Document:

Contract

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 Exhibit 10.17 

HERITAGE PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 

SIXTH PROPERTY CATASTROPHE 

EXCESS OF LOSS REINSURANCE CONTRACT 

*[***]: Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 TABLE OF CONTENTS 

 

					
	 ARTICLE
	 	 	  	 PAGE

	 I
	 	BUSINESS COVERED	  	1
	 II
	 	TERM	  	1
	 III
	 	SPECIAL TERMINATION AND OTHER REMEDIES	  	2
	 IV
	 	DEFINITIONS	  	5
		 	 Declaratory Judgment Expense
	  	5
		 	 Extra Contractual Obligations/Loss in Excess of Policy Limits
	  	6
		 	 Loss Adjustment Expense
	  	6
		 	 Loss Occurrence
	  	7
		 	 Policy
	  	8
		 	 Renewed
	  	8
		 	 Ultimate Net Loss
	  	8
	 V
	 	TERRITORY	  	9
	 VI
	 	EXCLUSIONS	  	9
	 VII
	 	SPECIAL ACCEPTANCES	  	10
	 VIII
	 	COVERAGE	  	11
	 IX
	 	REINSURANCE PREMIUM	  	11
	 X
	 	FLORIDA HURRICANE CATASTROPHE FUND	  	12
	 XI
	 	OTHER REINSURANCE	  	13
	 XII
	 	NET RETAINED LINES	  	14
	 XIII
	 	NOTICE OF LOSS AND LOSS SETTLEMENTS	  	15
	 XIV
	 	LATE PAYMENTS	  	15
	 XV
	 	SALVAGE AND SUBROGATION	  	16
	 XVI
	 	DELAYS, OMISSIONS, OR ERRORS	  	17
	 XVII
	 	LIABILITY OF THE REINSURER	  	17
	 XVIII
	 	ENTIRE AGREEMENT	  	17
	 XIX
	 	OFFSET	  	17
	 XX
	 	CURRENCY	  	18
	 XXI
	 	TAXES	  	18
	 XXII
	 	FEDERAL EXCISE TAX	  	18
	 XXIII
	 	RESERVES AND FUNDING	  	18
	 XXIV
	 	THIRD PARTY RIGHTS	  	21
	 XXV
	 	REINSURANCE ALLOCATION    	  	21

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

					
	 XXVI
	 	SEVERABILITY	  	22
	 XXVII
	 	SANCTIONS	  	22
	 XXVIII
	 	GOVERNING LAW	  	22
	 XXIX
	 	ACCESS TO RECORDS	  	23
	 XXX
	 	CONFIDENTIALITY	  	24
	 XXXI
	 	INSOLVENCY	  	25
	 XXXII
	 	ARBITRATION	  	26
	 XXXIII
	 	SERVICE OF SUIT	  	27
	 XXXIV
	 	MODE OF EXECUTION	  	28
	 XXXV
	 	INTERMEDIARY	  	28
		 	Schedule A	  	
		 	Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance - U.S.A.	  	
		 	Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance – Canada	  	
		 	Nuclear Energy Risks Exclusion Clause (Reinsurance) (1994) (Worldwide Excluding U.S.A. And Canada)	  	
		 	Pools, Associations & Syndicates Exclusion Clause	  	
		 	Mold Exclusion	  	
		 	Terrorism Exclusion (Property Treaty Reinsurance) N.M.A. 2930c	  	

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 SIXTH PROPERTY CATASTROPHE 

EXCESS OF LOSS REINSURANCE CONTRACT 

(the “Contract”) 

between 
 HERITAGE
PROPERTY & CASUALTY INSURANCE COMPANY 
 Clearwater, Florida 

including any and/or all of the subsidiary or affiliate companies that are now or may 

hereafter come under the ownership, management and/or control of the Company 

(the “Company”) 
 and

 THE SUBSCRIBING REINSURER(S) EXECUTING THE 

INTERESTS AND LIABILITIES AGREEMENT(S) 

ATTACHED HERETO 
 (the
“Reinsurer”) 
 ARTICLE I 

BUSINESS COVERED 
  

	A.	By this Contract the Reinsurer agrees to reinsure the Company’s liability under its Policies classified by the Company as Property business, subject to the terms, conditions, and limitations set forth herein and in
Schedule A attached to and forming part of this Contract. 

  

	B.	Subject business shall include business assumed by the Company in connection with the depopulation of Policies from Citizens Property Insurance Corporation. 

ARTICLE II 
 TERM

  

	A.	This Contract shall apply to all Loss Occurrences during the term extending from 12:01 a.m., Eastern Standard Time, July 1, 2014, to 12:01 a.m., Eastern Standard Time, June 1, 2015, on Policies
effective at the inception of, or written or Renewed with an effective date during, said term. 

  

	B.	If this Contract 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 expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of this Contract. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

1 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	C.	Notwithstanding the expiration or termination of the Reinsurer’s participation hereon, the provisions of this Contract shall continue to apply to all obligations and liabilities of the parties
incurred hereunder until all such obligations and liabilities are fully performed and discharged. 

 ARTICLE III

 SPECIAL TERMINATION AND OTHER REMEDIES 
  

	A.	The Company may terminate the share of the Reinsurer and/or exercise any other provisions provided hereunder as respects said Reinsurer at any time, either during the term or after the expiration of this Contract, upon
said Reinsurer’s experiencing one or more Special Termination Event(s). A “Special Termination Event” shall be deemed to have occurred in the event of any of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the Reinsurer to cease writing business; 

  

	 	2.	The Reinsurer has voluntarily ceased assuming new and renewal reinsurance business for the lines of business covered hereunder; 

  

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

 

	 	4.	For any period not exceeding 12 months, which commences no earlier than 12 months prior to the inception of this Contract, the Reinsurer’s policyholders’ surplus (or total stamp capacity by managing
agent as respects Lloyd’s of London syndicates), as reported in the financial statements of the Reinsurer, has been reduced by 20%; 

  

	 	5.	The Reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the Reinsurer’s operations previously; 

 

	 	6.	The Reinsurer’s A.M. Best’s Financial Strength Rating has been assigned or downgraded below “A-”; 

  

	 	7.	The Reinsurer’s Standard and Poor’s Financial Strength Rating has been assigned or downgraded below “BBB+” or, as respects Lloyd’s of London, the Standard and Poor’s Rating of the
Lloyd’s Market has been assigned or downgraded below “BBB+”; 

  

	 	8.	The Reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent; 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

2 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	9.	The Reinsurer has transferred its claims-paying authority under this Contract to an unaffiliated entity or in any other way has assigned its interests or delegated its obligations under this Contract to an unaffiliated
entity without the Company’s prior written consent. Notwithstanding the foregoing, the transfer of claims-paying authority or administration to a third party, where the Reinsurer maintains control over claims settlement decisions, shall not
constitute a transfer of its claims-paying authority for purposes of this subparagraph; or 

  

	 	10.	The Reinsurer, directly or through the actions of a parent company or an affiliated entity, has invoked any U.S. or foreign statute, legislation, or jurisprudence that purports to enable the Reinsurer to require the
Company to settle its claims liabilities, including but not limited to any estimated or undetermined claims liabilities under this Contract, on an accelerated basis. This does not include any attempt to enforce a settlement of claims liabilities
under a commutation process to which the parties have agreed. 

 Unless it is prohibited by law from doing so, immediately
upon the Reinsurer’s knowledge of a Special Termination Event, the Reinsurer must notify the Company of such event in writing, by electronic mail, certified mail, or a nationally or internationally recognized delivery service. 

 

	B.	Where a Special Termination Event has taken place and after giving the Reinsurer prior written notice by electronic mail, certified mail, or by a nationally or internationally recognized delivery service, the Company
may invoke any one or a combination of the following: 

  

	 	1.	The Company may terminate or reduce the Reinsurer’s share hereunder effective at any time following the Reinsurer’s receipt of the written notice. In such event, the entire liability of the Reinsurer for Loss
Occurrences subsequent to the date of termination shall cease concurrently with the date of termination. Upon such termination, the Reinsurer shall refund to the Company the unearned portion of the reinsurance premium paid to it hereon (calculated
on a pro rata expiration basis) and any minimum premium hereon shall be waived. 

  

	 	2.	 The Company may require the Reinsurer to fund its share of outstanding loss and Loss Adjustment Expense reserves, reserves for losses and Loss
Adjustment Expense incurred but not reported to the Company (IBNR as determined by the Company), and any other balances or financial obligations. Within 30 days of the Company’s written request to fund, the Reinsurer shall render the
requested funding (less any such amounts already funded pursuant to the provisions of the RESERVES AND FUNDING ARTICLE) to the Company by means of one of the methods of funding described in the RESERVES AND FUNDING ARTICLE. The Company and the
Reinsurer may mutually agree on alternative methods of funding or the use of a combination of methods. The Company may draw upon such funding in accordance with the provisions of the RESERVES AND FUNDING ARTICLE. Within 60 days following each
subsequent calendar quarter, the Company may prepare and forward 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

3 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
to the Reinsurer a statement of the Reinsurer’s current funding obligation under this subparagraph. Where such amount exceeds the balance of funding already rendered by the Reinsurer, the
Reinsurer shall, within 30 days of its receipt of such statement, increase the amount of funding available to the current, reported level. If, however, the statement shows that the Reinsurer’s current funding obligation is less than the
balance of funding as of the statement date, the Company shall, within 30 days after receipt of written request from the Reinsurer, release such excess funding by making the appropriate adjustment. This funding option is available to the
Company at any time there remain any outstanding liabilities of the Reinsurer. 

  

	 	3.	The Company may require that the Reinsurer commute all present and future liabilities under this Contract in return for a full and final release of all such liabilities. If the Company and Reinsurer cannot agree on the
capitalized value of the Reinsurer’s liabilities, they shall appoint an independent actuary. If the Company and Reinsurer cannot agree on an actuary, the Company and the Reinsurer shall each nominate three individuals, of whom the other shall
decline two, and the final decision shall be made by drawing lots. All the actuaries selected shall be disinterested in the outcome of the commutation and shall be Fellows of the Casualty Actuarial Society. The decision in writing of the appointed
actuary, when filed with the parties hereto, shall be final and binding on both parties. The expense of the actuary and of the actuarial calculation shall be equally divided between the two parties. Said actuarial calculation shall take place in a
location chosen by the Company. This commutation option is available to the Company at any time there remain any outstanding liabilities of the Reinsurer. 

  

	C.	The Company may revoke its notice hereunder, prior to the date of termination, without prejudice to reinstitute later if it so chooses. 

 

	D.	The Company, at its sole option, may classify the Reinsurer as a “Run-off Reinsurer,” where said Reinsurer experiences one or more of the Special Termination Events set
forth in subparagraphs 1, 2, 3, 8, and 9 under paragraph A above. 

 Notwithstanding any other provision of this
Contract, in the event that a Reinsurer becomes classified by the Company as a Run-off Reinsurer at any time, the Company may elect, by giving written notice to the
Run-off Reinsurer at any time thereafter, that all or any of the following shall apply to the Run-off Reinsurer’s share hereunder: 

 

	 	1.	If payment of any claim has been received from the Reinsurers constituting at least 70% of the interests and liabilities of all the Reinsurers that participated on this Contract and are active as of the due date, it
being understood that said date shall not be later than 90 days from the date of transmittal by the intermediary of the initial billing for each such payment, the Run-off Reinsurer shall be estopped from
denying such claim and must pay within 10 days following transmittal to the Run-off Reinsurer of written notification of such payments. For purposes of this subparagraph, a Reinsurer shall be deemed to be
active if it is not a Run-off Reinsurer. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

4 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	2.	The interest penalty specified in the LATE PAYMENTS ARTICLE shall be increased by 0.5% for each 30 days that the payment is past due, subject to a maximum increase of 7.0%. 

 

	 	3.	In the event that either party demands arbitration of a dispute between the Company and the Run-off Reinsurer, and the amount in dispute is less than $500,000, unless the
arbitration notice includes a demand for rescission of this Contract, notwithstanding the terms of the ARBITRATION ARTICLE, the dispute shall be resolved by a sole arbitrator and the following procedures shall apply: 

 

	 	a.	The sole arbitrator shall be chosen by mutual agreement of the parties within 15 business days after the demand for arbitration. If the parties have not chosen an arbitrator within the 15 business days after
receipt of the arbitration notice, the arbitrator shall be chosen in accordance with the Neutral Selection Procedure modified for a single arbitrator, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS) and in
force on the date the arbitration is demanded. The nominated arbitrator must be available to read any written submissions and hear testimony within 60 days of being chosen. 

 

	 	b.	Within 10 business days after the arbitrator has been appointed, the parties shall be notified of deadlines for the submission of briefs and documentary evidence, as determined by the arbitrator. There shall be no
discovery or hearing unless the parties agree to engage in limited discovery and/or a hearing. Also, the arbitrator can determine, without the consent of the parties, that a limited hearing is necessary. 

 

	 	c.	The arbitrator shall render a decision within 10 business days after the later of the date on which briefs are submitted or the end of the limited hearing. The decision of the arbitrator shall be in writing and
shall be final and binding on both parties. 

  

	E.	The Company’s waiver of any rights provided in this Article is not a waiver of that right or other rights at a later date. 

ARTICLE IV 
 DEFINITIONS

 The terms set forth below, wherever they appear in this Contract and regardless of whether they appear in a singular or plural form, shall have the
meanings given herein: 
  

	A.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” shall mean all expenses
incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract. Declaratory Judgment Expense
shall be deemed to have been incurred on the date of the original loss giving rise to the declaratory judgment action. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

5 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	B.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 “Extra Contractual Obligations” shall mean those
liabilities not covered under any other provision of this Contract, including any punitive, exemplary, compensatory, or consequential damages, which arise from the handling of any claim on business covered hereunder; such liabilities arising because
of, but not limited to, the following: failure to settle within the Policy limit, or by reason of alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement, in preparation of the defense, in the trial of any action against
its insured, reinsured, its insured’s or reinsured’s assignee or a third party claimant, or in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	2.	Loss in Excess of Policy Limits 

 “Loss in Excess of Policy Limits” shall mean amounts
paid or damages payable by the Company in excess of the Policy limit as a result of alleged or actual negligence, fraud, or bad faith in failing to settle, and/or rejecting a settlement within the Policy limit, in the preparation of the defense, in
the trial of any action against its insured, reinsured, its insured’s or reinsured’s assignee or a third party claimant, or in the preparation or prosecution of an appeal consequent upon such action. Loss in Excess of Policy Limits is any
amount for which the Company would have been contractually liable to pay had it not been for the limits of the reinsured Policy. 
  

	 	3.	Coverage for Extra Contractual Obligations loss and/or Loss in Excess of Policy Limits shall not apply when such loss has been incurred due to an adjudicated finding of fraud committed by a member of the Board of
Directors or a corporate officer of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any other corporation or partnership. 

 

	 	4.	Any Extra Contractual Obligations and/or Loss in Excess of Policy Limits shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the Policy. 

 

	C.	Loss Adjustment Expense 

 “Loss Adjustment Expense” shall mean all costs and expenses
allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense, or appeal of a specific claim, including court costs and costs of supersedeas and appeal bonds, and
including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses, monitoring

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

6 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 
counsel expenses, and costs incurred in connection with coverage questions and legal actions connected thereto, including Declaratory Judgment Expense; and 4) a pro rata share of salaries
and expenses of Company field employees, and expenses of other Company employees who have been temporarily diverted from their normal and customary duties and assigned to the field adjustment of losses covered by this Contract. Loss Adjustment
Expense does not include salaries and expenses of employees, other than 4) above, and office and other overhead expenses. 
  

	D.	Loss Occurrence 

  

	 	1.	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:

  

	 	a.	As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing collapse and water damage, all individual losses sustained by the Company occurring during any period of 120 consecutive hours arising out
of and directly occasioned by the same event. However, the event need not be limited to one state or province or states or provinces contiguous thereto. 

  

	 	b.	As regards riot, riot attending a strike, civil commotion, vandalism, and malicious mischief, all individual losses sustained by the Company occurring during any period of 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. 

 

	 	c.	As regards earthquake (the epicenter of which need not necessarily be within the territorial confines referred to in the introductory portion of subparagraph 1) 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.” 

 

	 	d.	As regards “freeze,” only individual losses directly occasioned by collapse, breakage of glass, and water damage (including but not limited to those caused by freezing and/or melting of ice, snow or sleet, or
ice damming on a structure, or bursting of frozen pipes and tanks) may be included in the Company’s “Loss Occurrence.” 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

7 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	2.	Except for those “Loss Occurrences” referred to in subparagraph b above, 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 those loss occurrences referred to in subparagraph a above where only one such period of 120 consecutive hours will apply with respect to one event, regardless of the duration of the event. 

 

	 	3.	However, as respects those “Loss Occurrences” referred to in subparagraph b above, if the disaster, accident, or loss occasioned by the event is of greater duration than 96 consecutive hours, then
the Company may divide that disaster, accident, or loss into two or more “Loss Occurrences” provided no two periods overlap and no individual loss is included in more than one such period and provided that no period commences earlier than
the date and time of the occurrence of the first recorded individual loss sustained by the Company arising out of that disaster, accident, or loss. 

  

	 	4.	No individual losses occasioned by an event that would be covered by 96 hours or 120 hours clauses may be included in any “Loss Occurrence” claimed under the 168 hours provision.

  

	E.	Policy 

 “Policy” shall mean the Company’s binders, policies, and contracts,
whether written or oral, providing insurance or reinsurance on the business covered under this Contract. 
  

	F.	Renewed 

 “Renewed” shall include those Policies issued for more than one year (if
any), as of their next annual anniversary or annual installment date. 
  

