Document:

Consulting Agreement

 Exhibit 10.5 
 CONSULTING AGREEMENT 
 THIS CONSULTING AGREEMENT (this “Agreement”) is made
and entered into effective as of June 1, 2007 (the “Effective Date”), by and between HOMEOWNERS CHOICE, INC., a Florida corporation (the “Company”), and SCORPIO SYSTEMS, INC., a Florida
corporation, whose address is 1520 Gulf Blvd, Suite 1706, Clearwater, Florida 33767 (the “Consultant”). 
 RECITALS 

 WHEREAS, upon the terms and conditions set forth in this Agreement, the Company desires to engage the Consultant to provide
consulting services to the Company; and 
 WHEREAS, the Consultant desires to provide consulting services to the Company upon the
terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing recitals and for other good and
valuable consideration, the parties hereto covenant and agree as follows: 
 1. Consulting Engagement. The Company hereby
engages the Consultant to provide consulting services to the Company, and the Consultant hereby accepts such engagement, upon the terms and conditions set forth in this Agreement. The consulting services to be provided by the Consultant hereunder
will be provided on an as-needed basis (as requested by the Company, in its discretion), and such consulting services will consist of the provision of advice, information, and consultation regarding the insurance business, particularly as it relates
to the Company’s business (collectively, the “Consulting Services”). To the extent that the Company shall have any parent company, subsidiaries, affiliated corporations, partnerships, or joint ventures (collectively
“Related Entities”), the Consultant shall, without additional compensation, perform the Consulting Services for these entities to the same extent as for the Company. 
 2. Term. Subject to the terms and conditions of this Agreement, including, but not limited to, the provisions for early termination set
forth in Section 5 hereof, the consulting engagement of the Consultant under this Agreement shall commence on the Effective Date and shall continue thereafter on a month to month basis (each month a “Consulting Term”).

 3. Independent Contractor. At all times during the Consultant’s engagement, the Consultant will act as an independent
contractor. The Consultant will not be considered an employee of the Company for any purpose and will not be entitled to any of the benefits that the Company may provide for its employees. Moreover, it is expressly agreed by the parties that no
agency relationship is, or will be deemed to have been, created by this Agreement, and no party will by reason of this Agreement have the power or authority to bind any other party contractually or otherwise. The Consultant will be solely
responsible for the payment and reporting of any and all federal and state taxes and withholdings due on amounts paid hereunder, and Company will not withhold any amounts for federal, state or local income taxes or taxes, assessments or withholding
liabilities, and the Consultant will indemnify and hold Company harmless from and against any costs, damages or liabilities relating to any such taxes, assessments 

 
or withholdings. In addition to the foregoing, nothing set forth in this Agreement shall be construed as creating a partnership or joint venture between the
Consultant and the Company. 
 4. Consulting Fee. 
 (a) Fee. As compensation for Consultant’s services and in consideration for the Consultant’s covenants contained in this Agreement, the Company shall pay the Consultant Twelve Thousand and NO/100
Dollars ($12,000.00) per month until this Agreement is terminated (the “Consulting Fee”). The Consulting Fee shall be payable on the first day of each month, and Consultant agrees that the Consulting Fee is in exchange for the
Consultant’s services. 
 (b) Reimbursement of Expenses. The Consultant shall be reimbursed for all reasonable and customary
travel and other business expenses incurred by the Consultant and approved by the Company in connection with the performance of Consultant’s duties hereunder, provided that such reimbursement shall be subject to, and in accordance with, any
travel policies, expense reimbursement policies and/or expense documentation requirements of the Company that may be in effect from time to time. 
 5. Termination. 
 (a) Change in Control of Consultant. The Consulting Term shall terminate early if Paresh
Patel dies, becomes incapacitated or fails to own a controlling interest in the Consultant. 
 (b) Termination By Company or
Consultant. Either party may, prior to the scheduled expiration of the Consulting Term, terminate the Consulting Term at any time without cause and without penalty, provided that at least fifteen (15) days’ prior written notice of
termination is provided by the terminating party to the non-terminating party. In the event of a termination pursuant to this Section 5(b), the Consultant shall be entitled to receive any unpaid Consulting Fees owing to Consultant up through
and including the effective date of the termination of the Consulting Term. 
 6. Nonsolicitation and Nondisclosure Covenants.

