Document:

STOCK RESTRICTION AGREEMENT

 

This Stock Restriction-Agreement (this “Agreement”)
is made as of November 11, 2005, by and between Homeowners of America Holding Corporation, a Delaware corporation (the “Company”),
an individual residing at 5021 Briartree Dr., Dallas, TX 75248 (the “Founder”)

 

WHEREAS, the Founder currently owns
800,000 shares (the “Founder Shares”) of the Company’s common stock, par value $0.0001 per share (the
“Common Stock”);

 

WHEREAS, simultaneously herewith
the Company and the Founder are entering into an Employment Agreement regarding the Founder’s continued employment with the
Company (the “Employment Agreement”);

 

WHEREAS, Inter-Atlantic Fund, L.P.
and Sequel Homeowners Investment, L.P. (the “Investors”) are acquiring in the aggregate 4,500,000 shares of the Company’s
Series A Preferred Stock, par value $0.00001 per share (the “Series A Preferred Stock”) pursuant to the Securities
Purchase Agreement dated as of the date hereof, by and among the Investors, the Company and certain other investor signatories
thereto (the “Purchase Agreement”); and

 

WHEREAS, the execution and delivery
of this Agreement is a condition to the closing of the issuance, sale and purchase of the Series A Preferred Stock pursuant to
the Purchase Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Founder agree as follows:

 

Section 1. Unvested Shares.

 

(a)          Vesting.
All of the Founder Shares shall initially be unvested (the “Unvested Shares”) and subject to a right of repurchase
by the Company as set forth in Section 2 below (the “Repurchase Right”), such that (i) twenty-five percent (25%)
of the Unvested Shares shall vest upon Closing (as defined in the Purchase Agreement), (ii) twenty-five percent (25%) of the Unvested
Shares shall vest upon the first anniversary of the Closing; and (iii) 2.08% of the Unvested Shares_ shall vest monthly thereafter.
Vesting of the Unvested Shares will accelerate in the event of (i) a Change in Control (as defined below); or (ii) a Qualified
Public Offering (as defined below) such that upon any Change in Control or Qualified Public Offering all remaining Unvested Shares
shall vest in the Founder and no longer be subject to the Repurchase Right.

 

    	 

    	 

    

 

(b)          Change
in Control. For purposes of this Agreement, the term “Change in Control” shall mean any of the following transactions:
(i) any person (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), other than the Company, any employee benefit plan of the Company or any entity organized, appointed or established
by the Company for or pursuant to the terms of any such plan, together with all “affiliates” and “associates”
(as such terms are defined in Rule 12b-2 under the Exchange Act) becomes the beneficial owner or owners (as defined in Rule 13d-3
and 13d-5 promulgated under the Exchange Act), directly or indirectly, of more than fifty percent (50%) of the outstanding Common
Stock of the Company, or otherwise becomes entitled to vote more than fifty percent (50%) of the voting power entitled to be cast
at elections for directors (“Voting Power”) of the Company; (ii) a consolidation or merger of the Company pursuant
to which the holders of the Company’s voting shares immediately prior to such merger or consolidation would not be the holders,
directly or indirectly, immediately after such merger or consolidation of more than fifty percent (50%) of the Voting Power of
the entity surviving such transaction; (iii) the sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company; or (iv) the liquidation or dissolution of the Company or
the Company ceasing to do business.

 

(c)          Qualified
Public Offering. For purposes of this Agreement, the term “Qualified Public Offering” shall mean a firm commitment
underwritten public offering registered under the Securities Act covering the offer and sale by the Company of its Common Stock
(a) in which (i) the aggregate proceeds to the Company equal or exceed $50,000,000, net of underwriting discounts, commissions,
and fees, and (ii) the price per share of such Common Stock equals or exceeds $5.00 (subject to appropriate adjustment in the event
of any stock dividend, stock split, reclassification, combination or other similar recapitalization affecting such shares), and
(b) that results in the securities so offered being listed on a national securities exchange or quoted on the NASDAQ National Market.

 

Section 2. The Company’s Repurchase Right.

 

(a)          Triggering
Events. Upon the termination of the Founder’s employment with the Company (whether such employment is terminated by the
Founder or the Company, and for any reason or no reason) the Company shall have the right to repurchase up to all of the Unvested
Shares at the lower of (i) initial cost of such Unvested Shares to the Founder; or (ii) the book value thereof. In the event of
a voluntary termination by the Founder without Good Reason (as defined in the Employment Agreement) prior to the third (3rd) anniversary
of the Closing, the Company shall have the right to repurchase up to all of the vested Founder Shares at the lower of (i) initial
cost of such vested Founder. Shares; or (ii) the book value thereof. In the event of termination of the Founder’s employment
with the Company Without Cause (as defined in the Employment Agreement) by the Company or for Good Reason (as defined in the Employment
Agreement) by the Founder or due to the Founder’s death or disability, the Company may repurchase up to all of the vested
Founder Shares from the Founder or the Founder’s personal representative(s), estate, heir(s) or legatee (the “Founder’s
Representative”), as the case may be, at Fair Market Value (as defined below). The Company’s repurchase right as
set forth in this Section 2 shall expire with regard to the Founder Shares first offered to the Company and subsequently sold to
a non-affiliate of the Founder in accordance with Section 4 of the Founder’s Stock Purchase Agreement by and between
the Company and the Founder dated as of April 27, 2005 (the “Founder’s Stock Purchase Agreement”).

