Document:

STOCK PURCHASE AGREEMENT

 

This Agreement is made
and entered into as of August ______, 2005 (the “Effective Date”) by and between Homeowners of America Holding
Corporation, a Delaware corporation (the “Company”) and Richard P. Backus (the “Purchaser”).

 

1.            PURCHASE
OF SHARES. On the Effective Date and subject to the terms and conditions of this Agreement, Purchaser hereby purchases from
the Company, and Company hereby sells to Purchaser, an aggregate of One Hundred Thousand (100,000) shares of the Company’s
Common Stock, par value $0.0001 per share (the “Shares”), at the purchase price of $0.0001 per share (the “Purchase
Price Per Share”), for a total of $10.00 (the “Purchase Price”). As used in this Agreement, the term
“Shares” refers to the Shares purchased under this Agreement and includes all securities received (i) in replacement
of the Shares, (ii) as a result of stock dividends or stock splits with respect to the Shares, and (iii) in replacement of the
Shares in a merger, recapitalization, reorganization or similar corporate transaction.

 

2.            PAYMENT
OF PURCHASE PRICE; CLOSING.

 

2.1           Deliveries
by Purchaser. Purchaser hereby delivers to the Company: (i) a duly executed copy of this Agreement, (ii) two (2) copies of
a blank Stock Power and Assignment Separate from Stock Certificate in the form of Exhibit 1 attached hereto (the “Stock
Powers”), both executed by Purchaser (and Purchaser’s spouse, if any), (iii) if Purchaser is married, a Spouse
Consent in the form of Exhibit 2 attached hereto (the “Spouse Consent”) duly executed by Purchaser’s
spouse and (iv) the Purchase Price.

 

2.2           Deliveries
by the Company. Upon its receipt of the Purchase Price and all the documents to be executed and delivered by Purchaser to the
Company under Section 2, the Company will issue a duly executed stock certificate evidencing the Shares in the name of Purchaser,
with such certificate to be placed in escrow as provided in Section 7 until expiration or termination of both the Company’s
Repurchase Option and Right of First Refusal described in Sections 4 and 5.

 

3.            REPRESENTATIONS
AND WARRANTIES OF PURCHASER. Purchaser represents and warrants to the Company that:

 

3.1           Purchase
for Own Account for Investment. Purchaser is purchasing the Shares for Purchaser’s own account for investment purposes
only and not with a view to, or for sale in connection with, a distribution of the Shares within the meaning of the Securities
Act of 1933, as amended (the “1933 Act”). Purchaser has no present intention of selling or otherwise disposing
of all or any portion of the Shares and no one other than Purchaser has any beneficial ownership of any of the Shares.

 

3.2           Access
to Information. Purchaser has had access to all information regarding the Company and its present and prospective business,
assets, liabilities and financial condition that Purchaser reasonably considers important in making the decision to purchase the
Shares, and Purchaser has had ample opportunity to ask questions of the Company’s representatives concerning such matters
and this investment.

 

    	 

    	 

    

 

3.3           Understanding
of Risks. Purchaser is fully aware of (i) the highly speculative nature of the investment in the Shares; (ii) the financial
hazards involved; (iii) the lack of liquidity of the Shares and the restrictions on transferability of the Shares (e.g.,
that Purchaser may not be able to sell or dispose of the Shares or use them as collateral for loans); (iv) the qualifications and
backgrounds of the management of the Company; and (v) the tax consequences of investment in the Shares.

 

3.4           Purchaser’s
Qualifications. Purchaser has a preexisting personal or business relationship with the Company and/or certain of its officers
and/or directors of a nature and duration sufficient to make Purchaser aware of the character, business acumen and general business
and financial circumstances of the Company and/or such officers and directors. By reason of Purchaser’s business or financial
experience, Purchaser is capable of evaluating the merits and risks of this investment, has the ability to protect Purchaser’s
own interests in this transaction and is financially capable of bearing a total loss of this investment.

 

3.5           No
General Solicitation. At no time was Purchaser presented with or solicited by any publicly issued or circulated newspaper,
mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and purchase of
the Shares.

 

3.6           Compliance
with Securities Laws. Purchaser understands and acknowledges that, in reliance upon the representations and warranties made
by Purchaser herein, the Shares are not being registered with the Securities and Exchange Commission (“SEC”)
under the 1933 Act or being qualified under the Texas Securities Act, as amended (the “Act”), or under the blue
sky laws of any other state, but instead are being issued under an exemption or exemptions from the registration and qualification
requirements of the 1933 Act, the Act and the applicable blue sky laws of any other state in which such registration and qualification
is or may be necessary, which exemptions impose certain restrictions on Purchaser’s ability to transfer the Shares.

