Document:

Incentive Stock Option Agreement

 Exhibit 10.7 
 HOMEOWNERS CHOICE, INC. 
 Incentive Stock Option Agreement 
 HOMEOWNERS CHOICE, INC., a Florida corporation (the “Company”), hereby grants the following stock option pursuant to its 2007 Stock
Option and Incentive Plan. The terms and conditions attached hereto are also a part hereof. 
  

			
	Name of Employee (the “Employee”):	 	 
		
	Date of this option grant:	 	            , 20    
		
	Number of shares of the Company’s Common Stock subject to this option (“Option Shares”):	 	 
		 	
		
	Option exercise price per share:	 	$                    
		
	Number of Option Shares subject to vesting schedule:	 	 
		 	
	Vesting Start Date:	 	            , 20    
		
	Vesting Schedule:	 	
		
	Effective as of             , 20    , the following number of shares shall be fully vested
immediately	 	            shares
		
	Commencing on             , 20     and continuing on the same day of each calendar year thereafter
through and including             , 20     (each a “Yearly Vesting Date”), the following number of shares will vest and become exercisable on
each such Yearly Vesting Date:	 	            shares
		
	 Payment alternatives [specify any or all of Section 7(a)(i) though (iii)]:
	 	 

 [This option satisfies in full all commitments that the Company has to the Employee with respect to the issuance
of stock, stock options or other equity securities.] 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

					
		 	 HOMEOWNERS CHOICE, INC.,
 a Florida
corporation

			
	  
	 	By:	 	  

	Signature of Employee	 		 	 Paresh Patel,
 Chairman of the Board of
Directors

			
	Street Address:	 		 	
			
	  
	 		 	
			
	  
 City/State/Zip Code
	 		 	

  

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 HOMEOWNERS CHOICE, INC. 
 INCENTIVE STOCK OPTION AGREEMENT — INCORPORATED TERMS AND CONDITIONS 
 1. Grant Under Plan. This option is granted pursuant to and is governed by the Company’s 2007 Stock Option and Incentive Plan (the “Plan”) and, unless the context otherwise requires, terms used herein shall have
the same meaning as in the Plan. 
 2. Grant as Incentive Stock Option. This option is intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”). 
 3. Vesting of Option if Employment Continues. The Employee may exercise this option on or after the date of this option grant for the number of shares of Common Stock, if any, indicated on the cover page hereof. If the Employee has
remained continuously employed by the Company through the dates listed on the vesting schedule set forth on the cover page hereof, the Employee may exercise this option for the additional number of shares of Common Stock set opposite the applicable
vesting date. Notwithstanding the foregoing, the Board may, in its discretion, accelerate the date that any installment of this option becomes exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the Employee
ceases to be employed by the Company) may be exercised only before the date which is ten years from the date of this option grant. 
 4.
Termination of Employment. 
 (a) Termination Other Than for Cause. If the Employee ceases to be employed by the
Company, other than by reason of death or disability as defined in Section 5 or termination for Cause as defined in Section 4(c), no further installments of this option shall become exercisable, and this option may no longer be exercised
after the passage of thirty days from the Employee’s last day of employment, but in no event later than the scheduled expiration date. For purposes hereof, employment shall not be considered as having terminated during any leave of absence if
such leave of absence has been approved in writing by the Company and if such written approval contractually obligates the Company to continue the employment of the Employee after the approved period of absence; in the event of such an approved
leave of absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to all vesting dates) unless otherwise provided in the Company’s written approval of the leave of absence. For purposes hereof,
employment shall include a consulting arrangement between the Employee and the Company that immediately follows termination of employment, but only if so stated in a written consulting agreement executed by the Company that specifically refers to
this option. This option shall not be affected by any change of employment within or among the Company and its Subsidiaries so long as the Employee continuously remains an employee of the Company or any Subsidiary. 
 (b) Termination for Cause. If the employment of the Employee is terminated for Cause (as defined in Section 4(c)), this option
may no longer be exercised from and after the Employee’s receipt of written notice of such termination. 

 (c) Definition of Cause. “Cause” shall mean conduct involving one
or more of the following: (i) the substantial and continuing failure of the Employee, after notice thereof, to render services to the Company in accordance with the terms or requirements of his or her employment; (ii) disloyalty, gross
negligence, willful misconduct, dishonesty, fraud or breach of fiduciary duty to the Company; (iii) deliberate disregard of the rules or policies of the Company, or breach of an employment or other agreement with the Company, which results in
direct or indirect loss, damage or injury to the Company; (iv) the unauthorized disclosure of any trade secret or confidential information of the Company; or (v) the commission of an act which constitutes unfair competition with the
Company or which induces any customer or supplier to breach a contract with the Company. 
 5. Death; Disability. 
 (a) Death. If the Employee dies while in the employ of the Company, this option may be exercised, to the extent otherwise
exercisable on the date of his or her death, by the Employee’s estate, personal representative or beneficiary to whom this option has been transferred pursuant to Section 10, only at any time within 180 days after the date of death, but
not later than the scheduled expiration date. 
 (b) Disability. If the Employee ceases to be employed by the Company
by reason of his or her disability, this option may be exercised, to the extent otherwise exercisable on the date of cessation of employment, only at any time within 180 days after such cessation of employment, but not later than the scheduled
expiration date. For purposes hereof, “disability” means “permanent and total disability” as defined in Section 22(e)(3) of the Code. 
 6. Partial Exercise. This option may be exercised in part at any time and from time to time within the above limits, except that this option may
not be exercised for a fraction of a share. 
 7. Payment of Exercise Price. 
 (a) Payment Options. The exercise price shall be paid by one or any combination of the following forms of payment that are
applicable to this option, as indicated on the cover page hereof: 
  

	 	(i)	by check payable to the order of the Company; or 

  

	 	(ii)	if the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), delivery of an irrevocable and unconditional
undertaking, satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery by the Employee to the Company of a copy of irrevocable and
unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price; or 

  

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	 	(iii)	subject to Section 7(b) below, if the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), by delivery
of shares of Common Stock having a fair market value equal as of the date of exercise to the option price. 