	H.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the amount of any settlement,
award, or judgment paid by the Company or for which the Company has become liable to pay, including 1) any pre-judgment interest that is included as part of an award or judgment, 2) 90% of Loss in
Excess of Policy Limits, 90% of Extra Contractual Obligations, and 3) an allowance for Loss Adjustment Expense equal to 6% of the sum of the indemnity loss and the amounts set forth in 1) and 2) above, after making deductions for all
recoveries, salvages, and subrogations, which are actually recovered, and all claims on inuring reinsurance, whether collectible or not; provided, however, that in the event of the insolvency of the Company, payment by the Reinsurer shall be made in
accordance with the provisions of the INSOLVENCY ARTICLE. In the event a verdict or judgment is reduced by an appeal or a settlement, subsequent to the entry of the judgment, however, resulting in an ultimate saving on such verdict or judgment, or a
judgment is reversed outright, the loss expense incurred in securing such final reduction or reversal shall be prorated between the 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

8 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 
Reinsurers and the Company in the proportion that each benefits from such reduction or reversal. 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. 
 ARTICLE V 

TERRITORY 
 The territorial limits of this Contract
shall be identical with those of the Company’s Policies. 
 ARTICLE VI 

EXCLUSIONS 
  

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

  

	 	1.	Liability assumed by the Company under any form of treaty reinsurance; however, all excess of loss reinsurance, business covered in accordance with paragraph B of the BUSINESS COVERED ARTICLE, group intra-company
reinsurance (if applicable), local agency reinsurance accepted in the normal course of business, and/or policies written by another carrier at the Company’s request and reinsured 100% by the Company shall not be excluded hereunder.

  

	 	2.	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, howsoever denominated, established, or governed, that provides for any assessment of or payment or assumption by the Company of part or all of any claim, debt,
charge, fee, or other obligation of an insurer, or its successors or assigns, 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. 

  

	 	3.	Loss caused directly or indirectly by war, whether or not declared, civil war, insurrection, rebellion, or revolution, or any act or condition incidental to any of the foregoing. This exclusion shall not apply to any
Policy that contains a standard war exclusion. 

  

	 	4.	Financial Guarantee coverage and/or similar coverage, however styled. 

  

	 	5.	Loss or liability excluded by the Nuclear Incident Exclusion Clauses – Physical Damage – Reinsurance and Nuclear Energy Risks Exclusion Clause (Reinsurance) (1994) (Worldwide excluding U.S.A. &
Canada) attached to this Contract. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	6.	Loss or liability excluded by the Pools, Associations, and Syndicates Exclusion Clause attached to this Contract. 

  

	 	7.	Mold as defined in the Mold Exclusion attached to this Contract. 

  

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

  

	 	9.	Loss as excluded under the provisions of the Terrorism Exclusion (Property Treaty Reinsurance) – N.M.A. 2930c attached to this Contract. 

 

	 	10.	All assessments from Citizens Property Insurance Corporation. 

  

	B.	The exclusions enumerated in paragraph A above (except for subparagraphs 3 and 5) shall not apply when they are merely incidental to the main operations or exposures of the insured, provided such main
operations or exposures are also covered by the Company and are not themselves excluded from the scope of this Contract. The Company shall be the sole judge of what is “incidental.” 

 

	C.	If the Company is inadvertently bound or is unknowingly exposed (due to error, automatic provisions of policy coverage, or as imposed by law) on a risk otherwise excluded in paragraph A above (except for
subparagraphs 3 and 5), such exclusion shall be waived. The duration of said waiver shall not extend beyond the time that notice of such coverage has been received by a responsible underwriting authority of the Company plus the minimum time
thereafter for the Company to terminate such coverage or Policy. 

  

	D.	If the Company is required to accept an assigned risk, which conflicts with one or more of the exclusions set forth in paragraph A above (except for subparagraphs 3 and 5), this reinsurance shall apply, but up
to the limit required by the applicable statute or regulatory authority. 

  

	E.	Should any judicial or regulatory entity having jurisdiction invalidate any exclusion in or expand coverage of the Company’s Policy that is also the subject of one or more of the exclusions set forth in
paragraph A above (except for subparagraphs 3 and 5), then a loss for which the Company is liable because of such invalidation or expansion of coverage shall not be excluded hereunder. 

ARTICLE VII 
 SPECIAL
ACCEPTANCES 
  

	A.	Business that is not within the scope of this Contract may be submitted to the Reinsurer for special acceptance hereunder and such business, if accepted by the Reinsurer, shall be subject to all terms, conditions, and
limitations of this Contract, except as modified by the special acceptance. Should denial of a request for special acceptance not be received from the Reinsurer within three business days of the Reinsurer’s receipt of said request, the special
acceptance shall be deemed automatically agreed. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

10 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	B.	If Subscribing Reinsurers under each excess layer with total percentage shares in the interests and liabilities of the Reinsurer of 51% or greater for that excess layer agree to a special acceptance, such special
acceptance shall be binding on all Subscribing Reinsurers with respect to their respective shares for that excess layer. If such percentage agreement is not achieved, such special acceptance shall be made to the excess layer only with respect to the
interests and liabilities of each Subscribing Reinsurer for that excess layer that agrees to the special acceptance. 

  

	C.	Any special acceptance business covered under the reinsurance contract being replaced by this Contract shall be automatically covered hereunder. Furthermore, should the Reinsurer become a party to this Contract
subsequent to the acceptance of any business not normally covered hereunder, it shall automatically accept same as being part of this Contract. 

ARTICLE VIII 
 COVERAGE

 As respects the excess top & drop 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 the excess top & drop layer in Schedule A attached hereto, arising out of each Loss Occurrence. The Reinsurer shall then be liable, as respects the excess
top & drop layer, for the amount by which such Ultimate Net Loss exceeds the Company’s retention, but the liability of the Reinsurer under the excess top & drop layer shall not exceed the amount, shown as
“Reinsurer’s Per Occurrence Limit,” as respects any one Loss Occurrence, nor shall it exceed the amount shown as “Reinsurer’s Term Limit,” for the excess top & drop layer in Schedule A attached hereto. 

ARTICLE IX 
 REINSURANCE
PREMIUM 
  

	A.	The Company shall pay the Reinsurer a deposit premium for the excess top & drop layer equal to the “Annual Deposit Premium” for the excess top & drop layer, as identified in Schedule A
attached hereto, in four equal installments of the amount, shown as “Quarterly Deposit Premium” in Schedule A attached hereto, for the excess top & drop layer, on July 1, 2014, October 1, 2014, January 1, 2015,
and April 1 of 2015. 

  

	B.	Notwithstanding the foregoing, in the event the Company’s average of the 100-year and 25-year AIR (Clasic/2 v.15.0) Hurricane Probable Maximum Loss on August 31, 2014 for subject business is greater than or
equal to [***]% and less than or equal to [***]% of the original estimate, there shall be no additional premium due the Reinsurer or return premium due the Company. However, in the event the Company’s average of the 100-year and 25-year AIR
(Clasic/2 v.15.0) Hurricane Probable Maximum Loss on August 31, 2014 is less than [***]% or greater than [***]% of the original estimate then the additional premium due the Reinsurer or return premium due the Company shall be determined by the
following: 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

11 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	1.	If the Company’s average of the 100-year and 25-year AIR (Clasic/2 v.15.0) Hurricane Probable Maximum Loss on August 31, 2014 is greater than [***]% of the original estimate as outlined in paragraph D of
this Article, the additional premium due the Reinsurer shall be determined by multiplying the “Rate on PML,” as stated in Schedule A attached hereto, times the difference between [***]% of the original estimate as outlined in
paragraph D of this Article and the Company’s average of the 100-year and 25-year AIR (Clasic/2 v.15.0) Hurricane Probable Maximum Loss on August 31, 2014. 

 

	 	2.	If the Company’s average of the 100-year and 25-year AIR (Clasic/2 v.15.0) Hurricane Probable Maximum Loss on August 31, 2014 is less than [***]% of the original estimate as outlined in paragraph D of this
Article, the return premium due the Company shall be determined by multiplying the “Rate on PML,” as stated in Schedule A attached hereto, times the difference between the Company’s average of the 100-year and 25-year AIR (Clasic/2
v.15.0) Hurricane Probable Maximum Loss on August 31, 2014 and [***]% of the original estimate as outlined in paragraph D of this Article, subject to the “Minimum Premium” for the excess top & drop layer as stated in
Schedule A attached hereto. 

  

	C.	The average of the 100-year and 25-year Hurricane return times are calculated based on AIR (Clasic/2 v.15.0). Hurricane Models including secondary uncertainty, standard hurricane frequencies and loss amplification.

  

	D.	The average 100-year and 25-year AIR (Clasic/2 v.15.0) Hurricane PML is estimated at $[***] as of August 31, 2014. 

  

	E.	Within 60 days after the expiration or termination of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph B of this
Article. Any additional premium due the Reinsurer, less amounts previously paid as deposits or otherwise, shall be remitted with said report. Any return premium due the Company, that is in excess of the Company’s premium obligations hereunder,
shall be returned by the Reinsurer within 30 days of its receipt of said report. 

 ARTICLE X 

FLORIDA HURRICANE CATASTROPHE FUND 
  

	A.	As respects Loss Occurrences subject to this Contract, any loss reimbursement recoverable by the Company under the Florida Hurricane Catastrophe Fund (FHCF), shall be deducted in determining Ultimate Net Loss under this
Contract, subject to the following: 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

12 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	1.	The full reimbursement amount due from the FHCF for coverage under the Mandatory Layer, based on statutory limits of coverage as of June 1, shall be deemed recovered by the Company, whether or not actually received
from the FHCF and whether or not reduced because of the FHCF’s inability to pay. 

  

	 	2.	Any other FHCF recoveries shall be disregarded for purposes of determining Ultimate Net Loss subject to this Contract. 

  

	 	3.	For purposes of allocating recoveries from the FHCF with respect to each Loss Occurrence, only amounts recoverable by applying the pay-out and retention multiples for the FHCF prior to any reduction in retention due to
multiple Loss Occurrences in the same annual period shall be included in calculating the deduction from Ultimate Net Loss. 

  

	 	4.	If the Company’s aggregate limit of FHCF reimbursement coverage is exhausted from Loss Occurrences commencing during the term of this Contract, and the FHCF does not designate the portion of said limit allocable to
each Loss Occurrence, the total FHCF reimbursement received shall be allocated to each individual Loss Occurrence in the proportion that the Company’s losses in that Loss Occurrence bear to the Company’s total losses arising out of all
Loss Occurrences to which the reimbursement applies. 

  

	B.	For purposes of loss recoveries under this Contract prior to the final determination of the Company’s retention and limit under the FHCF, FHCF coverage shall be calculated using the Company’s “Projected
Payout Multiple” under the FHCF. Upon determination of the Company’s retention and limit under the FHCF, losses will be adjusted, recognizing any adjustment to the “Projected Payout Multiple” caused by a change in the Aggregate
Mandatory FHCF Premium but disregarding any change due to a decrease in the statutory limit. 

  

	C.	Any FHCF reimbursement premiums paid by the Company for FHCF layers that inure to the benefit of this Contract shall be deemed to be premiums paid for inuring reinsurance. 

ARTICLE XI 
 OTHER
REINSURANCE 
  

	A.	The Company shall be permitted to carry other reinsurance, recoveries under which may inure to the benefit of this Contract. 

  

	B.	The Company shall be permitted to carry underlying 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.

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

13 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XII 

NET RETAINED LINES 
  

	A.	This Contract applies only to that portion of any Policy that the Company retains net for its own account (prior to deduction of any underlying reinsurance) 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 that the Company retains net for its own account shall be included. 

 

	B.	The Company shall purchase, the layers of reinsurance shown below, which shall inure to the benefit of the reinsurance coverage provided under this Contract. 

 

	 	1.	100% of $7,000,000 excess of $2,000,000 Ultimate Net Loss, each Loss Occurrence, with no reinstatement, and placed at 100%. 

  

	 	2.	$6,000,000 xs $9,000,000 Underlying Property Catastrophe Excess of Loss Reinsurance Contract placed with Osprey Re Ltd. 

  

	 	3.	$4,000,000 xs $2,000,000 xs $4,000,000 Underlying Property Catastrophe Excess of Loss Reinsurance Contract placed with Osprey Re Ltd. 

 

	 	4.	The Multi-Year First & Second Property Catastrophe Excess of Loss Reinsurance Contract (Willis reference number 109797001/109798001-14). 

 

	 	5.	The Property Catastrophe Excess of Loss Reinsurance Agreement (reference number 708852386) placed with Citrus Re Ltd. 

  

	 	6.	The Property Catastrophe Excess of Loss Reinsurance Agreement (reference number 709101428) placed with Citrus Re Ltd. 

  

	 	7.	The Property Catastrophe Excess of Loss Reinsurance Contract (Willis reference number 109904001-14). 

  

	 	8.	The Fourth Property Catastrophe Excess of Loss Reinsurance Contract placed with Osprey Re Ltd. 

  

	 	9.	The Fifth Property Catastrophe Excess of Loss Reinsurance Contract (Willis reference number 109795001-14). 

  

	C.	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 reinsurers, whether specific or general,
any amounts that may have become due from such reinsurers, whether such inability arises from the insolvency of such other reinsurers or otherwise. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

14 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XIII 

NOTICE OF LOSS AND LOSS SETTLEMENTS 
  

	A.	The Company shall advise the Reinsurer of all claims or losses that, in the opinion of the Company, may result in a claim hereunder. Furthermore, the Company shall notify the Reinsurer of all subsequent developments to
any claims and losses that, in the opinion of the Company, may materially affect the position of the Reinsurer. Inadvertent omission in dispatching any notices shall in no way affect the obligations of the Reinsurer under this Contract, provided the
Company informs the Reinsurer of such omission promptly upon discovery. 

  

	B.	The Company alone and at its full discretion shall adjust, settle, or compromise all claims and losses. 

  

	C.	All loss settlements made by the Company that are within the terms and conditions of this Contract shall be binding upon the Reinsurer. Upon receipt of evidence of the amount paid or to be paid, the Reinsurer agrees to
pay within 5 days of its receipt of such evidence or allow, as the case may be, its share of each such amount. 

 ARTICLE
XIV 
 LATE PAYMENTS 
 (The provisions of
this Article shall not be implemented unless specifically invoked by the Company in writing.) 
  

	A.	In the event that any amount due the Company is not received by the intermediary hereunder by the payment due date, the Company may, by notifying the intermediary in writing, require the Reinsurer to pay, and the
Reinsurer agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

  

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  

	 	2.	1/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due plus
300 basis points; times 

  

	 	3.	The amount past due, including accrued interest. 

 The Reinsurer shall also pay any and all
costs and expenses, including reasonable attorney’s fees, incurred in connection with the collection and enforcement of the Reinsurer’s payment obligations hereunder 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

15 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 It is agreed that interest shall accumulate until payment of the original amount due plus
interest penalties has been received by the intermediary. 
  

	B.	The establishment of the payment due date shall, for purposes of this Article, be determined in accordance with the applicable Article of this Contract. 

 

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
Reinsurer prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest shall be calculated and due as outlined above. Furthermore, if the Reinsurer pays any claim hereunder that it is
contesting and prevails in such action, the Company shall return such payment plus pay interest on same, at a rate calculated as per the provisions of paragraph A, above; however, such calculation is to begin from the actual date of remittance of
funds from the Reinsurer through the date the funds are returned. 

 ARTICLE XV 

SALVAGE AND SUBROGATION 
  

	A.	The Company, at its sole discretion, may enforce its right to salvage and/or subrogation and may prosecute all claims arising out of such right. Should the Company refuse or neglect to enforce this right, the Reinsurer
is hereby empowered and authorized to institute appropriate action in the name of the Company. 

  

	B.	The expense incurred by the Company in pursuing any such recovery shall be borne by each party in proportion to its benefit (if any) from the recovery. If the recovery expense exceeds the amount recovered, the amount
recovered (if any) shall be applied to the reimbursement of recovery expense incurred by the Company and the remaining expense shall be included in Ultimate Net Loss. 

 

	C.	Notwithstanding anything to the contrary in this Contract, if the Reinsurer initiates an action to secure salvage and/or subrogation in the name of the Company, and there is no such recovery, or if the amount recovered
is insufficient to cover the expenses incurred in pursuing salvage and/or subrogation, the Reinsurer initiating such action shall be responsible for such excess expense. Furthermore, said Reinsurer shall be responsible for any damages to the
Company, including reimbursement of any compensatory and/or punitive damages resulting from the action. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

16 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XVI 

DELAYS, OMISSIONS, OR ERRORS 
 Any inadvertent
delay, omission, or error shall not be held to relieve either party hereto from any liability that would attach to it hereunder if such delay, omission, or error had not been made, provided any omission or error is rectified upon discovery. 

ARTICLE XVII 
 LIABILITY OF
THE REINSURER 
 All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same
terms, conditions, interpretations, and waivers and to the same modifications, alterations, and cancellations, as the respective Policies to which such reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer
shall follow the fortunes of the Company. However, in no event shall this be construed in any way to provide coverage outside the terms and conditions set forth in this Contract. 

ARTICLE XVIII 
 ENTIRE
AGREEMENT 
 This Contract shall constitute the entire agreement between the parties with respect to the business being reinsured hereunder and no
understandings exist between the parties other than those expressed in this Contract. Any change or modification to this Contract shall be null and void unless made by amendment to this Contract and signed by both parties. This Article shall not be
construed as limiting in any way the admissibility, in the context of an arbitration or any other legal proceeding, of evidence regarding the formation, interpretation, purpose, or intent of this Contract. 

ARTICLE XIX 
 OFFSET

 The Company and the Reinsurer shall have the right to offset any balance or amounts due from one party to the other under the terms of this
Contract. The party asserting the right of offset may exercise such right any time whether the balances due are on account of premiums or losses or otherwise; however, in the event of the insolvency of any party hereto, offset shall be in accordance
with applicable law. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

17 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XX 

CURRENCY 
  

	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 XXI 
 TAXES

 The Company shall pay applicable taxes (except Federal Excise Tax, if any) on premiums reported to the Reinsurer under this Contract. 

ARTICLE XXII 
 FEDERAL EXCISE
TAX 
  

	A.	The Reinsurer has agreed to allow the applicable percentage of the premium payable hereon (as imposed under the Internal Revenue Code) for the purpose of paying Federal Excise Tax to the extent such premium is subject
to such tax. Should the Reinsurer claim exempt status from Federal Excise Tax, it shall provide to the Company, upon its request, proof that the exempt status adequately satisfies the rules as imposed under the Internal Revenue Code and any
other applicable U.S. government authority. 

