Document:

Assumption Agreement

 Exhibit 10.10 

Assumption Agreement 

Heritage Property and Casualty Insurance Company 

THIS ASSUMPTION AGREEMENT (the “Agreement”) is effective as of the 22nd day of May, 2013
by and between Heritage Property and Casualty Insurance Company, a Florida licensed and authorized insurance company (“Heritage”), and Citizens Property Insurance Corporation, an entity created by the Legislature of the State of Florida
pursuant to Subsection 627.351(6), Florida Statutes (“Citizens”). 
 WHEREAS, Citizens has adopted a depopulation program pursuant to
Section 627.35l(6)(q)(3), Florida Statutes, whereby qualified insurers assume policies from Citizens (the “Program”); 
 WHEREAS,
Heritage has applied to Citizens to participate in the Program and submitted a depopulation plan and wishes to assume policies on a direct basis from Citizens such that Citizens will no longer be responsible as to liability or, except as
expressly set forth in this Agreement, servicing of such assumed policies; 
 WHEREAS, Citizens has approved Heritage for the Program based on
Heritage meeting certain conditions and in reliance on all representations made by Heritage; 
 WHEREAS, the Office of Insurance Regulation
(“OIR”) has issued a Consent Order dated May 17, 2013, in Case No. 135124-13-CO (the “Consent Order”) approving Heritage’s depopulation plan; and 

WHEREAS, Heritage and Citizens entered into that certain Property Reinsurance Contract which is an interim 100% facultative quota share reinsurance
agreement effective for losses as of January 1, 2013 (the “Quota Share Agreement”), 

  

					
	Citizens Property Insurance Corporation	  	 	Page 1 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 NOW THEREFORE, in consideration of the mutual rights and obligations stated herein, Citizens and Heritage
agree as follows: 
 1. Term, Conditions. 

A. Term of Agreement. This Agreement shall remain in effect until the completion of all of Heritage’s obligations as set forth
herein. 
 B. Conditions to Agreement. The Consent Order contains certain conditions to the assumption. Heritage warrants that it has
complied and agrees to maintain its compliance with such conditions for so long as required by the OIR and this Agreement. 
 2. Commitment to
Remove Policies. 
 Heritage agrees to assume certain insurance policies from Citizens identified in Exhibit A to the Quota Share
Agreement (the “Assumed Policies”) hereto in accordance with the terms of this Agreement, the Consent Order and the Quota Share Agreement. Heritage agrees to use its best efforts to successfully assume a minimum of 60,000 policies gross of
opt-outs. 
 3. Terms of Assumption. 

A. Liabilities. With respect to each of the Assumed Policies which do not opt-out and except as expressly stated herein, commencing on
the date the Assumed Policies are transferred to Heritage (the “Assumption Date”) which date the parties anticipate to be June 28, 2013, Heritage shall be responsible for all insurer obligations related to the Assumed Policies,
including but not limited to the servicing of such policies to the individual policyholders. For each Assumed Policy, Citizens shall remain liable for all losses occurring prior to the Assumption Date, except as provided in the Quota Share
Agreement. 
 B. Notices; Costs. The parties shall coordinate the mailing of policyholder notices and documentation required to
effectuate the assumption. The cost of all notices of assumption to the policyholders of the Assumed Policies shall be borne solely by Heritage. If Citizens pays any such costs on Heritage’s behalf, Citizens may withhold such costs from any
funds payable to Heritage by Citizens. Otherwise, Heritage shall reimburse Citizens for such costs within thirty (30) days of Heritage’s receipt of a billing statement from Citizens. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 2 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 C. Assumed Premium. Citizens shall direct the release of the unearned premium on the
Assumed Policies less all taxes, fees, or surcharges invoiced for collection on such policies as determined by Citizens (the “Assumed Premium”) within 15 days of the end of the last opt-out period relevant to the Policies. Upon receipt of
Assumed Premiums from Citizens, Heritage shall hold 5% thereof (the “Holdback”) in a segregated account until a mutually-agreed true-up date anticipated to occur in December 2013, after which true up the Holdback funds shall be released in
accordance herewith. This Holdback shall be used to secure Heritage’s performance of its obligations stated in this Agreement. If Heritage is in breach of this Agreement and such breach can be cured, Heritage shall have thirty days to cure. If
the breach is not cured within the thirty-day period or if the breach cannot be cured, Heritage shall pay the Holdback to Citizens. Heritage shall not use the Holdback funds for any purpose until release unless agreed by Citizens. Citizens may audit
this account at any time. 
 D. Servicing of Policies. Commencing on the Assumption Date of an Assumed Policy: 

(i) Until the first renewal date after assumption, Citizens shall process endorsements and cancellations and provide other
routine policy services with respect to each of the Assumed Policies. 
 (ii) Heritage shall offer and process offers of
renewal coverage with respect to Assumed Policies, and shall be solely responsible for all servicing activities as of the first renewal thereof. 

E. Returned Policies. Any policyholder under an Assumed Policy may elect to return to Citizens (also referred to as opting out of the
assumption) under the conditions stated in the Consent Order (a “Returned Policy”). Heritage shall process all timely requests to return to Citizens and forward such requests, along with all unearned premiums after the Assumption Date,
received on such Returned Policies, to Citizens in a format acceptable to Citizens. 
 F. Claims Servicing. 

(i) Citizens shall be solely responsible for the payment and servicing of claims for losses occurring prior to the Assumption
Date for Assumed Policies, except as provided in the Quota Share Agreement, and for Returned Policies as of such date Heritage notifies Citizens of the return and sends the policy and claims documentation to Citizens. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 3 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 (ii) Heritage is solely responsible for the payment and servicing of claims for
losses occurring on or after the Assumption Date for all Assumed Policies, and is further responsible for servicing Returned Policies until such time that each such policy and claim documentation has been returned to Citizens. 

(iii) Citizens agrees that in instances where the sharing of information will facilitate the resolution of a claim occurring
after the Assumption Date, and in accordance with applicable state and federal laws, it may share claims, underwriting and other information with Heritage. 

(iv) With regard to losses occurring on Assumed Policies on or after the Assumption Date, Citizens shall give notice promptly
to Heritage of any claim or the commencement of any legal proceedings against Citizens with respect to such claim. Citizens shall have the exclusive right to control the defense of any claim for loss occurring prior to the Assumption Date and
Heritage shall have the exclusive right to control the defense of any claim for loss occurring on or after the Assumption Date, other than for Returned Policies and except as provided in the Quota Share Agreement. 

(v) With regard to Returned Policies, Heritage shall immediately notify Citizens of any claims thereon and immediately
communicate all policy and claim information to Citizens. To the extent that Heritage has incurred loss adjustment expenses on claims for Returned Policies, Citizens will reimburse Heritage for such expenses only to the extent and amount that
Citizens would have paid for such expenses. All claims for such reimbursement must be made within 30 days of when such policies return to Citizens. 

G. Implementation. 

(i) The parties hereto acknowledge that, pursuant to all applicable laws and this Agreement, Citizens will use its sole
judgment and discretion in creating and implementing the assumption procedure. There may be multiple assumption rounds which together implement the entire assumption commitment described in this Agreement. 

(ii) Heritage agrees to assume the policies from Citizens as described in Paragraph 2 above between the execution hereof and
June 28, 2013. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 4 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 (iii) Heritage agrees to use its best efforts to replace policies lost due to
opt-outs as necessary to meets its minimum assumption commitment as expeditiously as possible. 
 (iv) Agent Appointments.
Heritage represents that all of the Assumed Policies currently have an agent of record who is appointed with Heritage. Heritage agrees to comply with the requirements of Sect. 627.351(6), Florida Statutes, concerning its obligation to affected
agents. Both parties acknowledge policyholder rights under Section 627.3517, Florida Statutes. 
 (v) Assumption
Notices. At Citizens’ direction, Heritage shall provide the assumption notice to policyholders using Heritage’s letterhead with logo and signature at Heritage’s sole expense. 

4. Consent Order, Quota Share Agreement. 

Heritage shall comply with the terms of the Consent Order and Quota Share Agreement. 

5. Heritage’s Ongoing Obligations Regarding Assumed Policies. 

A. Heritage shall offer to renew each Assumed Policy for a minimum of three years from its Assumption Date. For three years beginning
January 1, 2013, Heritage’s renewals of Assumed Policies shall be written on Heritage’s policy forms, offering at least the same deductible and coverage options as Citizens’ forms, and shall include an average annual rate equal
to Citizens’ then-current comparable rate for such Policies, plus an increase no greater than the higher of any approved average rate increases for comparable risks granted to Citizens or 10% (the “glide path”), unless otherwise
approved by the OIR due to exigent circumstances, or the policyholder voluntarily elects another policy form offered by Heritage and pays the manual premium for such coverage. 