 In
the case of (iii) above, fair market value as of the date of exercise shall be determined as of the last business day for which such prices or quotes are available prior to the date of exercise and shall mean (i) the last reported sale
price (on that date) of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that
date) of the Common Stock on the Nasdaq National Market (or successor trading system), if the Common Stock is not then traded on a national securities exchange. 
 (b) Limitations on Payment by Delivery of Common Stock. If Section 7(a)(iii) is applicable, and if the Employee delivers
Common Stock held by the Employee (“Old Stock”) to the Company in full or partial payment of the exercise price and the Old Stock so delivered is subject to restrictions or limitations imposed by agreement between the Employee and
the Company, an equivalent number of Option Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the extent that the Employee paid for the Option Shares by delivery of Old Stock, in addition to any restrictions
or limitations imposed by this Agreement. Notwithstanding the foregoing, the Employee may not pay any part of the exercise price hereof by transferring Common Stock to the Company unless such Common Stock has been owned by the Employee free of any
substantial risk of forfeiture for at least six months. 
 8. Securities Laws Restrictions on Resale. Until registered under the
Securities Act of 1933, as amended, or any successor statute (the “Securities Act”), the Option Shares will be of an illiquid nature and will be deemed to be “restricted securities” for purposes of the Securities
Act. Accordingly, such shares must be sold in compliance with the registration requirements of the Securities Act or an exemption therefrom. Unless the Option Shares have been registered under the Securities Act, each certificate evidencing any of
the Option Shares shall bear a legend substantially as follows: 
 “The shares represented by this certificate are subject to
restrictions on transfer and may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with and subject to all the terms and conditions of a certain Incentive Stock Option Agreement dated as of
            , 20    , a copy of which the Company will furnish to the holder of this certificate upon request and without charge.” 
  

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 9. Method of Exercising Option. Subject to the terms and conditions of this Agreement, this option
may be exercised by written notice to the Company at its principal executive office, or to such transfer agent as the Company shall designate. Such notice shall state the election to exercise this option and the number of Option Shares for which it
is being exercised and shall be signed by the person or persons so exercising this option. Such notice shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates
representing such shares as soon as practicable after the notice shall be received. Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be exercised by the
Employee and if the Employee shall so request in the notice exercising this option, shall be registered in the name of the Employee and another person jointly, with right of survivorship). In the event this option shall be exercised, pursuant to
Section 5 hereof, by any person or persons other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person or persons to exercise this option. 
 10. Option Not Transferable. This option is not transferable or assignable except by will or by the laws of descent and distribution. During the
Employee’s lifetime only the Employee can exercise this option. 
 11. No Obligation to Exercise Option. The grant and acceptance
of this option imposes no obligation on the Employee to exercise it. 
 12. No Obligation to Continue Employment. Neither the Plan,
this Agreement, nor the grant of this option imposes any obligation on the Company to continue the Employee in employment. 
 13.
Adjustments. Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends or similar rights for which the record date is prior to such date of
exercise. 
 14. Withholding Taxes. If the Company in its discretion determines that it is obligated to withhold any tax in connection
with the exercise of this option, or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other property acquired pursuant to this option, the Employee hereby agrees that the Company may (i) withhold from the
Employee’s wages or other remuneration the appropriate amount of tax or (ii) require as a condition precedent to such exercise, transfer or lapse, as the case may be, that the Employee tender to the Company a cash payment equal to the
appropriate amount of tax. At the discretion of the Company, the amount required to be withheld may be withheld in cash from such wages or other remuneration or in kind from the Common Stock or other property otherwise deliverable to the Employee on
exercise of this option. The Employee further agrees that, if the Company does not withhold an amount from the Employee’s wages or other remuneration sufficient to satisfy the withholding obligation of the Company, the Employee will make
reimbursement on demand, in cash, for the amount underwithheld. The Company shall have no obligation to issue a certificate evidencing Option Shares pursuant to the exercise of this option or give effect to any such exercise unless and until the
Employee has fulfilled all obligations with regard to taxes as provided in this Section 14 in a manner which is satisfactory to the Company, in its sole discretion. 
  

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 15. Restrictions on Transfer; Company’s Right of First Refusal. 
 (a) Exercise of Right. Option Shares may not be transferred without the Company’s written consent except by will, by the laws
of descent and distribution or in accordance with the further provisions of this Section 15. If the Employee desires to transfer all or any part of the Option Shares to any person other than the Company (an “Offeror”), the
Employee shall: (i) obtain in writing an irrevocable and unconditional bona fide offer (the “Offer”) for the purchase thereof from the Offeror; and (ii) give written notice (the “Option Notice”) to
the Company setting forth the Employee’s desire to transfer such shares, which Option Notice shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price and terms of the Offer.
Upon receipt of the Option Notice, the Company shall have an assignable option to purchase any or all of such Option Shares (the “Company Option Shares”) specified in the Option Notice, such option to be exercisable by giving,
within 15 days after receipt of the Option Notice, a written counter-notice to the Employee. If the Company elects to purchase any or all of such Company Option Shares, it shall be obligated to purchase, and the Employee shall be obligated to sell
to the Company, such Company Option Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the Company of such counter-notice. 
 (b) Sale of Option Shares to Offeror. The Employee may, for 60 days after the expiration of the 15-day option period as set forth
in Section 15(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of such Company Option Shares not purchased or agreed to be purchased by the Company or its assignee; provided, however, that the Employee shall not
sell such Option Shares to such Offeror if such Offeror is a competitor of the Company and the Company gives written notice to the Employee, within 15 days of its receipt of the Option Notice, stating that the Employee shall not sell his or her
Option Shares to such Offeror; and provided, further, that prior to the sale of such Option Shares to an Offeror, such Offeror shall execute an agreement with the Company pursuant to which such Offeror agrees to be subject to the restrictions
set forth in this Section 15. If any or all of such Option Shares are not sold pursuant to an Offer within the time permitted above, the unsold Option Shares shall remain subject to the terms of this Section 15. 
 (c) Failure to Deliver Option Shares. If the Employee fails or refuses to deliver on a timely basis duly endorsed certificates
representing Company Option Shares to be sold to the Company or its assignee pursuant to this Section 15, the Company or its assignee shall have the right to deposit the purchase price for such Company Option Shares in a special account with
any bank or trust company, giving notice of such deposit to the Employee, whereupon such Company Option Shares shall be deemed to have been purchased by the Company or its assignee, as the case may be. All such monies shall be held by the bank or
trust company for the benefit of the Employee. All monies deposited with the bank or trust company but remaining unclaimed for two years after the date of deposit shall be repaid by the bank or trust company to the Company on demand, and the
Employee shall thereafter look only to the Company for payment. 
  