 

3.7           Restrictions
on Transfer. Purchaser understands that Purchaser may not transfer any Shares unless such Shares are registered under the 1933
Act and qualified under the Act and the blue sky laws of any other state in which such qualification is or may be necessary or
unless, in the opinion of counsel to the Company, exemptions from such registration and qualification requirements are available.
Purchaser understands that only the Company may file a registration statement with the SEC, the Texas Securities Commissioner or
the securities commissioner of any other state and that the Company is under no obligation to do so with respect to the Shares.
Purchaser has also been advised that exemptions from registration and qualification may not be available or may not permit Purchaser
to transfer all or any of the Shares in the amounts or at the times proposed by Purchaser.

 

3.8           Rule
144. In addition, Purchaser has been advised that SEC Rule 144 promulgated under the 1933 Act, which permits certain limited
sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares
be held for a minimum of one (1) year, and in certain cases two (2) years, after they have been purchased and paid for (within
the meaning of Rule 144), before they may be resold under Rule 144. Purchaser understands that Rule 144 may indefinitely restrict
transfer of the Shares so long as Purchaser remains an “affiliate” of the Company and “current public information”
about the Company (as defined in Rule 144) is not publicly available.

 

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4.            COMPANY’S
REPURCHASE OPTION. The Company or its assignees shall have the option to repurchase all or a portion of the Unvested Shares
(as defined below) on the terms and conditions set forth in this Section (the “Repurchase Option”) if Purchaser
ceases to be employed by the Company (as defined herein) for any reason, or no reason, including without limitation Purchaser’s
death, disability, voluntary resignation or termination by the Company with or without cause.

 

4.1           Definition
of “Employed by the Company”; “Termination Date”. For purposes of this Agreement, Purchaser will be
considered to be “employed by the Company” if the Board of Directors of the Company determines that Purchaser is rendering
substantial services as a director, officer, employee, consultant or independent contractor to the Company or to any parent, subsidiary
or affiliate of the Company. In case of any dispute as to whether Purchaser is employed by the Company, the Board of Directors
of the Company shall have sole discretion to determine whether Purchaser has ceased to be employed by the Company or any parent,
subsidiary or affiliate of the Company and the effective date on which Purchaser’s employment terminated (the “Termination
Date”).

 

4.2           Unvested
and Vested Shares. Shares that are vested pursuant to the schedule set forth herein are “Vested Shares”.
Shares that are not vested pursuant to the schedule set forth herein are “Unvested Shares”. Unvested Shares
may not be sold or otherwise transferred by Purchaser without the Company’s prior written consent. On the Effective Date,
all of the Shares will be Unvested Shares. Upon the closing of the Company’s first sale of its preferred stock in one transaction
or a series of related transactions for an aggregate purchase price to the Company of not less than $1,000,000 (the “Qualified
Financing Closing Date”), 25% of the Shares will become Vested Shares. Thereafter, for so long (and only for so long)
as Purchaser remains continuously employed by the Company or any subsidiary or parent of the Company, at all times after the Qualified
Financing Closing Date, an additional 25% of the Shares will become Vested Shares upon the first anniversary of the Qualified Financing
Closing Date and an additional 2.0833% of the Shares will become Vested Shares upon the expiration of each full month elapsed after
the first anniversary of the Qualified Financing Closing Date. No Shares will become Vested Shares after the Termination Date.
If the application of the vesting percentage results in a fractional share, such share shall be rounded up to the nearest whole
share for each month except for the last month in such vesting period, at the end of which last month the balance of Unvested Shares
shall become fully Vested Shares.

 

4.3           Adjustments.
The number of Shares that are Vested Shares or Unvested Shares will be proportionally adjusted to reflect any stock dividend, stock
split, reverse stock split, combination or other similar recapitalization effecting the common stock of the Company occurring after
the Effective Date.

 

4.4           Exercise
of Repurchase Option at Original Price. At any time within ninety (90) days after the Termination Date, the Company may elect
to repurchase any or all of the Unvested Shares by giving Purchaser written notice of exercise of the Repurchase Option. The Company
and/or its assignee(s) will then have the option to repurchase from Purchaser (or from Purchaser’s personal representative
as the case may be) any or all of the Unvested Shares at the Purchase Price Per Share specified in Section 1 -above, as adjusted
to reflect any stock dividend, stock split, reverse stock split, combination or other similar recapitalization effecting the common
stock of the Company occurring after the Effective Date (the “Repurchase Option Price”).

 

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4.5           Payment
of Repurchase Price. The Repurchase Option Price will be payable, at the option of the Company or its assignee(s), by check
or by cancellation of all or a portion of any outstanding indebtedness owed by Purchaser to the Company (or to such assignee) or
by any combination thereof. The Repurchase Option Price will be paid without interest within ninety (90) days after the Company
gives the Purchaser written notice of the exercise of its Repurchase Option.

