Document:

Executive Employment Agreement

 Exhibit 10.24 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, dated March 8, 2012, is by and between
Homeowners Choice, Inc. (the “Company”), a Florida corporation having its principal place of business at 5300 West Cypress Street, Suite 100, Tampa, Florida 33607, and Scott Wallace, whose address is 11036 Turnbridge Drive, Jacksonville,
Florida 32256 (the “Executive”). 
 BACKGROUND STATEMENT 

The Company, through its Affiliates (as defined in this Agreement), is principally engaged in the business of
providing homeowners’ property and casualty insurance and owning and operating real estate ventures. An integral part of its insurance business is the investment of surplus and reserve funds. The Company contemplates that it may engage in other
insurance lines of business and other business activities as well. (All such business and investment activities, present and future, whether engaged in by the Company or an Affiliate are referred to in this Agreement as the
“Business”). The Company has developed and expects to develop trade secrets, methods of doing business, business plans, computer software and other items, all of which are worthy of protection. The Company considers it to be in its
best interests to have the benefit of the Executive’s services as provided in this Agreement and the Executive is willing to render such services to the Company in accordance with the provisions of this Agreement. 

NOW THEREFORE, in consideration of and reliance upon the foregoing background statement and the representations and
warranties contained in this Agreement, the Company and the Executive agree to the following terms and conditions: 
 TERMS AND
CONDITIONS 
 1.        Employment and Title. Commencing
April 16, 2012 or such other date to which the Company and the Executive may agree, the Company agrees to employ the Executive, and the Executive agrees to serve, as the Company’s Division President - Property and Casualty, upon the terms
and conditions set forth in this Agreement. 
 2.        Duties,
Responsibilities and Authority. During the term of his employment under this Agreement, the Executive will have the duties, responsibilities and authorities assigned to him by the Company’s chief executive officer and its board of
directors, which duties, responsibilities and authorities will not be inconsistent with the Executive’s role as the Company’s Division President - Property and Casualty. The Executive will serve as the president of each insurance company
within the Property and Casualty Division. The Executive will report to the Company’s chief executive officer and its board of directors. The Executive agrees to devote his best efforts and substantially all of his full business time, energies
and abilities, diligently and in good faith, to perform his duties, fulfill his responsibilities, and exercise his authority hereunder for the exclusive benefit of the Company. This provision will not be construed as preventing the Executive from
participating in charitable and community affairs, managing his investments or investing in or engaging in other ventures, provided such activities do not interfere with the performance of his duties under this Agreement and are not inconsistent
with his role as the Company’s Division President - Property and Casualty. The Executive agrees to serve on the Company’s board of directors, if elected. In promoting the interests of the Company and without additional compensation, the
Executive will serve any of the Company’s Affiliates, including subsidiary corporations, partnerships, limited liability corporations and joint ventures, in such capacities as the Company’s board of directors may from time to time
direct. The Executive will read and abide by any policy, code or practice the Company has or may hereafter adopt that is applicable to executives or executive officers in general, including policies and rules contained in the Company’s employee
handbook and code of conduct. 

 3.        Location. The
Executive’s principal place of employment will 5300 West Cypress Street in Tampa, Florida or such other place to which the parties agree, but in no event more than 20 miles from Tampa, Florida. 

4.        Term. The initial term of the Executive’s employment
hereunder will commence on the date described in Section 1 and continue for a period of three years, unless earlier terminated pursuant to the terms of this Agreement. The Executive’s employment hereunder will continue and
automatically renew for additional one-year terms unless either party delivers written notice of non-renewal at least 90 days before expiration of the initial term or any renewal term. The initial term and any renewal term are hereinafter
collectively referred to as the “Term.” 

5.        Compensation. 

5.1.        Base Salary. As compensation for the services to be rendered
by the Executive hereunder, the Company will pay the Executive, during the Term, an annual base salary of $300,000, which base salary will accrue and be paid in accordance with the Company’s normal payroll practices. Base salary will be
reviewed annually. 
 5.2.        Bonus Compensation. The
Executive will be entitled to any additional compensation provided for by resolution of the Company’s board of directors or applicable committee of the board of directors. As a signing bonus, the Company will pay the Executive $25,000 within
two weeks after commencement of the Term. 

5.3.        Benefits. During the Term, the Executive will be
entitled to (i) medical, dental, life, disability and retirement benefits, if any, upon substantially the same terms and conditions generally applicable to all of the Company’s executives; and (ii) four weeks paid vacation plus other
paid time generally available to the other executive officers of the Company. 

5.4.        Reimbursement of Expenses. The Company will reimburse the
Executive for all reasonable travel and other business expenses incurred by the Executive in the performance of the Executive’s duties hereunder, subject to, and in accordance with, any expense reimbursement policies and expense documentation
requirements of the Company that may be in effect from time to time. 

  
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 5.6.        Withholding. Any
and all amounts payable under this Agreement will be subject to any federal, state and local tax and other withholdings or deductions required by applicable law, rule or regulation. 

5.7.        Restricted Stock. When the Term begins, the Company
will execute and deliver to the Executive a restricted stock agreement in substantially the same form as the restricted stock agreement appearing as Exhibit A attached hereto. 

6.        Working Facilities. The Company will provide the Executive with
an office at the Executive’s principal work location or at such other location as agreed to by the Executive and the Company, and other working facilities and secretarial and other assistance suitable to his position and reasonably required for
the performance of his duties hereunder. 
 7.        Incapacity.

 7.1        Right to Terminate. Notwithstanding anything else
to the contrary contained in this Agreement, except as provided by this Section 7 the Company will have no right to terminate the Executive’s employment while the Executive suffers Incapacity (as defined below). If the
Executive suffers Incapacity for a period exceeding six consecutive months then the Company will have the right to terminate the Executive’s employment hereunder 30 days after delivery of written notice of termination. A termination of
employment under this Section 7 will be deemed a termination without “Good Cause” as described in Section 8.4 hereof. 
 7.2        Right to Replace. If the Executive suffers Incapacity for 30 or more consecutive days, the Company will have the right to designate
a person to temporarily perform the Executive’s duties. 

7.3        Rights Prior to Termination. During a period of
Incapacity the Executive will be entitled to his full base salary under Section 5.1 hereof and full benefits under Section 5.3 hereof until employment is terminated as described in Section 7.1. The
Executive will be entitled to reasonable accommodations from the Company so that the Executive is not prevented from performing his duties by illness or injury. 

7.4        Incapacity Defined. For purposes of this
Section 7, the term “Incapacity” means the Executive’s inability to perform his duties hereunder substantially on a full-time basis because of physical or mental illness or physical injury as determined by the
Company’s board of directors, in its reasonable discretion, based upon competent medical evidence. Upon the Company’s written request, the Executive will submit to reasonable medical and other examinations to provide the evidence required
hereunder. 

  
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 8.        Termination of
Employment. 
 8.1        Termination by the Company. The
Company may terminate the Executive’s employment under this Agreement without Good Cause anytime not fewer than 30 days nor more than 45 days after delivering written notice of termination to the Executive. The Company may terminate the
Executive’s employment hereunder for Good Cause anytime by delivery of written notice of termination. Termination will be effective upon the date set forth in the notice of termination. Good Cause will be limited to any of the
following circumstances: 
 (i)        The Executive commits any fraud,
dishonesty, misappropriation or similar act against the Company or others; 

(ii)        The Executive commits any public or private act that the
Company’s board of directors finds, in good faith, to be materially inimical to the best interests of the Company or would tend to discredit, dishonor, embarrass, reflect adversely upon or in any manner injure the reputation of the Company, an
Affiliate or the products or services of the Company or an Affiliate, or subject the Company or an Affiliate to potential material liability; 

(iii)        The Executive is grossly negligent or commits willful misconduct in
the performance of his duties hereunder; or 
 (iv)        The
Executive has been adjudicated guilty by, or enters a plea of guilty or no contest before, a court of competent jurisdiction of illegal activities or found by a court of competent jurisdiction to have engaged in other wrongful conduct and such
illegal activities or wrongful conduct, individually or in the aggregate, has (or could be reasonably expected to have) a material adverse effect on the Company, its prospects, earnings or financial condition. 

8.2        Effect of Termination for Good Cause. If the Executive’s
employment is terminated by the Company for Good Cause— 

(i)        the Executive will be entitled to accrued base salary under
Section 5.1 and accrued vacation pay and other paid time off, each through the date of termination; and 
 (ii)        the Executive will be entitled to reimbursement for expenses accrued through the date of termination in accordance with the provisions of
Section 5.4 hereof. 

  
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 8.3        Effect of Termination
without Good Cause. If the Company terminates the Executive’s employment without Good Cause— 
 (i)        the Executive will be entitled to accrued base salary under Section 5.1 and accrued vacation pay and other time off, each through the date of
termination; 
 (ii)        the Executive will be entitled to
reimbursement for expenses accrued through the date of termination in accordance with the provisions of Section 5.4 hereof; and 
 (iii)        the Executive will be entitled to receive six months’ base salary as described in Section 5.1 which will accrue and be paid in
accordance with the Company’s normal payroll practices as if employment had not been terminated; 

(iv)        if the termination is within two years following a Change of
Control (as defined in Section 8.6 below), then, in lieu of the amount described in clause (iii), the Executive will be entitled to receive all amounts of base salary that would have been payable under Section 5.1
(provided that the Executive will receive not less than 6 months of base salary) through the Term (excluding future automatic renewals) if employment had not been terminated, which amounts will accrue and be paid in accordance with the
Company’s normal payroll practices as if employment had not been terminated. 

8.4        Deemed Termination without Good Cause. The Executive’s
death will be deemed a termination without Good Cause as of the date of death. Termination by reason of the Executive’s Incapacity as set forth in Section 7.1 will be deemed a termination without Good Cause.
The Executive’s termination of employment upon expiration of the Term after the Company delivers written notice of non-renewal as described in Section 5 will be deemed a termination without Good Cause. In addition,
after the occurrence of any of the following events, the Executive, at his sole option, may declare by 30 days’ written notice to the Company that his employment hereunder has been terminated by the Company, and such termination will for all
purposes of this Agreement be deemed a termination by the Company without Good Cause: 

(i)        The Company materially changes the Executive’s reporting
requirements; 
 (ii)        The Company moves the Executive’s
principal place of employment beyond 20 miles from Tampa, Florida; or 

(iii)        The Company breaches any material provision of this Agreement.

 8.5        Termination by Executive. The Executive may
terminate his employment hereunder by delivery of not less than 30 days’ written notice to the Company. 

  
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 8.6        Effect of Termination
by Executive. If the Executive terminates his employment pursuant to Section 8.5 hereof — 

(i)        the Executive will be entitled to accrued base salary under
Section 5.1 and accrued vacation pay and other paid time off, each through the date of termination; and 
 (ii)        the Executive will be entitled to reimbursement for expenses accrued through the date of termination in accordance with the provisions of
Section 5.4 hereof. 
 8.7        Change of Control.
For purposes of Section 8.3 of this Agreement, a “Change of Control” will be deemed to have occurred in the event of— 
 (i)        The acquisition by any person or entity, or group thereof acting in concert, of “beneficial” ownership (as such term is defined in Securities
and Exchange Commission (“SEC”) Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), of securities of the Company which, together with securities previously owned, confer upon such
person, entity or group the voting power, on any matters brought to a vote of shareholders, of 30% or more of the then outstanding shares of capital stock of the Company; 

(ii)        The sale, assignment or transfer of assets of the Company in a
transaction or series of transactions, if the aggregate consideration received or to be received by the Company in connection with such sale, assignment or transfer is greater than 50% of the book value, determined by the Company in accordance with
generally accepted accounting principles, of the Company’s assets determined on a consolidated basis immediately before such transaction or the first of such transactions; 

(iii)        The merger, consolidation, share exchange or reorganization of the
Company as a result of which the holders of all of the shares of capital stock of the Company as a group would receive less than 50% of the voting power of the capital stock or other interests of the surviving or resulting corporation or entity;

 (iv)        The adoption of a plan of liquidation or the approval of
the dissolution of the Company; 
 (v)        A determination by the
Company’s board of directors, in view of then current circumstances or impending events, that a Change of Control has occurred or is imminent, which determination will be made for the specific purpose of triggering the operative
provisions of this Agreement; or 
 (vi)        The Company’s
board of directors is not comprised of a majority of directors who were either directors as of the date of this Agreement (the “Initial Directors”) or whose nomination or election was approved by at least a majority of the
Initial Directors or by a majority of directors whose nomination or election was approved by the Initial Directors. 

  
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 8.8         Limitation Payments
by the Company. 
 (a)        If it will be determined that any
payment, distribution or benefit received or to be received by the Executive from the Company or an Affiliate(“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the
“Excise Tax”). Payments to be made to the Executive shall either be reduced to 299.99% of the Executive’s “base amount” for purposes of Code Section 280G so that no portion of such Payments would be subject to
the Excise Tax. In such event, the payments or benefits included in the Payments shall be reduced or eliminated by applying the following principles, in order: (1) the payment or benefit with the higher ratio of the parachute payment value to
present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (2) the payment or benefit with the later payment date shall be reduced or eliminated
before a payment or benefit with an earlier payment date; and (3) cash payments shall be reduced prior to non-cash benefits; provided that if the foregoing order of reduction or elimination would violate Code Section 409A, then the
reduction shall be made pro rata among the payments or benefits to be received by the Executive (on the basis of the relative present value of the parachute payments). 