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 (d) Expiration of Company’s Right of First Refusal and Transfer Restrictions.
The first refusal rights of the Company and the transfer restrictions set forth in this Section 15 shall expire as to Option Shares on the earliest to occur of (i) the tenth anniversary of the date of this Agreement, (ii) immediately
prior to the closing of a public offering of Common Stock by the Company pursuant to an effective registration statement filed under the Securities Act, (iii) the occurrence of an Acquisition or (iv) the execution by the Employee of a
joinder to any Shareholders’ Agreement between the Corporation and all of its shareholders which contains rights of first refusal with respect to the issued and outstanding Common Stock (the “Shareholders’ Agreement”). The
Employee shall be obligated to execute a joinder to the Shareholders’ Agreement as a condition precedent to receiving the Option Shares. 
 16. Early Disposition. The Employee agrees to notify the Company in writing immediately after the Employee transfers any Option Shares, if such transfer occurs on or before the later of (a) the date that is two years after the
date of this Agreement or (b) the date that is one year after the date on which the Employee acquired such Option Shares. The Employee also agrees to provide the Company with any information concerning any such transfer required by the Company
for tax purposes. 
 17. Lock-Up Agreement. The Employee agrees that in the event that the Company effects an initial underwritten
public offering of Common Stock registered under the Securities Act, the Option Shares may not be sold, offered for sale or otherwise disposed of, directly or indirectly, without the prior written consent of the managing underwriter(s) of the
offering, for such period of time after the execution of an underwriting agreement in connection with such offering that all of the Company’s then directors and executive officers agree to be similarly bound. 
 18. Arbitration. Any dispute, controversy, or claim arising out of, in connection with, or relating to the performance of this Agreement or its
termination shall be settled by arbitration in the State of Florida, pursuant to the rules then obtaining of the American Arbitration Association. Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may
be entered in any court having jurisdiction thereof. 
 19. Provision of Documentation to Employee. By signing this Agreement the
Employee acknowledges receipt of a copy of this Agreement and a copy of the Plan. 
 20. Miscellaneous. 
 (a) Notices. All notices hereunder shall be in writing and shall be deemed given when sent by certified or registered mail, postage
prepaid, return receipt requested, if to the Employee, to the address set forth below or at the address shown on the records of the Company, and if to the Company, to the Company’s principal executive offices, attention of the Corporate
Secretary. 
 (b) Entire Agreement; Modification. This Agreement constitutes the entire agreement between the parties
relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by a
written agreement executed by both parties. 
  

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 (c) Fractional Shares. If this option becomes exercisable for a fraction of a
share because of the adjustment provisions contained in the Plan, such fraction shall be rounded down. 
 (d) Issuances of
Securities; Changes in Capital Structure. Except as expressly provided herein or in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares subject to this option. No adjustments need be made for dividends paid in cash or in property other than securities of the Company. If there shall be any
change in the Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, liquidation, spin-off, split-up or other similar change in capitalization or
event, the restrictions contained in this Agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Employee in exchange for, or by virtue of his or her ownership of, Option Shares, except as
otherwise determined by the Board. 
 (e) Severability. The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any other provision. 
 (f) Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth in Section 10 hereof. 
 (g) Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Florida, without
giving effect to the principles of the conflicts of laws thereof. 
  

 7ISO Master Agreement

 Exhibit 10.8 
 ISO MASTER AGREEMENT - PROPERTY/CASUALTY INSURER 
 January 2005 Edition 
 Agreement made this 1 day of NOVEMBER, 2007 between Insurance Services Office, Inc., with offices at 545 Washington Boulevard, Jersey City, New Jersey
07310-1686 on behalf of itself, its subsidiaries and affiliates (“ISO”®) and “ HOMEOWNER’S CHOICE INC. having offices at 145 NW CENTRAL PARK PLAZA #115 PORT ST. LUCIE FL 34986 and all its affiliates and subsidiaries that
provide property/casually insurance, unless excluded on an attached Schedule A (collectively referred to herein as “Licensee”). 
 In consideration of the mutual covenant contained herein, the parties agree as follows: 
 1.          DEFINITIONS: 
 a.           “Agreement” means this agreement and all Exhibits, Annex(es) and Supplement(s). 
 b.          “Confidential Information” means any non-public information of either party including but not limited to, agenda and minutes of ISO panels.

