Document:

Executive Agreement

 Exhibit 10.3 
 EXECUTIVE AGREEMENT 
 THIS EXECUTIVE AGREEMENT (this “Agreement”) is made and
entered into effective as of May 1, 2007 (the “Effective Date”), by and between HOMEOWNERS CHOICE, INC., a Florida corporation (the “Company”), and RONALD E. CHAPMAN, an individual residing in the
State of Florida (the “Executive”). 
 WITNESSETH: 
 WHEREAS, the Company desires to employ the Executive, and the Executive desires to accept such employment, on the terms and subject to the
conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable
consideration, the parties hereto covenant and agree as follows: 
 1. Employment. The Company hereby employs Executive, and the
Executive hereby accepts such employment, upon the terms and conditions set forth in this Agreement. 
 2. Term. Subject to the
terms and conditions of this Agreement, including, but not limited to, the provisions for termination set forth in Section 9 hereof, the employment of the Executive under this Agreement shall commence on the Effective Date and shall continue
until terminated by either of the parties as provided in Section 9 herein. 
 3. Duties. Executive will initially serve as
a Vice President, Secretary and Chief Operating Officer of the Company. The Executive will devote his entire business time, attention, skill, and energy exclusively to the business of the Company, will use the Executive’s best efforts to
promote the success of the Company’s business, and will cooperate fully with the President of the Company in the advancement of the best interests of the Company. Furthermore, the Executive shall assume and competently perform such reasonable
responsibilities and duties as may be assigned to the Executive from time to time by the President of the Company. To the extent that the Company shall have any parent company, subsidiaries, affiliated corporations, partnerships, or joint ventures
(collectively “Related Entities”) that are involved in the same business as the Company, the Executive shall perform such duties to promote these Related Entities and their respective interests to the same extent as the interests of
the Company without additional compensation. At all times, the Executive agrees that the Executive has read and will abide by, and prospectively will read and abide by, any employee handbook, policy, or practice that the Company or Related Entities
has or hereafter adopts with respect to its employees generally. 
 4. Compensation. 
 (a) Annual Base Salary. As compensation for Executive’s services and in consideration for the Executive’s covenants contained in this
Agreement, the Company shall pay the Executive an annual base salary of $170,000. Such annual base salary shall be payable in equal installments in accordance with the policy then prevailing for the Company’s salaried employees generally, and
the annual base salary shall be subject to any tax and other withholdings or deductions required by applicable laws and regulations. The Executive’s annual 

 
base salary will be reviewed by the Board of Directors of the Company not less frequently than annually, and the annual base salary may be adjusted upward in
the sole discretion of the Board of Directors of the Company. For purposes of this Agreement, the term “Salary Year” means the twelve-month period that begins on the Effective Date and ends on the first (1st) anniversary of the Effective Date and each successive twelve-month period thereafter that ends on an anniversary of the Effective Date. 
 (b) Bonuses. In addition to the Executive’s annual base salary, during the term of the Executive’s employment hereunder, the Executive
shall be entitled to only such bonuses as may be granted to the Executive by the Board of Directors of the Company, in their sole discretion. 
 (c) Other Benefits. During the term of the Executive’s employment hereunder, the Executive shall be eligible to participate in such pension, life insurance, health insurance, disability insurance and other benefits plans, if
any, which the Company may make available to similar-level employees. 
 (d) Vacation. The Executive shall be entitled to up to three
(3) weeks paid vacation during each Salary Year during the term of the Executive’s employment hereunder. Unused vacation from a particular Salary Year will not carry over to succeeding Salary Years, and the Executive will not be paid for
any unused vacation. 
 (e) Reimbursement of Expenses. The Executive shall be reimbursed for all reasonable and customary travel and
other business expenses incurred by Executive in the performance of Executive’s duties hereunder that are approved by the President of the Company in advance, provided that such reimbursement shall be subject to, and in accordance with, any
expense reimbursement policies and/or expense documentation requirements of the Company that may be in effect from time to time. 
 5.
Noncompetition, Nonsolicitation, and Nondisclosure Covenants. 
 (a) Rationale for Restrictions. Executive acknowledges
that Executive’s services hereunder are of a special, unique, and extraordinary character, and Executive’s position with the Company places Executive in a position of confidence and trust with customers, suppliers, and other persons and
entities with whom the Company and its Related Entities have a business relationship. The Executive further acknowledges that the rendering of services under this Agreement will likely require the disclosure to Executive of Confidential Information
(as defined below) relating to the Company and/or Related Entities. As a consequence, the Executive agrees that it is reasonable and necessary for the protection of the goodwill and legitimate business interests of the Company and Related Entities
that the Executive make the covenants contained in this Section 5, that such covenants are a material inducement for the Company to employ the Executive and to enter into this Agreement, and that the covenants are given as an integral part of
and incident to this Agreement. 
 (b) Noncompetition and Nonsolicitation Covenants. As used herein, the term “Restrictive
Period” means the time period commencing on the Effective Date of this Agreement and ending on the date that is two (2) years after the date on which the Executive’s employment 

