Document:

Executive Agreement date July 1, 2011 between Homeowners Choice, Inc. and Paresh

 Exhibit 10.4 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, dated July 1, 2011, 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 Paresh Patel (the “Executive”). 

BACKGROUND STATEMENT 
 The Company, through its Affiliates (as defined in this Agreement), is principally engaged in the business of providing homeowners insurance. 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 July 1,
2011, the Company agrees to employ the Executive, and the Executive agrees to serve, as the Company’s president and chief executive officer, 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 board of directors, which duties, responsibilities and authorities will not be inconsistent with the Executive’s role as the Company’s president and chief
executive officer. The Executive will report solely to the Company’s 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 investment, investing in or engaging in other ventures, or maintaining a directorship related to First Home Bank, provided such activities do not interfere with the performance of his duties under this Agreement are not inconsistent
with his role as the Company’s president and chief executive officer. 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. Board Elections. During the Executive’s term of employment under this
Agreement, the Company will use its best efforts to cause the Executive to be elected to the Board of Directors of Company (or its successor in interest), and to nominate the Executive as a member of the management slate at each annual meeting of
shareholders at which the Executive’s director class comes up for election. 
 4. 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. 

5. Term. The initial term of the Executive’s employment hereunder will commence on July 1, 2011 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.” 

6. Compensation. 
 6.1. 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 $500,000, which base
salary will accrue and be paid in accordance with the Company’s standard payroll practices. 
 6.2. 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. 

6.3. 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) three weeks paid vacation plus other paid time generally available to the other executive
officers of the Company. 

  
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 6.4. 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. 
 6.6. 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. 
 7. 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. 
 8. Incapacity. 
 8.1 Right to Terminate.
Notwithstanding anything else to the contrary contained in this Agreement, except as provided by this Section 8 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 8 will be deemed a termination without “Good Cause” as described in Section 9.4 hereof. 

8.2 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. 
 8.3
Rights Prior to Termination. During a period of Incapacity the Executive will be entitled to his full base salary under Section 6.1 hereof and full benefits under Section 6.3 hereof until employment is
terminated as described in Section 9.1. 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. 

8.4 Incapacity Defined. For purposes of this Section 8, 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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 9. Termination of Employment. 

9.1 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 the following circumstances: 

(i) The Executive commits any fraud, dishonesty, misappropriation or similar act against the Company or others;

 (ii) The Executive materially defaults in the performance of his obligations, services or duties hereunder;

 (iii) 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; 
 (iv) The Executive is grossly negligent or commits willful misconduct in the performance of his duties hereunder; and 

(v) 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. 
 9.2 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 6.1 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 6.4 hereof; and 
 9.3 Effect of Termination without Good
Cause. If the Company terminates the Executive’s employment without Good Cause— 

  
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 (i) the Executive will be entitled to accrued base salary under
Section 6.1 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 6.4 hereof; 
 (iii) the Executive will be entitled to receive all
amounts of base salary that would have been payable under Section 6.1 (provided that the Executive will receive not less than 12 months of base salary) through the Term (excluding future automatic renewals) (the “Scheduled
Termination Date”) if employment had not been terminated, which amounts will be paid as and when such base salary would have been paid; 
 (iv) if the termination is within three years of a Change of Control (as defined herein), the Executive will be entitled to receive a one-time, lump sum severance payment (due upon termination)
equal to 2.9 times the total amount of the annual base salary payable under the terms of Section 6.1 of this Agreement of this Agreement; and 
 (vii) The provisions of Section 13 will no longer apply to the Executive. 
 9.4 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 8.1 will be deemed a termination without Good Cause. The 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 Executive is removed from or fails to win election to the Company’s board of directors; 
 (iii) The Company fails to afford the Executive the power and authority generally commensurate with the position of a president and chief executive officer; 

(iv) The Company moves the Executive’s principal place of employment beyond 20 miles from Tampa, Florida; or

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

 9.5 Termination by Executive. The Executive may terminate his employment hereunder by delivery of not
less than 30 days written notice to the Company. 
 9.6 Effect of Termination by Executive. If the
Executive terminates his employment pursuant to Section 9.5 hereof — 
 (i) the Executive will
be entitled to accrued base salary under Section 6.1 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 6.4 hereof. 

9.7 Change of Control. For purposes of Section 9.3 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 

  
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 (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. 
 9.8 Certain Additional 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 (“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”), then the Executive will be entitled to receive an
additional payment (the “Excise Tax Gross-Up Payment”) in an amount such that the net amount retained by the Executive, after the calculation and deduction of any Excise Tax on the Payments and any federal, state and
local income taxes and excise tax on the Excise Tax Gross-Up Payment provided for in this Section 9.8, will be equal to the Payments. In determining this amount, the amount of the Excise Tax Gross-Up Payment
attributable to federal income taxes will be reduced by the maximum reduction in federal income taxes that could be obtained by the deduction of the portion of the Excise Tax Gross-Up Payment attributable to state and local income taxes.
Finally, the Excise Tax Gross-Up Payment will be reduced by income or excise tax withholding payments made by the Company or any Affiliate to any federal, state or local taxing authority with respect to the Excise Tax Gross-Up
Payment that was not deducted from compensation payable to the Executive. 
 (b) All determinations required
to be made under this Section 9.8, including whether and when an Excise Tax Gross-Up Payment is required and the amount of such Excise Tax Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, except as specified in Section 9.8(a) above, will be made by the independent tax or accounting (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 Excise Tax Gross-Up Payment, as determined pursuant to this Section 9.8, with respect to a Payment will be paid by the Company to the Executive at such time as the Executive is entitled to receive
the Payment. Any determination by a jointly designated public accounting firm will be binding upon the Company and the Executive. 

  
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 (c) As a result of the uncertainty in the application of Section 4999
of the Internal Revenue Code at the time of the initial determination hereunder, it is possible that Excise Tax Gross-Up Payments will not have been made by the Company that should have been made consistent with the calculations required to
be made hereunder (“Underpayment”). In the event that the Executive thereafter is required to make a payment of any Excise Tax, any such Underpayment calculated in accordance with and in the same manner as the
Excise Tax Gross-Up Payment in Section 9.8(a) above will be promptly paid by the Company to or for the benefit of the Executive. In the event that the Excise Tax Gross-Up Payment exceeds the amount subsequently determined
to be due, such excess will constitute a loan from the Company to the Executive payable on the fifth day after demand by the Company (together with interest at the rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code).

 10. Certain Board Actions. The Executive will not vote on any matter involving the Executive’s own compensation,
matters involving Incapacity under Section 8 hereof or any motion involving termination of the Executive’s employment under this Agreement. Notwithstanding the foregoing sentence the Executive may vote on compensation-related
plans involving officers, directors or employees as a group, including bonus, stock, and option plans. 
 11. Trade
Secrets. 
 11.1. 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. 

  
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 11.2. 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. 
 11.3.
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. 

11.4. 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. 

11.5. 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. 
 11.6. 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. 

  
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 12. 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. 

13. Restrictions on Competition and Solicitation. 

13.1. Noncompetition. The Executive agrees that during the course of his employment with the Company and for a
period of one year 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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 13.2. 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 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 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. 
 13.3. 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 13. 
 13.4.
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. 
 13.5.
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 13. 
 14. 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 11 through 13 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. 

