contractor compensation, cloud hosting and infrastructure costs, and continued investment in product development. At our current performance levels, these needs are expected to be comfortably supported by operating cash flows.

***Sources of Liquidity***

Our capital requirements will depend on many factors, including the volume of issuance of insurance policies, the need to pay claims and operating expenses, investments in information technology systems, and the expansion of sales and marketing activities.

Our principal sources of liquidity currently include our existing cash and cash equivalents and any future cash generated from operations. In the future, we may raise additional funds through the issuance of debt or equity securities or the borrowing of money. We cannot assure that such funds will be available on favorable terms, or at all.

------

##### [**Table of Contents**](#toc)
***Cash Flow Summary***

The following table presents our cash flows from operating activities, investing activities and financing activities from continuing operations for the periods presented:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **In Thousands** | **For the Six Months Ended**<br>**June 30,** | **For the Six Months Ended**<br>**June 30,** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** | **For the Years Ended<br>December 31,** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **In Thousands** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **In Thousands** | **2025** | **2024** | **2024** | **2023** | **2022** |
|  Net cash provided by (used in): |  |  |  |  |  |
|  Operating activities from continuing operations | $57526 | $18227 | $49266 | $10153 | $(13990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investing activities from continuing operations | $(1252) | $(1802) | $(3334) | $(3247) | $(21448) |
|  Financing activities from continuing operations | $— | $(3016) | $(6398) | $(7124) | $12066 |

---

*<u>Operating Activities</u>*

Net cash provided by operating activities for the six months ended June 30, 2025, was $57.5 million, an increase of $39.3 million from $18.2 million net cash provided by operating activities for the six months ended June 30, 2024. The improvement was primarily driven by an increase in operating income from higher managed premiums due to growth within our existing customer base. Additionally, changes in net working capital contributed favorably to operating cash flows, particularly an increase in contract liabilities, which reflects higher upfront cash collections on services provided to an expanded customer base. There was also an increase in accrued liabilities caused by higher bonus expense accrual in 2025. The increase was partially offset by higher contract cost assets, as we incurred greater fulfillment costs to support the higher volume of customer engagements, as well as higher receivables from related parties.

Net cash provided by operating activities for the year ended December 31, 2024, was $49.3 million, an increase of $39.1 million from $10.2 million net cash provided in 2023. The year-over-year improvement was primarily driven by an increase in operating income from higher managed premiums due to growth within our existing customer base and from the absence of a fee waiver program that had reduced revenue in the prior year. Additionally, changes in net working capital contributed favorably to operating cash flows, particularly an increase in contract liabilities, which reflects higher upfront cash collections on services provided to an expanded customer base. We also saw a reduction in income tax receivable, which further improved cash generation from operations. The increase was partially offset by higher contract cost assets, as we incurred greater fulfillment costs to support the higher volume of customer engagements.

Net cash provided by operating activities for the year ended December 31, 2023, was $10.2 million, an increase of $24.2 million from $(14.0) million net cash used in 2022. The increase was primarily attributable to higher operating income, which reflected a meaningful reduction in the fee waiver arrangements in 2023 that had significantly suppressed revenue and earnings in the prior year. This improvement in operating performance was partially offset by unfavorable working capital movements, particularly a decrease in contract liabilities year-over-year. In 2022, we had experienced elevated contract liabilities due to substantial collections in advance of services, driven by heightened customer activity related to Hurricane Ian. From a tax perspective, deferred tax activity also influenced operating cash flows. In 2023, we released a valuation allowance on deferred tax assets, reversing a full valuation allowance that had been established in 2022. While this release improved book income, it reduced deferred tax liabilities and, as a result, contributed to a reduction in operating cash flows in the period.

*<u>Investing Activities</u>*

Net cash used in investing activities for the six months ended June 30, 2025 was $(1.3) million, relatively consistent from $(1.8) million net cash used for the six months ended June 30, 2024. The cash outflows in both periods primarily reflect capital expenditures related to ongoing investments in software development and infrastructure, consistent with our strategy to support and enhance core operations. A portion of this expenditure also relates to property and equipment, representing typical maintenance-level investments in the ordinary course of business.

------

##### [**Table of Contents**](#toc)
Net cash used in investing activities for the year ended December 31, 2024 was $(3.3) million, relatively consistent from $(3.2) million net cash used in 2023. The cash outflows in both periods primarily reflect capital expenditures related to ongoing investments in software development and infrastructure, consistent with our strategy to support and enhance core operations. A portion of this expenditure also relates to property and equipment, representing typical maintenance-level investments in the ordinary course of business.

Net cash used in investing activities for the year ended December 31, 2023 was $(3.2) million, an increase of $18.2 million from $(21.4) million net cash used in 2022. The higher cash outflows in 2022 were primarily driven by an $18.0 million capital contribution to TTIC. This contribution reflected our then-planned expansion of TTIC's operations and was consistent with our capital allocation priorities at the time. In contrast, investing activities in 2023 were limited to routine capital expenditures, primarily related to software development and infrastructure, as well as a smaller portion attributable to property and equipment investments made in the ordinary course of business.

*<u>Financing Activities</u>*

There was no cash used in financing activities for the six months ended June 30, 2025, compared to $(3.0) million net cash used in financing activities for the six months ended June 30, 2024. For the six months ended June 30, 2025, Exzeo did not issue new debt or equity due to its strong financial position during the period. Exzeo continued to meet its preferred stock dividend obligations, with payments made during 2024.

Net cash used in financing activities for the year ended December 31, 2024, was $(6.4) million, a decrease of $0.7 million from $(7.1) million net cash used in 2023. While the period included two significant capital structure transactions, the issuance of $100.0 million in redeemable preferred stock and the subsequent redemption of those proceeds through the issuance of notes payable to HCI were cash-neutral in aggregate.

The year-over-year decrease in financing outflows was primarily driven by lower dividend payments to the preferred shareholder, as a result of the redemption partially offset by higher repayments of debt to HCI.

Net cash used in financing activities for the year ended December 31, 2023, was $(7.1) million, a decrease of $(19.2) million from $12.1 million net cash provided in 2022. Net cash used in 2023 was primarily attributable to the absence of $18.0 million in proceeds from the issuance of notes payable to HCI, which had been a significant source of cash in 2022 to fund the growth of TTIC. Cash outflows in both periods included relatively stable amounts of dividends paid to redeemable preferred shareholders and the repurchase of common stock.

**Off-Balance Sheet Arrangements** 

We do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition, results of operations, or cash flows.

**Contractual Obligations and Commitments** 

Our estimated future obligations consist of leases and taxes as of June 30, 2025. Refer to "Note 8 – Leases," "Note 10 – Income Taxes" and "Note 15 – Commitments and Contingencies" in the notes to our consolidated financial statements included in this prospectus for more information.

**Quantitative and Qualitative Disclosures about Market Risk** 

Our cash is held in deposit demand accounts at a large financial institution in amounts in excess of the Federal Deposit Insurance Corporation, or FDIC, insurance coverage limit of $250,000 per depositor, per FDIC-insured bank, per ownership category. Management has reviewed the financial statements of this institution and believe it has sufficient assets and liquidity to conduct its operations in the ordinary course of business with little or no credit risk to us.

------

##### [**Table of Contents**](#toc)
Financial arrangements that potentially subject us to concentrations of credit risk principally consist of accounts receivable and notes receivable. We limit our credit risk with respect to accounts receivable and notes receivable by performing credit evaluations when deemed necessary, but we do not require collateral to secure amounts owed to us by our customers. To date, we have not been exposed, nor do we anticipate being exposed, to material risks due to changes in interest rates. A hypothetical 10% change in interest rates during any of the periods presented would not have had a material impact on our consolidated financial statements.

Inflationary factors, such as increases in our costs of revenues and operating expenses, may adversely affect our operating results. Although we do not believe inflation has had a material impact on our financial condition, results of operations or cash flows to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain and increase our gross margin or decrease our operating expenses as a percentage of our revenues if our selling prices of our products do not increase as much or more than our increase in costs.

We currently have very infrequent and limited exposure to foreign currency fluctuations, including with respect to our India subsidiary, and do not engage in any hedging activities as part of our normal course of business.

**Critical Accounting Policies and Estimates** 

The preparation of our consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. These estimates are inherently uncertain and require significant judgment, particularly in areas that involve complex or subjective assumptions and often involve matters that are inherently unpredictable.

We regularly evaluate these estimates based on historical experience, current business conditions, and other relevant factors, including inputs from third-party specialists where applicable. Our estimates are subject to change as new events occur, additional information becomes available, or operating environments evolve. Actual results could differ materially from those estimates, and such differences may have a material impact on our financial condition or results of operations.

We believe the following accounting policies involve significant judgments and estimates that are critical to understanding our financial condition and results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue Recognition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stock-Based Compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Income Taxes.

These estimates are discussed further in "Note 2 – Summary of Significant Accounting Policies" in the notes to our audited consolidated financial statements included in this prospectus.

***Revenue Recognition***

We recognize revenue from contracts with customers in accordance with ASC 606. We determined the appropriate amount of revenue to be recognized using the following steps: (i) identification of contracts with customers, (ii) identification of the performance obligations in the contract, (iii) determination of transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) recognition of revenue when or as a performance obligation is satisfied. Our revenue is primarily usage-based, derived from fees charged as a percentage of premiums written by our insurance company customers. Revenues are recognized when control of these services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services.

While contracts typically span longer durations, many contain early cancellation provisions without penalty, which limits the non-cancellable term for accounting purposes. As a result, we constrain variable consideration to

------

##### [**Table of Contents**](#toc)
amounts that are not probable of significant reversal. This constraint requires significant management judgment and estimation, particularly in forecasting policy volume and customer behavior. Key assumptions include historical averages, seasonality, and expected retention of our customers' underlying insurance policies. Given the inherent volatility in premiums written, we reassess these assumptions and the related constraint on a quarterly basis to reflect the latest available data.

We allocate transaction prices to performance obligations based on their standalone selling prices. For most obligations, we estimate standalone selling prices using an expected cost-plus-margin approach, which requires management judgment around forecasted fulfillment costs and appropriate market-based margins. Changes in these estimates, especially in usage patterns or policy cancellations, could materially impact the amount and timing of revenue recognized.

***Stock-Based Compensation***

We account for stock-based compensation awards under our shareholder-approved incentive plans in accordance with the fair value recognition provisions of GAAP, which require the measurement, and recognition of compensation for all stock-based awards made to employees and non-employee directors including stock options and restricted stock based on estimated fair values. Our stock-based awards primarily consist of restricted stock units and stock options granted in prior years. Restricted stock units are granted with either time-based vesting conditions or market conditions tied to our stock price (e.g., share price thresholds sustained over a defined period). These awards are expensed over the requisite service period based on grant-date fair value. For RSUs with market conditions, the grant-date fair value incorporates the probability of achieving the market condition, but does not change after the grant.

For stock options, we determine grant-date fair value using a Monte Carlo simulation technique and other option pricing models. This method estimates the fair value of the option by modeling a range of potential future stock prices and associated outcomes, and relies on assumptions such as expected volatility, risk-free interest rates, expected term, and dividend yield. These assumptions require significant judgment and can materially impact recognized compensation expense.

For awards granted while we were a private company, we determined the fair value of our common stock using third-party valuations under IRC Section 409A. These valuations incorporated assumptions regarding future performance, market conditions, and comparable company data. Inputs such as an estimated stock price and expected price volatility used in these valuation methods are derived mathematically from a data analysis of many public peer companies with similar characteristics. As we transition to being a public company, future valuations will be based on market prices, which may reduce estimation uncertainty.

***Income Taxes***

We account for income taxes in accordance with GAAP, resulting in two components of income tax expense (benefit): current and deferred. Current income tax expense (benefit) reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues.

The realizability of deferred tax assets is evaluated quarterly, and judgment is required in assessing both positive and negative evidence, including recent financial performance, forecasted future earnings, and relevant tax planning strategies.

Additionally, as a member of a consolidated U.S. federal income tax return with HCI, we are subject to the group's tax-sharing arrangements. Our estimate of tax expense is sensitive to changes in the effective rate applied to our standalone results, which may differ from statutory rates due to business mix or transaction-related effects.

------

##### [**Table of Contents**](#toc)
**JOBS Act** 

We are an emerging growth company under the JOBS Act. As an emerging growth company, we may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to not take advantage of the extended transition period that allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies, which means that the financial statements included in this prospectus, as well as financial statements we file in the future, will be subject to all new or revised accounting standards generally applicable to public companies. Our election not to take advantage of the extended transition period is irrevocable.

We will remain an emerging growth company until the earliest to occur of the following: (i) the last day of the fiscal year in which our total annual gross revenues first meet or exceed at least $1.235 billion (as adjusted for inflation), (ii) the date on which we have, during the prior three-year period, issued more than $1.0 billion in non-convertible debt, (iii) the last day of the fiscal year in which we (a) have an aggregate worldwide market value of common stock held by non-affiliates of $700 million or more (measured at the end of each fiscal year) as of the last business day of our most recently completed second fiscal quarter and (b) have been a reporting company under the Exchange Act for at least one year (and have filed at least one annual report under the Exchange Act), or (iv) the last day of the fiscal year following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration statement under the Securities Act.

------

##### [**Table of Contents**](#toc)
**MANAGEMENT** 

**Executive Officers and Directors** 

The following table sets forth information about our executive officers and directors, including their ages as of September 24, 2025. With respect to our directors, each biography includes information regarding the experience, qualifications, attributes, or skills that caused our board of directors to determine that such person should serve as a director of our company. Our Chief Executive Officer and Chairman of our board of directors, Paresh Patel, also currently serves as Chairman and Chief Executive Officer of HCI, our parent company. None of our other executive officers, directors or employees concurrently is an executive officer or director of, or is otherwise employed by, HCI.

---

| | |
|:---|:---|
| **Name** | **Age Position** |
| Paresh Patel | 62 Chief Executive Officer, Chairman of the Board |
| Kevin Mitchell | 46 President and Director |
| Suela Bulku | 45 Chief Financial Officer |
| Brook Baker | 39 General Counsel |
| Irene Hurst<sup>(1)</sup> | 66 Director |
| Robert A. Lopes, Jr.<sup>(2)(3)</sup> | 61 Director |
| James Macchiarola<sup>(1)(2)(3)</sup> | 76 Director |
| Loreen Spencer<sup>(2)(3)</sup> | 59 Director |

---

(1) Member of the Nominating and Corporate Governance Committee.

(2) Member of the Audit Committee.

(3) Member of the Compensation Committee.

**Executive Officers** 

***Paresh Patel*** has served as our Chief Executive Officer and Chairman of our board of directors since the company's inception in July 2020 and also served as our President from July 2020 to December 2024. Mr. Patel also currently serves as Chairman and Chief Executive Officer of HCI, our parent company. Mr. Patel has been a director of HCI since its inception and has served as the Chairman of the HCI board of directors since May 2007. Mr. Patel has served as Chief Executive Officer of HCI since 2011. From 2015 to 2019, Mr. Patel served as President of HCI's insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., a position he also held from 2011 to 2012. Mr. Patel has broad experience in technology and finance and developed HCI's policy administration systems. From 2011 to 2015, Mr. Patel served as Chairman of the Board of First Home Bancorp, Inc., a bank holding company in Seminole, Florida, and from 2014 to December 2017, he served as Chairman of the Board of Directors of Oxbridge Re Holdings Limited, a Nasdaq-listed Cayman Islands reinsurance holding company. He was a founder of NorthStar Bank in Tampa, Florida and from 2006 to 2010 served on the board of directors of its parent company, NorthStar Banking Corporation. From 1998 to 2000, Mr. Patel was Director of Customer Care and Billing with Global Crossing. In that position, Mr. Patel defined business processes and systems, hired and trained department staff and led the integration of the customer care and billing systems with the systems of companies that Global Crossing acquired. As an independent software and systems consultant from 1991 to 1998, Mr. Patel worked with large international telephone companies. Mr. Patel holds a Bachelor's and a Master's degree in Electronic Engineering from the University of Cambridge in the United Kingdom.

Mr. Patel brings to our board of directors considerable experience in business, insurance, management, systems and technology, and because of those experiences and his education, he possesses knowledge and analytical and technology skills that are important to the operations of our company, the oversight of its performance and the evaluation of its future growth opportunities. Furthermore, his tenure as our Chief Executive Officer has provided an in-depth understanding of our insurance solutions business. Mr. Patel is a founder of Exzeo and has a substantial personal investment in the company.

------

##### [**Table of Contents**](#toc)
***Kevin Mitchell*** has served as our President since December 2024, as a member of our board of directors since February 2021 and as President of TypTap Insurance Company from October 2019 until March 2025. Mr. Mitchell previously served as our Executive Vice President from March 2021 to December 2024 and as a Senior Vice President of HCI from 2016 to October 2019, during which time he managed HCI's investor relations and reinsurance placement and sales and marketing. Prior to joining HCI, Mr. Mitchell was employed by Arthur J. Gallagher & Co., a global insurance brokerage and consulting firm, for five years from October 2008 to September 2013, where he served in various capacities, including as Area Director and serving as Producer prior to that. Prior to being with Arthur J. Gallagher & Co., Mr. Mitchell was a Producer with Oswald Companies, an insurance brokerage firm, where he sold commercial lines. Mr. Mitchell is a 2001 graduate from Bowling Green State University, having earned a Bachelor of Science degree in Communication and a minor in Marketing.

We believe that Mr. Mitchell's industry expertise, leadership experience, and strategic insight make him a valuable member of our board of directors.

**Suela Bulku** has served as our Chief Financial Officer since December 2024. She served as our Senior Financial Officer and Controller from February 2021 until December 2024. Prior to joining Exzeo, Ms. Bulku served as the controller of the Property & Casualty Division of HCI from June 2014 until February 2021. Prior to her position as controller of the Property & Casualty Division of HCI, Ms. Bulku served as manager of statutory reporting of HCI from September 2011 until June 2014. From December 2005 to September 2011, Ms. Bulku served in various financial roles at United Insurance Holdings Corp. Ms. Bulku holds a Bachelor of Science degree in Finance and Economics as well as a Master of Business Administration in Finance and Management from the University of South Florida.

**Brook Baker** has served as our General Counsel since February 2021. Prior to joining Exzeo, Mr. Baker served as corporate counsel for HCI from April 2015 until February 2021. Prior to HCI, Mr. Baker served in various legal roles, with a practice focused on intellectual property and commercial litigation. Mr. Baker earned a Juris Doctor degree from the University of Florida Levin College of Law and earned a Bachelor of Science in Physics at the University of Florida.

**Non-Employee Directors** 

***Irene Hurst***, ****66, has served as a member of our board of directors since March 2021. Ms. Hurst currently serves as the Director of Operations for the Center of Analytics and Creativity at the University of South Florida (USF), a position she has held since January 2021, where she manages the Citizen Data Science Certificate program from the Muma College of Business and certificate programs in leadership and data science for healthcare providers. Prior to that, Ms. Hurst served for ten years as the Director for MBA and Executive MBA programs in the USF Muma College of Business. Under her direction, the USF MBA program reached its first ranking in Business Week's Best MBA national ranking. She previously served for more than eleven years as the director of USF's Small Business Development Center. In addition to managing federal, state, municipal, and private grants while at the Small Business Development Center, Ms. Hurst counseled thousands of small business owners in financing, getting certified as minority-owned businesses, getting contracts from NFL during Superbowl, buying and selling their businesses, and other aspects of their business operations. Ms. Hurst earned an MBA from the University of South Florida and a Bachelor's degree in Psychology from the University of Indonesia.

We believe that Ms. Hurst is qualified to serve as a member of our board of directors because of her extensive experience in the field of business education, leadership development, and data science.

***Robert A. Lopes, Jr.***, ****61, has served as a member of our board of directors since March 2021. Since March 2025, Mr. Lopes has served on the board of directors and as a member of the audit committee and nominating and corporate governance committee for Alight, Inc. (NYSE: ALIT). Mr. Lopes also currently serves on the board of directors of Wilson, a human resources company, a position he has held since November 2024. Mr. Lopes served

------

##### [**Table of Contents**](#toc)
as the Chief Human Resources Officer of Randstad North America from 2020 until his retirement in 2024, where he led Randstad North America's internal human resources practice and oversaw all aspects of human capital, including recruitment, talent management, employee engagement, and organizational development. Randstad North America is a wholly-owned subsidiary of Randstad N.V., a global provider of flexible work and human resources services. Prior to October 2020, Mr. Lopes served as North American group president at Randstad Sourceright, a Randstad sister company, for six years. Mr. Lopes has more than 35 years of global experience leading private, mid-stage and public technology and services businesses in outsourcing, consulting and HR-related services, including serving as Chief Executive Officer at Acclaris, a healthcare technology company acquired by Willis Towers Watson in 2015, and serving as Chief Executive Officer of Veritude, a Fidelity Capital Company. Mr. Lopes earned a degree in Business from the University of Notre Dame.

We believe that Mr. Lopes is qualified to serve as a member of our board of directors because of his extensive experience in human capital management and development.

***James Macchiarola***, ****76, has served as a member of our board of directors since July 2020. From 1999 until his retirement in 2015, Mr. Macchiarola served in various positions for the Clearwater, Florida office of Orange Business Services (formerly Equant), a global information technology and communications services provider and subsidiary of Orange S.A. (formerly France Telecom S.A.). From 2009 to 2015, he served as its Vice President and Head of North American Equipment Resales and Integration Services. From 2007 to 2009, he was that company's Area Sales Vice President for the U.S. East Coast and Canada. From 2003 to 2007, he was Head of its Integration Services Sales. From 2002 to 2003, he served as Head of Service Operations for the Americas. From 1999 to 2003, he served as Head of Managed Services. From 1994 to 1999, Mr. Macchiarola served as Chief Operating Officer for Techforce, a U.S.-based systems integrator. Before that, he also held various positions for Racal Datacom and Syncordia (1990 to 1994), AT&T Paradyne (1984 to 1990) and IBM Corp. (1969 to 1984). Mr. Macchiarola served as a director of HCI from November 2013 until February 26, 2021.

We believe that Mr. Macchiarola is qualified to serve as a member of our board of directors because of his extensive corporate leadership, marketing and systems experience.

***Loreen Spencer***, ****59, has served as a member of our board of directors since February 2021. Ms. Spencer is a Certified Public Accountant, and from 1987 until her retirement in 2016, she was an Audit Partner for Deloitte & Touche LLP, where her audit clients included Florida-based insurance companies. Since 2024, Ms. Spencer has served on the board of directors and as the audit committee chairperson and on the capital committee for the Superior Group of Companies, Inc. (NASDAQ: SGC). Since 2017, Ms. Spencer has served on the board of directors and the audit & risk committee of Raymond James Bank, a St. Petersburg-based banking subsidiary of Raymond James Financial, Inc., which is a New York Stock Exchange-listed financial services company. Ms. Spencer is a founding board member and since 2002 has been Board Chair of the Gift of Adoption Florida Chapter. In 2015, she was recognized by the U.S. Congress as a Congressional Coalition on Adoption Institute "Angel in Adoption." Also in 2015, she was recognized by the Tampa Lightning Foundation as a Tampa Bay Lightning Community Hero. Ms. Spencer served as a director on the HCI board of directors from April 2019 until February 2021. From 1998 to 2016, she served on the Goodwill Industries Suncoast Inc. board of directors (two years as Chair), from 2011 to 2016 served on the St. John's Episcopal Parish Day School Board of Trustees, and from 2000 to 2014 served on the University of Florida Fisher School of Accounting Advisory Board. She earned both her Bachelor of Science, with a major in Accounting, and a Master of Accounting from the University of Florida.

We believe that Ms. Spencer is qualified to serve as a member of our board of directors because of her considerable business, accounting and financial experience.

**Board Composition** 

Upon completion of this offering, our board of directors will be divided into three classes serving staggered three-year terms. Class A, Class B, and Class C directors will serve until our annual meetings of shareholders in

------

##### [**Table of Contents**](#toc)
2026, 2027, and 2028, respectively. Our board of directors currently consists of six members. The Class A directors will consist of Paresh Patel and Irene Hurst. The Class B directors will consist of Robert Lopes and Kevin Mitchell. The Class C directors will consist of James Macchiarola and Loreen Spencer. At each annual meeting of shareholders, directors will be elected to succeed the class of directors whose terms have expired. This classification of our board of directors could have the effect of increasing the length of time necessary to change the composition of a majority of the board. In general, it will take at least two annual meetings of shareholders to effect a change in a majority of the members of our board of directors.

No director or executive officer is related to any other director or executive officer (or to any director or executive officer of any of our subsidiaries) by blood, marriage, or adoption. There are no arrangements or understandings between any of our directors or executive officers or any other person pursuant to which that director or executive officer was elected as a director of our company or any of our subsidiaries. None of our directors or executive officers is party to, or has any material interests in, any material legal proceedings that are adverse to us or our subsidiaries.

**Board Leadership Structure** 

We do not have a policy regarding whether the role of the Chairman of the Board and Chief Executive Officer should be separate or combined and believe that we should maintain the flexibility to select the Chairman and Chief Executive Officer and reorganize the leadership structure, from time to time, based on criteria that are in our best interests and the best interests of our shareholders at such times. Currently, Paresh Patel is the Chairman of the Board and Chief Executive Officer. We believe that Mr. Patel's familiarity with our company and extensive knowledge of our industry qualify him to serve as the Chairman of our board of directors. Our board of directors has concluded that our current leadership structure is appropriate at this time. However, our board of directors will continue to periodically review our leadership structure and may make such changes in the future as it deems appropriate.

**Committees of the Board of Directors** 

Our board of directors has the following committees: an audit committee, a compensation committee and a nominating and corporate governance committee. The composition and functions of these committees are described below. Members serve on these committees until their resignation or until otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

We believe we are eligible for, but do not intend to take advantage of, the "controlled company" exemptions to the corporate governance rules for NYSE-listed companies.

***Audit Committee***

The members of the audit committee are Ms. Spencer (committee chair), Mr. Lopes and Mr. Macchiarola, each of whom meets the requirements for independence under the listing standards of the NYSE and SEC rules and regulations, including Rule 10A-3(b)(1) under the Exchange Act. Each member of our audit committee also meets the financial literacy requirements of the listing standards of the NYSE. In addition, our board of directors has determined that Ms. Spencer is an audit committee financial expert within the meaning of Item 407(d) of Regulation S-K under the Securities Act.

The audit committee's main purpose is to oversee our corporate accounting and financial reporting process. Our audit committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting a qualified firm to serve as the independent registered public accounting firm to audit our
financial statements;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• helping to ensure the independence and performance of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing the scope and results of the audit with the independent registered public accounting firm, and
reviewing, with management and the independent registered public accounting firm, our interim and year-end results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing procedures for employees to submit concerns anonymously about questionable accounting or audit
matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing our policies on risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing related party transactions, including transactions, contracts, and contract amendments with HCI
and its other subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and pre-approving, as required, all audit and all
permissible non-audit services to be performed by the independent registered public accounting firm; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assisting our board of directors in monitoring the performance of our internal audit function.

Our audit committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing standards of the NYSE, a copy of which will be available on our website at *www.exzeo.com*.

***Compensation Committee***

The members of the compensation committee are Mr. Lopes (committee chair), Mr. Macchiarola and Ms. Spencer, each of whom meets the requirements for independence under the listing standards of the NYSE and SEC rules and regulations. Each member of our compensation committee is also a non-employee director, as defined pursuant to Rule 16b-3 promulgated under the Exchange Act. In arriving at these determinations, our board of directors has examined all factors relevant to determining whether any compensation committee member has a relationship to us that is material to that member's ability to be independent from management in connection with carrying out such member's duties as a compensation committee member.

The compensation committee's main purpose is to review and recommend policies relating to compensation and benefits of our officers and employees. Our compensation committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing, approving, and determining, or making recommendations to our board of directors regarding, the
compensation and compensation arrangements of our executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• administering our equity compensation plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving, or making recommendations to our board of directors regarding, incentive
compensation and equity compensation plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and reviewing general policies relating to compensation and benefits of our employees.

Our compensation committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing standards of the NYSE, a copy of which will be available on our website.

***Nominating and Corporate Governance Committee***

The members of the nominating and corporate governance committee are Mr. Macchiarola (committee chair), and Ms. Hurst, each of whom is an independent director for purpose of service on the nominating and corporate governance committee under the listing standards of the NYSE and SEC rules and regulations.

Our nominating and corporate governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifying, evaluating, and selecting, or making recommendations to our board of directors regarding, nominees
for election to our board of directors and its committees;

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing and overseeing the annual evaluation of our board of directors and of its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• considering and making recommendations to our board of directors regarding the composition of our board of
directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our corporate governance practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making recommendations to our board of directors regarding corporate governance guidelines.

Our nominating and corporate governance committee operates under a written charter that satisfies the applicable listing standards of the NYSE, a copy of which will be available on our website.

**Compensation Committee Interlocks and Insider Participation** 

During fiscal year 2024, the compensation committee was composed of Robert Lopes, James Macchiarola and Loreen Spencer. During the fiscal year ended December 31, 2024, there were no insider participations or compensation committee interlocks among the members of the compensation committee of our company. At all times during fiscal year 2024, the compensation committee was comprised solely of independent, non-employee directors.

**Risk Oversight** 

One of the key functions of our board of directors is informed oversight of our risk management process. Our board of directors administers this oversight function directly through our board of directors as a whole, and through various standing committees of our board of directors that address risks inherent in their respective areas of oversight. In particular, our board of directors is responsible for monitoring and assessing strategic risk exposure, including risks associated with cybersecurity and data protection, and our audit committee has the responsibility to consider our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies to govern the process by which risk assessment and management is undertaken. Our audit committee reviews legal, regulatory, and compliance matters that could have a significant impact on our financial statements. Our audit committee will also be responsible for reviewing risks relating to our relationship with and majority ownership by HCI, including risks relating to our commercial agreements with HCI and its subsidiaries and actual and potential conflicts of interest and exposure to HCI's financial condition and strategic priorities. Our nominating and corporate governance committee monitors the effectiveness of our corporate governance practices, including whether they are successful in preventing illegal or improper liability-creating conduct. Our compensation committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage excessive risk taking. While each committee is responsible for evaluating certain risks and overseeing the management of such risks, our entire board of directors will be regularly informed through committee reports about such risks.

**Code of Business Conduct and Ethics** 

Prior to the completion of this offering, our board will adopt a code of business conduct and ethics applicable to all of our directors, officers (including our principal executive officer, principal financial officer, and principal accounting officer) and all employees in accordance with applicable federal securities laws and corporate governance rules of the NYSE. Our code of business conduct and ethics will be available on our website. We intend to disclose future amendments to our code of business conduct and ethics, or any waivers of such code, on our website or in public filings, if required.

**Clawback Incentive Policy** 

On or prior to the completion of this offering, we intend to adopt a clawback policy to recover certain incentive compensation from certain executive officers of Exzeo in accordance with the final clawback rules and regulations adopted by the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the NYSE.

------

##### [**Table of Contents**](#toc)
**Director Compensation** 

The table below summarizes the compensation paid by Exzeo to non-employee directors or earned by the non-employee directors for the fiscal year ended December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| **Name<sup>(1)</sup>** | **Fees Earned<br>or Paid in<br>Cash** | **Stock<br>Awards<sup>(2)</sup>** | **Total** |
|  Irene Hurst | $50000 | $288000 | $338000 |
|  Robert Lopes | $50000 | $288000 | $338000 |
|  James Macchiarola | $50000 | $288000 | $338000 |
|  Loreen Spencer | $50000 | $288000 | $338000 |
|  Sam Rappaport |  |  |  |
|  Steve Shafran | $50000 |  | $50000 |

---

(1) Paresh Patel, our Chief Executive Officer, and Kevin Mitchell, our President, are not included in this table
because they are employees and thus receive no compensation for their services as directors. The compensation received by Messrs. Patel and Mitchell as employees is shown in the Summary Compensation Table below. Mr. Rappaport resigned in
December 2024 and will not serve on our board of directors following this offering. Mr. Shafran resigned in January 2025 and will not serve on our board of directors following this offering.

(2) In accordance with SEC reporting requirements, the amounts reported in this column represent the grant-date
fair value of the entire award and were calculated utilizing the fair value recognition provisions of Accounting Standards Codification Topic 718 – "Compensation – Stock Compensation," which requires the measurement and
recognition of compensation for all stock-based awards made to employees and directors, including stock options and restricted stock issuances, based on estimated fair values. The assumptions used in calculating this amount are discussed in Note 16
to our consolidated financial statements included herein. The stock awards in this column are restricted stock grants which include only service conditions. The amounts reported in this column are based on the market value of the Company's
stock on the grant date. On December 18, 2024, each of the non-employee directors received a restricted stock grant of 96,000 shares. The restricted stock awards vest in six equal annual installments of 16,000 shares each, beginning on the
first anniversary of the grant date, subject to the non-employee director's continued service on our board of directors on the vesting date.

We have reimbursed, and will continue to reimburse, our non-employee directors for their actual out-of-pocket costs and expenses incurred in connection with attending meetings of our board of directors. Our board of directors or its authorized committee may modify the non-employee director compensation program from time to time in the exercise of its business judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, subject to the annual limit on non-employee director compensation, if any, set forth in any incentive plan of ours then in effect.

None of our directors received any director compensation from HCI for the fiscal year ended December 31, 2024, as none of our directors were non-employee directors of HCI during the fiscal year ended December 31, 2024.

------

##### [**Table of Contents**](#toc)
**EXECUTIVE COMPENSATION** 

We are considered an "emerging growth company" within the meaning of the JOBS Act and have opted to comply with the executive compensation disclosure rules applicable to such companies. These rules provide for reduced compensation disclosure for the principal executive officer and the two most highly compensated executive officers other than the principal executive officer (the "named executive officers"). The compensation provided to our named executive officers for the fiscal years ended December 31, 2024 and December 31, 2023 is detailed in the Summary Compensation Table and accompanying footnotes and narrative that follow.

**Our Named Executive Officers** 

In 2024, our named executive officers and their positions were as follows:

---

| | |
|:---|:---|
| Name | Title |
| Paresh Patel | Chief Executive Officer |
| Kevin Mitchell | President |
| Suela Bulku | Chief Financial Officer |

---

**Summary Compensation Table** 

The following table sets forth information concerning the compensation paid to our principal executive officer and our two other most highly compensated executive officers during our fiscal years ended December 31, 2024 and 2023.

SEC rules require us to report stock awards at the grant-date fair value of the entire award in the year of the grant rather than reporting this expense over the service period as we do for financial reporting purposes. Fair value of stock and option awards is estimated in accordance with Accounting Standards Codification (ASC) Topic 718 Compensation—Stock Compensation. Hence, in the table below, each amount appearing under Stock Awards and Option Awards is an estimate of the award's fair value at the grant date, regardless of whether vesting has occurred. Stock and option awards included in the summary compensation below may contain service-only or market-based vesting conditions. The fair value of awards with service-only vesting conditions is based on the value of the company's stock on the grant date. The fair value of awards with market-based vesting conditions requires the use of a Monte Carlo simulation model and the assistance of a third-party valuation specialist to estimate the fair value. This method estimates the fair value of the award by modeling a range of potential future stock prices and associated outcomes, and relies on assumptions such as expected volatility, risk-free interest rates, expected term, and dividend yield. These assumptions require significant judgment and can materially impact recognized compensation expense. The actual values on the vesting date will almost certainly differ from the estimated values.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name & Principal Position | Year | Salary<br>($) | Bonus<sup>(1)</sup><br>($) | Stock<br>Awards<sup>(2)</sup><br>($) | Option<br>Awards<sup>(2)</sup><br>($) | All Other<br>Compensation<br>($) | Total<br>($) |
|  Paresh Patel<sup>(3)</sup>  | 2024 | $475000 |  |  |  |  | $475000 |
|  Chief Executive Officer | 2023 | $475000 |  |  |  |  | $475000 |
|  Kevin Mitchell | 2024 | $439384 | $250000 | $450000 |  | $13800<sup>(4)</sup> | $1153184 |
|  President | 2023 | $425000 | $400000 |  |  | $10600<sup>(4)</sup> | $835600 |
|  Suela Bulku | 2024 | $258462 | $200000 | $288000 |  | $9938<sup>(4)</sup> | $756400 |
|  Chief Financial Officer | 2023 | $250000 | $250000 |  |  | $10000<sup>(4)</sup> | $510000 |

---

<sup>(1)</sup> Represents amounts earned for 2024 under our annual executive bonus program, as described below. 

<sup>(2)</sup> See Note 16 "Stock-Based Compensation" in the notes to our audited consolidated financial statements included herein for the year ended December 31, 2024, for a description of the assumptions used in valuing these awards.

------

##### [**Table of Contents**](#toc)
<sup>(3)</sup> The compensation reported for Mr. Patel includes only amounts paid by Exzeo for his services as Chief Executive Officer and does not include amounts paid to him by HCI for his services as Chief Executive Officer of HCI. 

<sup>(4)</sup> Represents contributions made by Exzeo to the account of the named executive officer under HCI's 401(k) Plan.

**Narrative Disclosure to Summary Compensation Table** 

*Annual Base Salary*

We pay our named executive officers a base salary to compensate them for the satisfactory performance of services rendered to us. The base salary payable to each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role and responsibilities. Base salaries for our named executive officers have generally been set at levels deemed necessary to attract and retain individuals with superior talent.

Mr. Patel's annual base salary paid by Exzeo was $475,000 for each of 2023 and 2024. Mr. Mitchell's salary was increased to $442,000 in February 2024, which resulted in an effective salary of $439,384 being paid to Mr. Mitchell in 2024. Ms. Bulku's annual base salary for 2023 was $250,000. Ms. Bulku's salary was increased to $300,000 in December of 2024, which resulted in an effective salary of $258,462 being paid to Ms. Bulku in 2024.

*2024 Annual Bonuses* 

We maintain an annual executive bonus program designed to reward our executive officers for individual contributions toward achieving our company's strategic and operational goals. A key objective of the program is to align executive compensation with our company's performance by making a meaningful portion of each executive officer's total compensation subject to our company's financial and operational results.

Our board of directors, with input from our Chief Executive Officer regarding the performance of other executive officers, exercises discretion in determining actual bonus awards. In making these determinations, our board of directors considers our company's overall performance as well as its assessment of each executive officer's individual contributions during the fiscal year.

The bonus amounts awarded to our named executive officers for the fiscal year ended December 31, 2024, are set forth in the Summary Compensation Table above. The bonuses awarded to Mr. Mitchell and Ms. Bulku were approved by the compensation committee of our board of directors and paid by us.

*Long-Term Incentive Program* 

We use restricted stock grants as the primary means of delivering long-term compensation to our executive officers. Shares of restricted stock are shares of our common stock that are forfeitable until the lapse of the applicable restrictions. We believe that restricted stock grants with multi-year vesting periods align the interests of executive officers and shareholders and provide strong incentives to our executive officers to achieve long-term growth in our business and grow the value of our common stock.

Our board of directors determines the restrictions for each award granted pursuant to our 2021 Omnibus Plan. Restrictions on the restricted stock may include time-based restrictions, the achievement of specific performance goals or the occurrence of a specific event. Vesting of restricted stock will generally be subject to annual vesting periods of four to six years and will be conditioned upon the participant's continued employment, among other restrictions that may apply. If the performance goals are not achieved or the time-based restrictions do not lapse within the period provided in the award agreement, the participant will forfeit his or her restricted stock. For additional information about these awards, please see the sections entitled "—Outstanding Equity Awards at Fiscal Year End" and "—Equity Compensation Plans" below.

------

##### [**Table of Contents**](#toc)
*Perquisites, Health, Welfare and Retirement Benefits* 

Our named executive officers are eligible to participate in our employee benefit plans, including our medical, dental, vision, group life, disability and accidental death and dismemberment insurance plans, in each case, generally on the same basis as all of our other employees. We provide a 401(k) plan to our employees, including our current named executive officers, as discussed in the section below entitled "401(k) Plan." We generally do not provide perquisites or personal benefits to our named executive officers, except in limited circumstances. Our board of directors may elect to adopt qualified or non-qualified benefit plans in the future if it determines that doing so is in our best interests.

*401(k) Plan* 

Our employees participate in a defined contribution employee retirement plan, or 401(k) plan, maintained by HCI. Our named executive officers are eligible to participate in the 401(k) plan on the same basis as other eligible employees. We make contributions on behalf of Mr. Mitchell and Ms. Bulku under the 401(k) Plan maintained by HCI. HCI has made contributions on behalf of Mr. Patel under the 401(k) Plan maintained by HCI. The 401(k) plan is intended to qualify as a tax-qualified plan under Section 401(k) of the Code. The 401(k) plan provides that each participant may make pre-tax deferrals from his or her compensation up to the statutory limit, which is $23,500 for calendar year 2025, and other testing limits. Participants that are 50 years or older can also make "catch-up" contributions, which in calendar year 2025 may be up to an additional $7,500 above the statutory limit. For those aged 60-63, the catch-up contribution limit increases to $11,250. We provide a matching contribution limited to a maximum of four percent of the employee's annual salary or wage, which is 100% vested. Participant contributions are held and invested, pursuant to the participant's instructions, by the plan's trustee. We believe that providing a vehicle for tax-deferred retirement savings through our 401(k) plan adds to the overall desirability of our executive compensation package and further incentivizes our employees, including our named executive officers, in accordance with our compensation policies.

***Executive Employment Arrangements***

Below is a description of the material terms of each employment contract, agreement, plan, or arrangement that provides for the employment of, and payments to, our named executive officers (including such payments to be made at, following or in connection with the resignation, retirement, or other termination of a named executive officer, or following a change in control).

*Employment Agreements with our Named Executive Officers* 

In connection with this offering, we may enter into an employment agreement with Paresh Patel that we anticipate will provide for an initial annual base salary of approximately $950,000. This agreement would be in addition to Mr. Patel's current employment agreement with HCI. The terms of Mr. Patel's new employment agreement are anticipated to be substantially similar to those of his existing employment agreement with HCI. In addition, we anticipate that all performance-vesting restricted stock awards of Exzeo held by Mr. Patel as of the date of this offering under Exzeo's 2021 Equity Incentive Plan or 2021 Omnibus Incentive Plan (in the aggregate amount of 1,274,720 restricted shares, all of which have a $15 or $20 per-share vesting trigger) will be deemed vested as of the date of this offering and that both the performance conditions and time-based vesting requirements under such awards will be deemed satisfied as of the date of this offering.

We do not currently have employment agreements with our other executive officers.

*Termination or Change in Control Benefits* 

If we enter into a new employment agreement with Mr. Patel in connection with this offering, Mr. Patel may become entitled to certain benefits or enhanced benefits in connection with a qualifying termination and/or a change in control of our company.

------

##### [**Table of Contents**](#toc)
**Outstanding Equity Awards at Fiscal Year End** 

The following table sets forth information concerning the number of shares of common stock underlying outstanding equity incentive awards for each named executive officer as of December 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Option Awards | Option Awards | Option Awards | Option Awards | Stock Awards | Stock Awards | Stock Awards | Stock Awards |
| Name | Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Exercisable | Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Unexercisable | Option<br>Exercise<br>Price ($) | Option<br>Expiration<br>Date | Number of<br>Shares or<br>Units of Stock<br>That Have Not<br>Vested (#) | Market Value<br>of Shares or<br>Units of Stock<br>That Have Not<br>Vested<sup>(1)</sup> ($) | Equity<br>Incentive Plan<br>Awards:<br>Number of<br>Unearned<br>Shares, Units<br>or Other<br>Rights that<br>Have Not<br>Vested (#) | Equity<br>Incentive Plan<br>Awards:<br>Market or<br>Payout Value<br>of Unearned<br>Shares, Units<br>or Other<br>Rights That<br>Have Not<br>Vested ($) |
|  Paresh Patel | 3750000 | 1250000<sup>(2)</sup> | $23.00 | 10/01/2031 |  |  |  |  |
|  Paresh Patel |  |  |  |  | 51554<sup>(3)</sup> | 154146 |  |  |
|  Paresh Patel |  |  |  |  | 642060<sup>(3)</sup> | 4366 |  |  |
|  Paresh Patel |  |  |  |  | 632660<sup>(3)</sup> | 633 |  |  |
|  Kevin Mitchell | 1000000<sup>(4)</sup> |  | $23.00 | 10/01/2031 | 150000<sup>(5)</sup> | $448500 |  |  |
|  Suela Bulku | 100000<sup>(6)</sup> |  | $23.00 | 10/01/2031 | 96000<sup>(7)</sup> | $287040 |  |  |

---

(1) Amounts included in this column for shares issued to Mr. Patel, Mr. Mitchell and Ms. Bulku, represent
the aggregate estimated value as of December 31, 2024.

(2) On October 1, 2021, Mr. Patel was granted options to purchase 5,000,000 shares of common stock in
Exzeo, with an exercise price of $23 and an expiration date of October 1, 2031. The options will vest in equal installments over four years, so long as Mr. Patel remains employed by the Company.

(3) On February 26, 2021, Mr. Patel received 1,480,935 shares of restricted common stock of Exzeo.
Restrictions on 206,215 of such shares will lapse in 51,554 share increments on February 26 of each year following the year of the grant. Restrictions on 642,060 of such shares will vest, if ever, on the first anniversary of the date on which
the Exzeo stock value first equals or exceeds $15 for 30 consecutive trading days on an exchange. Restrictions on the remaining 632,660 of such shares will vest, if ever, on the first anniversary of the date on which the Exzeo stock value first
equals or exceeds $20 for 30 consecutive trading days on an exchange.

(4) Mr. Mitchell was granted options to purchase 1,000,000 shares of common stock of Exzeo, with an exercise
price of $23 and an expiration date of October 1, 2031. The options are fully vested.

(5) On December 18, 2024, Mr. Mitchell was granted 150,000 shares of restricted common stock of Exzeo.
Restrictions on 25,000 of such shares lapse on December 18 of each year following the year of the grant.

(6) Ms. Bulku was granted options to purchase 100,000 shares of common stock of Exzeo, with an exercise price
of $23 and an expiration date of October 1, 2031. The options are fully vested.

(7) On December 18, 2024, Ms. Bulku was granted 96,000 shares of restricted common stock of Exzeo.
Restrictions on 16,000 of such shares lapse on December 18 of each year following the date of grant.

**Compensation Policies Related to Risk Management** 

Our board of directors has considered risks associated with our compensation policies and practices and identified no compensation policies or practices that are reasonably likely to have a material adverse effect on us.

**Timing of Option Awards in Relation to the Disclosure of Material Nonpublic Information** 

The compensation committee may grant option awards as equity incentive compensation. If granted, the timing of the awards is discretionary and not according to a set schedule or connected with a financial outcome. We do not have a formal policy regarding the timing of awards of options in relation to our disclosure of material nonpublic information. However, our compensation committee does not grant option awards in anticipation of

------

##### [**Table of Contents**](#toc)
the release of material nonpublic information, and we do not time the release of material nonpublic information for the purpose of affecting the value of executive compensation. During 2024, we did not grant stock options or option-like awards to any named executive officer.

**Equity Compensation Plans** 

We currently maintain the Exzeo Group, Inc. 2021 Omnibus Incentive Plan, or 2021 Omnibus Plan. The 2021 Omnibus Plan permits the Administrator to grant stock options, stock appreciation rights ("SARs"), performance shares, performance units, shares of common stock, restricted stock, restricted stock units ("RSUs"), cash incentive awards, dividend equivalent units, or any other type of award permitted under the 2021 Omnibus Plan to any officer or employee, or individuals engaged to become an officer or employee, of our company or our affiliates; consultants of our company or our affiliates; and our directors, including our non-employee directors. The 2021 Omnibus Plan was adopted in September 2021, prior to the change in the Company's name to Exzeo Group, Inc., and was originally adopted under the name "TypTap Insurance Group, Inc 2021 Omnibus Incentive Plan." When the 2021 Omnibus Plan was adopted, it replaced the TypTap Insurance Group, Inc. 2021 Equity Incentive Plan, or the 2021 Equity Plan, although the 2021 Equity Plan continues to govern awards that were made under such plan prior to its termination.

On , 2025, in connection with this offering, our board of directors adopted and our shareholders approved the Exzeo Group, Inc. 2025 Omnibus Incentive Plan, Inc., or 2025 Omnibus Plan, which will become effective upon the completion of this offering. On the date that the 2025 Omnibus Plan becomes effective, the 2021 Omnibus Plan will immediately and automatically terminate and be replaced by the 2025 Omnibus Plan, provided that the 2021 Omnibus Plan will continue to govern awards previously made under such plan.

***2025 Omnibus Incentive Plan***

The 2025 Omnibus Plan authorizes the grant of stock options, SARs, performance shares, performance units, shares of common stock, restricted stock, RSUs, cash incentive awards, dividend equivalent units, or any other type of award permitted under the 2025 Omnibus Plan to our or our affiliates' officers, employees, consultants and advisors and our directors. The following is a summary of the material terms of the 2025 Omnibus Plan.

*Administration* 

The 2025 Omnibus Plan is administered by our board of directors or our compensation committee, or any other committee or subcommittee or one or more of our officers to whom authority has been delegated (collectively, the "Administrator"). The Administrator has the authority to interpret the 2025 Omnibus Plan and award agreements entered into with respect to the 2025 Omnibus Plan; to make, change and rescind rules and regulations relating to the 2025 Omnibus Plan; to correct any defect, supply any omission, or reconcile any inconsistency in the 2025 Omnibus Plan or any award agreement covering an award; and to make all other determinations necessary or advisable to administer the 2025 Omnibus Plan.

*Eligibility* 

The Administrator may designate any of the following as a participant under the 2025 Omnibus Plan: any officer or employee, or individuals engaged to become an officer or employee, of our company or our affiliates; and consultants of our company or our affiliates, and our directors, including our non-employee directors.

*Types of awards* 

The 2025 Omnibus Plan permits the Administrator to grant stock options, SARs, performance shares, performance units, shares of common stock, restricted stock, RSUs, cash incentive awards, dividend equivalent units, or any other type of award permitted under the 2025 Omnibus Plan. The Administrator may grant any type

------

##### [**Table of Contents**](#toc)
of award to any participant it selects, but only our employees or our subsidiaries' employees may receive grants of incentive stock options within the meaning of Section 422 of the Code. Awards may be granted alone or in addition to, in tandem with, or (subject to the repricing prohibition described below) in substitution for any other award (or any other award granted under another plan of our company or any affiliate, including the plan of an acquired entity).

*Shares reserved under the 2025 Omnibus Plan* 

The 2025 Omnibus Plan provides that 10,000,000 shares of our common stock are reserved for issuance under the 2025 Omnibus Plan, all of which may be issued pursuant to the exercise of incentive stock options. In addition, the shares reserved for issuance under our 2025 Omnibus Plan will also include a number of shares of our common stock equal to the number of shares subject to awards granted under the 2021 Omnibus Plan that, after the offering, expire or otherwise terminate without having been exercised in full or are forfeited to or repurchased by us (provided that the maximum number of shares that may be added to the 2025 Omnibus Plan pursuant to this sentence is shares). The number of shares available for issuance under our 2025 Omnibus Plan will also include an annual increase on the first day of each fiscal year beginning with our 2026 fiscal year, equal to the least of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the outstanding shares of all classes of our common stock as of the last day of the
immediately preceding fiscal year; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Such other amount as our board of directors may determine.

The number of shares reserved for issuance under the 2025 Omnibus Plan will be reduced on the date of the grant of any award by the maximum number of shares, if any, with respect to which such award is granted. However, an award that may be settled solely in cash will not deplete the 2025 Omnibus Plan's share reserve at the time the award is granted. If (a) an award expires, is canceled, or terminates without issuance of shares or is settled in cash, (b) the Administrator determines that the shares granted under an award will not be issuable because the conditions for issuance will not be satisfied, (c) shares are forfeited under an award, (d) shares are issued under any award and we reacquire them pursuant to our reserved rights upon the issuance of the shares, (e) shares are tendered or withheld in payment of the exercise price of an option or as a result of the net settlement of outstanding stock appreciation rights or (f) shares are tendered or withheld to satisfy federal, state or local tax withholding obligations, then those shares are added back to the reserve and may again be used for new awards under the 2025 Omnibus Plan. However, shares added back to the reserve pursuant to clauses (d), (e) or (f) in the preceding sentence may not be issued pursuant to incentive stock options.

*Options* 

The Administrator may grant stock options and determine all terms and conditions of each stock option, which include the number of stock options granted, whether a stock option is to be an incentive stock option or non-qualified stock option, and the grant date for the stock option. However, the exercise price per share of common stock may never be less than the fair market value of a share of common stock on the date of grant and the expiration date may not be later than 10 years after the date of grant. Stock options will be exercisable and vest at such times and be subject to such restrictions and conditions as are determined by the Administrator, including with respect to the manner of payment of the exercise price of such stock options. Incentive stock options may be subject to additional requirements.

*Stock appreciation rights* 

The Administrator may grant SARs, which represent the right of a participant to receive cash in an amount, or common stock with a fair market value, equal to the appreciation of the fair market value of a share of common stock during a specified period of time. The 2025 Omnibus Plan provides that the Administrator will determine

------

##### [**Table of Contents**](#toc)
all terms and conditions of each SAR, including, among other things: (a) the grant price, which may never be less than the fair market value of our common stock as determined on the date of grant, (b) the number of shares to which the SAR relates, (c) a term that must be no later than 10 years after the date of grant, and (d) whether the SAR will settle in cash, common stock or a combination of the two.

*Performance and stock awards* 

The Administrator may grant awards of shares of common stock, restricted stock, RSUs, performance shares or performance units. Restricted stock means shares of common stock that are subject to a risk of forfeiture or restrictions on transfer, which may lapse upon the achievement or partial achievement of performance goals (as described below) or upon the completion of a period of service. An RSU grants the participant the right to receive cash or shares of common stock the value of which is equal to the fair market value of one share of common stock, to the extent performance goals are achieved or upon the completion of a period of service.

Performance shares give the participant the right to receive shares of common stock to the extent performance goals are achieved. Performance units give the participant the right to receive cash or shares of common stock valued in relation to a unit that has a designated dollar value or the value of which is equal to the fair market value of one or more shares of common stock, to the extent performance goals are achieved.

The Administrator will determine all terms and conditions of the awards including (a) the number of shares or units to which the award relates, (b) whether performance goals must be achieved for the participant to realize any portion of the benefit provided under the award, (c) the length of the vesting or performance period and, if different, the date that payment of the benefit will be made, (d) with respect to performance units, whether to measure the value of each unit in relation to a designated dollar value or the fair market value of one or more shares of common stock, and (e) with respect to RSUs and performance units, whether the awards will settle in cash, in shares of common stock (including restricted stock), or in a combination of the two.

*Cash incentive awards* 

The Administrator may grant cash incentive awards. An incentive award is the right to receive a cash payment to the extent one or more performance goals are achieved. The Administrator will determine all terms and conditions of a cash incentive award, including, but not limited to, the performance goals (described below), the performance period, the potential amount payable, and the timing of payment. While the 2025 Omnibus Plan permits cash incentive awards to be granted under the 2025 Omnibus Plan, we may also make cash incentive awards outside of the 2025 Omnibus Plan.

*Performance goals* 

For purposes of the 2025 Omnibus Plan, the Administrator may establish objective or subjective performance goals which may apply to any performance award. Such performance goals may include, but are not limited to, one or more of the following measures with respect to our company or any one or more of our subsidiaries, affiliates, or other business units: basic earnings per common share for our company on a consolidated basis; diluted earnings per common share for our company on a consolidated basis; total shareholder return; fair market value of shares; gross margin; cost of sales; gross profit; selling, general and administrative expenses; operating income; earnings before interest and the provision for income taxes (EBIT); earnings before interest, the provision for income taxes, depreciation, and amortization (EBITDA); net income; accounts receivable; return on equity; return on assets; return on invested capital; return on sales; economic value added, or other measure of profitability that considers the cost of capital employed; free cash flow; net cash provided by operating activities; net increase (decrease) in cash and cash equivalents; customer satisfaction; market share; and/or quality. Performance goals may also relate to a participant's individual performance. The Administrator reserves the right to adjust any performance goals or modify the manner of measuring or evaluating a performance goal.

------

##### [**Table of Contents**](#toc)
*Dividend equivalent units* 

The Administrator may grant dividend equivalent units. A dividend equivalent unit gives the participant the right to receive a payment, in cash or shares of common stock, equal to the cash dividends or other distributions that we pay with respect to a share of common stock. We determine all terms and conditions of a dividend equivalent unit award, except that dividend equivalent units may not be granted in connection with a stock option or SAR, and dividend equivalent unit awards granted in connection with another award cannot provide for payment until the date such award vests or is earned, as applicable.

*Other stock-based awards* 

The Administrator may grant to any participant shares of unrestricted stock as a replacement for other compensation to which such participant is entitled, such as in payment of director fees, in lieu of cash compensation, in exchange for cancellation of a compensation right or as a bonus.

*Discretion to accelerate vesting* 

The Administrator may accelerate the vesting of an award or deem an award to be earned, in whole or in part, in the event of a participant's death, disability, retirement, or termination without cause, or as provided in the 2025 Omnibus Plan's provisions relating to a change of control, or upon any other event as determined by the Administrator in its sole and absolute discretion.

*Transferability* 

Awards are not transferable, including to any financial institution, other than by will or the laws of descent and distribution, unless the Administrator allows a participant to (a) designate in writing a beneficiary to exercise the award or receive payment under the award after the participant's death, (b) transfer an award to a former spouse as required by a domestic relations order incident to a divorce, or (c) transfer an award without receiving any consideration.

*Adjustments* 

If (a) we are involved in a merger or other transaction in which our shares of common stock are changed or exchanged; (b) we subdivide or combine shares of common stock or declare a dividend payable in shares of common stock, other securities, or other property (other than stock purchase rights issued pursuant to a shareholder rights agreement); (c) we effect a cash dividend that exceeds 10% of the fair market value of a share of common stock or any other dividend or distribution in the form of cash or a repurchase of shares of common stock that our board of directors determines is special or extraordinary, or that is in connection with a recapitalization or reorganization; or (d) any other event occurs that in the Administrator's judgment requires an adjustment to prevent dilution or enlargement of the benefits intended to be made available under the 2025 Omnibus Plan, then the Administrator will, in a manner it deems equitable, adjust any or all of (1) the number and type of shares subject to the 2025 Omnibus Plan and which may, after the event, be made the subject of awards; (2) the number and type of shares of common stock subject to outstanding awards; (3) the grant, purchase, or exercise price with respect to any award; and (4) the performance goals of an award. In any such case, the Administrator may also provide for a cash payment to the holder of an outstanding award in exchange for the cancellation of all or a portion of the award, subject to the terms of the 2025 Omnibus Plan.

The Administrator may, in connection with any merger, consolidation, acquisition of property or stock, or reorganization, authorize the issuance or assumption of awards upon terms and conditions we deem appropriate without affecting the number of shares of common stock otherwise reserved or available under the 2025 Omnibus Plan.

------

##### [**Table of Contents**](#toc)
*Change of control*

Upon a change of control (as defined in the 2025 Omnibus Plan), in order to preserve a participant's rights under an award, the Administrator in its discretion may, at the time an award is made or at any time thereafter, take one or more of the following actions: (a) provide for the acceleration of any time period, or the deemed achievement of any performance goals, relating to the exercise or realization of the award; (b) provide for the purchase or cancellation of the award for an amount of cash or other property that could have been received upon the exercise or realization of the award had the award been currently exercisable or payable (or the cancellation of awards in exchange for no payment to the extent that no cash or other property would be received upon the exercise or realization of the award in such circumstances); (c) adjust the terms of the award in the manner determined by the Administrator to reflect the change of control; (d) cause the award to be assumed, or new right substituted therefor, by another entity; or (e) make such other provision as the Administrator may consider equitable and in the best interests of our company.

*Non-employee directors* 

Non-employee directors will be eligible to receive all types of awards (except for incentive stock options) under our 2025 Omnibus Plan. To provide a maximum limit on the cash compensation and equity awards that can be made to our non-employee directors, the 2025 Omnibus Plan provides that in any given fiscal year, an outside director may not be granted shares under our 2025 Omnibus Plan with an aggregate grant date fair value, when added to any cash compensation received by the non-employee directors, of greater than $300,000.

*Term of plan* 

Unless earlier terminated by our board of directors, the 2025 Omnibus Plan will terminate on, and no further awards may be granted, after the 10th anniversary of its effective date.

*Termination and amendment of plan* 

Our board of directors or the Administrator may amend, alter, suspend, discontinue or terminate the 2025 Omnibus Plan at any time, subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our board of directors must approve any amendment to the 2025 Omnibus Plan if we determine such approval is
required by prior action of our board of directors, applicable corporate law, or any other applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders must approve any amendment to the 2025 Omnibus Plan, which may include an amendment to materially
increase the number of shares reserved under the 2025 Omnibus Plan, if we determine that such approval is required by Section 16 of the Exchange Act, the Code, the listing requirements of any principal securities exchange or market on which the
shares are then traded, or any other applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders must approve any amendment to the 2025 Omnibus Plan that would diminish the protections afforded by
the participant award limits or repricing and backdating prohibitions.

*Amendment, modification, cancellation and disgorgement of awards* 

Subject to the requirements of the 2025 Omnibus Plan, the Administrator may modify or amend any award or waive any restrictions or conditions applicable to any award or the exercise of the award, or amend, modify, or cancel any terms and conditions applicable to any award, in each case, by mutual agreement of the Administrator and the participant or any other person that may have an interest in the award, so long as any such action does not increase the number of shares of common stock issuable under the 2025 Omnibus Plan.

We do not need to obtain participant (or other interested party) consent for any such action (a) that is permitted pursuant to the adjustment provisions of the 2025 Omnibus Plan; (b) to the extent we deem the action necessary

------

##### [**Table of Contents**](#toc)
to comply with any applicable law or the listing requirements of any principal securities exchange or market on which our common stock is then traded; (c) to the extent we deem the action is necessary to preserve favorable accounting or tax treatment of any award for us; or (d) to the extent we determine that such action does not materially and adversely affect the value of an award or that such action is in the best interest of the affected participant or any other person as may then have an interest in the award.

The Administrator can cause a participant to forfeit any award, and require the participant to disgorge any gains attributable to the award, if the participant engages in any action constituting, as determined by the Administrator in its discretion, cause for termination, or a breach of a material company policy, any award agreement or any other agreement between the participant and us or one of our affiliates concerning noncompetition, nonsolicitation, confidentiality, trade secrets, intellectual property, nondisparagement or similar obligations.

Any awards granted under the 2025 Omnibus Plan, and any shares of common stock issued or cash paid under an award, will be subject to any recoupment or clawback policy that we adopt, or any recoupment or similar requirement otherwise made applicable by law, regulation or listing standards to us.

*Repricing and backdating prohibited* 

Except for the adjustments provided for in the 2025 Omnibus Plan, neither the Administrator nor any other person may amend the terms of outstanding stock options or SARs to reduce their exercise or grant price, cancel outstanding stock options or SARs in exchange for stock options or SARs with an exercise or grant price that is less than the exercise or grant price of the awards being cancelled, or cancel outstanding stock options or SARs with an exercise or grant price above the current fair market value of a share in exchange for cash or other securities. In addition, the Administrator may not grant a stock option or SAR with a grant date that is effective prior to the date the Administrator takes action to approve such award.

***2021 Omnibus Plan*** 

Our board of directors and our shareholders adopted the 2021 Omnibus Plan in September 2021. Like the 2025 Omnibus Plan, the 2021 Omnibus Plan permits the Administrator to grant stock options, SAR, performance shares, performance units, shares of common stock, restricted stock, RSUs, cash incentive awards, dividend equivalent units, or any other type of award permitted under the 2021 Omnibus Plan to any officer or employee, or individuals engaged to become an officer or employee, of our company or our affiliates; and consultants of r company or our affiliates, and our directors, including our non-employee directors.

As of , 2025, there were 3,275,776 shares of our common stock remaining available under the 2021 Omnibus Plan for future awards, and there were awards of stock options and restricted shares under the 2021 Omnibus Plan outstanding with respect to 4,037,320 shares of our common stock. The outstanding stock options had a weighted average exercise price of $23.00 and a remaining average term of 6.1 years. The 2021 Omnibus Plan otherwise has terms and provisions that are substantially similar to the 2025 Omnibus Plan.

------

##### [**Table of Contents**](#toc)
**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS** 

The following is a description of transactions within the last three years to which we have been a party, in which the amount involved exceeded or will exceed $120,000, and in which any of our executive officers, directors or holders of more than 5% of our voting securities, or an immediate family member thereof, had or will have a direct or indirect material interest. We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or amounts that would be paid or received, as applicable, in arm's-length transactions with unrelated third parties.

**Commercial Agreements between Affiliates of HCI and Exzeo** 

The following summarizes the terms of the existing commercial agreements between our affiliates and affiliates of HCI that constitute related party transactions under Item 404 of Regulation S-K or that are otherwise material. HCI is currently our parent company and owns approximately 90.69% of our outstanding common stock. Following this offering, it is expected that HCI will continue to own more than 80% of our outstanding common stock. In addition, Paresh Patel, the Chairman of our board of directors and our Chief Executive Officer, also serves as the Chairman of HCI's board of directors and its Chief Executive Officer and beneficially owns more than 10% of HCI's outstanding common stock. Accordingly, Mr. Patel may be deemed to have an indirect material interest in these transactions. The summaries of these agreements are qualified in their entirety by reference to the full text of the applicable agreements, which are included as exhibits to the registration statement of which this prospectus forms a part.

***Software License and Services Agreement with Homeowners Choice Managers, Inc.***

Effective as of March 1, 2021, Exzeo USA, Inc., our wholly owned subsidiary ("Exzeo USA"), entered into a Software License and Services Agreement (the "Software License Agreement") with Homeowners Choice Managers, Inc. ("HCM"), a wholly owned subsidiary of HCI and the managing general agent for Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI"), which is one of the two active insurance company subsidiaries of HCI. Under the Software License Agreement, Exzeo USA has granted HCM a non-exclusive, nontransferable, worldwide license to use the licensed software in connection with policy administration and claims management services performed with respect to insurance policies issued by or on behalf of HCM or its affiliates, including HCPCI. The license provides access to the various modules of the Exzeo Platform, including: a license to the SAMS module for a quarterly fee based on the number of policies under administration; a license to the CasaClue<sup>TM</sup> property database system for a per-quote fee; a license to the AtlasViewer<sup>®</sup> online mapping and data visualization platform for a flat quarterly fee; a license to the ClaimColony<sup>TM</sup> online claim management software suite for a license fee per claim handled by use of the software; and a license to the Harmony<sup>TM</sup> online policy and claims management and administration system for a quarterly license fee based on the number of policies administered by Harmony. In addition, Exzeo USA provides under the agreement certain maintenance, support, and development services for HCM's website for a flat quarterly fee.

The term of the Software License Agreement will expire five years from its effective date (i.e., on March 1, 2026), unless terminated earlier in accordance with its terms, and will automatically renew for additional five-year periods upon the expiration of the initial term and each renewal term, unless terminated earlier in accordance with its terms. The Software License Agreement may be terminated by HCM upon six months written notice, by either party for breach (whether the breaching party or not) upon thirty days written notice, or by Exzeo USA upon 90 days written notice to HCM given at any time within three months following the occurrence of a change of control of HCM.

For the year ended December 31, 2022, the total amount paid by HCM to Exzeo USA under the Software License Agreement was approximately $1,816,607. For the year ended December 31, 2023, the total amount paid by HCM to Exzeo USA under the Software License Agreement was approximately $1,776,758. For the year ended December 31, 2024, the total amount paid by HCM to Exzeo USA under the Software License Agreement

------

##### [**Table of Contents**](#toc)
was approximately $1,804,957. For the six months ended June 30, 2025, the total amount paid by HCM to Exzeo USA under the Software License Agreement was approximately $163,721. These amounts reflect cash payments made during the respective periods and do not represent the revenue recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Catastrophe Software License and Services Agreement with Homeowners Choice Managers, Inc.***

Effective as of September 28, 2022, Exzeo USA entered into a Catastrophe Software License and Services Agreement (the "Catastrophe Software License Agreement") with HCM, pursuant to which Exzeo USA charges HCM an enhanced catastrophe service fee for extraordinary use of the licensed software, as described above, in handling and adjusting catastrophe claims as a result of heightened activity surrounding catastrophe events. Unlike our other customers, HCM provides the claim processing services for HCPCI directly to HCPCI, rather than through our subsidiary, EIS, provided that HCM uses the Exzeo Platform to provide such services under a license grant made under the Catastrophe Software License Agreement. Our other customers receive claim processing services through their agreement with EIS, which currently outsources adjustment and other claim management services to Griston Claim Management, Inc., a subsidiary of HCI ("Griston"), as discussed in additional detail below.

Under the Catastrophe Software License Agreement, Exzeo USA has granted HCM a non-exclusive, nontransferable, worldwide license to use the licensed software in connection with the catastrophe services performed with respect to insurance policies issued by or on behalf of HCM or its affiliates, including HCPCI. In addition, under the Catastrophe Software License Agreement, Exzeo USA provides certain software services, including maintenance of the licensed software.

In exchange for the use of the licensed software and related software services to handle and adjust catastrophe claims, HCM pays Exzeo USA a percentage of the amount incurred per catastrophe claim handled by HCM by use of the licensed software. The term of the Catastrophe Software License Agreement will expire five years from its effective date (i.e., on September 28, 2027), unless terminated earlier in accordance with its terms, and will automatically renew for additional five-year periods upon the expiration of the initial term and each renewal term, unless terminated earlier in accordance with its terms. The Catastrophe Software License Agreement may be terminated by HCM upon six months written notice, by either party (whether the breaching party or not) for breach upon thirty days written notice, or by Exzeo USA upon 90 days written notice to HCM given at any time within three months following the occurrence of a change of control of HCM.

For the year ended December 31, 2022, the total amount paid by HCM to Exzeo USA under the Catastrophe Software License Agreement was approximately $4,958,794. For the year ended December 31, 2023, the total amount paid by HCM to Exzeo USA under the Catastrophe Software License Agreement was approximately $4,936,813. For the year ended December 31, 2024, the total amount paid by HCM to Exzeo USA under the Catastrophe Software License Agreement was approximately $5,534,177. For the six months ended June 30, 2025, the total amount paid by HCM to Exzeo USA under the Catastrophe Software License Agreement was approximately $2,653,005. These amounts reflect cash payments made during the respective periods and do not represent the revenue recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Policy Administration Services Agreement with Homeowners Choice Managers, Inc.***

Effective as of January 1, 2025, our subsidiary, EIS, entered into a Policy Administration Services Agreement with HCM, a wholly owned subsidiary of HCI and the managing general agent for HCPCI. Pursuant to this Policy Administration Services Agreement, EIS provides policy administration and related services to HCM in connection with HCM's obligations as the managing general agent of HCPCI. These services, which are being provided with respect to all lines of business for which HCPCI and HCM are licensed, include policy issuance, processing, management, and renewal services, maintenance of a policy administration system, and assistance in selecting and onboarding insurance agents and producers. In exchange for these services, EIS receives a monthly commission

------

##### [**Table of Contents**](#toc)
equal to a percentage of HCPCI's total written annual premiums, as well as a flat fee per policy issued by EIS on HCPCI's behalf. The term of this Policy Administration Services Agreement continues indefinitely until terminated in accordance with its terms, which may occur in connection with certain uncured breaches or certain bankruptcy-related events or upon notice by either party provided at least 180 days prior to such termination.

For the six months ended June 30, 2025, the total amount paid to EIS under this Policy Administration Services Agreement was approximately $46,806,456. This amount reflects cash payments made during the respective periods and do not represent the revenue recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Amended and Restated Managing General Agency Agreement with TypTap Insurance Company***

Our subsidiary, EIS, has served as the exclusive managing general agent for TypTap Insurance Company ("TTIC"), one of the two active insurance company subsidiaries of HCI, since January 2016. This relationship continues under the Amended and Restated Managing General Agency Agreement, entered into and effective as of November 5, 2020 and amended effective as of March 1, 2021 and September 1, 2022, between EIS and TTIC (as amended, the "TTIC MGA Agreement"). Under the TTIC MGA Agreement, EIS provides the following services to TTIC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Underwriting, Management, and Administrative Services</u>: EIS issues and administers TTIC's insurance
policies, including making determinations regarding renewal, cancellation and non-renewal. In addition, EIS solicits and negotiates reinsurance for authorized programs and manages and maintains a policy
administration system. EIS also provides administrative services, including maintaining policy records, maintaining underwriting files, and printing policy-related documents. In exchange for these services, EIS retains a percentage of TTIC's
total written annual premium (excluding policies assumed from Citizens Property Insurance Corporation) and receives a flat fee per policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Claims Services</u>: EIS is also responsible for investigating, evaluating, handling, adjusting and settling
all reported and assigned claims (including catastrophe claims) arising during the term of the TTIC MGA Agreement in exchange for a percentage of TTIC's total written annual premium (including premiums assumed from Citizens Property Insurance
Corporation or any other entity). On a monthly basis, TTIC also pays to EIS a percentage of all gross subrogation and salvage amounts recovered by EIS. For the administration and management of catastrophe claims, TTIC also pays EIS a flat per claim
fee plus a percentage of the amount expended for indemnification of the loss. In addition, TTIC is responsible for paying expenses attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense and general
handling of any claims or actions related thereto or to the protection and/or perfection of TTIC's and/or its insured's rights of subrogation, contribution or indemnification.

The initial term of the TTIC MGA Agreement continued for a period of three years from its original effective date (i.e., until November 5, 2023), then it automatically renewed for an additional one-year period upon the expiration of the initial three-year term and another additional one-year period upon the expiration of the first one-year renewal period. It will automatically renew for additional one-year periods unless either party provides written notice of termination to the other at least ninety days prior to the expiration of the applicable renewal term. In addition, the TTIC MGA Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 120 days prior written notice of such termination or by TTIC or EIS in the event of, among other things, the loss of certain licenses or certain uncured breaches of the TTIC MGA Agreement.

For the year ended December 31, 2022, the total amount paid by TTIC to EIS under the TTIC MGA Agreement was approximately $113,144,359. For the year ended December 31, 2023, the total amount paid by TTIC to EIS under the TTIC MGA Agreement was approximately $98,536,698. For the year ended December 31, 2024, the total amount paid by TTIC to EIS under the TTIC MGA Agreement was approximately $131,723,971. For the six months ended June 30, 2025, the total amount paid by TTIC to EIS under the TTIC MGA Agreement was approximately $61,156,942. These amounts reflect cash payments made during the respective periods and do not

------

##### [**Table of Contents**](#toc)
represent the revenue recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Managing General Agency Agreement with Core Risk Managers, LLC***

On and effective as of November 21, 2023, our subsidiary, EIS, entered into a Managing General Agency Agreement (the "CORE MGA Agreement") with Core Risk Managers, LLC ("Core Risk Managers"), for itself and as attorney-in-fact for Condo Owners Reciprocal Exchange, a Florida domestic commercial property reciprocal insurer ("Condo Owners" and with Core Risk Managers, "CORE Company"). Core Risk Managers, which is a subsidiary of HCI, was formed by HCI to manage Condo Owners' operations as its attorney-in-fact.

Under the CORE MGA Agreement, EIS serves as the exclusive managing general agent for CORE Company and provides substantially the same underwriting, management, and administrative services as those provided by EIS to TTIC under the TTIC MGA Agreement described above. Under the CORE MGA Agreement, EIS also provides accounting, finance and treasury services, corporate tax analysis, corporate legal services, corporate and brand marketing, and customer relations. In exchange for these services, EIS retains a percentage of Condo Owners' total written annual premium and receives a flat fee per policy.

EIS is also responsible for investigating, evaluating, handling, adjusting and settling all reported and assigned claims (including catastrophe claims) arising during the term of the CORE MGA Agreement in exchange for a percentage of Condo Owners' total written annual premium (including premiums assumed from Citizens Property Insurance Corporation or any other entity). On a monthly basis, Core Risk Managers also pays EIS a percentage of all gross subrogation and salvage amounts EIS recovers. For the administration and management of catastrophe claims, Core Risk Managers also pays EIS a flat per claim fee plus a percentage of the amount expended for indemnification of the loss. In addition, CORE Company is responsible for paying any expenses attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense and general handling of any claims or actions related thereto, or to the protection and/or perfection of CORE Company's and/or its insured's rights of subrogation, contribution or indemnification.

The term of the CORE MGA Agreement will continue for a period of three years from its effective date (i.e., until November 21, 2026), unless terminated earlier in accordance with its terms, and, upon expiration of its initial three-year term, will automatically renew for additional one-year periods unless either party provides written notice of termination to the other at least ninety days prior to the expiration of the initial term or the applicable renewal term. In addition, the CORE MGA Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 120 days prior written notice of such termination or by CORE Company or EIS in the event of, among other things, the loss of certain licenses or certain uncured breaches of the CORE MGA Agreement.

For the year ended December 31, 2023, there were no amounts paid to EIS under the CORE MGA Agreement as there were no policies under management. For the year ended December 31, 2024, the total amount paid to EIS under the CORE MGA Agreement was approximately $9,219,589. For the six months ended June 30, 2025, the total amount paid to EIS under the CORE MGA Agreement was approximately $3,004,600. These amounts reflect cash payments made during the respective periods and do not represent the revenue recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Managing General Agency Agreement with Tailrow Risk Managers, LLC***

On and effective as of November 5, 2024, our subsidiary, EIS, entered into a Managing General Agency Agreement (the "Tailrow MGA Agreement") with Tailrow Risk Managers, LLC ("Tailrow Risk Managers"), for itself and as attorney-in-fact for Tailrow Insurance Exchange, a Florida domestic homeowners reciprocal insurer ("Tailrow Exchange" and with Tailrow Risk Managers, "Tailrow Company"). Tailrow Risk Managers, which is a subsidiary of HCI, was formed by HCI to manage Tailrow Exchange's operations as its attorney-in-fact.

------

##### [**Table of Contents**](#toc)
Under the Tailrow MGA Agreement, EIS serves as the exclusive managing general agent for Tailrow Company and provides substantially the same underwriting, management, administrative and related services as those provided by EIS to CORE Company under the CORE MGA Agreement described above. In exchange for these services, EIS retains a percentage of Tailrow Exchange's total written annual premium and receives a flat fee per policy.

EIS is also responsible for investigating, evaluating, handling, adjusting and settling all reported and assigned claims (including catastrophe claims) arising during the term of the Tailrow MGA Agreement in exchange for a percentage of Tailrow Exchange's total written annual premium (including premiums assumed from Citizens Property Insurance Corporation or any other entity). On a monthly basis, Tailrow Risk Managers also pays EIS a percentage of all gross subrogation and salvage amounts EIS recovers. For the administration and management of catastrophe claims, Tailrow Risk Managers also pays EIS a flat per claim fee plus a percentage of the amount expended for indemnification of the loss. In addition, Tailrow Company is responsible for paying any expenses attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense and general handling of any claims or actions related thereto, or to the protection and/or perfection of Tailrow Company's and/or its insured's rights of subrogation, contribution or indemnification.

The term of the Tailrow MGA Agreement will continue for a period of three years from its effective date (i.e., until November 5, 2027), unless terminated earlier in accordance with its terms, and, upon expiration of its initial three-year term, will automatically renew for additional one-year periods unless either party provides written notice of termination to the other at least ninety days prior to the expiration of the initial term or the applicable renewal term. In addition, the Tailrow MGA Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 180 days prior written notice of such termination or by Tailrow Company or EIS in the event of, among other things, the loss of certain licenses or certain uncured breaches of the Tailrow MGA Agreement.

For the six months ended June 30, 2025, the total amount paid to EIS under the Tailrow MGA Agreement was approximately $2,582,607. This amount reflects cash payments made during the period and does not represent the revenue recognized in the income statement, which is recorded over time as services are performed and contractual obligations are fulfilled.

***Claims Services Agreements with Griston Claim Management, Inc.***

Our subsidiary, EIS, has entered into three separate Claims Services Agreements with Griston Claim Management, Inc., a subsidiary of HCI ("Griston") – one, effective as of March 1, 2021, relating to the claims services covered by the TTIC MGA Agreement (the "TTIC Claims Services Agreement"); one, effective as of November 21, 2023, relating to the claims services covered by the CORE MGA Agreement (the "CORE Claims Services Agreement"); and one, effective as of November 5, 2024, relating to the claims services covered by the Tailrow MGA Agreement (the "Tailrow Claims Services Agreement," and collectively with the TTIC Claims Services Agreement and the CORE Claims Services Agreement, the "Claims Services Agreements").

Under the Claims Services Agreements, Griston is the exclusive provider of claims services for all of EIS's reported and assigned claims under policies of insurance written by or through TTIC, Condo Owners, and Tailrow Exchange and for which EIS has responsibility under the TTIC MGA Agreement, the CORE MGA Agreement, and the Tailrow MGA Agreement, and EIS has granted Griston the authority to investigate, evaluate, handle, adjust and settle such claims in accordance with applicable state law, policy terms and conditions, and written standards provided by EIS.

In exchange for the non-catastrophe claims services provided by Griston under the TTIC Claims Services Agreement, EIS pays to Griston (i) a flat fee per claim handled by Griston, and (ii) a flat fee per litigated claim handled by Griston. In exchange for the catastrophe claims services provided by Griston under the TTIC Claims Services Agreement, EIS pays to Griston a flat fee plus a percentage of the amount expended for indemnification

------

##### [**Table of Contents**](#toc)
of the loss per catastrophe claim handled by Griston. For the year ended December 31, 2022, the total amount paid by EIS to Griston under the TTIC Claims Service Agreement was approximately $20,874,860. For the year ended December 31, 2023, the total amount paid by EIS to Griston under the TTIC Claims Service Agreement was approximately $15,545,045. For the year ended December 31, 2024, the total amount paid by EIS to Griston under the TTIC Claims Service Agreement was approximately $22,840,768. For the six months ended June 30, 2025, the total amount paid by EIS to Griston under the TTIC Claims Service Agreement was approximately $6,564,709. These amounts reflect cash payments made during the respective periods and do not represent the cost recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

In exchange for the claims services provided by Griston under the CORE Claims Services Agreement, EIS pays to Griston (i) a flat fee plus a percentage of the amount expended for indemnification of the loss per claim handled by Griston, and (ii) a flat fee plus a percentage of the amount expended for indemnification of the loss per litigated claim handled by Griston. For the year ended December 31, 2024, the total amount paid by EIS to Griston under the CORE Claims Service Agreement was approximately $389,495. For the six months ended June 30, 2025, the total amount paid by EIS to Griston under the CORE Claims Service Agreement was approximately $866,148. These amounts reflect cash payments made during the respective periods and do not represent the cost recognized in the respective income statements, which is recorded over time as services are performed and contractual obligations are fulfilled.

In exchange for the claims services provided by Griston under the Tailrow Claims Services Agreement, EIS pays to Griston (i) a flat fee plus a percentage of the amount expended for indemnification of the loss per claim handled by Griston, and (ii) a flat fee plus a percentage of the amount expended for indemnification of the loss per litigated claim handled by Griston. For the six months ended June 30, 2025, the total amount paid by EIS to Griston under the Tailrow Claims Service Agreement was approximately $187,585. This amount reflects cash payments made during the period and does not represent the cost recognized in the income statement, which is recorded over time as services are performed and contractual obligations are fulfilled.

In addition, under the Claims Services Agreements, EIS, Condo Owners and Tailrow Exchange (as applicable) are responsible for paying any expenses attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense and general handling of any claims or actions related thereto, or to the protection and/or perfection of EIS or TTIC's, Condo Owners' or Tailrow Exchange's and/or their respective insured's rights of subrogation, contribution or indemnification.

The term of each of the Claims Services Agreements will expire five years after its effective date, unless terminated earlier in accordance with its terms, and will automatically renew for additional one-year periods upon the expiration of the initial term and each renewal term, unless terminated earlier in accordance with its terms. In addition, each of the Claims Services Agreements may be terminated by EIS upon six months written notice or by either party for breach (whether the breaching party or not) upon thirty days written notice.

**Other Agreements** 

With respect to our principal office facility in Tampa, Florida comprised of approximately 28,400 square feet of rentable space, we entered into a lease agreement (the "Tampa Lease") with Century Park Holding, LLC, a subsidiary of HCI, that became effective on January 1, 2023. The Tampa Lease term is through December 2032 with no option for renewal. We expect to continue leasing the Tampa office following the completion of this offering. For the year ended December 31, 2024, the total amount paid by us to Century Park Holding, LLC under the Tampa Lease was approximately $887,000.

With respect to our office facility in Ocala, Florida comprised of approximately 25,300 square feet of rentable space, we entered into a lease agreement (the "Ocala Lease") with Silver Springs Property Investment, LLC, a subsidiary of HCI, that became effective on January 1, 2022. The Ocala Lease term is through December 2027

------

##### [**Table of Contents**](#toc)
with an option to renew for one three-year period. We expect to continue leasing the Ocala office following the completion of this offering. For the year ended December 31, 2024, the total amount paid by us to Silver Springs Property Investment, LLC under the Ocala Lease was approximately $624,000.

Exzeo and its subsidiaries are each a party to a tax allocation agreement, dated February 13, 2025, with HCI and the other subsidiaries of HCI (the "Tax Allocation Agreement") that requires that we and each of our subsidiaries pays to HCI the amount of U.S. federal income tax we would owe for each taxable year if such entity had filed a U.S. federal income tax return for such year as a separate company. If we incur a loss (or have unused tax credits) for a taxable year that can be carried back to prior years, HCI is required to pay us the amount of U.S. federal income tax refund we would be entitled to receive, computed on a separate company basis. If no carryback is allowed, however, HCI is obligated to pay us the amount of the reduction in the consolidated U.S. federal income taxes of HCI's affiliated group that results from such group's use of our losses or credits. The Tax Allocation Agreement will automatically terminate with respect to us if our membership in HCI's affiliated group terminates, but certain rights and obligations arising under the Tax Allocation Agreement will survive termination. We do not anticipate that our membership in HCI's affiliated group will terminate as a result of this offering or in the foreseeable future. Under the Tax Allocation Agreement or its predecessor agreement, Exzeo and its subsidiaries paid approximately $634,126 to HCI for the year ended December 31, 2022; Exzeo and its subsidiaries received approximately $10,676,339 from HCI for the year ended December 31, 2023; and Exzeo and its subsidiaries paid approximately $13,819,477 to HCI for the year ended December 31, 2024.

**Director and Officer Indemnification Agreements** 

Prior to the completion of this offering, we intend to enter into indemnification agreements with each of our directors and executive officers. These agreements, among other things, will require us to indemnify each director and executive officer to the fullest extent permitted by Florida law, including indemnification of expenses such as attorneys' fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of us, arising out of the person's services as a director or executive officer. For further information, see the section titled "Description of Capital Stock—Liability and Indemnification of Officers and Directors."

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to certain individuals associated with us and our stockholders. We do not currently know the extent to which these related persons will participate in the directed share program, if at all, but the number of shares of common stock available for sale to the general public will be reduced to the extent these related persons purchase such reserved shares of common stock. Any reserved shares of common stock that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares of common stock offered by this prospectus. The sales will be administered by Truist Securities, Inc., an underwriter in this offering, and its affiliates. See "Underwriting—Directed Share Program."

**Review and Approval of Related Party Transactions** 

Prior to the completion of the offering, our board of directors will adopt a written policy regarding the review and approval of related party transactions. Our audit committee charter provides that the audit committee shall review and approve or disapprove any related party transactions, which are transactions between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed $120,000 and in which a related person has or will have a direct or indirect material interest. Upon the completion of this offering, our policy regarding transactions between us and related persons will provide that a related person is defined as a director, executive officer, nominee for director or greater than 5% beneficial owner of our common stock (including HCI and its other subsidiaries), in each case since the beginning of the most recently completed year, and any of their immediate family members.

------

##### [**Table of Contents**](#toc)
Certain of the foregoing disclosures are summaries of certain provisions of our related party agreements, and are qualified in their entirety by reference to all of the provisions of such agreements. Because these descriptions are only summaries of the applicable agreements, they do not necessarily contain all of the information that you may find useful. Copies of certain of the agreements have been filed as exhibits to the registration statement of which this prospectus is a part, and are available electronically on the website of the SEC at *www.sec.gov*.

------

##### [**Table of Contents**](#toc)
**PRINCIPAL SHAREHOLDERS** 

The following table sets forth information as of , 2025 with respect to the beneficial ownership of our common stock (i) immediately prior to this offering and (ii) as adjusted to reflect the sale of shares of our common stock in this offering, in each case by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our current directors and executive officers as a group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known by us to be the beneficial owner of more than 5% of the outstanding shares of our common stock.