 

4.6           Right
of Termination Unaffected. Nothing in this Agreement will be construed to limit or otherwise affect in any manner whatsoever
the right or power of the Company (or any parent, subsidiary or affiliate of the Company) to terminate Purchaser’s employment
with the Company (or any parent, subsidiary or affiliate of the Company) at any time for any reason or no reason, with or without
cause.

 

5.            RIGHT
OF FIRST REFUSAL. Unvested Shares may not be sold or otherwise transferred by Purchaser without the Company’s prior written
consent. Before any Vested Shares held by Purchaser or any transferee of such Vested Shares (either sometimes referred to herein
as the “Holder”) may be sold or otherwise transferred (including without limitation a transfer by gift or operation
of law), the Company and/or its assignee(s) will have a right of first refusal to purchase the Shares to be sold or transferred
(the “Offered Shares”) on the terms and conditions set forth in this Section (the “Right of First Refusal”).

 

5.1           Notice
of Proposed Transfer. The Holder of the Offered Shares will deliver to the Company a written notice (the “Notice”)
stating: (i) the Holder’s bona fide intention to sell or otherwise transfer the Offered Shares; (ii) the name and address
of each proposed purchaser or other transferee (the “Proposed Transferee”); (iii) the number of Offered Shares
to be transferred to each Proposed Transferee; (iv) the bona fide cash price or other consideration for which the Holder proposes
to transfer the Offered Shares (the “Offered Price”); and (v) that the Holder acknowledges this Notice is an
offer to sell the Offered Shares to the Company and/or its assignee(s) pursuant to the Company’s Right of First Refusal at
the Offered Price as provided for in this Agreement.

 

5.2           Exercise
or Right of First Refusal. At any time within thirty (30) days after the date of the Notice, the Company and/or its assignee(s)
may, by giving written notice to the Holder, elect to purchase all (or, with the consent of the Holder, less than all) the Offered
Shares proposed to be transferred to any one or more of the Proposed Transferees named in the Notice, at the purchase price determined
in accordance with subsection 5.3 below.

 

5.3           Purchase
Price. The purchase price for the Offered Shares purchased under this Section will be the Offered Price, provided that if the
Offered Price consists of no legal consideration (as, for example, in the case of a transfer by gift), the purchase price will
be the fair market value of the Offered Shares as determined in good faith by the Company’s Board of Directors. If the Offered
Price includes consideration other than cash, then the value of the non-cash consideration, as determined in good faith by the
Company’s Board of Directors, will conclusively be deemed to be the cash equivalent value of such non-cash consideration.

 

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5.4           Payment.
Payment of the purchase price for the Offered Shares will be payable, at the option of the Company and/or its assignee(s) (as applicable),
by check or by cancellation of all or a portion of any outstanding indebtedness owed by the Holder to the Company (or to such assignee,
in the case of a purchase of Offered Shares by such assignee) or by any combination thereof. The purchase price will be paid without
interest within sixty (60) days after the Company’s receipt of the Notice, or, at the option of the Company and/or its assignee(s),
in the manner and at the time(s) set forth in the Notice.

 

5.5           Holder’s
Right to Transfer. If Holder has not consented to the purchase of less than all of the Offered Shares proposed in the Notice
to be transferred to a given Proposed Transferee by the Company and/or its assignee(s) as provided in this Section, then the Holder
may sell or otherwise transfer all such Offered Shares to each Proposed Transferee at the Offered Price or at a higher price (and
if Holder consented to the purchase of less than all the Offered Shares proposed in the Notice to be transferred to a given Proposed
Transferee by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer any
remaining Offered Shares to each Proposed Transferee at the Offered Price or at a higher price), provided that (i) such
sale or other transfer is consummated within one hundred twenty (120) days after the date of the Notice, (ii) any such sale or
other transfer is effected in compliance with all applicable securities laws, and (iii) each Proposed Transferee agrees in writing
that the provisions of this Section will continue to apply to the Offered Shares in the hands of such Proposed Transferee. If the
Offered Shares described in the Notice are not transferred to each Proposed Transferee within such one hundred twenty (120) day
period, then a new Notice must be given to the Company, pursuant to which the Company will again be offered the Right of First
Refusal before any Shares held by the Holder may be sold or otherwise transferred.