  
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 15. 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. 
 16.
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. 
 17. 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. 
 18. 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. 

19. 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: 

If to the Company: 
 Homeowners
Choice, Inc. 
 Suite 100 
 5300 West Cypress Street 
 Tampa, FL 33607 

ATT: General Counsel 

  
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 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. 
 20. 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. 
 21. 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.

 22. 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. 
 23.
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. 

24. 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. 

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

27. 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. 
 28. 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. 
 29.
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 11 through 13 solely in
consideration of the Company’s execution of this Agreement and such obligations and this Section 29 will survive and continue notwithstanding the termination, rescission or expiration of this Agreement or any provision of this
Agreement. 
 30. Exhibits. All exhibits, schedules and other attachments to this Agreement are hereby incorporated by
this reference as integral parts of this Agreement. 

  
 14 

 31. 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. 

32. 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
		
		 	 
		 	Homeowners Choice, Inc.
		
	 By:
	 	 
		
	 Its:
	 	

  
 15Excess Catastrophe Reinsurance Contract effective June 1, 2011 by Homeowners Cho

 Exhibit 10.13 
 EXCESS CATASTROPHE REINSURANCE CONTRACT 
 Effective: June 1, 2011 

****** indicates material that has been omitted pursuant to a request for confidential treatment. The omitted material has been filed separately with the
U.S. Securities and Exchange Commission. 
 HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 

and 
 any other
insurance companies which are now or 
 hereafter come under the ownership, control or management of 

Homeowners Choice, Inc. 

  
  

 

			
	Effective: June 1, 2011	 	

 TABLE OF CONTENTS 

 

							
	1.	  	BUSINESS COVERED	  	 	1	  
	2.	  	TERM	  	 	1	  
	3.	  	EXCLUSIONS	  	 	3	  
	4.	  	RETENTION AND LIMIT	  	 	4	  
	5.	  	REINSTATEMENT	  	 	5	  
	6.	  	FLORIDA HURRICANE CATASTROPHE FUND	  	 	6	  
	7.	  	RATE AND PREMIUM	  	 	7	  
	8.	  	DEFINITIONS	  	 	8	  
	9.	  	LOSS OCCURRENCE DEFINITION	  	 	10	  
	10.	  	ACCESS TO RECORDS	  	 	11	  
	11.	  	AGENCY (BRMA 73A)	  	 	11	  
	12.	  	ARBITRATION	  	 	12	  
	13.	  	CONFIDENTIALITY	  	 	13	  
	14.	  	CURRENCY (BRMA 12A)	  	 	14	  
	15.	  	ENTIRE AGREEMENT	  	 	14	  
	16.	  	ERRORS AND OMISSIONS (BRMA 14F)	  	 	14	  
	17.	  	FEDERAL EXCISE TAX (BRMA 17D)	  	 	14	  
	18.	  	FUNDING OF RESERVES	  	 	15	  
	19.	  	GOVERNING LAW	  	 	17	  
	20.	  	INSOLVENCY	  	 	17	  
	21.	  	LATE PAYMENTS	  	 	18	  
	22.	  	LIABILITY OF THE REINSURER	  	 	19	  
	23.	  	LOSS NOTICE AND SETTLEMENTS	  	 	19	  
	24.	  	NET RETAINED LINES (BRMA 32E)	  	 	20	  
	25.	  	NON-WAIVER	  	 	20	  
	26.	  	NOTICES AND CONTRACT EXECUTION	  	 	20	  
	27.	  	OFFSET (BRMA 36E)	  	 	21	  
	28.	  	OTHER REINSURANCE	  	 	21	  
	29.	  	SALVAGE AND SUBROGATION	  	 	21	  
	30.	  	SERVICE OF SUIT	  	 	21	  
	31.	  	SEVERABILITY (BRMA 72E)	  	 	22	  
	32.	  	TAXES	  	 	22	  
	33.	  	TERRITORY	  	 	22	  
	34.	  	INTERMEDIARY (BRMA 23A)	  	 	23	  

 ATTACHMENTS 
 Schedule A 
 Nuclear Incident Exclusion Clause – Physical
Damage – Reinsurance (USA) 

  
  

 

			
	Effective: June 1, 2011	 	

 EXCESS CATASTROPHE REINSURANCE CONTRACT 

Effective: June 1, 2011 
 (hereinafter referred to as the “Contract”) 
 issued to 

HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY 
 Clearwater, Florida 
 and 

any other insurance companies which are now or 
 hereafter come under the ownership, control or management of 
 Homeowners Choice,
Inc. 
 (hereinafter referred to collectively as the “Company”) 

by 
 THE
SUBSCRIBING REINSURER(S) 
 EXECUTING THE INTERESTS AND LIABILITIES 

AGREEMENT(S) ATTACHED HERETO 
 (hereinafter referred to as the “Reinsurer”) 
 ARTICLE 1 - BUSINESS COVERED 

This Contract is to indemnify the Company in respect of its net excess liability as a result of any loss or losses which may occur during the term of this
Contract under any policies, contracts and binders of insurance or reinsurance (hereinafter called “policies”) in force at the effective date hereof or issued or renewed on or after that date, covering business classified by the Company as
the property perils of Homeowners and Dwelling, subject to the terms, conditions and limitations set forth herein and in Schedule A attached to and forming part of this Contract. 
 ARTICLE 2 - TERM 
  

	A.	This Contract shall become effective at 12:01 a.m., Local Standard Time, June 1, 2011, with respect to losses arising out of loss occurrences commencing at or
after that time and date, and shall remain in force until 12:01 a.m., Local Standard Time, June 1, 2012. “Local Standard Time” as used herein shall mean local standard time at the location where the loss occurrence commences.

  

	B.	If this Contract is terminated or expires while a loss occurrence covered hereunder is in progress, the Reinsurer’s liability hereunder shall, subject to the other
terms and conditions of this Contract, be determined as if the entire loss occurrence had occurred prior to the termination or expiration of this Contract, provided that no part of such loss occurrence is claimed against any renewal or replacement
of this Contract. 

  
  

 

			
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	C.	Notwithstanding the provisions of paragraph A above, the Company may reduce or terminate a Subscribing Reinsurer’s percentage share in this Contract at any time by
giving written notice to the Subscribing Reinsurer in the event any of the following circumstances occur. The effective date of reduction or termination shall be the date selected by the Company, which may be a date that is retroactively applied up
to a maximum of 65 days prior to the date of public announcement for subparagraphs 1 through 5 below or upon discovery for subparagraphs 6 through 8 below, subject to the condition that such selected date must be the last day of a calendar month:

  

	 	1.	The Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under the Subscribing Reinsurer’s accounting system) as reported in such financial
statements of the Subscribing Reinsurer as designated by the Company, has been reduced by 20.0% of the amount of surplus (or the applicable equivalent) at any date during the prior 12-month period (including the 12-month period prior to the
inception of this Contract); or 

  

	 	2.	The Subscribing Reinsurer’s A.M. Best’s rating has been assigned or downgraded below A- and/or its Standard & Poor’s rating has been assigned or
downgraded below BBB+; or 

  

	 	3.	The Subscribing Reinsurer has become merged with, acquired by or controlled by any other entity or unaffiliated individual(s) not controlling the Subscribing
Reinsurer’s operations at the inception of this Contract; or 

  

	 	4.	A State Insurance Department or other legal authority has ordered the Subscribing Reinsurer to cease writing business; or 

 

	 	5.	The Subscribing Reinsurer has become insolvent or has been placed into liquidation, receivership, supervision, administration, winding-up or under a scheme of
arrangement, or similar proceedings (whether voluntary or involuntary) or proceedings have been instituted against the Subscribing Reinsurer for the appointment of a receiver, liquidator, rehabilitator, supervisor, administrator, conservator or
trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations; or 

  

	 	6.	The Subscribing Reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, except that this provision shall not
apply to any inter-company reinsurance or inter-company pooling arrangements entered into by the Subscribing Reinsurer; or 

  

	 	7.	The Subscribing Reinsurer has ceased assuming new or renewal property and casualty treaty reinsurance business; or 

  
  

 

			
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	 	8.	The Subscribing Reinsurer has hired an unaffiliated runoff claims manager that is compensated on a contingent basis or is otherwise provided with financial incentives
based on the quantum of claims paid. 