 

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(b)          Fair
Market Value. For purposes of this Section 2, the “Fair Market Value” of any Founder Shares shall
be the fair market value thereof (on a per share basis) at the time that the Company’s Repurchase Right is triggered pursuant
to Section 2(a) hereof as determined in good faith by the Board of Directors of the. Company, provided that such fair market
value must approximate the price that a willing buyer and a willing seller would arrive at in an arms-length transaction. If the
Founder or the Founder’s Representative disagrees with the valuation as determined by the Board of Directors, each of the
Purchaser or the Purchaser’s Representative, on the one hand, and the Board of Directors, on the other hand, shall cause
an appraiser to determine the Fair Market Value on a basis consistent with the terms hereof within twenty (20) days. The cost of
both appraisers shall be borne by the Company. In the event that the determination by each appraiser differs by less than ten percent
(10%) from the determination by the other appraiser, the Fair Market Value shall be the average of the two. In the event that the
determination by either appraiser differs by ten percent (10%) or more from the determination of the other appraiser, then the
two appraisers shall select a third appraiser within five (5) days, the fees and expenses of which third appraiser shall be shared
equally by the parties. The third appraiser shall, within ten (10) days of its selection, designate which of the two determinations
most accurately reflects the Fair Market Value or designate a Fair Market Value between the two determinations which the third
appraiser determines most accurately reflects the Fair Market Value. The determination made in accordance with the foregoing shall
be final and binding on all parties hereto.

 

(c)          Additional
Shares. If the Company shall pay a stock dividend or declare a stock split on or with respect to any of its Common Stock, or
otherwise distribute securities of the Company to the holders of its Common Stock, the number of shares of stock or other securities
of the Company issued with respect to the Vested Shares shall be deemed “Vested Shares” herein. If the Company
shall distribute to its stockholders securities of another corporation, the securities of such other corporation, distributed with
respect to the Vested Shares shall be deemed “Vested Shares” herein. If the outstanding shares of the Company’s
Common Stock shall be subdivided into a greater number of shares or combined into a smaller number of shares, or in the event of
a reclassification of outstanding shares of the Company’s Common Stock, or if the Company shall be a party to a merger, consolidation
or capital reorganization, there shall be substituted for the Vested Shares of the Common Stock then subject to this Agreement
such amount and kind-of securities as are issued in such subdivision, combination, reclassification, merger, consolidation or capital
reorganization in respect of the Vested Shares subject to this Agreement immediately prior thereto .

 

(d)          Notice
and Closing. The Company may exercise its. Repurchase Right by sending Founder written notice, within fifteen days (15) days
after’any triggering event set forth in Section 2(a), specifying the number of Founder Shares the Company elects to
repurchase pursuant to the Repurchase Right and a date for the closing, which date shall be as soon as practicable but no later
than forty-five (45) days after the date of such notice. The closing shall take place at the principal office of the Company or
at such other location as the Company and the Founder shall agree. At the closing, Founder shall transfer to the Company the number
of Founder Shares specified in the Company’s notice, free of all liens, encumbrances and rights of others, by delivery of
certificates representing such number of Founder Shares, duly endorsed for transfer or accompanied by duly executed stock powers.
Concurrent with such transfer and its receipt of such certificates so endorsed and subject to Section 3 below, the Company
shall pay for such Founder Shares by any of the following methods: (i) by delivery to Founder of a check in the amount of the aggregate
purchase price for such Founder Shares, (ii) by cancellation of indebtedness of Founder to the Company in such amount, (iii) by
wire transfer of immediately available funds to one or more accounts designated by Founder, or (iv) by any combination of the above
methods. The method or methods of payment for such Founders Shares shall be chosen by the Company in its sole discretion.

 

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(e)          No
Further Obligations. Upon delivery by the Company of notice of exercise of the Repurchase Right, the Company’s sole obligation
with respect to the Founders Shares as to which the Repurchase Right is being exercised shall be to make payment of the purchase
price therefor. The Company shall not be required after delivery of such notice to treat the Founder as owner of such Founders
Shares, to accord the right to vote to the Founder with respect thereto or to pay dividends thereon and the Founder shall have
no rights with respect thereto other than to receive such payment of the repurchase price therefor.

 

Section 3. Company’s Right to Defer Payments.
Notwithstanding anything herein to the contrary, no payment shall be made under this Agreement that would cause the Company to
violate any banking agreement or loan or other financial covenant or cause default of any indebtedness of the Company, regardless
of when such agreement, covenant, or indebtedness was created, incurred, or assumed. Any payment under this Agreement that would
cause such violation or default shall be deferred until, in the sole discretion of the Board of Directors of the Company, such
payment shall no longer cause any such violation or default. Any payment deferred in consequence of the provisions of the preceding
sentence shall bear simple interest from the date such payment otherwise would have been made to the date when such payment actually
is made, at a rate that is equal to the prime rate of interest published in the Eastern Edition of the Wall Street Journal from
time to time during the period of such deferral, but in no event shall such rate of interest exceed eight percent (8%) per annum.
The Company shall pay interest at the same time as it makes the payment to which such interest relates.