 c.          “Product” or “Products” means any and all works,
materials, and data, distributed by ISO or by a third party licensor of ISO, in any form, format or media (including but not limited to paper, electronic media and all forms of electronic delivery) including but not limited to manuals, forms and
endorsements, circulars, actuarial studies, loss costs, statistical plans, database outputs, data compilations and software, and their derivatives that are proprietary to and/or copyrighted or copyrightable by ISO or proprietary to and/or
copyrighted or copyrightable by a third party licensor of ISO and lawfully licensed to ISO for distribution by ISO and are applicable to the services and jurisdictions for the lines of insurance or subdivisions thereof, as indicated in the
Supplements. 
 d.          “Supplements” means the Participation Supplement for
each line of insurance (the “Participation Supplements”) and all Product Supplements attached to this Agreement and incorporated by reference herein, 
 e.          “Territory” The states, jurisdictions or territories of the United States of America, as licensed herein. 
 2.          PARTICIPATION: 
 a.          To the extent indicated by Licensee on any Participation Supplement, Licensee agrees to participate with ISO as defined in ISO’s
Certificate of Incorporation and By-laws and as set out in the Participation Supplements. Licensee agrees to abide by any rules or procedures duly adopted by the Board of Directors of ISO as they apply to ISO participation and this Agreement,
Licensee will be promptlv notified of and provided with any modifications or updates to said rules or procedures. Licensee acknowledges that it is not required to license or use any Product filed or issued by ISO, except as may he required by law or
regulation, and Licensee shall not state or in any way suggest or represent to any entity that it is or has been required to do so. 
 b.          By selecting participation for Statistical Agent Service in the Participation Supplement, Licensee agrees to report its statistical data to ISO in accordance with ISO’s
applicable statistical plans, calls far statistics and related requirements. Licensee agrees that ISO has the right to use said data in developing loss costs and other products, provided that such use does not reveal Licensee’s individual
information. 
 3.          LICENSE: 
 Provided that Licensee: 
 a.          has completed the appropriate Participation Supplement(s) and/or all applicable Product Supplement(s); and 
 b.          continues to abide by the terms of this Agreement and the Supplements for the services. Territory and lines of insurance, or
subdivisions thereof, pertaining to the Products licensed hereunder; 
 ISO greats to Licensee a non-exclusive, non-transferable license to
use in the Territory the Products which are obtained directly from ISO, or from a third party licensed by ISO to distribute than to Licensee, solely for Licensee’s property/casualty insurance or reinsurance business. Licensee may copy or
reproduce the Product(s) at its premises as permitted in Section 6 below, but may not use a third party to do so unless that third party is licensed by ISO to supply the Product(s) and Licensee has confirmed with ISO that the third party is, in
fact, licensed to do so. Except as may be permitted under Sections 5. and 6. of this Agreement or under any Supplement to this Agreement, Licensee agrees to restrict access to all Products only to those employees of Licensee who have a need to use
them solely for purposes of Licensee’s property/casualty insurance or reinsurance business (“authorized employees”). Access to some Products may be limited to certain employees or other authorized users as identified on the Product
Supplement. Except as may be specifically permitted herein, neither Licensee, nor its employees, nor any users authorized by the Supplements, shall sell, transfer, distribute, publish, disclose, display or otherwise make the Product(s) or any of the
information therein available, in whole or in part, to any other person or entity, without the express written consent of ISO. 

 For the sole purpose of verifying Licensee’s compliance with this Agreement, ISO may require, on at
least ten (10) days prior notice, an examination and copying of any and all books of account, records, documents and other materials under the control of the Licensee, and other related entities, which contain records of Licensee’s use of
the Products in accordance with this Agreement. All such documents shall be kept available by Licensee for at least three (3) years after the period to which, they relate. ISO may exercise this right once in any twelve (12) month period.
The audit will be conducted by ISO or its authorized representatives. 
 In the event Licensee fails to satisfy any of the conditions
specified above, ISO may immediately cease providing Products to Licensee and may terminate access to the Products and thereafter notify Licensee of same. 
 4.          TERM AND TERMINATION: 
 This Agreement
is effective on the date specified above and shall remain in force until terminated. 
 a.          ISO may terminate this Agreement and/or any Supplement(s) as follows: 
 (1) if Licensee materially violates any term or condition of this Agreement or any Supplement(s) and fails to cure said violation within thirty (30) days following receipt of notice thereof from ISO. In such
event, ISO may cease providing the Product(s) to Licensee unless and until Licensee cures said breach; or 
 (2) if Licensee
defaults in the payment of any fee(s) due under this license with ten (10) days prior notice ; or 
 (3) if ISO makes a
business decision to discontinue any Product(s) and/or the maintenance and support of any Product(s) licensed hereunder, provided, however, that ISO shall provide Licensee with at least ninety (90) days notice of any such discontinuance, and
Licensee may continue to use the discontinued Product subject to the provisions of section 4. e. below; or 
 (4) if ISO
makes a business decision to discontinue participation for any line of insurance, or subdivision thereof, Territory or service, provided, however, that ISO shall provide Licensee with at least one hundred eighty (180) days notice of any such
discontinuance; or 
 (5) upon the effective date of legislation, regulation or judicial ruling or decision requiring ISO to
discontinue participation for any line of insurance, or subdivision thereof, Territory or service, or discontinue providing any Product(s); or 
 (6) immediately if Licensee (i) terminates or suspends its business; (ii) becomes subject to any bankruptcy or insolvency proceeding under federal or state law; or (iii) becomes insolvent or becomes subject
to direct control by a trustee, receiver or similar authority; or 
 (7) for any other reason, upon one hundred eighty (180)
days written notice to Licensee. 
 b.          Licensee may terminate any Participation
Supplement, or portion thereof, effective at the end of a calendar quarter by providing ISO with sixty (60) days written notice prior to end of the quarter,. 
 c.          Licensee may terminate this agreement and any Product Supplement, or portion thereof: 
 (1) if ISO terminates or suspends its business; or 
 (2) if ISO becomes subject to any bankruptcy or insolvency proceeding under federal or state law; or 
 (3) if ISO becomes insolvent or becomes subject to direct control by a trustee, receiver or similar authority; or 
 (4) for any other reason, upon one hundred eighty (180) days written notice to ISO. 
 d.          In the event of termination including expiration of this Agreement or any Supplements, ISO shall have the right to cease providing Products to Licensee and terminate
Licensee’s access to Product(s), and Licensee shall immediately discontinue use of the Products, and at ISO’s option: 
 (1) return to ISO all applicable Products provided, including all manuals, associated documentation and any copies thereof; or 
 (2) destroy the applicable Products, including all manuals, associated documentation and any copies thereof; and 
 (3) certify in writing signed by an officer of Licensee that they have been so returned or destroyed. 
 e.          ISO may, in certain circumstances and at its sole discretion, decide to permit Licensee to continue to use a Product during a transition period (specified below) after the
termination of this Agreement in its entirety or a termination of that portion of this Agreement applicable to that Product. If Licensee requests such permission, and ISO agrees, then Licensee must: 
  