  

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

  

	C.	As respects premiums ceded to the Reinsurer under this Contract, the Reinsurer agrees to indemnify the Company for any liability, expense, interest, or penalty it may incur by reason of the Reinsurer’s breach of
this Article. 

 ARTICLE XXIII 

RESERVES AND FUNDING 
  

	A.	The Reinsurer shall provide funding under the terms of this Article only if the Company is denied statutory credit for reinsurance ceded to that Reinsurer pursuant to the credit for reinsurance law or regulations of the
regulatory authority having jurisdiction over the Company’s reserves. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

18 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	B.	As regards Policies issued by the Company coming within the scope of this Contract, the Company agrees that, when it files with the insurance regulatory authority or sets up on its books reserves for liabilities which
it is required by law to set up, it shall forward to the Reinsurer a report showing the proportion of such reserves which is applicable to the Reinsurer. The Reinsurer shall fund 100% of its portion of such reserves in respect of: 

 

	 	1.	Loss and loss expense paid by the Company but not recovered from the Reinsurer; 

  

	 	2.	Known outstanding losses that have been reported to the Reinsurer and loss expense relating thereto; 

  

	 	3.	Reserves for loss and loss expense incurred but not reported; 

  

	 	4.	Unearned premium (if applicable); 

  

	 	5.	Other amounts recoverable reported in Schedule F of the Company’s NAIC Statement; 

 as
shown in the report prepared by the Company (hereinafter referred to as “Reinsurer’s Obligations”). The Reinsurer’s Obligations shall be funded by funds withheld, cash advances, escrow accounts for the benefit on the Company,
Letters of Credit (“LOC”), Trust Account, or a combination thereof. The Reinsurer shall have the option of determining the method of funding, subject always to the provision that (a) the method of funding and (b) the terms and
provisions of any such LOC or Trust Account and (c) the quality of assets in any Trust Account are all acceptable to the Company and also meet the requirements of each applicable insurance regulatory authority having jurisdiction over the
Company’s reserves. In the event a provision of any such funding instrument jeopardizes the Company’s ability to obtain full credit for reinsurance, such provision shall be void and shall be amended to comply with applicable credit for
reinsurance requirements. The Reinsurer shall provide funding and/or any adjustments thereto in time for the Company to meet the requirements of each applicable insurance regulatory authority having jurisdiction over the Company’s reserves,
provided that the Company sends the report of Reinsurer’s Obligations at least 15 days prior to the date such funding is required. 
  

	C.	Deferral of funding that may be permitted for a certified reinsurer in the event of a catastrophe shall not apply to any Reinsurer under this Contract. 

 

	D.	 When funding in whole or in part by an LOC, the Reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and
unconditional LOC dated on or before December 31 of the year in which the request is made (on or before the last day of the calendar quarter for any quarterly adjustment), issued by a member of the Federal Reserve System or any bank approved
for use by the NAIC Securities Valuation Office, and containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves. Such LOC shall be issued for a period of not

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

19 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
less than one year and shall include an “evergreen clause,” which automatically extends the term for at least one additional year at each expiration date unless 60 days (or such
other time period as may be required by the applicable insurance regulatory authorities) prior to any expiration date the issuing bank notifies the Company by certified or registered mail that the issuing bank elects not to consider the LOC extended
for any additional period. 

  

	E.	The Reinsurer and Company agree that any funding provided by the Reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision of this Contract, and be utilized
by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes: 

 

	 	1.	To reimburse the Company for the Reinsurer’s share of unearned premium on Policies reinsured hereunder on account of cancellations of such Policies; 

 

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

 

	 	3.	To make refund of any sum which is in excess of the actual amount required to pay the Reinsurer’s Obligations under this Contract (or in excess of 102% of Reinsurer’s Obligations, if funding is provided by a
Trust Account); 

  

	 	4.	To fund an account with the Company for the Reinsurer’s Obligations if such LOC is under notice of non-renewal or not replaced by the Reinsurer within 10 days prior to
its expiration. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon not in excess of the prime rate shall accrue to the benefit of the Reinsurer; 

 

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

In the event the amount drawn by the Company on any funding provided by the Reinsurer is in excess of the actual amount required for
subparagraph 1, 2, or 4 or, in the case of subparagraph 5, the actual amount determined to be due, the Company shall promptly return to the Reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution
because of insolvency on the part of the Company or the Reinsurer. 
  

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

  

	G.	At annual intervals, or more frequently but never more frequently than quarterly, the Company shall prepare a specific report of the Reinsurer’s Obligations, for the sole purpose of amending the LOC or other method
of funding, in the following manner: 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

20 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	1.	If the report shows that the Reinsurer’s Obligations exceed the available balance of the funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account as of the report date, the
Reinsurer shall, within 30 days after receipt of notice of such excess, make an adjustment to increase the available balance of funds withheld and/or cash advances and/or LOC and/or Trust Account by the amount of such excess. 

 

	 	2.	If, however, the report shows that the Reinsurer’s Obligations are less than the available balance of the funds withheld and/or cash advances and/or escrow accounts and/or LOC and/or 102% of the balance of the
Trust Account if funding is provided by Trust Account, as of the report date, the Company shall, within 30 days after receipt of written request from the Reinsurer, release such excess funding by making or allowing an adjustment to the funds
withheld and/or cash advances and/or escrow accounts and/or LOC and/or Trust Account. 

  

	H.	Should the Reinsurer be in breach of its obligations under this Article, notwithstanding anything to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any court having
competent jurisdiction over the parties hereto. 

 ARTICLE XXIV 

THIRD PARTY RIGHTS 
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract except as expressly provided otherwise in the INSOLVENCY ARTICLE. 

ARTICLE XXV 
 REINSURANCE
ALLOCATION 
  

	A.	While having no effect on the settlements or liabilities of the parties to this Contract, it is established that: 

  

	 	1.	If an Occurrence covered under this Contract involves multiple member companies, the Company shall allocate the Reinsurer’s limit of liability for the Occurrence to each member company involved, proportionately,
based on the percentage that the affected member company’s loss bears to the total of all losses contributing to that Occurrence; and 

  

	 	2.	With respect to reinsurance premium due to the Reinsurer hereunder, each member company shall be responsible for its proportionate share of the reinsurance premium. The deposit premium, minimum premium, and final
reinsurance premium, as determined under the terms of this Contract, shall be apportioned to each member company by the Company in the same proportion that each member company’s subject premium bears to the total subject premium.

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

21 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	B.	Records of these allocations shall be maintained in sufficient detail to identify both the Reinsurer’s loss obligations allocated to each member company and each member company’s share of premium allocation.

 ARTICLE XXVI 

SEVERABILITY 
 If any provision of this Contract
shall be rendered illegal or unenforceable by the laws, regulations, or public policy of any jurisdiction, such provision shall be considered void in such 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 XXVII 

SANCTIONS 
 Notwithstanding any other provision in
this Contract to the contrary, if at any time should any receipt or payment of funds or any other contemplated transaction under this Contract constitute an actual or potential violation of any economic sanction or money laundering statute,
regulation or order which is applicable to either the Company or the Reinsurer, the party who becomes aware of the actual or potential violation shall immediately notify the other party of the actual or potential violation and the reasons therefor.
Solely with respect to such receipt, payment or other transaction, the obligation of the parties under this Contract shall be suspended until such time as the Company or the Reinsurer are authorized by applicable law, regulation, or license to
perform under this Contract. For the avoidance of doubt, the obligations of the parties under this Contract shall remain in effect with respect to the receipt or payment of funds or any other contemplated transaction which would not constitute a
violation of any economic sanction or money laundering law, regulation or order. 
 ARTICLE XXVIII 

GOVERNING LAW 
 This Contract shall be governed as
to performance, administration, and interpretation by the laws of the State of Florida, exclusive of that state’s rules with respect to conflicts of law. However, with respect to credit for reinsurance, the rules of all applicable states shall
apply. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

22 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XXIX 

ACCESS TO RECORDS 
  

	A.	The Reinsurer or its designated representative(s) approved by the Company, upon providing reasonable advance notice to the Company, shall have access at the offices of the Company or at a location to be mutually agreed,
at a time to be mutually agreed, to inspect the Company’s underwriting, accounting, or claim files pertaining to the subject matter of this Contract. The Company shall determine the manner in which files shall be accessed by the Reinsurer. The
Reinsurer may, at its own expense, reasonably request copies of such files and agrees to pay the Company’s reasonable costs (including staff expense and other overhead costs) incurred in procuring such copies. 

 

	B.	The Reinsurer or its designated representative(s) shall not have access to Protected Records related to a claim ceded to this Contract; however, the Reinsurer shall be permitted to have access to those Protected Records
described in subparagraph F.2 of this Article after the Company’s final settlement or final adjudication of such underlying claim. If Protected Records are withheld, the Company shall advise the Reinsurer accordingly and the Company shall
take reasonable steps to provide the Reinsurer with sufficient information to determine its liability hereunder. Further, the Reinsurer or its designated representative(s) shall not have access to any communications with any other reinsurer
supporting the Company in respect of business subject to this Contract and shall not have access to Protected Records relating to any dispute between the Company and the Reinsurer. 

 

	C.	If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer shall have access to such records only upon payment of all such overdue amounts. 

 

	D.	Upon completion of the audit, the Reinsurer and its representative(s) shall consult with the Company promptly and in good faith, no later than 30 days after the completion of the audit unless otherwise agreed, with
respect to any and all questions or issues raised by the audit. If, as a result of the Reinsurer’s inspection of the Company’s files, any claim is denied, contested, or disputed, the Reinsurer shall promptly provide the Company with a
summary of any reports or analysis completed by the Reinsurer’s personnel or by any third party on behalf of the Reinsurer outlining the findings of the inspection and identifying the reasons for contesting or disputing the subject claim.

  

	E.	Nothing in this Article requires the Company to maintain or to make available any document for longer than the period required by the Company’s document retention policies and procedures or the period required by
applicable statute or regulation, whichever is greater. 

  

	F.	“Protected Records” are defined as communications, files, records, documents, or books: 

  

	 	1.	Deemed by the Company to concern Trade Secrets of the Company (Trade Secrets shall have the meaning provided in Section 1839 of the United States Economic Espionage Act of 1996); or 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

23 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	2.	Deemed by the Company to be subject to attorney-client privilege or work product rule protection; or 

  

	 	3.	Concerning individual private information that as a matter of law cannot be disclosed by the Company. 

ARTICLE XXX 
 CONFIDENTIALITY

  

	A.	The Reinsurer hereby acknowledges that the documents, information, and data provided to the Reinsurer by the Company, whether directly or through an authorized agent, in connection with the placement and execution of
this Contract, inspection pursuant to the ACCESS TO RECORDS ARTICLE, or any other information relating to this Contract (“Confidential Information”) are proprietary and confidential to the Company. 

 

	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 when: 

 

	 	1.	Required by retrocessionaires subject to the business ceded to this Contract; or 

  

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

  

	 	3.	Required by external auditors performing an audit of the Reinsurer’s records in the normal course of business. 

  

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

  

	D.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process, or any regulatory authority to release or disclose any Confidential Information, unless prohibited by law the
Reinsurer agrees to provide the Company written notice of same prior to such release or disclosure and to use its reasonable best efforts to assist the Company in maintaining the confidentiality provided for in this Article. 

 

	E.	The provisions of this Article shall extend to the officers, directors, and employees of the Reinsurer and its affiliates, who have received Confidential Information in accordance with this Contract, and shall be
binding upon their successors and assigns. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

24 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XXXI 

INSOLVENCY 
  

	A.	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 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 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 proportionate share of the benefit that may accrue to the Company
solely as a result of the defense undertaken by the Reinsurer. 

  

	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 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 its liquidator, receiver, conservator, or
statutory successor, except as otherwise provided by Section 4118(a) (relating to Fidelity and Surety Risks) and Section 1114(c) (relating to physical damage) of the Insurance Law of New York or except 1) where this Contract
specifically provides another payee 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 payee under such Policies and in substitution for the obligations of the Company to such payees. Then, and in that event only, the Company, with the prior approval by the Superintendent of Insurance of the State
of New York of the Certificate of Assumption on New York risks, is entirely released from its obligation and the Reinsurers shall pay any loss directly to payees under such policies. 

 

	D.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

 

	E.	In the event of the insolvency of any company or companies covered hereunder, the laws of the applicable domiciliary state(s) shall apply. In the event of a conflict between any provision of this Article and the laws of
the domiciliary state of any company or companies covered hereunder, that domiciliary state’s laws shall prevail. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

25 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XXXII 

ARBITRATION 
  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance, or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration shall be in writing and sent by certified mail, return receipt requested, or such
reputable courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	Notwithstanding the provisions of the foregoing paragraph, the Company shall have the option to either litigate or arbitrate any dispute in which the Reinsurer makes any allegation of misrepresentation, non-disclosure,
concealment, fraud or bad faith and/or where the Reinsurer has experienced a Special Termination Event, as defined in the SPECIAL TERMINATION AND OTHER REMEDIES ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If the responding party fails to appoint its arbitrator within 30 days after its receipt of the claimant party’s notice requesting arbitration, the claimant
party, after 10 days’ notice by certified mail or reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

	D.	The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. Should the two arbitrators fail to choose the third arbitrator within 30 days of
the appointment of the second arbitrator, the parties shall appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS) Umpire Selection Procedure. All arbitrators shall be disinterested active
or former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. In the event of the resignation or death of any arbitrator, a replacement shall be appointed in the same manner as the resigning or deceased
arbitrator was appointed and the newly constituted panel shall take all necessary and/or reasonable measures to continue the arbitration proceedings without additional delay. 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all
judicial formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Clearwater, Florida, but the venue may be changed when deemed by the panel to be in the best
interest of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Florida. The decision of any two arbitrators when rendered in writing shall be final and binding. The panel
is empowered to grant interim relief as it may deem appropriate. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

26 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	F.	The panel shall make its decision as promptly as possible following the termination of the hearings, considering the terms and conditions expressed in this Contract and the custom and practice of the applicable
insurance and reinsurance business. Judgment upon the award may be entered in any court having jurisdiction thereof. 

  

	G.	If more than one Reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, 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 the one party; provided, however, that nothing therein 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 under the terms of this Contract from several to joint. 

  

	H.	Each party shall bear the expense of the arbitrator selected by or for it and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be
allocated by the panel. The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. 

ARTICLE XXXIII 
 SERVICE OF
SUIT 
 (This Article is 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. This Article is not intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the Reinsurer to perform its obligations under this Contract, the Reinsurer, at the request of the Company, shall 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 selected, whether such court is the one
originally chosen by the Company and accepted by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said court jurisdiction and, in any suit instituted
against it upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. The validity and/or enforceability of any arbitration award or judgment obtained in the United States shall
not be contested by the Reinsurer in any jurisdiction outside of the United States. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

27 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	B.	Service of process in such suit may be made upon the law firm of Mendes and Mount, 750 Seventh Avenue, New York, NY 10019, the law firm of Foley & Lardner LLP, 555 California Street, Suite 1700, San
Francisco, California 94104-1520, or another party specifically designated by the Reinsurer in its Interests and Liabilities Agreement attached hereto.

  

	C.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance, or
other officer specified for that purpose in the statute, or his/her successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceedings instituted by or on behalf of the
Company or any beneficiary hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof.

  

	D.	The individual named in paragraph C shall be deemed the Reinsurer’s agent for the service of process: 

  

	 	1.	where the address designated in, or pursuant to paragraph B is invalid; or 

  

	 	2.	to the extent necessary to bring this Contract into conformity with the applicable law of a state with jurisdiction over the Company. 

ARTICLE XXXIV 
 MODE OF
EXECUTION 
 This Contract may be executed either by an original written ink signature of paper documents, by an exchange of facsimile copies showing
the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as to satisfy the parties at the time of execution that the version of the document agreed to by each party
shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this Contract. This
Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 
 ARTICLE
XXXV 
 INTERMEDIARY 
 Willis Re Inc.,
7760 France Avenue South, Suite 450, Minneapolis, Minnesota 55435 is hereby recognized as the intermediary negotiating this Contract and through whom all communications relating thereto shall be transmitted to the Company or the Reinsurer.
However, all communications concerning accounts, claim information, funds, and inquiries related thereto shall be transmitted to the Company or the Reinsurer through Willis Re Inc., 5420 Millstream

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

28 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 
Road, Suite 300, McLeansville, North Carolina 27301-9528. Payments by the Company to Willis Re Inc. shall be deemed to constitute payment to the
Reinsurer and payments by the Reinsurer to Willis Re Inc. 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 by its duly authorized representative has executed this Contract as of the date specified below: 

Signed this 1st day of August, 2014. 
  

							
	HERITAGE PROPERTY & CASUALTY INSURANCE COMPANY	 	
			
	By	 	 /s/ Richard A. Widdicombe
	 	
			
	Printed Name	 	 Richard A. Widdicombe
	 	
			
	Title	 	 President
	 	

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 SCHEDULE A 

SIXTH PROPERTY CATASTROPHE 

EXCESS OF LOSS REINSURANCE CONTRACT 

Effective: July 1, 2014 

HERITAGE PROPERTY & CASUALTY INSURANCE COMPANY 

Clearwater, Florida 

including any and/or all of the subsidiary or affiliate companies that are now or may hereafter come under the ownership, management and/or
control of the Company 
  

					
	 	  	Sixth Excess	 
	 	  	Top & Drop Layer	 
	 	  	109895001-14	 
	 Company’s Retention
	  	$	2,000,000	  
	 Reinsurer’s Per Occurrence Limit
	  	$	50,000,000	  
	 Reinsurer’s Term Limit
	  	$	50,000,000	  
	 Rate on PML
	  	 	[***]	% 
	 Annual Deposit Premium
	  	$	[***]	  
	 Quarterly Deposit Premium
	  	$	[***]	  
	 Minimum Premium
	  	$	[***]	  

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 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 the 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. 