B. Notwithstanding (A) above, Heritage may cancel or non-renew an Assumed Policy for nonpayment of premium, material misstatement, fraud
or full payment of policy limits, subject to its duty to replace such Assumed Policy as described below. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 5 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 C. Ongoing Policy Assumption Reporting. Heritage’s retention of the Assumed Policies
under this Agreement is a fundamental component of the consideration for this Agreement. It is recognized that through the period of time Heritage is obligated to retain the Assumed Policies, there may be attrition for various reasons. To assure
that any loss of an Assumed Policy is promptly addressed, the following reporting procedures will be followed as long as Heritage is required to retain the Assumed Policies: 

(i) Citizens will establish a process whereby, on a monthly basis, Heritage identifies all Assumed Policies which have
discontinued coverage with Heritage for any reason (the “Monthly Report”). This Monthly Report shall contain the policy number, former Citizens policy number (if different), TIV, zip code of insured premises, Citizens rating territory,
assumption date, date of discontinuation of coverage, and reason for discontinuation of coverage for each affected policy. The Monthly Report shall be in an electronic format determined by Citizens. 

(ii) Heritage will communicate the Monthly Report to Citizens on or before the fifteenth day of each month for the prior month.

 (iii) Citizens will audit Heritage’s reporting of such policies no less than annually. Such audit will be solely at
Heritage’s expense. 
 (iv) Commencing on January 1, 2013 and continuing for a period of three years, Heritage will
use its best efforts to replace either through assumption of Citizens’ policies or writing of similar policies in the voluntary market each Assumed Policy which discontinues coverage with Heritage within the first 60 days of the calendar
quarter following the quarter in which the Assumed Policy is reported to have discontinued coverage with Heritage. 
 D. Replacement of
Policies. Because Heritage must retain the Assumed Policies under this Agreement for a period of three years, it is expected that there will be attrition in the Assumed Policies for a variety of reasons. Regardless of the reason for such
attrition, policies lost through attrition must be replaced by Heritage in order to remain compliant with the terms of this Agreement (“Replacement Policies”). It is the express intent of this Agreement that Assumed Policies and any
Replacement Policies be taken out of Citizens for the agreed three-year period. To assure that the new policy matches the policy to be replaced to the optimum extent feasible, the following progression will be used in selecting a Replacement Policy:

 (i) Heritage shall identify a policy in the same Citizens account and rating territory and Florida Hurricane Catastrophe
Fund premium and shall assume a Replacement Policy meeting those criteria. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 6 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 (ii) If Heritage is unable to identify a Citizens policy as provided above,
Heritage may replace the policy with a private market policy in the same Citizens rating territory that has at least the same Florida Hurricane Catastrophe Fund premium as the policy to be replaced calculated as of the date of replacement. 

Any Replacement Policy must be treated the same as the Assumed Policy it replaced, and must be offered a renewal during the remainder of the three-year period
for the original Assumed Policy measured from the original Assumption Date for the policy replaced. 
 6. Right of Access, Inspection or Audit.
Citizens or its representatives, upon one business day’s advance written notice, shall be entitled to access, review, or audit, at Heritage’s expense, the relevant books and records of Heritage during normal business hours to confirm
Heritage’s compliance with the terms and conditions of this Agreement. Such audit will be at Heritage’s sole expense. To the extent necessary to carry out the terms of this Agreement, Heritage, at its sole expense, shall be entitled to
access and review of Citizens’ records as they pertain to the Assumed Policies. 
 7. Heritage’s Continuing Obligations. Heritage,
during the period of this Agreement, shall remain duly licensed and authorized as an admitted insurer to transact property and casualty insurance business in the State of Florida and to transact the lines of insurance applicable to the Assumed
Policies, and in compliance with Florida statutes, rules, and regulations governing its insurance business, and with this Agreement. If Heritage becomes subject to any regulatory discipline, financial impairment or insolvency issues, Heritage must
report such issues to Citizens immediately. Additionally, Heritage agrees to refrain from paying dividends or other share of profits to any person or entity for three years from the effective date of this Agreement unless the OIR expressly approves
such dividend. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 7 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 8. Breach, Default, Cure and Other Remedies. 

A. Events of Default. A default under this Agreement occurs in the event of any material breach of an obligation, representation or
warranty of a party as set forth in this Agreement or the Quota Share Agreement. Further, the following regulatory events shall constitute a default: 

(i) Heritage fails to maintain its authority and licensing to conduct its business as provided in this Agreement; 

(ii) Heritage becomes subject to an order of administrative supervision, rehabilitation, or liquidation pursuant to Chapter
631, Florida Statutes; 
 (iii) The issuance of any other order of the OIR or the Department of Financial Services or a court
of competent jurisdiction that in any material form or manner limits or constrains the ability of Heritage to engage in the business of property and casualty insurance, or which results in Heritage canceling or nonrenewing its non-assumed and
Assumed Policies; or 
 (iv) Heritage violates any term or condition of the Consent Order. 

B. Cure. In the event of a breach that may be cured, the non-breaching party shall give the breaching party written notice of the
material breach. Failure of the defaulting party to cure such material breach or default within fifteen (15) days of the receipt of such notice shall constitute default of this Agreement. In the case of a default caused by the occurrence of a
regulatory event described above, there shall be no right to cure. 
 C. Remedies. Should Heritage default and not timely cure such
default, if applicable, Citizens may prohibit Heritage from further assumption of policies pursuant to this Agreement or any future agreement. In addition to any rights and remedies set forth in this Agreement, the non-defaulting party shall have
all rights and remedies available at law and equity. Moreover, any material breach of this Agreement shall constitute a violation of the Consent Order. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 8 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 9. Attorney’s Fees. If either of the parties hereto brings an administrative or court action
arising out of or related to this Agreement, the prevailing party shall be entitled to recover its legal expenses, including reasonable attorney’s fees and costs, including attorney’s fees and costs for any appeals taken. 

10. Underwriting Information and Procedures. Heritage understands and agrees that Citizens does not warrant the accuracy of policy information
provided to Citizens including without limitation that the application information provided to Citizens is accurate. Moreover, Citizens does not warrant the accuracy or completeness of underwriting procedures used in relation to the Assumed
Policies. 
 11. Survival of Obligations. This Agreement shall be binding upon the parties, their legal representatives, successors and
assigns. 
 12. Florida Law and Jurisdiction. It is acknowledged that this Agreement is executed in and shall be construed and governed
exclusively by and in accordance with the laws of the State of Florida. The state courts in Leon County, Florida, shall have exclusive jurisdiction over any controversy between the parties arising out of or related to this Agreement. 

13. Assignment. Heritage may not assign or transfer this Agreement, or any benefit or right under this Agreement without Citizens’ prior
written consent. Any change in control as defined in the Florida Insurance Code of Heritage is deemed a transfer of this Agreement requiring Citizens’ written consent. 
  

  

					
	Citizens Property Insurance Corporation	  	 	Page 9 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 14. Invalidation. In the event any provision of this Agreement is determined to be invalid by a
court of competent jurisdiction, the remaining provisions of this Agreement remain in full force and effect. 
 15. Modification. No change or
modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto and such changed terms have after submissions to, not been disapproved by the OIR. The parties agree that no oral modification
of this provision is enforceable or valid. To the extent there is any conflict between the terms of this Agreement and the Quota Share Agreement, the provisions of the Quota Share Agreement shall control. 

16. Notices. Any and all notices, designations, consents, offers, acceptances, or any other communications provided for herein shall be given in
writing, by hand delivery, by overnight mail, by registered or certified mail, or by facsimile transmission and shall be addressed as follows: 

Notice to Heritage: 
 Richard
Widdicombe 
 Chief Executive Officer 

Heritage Property & Casualty Insurance Company 

700 Central Ave # 500 
 St
Petersburg, FL 33701 
 Notice to Citizens: 

Mr. Barry Gilway 

President/CEO and Executive Director 

Citizens Property Insurance Corporation 

2312 Killearn Center Boulevard 

Tallahassee, Florida 32309 

(850) 513-3780 

  

					
	Citizens Property Insurance Corporation	  	 	Page 10 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 Notices sent by hand delivery shall be deemed delivered on the date of hand delivery. Notices sent by overnight
carrier shall be deemed delivered on the second business day after being placed into the hands of the overnight carrier. Notices sent by registered or certified mail shall be deemed delivered on the fifth business day after being deposited into the
post office. Notices sent by facsimile transmission shall be deemed to be delivered on the day when sent if sent prior to 4:30 p.m. (the time being determined by the time zone of the recipient) otherwise they shall be deemed delivered on the next
business day. 
 17. Compliance with Laws. Heritage agrees to comply with all applicable laws, regulations, and directives of the OIR. 