 2 

 (1) execute an ISO Transitional License; and 
 (2) pay all Transition License fees. 
 Licensee acknowledges and understands that during the transition period, which shall not exceed three (3) years, Licensee shall not be licensed to use any update to any terminated Product(s) nor shall Licensee receive
any maintenance or other services related to the terminated Product(s). If Licensee executes a Transitional License, and pays the appropriate fees, Licensee shall not be required to return or destroy the Product(s), as required under section 4.d.,
until the expiration or termination of the Transition License. 
 f.          Termination
under this Section 4. shall not relieve Licensee of its obligations to ISO regarding participation for the period during which such participation existed or regarding property or copyright as specified in Sections 2., 9. and 10. In the event of
termination as a result of Licensee’s breach of its obligations under this Agreement, Licensee shall continue to be obligated for any payments due up to the effective date of termination. 
 g.          If the license to use any Product provided to Licensee electronically is terminated by ISO under Section 4.d.(l) or (2) or
is terminated by Licensee, Licensee will be liable and charged for payment of all applicable termination charges related thereto. 
 h.          Termination of this Agreement and/or any Supplement(s) shall be in addition to and not in lieu of any other remedies available to ISO. 
 5.          RESTRICTION AGAINST TRANSFER OF CONFIDENTIAL INFORMATION: Licensee shall not
disclose or release any ISO Confidential Information which is disclosed to Licensee either (i) in a writing or other tangible form or (ii) orally, to any third party except with ISO’s prior written consent, unless compelled to do so
by legal process. In such case, Licensee shall give ISO reasonable and sufficient notice to allow ISO to take action to protect its confidential information and trade secrets. Licensee shall treat ISO Confidential Information in the same manner and
with the same protections and safeguards as Licensee protects and safeguards its own confidential information and trade secrets. 
  

	a.	 ISO agrees that statistical information provided by Licensee shall be considered Licensee’s confidential information’s and ISO shall not release any
such information to any third party without Licensee’s prior written consent, except to appropriate insurance regulators as part of provision of statistical services (if such services are requested by Licensee), unless compelled to do so by
legal process. 

  

	b.	 ISO and Licensee acknowledge that much, if not all, of the material and information which has or will come into their possession from the other party pursuant to
this Agreement consists of confidential and proprietary information, nonpublic personal information or software of the disclosing party and its affiliates, agents, Licensees or third parties (“Confidential Information”). The party
receiving such Confidential Information agrees to hold it in strictest confidence and agrees not to release or disclose such Confidential Information to any individual or entity, whether employee, subcontractor, or subcontractor employee, except
that the receiving party may disclose such information to its employees who are necessarily involved in the performance of the recipient’s obligations hereunder and have agreed in writing to keep the information confidential to protect the
disclosing party’s interests, 

  

	c.	 The party receiving Confidential Information further agrees not to (i) use the Confidential Information for its own benefit or for the benefit of my third
parties, other than for the performance of its obligations under this Agreement, and (ii) release or disclose the Confidential Information to any other entity, either during the term or after the termination of this Agreement. In the event of any
breach of this confidentiality obligation or of the obligations relative to the rights to products and services pursuant to this Agreement, or any product developed or delivered in providing Services, the party receiving the Confidential Information
acknowledges that the disclosing party would have no adequate remedy at law, since the harm caused by such a breach could not be easily measured and compensated far in the form of damages. 

  

	d.	 The party receiving the Confidential Information shall be solely responsible for maintaining the security of such Confidential Information and for complying with
all federal, state, provincial and local laws, regulations, or other requirements including the Gramm-Leach-Billey Act of 1999, 15 U.S.C., Section 6801, as amended from time to time governing the privacy, confidentiality and non-disclosure of
such information. 

  

	e.	 The foregoing obligations shall not apply to any information which: a) is or becomes known publicly through no fault of the receiving party; or b) is acquired of
learned by the receiving party from a third party entitled to disclose it; or c) is already known to the receiving party before receipt from the disclosing party as shown by the receiving party’s written records; or d) is independently
developed by the receiving party, as shown by the receiving party’s written records; or e) must be disclosed ay operation of law. 

  

	f.	 The foregoing obligations of each party shall survive the termination or expiration of this agreement. 

 6.          RESTRICTION, AGAINST COPYING OR REDISTRIBUTING THE PRODUCT(S): Except as otherwise
provided in this Agreement, the Product(s) licensed hereunder may not be copied, reproduced, redistributed, sold, filed or used in any manner, without the written permission of ISO or, if the Product or the portion thereof to be copied, distributed
or used is proprietary to a third party, the permission of that third party. Licensee must receive ISO’s written permission prior to making a Product(s) available in electronic 

  

 3 

 consent to venue in the County of New York with respect to any such action, (b) waive any objection
to the jurisdiction and venue in the State and County of New York, and (c) agree not to plead or claim in any such court that any such suit, action or proceeding has been brought in an inconvenient forum. 
 16.          COUNTERPARTS. This Agreement 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. 
 17.          GENERAL. This Agreement, and the Annexes and Supplement(s), contains the entire agreement of the parties, shall prevail over and supersedes all previous written and oral
agreements or terms and conditions of any purchase order, acknowledgement form, or other instrument, or any promotional, marketing, or advertising materials (including without limitation any memorandums of understanding and written proposals) with
respect to the subject matter hereof. This Agreement, and the Annexes and Supplements, may be changed or modified only in a writing signed by both parties. If any provision of this Agreement is determined to be invalid under any applicable statute
or rule of law, it is, to the extent invalid, deemed to be omitted and the remaining provisions of the Agreement shall continue in full force and effect. The failure or delay of either party to insist upon the performance of any of the terms of this
Agreement in any one or more instances will not be construed as a waiver or relinquishment of the future performance of any such term, and the obligation of the parties with respect to any such future performance will continue in full force and
effect. This Agreement inures to the benefit of and is binding upon the successors and assigns of ISO and may be assigned by ISO to any of its subsidiaries, affiliates, or related companies. It likewise inures to the benefit of Licensee, but no
interest herein shall be transferred or assigned in any manner by Licensee. 
 This contract is not valid against ISO unless and until
executed by the appropriate ISO officer or authorized representative at the appropriate ISO home office. 
 IN WITNESS WHEREOF, the parties
hereto have executed this Agreement by their authorized representatives as of the day and year first written above. 
  