 NOTE: Without in any way restricting the operations 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 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL
DAMAGE - REINSURANCE – CANADA 
  

	1)	This Agreement does not cover any loss or liability accruing to the Reinsured, 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 Agreement does not cover any loss or liability accruing to the Reinsured, 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: 

  

	 	(a)	Nuclear reactor power plants including all auxiliary property on the site, or 

  

	 	(b)	Any other nuclear reactor installation, including laboratories handling radioactive materials in connection with reactor installations, and critical facilities as such, or 

 

	 	(c)	Installations for fabricating complete fuel elements or for processing substantial quantities of radioactive materials, and for reprocessing, salvaging, chemically separating, storing or disposing of spent nuclear fuel
or waste materials, or 

  

	 	(d)	Installations other than those listed in (c) above using substantial quantities of radioactive isotopes or other products of nuclear fission. 

 

	3)	Without in any way restricting the operation of paragraphs 1 and 2 of this clause, this Agreement does not cover any loss or liability by radioactive contamination accruing to the Reinsured, 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 the Reinsured does not have knowledge of such nuclear reactor power plant or nuclear installation, or 

  

	 	(b)	where the said insurance contains a provision excluding coverage for damage to property caused by or resulting from radioactive contamination, however caused. 

 

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

  

	5)	This clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered by the Reinsured to be the primary hazard. 

 

	6)	The term “radioactive material” means uranium, thorium, plutonium, neptunium, their derivatives and compounds, radioactive isotopes of other elements and any other substances which may be designated by or
pursuant to any law, act or statute, or any law amendatory thereof as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic energy. 

 

	7)	Reinsured to be sole judge of what constitutes: 

  

	 	(a)	substantial quantities, and 

  

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

  

	8)	Without in any way restricting the operation of paragraphs 1, 2, 3, and 4 of this clause, this Agreement does not cover any loss or liability accruing to the Reinsured, directly or indirectly, and whether as Insurer or
Reinsurer caused: 

  

	 	(a)	by any nuclear incident as defined in pursuant to the Nuclear Liability Act or any other nuclear liability act, law or statute, or any law amendatory thereof or nuclear explosion, except for ensuing loss or damage which
results directly from fire, lightning or explosion of natural, coal or manufactured gas; 

  

	 	(b)	by contamination by radioactive material. 

  

	NOTE:	Without in any way restricting the operation of paragraphs 1, 2, 3 and 4 of this clause, paragraph 8 of this clause shall only apply to all original contracts of the Reinsured whether new, renewal or replacement which
become effective on or after December 31, 1992. 

 01/04/96 

N.M.A. 1980a 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994) 

(WORLDWIDE EXCLUDING U.S.A. AND CANADA) 

This agreement shall exclude Nuclear Energy Risks whether such risks are written directly and/or by way of reinsurance and/or via Pools and/or Associations.

 For all purposes of this agreement Nuclear Energy Risks shall mean all first party and/or third party insurances or reinsurances (other than
Workers’ Compensation and Employers’ Liability) in respect of: 
  

	I	All Property on the site of a nuclear power station. 

 Nuclear Reactors, reactor
buildings and plant and equipment therein on any site other than a nuclear power station. 
  

	II	All Property, on any site (including but not limited to the sites referred to in (I) above) used or having been used for: 

 

	 	(a)	The generation of nuclear energy; or 

  

	 	(b)	The Production, Use or Storage of Nuclear Material. 

  

	III	Any other Property eligible for insurance by the relevant local Nuclear Insurance Pool and/or Association but only to the extent of the requirements of that local Pool and/or Association. 

 

	IV	The supply of goods and services to any of the sites described in I to III above, unless such insurances or reinsurances shall exclude the perils of irradiation and contamination by Nuclear Material.

 Except as undernoted, Nuclear Energy Risks shall not include: 
  

	(i)	Any insurance or reinsurance in respect of the construction or erection or installation or replacement or repair or maintenance or decommissioning of Property as described in I to III above (including
contractors’ plant and equipment); 

  

	(ii)	Any Machinery Breakdown or other Engineering insurance or reinsurance not coming within the scope of I above; 

Provided always that such insurance or reinsurance shall exclude the perils of irradiation and contamination by Nuclear Material. 

However, the above exemption shall not extend to: 
  

	1.	The provision of any insurance or reinsurance whatsoever in respect of: 

  

	 	(a)	Nuclear Material; 

  

	 	(b)	Any Property in the High Radioactivity Zone or Area of any Nuclear Installation as from the introduction of Nuclear Material or—for reactor installations—as from fuel loading or
first criticality where so agreed with the relevant local Nuclear Insurance Pool and/or Association. 

  

	2.	The provision of any insurance or reinsurance for the undernoted perils: 

  

	 	•	 	Fire, lightning, explosion; 

  

	 	•	 	Earthquake; 

  

	 	•	 	Aircraft and other aerial devices or articles dropped therefrom; 

  

	 	•	 	Irradiation and radioactive contamination; 

  

	 	•	 	Any other peril insured by the relevant local Nuclear Insurance Pool and/or Association; 

 in
respect of any other Property not specified in 1 above which directly involves the Production, Use or Storage of Nuclear Material as from the introduction of Nuclear Material into such Property. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 Definitions 

“Nuclear Material” means: 
  

	(i)	Nuclear fuel, other than natural uranium and depleted uranium, capable of producing energy by a self-sustaining chain process of nuclear fission outside a Nuclear Reactor, either alone or in combination with some
other material; and 

  

	(ii)	Radioactive Products or Waste. 

 “Radioactive Products or Waste” means any radioactive
material produced in, or any material made radioactive by exposure to the radiation incidental to the production or utilisation of nuclear fuel, but does not include radioisotopes which have reached the final stage of fabrication so as to be usable
for any scientific, medical, agricultural, commercial or industrial purpose. 
 “Nuclear Installation” means: 

 

	(i)	Any Nuclear Reactor; 

  

	(ii)	Any factory using nuclear fuel for the production of Nuclear Material, or any factory for the processing of Nuclear Material, including any factory for the reprocessing of irradiated nuclear fuel; and

  

	(iii)	Any facility where Nuclear Material is stored, other than storage incidental to the carriage of such material. 

“Nuclear Reactor” means any structure containing nuclear fuel in such an arrangement that a self-sustaining chain process of nuclear fission
can occur therein without an additional source of neutrons. 
 “Production, Use or Storage of Nuclear Material” means the production,
manufacture, enrichment, conditioning, processing, reprocessing, use, storage, handling and disposal of Nuclear Material. 
 “Property”
shall mean all land, buildings, structures, plant, equipment, vehicles, contents (including but not limited to liquids and gases) and all materials of whatever description whether fixed or not. 

“High Radioactivity Zone or Area” means: 
  

	(i)	For nuclear power stations and Nuclear Reactors, the vessel or structure which immediately contains the core (including its supports and shrouding) and all the contents thereof, the fuel elements, the control
rods and the irradiated fuel store; and 

  

	(ii)	For non-reactor Nuclear Installations, any area where the level of radioactivity requires the provision of a biological shield. 

10/3/94 
 N.M.A. 1975a 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 POOLS, ASSOCIATIONS & SYNDICATES EXCLUSION CLAUSE 

SECTION A: 
 EXCLUDING: 

 

	 	(a)	All Business derived directly or indirectly from any Pool, Association or Syndicate which maintains its own reinsurance facilities. 

  

	 	(b)	Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the purpose of insuring Property whether on a country-wide basis or in respect of designated areas. This exclusion shall not apply
to so-called Automobile Insurance Plans or other Pools formed to provide coverage for Automobile Physical Damage. 

 SECTION B:

 EXCLUDING: 
 Business written by the Company
for the same perils, which is known at the time to be insured by, or in excess of underlying amounts placed in, any Pools, Associations, or Syndicates, whether by way of insurance or reinsurance, formed for the purpose of writing any of the
following: 
 Oil, Gas or Petro-Chemical Plants, 

Oil or Gas Drilling Rigs, 

Aviation Risks. 
 SECTION B does not
apply: 
  

	 	(a)	Where the Total Insured Value over all interests of the risk in question is less than $[***]. 

  

	 	(b)	To interests traditionally underwritten as Inland Marine or Stock and/or Contents written on a Blanket basis. 

  

	 	(c)	To Contingent Business Interruption, except when the Company is aware that the key location is known at the time to be insured in any Pool, Association or Syndicate named above, other than as provided for under Section
B (a). 

  

	 	(d)	To risks as follows: 

 Offices, Hotels, Apartments, Hospitals, Educational Establishments,
Public Utilities (other than Railroad Schedules) and Builder’s Risks on the classes of risks specified in this subsection (d) only. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 Where this Clause attaches to catastrophe excesses, the following Section C is added: 

SECTION C: 
 NEVERTHELESS the Reinsurer
specifically agrees that liability accruing to the Company from its participation in residual market mechanisms including but not limited to: 
  

	 	(l)	The following so-called “Coastal Pools”: 

 ALABAMA INSURANCE UNDERWRITING ASSOCIATION

 MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION 

NORTH CAROLINA INSURANCE UNDERWRITING ASSOCIATION 

SOUTH CAROLINA WINDSTORM AND HAIL UNDERWRITING ASSOCIATION 

TEXAS WINDSTORM INSURANCE ASSOCIATION 

AND 
  

	 	(2)	All “FAIR Plan” and “Rural Risk Plan” business 

 AND 

 

	(3)	The Louisiana Citizens Property Insurance Corporation and the California Earthquake Authority (CEA) 

 for all
perils otherwise protected hereunder shall not be excluded, except, however, that this reinsurance does not include any increase in such liability resulting from: 
  

	 	(i)	The inability of any other participant in such “Coastal Pool” and/or “FAIR Plan” and/or “Rural Risk Plan” and/or Residual Market Mechanisms to meet its liability. 

 

	 	(ii)	Any claim against such “Coastal Pool” and/or “FAIR Plan” and/or “Rural Risk Plan” and/or Residual Market Mechanisms, or any participant therein, including the Company, whether by way of
subrogation or otherwise, brought by or on behalf of any Insolvency Fund (as defined in the Insolvency Fund Exclusion Clause incorporated in this Contract). 

The Company will deduct from the Ultimate Net Loss any payments or credits received as recoupment of any assessment that has been included in the Ultimate Net
Loss. The Company will recoup such assessment where it is commercially practicable or allowable to do so. 
 SECTION D: 

Notwithstanding Section C above, in respect of the CEA, where an assessment is made against the Company by the CEA, the Company may include in the Ultimate Net
Loss only that assessment directly attributable to each separate loss occurrence covered hereunder. The Company’s initial capital contribution to the CEA shall not be included in the Ultimate Net Loss. Any assessments for accounting years
subsequent to that in which the loss occurrence commenced may not be included in the Ultimate Net Loss hereunder. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 MOLD EXCLUSION 

This Contract does not apply to loss or liability in any way or to any extent arising out of the actual or alleged presence or actual, alleged or threatened
presence of fungi including, but not limited to, mold, mildew, mycotoxins, microbial volatile organic compounds or other “microbial contamination.” This includes: 
  

	 	1.	Any supervision, instruction, recommendations, warnings, or advice given or which should have been given in connection with the above; and 

 

	 	2.	Any obligation to share damages with or repay someone else who must pay damages because of such injury or damage. 

For purposes of this exclusion, “microbial contamination” means any contamination, either airborne or surface, which arises out of or is related to
the presence of fungi, mold, mildew, mycotoxins, microbial volatile organic compounds or spores, including, without limitation, Penicillium, Aspergillus, Fusarium, Aspergillus Flavus and Stachybotrys chartarum. 

Losses resulting from the above causes do not in and of themselves constitute an event unless arising out of one or more of the following perils, in which
case this exclusion does not apply: 
 Fire, lightning, explosion, aircraft or vehicle impact, falling objects, 

windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano, 

tsunami, flood, freeze or weight of snow. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 TERRORISM EXCLUSION (PROPERTY TREATY REINSURANCE) N.M.A. 2930C 

Notwithstanding any provision to the contrary within this reinsurance agreement or any endorsement thereto, it is agreed that this reinsurance agreement
excludes loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any act of terrorism, as defined herein, regardless of any other cause or event contributing
concurrently or in any other sequence to the loss. 
 An act of terrorism includes any act, or preparation in respect of action, or threat of action
designed to influence the government de jure or de facto of any nation or political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of the public of any nation by any
person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s) or government(s) de jure or de facto, and which: 
  

	(i)	involves violence against one or more persons; or 

  

	(ii)	involves damage to property; or 

  

	(iii)	endangers life other than that of the person committing the action; or 

  

	(iv)	creates a risk to health or safety of the public or a section of the public; or 

  

	(v)	is designed to interfere with or to disrupt an electronic system. 

 This reinsurance agreement also excludes
loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with any action in controlling, preventing, suppressing, retaliating against, or responding to any act of
terrorism. Notwithstanding the above and subject otherwise to the terms, conditions, and limitations of this reinsurance agreement, in respect only of personal lines this reinsurance agreement will pay actual loss or damage (but not related cost or
expense) caused by any act of terrorism provided such act is not directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with biological, chemical, radioactive, or nuclear pollution or contamination or
explosion. 
 NMA2930c 
 22/11/02 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.Contract

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 Exhibit 10.18 

REIMBURSEMENT CONTRACT 

Effective: June 1, 2014 

(Contract) 
 between

 HERITAGE PROPERTY AND CASUALTY INSURANCE COMPANY 

(Company) 
 NAIC # 14407

 and 
 THE STATE BOARD
OF ADMINISTRATION OF THE STATE OF FLORIDA (SBA) 
 WHICH ADMINISTERS THE FLORIDA HURRICANE CATASTROPHE FUND (FHCF) 

PREAMBLE 
 The Legislature of the State of Florida has
enacted Section 215.555, Florida Statutes (Statute), which directs the SBA to administer the FHCF. This Contract, consisting of the principal document entitled Reimbursement Contract, addressing the mandatory FHCF coverage, and Addenda, is
subject to the Statute and to any administrative rule adopted pursuant thereto, and is not intended to be in conflict therewith. All provisions in the principal document are equally applicable to each Addendum unless specifically superseded by one
of the Addenda. 
 In consideration of the promises set forth in this Contract, the parties agree as follows: 

ARTICLE I—SCOPE OF AGREEMENT 
 As a condition
precedent to the SBA’s obligations under this Contract, the Company, an Authorized Insurer or an entity writing Covered Policies under Section 627.351, Florida Statutes, in the State of Florida, shall report to the SBA in a specified
format the business it writes which is described in this Contract as Covered Policies. 
 The terms of this Contract shall determine the rights and
obligations of the parties. This Contract provides reimbursement to the Company under certain circumstances, as described herein, and does not provide or extend insurance or reinsurance coverage to any person, firm, corporation or other entity. The
SBA shall reimburse the Company for its Ultimate Net Loss on Covered Policies, which were in force and in effect at the time of the Covered Event causing the loss, in excess of the Company’s Retention as a result of each Loss Occurrence
commencing during the Contract Year, to the extent funds are available, all as hereinafter defined. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE II—PARTIES TO THE CONTRACT 

This Contract is solely between the Company and the SBA which administers the FHCF. In no instance shall any insured of the Company or any claimant against an
insured of the Company, or any other third party, have any rights under this Contract, except as provided in Article XIV. The SBA will only disburse funds to the Company, except as provided for in Article XIV of this Contract. The Company shall not,
without the prior approval of the Office of Insurance Regulation, sell, assign, or transfer to any third party, in return for a fee or other consideration any sums the FHCF pays under this Contract or the right to receive such sums. 

ARTICLE III—TERM 
 This Contract shall apply to Loss
Occurrences which commence during the period from 12:00:01 a.m., Eastern Time, June 1, 2014, to 12:00 midnight, Eastern Time, May 31, 2015 (Contract Year). 

The Company must designate a coverage level, make the required selections, and return this fully executed Contract (two originals) to the FHCF Administrator
so that the Contract is received by the FHCF Administrator no later than 5 p.m., Central Time, March 1, 2014. Failure to do so may result in a referral to the Office of Insurance Regulation within the Department of Financial Services for
administrative action. Furthermore, the Company’s coverage level under this Contract will be deemed as follows: 
  

	(1)	For Companies that are a member of a National Association of Insurance Commissioners (NAIC) group, the same coverage level selected by the other Companies of the same NAIC group shall be deemed. If executed Contracts
for none of the members of an NAIC group have been received by the FHCF Administrator, the coverage level from the prior Contract Year shall be deemed. 

  

	(2)	For Companies that are not a member of an NAIC group under which other Companies are active participants in the FHCF, the coverage level from the prior Contract Year shall be deemed. 

 

	(3)	For New Participants, as that term is defined in Article V(21), that are a member of an NAIC group, the same coverage level selected by the other Companies of the same NAIC group shall be deemed. 

 

	(4)	For New Participants that are not a member of an NAIC group under which other Companies are active participants in the FHCF, the 45%, 75% or 90% coverage levels may be selected providing that the FHCF Administrator
receives executed Contracts within 30 calendar days of the effective date of the first Covered Policy, otherwise, the 45% coverage level shall be deemed. 

Pursuant to the terms of this Contract, the SBA shall not be liable for Loss Occurrences which commence after the effective time and date of expiration or
termination. Should this Contract expire or terminate while a Loss Occurrence covered hereunder is in progress, the SBA shall be responsible for such Loss Occurrence in progress in the same manner and to the same extent it would have been
responsible had the Contract expired the day following the conclusion of the Loss Occurrence in progress. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE IV—LIABILITY OF THE FHCF 

 

	(1)	The SBA shall reimburse the Company, with respect to each Loss Occurrence commencing during the Contract Year for the “Reimbursement Percentage” elected, this percentage times the amount of Ultimate Net Loss
paid by the Company in excess of the Company’s Retention, as adjusted pursuant to Article V(28), plus 5% of the reimbursed losses for Loss Adjustment Expense Reimbursement. 

 

	(2)	The Reimbursement Percentage will be 45% or 75% or 90%, at the Company’s option as elected under Article XVIII. 

  

	(3)	The aggregate liability of the FHCF with respect to all Reimbursement Contracts covering this Contract Year shall not exceed the limit set forth under Section 215.555(4)(c)1., Florida Statutes. For specifics
regarding loss reimbursement calculations, see section (3)(c) of Article X herein. 