 

Section 4. Restrictive Legend. All certificates
representing Founder Shares shall have affixed thereto a legend in substantially the following form, in addition to any other legends
that may be required under federal or state securities laws:

 

THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
TO AN OPTION TO PURCHASE SET FORTH IN A CERTAIN STOCK RESTRICTION AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED OWNER OF THIS
CERTIFICATE (OR HIS PREDECESSOR IN INTEREST), AND NO TRANSFER OF SUCH SHARES MAY BE MADE WITHOUT COMPLIANCE WITH THAT AGREEMENT.
A COPY OF THAT AGREEMENT IS AVAILABLE FOR INSPECTION AT THE OFFICE OF THE COMPANY UPON APPROPRIATE REQUEST AND WITHOUT CHARGE.

 

Section 5. Withholding Taxes. Founder acknowledges
and agrees that the Company has the right to deduct from payments of any kind otherwise due to Founder any federal, state, or local
taxes of any kind required by law to be withheld with respect to the issuance of the Founder Shares.

 

Section 6. Invalidity or Unenforceability. It
is the intention of the Company and Founder that this Agreement shall be enforceable to the fullest extent allowed by law. In the
event that a court having jurisdiction holds any provision of this Agreement to be invalid or unenforceable, in whole or in part,
the Company and Founder agree that, if allowed by law, that provision shall be reduced only to the degree necessary to render it
valid and enforceable without affecting the rest of this Agreement, which shall be enforced to the fullest extent permitted by
law.

 

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Section 7. Waiver. No delay or omission by the
Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent
given by the Company on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver
of any right on any other occasion.

 

Section 8. Binding Effect. This Agreement shall
be binding upon and inure to the benefit of the Company and Founder and their respective heirs, executors, administrators, legal
representatives, successors, and permitted assigns, subject to the terms, conditions and restrictions on transfer set forth in
this Agreement. The Company may assign its rights under this Agreement to a third party, provided such assignee agrees to be bound
by all of the Company’s obligations under this Agreement.

 

Section 9. No Rights To Employment. Nothing contained
in this Agreement shall be construed as giving Founder any right to be retained, in any position, as an employee or consultant
of the Company for .any period of time or to restrict the Company’s right to terminate his employment or consulting relationship
at any time with or without cause or notice.

 

Section 10. Notices. Any notices required or permitted
by the terms of this Agreement shall be in writing and given by nationally recognized courier service, or by registered or certified
mail, return receipt requested, postage prepaid, or by facsimile, addressed as follows:

 

	If to the Company:	Homeowners of America Corporation
	 	5021 Briar Tree Drive
	 	Dallas, Texas 75248
	 	Attention: ________________

 

and a copy (which shall not
be deemed effective notice) to

 

	 	Lowenstein Sandler PC
	 	65 Livingston Avenue
	 	Roseland, New Jersey 07068
	 	Attention:Anthony O. Pergola
	 	Fax No. (973) 597-2500
	 	 
	If to Founder:	Mr. Spencer W. Tucker
	 	5021 Briar Tree Drive
	 	Dallas, Texas 75248
	 	Fax No.

 

or to such other address of which notice in the same manner
has previously been given. Any such notice shall be deemed to have been given on the earliest of receipt, one (1) business day
following delivery by the sender to a nationally recognized courier service, or five (5) business days following mailing by registered
or certified mail.

 

Section 11. Entire Agreement. This Agreement,
together with the Founder’s Stock Purchase Agreement and the Employment Agreement, constitute the entire agreement between
the parties, and supersedes all prior agreements and understandings, written or oral, relating to the subject matter of this Agreement.

 

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Section 12. Amendment. This Agreement may be amended
or modified only by a written instrument executed by both the Company and Founder.

 

Section 13. Governing Law. All matters arising
directly or indirectly from this Agreement, in whatever form, including, without limitation, tort claims, shall be construed and
enforced in accordance with the laws of the State of Texas without giving effect to the conflict of law principles thereof.

 

Section 14. Consent of Spouse. If Founder is married
as of the date of this Agreement, Founder’s spouse shall execute a Consent of Spouse in the form of Exhibit A hereto (the
“Consent of Spouse”), effective as of the date hereof. Such consent shall not be deemed to confer or convey to the
spouse any rights in the Founder Shares that do not otherwise exist by operation of law or the agreement of the parties. If Founder
marries or remarries subsequent to the date hereof, Founder shall, not later than sixty (60) days thereafter, obtain his new spouse’s
acknowledgment of and consent to the existence and binding effect of all restrictions contained in this Agreement by such spouse’s
executing and delivering the Consent of Spouse.