 ARTICLE 3 - EXCLUSIONS 

 

	A.	This Contract does not apply to and specifically excludes the following: 

  

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

  

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

 

	 	3.	Financial guarantee and insolvency. 

  

	 	4.	All Accident and Health, Fidelity and Surety, Boiler and Machinery, Workers’ Compensation, and Credit business. 

 

	 	5.	Flood and/or earthquake when written as such for stand alone policies where flood and/or earthquake is the only named peril. 

 

	 	6.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance (U.S.A.)” attached to and forming part of this Contract.

  

	 	7.	Loss or damage caused by or resulting from war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or
martial law or confiscation by order of any government or public authority, but this exclusion shall not apply to loss or damage covered under a standard policy with a standard War Exclusion Clause. 

 

	 	8.	Loss or liability from any Pool, Association or Syndicate and any assessment or similar demand for payment related to the Florida Hurricane Catastrophe Fund or Citizens
Property Insurance Corporation. 

  

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

  
  

 

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

  

	 	11.	Loss, damage, cost or expense arising out of an act of terrorism involving the use of any biological, chemical, nuclear or radioactive agent, material, device or
weapon. 

  

	 	12.	All liability arising out of mold, spores and/or fungus, but this exclusion shall not apply to those losses which follow as a direct result of a loss caused by a peril
otherwise covered hereunder. 

  

	B.	With the exception of subparagraphs 3, 6, 7 and 11 of paragraph A above, should any judicial, regulatory or legislative entity having legal jurisdiction invalidate any
exclusion on the Company’s policy, any amount of loss for which the Company is liable because of such invalidation will not be excluded hereunder. 

  

	C.	The Company may submit to the Reinsurer, for special acceptance hereunder, business not covered by this Contract. Within seven days of receipt of such request, each
Subscribing Reinsurer shall accept such request, ask for additional information, or reject the request. If a Subscribing Reinsurer fails to respond to a special acceptance request within seven days, the Subscribing Reinsurer shall be deemed to have
agreed to the special acceptance. If said business is accepted by the Reinsurer, it will be subject to the terms of this Contract, except as such terms are modified by such acceptance. Any special acceptance business covered under the reinsurance
agreement being replaced by this Contract will be automatically covered hereunder. Further, in the event a Subscribing Reinsurer becomes a party to this Contract subsequent to the special acceptance of any business not normally covered hereunder,
the Subscribing Reinsurer shall automatically accept the same as being a part of this Contract. 

 ARTICLE 4 - RETENTION AND LIMIT

  

	A.	As respects each excess layer of reinsurance coverage provided by this Contract, the Company shall retain and be liable for the first amount of ultimate net loss, shown
as “Company’s Retention” for that excess layer in Schedule A attached hereto, arising out of each loss occurrence. The Reinsurer shall then be liable, as respects each excess layer, for the amount by which such ultimate net loss
exceeds the Company’s applicable retention, but the liability of the Reinsurer under each excess layer shall not exceed the amount, shown as “Reinsurer’s Per Occurrence Limit” for that excess layer in Schedule A attached
hereto, as respects any one loss occurrence, nor shall it exceed the amount, shown as “Reinsurer’s Contract Limit” for that excess layer in Schedule A attached hereto as respects all loss or losses arising out of loss occurrences
commencing during the term of this Contract. 

  
  

 

			
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	B.	Notwithstanding the provisions above, no claim shall be made under any excess layer as respects losses arising out of loss occurrences commencing during the term of
this Contract unless at least two risks insured or reinsured by the Company are involved in such loss occurrence. For purposes hereof, the Company shall be the sole judge of what constitutes “one risk.” 

ARTICLE 5 - REINSTATEMENT 
  

	A.	In the event all or any portion of the reinsurance under the second excess layer of reinsurance coverage provided by this Contract is exhausted by loss, the amount so
exhausted shall be reinstated immediately from the time the loss occurrence commences hereon. For each amount so reinstated the Company agrees to pay additional premium equal to the product of the following: 

 

	 	1.	The percentage of the loss occurrence limit for the second excess layer reinstated (based on the loss paid by the Reinsurer under that excess layer); times

  

	 	2.	The earned reinsurance premium for the second excess layer reinstated for the term of this Contract (exclusive of reinstatement premium). 

 

	B.	Whenever the Company requests payment by the Reinsurer of any loss under the second excess layer hereunder, the Company shall submit a statement to the Reinsurer of
reinstatement premium due the Reinsurer for that excess layer. If the earned reinsurance premium for the second excess layer for the term of this Contract has not been finally determined as of the date of any such statement, the calculation of
reinstatement premium due for that excess layer shall be based on the deposit premium for that excess layer and shall be readjusted when the earned reinsurance premium for that excess layer for the term of this Contract has been finally determined.
Any reinstatement premium shown to be due the Reinsurer for the second excess layer as reflected by any such statement (less prior payments, if any, for that excess layer) shall be payable by the Company concurrently with payment by the Reinsurer of
the requested loss for that excess layer. Any return reinstatement premium shown to be due the Company shall be remitted by the Reinsurer as promptly as possible after receipt and verification of the Company’s statement.

  

	C.	Notwithstanding anything stated herein, the liability of the Reinsurer under the second excess layer of reinsurance coverage provided by this Contract shall not exceed
either of the following: 

  

	 	1.	The amount, shown as “Reinsurer’s Per Occurrence Limit” for the second excess layer in Schedule A attached hereto, as respects loss or losses arising out
of any one loss occurrence; or 

  
  

 

			
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	 	2.	The amount, shown as “Reinsurer’s Contract Limit” for the second excess layer in Schedule A attached hereto, in all during the term of this Contract.

 ARTICLE 6 - FLORIDA HURRICANE CATASTROPHE FUND 
  

	A.	The Company shall provisionally purchase mandatory and optional coverage from the FHCF with the following limits and retentions: 

 

	 	1.	90% of $182,800,000 excess of $71,300,000 (mandatory layer); 

  

	 	2.	90% of $64,500,000 excess of $254,100,000 (optional Temporary Increase in Coverage Limit). 

The provisional limits and retentions above may increase or decrease in accordance with the provisions of the reimbursement contract
between the Company and the State Board of Administration of the State of Florida (SBA). 
  