  

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by the Company (or any Related Entity) expires or is terminated (for purposes of the noncompetition provisions hereunder, such termination must be for
cause). The Executive agrees that, during the Restrictive Period, the Executive will not utilize his or her knowledge of the business of the Company or his or her relationships with investors, suppliers, customers, clients, or financial institutions
to compete with the Company or any of the Related Entities in any business which is the same as, or similar to, any business conducted by the Company or any of the Related Entities at any time during the Restrictive Period (a “Covered
Business”). Additionally, the Executive agrees that the Executive will not engage in any of the following acts anywhere within the Territory (as defined below) during the Restrictive Period: 
  

	 	(i)	directly or indirectly engage or invest in; own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of; be employed by,
associated with, or in any manner connected with; lend the Executive’s name or any similar name to; lend Executive’s credit to; or render services or advice to, any business which competes with, is engaged in, or carries on any aspect of
the Covered Business; 

  

	 	(ii)	directly or indirectly assist, promote or encourage any existing or potential employees, customers, clients, or vendors of the Company or any Related Entity, as well as any other
parties which have a business relationship with the Company or a Related Entity, to terminate, discontinue, or reduce the extent of their relationship with the Company or a Related Entity; 

  

	 	(iii)	directly or indirectly solicit business of the same or similar type as the Covered Business, from any person or entity known by the Executive to be a customer or client of the
Company, whether or not the Executive had contact with such person or entity during the Executive’s employment with the Company; 

  

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

  

	 	(v)	engage in any practice the purpose of which is to evade the provisions of this Section 5 or commit any act which adversely affects the Company, any Related Entity, or their
respective businesses. 

 The parties agree that the non-competition provisions contained in this Section 5 shall have no force and effect
if the Executive is terminated without cause, as defined herein. The parties acknowledge and agree that if the Executive is terminated without cause or leaves the Company on his own accord, that the Executive shall be free to earn a living and
compete in the Territory. All restrictions related to nondisclosure still apply to the Executive regardless of whether the termination of the Executive is with or without cause, or if the Executive leaves the Company on his own accord. 

 

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 For purposes of this Agreement, the term “Territory” shall mean the entire state of Florida. The Executive
acknowledges and agrees that, in light of the unique nature of the Company’s business, the Company will market its products on a statewide basis and will compete with various companies and businesses across the entire state of Florida.
Accordingly, the Executive agrees that the geographic scope of the above covenants is a reasonable means of protecting the Company’s (and the Related Entities’) legitimate business interests. Notwithstanding the foregoing covenants,
nothing set forth in this Agreement shall prohibit the Executive from owning the securities of (i) corporations which are listed on a national securities exchange or traded in the national over-the-counter market in an amount which shall not
exceed 5% of the outstanding shares of any such corporation or (ii) any corporation, partnership, firm or other form of business organization which does not compete with, is not engaged in, and does not carry on any aspect of, either directly
or indirectly through a subsidiary or otherwise, any Covered Business. 
 (c) Disclosure of Confidential Information. The Executive
acknowledges that the inventions, innovations, software, design, trade secrets, business plans, financial strategies, finances, and all other confidential or proprietary information with respect to the business and operations of the Company and
Related Entities are valuable, special, and unique assets of the Company. Accordingly, the Executive agrees not to, at any time whatsoever either during or after the Executive’s term of employment with the Company, disclose, directly or
indirectly, to any person or entity, or use or authorize any person or entity to use, any confidential or proprietary information with respect to the Company or Related Entities without the prior written consent of the Company, including, without
limitation, information as to the financial condition, results of operations, products under development, trade secrets, supplier and distribution lists, acquisition or sale strategies or acquisitions or sales under consideration, pricing or cost
information, marketing strategies or any other information relating to the Company or any of the Related Entities which could be reasonably regarded as confidential (collectively referred to as “Confidential Information”). However,
the term “Confidential Information” does not include any information which is or shall become generally available to the public other than as a result of disclosure by the Executive or by any person or entity which the Executive knows (or
which the Executive reasonably should know) has a duty of confidentiality to the Company or a Related Entity with respect to such information. In addition to the foregoing, Company will be fully entitled to all of the protections and benefits
afforded by the Florida Uniform Trade Secrets Act and other applicable law. 
 (d) Removal and Return of Proprietary Items. The
Executive will not remove from the Company’s premises (except to the extent such removal is for purposes of the performance of the Executive’s duties at home or while traveling, or except as otherwise specifically authorized by the
Company) any document, record, notebook, plan, model, design, component, device, or computer software or code obtained from the Company or containing the Company’s Confidential Information, whether embodied in a disk or in any other form
(collectively, the “Proprietary Items”). The Executive recognizes that, as between the Company and the Executive, all of the Proprietary Items, whether or not developed by the Executive, are the exclusive property of the Company.
Upon termination of Executive’s employment with the Company by either party (regardless of the reason for termination), or upon the request of the Company during the term of employment, the Executive will return to the Company all of the