							
	 HOMEOWNERS CHOICE INC
	 	 INSURANCE SERVICES OFFICE, INC.

	 on behalf of itself, its subsidiaries and affiliates (Licensee)
	 	 on behalf of itself, its subsidiaries and affiliates (ISO)

				
	 Signed:
	 	 /s/ Ronald E. Chapman
	 	 Signed:
	 	 /s/ Neil Spector

				
	 Name:
	 	 Ronald E. Chapman
	 	 Name:
	 	 Neil Spector

				
	 Title:
	 	 COO
	 	 Title:
	 	 VP-Sales

				
	 Date:
	 	 11/1/07
	 	 Date:
	 	 11/26/07

  

 4 

 PRODUCT SUPPLEMENT: ISO Participation
PlusSM 
  
  
 This is a Product Supplement to ISO’s Master
Agreement, 01/05 edition dated 11/1/07 by and between Homeowners Choice Property and Casualty Insurance Company (“Licensee”} and Insurance Services Office, Inc. on behalf of itself, its subsidiaries and affiliates (all of which are
collectively referred to herein as “ISO”). 
 Description: 
  

	 x
	 Community Mitigation Classification Manual Plus (CMC). — Public Protection Classifications
(PPCTM) and Building Code Effectiveness Grading Schedule (BCEGS) Classifications through ISOnet including e-mail notification whenever changes are posted on the system, updates in three convenient, downloadable file formats — Microsoft® Word, Adobe® Acrobat (PDF), and HTML and 24/7 access to the latest CMC updates 

  

	x	 Electronic Forms on Diskette (EFDTM) — Access to an electronic library of simplified active and historical advisory forms and endorsements.
Licensee must file any changes it makes to the type size, heading, or content of the forms with the appropriate state regulators. Licensee is permitted to view and print the ISO forms, modify or customize them and integrate them into
its policy issuance system. 

  

	 ̈	 Engineering & Safety Services (E&STM) — A group of publications and services dealing with safety and risk reduction in industrial
and commercial settings, including; 

  

	 	a.	 Risk Management Information, which includes: 

  

	 	•	 	 Technical Reports, which provide analysis of specific hazards, processes and business operations, organized into various technical categories; and 

	 	•	 	 New Reports, which provide information on emerging Issues 

  

	 	b.	 Legislative Information, which includes: 

  

	 	•	 	 Loss Control Laws and Regulations Library, which provides a summary and actual text of regulations effecting insurance loss control operations;

	 	•	 	 Loss Control Legislative Alerts, which cover proposed legislation; 

	 	•	 	 Loss Control Compliance Guidelines 

  

	 	c.	 Risk Management Infolinks, which includes links to private and government sites. 

  

	 	d.	 Professional Development, which includes a variety of training courses. 

 Delivery is through ISOnet. The Products described in this Supplement and the information licensed hereunder is copyrighted by ISO
Services Properties, Inc. and other third-party providers as specified in the ProducL ISO shall not be responsible for any claim that may arise out of the third-party providers’ information included in this Product 
  

	x	 Fast Track Reports — Quarterly reports providing a perspective on changes in insurance data over time. You may compare your
company’s results with those of the Fast Track reporting companies. This product includes an electronic (PDF file) version of all fast track reports. 

  

	 x
	 FIRSTSM Reports
(Forms Information /Report System) — Reports showing the effective dates, expiration dates, and state applicability information for multistate and individual state forms and endorsements. 

  

	x	 Inland Marine Handbook — Forms, endorsements, declarations, and policywriting instructions for the 12 classes that make up 80% of commercial inland
marine non-filed premium volume. 

  

	  ̈
	 ISO IntegRaterTM
 — Advisory loss costs and rating factors published in tables in the Commercial Lines Manual in an electronic database format. Initial information will be provided on CD-ROM with
updates available through ISO’s website, A password is required for use of the website. Each sign-on and password may be used only by one authorized individual. 

  

	x	 ISOnet Circulars, Manuals and Forms —Electronic delivery of ISO Circulars, Manuals and Forms. 

	 ̈	 Motor Carrier Digest — A guide to insurance requirements for common, contract, and private carriers of passengers and property. A comprehensive
analysis of state and federal regulations related to liability insurance for trucks, buses, taxicabs, public and private livery vehicles, and vehicles for hire without a driver. 

  

	 ̈	 Multi-Line Class Table — ISO’s Multi-Line Class Table Database is a fast and efficient electronic system that helps you determine the correct
class codes to use in rating and coding commercial lines policies. 

  

	 x
	 Personal Lines Electronic Manual Download — The ability to download ISO personal lines manuals in
Microsoft® Word format to modify or load them into Licensee’s own automated systems. 