	B.	Any loss reimbursement paid or payable to the Company for the mandatory coverage layer or the optional layer coverage provided by the FHCF, (“FHCF loss
reimbursement”) and resulting from loss occurrences commencing during the term of this Contract, shall inure to the benefit of this Contract. Further, any FHCF loss reimbursement shall be deemed paid to the Company in accordance with the
reimbursement contract between the Company and the SBA at the full payout level set forth therein as respects the first and second excess layers hereof, but shall be deemed paid at 100% of the mandatory coverage layer and 100% of the optional
coverage layer as respects the third excess layer hereof. It is further deemed that any loss reimbursement shall not be reduced by any reduction or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed
funded to the fullest extent allowable by Florida statute. 

  

	C.	The Company may also purchase optional Limited Apportionment Companies coverage from the FHCF. Any loss reimbursement paid or payable to the Company for such coverage
as a result of loss occurrences commencing during the term of this Contract shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract. 

  
  

 

			
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	D.	Prior to final calculation of the Company’s FHCF retention and payout for the mandatory layer and the optional layer coverage provided by the reimbursement
contract between the Company and the SBA, the Reinsurer’s liability hereunder will provisionally be calculated based on the projected FHCF payout and in accordance with paragraph B above. Following the FHCF’s final calculation of the
payout for the coverage layers provided by the reimbursement contract, the ultimate net loss under this Contract will be recalculated. If, as a result of such calculation, the loss to the Reinsurer hereunder in any one loss occurrence is less than
the amount previously paid by the Reinsurer hereunder, the Company shall promptly remit the difference to the Reinsurer. If the loss to the Reinsurer in any one loss occurrence hereunder is greater than the amount previously paid by the Reinsurer,
the Reinsurer shall promptly remit the difference to the Company. For purposes of both the provisional and final calculation of Reinsurer liability referenced above, it is deemed that any FHCF loss reimbursement shall not be reduced by any reduction
or exhaustion of the actual claims-paying capacity of the FHCF and that the FHCF fund balance is deemed funded to the fullest extent allowable by Florida statute. 

 

	E.	If an FHCF reimbursement amount is based on the Company’s losses in more than one loss occurrence commencing during the term of this Contract, and the FHCF does
not designate the amount allocable to each loss occurrence, the FHCF reimbursement amount shall be prorated in the proportion that the Company’s losses in each loss occurrence bear to the Company’s total losses arising out of all loss
occurrences to which the FHCF reimbursement applies. 

 ARTICLE 7 - RATE AND PREMIUM 

 

	A.	As premium for each excess layer of reinsurance coverage provided by this Contract, the Company shall pay the Reinsurer the greater of the following:

  

	 	1.	The amount, shown as “Minimum Premium” for that excess layer in Schedule A attached hereto; or 

 

	 	2.	The percentage, shown as “Exposure Rate” for that excess layer in Schedule A attached hereto, of the Company’s total insured value as of
September 30, 2011 (the “adjusted premium”), subject to the provisions of paragraph D below. 

  

	B.	The Company shall pay the Reinsurer a deposit premium for each excess layer of the amount, shown as “Deposit Premium” for that excess layer in Schedule A
attached hereto, payable in installment amounts and at the dates set forth in the “Deposit Payment Schedule” for each excess layer in Schedule A attached hereto. 

 

	C.	As respects any excess layer hereunder, if the Company elects to reduce or terminate a Subscribing Reinsurer’s participation percentage in accordance with
paragraph C of the Term Article, the “Minimum Premium” as respects such excess layer shall not apply. Further, the earned reinsurance premium as otherwise determined in accordance with the provisions of subparagraph 2 of paragraph A above
as respects each excess layer shall be replaced with the following: 

  

	 	1.	In the event a loss occurs prior to the effective date of reduction or termination and the Reinsurer’s liability for such loss occurrence exceeds the “Deposit
Premium” for such excess layer, the reinsurance premium for the term of this Contract for such excess layer shall equal the “Deposit Premium” for such excess layer times the ratio the loss recoverable under such excess layer bears to
the “Reinsurer’s Per Occurrence Limit” for such excess layer. 

  
  

 

			
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	 	2.	In the event no loss occurs prior to the effective date of reduction or termination or a loss occurs whereby the Reinsurer’s liability for such loss occurrence is
less than the “Deposit Premium” applicable to such excess layer, the reinsurance premium for the term of this Contract for such excess layer shall equal the pro rata portion of the reinsurance premium otherwise due hereunder for such
excess layer based on the proportion the term of this Contract bears to the original 12-month term of this Contract. 

  

	D.	No later than April 1, 2012 (or the effective date of termination in the event this Contract is terminated prior to April 1, 2012), the Company shall provide
a report to the Reinsurer setting forth the premium due under each excess layer hereunder, computed in accordance with paragraph A or C (as applicable) above, and any amounts due either party shall be remitted promptly. However, no return premium
shall be due the Company or additional premium due the Reinsurer as respects any excess layer hereunder unless the difference between the adjusted premium for such excess layer and the deposit premium for such excess layer is greater than 5.0%.
Further, in the event the adjusted premium for any excess layer hereunder is greater than the deposit premium for such excess layer by more than 5%, the premium due hereunder for such excess layer shall be equal to the deposit premium for such
excess layer plus the difference between the adjusted premium for such excess layer and 105% of the deposit premium for such excess layer. Further, in the event the adjusted premium for any excess layer hereunder is less than the deposit premium for
such excess layer by more than 5%, the premium due hereunder for such excess layer shall be equal to the deposit premium for such excess layer less the difference between 95% of the deposit premium for such excess layer and the adjusted premium for
such excess layer. 

 ARTICLE 8 - DEFINITIONS 
  

	A.	The term “ultimate net loss” as used herein shall be defined as the sum or sums (including loss in excess of policy limits, extra contractual obligations and
loss adjustment expense, as hereinafter defined) paid or payable by the Company in settlement of claims and in satisfaction of judgments rendered on account of such claims after deduction of all salvage, all recoveries, and all claims on inuring
insurance or reinsurance, whether collectible or not. Nothing herein shall be construed to mean that losses under this Contract are not recoverable until the Company’s ultimate net loss has been ascertained. 

 

	B.	The terms “loss in excess of policy limits” and “extra contractual obligations” as used herein shall be defined as follows:

  
  

 

			
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	 	1.	“Loss in excess of policy limits” shall mean 90.0% of any amount paid or payable by the Company in excess of its policy limits, but otherwise within the terms
of its policy, such loss in excess of the Company’s policy limits having been incurred because of, but not limited to, failure by the Company to settle within the policy limits or by reason of the Company’s alleged or actual negligence,
fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution of an appeal consequent upon such an action.

  

	 	2.	“Extra contractual obligations” shall mean 90.0% of any punitive, exemplary, compensatory or consequential damages paid or payable by the Company, not covered
by any other provision of this Contract and which arise from the handling of any claim on business subject to this Contract, such liabilities arising because of, but not limited to, failure by the Company to settle within the policy limits or by
reason of the Company’s alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of an action against its insured or reinsured or in the preparation or prosecution
of an appeal consequent upon such an action. An extra contractual obligation shall be deemed, in all circumstances, to have occurred on the same date as the loss covered or alleged to be covered under the policy. 