 

Section 15. Counterparts. This Agreement may be
executed in one or more counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

 

Section 16. Acknowledgement. FOUNDER ACKNOWLEDGES
THAT HE IS AWARE THAT THE LEGAL, FINANCIAL AND RELATED MATTERS CONTAINED IN THE AGREEMENT ARE COMPLEX AND THAT HE IS FREE TO SEEK
INDEPENDENT PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT TO THIS AGREEMENT, AND THAT HE HAS EITHER SOUGHT SUCH GUIDANCE OR COUNSEL
OR DETERMINED AFTER REVIEWING THE AGREEMENT CAREFULLY THAT HE WILL WAIVE SUCH RIGHT.

 

[Signature Page Follows]

 

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

 

	 	 
	 	Spencer W. Tucker
	 	 
	 	HOMEOWNERS OF AMERICA
	 	HOLDING CORPORATION
	 	 
	 	 
	 	Name:
	 	Title:

 

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ANNEX A

 

Sale of Common Stock

 

RESOLVED, that
subject to prior compliance with federal and state securities laws (the “Securities Laws”), the proper officers
of the Company be, and each of them hereby is, authorized, for and on behalf of the Company, to sell an aggregate of 200,000 shares
of its common stock, par value $0.0001 per share (“Common Stock”), to the following persons (each, a “Purchaser,”
and collectively, the “Purchasers”):

 

	Name	 	Number of Shares	 
	 	 	 	 
	Richard P. Backus	 	 	100,000	 
	 	 	 	 	 
	Alvin M. Johnston	 	 	100,000	 

 

and further;

 

RESOLVED, that the sale and issuance
of Common Stock to the Purchasers was for consideration equal to $0.0001 per share pursuant to a Stock Purchase Agreement (the
“Purchase Agreement”) in substantially the form attached hereto as Exhibit A; and further

 

RESOLVED, that the sale and issuance
of Common Stock to each of the Purchasers shall be conditioned upon the receipt by the Company from each Purchaser of the purchase
price of $0.0001 per share and the execution by the Purchaser and the Company of the Purchase Agreement; and further

 

RESOLVED, that upon the issuance
and sale in accordance with the foregoing resolutions, such shares of Common Stock shall be fully paid and nonassessable shares
of the Company; and further

 

RESOLVED, that the appropriate officers
of the Company be, and each of them hereby is, authorized, for and on behalf of the Company, (a) to take all actions necessary
to comply with the Securities Laws with respect to the above-described issuance of shares, (b) to thereafter issue on behalf of
this Company pursuant to the authorization above, the shares of Common Stock described above, and (c) to take such other action
as they may deem necessary or appropriate to carry out the issuance of the shares and the intent of these resolutions; and further

 

RESOLVED, that, in accordance with
each Purchase Agreement, the Common Stock to be sold to the Purchasers shall be subject to repurchase by the Company, at the original
exercise price paid per share, upon the Purchasers cessation of service prior to vesting in those shares. So long (and only for
so long) as the Purchaser remains continuously employed by the Company or any subsidiary or parent of the Company, such repurchase
right shall lapse with respect to the shares, and each Purchaser shall vest in his shares, as follows: (a) 25% of the shares on
the Qualified Financing Closing Date (as defined in the Purchase Agreement); (b) 25% of the balance of the shares upon the first
anniversary of the Qualified Financing Closing Date; and (c) 2.0833% of the balance of the shares upon the expiration of each full
month elapsed after the first anniversary of the Qualified Financing Closing Date; and further

 

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RESOLVED, that the shares purchased
under each Purchase Agreement shall be subject to the Company’s right of first refusal, exercisable in the event the Purchaser
should decide to sell or otherwise transfer any of the shares purchased under such Purchase Agreement prior to the initial public
offering of the Common Stock; and further

 

RESOLVED, that the terms pursuant
to which the shares purchased under the Purchase Agreement may be repurchased by the Company under the repurchase and first refusal
rights specified above shall be substantially as set forth in the Purchase Agreement.

 

Miscellaneous

 

RESOLVED, that all prior lawful acts
taken or caused to be taken by or on behalf of the Company by its officers and authorized agents, including, but not limited to,
any and all acts taken or caused to be taken in connection with the forgoing resolutions, and the negotiation and preparation of
documents and actions ancillary thereto are hereby ratified, approved and confirmed in all respects and adopted as the acts of
the Company; and further

 

RESOLVED, that the officers of the
Company be, and each such officer hereby is, authorized and empowered, for and on behalf of the Company, to prepare and deliver
or cause to be prepared and delivered and to execute all documents and take or cause to be taken such further actions as they may
deem necessary, appropriate or advisable to fully effectuate the intent of the foregoing recitals and resolutions and to comply
with the provisions of any of the documents or instruments approved or authorized hereby.

 

    	- 9 -HOMEOWNERS OF AMERICA
HOLDING CORPORATION

2005 MANAGEMENT INCENTIVE
PLAN

 

Homeowners of America Holding Corporation,
a Delaware corporation (the “Company”), hereby establishes the Homeowners of America Holding Corporation 2005
Management Incentive Plan (the “Plan”), effective as of November 8, 2005, subject to stockholder approval.

 

1.Purpose.
The purpose of the Plan is to enable the Company to obtain and retain the services of selected persons considered essential to
the long-range success of the Company by providing and offering them an opportunity to become owners of the Common Stock of the
Company through stock options, including options intended to qualify as “incentive stock options” under Section 422
of the Code.