18. Parties Represented. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. 

19. Confidentiality. Heritage agrees to treat all policyholder information provided as confidential and certifies that all such information
provided by Citizens shall be used strictly to adjust claims and service Assumed Policies and not for any other purpose. 
 20. Non-Waiver.
The failure of Citizens to insist on strict compliance with this Agreement or exercise any right or remedy hereunder to enforce any provision of this Agreement shall not constitute a waiver of any rights contained herein nor stop the Parties from
thereafter demanding full and complete compliance or from exercising any remedy in the future. The waiver of any breach or default shall not constitute a waiver of any different or subsequent breach or default. 

  

					
	Citizens Property Insurance Corporation	  	 	Page 11 of 12	  
	Heritage Property & Casualty Insurance Company	  			

 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day and year first above
set forth. 
  

			
	Citizens Property Insurance Corporation
		
	BY:	 	

		 	Barry J. Gilway
		 	President/CEO and Executive Director

  

			
	Heritage Property & Casualty Insurance Company
		
	BY:	 	

		 	Richard Widdicombe
		 	President

  

					
	Citizens Property Insurance Corporation	  	 	Page 12 of 12	  
	Heritage Property & Casualty Insurance CompanyProperty Reinsurance Contract

 Exhibit 10.11 

PROPERTY REINSURANCE CONTRACT 

Component Transaction to a Depopulation Plan 

issued to 
 CITIZENS PROPERTY
INSURANCE CORPORATION 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 Art. 1: Validity of Contract
	  	 	3	  
	 Art. 2: Business Covered
	  	 	4	  
	 Art. 3: Territory
	  	 	5	  
	 Art. 4: Term
	  	 	5	  
	 Art. 5: Special Termination
	  	 	6	  
	 Art. 6: Definitions
	  	 	8	  
	 Art. 7: Exclusions
	  	 	11	  
	 Art. 8: Payment of Losses
	  	 	13	  
	 Art. 9: Reinsurance Premium
	  	 	14	  
	 Art. 10: Reports and Remittances
	  	 	14	  
	 Art. 11: Access to Records
	  	 	15	  
	 Art. 12: Arbitration
	  	 	15	  
	 Art. 13: Confidentiality
	  	 	18	  
	 Art. 14: Currency
	  	 	19	  
	 Art. 15: Entire Agreement
	  	 	19	  
	 Art. 16: Extra-Contractual Obligations/Excess of Policy Limits
	  	 	19	  
	 Art. 17: Federal Excise Tax
	  	 	20	  
	 Art. 18: Governing Law
	  	 	21	  
	 Art. 19: Errors and Omissions
	  	 	21	  
	 Art. 20: Insolvency
	  	 	21	  
	 Art. 21: Reinsurer’s Representations
	  	 	22	  
	 Art. 22: Non-Waiver
	  	 	23	  
	 Art. 23: Offset
	  	 	23	  
	 Art. 24: Salvage and Subrogation
	  	 	23	  
	 Art. 25: Severability
	  	 	24	  
	 Art. 26: Tax
	  	 	24	  
	 Art. 27: Reinsurance Collateral
	  	 	24	  
	 Art. 28: No Third Party Rights
	  	 	25	  
	 Art. 29: Costs of Transaction
	  	 	25	  
	 Art. 30: Mode of Execution
	  	 	26	  
	 Exhibit A: List of Policies
	  	 	29	  

  
 Page 2 

 PROPERTY REINSURANCE CONTRACT 

(the “Contract”) 

issued to 
 CITIZENS
PROPERTY INSURANCE CORPORATION 
 Tallahassee, Florida (the “Company”) 

by 
 HERITAGE PROPERTY AND
CASUALTY INSURANCE COMPANY 
 (“the Reinsurer”) 

The Parties hereto agree as herein below, in consideration of the mutual covenants contained in the following Articles and upon the terms and
conditions set forth therein: 
 ARTICLE 1 

VALIDITY OF CONTRACT 
 The
occurrence of all of the events set forth in this Article 1 are conditions precedent to the validity of this Contract. 
  

	 	A.	The Reinsurer and the Company sign this Contract and any exhibits to this Contract that require signature. 

  

	 	B.	The Reinsurer has and maintains a Certificate of Authority from the Florida Office of Insurance Regulation that is sufficient, in the sole judgment of the Company, to permit it to carry out its responsibilities under
this Contract. 

  

	 	C.	The Reinsurer receives a ratings letter providing a financial strength rating from Demotech Financial Stability Rating of “A” or higher. The Reinsurer shall provide the Company with a copy of a ratings letter
confirming such rating. 

  

	 	D.	The Reinsurer receives an Order from the Florida Office of Insurance Regulation approving a depopulation from the Company of at least 60,000 Policies (prior to any opt outs). The Reinsurer shall provide a list of all
Policies tagged in any manner as part of the depopulation plan that have not opted-out as of June 28, 2013, and shall attach such list as Exhibit A to this Contract (the “Policies”). The Reinsurer shall provide the Company with a copy
of such Order promptly upon its receipt by the Reinsurer. 

  

	 	E.	Approval of this Contract by the Board of Directors of the Company. 

 Prior to the commencement of the
Contract, the Company in its sole discretion will acknowledge that all conditions precedent to the inception of the Contract have occurred. 

  
 Page 3 

 ARTICLE 2 

BUSINESS COVERED 
  

	 	A.	This Contract is to indemnify the Company in respect of liabilities that the Company may incur as a result of loss or losses pertaining to Loss Occurrences on and after January 1, 2013 with respect to the Policies,
which are listed on Exhibit A attached hereto and made a part of this Contract. The Company hereby cedes to the Reinsurer and the Reinsurer accepts a 100% quota share reinsurance of the Policies that are in effect on or after the Effective Date of
this Contract, with respect to losses under such Policies. Policies that opt out of the Depopulation Plan will not be assumed by the Reinsurer, and the Reinsurer shall not earn any premium on such policies. The Reinsurer’s liability under the
Policies extends to all coverages under the Policies and Extra-Contractual Obligations/Excess of Policy Limits as described in Article 16 that the Company would be liable for in the absence of this Contract. 

 

	 	B.	This cession is part of a program pursuant to which it is intended that the Policies will be transferred to the Reinsurer by an Assumption Agreement as part of a depopulation plan under Section 627.3511, Florida
Statutes with such transfer to be effective no later than June 28, 2013, subject to statutory opt-out rights (the “Depopulation Plan”). Once the depopulation is completed, the Reinsurer will become the direct insurer for the Policies,
replacing the Company in that capacity and will be solely liable for any Loss Occurrences under such Policies. The parties recognize that Florida law provides policy owners with certain rights to keep their policies with the Company rather than have
them transferred to another insurer as part of a depopulation plan. With respect to policies that opt-out of the Depopulation Plan, the reinsurance premium ceded with respect to those opted- out Policies with all earnings thereon shall revert to the
Company. All reinsurance premium on assumed Policies that do not opt-out shall be fully earned by the Reinsurer for the Term. Any losses attributable to Loss Occurrences during the Term on those Policies not transferred to the Reinsurer by
June 28, 2013 shall be the sole responsibility of the Company, and to the extent any such losses have been paid by the Reinsurer, the Reinsurer shall be entitled to full reimbursement by the Company within ten (10) days of receipt by the
Company of the later of (i) proof of payment by the Reinsurer of losses attributable to such Loss Occurrences and (ii) proof that the losses paid by the Reinsurer were for Loss Occurrences on Policies that the Reinsurer attempted to assume
on a direct basis but the policyholders opted not to transfer the Policies. 

  

	 	C.	The Reinsurer’s liability shall be subject in all respects to the same risks, terms, conditions, interpretations, waivers, modifications, alterations, and cancellations as the respective Policies of the Company,
subject to the exclusions and the other terms, conditions, and limits of this Contract as set forth herein. 