Notwithstanding anything stated herein, this Contract shall not apply to any loss in excess of policy limits or any extra contractual
obligation incurred by the Company as a result of any fraudulent and/or criminal act by any officer or director of the Company acting individually or collectively or in collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim covered hereunder. 
 Further, any loss in excess of policy
limits and/or extra contractual obligations that are made in connection with this Contract shall not exceed 25.0% of the contractual loss under all policies involved in the loss occurrence as respects each excess layer hereunder. 

Savings Clause (Applicable only if the Subscribing Reinsurer is domiciled in the State of New York): In no event shall coverage be
provided to the extent that such coverage is not permitted under New York law. 
  

	C.	The term “loss adjustment expense” as used herein shall be defined as expenses assignable to the investigation, appraisal, adjustment, settlement, litigation,
defense, and/or appeal of claims, regardless of how such expenses are classified for statutory reporting purposes. Loss adjustment expense shall include, but not be limited to, interest on judgments, expenses of outside adjusters, expenses and a pro
rata share of salaries of the Company’s field employees and expenses of other employees of the Company who have been temporarily diverted from their normal and customary duties and assigned to the adjustment of losses covered by this Contract,
expenses of the Company’s officials incurred in connection with losses covered by this Contract, and declaratory judgment expenses or other legal expenses and costs incurred in connection with coverage questions and legal actions connected
thereto. Loss adjustment expense shall not include normal office expenses or salaries of the Company’s officials. 

  
  

 

			
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	D.	The term “declaratory judgment expense” as used herein shall be defined as the Company’s own costs and legal expense incurred in direct connection with
declaratory judgment actions brought to determine the Company’s defense and/or indemnification obligations that are assignable to specific claims arising out of policies reinsured by this Contract, regardless of whether the declaratory judgment
action is successful or unsuccessful. Any declaratory judgment expense shall be deemed to have been fully incurred by the Company on the same date as the original loss (if any) giving rise to the action. 

 

	E.	“Term of this Contract” as used herein shall be defined as the period from 12:01 a.m., Local Standard Time, June 1, 2011 through 12:01 a.m., Local
Standard Time, June 1, 2012. However, if this Contract is terminated, “term of this Contract” as used herein shall mean the period from 12:01 a.m., Local Standard Time, June 1, 2011 until the effective time and date of
termination. 

 ARTICLE 9 - LOSS OCCURRENCE DEFINITION 

 

	A.	The term “loss occurrence” shall mean the sum of all individual losses directly occasioned by any one disaster, accident or loss or series of disasters,
accidents or losses arising out of one event which occurs within the area of one state of the United States or province of Canada and states or provinces contiguous thereto and to one another. However, the duration and extent of any one loss
occurrence shall be limited to all individual losses sustained by the Company occurring during any period of 168 consecutive hours arising out of and directly occasioned by the same event except that the term loss occurrence shall be further defined
as follows: 

  

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

 

	 	2.	As regards riot, riot attending a strike, civil commotion, vandalism and malicious mischief, all individual losses sustained by the Company occurring during any period
of 96 consecutive hours within the area of one municipality or county and the municipalities or counties contiguous thereto arising out of and directly occasioned by the same event. The maximum duration of 96 consecutive hours may be extended in
respect of individual losses which occur beyond such 96 consecutive hours during the continued occupation of an assured’s premises by strikers, provided such occupation commenced during the aforesaid period. 

  
  

 

			
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	 	3.	As regards earthquake (the epicenter of which need not necessarily be within the territorial confines referred to in the opening paragraph of this Article) and fire
following directly occasioned by the earthquake, only those individual fire losses which commence during the period of 168 consecutive hours may be included in the Company’s loss occurrence. 

 

	 	4.	As regards freeze, only individual losses directly occasioned by collapse, breakage of glass and water damage (caused by bursting of frozen pipes and tanks) may be
included in the Company’s loss occurrence. 

  

	 	5.	As regards firestorms, brush fires and any other fires or series of fires, irrespective of origin (except as provided in subparagraphs 2 and 3 above), which spread
through trees, grassland or other vegetation, all individual losses sustained by the Company which occur during any period of 168 consecutive hours within the area of one state of the United States or province of Canada and states or provinces
contiguous thereto and to one another may be included in the Company’s loss occurrence. 

  

	B.	For all loss occurrences the Company may choose the date and time when any such period of consecutive hours commences provided that it is not earlier than the date and
time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident or loss and provided that only one such period of 168 consecutive hours shall apply with respect to one event, except for
any loss occurrence referred to in subparagraph 1 or 2 of paragraph A above where only one such period of 96 consecutive hours shall apply with respect to one event, regardless of the duration of the event. 

 

	C.	No individual losses occasioned by an event that would be covered by the 96 hours clauses may be included in any loss occurrence claimed under the 168 hours provision.

 ARTICLE 10 - ACCESS TO RECORDS 
 The Reinsurer or its designated representatives shall have access to the books and records of the Company on matters relating to this reinsurance at all reasonable times, and at the location where such
books and records are maintained in the ordinary course of business, for the purpose of obtaining information concerning this Contract or the subject matter thereof. Notification of a request for inspection of records shall be sent to the Company by
the Reinsurer in written form, and shall normally be given four weeks in advance. Notwithstanding the above, the Reinsurer shall not have any right of access to the records of the Company if it is not current in all undisputed payments due the
Company. 
 ARTICLE 11 - AGENCY (BRMA 73A) 
 If more than one reinsured company is named as a party to this Contract, the first named company shall be deemed the agent of the other reinsured companies for purposes of sending or receiving notices
required by the terms and conditions of this Contract, and for purposes of remitting or receiving any monies due any party. 

  
  

 

			
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 ARTICLE 12 - ARBITRATION 
  

	A.	As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising with respect to this Contract, it is
hereby mutually agreed that such dispute or difference of opinion shall be submitted to arbitration. One Arbiter shall be chosen by the Company, the other by the Reinsurer, and an Umpire shall be chosen by the two Arbiters before they enter upon
arbitration, all of whom shall be active or retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s of London Underwriters. In the event that either party should fail to choose an Arbiter within 30 days
following a written request by the other party to do so, the requesting party may choose two Arbiters who shall in turn choose an Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the selection of an Umpire within 30
days following their appointment, the two Arbiters shall request the American Arbitration Association to appoint the Umpire. If the American Arbitration Association fails to appoint the Umpire within 30 days after it has been requested to do so,
either party may request a justice of a Court of general jurisdiction of the state in which the arbitration is to be held to appoint the Umpire. 

  

	B.	Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters shall consider this Contract as an
honorable engagement rather than merely as a legal obligation and they are relieved of all judicial formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on both parties; but
failing to agree, they shall call in the Umpire and the decision of the majority shall be final and binding upon both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction.

  

	C.	If more than one reinsurer is involved in the same dispute, all such reinsurers shall constitute and act as one party for purposes of this Article and communications
shall be made by the Company to each of the reinsurers constituting one party, provided, however, that nothing herein shall impair the rights of such reinsurers to assert several, rather than joint, defenses or claims, nor be construed as changing
the liability of the reinsurers participating under the terms of this Contract from several to joint. 

  

	D.	Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the Umpire and of the arbitration. In the event
that the two Arbiters are chosen by one party, as above provided, the expense of the Arbiters, the Umpire and the arbitration shall be equally divided between the two parties. 