 

2.Definitions.
In addition to terms elsewhere defined in the Plan, the following terms will have the following meanings when used with initial
capital letters:

 

(a)“Board”:
the Board of Directors of the Company.

 

(b)“Certificate”:
the Amended and Restated Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware,
and as further amended from time to time.

 

(c)“Code”:
the Internal Revenue Code of 1986, as in effect from time to time.

 

(d)“Committee”:
the Compensation Committee of the Board and, to the extent the administration of the Plan has been assumed by the Board pursuant
to Paragraph 10, the Board.

 

(e)“Common
Stock”: the common stock, par value $.0001 per share, of the Company.

 

(f)“Date
of Grant”: the date specified by the Committee on which a grant of Stock Options will become effective..

 

(g)“Incentive
Stock Option”: a Stock Option that is intended to qualify as an “incentive stock option” under Section 422
of the Code.

 

(h)“Management
Objectives”: the measurable performance objectives, if any, established by the Committee for a Performance Period that
are to be achieved with respect to a Stock Option granted to a Participant under the Plan. Management Objectives may be described
in terms of Company-wide objectives or in terms of objectives that are related to performance of a division, Subsidiary, department
or function within the Company or a Subsidiary in which the Participant receiving the Stock Option is employed or on which the
Participant’s efforts have the most influence. The achievement of the Management Objectives established by the Committee
for any Performance Period will, unless determined otherwise by the Committee, be determined without regard to the effect on such
Management Objectives of any acquisition or disposition by the Company of a trade or business, or of substantially all of the assets
of a trade or business, during the Performance Period and without regard to any change in accounting standards by the Financial
Accounting Standards Board or any successor entity. The Management Objectives established by the Committee for any Performance
Period under the Plan may consist of one or more of the following:

 

    	 

    	 	

    
 

(i)gross
profits and/or growth in gross profits in relation to target objectives;

 

(ii)pre-tax
profit and revenue and/or growth in pre-tax profit and revenue in relation to target objectives;

 

(iii)earnings
per share and/or growth in earnings per share in relation to target objectives, excluding the effect of extraordinary or nonrecurring
items;

 

(iv)operating
cash flow and/or growth in operating cash flow in relation to target objectives;

 

(v)net
income and/or growth in net income in relation to target objectives, excluding the effect of extraordinary or nonrecurring items;

 

(vi)revenue
and/or growth in revenue in relation to target objectives;

 

(vii)total
stockholder return (measured as the total of the appreciation of and dividends declared on the Common Stock) in relation to target
objectives;

 

(viii)return
on invested capital in relation to target objectives;

 

(ix)return
on stockholder equity in relation to target objectives; or

 

(x)return
on assets in relation to target objectives.

 

If the Committee determines that, as a result
of a change in the business, operations, corporate structure or capital structure of the. Company, or the manner in which the Company
conducts its business, or any other events or circumstances, the Management Objectives are no longer suitable, the Committee may
in its discretion modify such Management Objectives or the related minimum acceptable level of achievement, in whole or in part,
with respect to a Performance Period as the Committee deems appropriate and equitable, except where such action would result in
the loss of the otherwise available exemption of the Stock Option under Section 162(m) of the Code. In such case, the Committee
will not make any modification of the Management Objectives or minimum acceptable level of achievement, in each such case to the
extent it would cause such a result.

 

(i)“Market
Value Per Share”: at any date, (i) the volume weighted average sales price (regular way) of the Common Stock on the principal
exchange on which shares of Common Stock are then trading, if any, on that date, or, if shares were not traded on that date, then
on the next preceding trading day during which a sale occurred; or (ii) if such Common Stock is not traded on an exchange but is
quoted on NASDAQ or a successor quotation system, (A) the volume weighted average sales price (regular way) (if the Common Stock
is then listed as a National Market Issue under the NASDAQ National Market System) or (B) the mean between the closing representative
bid and asked prices (in all cases) for the Common Stock on that date as reported by NASDAQ or such successor trading system; or
(iii) if the Common Stock is not traded in any market or quoted on NASDAQ, the fair market value of a share of Common Stock established
by the Board.

 

    	- 2 -

    	 

    
 

(j)“Option
Price”: the purchase price per share payable on exercise of a Stock Option.

 

(k)“Participant”:
a person who is selected by the Committee to receive benefits under the Plan and who is at that time an executive officer, a non-employee
member of the Board or the board of directors of any Subsidiary, a consultant or other independent advisor who provides services
to the Company (or any Subsidiary) or a key employee of the Company or any Subsidiary.

 

(l)“Performance
Period”: a period of time within which the Management Objectives relating to a Stock Option are to be measured. The Performance
Period will be established by the Committee at the time the Stock Option is granted.

 

(m)“Qualified
Public Offering”: a firm commitment underwritten public offering registered under the Securities Act covering the offer
and sale by the Company of its Common Stock (a) in which (i) the aggregate proceeds to the Company equal or exceed $50,000,000,
net of underwriting discounts, commissions, and fees, and (ii) the price per share of such Common Stock equals or exceeds $5.00,
and (b) that results in the securities so offered being listed on a national securities exchange or quoted on the NASDAQ.