  

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Proprietary Items in the Executive’s possession or subject to the Executive’s control, and the Executive shall not retain any copies, abstracts,
sketches, or other physical embodiment of any of the Proprietary Items. 
 (e) Enforcement and Remedies. In the event of any breach of
any of the covenants set forth in this Section 5, the Executive recognizes that the remedies at law will be inadequate and that in addition to any relief at law which may be available to the Company for such violation or breach and regardless
of any other provision contained in this Agreement, the Company shall be entitled to equitable remedies (including an injunction) and such other relief as a court may grant after considering the intent of this Section 5. Additionally, the
period of time applicable to any covenant set forth in this Section 5 will be extended by the duration of any violation by Executive of such covenant. In the event a court of competent jurisdiction determines that any of the covenants set forth
in this Section 5 are excessively broad as to duration, geographic scope, prohibited activities or otherwise, the parties agree that this covenant shall be reduced or curtailed to the extent, but only to the extent, necessary to render it
enforceable. 
 6. Executive Inventions. 
 (a) Definition. For purposes of this Agreement, “Executive Invention” means any idea, invention, technique, modification, process, or improvement (whether patentable or not), any industrial
design (whether registerable or not), and any work of authorship (whether or not copyright protection may be obtained for it) created, conceived, or developed by the Executive, either solely or in conjunction with others, during the Executive’s
employment with the Company or during the six (6) month period following such employment, that relates in any way to, or is useful in any manner in, the businesses then being conducted or proposed to be conducted by the Company or any Related
Entity. 
 (b) Ownership of Executive Inventions. Executive agrees and acknowledges that all Executive Inventions will belong
exclusively to the Company and that all Executive Inventions are works made for hire and the property of the Company, including any copyrights, patents, or other intellectual property rights pertaining thereto. If it is determined that any such
works are not works made for hire, the Executive hereby assigns to the Company all of the Company’s right, title, and interest, including all rights of copyright, patent, semiconductor mask protection, and other intellectual property rights, to
or in such Executive Inventions. The Executive covenants that the Executive will promptly: 
  

	 	(i)	disclose to the Company in writing any Executive Invention; 

  

	 	(ii)	assign to the Company or to a party designated by the Company, at the Company’s request and without additional compensation, all of the Executive’s right to the Executive
Invention for the United States and all foreign jurisdictions; 

  

	 	(iii)	execute and deliver to the Company such applications, assignments, and other documents as the Company may request in order to apply for and obtain patents or other registrations
with respect to any Executive Invention in the United States and any foreign jurisdictions; 

  

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	 	(iv)	sign all other papers necessary to carry out the above obligations; and 

  

	 	(v)	give testimony and render any other assistance in support of the Company’s rights to any Executive Invention. 

 7. Essential and Independent Covenants. The Executive’s covenants in Sections 5 and 6 of this Agreement are independent covenants, and
the existence of any claim by the Executive against the Company under this Agreement or otherwise will not excuse the Executive’s breach of any covenant in Section 5 or 6. 
 8. Representations and Warranties by The Executive. The Executive represents and warrants to the Company that the execution and delivery by
the Executive of this Agreement does not, and the performance by the Executive of the Executive’s obligations hereunder will not, with or without the giving of notice or the passage of time, or both: (a) violate any judgment, writ,
injunction, or order of any court, arbitrator, or governmental agency applicable to the Executive, or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement to which the
Executive is a party or by which the Executive is or may be bound, including, without limitation, any noncompetition agreement or similar agreement. 
 9. Termination. 
 (a) Death. The Executive’s employment under this Agreement shall
terminate immediately upon Executive’s death. In the event of a termination pursuant to this Section 9(a), the Executive’s estate shall be entitled to receive any unpaid base salary owing to Executive up through and including the date
of the Executive’s death. 
 (b) Disability. If, during the term of the Executive’s employment hereunder, the Executive
becomes physically or mentally disabled in accordance with the terms and conditions of any disability policy covering the Executive or, if due to any physical or mental condition, the Executive becomes unable for a period of more than sixty
(60) days during any six-month period to perform Executive’s duties hereunder on substantially a full-time basis as determined by the Company in its sole discretion, the Company may, at its option, terminate the Executive’s employment
upon not less than thirty (30) days written notice. In the event of a termination pursuant to this Section 9(b), the Executive shall be entitled to receive any unpaid base salary owing to Executive up through and including the effective
date of Termination. In the event the Company maintains a disability insurance policy on the Executive, then, notwithstanding the foregoing, the Executive shall be entitled to receive the full amount of the disability benefits provided under such
policy, in lieu of the payments of base salary provided in the preceding sentence. 
 (c) Termination By Company Without Cause. In
addition to the other termination provisions of this Agreement, the Company, by majority vote of the Board of Directors, may terminate the Executive’s employment at any time without notice and without 