 (a) Rationale for Restrictions. Consultant acknowledges that the Consulting Services to be provided hereunder are of a special,
unique, and extraordinary character, and Consultant’s engagement by the Company places Consultant in a position of confidence and trust with customers, suppliers, and other persons and entities with whom the Company and its Related Entities
have a business relationship. The Consultant further acknowledges that the rendering of services under this Agreement will likely require the disclosure to Consultant of Confidential Information (as defined below) relating to the Company and/or
Related Entities. As a consequence, the Consultant agrees that it is reasonable and necessary for the protection of the goodwill and legitimate business interests of the Company and Related Entities that the Consultant make the covenants contained
in this Section 6, that such covenants are a material inducement for the Company to engage the Consultant and to enter into this Agreement, and that the covenants are given as an integral part of and incident to this Agreement. 
  

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 (b) Extension of Provisions to Officers and Directors. Consultant acknowledges and agrees that the
covenants contained in this Section 6 extend to any and all officers, directors, employees or agents of the Consultant. 
 (c) Nonsolicitation Covenants. As used herein, the term “Restrictive
Period” means the time period commencing on the Effective Date of this Agreement and ending on the first (1st) anniversary of the date
on which the Consulting Term expires or is terminated. In addition, the term “Covered Business” means any business which is the same as, or similar to, any business conducted by the Company or any of the Related Entities at any time
during the Restrictive Period. The Consultant agrees that the Consultant will not engage in any of the following acts anywhere in the United States during the Restrictive Period: 
  

	 	(i)	directly or indirectly assist, promote or encourage any existing or potential employees of the Company or any Related Entity, as well as any other parties which have a business
relationship with the Company or a Related Entity, to terminate, discontinue, or reduce the extent of their relationship with the Company or a Related Entity. For purposes of this section, potential employees shall mean those individuals which the
Company has contacted regarding a position with the Company and the Company is currently engaged in conversations with regarding such position, including any persons who have submitted resumes or scheduled interviews with the Company;

  

	 	(ii)	solicit business of the same or similar type as a Covered Business, from any person or entity known by the Consultant to be a policy holder of the Company, whether or not the
Consultant had contact with such person or entity during the Consultant’s engagement by the Company; 

  

	 	(iii)	disparage the Company, any Related Entities, and/or any shareholder, director, officer, employee, or agent of the Company or any Related Entity; and/or 

  

	 	(iv)	engage in any practice the purpose of which is to evade the provisions of this Section 6 or commit any act which adversely affects the Company, any Related Entity, or their
respective businesses. 

 The Consultant acknowledges and agrees that, in light of the unique nature of the Company’s business, the
Company will market its products on a nationwide basis and will compete with various companies and businesses across the country. Accordingly, the Consultant agrees that the geographic scope of the above covenants is a reasonable means of protecting
the Company’s (and the Related Entities’) legitimate business interests. 
 (d) Disclosure of Confidential Information. For
purposes of this Agreement, the term “Confidential Information” shall mean any data of the Company which is not ordinarily known by non-Company personnel, including but not limited to the following information and data –
customer lists, research and development, equipment, systems technologies, trade secrets, pricing policy, technical data and such information normally understood to be confidential or 

  