(b)        All determinations required to be made under this
Section 8.8, including whether and the limit on payments provided under subsection (a) is required and the assumptions to be utilized in arriving at such determination will be made by the independent tax or accounting selected by
the Company (the “Accounting Firm”), which will provide detailed supporting calculations both to the Company and the Executive within 15 business days after the Executive provides the Company with notice that a Payment has
been or will be made or such earlier time as may be required by the Company. The determination of tax liability made by the Accounting Firm will be subject to review by the Executive’s tax advisors and, if the Executive’s tax
advisors do not agree with the determination reached by the Accounting Firm, then the Accounting Firm and the Executive’s tax advisor will jointly designate a nationally recognized public accounting firm, which will make the
determination. All fees and expenses of the accountants and tax advisors retained by either the Executive or the Company will be borne by the Company. Any determination by a jointly designated public accounting firm will be binding upon the Company
and the Executive. 

  
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 9.        Trade Secrets.

 9.1.        Confidential Information. For the purposes of
this Agreement, “Confidential Information” means information or materials that, in the Company’s view, provide advantage to the Company (or an Affiliate) over others not having such information or materials and includes
(i) customer information, supplier information, sales channel and distributor information, material terms of any contracts, marketing philosophies, strategies, techniques and objectives (including service roll-out dates and volume estimates),
legal and regulatory positions and strategies, advertising and promotional copy, competitive advantages and disadvantages, non-published financial data, network configurations, product or service plans, designs, costs, prices and names, inventions,
discoveries, improvements, technological developments, know-how, software code, business opportunities (including planned or proposed financings, mergers, acquisitions, ventures and partnerships) and methodologies and processes (including the look
and feel of computer screens and reports) for customer assistance, order acceptance and tracking, repairs, and commissions; (ii) information designated in writing or conspicuously marked as “confidential” or “proprietary” or
likewise designated or marked with words of similar import; (iii) information for which the Company has an obligation of confidentiality so long as such obligation is known to the Executive; and (iv) information that by its nature or the
circumstances of its delivery or disclosure a reasonable person would conclude that it is confidential or proprietary. The Executive is specifically aware of the legal obligations of confidentiality afforded to customers of financial institutions,
including obligations to insurance policyholders. 

9.2.        Confidentiality. The Executive will hold Confidential
Information in confidence and trust and limit disclosure of Confidential Information strictly to persons who have a need to know such Confidential Information in connection with the Business. The Executive will not disclose,
use, or permit the use or disclosure of Confidential Information, except in satisfying his obligations under this Agreement. The Executive will use reasonable care to protect Confidential Information from inappropriate disclosure,
whether inadvertent or intentional. The Executive understands that the misappropriation of a trade secret is a criminal offense under state and federal laws. Notwithstanding the foregoing, the Executive may disclose Confidential Information
if such disclosure is required by a court order or an order of a similar judicial or administrative body; provided, however, that the Executive notifies the Company of such requirement immediately and in writing, and cooperates
reasonably with the Company in obtaining a protective or similar order with respect thereto. 

9.3.        Notification of Third Party Disclosure Requests. If the
Executive receives any written or oral third party request, order, instruction or solicitation for the disclosure of Confidential Information not in conformance with this Agreement or if the Executive becomes aware of any attempt by a third
party to improperly gain Confidential Information, the Executive will immediately notify the Company’s general counsel and the Company’s board of directors of such request, order, instruction or solicitation or of such attempt and
fully disclose the details surrounding such request, order, instruction or solicitation or such attempt. 

9.4.        Non-Removal of Records. All documents, files, records, data,
papers, materials, notes, books, correspondence, drawings and other written, graphic or electronic records of the Business and all computer software of the Company which the Executive will prepare or use, or come into contact with, will be
and remain the exclusive property of the Company, in its discretion, and will not be physically, electronically, telephonically or otherwise removed from the Company’s premises without the Company’s prior written consent. 

  
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 9.5.        Return or
Destruction of Confidential Information. Confidential Information gained, received or developed by the Executive or in which the Executive participated in developing will remain the exclusive property of the Company, in its sole discretion. The
Executive will promptly return to the Company or destroy or erase all records, books, documents or any other materials whatsoever (including all copies thereof) containing such Confidential Information in his possession or control upon the
earlier of (i) the receipt of a written request from the Company for return or destruction of Confidential Information or (ii) the termination of the Executive’s employment hereunder. 

9.6.        Trade Secrets of Others. In the course of his employment
hereunder the Executive will not use any information or materials that belong to any former employer or any other person or entity and for which he has a duty of confidentiality; nor will the Executive use or allow the use of any illegally obtained
confidential or secret information or materials. 

10.        Intellectual Property. All Confidential Information,
computer software, video and sound recordings, scripts, creations, inventions, improvements, designs and discoveries conceived, created, invented, authored, developed, produced or discovered by the Executive while employed by the Company, whether
alone or with others, whether during or after regular work hours, whether before or during the term of employment under this Agreement, are and will be the Company’s property exclusively, in its sole discretion. All such items were and will be
produced as “work for hire.” The Executive hereby assigns to the Company all copyrights, trademarks and other rights of authorship or ownership he may have with respect to such items. Moreover, at any time, without additional
consideration, the Executive will execute and deliver any documents or instruments that the Company may request in order to effectively convey and transfer good title and right to, and put the Company in possession of, such items. 

11.        Restrictions on Competition and Solicitation. 

11.1.        Noncompetition. The Executive agrees that during the course
of his employment with the Company and for a period of six months after termination of that employment, the Executive will not, directly or indirectly, as an executive, agent, independent contractor, consultant, partner, joint venturer or otherwise,
within any state in the United States within which the Company or an Affiliate has conducted the Business within the 12 months preceding the date of the termination of the Executive’s employment with the Company, enter into, engage in,
be employed by or consult with (or solicit to enter into, engage in, be employed by or consult with) any business which competes with the Company or an Affiliate by providing products or services of the same nature or type as those provided
by the Company or an Affiliate within the 12 month period preceding the termination of the Executive’s employment with the Company, including (a) participating as an officer, director, stockholder, member, employee, agent,
independent contractor, consultant, representative or partner of, or having any direct or indirect financial interest (including the interest of a creditor) in, any such competitor or (b) assisting any other individual or business entity, of
whatever type or description, in providing any such competing services. The provisions of this section will not apply to the ownership by the Executive of less than 5% of any publicly traded corporation or other business entity solely as an investor
and under circumstances in which the Executive neither provides services nor assists anyone else to provide any services to or on behalf of any such entity. The Executive further agrees that upon a violation of this section of this Agreement, the
period during which the Executive’s covenants in this section apply will be extended by the number of days equal to the period of such violation. 

  
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11.2.        Non-Solicitation/Non-Acceptance. The Executive agrees,
during the course of his employment with the Company and for a period of one year after termination of that employment, the Executive will refrain from and will not, directly or indirectly, as employee, agent, independent contractor, consultant,
partner, joint venturer or otherwise (a) solicit or counsel any third person, partnership, joint venture, company, corporation, association, or other organization that is or was a current or specifically identified prospective customer of the
Company or an Affiliate within the 12 months preceding the termination of the Executive’s employment with the Company and with which the Executive had a substantial relationship within such preceding 12 month period, regardless of such
person’s or entity’s location, to terminate any existing or specifically identified prospective business relationship with the Company or an Affiliate or commence a similar business relationship with any other individual or business
entity; (b) accept, with or without solicitation, any business from any third person, partnership, joint venture, company, corporation, association or other organization that is or was a current or prospective customer of the Company or an
Affiliate with which the Executive had a substantial relationship within the preceding 12 month period, regardless of such person’s or entity’s location; or (c) solicit any of the employees, agents, independent contractors or
consultants of the Company or an Affiliate, regardless of such person’s or entity’s location, to terminate any business relationship with the Company or an Affiliate. The Executive further agrees that upon a violation of this
section of this Agreement, the period during which the Executive’s covenants in this section apply will be extended by the number of days equal to the period of such violation. 

11.3.        No Circumvention. The Executive will not make any attempt,
or use any artifice, scheme or device, including the use of any agent, representative, associate, advisor, relative or business entity, to circumvent the purposes of the restrictive covenants contained in Section 11. 

11.4.        Acknowledgements. The Executive acknowledges that the
foregoing restrictive covenants are reasonable and necessary in light of the circumstances, including the Company’s interest in protecting the Confidential Information to which he has been exposed and the business relationships with the
customers, partners, and others he has helped develop. The Executive further acknowledges that the foregoing restrictive covenants are a material inducement for the Company to enter into this Agreement, and that the covenants are given as an
integral part of this Agreement. 

  
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 11.5.        Counterclaims.
The existence of any claim or cause of action the Executive may have against the Company will not at any time constitute a defense to the enforcement by the Company of the restrictions or rights provided by this Section 11. 

12.        Equitable Remedies. The Executive and the Company agree that
the services to be rendered by the Executive pursuant to this Agreement, and the rights and interests granted and the obligations to be performed by the Executive to the Company pursuant to this Agreement, are of a special, unique, extraordinary and
intellectual character, which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in any action at law, and that a breach by the Executive of any of the terms of this Agreement will cause the
Company great and irreparable injury and damage. The Executive hereby expressly recognizes and agrees that the Company has the right to seek entry of a temporary restraining order, preliminary injunction and permanent injunction, and that such
orders and injunctions may be issued against the Executive, to prevent or address a breach of Sections 9 through 11 of this Agreement. The existence of any claim or cause of action the Executive may have against the Company will not at any
time constitute a defense to the request for such relief. 

13.        Code Section 409A. 

(a)        For purposes hereof, the Executive will be presumed to have
experienced a “Separation from Service” on the date that the Company and the Executive reasonably anticipate that no further services will be performed by the Executive for the Company and its affiliates within the meaning of Code
Section 409A (“409A Affiliates”) or that the level of bona fide services the Executive will perform as an employee of the Company and its 409A Affiliates will permanently decrease to no more than twenty percent (20%) of
the average level of bona fide services performed by the Executive (whether as an employee or independent contractor) for the Company and its 409A Affiliates over the immediately preceding 36-month period (or such lesser period of services). Whether
the Executive has experienced a Separation from Service shall be determined by the Company in good faith and consistent with Code Section 409A. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of military
leave, sick leave or other bona fide reason, the Executive will not be deemed to have experienced a Separation from Service for the first six (6) months of the leave of absence, or if longer, for so long as the Executive’s right to
reemployment is provided either by statute or by contract, including this Agreement; provided that if the leave of absence is due to a medically determinable physical or mental impairment that can be expected to result in death or last for a
continuous period of not less than six (6) months, where such impairment causes the Executive to be unable to perform the duties of his position of employment or any substantially similar position of employment, the leave may be extended by the
Company for up to twenty-nine (29) months without causing a Separation from Service. If the Executive continues to provide services to the Company or its 409A Affiliates following his date of termination of employment, the Executive’s
Separation from Service date may be delayed to the date the Executive ceases to provide services to the extent required by Code Section 409A. 

  
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 (b)        Notwithstanding any other
Section of this Agreement, if the Executive is a “specified employee” as defined in Code Section 409A and the regulations promulgated thereunder at the time of the Executive’s Separation from Service, then any payments due
hereunder that would have been paid to the Executive within six months following such Separation from Service shall be deferred and paid on the first day of the seventh month following the month in which the Executive’s Separation from Service
occurs, to the extent required to avoid an additional tax on such payments under Code Section 409A. All deferred payments shall be paid in a lump sum without interest thereon. For purposes of applying Code Section 409A, each payment due
hereunder shall be treated as a separate payment. 

14.        Compliance with Other Agreements. The Executive represents and
warrants to the Company that he is free to enter this Agreement and that the execution of this Agreement and the performance of the obligations under this Agreement will not, as of the date of this Agreement or with the passage of time, conflict
with, cause a breach of or constitute a default under any agreement to which the Executive is a party or by which he may be bound. 
 15.        Severability. Every provision of this Agreement is intended to be severable. If any provision or portion of a provision is illegal, invalid or
unenforceable, including as to geographic or temporal scope, then the remainder of this Agreement will not be affected. Moreover, any provision or portion of a provision of this Agreement which is determined to be unreasonable, arbitrary or against
public policy, including as to geographic or temporal scope, will be modified by a court or arbitrator as appropriate so that it is not unreasonable, arbitrary or against public policy. 

16.        Rights and Remedies Preserved. Nothing in this Agreement will
limit any right or remedy the Company or the Executive may have under this Agreement or pursuant to law for any breach of this Agreement by the other party. The rights granted to the parties herein are cumulative, and the election of one will not
constitute a waiver of such party’s right to assert all other legal remedies available under the circumstances. 
 17.        Waiver. No failure or delay on the of part either party to this Agreement in the exercise of any right, power or remedy the party may have will
operate as a waiver, nor will any single or partial exercise of any right, power or remedy by either party preclude any other or further exercise of that right, power or remedy or the exercise of any other right, power or remedy. No express waiver
or assent by any party to any breach of or default in any term or condition of this Agreement will constitute a waiver of or assent to any succeeding breach of or default in the same or any other term or conditions of this Agreement. 

18.        Notices. Any notices or deliveries permitted or required by
this Agreement will be deemed given (i) when delivered in person or by messenger, if a receipt is obtained for delivery, (ii) when delivered by Federal Express, United Parcel Service, Airborne Express, U.S. Express Mail or similar
nationally recognized overnight delivery service, if a confirmation of delivery is obtained, or (iii) five days after mailing, if mailed via certified or registered U.S. mail, return receipt requested, provided the notice is delivered or mailed
to the party’s address as set forth below: 

  
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 If to the Company: 

Homeowners Choice, Inc. 
 Suite 100 
 5300 West Cypress Street 

Tampa, FL 33607 
 ATT: General Counsel 
 If to the Executive: 

The Executive’s most recent address on file with the Company. 