 

5.6           Exempt
Transfers. Notwithstanding anything to the contrary in this Section, the following transfers of Vested Shares will be exempt
from the Right of First Refusal: (i) the transfer of any or all of the Vested Shares during Purchaser’s lifetime by gift
or on Purchaser’s death by will or intestacy to Purchaser’s “Immediate Family” (as defined below) or to
a trust for the benefit of Purchaser or Purchaser’s Immediate Family, provided that each transferee or other recipient
agrees in a writing satisfactory to the Company that the provisions of this Section will continue to apply to the transferred Vested
Shares in the hands of such transferee or other recipient: (ii) the transfer of any or all of the Vested Shares to an individual
retirement account or other tax deferred retirement plan in the name of or for the benefit of Purchaser, provided that each
transferee or other recipient agrees in a writing satisfactory to the Company that the provisions of this Section will continue
to apply to the transferred Vested Shares in the hands of such transferee or other recipient; (iii) the transfer of any and all
Vested Shares by a partnership to the partners of the partnership or by a limited liability company to the members of the limited
liability company, provided that each transferee or other recipient agrees in a writing satisfactory to the Company that the provisions
of this Section will continue to apply to the transferred Vested Shares in the hands of such transferee or other recipient; (iv)
any grant of a lien or security interest in. or pledge, hypothecation or encumbrance of, Vested Shares in accordance with and subject
to the provisions of Section 5.8; (v) any transfer of Vested Shares made pursuant to a statutory merger or statutory consolidation
of the Company with or into another corporation or corporations; (vi) any transfer of Shares to the Company; or (vii) any transfer
of Vested Shares pursuant to the winding up and dissolution of the Company. As used herein, the term “Immediate Family”
will mean Purchaser’s spouse, the lineal descendant or antecedent, father, mother, brother or sister, child, adopted child
or grandchild or adopted grandchild of Purchaser or Purchaser’s spouse, or the spouse of any child, adopted child, grandchild
or adopted grandchild of Purchaser or Purchaser’s spouse.

 

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5.7           Termination
of Right of First Refusal. The Right of First Refusal will terminate as to all Shares on the effective date of the first sale
of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by
the SEC under the 1933 Act (other than a registration statement relating solely to the issuance of Common Stock pursuant to a business
combination or an employee incentive or benefit plan).

 

5.8           Encumbrances
on Vested Shares. Purchaser may grant a lien or security interest in, or pledge, hypothecate or encumber Vested Shares only
if each party to whom such lien or security interest is granted, or to whom such pledge, hypothecation or other encumbrance is
made, agrees in a writing satisfactory to the Company that: (i) such lien, security interest, pledge, hypothecation or encumbrance
will not apply to such Vested Shares after they are acquired by the Company and/or its assignees under this Section; and (ii) the
provisions of this Section will continue to apply to such Vested Shares in the hands of such party and any transferee of such party.
Purchaser may not grant a lien or security interest in, or pledge, hypothecate or encumber, any Unvested Shares.

 

6.           RIGHTS
AS STOCKHOLDER. Subject to the terms and conditions of this Agreement, Purchaser will have all of the rights of a stockholder
of the Company with respect to the Shares from and after the date that Purchaser delivers the Purchase Price until such time as
Purchaser disposes of the Shares or the Company and/or its assignee(s) exercise(s) the Repurchase Option or Right of First Refusal.
Upon an exercise of the Repurchase Option or Right of First Refusal, Purchaser will have no further rights as a holder of the Shares
so purchased upon such exercise, except the right to receive payment for the Shares so purchased in accordance with the provisions
of this Agreement, and Purchaser will promptly surrender the stock certificate(s) evidencing the Shares so purchased to the Company
for transfer or cancellation.

 

7.            ESCROW.
As security for Purchaser’s faithful performance of this Agreement, Purchaser agrees, immediately upon receipt of the stock
certificate(s) evidencing the Shares, to deliver such certificate(s), together with the Stock Powers executed by Purchaser and
by Purchaser’s spouse, if any (with the date and number of Shares left blank), to the Secretary of the Company or other designee
of the Company (the “Escrow Holder”), who is hereby appointed to hold such certificate(s) and Stock Powers in
escrow and to take all such actions and to effectuate all such transfers and/or releases of such Shares as are in accordance with
the terms of this Agreement. Escrow Holder will act solely for the Company as its agent and not as a fiduciary. Purchaser and the
Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other party) for any actions or omissions
unless Escrow Holder is grossly negligent or intentionally fraudulent in carrying out the duties of Escrow Holder under this Agreement.
Escrow Holder may rely upon any letter, notice or other document executed with any signature purported to be genuine and may rely
on the advice of counsel and obey any order of any court with respect to the transactions contemplated by this Agreement. The Shares
will be released from escrow upon termination of the Repurchase Option and the Right of First Refusal.