  
 Page 4 

 ARTICLE 3 

TERRITORY 
 The territorial scope
of this Contract shall be limited to Policies covering property located within the territorial limits of the State of Florida, but this limitation shall not apply to moveable property if the Company’s Policies provide coverage when said
moveable property is outside the territorial limits of the State of Florida. 
 ARTICLE 4 

TERM 
  

	 	A.	This Contract applies to losses pertaining to Loss Occurrences on all Policies subject to this Contract on the date of loss, commencing on January 1, 2013 and ending on June 28, 2013 (the “Term”),
except and only to the extent the Contract is terminated or the Policies are transferred to the Reinsurer pursuant to the Depopulation Plan prior to that date. 

  

	 	B.	Subject to the other conditions of this Contract, the Reinsurer will indemnify the Company for all losses pertaining to any Loss Occurrence which occurs during the Coverage Period, even if some of such losses, as more
fully defined under the Loss Occurrence definition, occur after the Coverage Period. 

  

	 	C.	Notwithstanding the expiration or termination of this Contract, the provisions of this Contract will continue to apply to all obligations and liabilities of the parties incurred hereunder to the extent necessary so that
all such obligations and liabilities under this Contract will be fully performed and discharged. 

  

	 	D.	If the Policies that are the subject of this Contract have been assumed on a direct basis by the Reinsurer, the premium being held in accordance with Article 9 hereof with any interest which has accrued for those
Policies shall be paid over to the Reinsurer. For those policyholders of the Policies who opt out of the Reinsurer’s assumption within the time allowed by Florida law, the premium related to such Policies and the concomitant interest shall
revert to the Company. As soon as a final accounting for all Policies that are the subject of this Contract has been completed, this Contract shall be terminated but in no event later than June 28, 2013. 

  
 Page 5 

 ARTICLE 5 

SPECIAL TERMINATION 
  

	 	A.	The Reinsurer shall notify the Company within five (5) business days of the occurrence of any of the circumstances listed in subparagraphs 1-6 of this Paragraph A. The Company shall have the sole option to
terminate this Contract at any time by giving written notice to the Reinsurer in the event of the occurrence of any of the following circumstances, which termination shall be effective as of the date of the notice of termination: 

 

	 	1.	The Reinsurer ceases to have an effective Certificate of Authority in the State of Florida, or the Certificate of Authority is conditioned in a manner that the Company determines, in its sole discretion, renders the
Reinsurer incapable of performing its obligations under this Contract appropriately. 

  

	 	2.	The Reinsurer ceases underwriting operations. 

  

	 	3.	A state insurance department or other legal authority orders the Reinsurer to cease writing business, or the Reinsurer is placed under regulatory supervision. 

 

	 	4.	The Reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there have been instituted against it proceedings for the appointment of a receiver,
liquidator, rehabilitator, conservator, trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations. 

 

	 	5.	The Reinsurer has merged with or has become acquired or controlled by any company, corporation, or individual(s) not controlling or affiliated with the Reinsurer’s operations at the inception of this Contract. The
term “Control” means the acquisition of ten (10) percent or more of the Reinsurer’s or the Reinsurer’s ultimate parent entity’s voting securities, if applicable. 

 

	 	6.	It is determined by the Company, in its sole discretion, that any of the representations made by the Reinsurer set forth in Article 21 of this Contract were untrue as of the execution date of this Contract, or became
untrue at any time after the execution date of this Contract. 

  

	 	B.	Termination shall be effected on a cut-off basis and the Reinsurer shall have no liability hereunder with respect to Loss Occurrences commencing at and after termination. In the event this Contract is terminated in
accordance with the provisions of this clause, and if the Contract is loss free as of the effective date of termination, the reinsurance premium payable shall be pro rata (as to both time and participation). In the event this Contract is terminated
in accordance with the provisions of this clause, and if a loss or losses are ceded to the Contract, the reinsurance premium payable shall be calculated as follows: 

 

	 	1.	If from Contract inception until termination the incurred loss (including Loss Adjustment Expense) is greater than the reinsurance premium, the full reinsurance premium is payable to the Reinsurer from the Company.

  
 Page 6 

	 	2.	If from Contract inception until termination the incurred loss (including Loss Adjustment Expense) is below or equal to the reinsurance premium, the reinsurance premium payable to the Reinsurer from the Company shall be
the greater of: 

  

	 	a.	Incurred loss and loss expense as a ratio of the reinsurance premium multiplied by the reinsurance premium; or 

  

	 	b.	Pro rata as to time on risk of the full reinsurance premium. 

 The Company shall immediately,
but in no event later than ten (10) days of receipt of written notice, pay to the Company any reinsurance premium which is allocable, to the unexpired portion of the Coverage Period after the termination date of this Contract. 

 

	 	C.	Alternatively, in the event of any of the circumstances listed in paragraph A of this Article, the Company has the sole option to require the Reinsurer to immediately fully collateralize its liabilities (the
“Reinsurer’s Obligations”) as set forth in the Reinsurance Collateral Article. This Article does not apply to the Reinsurer to the extent that the Reinsurer provides full collateral under the Reinsurance Collateral Article for the
obligations that it assumes. 

  

	 	D.	Additionally, in the event any of the circumstances listed in paragraph A of this Article occurs, the Company shall have the option to commute the Reinsurer’s liability for losses incurred on Policies covered by
this Contract. In the event the Company and the Reinsurer cannot agree on the commutation amount, they shall appoint an actuary to determine such amount and shall share equally any expense of the actuary. Such actuary must be a member of the
Casualty Actuarial Society, and must have experience with catastrophic risks. If the Company and the Reinsurer cannot agree on an actuary, the Company and the Reinsurer each shall nominate three individuals, of whom the other shall decline two, and
the final appointment shall be made by drawing lots. Payment by the Reinsurer of the amount of liability ascertained shall constitute a complete and final release of both parties in respect of liability arising from the Reinsurer’s
participation under this Contract. 

  

	 	E.	The Company’s option to require commutation under paragraph D above shall survive the termination or expiration of this Contract. 

  
 Page 7 

	 	F.	In the event of termination, the Reinsurer will be responsible for all losses pertaining to Loss Occurrences from January 1, 2013 through the date of termination inclusive. The Company will pay, as the sole premium
for the risks assumed by the Reinsurer during the period this Contract has been in effect, premium net of any surcharges, taxes and assessments as calculated in accordance with Schedule A of this Contract and the earnings on such premium for the
time period this Contract was effective subject to a cap of five million ($5,000,000) dollars. Any premium funds remaining after payment to the Reinsurer under this paragraph (including interest) shall revert to the Company. For the avoidance of
doubt, in the event of termination under this Article, the Company shall not owe the Reinsurer any amount as premium other than whatever payment may be made pursuant to this paragraph. 

ARTICLE 6 
 DEFINITIONS

  

	 	A.	“Coverage Period” as used in this Contract means from January 1, 2013 through June 28, 2013, both days inclusive. 

 

	 	B.	“Effective Date” as used in this Contract means the date on which the last of the requirements of paragraphs A., B. and C. of Article 1 have been fulfilled, or January 1, 2013, whichever is earlier.

  

	 	C.	“Loss Occurrence” as used in this Contract means the sum of all individual losses directly occasioned by any one disaster, accident or loss or series of disasters, accidents or losses arising out of one event
that occurs within the State of Florida or another area which results in loss or damage in the Territory (as defined in Article 3 of this Contract). However, the duration and extent of any one “Loss Occurrence” shall be limited to all
individual losses sustained by the Company occurring during any period of 168 consecutive hours arising out of and directly occasioned by the same event except that the term “Loss Occurrence” shall be further defined as follows:

  

	 	a.	As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage, all individual losses sustained by the Company occurring during any period of 96 consecutive hours arising out of and
directly occasioned by the same event. However, the event need not be limited to one state or province or states or provinces contiguous thereto. 

  

	 	b.	 As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all individual losses sustained by the Company occurring
during any period of 72 consecutive hours within the area of one municipality or county and the municipalities or counties contiguous 

  
 Page 8 

	 	
thereto arising out of and directly occasioned by the same event. The maximum duration of 72 consecutive hours may be extended in respect of individual losses that occur beyond such 72
consecutive hours during the continued occupation of an assured’s premises by strikers, provided such occupation commenced during the aforesaid period. 

  

	 	c.	As regards earthquake (the epicenter of which need not necessarily be within the territorial confines referred to above) and fire following directly occasioned by the earthquake, only those earthquake losses and
individual fire losses that commence during the period of 168 consecutive hours may be included in the Company’s “Loss Occurrence.” 

  

	 	d.	As regards “freeze,” only individual losses directly occasioned by collapse, breakage of glass and water damage (caused by bursting of frozen pipes and tanks and/or melting snow or sleet) may be included in
the Company’s “Loss Occurrence.” 