The parties may change addresses to which notices are to be delivered by giving notice of the change of address in the manner set forth
above; except, however, that notwithstanding the foregoing provision, notice of a change of address will be deemed made upon actual receipt of the notice by the other party. Notices deemed given or delivered as set forth above on a Saturday, Sunday,
or legal holiday will instead be deemed given or delivered on the next succeeding day which is not a Saturday, Sunday or legal holiday. 
 19.        Successors and Assigns. The rights and obligations of the Company under this Agreement will inure to the benefit of and be binding upon the
successors and assigns of the Company, including the survivor upon any merger, consolidation, share exchange or combination of the Company. The Executive will not have the right to assign this Agreement or to assign, delegate or otherwise transfer
any duty or obligation to be performed by him hereunder. 

20.        Entire Agreement. With respect to its subject matter, this
Agreement contains all the understandings and agreements of the parties and supersedes all previous and all contemporaneous agreements, understandings, discussions and negotiations between the parties, whether written or oral. The parties agree that
no previous drafts of this Agreement will be admissible as evidence (whether in any arbitration or court of law) in any proceeding which involves the interpretation of any provisions of this Agreement. 

21.        Amendments. Except as otherwise provided herein as to terms
that are unreasonable, arbitrary or against public policy, this Agreement will not be modified or amended except by an instrument in writing signed by the parties. 

22.        Governing Law. This Agreement will be governed by and construed
in accordance with the internal laws of the State of Florida without reference to conflicts of law principles. 

  
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 23.        Further
Assurances. Each party hereto will cooperate and will take such further action and will execute and deliver such further documents as may be reasonably requested by the other party in order to carry out the provisions and purposes of this
Agreement. 
 24.        Construction. This Agreement was
negotiated at arm’s-length, with each party having the assistance of independent legal counsel. No court, arbitrator or finder of fact should construe this Agreement more strongly against either party on the basis of which party was responsible
for the Agreement’s preparation. Wherever from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender
will include the other genders. The words “Agreement,” “hereof,” “herein” and “hereunder” and words of similar import referring to this Agreement refer to this Agreement as a whole, including Exhibits, and not
to any particular provision of this Agreement. Whenever the word “include,” “includes” or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.” The various
headings contained in this Agreement are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement. 

25.        Counterparts. This Agreement may be executed in one or more
counterparts, all of which taken together will be deemed one original. 

26.        Affiliate. For the purposes of this Agreement, the capitalized
term “Affiliate” means (i) any association or entity directly or indirectly controlling the Company and (ii) any association or entity controlled by or under common control with the Company. 

27.        Confidential Arbitration. The parties hereto agree that any
dispute concerning or arising out of the provisions of this Agreement, the Executive’s employment or the termination of the Executive’s employment will be resolved by confidential arbitration in accordance with the rules of the American
Arbitration Association. Such confidential arbitration will be held in Tampa, Florida and the decision of the arbitrator or arbitrators will be conclusive and binding on the parties and will be enforceable in any court of competent jurisdiction. In
rendering a decision, the arbitrator will have the discretion to award attorneys’ fees and costs. Notwithstanding the foregoing, if any dispute arises hereunder as to which a party desires to exercise any equitable rights or remedies under this
Agreement, such party may, in its discretion, in lieu of submitting the matter to arbitration, bring an action thereon in any court of competent jurisdiction in Florida, which court may grant any and all relief available in equity or at law for any
and all claims made by such party based on or arising from the provisions of this Agreement. In any such action, the prevailing party will be entitled to reasonable attorneys’ fees and costs as may be awarded by the court. 

  
 14 

 28.        Survival. The
warranties and representations in this Agreement will survive the execution of this Agreement and continue without limitation. The Executive has incurred the obligations set forth in Sections 9 through 11 solely in consideration of the
Company’s execution of this Agreement and such obligations and this Section 28 will survive and continue notwithstanding the termination, rescission or expiration of this Agreement or any provision of this Agreement. 

29.        Exhibits. All exhibits, schedules and other attachments to this
Agreement are hereby incorporated by this reference as integral parts of this Agreement. 

30.        Saturday, Sunday or Legal Holiday. When the last day of a
period during which an act may be performed under this Agreement falls on a Saturday, Sunday, or legal holiday that period will be deemed to end on the next succeeding day which is not a Saturday, Sunday or legal holiday. 

31.        Electronic Signatures. Signed copies of this Agreement,
addenda, attachments and exhibits delivered electronically via Internet (e-mail) or telephone (fax) will legally bind the parties to the same extent as original documents. 

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first set forth above. 

 

			
		 	EXECUTIVE
		
		 	 
		 	Scott R. Wallace
		
		 	Homeowners Choice, Inc.
		
	By:  	 	 
		 	Paresh Patel
		 	As Chief Executive Officer

  
 15 

 EXHIBIT A 
 RESTRICTED STOCK AGREEMENT 

 RESTRICTED STOCK AGREEMENT 

SCOTT R. WALLACE 
 THIS AGREEMENT, effective as of                      is made by and between HOMEOWNERS
CHOICE, INC., a Florida corporation hereinafter referred to as the “Company,” and Scott R. Wallace, an employee or employee to be of the Company, hereinafter referred to as the “Grantee.” 

BACKGROUND STATEMENT 
 This Agreement deals with shares of the Company’s Common Stock granted to the Grantee pursuant to the Homeowners Choice, Inc. 2007 Stock Option and Incentive Plan, as it may be amended from time to
time (the “Plan”), the provisions of which are hereby incorporated by reference and made a part of this Agreement. The Committee, appointed to administer the Plan, has determined that it would be to the advantage and best interest of the
Company and its shareholders to award Restricted Stock to the Grantee as an inducement to continue serving the Company and as an incentive for increased efforts during such service. 

NOW, THEREFORE, in reliance upon the foregoing background statement, the Company and the Grantee agree to the
following terms and conditions. 
 ARTICLE I. 
 DEFINITIONS 
 Unless the context clearly indicates a
different meaning, the following terms, when capitalized, will have the meanings specified below and capitalized terms used in this Agreement without definition will have the meanings ascribed to such terms in the Plan. 

Section 1.01 Board 
 “Board” means the Board of Directors of the Company. 
 Section 1.02 Change in Control

 “Change in Control” means a change in ownership or control of the Company effected through
either of the following transactions: 
 (a) any person or related group of persons (other than
the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which the Board does not recommend such
shareholders to accept; or; 
 (b) there is a change in the composition of the Board over a
period of 36 consecutive months (or fewer) such that a majority of the Board members (rounded up to the nearest whole number) ceases, by reason of one or more proxy contests for the election of Board members, to be comprised of individuals who
either (i) have been Board members continuously since the beginning of such period or (ii) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause
(i) who were still in office at the time such election or nomination was approved by the Board. 

 Section 1.03      Closing Price 

“Closing Price” for any trading day means the last reported sale price per share of the Common Stock on the
NASDAQ Global Select Market or other principal exchange or market upon which the Common Stock trades. 
 Section
1.04      Code 
 “Code” means the Internal Revenue Code of 1986,
as amended. 
 Section 1.05      Committee 

“Committee” means the Compensation Committee of the Board, or another committee of the Board, appointed as
provided in Section 2.b.of the Plan. 
 Section 1.05      Common Stock 

“Common Stock” means the common stock of the Company, no par value per share. 

Section 1.06      Company 

“Company” means Homeowners Choice, Inc., a Florida corporation. 

Section 1.07      Corporate Transaction 

“Corporate Transaction” shall mean any of the following shareholder-approved transactions to which the Company
is a party: 
 (a) a merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state in which the Company is incorporated, form a holding company or effect a similar reorganization as to form whereupon the Plan and all Options are assumed by the successor
entity; 
 (b) the sale, transfer, exchange or other disposition of all or substantially all of
the assets of the Company, in complete liquidation or dissolution of the Company in a transaction not covered by the exceptions to subsection (a), above; or 

(c) any reverse merger in which the Company is the surviving entity but in which securities possessing
more than 50% of the total combined voting power of the Company’s outstanding securities are transferred or issued to a person or persons different from those who held such securities immediately before such merger. 

WALLACE 

  
 -2-

 Section 1.08      Director 

“Director” means a member of the Board. 

Section 1.09      Exchange Act 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and regulations
thereunder. References to any provision of the Exchange Act will be deemed to include successor provisions thereto and regulations thereunder. 

Section 1.10      Grant Date 

“Grant Date” means the effective date of this Agreement. 

Section 1.11      Plan 

“Plan” means Homeowners Choice, Inc. 2007 Stock Option and Incentive Plan, as it may be amended from time to
time. 
 Section 1.12      Restricted Shares 

“Restricted Shares” means the shares of Restricted Stock awarded pursuant to this Agreement and subject to the
Restrictions (i.e. shares of Restricted Stock for which the Restrictions have not lapsed or been waived). 

Section 1.13.      Restricted Stock 

“Restricted Stock” means shares of Common Shares awarded under Section 5 of the Plan. 

Section 1.14      Restrictions. 

“Restrictions” means all the restrictions set forth in Article III of this Agreement, including restrictions
on dispositions, encumbrances and creditor claims and the right of purchase. 
 Section 1.15      Rule
16b-3 
 “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as such rule may be amended from
time to time. 
 WALLACE 

  
 -3-

 Section 1.16.      Secretary 

“Secretary” means the Secretary of the Company. 
 Section 1.17.      Securities Act 
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and regulations thereunder. References to a provision of the Securities Act will be deemed to include successor
provisions thereto and regulations thereunder. 
 Section 1.18.      Subsidiary 

“Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if each of
the corporations other than the last corporation in the unbroken chain then owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

Section 1.19.      Termination of Employment 

“Termination of Employment” means the time when the employee-employer relationship between the Grantee and the
Company is terminated for any reason, with or without cause, including, a termination by resignation, discharge, death, disability or retirement; but excluding (i) terminations where there is a simultaneous reemployment or continuing employment
of the Grantee by the Company, (ii) at the discretion of the Committee, terminations which result in a temporary severance of the employee-employer relationship, and (iii) at the discretion of the Committee, terminations which are followed
by the simultaneous establishment of a consulting relationship by the Company with the former employee. Temporary absences from employment because of illness, vacation or leave of absence and transfers among the Company and its Subsidiaries will not
be considered a Termination of Employment. The Committee, in its absolute discretion, will determine the effect of all matters and questions relating to Termination of Employment, including whether particular leaves of absence constitute
Terminations of Employment. If the Grantee is employed by a Subsidiary, then a Termination of Employment will occur if the Subsidiary ceases to be a Subsidiary and the Grantee does not immediately thereafter become an employee or a consultant to the
Company or another Subsidiary. Notwithstanding any other provision of this Agreement or of the Plan, the Company and any Subsidiary has an absolute and unrestricted right to terminate the Grantee’s employment at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 

Section 1.20.      Vesting Date 

“Vesting Date” means [Employee Start Date Yet to Be Determined]. 

WALLACE 

  
 -4-

 ARTICLE II 
 AWARD OF RESTRICTED SHARES 
 Section 2.01.    Award of
Restricted Stock 
 The Company does hereby award to the Grantee an aggregate of 100,000 shares of
Restricted Stock upon the terms and conditions set forth in this Agreement. 
 Section 2.02.    Consideration to
Company 
 The Restricted Stock is issued solely in exchange for Grantee’s execution of this Agreement
and the Grantee’s promise to render faithful and efficient services to the Company. Nothing in this Agreement or in the Plan will confer upon the Grantee any right to continue in the employ of the Company or any Subsidiary, or will interfere
with or restrict in any way the rights of the Company, which are hereby expressly reserved, to discharge the Grantee at any time for any reason whatsoever, with or without cause. 

ARTICLE III 

RESTRICTIONS 

Section 3.01.    General Restrictions 

The Restricted Shares and any interest in the Plan or this Agreement may not be sold, transferred, assigned, conveyed,
pledged, mortgaged, hypothecated or otherwise disposed of or encumbered, other than by will or the laws of descent and distribution, whether voluntary or involuntary, by operation of law or by or pursuant to judgment, levy, attachment, garnishment
or any other legal or equitable proceedings (including bankruptcy) and will not be subject to claims of the Grantee’s creditors. Any attempted disposition or encumbrance of the Restricted Shares will be null and void and of no effect. The
Company may issue stop-transfer orders covering the Restricted Shares. 
 Section 3.02.    Stock Dividends and
Splits. 
 Shares of Common Stock or other securities distributed in connection with a dividend on Common
Stock or stock split will be deemed Restricted Shares subject to the Restrictions of this Article III to the same extent as the Restricted Shares with respect to which such shares of Common Stock or other securities were distributed. 

Section 3.03.    Purchase of Restricted Shares 

Immediately upon the Grantee’s Termination of Employment, the Company will repurchase from the Grantee and the
Grantee will sell to the Company all Restricted Shares (and deemed Restricted Shares) at price equal to $00.001 per Restricted Share. The price for other securities will be an equivalent measure to the foregoing price as determined by the Committee,
in good faith. 
 WALLACE 

  
 -5-

 ARTICLE IV. 
 PERIOD OF RESTRICTIONS 
 Section 4.01.    Lapse of Restrictions

 (a) Subject to subsection (d) of this Section and Section 4.02, with respect 50,000 shares of
the Restricted Stock issued hereunder the Restrictions will lapse in annual increments of 10,000 shares beginning on the first anniversary of the Vesting Date. 