 

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8.            TAX
CONSEQUENCES. PURCHASER UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF PURCHASER’S PURCHASE
OR DISPOSITION OF THE SHARES. PURCHASER REPRESENTS (i) THAT PURCHASER HAS CONSULTED WITH A TAX ADVISER THAT PURCHASER DEEMS ADVISABLE
IN CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND (ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR ANY TAX
ADVICE. Purchaser hereby acknowledges that Purchaser has been informed that, unless an election is filed by the Purchaser with
the Internal Revenue Service (and, if necessary, the proper state taxing authorities) within 30 days of the purchase of the Shares
to be effective, electing pursuant to Section 83(b) of the Internal Revenue Code (and similar state tax provisions, if applicable)
to be taxed currently on any difference between the Purchase Price of the Shares and their fair market value on the date of purchase,
there will be a recognition of taxable income to the Purchaser, measured by the excess, if any, of the fair market value of the
Shares, at the time they cease to be Unvested Shares, over the Purchase Price for such Shares. Purchaser represents that Purchaser
has consulted any tax advisors Purchaser deems advisable in connection with Purchaser’s purchase of the Shares and the filing
of the election under Section 83(b) and similar tax provisions. A form of Election under Section 83(b) is attached hereto as Exhibit
3 for reference. PURCHASER HEREBY ASSUMES ALL RESPONSIBILITY FOR FILING SUCH ELECTION AND PAYING ANY TAXES RESULTING FROM SUCH
ELECTION OR FROM FAILURE TO FILE THE ELECTION AND PAYING TAXES RESULTING FROM THE LAPSE OF THE REPURCHASE RESTRICTIONS ON THE UNVESTED
SHARES.

 

9.            RESTRICTIVE
LEGENDS AND STOP-TRANSFER ORDERS.

 

9.1           Legends.
Purchaser understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s)
evidencing the Shares, together with any other legends that may be required by state or federal securities laws, the Company’s
Certificate of Incorporation or Bylaws, any other agreement between Purchaser and the Company or any agreement between Purchaser
and any third party:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO
THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

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THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHTS OF REPURCHASE AND FIRST
REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A RESTRICTED STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND
THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH PUBLIC SALE AND
TRANSFER RESTRICTIONS, INCLUDING THE RIGHTS OF REPURCHASE AND FIRST REFUSAL, ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

THE SHARES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH IN A CERTAIN AGREEMENT BETWEEN THE ISSUER
AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. AS A RESULT OF
SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS AFTER THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE
COMMON STOCK OF THE ISSUER HEREOF. SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE SHARES.

 

9.2           Stop-Transfer
Instructions. Purchaser agrees that, to ensure compliance with the restrictions imposed by this Agreement, the Company may
issue appropriate “stop-transfer” instructions to its transfer agent, if any, and if the Company transfers its own
securities, it may make appropriate notations to the same effect in its own records.

 

9.3           Refusal
to Transfer. The Company will not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares, or to accord the right to vote
or pay dividends, to any purchaser or other transferee to whom such Shares have been so transferred.

 

10.          MARKET
STANDOFF AGREEMENT. Purchaser agrees in connection with any registration of the Company’s securities under the 1933 Act
that, upon the request of the Company or the underwriters managing any registered public offering of the Company’s securities,
Purchaser will not sell or otherwise dispose of any Shares without the prior written consent of the Company or such underwriters,
as the case may be, for such period of time (not to exceed one hundred eighty (180) days) alter the effective date of such registration
requested by such managing underwriters and subject to all restrictions as the Company or the managing underwriters may specify
for employee-stockholders generally. Purchaser further agrees to enter into any agreement reasonably required by the underwriters
to implement the foregoing.

 

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11.          COMPLIANCE
WITH LAWS AND REGULATIONS. The issuance and transfer of the Shares will be subject to and conditioned upon compliance by the
Company and Purchaser with all applicable state and federal laws and regulations and with all applicable requirements of any stock
exchange or automated quotation system on which the Company’s Common Stock may be listed or quoted at the time of such issuance
or transfer.

 

12.          GENERAL
PROVISIONS.

 

12.1         Assignments;
Successors and Assigns. The Company may assign any of its rights and obligations under this Agreement, including its rights
to repurchase Shares under the Repurchase Option and the Right of First Refusal. Any assignment of rights and obligations by any
other party to this Agreement requires the Company’s prior written consent. This Agreement, and the rights and obligations
of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors,
administrators and legal representatives.

 

12.2         Governing
Law. This Agreement will be governed by and construed in accordance with the laws of the State of Texas, without giving effect
to that body of laws pertaining to conflict of laws.

 

12.3         Notices.
Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing
and will be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following:
(i) at the time of personal delivery, if delivery is in person; (ii) at the time of transmission by facsimile, addressed to the
other party at its facsimile number specified herein (or hereafter modified by subsequent notice to the parties hereto), with confirmation
of receipt made by both telephone and printed confirmation sheet verifying successful transmission of the facsimile; (iii) one
(1) business day after deposit with an express overnight courier for United States deliveries, or two (2) business days after such
deposit for deliveries outside of the United States; or (iv) three (3) business days after deposit in the United States mail by
certified mail (return receipt requested) for United States deliveries.

 

All notices for delivery
outside the United States will be sent by facsimile or by express courier. All notices not delivered personally or by facsimile
will be sent with postage and/or other charges prepaid and properly addressed to the party to be notified at the address or facsimile
number set forth below the signature lines of this Agreement or at such other address or facsimile number as such other party may
designate by one of the indicated means of notice herein to the other party hereto. Notices by facsimile shall be machine verified
as received.