  

	(4)	Upon the occurrence of a Covered Event, the SBA shall evaluate the potential losses to the FHCF and the FHCF’s capacity at the time of the event. The initial Projected Payout Multiple used to reimburse the Company
for its losses shall not exceed the Projected Payout Multiple as calculated based on the capacity needed to provide the FHCF’s mandatory coverage. If it appears that the Estimated Claims-Paying Capacity may be exceeded, the SBA shall reduce the
projected payout factors or multiples for determining each participating insurer’s projected payout uniformly among all insurers to reflect the Estimated Claims-Paying Capacity. 

 

	(5)	Reimbursement amounts shall not be reduced by reinsurance paid or payable to the Company from other sources. 

  

	(6)	After the end of the calendar year, the SBA shall notify insurers of the estimated Borrowing Capacity and the Balance of the Fund as of December 31. In May and October of each year, the SBA shall publish in the
Florida Administrative Weekly a statement of the FHCF’s estimated Borrowing Capacity, Estimated Claims-Paying Capacity, and the projected Balance of the Fund as of December 31. 

 

	(7)	The obligation of the SBA with respect to all Contracts covering a particular Contract Year shall not exceed the Balance of the Fund as of December 31 of that Contract Year, together with the maximum amount the SBA
is able to raise through the issuance of revenue bonds or through other means available to the SBA under Section 215.555, Florida Statutes, up to the limit in accordance with Section 215.555(4)(c)1., Florida Statutes. The obligations and
the liability of the SBA are more fully described in Rule 19-8.013, Florida Administrative Code (F.A.C.). 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE V—DEFINITIONS 
  

	(1)	Actual Claims-Paying Capacity of the FHCF 

 This term means the sum of the Balance of the Fund as of
December 31 of a Contract Year, plus any reinsurance purchased by the FHCF, plus the amount the SBA is able to raise through the issuance of revenue bonds, or through other means available by law to the SBA, up to the limit in accordance with
Section 215.555(4)(c)1. and (6), Florida Statutes. 
  

	(2)	Actuarially Indicated 

 This term means, with respect to Premiums paid by Companies for reimbursement
provided by the FHCF, an amount determined in accordance with the definition provided in Section 215.555(2)(a), Florida Statutes. 
  

	(3)	Additional Living Expense (ALE) 

 ALE losses covered by the FHCF are not to exceed 40 percent of the
insured value of a Residential Structure or its contents based on the coverage provided in the policy. Fair rental value, loss of rents, or business interruption losses are not covered by the FHCF. 

 

	(4)	Administrator 

 This term means the entity with which the SBA contracts to perform administrative tasks
associated with the operations of the FHCF. The Administrator is Paragon Strategic Solutions Inc., 8200 Tower, 5600 West 831-d Street, Suite 1100, Minneapolis, Minnesota 55437. The telephone number is (800) 689-3863, and the facsimile number is
(800) 264-0492. 
  

	(5)	Authorized Insurer 

 This term is defined in Section 624.09(1), Florida Statutes. 

 

	(6)	Borrowing Capacity 

 This term means the amount of funds which are able to be raised by the issuance of
revenue bonds or through other financing mechanisms, less bond issuance expenses and reserves. 
  

	(7)	Citizens Property Insurance Corporation (Citizens) 

 This term means the entity formed under
Section 627.351(6), Florida Statutes, and refers to both Citizens Property Insurance Corporation Coastal Account and Citizens Property Insurance Corporation Personal Lines and Commercial Lines Accounts. 

 

	(8)	Contract 

 This term means this Reimbursement Contract for the current Contract Year. 

 

	(9)	Covered Event 

 This term means any one storm declared to be a hurricane by the National Hurricane Center
which causes insured losses in Florida. A Covered Event begins when a hurricane causes damage in Florida while it is a hurricane and continues throughout any subsequent downgrades in storm status by the National Hurricane Center regardless of
whether the hurricane makes landfall. Any storm, including a tropical storm, which does not become a hurricane is not a Covered Event. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(10)	Covered Policy or Covered Policies 

  

	 	(a)	Covered Policy, as defined in Section 215.555(2)(c), Florida Statutes, is further clarified to mean only that portion of a binder, policy or contract of insurance that insures real or personal property located in
the State of Florida to the extent such policy insures a Residential Structure, as defined in definition (27) herein, or the contents of a Residential Structure, located in the State of Florida. 

 

	 	(b)	Due to the specialized nature of the definition of Covered Policies, Covered Policies are not limited to only one line of business in the Company’s annual statement required to be filed by Section 624.424,
Florida Statutes. Instead, Covered Policies are found in several lines of business on the Company’s annual statement. Covered Policies will at a minimum be reported in the Company’s statutory annual statement as: 

 

	 	1.	Fire 

  

	 	2.	Allied Lines 

  

	 	3.	Farmowners Multiple Peril 

  

	 	4.	Homeowners Multiple Peril 

  

	 	5.	Commercial Multiple Peril (non liability portion, covering condominiums and apartments) 

  

	 	6.	Inland Marine 

 Note that where particular insurance exposures, e.g., mobile homes, are reported on an annual
statement is not dispositive of whether or not the exposure is a Covered Policy. 
  

	 	(c)	This definition applies only to the first-party property section of a policy pertaining strictly to the structure, its contents, appurtenant structures, or ALE coverage. 

 

	 	(d)	Covered Policy also includes any collateral protection insurance policy covering personal residences which protects both the borrower’s and the lender’s financial interest, in an amount at least equal to the
coverage for the dwelling in place under the lapsed homeowner’s policy, if such policy can be accurately reported as required in Section 215.555(5), Florida Statutes. A Company will be deemed to be able to accurately report data if the
required data, as specified in the Premium Formula adopted in Section 215.555(5), Florida Statutes, is available. 

  

	 	(e)	See Article VI of this Contract for specific exclusions. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(11)	Deductible Buy-Back Policies 

 This term means a specific policy that provides coverage to a policyholder
for some portion of the policyholder’s deductible under a policy issued by another insurer. 
  

	(12)	Estimated Claims-Paying Capacity of the FHCF 

 This term means the sum of the projected Balance of the
Fund as of December 31 of a Contract Year, plus any reinsurance purchased by the FHCF, plus the most recent estimate of the Borrowing Capacity of the FHCF, determined pursuant to Section 215.555(4)(c), Florida Statutes. 

 

	(13)	Excess Policies 

 This term, for the purposes of this Contract, means a policy that provides insurance
protection for large commercial property risks and that provides a layer of coverage above a primary layer (which is insured by a different insurer) that acts much the same as a very large deductible. 

 

	(14)	Florida Department of Financial Services (Department) 

 This term means the Florida regulatory agency,
created pursuant to Section 20.121, Florida Statutes, which is charged with regulating the Florida insurance market and administering the Florida Insurance Code. 
  

	(15)	Florida Insurance Code 

 This term means those chapters identified in Section 624.01, Florida
Statutes, which are designated as the Florida Insurance Code. 
  

	(16)	Formula or the Premium Formula 

 This term means the Formula approved by the SBA for the purpose of
determining the Actuarially Indicated Premium to be paid to the FHCF. The Premium Formula is defined as an approach or methodology which leads to the creation of premium rates. The resulting rates are therefore incorporated as part of the Premium
Formula. The Formula, shall, pursuant to Section 215.555(5)(b), Florida Statutes, include a cash build-up factor in the amount specified therein. 
  

	(17)	Fund Balance or Balance of the Fund as of December 31 

 These terms mean the amount of assets
available to pay claims, not including any bonding proceeds, resulting from Covered Events which occurred during the Contract Year. 
  

	(18)	Insurer Group 

 For purposes of the coverage option election in Section 215.555(4)(b), Florida
Statutes, Insurer Group means the group designation assigned by the National Association of Insurance Commissioners (NAIC) for purposes of filing consolidated financial statements. A Company is a member of a group as designated by the NAIC until
such Company is assigned another group designation or is no longer a member of a group recognized by the NAIC. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(19)	Loss Occurrence 

 This term means the sum of individual insured Losses incurred under Covered Policies
resulting from the same Covered Event. “Losses” means all incurred losses under Covered Policies, including Additional Living Expenses not to exceed 40 percent of the insured value of a Residential Structure or its contents and amounts
paid as fees on behalf of or inuring to the benefit of a policyholder, and excludes allocated or unallocated Loss Adjustment Expenses. 
  

	(20)	Loss Adjustment Expense Reimbursement 

  

	 	(a)	Loss Adjustment Expense Reimbursement shall be 5% of the reimbursed losses under this Contract as provided in Article IV, pursuant to Section 215.555(4)(b)1., Florida Statutes. 

 

	 	(b)	To the extent that loss reimbursements are limited to the Payout Multiple applied to each Company, the 5% Loss Adjustment Expense is included in the total Payout Multiple applied to each Company. 

 

	(21)	New Participant(s) 

 This term means all Companies which begin writing Covered Policies on or after the
beginning of the Contract Year. A Company that removes exposure from either Citizens entity, as that term is defined in (7) above, pursuant to an assumption agreement effective on or after June 1 and had written no other Covered Policies
before June 1 is also considered a New Participant. 
  

	(22)	Office of Insurance Regulation 

 This term means that office within the Department of Financial Services
and which was created in Section 20.121(3), Florida Statutes. 
  

	(23)	Payout Multiple 

 This term means the multiple as calculated in accordance with
Section 215.555(4)(c), Florida Statutes, which is derived by dividing the single season Claims-Paying Capacity of the FHCF by the total aggregate industry Reimbursement Premium for the FHCF for the Contract Year billed as of December 31 of
the Contract Year. The final Payout Multiple is determined once Reimbursement Premiums have been billed as of December 31 and the amount of bond proceeds has been determined. 

 

	(24)	Premium 

 This term means the same as Reimbursement Premium. 

 

	(25)	Projected Payout Multiple 

 The Projected Payout Multiple is used to calculate a Company’s projected
payout pursuant to Section 215.555(4)(d)2., Florida Statutes. The Projected Payout Multiple is derived by dividing the estimated single season Claims-Paying Capacity of the FHCF by the estimated total aggregate industry Reimbursement Premium
for the FHCF for the Contract Year. The Company’s Reimbursement Premium as paid to the SBA for the Contract Year is multiplied by the Projected Payout Multiple to estimate the Company’s coverage from the FHCF for the Contract Year. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(26)	Reimbursement Premium 

 This term means the Premium determined by multiplying each $1,000 of insured
value reported by the Company in accordance with Section 215.555(5)(b), Florida Statutes, by the rate as derived from the Premium Formula, as described in Rule 19-8.028, F.A.C. 

 

	(27)	Residential Structures 

 This term means units or buildings used for dwelling or habitational
occupancies, including the primary structure and appurtenant structures insured under the same policy and any other structures covered under endorsements associated with a policy covering a residential structure. Covered Residential Structures do
not include any structures listed under Article VI herein or structures used solely for non-residential purposes. 
  

	(28)	Retention 

 The Company’s Retention means the amount of hurricane losses under Covered Policies
which must be incurred by the Company before it is eligible for reimbursement from the FHCF. 
  

	 	(a)	When the Company experiences covered losses from one or two Covered Events during the Contract Year, the Company’s full Retention shall be applied to each of the Covered Events. 

 

	 	(b)	When the Company experiences covered losses from more than two Covered Events during the Contract Year, the Company’s full Retention shall be applied to each of the two Covered Events causing the largest covered
losses for the Company. For each other Covered Event resulting in covered losses, the Company’s Retention shall be reduced to one-third of its full Retention and applied to all other Covered Events. 

 

	 	1.	All reimbursement of covered losses for each Covered Event shall be based on the Company’s full Retention until December 31 of the Contract Year. Adjustments to reflect a reduction to one-third of the full
Retention shall be made on or after December 31 of the Contract Year provided the Company reports its losses as specified in this Contract. 

  

	 	2.	 Adjustments to the Company’s Retention shall be based upon its paid and outstanding losses as reported on the Company’s Proof of Loss
Reports but shall not include incurred but not reported losses. The Company’s Proof of Loss Reports shall be used to determine which Covered Events constitute the Company’s two largest Covered Events, and the reduction to one-third of the
full Retention shall be applied to all other Covered Events 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
for the Contract Year. After this initial determination, any subsequent adjustments shall be made by the SBA only if the quarterly loss reports reveal that loss development patterns have resulted
in a change in the order of Covered Events entitled to the reduction to one-third of the full Retention. 

  

	 	(c)	The Company’s full Retention is established in accordance with the provisions of Section 215.555(2)(e), Florida Statutes, and shall be determined by multiplying the Retention Multiple by the Company’s
Reimbursement Premium for the Contract Year. 

  

	 	(d)	Once the Company’s limit of coverage has been exhausted, the Company will not be entitled to further reimbursements. 

  

	(29)	Retention Multiple 

  

	 	(a)	The Retention Multiple is applied to the Company’s Reimbursement Premium to determine the Company’s Retention. The Retention Multiple for the 2014/2015 Contract Year shall be equal to $[***] billion, adjusted
based upon the reported exposure for the 2012/2013 Contract Year to reflect the percentage growth in exposure to the FHCF since 2004, divided by the estimated total industry Reimbursement Premium at the 90% reimbursement percentage level for the
Contract Year as determined by the SBA. 

  

	 	(b)	The Retention Multiple as determined under (29)(a) above shall be adjusted to reflect the reimbursement percentage elected by the Company under this Contract as follows: 

 

	 	1.	If the Company elects a 90% reimbursement percentage, the adjusted Retention Multiple is 100% of the amount determined under (29)(a) above; 

 

	 	2.	If the Company elects a 75% reimbursement percentage, the adjusted Retention Multiple is 120% of the amount determined under (29)(a) above; or 

 

	 	3.	If the Company elects a 45% reimbursement percentage, the adjusted Retention Multiple is 200% of the amount determined under (29)(a) above. 

 

	(30)	Ultimate Net Loss 

  

	 	(a)	This term means all Losses of the Company under Covered Policies in force at the time of a Covered Event, as defined under (9) above, prior to the application of the Company’s FHCF Retention, as defined under
(28) above, and reimbursement percentage, and excluding loss adjustment expense and any exclusions under Article VI herein, arising from each Loss Occurrence during the Contract Year, provided, however, that the Company’s Ultimate Net Loss
shall be determined in accordance with the deductible level written under the policy sustaining the loss. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	(b)	Salvages and all other recoveries, excluding reinsurance recoveries, shall be first deducted from such loss to arrive at the amount of liability attaching hereunder. 

 

	 	(c)	All salvages, recoveries or payments recovered or received subsequent to a loss settlement under this Contract shall be applied as if recovered or received prior to the aforesaid settlement and all necessary adjustments
shall be made by the parties hereto. 

  

	 	(d)	Nothing in this clause shall be construed to mean that losses under this Contract are not recoverable until the Company’s Ultimate Net Loss has been ascertained. 

 

	 	(e)	The SBA shall be subrogated to the rights of the Company to the extent of its reimbursement of the Company. The Company agrees to assist and cooperate with the SBA in all respects as regards such subrogation. The
Company further agrees to undertake such actions as may be necessary to enforce its rights of salvage and subrogation, and its rights, if any, against other insurers as respects any claim, loss, or payment arising out of a Covered Event.

 ARTICLE VI—EXCLUSIONS 

This Contract does not provide reimbursement for: 
  

	(1)	Any losses not defined as being within the scope of a Covered Policy. 

  

	(2)	Any policy which excludes wind or hurricane coverage. 

  

	(3)	Any Excess Policy or Deductible Buy-Back Policy that requires individual ratemaking, as determined by the FHCF. 

  

	(4)	(a) Any policy for Residential Structures, as defined in Article V(27) herein, that provides a layer of coverage underneath an Excess Policy, as defined in Article V(13) herein, issued by a different insurer; or

  

	 	(b)	Any other policy providing a layer of windstorm or hurricane coverage for a particular structure above or below a layer of windstorm or hurricane coverage under a separate policy issued by a different insurer, or any
other circumstance in which two or more insurers provide primary windstorm or hurricane coverage for a single structure using separate policy forms. 

  

	 	(c)	The exclusions in this subsection do not apply to primary quota share policies written by Citizens Property Insurance Corporation under Section 627.351(6)(c)2., Florida Statutes. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(5)	Any liability of the Company attributable to losses for fair rental value, loss of rent or rental income, or business interruption. 

  

	(6)	Any collateral protection policy that does not meet the definition of Covered Policy as defined in Article V(10)(d) herein. 

  

	(7)	Any reinsurance assumed by the Company. 

  

	(8)	Any exposure for hotels, motels, timeshares, shelters, camps, retreats, and any other rental property used solely for commercial purposes. 

 

	(9)	Any exposure for homeowner associations if no habitational structures are insured under the policy. 

  

	(10)	Any exposure for homes and condominium structures or units that are non-owner occupied and rented for six (6) or more rental periods by different parties during the course of a twelve (12) month period.

  

	(11)	Commercial healthcare facilities and nursing homes; however, a nursing home which is an integral part of a retirement community consisting primarily of habitational structures that are not nursing homes will not be
subject to this exclusion. 

  

	(12)	Any exposure under commercial policies covering only appurtenant structures or structures that do not function as a habitational structure (e.g., a policy covering only the pool of an apartment complex).

  

	(13)	Policies covering only Additional Living Expense. 

  

	(14)	Any exposure for barns or barns with apartments. 

  

	(15)	Any exposure for builders risk coverage or new Residential Structures still under construction. 

  

	(16)	Any exposure for recreational vehicles, golf carts, or boats (including boat related equipment) requiring licensing and written on a separate policy or endorsement. 

 

	(17)	Any liability of the Company for extra contractual obligations or liabilities in excess of original policy limits. This exclusion includes, but is not limited to, amounts paid as bad faith awards, punitive damages
awards, or other court-imposed fines, sanctions, or penalties; or other amounts in excess of the coverage limits under the Covered Policy. 