  

	 	e.	As respects firestorms, brush fires and any other fires or series of fires, irrespective of origin (except as provided in subparagraphs (a), (b) and (c) above), which spread through trees, grassland or other
vegetation, all individual losses sustained by the Company which commence during any period of 168 consecutive hours within a 150-mile radius of any fixed point selected by the Company may be included in the Company’s “Loss
Occurrence.” However, an individual loss subject to this subparagraph cannot be included in more than one “Loss Occurrence.” 

The Company may choose the date and time when any such period of consecutive hours commences provided that it is not earlier than the date and
time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident or loss. 

Only one period of consecutive hours shall apply with respect to one event, except that, as respects those “Loss Occurrences”
referred to above, if the disaster, accident or loss occasioned by the event is of greater duration than 72 consecutive hours, then the Company may divide that disaster, accident or loss into two or more “Loss Occurrences” provided no two
periods overlap and no individual loss is included in more than one such period and provided that no period commences earlier than the date and time of the occurrence of the first recorded individual loss sustained by the Company arising out of that
disaster, accident or loss. 
 Losses arising from a combination of two or more perils as a result of the same event shall be considered as
having arisen from one “Loss Occurrence.” Notwithstanding the foregoing, the hourly limitations stated above shall not be exceeded as respects the applicable perils, and no single “Loss Occurrence” shall encompass a time period
greater than 168 consecutive hours. 

  
 Page 9 

 For the avoidance of doubt, and in accordance with Article 2 hereof, “Business
Covered,” the Reinsurer agrees that this is a 100% Quota Share Reinsurance Contract, and the Reinsurer shall be obligated to pay all (100%) losses resulting from Loss Occurrences under the Policies during the Coverage Period of this
Contract unless it is earlier terminated. 
 D. “Loss Adjustment Expense” as used in this Contract means costs and expenses
incurred by the Company in connection with the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim or loss, or alleged loss, including but not limited to: 

 

	 	1.	court costs; 

  

	 	2.	costs of supersedes and appeal bonds; 

  

	 	3.	monitoring counsel expenses; 

  

	 	4.	legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto, including but not limited to declaratory judgment actions; 

 

	 	5.	post-judgment interest; 

  

	 	6.	pre-judgment interest, unless included as part of an award or judgment; 

  

	 	7.	a pro rata share of salaries and expenses of Company field employees, calculated in accordance with the time occupied in adjusting such loss, and expenses of other Company employees who have been temporarily diverted
from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract; and 

  

	 	8.	subrogation, salvage and recovery expenses. 

 “Loss Adjustment Expense” does not
include salaries and expenses of the Company’s employees, except as provided in subparagraph (7) above, and office and other overhead expenses. 
  

	 	E.	“Policies” as used in this Contract means the insurance policies listed or referred to in Exhibit A to this Contract. 

  

	 	F.	“Ultimate Net Loss” as used in this Contract means the actual loss paid by the Company or which the Company becomes liable to pay, such loss to include the sum of any prejudgment interest which is part of an
award or judgment, Loss Adjustment Expense, 100% of any Extra Contractual Obligation and 100% of any Loss in Excess of Policy Limits as defined in the Extra Contractual Obligations/Excess of Policy Limits Article. 

  
 Page 10 

 Salvages and all recoveries, shall be first deducted from such loss to arrive at the amount of
liability attaching hereunder. 
 All salvages, recoveries or payments recovered or received subsequent to loss settlement hereunder shall be
applied as if recovered or received prior to the aforesaid settlement, and all necessary adjustments shall be made by the parties hereto. 

The Company shall be deemed to be “liable to pay” a loss when a judgment has been rendered that the Company does not plan to appeal,
and/or the Company has obtained a release, and/or the Company has accepted a proof of loss which the Company has determined is sufficient to justify payment. 

Nothing in this Contract shall be construed to mean that losses are not recoverable hereunder until the Company’s “Ultimate Net
Loss” has been ascertained. 
 ARTICLE 7 

EXCLUSIONS 
  

	 	A.	This Contract shall not apply to and specifically excludes: 

  

	 	1.	All excess of loss reinsurance assumed by the Company. 

  

	 	2.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except agency reinsurance where the policies involved are to be underwritten in accordance with the underwriting standards of the Company and
reissued as Company Policies at the next anniversary or expiration date. 

  

	 	3.	Financial guarantee and insolvency. 

  

	 	4.	Boiler and Machinery. 

  

	 	5.	Flood and/or earthquake, when written as such. 

  

	 	6.	Mortgage Impairment insurances and similar kinds of insurances, however styled. 

  

	 	7.	Losses excluded by the Nuclear Incident Exclusion Clause – Physical Damage – Reinsurance – U.S.A. 

  

	 	8.	Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or
public authority, but this exclusion shall not apply to loss or damage which would be covered under a standard Policy form containing a standard war exclusion clause. 

  
 Page 11 

	 	9.	Liability of the Company arising by contract, operation of law, or otherwise, from its participation or membership, whether voluntary or involuntary, in any Insolvency Fund. “Insolvency Fund” includes any
guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, howsoever denominated, established or governed, that provides for any assessment of or payment or assumption by the Company of part or all of any claim, debt,
charge, fee, or other obligation of an insurer, or its successors or assigns, that has been declared by any competent authority to be insolvent, or that is otherwise deemed unable to meet any claim, debt, charge, fee or other obligation in whole or
in part. 

  

	 	10.	Loss and/or damage and/or costs and/or expenses arising from seepage and/or pollution and/or contamination, other than contamination from smoke. Nevertheless, this exclusion does not preclude payment of the cost of
removing debris of property damaged by a loss otherwise covered hereunder, subject always to a limit of 25% of the Company’s property loss under the applicable original Policy. 

 

	 	11.	Loss, damage, cost or expense arising out of or in connection with any Act of Terrorism involving biological, chemical, radioactive or nuclear pollution or contamination explosion. For purposes of this exclusion,
“Act of Terrorism” means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s),
committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. 

 

	 	12.	Loss or damage arising out of mold, unless caused by an otherwise covered peril. 

  

	 	13.	Difference in conditions insurance and similar kinds of insurances, however styled, insofar as they may provide coverage for losses from the following causes: 

 

	 	a.	Flood, surface water, waves, tidal water or tidal waves, overflow of streams or other bodies of water or spray from any of the foregoing, all whether wind driven or not, except when covering property in transit; or

  

	 	b.	Earthquake, landslide, subsidence or other earth movement or volcanic eruption, except when covering property in transit. 

  
 Page 12 

	 	14.	Losses in respect of overhead transmission and distribution lines and their supporting structures other than those on or within 500 feet of the insured premises; however, public utilities extension and/or suppliers
extension and/or contingent business interruption coverage are not subject to this exclusion, provided that these are not part of a transmitters’ or distributors’ Policy. 

 

	 	15.	Any assessment or similar demand for payment related to the Florida Hurricane Catastrophe Fund. 

  

	B.	If the Company inadvertently issues a Policy falling within the scope of one or more of the preceding exclusions, except as respects the exclusions set forth in subparagraphs A(7), A(8) and A(11), such Policy shall be
covered hereunder, provided that the Company issues, or causes to be issued, the required notice of cancellation within 30 days after a member of the executive or managerial staff at the Company’s home office having underwriting authority in
the class of business involved becomes aware that the Policy applies to excluded classes, unless the Company is prevented from canceling said Policy within such period by applicable statute or regulation, in which case such Policy shall be covered
hereunder until the earliest date on which the Company may cancel. 

 ARTICLE 8 

PAYMENT OF LOSSES 
  

	 	A.	The Company shall advise the Reinsurer promptly of all Loss Occurrences with respect to the Policies that, in the opinion of the Company, may result in a claim for the payment of losses hereunder and of all subsequent
developments thereto that may materially affect the position of the Reinsurer. 

  

	 	B.	The Company alone and at its sole discretion shall adjust, settle or compromise all claims and losses with respect to the Policies. 

  

	 	C.	The Company shall be the sole judge as to: 

  

	 	1.	what shall constitute a claim or loss covered under any Policy; 

  

	 	2.	the Company’s liability thereunder; 

  

	 	3.	the amount or amounts that it shall be proper for the Company to pay thereunder. 

  

	 	D.	As respects losses subject to this Contract, all loss settlements made by the Company within the terms and conditions of its underlying Policy and within the terms and conditions of this Contract, whether under strict
Policy terms or by way of compromise, and 100% of any Extra Contractual Obligations and/or Loss in Excess of Policy Limits, shall be binding upon the Reinsurer. 