  

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cause (a “Termination Without Cause”). For purposes of any vote for termination by the Board of Directors pursuant to this
Section 9(c), the Executive shall not be included in the vote. In such event, Executive will be entitled to the severance compensation set forth in Section 9(f) below. 
 (d) Termination By Company With Cause. The Company, by majority vote of the Board of Directors, may terminate the Executive’s employment at
any time with Cause. For purposes of any vote for termination by the Board of Directors pursuant to this Section 9(c), the Executive shall not be included in the vote. As used in this Agreement, “Cause” shall mean the
following: (1) insufficient productivity, or the Executive’s failure or inability to perform Executive’s duties under this Agreement; (2) dishonesty, misconduct, or unlawful acts that adversely affect the Company; (3) a
material violation of the Company’s policies or practices which reasonably justifies immediate termination; (4) pleading guilty or no contest to, or conviction of, a felony or any crime involving moral turpitude, fraud, dishonesty, or
misrepresentation; (5) the commission by the Executive of any act which could reasonably be expected to materially injure the reputation, business, or business relationships of the Company or Related Entities, (6) any factors which, in the
opinion of the Board of Directors of the Company, may have an adverse effect on the business of the Company or Related Entities; or (7) any material breach by Executive of this Agreement. The Company may terminate this Agreement for Cause, as
defined in clauses (1) and (7) above, upon thirty days prior written notice (the “Cause Notification Period”) to Executive, but such termination shall only become effective in the event of Executive’s failure to cure
the applicable breach or violation, to the reasonable satisfaction of Company, prior to the end of the Cause Notification Period. The Company may terminate this Agreement for Cause, as defined in clauses (2), (3), (4), (5) and (6) above,
at any time with no notice. In the event of a termination for Cause, the Company shall be relieved of all its obligations to the Executive provided for by this Agreement as of the effective date of termination, and all payments to the Executive
hereunder shall immediately cease and terminate as of such date, except that Executive shall be entitled to the annual base salary hereunder up to and including the effective date of termination. 
 (e) Termination By The Executive. The Executive may voluntarily elect to terminate this Agreement at any time during its effective term provided
that the Executive must deliver to the Company written notice of such intention to terminate at least thirty (30) days prior to the date upon which termination is desired. In the event of a termination by the Executive hereunder, the Company
shall be relieved of all its obligations to the Executive provided for by this Agreement as of the effective date of termination, and all payments to the Executive hereunder shall immediately cease and terminate as of such date, except that
Executive shall be entitled to the annual base salary hereunder up to and including the effective date of termination. Termination of employment by the Executive without notice as provided for herein shall constitute a violation of this Agreement;
provided, however, that the Company and the Executive may mutually agree upon a termination at any time. 
 (f) Termination Pay. In
the event of a Termination Without Cause by the Company, the Executive shall be entitled to receive the salary provided for in Section 4(a) of this Agreement for the six (6) month period (the “Severance Period”)
immediately following the date of termination of the Executive (the “Termination Date”). Executive shall be entitled to receive only such compensation as is provided in this Section 9(f), and such compensation shall be in

  

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lieu of all other amounts and in settlement and complete release of all claims the Executive may have against the Employer. In addition to the severance pay
described in the preceding sentence, the Executive shall continue to receive, during the Severance Period, all employee health and welfare benefits that Executive would have received during the Severance Period in the absence of such termination.
Executive agrees and acknowledges, however, that Executive will forfeit the right to receive the compensation and benefits provided hereunder during the Severance Period immediately upon the Executive’s breach of any covenant set forth in
Section 5 of this Agreement. Notwithstanding the foregoing, the expiration of the Executive’s employment pursuant to Section 2(a) of this Agreement or the termination of the Executive’s employment pursuant to Section 2(b) of
this Agreement shall not constitute a Termination Without Cause and shall not give rise to any severance payment or other benefits pursuant to this Section 9(f). 
 10. Notices. For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when hand-delivered, sent by
facsimile transmission (as long as receipt is acknowledged), or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the address or facsimile number for each party set forth on the signature
page hereto, or to such other address or facsimile number as either party may have furnished to the other in writing in accordance herewith, except that a notice of change of address shall be effective only upon receipt. 
 11. Miscellaneous. No provision of this Agreement may be modified or waived unless such waiver or modification is agreed to in writing
signed by both of the parties hereto. No waiver by any party hereto of any breach by any other party hereto shall be deemed a waiver of any similar or dissimilar term or condition at the same or at any prior or subsequent time. This Agreement is the
entire agreement between the parties hereto with respect to the Executive’s employment by the Company, and there are no agreements or representations, oral or otherwise, expressed or implied, with respect to or related to the employment of the
Executive which are not set forth in this Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Company, its respective successors and assigns, and the Executive and Executive’s heirs, executors, administrators and
legal representatives. The duties and covenants of the Executive under this Agreement, being personal, may not be delegated or assigned by the Executive without the prior written consent of the Company, and any attempted delegation or assignment
without such prior written consent shall be null and void and without legal effect. The parties agree that if any provision of this Agreement shall under any circumstances be deemed invalid or inoperative, the Agreement shall be construed with the
invalid or inoperative provision deleted and the rights and obligations of the parties shall be construed and enforced accordingly. 
 12.
Governing Law; Resolution of Disputes. The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the State of Florida without regard to principles of choice of law or conflicts of
law thereunder. Any controversy or claim arising out of or relating to this Agreement, or any breach thereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association then in effect in the State of
Florida, and judgment upon such award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The board of arbitrators shall consist of one arbitrator to be appointed by the Company, one by the Executive, and one by the
two arbitrators 