(b) Subject to subsection (d) of this Section and Section 4.02, with respect to the remaining 50,000 shares of
the Restricted Stock issued hereunder the Restrictions will lapse — 
 (i) as to 10,000 shares, one year
after the Closing Price equals or exceeds $12 per share for 20 consecutive trading days; 
 (ii) as to 10,000
shares, one year after the Closing Price equals or exceeds $14 per share for 20 consecutive trading days; 

(iii) as to 10,000 shares, one year after the Closing Price equals or exceeds $16 per share for 20 consecutive trading
days; 
 (iv) as to 10,000 shares, one year after the Closing Price equals or exceeds $18 per share for 20
consecutive trading days; 
 (v) as to 10,000 shares one year after the Closing Price equals or exceeds $20 per
share for 20 consecutive trading days; 
 (c) The Restrictions with respect to shares and other securities
deemed to be Restricted Shares will lapse in a manner consistent with the foregoing as the Committee may determine in good faith. In addition, the Committee will make good faith adjustments in the event a reverse stock split or combination of
shares. 
 (d) No Restrictions will lapse after Termination of Employment or after six years have elapsed from
the Vesting Date. 
 Section 4.02.     Acceleration of Lapse 

Notwithstanding the provisions of Section 4.01, the Restrictions will lapse in their entirety upon the occurrence
of a Change of Control and immediately prior to a Corporate Transaction. However, in the case of a Corporate Transaction the restrictions will not lapse to the extent the Restricted Shares and the associated rights are, in connection with the
Corporate Transaction, to be replaced with a comparable right with respect to shares of the capital stock of the successor or survivor corporation (or parent thereof). 
 WALLACE 

  
 -6-

 ARTICLE V. 
 SHAREHOLDER RIGHTS 
 Section 5.01.    Generally 

Except as otherwise provided in this Agreement, the Grantee will have all of the rights of a shareholder in connection
with the Restricted Shares, including the right to vote Restricted Shares and the right to receive dividends thereon. 

Section 5.02.    Certificates 
 (a) The Company will issue certificates representing the Restricted Shares registered in Grantee’s name. Certificates representing Restricted Shares or any securities deemed to be restricted
securities will not be delivered to the Grantee but will be delivered to the Company to be held by the Company for the benefit of the Grantee. The Grantee will deliver to the Company a stock power relating to the Restricted Shares and any deemed
restricted Shares endorsed in blank. 
 (b) Upon the lapse of the Restrictions in accordance with the terms of
Article IV or the waiver of the Restrictions by the Company and provided the Grantee has paid applicable withholding taxes as set forth in Section 6.03, the Company will deliver to the Grantee certificates representing the shares of Restricted
Stock or other securities for which the Restrictions have lapsed or been waived, as the case may be. 
 (c)
Certificates representing Restricted Shares and securities deemed to be Restricted Shares will bear an appropriate legend referring to the Restrictions as well as any other legends as the Company may require to ensure compliance with the Securities
Act and state and other securities laws. 
 ARTICLE VI. 

OTHER PROVISIONS 

Section 6.01.    Administration 

This Agreement is subject to the Plan, the provisions of which are incorporated herein by reference. In the event of any
conflict between the provisions of the Plan and of this Agreement, the provisions of the Plan will control. The Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in good faith will be final and binding upon the Grantee, the
Company and all other interested persons. No member of the Committee will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Restricted Shares. In its absolute discretion, the
Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or
rules issued thereunder, are required to be determined in the sole discretion of the Committee. 
 WALLACE 

  
 -7-

 Section 6.02.    Notices 

Any notice to be given under the terms of this Agreement to the Company will be addressed to the Company in care of its
secretary, and any notice to be given to the Grantee will be addressed to him at the address given beneath his signature hereto. By a notice given pursuant to this Section 6.02, either party may hereafter designate a different address for
notices to be given to the party. Any notice which is required to be given to the Grantee will, if the Grantee is then deceased, be given to the Grantee’s personal representative if such representative has previously informed the Company of
such status and address by written notice under this Section 6.02. Any notice will be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch
post office regularly maintained by the United States Postal Service. 
 Section 6.03.    Taxes and Withholding

 The Grantee agrees to pay to the Company (or applicable Subsidiary) and consents to the withholding of
salary by the Company (or applicable Subsidiary) of all amounts which, under federal, state or local tax law, is required to be withheld in connection with the award of the Restricted Shares, including the lapse of the Restrictions and risk of
forfeiture. With the consent of the Committee, Shares owned by the Grantee, duly endorsed for transfer, with a fair market value on the date of delivery equal to the sums required to be withheld, may be used to make all or part of such payment.

 Section 6.05.    Construction 

This Agreement will be construed without regard to which party was responsible for its preparation. Wherever from the
context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words
“Agreement,” “hereof,” “herein” and “hereunder” and words of similar import referring to this Agreement refer to this contract as a whole, including documents incorporated by reference, and not to any
particular provision of this contract. Whenever the word “include,” “includes” or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.” The various headings
contained in this Agreement are inserted solely for convenience of reference and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement. 
 Section 6.06.    Conformity to Securities Laws 
 The Grantee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder, including, without limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to the contrary, the Plan will be administered, and the
Restricted Shares issued only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement will be deemed amended to the extent necessary to conform to such laws, rules
and regulations. The Grantee agrees to execute and deliver to the Company such documents as the Committee determines to be necessary or desirable to ensure compliance with the Securities Act and any other federal or state securities laws or
regulations. The Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to effect compliance with the Securities Act and any other federal or state securities laws or regulations. 

WALLACE 

  
 -8-

 Section 6.07.    Amendments 

The Committee (or the Board as the case may be) may amend, alter, suspend, discontinue, or terminate the Plan or this
Agreement; provided however, that without the Grantee’s consent no amendment, alteration, suspension, discontinuation, or termination of the Plan or this Agreement may materially and adversely affect the Grantee’s rights under this
Agreement. No amendment will be effective unless set forth in a writing agreed to and delivered by the Committee. 

Section 6.08    Governing Law 
 This Agreement will be administered, interpreted and enforced under the internal laws of the State of Florida without regard to its principles of conflicts of laws. 

Section 6.09.    Entire Agreement 

With respect to its subject matter, this Agreement supersedes all prior discussions and agreements between the Company
(and its Subsidiaries) and the Grantee including previous employment offer letters and oral agreements, and, together with any attachments, exhibits and documents incorporated by reference, contains the sole and entire Agreement among them.
Notwithstanding the foregoing, unless specifically stated, this Agreement does not supersede agreements dealing with previously awarded of Restricted Shares. 
 WALLACE 

  
 -9-

 IN WITNESS WHEREOF, this Agreement has been executed and delivered
by the parties hereto. 
  

			
	 HOMEOWNERS CHOICE, INC.

		
	By:	 	 
		 	 Paresh Patel
 Chief
Executive Officer

  

	
	
	  
	 Scott R. Wallace
  

11036 Turnbridge Dr.
  
 Jacksonville, Florida 32256

 WALLACE 

  
 -10-Assumption Agreement

 Exhibit 10.25 
 ASSUMPTION AGREEMENT 
 By and Between 

Homeowners Choice Property & Casualty Insurance Company, Inc. 

and 

HomeWise Insurance Company 
 Dated as of November 2, 2011 

 TABLE OF CONTENTS 

 

							
	 Article 1 DEFINITIONS
	  	 	1	  
	 Section 1.1
	 	Defined Terms	  	 	1	  
	 Section 1.2
	 	Interpretation	  	 	5	  
		
	 Article 2 THE ASSUMPTION TRANSACTION
	  	 	5	  
	 Section 2.1
	 	Assumed Policies	  	 	5	  
	 Section 2.2
	 	Assumption Certificates	  	 	6	  
	 Section 2.3
	 	Representations and Warranties of the Company	  	 	6	  
	 Section 2.4
	 	Representations and Warranties of HCPCI	  	 	7	  
	 Section 2.5
	 	Conditions Precedent to Effectiveness of Agreement	  	 	8	  
	 Section 2.6
	 	Transfer of Unearned Premium Reserve	  	 	8	  
	 Section 2.7
	 	Non-Assumption of Liabilities	  	 	9	  
		
	 Article 3 PAYMENTS AND OFFSET
	  	 	9	  
	 Section 3.1
	 	Premium Payments	  	 	9	  
	 Section 3.2
	 	Offset Rights	  	 	12	  
	 Section 3.3
	 	Premium Payments for Assumed Policies	  	 	12	  
	 Section 3.4
	 	Final Settlement, Reports and Remittances	  	 	12	  
		
	 Article 4 CLAIMS ADMINISTRATION
	  	 	14	  
		
	 Article 5 REGULATORY MATTERS
	  	 	15	  
		
	 Article 6 DUTY OF COOPERATION
	  	 	15	  
		
	 Article 7 RESOLUTION OF DISPUTES
	  	 	15	  
		
	 Article 8 REPLACEMENT POLICIES
	  	 	16	  
	 Section 8.1
	 	Right to Offer Replacement Policies and Renewals	  	 	16	  
	 Section 8.2
	 	Communications with Producers and Policyholders	  	 	17	  
	 Section 8.3
	 	Non-Solicitation With Respect to the Assumed Policies	  	 	17	  
		
	 Article 9 REGULATORY APPROVALS
	  	 	18	  
		
	 Article 10 TERMINATION
	  	 	18	  
		
	 Article 11 INDEMNIFICATION
	  	 	19	  
	 Section 11.1
	 	Indemnification Obligations of the Company	  	 	19	  
	 Section 11.2
	 	Indemnification Obligations of HCPCI	  	 	19	  
		
	 Article 12 MISCELLANEOUS
	  	 	19	  
	 Section 12.1
	 	Notices	  	 	19	  
	 Section 12.2
	 	Assignment; Parties in Interest	  	 	21	  
	 Section 12.3
	 	Waivers and Amendments; Preservation of Remedies	  	 	21	  
	 Section 12.4
	 	Governing Law; Venue	  	 	21	  
	 Section 12.5
	 	Counterparts	  	 	21	  
	 Section 12.6
	 	Entire Agreement; Merger	  	 	22	  
	 Section 12.7
	 	Exhibits and Schedules	  	 	22	  
	 Section 12.8
	 	Headings	  	 	22	  
	 Section 12.9
	 	Severability	  	 	22	  
	 Section 12.10
	 	Expenses	  	 	22	  
	 Section 12.11
	 	Further Assurances	  	 	22	  
	 Section 12.12
	 	Currency	  	 	23	  

 ASSUMPTION AGREEMENT 

This ASSUMPTION AGREEMENT (this “Agreement”), dated as of November 2, 2011, is entered into by and
between, HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY, INC., a Florida domiciled insurance company (“HCPCI”), and HOMEWISE INSURANCE COMPANY, a Florida domiciled insurance company (the “Company”) (each, a
“Party”; together, the “Parties”). 
 RECITALS: 

WHEREAS, the Parties wish to consummate a transfer of Company’s Florida business to HCPCI; and 

WHEREAS, as more particularly set forth herein, the Company and HCPCI wish to enter into an assumption arrangement
pursuant to which HCPCI will assume all losses occurring on or after the Assumption Effective Date (as defined below) with respect to all of the homeowners’ multi-peril and dwelling fire insurance contracts, policies, certificates, binders,
slips, covers or other agreements of insurance, including all supplements, riders and endorsements issued or written in connection therewith and extensions thereto, issued, renewed, or written by or on behalf of the Company (including any policies
may have been previously assumed by the Company from another insurer or acquired by merger) covering homes located in Florida that are in-force as of the Assumption Effective Date, including also such policies that are renewed or processed for
renewal by the Company after the Assumption Effective Date (the “Assumed Policies”); 

WHEREAS, the Parties intend for HCPCI to assume no duties, liabilities or obligations of any kind whatsoever
attributed to or arising out of claims occurring or arising from events occurring prior to the Assumption Effective Date under the Assumed Policies; and 
 WHEREAS, in consideration for, among other things, the assignment of the Company’s right to refunds for return commissions and other administration fees which may become due from agents,
producers, brokers or other administrative entities, HCPCI has agreed to pay a Ceding Commission to the Company, as set forth in Sections 2.6 and 3.1; 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and covenants set forth herein, and in reliance upon the representations, warranties, conditions and covenants
contained herein, and intending to be legally bound hereby and thereby, the Parties hereto do hereby agree as follows: 

ARTICLE 1  
 DEFINITIONS 
 Section
1.1         Defined Terms. 
 The following terms shall have
the respective meanings specified below throughout this Agreement. 
 “Agreement” has the meaning set
forth in the first paragraph. 

 “Affiliate” (and, with a correlative meaning,
“Affiliated”) means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person. As used in this
definition, “control” (including, with correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or
policies (whether through ownership of securities or partnership or other ownership interests, by contract, as trustee or executor, or otherwise). 
 “Applicable Law” means any order, law, statute, regulation, rule, pronouncement, ordinance, bulletin, writ, injunction, directive, judgment, decree, principle of common law, constitution or
treaty enacted, promulgated, issued, enforced or entered by any Governmental Entity applicable to the parties hereto, or any of their respective businesses, properties or assets. 

“Assumed Policies” has the meaning set forth in the recitals. 

“Assumption Certificate” shall mean the certificate to be issued by HCPCI to the policyholder of any Assumed
Policy, which shall be in the form agreed to by the Parties and approved by the Florida Office of Insurance Regulation in accordance with the terms of the Consent Order approving this Agreement. 

“Assumption Effective Date” means 12:01 a.m. Eastern Time on November 1, 2011. 

“Ceding Commission” has the meaning set forth in Section 2.6. 