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otherwise designated as such by the Company. The Consultant recognizes and acknowledges that disclosure or dissemination to any third party of any
Confidential Information of the other party could result in substantial damages being incurred by the Company and/or its affiliates, principals, employees or customers. The Consultant hereby covenants and agrees that it will not, directly or
indirectly, disclose, disseminate, publish, or permit the disclosure, dissemination or publication of any or all of the terms and conditions of any Confidential Information of the Company, to or for any other person, group, firm, corporation,
association or other entity for any purposes whatsoever, without the prior written consent of the Company and without such other person, group, firm, corporation, association or other entity first entering into a separate Nondisclosure of
Confidential Information Agreement in a form agreed to by the Company. 
 (e) Prevention of Premature Disclosure of Information. The
Consultant agrees and acknowledges that, because the success of the Company is heavily dependent upon maintaining the secrecy of the Company’s Confidential Information and preventing the premature public disclosure of the Company’s
proprietary information and technology, the Consultant agrees to use the Consultant’s best efforts and his highest degree of care, diligence, and prudence to ensure that no Confidential Information prematurely leaks or otherwise prematurely
makes its way into the public domain or any public forum, including, without limitation, into any trade publications, internet chat rooms, or other similar forums. In the event that the Consultant becomes aware of any premature leak of Confidential
Information or becomes aware of any circumstances creating a risk of such a leak, the Consultant shall immediately inform the Company of such leak or of such circumstances. 
 (f) Removal and Return of Proprietary Items. The Consultant will not remove from the Company’s premises (except to the extent such removal is
for purposes of the performance of the Consulting Services at home or while traveling, or except as otherwise specifically authorized by the Company) any document, record, notebook, plan, model, component, device, or computer software or code,
whether embodied in a disk or in any other form (collectively, the “Proprietary Items”). The Consultant recognizes that, as between the Company and the Consultant, all of the Proprietary Items, whether or not developed by the
Consultant, are the exclusive property of the Company. Upon expiration or termination of the Consulting Term, or upon the request of the Company during the Consulting Term, the Consultant will return to the Company all of the Proprietary Items in
the Consultant’s possession or subject to the Consultant’s control, and the Consultant shall not retain any copies, abstracts, sketches, or other physical embodiment of any of the Proprietary Items. 
 (g) Enforcement and Remedies. In the event of any breach of any of the covenants set forth in this Section 6, the Consultant recognizes that
the remedies at law will be inadequate and that in addition to any relief at law which may be available to the Company for such violation or breach and regardless of any other provision contained in this Agreement, the Company shall be entitled to
equitable remedies (including an injunction) and such other relief as a court may grant after considering the intent of this Section 6. Additionally, the period of time applicable to any covenant set forth in this Section 6 will be
extended by the duration of any violation by the Consultant of such covenant. In the event a court of competent jurisdiction determines that any of the covenants set forth in this Section 6 are excessively broad as to duration, geographic
scope, prohibited activities or otherwise, the 

  

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parties agree that this covenant shall be reduced or curtailed to the extent, but only to the extent, necessary to render it enforceable. 
 7. Essential and Independent Covenants. The Consultant’s covenants in Section 6 of this Agreement are independent covenants, and
the existence of any claim by the Consultant against the Company under this Agreement or otherwise will not excuse the Consultant’s breach of any covenant in Section 6. 
 8. Representations and Warranties by The Consultant. The Consultant represents and warrants to the Company that the execution and delivery
by the Consultant of this Agreement do not, and the performance by the Consultant of the Consultant’s obligations hereunder will not, with or without the giving of notice or the passage of time, or both: (a) violate any judgment, writ,
injunction, or order of any court, arbitrator, or governmental agency applicable to the Consultant, or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement to which the
Consultant is a party or by which the Consultant is or may be bound, including, without limitation, any noncompetition agreement or similar agreement. 
 9. Notices. For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when hand-delivered, sent by facsimile
transmission (as long as receipt is acknowledged), or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the address or facsimile number for each party set forth on the signature page
hereto, or to such other address or facsimile number as either party may have furnished to the other in writing in accordance herewith, except that a notice of change of address shall be effective only upon receipt. 
 10. Miscellaneous. No provision of this Agreement may be modified or waived unless such waiver or modification is agreed to in writing
signed by both of the parties hereto. No waiver by any party hereto of any breach by any other party hereto shall be deemed a waiver of any similar or dissimilar term or condition at the same or at any prior or subsequent time. This Agreement is the
entire agreement between the parties hereto with respect to the Consultant’s engagement by the Company, and there are no agreements or representations, oral or otherwise, expressed or implied, with respect to or related to the engagement of the
Consultant which are not set forth in this Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Company, its respective successors and assigns, and the Consultant and Consultant’s heirs, executors, administrators
and legal representatives. The duties and covenants of the Consultant under this Agreement, being personal, may not be delegated or assigned by the Consultant without the prior written consent of the Company, and any attempted delegation or
assignment without such prior written consent shall be null and void and without legal effect. The parties agree that if any provision of this Agreement shall under any circumstances be deemed invalid or inoperative, the Agreement shall be construed
with the invalid or inoperative provision deleted and the rights and obligations of the parties shall be construed and enforced accordingly. 
  