  

	(18)	Any losses paid in excess of a policy’s hurricane limit in force at the time of each Covered Event, including individual coverage limits (i.e., building, appurtenant structures, contents, and additional living
expense), or other amounts paid as the result of a voluntary expansion of coverage by the insurer, including, but not limited to, a waiver of an applicable deductible. This exclusion includes overpayments of a specific individual coverage limit even
if total payments under the policy are within the aggregate policy limit. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(19)	Any losses paid under a policy for Additional Living Expense, written as a time element coverage, in excess of the Additional Living Expense exposure reported for that policy under the Data Call for the applicable
Contract Year (unless policy limits have changed effective after June 30 of the Contract Year). 

  

	(20)	Any losses for which the Company’s claims files do not adequately support. Claim file support shall be deemed adequate if in compliance with the Records Retention Requirements outlined on the Form FHCF-L1B (Proof
of Loss Report) applicable to the Contract Year. 

  

	(21)	Any exposure for, or amounts paid to reimburse a policyholder for, condominium association loss assessments or under similar coverages for contractual liabilities. 

 

	(22)	Losses in excess of the sum of the Balance of the Fund as of December 31 of the Contract Year and the amount the SBA is able to raise through the issuance of revenue bonds or by the use of other financing
mechanisms, up to the limit pursuant to Section 215.555(4)(c), Florida Statutes. 

  

	(23)	Any liability assumed by the Company from Pools, Associations, and Syndicates. Exception: Covered Policies assumed from Citizens under the terms and conditions of an executed assumption agreement between the Authorized
Insurer and Citizens are covered by this Contract. 

  

	(24)	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. 

 

	(25)	“Insolvency fund” includes any guaranty fund, insolvency fund, plan, pool, association, fund or other arrangement, howsoever 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. 

  

	(26)	Property losses that are proximately caused by any peril other than a Covered Event, including, but not limited to, fire, theft, flood or rising water, or windstorm that does not constitute a Covered Event, or any
liability of the Company for loss or damage caused by or resulting from nuclear reaction, nuclear radiation, or radioactive contamination from any cause, whether direct or indirect, proximate or remote, and regardless of any other cause or event
contributing concurrently or in any other sequence to the loss. 

  

	(27)	The FHCF does not provide coverage for water damage which is generally excluded under property insurance contracts and has been defined to mean flood, surface water, waves, tidal water, overflow of a body of water,
storm surge, or spray from any of these, whether or not driven by wind. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(28)	Policies and endorsements predominantly covering Specialized Fine Arts Risks or collectible types of property meeting the following requirements: 

 

	 	(a)	A policy or endorsement covering Specialized Fine Arts Risks and not covering any Residential Structure and/or contents thereof (other than such specialized fine arts items covered in the Specialized Fine Arts policy or
endorsement) if it meets the description in subparagraph 1 and if all the conditions in subparagraphs 2. through 4. immediately below are met. 

  

	 	1.	For purposes of this exemption, a Specialized Fine Arts Risk policy or endorsement is a policy or endorsement that: 

  

	 	a.	Insures works of art, of rarity, or of historic value, such as paintings, works on paper, etchings, art glass windows, pictures, statuary, sculptures, tapestries, antique furniture, antique silver, antique rugs, rare
books or manuscripts, jewelry, or other similar items; 

  

	 	b.	Charges a minimum premium of $500; 

  

	 	c.	Insures scheduled items valued, in the aggregate, at no less than $100,000; and 

  

	 	d.	Requires an investment by the insured in loss control measures to protect the Specialized Fine Arts Risks being insured. 

  

	 	2.	The insurer must perform a periodic and thorough specialized inspection and must provide a specialized loss prevention service designed to prevent or minimize loss. 

 

	 	3.	The structure and its fine arts contents must be provided with satisfactory watchman or alarm service or its equivalent where necessary. 

 

	 	4.	The insurer must maintain a force of trained and competent loss prevention specialists, who perform the following tasks: 

  

	 	a.	Make loss prevention surveys of each Specialized Fine Arts Risk; 

  

	 	b.	Make available a specialized loss prevention service for the purpose of providing consultation regarding hazards to the fine arts being insured; 

 

	 	c.	Confirm through periodic inspections that loss prevention devices are properly maintained; 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	d.	Investigate reported losses; and 

  

	 	e.	Confer with the policyholder and confirm through periodic and unannounced inspections that recommended safety and loss control improvements are actually made. 

 

	 	(b)	Any individual policy written to solely cover personal property, scheduled or written under a blanket limit, with a policy limit equal to or exceeding $500,000 and which predominantly covers one or more classes of
collectible types of property shall be exempt from coverage under the Fund. Generally such classes of collectible property have unusually high values due to their investible, artistic, or unique intrinsic nature. Additionally, such exempt policy may
also include coverage for incidental items of personal property that may also be scheduled although such property may not be considered as a collectible. The predominant class of property covered under such excluded policy represents an unusually
high exposure value and such policy is intended to provide coverage for a class or classes of property that is not typical for the contents coverage under residential property insurance policies. In many cases property may be located at various
locations either in or outside the state of Florida or the location of the property may change from time to time. The investment nature of such property distinguishes this type of exposure from the typical contents associated with a Covered Policy.

  

	(29)	Any losses under liability coverages. 

 ARTICLE VII—MANAGEMENT OF CLAIMS AND LOSSES

 The Company shall investigate and settle or defend all claims and losses. All payments of claims or losses by the Company within the terms and limits
of the appropriate coverage parts of Covered Policies shall be binding on the SBA, subject to the terms of this Contract, including the provisions in Article XIII relating to inspection of records and examinations. 

ARTICLE VIII—LOSS REIMBURSEMENT ADJUSTMENTS 
  

	(1)	Offsets 

 The SBA reserves the right to offset amounts payable to the SBA from the Company, including
amounts payable under any Contract Year and the Company’s full Premium for the current Contract Year (regardless of installment due dates), against any reimbursement or advance amounts, or amounts agreed to in a commutation agreement, which are
due and payable to the Company from the SBA as a result of the liability of the SBA. 
  

	(2)	Reimbursement Adjustments 

 Section 215.555(4)(d) and (e), Florida Statutes, provides the SBA with
the right to seek the return of excess loss reimbursements which have been paid to the Company along with interest thereon. Excess loss reimbursements are those payments made to the Company by the SBA that

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 
are in excess of the Company’s coverage under the Contract Year. Excess loss reimbursements may result from adjustments to the Projected Payout Multiple or the Payout Multiple, incorrect
exposure (Data Call) submissions or resubmissions, incorrect calculations of Reimbursement Premiums or Retentions, incorrect Proof of Loss Reports, incorrect calculation of reinsurance recoveries, or subsequent readjustment of policyholder claims,
including subrogation and salvage, or any combination of the foregoing. The Company will be sent an invoice showing the due date for adjustments along with the interest due thereon through the due date. The applicable interest rate for interest
credits, and for interest charges for adjustments beyond the Company’s control, will be the average rate earned by the SBA for the FHCF for the first four months of the Contract Year. The applicable interest rate for interest charges on excess
loss reimbursements due to adjustments resulting from incorrect exposure submissions or Proof of Loss Reports will accrue at this rate plus 5%. All interest will continue to accrue if not paid by the due date. 

ARTICLE IX—REIMBURSEMENT PREMIUM 
  

	(1)	The Company shall, in a timely manner, pay the SBA its Reimbursement Premium for the Contract Year. The Reimbursement Premium for the Contract Year shall be calculated in accordance with Section 215.555, Florida
Statutes, with any rules promulgated thereunder, and with Article X(2). 

  

	(2)	The Company’s Reimbursement Premium is based on its June 30 exposure in accordance with Article X, except as provided for New Participants under Article X, and is not adjusted to reflect an increase or
decrease in exposure for Covered Policies effective after June 30 nor is the Reimbursement Premium adjusted when the Company cancels policies or is liquidated or otherwise changes its business status (merger, acquisition, or termination) or
stops writing new business (continues in business with its policies in a runoff mode). Similarly, new business written after June 30 will not increase or decrease the Company’s FHCF Reimbursement Premium or impact its FHCF coverage. FHCF
Reimbursement Premiums are required of all companies based on their writing Covered Policies in Florida as of June 30, and each company’s FHCF coverage as based on the definition in Section 215.555(2)(m), Florida Statutes, shall exist
for the entirety of the Contract Year regardless of exposure changes, except as provided for New Participants under Article X. 

  

	(3)	 Since the calculation of the Actuarially Indicated Premium assumes that the Companies will pay their Reimbursement Premiums timely, interest charges
will accrue under the following circumstances. A Company may choose to estimate its own Premium installments. However, if the Company’s estimation is less than the provisional Premium billed, an interest charge will accrue on the difference
between the estimated Premium and the final Premium. If a Company estimates its first installment, the Administrator shall bill that estimated Premium as the second installment as well, which will be considered as an estimate by the Company. No
interest will accrue regarding any provisional Premium if paid as billed by the FHCF’s Administrator, except in the case of an estimated second installment as set forth in this Article. Also, if a Company makes an estimation that is higher than
the provisional Premium billed but is less than the final Premium, interest will not accrue. If the Premium payment is not received from a 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
Company when it is due, an interest charge will accrue on a daily basis until the payment is received. Interest will also accrue on Premiums resulting from submissions or resubmissions finalized
after December 1 of the Contract Year. An interest credit will be applied for any Premium which is overpaid as either an estimate or as a provisional Premium. Interest shall not be credited past December 1 of the Contract Year. The
applicable interest rate for interest credits will be the average rate earned by the SBA for the FHCF for the first four months of the Contract Year. The applicable interest rate for interest charges will accrue at this rate plus 5%.

 ARTICLE X—REPORTS AND REMITTANCES 
  

	(1)	Exposures 

  

	 	(a)	If the Company writes Covered Policies before June 1 of the Contract Year, the Company shall report to the SBA, unless otherwise provided in Rule 19-8.029, F.A.C., no later than the statutorily required date of
September 1 of the Contract Year, by ZIP Code or other limited geographical area as specified by the SBA, its insured values under Covered Policies as of June 30 of the Contract Year as outlined in the annual reporting of insured values
form, FHCFD 1 A (Data Call) adopted for the Contract Year under Rule 19-8.029, F.A.C., and other data or information in the format specified by the SBA. 

  

	 	(b)	If the Company first begins writing Covered Policies on or after June 1 but prior to December 1 of the Contract Year, the Company shall report to the SBA, no later than February 1 of the Contract Year, by
ZIP Code or other limited geographical area as specified by the SBA, its insured values under Covered Policies as of November 30 of the Contract Year as outlined in the Supplemental Instructions for New Participants section of the Data Call
adopted for the Contract Year under Rule 19-8.029, F.A.C., and other data or information in the format specified by the SBA. 

  

	 	(c)	If the Company first begins writing Covered Policies on December 1 through and including May 31 of the Contract Year, the Company shall not report its exposure data for the Contract Year to the SBA.

  

	 	(d)	The requirement that a report is due on a certain date means that the report shall be received by the SBA no later than 4 p.m. Eastern Time on the due date. If the applicable due date is a Saturday, Sunday or legal
holiday, then the actual due date will be the day immediately following the applicable due date which is not a Saturday, Sunday or legal holiday. For purposes of the timeliness of the submission, neither the United States Postal Service postmark nor
a postage meter date is in any way determinative. Reports sent to the FHCF Administrator in Minneapolis, Minnesota, will be returned to the sender. Reports not in the physical possession of the SBA by 4 p.m., Eastern Time, on the applicable due date
are late. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(2)	Reimbursement Premium 

  

	 	(a)	If the Company writes Covered Policies before June 1 of the Contract Year, the Company shall pay the FHCF its Reimbursement Premium in installments due on or before August 1, October 1, and
December 1 of the Contract Year in amounts to be determined by the FHCF. However, if the Company’s Reimbursement Premium for the prior Contract Year was less than $5,000, the Company’s full provisional Reimbursement Premium, in an
amount equal to the Reimbursement Premium paid in the prior year, shall be due in full on or before August 1 of the Contract Year. The Company will be invoiced for amounts due, if any, beyond the provisional Reimbursement Premium payment, on or
before December 1 of the Contract Year. 

  

	 	(b)	If the Company is under administrative supervision, or if any control or oversight of the Company has been transferred through any legal or regulatory action to a state regulator or court appointed receiver or
rehabilitator (referred to in the aggregate as “state action”): 

  

	 	1.	The full annual provisional Reimbursement Premium as billed and any outstanding balances will be due and payable on August 1, or the date that such State action occurs after August 1 of the Contract Year.

  

	 	2.	Failure by such Company to pay the full annual provisional Reimbursement Premium as specified in 1. above by the applicable due date(s) shall result in the 45% coverage level being deemed for the complete Contract Year
regardless of the level selected for the Company through the execution of this Contract and regardless of whether a hurricane event occurred or triggered coverage. 

 

	 	3.	The provisions required in 1. and 2. above will not apply when the state regulator, receiver, or rehabilitator provides a letter of assurance to the FHCF that the Company will have the resources and will pay the full
Reimbursement Premium for the coverage level selected through the execution of this Contract. 

  

	 	4.	When control or oversight has been transferred, in whole or in part, through a legal or regulatory action, the controlling management of the Company shall specify by August 1 or as soon thereafter as possible (but
not to exceed two weeks after any regulatory or legal action) in a letter to the FHCF as to the Company’s intentions to either pay the full FHCF Reimbursement Premium as specified in 1. above, to default to the 45% coverage being deemed as
specified in 2. above, or to provide the assurances as specified in 3. above. 

  

	 	(c)	 A New Participant that first begins writing Covered Policies on or after June 1 but prior to December 1 of the Contract Year shall pay the
FHCF a provisional Reimbursement Premium of $1,000 upon execution of this Contract. The Administrator shall calculate the Company’s actual Reimbursement Premium for 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
the period based on its actual exposure as of November 30 of the Contract Year, as reported on or before February 1 of the Contract Year. To recognize that New Participants have limited
exposure during this period, the actual Premium as determined by processing the Company’s exposure data shall then be divided in half, the provisional Premium shall be credited, and the resulting amount shall be the total Premium due for the
Company for the remainder of the Contract Year. However, if that amount is less than $1,000, then the Company shall pay $1,000. The Premium payment is due no later than April 1 of the Contract Year. The Company’s Retention and coverage
will be determined based on the total Premium due as calculated above. 

  

	 	(d)	A New Participant that first begins writing Covered Policies on or after December 1 through and including May 31 of the Contract Year shall pay the FHCF a Reimbursement Premium of $1,000 upon execution of this
Contract. 

  

	 	(e)	The requirement that the Reimbursement Premium is due on a certain date means that the Premium shall be in the physical possession of the FHCF no later than 2 p.m., Eastern Time, on the due date applicable to the
particular installment. If remitted by check to the FHCF’s Post Office Box, the check shall be physically in the Post Office Box 100822, Atlanta, GA 303840822, as set out on the invoice sent to the Company. If remitted by check by hand
delivery, the check shall be physically on the premises of the FHCF’s bank in College Park, Georgia, as set out on the invoice sent to the Company. If remitted electronically, the wire transfer shall have been completed to the FHCF’s
account at its bank in Tampa, Florida, as set out on the invoice sent to the Company. If the applicable due date is a Saturday, Sunday or legal holiday, then the actual due date will be the day immediately following the applicable due date which is
not a Saturday, Sunday or legal holiday. For purposes of the timeliness of the remittance, neither the United States Postal Service postmark nor a postage meter date is in any way determinative. Premium checks sent to the SBA in Tallahassee,
Florida, or to the FHCF’s Administrator in Minneapolis, Minnesota, will be returned to the sender. Reimbursement Premiums not in the physical possession of the FHCF by 2 p.m., Eastern Time, on the applicable due date are late.

  

	 	(f)	Except as required by Section 215.555(7)(c), Florida Statutes, or as described in the following sentence, Reimbursement Premiums, together with earnings thereon, received in a given Contract Year will be used only
to pay for losses attributable to Covered Events occurring in that Contract Year or for losses attributable to Covered Events in subsequent Contract Years and will not be used to pay for past losses or for debt service on revenue bonds. Pursuant to
Section 215.555(6)(a)1., Florida Statutes, Reimbursement Premiums and earnings thereon may be used for payments relating to revenue bonds in the event emergency assessments are insufficient. If Reimbursement Premiums or earnings thereon are
used for debt service on revenue bonds, then the amount of the Reimbursement Premiums or earnings thereon so used shall be returned, without interest, to the Fund when emergency assessments or other legally available funds remain available after
making payment relating to the revenue bonds and any other purposes for which emergency assessments were levied. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	(3)	Claims and Losses 

  

	 	(a)	In General 

  

	 	1.	Claims and losses resulting from Loss Occurrences commencing during the Contract Year shall be reported by the Company and reimbursed by the FHCF as provided herein and in accordance with the Statute, this Contract, and
any rules adopted pursuant to the Statute. For a Company participating in a quota share primary insurance agreement(s) with Citizens Property Insurance Corporation Coastal Account, Citizens and the Company shall report only their respective portion
of losses under the quota share primary insurance agreement(s). Pursuant to Section 215.555(4)(c), Florida Statutes, the SBA is obligated to pay for losses not to exceed the Actual Claims-Paying Capacity of the FHCF, up to the limit in
accordance with Section 215.555(4)(c)1., Florida Statutes, for any one Contract Year. 

  

	 	2.	If the Company is in non-compliance with Section 215.555, Florida Statutes for any Contract Year, including deadlines for sending in Contracts, addenda or attachments to Contracts, Data Call submissions or
resubmissions, loss reports, or in responding to SBA exam requirements, the SBA reserves the right to withhold any payments or advances until such time the Company becomes compliant. 

 

	 	(b)	Loss Reports 

  

	 	1.	At the direction of the SBA, the Company shall report its projected Ultimate Net Loss from each Loss Occurrence to provide information to the SBA in determining any potential liability for possible reimbursable losses
under the Contract on the Interim Loss Report, Form FHCF-L1A, adopted for the Contract Year under Rule 19-8.029, F.A.C. Interim Loss Reports (including subsequent Interim Loss Reports if required by the SBA) will be due in no less than fourteen days
from the date of the notice from the SBA that such a report is required. 

  

	 	2.	FHCF loss reimbursements will be issued based on Ultimate Net Loss information reported by the Company on the Proof of Loss Report, Form FHCF-L1B, adopted for the Contract Year under Rule 19-8.029, F.A.C.