 

	E.	Any arbitration proceedings shall take place in Clearwater, Florida; however, the location may be changed if mutually agreed upon by the parties of this Contract.
Notwithstanding the location of arbitration, all proceedings pursuant hereto shall be governed by the law of the State of Florida. 

  
  

 

			
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 ARTICLE 13 - CONFIDENTIALITY 

 

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

  

	 	1.	Are publicly available or have become publicly available through no unauthorized act of the Reinsurer; 

 

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

 

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

 

	B.	Absent the written consent of the Company, the Reinsurer shall not disclose any confidential information to any third parties, including any affiliated companies,
except: 

  

	 	1.	When required by retrocessionaires subject to the business ceded to this Contract; 

 

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

 

	 	3.	When required by external auditors performing an audit of the Reinsurer’s records in the normal course of business; or 

 

	 	4.	When required by attorneys or arbitrators in connection with an actual or potential dispute hereunder. 

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

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

  
  

 

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

 ARTICLE 14 - CURRENCY (BRMA 12A) 
  

	A.	Whenever the word “Dollars” or the “$” sign appears in this Contract, they shall be construed to mean United States Dollars and all transactions
under this Contract shall be in United States Dollars. 

  

	B.	Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction is
entered on the books of the Company. 

 ARTICLE 15 - ENTIRE AGREEMENT 

 

	A.	This Contract and any related trust agreement, letter of credit and/or special acceptance, shall constitute the entire agreement between the parties hereto with respect
to the business reinsured hereunder, and there are no understandings between the parties hereto other than as expressed in this Contract. 

  

	B.	Any change to or modification of this Contract shall be null and void unless made by an addendum signed by both parties. 

ARTICLE 16 - ERRORS AND OMISSIONS (BRMA 14F) 

Inadvertent delays, errors or omissions made in connection with this Contract or any transaction hereunder shall not relieve either party from any
liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission is rectified as soon as possible after discovery. 
 ARTICLE 17 - FEDERAL EXCISE TAX (BRMA 17D) 
  

	A.	The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under
Section 4371 of the Internal Revenue Code) to the extent such premium is subject to the Federal Excise Tax. 

  

	B.	In the event of any return of premium becoming due hereunder, the Reinsurer will deduct the applicable percentage from the return premium payable hereon and the Company
or its agent should take steps to recover the tax from the United States Government. 

  
  

 

			
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 ARTICLE 18 - FUNDING OF RESERVES 

 

	A.	The Reinsurer agrees to fund its share of the Company’s ceded unearned premium (including but not limited to the unearned portion of any deposit premium
installment as calculated by the Company) and outstanding loss and loss adjustment expense reserves (including all case reserves plus any reasonable amount estimated to be unreported from known loss occurrences) by: 

 

	 	1.	Clean, irrevocable and unconditional letter of credit issued and confirmed, if confirmation is required by the insurance regulatory authorities involved, by a bank or
banks meeting the NAIC Securities Valuation Office credit standards for issuers of letters of credit and acceptable to said insurance regulatory authorities; and/or 

 

	 	2.	Escrow accounts for the benefit of the Company; and/or 

  

	 	3.	Cash advances; 

 if the
Reinsurer: 
  

	 	1.	Is unauthorized in any state of the United States of America or the District of Columbia having jurisdiction over the Company and if, without such funding, a penalty
would accrue to the Company on any financial statement it is required to file with the insurance regulatory authorities involved; or 

  

	 	2.	Has experienced any of the circumstances described in paragraph C of the Term Article. However, if such circumstance is rectified, then no special funding requirements
shall apply and any such current funding in accordance with the provisions above shall be released to the Reinsurer. 

 For purposes of this Contract, the Lloyd’s United States Credit for Reinsurance Trust Fund shall be considered an acceptable funding instrument. The Reinsurer, at its sole option, may fund in other
than cash if its method and form of funding are acceptable to the insurance regulatory authorities involved. 
  

	B.	If a Subscribing Reinsurer fails to fulfill its funding obligation (if any) under this Article, the Company may, at its option, require the Subscribing Reinsurer to
pay, and the Subscribing Reinsurer agrees to pay, any interest charge on the funding obligation calculated on the last business day of each month as follows: 

 

	 	1.	The number of full days that have expired since the earliest of the applicable following dates: 

 

	 	a.	As respects a Subscribing Reinsurer that is unauthorized in any state of the United States of America or District of Columbia having jurisdiction over the Company,
December 31 of the calendar year in which the funding was required; 

  
  

 

			
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	 	b.	As respects a Subscribing Reinsurer that has experienced any of the circumstances described in paragraph C of the Term Article, the first date such circumstance occurs;

 times: 
  

	 	2.	1/365ths of the sum of 2.0% and the U.S. prime rate as quoted in The Wall Street Journal on the first day of the month for which the calculation is made; times

  

	 	3.	The funding obligation, less the amount, if any, funded by the Subscribing Reinsurer prior to the applicable date determined in subparagraph 1 above.

 It is agreed that interest shall accumulate until the full interest charge amount as provided for in this
paragraph and the funding obligation are paid. 
 If the interest rate provided under this Article exceeds the maximum interest
rate allowed by any applicable law or is held unenforceable by an arbitrator or a court of competent jurisdiction, such interest rate shall be modified to the highest rate permitted by the applicable law, and all remaining provisions of this Article
and Contract shall remain in full force and effect without being impaired or invalidated in any way. 
  

	C.	With regard to funding in whole or in part by letters of credit, it is agreed that each letter of credit will be in a form acceptable to insurance regulatory
authorities involved, will be issued for a term of at least one year and will involve an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless written notice of non-renewal
is given to the Company not less than 30 days prior to said expiration date. The Company and the Reinsurer further agree, notwithstanding anything to the contrary in this Contract, that said letter of credit may be drawn upon by the Company or its
successors in interest at any time, without diminution because of the insolvency of the Company or the Reinsurer, but only for one or more of the following purposes: 

 

	 	1.	To reimburse itself for the Reinsurers’ share of losses and/or loss adjustment expense paid under the terms of policies reinsured hereunder, unless paid in cash by
the Reinsurer; 

  

	 	2.	To reimburse itself for the Reinsurer’s share of any other amounts claims to be due hereunder, unless paid in cash by the Reinsurer; 

 

	 	3.	To fund a cash account in an amount equal to the Reinsurer’s share of any ceded unearned premium and/or outstanding loss and loss adjustment expense reserves
(including all case reserves plus any reasonable amount estimated to be unreported for known loss occurrences) funded by means of a letter of credit which is under non-renewal notice, if said letter of credit has not been renewed or replaced by the
Reinsurer 10 days prior to its expiration date; 

  
  

 

			
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	 	4.	To refund to the Reinsurer any sums in excess of the actual amount required to fund the Reinsurer’s share of the Company’s ceded unearned premium and/or
outstanding loss and loss adjustment expense reserves (including all case reserves plus any reasonable amount estimated to be unreported from known loss occurrences), if so requested by the Reinsurer; and 

 

	 	5.	To reimburse itself for the Reinsurer’s portion of the unearned reinsurance premium paid to the Reinsurer hereunder. 

In the event the amount drawn by the Company on any letter of credit is in excess of the actual amount required for C(1), C(3), or C(5),
or in the case of C(2), the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. 