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 11. Governing Law; Resolution of Disputes. The validity, interpretation, construction, and
performance of this Agreement shall be governed by the laws of the State of Florida without regard to principles of choice of law or conflicts of law thereunder. Any action or proceeding seeking to enforce any provision of, or based on any right
arising out of, this Agreement may be brought against either of the parties in the courts of the State of Florida, County of Hillsborough, or, if it has or can acquire jurisdiction, in the United States District Court located in Hillsborough County,
Florida, and each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to
in the preceding sentence may be served on either party anywhere in the world. THE PARTIES HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION ARISING UNDER OR RELATING TO THIS AGREEMENT. 
 12. Counterparts; Facsimile Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. This Agreement may be effective upon the execution and delivery by any party hereto of facsimile copies of signature pages hereto duly executed by such party;
provided, however, that any party delivering a facsimile signature page covenants and agrees to deliver promptly after the date hereof two (2) original copies to the other party hereto. 
 [Signature Page to Immediately Follow] 
  

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

			
	 COMPANY:
  

	 HOMEOWNERS CHOICE, INC., a Florida corporation
  

		
	By:	 	/s/ Frank McCahill III
		 	Frank McCahill III, CEO
	  
 Homeowners Choice, Inc.
 145 NW Central Park Plaza
 Suite 110
 Port St. Lucie, Florida 34986
 Facsimile Number:
(772) 204-9399
  

	 CONSULTANT:
  

	 SCORPIO SYSTEMS, INC., a Florida corporation
  

		
	By:	 	/s/ Paresh Patel
		 	Paresh Patel, President
	  
 Address and Facsimile Number:
  
 1520 Gulf Blvd
 Suite 1706
 Clearwater, Florida 33767
 Facsimile Number:
[                            ]

  

 72007 Stock Option and Incentive Plan

 Exhibit 10.6 
 HOMEOWNERS CHOICE, INC. 
 2007 Stock Option and Incentive Plan 
 1. Purpose and Eligibility 
 The purpose of
this 2007 Stock Option and Incentive Plan (the “Plan”) of Homeowners Choice, Inc. (the “Company”) is to provide stock options and other equity interests in the Company (each an “Award”) to
employees, officers, directors, consultants and advisors of the Company and its Subsidiaries, all of whom are eligible to receive Awards under the Plan. Any person to whom an Award has been granted under the Plan is called a
“Participant”. Additional definitions are contained in Section 8. 
 2. Administration 
 a. Administration by Board of Directors. The Plan will be administered by the Board of Directors of the Company (the
“Board”). The Board, in its sole discretion, shall have the authority to grant and amend Awards, to adopt, amend and repeal rules relating to the Plan and to interpret and correct the provisions of the Plan and any Award. All
decisions by the Board shall be final and binding on all interested persons. Neither the Company nor any member of the Board shall be liable for any action or determination relating to the Plan. 
 b. Appointment of Committees. To the extent permitted by applicable law, the Board may delegate any or all of its powers under
the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean such Committee or the Board. 
 c. Delegation to Executive Officers. To the extent permitted by applicable law, the Board may delegate to one or more
executive officers of the Company the power to grant Awards and exercise such other powers under the Plan as the Board may determine, provided that the Board shall fix the maximum number of Awards to be granted and the maximum number of
shares issuable to any one Participant pursuant to Awards granted by such executive officers. 
 3. Stock Available for Awards 
 a. Number of Shares. Subject to adjustment under Section 3(b), the aggregate number of shares of Common Stock of the
Company (the “Common Stock”) that may be issued pursuant to the Plan is fifteen million (15,000,000) shares. If any Award expires, or is terminated, surrendered or forfeited, in whole or in part, the unissued Common Stock
covered by such Award shall again be available for the grant of Awards under the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased by, or are surrendered or forfeited to, the Company at no more than cost, such shares of
Common Stock shall again be available for the grant of Awards under the Plan; provided, however, that the cumulative number of such shares that may be so reissued under the Plan will not exceed fifteen million (15,000,000) shares. Shares
issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 