 

(n)“Rule
16b-3”: Rule 16b-3 under Section 16 of the Securities Exchange Act of 1934, as amended (or any successor rule to the
same effect), as in effect from time to time.

 

(o)“Securities
Act”: the Securities Act of 1933, as amended.

 

(p)“Stock
Purchase Agreement”: the Stock Purchase Agreement, dated as of November 11, 2005, by and among the Company, Spencer W.
Tucker, and the entities listed on Schedule A thereto.

 

(q)“Stockholders’
Agreement”: that certain Stockholders’ Agreement dated as of November 11, 2005, by and among the Company, the investors
listed on Schedule A thereto, and the holders of the Common Stock listed on Schedule B thereto, as amended and in effect from time
to time.

 

(r)“Stock
Option”: the right to purchase one or more shares of Common Stock upon exercise of an option granted pursuant to Paragraph
4.

 

(s)“Subsidiary”:
means (i) any corporation, of which a majority of the total voting power of shares of stock entitled (without regard to the occurrence
of any contingency) to vote generally in the election of directors thereof is at the time owned or controlled, directly or indirectly,
by the Company or one or more of the other Subsidiaries of the Company or a combination thereof or (ii) any limited liability company,
partnership, association or other business entity, of which a majority of the partnership or other similar ownership interests
thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more Subsidiaries of the Company or
a combination thereof. For purposes of this definition, the Company will be deemed to have a majority ownership interest in a limited
liability company, partnership, association or other business entity if the Company will be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses, or is or controls the managing member or general partner
of such limited liability company, partnership, association or other business entity.

 

    	- 3 -

    	 

    
 

3.Shares
Available Under Plan. Subject to adjustment as provided in Paragraph 7, the shares of Common Stock that may be issued or transferred
and covered by outstanding Stock Options granted under the Plan (including Incentive Stock Options) will not exceed in the aggregate
315,790 shares. Such shares may be shares of original issuance or treasury shares or a combination of the foregoing. Any shares
of Common Stock that are subject to Stock Options that expire or are canceled without having been fully exercised will again be
available for issuance under the Plan. Upon payment by the Company in cash of the benefit provided by any Stock Option granted
under the Plan, any shares that were covered by that Stock Option will again be available for issuance or transfer under the Plan.

 

4.Stock
Options for Participants. The Committee may from time to time authorize grants to any Participant of Stock Options to purchase
shares of Common Stock upon such terms and conditions as it may determine in accordance with this Paragraph 4. Each grant of Stock
Options may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following
provisions:

 

(a)Each
grant will be evidenced by a written award agreement, which will be executed on behalf of the Company by an authorized officer
of the Company and which will contain such terms and conditions as determined by the Committee, consistent with the Plan.

 

(b)Each
grant will specify the number of shares of Common Stock to which it pertains.

 

(c)Each
grant will specify the Option Price, which will not be less than 100% of the Market Value Per Share on the Date of Grant.

 

(d)Each
grant will specify whether the Option Price will be payable (i) in cash or by check acceptable to the Company, (ii) by the actual
or constructive transfer to the Company Of shares of Common Stock owned by the Participant for at least six months (or, with the
consent of the Committee, for less than six months) having an aggregate Market Value Per Share at the date of exercise equal to
the aggregate Option Price, (iii) with the consent of the Committee, by authorizing the Company to withhold a number of shares
of Common Stock otherwise issuable to the Participant having an aggregate Market Value Per Share on the date of exercise equal
to the aggregate Option Price, or (iv) by a combination of such methods of payment; provided that the payment methods described
in clauses (ii), (iii) and (iv) will not be available at any time that the Company is prohibited from purchasing or acquiring such
shares of Common Stock.

 

    	- 4 -

    	 

    
 

(e)Any
grant may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker of some or all of
the shares to which such exercise relates.

 

(f)Successive
grants may be made to the same. Participant whether or not any Stock Options previously granted to such Participant remain unexercised.

 

(g)Each
grant will specify the required period or periods of continuous service by the Participant with the Company or any Subsidiary that
are necessary before the Stock Options or installments thereof will become exercisable, and may include such other conditions as
the Committee deems appropriate.

 

(h)Any
grant may specify the Management Objectives, if any, that must be achieved as a condition to the exercise of the Stock Options.

 

(i)Any
grant may provide for the earlier exercise of the Stock Options in the event of a change in control of the Company or other similar
transaction or event.

 

(j)Stock
Options granted under this Paragraph 4 may be Incentive Stock Options, options that are not intended to be Incentive Stock Options,
or combinations of the foregoing. Incentive Stock Options may be granted only to individuals who are employees of the Company _or
a Subsidiary. The aggregate number of shares of Common Stock issued or transferred by the Company upon the exercise of Incentive
Stock Options will not exceed 315,790 shares.

 

(k)Any
grant may provide for the payment to the Participant of dividend equivalents thereon in cash or Common Stock on a current, deferred
or contingent basis.

 

(l)No
Stock Option will be exercisable more than 10 years from the Date of Grant.