“Claim” and “Claims” means any and all claims, requests, demands or notices made by or on behalf of
policyholders, beneficiaries or third party claimants for indemnification or payment for amounts due or alleged to be due under the Assumed Policies. 
 “Company” has the meaning set forth in the first paragraph. 
 “Confidential Information” means any confidential or proprietary information related to the Assumed Policies, including written or electronically stored confidential and proprietary data which
identifies past or current customers of the Company or its Affiliates, written information about business practices, product design, pricing, research, or development, computer systems and written business plans of the Company or its Affiliates, and
confidential and proprietary computer data processing tapes, record formats, source and object codes, in each case related to the Assumed Policies. 
 “Governmental Entity” means any federal, state, local, foreign, international or multinational entity or authority exercising executive, legislative, judicial, regulatory, administrative or
taxing functions of or pertaining to government. 
 “HCPCI” has the meaning set forth in the first
paragraph. 
 “Initial UPR Transfer Amount” has the meaning set forth in Section 3.1(a)(i).

  
 - 2 -

 “Inuring Reinsurance” means all reinsurance agreements, treaties
and contracts, including any renewals or extensions thereof, to the extent such reinsurance agreements, treaties and contracts provide reinsurance coverage for the Assumed Policies. 

“Outside Accountants” has the meaning set forth in Section 3.1(a)(vi). 

“Party” and “Parties” have the meanings set forth in the first paragraph. 

“Person” shall mean any individual, corporation, partnership, firm, joint venture, association, joint-stock
company, limited liability company, trust, estate, unincorporated organization, Governmental Entity or other entity. 
 “Post-Assumption Losses” shall mean liabilities and obligations for Claims directly arising from events caused by a peril covered by the Assumed Policies occurring on or after the Assumption
Effective Date and all loss adjustment expenses and defense costs attributed to such Claims. “Post-Assumption Losses” shall not include any Pre-Assumption Effective Date Liabilities. “Post-Assumption Losses” shall not include any
liabilities or obligations incurred by or on behalf of the Company as a result of any grossly negligent, willful, fraudulent or criminal act or violation of the Florida Insurance Code by the Company, any of its officers, managers, employees, or
agents or any of its Affiliates or any of the officers, directors, employees or agents of its Affiliates, regardless of when such liabilities or obligations are incurred. “Post-Assumption Losses” shall not include (i) any Claims
arising from, relating or connected to or in any way associated with an event caused by a peril covered by the Assumed Policies and occurring or beginning to occur before the Assumption Effective Date; (ii) any loss adjustment expenses or
defense costs attributable to such a Claim described in (i), including expenses related to the investigation, appraisal, settlement, litigation, defense or appeal of such a Claim; (iii) liabilities for consequential, exemplary, punitive or
similar extra contractual damages related or connected to or in any way associated with such a Claim described in (i); (iv) liabilities for statutory or regulatory fines or penalties related or connected to or in any way associated with such a
Claim described in (i); or (v) any claim alleging bad faith or unfair or deceptive insurance practices or any claim that could be brought pursuant to Sections 624.155 or 626.9541, Florida Statutes, related or connected to or in any way
associated with such a Claim described in (i). “Post-Assumption Losses” shall be gross of any Inuring Reinsurance which may otherwise be available to or for the benefit of the Company with regard to the Assumed Policies, except to the
extent (if any) the Company has fully paid the reinsurance premiums for such Inuring Reinsurance as of the Assumption Effective Date. HCPCI shall in no event be liable for or obligated to pay any premiums attributed to any Inuring Reinsurance which
may otherwise provide coverage for the Assumed Policies post-Assumption Effective Date, as such obligations and liabilities for Inuring Reinsurance premiums are to remain the exclusive obligation and liability of the Company under the terms of this
Agreement. 

  
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 “Pre-Assumption Effective Date Liabilities” means claims, losses,
expenses, costs or liabilities of any kind whatsoever under the Assumed Policies occurring prior to the Assumption Effective Date or in any way related or connected to or associated with an event occurring before the Assumption Effective Date,
including any claims, losses, expenses, costs or liabilities (including incurred but not reported claims, losses, costs or expenses) arising out of or attributed to losses or claims occurring prior to the Assumption Effective Date or in any way
related or connected to or associated with an accident or event occurring before the Assumption Effective Date, regardless of whether the accident or event is known or unknown before the Assumption Effective Date. This term also includes any and all
duties, obligations, covenants, costs, expenses or liabilities of any kind whatsoever arising from or attributed to the Company or its business operations, whether incurred or performed by the Company directly or indirectly through its Affiliates or
other Persons (excluding HCPCI and its Affiliates from the term “Persons” for this purpose). This term shall include (i) any Claims arising from, relating or connected to or in any way associated with an accident or event caused by a
peril covered by the Assumed Policies and occurring or beginning to occur before the Assumption Effective Date, regardless of whether such accident or event is known or unknown before the Assumption Effective Date; (ii) any loss adjustment
expenses or defense costs attributable to such a Claim described in (i), including expenses related to the investigation, appraisal, settlement, litigation, defense or appeal of such a Claim; (iii) liabilities for consequential, exemplary,
punitive or similar extra contractual damages related or connected to or in any way associated with such a Claim described in (i); (iv) liabilities for statutory or regulatory fines or penalties related or connected to or in any way associated
with such a Claim described in (i); (v) any claim alleging bad faith or unfair or deceptive insurance practices or any claim that could be brought pursuant to Sections 624.155 or 626.9541, Florida Statutes, related or connected to or in any way
associated with such a Claim described in (i). The Parties expressly intend for HCPCI to assume only those obligations and liabilities for the Assumed Policies arising on or after the Assumption Effective Date and the obligations associated with
Unearned Premium Reserves (as each of these terms is defined herein). 
 “Preliminary UPR Transfer
Amount” has the meaning set forth in Section 3.1(a)(ii). 
 “Premium(s)” means all gross
written premiums, pre-paid premiums, considerations, deposits, premium adjustments, fees and similar amounts, less cancellation and return premiums, with regard to the Assumed Policies following the Assumption Effective Date. 

“Replacement Policy” means a policy offered or issued by HCPCI on its own policy forms, to take effect upon the
expiration or cancellation of an Assumed Policy. 
 “Return Premium Ceding Amount” has the meaning set
forth in Section 3.1(a)(i). 
 “Unearned Premium Reserves” means the gross liability as of the
Assumption Effective Date for the amount of collected Premium and receivables for uncollected Premium corresponding to the unexpired portion of all Assumed Policies, calculated using the daily pro rata method, prepared in accordance with statutory
accounting practices, and subject to any applicable Premium, commission or brokerage adjustments prior to or after the Assumption Effective Date pursuant to the underlying terms and conditions of the Assumed Policies or agent or broker contracts
related thereto, which adjustments shall be accounted for and settled as between the Parties pursuant to Section 3.1(a) and Section 3.4. 
 “Unresolved Changes” has the meaning set forth in Section 3.1(a)(vi). 
 “UPR Transfer Amount” means the final amount determined pursuant to the procedures set forth in Section 3.1(a) by applying the UPR Adjustment (if any) to the Preliminary UPR Transfer
Amount. 

  
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 “UPR True Up Report” has the meaning set forth in
Section 3.1(a)(ii). 
 “UPR Adjustment” has the meaning set forth in Section 3.1(a)(ix).

 Section 1.2         Interpretation. 

(a)        The Parties hereto have participated jointly in the negotiation and
drafting of this Agreement. Consequently, in the event that an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties hereto, and no presumption or burden of proof will arise
favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement. 

(b)        When a reference is made in this Agreement to a section or article,
such reference will be to a section or article of this Agreement unless otherwise clearly indicated to the contrary. Whenever the words “include”, “includes” or “including” are used in this
Agreement they will be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “herewith” and words of similar import will, unless otherwise
stated, be construed to refer to this Agreement (including the schedules and exhibits) as a whole and not to any particular provision of this Agreement. The meaning assigned to each term used in this Agreement will be equally applicable to both the
singular and the plural forms of such term, and words denoting any gender will include all genders. Where a word or phrase is defined herein, each of its other grammatical forms will have a corresponding meaning. 

(c)        The schedules and exhibits, if any, attached hereto are incorporated
into this Agreement and will be deemed a part hereof as if set forth herein in full. In the event of any conflict between the provisions of this Agreement and any schedule or exhibit, the provisions of this Agreement will control. Capitalized terms
used in the schedules have the meanings assigned to them in this Agreement. The listing of an item in one section of the schedules shall be deemed a listing in each section of the schedules, notwithstanding the lack of a specific cross-reference,
and to apply to each other representation and warranty to which its relevance is reasonably apparent on its face. The section references referred to in the schedules are to sections of this Agreement, unless otherwise expressly indicated.

 ARTICLE 2 
 THE ASSUMPTION TRANSACTION 
 Section
2.1         Assumed Policies. 

(a)        Effective on and as of the Assumption Effective Date, (i) the
Company shall transfer and absolutely assign to HCPCI, and HCPCI shall take assignment of, all of the contractual and other rights of the Company under and with respect to the Assumed Policies, including all Premium receivables, and (ii) HCPCI
shall assume all contractual obligations under the Assumed Policies corresponding to the Unearned Premium Reserves, including Post-Assumption Losses; provided, however, that HCPCI shall have no duties, responsibilities, or obligations with regard
to, any Pre-Assumption Effective Date Liabilities and the Company will retain contract rights with respect to the Pre-Assumption Effective Date Liabilities. 

  
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 (b)        HCPCI agrees to
substitute itself in the Company’s place with respect to the Assumed Policies as if it had issued each Assumed Policy on the Assumption Effective Date, such that HCPCI shall perform all contractual promises made by the Company and shall be
entitled to exercise all of the Company’s rights, in each case arising on or after the Assumption Effective Date pursuant to the terms and conditions of the Assumed Policies, but excluding any Pre-Assumption Effective Date Liabilities, which
shall remain the exclusive obligation of the Company. HCPCI hereby covenants and agrees that it may be sued for its actions after the Assumption Effective Date, in its own name, by a policyholder for Post-Assumption Losses under the Assumed
Policies, except for any Pre-Assumption Effective Date Liabilities, for which HCPCI shall have no liability or obligation of any kind whatsoever. 
 (c)        It is the intent of the Parties to this Agreement to accomplish, as of the Assumption Effective Date, a complete transfer of all of the Company’s
contractual rights, obligations, liabilities and risks with respect to each of the Assumed Policies (provided that the Company shall retain any and all Pre-Assumption Effective Date Liabilities and any rights associated therewith) with the result
that HCPCI, as transferee, in all respects and conditions, shall succeed the Company as the insurer under the terms and provisions of each of the Assumed Policies as though HCPCI had issued such Assumed Policies on the Assumption Effective Date, and
to transfer to HCPCI, as administrator, full and complete responsibility for servicing and administering Claims for Post-Assumption Losses under the Assumed Policies in accordance with the terms and conditions of this Agreement (excluding
Pre-Assumption Effective Date Liabilities). 
 (d)        On and after
the Assumption Effective Date, no further rights or liabilities shall accrue to the Company under Assumed Policies other than those associated with Pre-Assumption Effective Date Liabilities. 

Section 2.2         Assumption Certificates. 

Promptly after the Assumption Effective Date, HCPCI shall issue to each of the policyholders of the Assumed Policies an
Assumption Certificate. 
 Section 2.3         Representations and Warranties of
the Company. 
 The Company hereby represents and warrants to HCPCI as of the date of execution of this
Agreement the following: 
 (a)        The Company is an insurance
company duly authorized and validly existing under the laws of the State of Florida. 

(b)        The Company has all requisite power and authority to execute and
deliver this Agreement and to perform all of its respective obligations hereunder and thereunder. The execution, delivery and performance of this Agreement by the Company has been duly and validly authorized by all necessary action of the Company,
and no further action, consent or approval on the part of the Company is required for the valid performance of its obligations under this Agreement, except as otherwise identified in Schedule 2.3(b) attached hereto. 

  
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 (c)        The execution, delivery
and performance of this Agreement by the Company does not require the amendment of any contracts, agreements or other instruments of the Company or its Affiliates, and no third party consents or authorizations are required for the valid performance
of its obligations under, or to otherwise effectuate the terms of, this Agreement, except as otherwise identified in Schedule 2.3(c) attached hereto. 
 (d)        There is no action, suit, investigation or proceeding pending against, or affecting the properties of the Company before any court or arbitrator or any
Governmental Entity, agency or official which challenges or seeks to prevent the consummation of the transactions contemplated hereby. 
 EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS SECTION 2.3, NEITHER THE COMPANY, ANY OF ITS AFFILIATES NOR ANY OTHER PERSON MAKES ANY REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL,
STATUTORY, EXPRESS OR IMPLIED, WITH RESPECT TO THE COMPANY, ANY OF ITS AFFILIATES OR THEIR RESPECTIVE BUSINESS, OPERATIONS, ASSETS, ASSUMED POLICIES, LIABILITIES, CONDITION (FINANCIAL OR OTHERWISE) OR PROSPECTS. HCPCI HEREBY EXPRESSLY WAIVES ANY
CLAIMS AND CAUSES OF ACTION AND ANY OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE IN EACH CASE RELATING TO THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY INFORMATION, DATA OR OTHER MATERIALS (WRITTEN
OR ORAL) HERETOFORE FURNISHED TO HCPCI AND ITS REPRESENTATIVES BY OR ON BEHALF OF THE COMPANY OR ANY OF ITS AFFILIATES. WITHOUT LIMITING THE FOREGOING, NEITHER THE COMPANY, ANY OF ITS AFFILIATES NOR ANY OTHER PERSON IS MAKING ANY REPRESENTATION OR
WARRANTY TO HCPCI WITH RESPECT TO ANY FINANCIAL PROJECTION OR FORECAST RELATING TO THE BUSINESS, OPERATIONS, ASSETS, LIABILITIES, ASSUMED POLICIES, CONDITION (FINANCIAL OR OTHERWISE) OR PROSPECTS OF THE COMPANY. 