  

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so chosen. The arbitration shall be held in Tampa Florida, or such other place as may be agreed upon at the time by the parties to the arbitration. The cost
of arbitration shall be borne among the parties to the arbitration as determined by the arbitrators. It is the intention of the parties that to the extent the Employee’s position is upheld, his expenses (including cost of witnesses, evidence,
and attorneys), as determined by the arbitrators, shall be reimbursed to him by the Company. 
 13. Counterparts; Facsimile
Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be effective upon the execution and
delivery by any party hereto of facsimile copies of signature pages hereto duly executed by such party; provided, however, that any party delivering a facsimile signature page covenants and agrees to deliver promptly after the date
hereof two (2) original copies to the other party hereto. 
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above
written. 
  

			
	 COMPANY:

	
	 HOMEOWNERS CHOICE, INC.,
 a Florida
corporation

		
	By:	 	 /s/ Francis X. McCahill, III

		 	Francis X. McCahill, III, President
	
	Address:
	145 NW Central Park Plaza Ste 115
	Port St. Lucie, FL 34986
	
	Facsimile Number: (772) 204-9399
	
	 EXECUTIVE:

	
	 /s/ Ronald E. Chapman

	RONALD E. CHAPMAN
	
	Address:
	3588 Cypress Wood Ct
	Lake Worth, FL 33467
	
	Facsimile Number:
                                        
            

  

 10Separation Agreement and General Release

 Exhibit 10.4 
 SEPARATION AGREEMENT 
 AND 
 GENERAL RELEASE 
 THIS SEPARATION AGREEMENT AND GENERAL RELEASE (the
“Agreement”) is entered into between Ronald E. Chapman (“Mr. Chapman”), and Homeowners Choice, Inc., a Florida corporation (“the Company”) (hereinafter collectively, “the Parties”). 
 WHEREAS Mr. Chapman has been an employee of the Company, pursuant to the Executive Agreement (the “Executive Agreement”), dated effective as of
May 1, 2007 and that employment ended effective the date this Agreement is executed by Mr. Chapman (the “Termination Date”); and 
 WHEREAS Mr. Chapman and the Company wish to make special arrangements regarding Mr. Chapman’s separation from the Company; and 
 WHEREAS should Mr. Chapman wish to accept the Company’s offer under this Agreement,
Mr. Chapman must execute this Agreement and return the executed Agreement to the Company no later than close of business on the 22nd calendar
day after this Agreement is provided to Mr. Chapman (or if the 22nd calendar day falls on a weekend or on a legal holiday, by close of business
on the next business day thereafter), otherwise, this Agreement and the Company’s offer hereunder shall be deemed to have expired as of that date and time; and 
 NOW, THEREFORE, in consideration of the foregoing and of the terms, conditions, agreements and other consideration hereinafter set forth, Mr. Chapman and the Company agree as follows: 
  

	 	1.	RECITALS. The above recitals are true and accurate and incorporated into this Agreement. 

  

	 	2.	TERMINATION OF EMPLOYMENT. The Company and Mr. Chapman agree Mr. Chapman’s employment ended effective the Termination Date, and the Company expressly revoked
any and all authority previously delegated to Mr. Chapman as of that date. The Company and Mr. Chapman agree that Mr. Chapman has no right or expectation of reinstatement or rehire, and Mr. Chapman agrees not to seek
reinstatement or rehire with the Company at any time following his execution of this Agreement. 

  

	 	3.	WRITTEN RESIGNATION OF EMPLOYMENT. Upon executing this Agreement, Mr. Chapman shall tender to the Company a written resignation of his employment, reflecting such
resignation effective as of the Termination Date. 

  

	 	4.	WRITTEN RESIGNATION FROM BOARD OF DIRECTORS. Upon executing this Agreement, Mr. Chapman shall tender to the Company a written resignation of his position on the Board of
Directors of the Company, reflecting such resignation effective as of the Termination Date. 