 

12.4         Further
Assurances. The parties agree to execute such further documents and instruments and to take such further actions as may he
reasonably necessary to carry out the purposes and intent of this Agreement.

 

12.5         Titles
and Headings. The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded
in interpreting or construing this Agreement. Unless otherwise specifically stated, all references herein to “sections”
and “exhibits” will mean “sections” and “exhibits” to this Agreement.

 

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12.6         Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original,
and all of which together shall constitute one and the same agreement.

 

12.7         Severability.
If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.
If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this
Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable)
never been contained in this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial
benefit of the bargain for any party is materially impaired, which determination as made by the presiding court or arbitrator of
competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

 

12.8         Facsimile
Signatures. This Agreement may be executed and delivered by facsimile and upon such delivery the facsimile signature will be
deemed to have the same effect as if the original signature had been delivered to the other party.

 

12.9         Amendment
and Waivers. This Agreement may be amended only by a written agreement executed by each of the parties hereto. No amendment
of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed
by the party against which enforcement is sought. Any amendment effected in accordance with this section will be binding upon all
parties hereto and each of their respective successors and assigns. No delay or failure to require performance of any provision
of this Agreement shall constitute a waiver of that provision as to that or any other instance. No waiver granted under this Agreement
as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall
it constitute the waiver of any performance other than the actual performance specifically waived.

 

13.          ENTIRE
AGREEMENT. This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties
with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written,
between or among the parties hereto with respect to the specific subject matter hereof.

 

    	- 10 -

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized representative and Purchaser has executed this Agreement,
as of the Effective Date.

 

	 	COMPANY
	 	 
	 	HOMEOWNERS OF AMERICA HOLDING CORPORATION
	 	 	 
	 	By:	 
	 	 	Spence Tucker, President
	 	 	5021 Briar Tree Drive
	 	 	Dallas, Texas 75248
	 	 	Fax:                                           
	 	 	Phone: (972) 407-9896
	 	 	 
	 	PURCHASER
	 	 	 
	 	 	 
	 	 	Richard P. Backus
	 	 	 
	 	 	Fax:                                           
	 	 	Phone:

 

    	- 11 -AMENDMENT NO. 1

TO

STOCK PURCHASE AGREEMENT

 

This Amendment No.
1 to that certain Stock Purchase Agreement (this “Amendment”), by and between Homeowners of America Holding
Corporation, a Delaware corporation (the “Company”), and Richard P. Backus, an individual residing at 5200 Keller
Springs Rd., No. 226, Dallas, Texas 75248 (the “Purchaser”), a, dated as of September 15, 2005 (the “Agreement”),
shall be effective as of November 11, 2005.

 

WHEREAS, the
Purchaser currently owns One Hundred Thousand (100,000) shares (the “Shares”) of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”);

 

WHEREAS, simultaneously
herewith the Company and the Purchaser are entering into an Employment Agreement regarding the Purchaser’s employment with
the Company (the “Employment Agreement”);

 

WHEREAS, Inter-Atlantic
Fund, L.P. and Sequel Homeowners Investment, L.P. the “Investors”) are acquiring in the aggregate 4,500,000
shares of the Company’s Series A Preferred Stock, par value $0.00001 per share (the “Series A Preferred Stock”)
pursuant to the Securities Purchase Agreement dated as of the date hereof, by and among the Investors, the Company and certain
other investor signatories thereto (the “Purchase Agreement”);

 

WHEREAS, the
execution and delivery of this Amendment is a condition to the closing of the issuance, sale and purchase of the Series A Preferred
Stock pursuant to the Purchase Agreement; and

 

WHEREAS, the
Purchaser and the Company have agreed that the Agreement be amended in the manner provided for in this Amendment.

 

NOW THEREFORE,
it is agreed as follows:

 

1.           Amendment
of Section 4. Section 4 of the Agreement is deleted in its entirety and replaced with the following:

 

“4.          VESTING;
REPURCHASE OPTION.

 

4.1.        Vesting
of Shares.

 

(a)          Vesting.
All of the Purchaser’s Shares shall initially be unvested (the “Unvested Shares”) and subject to a right
of repurchase by the Company as set forth in Section 4.2 below (the “Repurchase Option”), such that (i) twenty-five
percent (25%) of the Unvested Shares shall vest upon Closing (as defined in the Purchase Agreement), (ii) twenty-five percent (25%)
of the Unvested Shares shall vest upon the first (1st) anniversary of the Closing; and (iii) 2.08% of the Unvested Shares shall
vest monthly thereafter. Vesting of the Unvested Shares will accelerate in the event of (i) a Change in Control (as defined below);
or (ii) a Qualified Public Offering (as defined below) such that upon any Change in Control or Qualified Public Offering all remaining
Unvested Shares shall vest in the Purchaser and no longer be subject to the Repurchase Option.