Section 2.4         Representations and Warranties of HCPCI. 

HCPCI hereby represents and warrants to the Company as of the date of execution of this Agreement the following:

 (a)        HCPCI is an insurance company duly authorized and validly
existing under the laws of the State of Florida and has all requisite power and authority to sell, own, lease and operate its respective assets and business and to carry on its respective businesses as now being conducted. 

(b)        HCPCI has all requisite power and authority to execute and deliver
this Agreement and to perform all of its respective obligations hereunder. The execution, delivery and performance of this Agreement by HCPCI has been duly and validly authorized by all necessary action of HCPCI, and no further action, consent or
approval on the part of HCPCI is required for the valid performance of its obligations under this Agreement. 

  
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 (c)        The execution, delivery
and performance of this Agreement by HCPCI does not require the amendment of any contracts, agreements or other instruments of HCPCI or its Affiliates, and no third party consents or authorizations are required for the valid performance of its
obligations under, or to otherwise effectuate the terms of, this Agreement. 

(d)        There is no action, suit, investigation or proceeding pending
against, or affecting the properties of HCPCI before any court or arbitrator or any Governmental Entity, agency or official which challenges or seeks to prevent the consummation of the transactions contemplated hereby. 

Section 2.5        Conditions Precedent to Effectiveness of Agreement. 

In order for the transactions contemplated by this Agreement to become effective, the following conditions shall have
been satisfied on or before the date of execution of this Agreement: 

(a)        The Company shall provide to HCPCI fully executed and duly authorized
written consents or authorizations identified in Schedule 2.3(b) that are required to effectuate the provisions of this Agreement, in such forms as are acceptable to HCPCI in its sole discretion; 

(b)        The Company shall provide to HCPCI fully executed amendments to any
and all contracts, agreements or other instruments of the Company or its Affiliates, or written consents or authorizations from any third parties (including confidentiality agreements), which HCPCI determines in its sole discretion are required to
effectuate the provisions of this Agreement, in such forms as are acceptable to HCPCI in its sole discretion, including amendments to any contracts, agreements, instruments, or consents and authorizations identified in Schedule 2.3(c); 

(c)        The Florida Office of Insurance Regulation shall execute and issue a
Consent Order, which has been duly executed by the Parties, approving this Agreement and the transactions contemplated herein, and expressly finding, among other things, that this Agreement is supported by “fair consideration” and is not
intended to hinder, delay, or defraud either then-existing or future creditors of the Company, as contemplated by Chapter 631, Florida Statutes; 
 (d)        The Company shall pay HCPCI the first installment of the Initial UPR Transfer Amount into an account specified by HCPCI; and 

(e)        Any other deliveries contemplated by the other provisions hereof.

 Section 2.6        Transfer of Unearned Premium Reserve. 

It is the intent of the Parties that the Company shall transfer and pay to HCPCI an amount made up of cash and Premium
receivables equal to one hundred percent (100%) of the amount of the Unearned Premium Reserves net of a ceding commission (the “Ceding Commission”) equal to ten percent (10%) of the Unearned Premium Reserves, all subject to an
initial true-up, adjustment and settlement approximately forty-five (45) days after the Assumption Effective Date pursuant to the provisions of Section 3.1(a), offsets and a final true-up and settlement on April 30, 2012 pursuant to
Section 3.4. HCPCI shall have no obligation or liability to pay any of the Company’s premiums, assessments, costs or other liabilities whatsoever arising from or attributed to premium taxes, residual market or guaranty fund assessments
(including assessments by the Florida Insurance Guaranty Association, Florida Hurricane Catastrophe Fund, and Citizens Property Insurance Corporation), reimbursement premiums arising under Company’s contracts with the Florida Hurricane
Catastrophe Fund, or premiums arising under Company’s contracts with other reinsurers. The Parties agree that the Unearned Premium Reserves shall only be reduced by the Ceding Commission, and the premiums, assessments, costs or other
liabilities identified in the immediately preceding sentence shall remain the exclusive obligation of the Company to pay or satisfy out of the Ceding Commission or such other assets or funds of the Company. The Unearned Premium Reserves (including
the right to receive return commissions from agents, producers, brokers and other administrative entities) shall be the sole and exclusive property of HCPCI on and after the Assumption Effective Date. 

  
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 Section 2.7        Non-Assumption of
Liabilities. 
 Except as otherwise expressly stated in this Agreement, neither HCPCI nor any of its
Affiliates will, directly or indirectly, assume any liability or obligation of the Company or its Affiliates of any kind, character or description, regardless of when incurred, discovered or reported. 

ARTICLE 3 

PAYMENTS AND OFFSET 
 Section 3.1        Premium Payments. 
 (a)        Unearned Premium Reserves; True Up Process. 
  (i)        The Company shall remit to HCPCI an amount equal to Forty-Eight Million Dollars ($48,000,000.00) (the “Initial UPR Transfer Amount”) in
two installments: the first installment an amount equal to Twenty-Two Million Dollars ($22,000,000.00) by wire transfer of immediately available funds upon execution of this Agreement and the second installment an amount equal to Twenty-Six Million
Dollars ($26,000,000.00) by wire transfer of immediately available funds no later than ten (10) calendar days following the date of execution of this Agreement. The Initial UPR Transfer Amount will not reflect Ceding Commission on Unearned
Premium Reserves attributable to (A) receivables for uncollected Premium and (B) an estimate of return Premiums. The amount of the Ceding Commission attributable to B above is referred to as the “Return Premium Ceding Amount.”

  (ii)        Within forty-five (45) days
following the Assumption Effective Date, HCPCI shall calculate the Unearned Premium Reserve as of the Assumption Effective Date considering the post-Assumption Effective Date information available to the Parties, including the uncollectibility of
receivables for uncollected Premium. The sum of the Unearned Premium Reserve, as calculated in this Section 3.1(a)(ii), plus the Return Premium Ceding Amount will result in the “Preliminary UPR Transfer Amount” and HCPCI shall send to
the Company its computation of the Preliminary UPR Transfer Amount together with its work papers used to compute the same (the “UPR True Up Report”). 

  
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 (iii)        If,
within twenty (20) days following its receipt of the UPR True Up Report, the Company does not dispute the UPR True Up Report or the Preliminary UPR Transfer Amount prepared by HCPCI, then the Preliminary UPR Transfer Amount, as set forth in the
UPR True-up Report, shall be considered the finally determined UPR Transfer Amount for purposes of this Agreement. 
 (iv)        In the event the Company has any dispute with regard to the UPR True Up Report or the Preliminary UPR Transfer Amount, such dispute shall be resolved in
the manner described in this Section 3.1(a). The Company shall notify HCPCI in writing of such dispute within twenty (20) days after the Company’s receipt of the UPR True Up Report, which notice shall specify in reasonable detail the
nature of the dispute. 
 (v)        During the thirty
(30) day period following the Company’s receipt of such notice, the Parties shall attempt to resolve such dispute and determine the final calculation of the UPR Transfer Amount. 

(vi)        If, at the end of the thirty (30) day period
specified in subsection (a)(v) above, the Parties shall have failed to reach a written agreement with respect to all or a portion of such dispute (those items that remain in dispute at the end of such period are the “Unresolved Changes”),
the Unresolved Changes shall be referred to an accounting firm (the “Outside Accountants”) jointly selected by the Company’s accountants and HCPCI’s accountants for review and resolution of any and all matters (but only such
matters) which remain in dispute. The Company and HCPCI shall instruct their respective accountants to select the Outside Accountants in good faith within ten (10) days. If the Company’s and HCPCI’s accountants shall not have agreed
upon the Outside Accountants within such ten (10) day period, within an additional five (5) days, they shall each designate an accounting firm that has not performed work in the last two years for either the Company or HCPCI and with
expertise with respect to homeowners’ insurance business in the United States and the Outside Accountants shall be selected by lot from those two accounting firms. If only one of the Company’s and HCPCI’s accountants shall so
designate a name of an accounting firm for selection by lot, such accounting firm so designated shall be the Outside Accountants. 
 (vii)        Each Party hereto agrees to execute, if requested by the Outside Accountants, a reasonable engagement letter. All fees and expenses relating to the
work, if any, to be performed by the Outside Accountants shall be borne pro rata by the Company and HCPCI in inverse proportion to the allocation of the dollar amount of the Unresolved Changes, in the aggregate, between the Company and HCPCI
made by the Outside Accountants such that the party with whom the Outside Accountants agree more closely pays a lesser proportion of the fees and expenses. The Outside Accountants shall act as an arbitrator to determine, based solely on the
provisions of this Agreement and the presentations by the Company and HCPCI, or Representatives thereof, and not by independent review, only the resolution of the Unresolved Changes. The Outside Accountants’ resolution of the Unresolved
Changes, which for each of the Unresolved Changes shall be within the range of values of the amount claimed by either Party as to any of the Unresolved Changes, shall be made within thirty (30) days of the submission of the Unresolved Changes
to the Outside Accountants, shall be set forth in a written statement delivered to the Company and HCPCI and shall be deemed to be mutually agreed upon by the Company and HCPCI for all purposes of this Agreement. Any changes to the UPR True Up
Report resulting from such resolution of the Unresolved Changes shall be made, and such UPR True Up Report, as so changed shall be the final UPR True Up Report and the UPR Transfer Amount reflected therein shall be deemed the finally determined UPR
Transfer Amount for purposes of this Agreement. 

  
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 (viii)        Cooperation. At all times prior to the
final determination of the final UPR True Up Report and UPR Transfer Amount, HCPCI shall cooperate fully with the Company and the Company’s authorized Representatives, including providing, on a timely basis, all information necessary or useful
in reviewing the UPR True Up Report. 

 (ix)        UPR Adjustment. If, pursuant to the
final UPR True Up Report, the finally determined Unearned Premium Reserve is greater than the Initial UPR Transfer Amount, the Company shall pay to HCPCI, in a manner provided in Section 3.1(a)(x), the amount of such difference to the extent
not previously paid. If, pursuant to the final UPR True Up Report, the final UPR Transfer Amount is less than the Initial UPR Transfer Amount, HCPCI shall pay to the Company, in a manner provided in Section 3.1(a)(x), the amount of such
difference). Any payment hereunder shall be referred to as the “UPR Adjustment.” 

 (x)        Payment of UPR Adjustment. Payment of
the UPR Adjustment shall be made within five (5) business days after the amount of the UPR Adjustment has been finally determined pursuant hereto, by wire transfer to the applicable Party of immediately available funds by the Party obligated to
make such payment to the account designated by the receiving Party. 

 (b)        Collection of Premiums. 

  Following the Assumption Effective Date and subject to Section 3.3(a), all Premiums
collected by HCPCI or any of its Affiliates attributed to Assumed Policies shall be retained by HCPCI and all Premiums collected by the Company shall be deposited directly into an account (or accounts) designated by, and issued in the name of, HCPCI
or its Affiliate. Any Premiums collected by the Company pursuant to this Section 3.1 or Section 3.3 shall be the sole and exclusive property of HCPCI and, notwithstanding Section 3.2, shall not be subject to setoff in any form by the
Company. 

  
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 Section 3.2        Offset Rights.

 Except as otherwise expressly provided herein, each Party hereto, and each of its respective Affiliates
at the time an offset is asserted, shall have, and may exercise at any time and from time to time, the right to offset any balance or balances due to the other Party or any of its Affiliates at the time an offset is asserted, arising under this
Agreement or any other agreement hereafter entered into by and between them, and regardless of whether on account of Premiums, Ceding Commissions, or Post-Assumption Losses related to or arising under the Assumed Policies; provided,
however, that in the event of the insolvency of a Party hereto or any of its Affiliates, offsets shall only be allowed in accordance with the provisions of Applicable Law. 

Section 3.3        Premium Payments for Assumed Policies 

(a)        Upon and after the Assumption Effective Date, all Premium payments
collected under the Assumed Policies shall be the sole property of HCPCI. Effective as of the Assumption Effective Date, the Company hereby assigns all of rights and privileges to draft or debit the accounts of any policyholders of the Assumed
Policies for Premiums due after the Assumption Effective Date under the Assumed Policies pursuant to existing pre-authorized bank draft or electronic fund transfer arrangements between the Company and such policyholders. On and after the Assumption
Effective Date, HCPCI is authorized to collect Premiums for the Assumed Policies from policyholders of the Company and may deposit such Premiums directly into one or more accounts designated by, and issued in the name of, HCPCI. To the extent any
Premiums are received directly by the Company or its Affiliate, the Company shall so advise HCPCI and shall promptly remit them to HCPCI. The Company hereby appoints HCPCI as its duly appointed attorney-in-fact for purposes of authorizing HCPCI to
endorse any Premium checks, drafts and money orders on behalf of the Company for deposit into HCPCI’s accounts for Premiums due on and after the Assumption Effective Date. HCPCI and the Company agree to maintain accounting and operational
records and books in adequate detail so as to identify the specific Assumed Policies and policyholders of the Company with respect to all collected Premiums. 
 (b)        HCPCI shall timely pay any return Premium coming due under the Assumed Policies payable on or after the Assumption Effective Date, net of any Ceding
Commission which may apply to such amounts. HCPCI’s obligation to pay such return Premium is limited to payment of such Premium actually received by HCPCI as part of the Unearned Premium Reserves. The Company shall retain the exclusive
obligation to pay return Premium attributed to the Assumed Policies prior to the Assumption Effective Date. 
 Section
3.4        Final Settlement, Reports and Remittances. 