We have determined beneficial ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. The information does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Securities Act.

In the table below, the applicable percentage ownership relating to shares beneficially owned prior to this offering is based on 82,778,789 shares of our common stock outstanding as of September 23, 2025. The applicable percentage ownership relating to shares beneficially owned after this offering is based on shares of our common stock outstanding (or shares of our common stock if the underwriters' option to purchase additional shares is exercised in full). The table below does not reflect any shares of common stock that may be purchased in this offering pursuant to our directed share program as described under "Underwriting—Directed Share Program." Unless otherwise indicated in the footnotes below, the address of each beneficial owner listed in the table below is c/o Exzeo Group, Inc., 1000 Century Park Dr, Tampa, Florida 33607.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares of common stock beneficially owned** | **Shares of common stock beneficially owned** | **Shares of common stock beneficially owned** | **Shares of common stock beneficially owned** | **Shares of common stock beneficially owned** | **Shares of common stock beneficially owned** |
|  | **Shares of common<br>stock beneficially<br>owned before this<br>offering** | **Shares of common<br>stock beneficially<br>owned before this<br>offering** | **Shares of common<br>stock beneficially<br>owned after this<br>offering assuming<br>underwriters' option<br>is not exercised** | **Shares of common<br>stock beneficially<br>owned after this<br>offering assuming<br>underwriters' option<br>is not exercised** | **Shares of common<br>stock beneficially<br>owned after this<br>offering assuming<br>underwriters' option<br>is exercised in full** | **Shares of common<br>stock beneficially<br>owned after this<br>offering assuming<br>underwriters' option<br>is exercised in full** |
| **Name of beneficial owner** | **Number<br>of Shares** | **Percentage** | **Number<br>of Shares** | **Percentage** | **Number<br>of Shares** | **Percentage** |
|  **Directors and Executive Officers:** |  |  |  |  |  |  |
|  Paresh Patel<sup>(1)</sup> | 6522013 | 7.43% |  |  |  |  |
|  Kevin Mitchell<sup>(2)</sup> | 1701625 | 2.03% |  |  |  |  |
|  Suela Bulku<sup>(3)</sup> | 407750 | \*% |  |  |  |  |
|  Irene Hurst | 107500 | \*% |  |  |  |  |
|  Robert Lopes | 114835 | \*% |  |  |  |  |
|  James Macchiarola | 116000 | \*% |  |  |  |  |
|  Loreen Spencer | 106000 | \*% |  |  |  |  |
|  Directors and All Executive Officers as a group (8 persons) | 9469298 | 10.64% |  |  |  |  |
|  **Principal Shareholders:** |  |  |  |  |  |  |
|  HCI Group, Inc. | 75000000 | 90.60% |  |  |  |  |

---

\* Represents less than 1%. 

(1) Includes 5,000,000 shares issuable upon the exercise of options that are currently exercisable.

(2) Includes 1,000,000 shares issuable upon the exercise of options that are currently exercisable.

(3) Includes 100,000 shares issuable upon the exercise of options that are currently exercisable.

------

##### [**Table of Contents**](#toc)
**DESCRIPTION OF CAPITAL STOCK** 

**General** 

The following summarizes information concerning our capital stock, including material provisions of our articles of incorporation that will become effective immediately after the closing of this offering, our bylaws that will become effective immediately after the closing of this offering, and certain provisions of the Florida Business Corporation Act, which we sometimes refer to as the FBCA. You are encouraged to read the forms of our articles of incorporation and our bylaws, which are filed as exhibits to the registration statement of which this prospectus forms a part for greater detail with respect to these provisions. We will include our articles of incorporation and our bylaws, as in effect at the time of this offering, in a Current Report on Form 8-K filed with the SEC. In addition, since the terms of the Florida Business Corporation Act are more detailed than the general information provided below, you should read the actual provisions of the Florida Business Corporation Act for complete information.

**Authorized Shares** 

Immediately following the offering, our authorized shares will be shares of capital stock, consisting of shares of common stock, $0.001 par value per share, and shares of preferred stock, $0.001 par value per share. Preferred stock will be issuable in one or more classes and series, with preferences, rights, restrictions, and qualifications as established by our board of directors without shareholder approval, including voting, dividend, redemption, liquidation, sinking fund, conversion and other rights. No shares of our preferred stock will be outstanding immediately following the offering.

**Common Stock** 

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of shareholders. Accordingly, holders of a majority of the shares of our common stock entitled to vote in any election of directors may elect all of the directors standing for election. Holders of our common stock are entitled to receive proportionately any dividends if and when such dividends are declared by our board of directors, subject to any preferential dividend rights of outstanding preferred stock. Upon the liquidation, dissolution or winding up of the company, the holders of our common stock are entitled to receive ratably net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may designate and issue in the future.

**Preferred Stock** 

Under the terms of our articles of incorporation, which we sometimes refer to as the articles, our board of directors is authorized to designate and issue up to shares of preferred stock in one or more series without shareholder approval. Our board of directors will have discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock.

It is not possible to state the actual effect of the issuance of any shares of preferred stock upon the rights of holders of our common stock until our board of directors determines the specific rights of the holders of the preferred stock. However, these effects might include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restricting dividends on the common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diluting the voting power of the common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing the liquidation rights of the common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• delaying or preventing a change in control of the company

------

##### [**Table of Contents**](#toc)
Upon completion of the offering, there will be no shares of preferred stock outstanding and, at present, we have no plans to issue any shares of preferred stock.

**Dividends and Other Distributions** 

The holders of our common stock will be entitled to receive proportionately any cash or stock dividends if and when such dividends are declared by our board of directors, subject to any preferential dividend rights of outstanding preferred stock. In the event of the dissolution or liquidation of the company, after the full preferential rights, if any, on any outstanding preferred stock has been paid to or set aside for the holders of such preferred stock, the holders of our common stock will be entitled to receive proportionately all of our remaining assets.

The declaration and payment of any dividend will be subject to the discretion of our board of directors, subject to applicable laws. The time and amount of any dividend will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions, and any other factors that our board of directors may deem relevant.

We currently intend to retain all available funds and any future earnings for general corporate purposes, including working capital, operating expenses and capital expenditures, and do not anticipate declaring or paying any cash dividends on our common stock in the foreseeable future. See "Dividend Policy."

**Certain Provisions of Florida Law, Our Articles of Incorporation and Bylaws**

***Number and Election of Directors*** 

Our board of directors consists of six members. Our articles provide that our directors are divided into three classes, designated as Class A, Class B and Class C. The terms of the directors of each class will expire at the annual meetings of shareholders to be held in 2026 (Class B), 2027 (Class C) and 2028 (Class A). At each annual meeting of shareholders, one class of directors will be elected to succeed that class of directors whose terms are expiring to hold office until the third succeeding annual meeting, and until their successors are duly elected and qualified.

***Quorum/Voting***

At all meetings of our board of directors, a majority of the total number of directors constitutes a quorum. If there is a quorum, a vote of the majority of the directors present at the meeting is considered an act of our board of directors.

***Removal of Directors***

Our articles provide that any director may be removed from office, but only for cause by the affirmative vote of not less than a majority of our shareholders entitled to vote in the election of directors. "Cause" is construed to exist only if the director whose removal is proposed has been convicted of a felony or has been adjudged to be liable for willful misconduct in the performance of his or her duties to us in a matter which has a material adverse effect on our business.

***Vacancies on the Board of Directors***

Any vacancy occurring in our board of directors may be filled by the affirmative vote of a majority of the directors then in office.

***Voting by Shareholders***

Each holder of our common stock is entitled to one vote per share for the election of directors and for all other corporate purposes.

------

##### [**Table of Contents**](#toc)
***Amendment of Articles***

The FBCA allows us to amend our articles at any time to add or change a provision that is required or permitted to be included in the articles of incorporation or to delete a provision that is not required to be included in the articles of incorporation. Our board of directors can propose one or more amendments for submission to shareholders and may condition its submission of the proposed amendment on any basis if it provides certain notice and includes certain information regarding the proposed amendment in that notice. The provisions in our articles that require a greater voting requirement than provided in the FBCA may only be amended by the same vote required to take action under that voting requirement.

***Amendment of Bylaws***

Our bylaws may be amended or repealed and new bylaws may be adopted by our shareholders at any annual or special meeting at which a quorum is present. The bylaws may also be amended or repealed and new bylaws may be adopted by our board of directors by affirmative vote of a majority of the number of directors present at any meeting at which a quorum is in attendance. Notwithstanding the foregoing, pursuant to our articles, the provisions of our bylaws that require a greater voting requirement than provided in the FBCA may only be amended by the same vote required to take action under that voting requirement.

***Anti-Takeover Effects of Certain Provisions of our Articles of Incorporation and Bylaws***

Provisions of Florida law have certain anti-takeover effects. Our articles of incorporation and bylaws also contain provisions that may have similar effects.

***Florida Anti-Takeover Statutes***

The control share acquisition statute, Section 607.0902 of the FBCA, generally provides that in the event a person acquires voting shares of the company in excess of 20% of the voting power of all of our issued and outstanding shares, such acquired shares will not have any voting rights unless such rights are restored by the holders of a majority of the votes of each class or series entitled to vote separately, excluding shares held by the person acquiring the control shares or any of our officers or employees who are also directors of the company. Certain acquisitions of shares are exempt from these rules, such as shares acquired pursuant to the laws of intestate succession or pursuant to a gift or testamentary transfer, pursuant to a merger or share exchange effected in compliance with the FBCA if we are a party to the agreement, or pursuant to an acquisition of our shares if the acquisition has been approved by our board of directors before the acquisition. The control share acquisition statute generally applies to any "issuing public corporation," which means a Florida corporation which has:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• One hundred or more shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Its principal place of business, its principal office, or substantial assets within Florida; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Either (i) more than 10% of its shareholders are resident in Florida; (ii) more than 10% of its shares
are owned by residents of Florida; or (iii) one thousand shareholders are resident in Florida.

The affiliated transaction (or so-called "business combination") statute, Section 607.0901 of the FBCA, provides that we may not engage in certain mergers, consolidations, sales of assets, issuances of stock, reclassifications, recapitalizations, and other affiliated transactions with any "interested shareholder" for a period of three years following the time that such shareholder became an interested shareholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the time that such shareholder became an interested shareholder, our board of directors approved
either the affiliated transaction or the transaction which resulted in the shareholder becoming an interested shareholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder,
the interested shareholder owned at least 85% of our voting shares outstanding at the time the transaction commenced; or

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At or subsequent to the time that such shareholder became an interested shareholder, the affiliated
transaction is approved by our board of directors and authorized at an annual or special meeting of shareholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding
voting shares which are not owned by the interested shareholder.

An "interested shareholder" is generally defined as any person who is the beneficial owner of more than 15% of our outstanding voting shares.

The voting requirements set forth above do not apply to a particular affiliated transaction if one or more conditions are met, including, but not limited to, the following: if the affiliated transaction has been approved by a majority of our disinterested directors; if we have not had more than 300 shareholders of record at any time during the three years preceding the date the affiliated transaction is announced; if the interested shareholder has been the beneficial owner of at least 80% of our outstanding voting shares for at least three years preceding the date the affiliated transaction is announced; or if the consideration to be paid to the holders of each class or series of voting shares in the affiliated transaction meets certain requirements of the statute with respect to form and amount, among other things.

***No Shareholder Action by Written Consent***

Our articles require that all shareholder action be taken upon the vote of shareholders at an annual or special meeting of shareholders duly noticed and called in accordance with Florida law, and no such action may be taken without a meeting by written consent of shareholders.

***Classified Board of Directors***

Our articles provide that our board of directors is divided into three classes, with staggered terms of three years each. Each year the term of one class expires. The articles provide that any vacancies on our board of directors can be filled only by the affirmative vote of a majority of the directors in office. Any director so elected will serve until the next election of the class for which he or she is chosen and until his or her successor is duly elected and qualified.

***No Cumulative Voting***

The FBCA provides that shareholders do not have the right to cumulate votes in the election of directors unless the articles of incorporation provide otherwise. Our articles do not provide for cumulative voting.

***Advance Notice Requirements for Shareholder Proposals and Director Nominations; Calling a Special Meeting***

Our bylaws provide that shareholders seeking to bring business before an annual meeting must provide timely notice of their proposal in writing to the corporate secretary. To be timely, a shareholder's notice must have been received on or before December 31 of the year immediately preceding the annual meeting; provided, however, that in the event that the date of the annual meeting is on or after May 1 in any year, notice by the shareholder to be timely must be received not later than the close of business on the day which is determined by adding to December 31 of the year immediately preceding such annual meeting the number of days starting with May 1 and ending on the date of the annual meeting in such year. The bylaws also specify requirements as to the form and content of a shareholder's notice. These provisions may impede shareholders' ability to bring matters before an annual meeting of shareholders or make nominations for directors at an annual meeting of shareholders.

Our bylaws also provide that a special meeting of shareholders can only be called by our chairman of the board of directors, our chief executive officer, our president (in the absence of a chief executive officer), a majority of our board of directors or the holders of 10% or more of all of our votes entitled to be cast on any issue proposed to be considered at the special meeting of shareholders.

------

##### [**Table of Contents**](#toc)
***Authorized but Unissued Shares***

Our authorized but unissued shares of common stock and preferred stock will be available for future issuance without shareholder approval. We could use these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, acquisitions of other businesses or entities and issuances under employee benefit plans. Additionally, we could issue a series of preferred stock that could, depending on its terms, impede the completion of a merger, tender offer or other takeover attempt. Our board of directors will make any determination to issue such shares based on its judgment as to the best interests of us and our shareholders. Our board of directors, in so acting, could issue preferred stock having terms that could discourage an acquisition attempt through which an acquiror may be able to change the composition of the board of directors, including a tender offer or other transaction that some, or a majority, of our shareholders might believe to be in their best interests or in which shareholders might receive a premium over the then-current market price of the common stock.

***Preemptive Rights***

No holder of our common stock has any preemptive or subscription rights to acquire shares of our capital stock.

***Exclusive Jurisdiction***

***Liability and Indemnification of Officers and Directors***

Our articles of incorporation and bylaws provide that we shall indemnify, and advance any and all reasonable expenses incurred by, any current or former director or officer to the fullest extent permitted by law.

Section 607.0831 of the FBCA, provides that a director is not personally liable for monetary damages to the corporation or any other person for any statement, vote, decision to take or not to take action, or any failure to take any action, as a director, unless (1) the director breached or failed to perform his or her duties as a director and (2) the director's breach of, or failure to perform, those duties constitutes (a) a violation of the criminal law, unless the director had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to

------

##### [**Table of Contents**](#toc)
believe his or her conduct was unlawful, (b) a transaction from which the director derived an improper personal benefit, either directly or indirectly, (c) a circumstance under which the liability provisions of Section 607.0834 of the FBCA are applicable, (d) in a proceeding by or in the right of the corporation to procure a judgment in its favor or by or in the right of a shareholder, conscious disregard for the best interest of the corporation, or willful or intentional misconduct, or (e) in a proceeding by or in the right of someone other than the corporation or a shareholder, recklessness or an act or omission which was committed in bad faith or with malicious purpose or in a manner exhibiting wanton and willful disregard of human rights, safety, or property. A judgment or other final adjudication against a director in any criminal proceeding for a violation of the criminal law estops that director from contesting the fact that his or her breach, or failure to perform, constitutes a violation of the criminal law; but does not estop the director from establishing that he or she had reasonable cause to believe that his or her conduct was lawful or had no reasonable cause to believe that his or her conduct was unlawful.

Under Section 607.0851 of the FBCA, a corporation has power to indemnify any person who is a party to any proceeding (other than an action by, or in the right of the corporation), because he or she is or was a director or officer of the corporation against liability incurred in connection with such proceeding, including any appeal thereof, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any proceeding by judgment, order, settlement or conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the corporation or, with respect to any criminal action or proceeding, has reasonable cause to believe that his or her conduct was unlawful.

For purposes of the indemnification provisions of the FBCA, "director" or "officer" means an individual who is or was a director or officer, respectively, of a corporation or who, while a director or officer of the corporation, is or was serving at the corporation's request as a director or officer, manager, partner, trustee, employee, or agent of another domestic or foreign corporation, limited liability company, partnership, joint venture, trust, employee benefit plan, or another enterprise or entity and the terms include, unless the context otherwise requires, the estate, heirs, executors, administrators, and personal representatives of a director or officer.

In addition, under Section 607.0851 of the FBCA, a corporation has the power to indemnify any person, who was or is a party to any proceeding by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director or officer, against expenses and amounts paid in settlement not exceeding, in the judgment of the board of directors, the estimated expense of litigating the proceeding to conclusion, actually and reasonably incurred in connection with the defense or settlement of such proceeding, including any appeal thereof. Such indemnification shall be authorized if such person acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be made under this subsection in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable unless, and only to the extent that, the court in which such proceeding was brought, or any other court of competent jurisdiction, shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

Section 607.0852 of the FBCA provides that a corporation must indemnify an individual who is or was a director or officer who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the individual was a party because he or she is or was a director or officer of the corporation against expenses incurred by the individual in connection with the proceeding.

Section 607.0853 of the FBCA provides that a corporation may, before final disposition of a proceeding, advance funds to pay for or reimburse expenses incurred in connection with the proceeding by an individual who is a party to the proceeding because that individual is or was a director or an officer if the director or officer delivers to the corporation a signed written undertaking of the director or officer to repay any funds advanced if (a) the

------

##### [**Table of Contents**](#toc)
director or officer is not entitled to mandatory indemnification under Section 607.0852; and (b) it is ultimately determined under Section 607.0854 or Section 607.0855 (as described below) that the director or officer has not met the relevant standard of conduct described in Section 607.0851 or the director or officer is not entitled to indemnification under Section 607.0859 (as described below).

Section 607.0854 of the FBCA provides that, unless the corporation's articles of incorporation provide otherwise, notwithstanding the failure of a corporation to provide indemnification, and despite any contrary determination of the board of directors or of the shareholders in the specific case, a director or officer of the corporation who is a party to a proceeding because he or she is or was a director or officer may apply for indemnification or an advance for expenses, or both, to a court having jurisdiction over the corporation which is conducting the proceeding, or to a circuit court of competent jurisdiction. Our articles of incorporation do not provide any such exclusion. After receipt of an application and after giving any notice it considers necessary, the court may order indemnification or advancement of expenses upon certain determinations of the court.

Section 607.0855 of the FBCA provides that, unless ordered by a court under Section 607.0854, a corporation may not indemnify a director or officer under Section 607.0851 unless authorized for a specific proceeding after a determination has been made that indemnification is permissible because the director or officer has met the relevant standard of conduct set forth in Section 607.0851.

Section 607.0857 of the FBCA also provides that a corporation shall have the power to purchase and maintain insurance on behalf of and for the benefit of any person who is or was a director or officer of the corporation against any liability asserted against the person and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify or advance expenses to the individual against such liability under the provisions of Section 607.0857.

Section 607.0858 of the FBCA provides that the indemnification provided pursuant to Section 607.0851 and Section 607.0852, and the advancement of expenses provided pursuant to Section 607.0853, are not exclusive. A corporation may, by a provision in its articles of incorporation, bylaws or any agreement, or by vote of shareholders or disinterested directors, or otherwise, obligate itself in advance of the act or omission giving rise to a proceeding to provide any other or further indemnification or advancement of expenses to any of its directors or officers.

Section 607.0859 of the FBCA provides that, unless ordered by a court under the provisions of Section 607.0854 of the FBCA, a corporation may not indemnify a director or officer under Section 607.0851 or Section 607.0858, or advance expenses to a director or officer under Section 607.0853 or Section 607.0858, if a judgment or other final adjudication establishes that his or her actions, or omissions to act, were material to the cause of action so adjudicated and constitute: (a) willful or intentional misconduct or a conscious disregard for the best interests of the corporation in a proceeding by or in the right of the corporation to procure a judgment in its favor or in a proceeding by or in the right of a shareholder; (b) a transaction in which a director or officer derived an improper personal benefit; (c) a violation of the criminal law, unless the director or officer had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe his or her conduct was unlawful; or (d) in the case of a director, a circumstance under which the liability provisions of Section 607.0834 are applicable (relating to unlawful distributions).

These provisions may have the practical effect in certain cases of eliminating the ability of shareholders to collect monetary damages from our directors and officers. We believe that these provisions are necessary to attract and retain qualified persons to serve as our directors and officers. There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

**Transfer Agent and Registrar** 

The transfer agent and registrar for our common stock will be Equiniti Trust Company, LLC.

------

##### [**Table of Contents**](#toc)
**Listing** 

We intend to apply to list our common stock on the NYSE, under the ticker symbol "XZO."

**Recent Sales of Unregistered Securities** 

In the preceding three years, we have sold and issued the following securities that were not registered under the Securities Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From February 14, 2022 through September 26, 2022, we granted to our employees and directors an
aggregate of 87,500 shares of restricted common stock pursuant to our 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and
issuances did not involve a public offering or under Rule 701 promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as
provided by Rule 701.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From December 18, 2024 through December 22, 2024, we granted to our employees and directors an
aggregate of 2,793,900 shares of restricted common stock pursuant to our 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and
issuances did not involve a public offering or under Rule 701 promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as
provided by Rule 701.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From July 22, 2025 through July 28, 2025, we granted to our employees and directors an aggregate of 88,100 shares
of restricted common stock pursuant to our 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and issuances did not involve a public
offering or under Rule 701 promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as provided by Rule 701.

------

##### [**Table of Contents**](#toc)
**SHARES ELIGIBLE FOR FUTURE SALE** 

Prior to this offering, there was no public market for our common stock, and there can be no assurance that a significant public market for our common stock will develop or be sustained after this offering. Future sales of substantial amounts of our common stock in the public market (including securities convertible into or redeemable, exchangeable or exercisable for shares of common stock) or the perception that such sales may occur or the availability of such shares for sale in the public market, after this offering could adversely affect the prevailing market price of our common stock. Furthermore, because all of our common stock outstanding prior to the completion of this offering (including securities convertible into or redeemable, exchangeable, or exercisable for shares of our common stock) will be subject to the contractual and legal restrictions on resale described below, the sale of a substantial amount of common stock in the public market after these restrictions lapse could materially adversely affect the prevailing market price of our common stock and our ability to raise equity capital in the future. See "Risk Factors—Risks Related to Our Common Stock and the Securities Markets — A substantial portion of the outstanding shares of our common stock after this offering will be restricted from immediate resale, but may be sold on a stock exchange in the near future. The large number of shares eligible for public sale could depress the market price of our common stock."

Upon the closing of this offering, we expect to have shares of our common stock outstanding, assuming that the underwriters have not exercised their option to purchase additional shares of common stock.

All of the shares of common stock sold in this offering will be freely transferable without restriction or further registration under the Securities Act by persons other than "affiliates," as that term is defined in Rule 144 under the Securities Act.

Generally, the balance of our outstanding shares of common stock will be deemed "restricted securities" within the meaning of Rule 144 under the Securities Act, subject to the limitations and restrictions that are described below. Common stock purchased by our affiliates will be "restricted securities" under Rule 144. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which rules are summarized below.

As a result of the lock-up agreements described below and subject to the provisions of Rule 144 or Rule 701, shares of our common stock will be available for sale in the public market as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning on the date of this prospectus, all     shares of our common stock sold in
this offering will be immediately available for sale in the public market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• beginning 181 days after the date of this prospectus,     additional shares of
common stock become eligible for sale in the public market, of which     shares would be held by affiliates and subject to the volume and other restrictions of Rule 144, as described below.

**Lock-up Agreements** 

We have agreed that we will not: (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, or file with, or submit to, the SEC a registration statement under the Securities Act relating to, any shares of our common stock or securities convertible into exchangeable or exercisable for any shares of our common stock, or publicly disclose the intention to make any offer, sale, pledge, loan, disposition, or filing, or (2) enter into any swap or other arrangement that transfers all or a portion of the economic consequences associated with the ownership of any shares of common stock or any such other securities (regardless of whether any of these transactions are to be settled by the delivery of shares of common stock or such other securities, in cash or otherwise), in each case without the prior written consent of Truist Securities, Inc. for a period of 180 days after the date of this prospectus, other than sales of our common stock to be sold in this offering.

------

##### [**Table of Contents**](#toc)
The directors and executive officers of the company have entered into lock-up agreements with the underwriters prior to the commencement of this offering pursuant to which each of these persons or entities, subject to certain limited exceptions, for a period of 180 days after the date of this prospectus, may not, without the prior written consent of Truist Securities, Inc.: (1) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for our common stock; (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of our common stock or other securities, in cash, or otherwise; (3) make any demand for or exercise any right with respect to the registration of any shares of our common stock or any security convertible into or exercisable or exchangeable for our common stock; or (4) publicly disclose the intention to do any of the foregoing.

**Rule 144** 

In general, under Rule 144 as in effect on the date of this prospectus, beginning 90 days after completion of this offering, a person (or persons whose common stock is required to be aggregated) who is an affiliate and who has beneficially owned our common stock for at least six months is entitled to sell in any three-month period a number of shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of shares of our common stock then outstanding, which will equal approximately
    shares immediately after completion of this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume in our common stock on the NYSE during the four calendar weeks preceding the
filing of a notice on Form 144 with respect to such a sale.

Sales by our affiliates under Rule 144 are also subject to manner of sale provisions and notice requirements and to the availability of current public information about us. An "affiliate" is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, an issuer.

Under Rule 144, a person (or persons whose shares are aggregated) who is not deemed to have been an affiliate of ours at any time during the 90 days preceding a sale, and who has beneficially owned the shares proposed to be sold for at least six months (including the holding period of any prior owner other than an affiliate), would be entitled to sell those shares subject only to availability of current public information about us, and after beneficially owning such shares for at least 12 months, would be entitled to sell an unlimited number of shares without restriction. To the extent that our affiliates sell their shares of common stock, other than pursuant to Rule 144 or a registration statement, the purchaser's holding period for the purpose of effecting a sale under Rule 144 commences on the date of transfer from the affiliate.

**Rule 701** 

In general, under Rule 701 as in effect on the date of this prospectus, any of our employees, directors, officers, consultants, or advisors who purchased shares from us in reliance on Rule 701 in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering, or who purchase shares from us after that date upon the exercise of options granted before that date, are eligible to resell such shares 90 days after the effective date of this offering in reliance upon Rule 144. If such person is not an affiliate, such sale may be made subject only to current public information provisions of Rule 144. If such a person is an affiliate, such sale may be made under Rule 144 without compliance with the holding period requirement, but subject to the other Rule 144 restrictions described above.

**Equity Incentive Plans** 

We intend to file one or more registration statements on Form S-8 under the Securities Act to register all shares of common stock subject to outstanding stock options and common stock issued or issuable under our stock

------

##### [**Table of Contents**](#toc)
plans. We expect to file the registration statement covering shares offered pursuant to our stock plans shortly after the date of this prospectus, permitting the resale of such shares by non-affiliates in the public market without restriction under the Securities Act and the sale by affiliates in the public market, subject to compliance with the resale provisions of Rule 144.

------

##### [**Table of Contents**](#toc)
**MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S.** 

**HOLDERS OF OUR COMMON STOCK** 

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S. Holders (as defined below) of the ownership and disposition of our common stock issued pursuant to this offering; it is not intended to be a complete analysis of all potential tax consequences. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), final, temporary, and proposed Treasury Regulations, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service (the "IRS"), in each case as in effect as of the date of this prospectus. These authorities may change or be subject to differing interpretations, and any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Non-U.S. Holder of our common stock. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the ownership and disposition of our common stock.

This discussion is limited to a Non-U.S. Holder that holds our common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Non-U.S. Holder's particular circumstances, including the impact of the alternative minimum tax, the special tax accounting rules in Section 451(b) of the Code or the Medicare contribution tax on net investment income. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates and former citizens or long-term residents of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding our common stock as part of a straddle, or other risk reduction strategy or as part of a
conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks, insurance companies, and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• brokers, dealers, or certain electing traders in securities that use a mark-to-market method of tax accounting for their securities positions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "controlled foreign corporations," "passive foreign investment companies," and
corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes and
other pass-through entities (and investors in such entities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons deemed to sell our common stock under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-qualified retirement plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all
of the interests of which are held by qualified foreign pension funds.

If an entity treated as a partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Partnerships holding our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

------

##### [**Table of Contents**](#toc)
**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.** 

**Definition of a Non-U.S. Holder** 

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our common stock that is an individual, corporation, estate or trust and is not a "U.S. person." A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation created or organized under the laws of the United States, any state thereof, or the District of
Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more
"United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions** 

As described in the section entitled "Dividend Policy," we do not anticipate declaring or paying dividends to holders of our common stock in the foreseeable future. However, if we do make distributions of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a nontaxable return of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its common stock, but not below zero, and any excess will be treated as capital gain and will be treated as described below under "— Sale or Other Taxable Disposition."

Subject to the discussion below on effectively connected income, dividends paid to a Non-U.S. Holder of our common stock will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder will be required to furnish a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate of withholding). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the rates applicable to U.S. persons. A Non-U.S. Holder that is a corporation also may be subject to a branch profits

------

##### [**Table of Contents**](#toc)
tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**Sale or Other Taxable Disposition** 

Subject to the discussion below under "— Information Reporting and Backup Withholding" and "— Additional Withholding Tax Under FATCA", a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the gain is effectively connected with the Non-U.S. Holder's
conduct of a trade or business within the United States (or, if applicable, is attributable to a permanent establishment maintained by such non-United States Holder in the United States under the relevant
income tax treaty);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Non-U.S. Holder is a nonresident alien individual present in the
United States for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our common stock constitutes a U.S. real property interest (a "USRPI") by reason of our being treated
as a U.S. real property holding corporation (a "USRPHC") for U.S. federal income tax purposes at any applicable time within the shorter of the five year period preceding the Non-U.S. Holder's
disposition of, or the Non-U.S. Holder's holding period for, our common stock.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the rates applicable to U.S. persons unless an applicable income tax treaty provides otherwise. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which generally may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, generally a corporation is a USRPHC if the fair market value of its USRPIs equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in trades or businesses (all as determined for U.S. federal income tax purposes). We believe we currently are not, and we do not anticipate becoming, a USRPHC. Because the determination of whether we are a USRPHC depends, however, on the fair market value of our USRPIs relative to the fair market value of all our real property interests and our other business assets, there can be no assurance that we currently are not a USRPHC or will not become one in the future. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U.S. Holder of our common stock will not be subject to U.S. federal income tax if our common stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder owned, actually and constructively, 5% or less of our common stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the Non-U.S. Holder's holding period.

Non-U.S. Holders should consult their tax advisors regarding potentially applicable income tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding** 

Information returns are required to be filed with the IRS in connection with any dividends on our common stock paid to a Non-U.S. Holder whether or not withholding is required. Copies of the information returns reporting

------

##### [**Table of Contents**](#toc)
such interest, dividends, and withholding may also be made available to the tax authorities in the country in which a Non-U.S. Holder resides under the provisions of an applicable income tax treaty or agreement with the relevant tax authorities. Payments of dividends on our common stock will not be subject to backup withholding, provided the applicable withholding agent does not have actual knowledge or reason to know the beneficial owner is a United States person and the Non-U.S. Holder either certifies its non-U.S. status, such as by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI, or other applicable documentation, or otherwise establishes an exemption. Proceeds of the sale or other taxable disposition of our common stock within the United States or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the applicable withholding agent receives the certification described above and does not have actual knowledge or reason to know that such beneficial owner is a United States person, or otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker generally will not be subject to backup withholding or information reporting.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

**Additional Withholding Tax Under FATCA** 

Sections 1471 to 1474 of the Code (such sections commonly referred to as the Foreign Account Tax Compliance Act, or "FATCA") and the Treasury Regulations and administrative guidance thereunder impose a 30% withholding tax on certain types of payments made to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), including, in some cases, when such foreign financial institution or non-financial foreign entity acts as an intermediary, unless they meet the information reporting requirements of FATCA. To avoid withholding, a foreign financial institution generally will need to enter into an agreement with the IRS that states that it will provide the IRS certain information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders (including certain debt and equity holders), comply with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with respect to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions, non-compliant non-financial foreign entities, or account holders who fail to provide the required information, and determine certain other information as to its account holders. An intergovernmental agreement between the United States and an applicable foreign country, or future Treasury regulations, may modify these requirements. A non-financial foreign entity generally will need to provide either the name, address, and taxpayer identification number of each substantial U.S. owner, or certifications of no substantial U.S. ownership, to avoid withholding, unless certain exceptions apply.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.

------

##### [**Table of Contents**](#toc)
**UNDERWRITING** 

We and the underwriters named below have entered into an underwriting agreement with respect to the shares being offered. Truist Securities, Inc. is acting as representative of the underwriters. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to the underwriters, and each underwriter has severally agreed to purchase, at the public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus, the number of shares of common stock listed next to its name in the following table:

---

| | |
|:---|:---|
| Underwriters | Number of<br>Shares |
|  Truist Securities, Inc. |  |
|  Citizens JMP Securities, LLC |  |
|  William Blair & Company, L.L.C. |  |
|  Fifth Third Securities, Inc. |  |
|  Total |  |

---

The underwriters are committed to purchase all the shares of common stock offered by us if they purchase any shares. The underwriting agreement also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may also be increased or the offering may be terminated.

The underwriters have an option to buy up to additional shares of common stock from us to cover sales of shares by the underwriters which exceed the number of shares specified in the table above. The underwriters have 30 days from the date of this prospectus to exercise this option to purchase additional shares. If any shares are purchased with this option to purchase additional shares, the underwriters will purchase shares in approximately the same proportion as shown in the table above. If any additional shares of common stock are purchased, the underwriters will offer the additional shares on the same terms as those on which the shares are being offered.

The underwriting fee is equal to the public offering price per share of common stock less the amount paid by the underwriters to us per share of common stock. The underwriting fee is $ per share. The following table shows the per share and total underwriting discounts and commissions to be paid to the underwriters assuming both no exercise and full exercise of the underwriters' option to purchase additional shares.

---

| | | |
|:---|:---|:---|
| Paid by Us | No Exercise | Full Exercise |
|  Per share | $| $|
|  Total | $| $|

---

We estimate that the total expenses paid by us for this offering, excluding underwriting discounts and commissions, will be approximately $ million. We have agreed to reimburse the underwriters for expenses related to any applicable state securities filings and to the Financial Industry Regulatory Authority incurred by them in connection with this offering in an amount up to $.

A prospectus in electronic format may be made available on the web sites maintained by one or more underwriters participating in the offering. The underwriters may agree to allocate a number of shares to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representative to underwriters that may make Internet distributions on the same basis as other allocations.

We have agreed that we will not: (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, or file with, or submit to, the SEC a registration statement under the Securities Act relating to, any shares of our common stock or securities convertible into exchangeable or exercisable for any shares of our common stock, or publicly disclose the intention to make any offer, sale, pledge, loan, disposition, or filing, or (2) enter into any swap or other arrangement that transfers all or a portion of the economic consequences associated with the ownership of any shares of common stock or any such other

------

##### [**Table of Contents**](#toc)
securities (regardless of whether any of these transactions are to be settled by the delivery of shares of common stock or such other securities, in cash or otherwise), in each case without the prior written consent of Truist Securities, Inc. for a period of 180 days after the date of this prospectus, other than sales of our common stock to be sold in this offering.

The directors and executive officers of the company, as well as holders of all of the company's currently outstanding shares, have entered into lock-up agreements with the underwriters prior to the commencement of this offering pursuant to which each of these persons or entities, subject to certain limited exceptions, for a period of 180 days after the date of this prospectus, may not, without the prior written consent of Truist Securities, Inc.: (1) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of our common stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for our common stock; (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of our common stock or other securities, in cash, or otherwise; (3) make any demand for or exercise any right with respect to the registration of any shares of our common stock or any security convertible into or exercisable or exchangeable for our common stock; or (4) publicly disclose the intention to do any of the foregoing.

We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act.

We intend to apply to list our common stock listed on the NYSE under the symbol "XZO".

The underwriters have advised us that, pursuant to Regulation M of the Securities Act of 1933, they may also engage in other activities that stabilize, maintain or otherwise affect the price of the common stock, including the imposition of penalty bids. This means that if the representative of the underwriters purchases common stock in the open market in stabilizing transactions or to cover short sales, the representative can require the underwriters that sold those shares as part of this offering to repay the underwriting discount received by them.

These activities may have the effect of raising or maintaining the market price of the common stock or preventing or retarding a decline in the market price of the common stock, and, as a result, the price of the common stock may be higher than the price that otherwise might exist in the open market. If the underwriters commence these activities, they may discontinue them at any time. The underwriters may carry out these transactions on the NYSE, in the over the counter market or otherwise.

------

##### [**Table of Contents**](#toc)
Prior to this offering, there has been no public market for our common stock. The initial public offering price will be determined by negotiations between us and the representatives of the underwriters. In determining the initial public offering price, we and the representative of the underwriters expect to consider a number of factors including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information set forth in this prospectus and otherwise available to the representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our prospects and the history and prospects for the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an assessment of our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our prospects for future earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general condition of the securities markets at the time of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors deemed relevant by the underwriters and us.

Neither we nor the underwriters can assure investors that an active trading market will develop for our shares of common stock, or that the shares will trade in the public market at or above the initial public offering price.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage, and other financial and non-financial activities and services. Certain of the underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to us and to persons and entities with relationships with us, for which they received or will receive customary fees and expenses.

In the ordinary course of their various business activities, the underwriters and their respective affiliates, officers, directors, and employees may purchase, sell, or hold a broad array of investments and actively traded securities, derivatives, loans, commodities, currencies, credit default swaps, and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities, and/or instruments of our company (directly, as collateral securing other obligations or otherwise) or persons and entities with relationships with our company. The underwriters and their respective affiliates may also communicate independent investment recommendations, market color, or trading ideas or publish or express independent research views in respect of such assets, securities, or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities, and instruments.

Certain of the underwriters and their affiliates have provided in the past to us and our affiliates and may provide from time to time in the future certain commercial banking, financial advisory, investment banking and other services for us and such affiliates in the ordinary course of their business, for which they have received and may continue to receive customary fees and commissions. In addition, from time to time, certain of the underwriters and their affiliates may effect transactions for their own account or the account of customers, and hold on behalf of themselves or their customers, long or short positions in our debt or equity securities or loans, and may do so in the future.

**Directed Share Program** 

At our request, the underwriters have reserved up to 5% of the shares of common stock offered by this prospectus for sale, at the initial public offering price, to certain individuals associated with us and our stockholders. The sales will be administered by Truist Securities, Inc., an underwriter in this offering, and its affiliates. The number of shares of common stock available for sale to the general public will be reduced to the extent these persons purchase such reserved shares. Any reserved shares that are not so purchased will be offered by the underwriters to the general public on the same basis as the other shares of common stock offered by this prospectus.

------

##### [**Table of Contents**](#toc)
Other than the underwriting discount described on the front cover of this prospectus, the underwriters will not be entitled to any commission with respect to shares of common stock sold pursuant to the directed share program. We will agree to indemnify the underwriters against certain liabilities and expenses, including liabilities under the Securities Act, in connection with sales of the shares of common stock reserved for the directed share program.

**Selling Restrictions** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

***Canada***

The shares may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the shares must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

***European Economic Area***

In relation to each Member State of the European Economic Area (each, a "Relevant State"), no shares have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the Prospectus Regulation (as defined below), except that offers of securities may be made to the public in that Relevant State at any time under the following exemptions under the Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any legal entity which is a qualified investor as defined under the Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to fewer than 150 natural or legal persons (other than qualified investors as defined under the Prospectus
Regulation), subject to obtaining the prior consent of the representative; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other circumstances falling within Article 1(4) of the Prospectus Regulation;

------

##### [**Table of Contents**](#toc)
provided that no such offer of the shares shall require us or the representative to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase any shares, and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

***United Kingdom***

Each underwriter has represented and agreed that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an
invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000(the "FSMA")) received by it in connection with the issue or sale of the shares in
circumstances in which Section 21(1) of the FSMA does not apply to us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it
in relation to the shares in, from or otherwise involving the United Kingdom.

No shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares which has been approved by the Financial Conduct Authority, except that the shares may be offered to the public in the United Kingdom at any time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to any legal entity which is a qualified investor as defined under Article 2 of the UK Prospectus Regulation
(as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK
Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in any other circumstances falling within Section 86 of the FSMA;

provided that no such offer of the shares shall require us or the representative to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares and the expression "UK Prospectus Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

This prospectus is only for distribution to and directed at: (i) in the United Kingdom, persons having professional experience in matters relating to investments falling within Article 19(5) of the FSMA (Financial Promotion) Order 2005, as amended, or the Order, and high net worth entities falling within Article 49(2)(a) to (d) of the Order; (ii) persons who are outside the United Kingdom; and (iii) any other person to whom it can otherwise be lawfully distributed (all such persons together, "Relevant Persons"). Any investment or investment activity to which this prospectus relates is available only to and will be engaged in only with Relevant Persons, and any person who is not a Relevant Person should not rely on it.

***Hong Kong***

The securities have not been offered or sold and will not be offered or sold in Hong Kong, by means of any document, other than (a) to "professional investors" as defined in the Securities and Futures Ordinance (Cap.

------

##### [**Table of Contents**](#toc)
571) of Hong Kong and any rules made under that Ordinance or (b) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of that Ordinance. No advertisement, invitation or document relating to the securities has been or may be issued or has been or may be in the possession of any person for the purposes of issue, whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to securities which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" as defined in the Securities and Futures Ordinance and any rules made under that Ordinance.

***Japan***

The securities have not been and will not be registered under the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948, as amended) and, accordingly, will not be offered or sold, directly or indirectly, in Japan, or for the benefit of any Japanese Person or to others for re-offering or resale, directly or indirectly, in Japan or to any Japanese Person, except in compliance with all applicable laws, regulations and ministerial guidelines promulgated by relevant Japanese governmental or regulatory authorities in effect at the relevant time. For the purposes of this paragraph, "Japanese Person" means any person resident in Japan, including any corporation or other entity organized under the laws of Japan.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, the securities were not offered or sold or caused to be made the subject of an invitation for subscription or purchase and will not be offered or sold or caused to be made the subject of an invitation for subscription or purchase, and this prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the securities, has not been circulated or distributed, nor will it be circulated or distributed, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time, (the "SFA") pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where the securities are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole
business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each
beneficiary of the trust is an individual who is an accredited investor;

securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the securities pursuant to an offer made under Section 275 of the SFA except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to an institutional investor or to a relevant person, or to any person arising from an offer referred to in
Section 275(1A) or Section 276(4)(i)(B) of the SFA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where no consideration is or will be given for the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where the transfer is by operation of law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as specified in Section 276(7) of the SFA.

------

##### [**Table of Contents**](#toc)
***Switzerland***

The shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX"), or on any other stock exchange or regulated trading facility in Switzerland. This prospectus has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this prospectus nor any other offering or marketing material relating to the shares or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this prospectus nor any other offering or marketing material relating to us, the offering, or the shares have been or will be filed with or approved by any Swiss regulatory authority. In particular, this prospectus will not be filed with, and the offering of shares will not be supervised by, the Swiss Financial Market Supervisory Authority ("FINMA", or the "FINMA"), and the offering of shares has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the shares.

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this prospectus nor taken steps to verify the information set forth herein and has no responsibility for the prospectus. The shares to which this prospectus relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the shares offered should conduct their own due diligence on the shares. If you do not understand the contents of this prospectus you should consult an authorized financial advisor.

***Australia***

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission, in relation to the offering. This prospectus does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001, or the Corporations Act, and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the shares may only be made to persons, or Exempt Investors, who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act) or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the shares without disclosure to investors under Chapter 6D of the Corporations Act.

The shares applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of 12 months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring the shares must observe such Australian on-sale restrictions.

This prospectus contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this prospectus is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

------

##### [**Table of Contents**](#toc)
***Israel***

In the State of Israel this prospectus shall not be regarded as an offer to the public to purchase shares of common stock under the Israeli Securities Law, 5728 - 1968, which requires a prospectus to be published and authorized by the Israel Securities Authority, if it complies with certain provisions of Section 15 of the Israeli Securities Law, 5728 - 1968, including, inter alia, if: (i) the offer is made, distributed or directed to not more than 35 investors, subject to certain conditions, or the Addressed Investors; or (ii) the offer is made, distributed or directed to certain qualified investors defined in the First Addendum of the Israeli Securities Law, 5728 - 1968, subject to certain conditions (the "Qualified Investors"). The Qualified Investors shall not be taken into account in the count of the Addressed Investors and may be offered to purchase securities in addition to the 35 Addressed Investors. The company has not and will not take any action that would require it to publish a prospectus in accordance with and subject to the Israeli Securities Law, 5728 - 1968. We have not and will not distribute this prospectus or make, distribute or direct an offer to subscribe for our common stock to any person within the State of Israel, other than to Qualified Investors and up to 35 Addressed Investors.

Qualified Investors may have to submit written evidence that they meet the definitions set out in of the First Addendum to the Israeli Securities Law, 5728 - 1968. In particular, we may request, as a condition to be offered common stock, that Qualified Investors will each represent, warrant and certify to us and/or to anyone acting on our behalf: (i) that it is an investor falling within one of the categories listed in the First Addendum to the Israeli Securities Law, 5728 - 1968; (ii) which of the categories listed in the First Addendum to the Israeli Securities Law, 5728 - 1968 regarding Qualified Investors is applicable to it; (iii) that it will abide by all provisions set forth in the Israeli Securities Law, 5728 - 1968 and the regulations promulgated thereunder in connection with the offer to be issued common stock; (iv) that the shares of common stock that it will be issued are, subject to exemptions available under the Israeli Securities Law, 5728 - 1968: (a) for its own account; (b) for investment purposes only; and (c) not issued with a view to resale within the State of Israel, other than in accordance with the provisions of the Israeli Securities Law, 5728 - 1968; and (d) that it is willing to provide further evidence of its Qualified Investor status. Addressed Investors may have to submit written evidence in respect of their identity and may have to sign and submit a declaration containing, inter alia, the Addressed Investor's name, address and passport number or Israeli identification number.

------

##### [**Table of Contents**](#toc)
**LEGAL MATTERS** 

The validity of the shares of common stock offered hereby will be passed upon for us by Foley & Lardner LLP, Tampa, Florida. Certain legal matters in connection with this offering will be passed upon for the underwriters by DLA Piper LLP (US), New York, New York.

**EXPERTS** 

The consolidated financial statements of Exzeo Group, Inc. and Subsidiaries as of December 31, 2024 and 2023, and for each of the years in the three-year period ended December 31, 2024, have been audited by Forvis Mazars, LLP, independent registered public accounting firm, as set forth in their report thereon, included in this registration statement. Such consolidated financial statements have been included herein in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION** 

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered by this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all the information set forth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and regulations of the SEC. For further information with respect to us and our common stock, we refer you to the registration statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC maintains an internet website that contains reports and other information about issuers, like us, that file electronically with the SEC. The address of that website is *www.sec.gov*. You may also request copies of those documents, at no cost to you, by contacting us at the following address:

Exzeo Group, Inc.

1000 Century Park Dr,

Tampa, Florida 33607

813-776-1000

On the closing of this offering, we will be subject to the information reporting requirements of the Exchange Act and other reporting requirements of the NYSE, and we will file reports and other information with the SEC as required and make any proxy statements available to the holders of our capital stock as required by the rules of the NYSE. These reports, proxy statements and other information will be available for inspection and copying at the public reference room and website of the SEC referred to above.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Index to the Consolidated Financial Statements** 

---

| | |
|:---|:---|
|  | **Page** |
|  **Consolidated Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm](#tx28749_23) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2024 and 2023](#tx28749_24) | F-3 |
|  [Consolidated Statements of Income for the Years Ended December 31, 2024, 2023 and 2022](#tx28749_25) | F-5 |
|  [Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023 <br>and 2022](#tx28749_26) | F-6 |
|  [Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2024, 2023 <br>and 2022](#tx28749_27) | F-7 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 <br>and 2022](#tx28749_28) | F-8 |
|  [Notes to Consolidated Financial Statements for the Years Ended December 31, 2024, 2023 <br>and 2022](#tx28749_29) | F-10 |
|  **Unaudited Consolidated Financial Statements** |  |
|  [Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024](#tx28749_30) | F-45 |
|  [Consolidated Statements of Income for the Six Months Ended June 30, 2025 and 2024 (unaudited)](#tx28749_31) | F-46 |
|  [Consolidated Statements of Comprehensive Income for the Six Months Ended June 30, 2025 and 2024 (unaudited)](#tx28749_32) | F-47 |
|  [Consolidated Statements of Stockholders' Equity for the Six Months Ended June 30, 2025 and 2024 (unaudited)](#tx28749_33) | F-48 |
|  [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)](#tx28749_34) | F-49 |
|  [Notes to Consolidated Financial Statements (unaudited)](#tx28749_35) | F-51 |

---

------

##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the Stockholders and the Board of Directors of Exzeo Group, Inc. and Subsidiaries

***Opinion on the Consolidated Financial Statements***

We have audited the accompanying consolidated balance sheets of Exzeo Group, Inc. and Subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Forvis Mazars, LLP

We have served as the Company's auditor since 2020.

Charlotte, North Carolina

June 3, 2025

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Balance Sheets** 

**(Dollar amounts in thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023\*** |
|  **Assets** |  |  |
|  **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $54502 | $15055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from related parties | 2581 | 1806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expense | 609 | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current contract cost assets | 6397 | 3223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable | 3099 | 7323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 42 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets of discontinued operations |  | 243106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | 67230 | 270996 |
|  **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 10752 | 9779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 8052 | 7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current contract cost assets | 3132 | 3223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 275 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current assets of discontinued operations |  | 333270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-current assets | 22211 | 354011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $89441 | $625007 |
|  **Liabilities, Redeemable Preferred Stock and Stockholders' Equity** |  |  |
|  **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current contract liabilities | $47210 | $30727 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 4320 | 3913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 2134 | 1540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 2132 | 1735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to related parties | 580 | 1641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current liabilities of discontinued operations |  | 295240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | 56376 | 334796 |
|  **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current contract liabilities | 8366 | 9353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 6219 | 6048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Note payable—related party |  | 58146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes, net | 2121 | 596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 852 | 468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current liabilities of discontinued operations |  | 144735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current liabilities** | 17558 | 219346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 73934 | 554142 |
|  Commitments and contingencies (Note 17) |  |  |
|  Redeemable Series A preferred stock ($0.001 par value, 38,502,000 shares authorized; 10,000,000 shares issued and outstanding at December 31, 2023; redemption amount $100,000 at December 31, 2023) (Note 14) |  | 96160 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Balance Sheets—(Continued)** 

**(Dollar amounts in thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023\*** |
|  **Stockholders' equity:** |  |  |
|  Common stock ($0.001 par value, 184,000,000 shares authorized, 82,810,089 and 80,370,505 shares issued and outstanding as of December 31, 2024 and 2023, respectively) | 83 | 80 |
|  Additional paid-in capital | 72755 | 68931 |
|  Accumulated deficit | (57331) | (92503) |
|  Accumulated other comprehensive loss, net of taxes |  | (1803) |
|  **Total stockholders' equity (deficit)** | 15507 | (25295) |
|  **Total liabilities, redeemable preferred stock and stockholders' equity** | $89441 | $625007 |

---

\* See Note 2 — "Summary of Significant Accounting Policies" and Note 3 — "Discontinued Operations" for details on the retrospective changes in presentation of these consolidated financial statements due to the sale of TTIC (as defined below) and discontinued operations reporting.

See accompanying Notes to Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Income** 

**(Dollar amounts in thousands, except per share amounts)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023\*\*\*** | **2022\*\*\*** |
|  Revenue\* | $133948 | $88333 | $45631 |
|  Cost of revenue \*\* | 80739 | 71061 | 71740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit (loss)** | 53209 | 17272 | (26109) |
|  **Operating expenses** |  |  |  |
|  Selling, general and administrative | 8343 | 7898 | 7339 |
|  Research and development | 6514 | 6528 | 4130 |
|  Depreciation and amortization | 335 | 292 | 175 |
|  **Total operating expenses** | 15192 | 14718 | 11644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income (loss)** | 38017 | 2554 | (37753) |
|  Investment income | 548 | 52 | 30 |
|  Interest expense | (3329) | (1723) | (882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) from continuing operations, before taxes** | $35236 | $883 | $(38605) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) from continuing operations | 9168 | (12018) | 3409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) from continuing operations, after taxes** | $26068 | $12901 | $(42014) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) from discontinued operations, before taxes** | $25854 | $11530 | $(23178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) from discontinued operations | 6601 | 2969 | (5876) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) from discontinued operations, after taxes** | $19253 | $8561 | $(17302) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | $45321 | $21462 | $(59316) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock | (10149) | (9370) | (9105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss) attributable to common stockholders** | $35172 | $12092 | $(68421) |
|  Basic and diluted earnings (losses) per share from continuing operations | $0.20 | $0.04 | $(0.63) |
|  Basic and diluted earnings (losses) per share from discontinued operations | $0.24 | $0.11 | $(0.21) |
|  **Basic and diluted earnings (losses) per share** | $0.44 | $0.15 | $(0.84) |

---

\* Amounts include revenues earned from related parties of $133,448, $88,333 and $45,631 for the years ended December 31, 2024, 2023 and 2022, respectively. See Note 4 — "Revenue" and Note 7 — "Related Party Transactions" for additional details. 

\*\* Amounts include costs incurred pursuant to related party transactions of $21,148, $14,568 and $16,754 for the years ended December 31, 2024, 2023 and 2022, respectively. See Note 7 — "Related Party Transactions" for additional details. 

\*\*\* See Note 2 — "Summary of Significant Accounting Policies" and Note 3 — "Discontinued Operations" for details on the retrospective changes in presentation of these consolidated financial statements due to the sale of TTIC (as defined below) and discontinued operations reporting.

See accompanying Notes to Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Comprehensive Income** 

**(Dollar amounts in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Net income (loss) | $45321 | $21462 | $(59316) |
|  Other comprehensive income (loss): |  |  |  |
|  Change in unrealized gains on investments: |  |  |  |
|  Net unrealized gains (losses) arising during the period | 307 | 2547 | (5048) |
|  Reclassification adjustment for net realized losses |  | 10 | 32 |
|  Net change in unrealized gains (losses) | 307 | 2557 | (5016) |
|  Deferred income taxes | (77) | 603 | 13 |
|  Total other comprehensive income (loss), net of income taxes | 230 | 3160 | (5003) |
|  Comprehensive income (loss) | $45551 | $24622 | $(64319) |

---

See accompanying Notes to Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Stockholders' Equity** 

**For the Years Ended December 31, 2024, 2023 and 2022** 

**(Dollar amounts in thousands)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss),**<br>**Net of Tax** | **Total<br>Stockholders'**<br>**Equity<br>(Deficit)** |
|  Balance at December 31, 2021 | 81278339 | $81 | $60741 | $(36174) | $40 | 24688 |
|  Net income (loss) |  |  |  | (59316) |  | (59316) |
|  Total other comprehensive income (loss), net of income taxes |  |  |  |  | (5003) | (5003) |
|  Issuance of restricted stock | 87500 |  |  |  |  |  |
|  Forfeiture of restricted stock | (184050) |  |  |  |  |  |
|  Repurchase and retirement of common stock | (69876) |  | (406) |  |  | (406) |
|  Non-cash capital contributions from parent |  |  | 2509 |  |  | 2509 |
|  Preferred stock dividends |  |  |  | (9105) |  | (9105) |
|  Stock-based compensation |  |  | 3512 |  |  | 3512 |
|  Balance at December 31, 2022 | 81111913 | $81 | $66356 | $(104595) | $(4963) | $(43121) |
|  Net income (loss) |  |  |  | 21462 |  | 21462 |
|  Total other comprehensive income (loss), net of income taxes |  |  |  |  | 3160 | 3160 |
|  Forfeiture of restricted stock | (592545) | (1) |  |  |  | (1) |
|  Repurchase and retirement of common stock | (148863) |  | (352) |  |  | (352) |
|  Preferred stock dividends |  |  |  | (9370) |  | (9370) |
|  Stock-based compensation |  |  | 2927 |  |  | 2927 |
|  Balance at December 31, 2023 | 80370505 | $80 | $68931 | $(92503) | $(1803) | $(25295) |
|  Net income (loss) |  |  |  | 45321 |  | 45321 |
|  Total other comprehensive income (loss), net of income taxes |  |  |  |  | 230 | 230 |
|  Sale of discontinued operations, net of tax |  |  | (2457) |  | 1573 | (884) |
|  Non-cash capital contribution from parent |  |  | 3499 |  |  | 3499 |
|  Issuance of restricted stock | 2793900 | 3 | (3) |  |  |  |
|  Forfeiture of restricted stock | (24983) |  |  |  |  |  |
|  Repurchase and retirement of common stock | (329333) |  | (481) |  |  | (481) |
|  Preferred stock dividends |  |  |  | (10149) |  | (10149) |
|  Stock-based compensation |  |  | 3266 |  |  | 3266 |
|  Balance at December 31, 2024 | 82810089 | $83 | $72755 | $(57331) | $— | $15507 |

---

See accompanying Notes to Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Cash Flows** 

**(Dollar amounts in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023 \*** | **2022 \*** |
|  Cash flows from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $45321 | $21462 | $(59316) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (income) loss from discontinued operations | (19253) | (8561) | 17302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) from continuing operations | 26068 | 12901 | (42014) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 3379 | 2927 | 3512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 2361 | 2202 | 1688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 1525 | (5732) | 4812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency remeasurement losses | 132 | 50 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-cash items |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from/to related parties | (1836) | (3048) | 2606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (157) | 68 | (149) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract cost assets | (3083) | (1636) | (4810) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes | 4224 | (2493) | (1892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 15496 | 4653 | 22632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 407 | (807) | 298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 442 | 607 | (649) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 339 | 157 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (125) | 7 | (117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases, net | 94 | 297 | (92) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 49266 | 10153 | (13990) |
|  Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (3334) | (3247) | (3454) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution to TTIC |  |  | (17994) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (3334) | (3247) | (21448) |
|  Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of redeemable preferred stock | (100000) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of notes payable - related party | 100000 |  | 17994 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of common stock | (481) | (352) | (406) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of long term debt | (2994) | (9) | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends paid to redeemable preferred stock | (2923) | (6763) | (5508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | (6398) | (7124) | 12066 |
|  Effect of exchange rate changes on cash | (87) | (42) | (98) |
|  Net cash provided by (used in) continuing operations | 39447 | (260) | (23470) |
|  Cash flows from discontinued operations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities from discontinued operations | 142645 | 49216 | (2773) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities from discontinued operations | (189186) | (13350) | (220375) |

---

(continued)

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Cash Flows – (Continued)** 

**(Dollar amounts in thousands)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023 \*** | **2022 \*** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities from discontinued operations |  |  | 17994 |
|  Net cash provided by (used in) discontinued operations | (46541) | 35866 | (205154) |
|  Net increase (decrease) in cash, cash equivalents, and restricted cash | (7094) | 35606 | (228624) |
|  Cash, cash equivalents, and restricted cash at beginning of period - continuing operations | 15055 | 15315 | 38785 |
|  Cash, cash equivalents, and restricted cash at beginning of period - discontinued operations | 46541 | 10675 | 215829 |
|  Cash, cash equivalents, and restricted cash at beginning of period | 61596 | 25990 | 254614 |
|  Cash, cash equivalents, and restricted cash at end of period - continuing operations | 54502 | 15055 | 15315 |
|  Cash, cash equivalents, and restricted cash at end of period - discontinued operations |  | 46541 | 10675 |
|  Cash, cash equivalents, and restricted cash at end of period | $54502 | $61596 | $25990 |
|  Supplemental disclosure of cash flow information: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes | $14261 | $866 | $781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $3472 | $1678 | $797 |
|  Non-cash investing and financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extinguishment of notes payable | $155000 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution from parent | $2615 | $— | $2509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from maturities of fixed-maturity securities | $— | $50000 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain (loss) on investment in available-for-sale securities, net of tax | $— | $3160 | $(5003) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contingent consideration payable | $— | $— | $(232) |

---

\*See Note 2 — "Summary of Significant Accounting Policies" and Note 3 — "Discontinued Operations" for details on the retrospective changes in presentation of these consolidated financial statements due to the sale of TTIC (as defined below) and discontinued operations reporting.

See accompanying Notes to Consolidated Financial Statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 1 — Nature of Operations** 

Exzeo Group, Inc. ("Exzeo"), formerly known as TypTap Insurance Group, Inc. ("TTIG"), was established in 2020 and is a subsidiary of HCI Group, Inc. ("HCI"). On February 27, 2025, TTIG filed articles of amendment to its Third Amended and Restated Articles of Incorporation changing its name from TypTap Insurance Group, Inc. to Exzeo Group, Inc. Exzeo and its consolidated subsidiaries (collectively, the "Company") operate as a technology and services provider to the property and casualty ("P&C") insurance industry.

The Company is currently engaged in the business of providing turnkey insurance technology and operations solutions to customers based on a proprietary platform of purpose-built software and data-analytics applications that are specifically designed for companies in the P&C ecosystem (the "Exzeo Business"). Prior to July 2024, the Company was also engaged in the P&C insurance business, primarily focusing on homeowners' multi-peril policies in the state of Florida, via its subsidiary TypTap Insurance Company ("TTIC"). On July 1, 2024, Exzeo transferred all 2,500,000 outstanding shares of TTIC to HCI in exchange for the settlement of promissory notes in a transaction that was accounted for as a common control transaction. See Note 3 — "Discontinued Operations" for additional details.

The Company's platform of products and services is highly scalable and poised to continue to optimize the performance of insurance markets, to the benefit of policyholders, capital providers, as well as the overall insurance value chain. The advanced data analytics algorithms and software tools enable insurance carriers to maximize the efficiency of their systems, optimize underwriting outcomes and ultimately serve their customers more effectively. The Company's contracts with customers are variable and typically based on a percentage of premium written through the Company's software platform. This fee structure allows customers to scale while optimizing for operational efficiencies.

The Company's software platform includes configurable software and data analytics applications that are purpose-built to serve the insurance value chain, from quoting and underwriting, policy management, claims management, geolocation visualization tools, as well as financial reporting. Key products currently in use or under development include *AtlasViewer*<sup>®</sup>, an online mapping and data visualization platform, *Harmony<sup>TM</sup>*, a next generation policy administration system, *SAMS<sup>TM</sup>*, a policy administration platform, and *ClaimColony<sup>TM</sup>*, an application that provides intelligent automation and management of insurance claims.

The Company provides operational services through Exzeo Insurance Services, Inc. ("EIS"), a wholly owned subsidiary of Exzeo, which performs end-to-end policy administration including underwriting support, application processing, policyholder servicing, premium collection and claims administration. The Company also operates Dark Horse Re, LLC ("Dark Horse"), a reinsurance broker subsidiary formed in November 2023, that arranges and negotiates reinsurance contracts for insurance company clients.

Software development and data analytics capabilities are supported by Exzeo USA, Inc. ("Exzeo USA") and Cypress Tech Development Company, Inc. ("Cypress Tech"), both of which are subsidiaries that design and maintain components of the Company's technology infrastructure. Cypress Tech also owns Exzeo Software Private Limited ("Exzeo India"), a wholly owned subsidiary domiciled in India, which provides research and development services to the other subsidiaries of Exzeo along with technical support services.

**Note 2 — Summary of Significant Accounting Policies** 

**<u>Basis of Presentation</u>**

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Principles of Consolidation</u>**

The consolidated financial statements include the accounts of the Company's controlled subsidiaries. All intercompany accounts and transactions have been eliminated.

**<u>Use of Estimates</u>**

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. In addition, accounting policies specific to deferred income taxes, redeemable preferred stock, HCI warrants modification, fair value of TTIC at sale, and stock-based compensation expense involve significant judgments and estimates material to the Company's consolidated financial statements.

**<u>Cash, Cash Equivalents and Restricted Cash</u>**

The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. Restricted cash in discontinued operations represents funds in TTIC's sole ownership held by certain states in which TTIC conducts business to meet regulatory requirements and is not available for immediate business use.

**<u>Contract Cost Assets</u>**

Contract cost assets represent costs incurred by the Company to fulfill its obligations under a contract once it is obtained, but before transferring services to the customer. These costs relate directly to a contract that the Company can specifically identify, are costs to generate or enhance resources of the Company that are used in satisfying performance obligations, and are costs which are expected to be recovered. Accordingly, these costs are recognized on the consolidated balance sheets as an asset and are recognized consistent with the pattern of the transfer of the services to which the asset relates. Contract cost assets are reviewed periodically for impairment. If the carrying value of the assets exceeds the remaining amount of consideration expected to be received less directly related costs, then the impairment loss must be recognized in the consolidated statements of income in order to reflect the actual economic benefit.

**<u>Property and Equipment</u>**

Property and equipment is stated at cost less accumulated depreciation and amortization. The depreciation of software is recorded within cost of revenue for property and equipment used in the providing of services to customers and within selling, general and administrative expense for property and equipment used internally. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: computer hardware and software, three years, and office furniture and equipment, three to seven years. Leasehold improvements are amortized over the shorter of the lease term or the useful life of the asset. Expenditures for such improvements are capitalized to the appropriate assets accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. The Company capitalizes both internal and external costs for internally developed software during the application development stage. During the preliminary project and post-implementation stage, internal-use software development costs are expensed as incurred and recorded in research and development. Capitalized software development costs are depreciated on a straight-line basis over the estimated useful life of seven years.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Impairment of Long-Lived Assets</u>**

Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company's ability to maintain profitability to meet its obligations when they become due. The Company did not recognize any impairment for any period presented.

**<u>Allowance for Credit Losses</u>**

Allowance for credit losses represents an estimation of potential losses that the Company may experience due to credit risk. The allowance for credit losses account is a contra account of a financial asset to reflect the net amount expected to be collected. Any increase or decrease in the allowance for credit losses related to accounts receivable is recognized and reflected as credit losses on receivables in the Company's consolidated statement of income. When the risk of credit loss becomes certain, the allowance for credit losses account will be written off against the financial asset. Under the Current Expected Credit Loss ("CECL") model, the Company measures all expected credit losses related to relevant financial assets based on historical experience, current conditions, and reasonable and supportable forecasts which incorporate forward-looking information. The Company elected not to measure an allowance for credit losses for accrued interest receivable as any uncollectible amount is adjusted to interest income on a monthly basis. At December 31, 2024 and 2023, there was no dispute risk associated with the accounts receivable balance.

**<u>Leases</u>**

The Company leases office equipment and office space from affiliates and non-affiliates under terms ranging from three years up to ten years. In assessing whether a contract is or contains a lease, the Company first determines whether there is an identified asset in the contract. The Company then determines whether the contract conveys the right to obtain substantially all of the economic benefits from use of the identified asset or the right to direct the use of the identified asset. The Company elects not to record any lease with a term of 12 months or less on the consolidated balance sheet. For such short-term leases, the Company recognizes the lease payments in expense on a straight-line basis over the lease term.

If the contract is or contains a lease and the Company has the right to control the use of the identified asset, the right-of-use ("ROU") asset and the lease liability are measured from the lease component of the contract and recognized on the consolidated balance sheet. In measuring the lease liability, the Company uses its incremental borrowing rate for a loan secured by a similar asset that has a term similar to the lease term to discount the lease payments. The contract is further evaluated to determine the classification of the lease as to whether it is finance or operating. If the lease is a finance lease, the ROU asset is depreciated to depreciation expense over the shorter of the useful life of the asset or the lease term. Interest expense is recorded in connection with the lease liability using the effective interest method. If the lease is an operating lease, the ROU asset is amortized to lease expense on a straight-line basis over the lease term.

**<u>Contract Liabilities</u>**

Contract liabilities are recorded on the consolidated balance sheets as a liability when the Company has received consideration or has an unconditional right to payment from the customer, but has yet to transfer the services. It represents the Company's obligations to transfer the services to the customers in the future. When the service

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

obligation associated with the contract liability is fulfilled, the Company will recognize the revenue and reduce contract liabilities. Contract liabilities expected to be recognized during the succeeding 12-month period are recorded as Current contract liability, and the remaining portion is recorded as non-current contract liability.

**<u>Commission Payable</u>**

Commission payable represents the Company's liability to the insurance agents for commissions earned on direct written premium on policies written by carriers for which EIS collects fees inclusive of agent commissions and subsequently pays the applicable commissions to agents. The commission rate is a certain percentage of the premiums and varies by factors such as geographic region, risk classification, and whether the policy is new or a renewal. The estimated liability for commission payable is calculated based on direct written premiums multiplied by applicable commission rate. This liability is reviewed and adjusted at the end of each reporting period using actual data available. Commission payable is recorded as an accrual in the consolidated financial statements and is included as part of the cost of revenue. The liability is typically settled within a year.

**<u>Redeemable Series A Preferred Stock</u>*<u> </u>*<u> </u>**

Redeemable Series A Preferred Stock was a class of stock issued with redemption features that are outside the control of the issuer. Therefore, it is not classified as an asset or liability in conformity with U.S. GAAP and is presented in the temporary equity (mezzanine) section of the consolidated balance sheets. The stock contains features with rights in dividends, voting, conversion, participation, liquidation preference, and redemption. See Note 14 — "Redeemable Series A Preferred Stock" for additional details.

The Redeemable Series A Preferred Stock was initially recorded at fair value and is decreased by related issuance costs. The fair value is estimated using a residual fair value approach. The effect of increasing dividend rates is accreted to the Redeemable Series A Preferred Stock with a corresponding debit to retained earnings or accumulated deficit. The effective interest method is used for accretion over the period of the increasing dividend rates. The carrying value of the preferred stock is also subsequently adjusted for accrued dividends and dividend payments. The Company has an option to pay the dividends in cash or make a payment in kind. The dividends are accrued monthly assuming that they will be settled in cash.

When the preferred stock is probable of becoming redeemable, the Company elects to recognize changes in the redemption value immediately as it occurs and adjust the carrying value of the stock to the maximum redemption value, which is the higher of the redemption price or fair market value as of the reporting date. Such changes in the redemption value are treated as dividends when calculating income available to common stockholders.

**<u>Fair Value Measurements</u>**

The Company applies fair value measurements for certain financial assets and liabilities in accordance with a hierarchical framework. This hierarchy prioritizes inputs into three levels:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Other inputs that are observable for the assets, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.

Level 3: Inputs that are unobservable.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The Company primarily uses a discounted cash flow methodology to estimate the fair value of its long-term debt, classified under Level 3 inputs. Cash and cash equivalents, primarily consisting of money-market funds and certificates of deposit, are at their carrying value amount due to their short maturities and high liquidity.

***<u>Assets Measured and Recorded at Estimated Fair Value on a Recurring Basis</u>***

The Company's financial assets are measured at estimated fair value on a recurring basis. The fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2024 and 2023, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | |
|  | **(Level 1)** | **(Level 2)** | **(Level 3)** |<br>**Total** |
|  ***<u>As of December 31, 2024</u>*** |  |  |  |  |
|  Financial Assets: |  |  |  |  |
|  Cash and cash equivalents | $54502 | $— | $— | $54502 |
|  ***<u>As of December 31, 2023</u>*** |  |  |  |  |
|  Financial Assets: |  |  |  |  |
|  Cash and cash equivalents | $15055 | $— | $— | $15055 |

---

***<u>Liabilities Carried at Other Than Fair Value</u>***

The fair value information for note payable - related party that is carried on the consolidated balance sheets at December 31, 2023 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Carrying**<br>**Value** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Estimated**<br>**Fair Value** |
|  | **Carrying**<br>**Value** | **(Level 1)** | **(Level 2)** | **(Level 3)** | **Estimated**<br>**Fair Value** |
|  ***As of December 31, 2023*** |  |  |  |  |  |
|  *Note payable - related party \** | $57994 | $— | $— | $57226 | $57226 |

---

\* The accrued interest of $152 as of December 31, 2023 was excluded. 

**<u>Foreign Currency</u>*<u> </u>*<u> </u>**

The functional currency of the Company's Indian subsidiary is the U.S. dollar. As such, the monetary assets and liabilities of this subsidiary are remeasured into U.S. dollars at the exchange rate in effect on the balance sheet date. Non-monetary assets and liabilities are remeasured using historical rates. Expenses recorded in local currency are remeasured at the prevailing exchange rate. Exchange gains and losses resulting from these remeasurements are included in selling, general and administrative expense.

**<u>Discontinued Operations</u>**

On July 1, 2024, the Company entered into a Stock Purchase Agreement ("Purchase Agreement") with HCI to sell all of the issued and outstanding common stock of TTIC to HCI. The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. A disposal of a component is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

As a result of the sale of TTIC on July 1, 2024, the Company's assets and liabilities associated with TTIC have been classified as discontinued operations in the accompanying consolidated balance sheets and the respective operations have been classified as discontinued operations in the accompanying consolidated statements of income and consolidated statements of cash flows.

Upon completion of the sale of TTIC and beginning with the Company's September 30, 2024 consolidated financial statements, the Company has changed the presentation of its balance sheet from an unclassified balance sheet to a classified balance sheet and has changed the presentation of its statement of income from a single step statement of income to a two-step statement of income to reflect the presentation of the Company's financial position and results of operations as an insurance technology and operations solutions service provider after the sale of TTIC. This change in presentation has been applied retrospectively to all periods presented and had no impact on previously reported net income (loss) or stockholders' equity (deficit) for any periods.

**<u>Revenue</u>**

The Company generates revenue from three primary sources: Underwriting and management services, claim services and other technology services.

Revenue is recognized in accordance with the five-step model in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 606 - *Revenue from Contract with Customers* ("ASC 606"), which involves identification of the contract, identification of performance obligations in the contract, determination of the transaction price, allocation of the transaction price to the previously identified performance obligations, and recognition of revenue as the performance obligations are satisfied.

Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable.

For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on a relative standalone selling price, when available. If a standalone selling price is not available, the Company estimates the standalone selling price of each performance obligation.

**<u>Cost of Revenue</u>**

Cost of revenue consists of expenses directly attributable to the delivery of services that generate revenue. These include salaries and benefits of employees engaged in providing underwriting, management, administrative, and claim services, commissions for which EIS collects fees inclusive of agent commissions and subsequently pays the applicable commissions to agents, amortization of software intangible assets used to provide services, and allocated overhead costs from supporting departments. Information technology services that support policy underwriting, administrative functions, and claim handing services are also included.

Claim handling costs are comprised of expenses incurred throughout the claims process, including adjustment, investigation, defense, recording, and payment functions. Allocated expenses from departments supporting these functions are also included in cost of revenue.

**<u>Research and Development</u>**

Research and development costs consist primarily of personnel expenses, including salaries and benefits, bonuses, stock-based compensation and related overhead costs for employees engaged in the design and development of the Company's offerings and other internally used systems and applications.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Income Taxes</u>**

HCI files consolidated federal and state income tax returns and allocates taxes among its wholly-owned subsidiaries, including Exzeo and its subsidiaries in accordance with a written tax-allocation agreement. All estimated income tax payments and payments made when filing the federal and state tax returns are paid by HCI. Exzeo India is responsible for filing and paying its own income taxes.

In accordance with a written tax-allocation agreement, each entity within the consolidated group pays its portion of the income tax (based on each subsidiary's separate return tax liability). If the entity incurs a loss, it will be entitled to a tax benefit from HCI.

The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense and benefit: current and deferred. Current income tax expense and benefit reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense and benefit results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term "more likely than not" means a likelihood of more than fifty percent; the terms "examined" and "upon examination" also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

**<u>Stock-Based Compensation</u>**

The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards with a service condition is generally recognized as compensation expense over the requisite service period, which is defined as the period during which a recipient is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. Restricted stock grants with market conditions are expensed over the derived service period. Expensing market-based awards may be expedited if the conditions are met sooner than anticipated.

The Company also issues stock options that are mainly awarded to executives of the Company and are measured at fair value at the grant date. The Company calculates the fair value of stock options on the date of grant using the Monte Carlo simulation model. The Company completed a valuation of the Company's common stock with the assistance of a third-party valuation specialist for use as the fair value at grant date of the Company's common stock input in determining the grant date fair value of the stock options. The expense is recognized over the requisite service period for awards expected to vest using the straight-line method. The requisite service period for stock options is generally four years.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The Company's outstanding stock-based awards include stock options and restricted stock awards with service-based conditions. Compensation expense related to all awards is recorded within cost of revenue, research and development, selling, general and administrative expenses. Forfeitures of the Company's stock-based awards are accounted for as they occur for all awards. The Company receives a windfall tax benefit for certain stock options exercises and restricted stock awards if these awards vest at a higher value than the value used to recognize compensation expense. In the event the restricted stock awards vest at a lower value than the value used to recognize compensation expense, the Company experiences a tax shortfall. The Company recognizes tax windfalls and shortfalls in the consolidated statements of income. For grants to employees of foreign subsidiaries, there is a recharge agreement between the Company and the foreign subsidiary, under which the foreign subsidiary reimburses the Company for the cost of the stock-based awards.

Effective December 24, 2024, certain employees of HCI and its subsidiaries were transferred to the Company. A cumulative catch up of previously vested expense and future compensation expenses related to those employees' unvested HCI restricted stock awards are recorded as stock-based compensation by the Company. See Note 16 - "Stock-Based Compensation" for additional details.

**<u>Basic and Diluted Earnings (Loss) Per Common Share</u>**

Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. U.S. GAAP requires the inclusion of restricted stock as participating securities since holders of the Company's restricted stock have the right to share in dividends, if declared, equally with common stockholders. In addition, the intrinsic value of restricted stock declines when the Company experiences operating losses. As a result, holders of the Company's restricted stock are allocated a proportional share of net income and loss determined by dividing total weighted-average shares of restricted stock by the sum of total weighted-average shares of common stock and shares of restricted stock (the "two-class method"). Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted as well as participating equities. During loss periods, common stock equivalents such as stock options and preferred stock are excluded from the calculation of diluted loss per share, as the inclusion would have an anti-dilutive effect. See Note 13 — "Earnings Per Share" for potentially dilutive securities at December 31, 2024, 2023 and 2022.

**<u>New Accounting Pronouncements</u>**

In November 2024, the FASB issued Accounting Standards Update ("ASU") No. 2024-03, *Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40)* ("ASU 2024-03") to enhance disclosure requirements for public entities by requiring the disaggregation of certain expense captions presented within the income statement, such as employee compensation and intangible asset amortization. Additionally, the total of these disaggregated expenses must reconcile with the corresponding expense caption on the income statement, with the difference represented as an "other items" amount accompanied by a qualitative description. ASU 2024-03 is effective for all public business entities for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance and expects the adoption of this standard to expand its disclosures.

In December 2023, the FASB issued ASU No. 2023-09 - *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09") to improve income tax disclosure. The update requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The update is effective for fiscal years starting after December 15, 2024, and early adoption is permitted. ASU 2023-09 is effective for the Company beginning with the first quarter of 2025. The Company is evaluating the impact of the adoption of the new guidance and expects the adoption of this standard to expand its disclosures.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

In November 2023, the FASB issued ASU No. 2023-07- *Segment Reporting (Topic 280): Improvements To Reportable Segment Disclosures* ("ASU 2023-07"), which requires public entities, including those with a single reportable segment, to disclose significant segment expenses and other segment items that are regularly provided to the chief operating decision maker. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted this standard for the annual period ended December 31, 2024, and applied the guidance retrospectively to all periods presented. The adoption impacted disclosures only and had no effect on the consolidated financial statements. See Note 10 — "Segment information" for additional details.

**Note 3 — Discontinued Operations** 

**<u>Sale of TTIC</u>**

On July 1, 2024, the Company entered into a Purchase Agreement with HCI. Pursuant to the Purchase Agreement, the Company transferred to HCI 2,500,000 shares of TTIC's $1.00 par value common stock, representing all of TTIC's issued and outstanding common shares. In exchange, HCI agreed to consider two promissory notes issued by the Company, totaling $117,994 in principal, as fully repaid and $37,006 of a $40,000 2.00% Promissory Note due June 1, 2025 as partially repaid. The amount outstanding under this promissory note was reduced to $2,994 and this promissory note remained in effect. Therefore, the total principal balance of promissory notes considered repaid was $155,000. As the transaction was between entities under common control and there was no change in control of TTIC, the purchase was accounted for as a common control transaction, which was recognized as an equity transaction. In connection with the completion of the sale, the Company recognized an $884 decrease in stockholders' equity, reflecting the difference between the $155,000 of consideration received and the $155,884 of net assets of TTIC at sale.

**<u>TTIC Transaction Summary</u>**

The major classes of assets and liabilities of TTIC transferred are as follows:

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 58774.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, net | 18835.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable, net | 112242.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs | 23133.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 17899.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments | 333364.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 37736.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $601983.0 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | 231057.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 212377.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2665.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | $446099.0 |

---

**<u>Stock-Based Compensation</u>**

The disposal of TTIC to HCI triggered a "change of control" clause within Exzeo's 2021 Omnibus Incentive Plan. This event led to the immediate vesting of all outstanding unvested stock-based compensation awards, with

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

the exception of awards issued to Paresh Patel, the Chief Executive Officer of Exzeo and HCI, who entered into an agreement to modify the terms of his awards such that they would not immediately vest upon a change in control transaction between affiliates. The total expense recognized from the accelerated vesting of these awards was $1,087. This expense includes the immediate recognition of all previously unrecognized compensation costs related to service-condition shares, market-condition performance shares, and stock options that vested upon the change of control. The $1,087 in stock-based compensation expense was recorded in selling, general and administrative expenses in the consolidated statements of income for the year ended December 31, 2024. Paresh Patel's modification of his awards, executed prior to the transaction, resulted in his unvested shares continuing to vest according to the original vesting schedule and conditions.

**<u>Strategic Shift and Discontinued Operations Reporting</u>**

The sale of TTIC constituted a disposal of a significant component of the Company, resulting in a strategic shift in the Company's business and a major effect on the Company's operations and financial results. The results of TTIC are reflected in the Company's consolidated financial statements as discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the consolidated balance sheets and income from discontinued operations on the consolidated statements of income.

The purpose of this transaction was to restructure Exzeo, allowing it to focus on expanding its technology and insurance solutions services. This restructuring also reduced Exzeo's debt, thereby improving its capital structure and balance sheet.

**<u>Continuing Involvement with TTIC</u>**

Following the disposal of TTIC, the Company continues to be a party to the following agreements with TTIC:

**Managing General Agency ("MGA") agreements:** On January 4, 2016, EIS entered into an MGA agreement to provide underwriting services, insurance policy administrative services and claims administration services to TTIC. The MGA agreement had an initial term of three years, through January 4, 2019, with automatic renewals for one-year periods thereafter. The MGA agreement was renewed on January 4, 2025, and the Company expects the MGA agreement to automatically renew for the foreseeable future.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized revenues from the MGA agreement of $121,633, $82,924 and $43,379, respectively. Cash inflows from the MGA agreement subsequent to the sale were $78,852 for the year ended December 31, 2024.

The amounts recognized under the MGA agreement prior to the sale of TTIC on July 1, 2024 were intercompany transactions. These intercompany transactions are presented gross as revenues from continuing operations and as expenses incurred by discontinued operations for all periods presented to reflect their planned continuance subsequent to the sale of TTIC on July 1, 2024. The gross presentation of these intercompany transactions has no net impact on consolidated net income or consolidated stockholders' equity. See Note 4 — "Revenue" and Note 7 — "Related Party Transactions" for additional details.

**Cost Allocation Agreement:** The Company also provides corporate services such as human resources, accounting, and legal support to TTIC through a Cost Allocation Agreement, by and among Exzeo and its affiliates, initially effective from June 1, 2021, and continues until terminated by mutual consent of the parties thereto. The Company is reimbursed for any services provided on a cost-reimbursement basis. Expenses allocated under this agreement during the years ended December 31, 2024, 2023 and 2022, were $2,500, $3,472 and $3,124, respectively. Cash inflows from the Cost Allocation Agreement subsequent to the sale were $716 for the year ended December 31, 2024.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Financial Information of Discontinued Operations</u>**

The carrying amounts of major classes of assets and liabilities included as part of discontinued operations in the consolidated balance sheets as of December 31, 2023, is as follows:

---

| | |
|:---|:---|
|  | **December 31,** |
|  | **2023** |
|  **Carrying amounts of major classes of assets included as part of the discontinued operations** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $44242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premium receivable | 37867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from maturities of fixed-maturity securities | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of reinsurance recoverable, net | 37462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 43938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred acquisition costs | 22429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 7168 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | $243106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-current assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments | 202095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current portion of reinsurance recoverable, net | 96702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | 34473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current assets** | $333270 |
|  **Total major classes of assets of the discontinued operations** | $576376 |
|  **Carrying amounts of major classes of liabilities included as part of the discontinued operations** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Current liabilities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of losses and loss adjustment expenses | $81416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 200463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advanced premiums | 10802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 2559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | $295240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-current liabilities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current portion of losses and loss adjustment expenses | $144735 |
|  **Total major classes of liabilities of the discontinued operations** | $439975 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The major classes of line items constituting income from discontinued operations before tax to after-tax profit or loss reported in discontinued operations for the periods presented, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  **Major classes of line items constituting income from discontinued operations, before tax** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross premium earned | $210803 | $348310 | $298214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums ceded | (58943) | (122501) | (110299) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment and other income | 9542 | 13812 | 6720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss and loss adjustments expense | (87219) | (153876) | (190011) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs | (45356) | (71316) | (31396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | (2973) | (2899) | 3594 |
|  **Income (loss) from discontinued operations, before tax** | $25854 | $11530 | $(23178) |
|  Income tax expense (benefit) from discontinued operations | 6601 | 2969 | (5876) |
|  **Income (loss) from discontinued operations, after tax, that is presented in the consolidated statements of income** | $19253 | $8561 | $(17302) |

---

**Note 4 — Revenue** 

The Company generates revenue from three primary sources: Underwriting and management services, claim services, and other technology services. The Company's revenue from contracts with customers by solution are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Disaggregated Revenue** | **Disaggregated Revenue** | **Disaggregated Revenue** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Underwriting and management services | $95373 | $61410 | $27337 |
|  Claim services | 30777 | 19911 | 15555 |
|  Other technology services | 7798 | 7012 | 2739 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenue** | $133948 | $88333 | $45631 |

---

The Company waived management fees of $15,000 and $44,000 during the years ended 2023 and 2022, respectively, related to the MGA agreement with TTIC. TTIC was a wholly owned subsidiary of the Company until July 1, 2024. The waived management fees were excluded from revenue in the consolidated statements of income.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The Company's revenue, disaggregated by revenue recognized at a point in time or over time, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Disaggregated Revenue** | **Disaggregated Revenue** | **Disaggregated Revenue** |
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Point in time | $63373 | $35933 | $19889 |
|  Over time | 70575 | 52400 | 25742 |
|  **Total** | $133948 | $88333 | $45631 |

---

The Company primarily derives revenue through insurance solutions services provided to various customers. Specifically, the Company provides services to certain of its affiliates under separate MGA and Policy Administration agreements. See Note 7 — "Related Party Transactions" for additional details.

**<u>Underwriting and Management Services</u>**

The Company provides policy issuance and renewal services, that result in executed insurance policies. In addition, the Company provides management services, including soliciting and negotiating reinsurance for authorized programs, and managing and maintaining a policy administration system. Furthermore, the Company offers administrative services, including maintaining policy records, and printing policy-related documents.

The Company has identified three performance obligations within its underwriting and management services: 1) policy issuance and renewal, 2) management services, and 3) reinsurance placement assistance and brokerage services.

The transaction price allocated to the policy issuance and renewal performance obligation is determined based on the estimated standalone selling price of the service. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, plus related policy fees, that varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin approach. The transaction price is comprised of variable consideration because the Company is obligated to return a portion of the consideration if an underlying policy is canceled subsequent to issuance or renewal. Thus, the Company applies an estimate of constraint against the transaction price related to possible underlying policy cancellations in the future using the expected value method. Revenue related to the policy issuance and renewal performance obligation is recognized at the point in time when a policy is issued or renewed, as this marks the point at which the customers receive the economic benefits of the policy issuance or renewal, with the related services being substantially complete.

The transaction price allocated to the management services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin. The transaction price is comprised of variable consideration because the Company must estimate the amount of written and assumed premiums that will occur over the term of the MGA agreements. The Company applies an estimate of constraint against the transaction price related to possible overestimation of future written and assumed premiums using the expected value method. Revenue related to management services is recognized ratably over time as the services are provided, generally over the MGA agreement term.