  
 Page 13 

	 	E.	Notwithstanding any provision of this Contract, the Reinsurer agrees to make loss payments to the Company in the amount of the Ultimate Net Loss for each Loss Occurrence within ten (10) days of being notified by
the Company of the amount the Reinsurer is obligated to pay under this Contract. This payment period shall not be extended or enlarged due to a requested or pending audit or review of records. 

 

	 	F.	Any other reinsurance applicable to the Policies for which the Company paid the reinsurance premium shall inure solely to the benefit of the Company, and shall not be considered in calculating loss amounts due under
this Contract. 

 ARTICLE 9 

REINSURANCE PREMIUM 
  

	 	A.	As reinsurance premium for the reinsurance provided hereunder, the Company shall pay 100% of the Company’s net retained premium during the Term applicable to the Policies ceded under Exhibit A with respect to the
Coverage Period. As used herein, the term “net retained premium” shall mean earned premium from January 1, 2013 until the date this Contract is executed by both Parties (the “Execution Date”) and unearned premium from the
Execution Date through June 28, 2013. In each case, net retained premium shall be net of taxes and surcharges. 

  

	 	B.	The reinsurance premium will be held by the Company in a segregated account to partially collateralize the Reinsurer’s Obligations under this Contract as defined and set forth in Article 27 - Reinsurance
Collateral. Such premium shall be released on or before the earlier of the 15th day following the end of the last opt-out period related to the Policies or as otherwise provided for in this
Contract. 

  

	 	C.	The Reinsurer understands that under the Florida Insurance Law, the depopulation plan is not considered final as to any Policy until the policyholder has had the opportunity to reject the take-out offer thirty
(30) days prior to the effective date of the Policy’s assumption by the Reinsurer, and the policyholder has not rejected the take-out offer within thirty (30) days after the effective date of the assumption. 

ARTICLE 10 
 REPORTS AND
REMITTANCES 
  

	 	A.	Within seven (7) days after the close of each month that this Contract remains in effect, the Company will furnish the Reinsurer with a report summarizing the following: 

 

	 	1.	Ceded Premium for that month. 

  
 Page 14 

	 	2.	Paid Loss and Loss Adjustment Expense (net of any “cash call” amounts recovered under the provisions of the Payment of Losses Article); 

 

	 	3.	Reserves for outstanding Loss (including reserves for IBNR loss, if any); 

  

	 	4.	Reserves for outstanding Loss Adjustment Expense 

  

	 	5.	Reserves for unearned premium as of the end of the month. 

  

	 	B.	The positive balance of subparagraph 1 less subparagraph 2, net of any previously transferred net retained premium as set forth in Article 9.A. above, shall be remitted by the Company with its report. Any balance shown
to be due the Company shall be remitted by the Reinsurer to the Company immediately after receipt of said report. 

  

	 	C.	The Company will furnish the Reinsurer with any information as may be required by the Reinsurer for completion of its National Association of Insurance Commissioners’ interim and/or annual statements.

 ARTICLE 11 

ACCESS TO RECORDS 
  

	 	A.	The Company and the Reinsurer or their respective, duly authorized representatives shall have the right to visit the offices of the other party to inspect, examine, audit, and verify any of the Policy, accounting or
claim files (“Records”) relating to business reinsured under this Contract during regular business hours after giving five working days’ prior notice. This right shall be exercisable during the term of this Contract or after the
expiration of this Contract. 

  

	 	B.	Notwithstanding the above, the Reinsurer shall not have any right of access to the Records of the Company if it is not current in all undisputed payments due the Company. The inspecting party may obtain copies of any of
the Records tendered for inspection at its own expense. 

 ARTICLE 12 

ARBITRATION 
  

	 	A.	Binding Arbitration. Any dispute relating in any way to the formation, scope, implementation, performance or enforcement of this Contract, or which arises out of or relates to this Contract, shall be resolved
through binding arbitration in accordance with this Article. The provisions of this Article are intended to control in the event that other provisions of this Contract or of any other contract are in conflict with the provisions of this Article. No
provision of this Contract or of any other contract or understanding shall result in the provisions of this Article being interpreted as being permissive or optional. 

  
 Page 15 

	 	B.	Initiation of Arbitration. To initiate arbitration, a party to this Contract shall notify the other party in writing by certified or registered mail, return receipt requested, of its desire to arbitrate. The
notice shall refer to this section of the Contract and state the nature of the dispute and the remedy sought. The Party to which the notice is sent shall respond to it in writing within ten (10) Business Days after receipt thereof.

  

	 	C.	Arbitrator Appointment Process. The dispute shall be resolved by a panel of three arbitrators. Subject to the qualification requirements set forth in the following sections, each Party shall appoint one of the
arbitrators within thirty (30) days after the notification of initiation of arbitration is received. If a Party fails to appoint an arbitrator within such thirty (30) days, the other Party may appoint the second arbitrator.

  

	 	D.	Umpire Selection Process. Within thirty (30) calendar days after completion of their appointments, the two party-appointed arbitrators shall each provide the other the names of three candidates for the third
arbitrator, who shall act as umpire, chairing the arbitration panel. Each named candidate shall be asked to complete and return, within ten (10) business days, a questionnaire similar to the Neutral Selection Questionnaire found on the ARIAS-US
website. Any candidate whose responses in the questionnaire indicate a conflict of interest shall be disqualified from consideration as umpire, but may be replaced by another candidate by the party which named the disqualified candidate within ten
(10) business days. If the party-appointed arbitrators do not, within twenty (20) business days of the return of the completed umpire questionnaires, agree on an umpire from among the persons named and not disqualified by the
questionnaires, then within a further period of ten (10) business days, each party-named arbitrator shall strike two names from those suggested by the other party-appointed arbitrator, and the umpire shall be selected from the remaining two
candidates (one of whom being designated as the “even” candidate, and one the “odd” candidate), using the first digit to the left of the decimal point of the closing Dow industrial average on the next business day (said digit
being either “even” or “odd”), subject to the provisions of this Article. 

  

	 	E.	Arbitrator Qualifications. Each of the two party-appointed arbitrators (i) shall be a current or former officer of a property and casualty insurance or reinsurance company, (ii) shall have not less than
ten (10) years experience in property and casualty insurance or reinsurance, and (iii) shall not be a current or former employee, officer, or director of a Party or any of their respective affiliates. The umpire (i) shall be a current
or former officer of a property and casualty insurance or reinsurance company, (ii) shall have not less than ten (10) years experience in property and casualty insurance or reinsurance, and (iii) shall not be a current or former
employee, officer, or director of a Party or any of their respective affiliates. If an appointed arbitrator or umpire dies, develops a conflict of interest, becomes disabled or is otherwise unable or unwilling to serve, a substitute shall be
selected in the same manner as the departing member was chosen, and the arbitration shall continue. 

  
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	 	F.	Place and Time; Procedure. Within thirty (30) calendar days after both arbitrators and the umpire have been appointed or selected, the panel shall hold an organizational meeting to determine and notify the
Parties of the procedure to be filed, what discovery will be permitted and the date of the final hearing. The arbitration hearing and any pre-hearing conferences shall be held in Tallahassee, Florida, on the date(s) fixed by the arbitrators,
provided that the arbitrators may call for pre-hearing conferences by means of teleconference or videoconference as they may deem appropriate. The arbitrators shall establish pre-hearing and hearing procedures as warranted by the facts and issues of
the dispute. The arbitrators may consider any relevant evidence and shall give the evidence such weight as they deem appropriate after consideration of any objections raised. Each Party may examine any witnesses who testify at the arbitration
hearing. The arbitrators may allow discovery limited to that discovery reasonably necessary to facilitate the effective presentation of the dispute to the arbitrators. If the arbitrators elect to allow discovery, they shall distribute a discovery
plan which shall set forth the scope of permissible discovery and the time frame during which discovery shall be conducted. All arbitration proceedings shall be conducted in the English language. The arbitrators shall base their decision on the
terms and conditions of this Contract and applicable law. The arbitrators shall decide all substantive and procedural issues by majority vote. The arbitration proceedings and the outcome thereof shall be kept strictly confidential. The panel is
empowered to grant interim relief as it may deem appropriate. If the reinsurance agreement is accompanied by any collateral requirements, the panel shall enforce the collateral requirements pending the final hearing. 