  

  
 Ronald E. Chapman 
 (please initial) 
 1

	 	 5.
	 SEVERANCE PAYMENT. Upon full execution of this Agreement, and contingent upon Mr. Chapman’s full
compliance with its terms, and provided there has been no revocation of this Agreement by Mr. Chapman, as explained more fully below, the Company shall pay to Mr. Chapman an amount equivalent to six (6) months of
Mr. Chapman’s base salary, less taxes and other normal and legally required withholding, in a lump sum payment, payable on January 1, 2008 (or on the next business day following the 8th calendar day after Mr. Chapman has executed this Agreement, whichever is later) (the “Severance Payment”). 

  

	 	6.	STOCK OPTIONS. Pursuant to Section 4(a) of that certain Incentive Stock Option Agreement entered into by the Company and Mr. Chapman dated June 1, 2007 (the
“ISO Agreement”), any vested Option Shares held by Mr. Chapman and received under the terms of the ISO Agreement must be exercised within thirty (30) days of the Termination Date. Mr. Chapman understands and agrees that he
will not receive any future Option Shares on any future Yearly Vesting Date, as that term is defined in the ISO Agreement. 

  

	 	7.	ADEQUATE CONSIDERATION. The Parties acknowledge and agree that the Severance Payment and the Stock Options offered by the Company to Mr. Chapman (collectively, the
“Consideration”) shall constitute valid and adequate consideration for Mr. Chapman’s execution of this Agreement, and full compliance with its terms. 

  

	 	8.	IRS REPORTING, WITHHOLDING, AND ADDITIONAL TAXES. Mr. Chapman acknowledges that the Company must report and will report to the Internal Revenue Service (as well as state
and local taxing authorities where applicable) the Severance Payment made to him, and the Company will apply normal deductions and withholding to the Severance Payment. Mr. Chapman expressly acknowledges and warrants that he is, and shall be,
solely responsible for all additional federal, state, and local tax liabilities, if any, related to the Severance Payment or to the Stock Options. 

  

	 	9.	 CHAPMAN WAIVER AND RELEASE OF THE COMPANY. For and in consideration of the Consideration set forth above, and except as specifically outlined in Paragraph
10, below, Mr. Chapman does hereby (for himself and his agents, representatives, assigns, heirs, personal representatives, and any person claiming by or through him or them), completely and irrevocably release, acquit, and forever discharge the
Company (and its affiliated companies, predecessors, successors, insurers, re-insurers, agents, employees, former agents and employees, directors, officers, former directors, former officers, representatives, shareholders, and assigns)
(collectively, the “Released Parties”) of and from any and all claims, demands, proceedings, causes of action, orders, obligations, contracts, agreements, debts and liabilities whatsoever arising out of any matter occurring at 

  

  
 Ronald E. Chapman 
 (please initial) 
 2

	 	 
any time prior to and including the date this Agreement was signed, whether known or unknown, suspected or unsuspected, both at law and in equity, including,
but without limitation, any claims for fraud or fraud in the inducement, including fraud in the inducement to this Agreement, and all claims which Mr. Chapman has had, now has, or may have, in any way arising from or related to his employment
with the Company, or the cessation of that employment (including, but without limitation, any claim of employment discrimination, wrongful termination, retaliation, or other improper treatment on any basis arising under any federal, state, or local
statute, law, ordinance, rule, or regulation, including under the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefits Protection Act). Mr. Chapman understands and agrees that this Agreement prohibits him from
initiating a demand for arbitration or a lawsuit against the Company for any claim released in this Agreement and prohibits him from recovering any amounts or obtaining any remedy for himself for any claim released in this Agreement through an
action or proceeding brought by others. 

  

	 	10.	CLAIMS NOT RELEASED. Mr. Chapman understands that, under this Agreement, he is not releasing any claims or rights he may have: (a) for compensation for illness or
injury or medical expenses under any workers’ compensation statute; (b) for benefits under any plan currently maintained by the Company that provides for retirement benefits; (c) under any law or any policy or plan currently
maintained by the Company that provides health insurance continuation or conversion rights; (d) any claim under the Age Discrimination in Employment Act, as amended by the Older Workers’ Benefits Protection Act, that may arise after the
date this Agreement is signed by Mr. Chapman; or (e) for any claim which by law cannot be waived or released. 

  

	 	11.	KNOWING AND VOLUNTARY AGREEMENT. Mr. Chapman acknowledges that (a) he has carefully read this Agreement; (b) he fully understands this Agreement; (c) he
has been advised by the Company to consult with his attorney before executing this Agreement; and (d) he is entering into this Agreement voluntarily and of his own free will, with full understanding of its significance, and intending to be
bound by its terms. Mr. Chapman represents and acknowledges that no other promises or agreements of any kind have been made to or with him by any person or entity to cause him to sign this Agreement. Mr. Chapman also acknowledges and
affirms that he has the right to have this Agreement in his possession for at least 21 days in order to consider whether to sign it, which right Mr. Chapman may choose to waive, in his sole and absolute discretion. Mr. Chapman may revoke
this Agreement within 7 days after the date it is signed. After the expiration of the 7 day revocation period, this Agreement will become effective and legally binding in all respects. 