  

	 	a.	To qualify for reimbursement, the Proof of Loss Report must have the original signatures of two executive officers authorized by the Company to sign the report. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	b.	The Company must also submit a detailed claims listing (as outlined on the Proof of Loss Report) at the same time it submits its first Proof of Loss Report for a specific Covered Event that qualifies the Company for
reimbursement under that Covered Event, and should be prepared to supply a detailed claims listing for any subsequent Proof of Loss Report upon request. 

  

	 	c.	While a Company may submit a Proof of Loss Report requesting reimbursement at any time following a Loss Occurrence, all Companies shall submit a mandatory Proof of Loss Report for each Loss Occurrence no earlier than
December 1 and no later than December 31 of the Contract Year during which the Covered Event(s) occurs using the most current data available, regardless of the amount of Ultimate Net Loss or the amount of loss reimbursements or advances
already received. Reports may be faxed only if the Company does not qualify for a reimbursement. 

  

	 	d.	For the Proof of Loss Reports due by December 31 of the Contract Year, and the required subsequent quarterly and annual reports required under subparagraphs 3. and 4. below, the Company shall submit its Proof of
Loss Reports by each quarter-end or year-end using the most current data available. However, the date of such data shall not be more than sixty days prior to the applicable quarter-end or year-end date. 

 

	 	3.	Updated Proof of Loss Reports for each Loss Occurrence are due quarterly thereafter until all claims and losses resulting from a Loss Occurrence are fully discharged including any adjustments to such losses due to
salvage or other recoveries, or the Company has received its full coverage under the Contract Year in which the Loss Occurrence(s) occurred. Guidelines follow: 

  

	 	a.	Quarterly Proof of Loss Reports are due by March 31 from an insurer whose losses exceed, or are expected to exceed, 50% of its FHCF Retention for a specific Loss Occurrence(s). 

 

	 	b.	Quarterly Proof of Loss Reports are due by June 30 from an insurer whose losses exceed, or are expected to exceed, 75% of its FHCF Retention for a specific Loss Occurrence(s). 

 

	 	c.	Quarterly Proof of Loss Reports are due by September 30 and quarterly thereafter from an insurer whose losses exceed, or are expected to exceed, its FHCF Retention for a specific Loss Occurrence(s).

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 If the Company’s Retention must be recalculated as the result of an exposure resubmission, and if the
recalculated Retention changes the FHCF’s reimbursement obligations, then the Company shall submit additional Proof of Loss Reports for recalculation of the FHCF’s obligations. 

 

	 	4.	Annually after December 31 of the Contract Year, all Companies shall submit a mandatory year-end Proof of Loss Report for each Loss Occurrence, as applicable, using the most current data available, accompanied by a
detailed claims listing (as outlined on the Proof of Loss Report). This Proof of Loss Report shall be filed no earlier than December 1 and no later than December 31 of each year and shall continue until the earlier of the commutation
process described in (3)(d) below or until all claims and losses resulting from the Loss Occurrence are fully discharged including any adjustments to such losses due to salvage or other recoveries. 

 

	 	5.	The SBA, except as noted below, will determine and pay, within 30 days or as soon as practicable after receiving Proof of Loss Reports, the reimbursement amount due based on losses paid by the Company to date and
adjustments to this amount based on subsequent quarterly information. The adjustments to reimbursement amounts shall require the SBA to pay, or the Company to return, amounts reflecting the most recent determination of losses. a. The SBA shall have
the right to consult with all relevant regulatory agencies to seek all relevant information, and shall consider any other factors deemed relevant, prior to the issuance of reimbursements. 

 

	 	a.	The SBA shall require commercial self-insurance funds established under Section 624.462, Florida Statutes, to submit contractor receipts to support paid losses reported on a Proof of Loss Report, and the SBA may
hire an independent consultant to confirm losses, prior to the issuance of reimbursements. 

  

	 	b.	The SBA shall have the right to conduct a claims examination prior to the issuance of any advances or reimbursements submitted by Companies that have been placed under regulatory supervision by a State or where control
has been transferred through any legal or regulatory proceeding to a state regulator or court appointed receiver or rehabilitator. 

  

	 	6.	 All Proof of Loss Reports received will be compared with the FHCF’s exposure data to establish the facial reasonableness of the reports. The SBA
may also review the results of current and prior Contract Year exposure and loss examinations to determine the reasonableness of the reported losses. Except as noted in paragraph 4. above, Companies meeting these tests for reasonableness will be
scheduled for reimbursement. Companies not meeting these tests for reasonableness will be handled on a case-by-case basis and will be contacted to provide specific information regarding their individual book of business. The

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
discovery of errors in a Company’s reported exposure under the Data Call may require a resubmission of the current Contract Year Data Call which, as the Data Call impacts the Company’s
Premium, Retention, and coverage for the Contract Year, will be required before the Company’s request for reimbursement or an advance will be fully processed by the Administrator. 

 

	 	(c)	Loss Reimbursement Calculations 

  

	 	1.	In general, the Company’s paid Ultimate Net Losses must exceed its full FHCF Retention for a specific Covered Event before any reimbursement is payable from the FHCF for that Covered Event. As described in Article
V(28)(b), Retention adjustments will be made on or after December 31 of the Contract Year. No interest is payable on additional payments to the Company due to this type of Retention adjustment. Each Company sustaining reimbursable losses will
receive the amount of reimbursement due under the Contract up to the amount of the Company’s payout. If more than one Covered Event occurs in any one Contract Year, any reimbursements due from the FHCF shall take into account the Company’s
Retention for each Covered Event. However, the Company’s reimbursements from the FHCF for all Covered Events occurring during the Contract Year shall not exceed, in aggregate, the Projected Payout Multiple or Payout Multiple, as applicable,
times the individual Company’s Reimbursement Premium for the Contract Year. 

  

	 	2.	In determining reimbursements under this Contract, the SBA shall reimburse each of the Companies, including entities created pursuant to Section 627.351(6), Florida Statutes, for the amount (if any) of
reimbursement due under the individual Company’s Contract, but not to exceed for all Loss Occurrences, an amount equal to the Projected Payout Multiple or the Payout Multiple, as applicable, times the individual Company’s Reimbursement
Premium for the Contract Year. 

  

	 	3.	Reserve established. When a Covered Event occurs in a subsequent Contract Year when reimbursable losses are still being paid for a Covered Event in a previous Contract Year, the SBA will establish a reserve for the
outstanding reimbursable losses for the previous Contract Year, based on the length of time the losses have been outstanding, the amount of losses already paid, the percentage of incurred losses still unpaid, and any other factors specific to the
loss development of the Covered Events involved. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	(d)	Commutation 

  

	 	1.	Not less than 36 months or more than 60 months after the end of the Contract Year, the Company shall file a final Proof of Loss Report(s), with the exception of Companies having no reportable losses as described in
paragraph (3)(d)l.a. below. Otherwise, the final Proof of Loss Report(s) is required as specified in paragraph (3)(d)l.b. below. The Company and SBA may mutually agree to initiate commutation after 36 months and prior to 60 months after the end of
the Contract Year. The commutation negotiations shall begin at the later of 60 months after the end of the Contract Year or upon completion of the FHCF loss examination for the Company and the resolution of all outstanding examination issues.

  

	 	a.	If the Company’s most recently submitted Proof of Loss Report(s) indicate that it has no losses resulting from a Loss Occurrence(s) during the Contract Year, the SBA shall after 36 months request that the Company
execute a final commutation agreement. The final commutation agreement shall constitute a complete and final release of all obligations of the SBA with respect to all claims and losses. If the Company chooses not to execute a final commutation
agreement, the SBA shall be released from all obligations 60 months following the end of the Contract Year if no Proof of Loss Report(s) indicating reimbursable losses have been filed and the commutation shall be deemed concluded. However during
this time, if the Company determines that it does have losses to report for FHCF reimbursement, the Company must submit an updated Proof of Loss Report(s) prior to the end of 60 months after the Contract Year and the Company shall be required to
follow the commutation provisions and time frames otherwise specified in this section. 

  

	 	b.	If the Company has submitted a Proof of Loss Report(s) indicating that it does have losses resulting from a Loss Occurrence(s) during the Contract Year, the SBA may require the Company to submit within 30 days an
updated, current Proof of Loss Report(s) for each Loss Occurrence during the Contract Year. The Proof of Loss Report(s) must include all paid losses as well as all outstanding losses and incurred but not reported losses, which are not finally
settled and which may be reimbursable losses under this Contract, and must be accompanied by supporting documentation (at a minimum an adjuster’s summary report or equivalent details) and a copy of a written opinion on the present value of the
outstanding losses and incurred but not reported losses by the Company’s certifying actuary. Failure of the Company to provide an updated current Proof of Loss Report(s), supporting documentation, and an opinion by the date requested by the SBA
may result in referral to the Office of Insurance Regulation for a violation of the Contract. Increases in reported paid, outstanding, or incurred but not reported losses on original or corrected Proof of Loss Report filings received later than 60
months after the end of the Contract Year shall not be eligible for reimbursement or commutation. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	2.	Determining the present value of outstanding claims and losses. 

  

	 	a.	If the Company exceeds or expects to exceed its Retention, the Company and the SBA or their respective representatives shall attempt, by mutual agreement, to agree upon the present value of all outstanding claims and
losses, both reported and incurred but not reported, resulting from Loss Occurrences during the Contract Year. Payment by the SBA of its portion of any amount or amounts so mutually agreed and certified by the Company’s certifying actuary shall
constitute a complete and final release of the SBA in respect of all claims and losses, both reported and unreported, under this Contract. 

  

	 	b.	If agreement on present value cannot be reached within 90 days of the FHCF’s receipt of the final Proof of Loss Report(s) and supporting documentation, the Company and the SBA may mutually appoint an actuary,
adjuster, or appraiser to investigate and determine such claims or losses. If both parties then agree, the SBA shall pay its portion of the amount so determined to be the present value of such claims or losses. 

 

	 	c.	If the parties fail to agree, then any difference shall be settled by a panel of three actuaries, as provided in this paragraph. 

  

	 	i.	One actuary shall be chosen by each party, and the third actuary shall be chosen by those two actuaries. If either party does not appoint an actuary within 30 days, the other party may appoint two actuaries. If the two
actuaries fail to agree on the selection of an independent third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. 

 

	 	ii.	All of the actuaries shall be regularly engaged in the valuation of property claims and losses and shall be members of the Casualty Actuarial Society and of the American Academy of Actuaries. 

 

	 	iii.	None of the actuaries shall be under the control of either party to this Contract. 

  

	 	iv.	Each party shall submit its case to the panel in writing on the 30th day after the appointment of the third actuary. Following the submission of the case to the panel, the parties are prohibited from providing any
further information or other communication except at the request of the panel. Such responses to requests from the panel must be in writing and simultaneously provided to the other party and all members of the panel, except that the panel may
require the response to be provided in a meeting or teleconference attended by both parties and all members of the panel. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	v.	The decision in writing of any two actuaries, when filed with the parties hereto, shall be final and binding on both parties. 

  

	 	d.	The reasonable and customary expense of the actuaries and of the commutation (as a result of b. and c. above) shall be equally divided between the two parties. Said commutation shall take place in Tallahassee, Florida,
unless some other place is mutually agreed upon by the Company and the SBA. 

  

	(4)	Advances 

  

	 	(a)	In accordance with Section 215.555(4)(e), Florida Statutes, the SBA may make advances for loss reimbursements as defined herein, at market interest rates, to the Company in accordance with
Section 215.555(4)(e), Florida Statutes. An advance is an early reimbursement which allows the Company to continue to pay claims in a timely manner. Advances will be made based on the Company’s paid and reported outstanding losses for
Covered Policies (excluding all incurred but not reported [IBNR] losses) as reported on a Proof of Loss Report, and shall include Loss Adjustment Expense Reimbursement as calculated by the FHCF. In order to be eligible for an advance, the Company
must submit its exposure data for the Contract Year as required under paragraph (1) of this Article. Except as noted below, advances, if approved, will be made as soon as practicable after the SBA receives a written request, signed by two
officers of the Company, for an advance of a specific amount and any other information required for the specific type of advance under subparagraphs (c) and (e) below. All reimbursements due to a Company shall be offset against any amount
of outstanding advances plus the interest due thereon. 

  

	 	(b)	 For advances or excess advances, which are advances that are in excess of the amount to which the Company is entitled, the market interest rate shall
be the prime rate as published in the Wall Street Journal on the first business day of the Contract Year. This rate will be adjusted annually on the first business day of each subsequent Contract Year, regardless of whether the Company executes
subsequent Contracts. In addition to the prime rate, an additional 5% interest charge will apply on excess advances. All interest charged will commence on the date the SBA issues a check for an advance and will cease on the date upon which the FHCF
has received the Company’s Proof of Loss Report(s) for the Covered Event(s) for which the Company qualifies for reimbursement(s). If such reimbursement(s) are less than the amount of outstanding advance(s) issued to the

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	
Company, interest will continue to accrue on the outstanding balance of the advance(s) until subsequent Proof of Loss Reports qualify the Company for reimbursement under any Covered Event equal
to or exceeding the amount of any outstanding advance(s). Interest shall be billed on a periodic basis. If it is determined that the Company received funds in excess of those to which it was entitled, the interest as to those sums will not cease on
the date of the receipt of the Proof of Loss Report but will continue until the Company reimburses the FHCF for the overpayment. 

  

	 	(c)	If the Company has an outstanding advance balance as of December 31 of this or any other Contract Year, the Company is required to have an actuary certify outstanding and incurred but not reported losses as
reported on the applicable December Proof of Loss Report. 

  

	 	(d)	The specific type of advances enumerated in Section 215.555, Florida Statutes, follow. 

  

	 	1.	Advances to Companies to prevent insolvency, as defined under Article XIV of this Contract. 

  

	 	a.	Section 215.555(4)(e)1., Florida Statutes, provides that the SBA shall advance to the Company amounts necessary to maintain the solvency of the Company, up to 50 percent of the SBA’s estimate of the
reimbursement due to the Company. 

  

	 	b.	In addition to the requirements outlined in subparagraph (4)(a) above, the requirements for an advance to a Company to prevent insolvency are that the Company demonstrates it is likely to qualify for reimbursement
and that the immediate receipt of moneys from the SBA is likely to prevent the Company from becoming insolvent, and the Company provides the following information: 

 

	 	i.	Current assets; 

  

	 	ii.	Current liabilities other than liabilities due to the Covered Event; 

  

	 	iii.	Current surplus as to policyholders; 

  

	 	iv.	Estimate of other expected liabilities not due to the Covered Event; and 

  

	 	v.	Amount of reinsurance available to pay claims for the Covered Event under other reinsurance treaties. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	c.	The SBA’s final decision regarding an application for an advance to prevent insolvency shall be based on whether or not, considering the totality of the circumstances, including the SBA’s obligations to
provide reimbursement for all Covered Events occurring during the Contract Year, granting an advance is essential to allowing the entity to continue to pay additional claims for a Covered Event in a timely manner. 

 

	 	2.	Advances to entities created pursuant to Section 627.351(6), Florida Statutes. 

  

	 	a.	Section 215.555(4)(e)2., Florida Statutes, provides that the SBA may advance to an entity created pursuant to Section 627.351(6), Florida Statutes, up to 90% of the lesser of the SBA’s estimate of the
reimbursement due or the entity’s share of the actual aggregate Reimbursement Premium for that Contract Year, multiplied by the current available liquid assets of the FHCF. 

 

	 	b.	In addition to the requirements outlined in subparagraph (4)(a) above, the requirements for an advance to entities created pursuant to Section 627.351(6), Florida Statutes, are that the entity must demonstrate
to the SBA that the advance is essential to allow the entity to pay claims for a Covered Event. 

  

	 	3.	Advances to limited apportionment companies. 

 Section 215.555(4)(e)3., Florida Statutes, provides that
the SBA may advance the amount of estimated reimbursement payable to limited apportionment companies. 
  

	 	(e)	In determining whether or not to grant an advance and the amount of an advance, the SBA: 

  

	 	1.	Shall determine whether its assets available for the payment of obligations are sufficient and sufficiently liquid to fulfill its obligations to other Companies prior to granting an advance; 

 

	 	2.	Shall review and consider all the information submitted by such Companies; 

  

	 	3.	Shall review such Companies’ compliance with all requirements of Section 215.555, Florida Statutes; 

  

	 	4.	Shall consult with all relevant regulatory agencies to seek all relevant information; 

  

	 	5.	Shall review the damage caused by the Covered Event and when that Covered Event occurred; 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	6.	Shall consider whether the Company has substantially exhausted amounts previously advanced; 

  

	 	7.	Shall consider any other factors deemed relevant; and 

  

	 	8.	Shall require commercial self-insurance funds established under section 624.462, Florida Statutes, to submit a copy of written estimates of expenses in support of the amount of advance requested. 

 

	 	(f)	Any amount advanced by the SBA shall be used by the Company only to pay claims of its policyholders for the Covered Event or Covered Events which have precipitated the immediate need to continue to pay additional claims
as they become due. 

  

	(5)	Delinquent Payments 

 Failure to submit a payment when due is a violation of the terms of this Contract
and Section 215.555, Florida Statutes. Interest on late payments shall be due as set forth in Article VIII(2) and Article IX(2) of this Contract. 
  

	(6)	Inadequate Data Submissions 

 If exposure data or other information required to be reported by the
Company under the terms of this Contract is not received by the FHCF in the format specified by the FHCF or is inadequate to the extent that the FHCF requires resubmission of data, the Company will be required to pay the FHCF a resubmission fee of
$1,000 for resubmissions that are not a result of an examination by the SBA. If a resubmission is necessary as a result of an examination report issued by the SBA, the first resubmission fee will be $2,000. If the Company’s examination-required
resubmission is inadequate and the SBA requires an additional resubmission(s), the resubmission fee for each subsequent resubmission shall be $2,000. A resubmission of exposure data may delay the processing of the Company’s request for
reimbursement or an advance. 
  

	(7)	Delinquent Submissions 

 Failure to submit an exposure submission, resubmission, loss report, or
commutation documentation when due is a violation of the terms of this Contract and Section 215.555, Florida Statutes. 
  