The Company also provides reinsurance placement and brokerage assistance to the Company's reinsurance brokers ("sub-broker services") via Dark Horse. Revenue from these services is recognized at a point in time,

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

when Dark Horse fulfills its performance obligation by completing the services for the customer and is included in underwriting and management services. Due to the nature of the services, there are no significant financing components or variable consideration. For the year ended December 31, 2024, the Company recognized $500 in revenue from sub-broker services, reflecting the fixed fee for services rendered during the year. As of December 31, 2024, the Company did not have a receivable balance related to this service.

**<u>Claim Services</u>**

The Company provides services for all reported and assigned claims for which the Company will investigate, evaluate, handle, adjust, and settle each claim. While there are a variety of activities performed, the overall nature of the obligation is to provide services for all reported and assigned claims, including catastrophe claims. The Company also provides "Catastrophe Services" in the form of claim services to handle and adjust the increased and extraordinary volume of claims attributable to a catastrophe.

The Company has identified two performance obligations within claim services: 1) claim services and 2) catastrophe services.

The transaction price allocated to the claim services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct and assumed written premiums and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the estimated cost plus a margin approach. The transaction price is comprised of variable consideration because the Company must estimate the amount of written and assumed premiums that will occur over the term of the MGA agreements. Thus, the Company applies an estimate of constraint against the transaction price related to possible overestimation of future written and assumed premiums using the expected value method. Revenue related to claim services is recognized ratably over time as the claims are managed, typically over the term of the MGA agreement. This approach reflects the continuous transfer of services to the customer, ensuring that revenue recognition aligns with the delivery of services throughout the term of the MGA agreement.

The transaction price allocated to the catastrophe services performance obligation is determined based on the estimated standalone selling price of the services, which includes per-claim fees and a percentage of indemnification costs, and varies based on the specific terms of each agreement. The transaction price is comprised of variable consideration because the Company must estimate the ultimate number of claims to be handled, and the total amount of indemnification paid on those claims. Thus, the Company applies an estimate of constraint against the transaction price related to possible overestimation of the transaction price using the expected value method. Revenue for this performance obligation is recognized over time using an output method that measures progress by comparing total claims paid to date against the total expected claims to be paid.

**<u>Other Technology Services</u>**

The Company's other technology services revenue is derived primarily from fees for providing various proprietary software, which includes functionality for policy administration, billing, reporting and compliance, and claims handling, to the customer through software service agreements.

The Company has identified two performance obligations related to software services: 1) policy administration software service and 2) catastrophe claims software service.

The transaction price of the policy administration software service performance obligation is based on the volume of policies or claims processed by the affiliate using the Company's software at the end of each quarter

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

or a fixed fee. The overall nature of the obligation is to provide the customer access to the software. Accordingly, the ongoing administration and software services are deemed to have one performance obligation. Each of these arrangements represents a stand-ready obligation to perform these activities on an as-needed basis. As the Company has a right to invoice the affiliates at an amount that corresponds directly with the value of service rendered, the Company applied the as-invoiced practical expedient to recognize revenue for this performance obligation.

The transaction price of the catastrophe claims software service is calculated as a percentage of the amount incurred for each catastrophe claim handled. The nature of the performance obligation is that Exzeo USA will provide the service of allowing the customer access to its software systems. This catastrophe claims software services revenue is recognized over time as the performance obligation is satisfied, generally ratably over the period of four to five years.

**<u>Remaining Performance Obligations</u>**

As of December 31, 2024 and 2023, the aggregate amount of the transaction prices allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $55,576 and $40,080, respectively, of which $47,210 and $30,727, respectively, is expected to recognized as revenue within the next 12 months and $8,366 and $9,353, respectively, is expected to be recognized beyond the next 12 months.

**<u>Contract Balances</u>**

The Company receives payments from customers based on billing terms as established in our contracts. Accounts receivable are recorded when the right to consideration becomes unconditional and only the passage of time is required before payment of consideration is due as of the reporting period. Timing of revenue recognition may differ from the timing of invoicing. Receivables related to these services are classified under Receivable from related parties on the consolidated balance sheet, as revenues are earned through affiliated entities with the exception of sub-broker services. The Company typically collects these receivables within 15 days of each reporting period, with cash collections generally completed within one year, given the annual term of insurance policies. As of December 31, 2024 and 2023, the Company reported $2,025 and $1,345, respectively, in receivable from related parties, net related to these contracts.

The portion of revenue not yet earned is recorded as a contract liability on the consolidated balance sheet. Contract liabilities are recorded when the Company has received consideration or has an unconditional right to payment from the customer but has yet to transfer the services. This represents the portion of revenue that will be recognized over the term of the respective agreements. The over time performance obligations fall in this category given that we recognize revenue for the term of the uncancelable contract. The changes in the contract liability balance were a result of normal business activity and not materially impacted by any other factors. The following table summarizes the Company's change to the contract liabilities balance:

---

| | | |
|:---|:---|:---|
|  | **Change in Contract Liabilities<br>Years Ended December 31,** | **Change in Contract Liabilities<br>Years Ended December 31,** |
|  | **2024** | **2023** |
|  Beginning Balance | $40080 | $35427 |
|  Additions | 78477 | 35612 |
|  Revenue recognized related to the beginning balance | (29796) | (27623) |
|  Revenue recognized | (33185) | (3336) |
|  **Ending Balance** | $55576 | $40080 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

Contract liabilities are reflected in current liabilities for those to be recognized in less than 12 months and in non-current liabilities for those to be recognized more than 12 months from the date presented in the Company's consolidated balance sheets.

The following table summarizes the Company's change to the contract cost assets balance:

---

| | | |
|:---|:---|:---|
|  | **Change in Contract Cost Assets<br>Years Ended December 31,** | **Change in Contract Cost Assets<br>Years Ended December 31,** |
|  | **2024** | **2023** |
|  Beginning Balance | $6446 | $4810 |
|  Additions | 11199 | 4959 |
|  Costs recognized | (8116) | (3323) |
|  **Ending Balance** | $9529 | $6446 |

---

The changes in the contract cost assets balance are part of the ordinary course of business. Contract cost assets are reflected in current assets for those to be recognized in less than 12 months and in non-current assets for those to be recognized more than 12 months from the date presented in the Company's consolidated balance sheets.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 5 — Comprehensive Income (Loss)** 

Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which for the Company includes changes in unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value and changes in the allowance for credit losses related to these investments. Reclassification adjustments for realized (gains) losses, at cost or amortized cost, are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income (loss) and the related tax effects allocated to each component were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31, 2024** | **Year Ended**<br>**December 31, 2024** | **Year Ended**<br>**December 31, 2024** |
|  | **Before<br>Tax** | **Income<br>Tax<br>Effect** | **Net of<br>Tax** |
|  Net unrealized gains (losses) arising during the period | $307 | $(77) | $230 |
|  Reclassification adjustment for net realized losses (gains) |  |  |  |
|  Total other comprehensive income | $307 | $(77) | $230 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31, 2023** | **Year Ended**<br>**December 31, 2023** | **Year Ended**<br>**December 31, 2023** |
|  | **Before<br>Tax** | **Income<br>Tax<br>Effect** | **Net of<br>Tax** |
|  Net unrealized gains (losses) arising during the period | $2547 | $601 | $3148 |
|  Reclassification adjustment for net realized losses (gains) | 10 | 2 | 12 |
|  Total other comprehensive income | $2557 | $603 | $3160 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31, 2022** | **Year Ended**<br>**December 31, 2022** | **Year Ended**<br>**December 31, 2022** |
|  | **Before<br>Tax** | **Income<br>Tax<br>Effect** | **Net of<br>Tax** |
|  Net unrealized gains (losses) arising during the period | $(5048) | $21 | $(5027) |
|  Reclassification adjustment for net realized losses (gains) | 32 | (8) | 24 |
|  Total other comprehensive income | $(5016) | $13 | $(5003) |

---

**Note 6 — Concentrations of Credit Risk** 

The Company's receivables arising from the revenue potentially exposes the Company to concentrations of credit risk, with a significant portion coming from related-party insurance companies for which the Company serves as an insurance solutions provider. See Note 1 — "Nature of Operations" for additional details.

As of December 31, 2024 and 2023, receivable from related parties related to revenue totaled $2,025 and $1,345, respectively. As of December 31, 2024, receivable amount related to revenue from TTIC, Homeowners Choice Managers, Inc. ("HCM") and Condo Owners Reciprocal Exchange ("CORE") were $543, $519 and $963, respectively. As of December 31, 2023, receivable amount related to revenue from TTIC and HCM were $1,025 and $320, respectively. See Note 7 — "Related Party Transactions" for additional details.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 7 — Related Party Transactions** 

**<u>Related Party Service Agreements - Revenue</u>**

***<u>Management fees from insurance companies</u>***

EIS is party to a longstanding MGA agreement with TTIC. For the years ended December 31, 2024, 2023 and 2022, the Company recognized underwriting, management and claim services fees of $119,022, $81,316 and $42,886, respectively. The Company waived management fees of $15,000 and $44,000 during the years ended December 31, 2023 and 2022, respectively, related to the MGA agreement with TTIC. See Note 4 — "Revenue" for additional details. As of December 31, 2024 and 2023, unearned revenue of $35,118 and $27,819, respectively, were recorded within the contract liabilities in the consolidated balance sheets. As of December 31, 2024 and 2023, the Company had accounts receivable outstanding related to the above fees of $157 and $892, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

On November 21, 2023, EIS entered into an MGA agreement with Core Risk Managers, LLC ("CRM") for CORE. For the year ended December 31, 2024, the Company recognized underwriting, management and claim services fees of $6,625. As of December 31, 2024, unearned revenue of $3,172 was recorded within the contract liabilities in the consolidated balance sheets. As of December 31, 2024, the Company had accounts receivable outstanding related to the above fees of $963. Such fees are typically settled in the month following the period in which the services were rendered. For the year ended December 31, 2023, the Company did not recognize revenue related to CORE, nor did the Company record any unearned revenue or accounts receivable related to CORE.

On November 5, 2024, EIS entered into an MGA agreement with the attorney-in-fact ("AIF") for Tailrow Insurance Exchange ("Tailrow"). For the year ended December 31, 2024, the Company did not recognize revenue related to Tailrow.

***<u>Policy administration services</u>***

The Company charges HCM for each new and renewed Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI") flood policy and this service charge only applies to flood policies outside of Florida. For the years ended December 31, 2024, 2023 and 2022, the Company recognized policy administration income of $3, $4 and $6, respectively. There were no accounts receivable outstanding related to the HCM flood policy administration fee as of December 31, 2024 and 2023. Such fees are typically settled within two weeks following the invoice date. On January 1, 2025, EIS entered into a policy administration services agreement with HCM. See Note 18 — "Subsequent Events" for additional details.

***<u>Other technology services</u>***

The Company charges HCM various usage-based or flat fees to use the following software: *SAMS<sup>TM</sup>*, *Harmony<sup>TM</sup>*, *CasaClue<sup>TM</sup>*, *AtlasViewer<sup>®</sup>*, and *ClaimColony<sup>TM</sup>*. An additional flat fee is paid for other general software services. For the years ended December 31, 2024, 2023 and 2022, the Company recognized policy administration software service income of $1,806, $1,780 and $1,818, respectively. As of December 31, 2024 and 2023, the Company had accounts receivable outstanding related to policy administration software service income of $148 and $147, respectively.

The Company provides catastrophe claims software service through the usage of its software, enabling efficient management and adjustment of the increased claim volumes arising from catastrophes. This service is offered to

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

HCM, TTIC, CRM and Tailrow under their respective agreements. The transaction price allocated to the catastrophe services performance obligation is determined based on the estimated standalone selling price of the services, which includes per-claim fees and a percentage of indemnification costs, and varies based on the specific terms of each agreement.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized catastrophe claims software service income of $5,992, $5,232 and $922, respectively. As of December 31, 2024 and 2023, unearned revenue of $17,286 and $12,261, respectively, were recorded within the other liabilities in the consolidated balance sheets. As of December 31, 2024 and 2023, the Company had accounts receivable outstanding related to catastrophe claims software service income of $757 and $306, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

**<u>Related Party Service Agreements - Expenses</u>**

***<u>Agent Commissions</u>***

Under an agent commission agreement with Omega Insurance Agency, Inc. ("Omega"), a subsidiary of HCI, the Company pays commissions on premiums received in cash for policies issued by specific customers during the term of the agreement. Commission expenses for the years ended December 31, 2024, 2023 and 2022, were $112, $104 and $140, respectively, and are reflected in the cost of revenue in the consolidated statements of income. As of December 31, 2024 and 2023, the Company had accounts payable outstanding related to the agent commission of $9 and $11, respectively.

***<u>Claim Services</u>***

The Company receives field adjuster services from Griston Claim Services, Inc. ("GCS"), a subsidiary of HCI, and pays a fee for the services received. Field adjuster services expenses for the years ended December 31, 2024, 2023 and 2022, were $4,313, $2,231 and $4,109, respectively, and are reflected in the cost of revenue in the consolidated statements of income.

The Company also pays claim services fee to Griston Claim Management, Inc. ("GCM"), a subsidiary of HCI. The Company pays GCM a fee per internally handled non-catastrophe claims for TTIC. For catastrophe claim services provided for TTIC, the Company pays GCM a fee per claim and a percentage of the incurred loss on the catastrophe claim. For claim services provided for CORE, the Company pays GCM a fee plus a percentage of the amount expended for indemnification of the loss per claim handled by GCM. For the years ended December 31, 2024, 2023 and 2022, claim services expenses were $16,147, $11,679 and $11,970, respectively, and are reflected in the cost of revenue in the consolidated statements of income. For the year ended December 31, 2024, there were no claim services expenses related to Tailrow claims.

As of December 31, 2024 and 2023, accounts payable outstanding related to the claim services were $429 and $979, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

***<u>Office Leases</u>***

The Company entered into a lease agreement with Century Park Holding, LLC, a subsidiary of HCI, for an office space in Tampa, Florida, beginning on January 1, 2023 and ending on December 31, 2032.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

In 2022, the Company signed a lease agreement with Silver Springs Property Investment, LLC, a subsidiary of HCI, for an office building in Ocala, Florida. The lease began on January 1, 2022 and was scheduled to end on December 31, 2024. On July 4, 2024, the Company exercised the renewal option and extended the lease term such that it will now end on December 31, 2027.

For the years ended December 31, 2024, 2023 and 2022, the lease expenses related to these leases were $1,508, $1,488 and $1,669, respectively, and are reflected in the cost of revenue and selling, general and administrative expenses in the consolidated statements of income.

As of December 31, 2024 and 2023, there were no accounts payable outstanding related to the office leases as payments are due on the 1st day of each calendar month.

**<u>Corporate Cost Allocation</u>**

The Company provides corporate services to TTIC under a corporate cost allocation agreement between Exzeo and affiliates. Expenses allocated under this agreement during the years ended December 31, 2024, 2023 and 2022, were $2,500, $3,472 and $3,124, respectively. The cost allocation is presented as a reduction in operating expenses within the consolidated statements of income. Such fees are typically settled in the month following the period in which the services were rendered.

**<u>Notes Payable</u>**

On December 22, 2021, the Company issued a demand promissory note to HCI for the principal amount of $40,000 with an annual interest rate of 2.0%, maturing on June 30, 2023. The proceeds were used to make a capital contribution to TTIC. On February 5, 2023, HCI's Board of Directors extended the maturity date for the principal and accrued interest to June 30, 2025.

On June 1, 2022, the Company issued a promissory note to HCI for the principal amount of $2,994 with an annual interest rate of 3.25%, maturing on June 1, 2025.

On December 21, 2022, the Company issued a promissory note to HCI for the principal amount of $15,000 with an annual interest rate of 5.5%, maturing on December 21, 2025. The proceeds were used to make a capital contribution to TTIC.

On January 22, 2024, the Company issued a $100,000 promissory note to HCI with an annual interest rate of 5.5%, maturing on January 22, 2029. The proceeds were used to finance the redemption of the Redeemable Series A Preferred Stock. See Note 14 — "Redeemable Series A Preferred Stock" for additional details.

On July 1, 2024, the Company entered into a Purchase Agreement with HCI. Pursuant to the Purchase Agreement, the Company transferred to HCI 2,500,000 shares of TTIC's $1.00 par value common stock, representing all of TTIC's issued and outstanding common shares. In exchange, HCI agreed to consider three promissory notes issued by the Company, totaling $117,994 in principal, as fully repaid with the exception of the 2.0% Promissory Note due June 30, 2025. This promissory note remained in effect with its principal balance reduced from $40,000 to $2,994 until it was fully repaid in November 2024.

Interest expenses for the years ended December 31, 2024, 2023 and 2022, for the notes with HCI were $3,329, $1,722 and $882, respectively.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Non-cash Capital Contributions</u>**

In December 2024, certain employees of HCI were transferred to the Company. These employees participated in HCI's incentive plan that provided restricted stock awards tied to HCI's equity. As a result, the Company recognized a non-cash capital contribution of $113 in the consolidated balance sheets, reflecting the stock-based compensation costs associated with these employees' incentive plans. See Note 16 — "Stock-based Compensation" for additional details.

As described in Note 3 — "Discontinued Operations," the Purchase Agreement with HCI was accounted for as a common control transaction. The net assets of TTIC, totaling $155,884, were derecognized, and the difference between the consideration received of $155,000 and the net assets transferred was recognized as an equity transaction. This resulted in a non-cash capital transaction of $(884).

On January 22, 2024, the Company redeemed all of the Company's outstanding Redeemable Series A Preferred Stock, all of which was held by a fund associated with Centerbridge Partners, L.P. (such fund, the "Preferred Investor") and in connection with the redemption, HCI extended the expiration date of the warrant currently held by the Preferred Investor. See Note 14 — "Redeemable Series A Preferred Stock" for additional details. The Company reflected the full costs of redemption by recording the incremental fair value of the HCI warrant modification as a non-cash capital contribution and deemed dividend, amounting to $3,386 which was subtracted from net income to arrive at income available to common stockholders in the calculation of earnings per share.

In 2022, the Company received non-cash capital contributions from HCI of $2,509 representing the net of renewal rights intangible asset and contingent consideration payable, and contributed it as a non-cash capital contribution to TTIC.

**<u>Capital Contributions</u>**

In 2022, the Company made a cash capital contribution of $17,994 to TTIC.

**Note 8 — Property and Equipment, Net** 

Property and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Computer software | $17882 | $15052 |
|  Computer hardware | 1669 | 1155 |
|  Capital projects in-progress | 1071 | 1014 |
|  Office furniture and equipment | 555 | 495 |
|  Leasehold improvements | 542 | 434 |
|  Other | 108 | 343 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total, at cost | 21827 | 18493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: accumulated depreciation and amortization | (11075) | (8714) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | $10752 | $9779 |

---

Depreciation and amortization expense for property and equipment were $2,361, $2,202 and $1,688 for the years ended December 31, 2024, 2023 and 2022, respectively.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 9 — Leases** 

The Company's ROU assets and corresponding liabilities for operating leases are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Operating leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ROU Assets | $8052 | $7578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities - current | $2132 | $1735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities - non-current | 6219 | 6048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | $8351 | $7783 |

---

The Company has entered into multiple lease agreements with its affiliates. See Note 7 — "Related Party Transactions" for additional details.

The Company's operating leases in which the Company is a lessee are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Class of Assets** | **Initial Term** | **Renewal Option** | **Other Terms and<br>Conditions** |
|  **Operating lease:** |  |  |  |
|  Office space | 3 to 10 years | Yes | (a), (b) |
|  Office equipment | 5.25 years | Not applicable |  |

---

(a) There is a variable lease payment.

(b) Rent escalation provisions exist.

As of December 31, 2024, maturities of lease liabilities were as follows:

---

| | |
|:---|:---|
|  | **Operating Leases** |
|  Due in 12 months following December 31, 2024 | $1661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | 1712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 1151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 | 1166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 and after | 3480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | 10934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: interest and foreign taxes | 2583 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease obligations | $8351 |

---

The quantitative information with regards to the Company's operating and financing leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Lease costs: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease costs\* | $1701 | $1290 | $1825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease costs: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization – ROU assets\* |  | 9 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense |  |  | 1 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Total lease costs | $1701 | $1299 | $1838 |
|  Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows – operating leases | $1637 | $1503 | $1785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows – finance leases | $— | $— | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing cash flows – finance leases | $— | $9 | $14 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2023** | **2022** |
|  Weighted-average remaining lease term: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases (in years) | 6.8 | 8.2 | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases (in years) |  |  | 0.7 |
|  Weighted-average discount rate: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 6.2% | 6.0% | 5.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases |  |  | 3.8% |

---

\* Included within selling, general and administrative expense in the consolidated statements of income.

**Note 10 — Segment Information** 

Operating segments are defined as components of an enterprise, which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), or decision group, in deciding how to allocate resources and assessing performance. The Company's chief executive officer serves as the CODM. The CODM reviews financial information on a consolidated basis and allocates resources and evaluates financial performance based on consolidated revenue and operating income. As such, the Company has determined that it operates as one operating and reportable segment.

During the third quarter of 2024, the Company completed the sale of TTIC to its parent company, HCI. As a result, the operations of TTIC have been classified as discontinued operations in the consolidated financial statements for all periods presented. In connection with this change, the Company reevaluated its segment reporting and determined that the remaining operations constitute a single operating and reportable segment. Prior period segment information has been recast to conform to the current period presentation reflecting one reportable segment.

All of the Company's revenues are earned in the United States, and all assets are located in the United States. See Note 6 — "Concentration of Credit Risk" for additional details about major customers.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The following table presents consolidated revenue, significant expense categories regularly reviewed by the CODM, and net income for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Revenue | $133948 | $88333 | $45631 |
|  Cost of revenue: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy commission and related expenses | 39013 | 36837 | 38657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outsourced claims fees | 13779 | 7700 | 11732 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct personal expense | 13422 | 13802 | 10820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 12298 | 10825 | 9046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 2227 | 1897 | 1485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit (loss)** | 53209 | 17272 | (26109) |
|  **Operating expenses** |  |  |  |
|  Selling, general and administrative: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personnel cost | 5716 | 5429 | 4500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 2627 | 2469 | 2839 |
|  Research and development | 6514 | 6528 | 4130 |
|  Depreciation and amortization | 335 | 292 | 175 |
|  **Total operating expenses** | 15192 | 14718 | 11644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income (loss)** | 38017 | 2554 | (37753) |
|  Investment income | 548 | 52 | 30 |
|  Interest expense | (3329) | (1723) | (882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income (loss) before taxes** | $35236 | $883 | $(38605) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense (benefit) | 9168 | (12018) | 3409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income (loss)** | $26068 | $12901 | $(42014) |

---

**Note 11 — Employee Benefit Plan** 

Through HCI, the Company has a 401(k) Safe Harbor Profit Sharing Plan ("401(k) Plan") that qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees are eligible for company matching and discretionary profit-sharing contributions. Plan participants may elect to defer up to one hundred percent of their pre-tax gross wages, subject to annual limitations. The Company's matching contribution is limited to a maximum of four percent of the employee's annual salary or wage and is fully vested when contributed. Eligibility and vesting of the Company's discretionary profit sharing contribution is subject to the plan participant's years of service. During the years ended December 31, 2024, 2023 and 2022, the Company contributed approximately $527, $498 and $466, respectively, in matching contributions, which are recorded within cost of revenue and selling, general and administrative in the consolidated statement of income. There has been no discretionary profit sharing contribution since the plan's inception.

The Company also maintains benefit plans for its employees in India including a statutory post-employment benefit plan, or gratuity plan, providing defined, lump-sum benefits. The Company's liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date, which was based upon the employees' salary and years of service. As of December 31, 2024, 2023 and 2022, the amounts accrued under the gratuity plan were $233, $173 and $126, respectively. In addition, the Company provides matching contributions

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

with respect to two defined contribution plans: the Provident Fund and the Employees State Insurance Fund, both of which are available to qualifying employees in India. For the years ended December 31, 2024, 2023 and 2022, the Company recognized expenses of $59, $47 and $(32), respectively, for all benefit plans in India.

**Note 12 — Income Taxes** 

A summary of income tax expenses and (benefits) is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2023** | **2022** |
|  Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $5976 | $(5079) | $(1323) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 1583 | (1274) | (274) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | 84 | 67 | 194 |
|  Total current taxes | 7643 | (6286) | (1403) |
|  Deferred: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | 1216 | (4691) | 3872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 312 | (1042) | 970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign | (3) | 1 | (30) |
|  Total deferred taxes | 1525 | (5732) | 4812 |
|  Income tax expenses (benefits) | $9168 | $(12018) | $3409 |

---

The reasons for the differences between the statutory federal income tax rate and the effective tax rate are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2024** |
|  | **Amount** | **%** |
|  Income taxes at statutory rate | $7400 | 21.0 |
|  Increase (decrease) in income taxes resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal tax benefits | 1436 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible compensation expense | 318 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 14 | 0.0 |
|  Income tax benefit (expense) | $9168 | 26.0 |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2023** | **2023** |
|  | **Amount** | **%** |
|  Income taxes at statutory rate | $186 | 21.0 |
|  Increase (decrease) in income taxes resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal tax benefits | (1083) | (122.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible compensation expense | 345 | 39.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for deferred tax assets | (12806) | (1449.1) |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2023** | **2023** |
|  | **Amount** | **%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 1340 | 151.7 |
|  Income tax benefit (expense) | $(12018) | (1359.9) |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2022** |
|  | **Amount** | **%** |
|  Income taxes at statutory rate | $(8107) | 21.0 |
|  Increase (decrease) in income taxes resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State income taxes, net of federal tax benefits | (1638) | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-deductible compensation expense | 286 | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for deferred tax assets | 12806 | (33.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 62 | (0.1) |
|  Income tax benefit (expense) | $3409 | (8.8) |

---

The Company is included in the consolidated federal income tax return of HCI Group, Inc. The Company has a written agreement which sets forth the manner in which the total combined federal income tax is allocated to each party which is party to the consolidation. Pursuant to this agreement, the Company has the enforceable right to recoup federal income taxes in prior years in the event of future losses, which it may incur, or to recoup its net losses carried forward as an offset to future net income subject to federal income taxes. The consolidated income tax returns filed for HCI Group, Inc. and its subsidiaries for the years ending December 31, 2023, 2022, and 2021 remain subject to examination by the Company's major taxing jurisdictions. The Company has no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. The Company elected to classify interest and penalties, if any, arising from uncertain tax provisions as income tax expense as permitted by current accounting standards. There have been no material amounts of interest or penalties for the years ended December 31, 2024, 2023 and 2022.

During the years ended December 31, 2024, 2023 and 2022, the Company recorded income tax expense from continuing operations of $9,168, income tax benefit from continuing operations of $(12,108) and income tax expenses from continuing operations of $3,409, respectively, which resulted in effective tax rates of 26.0%, (1,359.9)% and (8.8)% respectively. The change in the effective tax rate for continuing operations in 2024 as compared to 2023 was primarily attributable to a valuation allowance release during 2023. The change in the effective tax rate in 2023 as compared to 2022 was primarily attributable to a valuation allowance release during 2023. The Company's estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes, certain nondeductible components and tax-exempt items.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

Significant components of the Company's net deferred income tax liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
|  Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned revenue | $— | $258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 115 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 81 | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intercompany deferred loss | 544 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 740 | 563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance on deferred tax assets | (544) |  |
|  Total deferred tax assets | $196 | $563 |
|  Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred contract costs | $(1290) | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment - capitalized software | (878) | (1052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (149) | (107) |
|  Total deferred tax liabilities | $(2317) | $(1159) |
|  Net deferred tax liabilities | $(2121) | $(596) |

---

The Company had zero federal and state net operating loss carryforwards available at December 31, 2024.

A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. The Company evaluates the realizability of its deferred tax assets each quarter, and as of December 31, 2024, based on all of the available evidence, management concluded that it is more likely than not that the deferred tax assets will be realized, other than a valuation allowance on the sale of TTIC by Exzeo to HCI in the amount of $544 related to the deferred intercompany taxable loss that arose during the third quarter of 2024. For the year ended December 31, 2023, management concluded that it was more likely than not that the deferred tax assets would be realized and resulted in a valuation allowance release through continuing operations for a $(12,806) income tax benefit.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 13 — Earnings Per Share** 

U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company's restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings per share during periods of net income or loss. A summary of the numerator and denominator of the basic and diluted loss per common share for the years ended December 31, 2024, 2023 and 2022, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Income**<br>**(Numerator)** | **Shares (a)**<br>**(Denominator)** | **Per Share**<br>**Amount** |
|  **Continuing Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from continuing operations, after tax | $26068 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock | (10149) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income (loss) attributable to participating securities from continuing operations | (550) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) allocated to common stockholders from continuing operations | 15369 | 77494 | $0.20 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from continuing operations | $15369 | 77494 | $0.20 |
|  **Discontinued Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations, after taxes | $19253 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income attributable to participating securities from discontinued operations | (667) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income allocated to common stockholders from discontinued operations | 18586 | 77494 | $0.24 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from discontinued operations | $18586 | 77494 | $0.24 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Income**<br>**(Numerator)** | **Shares (a)**<br>**(Denominator)** | **Per Share**<br>**Amount** |
|  **Continuing Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from continuing operations, after tax | $12901 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock | (9370) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income (loss) attributable to participating securities from continuing operations | (201) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) allocated to common stockholders from continuing operations | 3330 | 76102 | $0.04 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from continuing operations | $3330 | 76102 | $0.04 |
|  **Discontinued Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations, after taxes | $8561 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income attributable to participating securities from discontinued operations | (486) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income allocated to common stockholders from discontinued operations | 8075 | 76102 | $0.11 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from discontinued operations | $8075 | 76102 | $0.11 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
|  | **Income**<br>**(Numerator)** | **Shares (a)**<br>**(Denominator)** | **Per Share**<br>**Amount** |
|  **Continuing Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from continuing operations, after tax | $(42014) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock | (9105) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income (loss) attributable to participating securities from continuing operations | 3454 |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) allocated to common stockholders from continuing operations | (47665) | 75681 | $(0.63) |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from continuing operations | $(47665) | 75681 | $(0.63) |
|  **Discontinued Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations, after taxes | $(17302) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income attributable to participating securities from discontinued operations | 1169 |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income allocated to common stockholders from discontinued operations | (16133) | 75681 | $(0.21) |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from discontinued operations | $(16133) | 75681 | $(0.21) |

---

(a) Shares in thousands.

We exclude antidilutive Exzeo stock options and Redeemable Series A Preferred Stock from our calculation of weighted-average shares for diluted earnings per share when the inclusion would have an anti-dilutive effect. Refer to Note 2 — "Summary of Significant Accounting Policies" for additional details.

**Note 14 — Redeemable Series A Preferred Stock** 

In 2021, the Company completed a capital investment transaction with the Preferred Investor, a private investment management fund. Under the investment agreement, the Company issued 9,000,000 voting shares of its Series A-1 Preferred Stock and 1,000,000 non-voting shares of its Series A-2 Preferred Stock (together "Series A Preferred Stock"), $0.001 par value, at a price of $10 per share for total proceeds of $100,000. On July 3, 2023, an additional 1,000,000 shares of non-voting Series A-2 Preferred Stock was authorized to exchange an equal number of shares of Series A-1 Preferred Stock. See Note 15 — "Stockholders' Equity" for additional details.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

On January 22, 2024, the Company entered into a Stock Redemption Agreement with the Preferred Investor which allowed the Company to redeem all of the Series A Preferred Stock. The redemption totaled $100,000 plus accrued and unpaid dividends of approximately $2,923. At redemption, the difference between the consideration transferred of $102,923 and the redemption date carrying value of $96,695 is recorded as a deemed dividend which is subtracted from net income when calculating income available to common stockholders.

**<u>Dividends</u>**

Dividends were accrued and accumulated from the date of issuance. Cumulative dividends were paid semi-annually in cash or paid-in-kind at the Company's option. Cash dividend rates were $0.50 per share in Year 1, $0.60 per share in Year 2, $0.75 per share in Year 3, and $0.95 per share in Year 4 and thereafter. The rates for paid-in-kind dividends were $0.60 per share in Year 1 and $0.70 per share in Year 2. In addition, the Series A Preferred Stock would have paid dividends on an as-converted basis when and if the Company declared common stock dividends.

**<u>Conversion Rights</u>**

The holders of Series A Preferred Stock had the right to convert the stock at any time into shares of common stock with an initial conversion rate of 1 to 1. The conversion rate would have been adjusted under certain conditions. Unless converted earlier, all shares of Series A Preferred Stock would have been automatically converted into shares of common stock at the then-applicable conversion rate upon (1) a qualified public offering of common stock with gross proceeds of not less than $250,000 with a price per share at least equal to 150% of the original purchase price of the Series A Preferred Stock, or (2) at the election of requisite holders of a majority of Series A Preferred Stock, whichever came first.

**<u>Redemption Rights</u>**

On or after the fourth anniversary of the issuance date, Series A Preferred Stock became redeemable at the option of the holders at a price equal to the greater of (1) $10 per share plus any accrued but unpaid dividends and (2) a fair market value per share determined by an independent valuation firm selected by the Board of Directors. As of December 31, 2023, management concluded that the Series A Preferred Stock was not probable of becoming redeemable.

**<u>Guaranty by HCI</u>**

All payment obligations to the holders of Series A Preferred Stock had been fully guaranteed by HCI as long as Series A Preferred Stock was outstanding.

In connection with the redemption described above, HCI had extended the expiration date of the warrants for HCI stock that had been issued as a part of the original capital investment transaction with the Preferred Investor to purchase 750,000 shares of HCI common stock. The amended and restated warrant had extended the expiration for 450,000 underlying warrant shares in 150,000 share increments to December 31, 2026, December 31, 2027, and December 31, 2028. The remaining 300,000 warrants continued to have the same original expiration date of February 26, 2025. The Company had reflected the full costs of redemption by recording the incremental fair value of the HCI warrants modification as a non-cash capital contribution and deemed dividend, amounting to $3,386.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Liquidation Preference</u>**

In the event of any liquidation, the Series A Preferred Stock would have ranked senior to common stock with respect to distribution rights.

**<u>Anti-Dilutive Protection</u>**

The holders of Series A Preferred Stock had received protection in the form of a down-round feature, which would have been triggered in the event that the Company had issued additional common equivalent shares at an effective price per share less than $10 per share.

The activity of redeemable preferred stock during the years ended December 31, 2024 and 2023, is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
|  Balance as of January 1 | $96160 | $93553 |
|  Increase (decrease): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued cash dividends | 424 | 7263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion - increasing dividend rate | 111 | 2107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment to maximum redemption value | 6228 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | (2923) | (6763) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption | (100000) |  |
|  Balance as of December 31 | $— | $96160 |

---

For the years ended December 31, 2024, 2023 and 2022, dividends on Series A Preferred Stock were $535, $9,370, and $9,105, respectively, consisting of accrued cash dividends of $424, $7,263 and $5,841, respectively, and accretion related to increasing dividend rates of $111, $2,107, and $3,264, respectively.

**Note 15 — Stockholders' Equity** 

**<u>Common Stock</u>**

The Company is authorized to issue 184,000,000 shares of common stock, consisting of 181,860,000 shares of voting common stock and 2,140,000 shares of non-voting common stock.

**<u>Preferred Stock</u>**

On January 22, 2024, the Company redeemed the outstanding 10,000,000 shares of Series A Preferred Stock. See Note 14 — "Redeemable Series A Preferred Stock" for additional details. The Company is authorized to issue to 38,502,000 shares of Preferred Stock upon the terms and conditions set forth in the Company's Third Amended and Restated Articles of Incorporation, as amended.

**Note 16 — Stock-Based Compensation** 

**<u>2021 Omnibus Incentive Plan</u>**

As of December 31, 2024, the 2021 Omnibus Incentive Plan (the "2021 Omnibus Plan") authorizes the issuance of up to 10,929,649 shares, with 1,590,774 shares remaining for future grant.

On June 28, 2024, the Company entered into an Amendment to amend the Stock Option Award agreement and the Restricted Stock Award agreement with Paresh Patel, who serves as the Chief Executive Officer of the

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

Company, to modify the vesting provision of the February 26, 2021 Restricted Stock Award agreement and the October 1, 2021 Stock Option Award agreement, such that the sale or disposition by the Company of all or substantially all of the assets of the Company to an affiliate will not constitute a change of control and will not cause the acceleration of vesting of the awards.

The amendments resulted in the application of modification accounting guidance. The Company determined that there was no incremental compensation cost to be recognized as a result of the modification. The remaining unamortized portion of the awards' grant date fair values will be recognized over the remaining requisite service periods of the awards.

As described in Note 3 — "Discontinued Operations", the sale of TTIC triggered a change in control clause within the Company's equity incentive plan, causing all unvested stock-based awards to vest immediately except for the Company's stock-based compensation issued to Paresh Patel, who is also the Chief Executive Office of HCI. See Note 3 — "Discontinued Operations" for additional details. The expense from immediate vesting for the stock-based compensation approximated $1,087.

***<u>Stock Options</u>***

A summary of the stock option activity for the years ended December 31, 2024, 2023 and 2022, is as follows (option amounts not in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term** | **Aggregate<br>Intrinsic<br>Value** |
|  Outstanding at January 1, 2022 | 6450000 | $23.00 | 3.75 years | $— |
|  Outstanding at December 31, 2022 | 6450000 | $23.00 | 2.75 years | $— |
|  Outstanding at January 1, 2023 | 6450000 | $23.00 | 2.75 years | $— |
|  Forfeited | (100000) | $23.00 |  | $— |
|  Outstanding at December 31, 2023 | 6350000 | $23.00 | 1.75 years | $— |
|  Outstanding at January 1, 2024 | 6350000 | $23.00 | 1.75 years | $— |
|  Outstanding at December 31, 2024 | 6350000 | $23.00 | 0.75 years | $— |
|  Exercisable at December 31, 2024 | 5100000 | $23.00 |  | $— |

---

There were no options granted or exercised for the years ended December 31, 2024, 2023 and 2022. For the years ended December 31, 2024, 2023 and 2022, the Company recognized $2,045, $1,767 and $1,790, respectively, of compensation expense for stock options which was recorded within selling, general and administrative in the consolidated statement of income. The deferred tax benefits related to stock options for the years ended December 31, 2024, 2023 and 2022 were $103, $101 and $102, respectively.

As of December 31, 2024 and 2023, there were $1,040 and $3,086, respectively, of unrecognized compensation expense related to non-vested stock options. The Company expects to recognize the remaining compensation expense over a period of 0.75 year.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

***<u>Restricted Stock Awards</u>***

Information with respect to the activity of unvested restricted stock awards during the years ended December 31, 2024, 2023 and 2022 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>Restricted<br>Stock<br>Awards** | **Weighted<br>Average<br>Grant Date<br>Fair Value** |
|  Balance at January 1, 2022 | 5957458 | $0.98 |
|  Granted | 87500 | $4.89 |
|  Vested | (585515) | $2.78 |
|  Forfeited | (184050) | $1.46 |
|  Nonvested at December 31, 2022 | 5275393 | $0.83 |
|  Balance at January 1, 2023 | 5275393 | $0.83 |
|  Vested | (449605) | $2.81 |
|  Forfeited | (592545) | $0.75 |
|  Nonvested at December 31, 2023 | 4233243 | $0.63 |
|  Balance at January 1, 2024 | 4233243 | $0.63 |
|  Granted | 2793900 | $3.00 |
|  Vested | (2881986) | $0.73 |
|  Forfeited | (24983) | $1.74 |
|  Nonvested at December 31, 2024 | 4120174 | $2.16 |

---

For the years ended December 31, 2024, 2023 and 2022, the Company recognized compensation expense of $1,221, $1,160 and $1,722, respectively, and deferred tax benefits of $334, $172 and $273, respectively, related to restricted stock awards. As of December 31, 2024 and 2023, there was approximately $8,455 and $1,352, respectively, of total unrecognized compensation expense related to non-vested restricted stock. The Company expects to recognize the remaining compensation expense over a weighted-average period of 5.90 years.

***<u>HCI Equity Incentive Plan</u>***

HCI has an incentive plan that provides restricted stock awards to employees of HCI and its subsidiaries in connection with their service. The terms of the restricted stock grants include service conditions and market conditions, and the awards generally vest over a period of four years. In December 2024, certain employees of HCI and its subsidiaries were transferred to the Company. The Company recognizes stock-based compensation expense for those employees' unvested shares based on the fair value determined by HCI at the original grant date and the same vesting terms established at the grant date. The awards are not remeasured following the transfer.

For the year ended December 31, 2024, the Company recognized compensation expense related to HCI restricted stock of $113 in the consolidated statements of income and non-cash capital contribution in the consolidated balance sheets.

***<u>Repurchase of Restricted Stock</u>***

For the years ended December 31, 2024 and 2023, the Company repurchased 7,277 and 83,415 shares of common stock, respectively, at a fair value of $1.46 per share held by former employees. The total repurchase

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

price amounted to $13 and $142, respectively. The excess of the repurchase price over the fair value, amounted to $2 and $29, respectively, was recognized as additional compensation cost and included in selling, general and administrative expenses.

**Note 17 — Commitments and Contingencies** 

**<u>Legal Matters</u>**

From time to time, the Company may be involved in legal and regulatory proceedings arising in the ordinary course of business. As of December 31, 2024 and 2023, the Company is not a party to any material legal proceedings that, individually or in the aggregate, are expected to have a material adverse effect on its business, financial condition, or results of operations. The Company evaluates potential exposure to such matters and records a liability when an outcome is probable, and the amount can be reasonably estimated.

**<u>Lease Commitments</u>**

The Company leases office spaces and certain equipment under non-cancelable operating leases. These leases have remaining terms ranging from three years to eight years and may include renewal options or escalation clauses. The Company also has minimum future lease payments obligations. See Note 9 — "Leases" for additional details.

**<u>Indemnification Obligations</u>**

The Company provides certain indemnification commitments under its agreements with customers. These obligations may require the Company to defend against claims for certain damages arising from breaches of contractual terms. As of December 31, 2024 and 2023, the Company has not accrued any expenses related to such claims.

**<u>Regulatory Matters</u>**

The Company is required to maintain compliance with various federal and state laws, including data privacy regulations and insurance-related requirements. The Company continues to enhance its compliance process and address evolving operations.

**Note 18 — Subsequent Events** 

The Company has evaluated subsequent events through June 3, 2025, the date the consolidated financial statements were available to be issued. There were no subsequent events requiring modification to or disclosure in the consolidated financial statements, except as detailed below.

On January 1, 2025, EIS entered into a policy administration services agreement with HCM, under which EIS will provide policy administration services, including underwriting support, policy issuance, billing, data processing, and customer services for HCPCI. EIS will receive a certain percentage of HCPCI's total written annual premium as commission for its services, as well as a per policy as policy placement fee. HCM retains ultimate authority over the policies administered by EIS and may suspend EIS's underwriting authority at its discretion. The agreement includes audit rights, record retention requirements, confidentiality obligations, and termination provisions, with penalties for non-performance. In connection with this agreement, the Company also amended the policy administration software service agreement with HCM effective the same date. Going forward, the Company will only charge HCM a flat fee per claim for the usage of our claims management systems. This amendment is not material to the Company's consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Balance Sheets** 

**(Dollar amounts in thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | |
|  **Assets** |  |  |
|  **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $110732 | $54502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from related parties | 19025 | 2581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expense | 669 | 609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current contract cost assets | 6170 | 6397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes receivable |  | 3099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 1783 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current assets** | 138379 | 67230 |
|  **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 10565 | 10752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 7469 | 8052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current contract cost assets | 1405 | 3132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes, net | 2719 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 275 | 275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current assets** | 22433 | 22211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $160812 | $89441 |
|  **Liabilities and Stockholders' Equity** |  |  |
|  **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current contract liabilities | $77938 | $47210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 4439 | 4320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 7799 | 2134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 2291 | 2132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 97 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to related parties | 1278 | 580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total current liabilities** | 93842 | 56376 |
|  **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current contract liabilities | 4267 | 8366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 5518 | 6219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes, net |  | 2121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 634 | 852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total non-current liabilities** | 10419 | 17558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 104261 | 73934 |
|  Commitments and contingencies (Note 15) |  |  |
|  **Stockholders' equity:** |  |  |
|  Common stock ($0.001 par value, 184,000,000 shares authorized, 82,701,189 and 82,810,089 shares issued and <br>outstanding as of June 30, 2025 and December 31, 2024, respectively) | 83 | 83 |
|  Additional paid-in capital | 74185 | 72755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (17717) | (57331) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total stockholders' equity** | 56551 | 15507 |
|  **Total liabilities and stockholders' equity** | $160812 | $89441 |

---

See accompanying Notes to Consolidated Financial Statements (unaudited).

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Income** 

**(Unaudited)** 

**(Dollar amounts in thousands, except per share amounts)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024\*\*\*** |
|  Revenue\* | $108498 | $60305 |
|  Cost of revenue \*\* | 46122 | 36919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** | 62376 | 23386 |
|  **Operating expenses** |  |  |
|  Selling, general and administrative | 5666 | 4232 |
|  Research and development | 4575 | 3290 |
|  Depreciation and amortization | 211 | 156 |
|  **Total operating expenses** | 10452 | 7678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** | 51924 | 15708 |
|  Investment income | 1161 | 142 |
|  Interest expense |  | (3306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from continuing operations, before taxes** | $53085 | $12544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense from continuing operations | 13471 | 3433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from continuing operations, after taxes** | $39614 | $9111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from discontinued operations, before taxes** | $— | $25854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense from discontinued operations |  | 6601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income from discontinued operations, after taxes** | $— | $19253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income** | $39614 | $28364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock |  | (10149) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income attributable to common stockholders** | $39614 | $18215 |
|  Basic and diluted earnings per share from continuing operations | $0.48 | $(0.01) |
|  Basic and diluted earnings per share from discontinued operations | $— | $0.24 |
|  **Basic and diluted earnings per share** | $0.48 | $0.23 |

---

\* Amounts include revenues earned from related parties of $106,748 and $60,305 for the six months ended June 30, 2025 and 2024, respectively. See Note 4 — "Revenue" and Note 7 — "Related Party Transactions" for additional details. 

\*\* Amounts include costs incurred pursuant to related party transactions of $8,715 and $7,442 for the six months ended June 30, 2025 and 2024, respectively. See Note 7 — "Related Party Transactions" for additional details. 

\*\*\* See Note 3 — "Discontinued Operations" for details on the retrospective changes in presentation of these consolidated financial statements due to the sale of TTIC (as defined below) and discontinued operations reporting.

See accompanying Notes to Consolidated Financial Statements (unaudited).

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Comprehensive Income** 

**(Unaudited)** 

**(Dollar amounts in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
|  Net income | $39614 | $28364 |
|  Other comprehensive income: |  |  |
|  Change in unrealized gains on investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains arising during the period |  | 307 |
|  Net change in unrealized gains |  | 307 |
|  Deferred income taxes |  | 77 |
|  Total other comprehensive income, net of income taxes |  | 230 |
|  Comprehensive income | $39614 | $28594 |

---

See accompanying Notes to Consolidated Financial Statements (unaudited).

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Stockholders' Equity** 

**For the Six Months Ended June 30, 2025 and 2024** 

**(Unaudited)** 

**(Dollar amounts in thousands)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total<br>Stockholders'**<br>**Equity** |
|  | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total<br>Stockholders'**<br>**Equity** |
|  Balance at December 31, 2024 | 82810089 | $83 | $72755 | $(57331) | 15507 |
|  Net income |  |  |  | 39614 | 39614 |
|  Non-cash capital contribution from parent |  |  | 25 |  | 25 |
|  Forfeiture of restricted stock | (108900) |  | 1 |  | 1 |
|  Stock-based compensation |  |  | 1404 |  | 1404 |
|  Balance as of June 30, 2025 | 82701189 | $83 | $74185 | $(17717) | $56551 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss),**<br>**Net of Tax** | **Total<br>Stockholders'**<br>**Equity<br>(Deficit)** |
|  | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss),**<br>**Net of Tax** | **Total<br>Stockholders'**<br>**Equity<br>(Deficit)** |
|  Balance as of December 31, 2023 | 80370505 | $80 | $68931 | $(92503) | $(1803) | (25295) |
|  Net income |  |  |  | 28364 |  | 28364 |
|  Total other comprehensive income (loss), net of income taxes |  |  |  |  | 230 | 230 |
|  Forfeiture of restricted stock | (24983) |  |  |  |  |  |
|  Repurchase and retirement of common stock | (52688) |  | (93) |  |  | (93) |
|  Non-cash capital contributions from parent |  |  | 3386 |  |  | 3386 |
|  Preferred stock dividends |  |  |  | (10149) |  | (10149) |
|  Stock-based compensation |  |  | 1357 |  |  | 1357 |
|  Balance as of June 30, 2024 | 80292834 | $80 | $73581 | $(74288) | $(1573) | $(2200) |

---

See accompanying Notes to Consolidated Financial Statements (unaudited).

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Cash Flows** 

**(Unaudited)** 

**(Dollar amounts in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**<br>**June 30,** | **Six Months Ended**<br>**June 30,** |
|  | **2025** | **2024\*** |
|  Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income | $39614 | $28364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from discontinued operations |  | (19253) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income from continuing operations | 39614 | 9111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 1429 | 1357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 1439 | 1271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (4840) | 2396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency remeasurement losses | 48 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from/to related parties | (15746) | (4445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | (60) | (189) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract cost assets | 1954 | 570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes | 3196 | 1188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 26629 | 3923 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commissions payable | 119 | (230) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued liabilities | 5665 | 2891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | (221) | 378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (1741) | 507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases, net | 41 | (532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 57526 | 18227 |
|  Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment | (1252) | (1802) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | (1252) | (1802) |

---

(continued)

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Consolidated Statements of Cash Flows – (Continued)** 

**(Unaudited)** 

**(Dollar amounts in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024\*** |
|  Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of redeemable preferred stock |  | (100000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of notes payable - related party |  | 100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase of common stock |  | (93) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends paid to redeemable preferred stock |  | (2923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities |  | (3016) |
|  Effect of exchange rate changes on cash | (44) | 14 |
|  Net cash provided by continuing operations | 56230 | 13423 |
|  Cash flows from discontinued operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities from discontinued operations |  | 142645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities from discontinued operations |  | (128113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities from discontinued operations |  |  |
|  Net cash provided by (used in) discontinued operations |  | 14532 |
|  Net increase (decrease) in cash, cash equivalents, and restricted cash | 56230 | 27955 |
|  Cash, cash equivalents, and restricted cash at beginning of period - continuing operations | 54502 | 15055 |
|  Cash, cash equivalents, and restricted cash at beginning of period - discontinued operations |  | 46541 |
|  Cash, cash equivalents, and restricted cash at beginning of period |  | 61596 |
|  Cash, cash equivalents, and restricted cash at end of period - continuing operations | 110732 | 28478 |
|  Cash, cash equivalents, and restricted cash at end of period - discontinued operations |  | 61073 |
|  Cash, cash equivalents, and restricted cash at end of period | $110732 | $89551 |
|  Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital contribution from parent | $25 | $3386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from maturities of fixed-maturity securities | $— | $500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable for purchase of fixed-maturity securities | $— | $(50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain on investment in available-for-sale securities, net of tax | $— | $230 |

---

\* See Note 3 — "Discontinued Operations" for details on the retrospective changes in presentation of these consolidated financial statements due to the sale of TTIC (as defined below) and discontinued operations reporting.

See accompanying Notes to Consolidated Financial Statements (unaudited).

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 1** — **Nature of Operations** 

Exzeo Group, Inc. ("Exzeo"), formerly known as TypTap Insurance Group, Inc. ("TTIG"), was established in 2020 and is a subsidiary of HCI Group, Inc. ("HCI"). On February 27, 2025, TTIG filed articles of amendment to its Third Amended and Restated Articles of Incorporation changing its name from TypTap Insurance Group, Inc. to Exzeo Group, Inc. Exzeo and its consolidated subsidiaries (collectively, the "Company") operate as a technology and services provider to the property and casualty ("P&C") insurance industry.

The Company is currently engaged in the business of providing turn-key insurance technology and operations solutions to customers based on a proprietary platform of purpose-built software and data-analytics applications that are specifically designed for companies in the P&C ecosystem. Prior to July 2024, the Company was also engaged in the P&C insurance business, primarily focusing on homeowners' multi-peril policies in the State of Florida, via its subsidiary TypTap Insurance Company ("TTIC"). On July 1, 2024, Exzeo transferred all 2,500,000 outstanding shares of TTIC to HCI in exchange for the settlement of promissory notes in a transaction that was accounted for as a common control transaction, at which time the Company ceased to be engaged in the P&C insurance business. See Note 3 —"Discontinued Operations" for additional details.

The Company's platform of products and services is highly scalable and poised to continue to optimize the performance of insurance markets, to the benefit of policyholders, capital providers, as well as the overall insurance value chain. The advanced data analytics algorithms and software tools enable insurance carriers to maximize the efficiency of their systems, optimize underwriting outcomes and ultimately serve their customers more effectively. The Company's contracts with customers are variable and typically based on a percentage of premium managed through the Company's software platform. This fee structure allows customers to scale while optimizing for operational efficiencies.

The Company's software platform includes configurable software and data analytics applications that are purpose-built to serve the insurance value chain, from quoting and underwriting, policy management, claims management, geolocation visualization tools, as well as financial reporting. Key products currently in use or under development include AtlasViewer<sup>®</sup>, an online mapping and data visualization platform, Harmony<sup>TM</sup>, a next generation policy administration system, SAMS<sup>TM</sup>, a policy administration platform, and ClaimColony<sup>TM</sup>, an application that provides intelligent automation and management of insurance claims.

The Company provides operational services through Exzeo Insurance Services, Inc. ("EIS"), a wholly owned subsidiary of Exzeo, which performs end-to-end policy administration including underwriting support, application processing, policyholder servicing, premium collection and claims administration. The Company also operates Dark Horse Re, LLC ("Dark Horse"), a reinsurance broker subsidiary, that arranges and negotiates reinsurance contracts for insurance company clients.

Software development and data analytics capabilities are supported by Exzeo USA, Inc. and Cypress Tech Development Company, Inc. ("Cypress Tech"), both of which are subsidiaries that design and maintain components of the Company's technology infrastructure. Cypress Tech also owns Exzeo Software Private Limited ("Exzeo India"), a wholly owned subsidiary domiciled in India, which provides research and development services to the other subsidiaries of Exzeo along with technical support services.

**Note 2 — Summary of Significant Accounting Policies** 

**Basis of Presentation** 

The accompanying unaudited consolidated financial statements for the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

financial information. The consolidated financial statements include the accounts of the Company's controlled subsidiaries. All intercompany accounts and transactions have been eliminated.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been omitted in this interim financial reporting. However, in the opinion of management, the accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company's financial position as of June 30, 2025 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2025. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024.

In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. In addition, accounting policies specific to deferred income taxes, redeemable preferred stock, HCI warrants modification, fair value of TTIC at sale, and stock-based compensation expense involve significant judgments and estimates material to the Company's consolidated financial statements.

**Fair Value Measurements** 

The Company applies fair value measurements for certain financial assets and liabilities in accordance with a hierarchical framework. This hierarchy prioritizes inputs into three levels:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Other inputs that are observable for the assets, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset.

Level 3: Inputs that are unobservable.

Cash and cash equivalents, primarily consisting of money-market funds and certificates of deposit, are at their carrying value amount due to their short maturities and high liquidity.

***Assets Measured and Recorded at Estimated Fair Value on a Recurring Basis*** 

The Company's financial assets are measured at estimated fair value on a recurring basis. The fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** | **Fair Value Measurements Using** |
|  | **(Level 1)** | **(Level 2)** | **(Level 3)** | **Total** |
|  ***As of June 30, 2025*** |  |  |  |  |
|  Financial Assets: |  |  |  |  |
|  *Cash and cash equivalents* | $110732 | $— | $— | $110732 |
| ***As of December 31, 2024*** |  |  |  |  |
|  Financial Assets: |  |  |  |  |
|  *Cash and cash equivalents* | $54502 | $— | $— | $54502 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Recent Accounting Pronouncements</u>**

In November 2024, the FASB issued Accounting Standards Update ("ASU") No. 2024-03 - *Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40)* ("ASU 2024-03") to enhance disclosure requirements for public entities by requiring the disaggregation of certain expense captions presented within the income statement, such as employee compensation and intangible asset amortization. Additionally, the total of these disaggregated expenses must reconcile with the corresponding expense caption on the income statement, with the difference represented as an "other items" amount accompanied by a qualitative description. ASU 2024-03 is effective for all public business entities for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is evaluating the impact of the adoption of the new guidance and expects the adoption of this standard to expand its disclosures.

In December 2023, the FASB issued ASU No. 2023-09—*Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09") to improve income tax disclosure. The update requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The update is effective for fiscal years starting after December 15, 2024, and early adoption is permitted. ASU 2023-09 is effective for the Company beginning with the first quarter of 2025. This update has been adopted on a prospective basis for the fiscal year beginning on January 1, 2025 and will result in enhanced income tax disclosures beginning with the consolidated financial statements for the year ending December 31, 2025.

**Note 3 — Discontinued Operations** 

**<u>Sale of TTIC</u>**

On July 1, 2024, the Company entered into a Stock Purchase Agreement ("Purchase Agreement") with HCI. Pursuant to the Purchase Agreement, the Company transferred to HCI 2,500,000 shares of TTIC's $1.00 par value common stock, representing all of TTIC's issued and outstanding common shares. In exchange, HCI agreed to consider two promissory notes issued by the Company, totaling $117,994 in principal, as fully repaid and $37,006 of a $40,000 2.00% Promissory Note due June 1, 2025 as partially repaid. The amount outstanding under this promissory note was reduced to $2,994 and this promissory note remained in effect. Therefore, the total principal balance of promissory notes considered repaid was $155,000. As the transaction was between entities under common control and there was no change in control of TTIC, the purchase was accounted for as a common control transaction, which was recognized as an equity transaction. In connection with the completion of the sale, the Company recognized an $884 decrease in stockholders' equity, reflecting the difference between the $155,000 of consideration received and the $155,884 of net assets of TTIC at sale.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>TTIC Transaction Summary</u>**

The major classes of assets and liabilities of TTIC transferred are as follows:

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $58774.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums receivable, net | 18835.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reinsurance recoverable, net | 112242.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred policy acquisition costs | 23133.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid reinsurance premiums | 17899.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments | 333364.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 37736.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $601983.0 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses and loss adjustment expenses | $231057.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unearned premiums | 212377.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 2665.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | $446099.0 |

---

**<u>Stock-Based Compensation</u>**

The disposal of TTIC to HCI triggered a "change of control" clause within Exzeo's 2021 Omnibus Incentive Plan. This event led to the immediate vesting of all outstanding unvested stock-based compensation awards, with the exception of awards issued to Paresh Patel, the Chief Executive Officer of Exzeo and HCI, who entered into an agreement to modify the terms of his awards such that they would not immediately vest upon a change in control transaction between affiliates. The total expense recognized from the accelerated vesting of these awards was $1,087. This expense includes the immediate recognition of all previously unrecognized compensation costs related to service-condition shares, market-condition shares, and stock options that vested upon the change of control. The $1,087 in stock-based compensation expense was recorded in selling, general and administrative expenses in the consolidated statements of income for the year ended December 31, 2024. Paresh Patel's modification of his awards, executed prior to the transaction, resulted in his unvested shares continuing to vest according to the original vesting schedule and conditions.

**<u>Strategic Shift and Discontinued Operations Reporting</u>**

The sale of TTIC constituted a disposal of a significant component of the Company, resulting in a strategic shift in the Company's business and a major effect on the Company's operations and financial results. The results of TTIC are reflected in the Company's consolidated financial statements as discontinued operations and, therefore, are presented as assets and liabilities of discontinued operations on the consolidated balance sheets and income from discontinued operations on the consolidated statements of income.

The purpose of this transaction was to restructure Exzeo, allowing it to focus on expanding its technology and insurance solutions services. This restructuring also reduced Exzeo's debt, thereby improving its capital structure and balance sheet.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Continuing Involvement with TTIC</u>**

Following the disposal of TTIC, the Company continues to be a party to the following agreements with TTIC:

**Managing General Agency ("MGA") agreements:** On January 4, 2016, EIS entered into an MGA agreement to provide underwriting services, insurance policy administrative services and claims administration services to TTIC. The MGA agreement had an initial term of three years, through January 4, 2019, with automatic renewals for one-year periods thereafter. The MGA agreement was renewed on January 4, 2025, and the Company expects the MGA agreement to automatically renew for the foreseeable future.

For the six months ended June 30, 2025 and 2024, the Company recognized revenues from the MGA agreement of $69,504 and $55,378, respectively. Cash inflows from the MGA agreement subsequent to the sale were $61,157 for the for the six months ended June 30, 2025.

The amounts recognized under the MGA agreement prior to the sale of TTIC on July 1, 2024 were intercompany transactions. These intercompany transactions are presented gross as revenues from continuing operations and as expenses incurred by discontinued operations for all periods presented to reflect their planned continuance subsequent to the sale of TTIC on July 1, 2024. The gross presentation of these intercompany transactions has no net impact on consolidated net income or consolidated stockholders' equity. See Note 4 — "Revenue" and Note 7 — "Related Party Transactions" for additional details.

**Cost Allocation Agreement:** The Company also provides corporate services such as human resources, accounting, and legal support to TTIC through a Cost Allocation Agreement, by and among Exzeo and its affiliates, initially effective from June 1, 2021, and was amended on July 1, 2025. See Note 16 — "Subsequent Events" for additional details. The Company is reimbursed for any services provided on a cost-reimbursement basis. Expenses allocated under this agreement during the six months ended June 30, 2025 and 2024 were $1,746 and $1,251, respectively. Cash inflows from the Cost Allocation Agreement subsequent to the sale were $1,979 for the six months ended June 30, 2025.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Financial Information of Discontinued Operations</u>**

The major classes of line items constituting income from discontinued operations before tax to after-tax profit or loss reported in discontinued operations for the periods presented, are as follows:

---

| | |
|:---|:---|
|  | **Six Months Ended<br>June 30,** |
|  | **2024** |
|  **Major classes of line items constituting income from discontinued operations, before tax** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross premium earned | $210803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Premiums ceded | (58943) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment and other income | 9542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss and loss adjustments expense | (87219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy acquisition costs | (45356) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | (2973) |
|  **Income from discontinued operations, before tax** | $25854 |
|  Income tax expense from discontinued operations | 6601 |
|  **Income from discontinued operations, after tax, that is presented in the consolidated statements of income** | $19253 |

---

**Note 4 — Revenue** 

The Company generates revenue from three primary sources: Underwriting and management services, claim services, and other technology services. The Company's revenue from contracts with customers by solution are as follows:

---

| | | |
|:---|:---|:---|
|  | **Disaggregated Revenue** | **Disaggregated Revenue** |
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
|  Underwriting and management services | $88545 | $45122 |
|  Claim services | 15452 | 11930 |
|  Other technology services | 4501 | 3253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenue** | $108498 | $60305 |

---

The Company's revenue, disaggregated by revenue recognized at a point in time or over time, is as follows:

---

| | | |
|:---|:---|:---|
|  | **Disaggregated Revenue** | **Disaggregated Revenue** |
|  | **Six Months Ended**<br>**June 30,** | **Six Months Ended**<br>**June 30,** |
|  | **2025** | **2024** |
|  Point in time | $49712 | $30016 |
|  Over time | 58786 | 30289 |
|  **Total revenue** | $108498 | $60305 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The Company primarily derives revenue through insurance solutions services provided to various customers. Specifically, the Company provides services to certain of its affiliates under separate MGA and Policy Administration agreements. See Note 7 — "Related Party Transactions" for additional details.

**<u>Underwriting and Management Services</u>**

The Company provides policy issuance and renewal services, that result in executed insurance policies. In addition, the Company provides management services, including soliciting and negotiating reinsurance for authorized programs, and managing and maintaining a policy administration system. Furthermore, the Company offers administrative services, including maintaining policy records, and printing policy-related documents.

The Company has identified three performance obligations within its underwriting and management services: 1) policy issuance and renewal, 2) management services, and 3) reinsurance placement assistance and brokerage services.

The transaction price allocated to the policy issuance and renewal performance obligation is determined based on the estimated standalone selling price of the service. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, plus related policy fees, that varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin approach. The transaction price is comprised of variable consideration because the Company is obligated to return a portion of the consideration if an underlying policy is canceled subsequent to issuance or renewal. Thus, the Company applies an estimate of constraint against the transaction price related to possible underlying policy cancellations in the future using the expected value method. Revenue related to the policy issuance and renewal performance obligation is recognized at the point in time when a policy is issued or renewed, as this marks the point at which the customers receive the economic benefits of the policy issuance or renewal, with the related services being substantially complete.

The transaction price allocated to the management services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct written premiums, assumed written premiums, or both, and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the expected cost plus a margin. Revenue related to management services is deferred and recognized ratably over time in the period as the services are provided.

The Company also provides reinsurance placement and brokerage assistance ("sub-broker services") via Dark Horse. Revenue from these services is recognized at a point in time, when Dark Horse fulfills its performance obligation by completing the services for the customer and is included in underwriting and management services. Due to the nature of the services, there are no significant financing components or variable consideration. For the six months ended June 30, 2025, the Company recognized revenue from sub-broker services of $1,750, reflecting the fixed fee for services rendered during the year. For the six months ended June 30, 2024, the Company did not recognize revenue from sub-broker service. As of June 30, 2025, the Company had a receivable balance of $1,750 related to this service. As of December 31, 2024, the Company did not have a receivable balance related to this service.

**<u>Claim Services</u>**

The Company provides services for all reported and assigned claims for which the Company will investigate, evaluate, handle, adjust, and settle each claim. While there are a variety of activities performed, the overall nature of the obligation is to provide services for all reported and assigned claims, including catastrophe claims. The

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

Company also provides "Catastrophe Services" in the form of claim services to handle and adjust the increased and extraordinary volume of claims attributable to a catastrophe.

The Company has identified two performance obligations within claim services: 1) claim services and 2) catastrophe services.

The transaction price allocated to the claim services performance obligation is determined based on the estimated standalone selling price of the services. This price is calculated as a proportion of direct and assumed written premiums and varies based on the specific terms of each agreement. The estimated standalone selling price was determined using the estimated cost plus a margin approach. Revenue related to claim services is recognized over time using a time-based input method, measured ratably over the expected duration to close each claim. This method reflects the continuous transfer of services to the customer and aligns revenue recognition with the ongoing delivery of claims handling services.

The transaction price allocated to the catastrophe services performance obligation is determined based on the estimated standalone selling price of the services, which includes per-claim fees and a percentage of indemnification costs, and varies based on the specific terms of each agreement. The transaction price is comprised of variable consideration because the Company must estimate the ultimate number of claims to be handled, and the total amount of indemnification paid on those claims. Thus, the Company applies an estimate of constraint against the transaction price related to possible overestimation of the transaction price using the expected value method. Revenue for this performance obligation is recognized over time using an output method that measures progress by comparing total claims paid to date against the total expected claims to be paid.

**<u>Other Technology Services</u>**

The Company's other technology services revenue is derived primarily from fees for providing various proprietary software, which includes functionality for policy administration, billing, reporting and compliance, and claims handling, to the customer through software service agreements.

The Company has identified two performance obligations related to software services: 1) policy administration software service and 2) catastrophe claims software service.

The transaction price of the policy administration software service performance obligation is based on the volume of policies or claims processed by the affiliate using the Company's software at the end of each quarter or a fixed fee. The overall nature of the obligation is to provide the customer access to the software. Accordingly, the ongoing administration and software services are deemed to have one performance obligation. Each of these arrangements represents a stand-ready obligation to perform these activities on an as-needed basis. As the Company has a right to invoice the affiliates at an amount that corresponds directly with the value of service rendered, the Company applied the as-invoiced practical expedient to recognize revenue for this performance obligation.

The transaction price of the catastrophe claims software service is calculated as a percentage of the amount incurred for each catastrophe claim handled. The nature of the performance obligation is that the Company will provide the service of allowing the customer access to its software systems. This catastrophe claims software services revenue is recognized over time as the performance obligation is satisfied, generally ratably over the period of four to five years.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Remaining Performance Obligations</u>**

As of June 30, 2025 and December 31, 2024, the aggregate amount of the transaction prices allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $82,205 and $55,576, respectively, of which $77,938 and $47,210, respectively, is expected to recognized as revenue within the next 12 months and $4,267 and $8,366, respectively, is expected to be recognized beyond the next 12 months.

**<u>Contract Balances</u>**

The Company receives payments from customers based on billing terms as established in our contracts. Accounts receivable are recorded when the right to consideration becomes unconditional and only the passage of time is required before payment of consideration is due as of the reporting period. Timing of revenue recognition may differ from the timing of invoicing. Receivables related to these services are classified under Receivable from related parties on the consolidated balance sheet, as revenues are earned through affiliated entities with the exception of sub-broker services. The Company typically collects these receivables within 15 days of each reporting period, with cash collections generally completed within one year, given the annual term of insurance policies. As of June 30, 2025 and December 31, 2024, the Company reported $18,665 and $2,025, respectively, in receivable from related parties, related to these contracts.

The portion of revenue not yet earned is recorded as a contract liability on the consolidated balance sheet. Contract liabilities are recorded when the Company has received consideration or has an unconditional right to payment from the customer but has yet to transfer the services. This represents the portion of revenue that will be recognized over the term of the respective agreements. The over time performance obligations fall in this category given that we recognize revenue for the non-cancellable term of the contract.

The changes in the contract liability balance during the six months ended June 30, 2025 were a result of normal business activity and not materially impacted by any other factors. During the six months ended June 30, 2025, the Company recognized revenue of $34,663, related to the unearned revenue balance as of December 31, 2024. Contract liabilities are reflected in current liabilities for those to be recognized in less than 12 months and in non-current liabilities for those to be recognized more than 12 months from the date presented in the Company's consolidated balance sheets.

The changes in the contract cost assets balance are part of the ordinary course of business. Contract cost assets are reflected in current assets for those to be recognized in less than 12 months and in non-current assets for those to be recognized more than 12 months from the date presented in the Company's consolidated balance sheets.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 5 — Comprehensive Income (Loss)** 

Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), which for the Company includes changes in unrealized gains or losses of available-for-sale fixed-maturity securities carried at fair value and changes in the allowance for credit losses related to these investments. Reclassification adjustments for realized (gains) losses, at cost or amortized cost, are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income (loss) and the related tax effects allocated to each component were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended<br>June 30, 2024** | **Six Months Ended<br>June 30, 2024** | **Six Months Ended<br>June 30, 2024** |
|  | **Before<br>Tax** | **Income Tax<br>Effect** | **Net of<br>Tax** |
|  Net unrealized gains arising during the period | $307 | $77 | $230 |
|  Total other comprehensive income | $307 | $77 | $230 |

---

**Note 6 — Concentrations of Credit Risk** 

The Company's receivables arising from the revenue potentially expose the Company to concentrations of credit risk, with a significant portion coming from related-party insurance companies for which the Company serves as an insurance solutions provider. See Note 1 – "Nature of Operations" for additional details.

As of June 30, 2025 and December 31, 2024, receivable from related parties related to revenue totaled $18,665 and $2,025, respectively. As of June 30, 2025, receivable amount related to revenue from TTIC, Homeowners Choice Managers, Inc. ("HCM"), Condo Owners Reciprocal Exchange ("CORE") and Tailrow Insurance Exchange ("Tailrow") are $9,566, $7,982, $613 and $504, respectively. As of December 31, 2024, receivable amount related to revenue from TTIC, HCM and CORE are $543, $519 and $963, respectively. See Note 7 — "Related Party Transactions" for additional details.

**Note 7 — Related Party Transactions** 

**<u>Related Party Service Agreements – Revenue</u>**

***<u>Management fees from insurance companies</u>***

EIS is party to an MGA agreement with TTIC, which began on January 4, 2016. For the six months ended June 30, 2025 and 2024, the Company recognized underwriting, management and claim services fees of $67,409 and $54,174, respectively. As of June 30, 2025 and December 31, 2024, unearned revenue of $36,095 and $35,118, respectively, were recorded within the contract liabilities in the consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the Company had accounts receivable outstanding related to the above fees of $9,067 and $543, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

On November 21, 2023, EIS entered into an MGA agreement with Core Risk Managers, LLC ("CRM"), the attorney-in-fact ("AIF"), for CORE. For the six months ended June 30, 2025 and 2024, the Company recognized underwriting, management and claim services fees of $2,627 and $2,874, respectively. As of June 30, 2025 and December 31, 2024, unearned revenue of $3,173 and $3,172, respectively, was recorded within the contract liabilities in the consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the Company had accounts receivable outstanding related to the above fees of $616 and $963, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

On November 5, 2024, EIS entered into an MGA agreement with the AIF for Tailrow. For the six months ended June 30, 2025, the Company recognized revenue related to underwriting, management and claim services fees of $2,106. As of June 30, 2025, unearned revenue of $974 was recorded within the contract liabilities in the consolidated balance sheets. As of June 30, 2025, the accounts receivable related to above fees outstanding were $504.

On January 1, 2025, EIS entered into a policy administration service agreement with HCM, under which EIS will provide policy administration services, including underwriting support, policy issuance, billing, data processing, and customer services for Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI"). EIS will receive commission as certain percentage of HCPCI's total written premium, along with a per policy as policy placement fee. For the six months ended June 30, 2025, the Company recognized revenue related to underwriting, management and claim service fees of $30,104. As of June 30, 2025, unearned revenue of $24,301 was recorded within the contract liabilities in the consolidated balance sheets. As of June 30, 2025, the Company had accounts receivable outstanding related to the above fees of $7,599. Such fees are typically settled in the month following the period in which the services were rendered.

***<u>Policy administration services</u>***

The Company charges HCM for each new and renewed HCPCI flood policy and this service charge only applies to flood policies outside of Florida. For the six months ended June 30, 2025, the policy administration income is immaterial and for the six months ended June 30, 2024, the Company recognized policy administration income of $3. There were no accounts receivable outstanding related to HCM flood policy administration fee as of June 30, 2025 and December 31, 2024, respectively. Such fees are typically settled within two weeks following the invoice date.

***<u>Other technology services</u>***

The Company charges HCM for various usage-based or flat fees to use the following software: *SAMS<sup>TM</sup>*, *Harmony<sup>TM</sup>*, *CasaClue<sup>TM</sup>*, *AtlasViewer<sup>®</sup>*, and *ClaimColony<sup>TM</sup>*. An additional flat fee is paid for other general software services. Effective January 1, 2025, the Company amended the agreement with HCM and only charges a flat fee per claim to use *ClaimColony<sup>TM</sup>*. For the six months ended June 30, 2025 and 2024, the Company recognized policy administration software service income of $19 and $442, respectively.

The Company provides catastrophe claims software service through the usage of its software, enabling efficient management and adjustment of the increased claim volumes arising from catastrophes. This service is offered to HCM, TTIC, CRM and Tailrow under their respective agreements.

For the six months ended June 30, 2025 and 2024, the Company recognized catastrophe claims software service income of $4,483 and $2,370, respectively. As of June 30, 2025 and December 31, 2024, the unearned revenue of $17,661 and $17,286, respectively, were recorded within the contract liabilities in the consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the Company had accounts receivable outstanding related to catastrophe claims software service income of $879 and $518, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

**<u>Related Party Service Agreements—Expenses</u>**

***<u>Agent Commissions</u>***

Under an agent commission agreement with Omega Insurance Agency, Inc. ("Omega"), a subsidiary of HCI, the Company pays commissions on premiums received in cash for policies issued by specific customers during the

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

term of the agreement. Commission expenses for the six months ended June 30, 2025 and 2024 were $53 and $56, respectively. These expenses are reflected in the cost of revenue in the consolidated statements of income. As of June 30, 2025 and December 31, 2024, the Company had accounts payable outstanding related to the agent commission were $5 and $9, respectively.

***<u>Claim Services</u>***

The Company receives field adjuster services from Griston Claim Services, Inc. ("GCS"), a subsidiary of HCI, and pays a fee for the services received. Field adjuster services expenses for the six months ended June 30, 2025 and 2024 were $1,003 and $1,078, respectively. These expenses are reflected in the cost of revenue in the consolidated statements of income.

The Company also pays claim services fee to Griston Claim Management, Inc ("GCM"), a subsidiary of HCI. The Company pays GCM a fee per internally handled non-catastrophe claims for TTIC. For catastrophe claim services provided for TTIC, the Company pays GCM a fee per claim and a percentage of the incurred loss on the catastrophe claim. For claim services provided for CORE, the Company pays GCM a fee plus a percentage of the amount expended for indemnification of the loss per claim handled by GCM. For claim services provided for Tailrow, the Company pays GCM a per-claim fee. For the six months ended June 30, 2025 and 2024, claim services expenses were $7,360 and $6,031, respectively. These expenses are reflected in the cost of revenue in the consolidated statements of income.

As of June 30, 2025 and December 31, 2024, accounts payable outstanding related to the claim services were $1,044 and $429, respectively. Such fees are typically settled in the month following the period in which the services were rendered.

***<u>Office Leases</u>***

The Company entered into a lease agreement with Century Park Holding, LLC, a subsidiary of HCI, for an office space in Tampa, Florida, beginning on January 1, 2023 and ending on December 31, 2032.

In 2022, the Company signed a lease agreement with Silver Springs Property Investment, LLC, a subsidiary of HCI, for an office building in Ocala, Florida. The lease began on January 1, 2022 and was scheduled to end on December 31, 2024. On July 4, 2024, the Company exercised the renewal option and extended the lease term such that it will now end on December 31, 2027.

For the six months ended June 30, 2025, the lease expense related to these leases were $765 and $743, respectively. These expenses are reflected in the cost of revenue and selling, general and administrative expenses in the consolidated statements of income.

As of June 30, 2025 and December 31, 2024, there were no accounts payable outstanding related to the office lease as payments are due on the 1st day of each calendar month.

**<u>Corporate Cost Allocation</u>**

The Company provides corporate services to TTIC under a corporate cost allocation agreement between Exzeo and affiliates. Expenses allocated under this agreement during the six months ended June 30, 2025 and 2024 were $1,746 and $1,251, respectively. The cost allocation is presented as a reduction in selling, general and administrative expenses within the consolidated statements of income. Such fees are typically settled in the month following the period in which the services were rendered. The agreement was terminated effective July 1, 2025. See Note 16 — "Subsequent Events" for additional details.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**<u>Notes Payable</u>**

On December 22, 2021, the Company issued a demand promissory note to HCI for the principal amount of $40,000 with an annual interest rate of 2.0%, maturing on June 30, 2023. The proceeds were used to make a capital contribution to TTIC. On February 5, 2023, HCI's Board of Directors extended the maturity date for the principal and accrued interest to June 30, 2025.

On June 1, 2022, the Company issued a promissory note to HCI for the principal amount of $2,994 with an annual interest rate of 3.25%, maturing on June 1, 2025.

On December 21, 2022, the Company issued a promissory note to HCI for the principal amount of $15,000 with an annual interest rate of 5.5%, maturing on December 21, 2025. The proceeds were used to make a capital contribution to TTIC.

On January 22, 2024, the Company issued a $100,000 promissory note to HCI with an annual interest rate of 5.5%, maturing on January 22, 2029. The proceeds were used to finance the redemption of the Redeemable Series A Preferred Stock. See Note 12 — "Redeemable Series A Preferred Stock" for additional details.

On July 1, 2024, the Company entered into a Purchase Agreement with HCI. Pursuant to the Purchase Agreement, the Company transferred to HCI 2,500,000 shares of TTIC's $1.00 par value common stock, representing all of TTIC's issued and outstanding common shares. In exchange, HCI agreed to consider three promissory notes issued by the Company, totaling $117,994 in principal, as fully repaid with the exception of the 2.0% Promissory Note due June 1, 2025. This promissory note remained in effect with its principal balance reduced from $40,000 to $2,994 until it was fully repaid in November 2024.

Interest expenses for the six months ended June 30, 2024 for the notes with HCI were $3,306.

**<u>Non-cash Capital Contributions</u>**

On January 22, 2024, the Company redeemed all of the Redeemable Series A Preferred Stock held by the fund associated with Centerbridge Partners, L.P. (collectively, the "Preferred Investor") and in connection with the redemption, HCI extended the expiration date of the warrant currently held by the Preferred Investor. See Note 12 — "Redeemable Series A Preferred Stock" for additional details. The Company reflected the full costs of redemption by recording the incremental fair value of the HCI warrant modification as a non-cash capital contribution and deemed dividend, amounting to $3,386 which was subtracted from net income to arrive at income available to common stockholders in the calculation of earnings per share.

For the six months ended June 30, 2025, the Company recognized compensation expense related to HCI restricted stock of $25 in the consolidated statements of income and non-cash capital contribution in the consolidated balance sheets. See Note 14 – "Stock-based Compensation" for additional details.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 8 — Leases** 

The Company's ROU assets and corresponding liabilities for operating leases are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
|  Operating leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ROU Assets | $7469 | $8052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities - current | $2291 | $2132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Liabilities - non-current | 5518 | 6219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | $7809 | $8351 |

---

The Company has entered into multiple lease agreements with its affiliates. See Note 7 — "Related Party Transactions" for additional details.

The Company's operating leases in which the Company is a lessee are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Class of Assets** | **Initial Term** | **Renewal<br>Option** | **Other Terms and<br>Conditions** |
|  ***Operating lease:*** |  |  |  |
|  Office space | 3 to 10 years | Yes | (a), (b) |
|  Office equipment | 5.25 years | Not applicable |  |

---

(a) There is a variable lease payment.

(b) Rent escalation provisions exist.

As of June 30, 2025, maturities of lease liabilities were as follows:

---

| | |
|:---|:---|
|  | **Operating Leases** |
|  Due in 12 months following June 30,  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2025 | $1687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2026 | 1738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2027 | 1461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2028 | 1162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2029 | 1184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2030 and after | 2878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | 10110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: interest and foreign taxes | 2301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease obligations | $7809 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The quantitative information with regards to the Company's operating and financing leases is as follows:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
|  Lease costs: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease costs\* | $872 | 847 |
|  Total lease costs | $872 | $847 |
|  Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows – operating leases | $816 | $797 |
|  Weighted-average remaining lease term: |  |  |
|  Operating leases (in years) |  |  |
|  Weighted-average discount rate: |  |  |
|  Operating leases |  |  |

---

\* Included in selling, general and administrative expenses on the consolidated statements of income.

**Note 9 — Segment Information** 

Operating segments are defined as components of an enterprise, which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM"), or decision group, in deciding how to allocate resources and assessing performance. The Company's chief executive officer serves as the CODM. The CODM reviews financial information on a consolidated basis and allocates resources and evaluates financial performance based on consolidated revenue and operating income. As such, the Company has determined that it operates as one operating and reportable segment.

During the third quarter of 2024, the Company completed the sale of TTIC to its parent company, HCI. As a result, the operations of TTIC have been classified as discontinued operations in the consolidated financial statements for all periods presented. In connection with this change, the Company reevaluated its segment reporting and determined that the remaining operations constitute a single operating and reportable segment. Prior period segment information has been recast to conform to the current period presentation reflecting one reportable segment.

All of the Company's revenues are earned in the United States, and all assets are located in the United States. See Note 6 – "Concentration of Credit Risk" for additional details about major customers.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

The following table presents consolidated revenue, significant expense categories regularly reviewed by the CODM, and net income for the periods indicated:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  Revenue | $108498 | $60305 |
|  Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy commission and related expenses | 22741 | 18710 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Outsourced claims fees | 6086 | 3891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct personnel expense | 10079 | 7002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 6011 | 6214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 1205 | 1102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Gross profit** | 62376 | 23386 |
|  **Operating expenses** |  |  |
|  Selling, general and administrative: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personnel cost | 4224 | 2777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 1442 | 1455 |
|  Research and development | 4575 | 3290 |
|  Depreciation and amortization | 211 | 156 |
|  **Total operating expenses** | 10452 | 7678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Operating income** | 51924 | 15708 |
|  Investment income | 1161 | 142 |
|  Interest expense |  | (3306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income before taxes** | $53085 | $12544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income tax expense** | 13471 | 3433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income** | $39614 | $9111 |

---

**Note 10 — Income Taxes** 

During the six months ended June 30, 2025 and 2024, the Company recorded income tax expense from continuing operations of $13,471 and $3,433, respectively, which resulted in effective tax rates of 25.4% and 27.4% respectively. The decrease in the effective tax rate, as compared with the corresponding period in the prior year, was primarily attributable to a higher effective tax rate for the period during 2024 from certain non-deductible compensation expenses for the period during 2024. The Company's estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes, certain nondeductible components and tax-exempt items.

A valuation allowance must be established for deferred tax assets when it is more likely than not that deferred assets will not be realized based on available evidence both positive and negative, including recent results, available tax planning strategies, and projected future taxable income. As a result of the sale of TTIC, the Company incurred a tax loss and recognized a deferred tax asset of $544. As of June 30, 2025, management concluded that it was more likely than not that the deferred tax asset related to the sale of TTIC would not be realized and therefore recorded a valuation allowance of $544.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 11 — Earnings Per Share** 

GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company's restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings per share during periods of net income or loss. A summary of the numerator and denominator of the basic and diluted loss per common share for the six months ended June 30, 2025 and 2024, is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Income**<br>**(Numerator)** | **Shares (a)**<br>**(Denominator)** | **Per Share**<br>**Amount** |
|  **Continuing Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations, after tax | $39614 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: (Income) loss attributable to participating securities | (1912) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) allocated to common stockholders | 37702 | 78741 | $0.48 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions | $37702 | 78741 | $0.48 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Income**<br>**(Numerator)** | **Shares (a)**<br>**(Denominator)** | **Per Share**<br>**Amount** |
|  **Continuing Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing operations, after tax | $9111 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Dividends on preferred stock | (10149) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: (Income) loss attributable to participating securities from continuing operations | 52 |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) allocated to common stockholders from continuing operations | (986) | 76297 | $(0.01) |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from continuing operations | $(986) | 76297 | $(0.01) |
|  **Discontinued Operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from discontinued operations, after taxes | $19253 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: Income attributable to participating securities from discontinued operations | (967) |  |  |
|  **Basic Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income allocated to common stockholders from discontinued operations | 18286 | 76297 | $0.24 |
|  **Diluted Income Per Share:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income available to common stockholders and assumed conversions from discontinued operations | $18286 | 76297 | $0.24 |

---

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

(a) Shares in thousands.

We exclude antidilutive Exzeo stock options and Redeemable Series A Preferred Stock from our calculation of weighted-average shares for diluted earnings per share when the inclusion would have an anti-dilutive effect.

**Note 12 — Redeemable Series A Preferred Stock** 

In 2021, the Company completed a capital investment transaction with the Preferred Investor, a private investment management fund. Under the investment agreement, the Company issued 9,000,000 voting shares of its Series A-1 Preferred Stock and 1,000,000 non-voting shares of its Series A-2 Preferred Stock (together "Series A Preferred Stock"), $0.001 par value, at a price of $10 per share for total proceeds of $100,000. On July 3, 2023, an additional 1,000,000 shares of non-voting Series A-2 Preferred Stock was authorized to exchange an equal number of shares of Series A-1 Preferred Stock. See Note 13 — "Stockholders' Equity" for additional details.

On January 22, 2024, the Company entered into a Stock Redemption Agreement with the Preferred Investor which allowed the Company to redeem all of the Series A Preferred Stock. The redemption totaled $100,000 plus accrued and unpaid dividends of approximately $2,923. At redemption, the difference between the consideration transferred of $102,923 and the redemption date carrying value of $96,695 is recorded as a deemed dividend which is subtracted from net income when calculating income available to common stockholders.

In connection with the redemption described above, HCI had extended the expiration date of the warrants for HCI stock that had been issued as a part of the original capital investment transaction with the Preferred Investor to purchase 750,000 shares of HCI common stock. The amended and restated warrant had extended the expiration for 450,000 underlying warrant shares in 150,000 share increments to December 31, 2026, December 31, 2027, and December 31, 2028. The remaining 300,000 warrants continued to have the same original expiration date of February 26, 2025. The Company had reflected the full costs of redemption by recording the incremental fair value of the HCI warrants modification as a non-cash capital contribution and deemed dividend, amounting to $3,386.