(a)        Ceding Commissions attributable to Premium refunds will be credited
to HCPCI. On April 30, 2012, the Parties shall conduct a settlement based upon monthly bordereaux to be provided by or on behalf of HCPCI evidencing the amount due or to be due in a form, and containing such detail, as is agreed to by the
Parties. Such settlement shall fully settle the amount by which the Initial UPR Transfer Amount exceeds or does not exceed the amount intended to be transferred pursuant to Section 2.6 after taking into account all payments, credits, offsets
and other adjustments, including Ceding Commissions attributable to return Premiums paid by HCPCI (such Ceding Commissions will be credited to HCPCI) and other similar Premium or commission adjustments payable to or by the Company or HCPCI pursuant
to the terms of any of the Assumed Policies or any agent, producer or broker contract that relates to the Assumed Policies, which adjustments, whether positive or negative, shall be credited to or charged against HCPCI, as the case may be. Each
Party shall pay or credit in cash or its equivalent to the other all net amounts for which it may be liable under the terms and conditions of this Agreement at the April 30, 2012 settlement. The Company hereby assigns to HCPCI any rights it has
to return commissions that become due from any agent, producer, broker or other administrative entity as a result of returned Premiums paid by HCPCI, and HCPCI may collect such return commissions directly from such Persons. Receipt of return
commissions by HCPCI from such an agent, producer, broker or other administrative entity will constitute credit charged against HCPCI for return Ceding Commission to the extent of such receipt, but not in excess of amounts credited to HCPCI for
return Ceding Commission. 

  
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 (b)        The Company and HCPCI
shall furnish each other with such records, reports and information with respect to the Post-Assumption Losses, Claims, Inuring Reinsurance, and Unearned Premium Reserves, as may be reasonably required by the other Party to comply with any internal
reporting requirements or reporting requirements of any Governmental Entity or to prepare and complete such Party’s quarterly and annual financial statements. In addition, if requested by the Company, HCPCI shall provide the Company with
(i) monthly reports within thirty (30) days following the end of each month and in such form as agreed by the Parties, identifying all adjustments to Premiums or Ceding Commissions, and (ii) such additional information as may be
reasonably requested by the Company with respect to any such reports. 

(c)        If the Company or HCPCI receives notice of, or otherwise becomes
aware of, any inquiry, investigation, proceeding, from or at the direction of a Governmental Entity, or is served or threatened with a demand for litigation, arbitration, mediation or any other similar proceeding relating to the Assumed Policies,
the Company or HCPCI, as applicable, shall promptly notify the other Party thereof, whereupon the Parties shall cooperate in good faith and use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner
in light of all the relevant business, regulatory and legal facts and circumstances. 

(d)        Each Party, at its expense, shall have the right, through authorized
Representatives and upon reasonable advance notice during normal business hours, to periodically audit and inspect all books, records, and papers of the other Party solely in connection with the Assumed Policies or Claims in connection therewith and
the performance of the Claims, underwriting and other administration services pursuant to Article 4. Each Party shall treat the other Party’s books, records, and papers in confidence. 

(e)        HCPCI agrees that so long as this Agreement shall be in force, it
will have capital and surplus of not less than the amount necessary to comply with the Applicable Laws of its domiciliary jurisdiction. HCPCI agrees to maintain reserves consistent with the Applicable Laws of any jurisdiction having regulatory
authority over HCPCI. 

  
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 ARTICLE 4 
 CLAIMS ADMINISTRATION 

(a)        On and after the Assumption Effective Date, the Company will provide
prompt notice to HCPCI or its designee of all Claims for Post-Assumption Losses which may be received by or on behalf of the Company or its Affiliates (but only to the extent such Claims are not otherwise known or reported to HCPCI or any of its
Affiliates), and HCPCI or its designee will have the obligation to administer, investigate and defend, as applicable, at its own expense, any Claim for Post Assumption Losses. HCPCI shall have no duty, responsibility or obligation to administer any
Claims occurring prior to the Assumption Effective Date or arising from or in any way associated with an event occurring before the Assumption Effective Date. At the request of HCPCI or such designee, the Company will jointly associate with HCPCI,
at the expense of HCPCI, in the defense or control of any Claim, suit or proceeding involving the Assumed Policies, and the Company shall reasonably cooperate with HCPCI or such designee, at the expense of HCPCI, in every respect to procure the most
favorable disposition of such claim, suit or proceeding. 

(b)        The Company grants to HCPCI or one or more of HCPCI’s Affiliates
designated by HCPCI, as of the Assumption Effective Date, authority in all matters relating to the administration of the Assumed Policies and any Claims for Post-Assumption Losses covered by this Agreement, including the authority (i) to pay
and adjust Claims for Post-Assumption Losses which may be received by or on behalf of the Company, and (ii) to communicate directly with policyholders and to collect on behalf of the Company unpaid Premiums attributed solely to the Assumed
Policies on and after the Assumption Effective Date. In exercising such authorities, HCPCI or any such Affiliate may delegate the performance of any duty described above to a third party; provided that no such delegation shall relieve HCPCI of its
obligations hereunder. Subject to the forgoing limitation, effective as of the Assumption Effective Date, the Company hereby appoints HCPCI as its attorney-in-fact with respect to the rights, duties and privileges and obligations of the Company in
and to the Assumed Policies, with full power and authority to act in the name, place and stead of the Company with respect to such contracts, including without limitation, the power to service such contracts, to adjust, defend, settle and to pay all
Claims for Post-Assumption Losses, to recover salvage and subrogation for any Post-Assumption Losses incurred and to take such other and further actions as may be necessary or desirable to effect the transactions contemplated by this Agreement. As
part of the foregoing, the Company grants full authority to HCPCI to adjust, settle or compromise all Post-Assumption Losses hereunder, and all such adjustments, settlements and compromises shall be binding on the Company. The Company agrees, at
HCPCI’s expense, to cooperate fully with HCPCI in the transfer of such administration, and HCPCI agrees to be responsible for such administration. 
 (c)        HCPCI shall maintain sufficient resources and adequate staffing levels of personnel with appropriate experience to administer Claims for Post-Assumption
Losses under the Assumed Policies in a professional manner in accordance with all Applicable Laws. 

  
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 ARTICLE 5 
 REGULATORY MATTERS 
 At all times during the term of
this Agreement, the Company and HCPCI shall hold and maintain all licenses and authorizations required under Applicable Law and otherwise take all actions that may be necessary to perform its obligations hereunder. 

ARTICLE 6 

DUTY OF COOPERATION 
 Each Party hereto shall cooperate fully with the other (and Company shall cause its vendors to cooperate) in all reasonable respects in order to accomplish the objectives of this Agreement, all at the
expense of the requesting Party. 
 ARTICLE 7 
 RESOLUTION OF DISPUTES 

(a)        Except as otherwise provided in Section 3.1(a), any dispute
arising out of the interpretation, performance or breach of this Agreement, including the formation or validity hereof, that the Parties are unable to resolve after good faith negotiations shall be submitted for decision to a panel of three
arbitrators. The arbitration shall be conducted under the American Arbitration Association Commercial Arbitration Rules, except as may be specifically modified herein. Notice requesting arbitration shall be in writing and sent certified or
registered mail, return receipt requested, or by overnight courier service, to the Party against whom relief is sought. 
 (b)        Each Party shall choose one individual as an arbitrator and the two arbitrators shall then choose a third arbitrator who shall preside at the hearing. If
either Party fails to appoint an arbitrator within thirty (30) days after being requested to do so by the other Party, the latter, after ten (10) days’ notice by certified or registered mail or by overnight courier service of its
intention to do so, may appoint the third arbitrator. If the two individuals are unable to agree upon the third arbitrator within thirty (30) days of their appointment, the third arbitrator shall be selected as follows: each arbitrator shall
select three individuals and submit their names to the other arbitrator. In the event a name appears on both lists, that person shall be the third arbitrator. Otherwise, or in the event that more than one name appears on both lists, each arbitrator
shall strike two from the other arbitrator’s list. Of the two persons remaining, one shall be chosen as the third arbitrator by drawing lots. 
 (c)        Within thirty (30) days after the appointment of the third arbitrator, the arbitrators shall jointly determine timely periods for the filing of
briefs with the panel, discovery procedures and schedules for hearings. The arbitrators shall be relieved of all judicial formalities and shall not be bound by the strict rules of law, but, rather, shall view this Agreement as an honourable
engagement between the Parties. The arbitration shall take place in Tampa, Florida or such other location as mutually agreed upon by the parties. The decision of the majority of the arbitrators, when rendered in writing, shall be final and binding.
The arbitrators are empowered to grant interim relief, as they may deem appropriate. 

  
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 (d)        The arbitrators shall
make their decision considering the customs and practices of the applicable insurance and reinsurance business and as promptly as possible following the termination of hearings. Judgment upon the award may be entered in any court of competent
jurisdiction. 
 (e)        The Parties intend this Article to be
enforceable in accordance with the Federal Arbitration Act (9 U.S.C. Section 1, et seq.), including any amendments to that Act which are subsequently adopted, notwithstanding any other choice of law provision set forth in this Agreement. In the
event that either party refuses to submit to arbitration as required herein, the other Party may request the United States Federal District Court for the Middle District of Florida to compel arbitration in accordance with the Federal Arbitration
Act. Both Parties consent to the jurisdiction of such court to enforce this article and to confirm and enforce the performance of any award of the arbitrators. 

(f)        Each Party shall bear the costs of its chosen arbitrator and, unless
the panel awards otherwise, its own attorneys’ fees, and jointly and equally bear, with the other Party, the costs of the third arbitrator and of the arbitration, including arbitrator travel and lodging, court reporters, room rental fees, et.
al. The arbitrators may, in their discretion, award such further costs and expenses as they may consider appropriate, including attorneys’ fees to the extent permitted by the Applicable Law governing the arbitration. 

ARTICLE 8 

REPLACEMENT POLICIES 
 Section 8.1        Right to Offer Replacement Policies and Renewals. 

(a)        From and after the Assumption Effective Date, HCPCI, in its name, is
authorized to and may (directly or indirectly) solicit, quote, bind, write and/or issue, or cause to be solicited, quoted, bound, written and/or issued to any Company policyholder Replacement Policies upon the expiration, cancellation or anniversary
of such policyholder’s contract with the Company relating to the Assumed Policies, on the respective forms and rates of HCPCI, subject to and in accordance with Applicable Law. 

(b)        HCPCI shall offer to issue a Replacement Policy to each policyholder
of the Assumed Policies, subject to HCPCI’s determination in its sole discretion that each such policyholder satisfies HCPCI’s underwriting and other criteria. 

(c)        Except as required by Applicable Law or the applicable Assumed
Policies, neither the Company nor any of its Affiliates shall attempt to solicit, sell, write or issue any evidence of insurance constituting the Assumed Policies that would have the effect of canceling any Assumed Policies prior to the end of their
natural terms without the prior written consent of HCPCI. 

  
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 (d)        The Company shall cause
its Affiliates, including HomeWise Management Company, to cooperate with HCPCI in connection with fulfilling its obligations and duties arising under this Agreement, and the Company will enter into and execute amendments to any contracts with such
Affiliates as may be necessary or appropriate to fulfill the terms of this Agreement. At a minimum, such amendments shall cause such Affiliates to assign any right, title, or interest they may have to renewals in or to the Assumed Policies to HCPCI
and to release the Company and HCPCI from any liability or claims for all or any portion of the Premiums. 

(e)        The Company covenants and agrees, from and after the date of
execution of this Agreement, following written notice by HCPCI to the Company, to provide, to the extent permitted by Applicable Law and contractual obligations with third parties, to HCPCI and its respective Representatives reasonable access during
normal business hours to the originals or copies of all books and records relating to the Assumed Policies (to the extent such books and records are not in the possession or control of HCPCI or its Affiliates) and to reasonably make available to
HCPCI any such Representatives or employees of the Company or any of its Affiliates with knowledge thereof; provided, however, that HCPCI shall not have access to or use, and will not permit any of its Affiliates or any of their respective
Representatives, to have access to or use any of the items referred to in this Section 8.1 in a manner that would (i) cause the Company or its Affiliates to be in breach of any contract with any Person, and (ii) be in violation of any
Applicable Law, including any applicable state or federal privacy laws. 
 Section
8.2        Communications with Producers and Policyholders. 

From and after the date of execution of this Agreement, in all cases subject to Applicable Law, the Company shall make
reasonably available during business hours and upon reasonable notice employees of the Company or its Affiliates reasonably requested by HCPCI or its Representatives, to assist HCPCI in retaining the Assumed Policies, including, without limitation,
scheduling meetings and conference calls among the Company, HCPCI and producers and sending communications (the content of which shall be subject to the Company’s prior review and reasonable approval) to producers, the actual out-of-pocket
allocable costs of which will be borne by HCPCI or its Representatives, for the purpose of encouraging producers or policyholders to enter into contractual arrangements with HCPCI or its Representatives from and after the Assumption Effective Date,
as reasonably requested by HCPCI. HCPCI may use the names and marks of the Company in connection with its efforts to retain the Assumed Policies, subject to approval by the Company, such approval not to be unreasonably withheld. 

Section 8.3        Non-Solicitation With Respect to the Assumed Policies.