 

    	 

    	 

    

 

(b)          Change
in Control. For purposes of this Agreement, the term “Change in Control” shall mean any of the following
transactions: (i) any person (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), other than the Company, any employee benefit plan of the Company or any entity organized, appointed or established
by the Company for or pursuant to the terms of any such plan, together with all “affiliates” and “associates”
(as such terms are defined in Rule 12b-2 under the Exchange Act) becomes the beneficial owner or owners (as defined in Rule 13d-3
and 13d-5 promulgated under the Exchange Act), directly or indirectly, of more than fifty percent (50%) of the outstanding Common
Stock of the Company, or otherwise becomes entitled to vote more than fifty percent (50%) of the voting power entitled to be cast
at elections for directors (“Voting Power”) of the Company; (ii) a consolidation or merger of the Company pursuant
to which the holders of the Company’s voting shares immediately prior to such merger or consolidation would not be the holders,
directly or indirectly, immediately after such merger or consolidation of more than fifty percent (50%) of the Voting Power of
the entity surviving such transaction; (iii) the sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company; or (iv) the liquidation or dissolution of the Company or
the Company ceasing to do business.

 

(c)          Qualified
Public Offering. For purposes of this Agreement, the term “Qualified Public Offering” shall mean a firm
commitment underwritten public offering registered under the Securities Act covering the offer and sale by the Company of its Common
Stock (a) in which (i) the aggregate proceeds to the Company equal or exceed $50,000,000, net of underwriting discounts, commissions,
and fees, and (ii) the price per share of such Common Stock equals or exceeds $5.00 (subject to appropriate adjustment in the event
of any stock dividend, stock split, reclassification, combination or other similar recapitalization affecting such shares), and
(b) that results in the securities so offered being listed on a national securities exchange or quoted on the NASDAQ National Market.

 

4.2           Repurchase
Option.

 

(a)          Triggering
Events. Upon the termination of the Purchaser’s employment with the Company (whether such employment is terminated by
the Purchaser or the Company, and for any reason or no reason) the Company shall have the right to repurchase up to all of the
Unvested Shares at the lower of (i) initial cost of such Unvested Shares to the Purchaser; or (ii) the book value thereof In the
event of a voluntary termination by the Purchaser without Good Reason (as defined in the Employment Agreement) prior to the third
(3rd) anniversary of the Closing, the Company shall have the right to repurchase up to all of the vested Shares at the lower of
(i) initial cost of such vested Shares; or (ii) the book value thereof In the event of termination of the Purchaser’s employment
with the Company Without Cause (as defined in the Employment Agreement) by the Company or for Good Reason by the Purchaser or due
to the Purchaser’s death or disability, the Company may repurchase up to all of the vested Shares from the Purchaser or the
Purchaser’s personal representative(s), estate, heir(s) or legatee (the “Purchaser’s Representative”),
as the case may be, at Fair Market Value (as defined below). The Company’s repurchase right as set forth in this Section
4.2 shall expire with regard to Shares first offered to the Company and subsequently sold to a non-affiliate of the Purchaser
in accordance with Section 5 below.

 

    	- 2 -

    	 

    

 

(b)          Fair
Market Value. For purposes of this Section 4, the “Fair Market Value” of any Shares shall be the fair market
value thereof (on a per share basis) at the time that the Repurchase Option is triggered pursuant to Section 4.2(a) hereof
as determined in good faith by the Board of Directors of the Company, provided that such fair market value must approximate the
price that a willing buyer and a willing seller would arrive at in an arms-length transaction. If the Purchaser or the Purchaser’s
Representative disagrees with the valuation as determined by the Board of Directors, each of the Purchaser or the Purchaser’s
Representative, on the one hand, and the Board of Directors, on the other hand, shall cause an appraiser to determine the Fair
Market Value on a basis consistent with the terms hereof within twenty (20) days. The cost of both appraisers shall be borne by
the Company. In the event that the determination by each appraiser differs by less than ten percent (10%) from the determination
by the other appraiser, the Fair Market Value shall be the average of the two. In the event that the determination by either appraiser
differs by ten percent (10%) or more from the determination of the other appraiser, then the two appraisers shall select a third
appraiser within five (5) days, the fees and expenses of which third appraiser shall be shared equally by the parties. The third
appraiser shall, within ten (10) days of its selection, designate which of the two determinations most accurately reflects the
Fair Market Value or designate a Fair Market Value between the two determinations which the third appraiser determines most accurately
reflects the Fair Market Value. The determination made in accordance with the foregoing shall be final and binding on all parties
hereto.