 b. Adjustment to Common Stock. In the event of any stock split, stock
dividend, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off, split-up, or other similar change in capitalization or event, (i) the number and class of
securities available for Awards under the Plan and the per-Participant share limit, (ii) the number and class of securities, vesting schedule and exercise price per share subject to each outstanding Option, (iii) the repurchase price per
security subject to repurchase, and (iv) the terms of each other outstanding stock-based Award shall be adjusted by the Company (or substituted Awards may be made) to the extent the Board shall determine, in good faith, that such an adjustment
(or substitution) is appropriate. 
 4. Stock Options 
 a. General. The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number
of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option and the Common Stock issued upon the exercise of each Option, including vesting
provisions, repurchase provisions and restrictions relating to applicable federal or state securities laws, as it considers advisable. 
 b. Incentive Stock Options. An Option that the Board intends to be an “incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall be
granted only to employees of the Company and shall be subject to and shall be construed consistently with the requirements of Section 422 of the Code. The maximum aggregate number of shares of Common Stock which may be issued under this Plan as
Incentive Stock Options is fifteen million (15,000,000), subject to adjustment under Section 3(c). The Board and the Company shall have no liability if an Option or any part thereof that is intended to be an Incentive Stock Option does not
qualify as such. An Option or any part thereof that does not qualify as an Incentive Stock Option is referred to herein as a “Nonstatutory Stock Option.” 
 c. Exercise Price. The Board shall establish the exercise price (or determine the method by which the exercise price shall be
determined) at the time each Option is granted and specify it in the applicable option agreement. 
 d. Duration of
Options. Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement. 
 e. Exercise of Option. Options may be exercised only by delivery to the Company of a written notice of exercise signed by the
proper person together with payment in full as specified in Section 4(f) for the number of shares for which the Option is exercised. 
 f. Payment Upon Exercise. Common Stock purchased upon the exercise of an Option shall be paid for by one or any combination of the following forms of payment: 
 i. by check payable to the order of the Company; 
  

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 ii. except as otherwise explicitly provided in the applicable option agreement, and only
if the Common Stock is then publicly traded, delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery by the Participant to the
Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price; or 
 iii. to the extent explicitly provided in the applicable option agreement, by (a) delivery of shares of Common Stock owned by the
Participant valued at fair market value (as determined by the Board or as determined pursuant to the applicable option agreement), (b) delivery of a promissory note of the Participant to the Company (and delivery to the Company by the
Participant of a check in an amount equal to the par value of the shares purchased), or (c) payment of such other lawful consideration as the Board may determine. 
 5. Restricted Stock 
 a. Grants. The Board may grant Awards entitling recipients
to acquire shares of Common Stock, subject to (i) delivery to the Company by the Participant of a check in an amount at least equal to the par value of the shares purchased, and (ii) the right of the Company to repurchase all or part of
such shares at their issue price or other stated or formula price from the Participant in the event that conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a “Restricted Stock Award”). 
 b. Terms and
Conditions. The Board shall determine the terms and conditions of any such Restricted Stock Award. Any stock certificates issued in respect of a Restricted Stock Award shall be registered in the name of the Participant and, unless otherwise
determined by the Board, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). After the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the
certificates no longer subject to such restrictions to the Participant or, if the Participant has died, to the beneficiary designated by a Participant, in a manner determined by the Board, to receive amounts due or exercise rights of the Participant
in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall mean the Participant’s estate. 
 6. Other Stock-Based Awards 
 The Board shall
have the right to grant other Awards based upon the Common Stock having such terms and conditions as the Board may determine, including, without limitation, the grant of shares based upon certain conditions, the grant of securities convertible into
Common Stock and the grant of stock appreciation rights, phantom stock awards or stock units. 
  