The activity of redeemable preferred stock during the six months ended June 30, 2024, is as follows:

---

| | |
|:---|:---|
|  | **2024** |
|  Balance as of January 1 | $96160 |
|  Increase (decrease): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued cash dividends | 424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion - increasing dividend rate | 111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment to maximum redemption value | 6228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid | (2923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption | (100000) |
|  Balance as of March 31 | $— |

---

The Company fully redeemed all Series A Preferred Stock in January 2024. For the six months ended June 30, 2024, dividends on the Series A Preferred Stock totaled $535, consisting of accrued cash dividends of $424 and accretion related to increasing dividend rates of $111.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

**Note 13 — Stockholders' Equity** 

**Common Stock** 

The Company is authorized to issue 184,000,000 shares of common stock consisting of 181,860,000 shares of voting common stock and 2,140,000 shares of non-voting common stock.

**Preferred Stock** 

On January 22, 2024, the Company redeemed the outstanding 10,000,000 shares of Series A Preferred Stock. See Note 12 — "Redeemable Series A Preferred Stock" for additional details. The Company is authorized to issue to 38,502,000 shares of Preferred Stock upon the terms and conditions set forth in the Company's Third Amended and Restated Articles of Incorporation, as amended.

**Note 14 — Stock-Based Compensation** 

**2021 Omnibus Incentive Plan** 

As of June 30, 2025, the 2021 Omnibus Incentive Plan (the "2021 Omnibus Plan") authorizes the issuance of up to 12,585,851 shares, with 3,353,376 shares remaining for future grant.

***<u>Stock Options</u>***

A summary of the stock option activity for the six months ended June 30, 2025 and 2024, is as follows (option amounts not in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term** | **Aggregate<br>Intrinsic<br>Value** |
|  Outstanding at January 1, 2025 | 6350000 | $23.00 | 0.75 years | $— |
|  Outstanding at March 31, 2025 | 6350000 | $23.00 | 0.5 years | $— |
|  Outstanding at June 30, 2025 | 6350000 | $23.00 | 0.25 years | $— |
|  Exercisable as of June 30, 2025 | 5725000 |  |  |  |
|  Outstanding at January 1, 2024 | 6350000 | $23.00 | 1.75 years | $— |
|  Outstanding at March 31, 2024 | 6350000 | $23.00 | 1.50 years | $— |
|  Outstanding at June 30, 2024 | 6350000 | $23.00 | 1.25 years | $— |
|  Exercisable as of June 30, 2024 | 3968750 |  |  |  |

---

There were no options granted or exercised for the six months ended June 30, 2025 and 2024. For the six months ended June 30, 2025 and 2024, the Company recognized $690 and $878, respectively, of compensation expense for stock options which was recorded within the cost of revenue and selling, general and administrative sections in the consolidated statement of income. The deferred tax benefits related to stock options were $50 for the six months ended June 30, 2025 and 2024.

As of June 30, 2025 and December 31, 2024, there were $351 and $1,040, respectively, of unrecognized compensation expense related to non-vested stock options. The Company expects to recognize the remaining compensation expense over a period of 0.25 years.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

***<u>Restricted Stock Awards</u>***

Information with respect to the activity of unvested restricted stock awards during the six months ended June 30, 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>Restricted<br>Stock<br>Awards** | **Weighted<br>Average<br>Grant<br>Date Fair<br>Value** |
|  Balance at January 1, 2025 | 4120174 | $2.16 |
|  Vested | (51554) | $1.12 |
|  Forfeited | (100500) | $3.00 |
|  Nonvested at March 31, 2025 | 3968120 | $2.15 |
|  Vested |  | $— |
|  Forfeited | (8400) | $3.00 |
|  Nonvested at June 30, 2025 | 3959720 | $2.15 |
|  Balance at January 1, 2024 | 4233243 | $0.63 |
|  Vested | (224904) | $1.39 |
|  Forfeited | (18480) | $2.02 |
|  Nonvested at March 31, 2024 | 3989859 | $0.58 |
|  Vested | (118624) | $4.60 |
|  Forfeited | (6503) | $1.32 |
|  Nonvested at June 30, 2024 | 3864732 | $0.45 |

---

For the six months ended June 30, 2025 and 2024, the Company recognized compensation expense of $714 and $479, respectively, and deferred tax benefits of $119 and $75, respectively, related to restricted stock awards.

As of June 30, 2025 and December 31, 2024, there was approximately $7,414 and $8,455, respectively, of total unrecognized compensation expense related to non-vested restricted stock. The Company expects to recognize the remaining compensation expense over a weighted-average period of 5.42 years.

For the six months ended June 30, 2025, there was no repurchase of common shares held by former employees. For the six months ended June 30, 2024, the Company repurchased 6,830 of common shares outstanding with a fair value of $1.46 per share held by former employees for total repurchase price of $12. The total purchase price includes $2, related to the excess of the repurchase price over the fair value paid, and was recognized as additional compensation cost in the selling, general and administrative expenses in the consolidated statements of income for the six months ended June 30, 2024.

***<u>HCI Equity Incentive Plan</u>***

HCI has an incentive plan that provides restricted stock awards to employees of HCI and its subsidiaries in connection with their service. The terms of the restricted stock awards include service conditions and market condition, and the awards generally vest over a period of four years. In December 2024, certain employees of HCI and its subsidiaries were transferred to the Company. The Company recognizes stock-based compensation expense for those employees' unvested shares based on the fair value determined by HCI at the original grant date and the same vesting terms established at the grant date. The awards are not remeasured following the transfer.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

For the six months ended June 30, 2025, the Company recognized compensation expense related to HCI restricted stock of $25 in the consolidated statements of income and non-cash capital contribution in the consolidated balance sheets.

**Note 15 — Commitments and Contingencies** 

**Legal Matters** 

From time to time, the Company may be involved in legal and regulatory proceedings arising in the ordinary course of business. As of June 30, 2025 and December 31, 2024, the Company is not a party to any material legal proceedings that, individually or in the aggregate, are expected to have a material adverse effect on its business, financial condition, or results of operations. The Company evaluates potential exposure to such matters and records a liability when an outcome is probable, and the amount can be reasonably estimated.

**Lease Commitments** 

The Company leases office spaces and certain equipment under non-cancelable operating leases. These leases have remaining terms ranging from two and a half years to eight and a half years, and may include renewal options or escalation clauses. The Company also has minimum future lease payments obligations. See Note 8 — "Leases" for additional details.

**Indemnification Obligations** 

The Company provides certain indemnification commitments under its agreements with customers. These obligations may require the Company to defend against claims for certain damages arising from breaches of contractual terms. As of June 30, 2025 and December 31, 2024, the Company has not accrued any expenses related to such claims.

**Regulatory Matters** 

The Company is required to maintain compliance with various federal and state laws, including data privacy regulations and insurance-related requirements. The Company continues to enhance its compliance process and address evolving operations.

**Note 16 — Subsequent Events** 

The Company has evaluated subsequent events through September 25, 2025, the date the consolidated financial statements were available to be issued. There were no subsequent events requiring modification to or disclosure in the consolidated financial statements, except as detailed below:

Effective July 1, 2025, the Company's corporate cost allocation agreement was amended to exclude TTIC as part of the agreement. Therefore, we will not expect to apportion cost moving forward. The Company does not expect a material impact to its financial statements as a result of the termination.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law. The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements and will recognize the income tax effects in the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

------

##### [**Table of Contents**](#toc)
**EXZEO GROUP, INC. AND SUBSIDIARIES** 

**Notes to Consolidated Financial Statements** 

*(Amounts in thousands, except share and per share amounts, unless otherwise stated)* 

On July 22, 2025, the Company granted approximately 90,000 shares of service-condition restricted stock awards to certain employees under the 2021 Omnibus Incentive Plan. The stock awards will vest over a six-year period. The Company expects to recognize compensation expense over the service period accordingly.

------

##### [**Table of Contents**](#toc)
**Common Stock** 

**Shares**![LOGO](g28749g64l34.jpg)

**Exzeo Group, Inc.** 

**PRELIMINARY PROSPECTUS** 

*Joint Bookrunning Managers* 

**Truist Securities**

---

| | | |
|:---|:---|:---|
| **Citizens Capital Markets** |  | **William Blair** |
|  | <br> *Co-Manager*<br>**Fifth Third Securities** |  |

---

Through and including , 20 (the 25th day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

**, 2025** 

------

##### [**Table of Contents**](#toc)
**PART II.** 

**INFORMATION NOT REQUIRED IN PROSPECTUS** 

**Item 13. Other Expenses of Issuance and Distribution** 

The following table sets forth all the costs and expenses, other than underwriting discounts and commissions, to be paid by us in connection with the sale of the shares of common stock being registered hereby. All amounts shown below are estimates, except the SEC registration fee, the FINRA filing fee and the stock exchange listing fee:

---

| | |
|:---|:---|
|  | **Amount** |
|  SEC registration fee | $15310 |
|  FINRA filing fee | 15500 |
|  NYSE listing fee | \* |
|  Printing expenses | \* |
|  Legal fees and expenses | \* |
|  Accounting fees and expenses | \* |
|  Transfer agent and registrar fees and expenses | \* |
|  Miscellaneous expenses | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $\* |

---

\* To be filed by amendment.

**Item 14. Indemnification of Directors and Officers** 

Exzeo Group, Inc. is incorporated under the laws of the state of Florida. Section 607.0831 of the Florida Business Corporation Act, as amended (the "FBCA"), provides that a director is not personally liable for monetary damages to the corporation or any other person for any statement, vote, decision to take or not to take action, or any failure to take any action, as a director, unless (1) the director breached or failed to perform his or her duties as a director and (2) the director's breach of, or failure to perform, those duties constitutes (a) a violation of the criminal law, unless the director had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe his or her conduct was unlawful, (b) a transaction from which the director derived an improper personal benefit, either directly or indirectly, (c) a circumstance under which the liability provisions of Section 607.0834 of the FBCA are applicable, (d) in a proceeding by or in the right of the corporation to procure a judgment in its favor or by or in the right of a shareholder, conscious disregard for the best interest of the corporation, or willful or intentional misconduct, or (e) in a proceeding by or in the right of someone other than the corporation or a shareholder, recklessness or an act or omission which was committed in bad faith or with malicious purpose or in a manner exhibiting wanton and willful disregard of human rights, safety, or property. A judgment or other final adjudication against a director in any criminal proceeding for a violation of the criminal law estops that director from contesting the fact that his or her breach, or failure to perform, constitutes a violation of the criminal law; but does not estop the director from establishing that he or she had reasonable cause to believe that his or her conduct was lawful or had no reasonable cause to believe that his or her conduct was unlawful.

Under Section 607.0851 of the FBCA, a corporation has power to indemnify any person who is a party to any proceeding (other than an action by, or in the right of the corporation), because he or she is or was a director or officer of the corporation against liability incurred in connection with such proceeding, including any appeal thereof, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any proceeding by judgment, order, settlement or conviction or upon a plea of nolo contendere or its equivalent shall not, of itself, create a

------

##### [**Table of Contents**](#toc)
presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in, or not opposed to, the best interests of the corporation or, with respect to any criminal action or proceeding, has reasonable cause to believe that his or her conduct was unlawful.

For purposes of the indemnification provisions of the FBCA, "director" or "officer" means an individual who is or was a director or officer, respectively, of a corporation or who, while a director or officer of the corporation, is or was serving at the corporation's request as a director or officer, manager, partner, trustee, employee, or agent of another domestic or foreign corporation, limited liability company, partnership, joint venture, trust, employee benefit plan, or another enterprise or entity and the terms include, unless the context otherwise requires, the estate, heirs, executors, administrators, and personal representatives of a director or officer.

In addition, under Section 607.0851 of the FBCA, a corporation has the power to indemnify any person, who was or is a party to any proceeding by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director or officer, against expenses and amounts paid in settlement not exceeding, in the judgment of the board of directors, the estimated expense of litigating the proceeding to conclusion, actually and reasonably incurred in connection with the defense or settlement of such proceeding, including any appeal thereof. Such indemnification shall be authorized if such person acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be made under this subsection in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable unless, and only to the extent that, the court in which such proceeding was brought, or any other court of competent jurisdiction, shall determine upon application that, despite the adjudication of liability but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

Section 607.0852 of the FBCA provides that a corporation must indemnify an individual who is or was a director or officer who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the individual was a party because he or she is or was a director or officer of the corporation against expenses incurred by the individual in connection with the proceeding.

Section 607.0853 of the FBCA provides that a corporation may, before final disposition of a proceeding, advance funds to pay for or reimburse expenses incurred in connection with the proceeding by an individual who is a party to the proceeding because that individual is or was a director or an officer if the director or officer delivers to the corporation a signed written undertaking of the director or officer to repay any funds advanced if (a) the director or officer is not entitled to mandatory indemnification under Section 607.0852; and (b) it is ultimately determined under Section 607.0854 or Section 607.0855 (as described below) that the director or officer has not met the relevant standard of conduct described in Section 607.0851 or the director or officer is not entitled to indemnification under Section 607.0859 (as described below).

Section 607.0854 of the FBCA provides that, unless the corporation's articles of incorporation provide otherwise, notwithstanding the failure of a corporation to provide indemnification, and despite any contrary determination of the board of directors or of the shareholders in the specific case, a director or officer of the corporation who is a party to a proceeding because he or she is or was a director or officer may apply for indemnification or an advance for expenses, or both, to a court having jurisdiction over the corporation which is conducting the proceeding, or to a circuit court of competent jurisdiction. Our amended and restated articles of incorporation do not provide any such exclusion. After receipt of an application and after giving any notice it considers necessary, the court may order indemnification or advancement of expenses upon certain determinations of the court.

Section 607.0855 of the FBCA provides that, unless ordered by a court under Section 607.0854, a corporation may not indemnify a director or officer under Section 607.0851 unless authorized for a specific proceeding after a determination has been made that indemnification is permissible because the director or officer has met the relevant standard of conduct set forth in Section 607.0851.

------

##### [**Table of Contents**](#toc)
Section 607.0857 of the FBCA also provides that a corporation shall have the power to purchase and maintain insurance on behalf of and for the benefit of any person who is or was a director or officer of the corporation against any liability asserted against the person and incurred by him or her in any such capacity or arising out of his or her status as such, whether or not the corporation would have the power to indemnify or advance expenses to the individual against such liability under the provisions of Section 607.0857.

Section 607.0858 of the FBCA provides that the indemnification provided pursuant to Section 607.0851 and Section 607.0852, and the advancement of expenses provided pursuant to Section 607.0853, are not exclusive. A corporation may, by a provision in its articles of incorporation, bylaws or any agreement, or by vote of shareholders or disinterested directors, or otherwise, obligate itself in advance of the act or omission giving rise to a proceeding to provide any other or further indemnification or advancement of expenses to any of its directors or officers.

Section 607.0859 of the FBCA provides that, unless ordered by a court under the provisions of Section 607.0854 of the FBCA, a corporation may not indemnify a director or officer under Section 607.0851 or Section 607.0858, or advance expenses to a director or officer under Section 607.0853 or Section 607.0858, if a judgment or other final adjudication establishes that his or her actions, or omissions to act, were material to the cause of action so adjudicated and constitute: (a) willful or intentional misconduct or a conscious disregard for the best interests of the corporation in a proceeding by or in the right of the corporation to procure a judgment in its favor or in a proceeding by or in the right of a shareholder; (b) a transaction in which a director or officer derived an improper personal benefit; (c) a violation of the criminal law, unless the director or officer had reasonable cause to believe his or her conduct was lawful or had no reasonable cause to believe his or her conduct was unlawful; or (d) in the case of a director, a circumstance under which the liability provisions of Section 607.0834 are applicable (relating to unlawful distributions).

Our amended and restated articles of incorporation and bylaws provide that we shall indemnify, and advance any and all reasonable expenses incurred by, any director or former director to the fullest extent permitted by law.

The underwriting agreement for this offering will provide that the underwriters indemnify us against certain civil liabilities that may be incurred in connection with this offering, including certain liabilities under the Securities Act of 1933.

We also maintain director and officer liability insurance against certain claims and liabilities which may be made against our former, current or future directors and officers. In addition, we have individual indemnification agreements with our directors.

**Item 15. Recent Sales of Unregistered Securities** 

In the preceding three years, we have sold and issued the following securities that were not registered under the Securities Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From February 14, 2022 through September 26, 2022, we granted to our employees and directors an
aggregate of 87,500 shares of restricted common stock pursuant to our 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and
issuances did not involve a public offering or under Rule 701 promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as
provided by Rule 701.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• From December 18, 2024 through December 22, 2024, we granted to our employees and directors an
aggregate of 2,793,900 shares of restricted common stock pursuant to our 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and
issuances did not involve a public offering or under Rule 701

------

##### [**Table of Contents**](#toc)
promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as provided by Rule 701.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 22, 2025, we granted approximately 90,000 shares of service-condition restricted stock awards to certain
employees under the 2021 Omnibus Plan. We claimed exemption from registration under the Securities Act for such grants under Section 4(a)(2) of the Securities Act in that such sales and issuances did not involve a public offering or under Rule 701
promulgated under the Securities Act, in that they were offered and sold either pursuant to written compensatory plans or pursuant to a written contract relating to compensation, as provided by Rule 701.

**Item 16. Exhibits and Financial Statement Schedules** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) *Exhibits*. See the Exhibit Index immediately preceding the signature page hereto, which is incorporated by reference as if fully set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) *Financial Statement Schedules*.

All schedules are omitted because the required information is (i) not applicable, (ii) not present in amounts sufficient to require submission of the schedule and/or (iii) included in the financial statements and accompanying notes thereto included in the prospectus filed as part of this registration statement.

**Item 17. Undertakings** 

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions referenced in Item 14 of this registration statement, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

------

##### [**Table of Contents**](#toc)
**INDEX TO EXHIBITS** 

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;1.1\* | Form of Underwriting Agreement. |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Form of Amended and Restated Articles of Incorporation of Exzeo Group, Inc., to be in effect immediately prior to the completion of this offering.](d28749dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [Form of Amended and Restated Bylaws of Exzeo Group, Inc., to be in effect immediately prior to the completion of this offering.](d28749dex32.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1\* | Specimen stock certificate evidencing shares of common stock. |
| &nbsp;&nbsp;&nbsp;&nbsp;5.1 | [Form of Opinion of Foley & Lardner LLP.](d28749dex51.htm) |
| 10.1 | [Form of Indemnification Agreement by and among the registrant and its directors and officers.](d28749dex101.htm) |
| 10.2 | [Amended and Restated Managing General Agency Agreement, dated November 5, 2020, by and between Exzeo Insurance Services, Inc. and TypTap Insurance Company.](d28749dex102.htm) |
| 10.3 | [First Amendment to Amended and Restated Managing General Agency Agreement, effective as of March 1, 2021, by and between Exzeo Insurance Services, Inc. and TypTap Insurance Company.](d28749dex103.htm) |
| 10.4 | [Claims Services Agreement, effective as of March 1, 2021, by and between Griston Claim Management, Inc. and Exzeo Insurance Services, Inc.](d28749dex104.htm) |
| 10.5 | [Second Amendment to Amended and Restated Managing General Agency Agreement, effective as of September 1, 2022, by and between Exzeo Insurance Services, Inc. and TypTap Insurance Company.](d28749dex105.htm) |
| 10.6 | [Policy Administration Services Agreement, effective as of January 1, 2025, by and between Exzeo Insurance Services, Inc. and Homeowners Choice Managers, Inc.](d28749dex106.htm) |
| 10.7 | [Software License and Services Agreement, effective March 1, 2021, by and between Homeowners Choice Managers, Inc. and Exzeo USA, Inc.](d28749dex107.htm) |
| 10.8 | [Catastrophe Software License and Services Agreement, effective September 28, 2022, between Homeowners Choice Managers, Inc. and Exzeo USA, Inc.](d28749dex108.htm) |
| 10.9 | [Managing General Agency Agreement, dated November 21, 2023, by and between Exzeo Insurance Services, Inc. and Core Risk Managers, LLC, for itself and as attorney-in-fact for Condo Owners Reciprocal Exchange.](d28749dex109.htm) |
| 10.10 | [Claims Services Agreement, effective as of November 21, 2023, by and between Griston Claim Management, Inc. and Exzeo Insurance Services, Inc.](d28749dex1010.htm) |
| 10.11 | [Managing General Agency Agreement, dated November 5, 2024, by and between Exzeo Insurance Services, Inc. and Tailrow Risk Managers, LLC, for itself and as attorney-in-fact for Tailrow Insurance Exchange.](d28749dex1011.htm) |
| 10.12 | [Claims Services Agreement, effective as of November 5, 2024, between Griston Claim Management, Inc. and Exzeo Insurance Services, Inc.](d28749dex1012.htm) |
| 10.13 | [Tax Allocation Agreement, dated February 13, 2025, by and among HCI Group, Inc. and its subsidiaries party thereto.](d28749dex1013.htm) |
| 10.14+ | [Exzeo Group Inc. 2021 Equity Incentive Plan (the 2021 Equity Plan).](d28749dex1014.htm) |
| 10.15+ | [Form of Restricted Stock Award Agreement under the 2021 Equity Plan.](d28749dex1015.htm) |
| 10.16+ | [Exzeo Group Inc. 2021 Omnibus Incentive Plan (the 2021 Omnibus Plan).](d28749dex1016.htm) |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 10.17+ | [Form of Stock Option Award under the 2021 Omnibus Plan.](d28749dex1017.htm) |
| 10.18+ | [Form of Restricted Stock Award Agreement under the 2021 Omnibus Plan.](d28749dex1018.htm) |
| 10.19\*+ | Exzeo Group Inc. 2025 Omnibus Incentive Plan (the 2025 Omnibus Plan). |
| 10.20\*+ | Form of Stock Option Award under the 2025 Omnibus Plan. |
| 10.21\*+ | Form of Restricted Stock Award Agreement under the 2025 Omnibus Plan. |
| 21.1 | [Subsidiaries of the registrant.](d28749dex211.htm) |
| 23.1 | [Consent of Foley & Lardner LLP (included in Exhibit 5.1).](d28749dex51.htm) |
| 23.2 | [Consent of Forvis Mazars, LLP, independent registered public accounting firm.](d28749dex232.htm) |
| 24 | [Power of Attorney (included on signature page).](#sig) |
| 107 | [Filing Fees Exhibit.](d28749dexfilingfees.htm) |

---

\* To be filed by amendment.

+ Indicates management contract or compensatory plan.

------

##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Tampa, Florida, on this 25th day of September, 2025.

---

| | |
|:---|:---|
| **Exzeo Group, Inc.** | **Exzeo Group, Inc.** |
| By: | /s/ Paresh Patel |
|  | Name: Paresh Patel |
|  | Title: Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed below by the following persons in the capacities and on the dates indicated. Each person whose signature appears below constitutes and appoints each of Paresh Patel and Kevin Mitchell, and each of them individually, his or her true and lawful attorneys-in-fact and agents, with full powers of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any or all amendments (including post effective amendments) to this registration statement and any subsequent registration statement filed pursuant to Rule 462 under the Securities Act of 1933, as amended, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, and hereby ratifying and confirming all that either of the said attorneys-in-fact and agents, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Paresh Patel | Chief Executive Officer (Principal Executive Officer) and Chairman of the Board of Directors | September 25, 2025 |
| Paresh Patel | Chief Executive Officer (Principal Executive Officer) and Chairman of the Board of Directors | September 25, 2025 |
| /s/ Suela Bulku | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | September 25, 2025 |
| Suela Bulku | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | September 25, 2025 |
| /s/ Kevin Mitchell | President and Director | September 25, 2025 |
| Kevin Mitchell | President and Director | September 25, 2025 |
| /s/ Irene Hurst | Director | September 25, 2025 |
| Irene Hurst | Director | September 25, 2025 |
| /s/ Robert A. Lopes, Jr. | Director | September 25, 2025 |
| Robert A. Lopes, Jr. | Director | September 25, 2025 |
| /s/ James Macchiarola | Director | September 25, 2025 |
| James Macchiarola | Director | September 25, 2025 |
| /s/ Loreen Spencer | Director | September 25, 2025 |
| Loreen Spencer | Director | September 25, 2025 |

---

## Exhibit 3.1

**Exhibit 3.1** 

**FORM OF** 

**FOURTH AMENDED AND RESTATED** 

**ARTICLES OF INCORPORATION** 

**OF** 

**EXZEO GROUP, INC.** 

(Pursuant to Sections 607.1007 and 607.1003

of the Florida Business Corporation Act)

Exzeo Group, Inc., a corporation organized and existing under and by virtue of the provisions of the Florida Business Corporation Act (the "**FBCA**"),

**DOES HEREBY CERTIFY:** 

**1.** That this Corporation is named Exzeo Group, Inc. (the "**Corporation**") and was originally incorporated in the State of Florida on July 21, 2020, and that these Fourth Amended and Restated Articles of Incorporation shall amend, restate and supersede in their entirety any and all prior Amended and Restated Articles of Incorporation, Articles of Incorporation, and any Articles of Amendment or Certificates of Designation thereto, filed with the State of Florida from the date of the Corporation's original incorporation through the date hereof.

**2.** That these Fourth Amended and Restated Articles of Incorporation have been approved by the Board of Directors and shareholders of the Corporation in the manner and by the vote required by the FBCA. These Fourth Amended and Restated Articles of Incorporation contain amendments that require shareholder approval. These Fourth Amended and Restated Articles of Incorporation were approved by the shareholders pursuant to a written consent in lieu of a meeting dated [•], 2025, and the votes cast for the amendments by the shareholders were sufficient for approval.

That the existing Third Amended and Restated Articles of Incorporation of this Corporation have been further amended and restated in their entirety to read as follows:

**FIRST:** The name of this corporation is Exzeo Insurance Group, Inc. (the "**Corporation**").

**SECOND:** The address of the principal office of the Corporation is 3802 Coconut Palm Drive, Tampa, Florida 33619. The mailing address of the Corporation is 3802 Coconut Palm Drive, Tampa, Florida 33619. The address of the Corporation's registered office is One Independent Drive, Suite 1300, Jacksonville, Florida 32202. The name of the registered agent at such address is F&L Corp.

**THIRD:** The nature of the business or purposes to be conducted or promoted is to engage in any lawful act or activity for which corporations may be organized under the Florida Business Corporation Act (the "**FBCA**").

**FOURTH:** The total number of shares of all classes of stock which the Corporation shall have authority to issue is (i) [•] shares of Common Stock, par value $0.001 per share ("**Common Stock**"), and (ii) [•] shares of Preferred Stock, par value $0.001 per share ("**Preferred Stock**").

The following is a statement of the designations and the powers, privileges and rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation.

A. <u>COMMON STOCK</u> 

1. <u>Dividends and Distributions</u>. Subject to the rights, if any, of the holders of any outstanding shares of Preferred Stock, the Board of Directors of the Corporation may, in its sole discretion, out of funds legally available for the payment of dividends and at such times and in such manner as determined by the Board of Directors, declare and pay dividends or other distributions on the Common Stock.

2. <u>Liquidation Rights</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, after there shall have been paid to or set aside for the holders of Preferred Stock the full preferential amounts, if any, to which they are entitled, the holders of outstanding shares of Common Stock shall be entitled to receive pro rata, according to the number of shares held by each, the remaining net assets of the Corporation available for distribution.

------

3. <u>Voting Rights</u>. Except as otherwise provided by the FBCA, and except as may be determined by the Board of Directors with respect to Preferred Stock pursuant to Section B of this Article Fourth, only the holders of Common Stock shall be entitled to vote for the election of directors of the Corporation and for all other corporate purposes. Upon any such vote the holders of Common Stock shall, except as otherwise provided by law, be entitled to one vote for each share of Common Stock held by them respectively.

B. <u>PREFERRED STOCK</u> 

1. <u>Series and Variations Between Series</u>. Pursuant to Section 607.0602 of the FBCA, the Board of Directors of the Corporation is hereby expressly authorized, without the approval of the shareholders of the Corporation, to (a) provide for the classification and reclassification of any unissued shares of Preferred Stock and determine the preferences, limitations, and relative rights thereof and (b) issue Preferred Stock in one or more series, all within the limitations set forth in Section 607.0601 of the FBCA. The authority of the Board of Directors of the Corporation with respect to each series of Preferred Stock shall include, but not be limited to, determination of the following:

(1) the number of shares constituting such series and the distinctive designation of that series;

(2) the dividend rate, if any, on the shares of such series, whether dividends shall be cumulative, and, if so, from which date or dates, and the relative rights of priority, if any, of payment of dividends on shares of that series;

(3) whether such series shall have voting rights, in addition to the voting rights provided by law, and, if so, the terms of such voting rights;

(4) whether such series shall have conversion privileges and, if so, the terms and conditions of conversion, including provision for adjustment of the conversion rate upon such events as the Board of Directors shall determine;

(5) whether or not the shares of such series shall be redeemable, and, if so, the terms and conditions of such redemption, including the date or dates upon or after which they shall be redeemable and the amount per share payable in case of redemption, which amount may vary under different conditions and at different redemption dates;

(6) whether such series shall have a sinking fund for the redemption or purchase of shares of the series, and, if so, the terms and amount of such sinking fund;

(7) the rights of the shares of such series in the event of voluntary or involuntary dissolution or winding up of the Corporation, and the relative rights of priority, if any, of payment of shares of that series; and

(8) any other preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions of such series.

C. <u>NO PREEMPTIVE RIGHTS</u> 

No holder of shares of any class of capital stock of the Corporation shall have any preferential or preemptive right to subscribe to or acquire (1) unissued or treasury shares of the Corporation of any class, (2) securities of the Corporation convertible into or carrying a right to acquire or subscribe to shares of any class or (3) any other obligations, warrants, rights to subscribe to shares or other securities of the Corporation of any class, in each case whether now or hereafter authorized.

**FIFTH:** Subject to any additional vote required by these Amended and Restated Articles of Incorporation or the Bylaws of the Corporation, in furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, repeal, alter, amend and rescind any or all of the Bylaws of the Corporation.

**SIXTH:** The Board of Directors is classified as set forth in these Amended and Restated Articles of Incorporation. The directors are classified with respect to the time for which they severally hold office, into three classes, Class A, Class B and Class C, each of which shall be as nearly equal number as possible, and shall be adjusted from time to time in the manner specified in the Bylaws of the Corporation to maintain such proportionality. Each director in Class A was elected to hold office for a term expiring at the 2026 annual meeting of the shareholders; each director in Class B was elected to hold office for a term expiring at the 2027 annual meeting of the shareholders; and each director in Class C was elected to hold office for a term expiring at the 2028 annual meeting of the shareholders. At

------

each annual meeting of the shareholders beginning in 2026, successors to the class of directors whose term expires at that meeting will be elected to hold office for a term expiring at the annual meeting of the shareholders held in the third year following the year of election and until their successors have been duly elected and qualified or until such director's earlier death, resignation or removal. Notwithstanding the foregoing provisions of this Article Sixth, each director will serve until such director's successor is duly elected and qualified or until such director's earlier death, resignation or removal.

Subject to any additional vote required by these Amended and Restated Articles of Incorporation, the number of directors of the Corporation shall be determined in the manner set forth in the Bylaws of the Corporation. Each director shall be entitled to one vote on each matter presented to the Board of Directors.

**SEVENTH:** Any director may be removed from office, but only for Cause (as defined below) by the affirmative vote of holders of at least a majority of the voting power of the then outstanding shares of stock entitled to vote for the election of directors (or, if a director is elected by a voting group of shareholders, at least a majority of the voting power of the then outstanding shares of stock of the voting group of shareholders that elected the director to be removed). As used herein, "**Cause**" shall exist only if the director whose removal is proposed (1) has been convicted of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal or (2) has been adjudged by a court of competent jurisdiction to be liable for willful misconduct in the performance of his or her duties to the Corporation in a matter which has a material adverse effect on the business of the Corporation and such adjudication is no longer subject to direct appeal.

**NINTH:** Elections of directors need not be by written ballot unless the Bylaws of the Corporation shall so provide.

**TENTH:** Meetings of shareholders may be held within or without the State of Florida, as the Bylaws of the Corporation may provide. The books of the Corporation may be kept outside the State of Florida at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

**ELEVENTH:** Any action required or permitted to be taken by shareholders of the Corporation may be taken only upon the vote of shareholders at an annual or special meeting of shareholders duly noticed and called in accordance with the FBCA and the Bylaws of the Corporation, and no such action may be taken without a meeting by written consent of shareholders.

**TWELFTH:** To the fullest extent permitted by law, a director of the Corporation shall not be personally liable to the Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director. If the FBCA or any other law of the State of Florida is amended after approval by the shareholders of this Article Twelfth to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the FBCA as so amended.

Any repeal or modification of the foregoing provisions of this Article Twelfth by the shareholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any director of the Corporation with respect to any acts or omissions of such director occurring prior to, such repeal or modification.

------

**THIRTEENTH:** To the fullest extent permitted by applicable law, the Corporation is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Corporation (and any other persons to which FBCA permits the Corporation to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of shareholders or disinterested directors or otherwise, in excess of the indemnification and advancement otherwise provided by the FBCA.

Any amendment, repeal or modification of the foregoing provisions of this Article Thirteenth shall not (a) adversely affect any right or protection of any director, officer or other agent of the Corporation existing at the time of such amendment, repeal or modification or (b) increase the liability of any director of the Corporation with respect to any acts or omissions of such director, officer or agent occurring prior to, such amendment, repeal or modification.

**FOURTEENTH:** Notwithstanding any other provision of these Amended and Restated Articles of Incorporation or any provision in the Bylaws of the Corporation: (1) any provisions in these Amended and Restated Articles of Incorporation that require a greater voting requirement than provided in the FBCA may only be amended by the same vote required to take action under the voting requirement then in effect; and (2) any provisions in the Bylaws of the Corporation that require a greater voting requirement than provided in the FBCA may only be amended by the same vote required to take action under the voting requirement then in effect.

**FIFTEENTH:** 

A. <u>COMPETITION AND CORPORATE OPPORTUNITIES</u>

1. Subject to any express agreement that may from time to time be in effect, a Dual Role Person (as defined below) may, and shall have no duty not to, on behalf of HCI (as defined below), in each case (a) carry on and conduct, whether directly, or as a partner in any partnership, or as a joint venturer in any joint venture, or as a director, officer or shareholder of any corporation, or as a participant in any syndicate, pool, trust or association, any business of any kind, nature or description, whether or not such business is competitive with or in the same or similar lines of business as the Corporation or its Controlled Affiliates (as defined below), (b) do business with any customer or vendor of any of the Corporation or its Controlled Affiliates, and (c) employ or otherwise engage any officer or employee of the Corporation or its Controlled Affiliates. To the fullest extent permitted by Florida law, the Corporation hereby renounces any interest or expectancy of the Corporation or its Controlled Affiliates to participate in any business of HCI, and waives any claim against a Dual Role Person and shall indemnify a Dual Role Person against any claim that such Dual Role Person is liable to the Corporation or its shareholders or its Controlled Affiliates for breach of any fiduciary duty solely by reason of such Dual Role Person's participation in any such business. To the fullest extent permitted by Florida law, the Corporation shall pay in advance any expenses incurred in defense of such claim as provided in the Bylaws of the Corporation.

2. In the event that a Dual Role Person acquires knowledge of a potential transaction or matter which may constitute a corporate opportunity for both (x) HCI and (y) the Corporation or its Controlled Affiliates, the Dual Role Person shall not have any duty to offer or communicate information regarding such corporate opportunity to the Corporation or its Controlled Affiliates. To the fullest extent permitted by Florida law, the Corporation hereby renounces any interest or expectancy of the Corporation or its Controlled Affiliates in such corporate opportunity, and waives any claim against each Dual Role Person and shall indemnify a Dual Role Person against any claim that such Dual Role Person is liable to the Corporation or its shareholders or its Controlled Affiliates for breach of any fiduciary duty solely by reason of the fact that such Dual Role Person (a) pursues or acquires any corporate opportunity for the account of HCI, (b) directs, recommends, sells, assigns, or otherwise transfers such corporate opportunity to HCI or (c) does not communicate information regarding such corporate opportunity to the Corporation or its Controlled Affiliates; <u>provided</u>, <u>however</u>, in each case, that any corporate opportunity which is expressly offered to a Dual Role Person in writing solely in his or her capacity as a director or officer of the Corporation or its Controlled Affiliates shall belong to the Corporation or its Controlled Affiliates. To the fullest extent permitted by Florida law, the Corporation shall pay in advance any expenses incurred in defense of such claim as provided in the Bylaws of the Corporation.

3. To the fullest extent permitted by the laws of the State of Florida, no potential transaction or matter may be deemed to be a corporate opportunity of the Corporation or Controlled Affiliates unless (a) the Corporation and its Controlled Affiliates would be permitted to undertake such transaction or matter in accordance with these Amended and Restated Articles of Incorporation and applicable law, (b) the Corporation and its Controlled Affiliates at such time have sufficient financial resources to undertake such transaction or matter, (c) such transaction or matter would be in the same or similar line of business in which the Corporation and its Controlled Affiliates are then engaged or a line of business that is reasonably related to, or a reasonable extension of, such line of business and (d) the Corporation and its Controlled Affiliates at such time have an interest or reasonable expectancy therein.

------

B. <u>CONFLICT</u>

In the event of a conflict between this Article Fifteenth and any other provision of these Amended and Restated Articles of Incorporation, this Article Fifteenth shall prevail in all circumstances.

C. <u>AMENDMENTS</u>

Neither the alteration, amendment or repeal of this Article Fifteenth, nor the adoption of any provision of these Amended and Restated Articles of Incorporation inconsistent with this Article Fifteenth, nor, to the fullest extent permitted by Florida law, any modification of law, shall eliminate or reduce the effect of this Article Fifteenth in respect of any business opportunity first identified or any other matter occurring, or any cause of action, suit or claim that, but for this Article Fifteenth, would accrue or arise, prior to the effective date of such alteration, amendment, repeal, adoption or modification.

D. <u>DEFINED TERMS</u>

For purposes of this Article Fifteenth:

1. "**Affiliate**" means with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with such Person. For purposes of the foregoing definition, the term "controlling," "controlled by," or "under common control with" means the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

2. "**Controlled Affiliate**" means, with respect to the Corporation, any Person controlled by the Corporation. For purposes of the foregoing definition, "controlled" means the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

3. "**Dual Role Person**" means (i) any director or officer of the Corporation who is also a director, officer, employee or Affiliate of HCI and (ii) HCI.

4. "**HCI**" means HCI Group, Inc. and its Affiliates (other than the Corporation and its Controlled Affiliates), together with their respective successors and assigns.

5. "**Person**" means an individual or any corporation, partnership, limited liability company, estate, trust, association, private foundation joint stock company or any other entity.

\* \* \*

**3.** That the foregoing amendment and restatement was approved by the holders of the requisite number of shares of this Corporation in accordance with the FBCA.

**4.** That these Amended and Restated Articles of Incorporation, which restate and integrate and further amend the provisions of this Corporation's prior Amended and Restated Articles of Incorporation, has been duly adopted in accordance with the FBCA.

**5.** That these Amended and Restated Articles of Incorporation shall be effective as of , Eastern Time, on , 2025.

[Signature Page Follows]

------

**IN WITNESS WHEREOF**, these Amended and Restated Articles of Incorporation have been executed by a duly authorized officer of this Corporation on this day of [•], 2025.

---

| |
|:---|
| By: |
| Name: Paresh Patel |
| Its: Chief Executive Officer |

---

## Exhibit 3.2

**Exhibit 3.2** 

**FORM OF** 

**AMENDED AND RESTATED** 

**BYLAWS** 

**OF** 

**EXZEO GROUP, INC.** 

**(a Florida corporation)** 

**Adopted: [•], 2025** 

**ARTICLE 1** 

**OFFICES** 

Exzeo Group, Inc. (the "<u>Corporation</u>") may have such principal and other business offices, either within or without the State of Florida, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

**ARTICLE 2** 

**SHAREHOLDERS** 

Section 2.1 <u>Annual Meeting</u>. The annual meeting of the shareholders shall be held at such time and on such date as may be fixed by or under the authority of the Board of Directors. In fixing a meeting date for any annual meeting of shareholders, the Board of Directors may consider such factors as it deems relevant within the good faith exercise of its business judgment. At each annual meeting of shareholders, the shareholders shall elect directors and transact only such other business that is properly brought before the meeting in accordance with Section 2.14 of these Bylaws. If the election of directors shall not be held on the date fixed as herein provided for any annual meeting of shareholders, or any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of shareholders as soon thereafter as is practicable.

Section 2.2 <u>Special Meetings</u>. Special meetings of the shareholders may be called only by the Chairman of the Board, the Chief Executive Officer, the President (in the absence of the Chief Executive Officer) or a majority of the Board of Directors, and shall be called by the Corporation in the event that the holders of not less than ten percent (10%) of all of the votes entitled to be cast on any issue proposed to be considered at the proposed special meeting sign, date, and deliver to the Secretary one or more written demands for the meeting describing one or more purposes for which it is to be held. The Corporation shall give notice of such a special meeting within sixty (60) days after the date that the demands are delivered to the Corporation.

Section 2.3 <u>Place of Meeting</u>. The Board of Directors may designate any place, either within or without the State of Florida, as the place of meeting for any annual meeting of shareholders or for any special meeting of shareholders. The Board of Directors, in its sole discretion, may determine that the annual meeting of shareholders or a special meeting of shareholders shall not be held at any place, but shall instead be held solely by means of remote communication as provided under Sections 607.0701, 607.0702 and 607.0709 of the Florida Business Corporation Act, as it may be amended from time to time, or any successor legislation thereto (the "<u>Act</u>"). If no designation is made, the place of meeting shall be the Corporation's principal office.

------

Section 2.4 <u>Notice of Meeting</u>.

(a) <u>Content and Delivery</u>.

(i) Notice of the place, if any, date, time, and means of remote communication, if any, of each annual and special meeting of shareholders shall be given by the Corporation not less than ten (10) nor more than sixty (60) days before the date of the meeting. Notices of special meetings shall also specify the purpose or purposes for which the meeting has been called. Unless otherwise required by the Act or the Corporation's Articles of Incorporation:

(A) Notice of a shareholders' meeting need be given only to shareholders entitled to vote at the meeting; and

(B) Notices of annual meetings need not specify the purpose or purposes for which the meeting has been called.

(ii) Notices to shareholders must be in writing and may be communicated in person, by electronic means (in a manner authorized by the shareholder), or by mail or other method of delivery, in each case, by or at the direction of the Board of Directors, the Chairman of the Board, the Chief Executive Officer, the President, the Secretary, or the officer or persons calling the meeting. If mailed, the notice shall be effective when deposited in the United States mail addressed to the shareholder at the shareholder's address as it appears in the Corporation's shareholder records, with postage thereon prepaid.

(b) <u>Notice of Adjourned Meetings</u>. If an annual or special meeting of shareholders is adjourned to a different date, time or place, or to add or modify the terms of participation by remote communication, the Corporation shall not be required to give notice of the new date, time, place or terms of participation by remote communications if the new date, time, place or terms of participation by remote communications is announced at the meeting before adjournment; <u>provided</u>, <u>however</u>, that if a new record date for an adjourned meeting is or must be fixed, the Corporation shall give notice of the adjourned meeting to persons who are shareholders as of the new record date who are entitled to notice of the meeting.

(c) <u>No Notice Under Certain Circumstances</u>. Notwithstanding the other provisions of this Section 2.4, no notice of a meeting of shareholders need be given to a shareholder if: (i) an annual report and proxy statement for two consecutive annual meetings of shareholders, or (ii) all, and at least two, checks in payment of dividends or interest on securities during a twelve-month period have been sent by first-class, United States mail, addressed to the shareholder at his or her address as it appears on the share transfer books of the Corporation, and returned undeliverable. The obligation of the Corporation to give notice of a shareholders' meeting to any such shareholder shall be reinstated once the Corporation has received a new address for such shareholder for entry on its share transfer books.

Section 2.5 <u>Waiver of Notice</u>.

(a) <u>Written Waiver</u>. A shareholder may waive any notice required by the Act or these Bylaws before or after the date and time stated for the meeting in the notice. The waiver shall be in writing and signed by the shareholder entitled to the notice, and be delivered to the Corporation for inclusion in the minutes or filing with the corporate records. Neither the business to be transacted at nor the purpose of any regular or special meeting of shareholders need be specified in any written waiver of notice.

(b) <u>Waiver by Attendance</u>. A shareholder's attendance at a meeting, whether physical or remote, in person or by proxy, waives objection to all of the following: (i) lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting objects to holding the meeting or transacting business at the meeting; and (ii) consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

Section 2.6 <u>Fixing of Record Date</u>.

(a) <u>General</u>. The Board of Directors may fix in advance a date as the record date for the purpose of determining shareholders entitled to notice of a shareholders' meeting, entitled to vote, or take any other action. In no event may a record date fixed by the Board of Directors be (i) a date preceding the date upon which the resolution fixing the record date is adopted or (ii) a date more than seventy (70) days before the date of meeting or action requiring a determination of shareholders.

------

(b) <u>Special Meeting</u>. The record date for determining shareholders entitled to demand a special meeting shall be the close of business on the date the first shareholder delivers his or her demand to the Corporation.

(c) <u>Absence of Board Determination for Shareholders' Meeting</u>. If the Board of Directors does not determine the record date for determining shareholders entitled to notice of and to vote at an annual or special meeting of shareholders, such record date shall be the close of business on the day before the first notice with respect thereto is delivered to shareholders.

(d) <u>Adjourned Meeting</u>. A record date for determining shareholders entitled to notice of or to vote at a shareholders' meeting is effective for any adjournment of the meeting unless the Board of Directors fixes a new record date, which it must do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.

Section 2.7 <u>Shareholders' List for Meetings</u>.

(a) <u>Preparation and Availability</u>. After a record date for a meeting of shareholders has been fixed, the Corporation shall prepare an alphabetical list of the names of all of the shareholders entitled to notice of the meeting (and, if the Board of Directors fixes a different record date to determine the shareholders entitled to vote at the meeting, an alphabetical list of the names of all shareholders entitled to vote at the meeting). The list shall be arranged by class or series of shares, if any, and show the address of and number of shares held by each shareholder. Such list shall be available for inspection by any shareholder for a period of ten days prior to the meeting or such shorter time as exists between the record date and the meeting date, and continuing through the meeting, at the Corporation's principal office, at a place identified in the meeting notice in the city where the meeting will be held, or at the office of the Corporation's transfer agent or registrar, if any. A shareholder or his or her agent or attorney may, on written demand, inspect the list, subject to the requirements of the Act, during regular business hours and at his or her expense, during the period that it is available for inspection pursuant to this Section 2.7. The Corporation shall make the shareholders' list available at the meeting and any shareholder or his or her agent or attorney may inspect the list at any time during the meeting or any adjournment thereof.

(b) <u>Prima Facie Evidence</u>. The shareholders' list is prima facie evidence of the identity of shareholders entitled to examine the shareholders' list or to vote at a meeting of shareholders.

(c) <u>Failure to Comply</u>. If the requirements of this Section 2.7 have not been substantially complied with, or if the Corporation refuses to allow a shareholder or his or her agent or attorney to inspect the shareholders' list before or at the meeting, on the demand of any shareholder, in person or by proxy, who failed to get such access, the meeting shall be adjourned until such requirements are complied with.

(d) <u>Validity of Action Not Affected</u>. Refusal or failure to prepare or make available the shareholders' list shall not affect the validity of any action taken at a meeting of shareholders.

Section 2.8 <u>Conduct of Meetings by Remote Communication</u>. The Board of Directors may adopt guidelines and procedures for shareholders and proxy holders not physically present at an annual or special meeting of shareholders to participate in the meeting, be deemed present in person, vote, communicate and read or hear the proceedings of the meeting substantially concurrently with such proceedings, all by means of remote communication. The Board of Directors may adopt procedures and guidelines for the conduct of an annual or special meeting solely by means of remote communication rather than holding the meeting at a designated place.

Section 2.9 <u>Quorum</u>.

(a) <u>What Constitutes a Quorum</u>. Shares entitled to vote as a separate voting group may take action on a matter at a meeting only if a quorum of those shares exists with respect to that matter. If the Corporation has only one class of stock outstanding, such class shall constitute a separate voting group for purposes of this Section 2.9. Except as otherwise provided in the Act, a majority of the votes entitled to be cast on the matter shall constitute a quorum of the voting group for action on that matter. After a quorum has been established at a shareholders' meeting, the subsequent withdrawal of shareholders, so as to reduce the number of shares entitled to vote at the meeting below the number required for a quorum, shall not affect the validity of any action taken at the meeting or any adjournment thereof.

(b) <u>Presence of Shares</u>. Once a share is represented for any purpose at a meeting, other than for the purpose of objecting to holding the meeting or transacting business at the meeting, it is considered present for purposes of determining whether a quorum exists for the remainder of the meeting and for any adjournment of that meeting unless a new record date is or must be set for the adjourned meeting.

------

(c) <u>Adjournment in Absence of Quorum</u>. Where a quorum is not present, the holders of a majority of the shares represented and who would be entitled to vote at the meeting if a quorum were present may adjourn such meeting from time to time.

Section 2.10 <u>Voting Entitlement of Shares</u>.

(a) Unless the Corporation's Articles of Incorporation or the Act provide otherwise, each outstanding share, regardless of class, is entitled to one vote on each matter submitted to a vote at a meeting of shareholders. Only shares are entitled to vote.

(b) The shares of the Corporation are not entitled to vote if they are owned, directly or indirectly, by a second corporation, domestic or foreign, and the first corporation owns, directly or indirectly, a majority of shares entitled to vote for directors of the second corporation.

(c) This Section 2.10 does not limit the power of the Corporation to vote any shares, including its own shares, held by it in a fiduciary capacity.

(d) Redeemable shares are not entitled to vote on any matter, and shall not be deemed to be outstanding, after notice of redemption is mailed to the holders thereof and a sum sufficient to redeem such shares has been deposited with a bank, trust company, or other financial institution upon an irrevocable obligation to pay the holders the redemption price upon surrender of the shares.

(e) Shares standing in the name of another corporation, domestic or foreign, may be voted by such officer, agent, or proxy as the bylaws of the corporate shareholder may prescribe or, in the absence of any applicable provision, by such person as the Board of Directors of the corporate shareholder may designate. In the absence of any such designation or in case of conflicting designation by the corporate shareholder, the chairman of the board, the president, any vice president, the secretary, and the treasurer of the corporate shareholder, in that order, shall be presumed to be fully authorized to vote such shares.

(f) Shares held by an administrator, executor, guardian, personal representative, or conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares standing in the name of a trustee may be voted by him or her, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his name or the name of his or her nominee.

(g) Shares held by or under the control of a receiver, a trustee in bankruptcy proceedings, or an assignee for the benefit of creditors may be voted by him or her without the transfer thereof into his or her name.

(h) If a share or shares stand of record in the names of two or more persons, whether fiduciaries, members of a partnership, joint tenants, tenants in common, tenants by the entirety, or otherwise, or if two or more persons have the same fiduciary relationship respecting the same shares, unless the Secretary of the Corporation is given notice to the contrary and is furnished with a copy of the instrument or order appointing them or creating the relationship wherein it is so provided, then acts with respect to voting have the following effect:

(i) If only one votes, in person or in proxy, his or her act binds all;

(ii) If more than one vote, in person or by proxy, the act of the majority so voting binds all;

(iii) If more than one vote, in person or by proxy, but the vote is evenly split on any particular matter, each faction is entitled to vote the share or shares in question proportionally;

(iv) If the instrument or order so filed shows that any such tenancy is held in unequal interest, a majority or a vote evenly split for purposes of this subsection shall be a majority or a vote evenly split in interest;

(v) The principles of this subsection shall apply, insofar as possible, to execution of proxies, waivers, consents, or objections and for the purpose of ascertaining the presence of a quorum;

(vi) Subject to Section 2.10(i), nothing herein contained shall prevent trustees or other fiduciaries holding shares registered in the name of a nominee from causing such shares to be voted by such nominee as the trustee or other fiduciary may direct. Such nominee may vote shares as directed by a trustee or their fiduciary without the necessity of transferring the shares to the name of the trustee or other fiduciary.

------

(i) The Corporation may establish a procedure by which the beneficial owner of shares that are registered in the name of a nominee is recognized by the Corporation as the shareholder. The extent of this recognition may be determined in the procedure. The procedure may set forth (a) the types of nominees to which it applies; (b) the rights or privileges that the Corporation recognizes in a beneficial owner; (c) the manner in which the procedure is selected by the nominee; (d) the information that must be provided when the procedure is selected; (e) the period for which selection of the procedure is effective; and (f) other aspects of the rights and duties created.

Section 2.11 <u>Vote Required</u>.

(a) <u>Matters Other Than Election of Directors</u>. If a quorum exists, except in the case of the election of directors, action on a matter shall be approved if the votes cast favoring the action exceed the votes cast opposing the action, unless the Act or the Corporation's Articles of Incorporation require a greater number of affirmative votes.

(b) <u>Election of Directors</u>.

(i) Each shareholder who is entitled to vote at an election of directors has the right to vote the number of shares owned by him or her for as many persons as there are directors to be elected. Shareholders do not have a right to cumulate their votes for directors.

(ii) Unless otherwise provided in the Corporation's Articles of Incorporation, each director to be elected shall be elected by a plurality of the votes cast by the shares entitled to vote in the election of directors at an annual meeting or special meeting of shareholders at which a quorum is present.

Section 2.12 <u>Conduct of Meeting</u>. The Chairman of the Board, and in his or her absence, the Vice Chairman (if any), and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, a Vice President, and in his or her absence, any person chosen by the shareholders present shall call a shareholders' meeting to order and shall act as presiding officer of the meeting, and the Secretary of the Corporation shall act as secretary of all meetings of the shareholders, but, in the absence of the Secretary, the presiding officer may appoint any other person to act as secretary of the meeting. The presiding officer of the meeting shall have broad discretion in determining the order of business at a shareholders' meeting. The presiding officer's authority to conduct the meeting shall include, but in no way be limited to, recognizing shareholders entitled to speak, calling for the necessary reports, stating questions and putting them to a vote, calling for nominations, and announcing the results of voting. The presiding officer also shall take such actions as are necessary and appropriate to preserve order at the meeting. The rules of parliamentary procedure need not be observed in the conduct of shareholders' meetings; however, meetings shall be conducted in accordance with accepted usage and common practice with fair treatment to all who are entitled to take part.

Section 2.13 <u>Proxies</u>.

(a) <u>Appointment</u>. At all meetings of shareholders, a shareholder or attorney- in-fact for a shareholder may vote the shareholder's shares in person or by proxy. If an appointment form expressly provides, any proxy holder may appoint, in writing, a substitute to act in his or her place. A shareholder or attorney-in-fact for a shareholder may appoint a proxy to vote or otherwise act for the shareholder by signing an appointment form or by electronic transmission. As provided by Section 607.0722 of the Act, any type of electronic transmission appearing to have been, or containing or accompanied by such information or obtained under such procedures to reasonably ensure that the electronic transmission was, transmitted or authorized by such person is a sufficient appointment, subject to the verification requested by the Corporation under Section 2.15 of these Bylaws and Section 607.0724 of the Act. The appointment may be signed by any reasonable means, including, but not limited to, facsimile or electronic signature. Any copy, facsimile transmission or other reliable reproduction of the writing or electronic transmission of the appointment may be substituted or used in lieu of the original writing or electronic transmission for any purpose for which the original writing or electronic transmission could be used if the copy, facsimile transmission or other reproduction is a complete reproduction of the entire original writing or electronic transmission.

(b) <u>When Effective</u>. An appointment of a proxy is effective when received by the Secretary or other officer or agent of the Corporation authorized to tabulate votes. An appointment is valid for up to eleven (11) months unless a longer or shorter period is expressly provided in the appointment form. An appointment of a proxy is revocable by the shareholder unless the appointment form conspicuously states that it is irrevocable and the appointment is coupled with an interest.

------

Section 2.14 <u>Advance Notice of Shareholder Nominations and Proposals</u>.

(a) <u>Annual Meetings</u>. At a meeting of the shareholders, only such nominations of persons for the election of directors and such other business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, nominations or such other business must be:

(i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors;

(ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors; or

(iii) otherwise properly brought before an annual meeting by a shareholder who is a shareholder of record of the Corporation at the time such notice of meeting is delivered, who is entitled to vote at the meeting, and who complies with the procedures set forth in this Section 2.14.

In addition, any proposal of business (other than the nomination of persons for election to the Board of Directors) must be a proper matter for shareholder action.

For business (including, but not limited to, director nominations) to be properly brought before an annual meeting by a shareholder pursuant to Section 2.14(a)(iii), the shareholder or shareholders of record intending to propose the business (the "<u>Proposing Shareholder</u>") must have given timely notice thereof pursuant to this Section 2.14(a), in writing to the Secretary of the Corporation even if such matter is already the subject of any notice to the shareholders or Public Disclosure from the Board of Directors. To be timely, a Proposing Shareholder's notice for an annual meeting must be delivered to or mailed and received at the Corporation's principal office on or before December 31 of the year immediately preceding the annual meeting; <u>provided</u>, <u>however</u>, that in the event that the date of the annual meeting is on or after May 1 in any year, notice by the shareholder to be timely must be so received not later than the close of business on the day which is determined by adding to December 31 of the year immediately preceding such annual meeting the number of days starting with May 1 and ending on the date of the annual meeting in such year. In no event shall the Public Disclosure of an adjournment or postponement of an annual meeting commence a new notice time period (or extend any notice time period). For the purposes of this Section 2.14, "<u>Public Disclosure</u>" shall mean a disclosure made in a press release reported by the Dow Jones News Services, The Associated Press, or a comparable national news service or in a document filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14, or 15(d) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>").

(b) <u>Shareholder Nominations</u>. For the nomination of any person or persons for election to the Board of Directors pursuant to Section 2.14(a)(iii) or Section 2.14(d), a Proposing Shareholder's notice to the Secretary shall set forth or include:

(i) the name, age, business address, and residence address of each nominee proposed in such notice;

(ii) the principal occupation or employment of each such nominee;

(iii) the class and number of shares of capital stock of the Corporation which are owned of record and beneficially by each such nominee (if any);

(iv) such other information concerning each such nominee as would be required to be disclosed in a proxy statement soliciting proxies for the election of such nominee as a director in an election contest (even if an election contest is not involved) or that is otherwise required to be disclosed, under Section 14(a) of the Exchange Act;

(v) a written questionnaire with respect to the background and qualification of such proposed nominee (which questionnaire shall be provided by the Secretary upon written request) and a written statement and agreement executed by each such nominee acknowledging that such person:

(A) consents to being named in the Corporation's proxy statement as a nominee and to serving as a director if elected; and

(B) makes the following representations: (1) that the director nominee has read and agrees to adhere to the Corporation's corporate governance guidelines, code of conduct and ethics, and any other of the Corporation's policies or guidelines applicable to directors, including with regard to securities trading; (2) that the director

------

nominee is not and will not become a party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>Voting Commitment</u>") that has not been disclosed to the Corporation or any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law; and (3) that the director nominee is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement, or indemnification that has not been disclosed to the Corporation in connection with such person's nomination for director or service as a director; and

(vi) as to the Proposing Shareholder:

(A) the name and address of the Proposing Shareholder as they appear on the Corporation's books and of the beneficial owner, if any, on whose behalf the nomination is being made;

(B) the class and number of shares of the Corporation which are owned by the Proposing Shareholder (beneficially and of record) and owned by the beneficial owner, if any, on whose behalf the nomination is being made, as of the date of the Proposing Shareholder's notice, and a representation that the Proposing Shareholder will notify the Corporation in writing of the class and number of such shares owned of record and beneficially as of the record date for the meeting within five business days after the record date for such meeting;

(C) a description of any agreement, arrangement or understanding with respect to such nomination between or among the Proposing Shareholder or the beneficial owner, if any, on whose behalf the nomination is being made and any of their affiliates or associates, and any others (including their names) acting in concert with any of the foregoing, and a representation that the Proposing Shareholder will notify the Corporation in writing of any such agreement, arrangement, or understanding in effect as of the record date for the meeting within five business days after the record date for such meeting;

(D) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares) that has been entered into as of the date of the Proposing Shareholder's notice by, or on behalf of, the Proposing Shareholder or the beneficial owner, if any, on whose behalf the nomination is being made and any of their affiliates or associates, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of such person or any of their affiliates or associates with respect to shares of stock of the Corporation, and a representation that the Proposing Shareholder will notify the Corporation in writing of any such agreement, arrangement, or understanding in effect as of the record date for the meeting within five business days after the record date for such meeting;

(E) a representation that the Proposing Shareholder is a holder of record of shares of the Corporation entitled to vote at the meeting and intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice; and

(F) a representation whether the Proposing Shareholder intends to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve the nomination and/or otherwise to solicit proxies from shareholders in support of the nomination.

The Corporation may require any proposed nominee to furnish such other information as it may reasonably require to determine the eligibility of such proposed nominee to serve as an independent director of the Corporation or that could be material to a reasonable shareholder's understanding of the independence, or lack thereof, of such nominee.

(c) <u>Other Shareholder Proposals</u>. For all business other than director nominations, a Proposing Shareholder's notice to the Secretary shall set forth as to each matter the Proposing Shareholder proposes to bring before the annual meeting:

(i) a brief description of the business desired to be brought before the annual meeting;

(ii) the reasons for conducting such business at the annual meeting;

(iii) the text of any proposal or business (including the text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these Bylaws, the language of the proposed amendment);

------

(iv) any substantial interest (within the meaning of Item 5 of Schedule 14A under the Exchange Act) in such business of such shareholder and the beneficial owner (within the meaning of Section 13(d) of the Exchange Act), if any, on whose behalf the business is being proposed;

(v) any other information relating to such shareholder and beneficial owner, if any, on whose behalf the proposal is being made, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the proposal and pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder;

(vi) a description of all agreements, arrangements or understandings between or among such shareholder, the beneficial owner, if any, on whose behalf the proposal is being made, any of their affiliates or associates, and any other person or persons (including their names) in connection with the proposal of such business and any material interest of such shareholder, beneficial owner, or any of their affiliates or associates, in such business, including any anticipated benefit therefrom to such shareholder, beneficial owner, or their affiliates or associates; and

(vii) the information required by Section 2.14(b)(vi) above.

(d) <u>Special Meetings of Shareholders</u>. Only such business shall be conducted at a special meeting of shareholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting. Nominations of persons for election to the Board of Directors may be made at a special meeting of shareholders called by the Board of Directors at which directors are to be elected pursuant to the Corporation's notice of meeting:

(i) by or at the direction of the Board of Directors; or

(ii) provided that the Board of Directors has determined that directors shall be elected at such meeting, by any shareholder of the Corporation who is a shareholder of record at the time the notice provided for in this Section 2.14(d) is delivered to the Secretary of the Corporation, who is entitled to vote at the meeting, and upon such election and who complies with the notice procedures set forth in this Section 2.14.

In the event the Corporation calls a special meeting of shareholders for the purpose of electing one or more directors to the Board of Directors, any such shareholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation's notice of meeting, if such shareholder delivers a shareholder's notice that complies with the requirements of Section 2.14(b) to the Secretary at the Corporation's principal office not earlier than the close of business on the 120th day prior to such special meeting and not later than the close of business on the later of: (x) the 90th day prior to such special meeting; or (y) the tenth (10th) day following the date of the first Public Disclosure of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. In no event shall the Public Disclosure of an adjournment or postponement of a special meeting commence a new time period (or extend any notice time period).

(e) <u>Effect of Noncompliance</u>. Only such persons who are nominated in accordance with the procedures set forth in this Section 2.14 shall be eligible to be elected at any meeting of shareholders of the Corporation to serve as directors, and only such other business shall be conducted at a meeting as shall be brought before the meeting in accordance with the procedures set forth in this Section 2.14. If any proposed nomination or other business was not made or proposed in compliance with this Section 2.14, then, except as otherwise required by law, the chair of the meeting shall have the power and duty to declare that such nomination shall be disregarded or that such proposed other business shall not be transacted. Notwithstanding anything in these Bylaws to the contrary, unless otherwise required by law, if a Proposing Shareholder intending to propose business or make nominations at an annual meeting or propose a nomination at a special meeting pursuant to this Section 2.14 does not provide the information required under this Section 2.14 to the Corporation, including the updated information required by Section 2.14(b)(vi)(B), Section 2.14(b)(vi)(C) and Section 2.14(b)(vi)(D) within five (5) business days after the record date for such meeting or the Proposing Shareholder (or a qualified representative of the Proposing Shareholder) does not appear at the meeting to present the proposed business or nominations, such business or nominations shall not be considered, notwithstanding that proxies in respect of such business or nominations may have been received by the Corporation.

(f) <u>Rule 14a-8</u>. This Section 2.14 shall not apply to a proposal proposed to be made by a shareholder if the shareholder has notified the Corporation of the shareholder's intention to present the proposal at an annual or special meeting only pursuant to and in compliance with Rule 14a-8 under the Exchange Act and such proposal has been included in a proxy statement that has been prepared by the Corporation to solicit proxies for such meeting.

------

Section 2.15 <u>Acceptance of Instruments Showing Shareholder Action</u>. If the name signed on a vote, consent, waiver, or proxy appointment corresponds to the name of a shareholder, the Corporation, if acting in good faith, may accept the vote, consent, waiver, or proxy appointment and give it effect as the act of a shareholder. If the name signed on a vote, consent, waiver, or proxy appointment does not correspond to the name of a shareholder, the Corporation, if acting in good faith, may accept the vote, consent, waiver, or proxy appointment and give it effect as the act of the shareholder if any of the following apply:

(a) The shareholder is an entity and the name signed purports to be that of an officer or agent of the entity;

(b) The name signed purports to be that of an administrator, executor, guardian, personal representative, or conservator representing the shareholder and, if the Corporation requests, evidence of fiduciary status acceptable to the Corporation is presented with respect to the vote, consent, waiver, or proxy appointment;

(c) The name signed purports to be that of a receiver or trustee in bankruptcy, or assignee for the benefit of creditors of the shareholder and, if the Corporation requests, evidence of this status acceptable to the Corporation is presented with respect to the vote, consent, waiver, or proxy appointment;

(d) The name signed purports to be that of a pledgee, beneficial owner, or attorney-in-fact of the shareholder and, if the Corporation requests, evidence acceptable to the Corporation of the signatory's authority to sign for the shareholder is presented with respect to the vote, consent, waiver, or proxy appointment; or

(e) Two or more persons are the shareholder as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-owners and the person signing appears to be acting on behalf of all co-owners.

The Corporation may reject a vote, consent, waiver, or proxy appointment if the Secretary or other officer or agent of the Corporation who is authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory's authority to sign for the shareholder.

**ARTICLE 3** 

**BOARD OF DIRECTORS** 

Section 3.1 <u>General Powers, Number and Qualifications</u>. All corporate powers shall be exercised by or under the authority of, and the business and affairs of the Corporation managed under the direction of, the Board of Directors. The Board of Directors shall consist of not less than three (3) directors. Subject to the foregoing, the exact number of directors shall be established from time to time by resolution of the Board of Directors. If the terms of the directors are staggered or classified under Section 3.5 of these Bylaws, any increase or decrease in the number of directors shall be allocated proportionately among the classes. Any decrease in the number of directors shall not prematurely shorten the term of any incumbent director. Directors must be natural persons who are eighteen (18) years of age or older, but need not be residents of the State of Florida or shareholders of the Corporation.

Section 3.2 <u>Term of Office</u>. The term of each director shall expire at the next annual meeting of shareholders following his or her election or until his or her successor is elected and qualifies, unless their terms are staggered or classified under Section 3.5.

Section 3.3 <u>Removal</u>. A director may be removed from office only as provided in the Corporation's Articles of Incorporation at a meeting called for that purpose.

Section 3.4 <u>Resignation</u>. A director may resign at any time by delivering written notice to the Board of Directors or its Chairman or Vice Chairman (if any), or to the Corporation. A director's resignation is effective when the notice is delivered unless the notice specifies a later effective date.

------

Section 3.5 <u>Staggered Terms for Directors/Classification of the Board of Directors</u>. The Board of Directors may, by the Corporation's Articles of Incorporation, or by amendment to these Bylaws adopted by a vote of the shareholders, be divided into one, two or three classes with the number of directors in each class being as nearly equal as possible; the term of office of those of the first class to expire at the annual meeting next ensuing; of the second class one year thereafter; at the third class two years thereafter; and at each annual election held after such classification and election, directors shall be chosen for a full term, as the case may be, to succeed those whose terms expire. If the directors have staggered terms, then any increase or decrease in the number of directors shall be so apportioned among the classes as to make all classes as nearly equal in number as possible.

Section 3.6 <u>Vacancies</u>. Any vacancy occurring on the Board of Directors shall be filled as provided in the Corporation's Articles of Incorporation.

Section 3.7 <u>Compensation</u>. The Board of Directors, irrespective of any personal interest of any of its members, may establish reasonable compensation of all directors for services to the Corporation as directors or may delegate such authority to an appropriate committee. The Board of Directors also shall have authority to provide for or delegate authority to an appropriate committee to provide for reasonable pensions, disability or death benefits, and other benefits or payments, to directors, officers and employees and to their families, dependents, estates or beneficiaries on account of prior services rendered to the Corporation by such directors, officers and employees.

Section 3.8 <u>Chairman of the Board and Vice Chairman</u>. The Board of Directors may elect a director as the Chairman of the Board and, if it has done so, the Board of Directors may also elect another director as the Vice Chairman. The Chairman of the Board shall, when present, preside at all meetings of the shareholders and of the Board of Directors, may call meetings of the shareholders and the Board of Directors, shall advise and counsel with the management of the Corporation, and shall perform such other duties as set forth in these Bylaws and as determined by the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman shall, when present, preside at all meetings of the shareholders and of the Board of Directors. Except as provided in this Section 3.8, neither the Chairman of the Board nor the Vice Chairman shall be an officer or an employee of the Corporation by virtue of his or her election and service as Chairman of the Board or Vice Chairman; <u>provided</u>, <u>however</u>, the Chairman or Vice Chairman may be an officer of the Corporation. The Chairman may use the title Chairman or Chairman of the Board interchangeably.

Section 3.9 <u>Regular Meetings</u>. The Board of Directors may provide the date, time and place, either within or without the State of Florida, for the holding of regular meetings of the Board of Directors without notice. Such meetings may also be remotely held as provided by Section 3.14(d).

Section 3.10 <u>Special Meetings</u>. Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board, the Vice Chairman (if any), the Chief Executive Officer, the President or any two (2) directors. The person or persons calling the meeting may fix any place, either within or without the State of Florida, as the place for holding any special meeting of the Board of Directors, and if no other place is fixed, the place of the meeting shall be the the Corporation's principal office. Such meetings may also be remotely held as provided by Section 3.14(d).

Section 3.11 <u>Notice</u>. Special meetings of the Board of Directors must be preceded by at least two days' notice of the date, time, and place of the meeting. The notice need not describe the purpose of the special meeting. The Corporation may give notice of a regular or special meeting of the Board of Directors by electronic means to each director who consents to such electronic means of notice in the manner authorized by that director.

Section 3.12 <u>Waiver of Notice</u>. Notice of a meeting of the Board of Directors need not be given to any director who signs a waiver of notice either before or after the meeting. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting and waiver of any and all objections to the place of the meeting, the time of the meeting, or the manner in which it has been called or convened, except when a director states, at the beginning of the meeting or promptly upon arrival at the meeting, any objection to the transaction of business because the meeting is not lawfully called or convened.

Section 3.13 <u>Quorum and Voting</u>. A majority of the total number of directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. If a quorum is present when a vote is taken, the affirmative vote of a majority of directors present is the act of the Board of Directors. A director who is present at a meeting of the Board of Directors or a committee of the Board of Directors when corporate action is taken is deemed to have assented to the action taken unless: (a) he or she objects at the beginning of the meeting (or promptly upon his or her arrival) to holding it or transacting specified business at the meeting; or (b) he or she votes against or abstains from the action taken.

------

Section 3.14 <u>Conduct of Meetings</u>.

(a) <u>Presiding Officer</u>. The Chairman of the Board, and in his or her absence, the Vice Chairman (if any), and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, any director chosen by the directors present, shall call meetings of the Board of Directors to order and shall act as presiding officer of the meeting.

(b) <u>Minutes</u>. The Secretary of the Corporation shall act as secretary of all meetings of the Board of Directors but in the absence of the Secretary, the presiding officer may appoint any other person present to act as secretary of the meeting. Minutes of any regular or special meeting of the Board of Directors shall be prepared and distributed to each director.

(c) <u>Adjournments</u>. A majority of the directors present, whether or not a quorum exists, may adjourn any meeting of the Board of Directors to another time and place. Notice of any such adjourned meeting shall be given to the directors who are not present at the time of the adjournment and, unless the time and place of the adjourned meeting are announced at the time of the adjournment, to the other directors.

(d) <u>Participation by Conference Call or Similar Means</u>. The Board of Directors may permit any or all directors to participate in a regular or a special meeting by, or conduct the meeting through the use of, any means of communication by which all directors participating may simultaneously hear each other during the meeting, including virtual meetings. A director participating in a meeting by this means is deemed to be present in person at the meeting.

Section 3.15 <u>Committees</u>. The Board of Directors, by resolution adopted by a majority of all of the directors then in office, may establish from among its members one or more committees (which may include, by way of example and not as a limitation, an executive committee, a compensation committee, an audit committee and a nominating and corporate governance committee) each of which, to the extent provided in such resolution and in any charter adopted by the Board of Directors for any committee, shall have and may exercise all the authority of the Board of Directors, except that no such committee shall have the authority to:

(a) approve, recommend to shareholders or propose to shareholders actions required by the Act to be approved by shareholders;

(b) fill vacancies on the Board of Directors or any committee thereof;

(c) adopt, amend, or repeal these Bylaws; or

(d) authorize or approve the reacquisition of shares unless pursuant to a general formula or method, or within limits, prescribed by the Board of Directors.

Each committee must have one or more members, who shall serve at the pleasure of the Board of Directors. The Board of Directors, by resolution adopted in accordance with this Section 3.15, may designate one or more directors as alternate members of any such committee, who may act in the place and stead of any absent member or members at any meeting of such committee. The Board of Directors may adopt a charter for any such committee specifying requirements with respect to committee chairs and membership, responsibilities of the committee, the conduct of meetings and business of the committee and such other matters as the Board may designate. In the absence of a committee charter or a provision of a committee charter governing such matters, the provisions of these Bylaws which govern meetings, notice and waiver of notice, and quorum and voting requirements of the Board of Directors apply to committees and their members as well.

Section 3.16 <u>Action Without Meeting</u>. Any action required or permitted by the Act to be taken at a meeting of the Board of Directors or a committee thereof may be taken without a meeting if the action is taken by all members of the Board or of the committee. The action shall be evidenced by one or more written consents describing the action taken, signed by each director or committee member and retained by the Corporation. Such action shall be effective when the last director or committee member signs the consent, unless the consent specifies a different effective date.

------

A consent signed under this Section 3.16 has the effect of a vote at a meeting and may be described as such in any document.

**ARTICLE 4** 

**OFFICERS** 

Section 4.1 <u>Number</u>. The principal officers of the Corporation shall be a Chief Executive Officer, a President, a Chief Financial Officer, the number of Vice Presidents as authorized from time to time by the Board of Directors and a Secretary, each of whom shall be elected by the Board of Directors. Such other officers and assistant officers as may be deemed necessary may be elected or appointed by the Board of Directors. The Board of Directors may also authorize any duly appointed officer to appoint one or more officers or assistant officers. Any two or more offices may be held by the same person.

Section 4.2 <u>Election and Term of Office</u>. The officers of the Corporation to be elected by the Board of Directors shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of the shareholders. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as is practicable. Each officer shall hold office until his or her successor shall have been duly elected or until his or her prior death, resignation, or removal.

Section 4.3 <u>Removal</u>. The Board of Directors may remove any officer and, unless restricted by the Board of Directors, an officer may remove any officer or assistant officer appointed by that officer, at any time, with or without cause and notwithstanding the contract rights, if any, of the officer removed. The appointment of an officer does not of itself create contract rights.

Section 4.4 <u>Resignation</u>. An officer may resign at any time by delivering notice to the Corporation. The resignation shall be effective when the notice is delivered, unless the notice specifies a later effective date and the Corporation accepts the later effective date. If a resignation is made effective at a later date and the Corporation accepts the future effective date, the pending vacancy may be filled before the effective date but the successor may not take office until the effective date.

Section 4.5 <u>Vacancies</u>. A vacancy in any principal office because of death, resignation, removal, disqualification, or otherwise, shall be filled as soon thereafter as practicable by the Board of Directors for the unexpired portion of the term.

Section 4.6 <u>Chief Executive Officer</u>. The Chief Executive Officer shall be the principal executive officer of the Corporation and, subject to the control of the Board of Directors, shall in general supervise and control all of the business and affairs of the Corporation. The Chief Executive Officer shall have authority, subject to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the Corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them. Such agents and employees shall hold office at the discretion of the Chief Executive Officer. He or she shall have authority to sign, execute and acknowledge, on behalf of the Corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the Corporation's regular business, or which shall be authorized by resolution of the Board of Directors; and, except as otherwise provided by law or the Board of Directors, he or she may authorize the President or any Vice President or other officer or agent of the Corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead. In general, he or she shall perform all duties incident to the office of Chief Executive Officer and such other duties as may be prescribed by the Board of Directors from time to time. In the absence or disability of the Chairman of the Board, or when that position is vacant, the Chief Executive Officer shall, when present, preside at all meetings of the shareholders and of the Board of Directors.

Any or all of the duties and powers of the Chief Executive Officer, in the discretion of the Board of Directors, may be vested in a Chairman of the Board, elected by the Board of Directors from among its members, in which event such duties and powers will be performed or exercised by the Chief Executive Officer only in the absence or disability of the Chairman of the Board or upon direction by the Board of Directors.

------

Section 4.7 <u>President</u>. The President will have such powers and perform such duties as may from time to time be assigned to him by the Chief Executive Officer or the Board of Directors or as may be prescribed by these Bylaws. In the event of the absence, death or incapacity of the Chief Executive Officer, the President will have the powers and duties of the Chief Executive Officer. The President shall have authority, subject to the authority of the Chief Executive Officer and to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the Corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them. Such agents and employees shall hold office at the discretion of the President. He or she shall have authority to sign, execute and acknowledge, on behalf of the Corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the Corporation's regular business, or which shall be authorized by the Chief Executive Officer or by resolution of the Board of Directors; and, except as otherwise provided by law, the Chief Executive Officer or the Board of Directors, he or she may authorize any Vice President or other officer or agent of the Corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.

Section 4.8 <u>Chief Financial Officer</u>. The Chief Financial Officer shall responsible for the financial operations of the Corporation, including the maintenance of financial records, the preparation and reporting of financial results and related tax returns, the co-ordination of the reporting practices of the Corporation with outside auditors, the negotiation of credit arrangements with the Corporations' lenders and investors and related budgeting, tax-planning and forecasting functions. Subject to the further direction from time to time from the Board of Directors, the Chief Executive Officer or the President, the Chief Financial Officer shall have the authority to execute documentation on behalf of the Corporation and shall have such other powers and perform such other duties incident to the position as well as such other duties as may be delegated or assigned by the Chief Executive Officer, the President or the Board of Directors<u>.</u>

Section 4.9 <u>Vice Presidents</u>. In the absence or disability of the President, the Vice President (or in the event there be more than one Vice President, the Vice Presidents in the order and with the status designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President. Any Vice President may sign, with the Secretary or Assistant Secretary, certificates for shares of the Corporation; and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or the Board of Directors. The execution of any instrument of the Corporation by any Vice President shall be conclusive evidence, as to third parties, of his or her authority to act in the stead of the President. The Board of Directors may designate any Vice President as being senior in rank or degree of responsibility and may accord such a Vice President an appropriate title designating his or her senior rank, such as (in order of seniority) "Executive Vice President" or "Senior Vice President." The Board of Directors or the Chief Executive Officer may assign a certain Vice President responsibility for a designated group, division or function of the Corporation's business and add an appropriate descriptive designation to his or her title.

Section 4.10 <u>The Secretary</u>. The Secretary shall: (a) keep minutes of the meetings of the shareholders and of the Board of Directors (and of committees thereof) in one or more books provided for that purpose (including records of actions taken by the shareholders or the Board of Directors (or committees thereof) without a meeting); (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by the Act; (c) be custodian of the corporate records and of the seal of the Corporation (if any) and see that the seal of the Corporation (if any) is affixed to all documents the execution of which on behalf of the Corporation under its seal is duly authorized; (d) maintain or cause an authorized agent to maintain a record of the shareholders of the Corporation, in a form that permits preparation of a list of the names and addresses of all shareholders, by class or series of shares and showing the number and class or series of shares held by each shareholder; (e) sign with the Chief Executive Officer, the President or a Vice President, certificates for shares of the Corporation, the issuance of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the stock transfer books of the Corporation; and (g) in general perform all duties incident to the office of Secretary and have such other duties and exercise such authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President or the Board of Directors.

Section 4.11 <u>Assistant Secretaries</u>. There shall be such number of Assistant Secretaries as the Board of Directors may from time to time authorize. The Assistant Secretaries may sign with the Chief Executive Officer, the President or a Vice President certificates for shares of the Corporation the issuance of which shall have been authorized by a resolution of the Board of Directors. The Assistant Secretaries, in general, shall perform such duties and have such authority as shall from time to time be delegated or assigned to them by the Secretary or by the Chief Executive Officer, the President or the Board of Directors.

------

Section 4.12 <u>Other Assistants and Acting Officers</u>. The Board of Directors shall have the power to appoint, or to authorize any duly appointed officer of the Corporation to appoint, any person to act as assistant to any officer, or as agent for the Corporation in his or her stead, or to perform the duties of such officer whenever for any reason it is impracticable for such officer to act personally, and such assistant or acting officer or other agent so appointed by the Board of Directors or an authorized officer shall have the power to perform all the duties of the office to which he or she is so appointed to be an assistant, or as to which he or she is so appointed to act, except as such power may be otherwise defined or restricted by the Board of Directors or the appointing officer.

Section 4.13 <u>Salaries</u>. The salaries of the principal officers shall be fixed from time to time by the Board of Directors or by a duly authorized committee thereof, and no officer shall be prevented from receiving such salary by reason of the fact that he or she is also a director of the Corporation.

**ARTICLE 5** 

**CONTRACTS, CHECKS AND DEPOSITS** 

Section 5.1 <u>Contracts</u>. The Board of Directors may authorize any officer or officers, or any agent or agents to enter into any contract or execute or deliver any instrument in the name of and on behalf of the Corporation, and such authorization may be general or confined to specific instances. In the absence of other designation, all deeds, mortgages, and instruments of assignment or pledge made by the Corporation shall be executed in the name of the Corporation by the Chief Executive Officer, the President or a Vice President; the Secretary or an Assistant Secretary (if any), when necessary or required, shall attest and affix the corporate seal, if any, thereto; and when so executed no other party to such instrument or any third party shall be required to make any inquiry into the authority of the signing officer or officers.

Section 5.2 <u>Checks, Drafts, etc</u>. All checks, drafts or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the Corporation, shall be signed by such officer or officers, agent or agents of the Corporation and in such manner as shall from time to time be determined by or under the authority of a resolution of the Board of Directors.

Section 5.3 <u>Deposits</u>. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such banks, trust companies, or other depositaries as may be selected by or under the authority of a resolution of the Board of Directors.

**ARTICLE 6** 

**SHARE CERTIFICATES; DIVIDENDS AND DISTRIBUTIONS** 

Section 6.1 <u>Form and Content of Share Certificates</u>.

(a) Shares may but need not be represented by certificates. Unless the Act or another Florida statute expressly provides otherwise, the rights and obligations of shareholders are identical whether or not their shares are represented by certificates.

(b) At a minimum, each share certificate must state on its face:

(i) The name of the issuing corporation and that the Corporation is organized under the laws of the State of Florida;

(ii) The name of the person to whom issued; and

(iii) The number and class of shares and the designation of the series, if any, the certificate represents.

------

(c) If the shares being issued are of different classes of shares or different series within a class, the designations, relative rights, preferences, and limitations applicable to each class and the variations in rights, preferences, and limitations determined for each series (and the authority of the Board of Directors to determine variations for future series) must be summarized on the front or back of each certificate. Alternatively, each certificate may state conspicuously on its front or back that the Corporation will furnish the shareholder a full statement of this information on request and without charge.

(d) Each share certificate:

(i) Must be signed (either manually or in facsimile) by an officer or officers designated by the Board of Directors; and

(ii) May bear the corporate seal or its facsimile.

(e) If the person who signed (either manually or in facsimile) a share certificate no longer holds office when the certificate is issued, the certificate is nevertheless valid.

Section 6.2 <u>Shares Without Certificates</u>.

(a) The Board of Directors may authorize the issue of some or all of the shares of any or all of its classes or series without certificates. The authorization does not affect shares already represented by certificates until they are surrendered to the Corporation.

(b) Within a reasonable time after the issue or transfer of shares without certificates, the Corporation shall send the shareholder a written statement of the information required on certificates by the Act.

Section 6.3 <u>Restriction on Transfer of Shares and Other Securities</u>.

(a) The Corporation's Articles of Incorporation, these Bylaws, an agreement among shareholders, or an agreement between shareholders and the Corporation may impose restrictions on the transfer or registration of transfer of shares of the Corporation. A restriction does not affect shares issued before the restriction was adopted unless the holders of such shares are parties to the restriction agreement or voted in favor of the restriction.

(b) A restriction on the transfer or registration of transfer of shares is valid and enforceable against the holder or a transferee of the holder if the restriction is authorized by this Section 6.3, and effected in compliance with the provisions of the Act, including having a proper purpose as referred to in the Act.

Section 6.4 <u>Distributions to Shareholders</u>.

(a) The Board of Directors may authorize, and the Corporation may make, distributions to its shareholders subject to any limitations in the and the Act.

(b) If the Board of Directors does not fix the record date for determining shareholders entitled to a distribution (other than one involving a purchase, redemption, or other acquisition of the Corporation's shares), it is the date the Board of Directors authorizes the distribution.

**ARTICLE 7** 

**SEAL** 

The Board of Directors may provide for a corporate seal for the Corporation.

------

**ARTICLE 8** 

**INDEMNIFICATION** 

Section 8.1 <u>Indemnification</u>. The Corporation shall, to the fullest extent permitted or required by the Act, including any amendments thereto (but in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than prior to such amendment), indemnify its Directors and Officers against any and all Liabilities, and advance any and all reasonable Expenses, incurred thereby in connection with any Proceeding to which any such Director or Officer is a Party or in which such Director or Officer is deposed or called to testify as a witness because he or she is or was a Director or Officer of the Corporation, whether or not such person continues to serve in such capacity at the time the obligation to indemnify against Liabilities or advance Expenses is incurred or paid. The rights to indemnification granted hereunder shall not be deemed exclusive of any other rights to indemnification against Liabilities or the advancement of Expenses which a Director or Officer may be entitled under any written agreement, Board of Director resolution, vote of shareholders, the Act or otherwise. The Corporation may, but shall not be required to, supplement the foregoing rights to indemnification against Liabilities and advancement of Expenses by the purchase of insurance on behalf of any one or more of its Directors or Officers whether or not the Corporation would be obligated to indemnify or advance Expenses to such Director or Officer under this Article 8. For purposes of this Article 8, the term "Directors" includes former directors and any directors who are or were serving at the request of the Corporation as directors, officers, employees, or agents of another Corporation, partnership, joint venture, trust, or other enterprise, including, without limitation, any employee benefit plan (other than in the capacity as agents separately retained and compensated for the provision of goods or services to the enterprise, including, without limitation, attorneys-at-law, accountants, and financial consultants), whether or not such person continues to serve in such capacity at the time the obligation to indemnify against Liabilities or advance Expenses is incurred or paid. All other capitalized terms used in this Article 8 and not otherwise defined herein shall have the meaning set forth in Section 607.0850 of the Act (or successor provision). The provisions of this Article 8 are intended solely for the benefit of the indemnified parties described herein, their heirs and personal representatives and shall not create any rights in favor of third parties. No amendment to or repeal of this Article 8 shall diminish the rights of indemnification provided for herein to any person who serves or served as a Director or Officer at any time prior to such amendment or repeal.

Section 8.2 <u>No Subrogation</u>. The indemnification provided for by these Bylaws will be personal in nature and the Corporation will not have any liability under this Article 8 to any insurer or any person, corporation, partnership, trust or association or other entity (other than heirs, executors or administrators) by reason of subrogation, assignment, or succession by any other means to the claim of any person indemnified pursuant to these Bylaws.

**ARTICLE 9** 

**EXCLUSIVE JURISDICATION** 

Section 9.2 <u>U.S. Federal Courts</u>. Unless the Corporation consents in writing to the selection of an alternative forum, the U.S. federal district courts shall be the exclusive forum for the resolution of any complaint asserting a cause of action against the Corporation or any director, officer, other employee or agent of the Corporation arising under the Securities Act of 1933, as amended.