  

	 	12.	 NO RETALIATION. Mr. Chapman represents that the Company has not taken any retaliatory personnel action against him because he has disclosed, or
threatened to disclose, to any appropriate governmental agency, an activity, 

  

  
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policy, or practice of the Company that is in violation of a law, rule, or regulation; for providing information to, or testifying before, any appropriate
governmental agency, person, or entity conducting an investigation, hearing, or inquiry into an alleged violation of a law, rule, or regulation by the Company; or for objecting to, or refusing to participate in, any activity, policy, or practice by
the Company which is in violation of a law, rule, or regulation. 

  

	 	13.	FULL DISCLOSURE TO THE COMPANY. Mr. Chapman represents that he has personally and fully disclosed, in writing, to the Chairman of the Board of Directors, any information
he may have concerning any conduct involving the Released Parties that he has reason to believe may be unlawful, and promises to cooperate fully in any investigation the Company may undertake into matters occurring during his employment with the
Company. 

  

	 	14.	COOPERATION. Mr. Chapman agrees that he will assist and cooperate with the Company and its counsel in connection with any investigation, administrative or regulatory
proceeding or litigation relating to any matter in which Mr. Chapman was involved or of which Mr. Chapman has knowledge as a result of his employment with the Company. 

  

	 	15.	NOT AN ADMISSION OF LIABILITY. This Agreement does not constitute an admission by the Company that any action it took with respect to Mr. Chapman was wrongful, unlawful,
or in violation of any statute, law or regulation. Mr. Chapman agrees that he will not state, represent, suggest, or imply to anyone that this Agreement is an admission of guilt or wrongdoing by the Company. The Company expressly denies any
violation of any of its policies or procedures, or federal, state or local laws, regulations, or ordinances. 

  

	 	16.	CONFIDENTIALITY OF THIS AGREEMENT. Mr. Chapman acknowledges that his promise to keep the terms of this Agreement confidential is a material reason the Company agreed to
enter into this Agreement. Except as may be required by law, after notice to the Company where it is practical to give such notice, Mr. Chapman agrees that the existence of this Agreement and the terms of this Agreement are to be held in the
strictest confidence, and he will not divulge the existence of this Agreement or the terms of this Agreement, including but not limited to the fact or the amount of any payment hereunder to anyone other than his spouse, his tax advisor, or his legal
counsel (if any are applicable), subject to the understanding that those individuals will also keep the terms of the Agreement completely confidential and that any breach by them will be considered a breach by Mr. Chapman.

  

	 	17.	 CONFIDENTIALITY OF COMPANY INFORMATION. Mr. Chapman further agrees that in the course of his employment with the Company, Mr. Chapman saw and heard
certain confidential or proprietary business or financial information concerning the Company. Mr. Chapman agrees he will not: (a) reveal such 

  

  
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information to any person or organization; (b) use such information in a manner that could be detrimental to the Company; or (c) take any original
or copy of any documents that he received while employed by the Company. Mr. Chapman acknowledges the confidentiality provisions of this paragraph are material terms of this Agreement which are of value to the Company, and that, in the event of
any breach of these provisions, any such breach will inflict substantial, irreparable injury upon the Company which will be difficult, if not impossible, to ascertain with any reasonable certainty. All confidentiality provisions under this paragraph
shall continue without end or for the longest time period permitted under applicable state and/or federal law. 

  

	 	18.	NO SOLICITATION. Mr. Chapman agrees that for a period of two (2) years following the Effective Date of this Agreement, Mr. Chapman will not (a) hire or
attempt to hire any employee of the Company or otherwise encourage or attempt to encourage any employee of the Company to leave the Company’s employ; (b) engage in any activity that directly or indirectly causes or seeks to cause any
individual to leave employment by the Company, or which recruits, hires, or attempts to recruit or hire any individual employed by the Company; or (c) directly or indirectly, recruit, train, supervise, or assist others to directly or indirectly
engage in any of the activities prohibited under this paragraph. 

  

	 	19.	NO SOLICITATION OF CUSTOMERS. Mr. Chapman agrees that for a period of two (2) years following the Effective Date of this Agreement, Mr. Chapman will not
(a) solicit or attempt to solicit any customer of the Company with whom Mr. Chapman had personal contact or otherwise encourage or attempt to encourage any such customer to cease doing business with the Company ; (b) engage in any
activity that directly or indirectly causes or seeks to cause any customer with whom Mr. Chapman had personal contact to cease doing business with the Company, or (c) directly or indirectly, recruit, train, supervise, or assist others to
directly or indirectly engage in any of the activities prohibited under this paragraph. 

  

	 	20.	NO DISPARAGEMENT. Mr. Chapman agrees he will not criticize, denigrate, or otherwise speak adversely against the Released Parties, nor say anything which may injure the
Released Parties in their business, or in any way disparage or injure their name(s) and reputation(s) within the business community, or to the public at large. The type of comments contemplated and prohibited include, but are not limited to, any
remark which may cause or tend to cause an adverse effect on the reputation or character of the Released Parties or cause a reasonable person in the community to negatively alter or change his or her opinion or perception of the Released Parties.