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 7. General Provisions Applicable to Awards 
 a. Transferability of Awards. Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold,
assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees. 
 b. Documentation. Each Award under the Plan shall be evidenced by a written instrument in such form as the Board shall
determine or as executed by an officer of the Company pursuant to authority delegated by the Board. Each Award may contain terms and conditions in addition to those set forth in the Plan provided that such terms and conditions do not
contravene the provisions of the Plan. 
 c. Board Discretion. The terms of each type of Award need not be
identical, and the Board need not treat Participants uniformly. 
 d. Termination of Status. The Board shall
determine the effect on an Award of the disability, death, retirement, authorized leave of absence or other change in the employment or other status of a Participant and the extent to which, and the period during which, the Participant, or the
Participant’s legal representative, conservator, guardian or Designated Beneficiary, may exercise rights under the Award. 
 e. Consolidations or Mergers. If the Company is to be consolidated with or acquired by another entity in a merger or other reorganization in which the holders of the outstanding voting stock of the Company immediately preceding
the consummation of such event, shall, immediately following such event, hold, as a group, less than a majority of the voting securities of the surviving or successor entity, or in the event of a sale of all or substantially all of the
Company’s assets or otherwise (each, an “Acquisition”), the Board or the board of directors of any entity assuming the obligations of the Company hereunder (as used in this Section 7(e), also the “Board”),
shall, as to outstanding Options, either (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the shares then subject to such Options either (a) the consideration payable with
respect to the outstanding shares of Common Stock in connection with the Acquisition, (b) shares of stock of the surviving or successor corporation or (c) such other securities as the Board deems appropriate, the fair market value of which
shall not materially exceed the fair market value of the shares of Common Stock subject to such Options immediately preceding the Acquisition; or (ii) upon written notice to the Participants, provide that all Options must be exercised, to the
extent then exercisable or to be exercisable as a result of the Acquisition, within a specified number of days of the date of such notice, at the end of which period the Options shall terminate; or (iii) terminate all Options in exchange for a
cash payment equal to the excess of the fair market value of the shares subject to such Options (to the extent then exercisable or to be exercisable as a result of the Acquisition) over the exercise price thereof. 
 f. Withholding. Each Participant shall pay to the Company, or make provisions satisfactory to the Company for payment of, any
taxes required by law to be 

  

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withheld in connection with Awards to such Participant no later than the date of the event creating the tax liability. The Board may allow Participants to
satisfy such tax obligations in whole or in part by transferring shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their fair market value (as determined by the Board or as determined pursuant to
the applicable option agreement). The Company may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a Participant. 
 g. Amendment of Awards. The Board may amend, modify or terminate any outstanding Award including, but not limited to,
substituting therefor another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that, the Participant’s consent to such
action shall be required unless the Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant. 
 h. Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the
Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other
legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has
executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 
 i. Acceleration. The Board may at any time provide that any Options shall become immediately exercisable in full or in part,
that any Restricted Stock Awards shall be free of some or all restrictions, or that any other stock-based Awards may become exercisable in full or in part or free of some or all restrictions or conditions, or otherwise realizable in full or in part,
as the case may be, despite the fact that the foregoing actions may (i) cause the application of Sections 280G and 4999 of the Code if a change in control of the Company occurs, or (ii) disqualify all or part of the Option as an Incentive
Stock Option. 
 8. Miscellaneous 
 a. Definitions. 
 i. “Company,” for purposes of eligibility under the
Plan, shall include any present or future subsidiary corporations of Homeowners Choice, Inc., as defined in Section 424(f) of the Code (a “Subsidiary”), and any present or future parent corporation of Homeowners Choice, Inc.,
as defined in Section 424(e) of the Code. For purposes of Awards other than Incentive Stock Options, the term “Company” shall include any other business venture in which the Company has a direct or indirect significant
interest, as determined by the Board in its sole discretion. 
  

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 ii. “Code” means the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder. 
 iii. “employee” for purposes of eligibility under the Plan (but not
for purposes of Section 4(b)) shall include a person to whom an offer of employment has been extended by the Company. 
 b. No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan. 
 c. No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall
have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming the record holder thereof. 
 d. Effective Date and Term of Plan. The Plan shall become effective on the date on which it is adopted by the Board. No Awards
shall be granted under the Plan after the completion of ten years from the date on which the Plan was adopted by the Board, but Awards previously granted may extend beyond that date. 
 e. Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time. 
 f. Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance
with the laws of the State of Florida, without regard to any applicable conflicts of law. 
  

	
	 Adopted by the Board of Directors on
 April 30, 2007

	
	 Approved by the stockholders on
 April 30,
2007

  

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