	(8)	Confidential Information/Trade Secret Information 

 Pursuant to the provisions of Section 215.557,
Florida Statutes, the reports of insured values under Covered Policies by ZIP Code submitted to the SBA pursuant to Section 215.555, Florida Statutes, are confidential and exempt from the provisions of Section 119.07(1), Florida Statutes,
and Section 24(a), Art. I of the State Constitution. If other information submitted by the Company to the FHCF could reasonably be ruled a “trade secret” as defined in Section 812.081, Florida Statutes, such information must be
clearly marked “Trade Secret Information.” 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XI—TAXES 

In consideration of the terms under which this Contract is issued, the Company agrees to make no deduction in respect of the Premium herein when making premium
tax returns to the appropriate authorities. Should any taxes be levied on the Company in respect of the Premium herein, the Company agrees to make no claim upon the SBA for reimbursement in respect of such taxes. 

ARTICLE XII—ERRORS AND OMISSIONS 
 Any inadvertent
delay, omission, or error on the part of the SBA shall not be held to relieve the Company from any liability which would attach to it hereunder if such delay, omission, or error had not been made. 

ARTICLE XIII—INSPECTION OF RECORDS 
 The Company
shall allow the SBA to inspect, examine, and verify, at reasonable times, all records of the Company relating to the Covered Policies under this Contract, including Company files concerning claims, losses, or legal proceedings regarding subrogation
or claims recoveries which involve this Contract, including premium, loss records and reports involving exposure data or losses under Covered Policies. This right by the SBA to inspect, examine, and verify shall survive the completion and closure of
an exposure examination or loss examination file and the termination of the Contract. The Company shall have no right to re-open an exposure or loss reimbursement examination once closed and the findings have been accepted by the Company; any
re-opening shall be at the sole discretion of the SBA. If the State Board of Administration Finance Corporation (formerly known as the FHCF Finance Corporation) has issued revenue bonds and relied upon the exposure and loss data submitted and
certified by the Company as accurate to determine the amount of bonding needed, the SBA may choose not to require, or accept, a resubmission if the resubmission will result in additional reimbursements to the Company. The SBA may require any
discovered errors, inadvertent omissions, and typographical errors associated with the data reporting of insured values, discovered prior to the closing of the file and acceptance of the examination findings by the Company, to be corrected to
reflect the proper values. The Company shall retain its records in accordance with the requirements for records retention regarding exposure reports and claims reports outlined herein, and in any administrative rules adopted pursuant to
Section 215.555, Florida Statutes. Companies writing covered collateral protection policies, as defined in definition (10)(d) of Article V herein, must be able to provide documentation that the policy covers personal residences, protects
both the borrower’s and lender’s interest, and that the coverage is in an amount at least equal to the coverage for the dwelling in place under the lapsed homeowner’s policy. 

 

	(1)	Purpose of FHCF Examination 

 The purpose of the examinations conducted by the SBA is to evaluate the
accuracy of the FHCF exposure or loss data reported by the Company. However, due to the limited nature of the examination, it cannot be relied upon as an assurance that a company’s data is reported accurately or in its entirety. The company
should not rely on the FHCF to identify every type of reporting error in its data. In addition, the reporting requirements are subject to change each 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 
Contract Year so it is the Company’s responsibility to be familiar with the applicable Contract Year requirements and to incorporate any changes into its data for that Contract Year. It is
also the Company’s responsibility to ensure that its data is reported accurately and to comply with Florida Statutes and any applicable rules when reporting exposure data. The examination report is not intended to provide a legal determination
of the Company’s compliance. 
  

	(2)	Examination Requirements for Exposure Verification 

 The Company shall retain complete and accurate
records, in policy level detail, of all exposure data submitted to the SBA in any Contract Year until the SBA has completed its examination of the Company’s exposure submissions. The Company shall also retain complete and accurate records of
any completed exposure examination for any Contract Year in which the Company incurred losses until the completion of the loss reimbursement examination and commutation for that Contract Year. The records to be retained are outlined in the Data Call
adopted for the Contract Year under Rule 198.029, F.A.C. A complete list of records to be retained for the exposure examination is set forth in Form FHCF-EAP1, adopted for the Contract Year under Rule 19-8.030, F.A.C. 

 

	(3)	Examination Requirements for Loss Reports 

 The Company shall retain complete and accurate records of all
reported losses and/or advances submitted to the SBA until the SBA has completed its examination of the Company’s reimbursable losses and commutation for the Contract Year (if applicable) has been concluded. The records to be retained are set
forth as part of the Proof of Loss Report, Form FHCF-L1B, adopted for the Contract Year under Rule 19-8.029, F.A.C., and Form FHCF-LAP1, adopted for the Contract Year under Rule 19-8.030, F.A.C. 

 

	(4)	Examination Procedures 

  

	 	(a)	The FHCF will send an examination notice to the Company providing the commencement date of the examination, the site of the examination, any accommodation requirements of the examiner, and the reports and data which
must be assembled by the Company and forwarded to the FHCF upon request. The Company shall be prepared to choose one location in which to be examined, unless otherwise specified by the SBA. 

 

	 	(b)	The reports and data are required to be forwarded to the FHCF as set forth in an examination notice letter. The information is then forwarded to the examiner. If the FHCF receives accurate and complete records as
requested, the examiner will contact the Company to inform the Company as to what policies or other documentation will be required once the examiner is on site. Any records not required to be provided to the examiner in advance shall be made
available at the time the examiner arrives on site. Any records to support reported losses which are provided after the examiner has left the work-site will, at the SBA’s discretion, result in an additional examination of exposure and/or loss
records or an extension or expansion of the examination already in progress. All costs associated with such additional examination or with the extension or expansion of the original examination shall be borne by the Company. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	(c)	At the conclusion of the examiner’s work and the management review of the examiner’s report, findings, recommendations, and work papers, the FHCF will forward an examination report to the Company and require a
response from the Company by a date certain as to the examination findings and recommendations. 

  

	 	(d)	If the Company accepts the examination findings and recommendations, and there is no recommendation for additional information, the examination report will be finalized and the exam file closed. 

 

	 	(e)	If the Company disputes the examiner’s findings, the areas in dispute will be resolved by a meeting or a conference call between the Company and FHCF management. 

 

	 	(f)	1. If the recommendation of the examiner is to resubmit the Company’s exposure data for the Contract Year in question, then the FHCF will send the Company a letter outlining the process for resubmission and
including a deadline to resubmit. Once the resubmission is received, the FHCF’s Administrator calculates a revised Reimbursement Premium for the Contract Year which has been examined. The SBA shall then review the resubmission with respect to
the examiner’s findings, and accept the resubmission or contact the Company with any questions regarding the resubmission. Once the SBA has accepted the resubmission as a sufficient response to the examiner’s findings, the exam is closed.

  

	 	2.	If the recommendation of the examiner is to give the Company the option to either resubmit the exposure data or to pay the estimated Premium difference, then the FHCF will send the Company a letter outlining the process
for resubmission or for paying the estimated Premium difference and including a deadline for the resubmission or the payment to be received by the FHCF’s Administrator. If the Company chooses to resubmit, the same procedures outlined in Article
XIII(3)(01. apply. 

  

	 	(g)	If the recommendation of the examiner is to update the Company’s Proof of Loss Report(s) for the Contract Year under review, the FHCF will send the Company a letter outlining the process for submitting the Proof of
Loss Report(s) and including a deadline to file. Once the Proof of Loss Report(s) is received by the FHCF Administrator, the FHCF’s Administrator will calculate a revised reimbursement. The SBA shall then review the submitted Proof of Loss
Report(s) with respect to the examiner’s findings, and accept the Proof of Loss Report(s) as filed or contact the Company with any questions. Once the SBA has accepted the corrected Proof of Loss Report(s) as a sufficient response to the
examiner’s findings, the exam is closed. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	(h)	The examiner’s list of errors is made available in the examination report sent to the Company. Given that the examination was based on a sample of the Company’s policies or claims rather than the whole
universe of the Company’s Covered Policies or reported claims, the error list is not intended to provide a complete list of errors but is intended to indicate what information needs to be reviewed and corrected throughout the Company’s
book of Covered Policy business or claims information to ensure more complete and accurate reporting to the FHCF. 

  

	(5)	Costs of the Examinations 

 The costs of the examinations shall be borne by the SBA. However, in order to
remove any incentive for a Company to delay preparations for an examination, the SBA shall be reimbursed by the Company for any examination expenses incurred in addition to the usual and customary costs, which additional expenses were incurred as a
result of the Company’s failure, despite proper notice, to be prepared for the examination or as a result of a Company’s failure to provide requested information. All requested information must be complete and accurate. 

ARTICLE XIV—INSOLVENCY OF THE COMPANY 
 Company shall
notify the FHCF immediately upon becoming insolvent. Except as otherwise provided below, no covered loss reimbursements will be made until the FHCF has completed and closed its examination of the insolvent Company’s losses, unless an agreement
is entered into by the court appointed receiver specifying that all data and computer systems required for FHCF exposure and loss examinations will be maintained until completion of the Company’s exposure and loss examinations. Except as
otherwise provided below, in order to account for potential erroneous reporting, the SBA shall hold back 25% of requested loss reimbursements until the exposure and loss examinations for the Company are completed. Only those losses supported by the
examination will be reimbursed. Pursuant to Section 215.555(4)(g), Florida Statutes, the FHCF is required to pay the “net amount of all reimbursement moneys” due an insolvent insurer to the Florida Insurance Guaranty Association
(FIGA) for the benefit of Florida policyholders. For the purpose of this Contract, a Company is insolvent when an order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction. In light of the need for an
immediate infusion of funds to enable policyholders of insolvent companies to be paid for their claims, the SBA may enter into agreements with FIGA allowing exposure and loss examinations to take place immediately without the usual notice and
response time limitations and allowing the FHCF to make loss reimbursements (net of any amounts payable to the SBA from the Company or FIGA) to FIGA before the examinations are completed and before the response time expires for claims filing by
reinsurers and financial institutions, which have a priority interest in those funds pursuant to Section 215.555(4)(g), Florida Statutes. Such agreements must ensure the availability of the necessary records and adequate security must be
provided so that if the FHCF determines that it overpaid FIGA on behalf of the Company, or if claims are filed by reinsurers or financial institutions having a priority interest in these funds, that the funds will be repaid to the FHCF by FIGA
within a reasonable time. 
 ARTICLE XV—TERMINATION 

The FHCF and the obligations of both parties under this Contract can be terminated only as may be provided by law or applicable rules. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XVI—VIOLATIONS 

Pursuant to the provisions of Section 215.555(10), Florida Statutes, any violation of the terms of this Contract by the Company constitutes a violation of
the Insurance Code of the State of Florida. Pursuant to the provisions of Section 215.555(11), Florida Statutes, the SBA is authorized to take any action necessary to enforce any administrative rules adopted pursuant to Section 215.555,
Florida Statutes, and the provisions and requirements of this Contract. 
 ARTICLE XVII—APPLICABLE LAW 

This Contract shall be governed by and construed according to the laws of the State of Florida in respect of any matter relating to or arising out of this
Contract. 
 ARTICLE XVIII—REIMBURSEMENT CONTRACT ELECTIONS 
  

	(1)	Reimbursement Percentage 

 For purposes of determining reimbursement (if any) due the Company under this
Contract and in accordance with the Statute, the Company has the option to elect a [***]% or [***]% or [***]% reimbursement percentage under this Contract. If the Company is a member of an NAIC group, all members must elect the same reimbursement
percentage, and the individual executing this Contract on behalf of the Company, by placing his or her initials in the box under (a) below, affirms that the Company has elected the same reimbursement percentage as all members of its NAIC group.
If the Company is an entity created pursuant to Section 627.351, Florida Statutes, the Company must elect the [***]% reimbursement percentage. The Company shall not be permitted to change its reimbursement percentage during the Contract Year.
The Company shall be permitted to change its reimbursement percentage at the beginning of a new Contract Year, but may not reduce its reimbursement percentage if a Covered Event required the issuance of revenue bonds, until the bonds have been fully
repaid. 
 IMPORTANT NOTE: The State Board of Administration Finance Corporation has issued revenue bonds as a result of its liabilities for Covered Events
under the Contract Year effective June 1, 2005. As those bonds have not been fully repaid, the Company may not select a Reimbursement Percentage that is less than its selection under the prior Contract Year effective June 1, 2013. 

The Reimbursement Percentage elected by the Company for the prior Contract Year effective June 1, 2013 was as follows: Heritage Property and Casualty
Insurance Company—90% 
  

	 	(a)	NAIC Group Affirmation: Initial the following box if the Company is part of an NAIC Group: 

  

					
		 	 	 	
		 	 	 	
		 	 	 	

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

	 	(b)	Reimbursement Percentage Election: The Company hereby elects the following Reimbursement Percentage for the Contract Year from 12:00:01 a.m., Eastern Time, June 1, 2014, to 12:00 a.m., Eastern Time, May 31,
2015, (the individual executing this Contract on behalf of the Company shall place his or her initials in the box to the left of the percentage elected for the Company): 

 

															
	 	 		 		 	 	 		 		 	 	 	
	 	 		 		 	 	 		 		 	 	 	
	 	 	 [***]%
	 	OR  	 	 	 	[***]%	 	OR  	 	/s/ SR	 	[***]%

  

	(2)	Reporting Exposure for a Single Structure, with a Mix of Commercial Habitational and Commercial Non-Habitational Exposure, Written on a Commercial Policy 

This section is applicable to all Companies which either have exposure for single structures with a mix of commercial habitational and commercial
non-habitational exposure written under a Commercial Policy, or have the authority to write such policies. If the Company does not have the authority to write this type of exposure, this section does not apply; initial the N/A box at the end of this
section, which completes this section of ARTICLE XVIII. If the Company does write, or has the authority to write, this type of exposure, please read and complete the remainder of this section. 

For the purpose of determining the predominant use of mixed-use single structures under this Contract, the FHCF considers predominant use to be greater than
50% of the total insured value of the structure as justified by the company on the basis of number of floors, square footage, or other reasonable methodology presented to the Administrator (e.g., a classification plan explaining how predominance is
determined, and likely to include commercial residential and commercial non-residential or business class codes) for approval prior to the Data Call submission under this Contract. Exposure shall be reported under the Company’s Data Call in
accordance with the following: 
 Predominant Use is Dwelling or Habitational Occupancies 

If a single structure is used for both habitational and non-habitational purposes and the predominant use is dwelling or habitational occupancies, the entire
exposure for the structure should be reported to the FHCF under the Data Call, and the FHCF will reimburse losses for the entire structure. 

Predominant Use is Non-Dwelling or Non-Habitational Occupancies 

If a single structure is used for both habitational and non-habitational purposes and the predominant use is non-dwelling or non-habitational occupancies, the
habitational portion of that structure should be identified and reported to the FHCF under the Data Call. 

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 However, in recognition of the unusual nature of commercial structures with incidental habitational exposure
and the hardship some companies may face in having to carve out such incidental habitational exposure, as well as the losses to such structures, the FHCF will accommodate these companies by allowing them to exclude the entire exposure for the single
structure from their Data Call submission, providing the following two conditions are met: 
  

	 	(a)	The decision to not carve out and report the incidental habitational exposure shall apply to all such structures insured by the Company; and 

 

	 	(b)	If the incidental habitational exposure is not reported to the FHCF, the Company agrees it shall not report losses to the structure and the FHCF shall not reimburse any losses to the structure. 

Initial the CARVING box below if the Company is able to carve out and report its incidental habitational exposure, OR, if this requirement presents a
hardship, the Company must communicate its decision to not carve out and to not report the incidental exposure by having the individual executing this Contract on behalf of the Company placing his or her initials in the NOT CARVING box below. If the
Company does not currently write such policies, but has the authority to write such policies after the start date of this Contract, the decision to carve or not carve out the incidental habitational exposure must be indicated below. 

 

													
		 	 	 		 	 	 		 	 	 	
		 	 	 		 	 	 		 	 	 	
		 	 	 	OR  	 	 	 	OR  	 	/s/ SR	 	
		 	CARVING	 		 	NOT CARVING	 		 	NOT APPLICABLE	 	

 By initialing the CARVING or NOT CARVING box above, the Company is making an irrevocable decision for the corresponding
Contract Year Data Call submission and any subsequent resubmissions. 
 Important Note: Since this election will impact your Data Call submission,
please share this decision with the individual(s) responsible for compiling your Data Call submission. 
  

	(3)	Additional Living Expense (ALE) Written as Time Element Coverage 

 If your Company writes Covered
Policies that provide ALE coverage on a time element basis (i.e., coverage is based on a specific period of time as opposed to a stated dollar limit), you must initial the ‘Yes — Time Element ALE’ box below. If your Company does not
write time element ALE coverage, initial ‘No — Time Element ALE’ box below. 
  

									
		 	 	 		 	 	 	
		 	 	 		 	 	 	
		 	 	 	OR  	 	 	 	
		 	 Yes – Time

Element ALD
	 		 	 No – Time

Element ALE
	 	

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 CONFIDENTIAL TREATMENT REQUESTED 

BY HERITAGE INSURANCE HOLDINGS, INC. 
  

 ARTICLE XIX—SIGNATURES\ 

Approved by: 
 Florida Hurricane Catastrophe Fund 

 

							
	By:	  	State Board of Administrations of the State of Florida	  		  	
				
	By:	  	 /s/ Ashbel C. Williams
	  		  	Date 6/5/14
		  	Ashbel C. Williams	  		  	
		  	Executive Director & CIO	  		  	
			
	Approved as to legality:	  		  	
				
	By:	  	 /s/ Craig A. Meyer
	  		  	Date 6/5/14
		  	Craig A. Meyer	  		  	
		  	Assistant General Counsel	  		  	

  

	
	   

	Heritage Property and Casualty Insurance Company

  

							
	             Stephen Rohde
	 	  
	  	
		 	 Typed/Printed Name and Title
	  	

  

							
	By:	  	 /s/ Stephen Rohde
	  		  	Date 2/10/14
		  	Signature	  		  	

  
 *[***]: Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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