ARTICLE 19 - GOVERNING LAW 
 This Contract shall
be governed as to performance, administration and interpretation by the laws of the State of Florida, exclusive of the rules with respect to conflicts of law; however, with respect to credit for reinsurance, the applicable rules of all states shall
apply. 
 ARTICLE 20 - INSOLVENCY 
  

	A.	If more than one reinsured company is included within the definition of “Company” hereunder, this Article shall apply individually to each such company.

  

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

  
  

 

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

  

	C.	It is further understood and agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer
to the Company or to its liquidator, receiver or statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except (1) where this Contract specifically provides another payee or other party as more
specifically limited by any statute or regulation applicable hereto, of such reinsurance in the event of the insolvency of the Company or (2) where the Reinsurer with the consent of the direct insured or insureds has assumed such Policy
obligations of the Company as direct obligations of the Reinsurer to the payees under such Policies and in substitution for the obligations of the Company to such payees. However, the exceptions provided in (1) and (2) above shall apply
only to the extent that applicable statutes or regulations specifically permit such exceptions. 

 ARTICLE 21 - LATE PAYMENTS

  

	A.	The interest penalties provided for in this Article shall apply to the Reinsurer or to the Company in the following circumstances: 

 

	 	1.	Payments due from the Reinsurer to the Company shall have as a due date the date on which the agreed proof of loss is received by the Reinsurer, and shall be overdue 30
days thereafter. Payment to the Intermediary is deemed to be payment to the Company for purposes of this Article. 

  

	 	2.	Payments due from the Company to the Reinsurer shall have as a due date the date specified in this Contract. Payments shall be overdue 30 days thereafter. Premium
adjustments shall be overdue 30 days following the due date set forth under the terms of this Contract. 

  

	 	3.	The Company shall provide a copy of the original insured’s proof of loss, and a copy of the claim adjuster’s report(s) or other evidence of indemnification
for losses exceeding the excess limit on an incurred basis. If, subsequent to receipt of this evidence, the information contained therein is insufficient or not in accordance with the contractual conditions, then the payment due date as defined in
subparagraph 1 shall be deemed to be the date upon which the Reinsurer received additional information necessary to approve payment of the claim or the claim is presented in an acceptable manner. Interest as stipulated in subparagraph 4 shall
be payable should a disputed claim be ultimately settled and if the period set out in subparagraph 1 is exceeded, but only to the extent that the final loss payment exactly tracks with the original proof of loss. 

  
  

 

			
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	 	4.	Overdue amounts shall bear simple interest from the overdue date at the 90-day United States Treasury Bill rate set forth by the Federal Reserve Board for the first
Monday of the calendar month in which the amount becomes overdue, as published in the Federal Reserve Statistical Release. If the interest generated for 100% in respect of any overdue payment as outlined in subparagraph 1 or 2 is $500 or less, then
the interest penalty shall be waived. 

  

	 	5.	For the purposes of this Article, reinsuring Lloyd’s Underwriters shall be viewed as one entity. The provisions set forth herein shall not be applicable until the
creditor party shall have manifested to the debtor party its intent to invoke the terms of this Article. 

 ARTICLE 22 - LIABILITY
OF THE REINSURER 
  

	A.	The liability of the Reinsurer shall follow that of the Company in every case and be subject in all respects to all the general and specific stipulations, clauses,
waivers, interpretations and modifications of the Company’s policies and any endorsements thereon. However, in no event shall this be construed in any way to provide coverage outside the terms and conditions set forth in this Contract.

  

	B.	Nothing herein shall in any manner create any obligations or establish any rights against the Reinsurer in favor of any third party or any persons not parties to this
Contract. 

 ARTICLE 23 - LOSS NOTICE AND SETTLEMENTS 

 

	A.	Whenever losses sustained by the Company appear likely to result in a claim hereunder, the Company shall notify the Reinsurer, and the Reinsurer shall have the right to
participate in the adjustment of such losses at its own expense. 

  

	B.	All loss settlements made by the Company, provided they are within the terms of this Contract, shall be binding upon the Reinsurer, and the Reinsurer agrees to pay all
amounts for which it may be liable upon receipt of reasonable evidence of the amount paid (or scheduled to be paid within 14 days) by the Company. Notwithstanding the foregoing, and subject to the provisions set forth under paragraph B of the
Exclusions Article, should any judicial, regulatory, or legislative entity having legal jurisdiction require that the Company be liable for any amounts that are otherwise outside the terms of the Company’s original policies, the Reinsurer
agrees that such amounts shall be subject always to the terms and conditions of this Contract. 

  
  

 

			
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 ARTICLE 24 - NET RETAINED LINES (BRMA 32E) 

 

	A.	This Contract applies only to that portion of any policy which the Company retains net for its own account (prior to deduction of any underlying reinsurance
specifically permitted in this Contract), and in calculating the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Contract attaches, only loss or losses in respect of that portion of any policy which
the Company retains net for its own account shall be included. 

  

	B.	The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not be increased by reason of the inability of the Company to collect from
any other reinsurer(s), whether specific or general, any amounts which may have become due from such reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s) or otherwise. 

ARTICLE 25 - NON-WAIVER 
 The failure of the
Company or the Reinsurer to insist on compliance with this Contract or to exercise any right or remedy hereunder shall not constitute a waiver of any rights or remedies contained herein nor stop either party from thereafter demanding full and
complete compliance nor prevent either party from exercising such rights or remedies in the future. 
 ARTICLE 26 - NOTICES AND CONTRACT
EXECUTION 
  

	A.	Whenever a notice, statement, report or any other written communication is required by this Contract, unless otherwise specified, such notice, statement, report or
other written communication may be transmitted by certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices of termination, first
class mail is also acceptable. 

  

	B.	The use of any of the following shall constitute a valid execution of this Contract or any amendments thereto: 

 

	 	1.	Paper documents with an original ink signature; 

  

	 	2.	Facsimile or electronic copies of paper documents showing an original ink signature; and/or 

 

	 	3.	Electronic records with an electronic signature made via an electronic agent. For the purposes of this Contract, the terms “electronic record,”
“electronic signature” and “electronic agent” shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto. 

  
  

 

			
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	C.	This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

ARTICLE 27 - OFFSET (BRMA 36E) 
 The Company and
the Reinsurer, each at its option, may offset any balance or balances, whether on account of premiums, claims and losses, loss adjustment expenses or salvages due from one party to the other under this Contract or under any other reinsurance
agreement heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or as ceding company; provided, however, that in the event of the insolvency of a party hereto, offsets shall only be allowed
in accordance with applicable statutes and regulations. 
 ARTICLE 28 - OTHER REINSURANCE 

The Company shall be permitted to carry other reinsurance, recoveries under which shall inure solely to the benefit of the Company and be entirely
disregarded in applying all of the provisions of this Contract. 
 ARTICLE 29 - SALVAGE AND SUBROGATION 

The Reinsurer shall be credited with salvage (i.e., reimbursement obtained or recovery made by the Company, less the actual cost, excluding salaries of
officials and employees of the Company and sums paid to attorneys as a retainer, of obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. Salvage thereon shall always be used to
reimburse the excess carriers in the reverse order of their priority according to their participation before being used in any way to reimburse the Company for its primary loss. The Company hereby agrees to enforce its rights to salvage and
subrogation relating to any loss, a part of which loss was sustained by the Reinsurer, and to prosecute all claims arising out of such rights if, in the Company’s opinion, it is economically reasonable to do so. Should the Company neglect or
refuse to enforce such rights, the Reinsurer is hereby empowered and authorized to institute the appropriate action in the name of the Company, at the Reinsurer’s expense. 
 ARTICLE 30 - SERVICE OF SUIT 
 (Applicable if the Reinsurer is not domiciled in the United States
of America, and/or is not authorized in any State, Territory, or District of the United States where authorization is required by insurance regulatory authorities) 
  

	A.	This Article will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in the Arbitration Article. This
Article is intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Contract. 