  

	 	21.	 DISCLOSURE RIGHTS. Nothing in this Agreement shall prohibit or restrict Mr. Chapman from (a) making any disclosure of information required by law;
(b) providing information to, or testifying or otherwise assisting in any investigation 

  

  
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or proceeding brought by any federal or state regulatory or law enforcement agency or legislative body, or any regulatory organization; (c) testifying,
participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state, or local law relating to fraud or any rule or regulation of the Florida Office of Insurance Regulation or any regulatory agency; or
(d) providing information to the Company’s Compliance Department or the Company’s legal counsel. 

  

	 	22.	RETURN OF COMPANY PROPERTY. By signing this Agreement, Mr. Chapman represents that he has returned to the Company all files, copies of those files (including computer
files), documents, all copies of those documents (including all electronic copies), computer equipment, passwords, access codes, telephones, pagers, all keys, credit cards, and any other property of the Company assigned to him, property that he
obtained by virtue of his position with the Company, or property in his possession that was purchased at the expense of the Company. 

  

	 	23.	SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, legal representatives, and
assigns. However, neither this Agreement nor any right or duty hereunder shall be assignable by Mr. Chapman, his beneficiaries, or legal representatives. 

  

	 	24.	ENTIRE AGREEMENT, AMENDMENT. The Incentive Stock Option Agreement entered into by the Company and Mr. Chapman dated June 1, 2007 (the “ISO Agreement”) is
specifically incorporated into this Agreement. This Agreement, including the ISO Agreement, constitutes the entire agreement among the Parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings, oral
and written, among the Parties to this Agreement with respect to the subject matter hereof. The language of this Agreement shall be construed as a whole, according to its fair meaning, and not strictly for or against either party. This Agreement may
not be modified or otherwise amended except by a written instrument that expressly refers to this Agreement and executed by all of the Parties hereto. 

  

	 	25.	REFORMATION. If any provision of this Agreement is declared or determined by any court of competent jurisdiction or arbitrator to be unenforceable or invalid for any reason,
in whole or in part, neither the validity of the remaining parts of such provision nor the validity of any other provision of this Agreement shall in any way be affected thereby. In lieu of such invalid, illegal, or unenforceable provision, there
shall be added automatically as part of this Agreement a provision as similar in terms to such invalid, illegal, or unenforceable provision as may be possible to be valid, legal, and enforceable. 

  

  
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	 	26.	INDEMNIFICATION OF THE COMPANY. Mr. Chapman agrees to indemnify and hold harmless the Company and the Released Parties from and against any loss, damage or expense
(including, without limitation, attorneys’ fees) incurred by it or them as a result of any breach of this Agreement by Mr. Chapman. 

  

	 	27.	NO INDEMNIFICATION OF MR. CHAPMAN. The Company and Mr. Chapman agree that Mr. Chapman shall not be indemnified by the Company with respect to any act, failure or
refusal to act by Mr. Chapman occurring after the Termination Date. 

  

	 	28.	ATTORNEYS’ FEES AND COSTS. The Parties will bear their own fees and costs incurred in any manner with respect to the drafting, review, and execution of this Agreement.

  

	 	29.	GOVERNING LAW AND VENUE. This Agreement shall be governed by and construed in accordance with the laws of the state of Florida, excluding its conflicts of laws provisions. In
the event of any violation of any term of this Termination Agreement, any party may seek any and all remedies, at law or in equity, from any court of competent jurisdiction. The jurisdiction and venue for enforcing the terms of this Termination
Agreement shall be in Hillsborough County, Florida or in the United States District Court, Middle District, State of Florida. Any breach or threatened breach of the provisions of this Termination Agreement pertaining to confidentiality,
nonsolicitation, or nondisparagement shall entitle the Company to seek a temporary restraining order, temporary injunction or other equitable relief for any such breach. 

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 WAIVER OF JURY TRIAL. 
 THE PARTIES AGREE SHOULD ANY LEGAL ACTIONS BE FILED, ONE AGAINST 
 THE OTHER,
AT ANY TIME IN THE FUTURE, MR. CHAPMAN AND THE 
 COMPANY EACH AGREE TO WAIVE TRIAL BY JURY. 
 THEREFORE, the Parties to this Agreement now voluntarily and knowingly execute this Separation Agreement and General Release. 
  

			
	 /s/ Ronald E. Chapman

	Ronald E. Chapman
	
	12/19/07
	Date Signed
	
	 HOMEOWNERS CHOICE, INC.,
 a Florida
corporation

		
	By:	 	 /s/ Paresh Patel

		 	Paresh Patel
		 	Chairman of the Board of Directors
	
	Nov 29, 2007
	Date Signed

  

  
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