 

(m)If
a Participant terminates employment by reason of permanent disability (as determined by the Committee) or death, the vested portion
of the Participant’s Stock Options may be exercised for a period of 180 days after the date of termination of employment
and to the extent not previously exercised will expire on the first anniversary of the date the Participant terminates employment.
The nonvested portion of the Participant’s Stock Options will be forfeited upon the Participant’s termination of employment.

  

(n)If
the employment of a Participant is terminated for other than cause, as determined-by the Committee in its sole discretion, the
vested portion of the Participant’s Stock Options may be exercised for a period of 90 days after the date of termination
of employment and to the extent not previously exercised will expire 90 after the date of the termination of employment. The nonvested
portion of the Participant’s Stock Options will be forfeited upon the Participant’s termination of employment.

 

(o)If
a Participant terminates employment other than as set forth in Paragraphs 4(m) and 4(n), the Participant’s Stock Options
will expire immediately and all nexercised Stock Options will be forfeited on the date of the Participant’s termination of
employment.

 

(p)For
purposes of any provision in the Plan or a stock option agreement relating to the effect on a Stock Option of a Participant’s
ceasing to perform services for the Company or any Subsidiary, a termination of employment or other separation from service will
occur when the Participant permanently ceases to perform services for the Company and all Subsidiaries or when the entity for which
the Participant is performing services ceases to be a Subsidiary, unless the Participant immediately becomes employed by the Company
or another Subsidiary.

 

    	- 5 -

    	 

    
 

5.Transferability.

 

(a)Except
as otherwise provided in the Stockholders’ Agreement or the agreement evidencing a Participant’s award of Stock Options,
(i) no Stock Option will be transferable by the Participant other than by will or the laws of descent and distribution, and then
only in accordance with the Stockholders’ Agreement, and (ii) no Stock Option granted to the Participant will be exercisable
during the Participant’s lifetime by any person other than the Participant, or such person’s guardian or legal representative.

 

(b)All
of the Stock Options issued under the Plan and all shares of Common Stock issued pursuant to the exercise of a Stock Option will
be subject to the terms and restrictions of (including restrictions on transfer), and entitled to the benefits under, the Stockholders’
Agreement, and the Participant will as a condition to the effectiveness of a grant of Stock Options under the Plan, execute and
deliver to the Company documentation necessary for the Participant to become a party to the Stockholders’ Agreement. In the
event of a conflict between the terms of the Plan and the Stockholders’ Agreement, the terms of the Stockholders’ Agreement
will govern.

 

6.Company’s
Repurchase Right.

 

(a)Subject
to the terms of this Paragraph 6 and the Stockholders’ Agreement, upon the occurrence of any Repurchase Event (as defined
herein) the Company will have the right to repurchase all or any vested and unexercised Stock Options and all or any portion of
the shares. of Common Stock issued to such Participant upon the exercise of a Stock Option (the “Option Shares”).
The repurchase right may be exercised by the Company at any time following the date of a Repurchase Event by giving the holder
of the Stock Options and the Option Shares written notice of its intention to exercise such right. Unless otherwise provided in
the Stockholders’ Agreement, the purchase price for each Stock Option will be the Market Value Per Share less the exercise
price of the relevant Stock Option, and the purchase price per Option Share will be the Market Value Per Share on the date of such
notice.

 

(b)Within
30 days following the date of delivery by the Company of a written notice of its election to exercise its repurchase right pursuant
to this Paragraph 6, the Company will pay to the Participant or other holder of the Stock Options or Option Shares the full amount
of the purchase price in cash, and the Participant or holder will deliver to the Company the evidence of the award of the Stock
Option or the stock certificate or certificates representing the Option Shares being purchased, in each case duly endorsed and
free and clear of any and all liens, charges and encumbrances.

 

    	- 6 -

    	 

    
 

(c)For
purposes of the Plan, “Repurchase Event” means (i) the termination of the Participant’s employment with
the Company and its Subsidiaries for any reason whatsoever, regardless of the circumstances thereof, and including without limitation
death, disability, retirement, discharge or resignation for any reason, whether voluntary or involuntary; (ii) the filing of a
voluntary petition under any bankruptcy or insolvency law, or a petition for the appointment of a receiver or the making of an
assignment for the benefit of creditors, with respect to the Participant or other holder of the Stock Options or Option Shares;
(iii) the Participant or other holder of Stock Options or Option Shares being subjected involuntarily to a petition or assignment
or to an attachment or other legal or equitable interest with respect to his or her assets, which involuntary petition or assignment
or attachment is not discharged within 60 days after its date; or (iv) the Participant or other holder of the Stock Options or
Option Shares being subject to a transfer by operation of law.

 

(d)If
any change in the Common Stock of the Company occurs as a result of any transaction or event described in Paragraph 7, the restrictions
contained in this Paragraph 6 will apply with equal force to additional and/or substitute securities, if any, received by the Participant
in exchange for, or by virtue of his or her ownership of, Stock Options or Option Shares.