Section 9.3 <u>Deemed Notice and Consent</u>. Any person or entity purchasing or otherwise acquiring any interest in any security of the Corporation shall be deemed to have notice of and consented to the provisions of this Article 9. This Article 9 shall be enforceable by any party to a complaint covered by the provisions of this Article 9.

------

**ARTICLE 10** 

**AMENDMENTS** 

As provided in the Corporation's Articles of Incorporation, any provisions in these Bylaws that require a greater voting requirement than provided in the Act may only be amended by the shareholders by the same vote required to take action under the voting requirement then in effect.

**ARTICLE 11** 

**MISCELLANEOUS** 

Section 11.1 <u>Application of Florida Law</u>. Whenever any provision of these Bylaws is inconsistent with any provision of the Act, as they may be amended from time to time, then in such instance, Florida law shall prevail.

Section 11.2 <u>Fiscal Year</u>. The fiscal year of the Corporation shall be determined by resolution of the Board of Directors.

Section 11.3 <u>Conflicts with the Corporation's Articles of Incorporation</u>. In the event that any provision contained in these Bylaws conflicts with any provision of the Corporation's Articles of Incorporation, as amended from time to time, the provisions of the Corporation's Articles of Incorporation shall prevail and be given full force and effect, to the full extent permissible under the Act.

Section 11.4 <u>Partial Invalidity</u>. If any provision of these Bylaws shall, for any reason, be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of these Bylaws, and these Bylaws shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

## Exhibit 5.1

**Exhibit 5.1** 

---

| | |
|:---|:---|
| ![LOGO](g28749dsp01.jpg) | 100 N TAMPA ST<br> SUITE 2700<br> TAMPA, FL 33602-5810<br> 813.229.2300 TEL<br> 813.221.4210 FAX<br> FOLEY.COM |

---

**[Form of Opinion of Foley & Lardner LLP]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[_____], 2025

Exzeo Group, Inc.

1000 Century Park Drive

Tampa, Florida 33607

Ladies and Gentlemen:

This opinion is furnished to you in connection with the Registration Statement on Form S-1, as amended (Registration No. 333-[•]) (the "Registration Statement"), including the prospectus constituting a part thereof (the "Prospectus"), filed by Exzeo Group, Inc., a Florida corporation (the "Company"), with the Securities and Exchange Commission (the "Commission") in connection with the registration under the Securities Act of 1933, as amended (the "Securities Act"), of up to [•] shares, including up to [•] shares issuable upon exercise of an over-allotment option granted to the underwriters by the Company, of the Company's common stock, par value $0.001 (the "Shares"). We understand that the Shares are to be sold to the underwriters for resale to the public as described in the Registration Statement and pursuant to an underwriting agreement, substantially in the form filed as an exhibit to the Registration Statement, to be entered into by and among the Company and the underwriters (the "Underwriting Agreement").

We have acted as counsel for the Company in connection with the proposed offer and sale of the Shares by the Company (the "Offering"). In connection with this opinion, we have examined and relied upon (i) the Registration Statement, including the Prospectus, and the exhibits constituting a part of the Registration Statement; (ii) the Underwriting Agreement; (iii) the Amended and Restated Articles of Incorporation and Bylaws of the Company, each as filed as exhibits to the Registration Statement; (iv) resolutions of the Board of Directors of the Company relating to the Offering and the issuance of the Shares; and (v) such other proceedings, documents and records as we have deemed necessary or appropriate to enable us to render this opinion.

In rendering the opinion expressed herein, we have, without independent inquiry or investigation, assumed that (i) all documents submitted to us as originals are authentic and complete, (ii) all documents submitted to us as copies conform to authentic, complete originals, (iii) all signatures on all documents that we reviewed are genuine, (iv) all natural persons executing documents had and have the legal capacity to do so, (v) all statements in certificates of public officials and officers of the Company that we reviewed were and are accurate and (vi) all representations made by the Company as to matters of fact in the documents that we reviewed were and are accurate.

Based upon the foregoing and subject to the additional assumptions and qualifications set forth below, we advise you that, in our opinion, when the price at which the Shares are to be sold has been approved by or on behalf of the Board of Directors of the Company and when the Shares have been issued and delivered against payment therefor in accordance with the terms of the Underwriting Agreement, the Shares will be validly issued, fully paid and non- assessable.

------

![LOGO](g28749dsp01.jpg)

[_____], 2025

In connection with the opinion expressed above, we have assumed that prior to closing of the Offering contemplated by the Prospectus, the Company's Amended and Restated Articles of Incorporation (in the form filed as Exhibit 3.1 to the Registration Statement) has been filed with the Secretary of State of Florida and has become effective.

We express no opinion as to the laws of any jurisdiction other than the State of Florida and the federal laws of the United States.

We hereby consent to the reference to our firm under the caption "Legal Matters" in the Prospectus which is filed as part of the Registration Statement, and to the filing of this opinion as an exhibit to the Registration Statement. In giving this consent, we do not admit that we are "experts" within the meaning of Section 11 of the Securities Act or within the category of persons whose consent is required by Section 7 of the Securities Act.

Very truly yours,

## Exhibit 10.1

**Exhibit 10.1** 

**<u>INDEMNIFICATION AGREEMENT</u>**

This Indemnification Agreement (the "Indemnification Agreement") is made and entered into as of [•], [•], by and between **EXZEO GROUP, INC.**, a Florida corporation (the "Company"), and **________________________**, an individual ("Indemnitee").

**WHEREAS**, it is essential to the Company to retain and attract qualified directors and officers;

**WHEREAS**, Indemnitee is a director and/or officer of the Company or one or more of its subsidiaries;

**WHEREAS**, the Company and Indemnitee recognize the risk of litigation and other claims being asserted against directors and officers of public companies;

**WHEREAS**, the Fourth Amended and Restated Articles of Incorporation (the "Articles") of the Company authorizes the Company to indemnify and advance expenses to its directors and officers to the full extent permitted by law, and Indemnitee has been serving and continues to serve as a director and/or officer of the Company in part in reliance upon the Articles; and,

**WHEREAS**, in recognition of (1) Indemnitee's need for substantial protection against personal liability; (2) the Company's need to induce Indemnitee's continued service to the Company in an effective manner; and (3) Indemnitee's reliance on the Articles, and to provide Indemnitee with specific contractual assurance that the protection contained in the Articles will be available to Indemnitee (regardless of, among other things, any amendment to or restatement of the Articles or any changes in the composition of the Company's Board of Directors or any Change of Control or business combination in which the Company participates), the Company wishes to provide in this Indemnification Agreement for the indemnification of and the advancing of expenses to Indemnitee to the full extent (whether partial or complete) permitted by law and as set forth in this Indemnification Agreement and, if insurance is obtained, for the coverage of Indemnitee under the Company's directors' and officers' liability insurance policies.

**NOW, THEREFORE**, in consideration of the premises, the mutual promises, covenants and conditions herein contained, Indemnitee continuing to serve the Company directly, or at its request, to serve another enterprise, and for other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.  **<u>Certain Definitions</u>** . In addition to the words and terms elsewhere defined in this Indemnification
Agreement, certain capitalized words and terms used herein shall have the meanings given to them by the definitions and descriptions in this Section 1, unless the context or use indicates another or different meaning or intent, and such
definitions shall be equally applicable to both the singular and plural forms of any of the capitalized words and terms herein defined. The following words and terms are defined terms under this Indemnification Agreement:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Change in Control</u>. "Change in Control" shall be deemed to have occurred if (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended ("Exchange Act")), other than a trustee or other fiduciary holding securities under an employee benefit plan of the
Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in Rule 13-d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the total voting power represented by the Company's then
outstanding Voting Securities (unless such change in beneficial ownership results solely from a reduction in the aggregate number of outstanding shares of Voting Securities); (ii) during any period of two consecutive years, not including any period
prior to the execution of this Indemnification Agreement, individuals who at the beginning of such period constitute the Board of Directors of the Company (and any new director whose election by the Board of Directors or nomination for election by
the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved), cease for any reason to constitute a majority thereof; or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity)
at least 50% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (iv) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions) all or substantially all the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Claim</u>. "Claim" means any threatened, pending or completed action, suit, proceeding or
alternative dispute resolution, or any inquiry or investigation, whether instituted by the Company or any other person or party, that Indemnitee, in good faith, reasonably determines might lead to the institution of any such action, suit, proceeding
or alternative dispute resolution, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Expenses</u>. "Expenses" means any and all reasonable expenses, including reasonable
attorneys' and experts' fees, court costs, transcript costs, travel expenses, duplicating, printing and binding costs, telephone charges, and all other costs, expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in any Claim relating to any Indemnifiable Event. Expenses also shall include (i) Expenses incurred in connection
with any appeal resulting from any Claim, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 4 only,
Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise. Expenses, however, shall not include amounts paid in settlement of any
threatened or pending Claim by Indemnitee or the amount of judgments or fines against Indemnitee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Indemnifiable Event</u>. "Indemnifiable Event" means any event or occurrence, whether occurring
on or after the date of this Agreement related to the fact that Indemnitee is or was a director, officer, employee, trustee or agent of the Company or any subsidiary of the Company, or is or was serving at the request of the Company as a director,
officer, member, manager, employee, trustee, agent or fiduciary of another corporation, limited liability company, partnership, joint venture, employee benefit plan, trust or other entity or enterprise, or by reason of anything done or not done by
Indemnitee in any such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Independent Legal Counsel</u>. "Independent Legal Counsel" means an attorney or firm of
attorneys, selected in accordance with the provisions of this Agreement, who is experienced in matters of corporation law and who shall not have otherwise been retained by or performed services within the last five years for (i) the Company or
Indemnitee (other than with respect to matters concerning the rights of Indemnitee under this Indemnification Agreement or of other indemnities under similar indemnification agreements) or (ii) any other party to the Claim giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Legal Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Losses</u>. "Losses" means any and all Expenses, damages, losses, liabilities, judgments, fines,
penalties (whether civil, criminal or other), ERISA excise taxes and penalties, any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, amounts paid or
payable in settlement, including any interest, assessments, and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or
participate in, any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>Qualified Director</u>. "Qualified Director" means a director who, at the time action is to be
taken under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. is not a director as to whom a transaction is a director's conflict of interest transaction, which
transaction is challenged in such Claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. does not have a material relationship with a director who is disqualified by virtue of not meeting the
requirements of subparagraph (i) or subparagraph (ii) of this definition.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Reviewing Party</u>. "Reviewing Party" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. if there are two or more Qualified Directors, by the Board Directors by a majority vote of all of the Qualified
Directors, a majority of whom shall for such purposes constitute a quorum, or by a majority of the members of a committee of two or more Qualified Directors appointed by such a vote; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. by Independent Legal Counsel: (1) selected in the manner prescribed by paragraph (h)(i) of this
definition; or (2) if there are fewer than two Qualified Directors, selected by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Voting Securities</u>. "Voting Securities" means any securities of the Company which vote
generally in the election of directors.

2.  **<u>Basic Indemnification Arrangement</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to
be made a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee to the full extent permitted by the Articles and the Florida Business Corporation
Act as soon as practicable but in any event no later than thirty days after written demand is presented to the Company, against any and all Losses (including all interest, assessments and other charges paid or payable in connection with or in
respect of such Losses) related to or arising from such a Claim including, without limitation, Claims brought by or in the right of the Company, Claims brought by third parties, and Claims in which the Indemnitee is solely a witness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Indemnitee shall have the right to advancement by the Company, prior to the final disposition of any Claim by
final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim arising out of an Indemnifiable Event. Without limiting the generality or
effect of the foregoing, within thirty days of such request by Indemnitee, the Company shall, in accordance with such request, (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay
such Expenses, or (c) reimburse Indemnitee for such Expenses. In connection with any request for payment of expenses advanced to Indemnitee by the Company pursuant to this Section 2 ("Expense Advances"), Indemnitee shall not be
required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Notwithstanding the foregoing, (i) the obligations of the Company under this Section 2 shall be
subject to the condition that the Reviewing Party shall not have determined (in a written opinion to the Board of Directors in any case in which Independent Legal Counsel is involved) that Indemnitee would not be permitted to be indemnified under
applicable law, and (ii) the obligation of the Company to make an Expense Advance pursuant to this Section 2 shall be subject to the condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee

------

would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee's obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If there has not been a Change in Control (or if there has been a Change in Control which has been approved by
a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control), the Reviewing Party shall be, if there are two or more Qualified Directors, the Board Directors by a majority vote of all of the
Qualified Directors, a majority of whom shall for such purposes constitute a quorum, or by a majority of the members of a committee of two or more Qualified Directors appointed by such a vote, or by Independent Legal Counsel selected by the Board of
Directors or such committee. If there has been such a Change in Control (other than a Change in Control which has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control),
the Reviewing Party shall be the Independent Legal Counsel referred to in Section 3 hereof and contemplated by the definition of Review Party. If there has been no determination by the Reviewing Party or if the Reviewing Party determines that
Indemnitee substantively would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation in any court in the State of Florida having subject matter jurisdiction thereof and in
which venue is proper seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee.

3.  **<u>Change in Control</u>** . The Company agrees that if there is a Change in Control of the Company (other
than a Change in Control which has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control) then with respect to all matters thereafter arising concerning the rights of
Indemnitee to indemnity payments and Expense Advances under the Articles, this Indemnification Agreement or any other agreement or Company Bylaws now or hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal
advice only from Independent Legal Counsel selected by Indemnitee and approved by the Company in the manner contemplated by this Agreement (which approval shall not be unreasonably withheld). Such counsel, among other things, shall render its
written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee would be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the Independent Legal Counsel referred to above
and to fully indemnify such counsel against any and all expenses (including attorneys' fees), claims, liabilities and damages arising out of or relating to this Indemnification Agreement or its engagement pursuant hereto.

------

4.  **<u>Indemnification for Additional Expenses</u>** . The Company shall indemnify Indemnitee against any and
all Expenses and, if requested by Indemnitee, shall (within two business days of such request) advance such Expenses to Indemnitee which are incurred by Indemnitee in connection with any action brought by Indemnitee for (i) indemnification or
advance payment of Expenses by the Company under this Indemnification Agreement or any other agreement, the Articles or Company Bylaw now or hereafter in effect relating to Claims for Indemnifiable Events, and/or (ii) recovery under any
directors' and officers' liability insurance policies maintained by the Company regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance Expense payment or insurance recovery, as the case
may be.

5.  **<u>Partial Indemnity, Etc</u>** . If Indemnitee is entitled under any provision of this Indemnification
Agreement to indemnification by the Company for some or a portion of the Losses related to a Claim but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. Moreover, notwithstanding any other provision of this Indemnification Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable
Event or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

6.  **<u>Exception to Right of Indemnification</u>** . Notwithstanding any provision in this Indemnification
Agreement, the Company shall not be obligated to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by
Indemnitee, including any proceedings against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except where the Company has joined in or the Board of Directors has consented to the initiation of such
proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such
indemnification is prohibited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. indemnify Indemnitee for the disgorgement of profits arising from purchase or sale by Indemnitee of securities
of the Company in violation of Section 16(b) of the Exchange Act, or any similar successor statute.

7.  **<u>Notification and Defense of Claims</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Notification of Claims</u>. Indemnitee shall notify the Company in writing as soon as practicable of any
Claim which could relate to an Indemnifiable Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information then available to Indemnitee) of the nature of, and the facts underlying, such Claim. The
failure by Indemnitee to timely notify the Company hereunder shall not relieve the Company from any liability hereunder unless the Company's ability to participate in the defense of such claim was materially and adversely affected by such
failure.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Defense of Claims</u>. The Company shall be entitled to participate in the defense of any Claim relating to
an Indemnifiable Event at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee (the consent to which shall not be
unreasonably withheld by Indemnitee). After notice from the Company to Indemnitee of its election to assume the defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently
directly incurred by Indemnitee in connection with Indemnitee's defense of such Claim other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own legal counsel in such Claim,
but all Expenses related to such counsel incurred after notice from the Company of its assumption of the defense shall be at Indemnitee's own expense; provided, however, that if (i) Indemnitee's employment of its own legal counsel
has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of such Claim, (iii) after a Change in Control, Indemnitee's
employment of its own counsel has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Claim, then Indemnitee shall be entitled to retain its own separate counsel
(but not more than one law firm plus, if applicable, local counsel in respect of any such Claim) and all Expenses related to such separate counsel shall be borne by the Company.

8.  **<u>Presumption in Favor of Indemnitee; Burden of Proof</u>** . In connection with any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, there shall exist a rebuttable presumption that Indemnitee has met the applicable standard(s) of conduct and is, therefore, entitled to indemnification
pursuant to this Indemnification Agreement, and the burden of proof shall be on the Company to establish that Indemnitee has not met such applicable standard(s) of conduct and is not so entitled to indemnification.

9.  **<u>No Other Presumptions</u>** . For purposes of this Indemnification Agreement, the termination of any
claim, action, suit or proceeding, by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that (i) Indemnitee did not meet any
particular standard of conduct; or (ii) Indemnitee did not have any particular belief; or, (iii) that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party
to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that Indemnitee has not met such standard of conduct or did not have
such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified under applicable law shall be a defense to Indemnitee's claim or create a presumption that
Indemnitee has not met any particular standard of conduct or did not have any particular belief.

------

10.  **<u>Nonexclusivity, Etc</u>** . The rights of Indemnitee hereunder will be in addition to any other rights
Indemnitee may have under the Articles, any Company Bylaw, the Florida Business Corporation Act or any other contract or otherwise (collectively, "Other Indemnity Provisions"); provided, however, that (a) to the extent that
Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity
Provision which permits any greater right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder.

11.  **<u>Liability Insurance</u>** . If the Company obtains directors' and officers' liability
insurance, then, to the extent the Company maintains an insurance policy or policies providing directors' and officers' liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms,
to the maximum extent of the coverage available for any Company director or officer.

12.  **<u>Period of Limitations</u>** . No legal action shall be brought and no cause of action shall be asserted
by or in the right of the Company against Indemnitee or Indemnitee's spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim or cause of
action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two year period; <u>provided</u>, <u>however</u>, that if any shorter period of limitations is otherwise applicable to
any such cause of action, such shorter period shall govern.

13.  **<u>Amendments, Etc</u>** . No supplement, modification or amendment of this Indemnification Agreement shall
be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Indemnification Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall
such waiver constitute a continuing waiver.

14.  **<u>Subrogation</u>** . In the event of payment under this Indemnification Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary
to enable the Company effectively to bring suit to enforce such rights. To the extent Indemnitee has been indemnified by the Company hereunder and later receives payments from any insurance carrier covering the same Losses so indemnified by the
Company hereunder, Indemnitee shall immediately reimburse the Company hereunder for all such amounts received from the insurer. Notwithstanding anything contained herein to the contrary, Indemnitee shall not be entitled to recover amounts under this
Indemnification Agreement which, when added to the amount of indemnification payments made to, or on behalf of, Indemnitee, under the Articles or Company Bylaws, in the aggregate exceed the Losses actually and reasonably incurred by Indemnitee
("Excess Amounts"). To the extent the Company has paid Excess Amounts to Indemnitee, Indemnitee shall be obligated to immediately reimburse the Company for such Excess Amounts.

------

15.  **<u>No Duplication of Payments</u>** . The Company shall not be liable under this Indemnification Agreement
to make any payment in respect of any Losses to the extent Indemnitee has otherwise actually received payment (under any insurance policy, the Articles or Company Bylaws or otherwise) of the amounts otherwise indemnifiable hereunder.

16.  **<u>Right of Individual Attorney</u>** . Except as specifically provided in this Agreement, the Company
shall not restrict the right of Indemnitee to be represented by and indemnified against the fees and expenses of the attorney of Indemnitee's choice hereunder.

17.  **<u>Allowance for Compliance with SEC Requirements</u>** . Indemnitee acknowledges that the Securities and
Exchange Commission ("SEC") has expressed the opinion that indemnification of directors and officers from liabilities under the Securities Act of 1933, as amended (the "Securities Act") is against public policy as expressed
in the Securities Act and is, therefore, unenforceable. Indemnitee hereby agrees that it will not be a breach of this Indemnification Agreement for the Company to undertake with the SEC in connection with the registration for sale of any stock or
other securities of the Company from time to time that, in the event a claim for indemnification against liabilities under the Securities Act (other than the payment by the Company of expenses incurred or paid by a director or officer of the Company
in the successful defense of any action, suit or proceeding) is asserted in connection with such securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a
court of competent jurisdiction the question of whether or not such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. Indemnitee further agrees that such
submission to a court of competent jurisdiction shall not be a breach of this Indemnification Agreement.

18.  **<u>Binding Effect</u>** . This Indemnification Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors; assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company;
spouses; heirs; executors and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the
business and/or assets of the Company, by written agreement in form and substances satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place

19.  **<u>Severability</u>** . The provisions of this Indemnification Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or sentence) is held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable in any respect, and the validity and
enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired and shall remain enforceable to the full extent permitted by law.

20.  **<u>Governing Law</u>** . This Indemnification Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Florida applicable to contracts made and to be performed in such state without giving effect to the principles of conflicts of laws.

------

21.  **<u>Counterparts</u>** . This Indemnification Agreement may be executed in two or more fully or partially
executed counterparts each of which shall be deemed an original binding and the signer thereof against the other signing parties, but all counterparts together shall constitute one and the same instrument. Executed signature pages may be removed
from counterpart agreements and attached to one or more fully executed copies of this Agreement.

22.  **<u>Notice</u>** . Indemnitee shall, as a condition precedent to his right to be indemnified under this
Indemnification Agreement, give to the Company notice in writing as soon as practicable of any claim made against him for which indemnity will or could be sought under this Indemnification Agreement. Notice to the Company shall be directed to the
Company at its headquarters located at 5300 West Cypress Street, Suite 100, Tampa, Florida 33607, Attention: General Counsel (or such other address as the Company shall designate in writing to Indemnitee). Notice shall be deemed received three days
after the date of postmark if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require within Indemnitee's power.

23.  **<u>Duration</u>** . All agreements and obligations of the Company contained herein shall continue during
the period that Indemnitee is a director or officer of the Company (or is serving at the request of the Company as a director, officer, employee, member, trustee or agent of another entity) and shall continue thereafter (i) so long as
Indemnitee may be subject to any possible Claim relating to an Indemnifiable Event (including any rights of appeal thereto) and (ii) throughout the pendency of any proceeding (including any rights of appeal thereto) commenced by Indemnitee to
enforce or interpret his or her rights under this Agreement, even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.

*[Remainder of this page intentionally left blank; signatures to follow]* 

------

**IN WITNESS WHEREOF**, the parties hereto have executed this Indemnification Agreement as of the date first above written.

---

| | |
|:---|:---|
| Attest: | **EXZEO GROUP, INC.** |
|  | By: |
|  | **"INDEMNITEE"** |

---

## Exhibit 10.2

**Exhibit 10.2** 

AMENDED AND RESTATED MANAGING GENERAL AGENCY AGREEMENT

This Amended and Restated Managing General Agency Agreement (the "Agreement") is made and entered into as of November 5, 2020 (the "Effective Date"), by and between Typtap Management Company, a Florida corporation (the "MGA"), and Typtap Insurance Company, a Florida-domestic property and casualty insurance company (the "Company").

WHEREAS, the Company and MGA previously entered into a Managing General Agency Agreement, dated January 4, 2016, pursuant to which the Company appointed the MGA to act as its exclusive managing general agent with respect to insurance policies issued by the Company in the state of Florida; and

WHEREAS, the Company is authorized to write or has applied for authority to write insurance policies (each a "Policy" and collectively the "Policies") providing the coverages set forth in Schedule I to this Agreement (the "Authorized Coverages") in each of the jurisdictions identified in Schedule I to this Agreement (each, an "Authorized Territory"); and

WHEREAS, the Company desires MGA to act as its exclusive managing general agent with respect to the Policies, including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth, as and when the Company and the MGA become licensed in each Authorized Territory identified in Schedule I to this Agreement; and

WHEREAS, MGA desires to produce, administer and manage the Policies, adjust and pay claims in connection with the Policies, negotiate reinsurance and provide other services in connection with such Policies including, but not limited to, marketing, information services, product and underwriting development and management, and catastrophe risk management on behalf of the Company; and

WHEREAS, the Company and the MGA agree that this Agreement shall supersede and replace the existing Managing General Agency Agreement, dated January 4, 2016, and shall apply to all Policies in force as of the Effective Date;

NOW, THEREFORE, in consideration of the promises and the mutual covenants hereinafter contained, the receipt and sufficiency of which are acknowledged by the parties, the Company and the MGA agree as follows:

ARTICLE I—GENERAL PRINCIPLES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In accordance with all applicable laws and regulations of each Authorized Territory the Company appoints MGA for the purpose of producing and administering Policies for the Authorized Coverages in each Authorized Territory set forth in Schedule I. MGA agrees to produce the Policies in each Authorized Territory in accordance with the limits of liability set forth in Schedule I hereto and the Company's established and approved underwriting requirements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Company, relying upon the expertise of MGA, grants authority to MGA hereunder solely with respect to the Policies. Nonetheless, the Company being at risk and having ultimate responsibility and authority for the Policies issued by MGA, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Polices and to the general welfare of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Consistent with the intention of the parties to produce an operating profit for the Company, MGA shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. The Company, relying upon the expertise of MGA, grants authority to MGA to solicit and negotiate reinsurance with respect to the programs authorized by the Company. Nonetheless, the Company being at risk and having ultimate responsibility for all reinsurance contracts issued, will have the ultimate responsibility and discretion with respect to the approval and contracting for all reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The term of this Agreement shall commence as of the Effective Date of this Agreement and shall continue for a period of three years thereafter unless sooner terminated pursuant to the terms of this Agreement. Upon expiration of the initial three-year term of this Agreement, the Agreement shall automatically renew for additional periods of one year unless either party provides written notice to the other at least ninety days prior to the expiration of the initial three year term or any subsequent annual renewal thereof.

ARTICLE II—UNDERWRITING AUTHORITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Agents. The Company hereby grants to MGA authority to accept applications to issue the Policies received through appointed licensed insurance agents ("Producing Agents") and agents authorized as "Brokering Agents" in accordance with all applicable laws and regulations of each Authorized Territory. MGA may not authorize or facilitate the appointment of any insurance broker or agent, or any other entity, to issue Policies on behalf of the Company without the prior written consent of the Company. The MGA may not appoint a sub-managing general agent for the business of the Company. The MGA may not permit any of its sub-producers or employees to serve on its Board of Directors or the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Agent Agreements. Any and all agreements with any insurance broker, agent, Producing Agent, Brokering Agent or other entity (hereinafter collectively called the "Agent") shall be made directly between MGA and such Agent. Such agreements shall provide that with respect to any action taken or not taken by MGA in connection with the Policies or this Agreement, the Agent shall look solely to MGA for any and all expenses, costs, causes of action and damages suffered by the Agent. Nothing in this Section is intended to create a cause or claim against MGA that the Agent would not otherwise have against the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Agent Responsibility. MGA shall bear sole responsibility to oversee the placement of business through Agents. With respect to the Policies or this Agreement, MGA shall hold the Company harmless and reimburse the Company for any and all fines and expenses levied against or incurred by the Company as a result of MGA accepting business from an unlicensed Agent, or the failure of the Company, MGA, or any Brokering Agent to comply with all applicable laws and regulations regarding the exchange of business between the Company and Brokering Agents, unless such costs and expenses result solely from the Company's failure to take legally required or reasonably necessary specific actions recommended to the Company by MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Policy Services. Pursuant to the terms and provisions of this Agreement, the Company hereby grants to MGA authority to receive and accept proposals of insurance from the Effective Date of this Agreement until the termination of this Agreement (or termination of the appointment in Section 2.8) for the Authorized Coverages. Such authority shall include the binding of coverage, the issuing and endorsing of Policies in the name of the Company, and the canceling and non-renewing of such binders and contracts when the best judgment of MGA dictates. MGA shall provide for the Company a policy administration system and utilize and enter the Company's Policy data into that system in a timely manner. MGA shall provide to the Company, at no additional cost to the Company access to the policy administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Underwriting. The Company grants MGA authority to provide the Policies pursuant to the underwriting guidelines provided in writing to MGA by the Company. Such underwriting guidelines shall include, but not be limited to, guidelines pertaining to the basis of the rates to be charged, types of risks to be written, maximum limits of liability, applicable exclusions, territorial limitations, policy cancellation provisions, and maximum policy period. All underwriting guidelines that the Company provides the MGA, in writing, shall be deemed incorporated in this Agreement by reference and adoptions. The Company grants MGA authority to operate within written guidelines approved in writing by the Company, subject, however, to the professional judgment of supervisory underwriting personnel; and any Policy issued by or at the request of MGA which does not fall within such guidelines shall, at the Company's request, be promptly terminated, and MGA shall indemnify the Company from and against any liability thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. One-Year Terms. The Company grants MGA authority to issue or have issued Policies having a maximum term of one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Policy Language. The Company grants MGA authority to utilize only insurance contract wordings, endorsement wordings and rates that are approved by the Company and are properly filed and approved, to the extent necessary, by appropriate regulatory authorities of each Authorized Territory.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. MGA Appointment; Maximum Annual Net Written Premium Production. The Company appoints MGA to issue Policies on behalf of the Company in each Authorized Territory. Other than through MGA, Company agrees not to write the Authorized Coverages of business that the Company is duly licensed to write, or to appoint another managing general agent to write the Authorized Coverages of business that the Company is duly licensed to write, in any Authorized Territory during the term of this Agreement as set forth in paragraph 1.5 herein. Under no circumstances shall the MGA produce from the Authorized Coverages Gross Written Premium in excess of $750 million in any year without the express written approval of the Company for any Net Written Premium written in excess of the aforestated amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Policyholder Information. The Company shall not disclose, share, or otherwise make available to any other person, partnership, corporation, managing agent, agent, broker, independent agent or broker, underwriting manager, or other insurer information regarding the Company's policyholders who have been issued Policies pursuant to MGA's authority under this Agreement until one year after the termination of this Agreement. The foregoing limitation shall not prohibit the Company from disclosing such information to its independent accountants or auditors, insurance department examiners, or as otherwise required in the normal course of the Company's business. Company and MGA shall fully comply with the provisions of any applicable Federal laws and the laws of each Authorized Territory applicable to confidentiality and privacy of policyholder information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. Expirations. In the event of the termination of this Agreement, MGA's records and the use and control of expirations of the Company's business produced by Agents registered or appointed by the Company shall remain the joint property of the Company and MGA, subject to any rights in the Agents pursuant to the terms of any agreement between MGA and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. Premium Financing. With respect to Policies, MGA shall have the authority to enter into agreements with premium finance companies ("PFCs"), to receive notices of premium financing, to receive proceeds of premium financing, and to receive and act upon notices and requests of cancellations from PFCs. The MGA shall not delegate this authority to any Agent. Subject to the PFCs contracts with the insureds and applicable laws and regulations of each Authorized Territory, and to the extent of the contract balances due the PFCs from the insureds, the MGA shall return all unearned premium directly to the PFCs to the extent held by MGA and shall cause the Agents to return all unearned commission to the PFCs to the extent held by the Agents.

ARTICLE III—HANDLING OF FUNDS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Depository Account. MGA shall accept in a fiduciary capacity, on behalf of the Company, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. The Company shall establish and maintain a "Depository Account" in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by MGA shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by the Company. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to the Company. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. No Commingling. The MGA shall not commingle any premium or escrow trust funds with personal accounts or other funds held by MGA in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. Premiums. MGA assumes responsibilities for, and shall promptly, on no less than a monthly basis, pay the Company all premiums collected on Policies issued by or through MGA or on MGA's behalf for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. Disbursement Account. The Company will maintain and adequately fund a Disbursement Account ("Disbursement Account") in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. The Disbursement Account will be used for the payment by MGA of unearned premiums arising due to cancellation or endorsement of the Company's Policies produced by MGA. The Company and MGA shall each have signature authority over this account. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Bank Failure. MGA shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect MGA's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. Return Commissions. MGA shall refund to the Company, unearned commissions on policy cancellations, reductions in premiums or any other return premiums at the same rate of which such commissions were originally retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. Policy Fees. MGA shall comply with the provisions of Section 626.7451(11), F.S., and shall be entitled to retain as fully earned upon collection any duly authorized and collected per-policy fee pursuant to such section. The per-policy fee shall not exceed $25.00 or such other greater amount as may be authorized under Florida law. In no instance shall the aggregate of the per-policy fees for a placement of business authorized under Section 626.7451(11), Florida Statutes, when combined with any other per-policy fee charged by the Company, result in per-policy fees which exceed the aggregate amount of $25.00 or such other greater amount as may be authorized by Florida law. The per-policy fee shall be a component of the Company's rate filing. MGA may collect per-policy fees in other Authorized Territories if such fees are permitted under the laws and regulations of such Authorized Territories and subject to MGA's compliance with the Company's underwriting guidelines.

ARTICLE IV—OTHER REPORTS & REQUIREMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. Underwriting Records. MGA shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving the Company in accordance with generally accepted insurance and accounting practices. All records shall be the joint property of the MGA and the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Inspection. The Company or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect MGA's books, records and bank accounts, whether located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records. The governmental insurance regulatory authority in each Authorized Territory shall have access to all books, bank accounts, and records of the MGA in a form usable by the governmental insurance regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Written Operating Procedures. MGA shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the Company and shall be subject to the Company's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. Financial Statement. Within 150 days after the end of each fiscal year of MGA, MGA shall furnish the Company with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of MGA for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Records. MGA shall maintain permanent physical or electronic copies of all Policies and applications or correspondence related to the Policies, either as hard copies, on microfiche or archived in electronic media. All records shall be retained by the MGA according to the applicable laws and regulations of each Authorized Territory. MGA will not destroy these permanent copies without the written permission of the Company for the longer of seven years from the termination date of the Policy or the period specified by the applicable laws and regulations of each Authorized Territory regulating preservation of records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. Complaints; Company's Duty to Forward Complaints. The MGA shall maintain and make available for inspection by the Company, complaint log(s) of all written: (i) complaints and requests for assistance filed with MGA or the Company by the governmental insurance regulatory authority in each Authorized Territory, at the request of an insured, claimant, lienholder, or any other interested party to a Policy or claim thereunder; and (ii) lawsuits and arbitrations. The log(s) will include the name of the complainant, the Policy number and/or claim number, and the date the complaint was received. MGA shall maintain copies of the complaints and MGA's written response regarding resolution and remedy of said complaint. The Company shall forward to MGA, by next day delivery service, all complaints, time-demand correspondence, and subpoenas received by the Company relevant to the MGA on this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. Licenses. The Company and MGA shall maintain all licenses and regulatory approvals necessary to conduct the business covered under this Agreement. The Company and MGA will not transact insurance in any Authorized Territory unless and until the required licenses have been obtained by both parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. Cancellations. Notwithstanding the authority granted to MGA by the Company, the Company may require MGA to terminate coverage provided by any Policy so long as such termination does not violate applicable laws and regulations of the applicable Authorized Territory. If the Company exercises this right, the Company shall do so in a writing that includes the reasons for such termination and that instructs MGA to send appropriate non-renewal or cancellation notice as required by contract wording or relevant regulatory or statutory authority to terminate coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. Agent Licensing. MGA is required and agrees to be in compliance with, and MGA shall make reasonable inquiry and take all reasonable steps to ascertain that all Agents are in compliance with, all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. IRS Forms. MGA shall prepare and furnish each Agent with an IRS form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. Advertisement. MGA shall obtain the approval of the Company before issuing any advertisement, circular, pamphlet or other publication, which refers to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. Intellectual Property. The MGA will not use any trademark, servicemark, tradename, brand name, logo, insignia, symbol, copyright or similar intellectual property of the Company (collectively the "Marks") in any manner whatsoever (including, without limitation, on a Web site, stationary or business card) without the Company's prior written approval. The MGA will not use or attempt to register any trademark, servicemark, tradename, brand name, logo, insignia, symbol or indicia similar to any of the Marks. The Company hereby grants to the MGA a royalty-free, worldwide, non-exclusive, non-transferable license to use the Marks solely as approved or authorized by the Company and solely for the purpose of this Agreement. The MGA may sub-license the Marks to Agents and others solely as approved or authorized by the Company and solely for the purposes of this Agreement. The Company may confirm the accuracy and appropriateness of the MGA's use of the Marks (and the use by Agents) anytime and may demand changes to such use anytime. The MGA will promptly comply with all such demands and cause Agents to comply with such demands. This license and the authorized sub-licenses will terminate upon the expiration or termination of either this Agreement or the MGA's appointment under this Agreement. Notwithstanding anything to the contrary contained in this Agreement or in any approval or authorization (existing now or in the future), the Marks are and will remain solely and exclusively the property of the Company, in its sole discretion. Except for the limited license granted by this section, nothing in this Agreement confers or will confer upon the MGA any right, title or interest in the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. Report of Accounts. MGA shall render accounts to the Company detailing all transactions and remit all funds due under the terms of this Agreement to the Company on a monthly or more frequent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. Additional Limitations on Authority. The Company does not grant MGA authority to, and MGA shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cede, purchase, or bind any reinsurance or retrocession, including but not limited to facultative or treaty, on behalf of the Company without approval by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Commit the Company to participate in insurance or reinsurance syndicates.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Appoint any Agent or producer without assuring that such Agent is lawfully licensed to transact the type of insurance for which such Agent is appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Collect any payment from a reinsurer or commit the insurer to any claims settlement with a reinsurer without the Company's prior approval. If prior approval is given, a report must be promptly forwarded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Without the prior approval of the Company, pay or commit the Company to pay a claim over a specified amount, net of reinsurance, which exceeds 1% percent of the Company's policyholder's surplus as of December 31 of the last completed calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Jointly employ an individual who is employed with the Company.

ARTICLE V—MGA'S COMPENSATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Compensation</u>. The Company shall pay to MGA, as its sole and full compensation for all authorized business placed with the Company under this Agreement, and excluding the fees and expenses to be paid to MGA for those Claims Services provided in Article VII herein, the commission, profit sharing and policy fee set forth in Schedule II to this Agreement.

ARTICLE VI—EXPENSES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. MGA's Expenses. Except as otherwise provided in this Agreement, MGA shall pay all expenses incurred by MGA in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligations of MGA under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by MGA. The Company's prior written approval shall
be required with respect to any advertising or public relations material that contains the Company's name and logo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's general office expenses, including rent, salaries, utilities, data processing performed by MGA,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Any commissions payable to MGA's sub-producers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Company's Expenses. The Company shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; guaranty funds assessments and other assessments for or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Reimbursement by MGA. In addition to any rights granted to the Company hereunder, the Company shall be entitled to immediate reimbursement or payment from MGA for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by the Company by reason of or in connection with (i) the termination pursuant to Section 9.2 of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by MGA or any Agent; provided, however that in the case of a breach or non-performance by MGA, the Company shall have given MGA written notice of the breach or non-performance and MGA shall not have cured same within 30 days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if MGA has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the Company after the giving of such notice shall be promptly reimbursed by MGA. Without limiting the generality of the foregoing, MGA's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the Company's underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. the writing, binding or issuance of policies and risks by MGA not in accordance with the conditions set forth
in this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by the Company resulting from such breach shall be assumed by MGA. In the event the Company sustains a loss on a Policy or risk which
the MGA has written, issued or bound which is not within the scope of its authority under this Agreement and any addendum hereto, MGA shall reimburse the Company for the amount of the loss plus the expenses incurred by the Company because of the
loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Coverage. In the event that any obligation to grant or extend insurance coverage is imposed on the Company by a Court or governmental insurance regulatory authority in each Authorized Territory or any other state or jurisdiction as a result of any breach or non-performance by MGA or any Agent of its or their obligations under Policies, then and in that event, MGA shall (a) pay any fine or penalty imposed upon the Company and all Expenses incurred by the Company. MGA may seek reimbursement for such fine, penalty, or Expenses from the responsible Agent or cause such Agent to pay such fine, penalty, or Expense.

------

ARTICLE VII—CLAIMS ADMINISTRATION SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. General Authority. The Company appoints MGA for the purpose of investigating, evaluating, handling, adjusting, and settling each claim which may arise during the term of this Agreement under the Policies ("Claims Services") within the established authority for claims as set forth in Schedule III which is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Duties of MGA. In addition to, and without limiting, any duties which may be owed by MGA pursuant to applicable laws and regulations of the Authorized Territory pertaining thereto, MGA shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Provide a claims administration system and utilize and enter the Company claims data into that system as
directed by the Company in a timely manner. MGA shall provide to Company, at no cost to Company, access to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Company with the Claims
Services enumerated in Schedule III to this Agreement. The Claims Services shall use only licensed adjusters (as required by applicable laws and regulations of each Authorized Territory), and licensed private investigators (as required by applicable
laws and regulations of each Authorized Territory), or catastrophic adjusters, where applicable (as required by applicable laws and regulations of the Authorized Territory).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust and settle each claim assigned MGA within the authority established for
claims as set forth in Schedule III, which authority is subject to termination for cause or upon termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with Company to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of Company and which is directly
accessible to MGA in the implementation and performance of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the Company and MGA. The data in any electronic claims files maintained by the MGA shall be transmitted to the Company in a timely
manner as reasonably directed by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six years after the date of closure of such claim. MGA shall not destroy these copies without the written permission of the Company. MGA may, with permission from Company, use magnetic, optical, and other types of technology to store such
data. At the end of such six year period relevant to any claim, the Company shall authorize MGA to either (a) destroy the closed file or (b) return such file to Company at Company's expense. Upon an order of liquidation of the
Company, the claims files shall become the sole property of the Company or its estate once MGA has been paid for the services rendered. MGA shall have reasonable access to and the right to copy all files, books and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The MGA shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. Company shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement authority granted to the MGA may be
terminated for cause upon the Company's written notice to the MGA or upon termination of this Agreement. The Company may suspend the MGA's settlement authority during the pendency of any dispute regarding the cause for termination. Upon
termination of the MGA's authority to settle claims, the MGA shall desist from any draw on funds of the insurer and shall immediately forward to the insurer all claims files with the MGA's immediate possession and any claims received
thereafter. The MGA shall promptly transfer to the insurer any funds owed to the insurer or to any policyholder and shall transfer to the insurer any property of the insurer that is within the MGA's actual or constructive possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. MGA agrees that all claims occurring during the Term of this Agreement will be reported to the Company in a
timely manner, no later than 30 days, and will be assigned to properly licensed persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA agrees that Notice shall be sent by the MGA to the Company, at the Company's request, or as soon as
it becomes known that a claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exceeds an amount determined by the governmental insurance regulatory authority of any Authorized Territory or
exceeds the limit set by the insurer, whichever is less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Exceeds the MGA's claims settlement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Is open for more than six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Is closed by payment of an amount set by the governmental insurance regulatory authority in each Authorized
Territory or an amount set by the insurer, whichever is less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Company Discretion. MGA acknowledges and agrees that Company, as the party at risk and having ultimate responsibility for the claims to be administered by MGA, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of MGA hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Duties of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees that all claims occurring during the term of, and under, this Agreement will be reported and
assigned to MGA, unless Company otherwise notifies MGA. Company will provide all information, in its possession, relevant to particular claims assigned to MGA in order for MGA to fulfill its duties and obligations as set out in Schedule III. MGA
shall notify Company, in writing, should Company fail to provide any relevant information requested by MGA regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company shall appoint an individual with sufficient authority within Company's organization to facilitate
MGA's performance of the Claims Services enumerated in Schedule III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Company has ultimate authority and responsibility for authorizing claims payment and settlement over
MGA's authority of $25,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Audit Provisions. The Company, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to the MGA, to review and/or audit Company's claim files maintained by the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. Price and Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees to pay Claim Services fees as specified in Schedule III A through Schedule III C of this
Agreement. Schedule III A shall govern the service fees payable to MGA by Company on all business written by Company. Schedule III B shall govern the services fees payable to MGA by Company for subrogation and salvage activities. Schedule III C
shall govern the services fees payable to MGA by Company for the provision and administration of catastrophic Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services
rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Fees for Claims Services will be due and payable 15 days after the close of the month in which Claims Services
are performed in amounts pursuant to Schedules III A through III C of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA and Company will renegotiate, in good faith, the Claims Services fees in the event of statutory,
regulatory, or judicial changes that require additional activities not contemplated at the inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the
other party at least 90 days prior to the effective date of termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. Definition and Payment of "Allocated Loss Adjustment Expense." All Allocated Loss Adjustment Expenses shall be paid by the Company. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of the Company's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by Company) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation at
depositions, hearings, pretrial conferences and/or trials (in the case of legal services performed by employee-attorneys of the MGA, the expense incurred and payable by the Company will be deemed to be $5,000 per litigated claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and MGA adjusters, automobile and property appraisers, to the extent
that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (in the case of adjustment services performed by adjusters of the MGA, the expense incurred and payable by the Company will be deemed to be $440 per adjusted
claim);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where MGA determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of the Company and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by MGA at the express written request and approval of a
Company officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to MGA's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, MGA makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. Company agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. Limitation of Liability and Remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, MGA shall have a duty to act with a reasonable due care and
caution, in good faith, and in a prudent manner. MGA shall be liable to Company for any loss or damage sustained by Company as a result of, or related in whole or part to, the bad faith, negligence or other intentional or unintentional misconduct on
the part of MGA, or its officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA agrees to indemnify, defend and hold harmless Company, its officers, directors, employees, agents,
designees and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees),
suits, judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by MGA, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by MGA.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA shall have no indemnity obligation under this Agreement for any act or omission of the MGA taken or omitted
to be taken at the express direction of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of MGA under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of the Company and MGA liability insurance coverage in an amount of not less than $1,000,000 for any one event and in an amount of not less than $2,000,000 in the aggregate. Such coverages shall be in a form and with a company acceptable to
Company and proof of such coverages shall be provided to Company upon request.

ARTICLE VIII – PROFIT SHARING ARRANGEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. Not Applicable

ARTICLE IX- TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Continuing Authority. The authority of MGA to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 120 days prior written notice of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Termination By Company with Cause. This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of the Company, if any public authority cancels or
declines to renew any of the licenses of MGA necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of MGA, unless this Agreement is assigned with the express written consent of the Company, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to MGA, provided in the
event of such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of the Company upon MGA's material violation of any provision of this Agreement;
provided, however, that MGA will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of the Company for the occurrence of any failure by MGA to comply with the
provisions of Section 6.3 a. or b.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. Termination by MGA. This Agreement may be terminated at the election of and upon written notice from MGA upon the failure of the Company: (a) to remain licensed in each Authorized Territory; (b) to comply with applicable laws and regulations of each Authorized Territory; or (c) to comply with the material provisions of this Agreement; provided, however, that Company will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. Suspension and Revocation of Authority. The Company may suspend MGA's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. The Company and MGA shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. Effect of Termination. In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of MGA and the Company under this Agreement
shall be discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's records shall remain the property of MGA and left in MGA's possession, provided MGA is in
compliance with all of its obligations to the Company. Copies of such documents shall be furnished Company by MGA upon written request of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. Run-off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company shall, concurrent with its notice of termination or within 30 days of MGA's notice of
termination, notify MGA of whether the Company intends to have MGA service the Policies through their run-off, or whether it intends to manage the run-off itself. Except
as set forth in Section 7.2.h. herein, MGA's compensation in either event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off" shall mean
confirming coverage under the Polices to claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to the Company as elsewhere required by this
Agreement, paying premium to the Company and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of MGA specifically required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA shall upon demand return to the Company any Policies, forms or other supplies imprinted with the
Company's name regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to MGA by the Company, with the exception of any forms which in MGA's reasonable opinion are required to complete an orderly run-off of operations.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or MGA refuses or is unable to administer and run-off business produced under this Agreement, then in that event MGA shall immediately provide the Company with a back-up of all programs and data libraries, including
updated source code and data files, used in the production and administration of business hereunder (the "Data"). The Company agrees that it shall utilize the Data solely for the purpose of administering and running off the business
produced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA hereby grants, at no cost to the Company, a limited license to the Company to use MGA's Software in
connection with the administration and run-off of the business produced hereunder. MGA shall deliver the Software, together with the source and object code for the Software, as well as all available related
manuals, immediately upon delivery of the Data to the Company as provided in the preceding Section.

ARTICLE X—ARBITRATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability, enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreement, shall be submitted to arbitration, one arbitrator to be chosen by the Company, one by MGA, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Panel shall, unless the parties otherwise agree, shall meet in Ocala, Florida. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transact business in the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within 20 days after service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. If the respondent fails to appoint its arbitrator within such 20 day period, the claimant shall also appoint the second arbitrator within 10 days after the expiration of the 20 days for respondent to appoint its arbitrator. If the two arbitrators fail to agree upon the appointment of an umpire at the end of the 20 days following the last date of the appointment of the arbitrators, then they each shall, within 10 days thereafter, name three candidates who serve as umpire, and within 10 days thereafter each shall decline two of the candidates named by the other; within five days thereafter, a decision shall be made by drawing lots as to which of the last two candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. The respondent shall submit its statement within 20 days after receipt of the claimant's statement, and the claimant may submit a reply statement within 10 days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. Any hearing shall commence within 30 days following the selection of the umpire. The Panel shall render its decision within 30 days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9. Any suit, action, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the Circuit Court of the State of Florida, County of Marion, or in the United States District Court for the Middle District of Florida, and each of the parties hereto submits and consents to the nonexclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer in personam jurisdiction over the party so served.

ARTICLE XI—INDEMNITY AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. MGA shall indemnify the Company and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by the Company or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of MGA or any Agent, or their employees or representatives, in connection with any obligations of MGA arising out of this Agreement including, but not limited to, any action or inaction of MGA concerning the termination of Agent(s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of MGA, which is a result of acting in accordance with the written instructions of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. The Company shall indemnify MGA and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by MGA or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of the Company, or their employees or representatives, in connection with any obligations of the Company arising out of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. The indemnification provisions of this Article XI do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. All indemnity obligations herein shall survive the termination or expiration of this Agreement.

ARTICLE XII—GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Survival. Article X on Arbitration, Section 9.6 on "run-off", and all other provisions of this Agreement that are pertinent to the "run-off" and the Claims Services to be rendered under Section 7.2.h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. Independent Contractor Relationship. Nothing herein shall create the relationship of employer and employee between the Company and MGA, it being understood and agreed that MGA is an independent contractor of the Company for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. Non-Assignable. Neither Company nor MGA may assign this Agreement or any part thereof to another person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. Subcontracting. MGA may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of the Company, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. Modification. This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto which includes an effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. Non-Waiver. The failure of the Company or MGA to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. Notice. Any notice required or permitted to be given under this Agreement shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

------

---

| | |
|:---|:---|
| For MGA: | TypTap Management Company |
|  | 3001 S.E. Maricamp Road |
|  | Ocala, FL 34471 |
|  | Attn: President |
| For the Company: | TypTap Insurance Company |
|  | 3001 S.E. Maricamp Road |
|  | Ocala, FL 34471 |
|  | Attn: President |

---

Notices shall be deemed given when delivered, or three days after delivery to the courier or mailing, as above provided.

12.8. Invalidity. If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

12.9. Governing Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Florida. This Agreement shall be construed to comply with the laws and regulations of each Authorized Territory, including the state specific contract requirements set forth in Schedule IV, which are adopted and incorporated into this Agreement by reference. In the event of any conflict between the provisions of this Agreement and the laws or regulations of an Authorized Territory, this Agreement shall be construed and enforced in compliance with the applicable laws and regulations of such Authorized Territory.

12.10. Assigns. Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

12.11. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

12.12. Compensation Waivers. The MGA may waive any compensation, reimbursements, fees or other amounts due from the Company anytime, in its sole discretion, by written notice to the Company.

------

**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| TYPTAP MANAGEMENT COMPANY | TYPTAP MANAGEMENT COMPANY |  |
| BY: | /s/ Paresh Patel | Date: 11/5/2020 |
| Its: | CEO |  |
| TYPTAP INSURANCE COMPANY | TYPTAP INSURANCE COMPANY |  |
| BY: | /s/ Kevin Mitchell | Date: 11/5/2020 |
| Its: | President |  |

---

------

SCHEDULE I

AUTHORIZED COVERAGES, TERRITORY

AND LIMITS OF COVERAGE

The MGA is authorized as respects:

Coverages: The MGA is authorized for all coverages for which the Company is licensed in each Authorized Territory.

Authorized Territory: Upon each of the Company and the MGA obtaining applicable licenses and authorization, the MGA shall be authorized to represent the Company in Arkansas, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Massachusetts, Michigan, Mississippi, Montana, Nevada, New Mexico, South Carolina, South Dakota, Tennessee, Utah, West Virginia and Wisconsin.

Limits: The MGA is authorized to commit the Company to all coverages and limits as further described in the Company's Underwriting Manual as filed by the Company with its rate and form filing with each applicable governmental insurance regulatory authority in each Authorized Territory.

------

SCHEDULE II

COMPENSATION

FOR MGA SERVICES

Company and MGA agree to the following commission schedule for the MGA's services, excluding Claims Services, described in this Agreement and its Schedules with respect to Company's new and renewal business.

MGA shall retain 21.5% of the Company's Total Written Annual Premium as commission for its services, excluding Claims Services and policies assumed from Citizens Property Insurance Corporation. Such commission shall be deducted from the premiums remitted to Company by MGA and adjusted on the 15th day after the end of each month during the term of the Agreement. These commissions will be adjusted when the Company's Total Written Annual Premium is determined and identified on the Company's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III

CLAIMS SERVICES

1. SERVICES

During the term of this Agreement, MGA shall be the exclusive provider of Claims Services for all reported and assigned claims of the Company for policies of insurance written by or through Company. MGA will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company grants MGA the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by Company in addition to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through the Company by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. MGA will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by the Company subject to the provisions of Section 7.5 of this Agreement. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. MGA will provide the Company with litigation management. MGA will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by the Company. The selection and retention of legal counsel shall be the Company's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, the MGA will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. The Company shall have the ultimate authority in establishing all reserves and all component aspects thereof. MGA shall consult with Company and provide written notice to Company in a timely manner with respect to any of the following:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against MGA or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect
to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim MGA deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $25,000. MGA shall forward a copy of
such claim file to Company at its request. Company grants MGA claims settlement authority up to $25,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns,
poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. MGA will perform periodic review (at least semi-annually) at mutually agreed upon intervals of outstanding claim reserves, and recommend changes to outstanding claim reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA will order checks and vouchers from Company and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $25,000, MGA will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, the Company. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by MGA, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $25,000 or less, Company has agreed to establish, maintain and fund a separate bank account from which MGA may draw against as hereinafter set forth (the "Claim Account"). MGA shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

Company agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow MGA to carry out its obligations under this Agreement. Company shall provide to MGA such information as is necessary for MGA to draw checks on the Claim Account.

MGA AND COMPANY WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $25,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

------

MGA hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by Company. Any check prepared by MGA on the Claim Account must be signed by authorized individuals.

MGA shall promptly transmit any monies collected through salvage and subrogation to the Company, and maintain a register of all such collections in a register (the "Salvage and Subrogation Register"). The Salvage and Subrogation Register shall include, but shall not be limited to, the following information: date of receipt of funds, the claim number, the payer, and the amount of such payment.

The MGA shall have a duty of fiduciary responsibility to Company as to all money of the Company coming into the possession or control of the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. MGA will periodically review the development of the claims handling procedure with the Company to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. MGA will diligently pursue and prosecute Company's salvage and subrogation rights relating to any losses. MGA will use reasonable efforts to collect funds arising from the enforcement of such rights.

2. LOCATION OF PROVISION OF SERVICES:

As mutually agreed upon by the Company and MGA.

------

SCHEDULE III A

FEES APPLICABLE TO CLAIMS SERVICES

Company and MGA agree to the following fee schedule for the Claims Services described in this Agreement and its Schedules.

Company shall pay MGA 3.5% of the Company's Total Written Annual Premium including premiums assumed from Citizens Property Insurance Corporation or any other entity for Claims Services rendered by MGA. Such fees shall be payable on the 15th day of each month during the term of the Agreement. These fees will be adjusted when the Company' s Total Written Annual Premium is determined and identified on the Company's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 7.7. of the Agreement. The above fees do not apply to class action suits, catastrophic events or subrogation or salvage activities.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III B

SUBROGATION COMPENSATION

On a monthly basis, the Company shall pay MGA 50% of all gross subrogation and salvage amounts recovered by MGA.

------

SCHEDULE III C

FEES FOR CATASTROPHE CLAIMS SERVICES

The Company shall pay to the MGA per claim fees for the administration and management of catastrophe claims. The per claim fee will be $500 plus<br> 4% of the amount expended for indemnification of the loss. The fees will be due on the 15<sup>th</sup> day of each month based upon claims reported and amounts paid during the previous calendar month.

------

SCHEDULE IV

STATE SPECIFIC CONTRACT REQUIREMENTS

ARKANSAS

The Arkansas Department of Insurance requires a managing general agent and the insurance company that appoints the managing general agent to complete and execute Form AID-LI-MGA45 (2/16)—Managing General Agent's Contract. The form is attached as Schedule V and incorporated herein by reference.

------

SCHEDULE V

ARKANSAS Form AID-LI-MGA45 (2/16)

## Exhibit 10.3

**Exhibit 10.3** 

FIRST AMENDMENT TO

AMENDED AND RESTATED MANAGING GENERAL AGENCY AGREEMENT

This First Amendment (the "First Amendment") amends that certain Amended and Restated Managing General Agency Agreement entered into on November 5, 2020, (the "Agreement") by and between TypTap Management Company, a Florida corporation (the "MGA") and TypTap Insurance Company, a Florida-domestic property and casualty insurance company (the "Company").

WHEREAS, the Company and MGA agree to amend Schedule I — Authorized Territory and Schedule IV — State Specific Contract Requirements;

NOW, THEREFOR, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Schedule I — Authorized Territory language shall be amended and replaced by the following language:

"Authorized Territory: Upon each of the Company and the MGA obtaining applicable licenses and authorization, the MGA shall be authorized to represent the Company in Arkansas, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Iowa, Maine, Massachusetts, Michigan, Mississippi, Montana, Nevada, New Jersey, New Mexico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, West Virginia, Wisconsin and all other territories in which the Company and MGA have or obtain valid licenses, certificates of authority and/or other authorizations."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Schedule IV — State Specific Contract Requirements shall be amended by adding the following language:

"NEW JERSEY

Pursuant to New Jersey Code § 17:22C-6(g) if the contract permits the managing general agent to settle claims on behalf of the insurer the managing general agent shall comply with the requirements governing the settlement of claims set forth in subsections (9) and (10) of section 4 of P.L.1947, c.379 (C.17:29B-4), or sections 1 and 2 of P.L. 1975, c.101 (C.17B:30-13.1 and 17B:30-13.2), as applicable, and any regulations promulgated by the commissioner thereunder."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This First Amendment shall become effective as of March 1, 2021, upon execution by the parties, after having received any required approval or deemed approval from the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any capitalized terms used in this First Amendment but not otherwise defined herein shall take the meanings ascribed to them in the Agreement. Except as set forth in this First Amendment, all other provisions of the Agreement shall remain in full force and effect.

------

IN WINESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized officers as of the day and year set forth below.

---

| | |
|:---|:---|
| TYPTAP INSURANCE COMPANY | TYPTAP INSURANCE COMPANY |
| By: | /s/ Kevin A. Mitchell |
| Print: | Kevin A. Mitchell |
| Date: | 8/17/2022 |
| TYPTAP MANAGEMENT COMPANY | TYPTAP MANAGEMENT COMPANY |
| By: | /s/ Brook Baker |
| Print: | Brook Baker |
| Date: | 8/17/2022 |

---

## Exhibit 10.4

**Exhibit 10.4** 

**CLAIMS SERVICES** 

**AGREEMENT** 

THIS CLAIMS SERVICES AGREEMENT (together with all exhibits and other attachments hereto, the "Agreement") is executed on this 1<sup>st</sup> day of March, 2021 with an effective date of March 1, 2021 ("Effective Date"), by and between Griston Claim Management, Inc. ("Griston") and TypTap Management Company ("TMC")(each a "Party" and collectively the "Parties").

<u>Background Statement</u> 

TMC is the managing general agent for TypTap Insurance Company, a Florida-domestic property and casualty insurance company (the "Company"). By this Agreement, TMC desires to obtain from Griston services in insurance claims management for policies of insurance written by or through the Company and for which TMC has ultimate responsibility to the customers of its insurance business (the "Claims Services"); and Griston desires to provide the Claims Services to TMC upon the terms and conditions set forth in this Agreement. In reliance upon the foregoing background statement and in consideration for the representations, warranties and performance of the obligations contained herein, Griston and TMC mutually agree to the following terms and conditions.

<u>Terms and Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Services.</u> TMC grants Griston the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by TMC in addition to the provisions of this Agreement. During the term of this Agreement, Griston shall be the exclusive provider of Claims Services for all reported and assigned claims of TMC for policies of insurance written by or through the Company. Griston will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Griston will utilize and enter TMC claims data into a claims administration system as directed by TMC in a timely manner. Griston will provide TMC with access, at no cost to TMC, to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through TMC by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Griston will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers. The Claims Services shall use only licensed adjusters, and licensed private investigators, or catastrophic adjusters, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Griston will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Griston will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by TMC. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Griston will provide TMC with litigation management. Griston will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by TMC. The selection and retention of legal counsel shall be TMC's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, Griston will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. TMC shall have the ultimate authority in establishing all reserves and all component aspects thereof. Griston shall consult with TMC and provide written notice to TMC in a timely manner with respect to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against Griston, TMC or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim Griston deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $25,000. Griston shall forward a copy of such claim file to TMC at its request. TMC grants Griston claims settlement authority up to $25,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns, poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Griston will perform periodic review (at least semi-annually) at mutually agreed upon intervals of outstanding claim reserves, and recommend changes to outstanding claim reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Griston will order checks and vouchers from TMC and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $25,000, Griston will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, TMC or the Company. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by Griston, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $25,000 or less, TMC has agreed to establish, maintain and fund a separate bank account from which Griston may draw against as hereinafter set forth (the "Claim Account"). Griston shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by Griston and TMC. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

TMC agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow Griston to carry out its obligations under this Agreement. TMC shall provide to Griston such information as is necessary for Griston to draw checks on the Claim Account.

GRISTON AND TMC WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $25,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

Griston hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by TMC. Any check prepared by Griston on the Claim Account must be signed by authorized individuals.

Griston shall have a duty of fiduciary responsibility to TMC as to all money of TMC coming into the possession or control of Griston.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. Griston will periodically review the development of the claims handling procedure with TMC to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Griston will diligently pursue and prosecute TMC's salvage and subrogation rights relating to any losses. Griston will use reasonable efforts to collect funds arising from the enforcement of such rights.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Fees.</u> TMC agrees to pay Claim Services fees as specified in Exhibit A and Exhibit B of this Agreement. Exhibit A shall govern the service fees payable to Griston by TMC for the provision and administration of non-catastrophic Claims Services. Exhibit B shall govern the services fees payable to Griston by TMC for the provision and administration of catastrophic Claims Services. TMC may amend or replace the Exhibits at any time by delivery of written notice to Griston. In that event, the amended or replacement Exhibit will govern as to all claims received after the date of delivery of the amended or replaced Exhibit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Allocated Loss Adjustment Expenses.</u> In addition to the fees described in Section 2.1 of this Agreement, all Allocated Loss Adjustment Expenses will be paid by TMC. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of TMC or the Company's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by TMC or the Company) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation at
depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and Griston adjusters, automobile and property appraisers, to the
extent that same are incurred in the adjustment, negotiation, settlement or defense of any claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where Griston determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of TMC or the Company and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by Griston at the express written request and approval of a
TMC officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to Griston's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, Griston makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. TMC agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term and Termination</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Term.</u> The term of this Agreement will commence on the Effective Date and will expire five years thereafter (the "Term"). The Term will automatically renew for additional one-year periods upon the expiration of the initial term and each renewal term, unless terminated in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Termination by Notice.</u> TMC may terminate this Agreement upon six months written notice.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Termination for Non-Performance</u>. In the event that either Party breaches any of the terms hereof, then either Party (whether in breach or not) may terminate this Agreement upon thirty days written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Return of TMC Materials after Termination.</u> After termination or expiration of this Agreement, Griston will use reasonable efforts to assist TMC with copying TMC's policyholder information or other materials from Griston's systems prior to deletion of any such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Survival of Expiration or Termination.</u> Sections 2 (Fees), 4 (Confidentiality), 5 (Indemnity Obligations), and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Confidentiality.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Confidential Information.</u> For the purposes of this Agreement, "Confidential Information" means information about the disclosing Party's (or its Affiliates' or suppliers') business or activities that is proprietary and confidential, which will include all policyholder information, agent information, and all business, financial, technical and other information of a Party which is either marked or designated by such Party as "confidential" or "proprietary" or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential, and the terms of and performance under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Not Confidential Information.</u> Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving Party knew prior to receiving such information from the disclosing Party, or (iv) the receiving Party develops independently without use of or reference to any Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Obligations.</u> Each Party agrees (i) that it and its employees will not (a) disclose Confidential Information of the other Party to, and will prevent disclosure to, any other individual, association or legal entity or (b) use any Confidential Information disclosed to it by the other Party except as expressly permitted in this Agreement and (ii) that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Exceptions.</u> Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the Party required to so disclose Confidential Information of the other Party will use commercially reasonable efforts to minimize such disclosure and will provide written notice of such disclosure and consult with and assist the other Party, at the other Party's expense, in obtaining a protective order prior to such disclosure or (ii) on a "need-to-know" basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnity Obligations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Indemnity</u>. Each Party will indemnify, defend and hold harmless the other Party hereto and its Affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys' fees) arising from the first Party's breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such Party must notify the other Party within twelve months of the earlier of: (i) the date the first Party first became aware of the claim: or (ii) the date such Party should have become aware of the claim using reasonable due diligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Adequate Remedy.</u> The Parties agree that any breach of either of the Parties' obligations regarding confidentiality may result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a Party's obligations regarding the other Party's confidentiality, the aggrieved Party will be entitled to seek injunctive relief, in addition to any other remedies to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>General.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Relationship.</u> This Agreement is not intended to create, and will not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the Parties other than the independent contractor relationship expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Governing Law and Venue.</u> This Agreement will be governed by the laws of the State of Florida, without giving effect to applicable conflict of laws provisions. With respect to any litigation arising out of or relating to this Agreement, each Party agrees that it will be filed in and heard by the Circuit Court in and for Hillsborough County, Florida or the United States District Court for the Middle District of Florida, Tampa Division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Entire Agreement; Amendments.</u> This Agreement, including any exhibits and other attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the Parties relating to the subject matter of this Agreement, all of which are merged in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Construction</u>. This Agreement will be construed without regard to which Party was responsible for its preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words "Agreement," "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any particular provision of this contract. Whenever the word "include," "includes" or "including" is used in this Agreement, it will be deemed to be followed by the words "without limitation." The various headings contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Severability.</u> If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term will be replaced with another term consistent with the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will be deemed an original of this Agreement, and all of which together will be deemed the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <u>Assignment.</u> Griston may not assign this Agreement or transfer any of Griston's rights or obligations under this Agreement to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <u>Notice.</u> Notices required or permitted by this Agreement will be provided to the other Party in writing. Electronic mail (email) is acceptable for written notice except that the Parties must provide any written communications related to Section 5 or any legal dispute between Griston and TMC by certified mail to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <u>Force Majeure.</u> Neither Party will be responsible to the other Party for any failure or breach of this Agreement caused by an act of God; astronomical event; disease or pandemic; war, hostility, insurrection, or other widespread violence; riot or political instability; work stoppage; government action or change in applicable law; or any other circumstance outside the reasonable control of the affected Party. If any force majeure event continues for more than 30 days and the affected Party is unable to remedy the failure or breach of this Agreement caused by the force majeure event, the Party affected by the force majeure event may terminate this Agreement immediately upon written notice to the other Party.

The Parties have duly executed this Agreement by the authorized signatures below.

---

| | |
|:---|:---|
| Griston Claim Management, Inc. | Griston Claim Management, Inc. |
| By: | /s/ Mark Harmsworth |
| Name: | Mark Harmsworth |
| Title: | Chief Financial Officer |
| TypTap Management Company | TypTap Management Company |
| By: | /s/ Paresh Patel |
| Name: | Paresh Patel |
| Title: | Chief Executive Officer |

---

------

EXHIBIT A

FEES FOR NON-CATASTROPHE CLAIMS SERVICES

For non-catastrophe Claims Services described in this Agreement, TMC will pay to Griston (i) $1,200 per claim handled by Griston; and (ii) <br>$5,000 per litigated claim handled by Griston. These fees shall accrue when a claim or litigated claim is received by Griston and will be payable on the 15th day of each month during the term of the Agreement. The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 2.2 of this Agreement. The above fees do not apply to class action suits or catastrophic events.

EXHIBIT B

FEES FOR CATASTROPHE CLAIMS SERVICES

For catastrophe Claims Services described in this Agreement, TMC will pay to Griston $1,200 plus 4% of the amount expended for indemnification of the loss per catastrophe claim handled by Griston. These fees shall accrue when a catastrophe claim is received by Griston and will be payable on the 15th day of each month during the term of the Agreement.

## Exhibit 10.5

**Exhibit 10.5** 

SECOND AMENDMENT TO

AMENDED AND RESTATED MANAGING GENERAL AGENCY AGREEMENT

This Second Amendment (the "Second Amendment") amends that certain Amended and Restated Managing General Agency Agreement entered into on November 5, 2020, as amended by First Amendment effective as of March 1, 2021, (the "Agreement") by and between TypTap Management Company, a Florida corporation (the "MGA") and TypTap Insurance Company, a Florida-domestic property and casualty insurance company (the "Company").

WHEREAS, the Company and MGA agree to amend Schedule I – Authorized Territory, Schedule III C – Fees for Catastrophe Claims Services and Schedule IV – State Specific Contract Requirements;

NOW, THEREFOR, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Schedule I – Authorized Territory language shall be amended and replaced by the following language:

"Authorized Territory: Upon each of the Company and the MGA obtaining applicable licenses and authorization, the MGA shall be authorized to represent the Company in Alabama, Alaska, Arkansas, Arizona, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington West Virginia, Wyoming and all other territories in which the Company and MGA have or obtain valid licenses, certificates of authority and/or other authorizations."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Schedule III C – Fees for Catastrophe Claims Services shall be amended and replaced with the following language:

The Company shall pay to the MGA per claim fees for the administration and management of catastrophe claims. The per claim fee will be $1,200 plus 4% of the amount expended for indemnification of the loss. The fees will be due on the 15<sup>th</sup> day of each month based upon claims reported and amounts paid during the previous calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Schedule IV – State Specific Contract Requirements shall be amended by adding the following language:

------

"ALASKA

AK Stat § 21.27.620 (4)(I) if the contract permits the managing general agent to settle claims on behalf of the insurer, the contract must include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each party shall comply with unfair claims settlement statutes and regulations;

AK Stat § 21.27.620 (4)(K) the insurer shall provide a copy of the contract to the director within 30 days after entering into a contract with a managing general agent; and

AK Stat § 21.27.620 (4)(L) the insurer shall provide written notification to the director within 30 days of the termination of a contract with a managing general agent.

HAWAII

HI Rev Stat § 431:9C-103 (4) Separate records of business written by the managing general agent shall be maintained in the managing general agent's office. The insurer shall have the right to access and to copy all accounts and records of the managing general agent related to the insurer's business in a form usable by the insurer; the commissioner shall have access to all books, bank accounts, and records of the managing general agent in a form usable to the commissioner. Records shall be in an organized form according to each class of insurance and shall include the following information to the extent it is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) A record of each insurance contract procured or issued, together with the names of the insurers and insureds, the amount of premium paid or to be paid, or the basis of the premium or consideration paid or to be paid, and a statement of the subject of the insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The names of any other licensees from whom business is accepted and the names of persons to whom commissions or allowances of any kind are promised or paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) A record of each investigation or adjustment undertaken or consummated and a statement of any fee, commission, or other compensation received or to be received by an adjuster on account of each investigation or adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) A record of each bill reviewed and a statement of any fee, commission, or other compensation received or to be received by the independent bill reviewer on account of the bill reviewed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Any additional information as shall be customary or as may reasonably be required by the commissioner.

HI Rev Stat § 431:9C-103 (7) The insurer shall require the managing general agent to obtain and maintain a surety bond for the protection of the insurer. The bond amount shall be $100,000 or ten per cent of the managing general agent's total nationwide annual written premium for the insurer in the prior calendar year, whichever is greater; provided that the amount of the surety bond shall not exceed $500,000;

HI Rev Stat § 431:9C-103 (8) The insurer shall require the managing general agent to obtain and maintain an errors and omissions policy in the minimum amount of $1,000,000;

------

MARYLAND

MD INS CODE ANN § 8-208 (d) If the contract allows the managing general agent to settle claims for the insurer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the managing general agent shall give to the insurer a copy of any claim file that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) is settled in an amount of more than $500;

MD INS CODE ANN § 8-208 (d) If the contract allows the managing general agent to settle claims for the insurer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the insurer may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) terminate for cause any settlement authority granted to the managing general agent if the insurer gives the managing general agent 30 days' notice of the termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) suspend the settlement authority during a dispute about the cause for termination; and

MD INS CODE ANN § 8-209 (a) (3) take an action that would violate § 27-503 of this article if taken directly by the insurer;

MINNESOTA

MN Stat § 60H.04 (c) All funds collected for the account of an insurer must be held by the managing general agent in the name of the insurer in a fiduciary capacity in a bank which is a member of the Federal Reserve System. This account must be used for all payments on behalf of the insurer. The managing general agent may retain no more than three months estimated claims payments and allocated loss adjustment expenses. A managing general agent shall deposit only trust funds in a trust account and shall not commingle personal funds or other funds in a trust account, except that a managing general agent may deposit and maintain a sum in a trust account from personal funds, which sum shall be specifically identified and used to pay service charges or satisfy the minimum balance requirements relating to the trust account.

MN Stat § 60H.04

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The insurer may not authorize the managing general agent to establish the amount of the loss reserves.

NEBRASKA

NE Code § 44-4904: (7) The insurer shall require the managing general agent to obtain and maintain a surety bond for the protection of the insurer. The bond amount shall be at least one hundred thousand dollars or ten percent of the managing general agent's total annual written premium nationwide produced by the managing general agent for the insurer in the prior calendar year, whichever is greater, but not greater than five hundred thousand dollars;

------

NE Code § 44-4904: (8) The insurer may require the managing general agent to maintain an errors and omissions policy;

NEW HAMPSHIRE

NH Rev Stat § 402-E:3: VII. If the contract permits the MGA to settle claims on behalf of the insurer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any person who, in any manner or capacity other than purely clerical, handles, services or adjusts claims for or on behalf of an MGA shall be licensed as required by RSA 402-B.

OKLAHOMA

OK Stat § 36-1474 8. If the contract permits the managing general agent to settle claims on behalf of the insurer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. nothing in this section shall be construed to give the Insurance Commissioner authority to settle or adjust claims on behalf of the insurer;

OREGON

OR Rev Stat § 744.306 (4) In addition to the requirements of subsection (3) of this section, if the contract permits the managing general agent to settle claims on behalf of the insurer, the contract must also include at least the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A requirement that the managing general agent must send a copy of the claim file or report of claim to the insurer at its request or as soon as it becomes known to the managing general agent that the claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Is of a serious nature as predetermined by the insurer by written guidelines.

OR Rev Stat § 744.306 (3) The contract must include at least the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) If the managing general agent will calculate the loss reserves or a portion thereof, provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) That the insurer is ultimately responsible for reporting the loss reserves; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) That the insurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves calculated for losses incurred and outstanding on business produced by the managing general agent, in addition to any other required loss reserve actuarial opinion, as provided in ORS 744.313.

OR Rev Stat § 744.306 (5) The contract must provide that the insurer may not allow the managing general agent to pay or commit the insurer to pay a claim in excess of a specified amount, net of reinsurance, without approval by the insurer. The amount shall not exceed the amount established in ORS 744.308.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This Second Amendment shall become effective as of September 1, 2022 upon execution by the parties, after having received any required approval or deemed approval from the Florida Office of Insurance Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any capitalized terms used in this Second Amendment but not otherwise defined herein shall take the meanings ascribed to them in the Agreement. Except as set forth in this Second Amendment, all other provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized officers as of the day and year set forth below.

---

| | |
|:---|:---|
| TYPTAP INSURANCE COMPANY | TYPTAP INSURANCE COMPANY |
| By: | /s/ Kevin Mitchell |
| Print: | Kevin Mitchell, President |
| Date: | September 1, 2022 |
| TYPTAP MANAGEMENT COMPANY | TYPTAP MANAGEMENT COMPANY |
| By: | /s/ Brook A. Baker |
| Print: | Brook A. Baker, General Counsel |
| Date: | September 1, 2022 |

---

## Exhibit 10.6

**Exhibit 10.6** 

**POLICY ADMINISTRATION SERVICES AGREEMENT** 

BETWEEN

**Homeowners Choice Managers, Inc.** 

**and** 

**TypTap Management Company** 

This Policy Administration Services Agreement ("Agreement") is effective as of the 1<sup>st</sup> day of January, 2025 ("Effective Date") by and between TypTap Management Company d/b/a TypTap Insurance Agency ("TypTap") a Florida corporation with principal operating offices at 1000 Century Park Drive, Tampa, Florida 33607, and Homeowners Choice Managers, Inc. ("HCM") a Florida corporation with principal operating offices at 3802 Coconut Palm Drive, Tampa, Florida 33619.

**<u>BACKGROUND STATEMENT</u>**

HCM is the managing general agent for Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI"). TypTap is an insurance agency. By this Agreement, HCM intends to receive and TypTap intends to provide certain policy administration services for which HCM has ultimate responsibility to the customers of its insurance business. HCM is not seeking, and TypTap expressly does not act as, a sub-managing general agent of HCM.

In reliance upon the foregoing background statement, HCM and TypTap agree to the following terms and conditions.

**<u>ARTICLE I—TERM</u>**

1.1 The term of this Agreement shall commence on the Effective Date and will continue indefinitely until terminated pursuant to the provisions of this Agreement.

**<u>ARTICLE II—DUTIES OF TYPTAP</u>**

---

| | |
|:---|:---|
| 2.1 | TypTap will provide the Services enumerated in the attached Exhibit I. HCM will use its best efforts to provide TypTap as soon as possible the rates, filings forms, artwork, guidelines, procedures, manuals, information and specifications as may be required to perform the Services. |
| 2.2 | TypTap will maintain complete, accurate and orderly files, records and accounts of all transactions in accordance with generally accepted insurance and accounting practices. TypTap will provide HCM with a copy of all the HCM data on a monthly basis. Such data shall be made available within ten business days from the end of each calendar month during the term hereof. |
| 2.3 | TypTap will maintain electronic or paper copies of all policies and applications and correspondence related to the policies. These copies will not be destroyed without the written permission of HCM for a period of not less than five years from the termination date of such policies or the period specified by the applicable state statute regulating the preservation of records, whichever is longer unless such records are returned to HCM. HCM will have access to all accounts and records related to HCM policies, applications and correspondence. |
| 2.4 | TypTap agrees that HCM, being at risk and having ultimate responsibility for the policies to be administered by TypTap, shall at all times have ultimate discretion with respect to all matters pertaining to the policies, including the ability to suspend underwriting authority of TypTap at any time during this Agreement. |

---

------

---

| | |
|:---|:---|
| 2.5 | TypTap does not assume responsibility for notification to any excess or quota share reinsurance carrier, however reports will be provided as required by HCM under the terms of this agreement. TypTap may not bind reinsurance or retrocession on behalf of any entity. |
| 2.6 | TypTap shall at all times use qualified personnel in providing policyholder service including appropriately licensed personnel where required by the laws or the regulations of the Insurance Department of any state authorized in this Agreement. |
| 2.7 | TypTap shall maintain a refund account as designated by HCM. HCM shall be entitled to sign and access funds in these accounts without the signature of TypTap. |

---

**<u>ARTICLE III—DUTIES OF HCM</u>**

---

| | |
|:---|:---|
| 3.1 | HCM will provide agents and producers with such training as may be required for the routine conduction of business. HCM will respond with remedial training, rehabilitation and/or termination of agents or producers as may be appropriate when their failure to follow standard and/or ethical practices results in substantially higher than average servicing costs to TypTap. |
| 3.2 | HCM will provide to TypTap access to HCM's policy administration system on a 24 hours a day, seven days a week basis in order to allow TypTap to utilize and enter the policy data into that system in a timely manner. |
| 3.3 | HCM will provide TypTap with rates, filings, forms, artwork, guidelines, procedures, manuals, information and specifications as may be required to perform the services defined in Exhibit I attached hereto. This will include HCM's banking institution and account numbers, corporate and subsidiary logos, form letter text, brochures and other material needed to perform the services. |
| 3.4 | HCM will appoint a Project Manager as its primary contact for TypTap with sufficient authority to make such decisions as are required to facilitate the services to be performed. |

---

**<u>ARTICLE IV—AUDIT PROVISIONS</u>**

---

| | |
|:---|:---|
| 4.1 | TypTap shall maintain records of amounts billable to and payments made on behalf of HCM. In addition TypTap shall maintain records of the data utilized to perform the services defined in Exhibit I of the Agreement until five years following the termination date of the applicable policies or the period specified by the applicable state statute unless such records are returned to HCM. |
| 4.2 | HCM and an auditor selected by HCM shall have access to all such records within three business days for the purposes of audit and verification during normal business hours during the full term of this Agreement and during the respective periods in which TypTap is required to maintain such records. TypTap shall provide immediate business day access to its books, records and bank accounts to the insurance department of any state, which governs business serviced under this Agreement in a form required by and usable by that Department. |
| 4.3 | TypTap agrees to provide reasonable supporting documentation concerning any disputed invoice amount to HCM within 5 days after HCM provides written notification of the dispute to TypTap. |
| 4.4 | TypTap will provide HCM with access to all underwriting, billing and rating information (whether in paper or electronic format) as it shall require for the conduction of routine quality control reviews at any time during ordinary business hours and upon reasonable notice. TypTap shall cooperate with HCM or anyone authorized by HCM in conducting such audits and reviews. It is expressly understood and agreed that this right includes without limitation the right to audit Premium Refund account records and all accounting records affecting HCM programs. |
| 4.5 | If the audit or review is conducted at TypTap offices, a minimum of one (1) desktop personal computer(s), with Internet access, Word and Excel capabilities, shall be made available to the HCM representative. |

---

------

---

| | |
|:---|:---|
| 4.6 | HCM representatives shall have electronic access via the Internet at all times to all files and documents pertaining to HCM business. This access shall be password protected, but will allow properly authorized HCM representatives to conduct audits and reviews from HCM offices on the same basis as if they were on-site at TypTap offices. TypTap may not alter the password without concurrence of HCM. |
| 4.7 | Non-Performance by TypTap: |

---

a. Should TypTap fail to effectively provide the Services as described in Exhibit I or other provisions as outlined in this Agreement, HCM shall send a written notice to TypTap, which will delineate the specifics of such unsatisfactory performance. TypTap will have fifteen (15) calendar days, or other reasonable amount of time as may be mutually agreed upon by TypTap and HCM, to correct the unsatisfactory performance.

b. There will be no penalties if the unsatisfactory performance is corrected within the agreed amount of time as set forth in 4.7.a. However, if HCM determines that service has not been restored to a satisfactory level within the agreed amount of time as set forth in 4.7.a., HCM shall have the option of assessing a penalty as described in subpart c., below.

c. A penalty of 10% of the monthly fee due to TypTap will be assessed for the second 15-days of continued unsatisfactory performance, and 15% for any additional 15-day periods of unsatisfactory performance. This penalty shall continue to be deducted from the monthly payment for the period of time of such non-compliance, as determined solely by HCM.

**<u>ARTICLE V: TRADE SECRET AND PROPRIETARY RIGHTS</u>**

---

| | |
|:---|:---|
| 5.1 | Although TypTap may use computer software in the performance of the Services listed in Exhibit I, this Agreement does not grant any interest to TypTap in any policy data of HCM or HCPCI. |
| 5.2 | TypTap promises and agrees not to disclose or otherwise make available the policy data or the computer software programs performing all or part of the Service to any person other than employees of TypTap required to have normal use of them. TypTap agrees to obligate each such employee to a level of care sufficient to protect the computer software programs from unauthorized disclosure. |
| 5.3 | TypTap will not use any trademark, servicemark, tradename, brand name, logo, insignia, symbol, copyright or similar intellectual property of HCM or its affiliated company Homeowners Choice Property & Casualty Insurance Company, Inc. (collectively the "Marks") in any manner whatsoever (including on a Web site, stationery or business card) without HCM's prior written approval. TypTap will not use or attempt to register any trademark, servicemark, tradename, brand name, logo, insignia, symbol or indicia similar to any of the Marks. HCM hereby grants to TypTap a royalty-free, worldwide, non-exclusive, non-transferable, non-sublicensable license to use the Marks solely as approved or authorized by HCM and solely for the purposes of this Agreement. HCM may confirm the accuracy and appropriateness of the TypTap's use of the Marks anytime and may demand changes to such use anytime. TypTap will promptly comply with all such demands and cause TypTap's agents, representatives, employees, independent sales contractors, affiliates and other assistants promptly to comply with such demands. This license will terminate upon the expiration or termination of this Agreement. Notwithstanding anything to the contrary contained in this Agreement or in any approval or authorization (existing now or in the future), the Marks are and will remain solely and exclusively the property of HCM or its affiliated company Homeowners Choice Property & Casualty Insurance Company, Inc., each in its sole discretion. Except for the limited license granted by this section, nothing in this Agreement confers or will confer upon TypTap any right, title or interest in the Marks. TypTap will not by virtue of this Agreement or any activities under this Agreement acquire any right, title, interest or license in the Marks or any goodwill or other intellectual property of HCM or its affiliated company Homeowners Choice Property & Casualty Insurance Company, Inc. |

---

------

**<u>ARTICLE VI—CONFIDENTIALITY</u>**

---

| | |
|:---|:---|

| 6.2 | Such property to which paragraph 6.1 above refers is considered the "Intellectual Property" of HCM, and shall not be disclosed by TypTap, its representatives, agents and vendors, to any other party or otherwise used in any manner without the expressed written consent of HCM, and may only be used in performing the services called for in this Agreement, whether such information is considered "public information" or not. |
| 6.3 | TypTap shall at all times conduct business in accordance with the Gramm-Leach-Bliley Privacy Act. |
| 6.4 | The provisions of Article VI shall expire twenty-four (24) months after all HCM business has ceased to be processed by TypTap. |

---

**<u>ARTICLE VII—TERMINATION PROVISIONS</u>**

---

| | |
|:---|:---|
| 7.1 | Either party may terminate this Agreement by providing the other party at least 180 days prior notice of termination. If necessary to facilitate transfer to another servicing firm, the contract may upon mutual agreement of the parties be continued under current terms for up to 180 days after the termination of this Agreement. |
| 7.2 | Either party may terminate this Agreement upon breach by the other party of any one or more of the terms and conditions of this Agreement provided that the party in breach is notified in writing by the other party of the breach and the breach is not cured or a satisfactory resolution agreed upon in writing within 30 days of such written notification, or if such breach is non-monetary and is of such a nature that it cannot reasonably be cured within such notice period, if the breaching party has not within such time commenced to cure same and does not diligently continue to and actually cure same within a reasonable period thereafter. |
| 7.3 | In the event either party makes a general assignment for the benefit of creditors or files a voluntary petition in bankruptcy or petitions for reorganization or arrangement under the bankruptcy laws or if a petition in bankruptcy is filed against either party and remains undismissed for a period of thirty (30) days, or if a receiver or trustee is appointed for all or any part of the property and assets of either party the other party may terminate the Agreement immediately or either party has a judgment rendered against it and said judgment is recorded and not paid within 90 days. |
| 7.4 | Rights Upon Termination of this Agreement: |

---

a. The obligations of TypTap and HCM up to the date of termination shall be discharged promptly.

b. TypTap shall promptly return to HCM any policies, forms or supplies imprinted with the name or logo of HCM or Homeowners Choice Property & Casualty Insurance Company, Inc. regardless of who incurred the cost for same.

c. TypTap shall upon request promptly provide HCM without charge, with an electronic copy of all data files (the "Data") in a format acceptable to HCM.

d. Any and all "Intellectual Property" of HCM will be returned or, at the election of HCM, destroyed with no retention of copies within the TypTap organization other than required by federal state or local law or regulation.

e. TypTap shall continue to service until expiration of those policies for which it has received a payment under this agreement, or until such time before the expiration date of said policies, that HCM releases TypTap from obligations under this clause.