  
  

 

			
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	B.	In the event the Reinsurer fails to pay any amount claimed to be due hereunder or fails to otherwise perform its obligations hereunder, the Reinsurer, at the request of
the Company, will submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to commence an action in
any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The
Reinsurer, once the appropriate Court is accepted by the Reinsurer or is determined by removal, transfer or otherwise, as provided for above, will comply with all requirements necessary to give said Court jurisdiction and, in any suit instituted
against any of the Subscribing Reinsurers upon this Contract, will abide by the final decision of such Court or of any Appellate Court in the event of an appeal. 

 

	C.	Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereby designates the party
named in its Interests and Liabilities Contract, or if no party is named therein, the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as its
true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of this Contract. 

ARTICLE 31 - SEVERABILITY (BRMA 72E) 
 If any
provision of this Contract shall be rendered illegal or unenforceable by the laws, regulations or public policy of any state, such provision shall be considered void in such state, but this shall not affect the validity or enforceability of any
other provision of this Contract or the enforceability of such provision in any other jurisdiction. 
 ARTICLE 32 - TAXES 

In consideration of the terms under which this Contract is issued, the Company will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of the United States of America or the District of Columbia. 

ARTICLE 33 - TERRITORY 
 The liability of the
Reinsurer shall be limited to losses under policies covering property located within the territorial limits of the State of Florida; but this limitation shall not apply to moveable property if the Company’s policies provide coverage when said
moveable property is outside the aforementioned territorial limits. 

  
  

 

			
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 ARTICLE 34 - INTERMEDIARY (BRMA 23A) 
 TigerRisk Partners LLC is hereby recognized as the Intermediary negotiating this Contract for all business hereunder. All communications (including, but not limited to, notices, statements, premium,
return premium, commissions, taxes, losses, loss adjustment expense, salvages and loss settlements) relating thereto shall be transmitted to the Company or the Reinsurer through TigerRisk Partners LLC, 7601 France Avenue South, Suite 200, Edina, MN
55435. Payments by the Company to the Intermediary shall be deemed to constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to constitute payment to the Company only to the extent that such payments are
actually received by the Company. 
 IN WITNESS WHEREOF, the Company has confirmed its review of the Interests and Liabilities
Agreement(s) attached to and forming part of this Contract and its agreement to be bound by the terms and conditions thereof, and has executed this Contract by its duly authorized representative on: 

this                      day of
                                    , in the year
                . 
  

	
	  
	HOMEOWNERS CHOICE PROPERTY & CASUALTY
	INSURANCE COMPANY (for and on behalf of the “Company”)

  
  

 

			
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 SCHEDULE A 
 EXCESS CATASTROPHE 
 REINSURANCE CONTRACT 

EFFECTIVE: June 1, 2011 
 issued to 
 HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY

 Clearwater, Florida 
  

							
	 	  	 First Excess
 Layer
	 	 Second Excess
 Layer
	 	 Third Excess
 Layer

	 Company’s Retention
	  	$19,300,000	 	$45,300,000	 	$71,300,000
	 Reinsurer’s Per Occurrence Limit
	  	$26,000,000	 	$26,000,000	 	$16,800,000
	 Reinsurer’s Contract Limit
	  	$26,000,000	 	$52,000,000	 	$16,800,000
	 Minimum Premium
	  	$ ******	 	$ ******	 	$ ******
	 Deposit Premium
	  	$ ******	 	$ ******	 	$ ******
	 Deposit Payment Schedule
	  	$ ******
payable on June 1,
2011; $******
payable on
October 1, 2011	 	$ ******
payable on June 1
and September 1,
2011, and
January 1 and
April 1, 2012	 	$ ******
payable on June 1
and September 1,
2011, and
January 1 and
April 1, 2012
	 Exposure Rate
	  	******%	 	******%	 	******%

 The figures listed above for each excess layer shall apply to each Subscribing Reinsurer in the percentage share for that
excess layer expressed in its Interests and Liabilities Contract attached hereto. 

  
  

 

			
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 NUCLEAR INCIDENT EXCLUSION CLAUSE-PHYSICAL DAMAGE-REINSURANCE (U.S.A.) 

 

	1.	This Reinsurance does not cover any loss or liability accruing to the Reassured, directly or indirectly and whether as Insurer or Reinsurer, from any Pool of Insurers
or Reinsurers formed for the purpose of covering Atomic or Nuclear Energy risks. 

  

	2.	Without in any way restricting the operation of paragraph (1) of this Clause, this Reinsurance does not cover any loss or liability accruing to the Reassured,
directly or indirectly and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including business interruption or consequential loss arising out of such Physical Damage) to: 

 

	 	I.	Nuclear reactor power plants including all auxiliary property on the site, or 

 

	 	II.	Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and “critical
facilities” as such, or 

  

	 	III.	Installations for fabricating complete fuel elements or for processing substantial quantities of “special nuclear material”, and for reprocessing, salvaging,
chemically separating, storing or disposing of “spent” nuclear fuel or waste materials, or 

  

	 	IV.	Installations other than those listed in paragraph (2) III above using substantial quantities of radioactive isotopes or other products of nuclear fission.

  

	3.	Without in any way restricting the operations of paragraphs (1) and (2) hereof, this Reinsurance does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance on property which is on the same site as a nuclear reactor power plant or other nuclear installation and which normally would be
insured therewith except that this paragraph (3) shall not operate 

  

	 	(a)	where Reassured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

 

	 	(b)	where said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused. However on
and after 1st January 1960 this sub-paragraph (b) shall only apply provided the said radioactive contamination exclusion provision has been approved by the Governmental Authority having jurisdiction thereof. 

 

	4.	Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this Reinsurance does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive contamination is a named hazard specifically insured against. 

 

	5.	It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the
Reassured to be the primary hazard. 

  

	6.	The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act of 1954 or by any law amendatory thereof.

  

	7.	Reassured to be sole judge of what constitutes: 

  

	 	(a)	substantial quantities, and 

  

	 	(b)	the extent of installation, plant or site. 

  
  

 

			
	Effective: June 1, 2011	 	

	 	Note.	- Without in any way restricting the operation of paragraph (1) hereof, it is understood and agreed that 

 

	 	(a)	all policies issued by the Reassured on or before 31st December 1957 shall be free from the application of the other provisions of this Clause until expiry date or
31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. 

  

	 	(b)	with respect to any risk located in Canada policies issued by the Reassured on or before 31st December 1958 shall be free from the application of the other
provisions of this Clause until expiry date or 31st December 1960 whichever first occurs whereupon all the provisions of this Clause shall apply. 

 12/12/57 
 N.M.A. 1119 
 BRMA 35B 

  
  

 

			
	Effective: June 1, 2011

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