 

	 	G.	Costs. Each Party shall bear the cost of its appointed arbitrator, and shall jointly and severally bear the cost of the umpire. The remaining costs of arbitration shall be allocated by the panel as part of its
final award. The arbitrators may not award attorneys’ fees to any Party. 

  

	 	H.	Award. The award of the arbitration panel shall be in writing and shall be binding upon the Parties. If either Party fails to carry out any aspect of the award, the other Party may seek enforcement of the award
in a court of competent jurisdiction, as specified in this Contract, under the Federal Arbitration Act. 

  

	 	I.	Consolidation. Any claims asserted by a Party against the other Party with respect to this Contract or any agreement related to this Contract or the reinsurance program to which this Contract pertains shall be
asserted in a single arbitration proceeding, and it is agreed that if such claims are asserted in more than one arbitration proceeding, that the claims shall be consolidated in a single arbitration proceeding, to be heard by the first arbitration
panel that is appropriately selected and constituted. The Parties further agree that any arbitration under this Contract shall, at the sole option of either Party, be consolidated with any other arbitration relating to the reinsurance program to
which this Contract pertains. 

  
 Page 17 

 ARTICLE 13 

CONFIDENTIALITY 
  

	 	A.	The Reinsurer hereby acknowledges that the documents, information and data provided to it by the Company, whether directly or through an authorized agent, in connection with the placement and execution of this Contract
(“Confidential Information”) are proprietary and confidential to the Company. Confidential Information shall not include documents, information or data that the Reinsurer can show: 

 

	 	1.	are publicly known or have become publicly known through no unauthorized act of the Reinsurer; 

  

	 	2.	have been rightfully received from a third person without obligation of confidentiality; or 

  

	 	3.	were known by the Reinsurer prior to the placement of this Contract without an obligation of confidentiality. 

  

	 	B.	Absent the written consent of the Company, the Reinsurer shall not disclose any Confidential Information to any third parties, except: 

 

	 	1.	when required by retrocessionaires subject to the business ceded to this Contract, and when the retrocessionaires have agreed to the confidentiality provisions of this Contract; 

 

	 	2.	when required by governmental regulators performing an audit of the Reinsurer’s records and/or financial condition; 

  

	 	3.	when required by external auditors performing an audit of the Reinsurer’s records in the normal course of business and when the external auditors have agreed to the confidentiality provisions of this Contract; or

  

	 	4.	situations where required by law or court order. 

 Further, the Reinsurer agrees not to use any
Confidential Information for any purpose not related to the performance of its obligations or enforcement of its rights under this Contract. 
  

	 	C.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Company with written notice of same at least ten (10) days prior to such release or disclosure and to use its best efforts to assist the Company in maintaining the confidentiality provided for in this Article.

  
 Page 18 

	 	D.	The provisions of this Article shall extend to the officers, directors, employees and agents of the Reinsurer and its affiliates, and shall be binding upon their successors and assigns. 

ARTICLE 14 
 CURRENCY

  

	 	A.	Where the word “Dollars” and/or the sign “$” appear in this Contract, they shall mean United States Dollars. 

  

	 	B.	For purposes of this Contract, where the Company receives premiums or pays losses in currencies other than United States Dollars, such premiums or losses shall be converted into United States Dollars at the actual rates
of exchange at which these premiums or losses are entered in the Company’s books. 

 ARTICLE 15 

ENTIRE AGREEMENT 
  

	 	A.	This Contract including any documents expressly incorporated by reference herein, constitutes the entire agreement between the Parties and there are no understandings or agreements between the Parties other than those
expressed in this Contract. No amendment, alteration, or modification of this Contract shall be valid unless made by written amendment to this Contract and duly executed by each of the Parties hereto. 

 

	 	B.	Notwithstanding the foregoing, in the event of any dispute between the Parties to this Contract, this Article shall not, in any way, form, or manner, prevent, preclude, bar, and/or hinder the introduction and/or
admission into evidence of any correspondence between the Parties regarding the intent of the Parties to this Contract, including, but not limited to, placement correspondence between the Parties and/or underwriting representations made to the
Reinsurer. 

 ARTICLE 16 

EXTRA CONTRACTUAL OBLIGATIONS/EXCESS OF POLICY LIMITS 
  

	 	A.	This Contract shall cover 100% of Extra Contractual Obligations. “Extra Contractual Obligations” shall be defined as those liabilities not covered under any other provision of this Contract and that arise from
the handling of any claim on business covered hereunder, such liabilities arising because of, but not limited to, the following: failure by the Company to settle within the Policy limit, or by reason of alleged or actual negligence, fraud or bad
faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such action. 

  
 Page 19 

	 	B.	This Contract shall cover 100% of Loss in Excess of Policy Limits. “Loss in Excess of Policy Limits” shall be defined as Loss in excess of the Policy limit, having been incurred because of, but not limited to,
failure by the Company to settle within the Policy limit or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or
reinsured or in the preparation or prosecution of an appeal consequent upon such action. 

  

	 	C.	An Extra Contractual Obligation and/or Loss in Excess of Policy Limits shall be deemed to have occurred on the same date as the loss covered under the Company’s Policy, and shall constitute part of the original
loss. 

  

	 	D.	For the purposes of the Loss in Excess of Policy Limits coverage hereunder, the word “Loss” shall mean any amounts for which the Company would have been legally liable to pay had it not been for the limit of
the original Policy. 

  

	 	E.	Loss Adjustment Expense in respect of Extra Contractual Obligations and/or Loss in Excess of Policy Limits shall be covered hereunder in the same manner as other Loss Adjustment Expense. 

 

	 	F.	However, this Article shall not apply where the loss has been incurred due to fraud of a member of the Board of Directors or a corporate officer of the Company acting individually or collectively or in collusion with
any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

  

	 	G.	In no event shall coverage be provided to the extent not permitted under law. 

 ARTICLE 17

 FEDERAL EXCISE TAX 
 Reinsurer
represents that it domiciled in the United States of America and is not subject to Federal Excise Tax. However, in the event that Reinsurer becomes subject thereto: 
  

	 	A.	The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax 1% of the premium payable hereon to the extent such premium is subject to Federal Excise Tax. 

 

	 	B.	In the event of any return of premium becoming due hereunder the Reinsurer will deduct 1% from the amount of the return and the Company or its agent should take steps to recover the Tax from the United States
Government. 

  
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 ARTICLE 18 

GOVERNING LAW 
 This Contract shall be governed by
and construed according to the laws of the State of Florida without regard to its conflict of law principles. 
 ARTICLE 19

 ERRORS AND OMISSIONS 
 Any inadvertent
error, omission or delay in complying with the terms and conditions of this Contract shall not be held to relieve either Party hereto from any liability that would attach to it hereunder if such error, omission or delay had not been made, provided
such error, omission or delay is rectified immediately upon discovery. 
 ARTICLE 20 

INSOLVENCY 
  

	 	A.	This Article and the laws of the State of Florida shall apply in the event of the insolvency of any company covered hereunder. 

  

	 	B.	In the event of the insolvency of the Company, this reinsurance (or the portion of any risk or obligation assumed by the Reinsurer, if required by applicable law) shall be payable directly to the Company, or to its
liquidator, receiver, conservator or statutory successor, either: (1) on the basis of the liability of the Company, or (2) on the basis of claims filed and allowed in the liquidation proceeding, whichever may be required by applicable
statute, without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of the Company has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator,
receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the Policy or bond reinsured, which claim would involve a possible liability on the part
of the Reinsurer within a reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be
chargeable, subject to the approval of the court, against the Company as part of the expense of conservation or liquidation to the extent of a pro rata share of the benefit that may accrue to the Company solely as a result of the defense undertaken
by the Reinsurer. 

  
 Page 21 

	 	C.	Where two or more reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of this Contract as though
such expense had been incurred by the Company. 

  

	 	D.	As to all reinsurance made, ceded, renewed or otherwise becoming effective under this Contract, the reinsurance shall be payable as set forth above by the Reinsurer to the Company or to its liquidator, receiver,
conservator or statutory successor, except (1) where the Contract specifically provides another payee in the event of the insolvency of the Company, and (2) where the Reinsurer, with the consent of both the Florida Office of Insurance
Regulation and the direct insured or insureds, has assumed such Policy obligations of the Company as direct obligations of the Reinsurer to the payees under such Policies and in substitution for the obligations of the Company to such payees. In that
event only, and if the Company is entirely released from its obligations under such Policies, the Reinsurer shall pay any loss directly to payees under such Policies. 