 (a)        The Company agrees that, from and after Assumption
Effective Date, the Company shall not, directly or indirectly, solicit, market, offer, bind, enter into or issue insurance contracts, policies, treaties or slips for or relating to, the Assumed Policies. From and after the Assumption Effective Date,
the Company shall not use or permit the use of Confidential Information by its Affiliates (in the case of Affiliates, only to the extent such Affiliates owe a fiduciary, contractual or implied duty of confidentiality to the Company with respect to
such Confidential Information) or any other Person (except for HCPCI or its designated Affiliates) to solicit, market, offer, bind enter into or issue insurance contracts, policies, treaties, slips for or relating to the Assumed Policies.

  
 - 17 -

 (b)        The Parties hereto
acknowledge that the restrictions contained in this Section 8.3 were specifically negotiated to induce HCPCI to enter into this Agreement and are reasonable and necessary to protect the legitimate interests of HCPCI, that HCPCI shall not have
an adequate remedy at law for any actual or attempted breach or violation of this Section 8.3 and that HCPCI, in addition to any other rights or remedies, shall be entitled to specific performance, injunctive and other equitable relief for any
actual or attempted breach or violation, as well as reasonable attorneys’ fees incurred in successfully enforcing the covenants in this Section 8.3 against any such actual or attempted breach or violation. Anything in this Agreement to the
contrary notwithstanding, the rights of HCPCI under this Section 8.3 shall inure to the benefit of any successor or assign of HCPCI, including, without limitation, any Person acquiring, directly or indirectly, all or substantially all of the
assets of HCPCI, whether by merger, consolidation, sale or otherwise. 

(c)        The provisions of this Section 8.3 shall survive expiration or
termination of this Agreement. 
 ARTICLE 9 
 REGULATORY APPROVALS 
 The Company and HCPCI shall
submit all necessary registrations, filings and notices with, and obtain all necessary consents, approvals, qualifications and waivers from, all Governmental Entities and other parties which may be required under Applicable Law as a result of the
transactions contemplated by, or to perform its respective obligations under, this Agreement, including the Florida Office of Insurance Regulation. The Parties agree that where formal approval is required by any Governmental Entity, this Agreement
shall not be effective as to any and all Assumed Policies in such jurisdiction until such approval is obtained. 
 ARTICLE 10

 TERMINATION 
 This Agreement shall not be subject to termination by any Party except (i) by written agreement between HCPCI and the Company on the date indicated by such agreement, after receipt of any required
approval from Governmental Entities, or (ii) at the election of HCPCI in its sole discretion immediately upon any breach by the Company of its covenants, representations, warranties or conditions included in Article 2 or 3 that would have a
material adverse effect on the transactions contemplated by this Agreement. In the event the transfer of the Unearned Premium Reserves to, or collection of Premiums by, HCPCI is invalidated in its entirety or HCPCI is otherwise ordered to return
such funds to the Company or other Person, HCPCI shall have no duty, obligation or liability to administer or pay any Post-Assumption Losses or Claims arising under the Assumed Policies. Notwithstanding anything in this Agreement to the contrary, in
the event the Company for any reason fails to pay all or any portion of the Initial UPR Transfer Amount, this Agreement may be terminated by HCPCI retroactively as of the Assumption Effective Date, in which case HCPCI shall promptly repay to the
Company any and all of the Initial UPR Transfer Amount which may have actually been paid by the Company under Section 3.1(a)(i), and HCPCI shall have no duty, obligation or liability to administer or pay any Post-Assumption Losses or Claims
arising under any policies that otherwise would have become Assumed Policies but for termination under this paragraph. 

  
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 ARTICLE 11 
 INDEMNIFICATION 
 Section
11.1        Indemnification Obligations of the Company. 

Subject to the provisions of this Agreement, the Company agrees to indemnify and hold HCPCI and its Affiliates,
predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against and in respect of all liabilities, damages, losses, costs or expenses, including attorneys’ fees, resulting from or
relating to a breach by the Company or any of its Affiliates of any covenant or agreement of the Company or any of its Affiliates in this Agreement and for Pre-Assumption Effective Date Liabilities. 

Section 11.2        Indemnification Obligations of HCPCI. 

Subject to the provisions of this Agreement, HCPCI agrees to indemnify and hold the Company and its Affiliates,
predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against and in respect of all liabilities, damages, losses, costs or expenses, including attorneys’ fees, resulting from or
relating to a breach by HCPCI or any of its Affiliates of any covenant or agreement of HCPCI or any such Affiliate in this Agreement. 
 ARTICLE 12 
 MISCELLANEOUS 

Section 12.1        Notices. 

All notices, requests, demands and other communications hereunder shall be given in writing and shall be:
(a) personally delivered; (b) sent by telecopier, facsimile transmission or other electronic means of transmitting written documents; or (c) sent to the Parties at their respective addresses indicated herein by registered or certified
U.S. mail, return receipt requested and postage prepaid, or by private overnight mail courier service. The respective addresses to be used for all such notices, demands or requests are as follows: 

  
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 (a)         If to the Company,
to: 
 HomeWise Insurance Company 

c/o Glencoe Capital, LLC 
 222 West Adams Street, Suite 1000 
 Chicago, Illinois 60606

 Attention: Portfolio Manager 

Facsimile No.: (312) 795-0455 

with copies to: 
 McDermott, Will & Emery 
 227 West Monroe Street

 Chicago, Illinois 60606-5096 

Attention: Scott M. Williams 
 Facsimile: (312) 984-7700 
 or to such other person or address as the Company
shall furnish to HCPCI in writing. 
 (b)         If to HCPCI, to:

 Paresh Patel, Chief Executive Officer 

5300 West Cypress Street, Suite 100 

Tampa, FL 33607 
 (813) 405-3612 tel 
 (813) 865-0174 fax 

pspatel@hcpci.com 
 with copy to 
 Andrew L. Graham, General Counsel 

5300 West Cypress Street, Suite 100 

Tampa, FL 33607 
 (813) 405-3615 tel 
 (813) 865-0174 fax 

agraham@hcpci.com 
 or to such other person or address as HCPCI shall furnish to the Company in writing. 
 If personally delivered, such communication shall be deemed delivered upon actual receipt; if electronically transmitted pursuant to this paragraph, such communication shall be deemed delivered the next
business day after transmission (and sender shall bear the burden of proof of delivery); if sent by overnight courier pursuant to this paragraph, such communication shall be deemed delivered upon receipt; and if sent by U.S. mail pursuant to this
paragraph, such communication shall be deemed delivered as of the date of delivery indicated on the receipt issued by the relevant postal service, or, if the addressee fails or refuses to accept delivery, as of the date of such failure or refusal.
Any Party to this Agreement may change its address for the purposes of this Agreement by giving notice thereof in accordance with this Section. 

  
 - 20 -

 Section 12.2        Assignment; Parties in
Interest. 

(a)        Assignment.    Except as expressly
provided herein, the rights and obligations of a Party hereunder may not be assigned, transferred or encumbered without the prior written consent of the other Party. 

(b)        Parties in Interest.    This Agreement
shall be binding upon, inure to the benefit of, and be enforceable by the Parties and their respective successors and permitted assigns. Except as provided in Section 3.2, nothing contained herein shall be deemed to confer upon any other Person
any right or remedy under or by reason of this Agreement. 
 Section
12.3        Waivers and Amendments; Preservation of Remedies. 
 This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by each of the Parties or, in the case of a waiver, by the
Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power, remedy or privilege, nor any
single or partial exercise of any such right, power, remedy or privilege, preclude any further exercise thereof or the exercise of any other such right, remedy, power or privilege. The rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies that any Party may otherwise have under Applicable Law or in equity. 
 Section
12.4        Governing Law; Venue. 
 This Agreement shall be
construed and interpreted according to the internal laws of the State of Florida excluding any choice of law rules that may direct the application of the laws of another jurisdiction. Subject to the parties’ obligation to arbitrate any disputes
in accordance with the provisions of Article 7, the Parties hereby stipulate that any action or other legal proceeding arising under or in connection with this Agreement may be commenced and prosecuted in its entirety in the federal or state courts
sitting in Tampa, Florida, each Party hereby submitting to the personal jurisdiction thereof, and the Parties agree not to raise the objection that such courts are not a convenient forum. Process and pleadings mailed to a party at the address
provided in Section 12.1 shall be deemed properly served and accepted for all purposes. 
 Section
12.5        Counterparts. 
 This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

  
 - 21 -

 Section 12.6        Entire Agreement;
Merger. 
 This Agreement, and any exhibits, schedules and appendices attached hereto and thereto,
together constitute the final written integrated expression of all of the agreements among the Parties with respect to the subject matter hereof and is a complete and exclusive statement of those terms, and supersede all prior or contemporaneous,
written or oral, memoranda, arrangements, contracts and understandings between the Parties relating to the subject matter hereof. Any representations, promises, warranties or statements made by any Party which differ in any way from the terms of
this Agreement or any applicable provisions contained in the Ancillary Agreements shall be given no force or effect. The Parties specifically represent, each to the other, that there are no additional or supplemental agreements or contracts between
or among them related in any way to the matters herein contained unless specifically included or referred to in this Agreement. No addition to or modification of any provision of this Agreement or any applicable provisions of the Renewal Rights
Agreement shall be binding upon either Party unless embodied in a dated written instrument signed by both Parties. 
 Section
12.7        Exhibits and Schedules. 
 All exhibits,
schedules and appendices are hereby incorporated by reference into this Agreement as if they were set forth at length in the text of this Agreement. 
 Section 12.8        Headings. 
 The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. 
 Section 12.9        Severability. 
 If any part of this Agreement is contrary to, prohibited by, or deemed invalid under Applicable Law or regulations, that provision shall not apply and shall be omitted to the extent so contrary,
prohibited, or invalid; but the remainder of this Agreement shall not be invalidated and shall be given full force and effect insofar as possible. 
 Section 12.10        Expenses. 
 Regardless of whether or not the transactions contemplated in this Agreement are consummated, each of the Parties shall bear their own expenses and the expenses of its counsel and other agents in
connection with the transactions contemplated hereby, except as otherwise expressly provided for in this Agreement. 

Section 12.11        Further Assurances. 

HCPCI and the Company shall use commercially reasonable efforts to take, or cause to be taken, all actions or do, or
cause to be done, all things or execute any documents necessary, proper or advisable to consummate and make effective the transactions contemplated by this Agreement, subject to its terms; provided, however, that any such additional documents must
be reasonably satisfactory to each of the Parties and not impose upon either Party any material liability, risk or obligation not contemplated by this Agreement. 

  
 - 22 -

 Section
12.12        Currency.    The currency of this Agreement and all transactions under this Agreement shall be in United States Dollars. 

(Signature Page Follows) 

  
 - 23 -

 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the day and year first written above. 
  

			
	HOMEWISE INSURANCE COMPANY
		
	By	 	 
		
	Title	 	 
		
		 	
	HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY, INC.
		
	By	 	 
		
	Title	 	 

  
 - 24 -

 Schedule 2.3(b) and 2.3(c) 

 

	•	 	 Note Purchase Agreement dated February 22, 2010 among HomeWise Holdings, Inc., a wholly-owned subsidiary of Glencoe Acquisition, Inc. (“HW
Holdings”) and the other parties thereto (as amended from time to time, the “Senior Note Purchase Agreement”) and the other documents executed in connection therewith, including, without limitation, (a) those certain Security
Agreements (as defined in the Senior Note Purchase Agreement), (b) those certain Notes (as defined in the Senior Note Purchase Agreement) and (c) that certain Premium Repayment Agreement dated March 5, 2010 among HW Holdings and the
other parties thereto (collectively, as amended from time to time, the “HomeWise Loan Documents”). 

  

	•	 	 Note Purchase Agreement dated May 31, 2011 by and among Glencoe Acquisition, Inc., First Home Acquisition Company, LLC, a wholly-owned
subsidiary of Glencoe Acquisition, Inc., Carlyle Multi-Strategy Master Fund Liquidating Trust and Charles H. Powers, Sr. (as amended from time to time, the “Subordinated Note Purchase Agreement”) and the other documents executed in
connection therewith, including, without limitation, (a) those certain Subsidiary Guarantees (as defined in the Subordinated Note Purchase Agreement) and (b) those certain Notes (as defined in the Subordinated Note Purchase Agreement)
(collectively, as amended from time to time, the “FHAC Loan Documents”). 

  

	•	 	 Underwriting Policy Administration and Processing Management Agreement dated June 20, 2007, as amended from time to time, with Seibels,
Bruce & Company 

  

	•	 	 Claims Administration Services Agreement dated June 20, 2007, as amended from time to time, with Insurance Network Services, Inc.

  

	•	 	 Letter agreement dated May 16, 2007, as amended from time to time, with Seibels, Bruce & Company 

 

	•	 	 Service Agreement dated May 4, 2005, as amended from time to time, with First Home Insurance Agency, LLC 

 

	•	 	 Managing Agency Contract dated January 1, 2006, as amended from time to time, with HomeWise Management Company 

 

	•	 	 Quota Share Reinsurance Contract effective May 31, 2010, as amended from time to time, with Greenlight Reinsurance Ltd.

  

	•	 	 Master Expanded Market Agreement dated January 1, 2009, as amended from time to time, with Ivantage Select Agency, Inc.

  

	•	 	 Renewal Rights Agreement with Sawgrass 

	•	 	 License Agreement dated December 1, 2009, as amended from time to time, with Xactware Solutions, Inc. 

 

	•	 	 Access and Use Agreement dated December 1, 2009, as amended from time to time, with AIR Worldwide 

 

	•	 	 Reinsurance contract with DE Shaw 

  

	•	 	 OIR approval and consent order 

  
 - 2 -

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