------

**<u>ARTICLE VIII—LIMITATIONS OF LIABILITY AND REMEDIES</u>**

---

| | |
|:---|:---|
| 8.1 | If data is processed in error due to an error or defects in the services provided by TypTap, then upon TypTap receiving notice of such error or defect, TypTap shall reprocess such data without charge to HCM. This provision includes errors to single or multiple policies affected by such errors. |
| 8.2 | TypTap shall indemnify, protect, defend and hold HCM, its officers, directors, shareholders and employees harmless from and against any and all losses, damages, liabilities, fines, settlements, penalties and judgments (including reasonable costs and attorney's fees) (herein "Damages") arising out of or resulting from the negligent, willful or intentional acts of TypTap performed in connection with this Agreement or arising from a breach of this Agreement by TypTap. |
| 8.3 | HCM shall indemnify, protect, defend and hold TypTap, its officers, directors, shareholders and employees harmless from and against any and all losses, damages, liabilities, fines, settlements, penalties and judgments (including reasonable costs and attorney's fees) (herein "Damages") arising out of or resulting from the negligent, willful or intentional acts of HCM performed in connection with this Agreement or arising from a breach of this Agreement by HCM. |

---

**<u>ARTICLE IX—GENERAL</u>**

---

| | |
|:---|:---|
| 9.1 | The parties shall not be liable or deemed to be in default for any delay or failure in performance under this Agreement or interruption of services resulting, directly or indirectly, from acts of God, civil or military authority, labor disputes, shortages of suitable parts, materials, labor or transportation or any similar cause beyond the reasonable control of the parties. |
| 9.2 | All notices which are required to be given or submitted pursuant to this Agreement shall be in writing and shall be either delivered in person or sent by certified mail, return receipt requested to the address set forth herein or to such other address as the parties may from time to time designate in writing for such purposes. Notices shall be deemed to have been given at the time when personally delivered or mailed in a certified postage-paid envelope, upon the fifth day after the day such notice shall be postmarked. All notices to either party shall be addressed to the respective presidents of each firm. |
| 9.3 | The parties covenant and promise not to disclose the terms and conditions of this Agreement to any third party unless expressly agreed to by the parties or as required by law. Notwithstanding the forgoing, the parties agree that disclosure may be made to any auditors or regulators on a need-to-know only basis without prior consent. |
| 9.4 | This Agreement and any exhibits attached hereto: (a) constitute the entire Agreement between the parties and supersede and merge any and all prior discussions, representations, negotiations, correspondence, writings and other agreements and together state the entire understanding and Agreement between HCM and TypTap with respect to the Services described; (b) may be amended or modified only in a written instrument agreed to and signed by TypTap and HCM; and (c) shall be deemed to have been entered into and executed in the State of Florida and shall be construed, performed and enforced in all respects in accordance with the laws of that state. For purposes of venue, this Agreement is performable in a mutually agreed upon county in the State of Florida. |
| 9.5 | Neither party hereto shall be deemed to have waived any rights or remedies accruing to it hereunder unless such waiver is in writing and signed by such party. No delay or omission by either party hereto in exercising any right shall operate as a waiver of said right on any future occasion. All rights and remedies hereunder shall be cumulative and may be exercised singularly or concurrently. |
| 9.6 | The descriptive headings of this Agreement are intended for reference only and shall not affect the construction or interpretation of this Agreement. |
| 9.7 | Wherever the singular of any term in used herein it shall be deemed to include the plural wherever the plural thereof may be applicable. |
| 9.8 | The parties shall not assign this Agreement or any of its rights hereunder without the prior written consent of the other party except that HCM may assign this Agreement in the event of the sale of all or substantially all of its assets. |

---

------

---

| | |
|:---|:---|
| 9.9 | If any provision of this Agreement or any exhibit hereto or the application thereof to any party or circumstances shall to any extent, now or hereafter, be or become invalid or unenforceable, the remainder of this Agreement shall be valid and enforceable to the fullest extent permitted by law. |
| 9.1 | In the event of any action between HCM and TypTap seeking enforcement of any of the terms and conditions of this Agreement the prevailing party in such action shall be awarded its reasonable costs and expenses including its court costs and reasonable attorney's fees. |
| 9.11 | The parties hereto are individual contractors independent of one another, and they should not in any instance be construed as partners or joint venturers. Furthermore, the parties acknowledge that TypTap is not acting as a sub-managing general agent and that HCM is not assigning its managing general agent responsibilities to TypTap. |

---

**IN WITNESS WHEREOF**, the parties have executed this Agreement as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| Homeowners Choice Managers, Inc. | Homeowners Choice Managers, Inc. | TypTap Management Company | TypTap Management Company |
| 3802 Coconut Palm Drive, Tampa, FL 33619 | 3802 Coconut Palm Drive, Tampa, FL 33619 | 1000 Century Park Drive, Tampa, FL 33607 | 1000 Century Park Drive, Tampa, FL 33607 |
| By: | /s/ Karin Coleman | By: | /s/ Kevin Mitchell |
|  | Karin Coleman, President |  | Kevin Mitchell, President |
| Dated: January 1, 2025 | Dated: January 1, 2025 | Dated: January 1, 2025 | Dated: January 1, 2025 |

---

------

**<u>EXHIBIT I—SERVICES</u>**

TypTap Management Company (TypTap) will provide the services and policy administration (herein called "Services") defined below at the direction and guidance of Homeowners Choice Managers, Inc. (HCM) for the lines and states described in Exhibit II. Such services shall include but are not limited to the following:

1. TypTap will provide all services needed to support the acquisition and management of all HCM policies.

2. TypTap will select business within the underwriting guidelines and other authorities presented to it by HCM and will either decline, negotiate to acceptability or refer to HCM risks which fall outside this scope of authority at the direction of HCM underwriting management.

3. TypTap will support the rating programs agreed to by TypTap and HCM.

4. TypTap will issue HCM policies and policy change endorsements, process renewals, cancellations and reinstatements. TypTap will use such non-renewal or cancellation wording and format as filed by HCM and/or required by statute.

6. Invoices will be processed for premiums due or returned for all policy transactions. Refund checks will be issued for return premiums from a refund account.

7. TypTap will assist HCM with selection and onboarding of insurance agents and producers. Notwithstanding the foregoing, any and all agreements with such agents and producers will be made directly between HCM and such agent or producer.

8. Inquiries from agents, policyholders and other relevant third parties (mortgagees) will be handled by TypTap on behalf of HCM. TypTap will hire, train, license and manage such producers, customer service representatives, underwriters and other staff required to conduct the services provided by this Agreement.

9. TypTap will provide Data Processing support for policy processing to include data entry, editing, rule based system underwriting, interface with data vendors, rating, coding, statistical and management reporting, accounting and maintenance of policy records.

10. TypTap will handle mailings of all necessary policy documents to relevant parties.

11. Policy billing will be handled through direct bill to the party responsible for payment and TypTap will provide copy of policy bill to the responsible agent.

a. Provisions will be made for payment via major credit cards or direct electronic funds transfer. Installment plans as defined by HCM will be supported.

b. Renewal billing rules will prevent earned exposure on non-payment transactions.

c. Non-pay cancellations will be processed on an equity date basis.

d. TypTap shall be responsible for all billings, accounting of same, including all premiums, fees, and installments. TypTap shall indemnify HCM for any loss of collection of these revenue items if the amounts not collected are due to error on the part of TypTap, and HCM does not otherwise waive in writing the provisions of this paragraph.

12. TypTap shall deposit all funds received on behalf of HCM to accounts designated by HCM.

13. Customer Service and Loss Reporting: Phone access on a toll-free basis will be provided to agents, policyholders and other relevant parties.

**UNDERWRITING AUTHORITY** 

1. Forms

Full authority for all filed forms, endorsements and programs. No authority for man scripting endorsements without prior approval of HCM.

------

2. Limits

Full authority for all limits as published in HCM's program manuals and underwriting guidelines.

3. Policy Term

No policy may be written for a period of greater than twelve (12) months.

4. Rates

As approved by the insurance regulatory authorities in each state identified in Exhibit II.

5. Programs

All HCM program manuals and underwriting guidelines shall be strictly adhered to. Any deviation from HCM's manuals and guidelines is prohibited without prior approval of HCM.

6. Insurance Department Complaints or Inquiries

a. Copies of any formal Insurance Department Complaint or Inquiry will be sent to HCM within twenty-four (24) business hours of receipt. Where related to services defined in this Agreement, a draft response to the Complaint or Inquiry will be sent to HCM for approval within seventy-two (72) business hours of the receipt of the Complaint or Inquiry. For matters not related to services provided under this Agreement, HCM will respond to the Department of Insurance directly.

b. TypTap shall maintain a Complaint Log in the format specified by HCM.

7. Market Conduct Examinations

While HCM will have primary responsibility for Market Conduct Examinations, TypTap will assist with collection of data and coordinating Market Conduct Examinations.

------

**<u>EXHIBIT II—STATES AND LINES OF BUSINESS</u>**

This Agreement applies to business written in all jurisdictions and for all lines of business for which HCPCI and HCM are licensed (the "Authorized Territories"), and for all lines of business for which HCPCI and HCM are licensed in each Authorized Territory.

------

**<u>EXHIBIT III—PRICE AND PAYMENT</u>**

HCM agrees to pay the following applicable services/rates, payable on a monthly basis as follows:

1. To TypTap, 8.5% of HCPCI's Total Written Annual Premium as commission for its services under this Agreement as well as $25 per policy issued by TypTap on HCPCI's behalf. This commission will be refunded on a pro-rata basis for cancelled policies. No fees shall be charged for non-paid renewals. TypTap will provide HCM with a detailed invoice listing of all billed policies on a monthly basis. TypTap may waive any compensation, reimbursements, fees or other amounts due from HCM anytime, in its sole discretion, by written notice to HCM.

2. To various vendors: charges incurred by TypTap to secure underwriting information according to HCM guidelines from independent vendors including but not limited to, costs of credit reports, prior loss history reports, physical property inspections, DMV reports.

3. HCM is responsible for the costs of public information, sales support and other information and delivery to TypTap. TypTap is responsible for the costs of distribution of these products and marketing materials.

4. Service and other fees will be due and payable within 15 days after the receipt of invoice from TypTap.

5. HCM agrees that TypTap will have the right to renegotiate license fees in the event of statutory, regulatory or judicial changes that require additional activities not contemplated at the inception of this Agreement, and that the overall pricing may be renegotiated every third year of this Agreement.

6. TypTap agrees that it is NOT responsible for:

a. Premium Taxes

b. Agency Licensing Fee 

c. Agent Commissions

d. Involuntary Market Assessments

e. Costs charged by insurance departments in connection with market conduct examinations.

f. Assessments by boards and bureaus.

g. Charges incurred with banks and/or other vendors for the processing of credit card payments (credit card service charges and EFT payments), if applicable.

7. The amounts payable in this Agreement may increase or decrease as agreed to by the parties if changes in the Services mutually agreed to in writing by the parties substantially alter the servicing personnel, equipment, or software
applicable hereunder.

## Exhibit 10.7

**Exhibit 10.7** 

Certain identified information has been excluded from this exhibit pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act of 1933, as amended, because it is both not material and is the type that the registrant treats as private or confidential. Information that has been omitted is indicated with brackets.

**SOFTWARE LICENSE** 

**AND SERVICES** 

**AGREEMENT** 

THIS SOFTWARE LICENSE AND SERVICES AGREEMENT (together with all exhibits and other attachments hereto, the "Agreement") is executed on this March 1, 2021 with an effective date of March 1, 2021 ("Effective Date"), by and between Homeowners Choice Managers, Inc. ("HCM") and Exzeo USA, Inc. ("Exzeo")(each a "Party" and collectively the "Parties").

<u>Background Statement</u> 

HCM desires to obtain a license from Exzeo to certain software used in insurance policy administration and claims management (the "Licensed Software") and certain services related to the Licensed Software (the "Software Services") and Exzeo is willing to license the Licensed Software to HCM upon the terms and conditions set forth in this Agreement. In reliance upon the foregoing background statement and in consideration for the representations, warranties and performance of the obligations contained herein, HCM and Exzeo mutually agree to the following terms and conditions.

<u>Terms and Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Definitions.** When used in this Agreement, the following capitalized terms will have the respective meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>"Affiliate"</u> means any entity that directly or indirectly controls, is controlled by, or is under common control with any subject entity. "Control," for purposes of this definition, means direct or indirect ownership or control of more than 50% of the voting interests of the subject entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>"Derivative Works"</u> means a work consisting of any correction, modification, update, upgrade, enhancement, improvement, translation, adaptation, release or other change relating to the Licensed Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>"Licensed Software"</u> means the Source Code and Object Code for the software, programming, and other applications described in Exhibits A-E and all enhancements, updates, bug fixes, corrections, and new releases and versions thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <u>"Software Services"</u> means commercially reasonable efforts to maintain and operate the Licensed Software on HCM's behalf so that it performs the contemplated portion of all services listed on the applicable Exhibit(s) in a commercially reasonable manner. Software Services will include bug fixes and corrections. Software Services will also include maintenance and operation of HCM's webpage as described in Exhibit F.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <u>"Object Code"</u> means computer programs assembled or compiled, which are readable and usable by machines, but not generally readable by humans without reverse-assembly, reverse compiling, or reverse-engineering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>"Source Code"</u> will mean, with respect to the Licensed Software, the source code of such software and all related compiler command files, build scripts, scripts relating to the operation and maintenance of such application, application programming interface (API), graphical user interface (GUI), object libraries, all relevant instructions on building the object code of such application, and all documentation relating to the foregoing, such that collectively the foregoing will be sufficient to enable a person possessing reasonable skill and expertise in computer software and information technology to build, load and operate the machine-executable object code of such application, to maintain and support such application and to effectively use all functions and features of such software. All written documentation provided in support of the Source Code will be in English.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **License Grant.** In exchange for the consideration set forth in Section 3, Exzeo hereby grants HCM during the Term a non-exclusive, nontransferable, worldwide license to use the Licensed Software in connection with policy administration and claims management services performed with regards to insurance policies issued by or on behalf of HCM or its Affiliates. HCM will not have the right to and will not use the Licensed Software in connection with insurance policies issued by any third party other than HCM or its Affiliates. HCM will not have the right to transfer or license the Licensed Software to any third party, except that HCM may sub-license the Licensed software to its Affiliate(s) during a run-off period in the event that HCM's appointment as managing general agent of the Affiliate is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Consideration**. HCM will pay to Exzeo consideration described in each Exhibit to this Agreement identifying the corresponding portion of the Licensed Software.

These fees will accrue on a quarterly basis to Exzeo with each payment due 30 days after the end of the previous calendar quarter. The total Policies in Force will be calculated on a quarterly basis and HCM will provide exact information about current Policies in Force of HCPCI with the payment of the quarterly fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Ownership of Derivative Works**. To the extent HCM or its agents conceive or create Derivative Works of the Licensed Software, HCM acknowledges that such Derivative Works will be solely and exclusively owned by Exzeo. HCM will receive the same license rights in Derivative Works as conveyed with regard to Licensed Software pursuant to this Agreement. Otherwise, HCM will have no right to use or otherwise exploit such Derivative Works.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Updates and Enhancements**. During the Term and in addition to the Maintenance services, Exzeo may create enhancements, updates, and new releases and versions of the Licensed Software from time to time. Exzeo may offer these updates and enhancements to HCM as additional licenses or services, and all fees for such updates and enhancements will be negotiated as a separate agreement between the Parties upon the creation of each such update or enhancement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Exclusivity**. The license granted to HCM under this Agreement is non-exclusive, and nothing in this Agreement will prevent Exzeo from offering similar licenses to any other individuals, associations or legal entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Term and Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Term.</u> The term of this Agreement will commence on the Effective Date and will expire five years from the Effective Date ("Term"). The Term will automatically renew for additional five year periods upon the expiration of the initial term and each renewal term, unless terminated in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Termination by Notice.</u> HCM may terminate this Agreement upon six months written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Termination for Non-Performance</u>. In the event that either Party breaches any of the terms hereof, then either Party (whether in breach or not) may terminate this Agreement upon thirty days written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <u>Termination upon Change of Control.</u> Exzeo will have the right to terminate this Agreement upon ninety days written notice to HCM given at any time within three months following the occurrence of a change of control of HCM. For purposes hereof, a change of control of HCM will mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any person, entity, or group, other than an Affiliate or subsidiary of HCM or an employee benefit plan established or maintained by HCM, acquires more than 50% of the combined voting power of HCM in one transaction or in a series of related transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a sale or disposition of all or substantially all of HCM's assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) individuals who on the date hereof constitute the board of directors of HCM cease for any reason to constitute at least a majority thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. <u>Return of HCM Materials after Termination.</u> After termination or expiration of this Agreement, Exzeo will use reasonable efforts to assist HCM with copying HCM's data, content or other materials from the Licensed Software prior to deletion of any such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Survival of Expiration or Termination.</u> Sections 3 (Consideration), 9 (Confidentiality), 10 (Warranty), 12 (Indemnity Obligations), 13 (Limitation of Liability) and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Taxes.** HCM will pay any sales taxes payable with respect to payments made to Exzeo hereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Confidentiality.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confidential Information.</u> For the purposes of this Agreement, "Confidential Information" means information about the disclosing Party's (or its Affiliates' or suppliers') business or activities that is proprietary and confidential, which will include (i) all policyholder information, agent information, and all business, financial, technical and other information of a Party which is either marked or designated by such Party as "confidential" or "proprietary" or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential; (ii) the terms of and performance under this Agreement; and (iii) the Source Code and Object Code to the Licensed Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Not Confidential Information.</u> Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving Party knew prior to receiving such information from the disclosing Party, or (iv) the receiving Party develops independently without use of or reference to any Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>Obligations.</u> Each Party agrees (i) that it and its employees will not (a) disclose Confidential Information of the other Party to, and will prevent disclosure to, any other individual, association or legal entity or (b) use any Confidential Information disclosed to it by the other Party except as expressly permitted in this Agreement and (ii) that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. <u>Exceptions.</u> Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the Party required to so disclose Confidential Information of the other Party will use commercially reasonable efforts to minimize such disclosure and will provide written notice of such disclosure and consult with and assist the other Party, at the other Party's expense, in obtaining a protective order prior to such disclosure or (ii) on a "need-to-know" basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Warranty.** Each Party warrants and represents to the other Party that it has full power and authority to enter into this Agreement and to carry out its obligations hereunder. Exzeo warrants and represents to HCM that Exzeo has and will have during the Term, sufficient rights in the Licensed Software to grant HCM the rights set forth in this Agreement, including any necessary approval, consent, authorization, release, clearance or license of any third party and any release related to any rights of privacy or publicity, as may be necessary for Exzeo to enter into this Agreement. Exzeo warrants that the Licensed Software will perform the contemplated portion of all services listed on Exhibit A in a commercially reasonable manner. Exzeo warrants that the Licensed Software will not: (i) infringe on any third party's intellectual property rights; (ii) violate any law, statute, ordinance or regulation, including without limitation the laws and regulations governing export control; (iii) be defamatory or trade libelous; (iv) be pornographic or obscene; or (v) contain viruses, Trojan horses, worms, time bombs, spyware or other similar harmful or deleterious programming routines.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Warranty Disclaimer**. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 10, NEITHER PARTY MAKES, AND EACH PARTY SPECIFICALLY DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT, QUALITY OF INFORMATION, TITLE AND NON-INFRINGEMENT, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR PERFORMANCE. NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE OTHER REGARDING THE EFFECT THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY MAY HAVE UPON THE FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY OF THE OTHER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Indemnity Obligations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Indemnity</u>. Each Party will indemnify, defend and hold harmless the other Party hereto and its Affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys' fees) arising from the first Party's breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such Party must notify the other Party within twelve months of the earlier of: (i) the date the first Party first became aware of the claim: or (ii) the date such Party should have become aware of the claim using reasonable due diligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>Adequate Remedy.</u> The Parties agree that any breach of either of the Parties' obligations regarding confidentiality may result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a Party's obligations regarding the other Party's confidentiality, the aggrieved Party will be entitled to seek injunctive relief, in addition to any other remedies to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Limitation of Liability.** THE AGGREGATE LIABILITY OF EXZEO FOR ANY AND ALL LOSSES, CLAIMS, SUITS, CONTROVERSIES, BREACHES OR DAMAGES FOR ANY CAUSE WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, THOSE ARISING OUT OF OR RELATED TO THIS AGREEMENT) AND REGARDLESS OF THE FORM OF ACTION OR LEGAL THEORY, WILL BE LIMITED TO THE ACTUAL DIRECT OUT-OF-POCKET EXPENSES THAT ARE REASONABLY INCURRED BY HCM AND WILL NOT EXCEED THE AGGREGATE AMOUNTS PAID BY HCM TO EXZEO UNDER THIS AGREEMENT IN THE TWELVE MONTH PERIOD PRECEEDING HCM NOTIFYING EXZEO OF THE CLAIM. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, AND WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **General.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. <u>Relationship.</u> This Agreement is not intended to create, and will not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the Parties other than the independent contractor relationship expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. <u>Governing Law and Venue.</u> This Agreement will be governed by the laws of the State of Florida, without giving effect to applicable conflict of laws provisions. With respect to any litigation arising out of or relating to this Agreement, each Party agrees that it will be filed in and heard by the Circuit Court in and for Hillsborough County, Florida or the United States District Court for the Middle District of Florida, Tampa Division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. <u>Entire Agreement; Amendments.</u> This Agreement, including any exhibits and other attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the Parties relating to the subject matter of this Agreement, all of which are merged in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. <u>Construction</u>. This Agreement will be construed without regard to which Party was responsible for its preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words "Agreement," "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any particular provision of this contract. Whenever the word "include," "includes" or "including" is used in this Agreement, it will be deemed to be followed by the words "without limitation." The various headings contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. <u>Severability.</u> If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term will be replaced with another term consistent with the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6. <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will be deemed an original of this Agreement, and all of which together will be deemed the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7. <u>Assignment.</u> HCM may not assign this Agreement or transfer any of HCM's rights or obligations under this Agreement to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8. <u>Notice.</u> Notices required or permitted by this Agreement will be provided to the other Party in writing. Electronic mail (email) is acceptable for written notice except that the Parties must provide any written communications related to Section 12 or any legal dispute between HCM and Exzeo by certified mail to the other Party.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9. <u>Force Majeure.</u> Neither Party will be responsible to the other Party for any failure or breach of this Agreement caused by an act of God; astronomical event; disease or pandemic; war, hostility, insurrection, or other widespread violence; riot or political instability; work stoppage; government action or change in applicable law; or any other circumstance outside the reasonable control of the affected Party. If any force majeure event continues for more than 30 days and the affected Party is unable to remedy the failure or breach of this Agreement caused by the force majeure event, the Party affected by the force majeure event may terminate this Agreement immediately upon written notice to the other Party.

The Parties have duly executed this Agreement by the authorized signatures below.

---

| | |
|:---|:---|
| Homeowners Choice Managers, Inc. | Homeowners Choice Managers, Inc. |
| By: | /s/ Mark Harmsworth |
| Name: | Mark Harmsworth |
| Title: | Chief Financial Officer |
| Exzeo USA, Inc. | Exzeo USA, Inc. |
| By: | /s/ Paresh Patel |
| Name: | Paresh Patel |
| Title: | Chief Executive Officer |

---

------

**EXHIBIT A** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>SAMS SOFTWARE</u>**

The Licensed Software will include the SAMS Software, which will perform the contemplated portion of the following insurance policy administration and claims management services:

A) Policy support;

B) Reserving;

C) Revenue calculations;

D) Financial reporting;

E) Policy quoting;

F) Policy binding;

G) Issuance of policy renewals;

H) Issuance of late payment notices;

I) Issuance of cancellation notices;

J) Issuance of reinstatements;

K) Change of mortgages;

L) Addition of insureds;

M) Coverage endorsements;

N) Calculation of commissions;

O) Subrogation;

P) First notice of loss;

Q) Cash receipts;

R) Cash disbursements;

S) Management reports; and

T) Collection reports.

For use of the SAMS Software, HCM will pay to Exzeo a quarterly SAMS license fee based upon the total policies in force of Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI"), for which HCM is the managing general agent, administered using the SAMS Software, from the Effective Date until termination of this Agreement, calculated in accordance with the following schedule:

---

| | |
|:---|:---|
| License Fee | Policies Administered by SAMS |
| $125000 | 0-100000 |
| $362500 | 100001-200000 |
| $575000 | 200001-300000 |
| $762500 | 300001-400000 |
| $900000 | 400001-500000 |

---

The SAMS policy administration license fee will include an additional $100,000 for each 100,000 policies administered using the SAMS software above 500,000.

------

**EXHIBIT B** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>CASACLUE<sup>TM</sup> PROPERTY DATABASE SYSTEM</u>**

The Licensed Software will include the CasaClue<sup>TM</sup> property database system, which provides, maintains and updates a database of property information and documents for use in quoting policies, binding coverage and claims handling.

For use of the CasaClue software, HCM will pay to Exzeo a CasaClue license fee of $1 per quote generated using the CasaClue software. If a single property is quoted more than one time per calendar year, such additional quotes will be included at no cost to HCM.

**EXHIBIT C** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>ATLASVIEWER<sup>®</sup> ONLINE MAPPING AND DATA VISUALIZATION PLATFORM</u>**

The Licensed Software will include the AtlasViewer<sup>®</sup> online mapping and data visualization platform. For use of the AtlasViewer software, HCM will pay to Exzeo a quarterly AtlasViewer license fee of $12,000 per quarter.

**EXHIBIT D** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>CLAIMCOLONY<sup>TM</sup> ONLINE CLAIM MANAGEMENT SOFTWARE SUITE</u>**

The Licensed Software will include the ClaimColony<sup>TM</sup> online claim management software suite.

For use of the ClaimColony software suite, HCM will pay to Exzeo a ClaimColony license fee of $6 per claim handled by use of the ClaimColony software.

**EXHIBIT E** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>HARMONY<sup>TM</sup> ONLINE POLICY AND CLAIMS MANAGEMENT AND ADMINISTRATION SYSTEM</u>**

The Licensed Software will include the Harmony<sup>TM</sup> online policy and claims management and administration system.

------

For use of the Harmony Software, HCM will pay to Exzeo:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A quarterly Harmony policy administration license fee based upon the total policies in force of Homeowners Choice Property & Casualty Insurance Company, Inc. ("HCPCI"), for which HCM is the managing general agent, administered using the Harmony Software, from the Effective Date until termination of this Agreement, calculated in accordance with the following schedule:

---

| | |
|:---|:---|
| License Fee | Policies Administered by Harmony |
| $30000 | 0-10000 |
| $60000 | 10001-25000 |
| $100000 | 25001-50000 |
| $200000 | 50001-75000 |
| $300000 | 75001-100000 |
| $875000 | 100001-200000 |
| $1400000 | 200001-300000 |
| $1875000 | 300001-400000 |
| $2300000 | 400001-500000 |

---

The SAMS policy administration license fee will include an additional $300,000 for each 100,000 policies administered using the Harmony software above 500,000.

**EXHIBIT F** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>SOFTWARE SERVICES</u>**

Exzeo will provide the Software Services described in Section 1.4 of this Agreement, along with the following services in connection with maintaining, supporting, and developing HCM's website:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Ensuring adequate hosting for functionality of the website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Ensuring the website is in proper working condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) From time to time, updating the layout of the website;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) From time to time, updating information displayed on the website, in accordance with HCM's current
policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Managing search engine optimization (SEO) activities for the website; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Monitoring and assuring security of the website, and notifying HCM of any potential security breach or other
technical or security issue.

For the Software Services, HCM will pay to Exzeo a quarterly fee for Software Services of $30,000 per quarter.

## Exhibit 10.8

**Exhibit 10.8** 

**CATASTROPHE SOFTWARE** 

**LICENSE AND SERVICES** 

**AGREEMENT** 

THIS CATASTROPHE SOFTWARE LICENSE AND SERVICES AGREEMENT (together with all exhibits and other attachments hereto, the "Agreement") is executed on this December 28, 2022 with an effective date of September 28, 2022 ("Effective Date"), by and between Homeowners Choice Managers, Inc. ("HCM") and Exzeo USA, Inc. ("Exzeo")(each a "Party" and collectively the "Parties").

<u>Background Statement</u> 

Homeowners Choice Managers, Inc. ("HCM") is the managing general agent for Homeowners Choice Property & Casualty Insurance Company, Inc. ("Homeowners Choice"). HCM licenses software and services from Exzeo for this purpose. Due to the heightened activity surrounding catastrophe events, HCM's increased use of Exzeo's systems and the importance of Exzeo's systems to efficiently handle catastrophe claims, Exzeo will charge to HCM an enhanced catastrophe services fee for extraordinary use of the Licensed Software and the Software Services to handle and adjust Catastrophe Claims (the "Catastrophe Services") and HCM accepts the terms and conditions set forth in this Agreement for the Catastrophe Services. In reliance upon the foregoing background statement and in consideration for the representations, warranties and performance of the obligations contained herein, HCM and Exzeo mutually agree to the following terms and conditions.

<u>Terms and Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Definitions.** When used in this Agreement, the following capitalized terms will have the respective meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>"Affiliate"</u> means any entity that directly or indirectly controls, is controlled by, or is under common control with any subject entity. "Control," for purposes of this definition, means direct or indirect ownership or control of more than 50% of the voting interests of the subject entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>"Derivative Works"</u> means a work consisting of any correction, modification, update, upgrade, enhancement, improvement, translation, adaptation, release or other change relating to the Licensed Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>"Licensed Software"</u> means the Source Code and Object Code for the software, programming, and other applications described in Exhibits A-E and all enhancements, updates, bug fixes, corrections, and new releases and versions thereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. <u>"Software Services"</u> means commercially reasonable efforts to maintain and operate the Licensed Software on HCM's behalf so that it performs the contemplated portion of all services listed on the applicable Exhibit(s) in a commercially reasonable manner. Software Services will include bug fixes and corrections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. <u>"Object Code"</u> means computer programs assembled or compiled, which are readable and usable by machines, but not generally readable by humans without reverse-assembly, reverse compiling, or reverse-engineering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. <u>"Source Code"</u> will mean, with respect to the Licensed Software, the source code of such software and all related compiler command files, build scripts, scripts relating to the operation and maintenance of such application, application programming interface (API), graphical user interface (GUI), object libraries, all relevant instructions on building the object code of such application, and all documentation relating to the foregoing, such that collectively the foregoing will be sufficient to enable a person possessing reasonable skill and expertise in computer software and information technology to build, load and operate the machine-executable object code of such application, to maintain and support such application and to effectively use all functions and features of such software. All written documentation provided in support of the Source Code will be in English.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **License Grant.** In exchange for the consideration set forth in Section 3, Exzeo hereby grants HCM during the Term a non-exclusive, nontransferable, worldwide license to use the Licensed Software in connection with the Catastrophe Services performed with regards to insurance policies issued by or on behalf of HCM or its Affiliates. HCM will not have the right to and will not use the Licensed Software in connection with insurance policies issued by any third party other than HCM or its Affiliates. HCM will not have the right to transfer or license the Licensed Software to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Consideration**. As consideration for the Catastrophe Services, HCM will pay to Exzeo 6% of the amount incurred per Catastrophe Claim handled by HCM by use of the Licensed Software. For the purposes of this Agreement, a Catastrophe Claim means an insurance claim resulting from a named storm which triggers a reinsurance recovery for Homeowners Choice.

These fees will accrue on a quarterly basis to Exzeo with each payment due 30 days after the end of the previous calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Ownership of Derivative Works**. To the extent HCM or its agents conceive or create Derivative Works of the Licensed Software, HCM acknowledges that such Derivative Works will be solely and exclusively owned by Exzeo. HCM will receive the same license rights in Derivative Works as conveyed with regard to Licensed Software pursuant to this Agreement. Otherwise, HCM will have no right to use or otherwise exploit such Derivative Works.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Updates and Enhancements**. During the Term and in addition to the Maintenance services, Exzeo may create enhancements, updates, and new releases and versions of the Licensed Software from time to time. Exzeo may offer these updates and enhancements to HCM as additional licenses or services, and all fees for such updates and enhancements will be negotiated as a separate agreement between the Parties upon the creation of each such update or enhancement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Exclusivity**. The license granted to HCM under this Agreement is non-exclusive, and nothing in this Agreement will prevent Exzeo from offering similar licenses to any other individuals, associations or legal entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Term and Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Term.</u> The term of this Agreement will commence on the Effective Date and will expire five years from the Effective Date ("Term"). The Term will automatically renew for additional five year periods upon the expiration of the initial term and each renewal term, unless terminated in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Termination by Notice.</u> HCM may terminate this Agreement upon six months written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Termination for Non-Performance</u>. In the event that either Party breaches any of the terms hereof, then either Party (whether in breach or not) may terminate this Agreement upon thirty days written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <u>Termination upon Change of Control.</u> Exzeo will have the right to terminate this Agreement upon ninety days written notice to HCM given at any time within three months following the occurrence of a change of control of HCM. For purposes hereof, a change of control of HCM will mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any person, entity, or group, other than an Affiliate or subsidiary of HCM or an employee benefit plan established or maintained by HCM, acquires more than 50% of the combined voting power of HCM in one transaction or in a series of related transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a sale or disposition of all or substantially all of HCM's assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) individuals who on the date hereof constitute the board of directors of HCM cease for any reason to constitute at least a majority thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. <u>Return of HCM Materials after Termination.</u> After termination or expiration of this Agreement, Exzeo will use reasonable efforts to assist HCM with copying HCM's data, content or other materials from the Licensed Software prior to deletion of any such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Survival of Expiration or Termination.</u> Sections 3 (Consideration), 9 (Confidentiality), 10 (Warranty), 12 (Indemnity Obligations), 13 (Limitation of Liability) and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or expiration of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Taxes.** HCM will pay any sales taxes payable with respect to payments made to Exzeo hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Confidentiality.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. <u>Confidential Information.</u> For the purposes of this Agreement, "Confidential Information" means information about the disclosing Party's (or its Affiliates' or suppliers') business or activities that is proprietary and confidential, which will include (i) all policyholder information, agent information, and all business, financial, technical and other information of a Party which is either marked or designated by such Party as "confidential" or "proprietary" or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential; (ii) the terms of and performance under this Agreement; and (iii) the Source Code and Object Code to the Licensed Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. <u>Not Confidential Information.</u> Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving Party knew prior to receiving such information from the disclosing Party, or (iv) the receiving Party develops independently without use of or reference to any Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. <u>Obligations.</u> Each Party agrees (i) that it and its employees will not (a) disclose Confidential Information of the other Party to, and will prevent disclosure to, any other individual, association or legal entity or (b) use any Confidential Information disclosed to it by the other Party except as expressly permitted in this Agreement and (ii) that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. <u>Exceptions.</u> Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the Party required to so disclose Confidential Information of the other Party will use commercially reasonable efforts to minimize such disclosure and will provide written notice of such disclosure and consult with and assist the other Party, at the other Party's expense, in obtaining a protective order prior to such disclosure or (ii) on a "need-to-know" basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Warranty.** Each Party warrants and represents to the other Party that it has full power and authority to enter into this Agreement and to carry out its obligations hereunder. Exzeo warrants and represents to HCM that Exzeo has and will have during the Term, sufficient rights in the Licensed Software to grant HCM the rights set forth in this Agreement, including any necessary approval, consent, authorization, release, clearance or license of any third party and any release related to any rights of privacy or publicity, as may be necessary for Exzeo to enter into this Agreement. Exzeo warrants that the Licensed Software will perform the contemplated portion of all services listed on Exhibit A in a commercially reasonable manner. Exzeo warrants that the

------

Licensed Software will not: (i) infringe on any third party's intellectual property rights; (ii) violate any law, statute, ordinance or regulation, including without limitation the laws and regulations governing export control; (iii) be defamatory or trade libelous; (iv) be pornographic or obscene; or (v) contain viruses, Trojan horses, worms, time bombs, spyware or other similar harmful or deleterious programming routines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Warranty Disclaimer**. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 10, NEITHER PARTY MAKES, AND EACH PARTY SPECIFICALLY DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUIET ENJOYMENT, QUALITY OF INFORMATION, TITLE AND NON-INFRINGEMENT, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR PERFORMANCE. NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE OTHER REGARDING THE EFFECT THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY MAY HAVE UPON THE FOREIGN, FEDERAL, STATE OR LOCAL TAX LIABILITY OF THE OTHER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Indemnity Obligations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Indemnity</u>. Each Party will indemnify, defend and hold harmless the other Party hereto and its Affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys' fees) arising from the first Party's breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such Party must notify the other Party within twelve months of the earlier of: (i) the date the first Party first became aware of the claim: or (ii) the date such Party should have become aware of the claim using reasonable due diligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>Adequate Remedy.</u> The Parties agree that any breach of either of the Parties' obligations regarding confidentiality may result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a Party's obligations regarding the other Party's confidentiality, the aggrieved Party will be entitled to seek injunctive relief, in addition to any other remedies to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Limitation of Liability.** THE AGGREGATE LIABILITY OF EXZEO FOR ANY AND ALL LOSSES, CLAIMS, SUITS, CONTROVERSIES, BREACHES OR DAMAGES FOR ANY CAUSE WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, THOSE ARISING OUT OF OR RELATED TO THIS AGREEMENT) AND REGARDLESS OF THE FORM OF ACTION OR LEGAL THEORY, WILL BE LIMITED TO THE ACTUAL DIRECT OUT-OF-POCKET EXPENSES THAT ARE REASONABLY INCURRED BY HCM AND WILL NOT EXCEED THE AGGREGATE AMOUNTS PAID BY HCM TO EXZEO UNDER THIS AGREEMENT IN THE TWELVE MONTH PERIOD PRECEEDING HCM NOTIFYING EXZEO OF THE CLAIM. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, AND WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **General.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. <u>Relationship.</u> This Agreement is not intended to create, and will not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the Parties other than the independent contractor relationship expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. <u>Governing Law and Venue.</u> This Agreement will be governed by the laws of the State of Florida, without giving effect to applicable conflict of laws provisions. With respect to any litigation arising out of or relating to this Agreement, each Party agrees that it will be filed in and heard by the Circuit Court in and for Hillsborough County, Florida or the United States District Court for the Middle District of Florida, Tampa Division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. <u>Entire Agreement; Amendments.</u> This Agreement, including any exhibits and other attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the Parties relating to the subject matter of this Agreement, all of which are merged in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. <u>Construction</u>. This Agreement will be construed without regard to which Party was responsible for its preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words "Agreement," "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any particular provision of this contract. Whenever the word "include," "includes" or "including" is used in this Agreement, it will be deemed to be followed by the words "without limitation." The various headings contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. <u>Severability.</u> If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term will be replaced with another term consistent with the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6. <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will be deemed an original of this Agreement, and all of which together will be deemed the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7. <u>Assignment.</u> HCM may not assign this Agreement or transfer any of HCM's rights or obligations under this Agreement to any third party.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8. <u>Notice.</u> Notices required or permitted by this Agreement will be provided to the other Party in writing. Electronic mail (email) is acceptable for written notice except that the Parties must provide any written communications related to Section 12 or any legal dispute between HCM and Exzeo by certified mail to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9. <u>Force Majeure.</u> Neither Party will be responsible to the other Party for any failure or breach of this Agreement caused by an act of God; astronomical event; disease or pandemic; war, hostility, insurrection, or other widespread violence; riot or political instability; work stoppage; government action or change in applicable law; or any other circumstance outside the reasonable control of the affected Party. If any force majeure event continues for more than 30 days and the affected Party is unable to remedy the failure or breach of this Agreement caused by the force majeure event, the Party affected by the force majeure event may terminate this Agreement immediately upon written notice to the other Party.

The Parties have duly executed this Agreement by the authorized signatures below.

---

| | |
|:---|:---|
| Homeowners Choice Managers, Inc. | Homeowners Choice Managers, Inc. |
| By: | /s/ Karin Coleman |
| Name: | Karin Coleman |
| Title: | Chief Executive Officer |
| Exzeo USA, Inc. | Exzeo USA, Inc. |
| By: | /s/ Paresh Patel |
| Name: | Paresh Patel |
| Title: | Chief Executive Officer |

---

------

**EXHIBIT A** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>SAMS SOFTWARE</u>** 

The Licensed Software will include the SAMS Software, which will perform the contemplated portion of the following insurance policy administration and claims management services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy support;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserving;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial reporting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy quoting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Policy binding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of policy renewals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of late payment notices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of cancellation notices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of reinstatements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change of mortgages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Addition of insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Coverage endorsements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Calculation of commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subrogation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; First notice of loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash receipts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash disbursements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management reports; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Collection reports.

------

**EXHIBIT B** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>CASACLUE<sup>TM</sup> PROPERTY DATABASE SYSTEM</u>** 

The Licensed Software will include the CasaClue<sup>TM</sup> property database system, which provides, maintains and updates a database of property information and documents for use in quoting policies, binding coverage and claims handling.

**EXHIBIT C** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>ATLASVIEWER<sup>®</sup> ONLINE MAPPING AND DATA VISUALIZATION PLATFORM</u>**

The Licensed Software will include the AtlasViewer<sup>®</sup> online mapping and data visualization platform.

**EXHIBIT D** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>CLAIMCOLONY<sup>TM</sup> ONLINE CLAIM MANAGEMENT SOFTWARE SUITE</u>**

The Licensed Software will include the ClaimColony<sup>TM</sup> online claim management software suite.

**EXHIBIT E** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>HARMONY<sup>TM</sup> ONLINE POLICY AND CLAIMS MANAGEMENT AND</u>**

**<u>ADMINISTRATION SYSTEM</u>**

The Licensed Software will include the Harmony<sup>TM</sup> online policy and claims management and administration system.

**EXHIBIT F** 

**TO SOFTWARE LICENSE** 

**AND SERVICES AGREEMENT** 

**<u>SOFTWARE SERVICES</u>**

Exzeo will provide the Software Services described in Section 1.4 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) 9

## Exhibit 10.9

**Exhibit 10.9** 

MANAGING GENERAL AGENCY AGREEMENT

Managing General Agency Agreement (the "Agreement") is made and entered into as of November 21, 2023 (the "Effective Date"), by and between Typtap Management Company, a Florida corporation (the "MGA"), and Core Risk Managers, LLC, a Florida limited liability company (the "AIF"), for itself and as attorney-in-fact for Condo Owners Reciprocal Exchange, a Florida-domestic commercial property reciprocal insurer (the "Reciprocal")(the AIF and the Reciprocal are herein collectively referred to as the "Company").

WHEREAS, the Reciprocal is authorized to write or has applied for authority to write insurance policies (each a "Policy" and collectively the "Policies") providing the coverages set forth in Schedule I to this Agreement (the "Authorized Coverages") in each of the jurisdictions identified in Schedule I to this Agreement (each, an "Authorized Territory"); and

WHEREAS, the AIF is the designated attorney-in-fact for the Reciprocal, and is appointed to conduct the business of the Reciprocal; and

WHEREAS, the Company desires MGA to act as the exclusive managing general agent for the Company with respect to the Policies, including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth, as and when the Reciprocal, AIF and the MGA become licensed in each Authorized Territory identified in Schedule I to this Agreement; and

WHEREAS, MGA desires to produce, administer and manage the Policies, adjust and pay claims in connection with the Policies, negotiate reinsurance and provide other services in connection with such Policies including, but not limited to, marketing, information services, product and underwriting development and management, and catastrophe risk management on behalf of the Company;

NOW, THEREFORE, in consideration of the promises and the mutual covenants hereinafter contained, the receipt and sufficiency of which are acknowledged by the parties, the Company and the MGA agree as follows:

ARTICLE I—GENERAL PRINCIPLES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In accordance with all applicable laws and regulations of each Authorized Territory the Company appoints MGA for the purpose of producing and administering Policies for the Authorized Coverages in each Authorized Territory set forth in Schedule I. MGA agrees to produce the Policies in each Authorized Territory in accordance with the limits of liability set forth in Schedule I hereto and the Company's established and approved underwriting requirements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Company, relying upon the expertise of MGA, grants authority to MGA hereunder solely with respect to the Policies. Nonetheless, the Company being at risk and having ultimate responsibility and authority for the Policies issued by MGA, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Polices and to the general welfare of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Consistent with the intention of the parties to produce an operating profit for the Company, MGA shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. The Company, relying upon the expertise of MGA, grants authority to MGA to solicit and negotiate reinsurance with respect to the programs authorized by the Company. Nonetheless, the Company being at risk and having ultimate responsibility for all reinsurance contracts issued, will have the ultimate responsibility and discretion with respect to the approval and contracting for all reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The term of this Agreement shall commence as of the Effective Date of this Agreement and shall continue for a period of three years thereafter unless sooner terminated pursuant to the terms of this Agreement. Upon expiration of the initial three-year term of this Agreement, the Agreement shall automatically renew for additional periods of one year unless either party provides written notice to the other at least ninety days prior to the expiration of the initial three year term or any subsequent annual renewal thereof.

ARTICLE II—UNDERWRITING AUTHORITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Agents. The Company hereby grants to MGA authority to accept applications to issue the Policies received through appointed licensed insurance agents ("Producing Agents") and agents authorized as "Brokering Agents" in accordance with all applicable laws and regulations of each Authorized Territory. MGA may not authorize or facilitate the appointment of any insurance broker or agent, or any other entity, to issue Policies on behalf of the Company without the prior written consent of the Company. The MGA may not appoint a sub-managing general agent for the business of the Company. The MGA may not permit any of its sub-producers or employees to serve on its Board of Directors or the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Agent Agreements. Any and all agreements with any insurance broker, agent, Producing Agent, Brokering Agent or other entity (hereinafter collectively called the "Agent") shall be made directly between MGA and such Agent. Such agreements shall provide that with respect to any action taken or not taken by MGA in connection with the Policies or this Agreement, the Agent shall look solely to MGA for any and all expenses, costs, causes of action and damages suffered by the Agent. Nothing in this Section is intended to create a cause or claim against MGA that the Agent would not otherwise have against the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Agent Responsibility. MGA shall bear sole responsibility to oversee the placement of business through Agents. With respect to the Policies or this Agreement, MGA shall hold the Company harmless and reimburse the Company for any and all fines and expenses levied against or incurred by the Company as a result of MGA accepting business from an unlicensed Agent, or the failure of the Company, MGA, or any Brokering Agent to comply with all applicable laws and regulations regarding the exchange of business between the Company and Brokering Agents, unless such costs and expenses result solely from the Company's failure to take legally required or reasonably necessary specific actions recommended to the Company by MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Policy Services. Pursuant to the terms and provisions of this Agreement, the Company hereby grants to MGA authority to receive and accept proposals of insurance from the Effective Date of this Agreement until the termination of this Agreement (or termination of the appointment in Section 2.8) for the Authorized Coverages. Such authority shall include the binding of coverage, the issuing and endorsing of Policies in the name of the Company, and the canceling and non-renewing of such binders and contracts when the best judgment of MGA dictates. MGA shall provide for the Company a policy administration system and utilize and enter the Company's Policy data into that system in a timely manner. MGA shall provide to the Company, at no additional cost to the Company access to the policy administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Underwriting. The Company grants MGA authority to provide the Policies pursuant to the underwriting guidelines provided in writing to MGA by the Company. Such underwriting guidelines shall include, but not be limited to, guidelines pertaining to the basis of the rates to be charged, types of risks to be written, maximum limits of liability, applicable exclusions, territorial limitations, policy cancellation provisions, and maximum policy period. All underwriting guidelines that the Company provides the MGA, in writing, shall be deemed incorporated in this Agreement by reference and adoptions. The Company grants MGA authority to operate within written guidelines approved in writing by the Company, subject, however, to the professional judgment of supervisory underwriting personnel; and any Policy issued by or at the request of MGA which does not fall within such guidelines shall, at the Company's request, be promptly terminated, and MGA shall indemnify the Company from and against any liability thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. One-Year Terms. The Company grants MGA authority to issue or have issued Policies having a maximum term of one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Policy Language. The Company grants MGA authority to utilize only insurance contract wordings, endorsement wordings and rates that are approved by the Company and are properly filed and approved, to the extent necessary, by appropriate regulatory authorities of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. MGA Appointment; Maximum Annual Net Written Premium Production. The Company appoints MGA to issue Policies on behalf of the Company in each Authorized Territory. Other than through MGA, Company agrees not to write the Authorized Coverages of business that the Company is duly licensed to write, or to appoint another managing general agent to write the Authorized Coverages of business that the Company is duly licensed to write, in any Authorized Territory during the term of this Agreement as set forth in paragraph 1.5 herein. Under no circumstances shall the MGA produce from the Authorized Coverages Gross Written Premium in excess of $750 million in any year without the express written approval of the Company for any Net Written Premium written in excess of the aforestated amount.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Policyholder Information. The Company shall not disclose, share, or otherwise make available to any other person, partnership, corporation, managing agent, agent, broker, independent agent or broker, underwriting manager, or other insurer information regarding the Company's policyholders who have been issued Policies pursuant to MGA's authority under this Agreement until one year after the termination of this Agreement. The foregoing limitation shall not prohibit the Company from disclosing such information to its independent accountants or auditors, insurance department examiners, or as otherwise required in the normal course of the Company's business. Company and MGA shall fully comply with the provisions of any applicable Federal laws and the laws of each Authorized Territory applicable to confidentiality and privacy of policyholder information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. Expirations. In the event of the termination of this Agreement, MGA's records and the use and control of expirations of the Company's business produced by Agents registered or appointed by the Company shall remain the joint property of the Company and MGA, subject to any rights in the Agents pursuant to the terms of any agreement between MGA and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. Premium Financing. With respect to Policies, MGA shall have the authority to enter into agreements with premium finance companies ("PFCs"), to receive notices of premium financing, to receive proceeds of premium financing, and to receive and act upon notices and requests of cancellations from PFCs. The MGA shall not delegate this authority to any Agent. Subject to the PFCs contracts with the insureds and applicable laws and regulations of each Authorized Territory, and to the extent of the contract balances due the PFCs from the insureds, the MGA shall return all unearned premium directly to the PFCs to the extent held by MGA and shall cause the Agents to return all unearned commission to the PFCs to the extent held by the Agents.

ARTICLE III—HANDLING OF FUNDS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Depository Account. MGA shall accept in a fiduciary capacity, on behalf of the Company, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. The Company shall establish and maintain a "Depository Account" in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by MGA shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by the Company. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to the Company. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. No Commingling. The MGA shall not commingle any premium or escrow trust funds with personal accounts or other funds held by MGA in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. Premiums. MGA assumes responsibilities for, and shall promptly, on no less than a monthly basis, pay the Company all premiums collected on Policies issued by or through MGA or on MGA's behalf for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. Disbursement Account. The Company will maintain and adequately fund a Disbursement Account ("Disbursement Account") in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. The Disbursement Account will be used for the payment by MGA of unearned premiums arising due to cancellation or endorsement of the Company's Policies produced by MGA. The Company and MGA shall each have signature authority over this account. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Bank Failure. MGA shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect MGA's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. Return Commissions. MGA shall refund to the Company, unearned commissions on policy cancellations, reductions in premiums or any other return premiums at the same rate of which such commissions were originally retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. Policy Fees. MGA shall comply with the provisions of Section 626.7451(11), F.S., and shall be entitled to retain as fully earned upon collection any duly authorized and collected per-policy fee pursuant to such section. The per-policy fee shall not exceed $25.00 or such other greater amount as may be authorized under Florida law. In no instance shall the aggregate of the per-policy fees for a placement of business authorized under Section 626.7451(11), Florida Statutes, when combined with any other per-policy fee charged by the Company, result in per-policy fees which exceed the aggregate amount of $25.00 or such other greater amount as may be authorized by Florida law. The per-policy fee shall be a component of the Company's rate filing. MGA may collect per-policy fees in other Authorized Territories if such fees are permitted under the laws and regulations of such Authorized Territories and subject to MGA's compliance with the Company's underwriting guidelines.

ARTICLE IV—OTHER REPORTS & REQUIREMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. Underwriting Records. MGA shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving the Company in accordance with generally accepted insurance and accounting practices. All records shall be the joint property of the MGA and the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Inspection. The Company or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect MGA's books, records and bank accounts, whether located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records. The governmental insurance regulatory authority in each Authorized Territory shall have access to all books, bank accounts, and records of the MGA in a form usable by the governmental insurance regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Written Operating Procedures. MGA shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the Company and shall be subject to the Company's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. Financial Statement. Within 150 days after the end of each fiscal year of MGA, MGA shall furnish the Company with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of MGA for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Records. MGA shall maintain permanent physical or electronic copies of all Policies and applications or correspondence related to the Policies, either as hard copies, on microfiche or archived in electronic media. All records shall be retained by the MGA according to the applicable laws and regulations of each Authorized Territory. MGA will not destroy these permanent copies without the written permission of the Company for the longer of seven years from the termination date of the Policy or the period specified by the applicable laws and regulations of each Authorized Territory regulating preservation of records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. Complaints; Company's Duty to Forward Complaints. The MGA shall maintain and make available for inspection by the Company, complaint log(s) of all written: (i) complaints and requests for assistance filed with MGA or the Company by the governmental insurance regulatory authority in each Authorized Territory, at the request of an insured, claimant, lienholder, or any other interested party to a Policy or claim thereunder; and (ii) lawsuits and arbitrations. The log(s) will include the name of the complainant, the Policy number and/or claim number, and the date the complaint was received. MGA shall maintain copies of the complaints and MGA's written response regarding resolution and remedy of said complaint. The Company shall forward to MGA, by next day delivery service, all complaints, time-demand correspondence, and subpoenas received by the Company relevant to the MGA on this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. Licenses. The Company and MGA shall maintain all licenses and regulatory approvals necessary to conduct the business covered under this Agreement. The Company and MGA will not transact insurance in any Authorized Territory unless and until the required licenses have been obtained by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. Cancellations. Notwithstanding the authority granted to MGA by the Company, the Company may require MGA to terminate coverage provided by any Policy so long as such termination does not violate applicable laws and regulations of the applicable Authorized Territory. If the Company exercises this right, the Company shall do so in a writing that includes the reasons for such termination and that instructs MGA to send appropriate non-renewal or cancellation notice as required by contract wording or relevant regulatory or statutory authority to terminate coverage.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. Agent Licensing. MGA is required and agrees to be in compliance with, and MGA shall make reasonable inquiry and take all reasonable steps to ascertain that all Agents are in compliance with, all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. IRS Forms. MGA shall prepare and furnish each Agent with an IRS form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. Advertisement. MGA shall obtain the approval of the Company before issuing any advertisement, circular, pamphlet or other publication, which refers to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. Intellectual Property. The MGA will not use any trademark, servicemark, tradename, brand name, logo, insignia, symbol, copyright or similar intellectual property of the Company (collectively the "Marks") in any manner whatsoever (including, without limitation, on a Web site, stationary or business card) without the Company's prior written approval. The MGA will not use or attempt to register any trademark, servicemark, tradename, brand name, logo, insignia, symbol or indicia similar to any of the Marks. The Company hereby grants to the MGA a royalty-free, worldwide, non-exclusive, non-transferable license to use the Marks solely as approved or authorized by the Company and solely for the purpose of this Agreement. The MGA may sub-license the Marks to Agents and others solely as approved or authorized by the Company and solely for the purposes of this Agreement. The Company may confirm the accuracy and appropriateness of the MGA's use of the Marks (and the use by Agents) anytime and may demand changes to such use anytime. The MGA will promptly comply with all such demands and cause Agents to comply with such demands. This license and the authorized sub-licenses will terminate upon the expiration or termination of either this Agreement or the MGA's appointment under this Agreement. Notwithstanding anything to the contrary contained in this Agreement or in any approval or authorization (existing now or in the future), the Marks are and will remain solely and exclusively the property of the Company, in its sole discretion. Except for the limited license granted by this section, nothing in this Agreement confers or will confer upon the MGA any right, title or interest in the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. Report of Accounts. MGA shall render accounts to the Company detailing all transactions and remit all funds due under the terms of this Agreement to the Company on a monthly or more frequent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. Additional Limitations on Authority. The Company does not grant MGA authority to, and MGA shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cede, purchase, or bind any reinsurance or retrocession, including but not limited to facultative or treaty, on behalf of the Company without approval by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Commit the Company to participate in insurance or reinsurance syndicates.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Appoint any Agent or producer without assuring that such Agent is lawfully licensed to transact the type of insurance for which such Agent is appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Collect any payment from a reinsurer or commit the insurer to any claims settlement with a reinsurer without the Company's prior approval. If prior approval is given, a report must be promptly forwarded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Without the prior approval of the Company, pay or commit the Company to pay a claim over a specified amount, net of reinsurance, which exceeds 1 percent of the Company's policyholder's surplus as of December 31 of the last completed calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Jointly employ an individual who is employed with the Company.

ARTICLE V—MGA'S COMPENSATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Compensation</u>. The Company shall pay to MGA, as its sole and full compensation for all authorized business placed with the Company under this Agreement, and excluding the fees and expenses to be paid to MGA for those Claims Services provided in Article VII herein, the commission, and policy fee set forth in Schedule II to this Agreement.

ARTICLE VI—EXPENSES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. MGA's Expenses. Except as otherwise provided in this Agreement, MGA shall pay all expenses incurred by MGA in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligations of MGA under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by MGA. The Company's prior written approval shall
be required with respect to any advertising or public relations material that contains the Company's name and logo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's general office expenses, including rent, salaries, utilities, data processing performed by MGA,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Company's Expenses. The Company shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; guaranty funds assessments and other assessments for or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of the Company. For the avoidance of doubt, the MGA will not be responsible for payment of any commissions to producers of the Policies. Such commissions will be paid by the Company directly.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Reimbursement by MGA. In addition to any rights granted to the Company hereunder, the Company shall be entitled to immediate reimbursement or payment from MGA for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by the Company by reason of or in connection with (i) the termination pursuant to Section 9.2 of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by MGA or any Agent; provided, however that in the case of a breach or non-performance by MGA, the Company shall have given MGA written notice of the breach or non-performance and MGA shall not have cured same within 30 days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if MGA has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the Company after the giving of such notice shall be promptly reimbursed by MGA. Without limiting the generality of the foregoing, MGA's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the Company's underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. the writing, binding or issuance of policies and risks by MGA not in accordance with the conditions set forth
in this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by the Company resulting from such breach shall be assumed by MGA. In the event the Company sustains a loss on a Policy or risk which
the MGA has written, issued or bound which is not within the scope of its authority under this Agreement and any addendum hereto, MGA shall reimburse the Company for the amount of the loss plus the expenses incurred by the Company because of the
loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Coverage. In the event that any obligation to grant or extend insurance coverage is imposed on the Company by a Court or governmental insurance regulatory authority in each Authorized Territory or any other state or jurisdiction as a result of any breach or non-performance by MGA or any Agent of its or their obligations under Policies, then and in that event, MGA shall (a) pay any fine or penalty imposed upon the Company and all Expenses incurred by the Company. MGA may seek reimbursement for such fine, penalty, or Expenses from the responsible Agent or cause such Agent to pay such fine, penalty, or Expense.

------

ARTICLE VII—CLAIMS ADMINISTRATION SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. General Authority. The Company appoints MGA for the purpose of investigating, evaluating, handling, adjusting, and settling each claim which may arise during the term of this Agreement under the Policies ("Claims Services") within the established authority for claims as set forth in Schedule III which is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Duties of MGA. In addition to, and without limiting, any duties which may be owed by MGA pursuant to applicable laws and regulations of the Authorized Territory pertaining thereto, MGA shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Provide a claims administration system and utilize and enter the Company claims data into that system as
directed by the Company in a timely manner. MGA shall provide to Company, at no cost to Company, access to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Company with the Claims
Services enumerated in Schedule III to this Agreement. The Claims Services shall use only licensed adjusters (as required by applicable laws and regulations of each Authorized Territory), and licensed private investigators (as required by applicable
laws and regulations of each Authorized Territory), or catastrophic adjusters, where applicable (as required by applicable laws and regulations of the Authorized Territory).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust and settle each claim assigned MGA within the authority established for
claims as set forth in Schedule III, which authority is subject to termination for cause or upon termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with Company to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of Company and which is directly
accessible to MGA in the implementation and performance of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the Company and MGA. The data in any electronic claims files maintained by the MGA shall be transmitted to the Company in a timely
manner as reasonably directed by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six years after the date of closure of such claim. MGA shall not destroy these copies without the written permission of the Company. MGA may, with permission from Company, use magnetic, optical, and other types of technology to store such
data. At the end of such six year period relevant to any claim, the Company shall authorize MGA to either (a) destroy the closed file or (b) return such file to Company at Company's expense. Upon an order of liquidation of the
Company, the claims files shall become the sole property of the Company or its estate once MGA has been paid for the services rendered. MGA shall have reasonable access to and the right to copy all files, books and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The MGA shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. Company shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement authority granted to the MGA may be
terminated for cause upon the Company's written notice to the MGA or upon termination of this Agreement. The Company may suspend the MGA's settlement authority during the pendency of any dispute regarding the cause for termination. Upon
termination of the MGA's authority to settle claims, the MGA shall desist from any draw on funds of the insurer and shall immediately forward to the insurer all claims files with the MGA's immediate possession and any claims received
thereafter. The MGA shall promptly transfer to the insurer any funds owed to the insurer or to any policyholder and shall transfer to the insurer any property of the insurer that is within the MGA's actual or constructive possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. MGA agrees that all claims occurring during the Term of this Agreement will be reported to the Company in a
timely manner, no later than 30 days, and will be assigned to properly licensed persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA agrees that Notice shall be sent by the MGA to the Company, at the Company's request, or as soon as
it becomes known that a claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exceeds an amount determined by the governmental insurance regulatory authority of any Authorized Territory or
exceeds the limit set by the insurer, whichever is less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Exceeds the MGA's claims settlement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Is open for more than six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Is closed by payment of an amount set by the governmental insurance regulatory authority in each Authorized
Territory or an amount set by the insurer, whichever is less.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Company Discretion. MGA acknowledges and agrees that Company, as the party at risk and having ultimate responsibility for the claims to be administered by MGA, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of MGA hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Duties of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees that all claims occurring during the term of, and under, this Agreement will be reported and
assigned to MGA, unless Company otherwise notifies MGA. Company will provide all information, in its possession, relevant to particular claims assigned to MGA in order for MGA to fulfill its duties and obligations as set out in Schedule III. MGA
shall notify Company, in writing, should Company fail to provide any relevant information requested by MGA regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company shall appoint an individual with sufficient authority within Company's organization to facilitate
MGA's performance of the Claims Services enumerated in Schedule III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Company has ultimate authority and responsibility for authorizing claims payment and settlement over
MGA's authority of $250,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Audit Provisions. The Company, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to the MGA, to review and/or audit Company's claim files maintained by the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. Price and Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees to pay Claim Services fees as specified in Schedule III A through Schedule III C of this
Agreement. Schedule III A shall govern the service fees payable to MGA by Company on all business written by Company. Schedule III B shall govern the services fees payable to MGA by Company for subrogation and salvage activities. Schedule III C
shall govern the services fees payable to MGA by Company for the provision and administration of catastrophic Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services
rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Fees for Claims Services will be due and payable 15 days after the close of the month in which Claims Services
are performed in amounts pursuant to Schedules III A through III C of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA and Company will renegotiate, in good faith, the Claims Services fees in the event of statutory,
regulatory, or judicial changes that require additional activities not contemplated at the inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the
other party at least 90 days prior to the effective date of termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. Definition and Payment of "Allocated Loss Adjustment Expense." All Allocated Loss Adjustment Expenses shall be paid by the Company. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of the Company's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by Company) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation at
depositions, hearings, pretrial conferences and/or trials (in the case of legal services performed by employee-attorneys of the MGA, the expense incurred and payable by the Company will be deemed to be $5,000 per litigated claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and MGA adjusters, automobile and property appraisers, to the extent
that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (in the case of adjustment services performed by adjusters of the MGA, the expense incurred and payable by the Company will be deemed to be $440 per adjusted
claim);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where MGA determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of the Company and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by MGA at the express written request and approval of a
Company officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to MGA's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, MGA makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. Company agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. Limitation of Liability and Remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, MGA shall have a duty to act with a reasonable due care and
caution, in good faith, and in a prudent manner. MGA shall be liable to Company for any loss or damage sustained by Company as a result of, or related in whole or part to, the bad faith, negligence or other intentional or unintentional misconduct on
the part of MGA, or its officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA agrees to indemnify, defend and hold harmless Company, its officers, directors, employees, agents,
designees and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees),
suits, judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by MGA, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by MGA.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA shall have no indemnity obligation under this Agreement for any act or omission of the MGA taken or omitted
to be taken at the express direction of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of MGA under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of the Company and MGA liability insurance coverage in an amount of not less than $1,000,000 for any one event and in an amount of not less than $2,000,000 in the aggregate. Such coverages shall be in a form and with a company acceptable to
Company and proof of such coverages shall be provided to Company upon request.

ARTICLE VIII – ADDITIONAL SERVICES OF MGA

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Additional Services. As part of the MGA's services as provided in this Agreement, the MGA will provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accounting, controllership, finance and treasury services. For the avoidance of doubt, AIF will remain
responsible for the preparation and filing of all reports required by governmental and nongovernmental regulatory and supervisory authorities on behalf of the AIF or the Reciprocal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) corporate tax analysis. For the avoidance of doubt, AIF will remain responsible for preparation and filing of
its own taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) corporate legal services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) corporate and brand marketing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) customer relations including complaint handling;

ARTICLE IX- TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Continuing Authority. The authority of MGA to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 120 days prior written notice of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Termination By Company with Cause. This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of the Company, if any public authority cancels or
declines to renew any of the licenses of MGA necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of MGA, unless this Agreement is assigned with the express written consent of the Company, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to MGA, provided in the
event of such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of the Company upon MGA's material violation of any provision of this Agreement;
provided, however, that MGA will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of the Company for the occurrence of any failure by MGA to comply with the
provisions of Section 6.3 a. or b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. Termination by MGA. This Agreement may be terminated at the election of and upon written notice from MGA upon the failure of the Company: (a) to remain licensed in each Authorized Territory; (b) to comply with applicable laws and regulations of each Authorized Territory; or (c) to comply with the material provisions of this Agreement; provided, however, that Company will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. Suspension and Revocation of Authority. The Company may suspend MGA's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. The Company and MGA shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. Effect of Termination. In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of MGA and the Company under this Agreement
shall be discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's records shall remain the property of MGA and left in MGA's possession, provided MGA is in
compliance with all of its obligations to the Company. Copies of such documents shall be furnished Company by MGA upon written request of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. Run-off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company shall, concurrent with its notice of termination or within 30 days of MGA's notice of
termination, notify MGA of whether the Company intends to have MGA service the Policies through their run-off, or whether it intends to manage the run-off itself. Except
as set forth in Section 7.2.h. herein, MGA's compensation in either event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off" shall mean
confirming coverage under the Polices to

------

claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to the Company as elsewhere required by this Agreement, paying premium to the Company and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of MGA specifically required by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA shall upon demand return to the Company any Policies, forms or other supplies imprinted with the
Company's name regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to MGA by the Company, with the exception of any forms which in MGA's reasonable opinion are required to complete an orderly run-off of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or MGA refuses or is unable to administer and run-off business produced under this Agreement, then in that event MGA shall immediately provide the Company with a back-up of all programs and data libraries, including
updated source code and data files, used in the production and administration of business hereunder (the "Data"). The Company agrees that it shall utilize the Data solely for the purpose of administering and running off the business
produced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA hereby grants, at no cost to the Company, a limited license to the Company to use MGA's Software in
connection with the administration and run-off of the business produced hereunder. MGA shall deliver the Software, together with the source and object code for the Software, as well as all available related
manuals, immediately upon delivery of the Data to the Company as provided in the preceding Section.

ARTICLE X—ARBITRATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability, enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreement, shall be submitted to arbitration, one arbitrator to be chosen by the Company, one by MGA, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Panel shall, unless the parties otherwise agree, shall meet in Ocala, Florida. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transact business in the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within 20 days after service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. If the respondent fails to appoint its

------

arbitrator within such 20 day period, the claimant shall also appoint the second arbitrator within 10 days after the expiration of the 20 days for respondent to appoint its arbitrator. If the two arbitrators fail to agree upon the appointment of an umpire at the end of the 20 days following the last date of the appointment of the arbitrators, then they each shall, within 10 days thereafter, name three candidates who serve as umpire, and within 10 days thereafter each shall decline two of the candidates named by the other; within five days thereafter, a decision shall be made by drawing lots as to which of the last two candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. The respondent shall submit its statement within 20 days after receipt of the claimant's statement, and the claimant may submit a reply statement within 10 days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. Any hearing shall commence within 30 days following the selection of the umpire. The Panel shall render its decision within 30 days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9. Any suit, action, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the Circuit Court of the State of Florida, County of Marion, or in the United States District Court for the Middle District of Florida, and each of the parties hereto submits and consents to the nonexclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer in personam jurisdiction over the party so served.

------

ARTICLE XI—INDEMNITY AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. MGA shall indemnify the Company and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by the Company or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of MGA or any Agent, or their employees or representatives, in connection with any obligations of MGA arising out of this Agreement including, but not limited to, any action or inaction of MGA concerning the termination of Agent(s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of MGA, which is a result of acting in accordance with the written instructions of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. The Company shall indemnify MGA and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by MGA or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of the Company, or their employees or representatives, in connection with any obligations of the Company arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. The indemnification provisions of this Article XI do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. All indemnity obligations herein shall survive the termination or expiration of this Agreement.

ARTICLE XII—GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Survival. Article X on Arbitration, Section 9.6 on "run-off", and all other provisions of this Agreement that are pertinent to the "run-off" and the Claims Services to be rendered under Section 7.2.h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. Independent Contractor Relationship. Nothing herein shall create the relationship of employer and employee between the Company and MGA, it being understood and agreed that MGA is an independent contractor of the Company for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. Non-Assignable. Neither Company nor MGA may assign this Agreement or any part thereof to another person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. Subcontracting. MGA may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of the Company, which consent may not be unreasonably withheld.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. Modification. This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto which includes an effective date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. Non-Waiver. The failure of the Company or MGA to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. Notice. Any notice required or permitted to be given under this Agreement shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

---

| | |
|:---|:---|
| For MGA: | TypTap Management Company |
|  | 1000 Century Park Drive |
|  | Tampa, FL 33607 |
|  | Attn: President |
| For the Company: | Core Risk Managers, LLC |
|  | 3802 Coconut Palm Drive |
|  | Tampa, FL 33619 |
|  | Attn: President |

---

Notices shall be deemed given when delivered, or three days after delivery to the courier or mailing, as above provided.

12.8. Invalidity. If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

12.9. Governing Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Florida. This Agreement shall be construed to comply with the laws and regulations of each Authorized Territory. In the event of any conflict between the provisions of this Agreement and the laws or regulations of an Authorized Territory, this Agreement shall be construed and enforced in compliance with the applicable laws and regulations of such Authorized Territory.

12.10. Assigns. Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

12.11. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

------

12.12. Compensation Waivers. The MGA may waive any compensation, reimbursements, fees or other amounts due from the Company anytime, in its sole discretion, by written notice to the Company.

**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written.

TYPTAP MANAGEMENT COMPANY

---

| | | |
|:---|:---|:---|
| BY: | /s/ Kevin Mitchell | Date: 11/27/2023 |
| Its: President | Its: President |  |
| CORE RISK MANAGERS, LLC | CORE RISK MANAGERS, LLC |  |
| BY: | /s/ Paresh Patel | Date: 11/27/2023 |
| Its: President | Its: President |  |
| CONDO OWNERS RECIPROCAL EXCHANGE | CONDO OWNERS RECIPROCAL EXCHANGE |  |
| Core Risk Managers, LLC, its Attorney-in-Fact | Core Risk Managers, LLC, its Attorney-in-Fact | Date: 11/27/2023 |
| By: | /s/ Paresh Patel |  |
| Its: President | Its: President |  |

---

------

SCHEDULE I

AUTHORIZED COVERAGES, TERRITORY

AND LIMITS OF COVERAGE

The MGA is authorized as respects:

Coverages: The MGA is authorized for all coverages for which the Company is licensed in each Authorized Territory.

Authorized Territory: Upon each of the Company and the MGA obtaining applicable licenses and authorization, the MGA shall be authorized to represent the Company in Florida.

Limits: The MGA is authorized to commit the Company to all coverages and limits as further described in the Company's Underwriting Manual as filed by the Company with its rate and form filing with each applicable governmental insurance regulatory authority in each Authorized Territory.

------

SCHEDULE II

COMPENSATION

FOR MGA SERVICES

Company and MGA agree to the following commission schedule for the MGA's services, excluding Claims Services, described in this Agreement and its Schedules with respect to Company's new and renewal business.

MGA shall retain 8.5% of the Reciprocal's Total Written Annual Premium as commission for its services, excluding Claims Services. Such commission shall be deducted from the premiums remitted to Company by MGA and adjusted on the 15th day after the end of each month during the term of the Agreement. These commissions will be adjusted when the Reciprocal's Total Written Annual Premium is determined and identified on the Reciprocal's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III

CLAIMS SERVICES

1. SERVICES

During the term of this Agreement, MGA shall be the exclusive provider of Claims Services for all reported and assigned claims of the Company for policies of insurance written by or through Company. MGA will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company grants MGA the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by Company in addition to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through the Company by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. MGA will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by the Company subject to the provisions of Section 7.5 of this Agreement. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. MGA will provide the Company with litigation management. MGA will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by the Company. The selection and retention of legal counsel shall be the Company's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, the MGA will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. The Company shall have the ultimate authority in establishing all reserves and all component aspects thereof. MGA shall consult with Company and provide written notice to Company in a timely manner with respect to any of the following:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against MGA or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect
to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim MGA deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $250,000. MGA shall forward a copy of
such claim file to Company at its request. Company grants MGA claims settlement authority up to $250,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns,
poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA will order checks and vouchers from Company and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $250,000, MGA will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, the Company. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by MGA, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $250,000 or less, Company has agreed to establish, maintain and fund a separate bank account from which MGA may draw against as hereinafter set forth (the "Claim Account"). MGA shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

Company agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow MGA to carry out its obligations under this Agreement. Company shall provide to MGA such information as is necessary for MGA to draw checks on the Claim Account.

MGA AND COMPANY WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $250,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

MGA hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by Company. Any check prepared by MGA on the Claim Account must be signed by authorized individuals.

------

MGA shall promptly transmit any monies collected through salvage and subrogation to the Company, and maintain a register of all such collections in a register (the "Salvage and Subrogation Register"). The Salvage and Subrogation Register shall include, but shall not be limited to, the following information: date of receipt of funds, the claim number, the payer, and the amount of such payment.

The MGA shall have a duty of fiduciary responsibility to Company as to all money of the Company coming into the possession or control of the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. MGA will periodically review the development of the claims handling procedure with the Company to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. MGA will diligently pursue and prosecute Company's salvage and subrogation rights relating to any losses. MGA will use reasonable efforts to collect funds arising from the enforcement of such rights.

2. LOCATION OF PROVISION OF SERVICES:

As mutually agreed upon by the Company and MGA.

------

SCHEDULE III A

FEES APPLICABLE TO CLAIMS SERVICES

AIF and MGA agree to the following fee schedule for the Claims Services described in this Agreement and its Schedules.

AIF shall pay MGA 2.5% of the Reciprocal's Total Written Annual Premium including premiums assumed from Citizens Property Insurance Corporation or any other entity for Claims Services rendered by MGA. Such fees shall be payable on the 15th day of each month during the term of the Agreement. These fees will be adjusted when the Reciprocal' s Total Written Annual Premium is determined and identified on the Reciprocal's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 7.7. of the Agreement. The above fees do not apply to class action suits, catastrophic events or subrogation or salvage activities.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III B

SUBROGATION COMPENSATION

On a monthly basis, the AIF shall pay MGA 50% of all gross subrogation and salvage amounts recovered by MGA.

------

SCHEDULE III C

FEES FOR CATASTROPHE CLAIMS SERVICES

The AIF shall pay to the MGA per claim fees for the administration and management of catastrophe claims. The per claim fee will be $1,200 plus 10% of the amount expended for indemnification of the loss. The fees will be due on the 15<sup>th</sup> day of each month based upon claims reported and amounts paid during the previous calendar month.

## Exhibit 10.10

**Exhibit 10.10** 

**CLAIMS SERVICES** 

**AGREEMENT** 

THIS CLAIMS SERVICES AGREEMENT (together with all exhibits and other attachments hereto, the "Agreement") is executed on this November 21, 2023 with an effective date of November 21, 2023 ("Effective Date"), by and between Griston Claim Management, Inc. ("Griston") and TypTap Management Company ("TMC")(each a "Party" and collectively the "Parties").

<u>Background Statement</u> 

TMC is the managing general agency for Core Risk Managers, LLC, the attorney -in-fact for Condo Owners Reciprocal Exchange (collectively, the "Reciprocal"). By this Agreement, TMC desires to obtain from Griston services in insurance claims management for policies of insurance written by or through the Reciprocal and for which TMC has ultimate responsibility to the customers of its insurance business (the "Claims Services"); and Griston desires to provide the Claims Services to TMC upon the terms and conditions set forth in this Agreement. In reliance upon the foregoing background statement and in consideration for the representations, warranties and performance of the obligations contained herein, Griston and TMC mutually agree to the following terms and conditions.

<u>Terms and Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Services.</u> TMC grants Griston the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by TMC in addition to the provisions of this Agreement. During the term of this Agreement, Griston shall be the exclusive provider of Claims Services for all reported and assigned claims of TMC for policies of insurance written by or through the Reciprocal. Griston will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Griston will utilize and enter TMC claims data into a claims administration system as directed by TMC in a timely manner. Griston will provide TMC with access, at no cost to TMC, to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through TMC by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Griston will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers. The Claims Services shall use only licensed adjusters, and licensed private investigators, or catastrophic adjusters, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Griston will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Griston will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by TMC. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Griston will provide TMC with litigation management. Griston will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by TMC. The selection and retention of legal counsel shall be TMC's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, Griston will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. TMC shall have the ultimate authority in establishing all reserves and all component aspects thereof. Griston shall consult with TMC and provide written notice to TMC in a timely manner with respect to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against Griston, TMC or the Reciprocal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect
to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim Griston deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $25,000. Griston shall forward a copy of
such claim file to TMC at its request. TMC grants Griston claims settlement authority up to $25,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns,
poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Griston will perform periodic review (at least semi-annually) at mutually agreed upon intervals of outstanding claim reserves, and recommend changes to outstanding claim reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Griston will order checks and vouchers from TMC and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $25,000, Griston will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, TMC or the Reciprocal. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by Griston, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $25,000 or less, TMC has agreed to establish, maintain and fund a separate bank account from which Griston may draw against as hereinafter set forth (the "Claim Account"). Griston shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by Griston and TMC. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

TMC agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow Griston to carry out its obligations under this Agreement. TMC shall provide to Griston such information as is necessary for Griston to draw checks on the Claim Account.

GRISTON AND TMC WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $25,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

Griston hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by TMC. Any check prepared by Griston on the Claim Account must be signed by authorized individuals.

Griston shall have a duty of fiduciary responsibility to TMC as to all money of TMC coming into the possession or control of Griston.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. Griston will periodically review the development of the claims handling procedure with TMC to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Griston will diligently pursue and prosecute TMC's salvage and subrogation rights relating to any losses. Griston will use reasonable efforts to collect funds arising from the enforcement of such rights.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Fees.</u> TMC agrees to pay Claim Services fees as specified in Exhibit A. TMC may amend or replace the Exhibits at any time by delivery of written notice to Griston. In that event, the amended or replacement Exhibit will govern as to all claims received after the date of delivery of the amended or replaced Exhibit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Allocated Loss Adjustment Expenses.</u> In addition to the fees described in Section 2.1 of this Agreement, all Allocated Loss Adjustment Expenses will be paid by TMC or the Reciprocal. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of TMC or the Reciprocal's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by TMC or the Reciprocal) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation
at depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and Griston adjusters, automobile and property appraisers, to the
extent that same are incurred in the adjustment, negotiation, settlement or defense of any claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where Griston determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of TMC or the Reciprocal and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by Griston at the express written request and approval of a
TMC officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to Griston's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, Griston makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. TMC agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term and Termination</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Term.</u> The term of this Agreement will commence on the Effective Date and will expire five years thereafter (the "Term"). The Term will automatically renew for additional one-year periods upon the expiration of the initial term and each renewal term, unless terminated in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Termination by Notice.</u> TMC may terminate this Agreement upon six months written notice.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Termination for Non-Performance</u>. In the event that either Party breaches any of the terms hereof, then either Party (whether in breach or not) may terminate this Agreement upon thirty days written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Return of TMC Materials after Termination.</u> After termination or expiration of this Agreement, Griston will use reasonable efforts to assist TMC with copying TMC's policyholder information or other materials from Griston's systems prior to deletion of any such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Survival of Expiration or Termination.</u> Sections 2 (Fees), 4 (Confidentiality), 5 (Indemnity Obligations), and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Confidentiality.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Confidential Information.</u> For the purposes of this Agreement, "Confidential Information" means information about the disclosing Party's (or its Affiliates' or suppliers') business or activities that is proprietary and confidential, which will include all policyholder information, agent information, and all business, financial, technical and other information of a Party which is either marked or designated by such Party as "confidential" or "proprietary" or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential, and the terms of and performance under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Not Confidential Information.</u> Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving Party knew prior to receiving such information from the disclosing Party, or (iv) the receiving Party develops independently without use of or reference to any Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Obligations.</u> Each Party agrees (i) that it and its employees will not (a) disclose Confidential Information of the other Party to, and will prevent disclosure to, any other individual, association or legal entity or (b) use any Confidential Information disclosed to it by the other Party except as expressly permitted in this Agreement and (ii) that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Exceptions.</u> Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the Party required to so disclose Confidential Information of the other Party will use commercially reasonable efforts to minimize such disclosure and will provide written notice of such disclosure and consult with and assist the other Party, at the other Party's expense, in obtaining a protective order prior to such disclosure or (ii) on a "need-to-know" basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnity Obligations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Indemnity</u>. Each Party will indemnify, defend and hold harmless the other Party hereto and its Affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys' fees) arising from the first Party's breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such Party must notify the other Party within twelve months of the earlier of: (i) the date the first Party first became aware of the claim: or (ii) the date such Party should have become aware of the claim using reasonable due diligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Adequate Remedy.</u> The Parties agree that any breach of either of the Parties' obligations regarding confidentiality may result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a Party's obligations regarding the other Party's confidentiality, the aggrieved Party will be entitled to seek injunctive relief, in addition to any other remedies to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>General.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Relationship.</u> This Agreement is not intended to create, and will not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the Parties other than the independent contractor relationship expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Governing Law and Venue.</u> This Agreement will be governed by the laws of the State of Florida, without giving effect to applicable conflict of laws provisions. With respect to any litigation arising out of or relating to this Agreement, each Party agrees that it will be filed in and heard by the Circuit Court in and for Hillsborough County, Florida or the United States District Court for the Middle District of Florida, Tampa Division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Entire Agreement; Amendments.</u> This Agreement, including any exhibits and other attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the Parties relating to the subject matter of this Agreement, all of which are merged in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Construction</u>. This Agreement will be construed without regard to which Party was responsible for its preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words "Agreement," "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any particular provision of this contract. Whenever the word "include," "includes" or "including" is used in this Agreement, it will be deemed to be followed by the words "without limitation." The various headings contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Severability.</u> If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term will be replaced with another term consistent with the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will be deemed an original of this Agreement, and all of which together will be deemed the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <u>Assignment.</u> Griston may not assign this Agreement or transfer any of Griston's rights or obligations under this Agreement to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <u>Notice.</u> Notices required or permitted by this Agreement will be provided to the other Party in writing. Electronic mail (email) is acceptable for written notice except that the Parties must provide any written communications related to Section 5 or any legal dispute between Griston and TMC by certified mail to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <u>Force Majeure.</u> Neither Party will be responsible to the other Party for any failure or breach of this Agreement caused by an act of God; astronomical event; disease or pandemic; war, hostility, insurrection, or other widespread violence; riot or political instability; work stoppage; government action or change in applicable law; or any other circumstance outside the reasonable control of the affected Party. If any force majeure event continues for more than 30 days and the affected Party is unable to remedy the failure or breach of this Agreement caused by the force majeure event, the Party affected by the force majeure event may terminate this Agreement immediately upon written notice to the other Party.

The Parties have duly executed this Agreement by the authorized signatures below.

---

| | |
|:---|:---|
| Griston Claim Management, Inc. | Griston Claim Management, Inc. |
| By: | /s/ Paresh Patel |
| Name: | Paresh Patel |
| Title: | President |
| TypTap Management Company | TypTap Management Company |
| By: | /s/ Kevin Mitchell |
| Name: | Kevin Mitchell |
| Title: | Chief Executive Officer |

---

------

EXHIBIT A

FEES FOR CLAIMS SERVICES

For Claims Services described in this Agreement, TMC will pay to Griston (i) $1,200 plus 4% of the amount expended for indemnification of the loss per claim handled by Griston; and (ii) $5,000 plus 4% of the amount expended for indemnification of the loss per litigated claim handled by Griston. These fees shall accrue when a claim or litigated claim is received by Griston and will be payable on the 15th day of each month during the term of the Agreement. The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 2.2 of this Agreement. The above fees do not apply to class action suits or catastrophic events.

## Exhibit 10.11

**Exhibit 10.11** 

MANAGING GENERAL AGENCY AGREEMENT

Managing General Agency Agreement (the "Agreement") is made and entered into as of November 5, 2024 (the "Effective Date"), by and between Typtap Management Company, a Florida corporation (the "MGA"), and Tailrow Risk Managers, LLC, a Florida limited liability company (the "AIF"), for itself and as attorney-in-fact for Tailrow Insurance Exchange, a Florida-domestic homeowners reciprocal insurer (the "Reciprocal")(the AIF and the Reciprocal are herein collectively referred to as the "Company").

WHEREAS, the Reciprocal is authorized to write or has applied for authority to write insurance policies (each a "Policy" and collectively the "Policies") providing the coverages set forth in Schedule I to this Agreement (the "Authorized Coverages") in each of the jurisdictions identified in Schedule I to this Agreement (each, an "Authorized Territory"); and

WHEREAS, the AIF is the designated attorney-in-fact for the Reciprocal, and is appointed to conduct the business of the Reciprocal; and

WHEREAS, the Company desires MGA to act as the exclusive managing general agent for the Company with respect to the Policies, including renewals, issued from the Effective Date of this Agreement until terminated as hereinafter set forth, as and when the Reciprocal, AIF and the MGA become licensed in each Authorized Territory identified in Schedule I to this Agreement; and

WHEREAS, MGA desires to produce, administer and manage the Policies, adjust and pay claims in connection with the Policies, negotiate reinsurance and provide other services in connection with such Policies including, but not limited to, marketing, information services, product and underwriting development and management, and catastrophe risk management on behalf of the Company;

NOW, THEREFORE, in consideration of the promises and the mutual covenants hereinafter contained, the receipt and sufficiency of which are acknowledged by the parties, the Company and the MGA agree as follows:

ARTICLE I—GENERAL PRINCIPLES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. In accordance with all applicable laws and regulations of each Authorized Territory the Company appoints MGA for the purpose of producing and administering Policies for the Authorized Coverages in each Authorized Territory set forth in Schedule I. MGA agrees to produce the Policies in each Authorized Territory in accordance with the limits of liability set forth in Schedule I hereto and the Company's established and approved underwriting requirements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. The Company, relying upon the expertise of MGA, grants authority to MGA hereunder solely with respect to the Policies. Nonetheless, the Company being at risk and having ultimate responsibility and authority for the Policies issued by MGA, at all times shall have the ultimate responsibility and discretion with respect to all matters pertaining to the Polices and to the general welfare of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. Consistent with the intention of the parties to produce an operating profit for the Company, MGA shall manage its affairs in accordance with the terms of the Agreement in an ethical and professional manner and in accordance with all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. The Company, relying upon the expertise of MGA, grants authority to MGA to solicit and negotiate reinsurance with respect to the programs authorized by the Company. Nonetheless, the Company being at risk and having ultimate responsibility for all reinsurance contracts issued, will have the ultimate responsibility and discretion with respect to the approval and contracting for all reinsurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 The term of this Agreement shall commence as of the Effective Date of this Agreement and shall continue for a period of three years thereafter unless sooner terminated pursuant to the terms of this Agreement. Upon expiration of the initial three-year term of this Agreement, the Agreement shall automatically renew for additional periods of one year unless either party provides written notice to the other at least ninety days prior to the expiration of the initial three year term or any subsequent annual renewal thereof.