 Premium Audit Advisory Service (PAASTM) — A group of publications and services which provide Licensee with audit and underwriting information on Workers’ Compensation,
General Liability and Commercial Automobile, including Workers Compensation Classification Guides; General Liability Classification Guides; Rating Information; Bulletins on various subjects through PAAS on ISOnet only. Service does not include
consultations or the PAASbase CD, The right to purchase PAAS printed material is not included within this service. 
 This
Product includes information copyrighted by ISO Services Properties, Inc. and information copyrighted by various third parties (such third-party copyrighted material is hereinafter referred to as “Acquired Material”). Access to and use of
Acquired Materials are subject to and governed by ISO’s agreements with the copyright owners. Subject to this grant, a Licensee who places its software, files, information, communications or other content on this Product retains any rights
Licensee may have in such content Licensee agrees that it shall not, nor shall it permit any registered Licensee employee to, up load, post or otherwise publish in or on the Product any content which (i) violates or infringes upon the rights of
any other person or entity; (ii) is or may be perceived by an intended recipient as defamatory, abusive, profane, threatening or abusive; (iii) is or may be perceived by an intended recipient as defamatory, abusive, profane, threatening or
abusive; (iii) adversely affects the performance or availability of the Product or any other ISO Product; (iv) contains any virus or other harmful or corrupted data; or (v) without the prior written approval of ISO, contains any
advertising promotion or solicitation of goods or services for commercial purposes. 
 Within thirty (30) days after the
effective date of termination of this Agreement, the Licensee shall (i) immediately discontinue use of the Product and return same to ISO, associated documentation and any copies thereof; (ii) delete all copies made or installed on
Licensee’s systems and Licensee’s employee’s systems, associated documentation and copies made, and (iii) certify in writing signed by an officer of the Licensee that they have been so returned and destroyed. 
 The basic fee entitles Licensee to receive the classification information and the bulletins via PAAS on ISOnet only. 
  

	x	 Property Claim Service (PCSTM) — 

 A service under which Licensee is entitled to receive information regarding property losses related to events designated as “catastrophes” by ISO, as well as other publications and
services, including property claims information via ISOnet. Delivery is through ISOnet and a password is required. Each sign-on and password may be used only by one authorized individual. The material contained in this Product is provided to
Licensee solely for its use in its insurance operations, Licensee may not use the information provided through this Product for any other purpose, including as a trigger for the securitization of risk or other uses involving financial instruments

  

	 	•	 	 Catastrophe Bulletins — This service includes three types of reports: Bulletins, Extensions and Estimates, Bulletins are the first notice of the assignment
of a catastrophe serial number to an event. Extensions provide additional material relating to the initial bulletin. Estimates are reports prepared by staff providing preliminary, resurvey and final estimates of property damage on a by-state basis.
Estimates include number of claims, average payment end total amount of payments for Personal, Commercial and Automobile losses. 

	 	•	 	 Daily Severe Weather Summaries — These reports are daily summaries of severe weather events across the United States that cause significant insured property
damage. 

	 	•	 	 Tropical Storm/Huricane Advisories — This database, updated on an as-needed basis, includes information on tropical storms and hurricanes from the National
Hurricane Center. 

  

	x	 State Fifing Forms — A collection of more than 1,200 state filing forms from around the country. Delivery of this product is through ISOnet. Please
complete the appropriate supplement. 

	x	 State Filing Handbook — A standard reference on filing laws, regulations and procedures. Delivery of this product is through ISOnet.
Please complete the appropriate supplement. 

  

	 ̈	 VINMASTERTM (Physical Damage) — Access to current ISO auto symbols for foreign and domestic private passenger autos, beginning with model year
2000. This Product is available via email delivery only. 

  
  

	x	 ISO Participation Services — Services for the lines of insurance, states and jurisdictions selected on the Participation Supplement

  

	x	 Renewal of this ISO Participation Plus Product Supplement — Licensee requests continuation of all products and services previously chosen for an
additional term of 24 months unless otherwise stated in Product Supplement Term below. 

  
  

	Delivery:	ISO electronic delivery platforms. A password is required. Each sign-on and password may be used only by one authorized individual. 

 Additional Terms and Conditions Applicable to this Product: 
  

	a.	 Licensee hereby requests the Product(s) described herein and represents that this request is made by its authorized representative. Licensee warrants that it is
in compliance with all terms of the Master Agreement between the parties. At Licensee’s expense, Licensee shall provide all Licensee equipment and appropriate interfacing devices for any lines, modems and terminals compatible with the
connectivity arrangement(s) selected and to pay for all costs to connect to an ISO-provided connect point or designated node, if necessary. 

  

	b.	 Except with respect to Engineering and Safety Services, ISO hereby grants consent to Licensee to deliver this product to Licensee’s employees and authorized
users via local or wide area networks, intranets, extranets or the internet or similar electronic means pursuant to all other terms, conditions and limitations of the Master Agreement. Upon reasonable notice and at a mutually agreeable time, ISO may
periodically audit Licensee’s books and records relevant to the use of this Product to verify the number of authorized users that have access to the Product via any means. Neither Licensee, its employees, any other authorized user of the
Product, nor anyone acting by or through Licensee shall sell, transfer, distribute, publish, disclose, display or otherwise make the Products available, in whole or in part, or any of the information therein, to any other person or entity, without
the express written consent of ISO. This Product and the information licensed hereunder is copyrighted by ISO Properties, ISO Services Properties or the applicable ISO subsidiary. 

  

	c.	 This Product Supplement does not apply to Actuarial Services or Stat Agent Service. 

  

	d.	 Provided ISO’s prior written consent is obtained and for an additional fee, at any time during the Product Supplement Term, if Licensee forms or acquires an
affiliated or subsidiary company or otherwise wants to add a pre-existing affiliated or subsidiary company or division, Licensee may distribute this Product to such affiliate or subsidiary company or division as an authorized user under this Product
supplement subject to the terms and conditions of this Product Supplement. Licensee agrees to make payment to ISO of all additional fees as invoiced by ISO. 