ARTICLE 21 
 REINSURER’S
REPRESENTATIONS 
 The Reinsurer makes the following representations to the Company, which representations are material to the Company in entering
into this Contract: 
  

	 	A.	Heritage shall offer to renew each Assumed Policy for a minimum of three years from its Assumption Date. For three years beginning January 1, 2013, Heritage’s renewals of Assumed Policies shall be written on
Heritage’s policy forms, offering at least the same deductible and coverage options as Citizens’ forms, and shall include an average annual rate equal to Citizens’ current or future comparable rate for such Policies, plus an increase
no greater than the higher of any approved rate increases for comparable risks granted to Citizens or 10% (the “glide path”), unless otherwise approved by the OIR due to exigent circumstances, or the policyholder voluntarily elects another
policy form offered by Heritage and pays the manual premium for such coverage B. The Reinsurer has agreed for a period of at least three (3) years from the effective date of this Contract, to maintain a volume of in-force gross written premium
for the subject business lines located in Florida equal to or exceeding the amount of premium assumed from Citizens via depopulation between January 1, 2013 and June 28, 2013 that are subject to this Contract. 

 

	 	C.	The Reinsurer has agreed to not pay any dividends whatsoever from Heritage Property and Casualty Insurance Company to any individual or entity for a period of at least three (3) years from the effective date of
this Contract unless such dividend is expressly approved by the Florida Office of Insurance Regulation. 

  
 Page 22 

	 	D.	This Contract is one step in a plan for Heritage Property and Casualty Insurance to depopulate the Policies written by the Company. The Depopulation Plan for these policies has been approved by the Florida Office of
Insurance Regulation (“OIR”). This Contract is of limited time duration because it is intended to provide reinsurance for the Policies only until the OIR approved Depopulation Plan for such Policies is implemented. Once the Depopulation
Plan is implemented, the Reinsurer will become the insurer under the Policies, this Contract will terminate as regards Policies as they are assumed and the Company will have no further responsibilities with respect to the Policies covered under this
Contract. If for any reason the approved Depopulation Plan is not implemented by June 28, 2013, the depopulation effort will cease, this Contract will terminate and the Company will remain the insurer under the Policies. The Reinsurer will use
its best efforts to fully implement the approved Depopulation Plan which includes assuming a minimum of 60,000 policies, gross of opt-outs. The Reinsurer will replace opted-out policies as necessary to meet this minimum commitment.

 The representations contained in this Article shall survive the term of this Article and remain in effect for the stated
periods in each of the respective paragraphs. 
 ARTICLE 22 

NON-WAIVER 
 The failure of the Company or the
Reinsurer to insist on compliance with this Contract or to exercise any right or remedy hereunder shall not constitute a waiver of any rights contained in this Contract nor prevent either Party from thereafter demanding full and complete compliance
nor prevent either party from exercising such remedy in the future. 
 ARTICLE 23 

OFFSET 
 The Company and the Reinsurer may offset
any balance or amount due from one Party to the other under this Contract. However, in the event of the insolvency of any party hereto, offset will only be allowed in accordance with the Insolvency Article, or where in conflict with applicable law,
such law will govern. 
 ARTICLE 24 

SALVAGE AND SUBROGATION 
 The Reinsurer shall be
credited with salvage or subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less Loss Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements
involving reinsurance hereunder. Salvage and subrogation recoveries thereon shall always be used to reimburse the excess carriers in the reverse order of their priority according to their participation before being used in any way to reimburse the
Company for its primary loss. The Company hereby agrees to enforce its rights to salvage or subrogation whenever the costs related thereto appear, in the opinion of the Company, to be economically feasible in relation to the potential reduction in
reinsurance recovery hereunder. 

  
 Page 23 

 ARTICLE 25 

SEVERABILITY 
 If any provision of this Contract
shall be rendered illegal or unenforceable by the laws, regulations or public policy of any jurisdiction, such provision shall be considered void in such jurisdiction, but this shall not affect the validity or enforceability of any other provision
of this Contract or the validity or enforceability of such provision in any other jurisdiction. 
 ARTICLE 26 

TAX 
 In consideration of the terms under which
this Contract is issued, the Company undertakes not to claim any deduction of the premium hereon if it files any Canadian tax returns or if it files any tax returns, other than Income or Profits Tax returns, to any State or Territory of the United
States or to the District of Columbia. 
 Notwithstanding the above paragraph, the Company does not intend to waive any immunities that are applicable to
it. Nor is the above paragraph intended to imply that the Company believes it is subject to any tax obligation. 
 ARTICLE 27

 REINSURANCE COLLATERAL 
  

	 	A.	The Company agrees, in respect of its Policies falling within the scope of this Contract, that when it sets up liabilities on its books, it shall forward to the Reinsurer a statement showing the liabilities applicable
to the Reinsurer. The “Reinsurer’s Obligations” shall be defined as follows: 

  

	 	1.	unearned premium; 

  

	 	2.	known outstanding losses that have been reported to the Reinsurer and Loss Adjustment Expense relating thereto; 

  

	 	3.	Losses and Loss Adjustment Expense paid by the Company but not recovered from the Reinsurer; 

  

	 	4.	Losses incurred but not reported and Loss Adjustment Expense relating thereto; 

  
 Page 24 

	 	5.	all other amounts due from the Reinsurer to the Company under this Contract, but only to the extent the Company cannot take credit on its financial statements unless funding is provided by the Reinsurer.

  

	 	B.	The Reinsurer’s obligation to pay claims under this Contract shall be collateralized by the reinsurance premiums held by the Company. The Parties agree that the Company may use such funds at any time for the
following purposes: 

  

	 	1.	to reimburse the Company for the Reinsurer’s Obligations, the payment of which is due under the terms of this Contract and that has not been otherwise paid; 

 

	 	2.	to refund the Company any amounts related to those Policies that have opted out of the Depopulation Plan. The Company will determine in its sole discretion the amounts to be refunded to it from such Policies;

  

	 	3.	to fund an account with the Company for the Reinsurer’s Obligations; 

  

	 	4.	to pay the Reinsurer’s share of any other amounts the Company claims are due under this Contract. 

  

	 	C.	If the amount drawn by the Company is in excess of the actual amount determined to be due, the Company shall promptly return to the segregated account the excess amount so drawn. All of the foregoing shall be applied
without diminution because of insolvency on the part of the Company or the Reinsurer. 

  

	 	D.	The issuing bank shall have no responsibility whatsoever in connection with the propriety of withdrawals made by the Company or the disposition of funds withdrawn, except to ensure that withdrawals are made only upon
the order of properly authorized representatives of the Company. 

 ARTICLE 28 

NO THIRD PARTY RIGHTS 
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any insured, claimant or other third party have any rights under or in any way with respect to this Contract. 

ARTICLE 29 
 COSTS OF
TRANSACTION 
 The Reinsurer agrees to reimburse the Company for the reasonable and documented actual attorneys’ fees and other costs and
expenses incurred and paid by the Company related to the preparation, execution and implementation of this Contract and any related transactions which implement the Depopulation Plan. Such reimbursement will be paid by Reinsurer within 20 days of
its receipt from the Company statements for such costs and expenses. 

  
 Page 25 

 ARTICLE 30 

MODE OF EXECUTION 
  

	 	A.	This Contract may be executed by: 

  

	 	1.	An original written ink signature of paper documents; 

  

	 	2.	An exchange of facsimile copies showing the original written ink signature of paper documents; 

  

	 	3.	Electronic signature technology employing computer software and a digital signature or digitizer pen pad to capture a person’s handwritten signature in such a manner that the signature is unique to the person
signing, is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the document signed in such a manner that if the data is changed, such signature is invalidated. 

 

	 	B.	The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this contract. This Contract may be executed in one or more counterparts, each of which, when
duly executed, shall be deemed an original. 

  
 Page 26 

 IN WITNESS WHEREOF, the Company by its duly authorized representative has executed this Contract as of the
date specified below: 
 Signed in Tallahassee, Florida, this 22nd day of May, 2013. 

CITIZENS PROPERTY INSURANCE CORPORATION 

			
		
	By:	 	

		 	Barry Gilway
		 	Title: President/CEO and Executive Director

  
 Page 27 

 IN WITNESS WHEREOF, the Reinsurer by its duly authorized representative has executed this Contract as of
the date specified below: 
 Signed in Tallahassee, Florida this 22nd day of May, 2013. 

HERITAGE PROPERTY AND CASUALTY INSURANCE COMPANY 
  

			
		
	By:	 	

	Title:	 	President

			
		
	Reference No.	 	 

 Share: 100% part of 100% 

  
 Page 28

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