ARTICLE II—UNDERWRITING AUTHORITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Agents. The Company hereby grants to MGA authority to accept applications to issue the Policies received through appointed licensed insurance agents ("Producing Agents") and agents authorized as "Brokering Agents" in accordance with all applicable laws and regulations of each Authorized Territory. MGA may not authorize or facilitate the appointment of any insurance broker or agent, or any other entity, to issue Policies on behalf of the Company without the prior written consent of the Company. The MGA may not appoint a sub-managing general agent for the business of the Company. The MGA may not permit any of its sub-producers or employees to serve on its Board of Directors or the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Agent Agreements. Any and all agreements with any insurance broker, agent, Producing Agent, Brokering Agent or other entity (hereinafter collectively called the "Agent") shall be made directly between MGA and such Agent. Such agreements shall provide that with respect to any action taken or not taken by MGA in connection with the Policies or this Agreement, the Agent shall look solely to MGA for any and all expenses, costs, causes of action and damages suffered by the Agent. Nothing in this Section is intended to create a cause or claim against MGA that the Agent would not otherwise have against the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Agent Responsibility. MGA shall bear sole responsibility to oversee the placement of business through Agents. With respect to the Policies or this Agreement, MGA shall hold the Company harmless and reimburse the Company for any and all fines and expenses levied against or incurred by the Company as a result of MGA accepting business from an unlicensed Agent, or the failure of the Company, MGA, or any Brokering Agent to comply with all applicable laws and regulations regarding the exchange of business between the Company and Brokering Agents, unless such costs and expenses result solely from the Company's failure to take legally required or reasonably necessary specific actions recommended to the Company by MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Policy Services. Pursuant to the terms and provisions of this Agreement, the Company hereby grants to MGA authority to receive and accept proposals of insurance from the Effective Date of this Agreement until the termination of this Agreement (or termination of the appointment in Section 2.8) for the Authorized Coverages. Such authority shall include the binding of coverage, the issuing and endorsing of Policies in the name of the Company, and the canceling and non-renewing of such binders and contracts when the best judgment of MGA dictates. MGA shall provide for the Company a policy administration system and utilize and enter the Company's Policy data into that system in a timely manner. MGA shall provide to the Company, at no additional cost to the Company access to the policy administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Underwriting. The Company grants MGA authority to provide the Policies pursuant to the underwriting guidelines provided in writing to MGA by the Company. Such underwriting guidelines shall include, but not be limited to, guidelines pertaining to the basis of the rates to be charged, types of risks to be written, maximum limits of liability, applicable exclusions, territorial limitations, policy cancellation provisions, and maximum policy period. All underwriting guidelines that the Company provides the MGA, in writing, shall be deemed incorporated in this Agreement by reference and adoptions. The Company grants MGA authority to operate within written guidelines approved in writing by the Company, subject, however, to the professional judgment of supervisory underwriting personnel; and any Policy issued by or at the request of MGA which does not fall within such guidelines shall, at the Company's request, be promptly terminated, and MGA shall indemnify the Company from and against any liability thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. One-Year Terms. The Company grants MGA authority to issue or have issued Policies having a maximum term of one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Policy Language. The Company grants MGA authority to utilize only insurance contract wordings, endorsement wordings and rates that are approved by the Company and are properly filed and approved, to the extent necessary, by appropriate regulatory authorities of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. MGA Appointment; Maximum Annual Net Written Premium Production. The Company appoints MGA to issue Policies on behalf of the Company in each Authorized Territory. Other than through MGA, Company agrees not to write the Authorized Coverages of business that the Company is duly licensed to write, or to appoint another managing general agent to write the Authorized Coverages of business that the Company is duly licensed to write, in any Authorized Territory during the term of this Agreement as set forth in paragraph 1.5 herein. Under no circumstances shall the MGA produce from the Authorized Coverages Gross Written Premium in excess of $750 million in any year without the express written approval of the Company for any Net Written Premium written in excess of the aforestated amount.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Policyholder Information. The Company shall not disclose, share, or otherwise make available to any other person, partnership, corporation, managing agent, agent, broker, independent agent or broker, underwriting manager, or other insurer information regarding the Company's policyholders who have been issued Policies pursuant to MGA's authority under this Agreement until one year after the termination of this Agreement. The foregoing limitation shall not prohibit the Company from disclosing such information to its independent accountants or auditors, insurance department examiners, or as otherwise required in the normal course of the Company's business. Company and MGA shall fully comply with the provisions of any applicable Federal laws and the laws of each Authorized Territory applicable to confidentiality and privacy of policyholder information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. Expirations. In the event of the termination of this Agreement, MGA's records and the use and control of expirations of the Company's business produced by Agents registered or appointed by the Company shall remain the joint property of the Company and MGA, subject to any rights in the Agents pursuant to the terms of any agreement between MGA and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. Premium Financing. With respect to Policies, MGA shall have the authority to enter into agreements with premium finance companies ("PFCs"), to receive notices of premium financing, to receive proceeds of premium financing, and to receive and act upon notices and requests of cancellations from PFCs. The MGA shall not delegate this authority to any Agent. Subject to the PFCs contracts with the insureds and applicable laws and regulations of each Authorized Territory, and to the extent of the contract balances due the PFCs from the insureds, the MGA shall return all unearned premium directly to the PFCs to the extent held by MGA and shall cause the Agents to return all unearned commission to the PFCs to the extent held by the Agents.

ARTICLE III—HANDLING OF FUNDS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Depository Account. MGA shall accept in a fiduciary capacity, on behalf of the Company, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. The Company shall establish and maintain a "Depository Account" in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by MGA shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by the Company. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to the Company. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. No Commingling. The MGA shall not commingle any premium or escrow trust funds with personal accounts or other funds held by MGA in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. Premiums. MGA assumes responsibilities for, and shall promptly, on no less than a monthly basis, pay the Company all premiums collected on Policies issued by or through MGA or on MGA's behalf for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. Disbursement Account. The Company will maintain and adequately fund a Disbursement Account ("Disbursement Account") in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. The Disbursement Account will be used for the payment by MGA of unearned premiums arising due to cancellation or endorsement of the Company's Policies produced by MGA. The Company and MGA shall each have signature authority over this account. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Bank Failure. MGA shall not be liable for any loss which occurs by reason of the default or failure of the bank in which the Depository Account and Disbursement Account are maintained and such loss shall not affect MGA's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. Return Commissions. MGA shall refund to the Company, unearned commissions on policy cancellations, reductions in premiums or any other return premiums at the same rate of which such commissions were originally retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7. Policy Fees. MGA shall comply with the provisions of Section 626.7451(11), F.S., and shall be entitled to retain as fully earned upon collection any duly authorized and collected per-policy fee pursuant to such section. The per-policy fee shall not exceed $25.00 or such other greater amount as may be authorized under Florida law. In no instance shall the aggregate of the per-policy fees for a placement of business authorized under Section 626.7451(11), Florida Statutes, when combined with any other per-policy fee charged by the Company, result in per-policy fees which exceed the aggregate amount of $25.00 or such other greater amount as may be authorized by Florida law. The per-policy fee shall be a component of the Company's rate filing. MGA may collect per-policy fees in other Authorized Territories if such fees are permitted under the laws and regulations of such Authorized Territories and subject to MGA's compliance with the Company's underwriting guidelines.

ARTICLE IV—OTHER REPORTS & REQUIREMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. Underwriting Records. MGA shall maintain separate, complete and orderly underwriting files or electronic files, records and accounts of all transactions involving the Company in accordance with generally accepted insurance and accounting practices. All records shall be the joint property of the MGA and the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Inspection. The Company or its authorized representatives shall have the right (but not the obligation) at all reasonable times during business hours of operations to inspect MGA's books, records and bank accounts, whether located, which pertain to the business which is the subject of this Agreement and shall have the right to copy or make abstracts from such books and records. The governmental insurance regulatory authority in each Authorized Territory shall have access to all books, bank accounts, and records of the MGA in a form usable by the governmental insurance regulatory authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Written Operating Procedures. MGA shall establish and maintain written operating procedures regarding the issuance of all Policies and endorsements, as well as the collection of premiums related thereto. Such procedures shall be forwarded to the Company and shall be subject to the Company's review and written approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. Financial Statement. Within 150 days after the end of each fiscal year of MGA, MGA shall furnish the Company with true copies of its unaudited financial statements and the audited, certified balance sheet and related statement of operations of MGA for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. Records. MGA shall maintain permanent physical or electronic copies of all Policies and applications or correspondence related to the Policies, either as hard copies, on microfiche or archived in electronic media. All records shall be retained by the MGA according to the applicable laws and regulations of each Authorized Territory. MGA will not destroy these permanent copies without the written permission of the Company for the longer of seven years from the termination date of the Policy or the period specified by the applicable laws and regulations of each Authorized Territory regulating preservation of records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. Complaints; Company's Duty to Forward Complaints. The MGA shall maintain and make available for inspection by the Company, complaint log(s) of all written: (i) complaints and requests for assistance filed with MGA or the Company by the governmental insurance regulatory authority in each Authorized Territory, at the request of an insured, claimant, lienholder, or any other interested party to a Policy or claim thereunder; and (ii) lawsuits and arbitrations. The log(s) will include the name of the complainant, the Policy number and/or claim number, and the date the complaint was received. MGA shall maintain copies of the complaints and MGA's written response regarding resolution and remedy of said complaint. The Company shall forward to MGA, by next day delivery service, all complaints, time-demand correspondence, and subpoenas received by the Company relevant to the MGA on this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. Licenses. The Company and MGA shall maintain all licenses and regulatory approvals necessary to conduct the business covered under this Agreement. The Company and MGA will not transact insurance in any Authorized Territory unless and until the required licenses have been obtained by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8. Cancellations. Notwithstanding the authority granted to MGA by the Company, the Company may require MGA to terminate coverage provided by any Policy so long as such termination does not violate applicable laws and regulations of the applicable Authorized Territory. If the Company exercises this right, the Company shall do so in a writing that includes the reasons for such termination and that instructs MGA to send appropriate non-renewal or cancellation notice as required by contract wording or relevant regulatory or statutory authority to terminate coverage.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9. Agent Licensing. MGA is required and agrees to be in compliance with, and MGA shall make reasonable inquiry and take all reasonable steps to ascertain that all Agents are in compliance with, all applicable laws and regulations of each Authorized Territory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10. IRS Forms. MGA shall prepare and furnish each Agent with an IRS form 1099 each year when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11. Advertisement. MGA shall obtain the approval of the Company before issuing any advertisement, circular, pamphlet or other publication, which refers to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12. Intellectual Property. The MGA will not use any trademark, servicemark, tradename, brand name, logo, insignia, symbol, copyright or similar intellectual property of the Company (collectively the "Marks") in any manner whatsoever (including, without limitation, on a Web site, stationary or business card) without the Company's prior written approval. The MGA will not use or attempt to register any trademark, servicemark, tradename, brand name, logo, insignia, symbol or indicia similar to any of the Marks. The Company hereby grants to the MGA a royalty-free, worldwide, non-exclusive, non-transferable license to use the Marks solely as approved or authorized by the Company and solely for the purpose of this Agreement. The MGA may sub-license the Marks to Agents and others solely as approved or authorized by the Company and solely for the purposes of this Agreement. The Company may confirm the accuracy and appropriateness of the MGA's use of the Marks (and the use by Agents) anytime and may demand changes to such use anytime. The MGA will promptly comply with all such demands and cause Agents to comply with such demands. This license and the authorized sub-licenses will terminate upon the expiration or termination of either this Agreement or the MGA's appointment under this Agreement. Notwithstanding anything to the contrary contained in this Agreement or in any approval or authorization (existing now or in the future), the Marks are and will remain solely and exclusively the property of the Company, in its sole discretion. Except for the limited license granted by this section, nothing in this Agreement confers or will confer upon the MGA any right, title or interest in the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13. Report of Accounts. MGA shall render accounts to the Company detailing all transactions and remit all funds due under the terms of this Agreement to the Company on a monthly or more frequent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14. Additional Limitations on Authority. The Company does not grant MGA authority to, and MGA shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cede, purchase, or bind any reinsurance or retrocession, including but not limited to facultative or treaty, on behalf of the Company without approval by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Commit the Company to participate in insurance or reinsurance syndicates.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Appoint any Agent or producer without assuring that such Agent is lawfully licensed to transact the type of insurance for which such Agent is appointed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Collect any payment from a reinsurer or commit the insurer to any claims settlement with a reinsurer without the Company's prior approval. If prior approval is given, a report must be promptly forwarded to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Without the prior approval of the Company, pay or commit the Company to pay a claim over a specified amount, net of reinsurance, which exceeds 1 percent of the Company's policyholder's surplus as of December 31 of the last completed calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Jointly employ an individual who is employed with the Company.

ARTICLE V—MGA'S COMPENSATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Compensation</u>. The Company shall pay to MGA, as its sole and full compensation for all authorized business placed with the Company under this Agreement, and excluding the fees and expenses to be paid to MGA for those Claims Services provided in Article VII herein, the commission, and policy fee set forth in Schedule II to this Agreement.

ARTICLE VI—EXPENSES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. MGA's Expenses. Except as otherwise provided in this Agreement, MGA shall pay all expenses incurred by MGA in connection with the underwriting, production, marketing and servicing of the Policies, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Printing of proposals, policy jackets, contracts of insurance, endorsements, cancellation notices, premium
notices, records and reports, and all other documents required to fulfill the obligations of MGA under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Advertising and public relations expenses authorized by MGA. The Company's prior written approval shall
be required with respect to any advertising or public relations material that contains the Company's name and logo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's general office expenses, including rent, salaries, utilities, data processing performed by MGA,
transportation, furniture, fixtures, equipment, supplies, telephone, postage, and other general overhead expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Company's Expenses. The Company shall pay directly all charges and expenses directly attributable to its operations, including but not being limited to the following: Board and Bureau fees; guaranty funds assessments and other assessments for or based on, business written pursuant to this Agreement; premium taxes and any other assessments levied by a state or local governmental authority on business written hereunder; cost of reinsurance; legal and auditing expenses incurred at the direction of the Company. For the avoidance of doubt, the MGA will not be responsible for payment of any commissions to producers of the Policies. Such commissions will be paid by the Company directly.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Reimbursement by MGA. In addition to any rights granted to the Company hereunder, the Company shall be entitled to immediate reimbursement or payment from MGA for all ordinary, reasonable and necessary costs, charges and expenses (collectively called "Expenses") paid or incurred by the Company by reason of or in connection with (i) the termination pursuant to Section 9.2 of this Agreement, or (ii) the breach or non-performance of any covenant or obligation to be observed or performed by MGA or any Agent; provided, however that in the case of a breach or non-performance by MGA, the Company shall have given MGA written notice of the breach or non-performance and MGA shall not have cured same within 30 days after the date of the notice, or if same is of such a nature that it cannot reasonably be cured within such time, if MGA has not within such time commenced to cure same and does not diligently continue to and actually cure same. Any expenses incurred by the Company after the giving of such notice shall be promptly reimbursed by MGA. Without limiting the generality of the foregoing, MGA's covenants and obligations as referred to herein shall include but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the obligation to deposit, report and remit premiums to the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the obligation to remit return premiums to the insureds when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the obligation to process all policies, endorsements and notices of cancellation and/or non-renewal pursuant to the Company's underwriting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the obligation to observe and comply with underwriting guidelines and sub-agent appointment procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. the obligation to observe and comply with all statutes, regulations, rules and rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. the obligation to comply with the requirements of Article III hereinabove; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. the writing, binding or issuance of policies and risks by MGA not in accordance with the conditions set forth
in this Agreement and any Addenda hereto constitutes a breach of this Agreement, and any loss and expense incurred by the Company resulting from such breach shall be assumed by MGA. In the event the Company sustains a loss on a Policy or risk which
the MGA has written, issued or bound which is not within the scope of its authority under this Agreement and any addendum hereto, MGA shall reimburse the Company for the amount of the loss plus the expenses incurred by the Company because of the
loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. Coverage. In the event that any obligation to grant or extend insurance coverage is imposed on the Company by a Court or governmental insurance regulatory authority in each Authorized Territory or any other state or jurisdiction as a result of any breach or non-performance by MGA or any Agent of its or their obligations under Policies, then and in that event, MGA shall (a) pay any fine or penalty imposed upon the Company and all Expenses incurred by the Company. MGA may seek reimbursement for such fine, penalty, or Expenses from the responsible Agent or cause such Agent to pay such fine, penalty, or Expense.

------

ARTICLE VII—CLAIMS ADMINISTRATION SERVICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. General Authority. The Company appoints MGA for the purpose of investigating, evaluating, handling, adjusting, and settling each claim which may arise during the term of this Agreement under the Policies ("Claims Services") within the established authority for claims as set forth in Schedule III which is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. Duties of MGA. In addition to, and without limiting, any duties which may be owed by MGA pursuant to applicable laws and regulations of the Authorized Territory pertaining thereto, MGA shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Provide a claims administration system and utilize and enter the Company claims data into that system as
directed by the Company in a timely manner. MGA shall provide to Company, at no cost to Company, access to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Dedicate sufficient and appropriate human, equipment and computer resources to provide Company with the Claims
Services enumerated in Schedule III to this Agreement. The Claims Services shall use only licensed adjusters (as required by applicable laws and regulations of each Authorized Territory), and licensed private investigators (as required by applicable
laws and regulations of each Authorized Territory), or catastrophic adjusters, where applicable (as required by applicable laws and regulations of the Authorized Territory).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Investigate, evaluate, handle, adjust and settle each claim assigned MGA within the authority established for
claims as set forth in Schedule III, which authority is subject to termination for cause or upon termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Designate an employee to act as liaison with Company to facilitate the provision of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Maintain the confidentiality of data or information which is the property of Company and which is directly
accessible to MGA in the implementation and performance of the Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Maintain complete, accurate and orderly claims books, files, records and accounts of all transactions in
accordance with generally accepted insurance and accounting practices, which files shall be the joint property of the Company and MGA. The data in any electronic claims files maintained by the MGA shall be transmitted to the Company in a timely
manner as reasonably directed by the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Maintain during the term of this Agreement copies of all claims and correspondence related to the claims for a
period of six years after the date of closure of such claim. MGA shall not destroy these copies without the written permission of the Company. MGA may, with permission from Company, use magnetic, optical, and other types of technology to store such
data. At the end of such six year period relevant to any claim, the Company shall authorize MGA to either (a) destroy the closed file or (b) return such file to Company at Company's expense. Upon an order of liquidation of the
Company, the claims files shall become the sole property of the Company or its estate once MGA has been paid for the services rendered. MGA shall have reasonable access to and the right to copy all files, books and records on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The MGA shall adjust and handle all claims still open upon termination or cancellation of this Agreement for an
agreed upon fee per claim. Company shall continue to be responsible for the payment and reimbursement of expenses for such claims as provided in this Article VII. Notwithstanding the foregoing, any settlement authority granted to the MGA may be
terminated for cause upon the Company's written notice to the MGA or upon termination of this Agreement. The Company may suspend the MGA's settlement authority during the pendency of any dispute regarding the cause for termination. Upon
termination of the MGA's authority to settle claims, the MGA shall desist from any draw on funds of the insurer and shall immediately forward to the insurer all claims files with the MGA's immediate possession and any claims received
thereafter. The MGA shall promptly transfer to the insurer any funds owed to the insurer or to any policyholder and shall transfer to the insurer any property of the insurer that is within the MGA's actual or constructive possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. MGA agrees that all claims occurring during the Term of this Agreement will be reported to the Company in a
timely manner, no later than 30 days, and will be assigned to properly licensed persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA agrees that Notice shall be sent by the MGA to the Company, at the Company's request, or as soon as
it becomes known that a claim:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exceeds an amount determined by the governmental insurance regulatory authority of any Authorized Territory or
exceeds the limit set by the insurer, whichever is less;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Exceeds the MGA's claims settlement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Is open for more than six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Is closed by payment of an amount set by the governmental insurance regulatory authority in each Authorized
Territory or an amount set by the insurer, whichever is less.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Company Discretion. MGA acknowledges and agrees that Company, as the party at risk and having ultimate responsibility for the claims to be administered by MGA, shall at all times have ultimate discretion and authority with respect to all matters pertaining to the claims including, without limitation, the processing, handling, disposition, settlement, defense and litigation of all claims. The exercise or failure to exercise such discretion and authority shall not in any way diminish, impair or otherwise affect the obligations of MGA hereunder, including, without limitation, the obligations to exercise reasonable care, to act in good faith, and to otherwise act in a prudent, fair and appropriate manner with regard to the Claims Services.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Duties of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees that all claims occurring during the term of, and under, this Agreement will be reported and
assigned to MGA, unless Company otherwise notifies MGA. Company will provide all information, in its possession, relevant to particular claims assigned to MGA in order for MGA to fulfill its duties and obligations as set out in Schedule III. MGA
shall notify Company, in writing, should Company fail to provide any relevant information requested by MGA regarding any specific claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company shall appoint an individual with sufficient authority within Company's organization to facilitate
MGA's performance of the Claims Services enumerated in Schedule III.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Company has ultimate authority and responsibility for authorizing claims payment and settlement over
MGA's authority of $250,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Audit Provisions. The Company, its employees, and/or its authorized agents shall have the right, at any reasonable time during normal business hours and with reasonable notice to the MGA, to review and/or audit Company's claim files maintained by the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. Price and Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company agrees to pay Claim Services fees as specified in Schedule III A through Schedule III C of this
Agreement. Schedule III A shall govern the service fees payable to MGA by Company on all business written by Company. Schedule III B shall govern the services fees payable to MGA by Company for subrogation and salvage activities. Schedule III C
shall govern the services fees payable to MGA by Company for the provision and administration of catastrophic Claims Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Company agrees to pay all tariffs and taxes that are now or may become applicable to the Claims Services
rendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Fees for Claims Services will be due and payable 15 days after the close of the month in which Claims Services
are performed in amounts pursuant to Schedules III A through III C of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA and Company will renegotiate, in good faith, the Claims Services fees in the event of statutory,
regulatory, or judicial changes that require additional activities not contemplated at the inception of this Agreement. Should the parties be unable to reach an agreement, either party may terminate this Agreement upon advance written notice to the
other party at least 90 days prior to the effective date of termination.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. Definition and Payment of "Allocated Loss Adjustment Expense." All Allocated Loss Adjustment Expenses shall be paid by the Company. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of the Company's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by Company) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation at
depositions, hearings, pretrial conferences and/or trials (in the case of legal services performed by employee-attorneys of the MGA, the expense incurred and payable by the Company will be deemed to be $5,000 per litigated claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and MGA adjusters, automobile and property appraisers, to the extent
that same are incurred in the adjustment, negotiation, settlement or defense of any Claim (in the case of adjustment services performed by adjusters of the MGA, the expense incurred and payable by the Company will be deemed to be $440 per adjusted
claim);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where MGA determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of the Company and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by MGA at the express written request and approval of a
Company officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to MGA's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, MGA makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. Company agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. Limitation of Liability and Remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In providing the Claims Services hereunder, MGA shall have a duty to act with a reasonable due care and
caution, in good faith, and in a prudent manner. MGA shall be liable to Company for any loss or damage sustained by Company as a result of, or related in whole or part to, the bad faith, negligence or other intentional or unintentional misconduct on
the part of MGA, or its officers, directors, employees or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA agrees to indemnify, defend and hold harmless Company, its officers, directors, employees, agents,
designees and affiliates (collectively "Indemnified Parties"), from and against any and all claims, causes of action, liabilities, liens, fines, penalties, demands, costs, fees, expenses (including reasonable attorney's fees),
suits, judgments, adjudications and losses of whatever kind or nature incurred by, or claimed against, any of the Indemnified Parties by reason of any bad faith, negligence, or other misconduct by MGA, or any of its officers, directors, employees or
agents, or by reason of any breach of this Agreement by MGA.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA shall have no indemnity obligation under this Agreement for any act or omission of the MGA taken or omitted
to be taken at the express direction of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. All indemnity obligations of MGA under this Agreement shall survive the termination or expiration of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA warrants that it now has and shall maintain during the term of this Agreement for the protection and
benefit of the Company and MGA liability insurance coverage in an amount of not less than $1,000,000 for any one event and in an amount of not less than $2,000,000 in the aggregate. Such coverages shall be in a form and with a company acceptable to
Company and proof of such coverages shall be provided to Company upon request.

ARTICLE VIII – ADDITIONAL SERVICES OF MGA

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Additional Services. As part of the MGA's services as provided in this Agreement, the MGA will provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accounting, controllership, finance and treasury services. For the avoidance of doubt, AIF will remain
responsible for the preparation and filing of all reports required by governmental and nongovernmental regulatory and supervisory authorities on behalf of the AIF or the Reciprocal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) corporate tax analysis. For the avoidance of doubt, AIF will remain responsible for preparation and filing of
its own taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) corporate legal services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) corporate and brand marketing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) customer relations including complaint handling;

ARTICLE IX- TERMINATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. Continuing Authority. The authority of MGA to issue Policies under this Agreement shall be continuous until terminated, except for mandatory renewals of existing Policies. This Agreement may be terminated by either party, at the end of any calendar quarter, without cause, by giving the other party not less than 180 days prior written notice of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. Termination By Company with Cause. This Agreement shall terminate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Automatically and immediately at the written election of the Company, if any public authority cancels or
declines to renew any of the licenses of MGA necessary to fulfill the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Automatically and immediately in the event of a transfer, sale or pledge of the majority of the stock or a
substantial portion of the assets of MGA, unless this Agreement is assigned with the express written consent of the Company, or unless the pledge of stock is to a federal or state charted bank to secure loans from the bank to MGA, provided in the
event of such permitted pledge that this Agreement shall terminate if the pledged stock is foreclosed upon or otherwise acquired by the pledgee.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. At the election of the Company upon MGA's material violation of any provision of this Agreement;
provided, however, that MGA will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Immediately, at the election of the Company for the occurrence of any failure by MGA to comply with the
provisions of Section 6.3 a. or b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. Termination by MGA. This Agreement may be terminated at the election of and upon written notice from MGA upon the failure of the Company: (a) to remain licensed in each Authorized Territory; (b) to comply with applicable laws and regulations of each Authorized Territory; or (c) to comply with the material provisions of this Agreement; provided, however, that Company will be allowed 30 days, after written notice, to cure any non-monetary breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. Suspension and Revocation of Authority. The Company may suspend MGA's underwriting authority during the pendency of any dispute regarding the termination of this Agreement. The Company and MGA shall fulfill their obligations under the Policies regardless of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. Effect of Termination. In the event of proper termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as set forth in Section 7.2.h. herein, the obligations of MGA and the Company under this Agreement
shall be discharged promptly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No party shall have a claim upon the other for loss of prospective profit or damage to the business arising
therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. MGA's records shall remain the property of MGA and left in MGA's possession, provided MGA is in
compliance with all of its obligations to the Company. Copies of such documents shall be furnished Company by MGA upon written request of Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. Run-off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company shall, concurrent with its notice of termination or within 30 days of MGA's notice of
termination, notify MGA of whether the Company intends to have MGA service the Policies through their run-off, or whether it intends to manage the run-off itself. Except
as set forth in Section 7.2.h. herein, MGA's compensation in either event is set forth in Schedule II to this Agreement. For purposes of this Agreement, the term "run-off" shall mean
confirming coverage under the Polices to claims adjusters, administering the in-force Policies and any required renewals and endorsement thereof, providing reports to the Company as elsewhere required by this
Agreement, paying premium to the Company and return premium to the insureds, collecting all sums due from Agents, including return commissions, and such other activities of MGA specifically required by this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. MGA shall upon demand return to the Company any Policies, forms or other supplies imprinted with the
Company's name regardless of who incurred the cost for same, or any Policies, forms or other supplies furnished to MGA by the Company, with the exception of any forms which in MGA's reasonable opinion are required to complete an orderly run-off of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event this Agreement terminates and/or MGA refuses or is unable to administer and run-off business produced under this Agreement, then in that event MGA shall immediately provide the Company with a back-up of all programs and data libraries, including
updated source code and data files, used in the production and administration of business hereunder (the "Data"). The Company agrees that it shall utilize the Data solely for the purpose of administering and running off the business
produced hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA hereby grants, at no cost to the Company, a limited license to the Company to use MGA's Software in
connection with the administration and run-off of the business produced hereunder. MGA shall deliver the Software, together with the source and object code for the Software, as well as all available related
manuals, immediately upon delivery of the Data to the Company as provided in the preceding Section.

ARTICLE X—ARBITRATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. Any controversy, claim or dispute arising out of or relating to this Agreement, including questions regarding the arbitrability of any issues or the scope, applicability, enforceability, validity or breach of this or any other provision of this Agreement or differences of opinion as to the interpretation of this Agreement, shall be submitted to arbitration, one arbitrator to be chosen by the Company, one by MGA, and an umpire by the two arbitrators (the arbitrators and umpire are referred to as the "Panel").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. The Panel shall, unless the parties otherwise agree, shall meet in Ocala, Florida. Members of the Panel shall be disinterested officers or former officers of property and casualty insurance companies or insurance agencies authorized to transact business in the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. The arbitration shall be instituted by the claimant serving a notice upon the respondent setting forth a statement of the nature of the dispute and the name, address and current (or last, if retired) employment position of the arbitrator appointed by the claimant. The respondent shall appoint its arbitrator within 20 days after service of claimant's notice and shall, within such time, similarly notify claimant of the name, address and current (or last, if retired) employment position of the respondent's arbitrator. If the respondent fails to appoint its arbitrator within such 20 day period, the claimant shall also appoint the second arbitrator within 10 days after the expiration of the 20 days for respondent to appoint its arbitrator. If the two

------

arbitrators fail to agree upon the appointment of an umpire at the end of the 20 days following the last date of the appointment of the arbitrators, then they each shall, within 10 days thereafter, name three candidates who serve as umpire, and within 10 days thereafter each shall decline two of the candidates named by the other; within five days thereafter, a decision shall be made by drawing lots as to which of the last two candidates shall be the umpire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. The respondent shall submit its statement within 20 days after receipt of the claimant's statement, and the claimant may submit a reply statement within 10 days after the receipt of the respondent's statement. Copies of all statements shall be sent to the parties and the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. Any hearing shall commence within 30 days following the selection of the umpire. The Panel shall render its decision within 30 days following the termination of the hearings unless the parties consent to an extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. The Panel shall consider this Agreement an honorable engagement rather than merely a legal obligation and shall make its decision with regard to the custom and usage of the insurance and reinsurance business. The Panel shall issue its decision in writing upon evidence introduced at a hearing or by other means of submitting evidence in which strict rules of evidence need not be followed, but in which cross examination and rebuttal shall be allowed if requested. The majority decision of the Panel shall be final and binding upon all parties to the proceeding. Judgment may be entered confirming the award of the Panel in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear the expense of the umpire. The remaining costs of the arbitration proceedings shall be allocated by the Panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8. In the event of subsequent actions or proceedings necessary to enforce the judgment entered thereon or any other rights flowing therefrom, the prevailing party shall be entitled to recover its reasonable attorney's fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9. Any suit, action, or other proceeding by or against either party to this Agreement, including any proceeding to compel arbitration, to confirm the arbitration award, or to enforce any remedy available to either party may be brought in the Circuit Court of the State of Florida, County of Marion, or in the United States District Court for the Middle District of Florida, and each of the parties hereto submits and consents to the nonexclusive jurisdiction of each such court for the purpose of any such suit, action or proceeding. The parties agree that process in any action or proceeding shall be personally served and that such service shall be sufficient to confer in personam jurisdiction over the party so served.

------

ARTICLE XI—INDEMNITY AGREEMENT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. MGA shall indemnify the Company and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below), made or instituted against or incurred by the Company or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of MGA or any Agent, or their employees or representatives, in connection with any obligations of MGA arising out of this Agreement including, but not limited to, any action or inaction of MGA concerning the termination of Agent(s) pursuant to all applicable laws. This Section 11.1 does not apply to the extent that the loss resulted from action or inaction of MGA, which is a result of acting in accordance with the written instructions of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. The Company shall indemnify MGA and its subsidiaries, successors, reinsurers and assignees, as well as their shareholders, directors, officers and agents against and in respect of any and all liabilities (as defined below) made or instituted against or incurred by MGA or such other indemnitees and which arise, either directly or indirectly, out of any action or inaction of the Company, or their employees or representatives, in connection with any obligations of the Company arising out of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. For purposes of this Article XI, "liabilities" means all claims, demands, actions, proceedings, liability, losses, damages, costs or expenses, including without limitation, attorneys' fees, disbursements and court costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4. The indemnification provisions of this Article XI do not apply to covered claims made under any policy issued in accordance with this Agreement nor with regard to the Claims Services, as set forth in Section 7.8. herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5. All indemnity obligations herein shall survive the termination or expiration of this Agreement.

ARTICLE XII - GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Survival. Article X on Arbitration, Section 9.6 on "run-off", and all other provisions of this Agreement that are pertinent to the "run-off" and the Claims Services to be rendered under Section 7.2.h. shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. Independent Contractor Relationship. Nothing herein shall create the relationship of employer and employee between the Company and MGA, it being understood and agreed that MGA is an independent contractor of the Company for the purposes set forth herein with all rights, powers and duties as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. Non-Assignable. Neither Company nor MGA may assign this Agreement or any part thereof to another person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. Subcontracting. MGA may subcontract or delegate its duties under this Agreement with other persons or entities, subject to the prior written consent of the Company, which consent may not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. Modification. This Agreement may not be changed, nor may any provision hereof be waived, except by a written document signed by both parties hereto which includes an effective date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. Non-Waiver. The failure of the Company or MGA to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of any rights contained herein or estop the parties from thereafter demanding full and complete compliance therewith, or prevent the parties from thereafter demanding full and complete compliance therewith, nor prevent the parties from exercising any right or remedy in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. Notice. Any notice required or permitted to be given under this Agreement shall be deemed duly given if delivered personally, or by a recognized courier service, or by registered or certified mail, return receipt requested, to the party for whom it is intended at the following address or such other address as the party may designate from time to time.

For MGA: TypTap Management Company

1000 Century Park Drive

Tampa, FL 33607

Attn: President

For the Company: Tailrow Risk Managers, LLC

3802 Coconut Palm Drive

Tampa, FL 33619

Attn: President

Notices shall be deemed given when delivered, or three days after delivery to the courier or mailing, as above provided.

12.8. Invalidity. If any provision of this Agreement should be found to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect.

12.9. Governing Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Florida. This Agreement shall be construed to comply with the laws and regulations of each Authorized Territory. In the event of any conflict between the provisions of this Agreement and the laws or regulations of an Authorized Territory, this Agreement shall be construed and enforced in compliance with the applicable laws and regulations of such Authorized Territory.

12.10. Assigns. Subject to the provisions of 12.3 hereof, this Agreement shall bind and benefit the successors and permitted assigns of the parties.

12.11. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

12.12. Compensation Waivers. The MGA may waive any compensation, reimbursements, fees or other amounts due from the Company anytime, in its sole discretion, by written notice to the Company.

------

**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written.

---

| | | |
|:---|:---|:---|
| TYPTAP MANAGEMENT COMPANY | TYPTAP MANAGEMENT COMPANY |  |
| BY: | /s/ Kevin Mitchell | Date: 11/5/2024 |
| Its: | Chief Executive Officer |  |
| TAILROW RISK MANAGERS, LLC | TAILROW RISK MANAGERS, LLC |  |
| BY: | /s/ Paresh Patel | Date: 11/5/2024 |
| Its: | Chief Executive Officer |  |
| TAILOROW INSURANCE EXCHANGE | TAILOROW INSURANCE EXCHANGE |  |
| Tailrow Risk Managers, LLC, its Attorney-in-Fact | Tailrow Risk Managers, LLC, its Attorney-in-Fact | Date: 11/5/2024 |
| By: | /s/ Paresh Patel |  |
| Its: | Chief Executive Officer |  |

---

------

SCHEDULE I

AUTHORIZED COVERAGES, TERRITORY

AND LIMITS OF COVERAGE

The MGA is authorized as respects:

Coverages: The MGA is authorized for all coverages for which the Company is licensed in each Authorized Territory.

Authorized Territory: Upon each of the Company and the MGA obtaining applicable licenses and authorization, the MGA shall be authorized to represent the Company in Florida.

Limits: The MGA is authorized to commit the Company to all coverages and limits as further described in the Company's Underwriting Manual as filed by the Company with its rate and form filing with each applicable governmental insurance regulatory authority in each Authorized Territory.

------

SCHEDULE II

COMPENSATION

FOR MGA SERVICES

Company and MGA agree to the following commission schedule for the MGA's services, excluding Claims Services, described in this Agreement and its Schedules with respect to Company's new and renewal business.

MGA shall retain 8.5% of the Reciprocal's Total Written Annual Premium as commission for its services, excluding Claims Services. Such commission shall be deducted from the premiums remitted to Company by MGA and adjusted on the 15th day after the end of each month during the term of the Agreement. These commissions will be adjusted when the Reciprocal's Total Written Annual Premium is determined and identified on the Reciprocal's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III

CLAIMS SERVICES

1. SERVICES

During the term of this Agreement, MGA shall be the exclusive provider of Claims Services for all reported and assigned claims of the Company for policies of insurance written by or through Company. MGA will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Company grants MGA the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by Company in addition to the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through the Company by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. MGA will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. MGA will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. MGA will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by the Company subject to the provisions of Section 7.5 of this Agreement. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. MGA will provide the Company with litigation management. MGA will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by the Company. The selection and retention of legal counsel shall be the Company's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, the MGA will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. The Company shall have the ultimate authority in establishing all reserves and all component aspects thereof. MGA shall consult with Company and provide written notice to Company in a timely manner with respect to any of the following:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against MGA or the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect
to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim MGA deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $250,000. MGA shall forward a copy of
such claim file to Company at its request. Company grants MGA claims settlement authority up to $250,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns,
poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. MGA will order checks and vouchers from Company and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $250,000, MGA will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, the Company. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by MGA, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $250,000 or less, Company has agreed to establish, maintain and fund a separate bank account from which MGA may draw against as hereinafter set forth (the "Claim Account"). MGA shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

Company agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow MGA to carry out its obligations under this Agreement. Company shall provide to MGA such information as is necessary for MGA to draw checks on the Claim Account.

MGA AND COMPANY WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $250,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

MGA hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by Company. Any check prepared by MGA on the Claim Account must be signed by authorized individuals.

------

MGA shall promptly transmit any monies collected through salvage and subrogation to the Company, and maintain a register of all such collections in a register (the "Salvage and Subrogation Register"). The Salvage and Subrogation Register shall include, but shall not be limited to, the following information: date of receipt of funds, the claim number, the payer, and the amount of such payment.

The MGA shall have a duty of fiduciary responsibility to Company as to all money of the Company coming into the possession or control of the MGA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. MGA will periodically review the development of the claims handling procedure with the Company to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. MGA will diligently pursue and prosecute Company's salvage and subrogation rights relating to any losses. MGA will use reasonable efforts to collect funds arising from the enforcement of such rights.

2. LOCATION OF PROVISION OF SERVICES:

As mutually agreed upon by the Company and MGA.

------

SCHEDULE III A

FEES APPLICABLE TO CLAIMS SERVICES

AIF and MGA agree to the following fee schedule for the Claims Services described in this Agreement and its Schedules.

AIF shall pay MGA 2.5% of the Reciprocal's Total Written Annual Premium including premiums assumed from Citizens Property Insurance Corporation or any other entity for Claims Services rendered by MGA. Such fees shall be payable on the 15th day of each month during the term of the Agreement. These fees will be adjusted when the Reciprocal' s Total Written Annual Premium is determined and identified on the Reciprocal's annual statement filed with the Florida Office of Insurance Regulation. Any balance due from these adjustments shall be paid to the other party no later than March 15th of the year in which such annual statement is due and filed.

The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 7.7. of the Agreement. The above fees do not apply to class action suits, catastrophic events or subrogation or salvage activities.

Total Written Annual Premium shall exclude the MGA policy fee of $25.00 per policy, or other non-commissionable fees.

------

SCHEDULE III B

SUBROGATION COMPENSATION

On a monthly basis, the AIF shall pay MGA 50% of all gross subrogation and salvage amounts recovered by MGA.

------

SCHEDULE III C

FEES FOR CATASTROPHE CLAIMS SERVICES

The AIF shall pay to the MGA per claim fees for the administration and management of catastrophe claims. The per claim fee will be $1,200 plus 10% of the amount expended for indemnification of the loss. The fees will be due on the 15<sup>th</sup> day of each month based upon claims reported and amounts paid during the previous calendar month.

## Exhibit 10.12

**Exhibit 10.12** 

**CLAIMS SERVICES** 

**AGREEMENT** 

THIS CLAIMS SERVICES AGREEMENT (together with all exhibits and other attachments hereto, the "Agreement") is executed on this November 5, 2024 with an effective date of November 5, 2024 ("Effective Date"), by and between Griston Claim Management, Inc. ("Griston") and TypTap Management Company ("TMC")(each a "Party" and collectively the "Parties").

<u>Background Statement</u> 

TMC is the managing general agency for Tailrow Risk Managers, LLC, the attorney -in-fact for Tailrow Insurance Exchange (collectively, the "Reciprocal"). By this Agreement, TMC desires to obtain from Griston services in insurance claims management for policies of insurance written by or through the Reciprocal and for which TMC has ultimate responsibility to the customers of its insurance business (the "Claims Services"); and Griston desires to provide the Claims Services to TMC upon the terms and conditions set forth in this Agreement. In reliance upon the foregoing background statement and in consideration for the representations, warranties and performance of the obligations contained herein, Griston and TMC mutually agree to the following terms and conditions.

<u>Terms and Conditions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Services.</u> TMC grants Griston the authority to investigate, evaluate, handle, adjust and settle each claim assigned according to applicable state law, the terms and conditions of the policy and any written standards that may be provided by TMC in addition to the provisions of this Agreement. During the term of this Agreement, Griston shall be the exclusive provider of Claims Services for all reported and assigned claims of TMC for policies of insurance written by or through the Reciprocal. Griston will provide the services and general management of these Claims Services described herein for subject claims as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Griston will utilize and enter TMC claims data into a claims administration system as directed by TMC in a timely manner. Griston will provide TMC with access, at no cost to TMC, to the claims administration system on a 24 hours a day, seven days a week basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Loss reporting will be by Internet, fax, or phone. Losses may be reported 24 hours a day. The Internet, fax and phone reporting will be checked for new losses every two hours from 8:00 AM until 11:00 PM.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Coverage will be verified on all cases through TMC by procedures mutually agreed upon, in writing, by the parties. Contact will be made with claimant or insured within 24 hours of loss reporting, excluding catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Griston will administer the appraisal/assessment process and will use in this endeavor a combination of staff, adjusters, and appraisers. The Claims Services shall use only licensed adjusters, and licensed private investigators, or catastrophic adjusters, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Griston will perform all reasonable, necessary and customary administrative and clerical work in connection with claim or loss reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Griston will establish and maintain a claim file for each reported claim or loss with a copy of the policy for each reported claim. The claim file will have an activity log which shall be reviewable at any and all reasonable times by TMC. Catastrophe claims will not require an activity log.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Griston will provide TMC with litigation management. Griston will work with counsel to determine the best course of action within a reasonable budget within the scope of authority granted by TMC. The selection and retention of legal counsel shall be TMC's sole prerogative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. For non-catastrophic claims, Griston will enter in its claims administration system each claim and a recommended reserve within 48 hours which initial reserves will be a statistical reserve and adjusted within 14 days based upon adjuster's inspection of damages. TMC shall have the ultimate authority in establishing all reserves and all component aspects thereof. Griston shall consult with TMC and provide written notice to TMC in a timely manner with respect to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any loss or claim resulting in legal action being instituted against Griston, TMC or the Reciprocal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any loss or claim causing a complaint to be filed with any regulatory authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any inquiry from any regulatory authority, including but not limited to, any insurance department, with respect
to any claim or claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any claim Griston deems appropriate to deny policy coverage or involves a coverage dispute;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any claim which might ultimately result in the payment(s) in excess of $25,000. Griston shall forward a copy of
such claim file to TMC at its request. TMC grants Griston claims settlement authority up to $25,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any open claim that involves an allegation of extra-contractual obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any claim involving a fatality, amputation, spinal cord or brain damage, loss of eyesight, extensive burns,
poisoning, or multiple fractures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any claim involving a minor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) any claim involving a claim of bad faith or seeking class action certification.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Griston will perform periodic review (at least semi-annually) at mutually agreed upon intervals of outstanding claim reserves, and recommend changes to outstanding claim reserves.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Griston will order checks and vouchers from TMC and will prepare all compromises, releases, agreements and any other documents reasonably necessary to finalize and close claims. For settlements of less than $25,000, Griston will issue payments of claims and allocated loss adjustment expenses only on checks of, and as authorized by, TMC or the Reciprocal. A check in payment of a claim shall be issued within 48 hours after claim is determined payable by Griston, except in the event of a catastrophic event.

For purposes of settling claims and paying claim-related expenses for claims of $25,000 or less, TMC has agreed to establish, maintain and fund a separate bank account from which Griston may draw against as hereinafter set forth (the "Claim Account"). Griston shall not retain more than 60 days of estimated claims payments and allocated loss adjustment expenses in the Claim Account. The Claim Account will be held in a fiduciary capacity in a bank mutually agreed upon by Griston and TMC. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation.

TMC agrees to deposit additional funds into the Claim Account on a weekly basis if necessary to maintain it at a level sufficient to allow Griston to carry out its obligations under this Agreement. TMC shall provide to Griston such information as is necessary for Griston to draw checks on the Claim Account.

GRISTON AND TMC WILL PREPARE PROCEDURES FOR THE PAYMENT OF CLAIMS IN EXCESS OF $25,000 WHICH WRITTEN PROCEDURES SHALL BE ATTACHED TO THIS AGREEMENT AND BE DEEMED INCORPORATED HEREIN BY REFERENCE.

Griston hereby agrees to prepare, sign and issue checks in accordance with the procedures adopted by TMC. Any check prepared by Griston on the Claim Account must be signed by authorized individuals.

Griston shall have a duty of fiduciary responsibility to TMC as to all money of TMC coming into the possession or control of Griston.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Service standards and claims documentation will be in compliance with all state regulations dealing with the adjusting and handling of claims. Griston will periodically review the development of the claims handling procedure with TMC to identify problems and recommend corrective action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Griston will diligently pursue and prosecute TMC's salvage and subrogation rights relating to any losses. Griston will use reasonable efforts to collect funds arising from the enforcement of such rights.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Fees.</u> TMC agrees to pay Claim Services fees as specified in Exhibit A of this Agreement. TMC may amend or replace the Exhibits at any time by delivery of written notice to Griston. In that event, the amended or replacement Exhibit will govern as to all claims received after the date of delivery of the amended or replaced Exhibit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Allocated Loss Adjustment Expenses.</u> In addition to the fees described in Section 2.1 of this Agreement, all Allocated Loss Adjustment Expenses will be paid by TMC or the Reciprocal. For purposes of this Agreement, Allocated Loss Adjustment Expense(s) shall mean any expense which is chargeable or attributable to the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of any claim(s) or action(s) related thereto, or to the protection and/or perfection of TMC or the Reciprocal's and/or its insured's right of subrogation, contribution or indemnification. Allocated Loss Adjustment Expense(s) includes, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Attorney's fees and disbursements incurred (including plaintiff's fees when awarded and not
included as a portion of the loss or indemnity paid by TMC or the Reciprocal) in connection with the determination of coverage and/or the adjustment, defense, negotiation or settlement of any claim; attorney's fees incurred for representation
at depositions, hearings, pretrial conferences and/or trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Costs incurred in handling any Alternative Dispute resolution proceeding ("ADR"), legal actions,
including trials or appeals, or in pursuing any declaratory judgment action, including deposition fees, cost of appeal bonds, court reporter or stenographic service fees, filing fees, and other court costs, fees and expenses, transcript or printing
costs and all discovery expenses; fees for service of process; fees for witnesses' testimony, opinions, or attendance at hearings or trial;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Statutory fines or penalties; pre- and post-judgment interest paid as a
result of litigation, unless legal requirements define such interest as indemnity payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fees and travel expenses of independent and Griston adjusters, automobile and property appraisers, to the
extent that same are incurred in the adjustment, negotiation, settlement or defense of any claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Experts' fees including reconstruction experts, engineers, cause and origin reports, photographers,
accountants, economists, metallurgists, cartographers, architects, handwriting experts, physicians, appraisers and other natural and physical science experts, plus the costs associated with preparation of expert reports, depositions, and testimony;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Fees for surveillance, undercover operative and detective services or any other investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Costs for medical examinations, or autopsies, including diagnostic services, and related transportation costs,
fees for medical reports and rehabilitation evaluations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Costs for any public records, medical records, credit bureau reports, and other like reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Costs and expenses incurred where Griston determines it is reasonable to pursue the rights of contribution,
indemnification or subrogation of TMC or the Reciprocal and/or its insured, including attorney and collection agency fees and/or expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Medical or vocational rehabilitation expenses, and all other medical cost containment services, including, but
not limited to, utilization review, pre-audit admission authorization, hospital bill audit or adjudication, provider bill audit or adjudication, and review of medical case management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Extraordinary travel and related expenses incurred by Griston at the express written request and approval of a
TMC officer, which are not otherwise payable under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. With respect to Griston's determination that an expense(s) incurred pursuant to this Agreement is an
Allocated Loss Adjustment Expense, Griston makes no representation or warranty and assumes no responsibility that such determination (i) is in compliance with or meets the requirements of any statistical plan filing, statutory, regulatory, or
insurance industry reporting scheme or the definition of the Allocated Loss Adjustment Expense thereunder; (ii) is or could be characterized as payment of loss or indemnity; or (iii) is or is not subject to insurance or reinsurance
coverage or limits. TMC agrees that it is responsible for making all such judgments and for complying with any and all such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term and Termination</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Term.</u> The term of this Agreement will commence on the Effective Date and will expire five years thereafter (the "Term"). The Term will automatically renew for additional one-year periods upon the expiration of the initial term and each renewal term, unless terminated in accordance herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Termination by Notice.</u> TMC may terminate this Agreement upon six months written notice.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Termination for Non-Performance</u>. In the event that either Party breaches any of the terms hereof, then either Party (whether in breach or not) may terminate this Agreement upon thirty days written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Return of TMC Materials after Termination.</u> After termination or expiration of this Agreement, Griston will use reasonable efforts to assist TMC with copying TMC's policyholder information or other materials from Griston's systems prior to deletion of any such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Survival of Expiration or Termination.</u> Sections 2 (Fees), 4 (Confidentiality), 5 (Indemnity Obligations), and any other provisions expressly or implicitly intended to survive termination or expiration of this Agreement will survive any termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Confidentiality.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Confidential Information.</u> For the purposes of this Agreement, "Confidential Information" means information about the disclosing Party's (or its Affiliates' or suppliers') business or activities that is proprietary and confidential, which will include all policyholder information, agent information, and all business, financial, technical and other information of a Party which is either marked or designated by such Party as "confidential" or "proprietary" or which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential, and the terms of and performance under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Not Confidential Information.</u> Confidential Information will not include information that (i) is in or enters the public domain without breach of this Agreement, (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation, (iii) the receiving Party knew prior to receiving such information from the disclosing Party, or (iv) the receiving Party develops independently without use of or reference to any Confidential Information of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Obligations.</u> Each Party agrees (i) that it and its employees will not (a) disclose Confidential Information of the other Party to, and will prevent disclosure to, any other individual, association or legal entity or (b) use any Confidential Information disclosed to it by the other Party except as expressly permitted in this Agreement and (ii) that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Exceptions.</u> Notwithstanding the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or otherwise as required by law; provided, however that the Party required to so disclose Confidential Information of the other Party will use commercially reasonable efforts to minimize such disclosure and will provide written notice of such disclosure and consult with and assist the other Party, at the other Party's expense, in obtaining a protective order prior to such disclosure or (ii) on a "need-to-know" basis under an obligation of confidentiality to its legal counsel, accountants, banks and other financing sources and their advisors.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnity Obligations.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Indemnity</u>. Each Party will indemnify, defend and hold harmless the other Party hereto and its Affiliates and the respective officers, directors, consultants, agents and employees of each from and against any and all claims, suits, liability, damages and/or costs (including but not limited to, attorneys' fees) arising from the first Party's breach of any warranty, representation or obligation under this Agreement. In order for any to be indemnified hereunder for any claim, such Party must notify the other Party within twelve months of the earlier of: (i) the date the first Party first became aware of the claim: or (ii) the date such Party should have become aware of the claim using reasonable due diligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Adequate Remedy.</u> The Parties agree that any breach of either of the Parties' obligations regarding confidentiality may result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any breach or threatened breach of a Party's obligations regarding the other Party's confidentiality, the aggrieved Party will be entitled to seek injunctive relief, in addition to any other remedies to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>General.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Relationship.</u> This Agreement is not intended to create, and will not be deemed or treated as creating, a partnership, franchise, joint venture, employment contract or any other relationship between the Parties other than the independent contractor relationship expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Governing Law and Venue.</u> This Agreement will be governed by the laws of the State of Florida, without giving effect to applicable conflict of laws provisions. With respect to any litigation arising out of or relating to this Agreement, each Party agrees that it will be filed in and heard by the Circuit Court in and for Hillsborough County, Florida or the United States District Court for the Middle District of Florida, Tampa Division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Entire Agreement; Amendments.</u> This Agreement, including any exhibits and other attachments thereto, constitutes the entire understanding and agreement with respect to the subject matter, and supersedes any and all prior or contemporaneous representations, understandings and agreements whether oral or written between the Parties relating to the subject matter of this Agreement, all of which are merged in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Construction</u>. This Agreement will be construed without regard to which Party was responsible for its preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words "Agreement," "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any particular provision of this contract. Whenever the word "include," "includes" or "including" is used in this Agreement, it will be deemed to be followed by the words "without limitation." The various headings contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Severability.</u> If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term will be replaced with another term consistent with the purpose and intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <u>Counterparts.</u> This Agreement may be executed in one or more counterparts, each of which will be deemed an original of this Agreement, and all of which together will be deemed the same Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <u>Assignment.</u> Griston may not assign this Agreement or transfer any of Griston's rights or obligations under this Agreement to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <u>Notice.</u> Notices required or permitted by this Agreement will be provided to the other Party in writing. Electronic mail (email) is acceptable for written notice except that the Parties must provide any written communications related to Section 5 or any legal dispute between Griston and TMC by certified mail to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <u>Force Majeure.</u> Neither Party will be responsible to the other Party for any failure or breach of this Agreement caused by an act of God; astronomical event; disease or pandemic; war, hostility, insurrection, or other widespread violence; riot or political instability; work stoppage; government action or change in applicable law; or any other circumstance outside the reasonable control of the affected Party. If any force majeure event continues for more than 30 days and the affected Party is unable to remedy the failure or breach of this Agreement caused by the force majeure event, the Party affected by the force majeure event may terminate this Agreement immediately upon written notice to the other Party.

The Parties have duly executed this Agreement by the authorized signatures below.

---

| | |
|:---|:---|
| Griston Claim Management, Inc. | Griston Claim Management, Inc. |
| By: | /s/ Paresh Patel |
| Name: | Paresh Patel |
| Title: | Chief Executive Officer |
| TypTap Management Company | TypTap Management Company |
| By: | /s/ Kevin Mitchell |
| Name: | Kevin Mitchell |
| Title: | Chief Executive Officer |

---

------

EXHIBIT A

FEES FOR CLAIMS SERVICES

For Claims Services described in this Agreement, TMC will pay to Griston (i) $1,200 plus 4% of the amount expended for indemnification of the loss per claim handled by Griston; and (ii) $5,000 plus 4% of the amount expended for indemnification of the loss per litigated claim handled by Griston. These fees shall accrue when a claim or litigated claim is received by Griston and will be payable on the 15th day of each month during the term of the Agreement. The above fees do not include Allocated Loss Adjustment Expenses as defined in Section 2.2 of this Agreement.

## Exhibit 10.13

**Exhibit 10.13** 

**Agreement to Allocate United States Federal Income Tax Liability** 

This Tax Allocation Agreement is made and entered into by and among HCI Group, Inc. ("Parent") and each of the subsidiaries listed below (referred to herein individually as a "Subsidiary" and the group of subsidiaries is collectively referred to herein as the "Subsidiaries").

**RECITALS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Parent is the parent of an affiliated group of corporations (within the meaning of Section 1504(a) of the
Internal Revenue Code of 1986, as amended (the "Code")) and each of the Subsidiaries are included as corporations in such affiliated group (the "Group").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Subsidiaries are included in the Group's consolidated federal income tax returns for the taxable year
ended December 31, 2024, and for all future taxable years for which they are eligible to be so included (the "Consolidated Period").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Parent and each Subsidiary wish to allocate the consolidated federal income tax liability of the Group among
the members of the Group as provided herein.

NOW THEREFORE, in consideration of the covenants and agreements contained herein, the parties agree that the recitals set forth above are adopted and made part of this Agreement and further agree as follows:

**AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>Consolidated Return Election and Preparation</u>** 

Parent and the Subsidiaries will file consolidated federal income tax returns so long as they are eligible to file such returns. Parent and the Subsidiaries agree to file such consents, elections and other documents and take such other actions as may be necessary or appropriate to carry out the purposes of this Item 1. For any taxable year for which a consolidated federal income tax return is filed, Parent agrees to prepare or cause to be prepared and to file such returns and other appropriate documents as may be necessary on behalf of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>Subsidiary Tax Payments</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Subsidiaries shall compute a separate return liability for each taxable year and pay an amount
equal to such separate return tax liability to Parent. Each Subsidiary's separate return tax liability for any taxable year shall be equal to the tax liability (Including any alternative minimum tax) such Subsidiary would have incurred had it
not been included in a consolidated federal income tax return with Parent, as the common parent, and had it filed a federal income tax return on a separate basis for each such year that it was a member of the Group. The separate return tax liability
of each of the Subsidiaries shall be determined in a manner consistent with the methods of accounting and with any elections made in computing the consolidated income tax liability of the Group.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Subsidiary incurs a tax loss, or generates a tax credit, that cannot be utilized to offset the current
year separate return tax liability, the Subsidiary shall be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Subsidiary shall first be entitled to a tax benefit from the Parent to the extent that the separate company
loss or credit, or any portion thereof, could be carried back on a separate company basis and generate a refund as if the Subsidiary had filed separate returns in the carryback period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent that the Subsidiary is not able to fully utilize its separate company loss or credit through
carryback to prior years on a separate company basis, it shall be entitled to a tax benefit from Parent to the extent such loss or credit that is not utilized pursuant to 2(b)i) reduces the current or prior year consolidated tax of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent that the Subsidiary is not able to fully utilize its separate company loss or credit through
carryback to a prior year on a separate company basis pursuant to 2(b)(i), or against the current or prior year consolidated tax of the Group pursuant to 2(b)(ii), it shall be entitled to carry forward such unutilized loss or credit on a separate
company basis to offset its future separate company tax, or the consolidated tax of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Appropriate adjustments shall be made to avoid a duplication or omission as a result of the differences between
this agreement and prior Tax Allocation Agreements of the Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.**  **<u>Timing and Method of Payment</u>** 

Payments under Item 2 by each Subsidiary to Parent may, at Parent's discretion, be made on a quarterly basis (within 30 days of the date on which instalments of estimated tax would have been due had each Subsidiary filed its federal income tax return on a separate basis) based on estimates of each Subsidiary's separate return tax liability for the period. If a Subsidiary's separate return liability as finally determined for the taxable year exceeds the payments made for such year, the remainder of the separate return liability shall be paid to Parent within 60 days after the statutory due date for the consolidated federal return. However, if the sum of all payments for any year exceeds a Subsidiary's separate return tax liability as finally determined for the year, Parent shall pay the excess to such Subsidiary within 60 days after the statutory due date for the consolidated federal income tax return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.**  **<u>Subsequent Adjustment</u>** 

If any item of income, gain, loss, deduction or credit of any Subsidiary is changed or adjusted for any taxable year, then the amount of the payment made under this Agreement shall be adjusted, in accordance with the principles of this Agreement, to conform with the final determined item of income, gain, loss, deduction or credit. Any interest and penalties paid or received with respect to

------

such adjustments shall be paid or received by Parent, and not allocated to the Subsidiaries. All payments under this Item 4 shall be made within 30 days after the latter of (i) final resolution of any matters with either the internal Revenue Service or in court or (ii) receipt of refunds/payment of taxes due. However, in the event that advance payments of tax deficiencies due or contested are deemed appropriate by Parent, payments under this Item 4 attributable to such advance payments shall be made with 30 days of when such advance payments are paid to the government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.**  **<u>Termination</u>** 

This Agreement shall terminate between parent and any Subsidiary if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Parent and such Subsidiary agree in writing to such termination: or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Subsidiary's membership in the Group ceases or is terminated.

In the event that a Subsidiary ceases to be included within the Group (a "Deconsolidation"), the rights and obligations of such Subsidiary under this Agreement shall survive for any period for which such Subsidiary was a member of the Group. The termination of this Agreement as to any Subsidiary in accordance with the provisions of this Item 5 hereof shall not affect this Agreement in regard to Parent and any other Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.**  **<u>Assignability</u>** 

This Agreement shall not be assignable by Parent or any Subsidiary without the written consent of the other parties and any such assignment shall be void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.**  **<u>Effective Date</u>** 

This Agreement shall be effective for each of the undersigned Subsidiaries as applicable, for all taxable years ending on or after December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.**  **<u>New Members</u>** 

This Agreement shall apply to any corporation which becomes a member of the Group effective as on the date such corporation became a member of the Group upon (a) the receipt of any required regulatory approval or non-approval and (b) the execution and delivery of a joiner agreement under which such corporation agrees to be bound by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.**  **<u>Miscellaneous Provisions</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement has been made in and shall be construed and enforced in accordance with the laws of the State of
Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall be binding upon and inure to the benefit of each party hereto and their respective
successors and assigns.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement may be executed simultaneously in two or more counterparts each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The parties hereto hereby agree that the terms of this Agreement are fair and reasonable.

IN WITNESS WHEREOF, the parties hereto have caused the Agreement to be duly executed as of the day and year first above written.

---

| | |
|:---|:---|
| HCI Group, Inc. | HCI Group, Inc. |
| By: | /s/ James Mark Harmsworth |
|  | James Mark Harmsworth |
| Title: | Chief Financial Officer |
| Date: | 2/13/2025 |

---

**SUBSIDIARIES**

Homeowners Choice Property and Casualty Insurance Company, Inc. 20-8490865

Homeowners Choice Managers, Inc. 20-5961438

TypTap Insurance Group, Inc. 85-2578837

TypTap Insurance Company 81-0922384

TypTap Management Company 81-091479

Cypress Property Management Services, Inc. 45-1824621

Cypress Claims Services, Inc. 27-3299614

Southern Administration, Inc. 26-1094827

Claddaugh Casualty Insurance Company, Ltd. 98-0607268

HCI Technical Resources, Inc. 45-4280748

Omega Insurance Agency, Inc. 45-5011464

Exzeo USA, Inc. 46-0932198

Cypress Tech Development Company, Inc. 45-5565379

Treasure Island Restaurant Company, Inc. 45-4917580

TI Marina Company, Inc. 45-4929616

Enclave Services, Inc. 82-2085342

Griston Claim Services, Inc. 83-1614364

Griston Claim Management, Inc. 84-4239005

perRisk Insurance Company 92-1692330

Tailrow Insurance Company 92-3903895

HCI Ins Administration Services, Inc. 35-2646744

Tailrow Funding, LLC 33-1748972

Tailrow Risk Managers, LLC 99-4162471

------

The following subsidiaries are single member limited liability companies (SMLLC's) which are disregarded for federal income tax purposes. The activity of each of these entities is reported on the federal income tax return of HCI Group, Inc. and each is considered a subsidiary for purposes of complying with this Agreement to Allocate the United States Federal Income Tax Liability.

TV Investment Holdings, LLC 45-1746038 (SMLLC 100% owned by HCI Group, Inc.)

Greenleaf Capital, LLC 45-1292300 (SMLLC 100% owned by HCI Group, Inc.)

Core Risk Managers, LLC 43-4073346 (SMLLC 100% owned by HCI Group, Inc.)

Dark Horse Re, LLC 99-0573999 (SMLLC 100% owned by TypTap Insurance Group, Inc.)

HCPCI Holdings, LLC 27-2292362 (SMLLC 100% owned by Greenleaf Capital, LLC)

Gators on the Pass Holdings, LLC 45-4804547 (SMLLC 100% owned by Greenleaf Capital, LLC)

John's Pass Marina Investment Holdings, LLC 45-4804727 (SMLLC 100% owned by Greenleaf Capital, LLC)

JP Beach Holdings, LLC 45-4804435 (SMLL 100% owned by Greenleaf Capital, LLC)

Pass Investment Holdings, LLC 45-4804890 (SMLLC 100% owned by Greenleaf Capital, LLC)

Silver Springs Property Investments, LLC 37-1714125 (SMLLC 100% owned by Greenleaf Capital, LLC)

Melbourne FMA, LLC 47-1886333 (SMLLC 100% owned by Greenleaf Capital, LLC)

Sorrento PBX, LLC 61-1776369 (SMLLC 100% owned by Greenleaf Capital, LLC)

Century Park Holdings, LLC 38-4049380 (SMLLC 100% owned by Greenleaf Capital, LLC)

Gulf to Bay LM, LLC 32-0568867 (SMLLC 100% owned by Greenleaf Capital, LLC)

Greenleaf Essence, LLC 47-3742220 (SMLLC 100% owned by Greenleaf Capital, LLC)

Green Street JV, LLC 47-3742531 (SMLLC 100% owned by Greenleaf Essence, LLC)

Big Bend Lincoln SWC, LLC 47-3742946 (SMLLC 100% owned by Green Street JV, LLC)

FMKT Mel Owner, LLC 47-1864004 (SMLLC 100% owned by Melbourne FMA, LLC)

Westview Holdings, LLC 36-4931002 (SMLLC 100% owned by Greenleaf Capital, LLC)

Coconut Palm Property Holdings, LLC 85-0546756 (SMLLC 100% owned by Greenleaf Capital, LLC)

Sage Property Advisors, LLC 85-1681072 (SMLLC 100% owned by Greenleaf Capital, LLC)

Grove Haines City, LLC 61-2109718 (SMLLC 100% owned by Greenleaf Capital, LLC)

Corporate Oaks Property Holdings, LLC 93-4919447 (SMLLC 100% owned by Greenleaf Capital, LLC)

## Exhibit 10.14

**Exhibit 10.14** 

**TYPTAP INSURANCE GROUP, INC.** 

**2021 EQUITY INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purposes, History and Effective Date.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Purpose*. The TypTap Insurance Group, Inc. 2021 Equity Incentive Plan has two complementary purposes: (i) to attract and retain outstanding individuals to serve as officers, directors, employees and consultants and (ii) to increase shareholder value. The Plan will provide participants incentives to increase shareholder value by offering the opportunity to acquire shares of the Company's common stock, receive monetary payments based on the value of such common stock, or receive other incentive compensation, on the potentially favorable terms that this Plan provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Effective Date*. This Plan will become effective, and Awards may be granted under this Plan, on and after the Effective Date, subject as to any Awards that are Incentive Stock Options to approval of the Plan by the shareholders of the Company within twelve (12) months of the Effective Date. Any Incentive Stock Options granted under the Plan prior to such shareholder approval shall be conditioned on such approval. This Plan will terminate as provided in Section 15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***2.* Definitions.** Capitalized terms used and not otherwise defined in this Plan or in any Award agreement have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Act" means the Securities Act of 1933, as amended from time to time. Any reference to a specific provision of the Act shall include any successor provision thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Administrator" means the Board or the Committee; *provided* that, to the extent the Board or the Committee has delegated authority and responsibility as an Administrator of the Plan to one or more committees or officers of the Company as permitted by Section 3(b), the term "Administrator" shall also mean such committee, committees, officer or officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Affiliate" has the meaning ascribed to such term in Rule 12b-2 under the Exchange Act. Notwithstanding the foregoing, for purposes of determining those individuals to whom an Option or a Stock Appreciation Right may be granted, the term "Affiliate" means any entity that, directly or through one or more intermediaries, is controlled by or is under common control with, the Company within the meaning of Code Sections 414(b) or (c); *provided* that, in applying such provisions, the phrase "at least 20 percent" shall be used in place of "at least 80 percent" each place it appears therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Applicable Exchange" means the Nasdaq Stock Market, the New York Stock Exchange or such other exchange or automated trading system on which the Stock is principally traded at the applicable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Articles of Incorporation" means the articles of incorporation of the Company, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Award" means a grant of Options, Stock Appreciation Rights, Performance Shares, Performance Units, Stock, Restricted Stock, Restricted Stock Units, an Incentive Award, Dividend Equivalent Units or any other type of award permitted under this Plan. Any Award granted under this Plan shall be provided or made in such manner and at such time as complies with the applicable requirements of Code Section 409A to avoid a plan failure described in Code

------

Section 409A(a)(1), including, without limitation, deferring payment to a specified employee or until a specified distribution event, as provided in Code Section 409A(a)(2), and the provisions of Code Section 409A are incorporated into this Plan to the extent necessary for any Award that is subject to Code Section 409A to comply therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Beneficial Owner" means a Person, with respect to any securities which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Person or any of such Person's Affiliates has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person's Affiliates until such tendered securities are accepted for purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Person or any of such Person's Affiliates, directly or indirectly, has the right to vote or dispose of or has "beneficial ownership" of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Act), including pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this clause (ii) as a result of an agreement, arrangement or understanding to vote such security if the agreement, arrangement or understanding: (A) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations under the Act and (B) is not also then reportable on a Schedule l3D under the Act (or any comparable or successor report); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person's Affiliates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (ii) above) or disposing of any voting securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Board" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Cause" shall have the same meaning as set forth in a Participant's employment agreement or individual Award with the Company, or, if the Participant does not have an employment agreement with the Company (or the Participant's individual Award does not otherwise define the term), "Cause" shall mean a good faith finding by the Company that the Participant has (i) failed, neglected, or refused to perform the lawful employment duties related to the Participant's position or as from time to time assigned to the Participant (other than due to disability within the meaning of Code Section 22(e)(3)); (ii) committed any willful, intentional, or grossly negligent act having the effect of injuring the interest, business, or reputation of the Company or any Affiliate; (iii) violated or failed to comply in any material respect with the Company's or an Affiliate's published rules, regulations, or policies, as in effect or amended from time to time, to the extent applicable to the Participant; (iv) committed an act constituting a felony or misdemeanor involving moral turpitude, fraud, theft, or dishonesty; (v) misappropriated or embezzled any property of the Company or an Affiliate (whether or not an act constituting a felony or misdemeanor); or (vi) breached any material provision of any applicable confidentiality, non-compete, non-solicit, general release, covenant not-to-sue, or other agreement with the Company or any Affiliate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Change of Control" means, unless specified otherwise in an Award agreement, the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Person (other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any of its subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, (D) any Investor or (E) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock in the Company ("Excluded Persons")) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after the Effective Date, pursuant to express authorization by the Board that refers to this exception) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the following individuals cease for any reason to constitute a majority of the number of directors of the Company then serving: (A) individuals who, on the Effective Date, constituted the Board and (B) any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Act) whose appointment or election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the Effective Date, or whose appointment, election or nomination for election was previously so approved (collectively the "Continuing Directors"); provided, however, that individuals who are appointed to the Board pursuant to or in accordance with the terms of an agreement relating to a merger, consolidation, or share exchange involving the Company (or any direct or indirect Subsidiary of the Company) shall not be Continuing Directors for purposes of this Agreement until after such individuals are first nominated for election by a vote of at least two-thirds (2/3) of the then Continuing Directors and are thereafter elected as directors by the shareholders of the Company at a meeting of shareholders held following consummation of such merger, consolidation, or share exchange; and, provided further, that in the event the failure of any such persons appointed to the Board to be Continuing Directors results in a Change of Control, the subsequent qualification of such persons as Continuing Directors shall not alter the fact that a Change of Control occurred; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consummation of a merger, consolidation or share exchange of the Company with any other corporation or the issuance of voting securities of the Company in connection with a merger, consolidation or share exchange of the Company (or any direct or indirect Subsidiary of the Company), in each case, which requires approval of the shareholders of the Company, other than (A) a merger, consolidation or share exchange which would result in the voting securities of the Company outstanding immediately prior to such merger, consolidation or share exchange continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least fifty percent (50%) of the combined

------

voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger, consolidation or share exchange, or (B) a merger, consolidation or share exchange effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than an Excluded Person) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after the Effective Date, pursuant to express authorization by the Board that refers to this exception) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consummation of a plan of complete liquidation or dissolution of the Company or a sale or disposition by the Company of all or substantially all of the Company's assets (in one transaction or a series of related transactions within any period of twenty-four (24) consecutive months), in each case, which requires approval of the shareholders of the Company, other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity at least seventy-five percent (75%) of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.

Notwithstanding the foregoing, no "Change of Control" shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to own, directly or indirectly, in the same proportions as their ownership in the Company, an entity that owns all or substantially all of the assets or voting securities of the Company immediately following such transaction or series of transactions.

Notwithstanding the foregoing, if an Award is considered deferred compensation subject to the provisions of Code Section 409A, and if a payment under such Award is triggered upon a "Change of Control," then the foregoing definition shall be deemed amended as necessary to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Code" means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision and the regulations promulgated under such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Committee" means the Compensation Committee of the Board, any successor committee thereto or such other committee of the Board that is designated by the Board with the same or similar authority. The Committee shall consist only of Non-Employee Directors (not fewer than two (2)) to the extent necessary for the Plan and Awards to comply with Rule 16b-3 promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Company" means TypTap Insurance Group, Inc., a Florida corporation, or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Director" means a member of the Board.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Disability" means, unless otherwise defined in the applicable Award agreement, a finding of disability under the long term disability plan sponsored by the Company or an Affiliate in which the Participant participates. Notwithstanding the foregoing, for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Dividend Equivalent Unit" means the right to receive a payment, in cash or Shares, equal to the cash dividends or other cash distributions paid with respect to a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Effective Date" means the date on which the Board adopts the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Exchange Act" means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes any successor provision and the regulations and rules promulgated under such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Fair Market Value" means a price that is based on the opening, closing, actual, high or low sale price, or the arithmetic mean of selling prices of, a Share, on the Applicable Exchange on the applicable date, the preceding trading day, the next succeeding trading day, or the arithmetic mean of selling prices on all trading days over a specified averaging period weighted by volume of trading on each trading day in the period that is within 30 days before or 30 days after the applicable date, as determined by the Administrator in its discretion; provided that, if an arithmetic mean of prices is used to set a grant price or an exercise price for an Option or Stock Appreciation Right, the commitment to grant the applicable Award based on such arithmetic mean must be irrevocable before the beginning of the specified averaging period in accordance with Treasury Regulation 1.409A-1(b)(5)(iv)(A). The method of determining Fair Market Value with respect to an Award shall be determined by the Administrator and may differ depending on whether Fair Market Value is in reference to the grant, exercise, vesting, settlement, or payout of an Award; provided that, if the Administrator does not specify a different method, the Fair Market Value of a Share as of a given date shall be the closing sale price as of the trading day immediately preceding the date as of which Fair Market Value is to be determined or, if there shall be no such sale on such date, the next preceding day on which such a sale shall have occurred. If the Stock is not traded on an established stock exchange, the Administrator shall determine in good faith the Fair Market Value in whatever manner it considers appropriate, but based on objective criteria. Notwithstanding the foregoing, in the case of the sale of Shares on the Applicable Exchange, the actual sale price shall be the Fair Market Value of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Incentive Award" means the right to receive a cash payment to the extent Performance Goals are achieved (or other requirements are met), and shall include "Annual Incentive Awards" as described in Section 10 and "Long-Term Incentive Awards" as described in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Incentive Stock Option" means an Option that is intended to qualify as an "incentive stock option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Investors" means, collectively, CB Snowbird Holdings, L.P., a Delaware limited partnership, Centerbridge Partners, L.P., a Delaware limited partnership ("Centerbridge"), and each of their Affiliates (but excluding the Company and its Subsidiaries) and any other investment fund or vehicle managed by Centerbridge or any of its Affiliates (including any successors or assigns of any such manager).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "Non-Employee Director" means a Director who is not also an employee of the Company or its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Nonqualified Stock Option" means an Option that is not intended to qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "Option" means the right to purchase a Share at a stated price for a specified period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "Participant" means an individual selected by the Administrator to receive an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Performance Goals" means any objective or subjective goals the Administrator establishes with respect to an Award. A Performance Goal may, but is not required to, relate to one or more of the following with respect to the Company or any one or more Subsidiaries, Affiliates or other business units: basic earnings per common share for the Company on a consolidated basis; diluted earnings per common share for the Company on a consolidated basis; total shareholder return; fair market value of shares; net sales; cost of sales; gross profit; selling, general and administrative expenses; operating income; earnings before interest and the provision for income taxes (EBIT); earnings before interest, the provision for income taxes, depreciation, and amortization (EBITDA); net income; accounts receivable; return on equity; return on assets; return on invested capital; return on sales; non-catastrophic claims incurred; reinsurance costs; gross premiums earned; economic value added, or other measure of profitability that considers the cost of capital employed; free cash flow; net cash provided by operating activities; net increase (decrease) in cash and cash equivalents; customer satisfaction; market share; and/or quality. Unless otherwise determined by the Administrator, the relevant measurement of performance as to each Performance Goal shall be computed in accordance with generally accepted accounting principles, if applicable. The Administrator reserves the right to adjust Performance Goals, or modify the manner of measuring or evaluating a Performance Goal, for any reason the Administrator determines is appropriate, including but not limited to by excluding the effects of (i) charges for reorganizing and restructuring, (ii) discontinued operations, (iii) asset write-downs, (iv) gains or losses on the disposition of a business, (v) mergers, acquisitions or dispositions, and (vi) extraordinary, unusual and/or non-recurring items of gain or loss. The inclusion in an Award agreement of specific adjustments or modifications shall not be deemed to preclude the Administrator from making other adjustments or modifications, in its discretion, as described herein, unless the Award agreement provides that the adjustments or modifications described in such agreement shall be the sole adjustments or modifications. The Administrator may establish other Performance Goals not listed in this Plan. Where applicable, the Performance Goals may be expressed, without limitation, in terms of attaining a specified level of the particular criterion or the attainment of an increase or decrease (expressed as absolute numbers or a percentage) in the particular criterion or achievement in relation to a peer group or other index. The Performance Goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be paid (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Performance Shares" means the right to receive Shares to the extent Performance Goals are achieved (or other requirements are met).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Performance Unit" means the right to receive a cash payment and/or Shares valued in relation to a unit that has a designated dollar value or the value of which is equal to the Fair Market Value of one or more Shares, to the extent Performance Goals are achieved (or other requirements are met).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Person" means any individual, firm, partnership, corporation or other entity, including any successor (by merger or otherwise) of such entity, or a group of any of the foregoing acting in concert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "Plan" means this TypTap Insurance Group, Inc. 2021 Equity Incentive Plan, as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "Restricted Stock" means Shares that are subject to a risk of forfeiture or restrictions on transfer, or both a risk of forfeiture and restrictions on transfer, which may lapse upon the achievement or partial achievement of Performance Goals or upon the completion of a period of service, or both.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Restricted Stock Unit" means the right to receive a cash payment and/or Shares the value of which is equal to the Fair Market Value of one Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Section 16 Participants" means Participants who are subject to the provisions of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Series A Preferred Stock" has the meaning set forth in the Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Share" means a share of Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "Stock" means the common stock, par value $0.001 per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "Stock Appreciation Right" or "SAR" means the right to receive a cash payment, and/or Shares with a Fair Market Value, equal to the appreciation of the Fair Market Value of a Share during a specified period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "Subsidiary" means any corporation, limited liability company or other limited liability entity in an unbroken chain of entities beginning with the Company if each of the entities (other than the last entities in the chain) owns the stock or equity interest possessing more than fifty percent (50%) of the total combined voting power of all classes of stock or other equity interests in one of the other entities in the chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Administration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Administration*. In addition to the authority specifically granted to the Administrator in this Plan, the Administrator has full discretionary authority to administer this Plan, including but not limited to the authority to: (i) interpret the provisions of this Plan or any agreement covering an Award; (ii) prescribe, amend and rescind rules and regulations relating to this Plan; (iii) correct any defect, supply any omission, or reconcile any inconsistency in the Plan, any Award or any agreement covering an Award in the manner and to the extent it deems desirable to carry this Plan or such Award into effect; and (iv) make all other determinations necessary or advisable for the administration of this Plan. All Administrator determinations shall be made in the sole discretion of the Administrator and are final and binding on all interested parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Delegation to Other Committees or Officers*. To the extent applicable law permits, the Board may delegate to another committee of the Board, or the Committee may delegate to a subcommittee of the Committee or to one or more officers of the Company, any or all of their respective authority and responsibility as an Administrator of the Plan; *provided* that no such delegation is permitted with respect to Stock-based Awards made to Section 16 Participants at the time any such delegated authority or responsibility is exercised unless the delegation is to another committee of the Board consisting entirely of Non-Employee Directors. If the Board or the Committee has made such a delegation, then all references to the Administrator in this Plan include such other committee, subcommittee or one or more officers to the extent of such delegation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Liability; Indemnification*. No member of the Board or the Committee, and no officer or member of any other committee to whom a delegation under Section 3(b) has been made, will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan or any Award. The Company will indemnify and hold harmless each such individual as to any acts or omissions, or determinations made, in each case done or made in good faith, with respect to this Plan or any Award to the maximum extent that the law and the Company's By-Laws permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Eligibility.** The Administrator may designate any of the following as a Participant from time to time, to the extent of the Administrator's authority: any officer or other employee of the Company or its Affiliates; any individual that the Company or an Affiliate has engaged to become an officer or employee; any consultant or advisor who provides services to the Company or its Affiliates; or any Director, including a Non-Employee Director. The Administrator's designation of, or granting of an Award to, a Participant will not require the Administrator to designate such individual as a Participant or grant an Award to such individual at any future time. The Administrator's granting of a particular type of Award to a Participant will not require the Administrator to grant any other type of Award to such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Types of Awards.** Subject to the terms of this Plan, the Administrator may grant any type of Award to any Participant it selects, but only employees of the Company or a Subsidiary may receive grants of Incentive Stock Options. Awards may be granted alone or in addition to, in tandem with, or (subject to the prohibition on repricing set forth in Section 15(e)) in substitution for any other Award (or any other award granted under another plan of the Company or any Affiliate, including the plan of an acquired entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Shares Reserved under this Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Plan Reserve*. Subject to adjustment as provided in Section 17, an aggregate of 7,000,000 Shares are reserved for issuance under this Plan, all of which may be issued pursuant to the exercise of Incentive Stock Options. The Shares reserved for issuance may be either authorized and unissued Shares or Shares reacquired at any time and now or hereafter held as treasury stock. The aggregate number of Shares reserved under this Section 6(a) shall be depleted on the date of grant of an Award by the maximum number of Shares, if any, that may be issuable under an Award as determined at the time of grant. Notwithstanding the foregoing, an Award that may be settled solely in cash shall not cause any depletion of the Plan's Share reserve at the time such Award is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Replenishment of Shares Under this Plan*. To the extent (i) an Award lapses, expires, terminates or is cancelled without the issuance of Shares under the Award (whether due currently or on a deferred basis) or is settled in cash, (ii) it is determined during or at the conclusion of the term of an Award that all or some portion of the Shares with respect to which the Award was granted will not be issuable on the basis that the conditions for such issuance

------

will not be satisfied, (iii) Shares are forfeited under an Award (except as described below), (iv) Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance of the Shares, or (v) Shares are tendered or withheld in payment of the exercise price of an Option or as a result of the net settlement of an outstanding Stock Appreciation Right or (vi) Shares are tendered or withheld to satisfy federal, state or local tax withholding obligations, then such Shares shall be recredited to the Plan's reserve and may again be used for new Awards under this Plan, but Shares recredited to the Plan's reserve pursuant to clause (iv), (v) or (vi) may not be issued pursuant to Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Options.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each Option, including but not limited to: (a) whether the Option is an Incentive Stock Option that meets the requirements of Code Section 422, or a Nonqualified Stock Option that does not meet the requirements of Code Section 422; (b) the grant date, which may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares subject to the Option; (d) the exercise price, which may never be less than the Fair Market Value of the Shares subject to the Option as determined on the date of grant, (e) the terms and conditions of vesting and exercise; (f) the term, except that an Option must terminate no later than ten (10) years after the date of grant; and (g) the manner of payment of the exercise price. In all other respects, the terms of any Incentive Stock Option should comply with the provisions of Code Section 422 except to the extent the Administrator determines otherwise. If an Option that is intended to be an Incentive Stock Option fails to meet the requirements thereof, the Option shall automatically be treated as a Nonqualified Stock Option to the extent of such failure. To the extent permitted by the Administrator, and subject to such procedures as the Administrator may specify, the payment of the exercise price of Options may be made by (w) delivery of cash or other Shares or other securities of the Company (including by attestation) having a then Fair Market Value equal to the purchase price of such Shares, (x) by delivery (including by fax) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price, (y) by surrendering the right to receive Shares otherwise deliverable to the Participant upon exercise of the Award having a Fair Market Value at the time of exercise equal to the total exercise price, or (z) by any combination of the methods set forth in clauses (w), (x) and/or (y). Except to the extent otherwise set forth in an Award agreement, a Participant shall have no rights as a holder of Stock as a result of the grant of an Option until the Option is exercised, the exercise price and applicable withholding taxes are paid and the Shares subject to the Option are issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Stock Appreciation Rights.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each SAR, including but not limited to: (a) whether the SAR is granted independently of an Option or relates to an Option; (b) the grant date, which may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares to which the SAR relates; (d) the grant price, which may never be less than the Fair Market Value of the Shares subject to the SAR as determined on the date of grant; (e) the terms and conditions of exercise or maturity, including vesting; (f) the term, *provided* that an SAR must terminate no later than ten (10) years after the date of grant; and (g) whether the SAR will be settled in cash, Shares or a combination thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Performance and Stock Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award of Shares, Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, including, but not limited to: (a) the number of Shares and/or units to which such Award relates; (b) whether, as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be achieved during such period as the Administrator specifies; (c) the length of the vesting and/or performance period and, if different, the date on which payment of the benefit provided under the Award will be made; (d) with respect to Performance Units, whether to measure the value of each unit in relation to a designated dollar value or the Fair Market Value of one or more Shares; and (e) with respect to Restricted Stock Units and Performance Units, whether to settle such Awards in cash, in Shares (including Restricted Stock), or in a combination of cash and Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Annual Incentive Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of an Annual Incentive Award, including but not limited to the Performance Goals, performance period, the potential amount payable, and the timing of payment; *provided* that the Administrator must require that payment of all or any portion of the amount subject to the Annual Incentive Award is contingent on the achievement or partial achievement of one or more Performance Goals during the period the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant's death, Disability, or such other circumstances as the Administrator may specify; and *provided further* that any performance period applicable to an Annual Incentive Award must relate to a period of at least one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Long-Term Incentive Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of a Long-Term Incentive Award, including, but not limited to, the Performance Goals, performance period (which must be more than one year), the potential amount payable, and the timing of payment; *provided* that the Administrator must require that payment of all or any portion of the amount subject to the Long-Term Incentive Award is contingent on the achievement or partial achievement of one or more Performance Goals during the period the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant's death, Disability or retirement (as defined by the Administrator), or such other circumstances as the Administrator may specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Dividend Equivalent Units.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award of Dividend Equivalent Units, including but not limited to whether: (a) such Award will be granted in tandem with another Award; (b) payment of the Award will be made concurrently with dividend payments or credited to an account for the Participant which provides for the deferral of such amounts until a stated time; (c) the Award will be settled in cash or Shares; and (d) as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be achieved during such period as the Administrator specifies; *provided* that Dividend Equivalent Units may not be granted in connection with an Option or Stock Appreciation Right; and *provided further* that no Dividend Equivalent Unit granted in tandem with another Award shall include vesting provisions more favorable to the Participant than the vesting provisions, if any, to which the tandem Award is subject; and *provided further* that no Dividend Equivalent Unit relating to another Award shall provide for payment with respect such other Award prior to its vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Other Stock-Based Awards.** Subject to the terms of this Plan, the Administrator may grant to a Participant shares of unrestricted Stock as replacement for other compensation to which the Participant is entitled, such as in payment of director fees, in lieu of cash compensation, in exchange for cancellation of a compensation right, or as a bonus.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. Transferability*.*** Awards are not transferable other than by will or the laws of descent and distribution, unless and to the extent the Administrator allows a Participant to: (a) designate in writing a beneficiary to exercise the Award or receive payment under the Award after the Participant's death; (b) transfer an Award to the former spouse of the Participant as required by a domestic relations order incident to a divorce; or (c) transfer an Award; *provided*, *however*, that with respect to clause (c) above the Participant may not receive consideration for such a transfer of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. Termination and Amendment of Plan; Amendment, Modification or Cancellation of Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Term of Plan*. Unless the Board earlier terminates this Plan pursuant to Section 15(b), this Plan will terminate on the tenth (10th) anniversary of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Termination and Amendment*. The Board or the Administrator may amend, alter, suspend, discontinue or terminate this Plan at any time, subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) prior action of the Board, (B) applicable corporate law, or (C) any other applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shareholders must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) Section 16 of the Exchange Act, (B) the Code, (C) the listing requirements of any principal securities exchange or market on which the Shares are then traded, or (D) any other applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shareholders must approve any of the following Plan amendments: (A) an amendment to materially increase any number of Shares specified in Section 6(a) or the limits set forth in Section 6(b)(except as permitted by Section 17), or (B) an amendment that would diminish the protections afforded by Section 15(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Amendment, Modification, Cancellation and Disgorgement of Awards*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 15(e) and subject to the requirements of this Plan, the Administrator may modify, amend or cancel any Award; *provided* that, except as otherwise provided in the Plan or the Award agreement, any modification or amendment that materially diminishes the rights of the Participant, or the cancellation of an Award, shall be effective only if agreed to by the Participant or any other person(s) as may then have an interest in such Award, but the Administrator need not obtain Participant (or other interested party) consent for the modification, amendment or cancellation of an Award pursuant to the provisions of subsection (ii) or Section 17 or as follows: (A) to the extent the Administrator deems such action necessary to comply with any applicable law or the listing requirements of any principal securities exchange or market on which the Shares are then traded; (B) to the extent the Administrator deems necessary to preserve favorable accounting or tax treatment of any Award for the Company; or (C) to the extent the Administrator determines that such action does not materially and adversely affect the value of an Award or that such action is in the best interest of the affected Participant (or any other person(s) as may then have an interest in the Award). Notwithstanding the foregoing, unless determined otherwise by the Administrator, any such amendment shall be made in a manner that will enable an Award intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to continue to so comply.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary in an Award agreement, the Administrator shall have full power and authority to terminate or cause the Participant to forfeit the Award, and require the Participant to disgorge to the Company any gains attributable to the Award, if the Participant engages in any action constituting, as determined by the Administrator in its discretion, Cause for termination, or a breach of any Award agreement or any other agreement between the Participant and the Company or an Affiliate concerning noncompetition, nonsolicitation, confidentiality, trade secrets, intellectual property, nondisparagement or similar obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Awards granted pursuant to this Plan, and any Stock issued or cash paid pursuant to an Award, shall be subject to any recoupment or clawback policy that is adopted by, or any recoupment or similar requirement otherwise made applicable by law, regulation or listing standards to, the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Survival of Authority and Awards*. Notwithstanding the foregoing, the authority of the Board and the Administrator under this Section 15 and to otherwise administer the Plan with respect to then-outstanding Awards will extend beyond the date of this Plan's termination. In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted to them, and all unexpired Awards will continue in force and effect after termination of this Plan except as they may lapse or be terminated by their own terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Repricing and Backdating Prohibited*. Notwithstanding anything in this Plan to the contrary, and except for the adjustments provided for in Section 17, neither the Administrator nor any other person may (i) amend the terms of outstanding Options or SARs to reduce the exercise or grant price of such outstanding Options or SARs; (ii) cancel outstanding Options or SARs in exchange for Options or SARs with an exercise or grant price that is less than the exercise or grant price of the original Options or SARs; or (iii) cancel outstanding Options or SARs with an exercise or grant price above the current Fair Market Value of a Share in exchange for cash or other securities. In addition, the Administrator may not make a grant of an Option or SAR with a grant date that is effective prior to the date the Administrator takes action to approve such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Foreign Participation*. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the Administrator may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, accounting or custom. Moreover, the Administrator may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the Administrator approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country. In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions of Section 15(b)(ii).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***16. Taxes.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Withholding*. In the event the Company or one of its Affiliates is required to withhold any Federal, state or local taxes or other amounts in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind otherwise due the Participant cash, or with the consent of the Administrator, Shares otherwise deliverable or vesting under an Award, to satisfy such tax or other obligations. Alternatively, the Company or its Affiliate may require such Participant to pay to the Company or its Affiliate, in cash, promptly on demand, or make other arrangements satisfactory to the Company or its Affiliate regarding the payment to the Company or its Affiliate of the aggregate amount of any such taxes and other amounts. If Shares are deliverable upon exercise or payment of an Award, then the Administrator may permit a Participant to satisfy all or a portion of the Federal, state and local withholding tax obligations arising in connection with such Award by electing to (i) have the Company or its Affiliate withhold Shares otherwise issuable under the Award, (ii) tender back Shares received in connection with such Award or (iii) deliver other previously owned Shares, in each case having a Fair Market Value equal to the amount to be withheld; *provided* that the amount to be withheld in Shares may not exceed the total maximum statutory tax withholding obligations associated with the transaction to the extent needed for the Company and its Affiliates to avoid an accounting charge. If an election is provided, the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Administrator requires. In any case, the Company and its Affiliates may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to its satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Guarantee of Tax Treatment*. Notwithstanding any provisions of this Plan to the contrary, the Company does not guarantee to any Participant or any other Person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so exempt, (ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so comply, or (iii) any Award shall otherwise receive a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any Affiliate be required to indemnify, defend or hold harmless any individual with respect to the tax consequences of any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. Adjustment and Change of Control Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Adjustment of Shares*. If (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed or exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other securities (other than stock purchase rights issued pursuant to a shareholder rights agreement) or other property; (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall effect any other dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Board determines by resolution is special or extraordinary in nature or that is in connection with a transaction that the Company characterizes publicly as a recapitalization or reorganization involving the Shares; or (iv) any other event shall occur, which, in the case of this clause (iv), in the judgment of the Administrator necessitates an adjustment to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, then the Administrator shall, in such manner as it may deem equitable to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, adjust any or all of: (A) the number and type of Shares subject to this Plan (including the number and type of Shares described in Sections 6(a)and 6(b)) and which may after the event be made the subject of Awards; (B) the number and type of Shares subject to outstanding Awards; (C) the grant, purchase, or exercise price with respect to any Award; and (D) the Performance Goals of an Award. In any such case, the Administrator may also (or in lieu of the foregoing) make provision

------

for a cash payment to the holder of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of an Award) in an amount determined by the Administrator effective at such time as the Administrator specifies (which may be the time such transaction or event is effective). However, in each case, with respect to Awards of Incentive Stock Options, no such adjustment may be authorized to the extent that such authority would cause this Plan to violate Code Section 422(b). Further, the number of Shares subject to any Award payable or denominated in Shares must always be a whole number. In any event, previously granted Options or SARs are subject to only such adjustments as are necessary to maintain the relative proportionate interest the Options and SARs represented immediately prior to any such event and to preserve, without exceeding, the value of such Options or SARs.