  

	Fee:	 $10,409 for 11-1-2007 to 12-31-2007 (plus applicable taxes) 

 $ 65,268 for 2008 (plus applicable taxes) 
 $ 68,531 for 2009 (plus
applicable taxes) 
 Product Supplement Term: 11-1-2007 through 12-31-2009 
 Except as provided herein or modified hereby, all terms, covenants and condition of the Master Agreement remain unchanged. To the extent any provision in this Product Supplement conflicts with
any similar provision in the Master Agreement, the terms set forth on this Product Supplement shall control. This Product Supplement 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 
 This contract is not valid against ISO unless and until executed by the
appropriate ISO officer or authorized representative at the appropriate ISO home office. 

 IN WITNESS WHEREOF, the parties hereto have caused this Product Supplement to be executed by their duly
authorized representatives. 
  

					
	 Licensee:
	  	 Homeowners Choice Property and
 Casualty Insurance Company
	 	 ISO: Insurance Services Office, Inc.
 on behalf of itself, its subsidiaries and affiliates

  

									
	 Signature:
	 	 /s/ Ronald E. Chapman
	 		 	 Signature:
	 	 /s/ Neil Speetor

					
	 Print Name:
	 	 Ronald E. Chapman
	 		 	 Print Name:
	 	 Neil Speetor

					
	 Title:
	 	 COO
	 		 	 Title:
	 	 VP-Sales

					
	 Date:
	 	 11/1/07
	 		 	 Date:
	 	 11/26/07

  
  
  ̈Revised 

 

 

 [GRAPHIC APPEARS HERE] INSURANCE SERVICES OFFICE, INC. 
 PARTICIPATION PLUS MASTER ORDER FORM 
  
 A SEPARATE ORDER FORM IS TO BE COMPLETED IF PRODUCTS ARE TO BE DELIVERED TO DIFFERENT COMPANY REPRESENTATIVES 
  

			
	 COMPANY NAME     Homeowners Choice Property And Casualt Insurance
	  	 IRD#

		
	 CONTACT PERSON    Ron Chapman
	  	 EFFECTIVE DATE    11/1/07

		
	 ADDRESS    145 NW Central Park Plaza
	  	 SALES REP

		
	 #115 Port St. Lucie FL 34986
	  	 ACCOUNT MANAGER

							
				
	 PHONE    772-204-9394
	 	 FAX    772-204-9399
	  	 EMAIL    rchapman@hcpci.com
	  	

 PRODUCTS AND SERVICES: 
  

	þ	 COMMUNITY MITIGATION CLASSIFICATION MANUAL PLUS (provided through ISOnet) 

 Also include access to CMC Revisions 

	þ	 ELECTRONIC FORMS ON DISKETTE: Please choose one format:      Word XP      Word 2000
     Word 2003, 

 ISO will automatically match your company’s Personal and
Commercial Lines Forms Participation. 

	 ̈	 ENGINEERING & SAFETY SERVICE 

	þ	 FAST TRACK REPORTS 

	þ	 FIRST REPORTS: ISO will automatically match your company’s Forms Participation. 

	þ	 INLAND MARINE HANDBOOK (provided through ISOnet) 

	 ̈	 ISO INTEGRATER: ISO will automatically match your company’s Commercial Lines Rating Information Participation. If you add additional lines we
will send the Initial CD 

	þ	 ISONET (Manuals, Circulars and Forms): Number of seats
                             

	 ̈	 MOTOR CARRIER DIGEST (provided through ISOnet) 

	 ̈	 MULTI-LINE CLASS TABLE (provided through ISOnet) 

	þ	 PERSONAL LINES ELECTRONIC MANUAL DOWNLOAD (provided through ISOnet) 

	 ̈	 PREMIUM AUDIT ADVISORY SERVICES—PAASBASE (provided on CD and through ISOnet) 

	þ	 PROPERTY CLAIMS SERVICE (PCS) 

	þ	 STATE FILING FORMS (provided though ISOnet) 

	þ	 STATE FILING HANDBOOK (provided through ISOnet): 

 Please list the Participating States for which you would like to receive the State Filing Handbook: 
 FLORIDA 

	 ̈	 VINMASTER (Physical Damage) E-MAIL DELIVERY (Starting with model year 2000) 

 ADDITIONAL PARTICIPATION; IF ADDITIONAL SERVICES ARE REQUESTED, A PARTICIPATION SUPPLEMENT MUST BE COMPLETED 
 The person signing below will be the main contact for all of the products that have been checked. 
  
  

					
	 Authorized Official
	  	 /s/ Ronald E. Chapman
	  	 11/7/07

		  	 Signature:
	  	 Date

			
		  	 Ronald E. Chapman
	  	
		  	 Name
	  	
			
		  	 COO
	  	
		  	 Title
	  	
			
		  	 772-204-9394
	  	
		  	 Phone Number
	  	

  
  
 Questions: 
 Ed. 8/28/2007 
  
  

 

 

 Participation Supplement (cont’d) 
  
  

			
	Agreement	  	 This participant, as a Member, Subscriber, or Service Purchaser of insurance Services Office, Inc., agrees to abide by the provisions of the Participation Agreement
executed by the participant.

	 	  	 
		
	 Authorized Official
	  	 /s/ Ronald E. Chapman

		  	 Signature

		
		  	 Ronald E. Chapman

		  	 Name

		
		  	 COO

		  	 Title

		
		  	 rchapman@hcpi.com

		  	 E-mail Address

	 	  	 
	 Group Name (if applicable)
	  	
		  	  

	 	  	 
		
	 Company(ies) for which all

 participation
information
on this form applies and
for which signer is
authorized to act
	  	  

	  	  

	  	  

	  	  

	  	  

	  	  

	  	  

	  	  

	  	  

	  	
	 	  	 
	 Home Office Address
	  	
		
		  	 145 NW Central Park Plaza #115

		  	 Street Address/P.O, Box

		
		  	 Port St. Lucie FL 34986

		  	 CIty/State/ZiP

		
		  	 772-204-9394

		  	 Telephone No.

	 	  	 
		
	 Date
	  	 11/1/07

		
	 	  	 
	 Return to
	  	
		  	 ISO
 Customer Service

 545 Washington Boulevard
 Jersey City, NJ 07310-1686

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