 

(c)          Additional
Shares. If the Company shall pay a stock dividend or declare a stock split on or with respect to any of its Common Stock, or
otherwise distribute securities of the Company to the holders of its Common Stock, the number of shares of stock or other securities
of the Company issued with respect to the Vested Shares shall be deemed “Vested Shares” herein. If the Company shall
distribute to its stockholders securities of another corporation, the securities of such other corporation, distributed with respect
to the Vested Shares shall be deemed “Vested Shares” herein. If the outstanding shares of the Company’s Common
Stock shall be subdivided into a greater number of shares or combined into a smaller number of shares, or in the event of a reclassification
of the outstanding shares of the Company’s Common Stock, or if the Company shall be a party to a merger, consolidation or
capital reorganization, there shall be substituted for the Vested Shares of the Common Stock then subject to this Agreement such
amount and kind of securities as are issued in such subdivision, combination, reclassification, merger, consolidation or capital
reorganization in respect of the Vested Shares subject to this Agreement immediately prior thereto.

 

(d)          Notice
and Closing. The Company may exercise its Repurchase Option by sending the Purchaser written notice, within fifteen days (15)
days after any triggering event set forth in Section 4.2(a), specifying the number of Shares the Company elects to repurchase
pursuant to the Repurchase Option and a date for the closing, which date shall be as soon as practicable but no later than forty-five
(45) days after the date of such notice. The closing shall take place at the principal office of the Company or at such other location
as the Company and the Purchaser shall agree. At the closing, the Purchaser shall transfer to the Company the number of Shares
specified in the Company’s notice, free of all liens, encumbrances and rights of others, by delivery of certificates representing
such number of Shares, duly endorsed for transfer or accompanied by duly executed stock powers. Concurrent with such transfer and
its receipt of such certificates so endorsed and subject to Section 4.2(f) below, the Company shall pay for such Shares
by any of the following methods: (i) by delivery to the Purchaser of a check in the amount of the aggregate purchase price for
such Shares, (ii) by cancellation of indebtedness of the Purchaser to the Company in such amount, (iii) by wire transfer of immediately
available funds to one or more accounts designated by the Purchaser, or (iv) by any combination of the above methods. The method
or methods of payment for such Shares shall be chosen by the Company in its sole discretion.

 

    	- 3 -

    	 

    

 

(e)          No
Further Obligations. Upon delivery by the Company of notice of exercise of the Repurchase Option, the Company’s sole
obligation with respect to the Shares as to which the Repurchase Option is being exercised shall be to make payment of the purchase
price therefor. The Company shall not be required after delivery of such notice to treat the Purchaser as owner of such Shares,
to accord the right to vote to the Purchaser with respect thereto or to pay dividends thereon and the Purchaser shall have no rights
with respect thereto other than to receive such payment of the repurchase price therefor.

 

(f)          Company’s
Right to Defer Payments. Notwithstanding anything herein to the contrary, no payment shall be made under this Agreement that
would cause the Company to violate any banking agreement or loan or other financial covenant or cause default of any indebtedness
of the Company, regardless of when such agreement, covenant, or indebtedness was created, incurred, or assumed. Any payment under
this Agreement that would cause such violation or default shall be deferred until, in the sole discretion of the Board of Directors
of the Company, such payment shall no longer cause any such violation or default. Any payment deferred in consequence of the provisions
of the preceding sentence shall bear simple interest from the date such payment otherwise would have been made to the date when
such payment actually is made, at a rate that is equal to the prime rate of interest published in the Eastern Edition of the Wall
Street Journal from time to time during .the period of such deferral, but in no event shall such rate of interest exceed eight
percent (8%) per annum. The Company shall pay interest at the same time as it makes the payment to which such interest relates.”

 

2.           Amendment
of Section 5.7. Section 5.7 of the Agreement is deleted in its entirety and replaced with the following:

 

“5.7           Termination
of Right of First Refusal. The Right of First Refusal will terminate as to all Shares on the effective date of a Qualified
Public Offering.”

 

3.           Miscellaneous.

 

(a)          This
Amendment shall be governed by, and construed in accordance with, the laws of the State of Texas, without regard to the conflict
of laws principles thereof.

 

(b)          Except
as expressly amended by this Amendment, the terms and provisions of the Agreement shall continue in full force and effect. No reference
to this Amendment need be made in any instrument or document making reference to the Agreement; any reference to the Agreement
in any such instrument or document shall be deemed a reference to the Agreement as amended hereby. The Agreement as amended hereby
shall be binding upon the parties hereto and their respective assigns and successors.

 

    	- 4 -

    	 

    

 

(c)          This
Amendment may be executed in separate counterparts, each such counterpart being deemed to be an original instrument, and all such
counterparts shall together constitute the same agreement.

 

    	- 5 -

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	 
	 	Richard P. Backus
	 	 
	 	HOMEOWNERS OF AMERICA HOLDING CORPORATION
	 	 
	 	 
	 	Spence Tucker, President

 

[Signature Page to SPA Amendment - Backus]

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