Without limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event, whether or not constituting a Change of Control (other than any such transaction in which the Company is the continuing corporation and in which the outstanding Stock is not being converted into or exchanged for different securities, cash or other property, or any combination thereof), the Administrator may substitute, on an equitable basis as the Administrator determines, for each Share then subject to an Award and the Shares subject to this Plan (if the Plan will continue in effect), the number and kind of shares of stock, other securities, cash or other property to which holders of Stock are or will be entitled in respect of each Share pursuant to the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Issuance or Assumption*. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization, the Administrator may authorize the issuance or assumption of awards under this Plan upon such terms and conditions as it may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Effect of Change of Control*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In order to preserve a Participant's rights under an Award in the event of a Change of Control, the Administrator in its discretion may, at the time an Award is made or at any time thereafter, take one or more of the following actions: (a) provide for the acceleration of any time period, or the deemed achievement of any Performance Goals, relating to the exercise or realization of the Award; (b) provide for the purchase or cancellation of the Award for an amount of cash or other property that could have been received upon the exercise or realization of the Award had the Award been currently exercisable or payable (or the cancellation of Awards in exchange for no payment to the extent that no cash or other property would be received upon the exercise or realization of the Award in such circumstances); (c) adjust the terms of the Award in the manner determined by the Administrator to reflect the Change of Control; (d) cause the Award to be assumed, or new right substituted therefor, by another entity; or (e) make such other provision as the Administrator may consider equitable and in the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except to the extent the Participant has in effect an employment or similar agreement with the Company or any Affiliate or is subject to a policy that provides for a more favorable result to the Participant upon a Change of Control, in the event that the Company's legal counsel or accounting advisor determines that any payment, benefit or transfer by the Company under this Plan or any other plan, agreement, or arrangement to or for the benefit of the Participant (in the aggregate, the "Total Payments") would be

------

subject to the tax ("Excise Tax") imposed by Code Section 4999 but for this subsection (d), then, notwithstanding any other provision of this Plan to the contrary, the Total Payments shall be delivered either (i) in full or (ii) in an amount such that the value of the aggregate Total Payments that the Participant is entitled to receive shall be One Dollar ($1.00) less than the maximum amount that the Participant may receive without being subject to the Excise Tax, whichever of clause (i) or (ii) results in the receipt by the Participant of the greatest benefit on an after-tax basis (taking into account applicable federal, state and local income taxes and the Excise Tax). In the event that clause (ii) results in a greater after-tax benefit to the Participants, payments or benefits included in the Total Payments shall be reduced or eliminated by applying the following principles, in order: (A) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (B) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (C) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination would violate Code Section 409A, then the reduction shall be made pro rata among the payments or benefits included in the Total Payments (on the basis of the relative present value of the parachute payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Certain Modifications*. Notwithstanding anything contained in this Section 17, the Board may, in its sole and absolute discretion, amend, modify or rescind the provisions of this Section 17 if it determines that the operation of this Section 17 may prevent a transaction in which the Company, a Subsidiary or any Affiliate is a party from receiving desired tax treatment, including without limitation requiring that each Participant receive a replacement or substitute Award issued by the surviving or acquiring corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. Stock Transfer Restrictions and Repurchase Right.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Restriction on Transfer*. Shares issued under the Plan may not be sold or otherwise disposed of except as permitted by the Company. As a condition to the receipt of Shares hereunder, the Participant (or individual entitled to receive Shares following the Participant's death) may be required to execute a stockholders agreement or other agreement required by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Restrictions; Legends*. All Shares delivered under the Plan shall be subject to such restrictions as the Company may deem advisable, and the Company may cause a legend or legends to be put on any certificates for shares to make appropriate references to such restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Right to Purchase Shares*. Pursuant to the provisions of this Section 18(c), the Company shall have the right (the "Purchase Right"), but not the obligation, to purchase all, but not less than all, of the Shares acquired by the Participant under this Plan upon the occurrence of any of the following events (a "Trigger Date"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Participant's separation from employment or service from the Company and its Affiliates, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Participant's attempted or purported sale, assignment, exchange, disposition, distributions, transfer, pledge, encumbrance, hypothecation or other disposition or alienation of Shares acquired under the Plan without the Company's prior written consent.

------

The purchase price (the "Purchase Price") for the Shares subject to such Purchase Right shall be the Fair Market Value of the Shares on the applicable Trigger Date, unless (A) the Participant's employment has been terminated for Cause, (B) the Company determines that the Participant's employment could have been terminated for Cause, or (C) the Participant breaches any restrictive covenants set forth in any agreement by and between the Participant and the Company or any of its Subsidiaries, then in each case the purchase price shall be the lower of (x) the Fair Market Value of the Shares on the applicable Trigger Date and (y) the cost paid by the Participant to acquire the Shares.

The Company may exercise its Purchase Right by giving written notice thereof to the Participant within one (1) year after the Trigger Date (the one (1)-year period in each case, the "Call Period") of the number of Shares with respect to which the Purchase Right is being exercised, and the Company intends that such date shall not be earlier than the first date on which the Purchase Price can be set without changing the accounting treatment for the acquisition of the Shares being repurchased from an equity-based accounting treatment to a liability-based accounting treatment (as contemplated by FASB ASC Topic 718 or any successor thereto). The Company shall promptly determine the Purchase Price for the Shares subject to the Purchase Right and shall notify the Participant of such determination. The Company may elect to pay all or any portion of such Purchase Price in cash; *provided* that if the Company does not elect to pay the entire Purchase Price in cash, the Company shall, at a minimum, pay to the Participant at least ten percent (10%) of the Purchase Price in cash, and shall deliver to the Participant a promissory note with a principal amount equal to the remainder of the Purchase Price, which promissory note shall provide that: (A) the principal shall be paid in no more than five (5) equal annual installments commencing one (1) year from the delivery of such promissory note, (B) interest on the unpaid principal amount shall accrue at an annual rate equal to the prime interest rate interest charged by the principal bank with which the Company conducts business as determined on the date the promissory note is issued, and shall be payable together with and in addition to each principal payment, and (C) the Company shall have the right, without penalty, to prepay all or any portion of the principal and accrued interest owing thereunder at any time.

Upon the delivery of the payment and/or the promissory note described herein by the Company, the Participant shall take all actions necessary, and execute all related documents specified by the Company as being reasonably necessary to consummate the sale of the Shares to the Company, and, by accepting an award under this Plan, the Participant appoints the Company's Secretary as his or her true and lawful attorney-in-fact to exercise and deliver all such instruments, documents and writings, and to take all such actions as shall be required to consummate the sale of the Shares to the Company as contemplated in this Section. Such power is a special Power of Attorney coupled with an interest, is irrevocable, and shall run with the shares to any subsequent owners thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Termination Upon Initial Public Offering*. The Company's right to exercise its repurchase rights under Section 18(c) shall terminate upon the closing of the Company's first underwritten public offering of equity securities pursuant to an effective registration statement under the Act.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19. Drag-Along Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Board or a group of shareholders that, in the aggregate, owns a majority of the voting power of the Company, receives an offer in a transaction or series of transactions pursuant to which a third party proposes to acquire all of the equity securities of the Company (a "Drag-Along Transaction"), any shareholder or any group of shareholders of the Company that, in the aggregate, owns a majority of the voting power of the Company (collectively, the "Drag-Along Shareholder") shall have the right, at its option, to require the other shareholders of the Company, including any Participant who acquires Shares under this Plan (each such shareholder, a "Dragged Shareholder," and collectively with any other Dragged Shareholder, the "Dragged Shareholders"), and each Dragged Shareholder hereby agrees, whether such Drag-Along Transaction is structured as a transfer of equity securities, merger, consolidation, combination, reorganization, recapitalization, reclassification or otherwise, to transfer all of such Dragged Shareholder's equity securities on substantially the same terms and conditions as are applicable to the Drag-Along Shareholder; *provided* that the price per share for each equity security to be sold in such Drag-Along Transaction shall be determined by first allocation a portion of the aggregate consideration to be paid by the buyer(s) in such Drag-Along Transaction to the holders of the Series A Preferred Stock in the amount of any accrued but unpaid dividends thereon and then allocation the remainder of such aggregate consideration to the equity securities to be sold in such Drag-Along Transaction ratably on an as-converted basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Dragged Shareholder shall reasonably cooperate in, and shall take all actions requested by the Drag-Along Shareholder that are reasonably necessary or desirable to consummate, the Drag-Along Transaction, including: (i) to the extent applicable, voting its equity securities (or executing and delivering any written consents in lieu thereof) in favor of the Drag-Along Transaction and all actions deemed reasonably necessary by the Drag- Along Shareholder in connection with the Drag-Along Transaction; (ii) if applicable, taking all actions necessary to cause the Board to approve the Drag-Along Transaction; and (iii) entering into definitive agreements as are customary for the nature of the proposed Drag-Along Transaction and any ancillary agreements with respect thereto, and using commercially reasonable efforts (including indemnification obligations on a ratable basis) to cause the transactions contemplated by such definitive agreements and ancillary agreements to be consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limitation of the foregoing, each shareholder waives any dissenters, appraisal or other similar rights it may have in connection with any sale of the Company under applicable law that is approved or instituted pursuant to this Section 19.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Drag-Along Shareholder shall provide written notice of such Drag-Along Transaction to each Dragged Shareholder (a "Drag-Along Transaction Notice"). The Drag-Along Transaction Notice shall identify the proposed transferee, the consideration for which a transfer is proposed to be made and all other material terms and conditions of the Drag-Along Transaction. Each Dragged Shareholder shall be required to participate in the Drag-Along Transaction on the terms and conditions set forth in the Drag-Along Transaction Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in this Section 19, there shall be no liability on the part of the Drag-Along Shareholder to the Company or the Dragged Shareholders if the Drag-Along Transaction is not consummated for whatever reason, regardless of whether the Drag-Along Shareholder has delivered a Drag-Along Transaction Notice. The decision to effect a Drag-Along Transaction is in the sole and absolute discretion of the Drag-Along Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The foregoing shall not affect the rights of the Company or the Administrator under Section 17 (or elsewhere) of this Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Other Terms and Conditions*. The Administrator may provide in any Award agreement such other provisions (whether or not applicable to the Award granted to any other Participant) as the Administrator determines appropriate to the extent not otherwise prohibited by the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Employment and Service*. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or service with the Company or any Affiliate, or the right to continue as a Director. Unless determined otherwise by the Administrator, for purposes of the Plan and all Awards, the following rules shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Participant who transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have terminated employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Participant who ceases to be a Non-Employee Director because he or she becomes an employee of the Company or an Affiliate shall not be considered to have ceased service as a Director with respect to any Award until such Participant's termination of employment with the Company and its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Participant who ceases to be employed by the Company or an Affiliate and immediately thereafter becomes a Non-Employee Director, a non-employee director of an Affiliate, or a consultant to the Company or any Affiliate shall not be considered to have terminated employment until such Participant's service as a director of, or consultant to, the Company and its Affiliates has ceased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate.

Notwithstanding the foregoing, for purposes of an Award that constitutes "nonqualified deferred compensation" subject to Code Section 409A, if a Participant's termination of employment or service triggers the payment of such nonqualified deferred compensation under such Award, then the Participant will be deemed to have terminated employment or service upon his or her "separation from service" within the meaning of Code Section 409A. Notwithstanding any other provision in this Plan or an Award to the contrary, if any Participant is a "specified employee" within the meaning of Code Section 409A as of the date of his or her "separation from service" within the meaning of Code Section 409A, then, to the extent required to avoid the imposition of additional taxes under Code Section 409A, any payment of nonqualified deferred compensation made to the Participant on account of such separation from service shall not be made before a date that is six (6) months after the date of the separation from service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Fractional Shares*. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Administrator may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled, terminated or otherwise eliminated.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Unfunded Plan; Awards Not Includable for Benefits Purposes*. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect to this Plan's benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights of the Company's general unsecured creditors. Income recognized by a Participant pursuant to an Award shall not be included in the determination of benefits under any employee pension benefit plan (as such term is defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended) or group insurance or other benefit plans applicable to the Participant which are maintained by the Company or any Affiliate, except as may be provided under the terms of such plans or determined by resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Requirements of Law and Securities Exchange*. The granting of Awards and the issuance of Shares in connection with an Award are subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability to deliver any Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws and the applicable requirements of any securities exchange or similar entity, and unless and until the Participant has taken all actions required by the Company in connection therewith. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines necessary or desirable to comply with all applicable laws, rules and regulations or the requirements of any national securities exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Governing Law; Venue*. This Plan, and all agreements under this Plan, will be construed in accordance with and governed by the laws of the State of Florida, without reference to any conflict of law principles. Any legal action or proceeding with respect to this Plan, any Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any award agreement, may only be brought and determined in a court sitting in the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Limitations on Actions*. Any legal action or proceeding with respect to this Plan, any Award or any award agreement, must be brought within one (1) year after the day the complaining party first knew or should have known of the events giving rise to the complaint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Construction*. Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general information only, and this Plan is not to be construed with reference to such titles. The title, label or characterization of an Award in an award agreement or in the Company's public filings or other disclosures shall not be determinative as to which specific Award type is represented by the award agreement. Instead, the Administrator may determine which specific type(s) of Award(s) is (are) represented by any award agreement, at the time such Award is granted or at any time thereafter. Except to the extent otherwise provided in the applicable award agreement, in the case of any Award that includes a "series of installment payments" (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Award holder's right to the series of installment payments shall be treated as a right to a series of separate payments and not as a right to a single payment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Severability*. If any provision of this Plan or any award agreement or any Award (a) is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or (b) would cause this Plan, any award agreement or any Award to violate or be disqualified under any law the Administrator deems applicable, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Administrator, materially altering the intent of this Plan, award agreement or Award, then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such award agreement and such Award will remain in full force and effect.

## Exhibit 10.15

**Exhibit 10.15** 

**EXZEO GROUP, INC.** 

**2021 EQUITY INCENTIVE PLAN** 

**RESTRICTED STOCK AWARD** 

____________________

____________________

____________________

Dear [______________]:

You have been granted an award of shares of the common stock ("<u>Common Stock</u>") of Exzeo Group, Inc., formerly known as TypTap Insurance Group, Inc. (the "<u>Company</u>"), constituting a Restricted Stock Award (this "<u>Award</u>") under the Exzeo Group, Inc. 2021 Equity Incentive Plan (the "<u>Plan</u>") with terms and conditions described below. This Award is granted under and governed by the terms and conditions of the Plan. Additional provisions regarding this Award and definitions of capitalized terms used and not defined in this Award can be found in the Plan.

---

| | |
|:---|:---|
| Grant Date: | [____________] |
| Number of Shares of Restricted Stock<br> ("Restricted Shares"): | [____________] |
| Vesting Schedule: | The Restricted Shares will vest as follows.<br>• [_____] of the Restricted Shares will vest in accordance with the following schedule provided that, on each such vesting date, you have been continuously employed by or in the service of the Company or an Affiliate through and including such date:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) _____ shares on May 20, 2021<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) _____ shares on May 20, 2022<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) _____ shares on May 20, 2023<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) _____ shares on May 20, 2024<br>• [_____] of the Restricted Shares (the "<u>Time-Vested Shares</u>") will vest as follows: one-fourth of the Time-Vested Shares will vest on the first anniversary of the Grant Date, one-fourth of the Time-Vested Shares will vest on the second anniversary of the Grant Date, one-fourth of the Time-Vested Shares will vest on the third anniversary of the Grant Date, and one-fourth of the Time-Vested Shares will vest on the fourth anniversary of the Grant Date; provided that, on each such vesting date, you have been continuously employed by or in the service of the Company or an Affiliate through and including such date.<br>• [_____] of the Restricted Shares will vest, if ever, on the first anniversary of the date on which the Company Stock Value (as defined below) first equals or exceeds $15.00 for 30 consecutive trading days on the Applicable Exchange (or, if the Common Stock is not traded on an Applicable Exchange, the first anniversary of the Applicable Valuation Date (as defined below) on which the Company Stock Value first equals or exceeds $15.00, as evidenced by a Written Determination), provided that you have been continuously employed by or in the service of the Company or an Affiliate through and including such vesting date. |

---

------

---

| | |
|:---|:---|
|  | • [_____] of the Restricted Shares will vest, if ever, on the first anniversary of the date on which the Company Stock Value first equals or exceeds $20.00 for 30 consecutive trading days on the Applicable Exchange (or, if the Common Stock is not traded on an Applicable Exchange, the first anniversary of the Applicable Valuation Date (as defined below) on which the Company Stock Value first equals or exceeds $20.00, as evidenced by a Written Determination), provided that you have been continuously employed by or in the service of the Company or an Affiliate through and including such vesting date.<br>All unvested Restricted Shares will immediately and automatically be forfeited on the sixth anniversary of the Grant Date. Other events of forfeiture appear in this Award and in the Plan.<br>For purposes of this Award, the term "<u>Company Stock Value</u>" means (i) if the Company Stock Value is being measured on or following the date on which Company's Common Stock is traded on an Applicable Exchange, then the Company Stock Value will be the closing price of the Company's Common Stock on the Applicable Exchange, or (ii) if the Company's Common Stock is not then traded on an Applicable Exchange, then the Company Stock Value will be equal to the fair market value of a share of Common Stock as will be determined in writing by the Administrator as of a valuation date specified by the Administrator (the "<u>Applicable Valuation Date</u>"), which determination will be made specifically for the purpose of determining whether a vesting condition hereunder is satisfied (a "<u>Written Determination</u>"). For purposes of foregoing clause (ii), the determination of fair market value will assume that all outstanding preferred shares are converted into Common Stock in accordance with the conversion terms thereof immediately prior to the Applicable Valuation Date, and such determination will be made without valuation discounts for lack of marketability or lack of control (or similar discounts).<br>The foregoing share numbers and Company Stock Value numbers will be subject to adjustment by the Board or Administrator to take into account stock dividends or any subdivisions or combinations of the Common Stock by the Company that occur following the Grant Date.<br>Notwithstanding the foregoing, the Restricted Shares will vest in full upon a Change in Control, if you are continuously employed with, or in the service of, the Company or an Affiliate thereof through the day preceding the date of the Change in Control. |
| Termination of Employment: | Upon your termination of employment with, or cessation of services to, the Company or an Affiliate thereof prior to the date the Restricted Shares are vested, you will forfeit the unvested Restricted Shares. |
| Release of Shares: | The Restricted Shares will be held in an account at the Company's transfer agent pending vesting (or in an account on the Company's stock book at such time that the Company does not have a transfer agent). As soon as practicable after any Restricted Shares vest, the applicable restrictions on the Restricted Shares will be removed and such Shares will be issued according to your instructions. |

---

------

---

| | |
|:---|:---|
| Transferability of Restricted Shares: | You may not sell, transfer or otherwise alienate or hypothecate any of your Restricted Shares until they are vested. In addition, by accepting this Award, you agree not to sell any Shares acquired under this Award other than as set forth in the Plan and at a time when applicable laws, Company policies or an agreement between the Company and its underwriters do not prohibit a sale. The Company also may require you to enter into a shareholder's agreement (or similar agreement) that will include additional restrictions on the transfer of Shares acquired under this Award that will remain effective after such Shares have vested. |
| Voting and Dividends: | While the Restricted Shares are subject to forfeiture, you may exercise full voting rights and will be entitled all dividends and other distributions paid with respect to the Restricted Shares, in each case so long as the applicable record date occurs before you forfeit the Restricted Shares; provided that any dividends and distributions other than cash dividends will be held in the custody of the Company and will be subject to the same risk of forfeiture, restrictions on transferability and other terms of this Award that apply to the Restricted Shares with respect to which such distributions were made. All such non-cash dividends or other distributions will be paid to you within 45 days following the full vesting of the Restricted Shares with respect to which such distributions were made. |
| Transferability of Award: | You may not transfer or assign this Award for any reason, other than as set forth in the Plan. Any attempted transfer or assignment will be null and void. |
| Market Stand-Off: | In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, you agree that you will not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Award without the prior written consent of the Company and the Company's underwriters. Such restriction will be in effect for such period of time following the date of the final prospectus for the offering as may be determined by the Company. In no event, however, will such period exceed one hundred eighty (180) days. You agree to execute any lock-up agreement or similar agreement requested by the Company or the Company's underwriters to evidence the foregoing obligations plus such other obligations that are generally applied to Company stockholders in connection with the underwritten public offering. |

---

------

---

| | |
|:---|:---|
| Tax Withholding: | You understand that you (and not the Company or any Affiliate) will be responsible for your own federal, state, local or foreign tax liability and any other tax consequences that may arise as a result of the transactions contemplated by this Award. You will rely solely on the determinations of your tax advisors or your own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters. You understand that you may alter the tax treatment of the Shares subject to this Award by filing an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code"). Such election must be filed within thirty (30) days after the date of this Award to be effective. **You should consult with your tax advisor to determine the tax consequences of acquiring the Shares and the advantages and disadvantages of filing the Code Section 83(b) election. You acknowledge that it is your sole responsibility, and not the Company's, to file a timely election under Code Section 83(b), even if you request the Company or its representatives to make this filing on your behalf.**<br>To the extent that the receipt or the vesting of the Restricted Shares, or the payment of dividends on the Restricted Shares, results in income to you for federal, state or local income tax purposes, except as otherwise provided in the following paragraph, you will deliver to the Company at the time the Company is obligated to withhold taxes in connection with such receipt, vesting or payment, as the case may be, such amount as the Company requires to meet its withholding obligation under applicable tax laws or regulations. If you fail to do so, the Company has the right and authority to deduct or withhold from other compensation payable to you (including Restricted Shares as described in the following paragraph) an amount sufficient to satisfy its withholding obligations or to delay delivery of the shares.<br>If you do not make an election under Code Section 83(b) in connection with this Award and only if permitted by the Company, you may satisfy the withholding requirement in connection with the vesting of the Restricted Shares, in whole or in part, by electing to have the Company withhold for its own account the number of Restricted Shares that would otherwise be released to you on the date the tax is to be determined having an aggregate Fair Market Value (on the date the tax is to be determined) equal to the tax that the Company must withhold in connection with the vesting of such Restricted Shares. The Fair Market Value of any fractional Share not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to you in cash. |
| Miscellaneous: | • This Award may be amended only by written consent signed by both you and the Company, unless the amendment is not to your detriment. Notwithstanding the foregoing, this Award may be amended or terminated by the Board or the Committee without your consent in accordance with the provisions of the Plan.<br>• The failure of the Company to enforce any provision of this Award at any time will in no way constitute a waiver of such provision or of any other provision hereof. |

---

------

• In the event any provision of this Award is held illegal or invalid for any reason, such illegality or invalidity will not affect the legality or validity of the remaining provisions of this Award, and this Award will be construed and enforced as if the illegal or invalid provision had not been included in this Award.<br>• As a condition to the grant of this Award, you agree (with such agreement being binding upon your legal representatives, guardians, legatees or beneficiaries) that this Award will be interpreted by the Committee and that any interpretation by the Committee of the terms of this Award or the Plan, and any determination made by the Committee pursuant to this Award or the Plan, will be final, binding and conclusive.<br>• This Award may be executed in counterparts.<br>

BY SIGNING BELOW AND ACCEPTING THIS RESTRICTED STOCK AWARD, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN. YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

---

| | | |
|:---|:---|:---|
| EXZEO GROUP, INC. | EXZEO GROUP, INC. |  |
| By: |  |  |
|  | Paresh Patel, Chief Executive Officer | [Name of Recipient] |
| Date: | __________________ |  |

---

## Exhibit 10.16

**Exhibit 10.16** 

**TYPTAP INSURANCE GROUP, INC.** 

**2021 OMNIBUS INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Purposes and Effective Date.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Purposes*. The TypTap Insurance Group, Inc. 2021 Omnibus Incentive Plan has two complementary purposes: (i) to attract and retain outstanding individuals to serve as officers, directors, employees and consultants and (ii) to increase shareholder value. The Plan will provide participants incentives to increase shareholder value by offering the opportunity to acquire shares of the Company's common stock, receive monetary payments based on the value of such common stock, or receive other incentive compensation, on the potentially favorable terms that this Plan provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Effective Date*. The Plan shall become effective on September 27, 2021 (the "Effective Date"). However, no Options or Stock Appreciation Rights will be exercisable; no Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units valued in relating to Shares or other Stock-based awards will be granted; and no Cash Incentive Award will be paid unless and until the Plan has been approved by the shareholders of the Company, which approval must occur on or within twelve (12) months after the Effective Date. This Plan will terminate as provided in Section 15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Definitions.** Capitalized terms used and not otherwise defined in this Plan or in any Award agreement have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Act" means the Securities Act of 1933, as amended from time to time. Any reference to a specific provision of the Act shall include any successor provision thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Administrator" means the Board or the Committee; *provided* that, to the extent the Board or the Committee has delegated authority and responsibility as an Administrator of the Plan to one or more committees or officers of the Company as permitted by Section 3(b), the term "Administrator" shall also mean such committee, committees, officer or officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Affiliate" has the meaning ascribed to such term in Rule 12b-2 under the Exchange Act. Notwithstanding the foregoing, for purposes of determining those individuals to whom an Option or a Stock Appreciation Right may be granted, the term "Affiliate" means any entity that, directly or through one or more intermediaries, is controlled by or is under common control with, the Company within the meaning of Code Sections 414(b) or (c); *provided* that, in applying such provisions, the phrase "at least 20 percent" shall be used in place of "at least 80 percent" each place it appears therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Applicable Exchange" means the Nasdaq Stock Market, the New York Stock Exchange or such other exchange or automated trading system on which the Stock is principally traded at the applicable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Award" means a grant of Options, Stock Appreciation Rights, Performance Shares, Performance Units, Stock, Restricted Stock, Restricted Stock Units, an Incentive Award, Dividend Equivalent Units or any other type of award permitted under this Plan. Any Award granted under this Plan shall be provided or made in such manner and at such time as complies with the applicable requirements of Code Section 409A to avoid a plan failure described in Code Section 409A(a)(1), including, without limitation, deferring payment to a specified employee or until a specified distribution event, as provided in Code Section 409A(a)(2), and the provisions of Code Section 409A are incorporated into this Plan to the extent necessary for any Award that is subject to Code Section 409A to comply therewith.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Beneficial Owner" means a Person, with respect to any securities which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Person or any of such Person's Affiliates has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person's Affiliates until such tendered securities are accepted for purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Person or any of such Person's Affiliates, directly or indirectly, has the right to vote or dispose of or has "beneficial ownership" of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Act), including pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this clause (ii) as a result of an agreement, arrangement or understanding to vote such security if the agreement, arrangement or understanding: (A) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations under the Act and (B) is not also then reportable on a Schedule l3D under the Act (or any comparable or successor report); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) are beneficially owned, directly or indirectly, by any other Person with which such Person or any of such Person's Affiliates has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (ii) above) or disposing of any voting securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Board" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Cause" shall have the same meaning as set forth in a Participant's employment agreement or individual Award with the Company, or, if the Participant does not have an employment agreement with the Company (or the Participant's individual Award does not otherwise define the term), "Cause" shall mean a good faith finding by the Company that the Participant has (i) failed, neglected, or refused to perform the lawful employment duties related to the Participant's position or as from time to time assigned to the Participant (other than due to disability within the meaning of Code Section 22(e)(3)); (ii) committed any willful, intentional, or grossly negligent act having the effect of injuring the interest, business, or reputation of the Company or any Affiliate; (iii) violated or failed to comply in any material respect with the Company's or an Affiliate's published rules, regulations, or policies, as in effect or amended from time to time, to the extent applicable to the Participant; (iv) committed an act constituting a felony or misdemeanor involving moral turpitude, fraud, theft, or dishonesty; (v) misappropriated or embezzled any property of the Company or an Affiliate (whether or not an act constituting a felony or misdemeanor); or (vi) breached any material provision of any applicable confidentiality, non-compete, non-solicit, general release, covenant not-to-sue, or other agreement with the Company or any Affiliate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Change of Control" means, unless specified otherwise in an Award agreement, the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Person (other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any of its subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, (D) HCI Group, Inc. or any of its subsidiaries, or (E) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock in the Company ("Excluded Persons")) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after the Effective Date, pursuant to express authorization by the Board that refers to this exception) representing fifty percent (50%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the following individuals cease for any reason to constitute a majority of the number of directors of the Company then serving: (A) individuals who, on the Effective Date, constituted the Board and (B) any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Act) whose appointment or election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the Effective Date, or whose appointment, election or nomination for election was previously so approved (collectively the "Continuing Directors"); provided, however, that individuals who are appointed to the Board pursuant to or in accordance with the terms of an agreement relating to a merger, consolidation, or share exchange involving the Company (or any direct or indirect Subsidiary of the Company) shall not be Continuing Directors for purposes of this Agreement until after such individuals are first nominated for election by a vote of at least two-thirds (2/3) of the then Continuing Directors and are thereafter elected as directors by the shareholders of the Company at a meeting of shareholders held following consummation of such merger, consolidation, or share exchange; and, provided further, that in the event the failure of any such persons appointed to the Board to be Continuing Directors results in a Change of Control, the subsequent qualification of such persons as Continuing Directors shall not alter the fact that a Change of Control occurred; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consummation of a merger, consolidation or share exchange of the Company with any other corporation or the issuance of voting securities of the Company in connection with a merger, consolidation or share exchange of the Company (or any direct or indirect Subsidiary of the Company), in each case, which requires approval of the shareholders of the Company, other than (A) a merger, consolidation or share exchange which would result in the voting securities of the Company outstanding immediately prior to such merger, consolidation or share exchange continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least fifty percent (50%) of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger, consolidation or share

------

exchange, or (B) a merger, consolidation or share exchange effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than an Excluded Person) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after the Effective Date, pursuant to express authorization by the Board that refers to this exception) representing twenty percent (20%) or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the consummation of a plan of complete liquidation or dissolution of the Company or a sale or disposition by the Company of all or substantially all of the Company's assets (in one transaction or a series of related transactions within any period of twenty-four (24) consecutive months), in each case, which requires approval of the shareholders of the Company, other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity at least seventy-five percent (75%) of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.

Notwithstanding the foregoing, no "Change of Control" shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to own, directly or indirectly, in the same proportions as their ownership in the Company, an entity that owns all or substantially all of the assets or voting securities of the Company immediately following such transaction or series of transactions.

Notwithstanding the foregoing, if an Award is considered deferred compensation subject to the provisions of Code Section 409A, and if a payment under such Award is triggered upon a "Change of Control," then the foregoing definition shall be deemed amended as necessary to comply with Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "Code" means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes any successor provision and the regulations promulgated under such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Committee" means the Compensation Committee of the Board, any successor committee thereto or such other committee of the Board that is designated by the Board with the same or similar authority. The Committee shall consist only of Non-Employee Directors (not fewer than two (2)) to the extent necessary for the Plan and Awards to comply with Rule 16b-3 promulgated under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Company" means TypTap Insurance Group, Inc., a Florida corporation, or any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Director" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Disability" means, unless otherwise defined in the applicable Award agreement, a finding of disability under the long term disability plan sponsored by the Company or an Affiliate in which the Participant participates. Notwithstanding the foregoing, for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Dividend Equivalent Unit" means the right to receive a payment, in cash or Shares, equal to the cash dividends or other cash distributions paid with respect to a Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Effective Date" has the meaning in Section 1(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Exchange Act" means the Securities Exchange Act of 1934, as amended. Any reference to a specific provision of the Exchange Act includes any successor provision and the regulations and rules promulgated under such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Fair Market Value" means a price that is based on the opening, closing, actual, high or low sale price, or the arithmetic mean of selling prices of, a Share, on the Applicable Exchange on the applicable date, the preceding trading day, the next succeeding trading day, or the arithmetic mean of selling prices on all trading days over a specified averaging period weighted by volume of trading on each trading day in the period that is within 30 days before or 30 days after the applicable date, as determined by the Administrator in its discretion; provided that, if an arithmetic mean of prices is used to set a grant price or an exercise price for an Option or Stock Appreciation Right, the commitment to grant the applicable Award based on such arithmetic mean must be irrevocable before the beginning of the specified averaging period in accordance with Treasury Regulation 1.409A-1(b)(5)(iv)(A). The method of determining Fair Market Value with respect to an Award shall be determined by the Administrator and may differ depending on whether Fair Market Value is in reference to the grant, exercise, vesting, settlement, or payout of an Award; provided that, if the Administrator does not specify a different method, the Fair Market Value of a Share as of a given date shall be the closing sale price as of the trading day immediately preceding the date as of which Fair Market Value is to be determined or, if there shall be no such sale on such date, the next preceding day on which such a sale shall have occurred. If the Stock is not traded on an established stock exchange, the Administrator shall determine in good faith the Fair Market Value in whatever manner it considers appropriate, but based on objective criteria. Notwithstanding the foregoing, in the case of the sale of Shares on the Applicable Exchange, the actual sale price shall be the Fair Market Value of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Incentive Award" means the right to receive a cash payment to the extent Performance Goals are achieved (or other requirements are met), and shall include "Annual Incentive Awards" as described in Section 10 and "Long-Term Incentive Awards" as described in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Incentive Stock Option" means an Option that is intended to qualify as an "incentive stock option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Non-Employee Director" means a Director who is not also an employee of the Company or its Subsidiaries and, to the extent necessary for Awards to comply with Rule 16b-3 under the Exchange Act, who otherwise meets the definition of "Non-Employee Director" in Rule 16b-3(b)(3) under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Nonqualified Stock Option" means an Option that is not intended to qualify as an Incentive Stock Option.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "Option" means the right to purchase a Share at a stated price for a specified period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Participant" means an individual selected by the Administrator to receive an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "Performance Goals" means any objective or subjective goals the Administrator establishes with respect to an Award. A Performance Goal may, but is not required to, relate to one or more of the following with respect to the Company or any one or more Subsidiaries, Affiliates or other business units: basic earnings per common share for the Company on a consolidated basis; diluted earnings per common share for the Company on a consolidated basis; total shareholder return; fair market value of shares; net sales; cost of sales; gross profit; selling, general and administrative expenses; operating income; earnings before interest and the provision for income taxes (EBIT); earnings before interest, the provision for income taxes, depreciation, and amortization (EBITDA); net income; accounts receivable; return on equity; return on assets; return on invested capital; return on sales; non-catastrophic claims incurred; reinsurance costs; gross premiums earned; economic value added, or other measure of profitability that considers the cost of capital employed; free cash flow; net cash provided by operating activities; net increase (decrease) in cash and cash equivalents; customer satisfaction; market share; and/or quality. Unless otherwise determined by the Administrator, the relevant measurement of performance as to each Performance Goal shall be computed in accordance with generally accepted accounting principles, if applicable. The Administrator reserves the right to adjust Performance Goals, or modify the manner of measuring or evaluating a Performance Goal, for any reason the Administrator determines is appropriate, including but not limited to by excluding the effects of (i) charges for reorganizing and restructuring, (ii) discontinued operations, (iii) asset write-downs, (iv) gains or losses on the disposition of a business, (v) mergers, acquisitions or dispositions, and (vi) extraordinary, unusual and/or non-recurring items of gain or loss. The inclusion in an Award agreement of specific adjustments or modifications shall not be deemed to preclude the Administrator from making other adjustments or modifications, in its discretion, as described herein, unless the Award agreement provides that the adjustments or modifications described in such agreement shall be the sole adjustments or modifications. The Administrator may establish other Performance Goals not listed in this Plan. Where applicable, the Performance Goals may be expressed, without limitation, in terms of attaining a specified level of the particular criterion or the attainment of an increase or decrease (expressed as absolute numbers or a percentage) in the particular criterion or achievement in relation to a peer group or other index. The Performance Goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be paid (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "Performance Shares" means the right to receive Shares to the extent Performance Goals are achieved (or other requirements are met).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Performance Unit" means the right to receive a cash payment and/or Shares valued in relation to a unit that has a designated dollar value or the value of which is equal to the Fair Market Value of one or more Shares, to the extent Performance Goals are achieved (or other requirements are met).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Person" means any individual, firm, partnership, corporation or other entity, including any successor (by merger or otherwise) of such entity, or a group of any of the foregoing acting in concert.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Plan" means this TypTap Insurance Group, Inc. 2021 Omnibus Incentive Plan, as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Restricted Stock" means Shares that are subject to a risk of forfeiture or restrictions on transfer, or both a risk of forfeiture and restrictions on transfer, which may lapse upon the achievement or partial achievement of Performance Goals or upon the completion of a period of service, or both.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "Restricted Stock Unit" means the right to receive a cash payment and/or Shares the value of which is equal to the Fair Market Value of one Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "Section 16 Participants" means Participants who are subject to the provisions of Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Share" means a share of Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Stock" means the common stock, par value $0.001 per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Stock Appreciation Right" or "SAR" means the right to receive a cash payment, and/or Shares with a Fair Market Value, equal to the appreciation of the Fair Market Value of a Share during a specified period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Subsidiary" means any corporation, limited liability company or other limited liability entity in an unbroken chain of entities beginning with the Company if each of the entities (other than the last entities in the chain) owns the stock or equity interest possessing more than fifty percent (50%) of the total combined voting power of all classes of stock or other equity interests in one of the other entities in the chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Administration.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Administration*. In addition to the authority specifically granted to the Administrator in this Plan, the Administrator has full discretionary authority to administer this Plan, including but not limited to the authority to: (i) interpret the provisions of this Plan or any agreement covering an Award; (ii) prescribe, amend and rescind rules and regulations relating to this Plan; (iii) correct any defect, supply any omission, or reconcile any inconsistency in the Plan, any Award or any agreement covering an Award in the manner and to the extent it deems desirable to carry this Plan or such Award into effect; and (iv) make all other determinations necessary or advisable for the administration of this Plan. All Administrator determinations shall be made in the sole discretion of the Administrator and are final and binding on all interested parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Delegation to Other Committees or Officers*. To the extent applicable law permits, the Board may delegate to another committee of the Board, or the Committee may delegate to a subcommittee of the Committee or to one or more officers of the Company, any or all of their respective authority and responsibility as an Administrator of the Plan; *provided* that no such delegation is permitted with respect to Stock-based Awards made to Section 16 Participants at the time any such delegated authority or responsibility is exercised unless the delegation is to another committee of the Board consisting entirely of Non-Employee Directors. If the Board or the Committee has made such a delegation, then all references to the Administrator in this Plan include such other committee, subcommittee or one or more officers to the extent of such delegation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Liability; Indemnification*. No member of the Board or the Committee, and no officer or member of any other committee to whom a delegation under Section 3(b) has been made, will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan or any Award. The Company will indemnify and hold harmless each such individual as to any acts or omissions, or determinations made, in each case done or made in good faith, with respect to this Plan or any Award to the maximum extent that the law and the Company's By-Laws permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Eligibility.** The Administrator may designate any of the following as a Participant from time to time, to the extent of the Administrator's authority: any officer or other employee of the Company or its Affiliates; any individual that the Company or an Affiliate has engaged to become an officer or employee; any consultant or advisor who provides services to the Company or its Affiliates; or any Director, including a Non-Employee Director. The Administrator's designation of, or granting of an Award to, a Participant will not require the Administrator to designate such individual as a Participant or grant an Award to such individual at any future time. The Administrator's granting of a particular type of Award to a Participant will not require the Administrator to grant any other type of Award to such individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Types of Awards.** Subject to the terms of this Plan, the Administrator may grant any type of Award to any Participant it selects, but only employees of the Company or a Subsidiary may receive grants of Incentive Stock Options. Awards may be granted alone or in addition to, in tandem with, or (subject to the prohibition on repricing set forth in Section 15(e)) in substitution for any other Award (or any other award granted under another plan of the Company or any Affiliate, including the plan of an acquired entity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Shares Reserved under this Plan.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Plan Reserve*. Subject to adjustment as provided in Section 17, as of the Effective Date, an aggregate of 7,700,000 Shares are reserved for issuance under this Plan, all of which may be issued pursuant to the exercise of Incentive Stock Options. The aggregate number of Shares reserved for issuance under this Plan shall be increased annually on the first day of each fiscal year of the Company after the Effective Date, commencing on the first day of the Company's fiscal year 2023, by a number of Shares equal to the least of: (i) 4,000,000 Shares, (ii) 2% of the outstanding shares of all classes of the Company's common stock as of the last day of the immediately preceding fiscal year or (iii) such other number of Shares as the Board may determine. The aggregate number of Shares reserved for issuance under this Plan shall also be increased by the number of any Shares subject to awards granted under the Company's 2021 Equity Incentive Plan as of the Effective Date that, after the Effective Date, expire or otherwise terminate without having been exercised in full or are forfeited to or repurchased by the Company (provided that the maximum number of Shares that may be added to the Plan pursuant to this sentence is 5,904,783 Shares). The Shares reserved for issuance may be either authorized and unissued Shares or Shares reacquired at any time and now or hereafter held as treasury stock. The aggregate number of Shares reserved under this Section 6(a) shall be depleted on the date of grant of an Award by the maximum number of Shares, if any, that may be issuable under an Award as determined at the time of grant. Notwithstanding the foregoing, an Award that may be settled solely in cash shall not cause any depletion of the Plan's Share reserve at the time such Award is granted.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Replenishment of Shares Under this Plan*. To the extent (i) an Award lapses, expires, terminates or is cancelled without the issuance of Shares under the Award (whether due currently or on a deferred basis) or is settled in cash, (ii) it is determined during or at the conclusion of the term of an Award that all or some portion of the Shares with respect to which the Award was granted will not be issuable on the basis that the conditions for such issuance will not be satisfied, (iii) Shares are forfeited under an Award (except as described below), (iv) Shares are issued under any Award and the Company subsequently reacquires them pursuant to rights reserved upon the issuance of the Shares, or (v) Shares are tendered or withheld in payment of the exercise price of an Option or as a result of the net settlement of an outstanding Stock Appreciation Right or (vi) Shares are tendered or withheld to satisfy federal, state or local tax withholding obligations, then such Shares shall be recredited to the Plan's reserve and may again be used for new Awards under this Plan, but Shares recredited to the Plan's reserve pursuant to clause (iv), (v) or (vi) may not be issued pursuant to Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Non-Employee Director Award Limitation*. Subject to adjustment as provided in Section 7, the maximum number of Shares that may be granted during any fiscal year to any individual Non-Employee Director shall not exceed that number of Shares that has a grant date fair value of, when added to any cash compensation received by such Non-Employee Director, $300,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Options.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each Option, including but not limited to: (a) whether the Option is an Incentive Stock Option that meets the requirements of Code Section 422, or a Nonqualified Stock Option that does not meet the requirements of Code Section 422; (b) the grant date, which may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares subject to the Option; (d) the exercise price, which may never be less than the Fair Market Value of the Shares subject to the Option as determined on the date of grant, (e) the terms and conditions of vesting and exercise; (f) the term, except that an Option must terminate no later than ten (10) years after the date of grant; and (g) the manner of payment of the exercise price. In all other respects, the terms of any Incentive Stock Option should comply with the provisions of Code Section 422 except to the extent the Administrator determines otherwise. If an Option that is intended to be an Incentive Stock Option fails to meet the requirements thereof, the Option shall automatically be treated as a Nonqualified Stock Option to the extent of such failure. To the extent permitted by the Administrator, and subject to such procedures as the Administrator may specify, the payment of the exercise price of Options may be made by (w) delivery of cash or other Shares or other securities of the Company (including by attestation) having a then Fair Market Value equal to the purchase price of such Shares, (x) by delivery (including by fax) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the Shares and deliver the sale or margin loan proceeds directly to the Company to pay for the exercise price, (y) by surrendering the right to receive Shares otherwise deliverable to the Participant upon exercise of the Award having a Fair Market Value at the time of exercise equal to the total exercise price, or (z) by any combination of the methods set forth in clauses (w), (x) and/or (y). Except to the extent otherwise set forth in an Award agreement, a Participant shall have no rights as a holder of Stock as a result of the grant of an Option until the Option is exercised, the exercise price and applicable withholding taxes are paid and the Shares subject to the Option are issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Stock Appreciation Rights.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each SAR, including but not limited to: (a) whether the SAR is granted independently of an Option or relates to an Option; (b) the grant date, which may not be any day prior to the date that the Administrator approves the grant; (c) the number of Shares to which the SAR relates; (d) the grant price, which may never be less than the Fair Market Value of the Shares subject to the SAR as determined on the date of grant; (e) the terms and conditions of exercise or maturity, including vesting; (f) the term, *provided* that an SAR must terminate no later than ten (10) years after the date of grant; and (g) whether the SAR will be settled in cash, Shares or a combination thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Performance and Stock Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award of Shares, Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, including, but not limited to: (a) the number of Shares and/or units to which such Award relates; (b) whether, as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be achieved during such period as the Administrator specifies; (c) the length of the vesting and/or performance period and, if different, the date on which payment of the benefit provided under the Award will be made; (d) with respect to Performance Units, whether to measure the value of each unit in relation to a designated dollar value or the Fair Market Value of one or more Shares; and (e) with respect to Restricted Stock Units and Performance Units, whether to settle such Awards in cash, in Shares (including Restricted Stock), or in a combination of cash and Shares; provided that no dividends or Dividend Equivalent Units shall be paid on Performance Shares or Performance Units prior to their vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Annual Incentive Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of an Annual Incentive Award, including but not limited to the Performance Goals, performance period, the potential amount payable, and the timing of payment; *provided* that the Administrator must require that payment of all or any portion of the amount subject to the Annual Incentive Award is contingent on the achievement or partial achievement of one or more Performance Goals during the period the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant's death, Disability, or such other circumstances as the Administrator may specify; and *provided further* that any performance period applicable to an Annual Incentive Award must relate to a period of at least one year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Long-Term Incentive Awards.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of a Long-Term Incentive Award, including, but not limited to, the Performance Goals, performance period (which must be more than one year), the potential amount payable, and the timing of payment; *provided* that the Administrator must require that payment of all or any portion of the amount subject to the Long-Term Incentive Award is contingent on the achievement or partial achievement of one or more Performance Goals during the period the Administrator specifies, although the Administrator may specify that all or a portion of the Performance Goals subject to an Award are deemed achieved upon a Participant's death, Disability or retirement (as defined by the Administrator), or such other circumstances as the Administrator may specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Dividend Equivalent Units.** Subject to the terms of this Plan, the Administrator will determine all terms and conditions of each award of Dividend Equivalent Units, including but not limited to whether: (a) such Award will be granted in tandem with another Award; (b) payment of the Award will be made concurrently with dividend payments or credited to an account for the Participant which provides for the deferral of such amounts until a stated time; (c) the Award will be settled in cash or Shares; and (d) as a condition for the Participant to realize all or a portion of the benefit provided under the Award, one or more Performance Goals must be achieved during such period as the Administrator specifies; *provided* that Dividend Equivalent Units may not be granted in connection with an Option or Stock Appreciation Right; and *provided further* that no Dividend Equivalent Unit granted in tandem with another Award shall include vesting provisions more favorable to the Participant than the vesting provisions, if any, to which the tandem Award is subject; and *provided further* that no Dividend Equivalent Unit relating to another Award shall provide for payment with respect such other Award prior to its vesting.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Other Stock-Based Awards.** Subject to the terms of this Plan, the Administrator may grant to a Participant shares of unrestricted Stock as replacement for other compensation to which the Participant is entitled, such as in payment of director fees, in lieu of cash compensation, in exchange for cancellation of a compensation right, or as a bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14. Transferability*.*** Awards are not transferable other than by will or the laws of descent and distribution, unless and to the extent the Administrator allows a Participant to: (a) designate in writing a beneficiary to exercise the Award or receive payment under the Award after the Participant's death; (b) transfer an Award to the former spouse of the Participant as required by a domestic relations order incident to a divorce; or (c) transfer an Award; *provided*, *however*, that with respect to clause (c) above the Participant may not receive consideration for such a transfer of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15. Termination and Amendment of Plan; Amendment, Modification or Cancellation of Awards.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Term of Plan*. Unless the Board earlier terminates this Plan pursuant to Section 15(b), this Plan will terminate on, and no further Awards may be granted under this Plan after, the tenth (10th) anniversary of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Termination and Amendment*. The Board or the Administrator may amend, alter, suspend, discontinue or terminate this Plan at any time, subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) prior action of the Board, (B) applicable corporate law, or (C) any other applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shareholders must approve any amendment of this Plan to the extent the Company determines such approval is required by: (A) Section 16 of the Exchange Act, (B) the Code, (C) the listing requirements of any principal securities exchange or market on which the Shares are then traded, or (D) any other applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shareholders must approve any of the following Plan amendments: (A) an amendment to materially increase any number of Shares specified in Section 6(a) or the limits set forth in Section 6(b)(except as permitted by Section 17), or (B) an amendment that would diminish the protections afforded by Section 15(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Amendment, Modification, Cancellation and Disgorgement of Awards*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 15(e) and subject to the requirements of this Plan, the Administrator may modify, amend or cancel any Award; *provided* that, except as otherwise provided in the Plan or the Award agreement, any modification or amendment that materially diminishes the rights of the Participant, or the cancellation of an Award, shall be effective only if agreed to by the Participant or any other person(s) as may then have an interest in such Award, but the Administrator need not obtain Participant (or other interested party) consent for the modification, amendment or cancellation of an Award pursuant to the provisions of subsection (ii) or Section 17 or as

------

follows: (A) to the extent the Administrator deems such action necessary to comply with any applicable law or the listing requirements of any principal securities exchange or market on which the Shares are then traded; (B) to the extent the Administrator deems necessary to preserve favorable accounting or tax treatment of any Award for the Company; or (C) to the extent the Administrator determines that such action does not materially and adversely affect the value of an Award or that such action is in the best interest of the affected Participant (or any other person(s) as may then have an interest in the Award). Notwithstanding the foregoing, unless determined otherwise by the Administrator, any such amendment shall be made in a manner that will enable an Award intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to continue to so comply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything to the contrary in an Award agreement, the Administrator shall have full power and authority to terminate or cause the Participant to forfeit the Award, and require the Participant to disgorge to the Company any gains attributable to the Award, if the Participant engages in any action constituting, as determined by the Administrator in its discretion, Cause for termination, or a breach of any Award agreement or any other agreement between the Participant and the Company or an Affiliate concerning noncompetition, nonsolicitation, confidentiality, trade secrets, intellectual property, nondisparagement or similar obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Awards granted pursuant to this Plan, and any Stock issued or cash paid pursuant to an Award, shall be subject to any recoupment or clawback policy that is adopted by, or any recoupment or similar requirement otherwise made applicable by law, regulation or listing standards to, the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Survival of Authority and Awards*. Notwithstanding the foregoing, the authority of the Board and the Administrator under this Section 15 and to otherwise administer the Plan with respect to then-outstanding Awards will extend beyond the date of this Plan's termination. In addition, termination of this Plan will not affect the rights of Participants with respect to Awards previously granted to them, and all unexpired Awards will continue in force and effect after termination of this Plan except as they may lapse or be terminated by their own terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Repricing and Backdating Prohibited*. Notwithstanding anything in this Plan to the contrary, and except for the adjustments provided for in Section 17, neither the Administrator nor any other person may (i) amend the terms of outstanding Options or SARs to reduce the exercise or grant price of such outstanding Options or SARs; (ii) cancel outstanding Options or SARs in exchange for Options or SARs with an exercise or grant price that is less than the exercise or grant price of the original Options or SARs; or (iii) cancel outstanding Options or SARs with an exercise or grant price above the current Fair Market Value of a Share in exchange for cash or other securities. In addition, the Administrator may not make a grant of an Option or SAR with a grant date that is effective prior to the date the Administrator takes action to approve such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Foreign Participation*. To assure the viability of Awards granted to Participants employed or residing in foreign countries, the Administrator may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, accounting or custom. Moreover, the Administrator may approve such supplements to, or amendments, restatements or alternative versions of, this Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative versions that the Administrator approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan for any other country. In addition, all such supplements, amendments, restatements or alternative versions must comply with the provisions of Section 15(b)(ii).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16. Taxes*.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Withholding*. In the event the Company or one of its Affiliates is required to withhold any Federal, state or local taxes or other amounts in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement of an Award or disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from any payments of any kind otherwise due the Participant cash, or with the consent of the Administrator, Shares otherwise deliverable or vesting under an Award, to satisfy such tax or other obligations. Alternatively, the Company or its Affiliate may require such Participant to pay to the Company or its Affiliate, in cash, promptly on demand, or make other arrangements satisfactory to the Company or its Affiliate regarding the payment to the Company or its Affiliate of the aggregate amount of any such taxes and other amounts. If Shares are deliverable upon exercise or payment of an Award, then the Administrator may permit a Participant to satisfy all or a portion of the Federal, state and local withholding tax obligations arising in connection with such Award by electing to (i) have the Company or its Affiliate withhold Shares otherwise issuable under the Award, (ii) tender back Shares received in connection with such Award or (iii) deliver other previously owned Shares, in each case having a Fair Market Value equal to the amount to be withheld; *provided* that the amount to be withheld in Shares may not exceed the total maximum statutory tax withholding obligations associated with the transaction to the extent needed for the Company and its Affiliates to avoid an accounting charge. If an election is provided, the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise as the Administrator requires. In any case, the Company and its Affiliates may defer making payment or delivery under any Award if any such tax may be pending unless and until indemnified to its satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *No Guarantee of Tax Treatment*. Notwithstanding any provisions of this Plan to the contrary, the Company does not guarantee to any Participant or any other Person with an interest in an Award that (i) any Award intended to be exempt from Code Section 409A shall be so exempt, (ii) any Award intended to comply with Code Section 409A or Code Section 422 shall so comply, or (iii) any Award shall otherwise receive a specific tax treatment under any other applicable tax law, nor in any such case will the Company or any Affiliate be required to indemnify, defend or hold harmless any individual with respect to the tax consequences of any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17. Adjustment and Change of Control Provisions.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Adjustment of Shares*. If (i) the Company shall at any time be involved in a merger or other transaction in which the Shares are changed or exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable in Shares, other securities (other than stock purchase rights issued pursuant to a shareholder rights agreement) or other property; (iii) the Company shall effect a cash dividend the amount of which, on a per Share basis, exceeds ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall effect any other dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Board determines by resolution is special or extraordinary in nature or that is in connection with a transaction that the Company characterizes publicly as a recapitalization or reorganization

------

involving the Shares; or (iv) any other event shall occur, which, in the case of this clause (iv), in the judgment of the Administrator necessitates an adjustment to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, then the Administrator shall, in such manner as it may deem equitable to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, adjust any or all of: (A) the number and type of Shares subject to this Plan (including the number and type of Shares described in Sections 6(a) and 6(c)) and which may after the event be made the subject of Awards; (B) the number and type of Shares subject to outstanding Awards; (C) the grant, purchase, or exercise price with respect to any Award; and (D) the Performance Goals of an Award. In any such case, the Administrator may also (or in lieu of the foregoing) make provision for a cash payment to the holder of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of an Award) in an amount determined by the Administrator effective at such time as the Administrator specifies (which may be the time such transaction or event is effective). However, in each case, with respect to Awards of Incentive Stock Options, no such adjustment may be authorized to the extent that such authority would cause this Plan to violate Code Section 422(b). Further, the number of Shares subject to any Award payable or denominated in Shares must always be a whole number. In any event, previously granted Options or SARs are subject to only such adjustments as are necessary to maintain the relative proportionate interest the Options and SARs represented immediately prior to any such event and to preserve, without exceeding, the value of such Options or SARs.

Without limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction or event, whether or not constituting a Change of Control (other than any such transaction in which the Company is the continuing corporation and in which the outstanding Stock is not being converted into or exchanged for different securities, cash or other property, or any combination thereof), the Administrator may substitute, on an equitable basis as the Administrator determines, for each Share then subject to an Award and the Shares subject to this Plan (if the Plan will continue in effect), the number and kind of shares of stock, other securities, cash or other property to which holders of Stock are or will be entitled in respect of each Share pursuant to the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Issuance or Assumption*. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise reserved or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization, the Administrator may authorize the issuance or assumption of awards under this Plan upon such terms and conditions as it may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Effect of Change of Control*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In order to preserve a Participant's rights under an Award in the event of a Change of Control, the Administrator in its discretion may, at the time an Award is made or at any time thereafter, take one or more of the following actions: (a) provide for the acceleration of any time period, or the deemed achievement of any Performance Goals, relating to the exercise or realization of the Award; (b) provide for the purchase or cancellation of the Award for an amount of cash or other property that could have been received upon the exercise or realization of the Award had the Award been currently exercisable or payable (or the cancellation of Awards in exchange for no payment to the extent that no cash or other property would be received upon the exercise or realization of the Award in such circumstances); (c) adjust the terms of the Award in the manner determined by the Administrator to reflect the Change of Control; (d) cause the Award to be assumed, or new right substituted therefor, by another entity; or (e) make such other provision as the Administrator may consider equitable and in the best interests of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except to the extent the Participant has in effect an employment or similar agreement with the Company or any Affiliate or is subject to a policy that provides for a more favorable result to the Participant upon a Change of Control, in the event that the Company's legal counsel or accounting advisor determines that any payment, benefit or transfer by the Company under this Plan or any other plan, agreement, or arrangement to or for the benefit of the Participant (in the aggregate, the "Total Payments") would be subject to the tax ("Excise Tax") imposed by Code Section 4999 but for this subsection (d), then, notwithstanding any other provision of this Plan to the contrary, the Total Payments shall be delivered either (i) in full or (ii) in an amount such that the value of the aggregate Total Payments that the Participant is entitled to receive shall be One Dollar ($1.00) less than the maximum amount that the Participant may receive without being subject to the Excise Tax, whichever of clause (i) or (ii) results in the receipt by the Participant of the greatest benefit on an after-tax basis (taking into account applicable federal, state and local income taxes and the Excise Tax). In the event that clause (ii) results in a greater after-tax benefit to the Participants, payments or benefits included in the Total Payments shall be reduced or eliminated by applying the following principles, in order: (A) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (B) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (C) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination would violate Code Section 409A, then the reduction shall be made pro rata among the payments or benefits included in the Total Payments (on the basis of the relative present value of the parachute payments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Certain Modifications*. Notwithstanding anything contained in this Section 17, the Board may, in its sole and absolute discretion, amend, modify or rescind the provisions of this Section 17 if it determines that the operation of this Section 17 may prevent a transaction in which the Company, a Subsidiary or any Affiliate is a party from receiving desired tax treatment, including without limitation requiring that each Participant receive a replacement or substitute Award issued by the surviving or acquiring corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18. Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Other Terms and Conditions*. The Administrator may provide in any Award agreement such other provisions (whether or not applicable to the Award granted to any other Participant) as the Administrator determines appropriate to the extent not otherwise prohibited by the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Employment and Service*. The issuance of an Award shall not confer upon a Participant any right with respect to continued employment or service with the Company or any Affiliate, or the right to continue as a Director. Unless determined otherwise by the Administrator, for purposes of the Plan and all Awards, the following rules shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Participant who transfers employment between the Company and its Affiliates, or between Affiliates, will not be considered to have terminated employment;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Participant who ceases to be a Non-Employee Director because he or she becomes an employee of the Company or an Affiliate shall not be considered to have ceased service as a Director with respect to any Award until such Participant's termination of employment with the Company and its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a Participant who ceases to be employed by the Company or an Affiliate and immediately thereafter becomes a Non-Employee Director, a non-employee director of an Affiliate, or a consultant to the Company or any Affiliate shall not be considered to have terminated employment until such Participant's service as a director of, or consultant to, the Company and its Affiliates has ceased; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate.

Notwithstanding the foregoing, for purposes of an Award that constitutes "nonqualified deferred compensation" subject to Code Section 409A, if a Participant's termination of employment or service triggers the payment of such nonqualified deferred compensation under such Award, then the Participant will be deemed to have terminated employment or service upon his or her "separation from service" within the meaning of Code Section 409A. Notwithstanding any other provision in this Plan or an Award to the contrary, if any Participant is a "specified employee" within the meaning of Code Section 409A as of the date of his or her "separation from service" within the meaning of Code Section 409A, then, to the extent required to avoid the imposition of additional taxes under Code Section 409A, any payment of nonqualified deferred compensation made to the Participant on account of such separation from service shall not be made before a date that is six (6) months after the date of the separation from service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *No Fractional Shares*. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the Administrator may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other securities will be canceled, terminated or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Unfunded Plan; Awards Not Includable for Benefits Purposes*. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund with respect to this Plan's benefits. This Plan does not establish any fiduciary relationship between the Company and any Participant or other person. To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater than the rights of the Company's general unsecured creditors. Income recognized by a Participant pursuant to an Award shall not be included in the determination of benefits under any employee pension benefit plan (as such term is defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended) or group insurance or other benefit plans applicable to the Participant which are maintained by the Company or any Affiliate, except as may be provided under the terms of such plans or determined by resolution of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Requirements of Law and Securities Exchange*. The granting of Awards and the issuance of Shares in connection with an Award are subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required. Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability to deliver any Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws and the

------

applicable requirements of any securities exchange or similar entity, and unless and until the Participant has taken all actions required by the Company in connection therewith. The Company may impose such restrictions on any Shares issued under the Plan as the Company determines necessary or desirable to comply with all applicable laws, rules and regulations or the requirements of any national securities exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Governing Law; Venue*. This Plan, and all agreements under this Plan, will be construed in accordance with and governed by the laws of the State of Florida, without reference to any conflict of law principles. Any legal action or proceeding with respect to this Plan, any Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any Award or any award agreement, may only be brought and determined in a court sitting in the State of Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Limitations on Actions*. Any legal action or proceeding with respect to this Plan, any Award or any award agreement, must be brought within one (1) year after the day the complaining party first knew or should have known of the events giving rise to the complaint.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Construction*. Whenever any words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be construed as though they were used in the plural or singular, as the case may be, in all cases where they would so apply. Titles of sections are for general information only, and this Plan is not to be construed with reference to such titles. The title, label or characterization of an Award in an award agreement or in the Company's public filings or other disclosures shall not be determinative as to which specific Award type is represented by the award agreement. Instead, the Administrator may determine which specific type(s) of Award(s) is (are) represented by any award agreement, at the time such Award is granted or at any time thereafter. Except to the extent otherwise provided in the applicable award agreement, in the case of any Award that includes a "series of installment payments" (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Award holder's right to the series of installment payments shall be treated as a right to a series of separate payments and not as a right to a single payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Severability*. If any provision of this Plan or any award agreement or any Award (a) is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or (b) would cause this Plan, any award agreement or any Award to violate or be disqualified under any law the Administrator deems applicable, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Administrator, materially altering the intent of this Plan, award agreement or Award, then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such award agreement and such Award will remain in full force and effect.

## Exhibit 10.17

**Exhibit 10.17** 

**EXZEO GROUP, INC.** 

**2021 OMNIBUS INCENTIVE PLAN** 

**STOCK OPTION AWARD** 

[NAME]

[ADDRESS]

You have been granted an option (your "Option") to purchase shares ("Shares") of Common Stock of Exzeo Group, Inc., formerly known as TypTap Insurance Group, Inc. (the "Company"), under the Exzeo Group, Inc. 2021 Omnibus Incentive Plan (the "Plan"), effective as of the Grant Date, with the following terms and conditions:

---

| | |
|:---|:---|
| Grant Date: | [ ] |
| Vesting Commencement Date: | [ ] |
| Type of Option: | Nonqualified Stock Option |
| Number of Option Shares: | [ ] |
| Exercise Price per Share: | [ ] |
| Vesting: | The Option will vest and become exercisable with respect to one fourth (1/4) of the total Option Shares on the first anniversary the Vesting Commencement Date, and one sixteenth (1/16) of the total Option Shares on the First day of each January 1, April 1, July 1, and October 1 thereafter, provided that you remain in continuous employment or service with the Company or an Affiliate until the applicable vesting date.<br>Notwithstanding the foregoing, the unvested portion of the Option will vest in full upon a Change of Control, if you are continuously employed with, or in the service of, the Company or an Affiliate thereof through the day preceding the date of the Change in Control.<br>Upon your termination of employment, or cessation of services to, the Company and its Affiliates prior to the date the Option is fully vested, you will forfeit the unvested portion of the Option. |
| Termination Date: | Your Option expires at, and cannot be exercised after, the earliest to occur of:<br>• The tenth (10th) anniversary of the Grant Date;<br>• 12 months after your termination of employment or service as a result of death or disability (as determined by the Administrator); |

---

------

---

| | |
|:---|:---|
|  | • Your termination of employment or service for Cause; or<br>• 90 days after your termination of employment or service for any other reason, provided that if you die during this 90-day period, the exercise period will be extended until 12 months after the date of your death.<br>If the date this Option terminates as specified above falls on a day on which the stock market is not open for trading or on a date on which you are prohibited by Company policy (such as an insider trading policy) from exercising the Option, the termination date shall be automatically extended to the first available trading day following the original termination date, but not beyond the tenth (10th) anniversary of the Grant Date. |
| Manner of Exercise: | You may exercise your Option only to the extent vested and only if it has not terminated. To exercise your Option, you must complete the "Notice of Stock Option Exercise" form provided by the Company and return it to the address or send it via facsimile or email as indicated on the form, or use the equity platform or other exercise procedure prescribed by the Company. The exercise will not be completed until you pay the total exercise price and all applicable withholding taxes due as a result of the exercise to the Company and, to the extent prescribed by the Company, until you have executed a joinder agreement to any stockholders agreement or similar agreement maintained by the Company and provided any investment representation required by the Company.<br>If someone else wants to exercise your Option after your death, that person must contact the Company and prove to the Company's satisfaction that he or she is entitled to do so.<br>Your ability to exercise your Option may be restricted by the Company if required by applicable law.<br>No fractional Shares shall be issued pursuant to the grant or exercise of this Option. The Administrator shall determine whether the cash value of such fraction shall be paid or whether the fraction shall be canceled for no consideration. |
| Market Stand-Off: | In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, you agree that you shall not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Stock Option Award without the prior written consent of the Company. Such restriction shall be in effect for such period of time following the date of the final prospectus for the offering as may be determined by the Company. In no event, however, shall such period exceed one hundred eighty (180) days. |

---

------

---

| | |
|:---|:---|
| Restrictions on Transfer: | Your Option and all rights hereunder shall be non-assignable and non-transferable other than by will or the laws of descent and distribution and shall be exercisable during your lifetime only by you or your guardian or legal representative. |
| Taxes: | You (and not the Company or any Affiliate) shall be responsible for your federal, state, local or foreign tax liability and any of your other tax consequences that may arise as a result of the transactions contemplated by this Option. You shall rely solely on the determinations of your own tax advisors or your own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters. To the extent that the receipt, vesting or exercise of this Option, or other event, results in income to you for federal, state or local income tax purposes, you shall deliver to the Company or its Affiliate at the time the Company or its Affiliate is obligated to withhold taxes in connection with such receipt, vesting, exercise or other event, as the case may be, such amount as the Company or its Affiliate requires to meet its withholding obligation under applicable tax laws or regulations, and if you fail to do so, the Company shall not be obligated to deliver any Shares to you and shall have the right and authority to deduct or withhold from other compensation payable to you an amount sufficient to satisfy its withholding obligations.<br>To the extent permitted by the Company at the time a tax withholding requirement arises, you may satisfy the withholding requirement in whole or in part, by electing to have the Company withhold for its own account that number of Shares otherwise deliverable to you upon exercise having an aggregate Fair Market Value on the date the tax is to be determined equal to the tax that the Company must withhold in connection with the exercise; provided that the amount so withheld shall not exceed the maximum statutory rate to the extent necessary to avoid an accounting charge. The Fair Market Value of any fractional Share not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to you in cash. |
| Miscellaneous: | • Neither the Plan nor the grant of the Option shall constitute or be evidence of any agreement or understanding, express or implied, that you have a right to continue as an employee of the Company or any of its Affiliates for any period of time, or at any particular rate of compensation.<br>• The Plan and this Option constitute the entire understanding of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements between you and the Company with respect to the subject matter hereof. You expressly warrant that you are not accepting this Option in reliance on any promises, representations, or inducements other than those contained herein. |

---

------

• By accepting the grant of your Option, you agree not to sell any Shares acquired in connection with your Option other than as set forth in the Plan and at a time when applicable laws, Company policies or an agreement between the Company and its underwriters do not prohibit a sale.<br>• As a condition of the granting of your Option, you agree, for yourself and your legal representatives or guardians, that this Stock Option Award shall be interpreted by the Committee and that any interpretation by the Committee of the terms of this Stock Option Award or the Plan and any determination made by the Committee pursuant to this Stock Option Award or the Plan shall be final, binding and conclusive.<br>• Subject to the terms of the Plan, the Committee may modify or amend this Stock Option Award without your consent as permitted by Section 15(c) of the Plan or: (i) to the extent such action is deemed necessary by the Committee to comply with any applicable law or the listing requirements of any principal securities exchange or market on which Shares are then traded; (ii) to the extent the action is deemed necessary by the Committee to preserve favorable accounting or tax treatment of any award for the Company; or (iii) to the extent the Committee determines that such action does not materially and adversely affect the value of this Stock Option Award or that such action is in the best interest of you or any other person who may then have an interest in this Stock Option Award.<br>• This Stock Option Award may be executed in counterparts.<br>

Your Option is granted under and governed by the terms and conditions of the Plan, including provisions of the Plan relating to the right of the Company to repurchase Shares issued pursuant to the Plan. The terms of the Plan to the extent not stated herein are expressly incorporated herein by reference and in the event of any conflict between this Option and the Plan, the terms of the Plan shall govern, control and supersede over the provisions of this Option. Capitalized terms used in this Option and not defined shall have the meanings given in the Plan.

------

BY ACCEPTING THIS STOCK OPTION AWARD, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN. YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

---

| | | |
|:---|:---|:---|
| EXZEO GROUP, INC. | EXZEO GROUP, INC. | OPTIONEE |
| By: |  |  |
| Date: | _______________________ |  |

---

------

**EXZEO GROUP, INC.** 

**NOTICE OF STOCK OPTION EXERCISE** 

*Your completed form should be delivered to: <u>Brook Baker, General Counsel</u>* 

*Phone: <u>813.776.1009</u> Email: <u>bbaker@typtap.com</u>* 

***Incomplete forms may cause a delay in processing your option exercise.***

OPTIONEE INFORMATION

*Please complete the following. PLEASE WRITE YOUR FULL LEGAL NAME SINCE THIS NAME MAY BE ON YOUR SHARES.* 

Name: ______________________________________________________________________________________________

Street Address: _______________________________________________________________________________________

City: _____________________________ State: ________________________ Zip Code: _________________________

Work Phone #: (_______) - _________ - ___________ Home Phone #: (________) - ____________ - __________________

Social Security #: ______ - _____ - _______

DESCRIPTION OF OPTION(S) BEING EXERCISED

*Please complete the following for each option that you wish to exercise.* 

---

| | | |
|:---|:---|:---|
| Grant<br> Date | Number of Option<br>Shares Being<br>Purchased | Total Exercise Price (multiply Exercise<br>Price Per Share by Number of Option<br>Shares Being Purchased) |
|  | $— | $|
|  | $— | $|
|  | $— | $|
|  | $— | $|
|  | $— | $|
|  Aggregate Exercise Price | Aggregate Exercise Price | $|

---

## Exhibit 10.18

**Exhibit 10.18** 

**EXZEO GROUP, INC.** 

**2021 OMNIBUS INCENTIVE PLAN** 

**RESTRICTED STOCK AWARD** 

Dear [______________]:

You have been granted an award of shares of the common stock ("<u>Common Stock</u>") of Exzeo Group, Inc., formerly known as TypTap Insurance Group, Inc. (the "<u>Company</u>"), constituting a Restricted Stock Award (this "<u>Award</u>") under the Exzeo Group, Inc. 2021 Omnibus Incentive Plan (the "<u>Plan</u>") with terms and conditions described below. This Award is granted under and governed by the terms and conditions of the Plan. Additional provisions regarding this Award and definitions of capitalized terms used and not defined in this Award can be found in the Plan.

---

| | |
|:---|:---|
| Grant Date: | July 22, 2025 |
| Number of Shares of Restricted Stock<br> ("Restricted Shares"): | [____________] |
| Vesting Schedule: | The Restricted Shares will vest as follows.<br>• one-sixth of the Restricted Shares will vest on July 22, 2026, one-sixth of the Restricted Shares will vest on July 22, 2027, one-sixth of the Restricted Shares will vest on July 22, 2028, one-sixth of the Restricted Shares will vest July 22, 2029, one-sixth of the Restricted Shares will vest on July 22, 2030, one-sixth of the Restricted Shares will vest on July 22, 2031; provided that, on each such vesting date, you have been continuously employed by or in the service of the Company or an Affiliate through and including such date.<br>For purposes of this Award, the term "<u>Company Stock Value</u>" means (i) if the Company Stock Value is being measured on or following the date on which Company's Common Stock is traded on an Applicable Exchange, then the Company Stock Value will be the closing price of the Company's Common Stock on the Applicable Exchange, or (ii) if the Company's Common Stock is not then traded on an Applicable Exchange, then the Company Stock Value will be equal to the fair market value of a share of Common Stock as will be determined in writing by the Administrator as of a valuation date specified by the Administrator (the "<u>Applicable Valuation Date</u>"), which determination will be made specifically for the purpose of determining whether a vesting condition hereunder is satisfied (a "<u>Written Determination</u>"). For purposes of foregoing clause (ii), the determination of fair market value will assume that all outstanding preferred shares are converted into Common Stock in accordance with the conversion terms thereof immediately prior to the Applicable Valuation Date, and such determination will be made without valuation discounts for lack of marketability or lack of control (or similar discounts). |

---

------

---

| | |
|:---|:---|
|  | The foregoing share numbers and Company Stock Value numbers will be subject to adjustment by the Board or Administrator to take into account stock dividends or any subdivisions or combinations of the Common Stock by the Company that occur following the Grant Date. |
| Termination of Employment: | Upon your termination of employment with, or cessation of services to, the Company or an Affiliate thereof prior to the date the Restricted Shares are vested, you will forfeit the unvested Restricted Shares. |
| Release of Shares: | The Restricted Shares will be held in an account at the Company's transfer agent pending vesting (or in an account on the Company's stock book at such time that the Company does not have a transfer agent). As soon as practicable after any Restricted Shares vest, the applicable restrictions on the Restricted Shares will be removed and such Shares will be issued according to your instructions. |
| Transferability of Restricted Shares: | You may not sell, transfer or otherwise alienate or hypothecate any of your Restricted Shares until they are vested. In addition, by accepting this Award, you agree not to sell any Shares acquired under this Award other than as set forth in the Plan and at a time when applicable laws, Company policies or an agreement between the Company and its underwriters do not prohibit a sale. The Company also may require you to enter into a shareholder's agreement (or similar agreement) that will include additional restrictions on the transfer of Shares acquired under this Award that will remain effective after such Shares have vested. |
| Voting and Dividends: | While the Restricted Shares are subject to forfeiture, you may exercise full voting rights and will be entitled all dividends and other distributions paid with respect to the Restricted Shares, in each case so long as the applicable record date occurs before you forfeit the Restricted Shares; provided that any dividends and distributions other than cash dividends will be held in the custody of the Company and will be subject to the same risk of forfeiture, restrictions on transferability and other terms of this Award that apply to the Restricted Shares with respect to which such distributions were made. All such non-cash dividends or other distributions will be paid to you within 45 days following the full vesting of the Restricted Shares with respect to which such distributions were made. |
| Transferability of Award: | You may not transfer or assign this Award for any reason, other than as set forth in the Plan. Any attempted transfer or assignment will be null and void. |
| Market Stand-Off: | In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act of 1933, as amended, you agree that you will not directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer or agree to engage in any of the foregoing |

---

------

---

| | |
|:---|:---|
|  | transactions with respect to, any Shares acquired under this Award without the prior written consent of the Company and the Company's underwriters. Such restriction will be in effect for such period of time following the date of the final prospectus for the offering as may be determined by the Company. In no event, however, will such period exceed one hundred eighty (180) days. You agree to execute any lock-up agreement or similar agreement requested by the Company or the Company's underwriters to evidence the foregoing obligations plus such other obligations that are generally applied to Company stockholders in connection with the underwritten public offering. |
| Tax Withholding: | You understand that you (and not the Company or any Affiliate) will be responsible for your own federal, state, local or foreign tax liability and any other tax consequences that may arise as a result of the transactions contemplated by this Award. You will rely solely on the determinations of your tax advisors or your own determinations, and not on any statements or representations by the Company or any of its agents, with regard to all such tax matters. You understand that you may alter the tax treatment of the Shares subject to this Award by filing an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code"). Such election must be filed within thirty (30) days after the date of this Award to be effective. **You should consult with your tax advisor to determine the tax consequences of acquiring the Shares and the advantages and disadvantages of filing the Code Section 83(b) election. You acknowledge that it is your sole responsibility, and not the Company's, to file a timely election under Code Section 83(b), even if you request the Company or its representatives to make this filing on your behalf.**<br>To the extent that the receipt or the vesting of the Restricted Shares, or the payment of dividends on the Restricted Shares, results in income to you for federal, state or local income tax purposes, except as otherwise provided in the following paragraph, you will deliver to the Company at the time the Company is obligated to withhold taxes in connection with such receipt, vesting or payment, as the case may be, such amount as the Company requires to meet its withholding obligation under applicable tax laws or regulations. If you fail to do so, the Company has the right and authority to deduct or withhold from other compensation payable to you (including Restricted Shares as described in the following paragraph) an amount sufficient to satisfy its withholding obligations or to delay delivery of the shares.<br>If you do not make an election under Code Section 83(b) in connection with this Award and only if permitted by the Company, you may satisfy the withholding requirement in connection with the vesting of the Restricted Shares, in whole or in part, by electing to have the Company withhold for its own account the number of Restricted Shares that would otherwise be released to you on the date the tax is to be determined having an aggregate Fair Market Value (on the date the tax is to be determined) equal to the tax that the Company must withhold in connection with the vesting of such Restricted Shares. The Fair Market Value of any fractional Share not used to satisfy the withholding obligation (as determined on the date the tax is determined) will be paid to you in cash. |

---

------

---

| | |
|:---|:---|
| Miscellaneous: | • This Award may be amended only by written consent signed by both you and the Company, unless the amendment is not to your detriment. Notwithstanding the foregoing, this Award may be amended or terminated by the Board or the Committee without your consent in accordance with the provisions of the Plan.<br>• The failure of the Company to enforce any provision of this Award at any time will in no way constitute a waiver of such provision or of any other provision hereof.<br>• In the event any provision of this Award is held illegal or invalid for any reason, such illegality or invalidity will not affect the legality or validity of the remaining provisions of this Award, and this Award will be construed and enforced as if the illegal or invalid provision had not been included in this Award.<br>• As a condition to the grant of this Award, you agree (with such agreement being binding upon your legal representatives, guardians, legatees or beneficiaries) that this Award will be interpreted by the Committee and that any interpretation by the Committee of the terms of this Award or the Plan, and any determination made by the Committee pursuant to this Award or the Plan, will be final, binding and conclusive.<br>• This Award may be executed in counterparts. |

---

BY SIGNING BELOW AND ACCEPTING THIS RESTRICTED STOCK AWARD, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN. YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

---

| | | |
|:---|:---|:---|
| EXZEO GROUP, INC. | EXZEO GROUP, INC. |  |
| By: |  |  |
|  | Paresh Patel, Chief Executive Officer | [Name of Recipient] |
| Date: | ____________________ |  |

---

## Exhibit 21.1

**Exhibit 21.1** 

**EXZEO GROUP, INC.** 

**Subsidiaries** 

---

| | |
|:---|:---|
| *Subsidiaries of Exzeo Group, Inc.* | *Jurisdiction*<br> *of Incorporation* |
|  Cypress Tech Development Company, Inc. | Florida |
|  Dark Horse Re, LLC | Florida |
|  Exzeo Insurance Services, Inc. | Florida |
|  Exzeo Software Private Limited | Florida |
|  Exzeo USA, Inc. | Florida |

---

## Exhibit 23.2

**Exhibit 23.2** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Registration Statement on Form S-1 of our report dated June 3, 2025, with respect to the consolidated financial statements of Exzeo Group, Inc. and Subsidiaries. We also consent to the reference to our firm under the caption "Experts" in this Registration Statement.

---

| |
|:---|
| /s/ Forvis Mazars, LLP |
| Charlotte, North Carolina |
| September 25, 2025 |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Exzeo Group, Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Security Type**  | **Security Class Title**  | **Fee Calculation or Carry Forward Rule**  | **Maximum Aggregate Offering Price**  | **Fee Rate**  | **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Common Stock, par value $0.001 per share | 457(o) | $100000000.00 | 0.0001531 | $15310.00 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $100000000.00  |  | $15310.00  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $15310.00  |

---

 **Offering Note** <br>

<sup>1</sup> Maximum Aggregate Offering Price estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. Includes the aggregate offering price of additional shares that the underwriters have the option to purchase from the registrant.

---

| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Security Type**  | **Security Class Title**  | **Amount of Securities Previously Registered**  | **Maximum Aggregate Offering Price of Securities Previously Registered**  | **Form Type**  | **File Number**  | **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

---