 

(e)If
the Participant or holder fails or refuses to deliver on a timely basis duly endorsed awards evidencing Stock Options or certificates
representing Option Shares purchased by the Company pursuant to this Paragraph 6, the Company will have the right to deposit the
purchase price for such Stock Options and Option Shares in a special account with any bank or trust company, giving notice of such
deposit to the Participant or holder, whereupon (i) such Stock Options and Option Shares will be deemed to have been purchased
by the Company and (ii) the Company shall make an appropriate notation on its books and records reflecting such repurchase and
may place stop-transfer or similar instructions with respect to such Stock Options and Option Shares with any transfer agent for
the Common Stock. All such monies will be held by the bank or trust company for the benefit of the Participant or holder. All monies
deposited with the bank or trust company but remaining unclaimed for two years after the date of deposit will be repaid by the
bank or trust company to the Company on demand and become general funds of the Company, and the Participant or holder will thereafter
look only to the Company for payment.

 

(f)The
repurchase right of the Company set forth above will remain in effect until the closing of a Qualified Public Offering, and will
be binding upon any transferee of Stock Options and Option Shares. The Company may place a legend on any award evidencing Stock
Options or certificate for Option Shares, delivered to the Participant reflecting the repurchase rights provided in the Plan.

 

    	- 7 -

    	 

    
 

7.Adjustments.
The Committee will make or provide for such adjustments in the maximum number of shares specified in Paragraph 3 and Paragraph
4, in the numbers of shares of Common Stock covered by outstanding Stock Options granted hereunder, in the Option Price applicable
to any such Stock Options, and/or in the kind of shares covered thereby (including shares of another issuer), as the Committee
in its sole discretion, exercised in good faith, may determine is equitably required to maintain the intent of the Plan or to prevent
dilution or enlargement of the rights of Participants that otherwise would result from (i) any stock dividend, stock split, combination
of shares, recapitalization or other change in the capital structure of the Company, (ii) any merger, consolidation, spin-off,
split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights
or warrants to purchase securities, or (iii) any other corporate transaction or event having an effect similar to any of the foregoing.
Moreover, in the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any
or all outstanding Stock Options under the Plan such alternative consideration as it, in good faith, may determine to be equitable
in the circumstances and may require in connection with such substitution the surrender of all Stock Options so replaced.

 

8.Fractional
Shares. The Company will not be required to issue any fractional share of Common Stock pursuant to the Plan. The Committee
may provide for the elimination of fractions or for the settlement of fractions in cash.

 

9.Withholding
Taxes. To the extent that the Company is required to withhold federal, state, local or foreign taxes in connection with any
payment made or benefit realized by a Participant or other person under the Plan (including as a result of the repurchase or exercise
of any Stock Option), and the amounts available to the Company for such withholding are insufficient, it will be a condition to
the receipt of such payment or the realization of such benefit that the Participant or such other person make arrangements satisfactory
to the Company for payment of the balance of such taxes required to be withheld. In addition, if permitted by the Committee, the
Participant or such other person may elect to have any withholding obligation of the Company satisfied with shares of Common Stock
(valued at the Market Value Per Share at such time) that would otherwise be transferred to the Participant or such other person
in payment of the aggregate Option Price. In no event, however, will shares of Common Stock be withheld in excess of the minimum
number of shares required to satisfy the Company’s withholding obligation.

 

10.Administration
of the Plan.

 

(a)Following
the Company’s initial registration of Common Stock under Section 12 of the Securities Exchange Act of 1934, as amended, unless
the Board determines otherwise, the Committee will consist of two or more directors appointed by the Board, all of whom will qualify
as “non-employee directors” as defined in Rule 16b-3 and as “outside directors” as defined in regulations
adopted under Section 162(m) of the Code, as such terms may be amended from time to time, and its size and members will otherwise
satisfy applicable requirements of any exchange or market system upon which shares of Common Stock are listed or admitted to trading.
Appointment of Committee members will be effective upon acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee will be filled by the Board.

 

(b)Unless
the administration of the Plan has been expressly assumed by the Board pursuant to a resolution of the Board, the Committee has
the full authority and discretion to administer the Plan and to take any action that is necessary or advisable in connection with
the administration of the Plan, including without limitation the authority and discretion to interpret and construe any provision
of the Plan or of any agreement, notification or document evidencing the grant of a Stock Option, and to determine whether a Participant’s
termination of employment resulted from discharge for cause or any other reason. The interpretation and construction by the Committee
of any such provision and any determination by the Committee pursuant to any provision of the Plan or of any such agreement, notification
or document will be final and conclusive. No member of the Committee will be liable for any such action or determination made in
good faith.

 

    	- 8 -

    	 

    
 

(c)The
Committee will act by a majority of the votes of its members in office and the Committee may act either by vote at a meeting or
by a memorandum or other written instrument signed by directors constituting a voting majority of the Committee.

 

(d)If
the administration of the Plan is assumed by the Board pursuant to Section 10(b), the Board will have the same authority, power,
duties, responsibilities and discretion given to the Committee under the terms of the Plan.

 

11.Other
Provisions.

 

(a)The
Plan may be amended from time to time by the Committee or the Board but may not be amended without further approval by the stockholders
of the Company if such amendment would result in the Plan no longer satisfying any applicable requirements of the New York Stock
Exchange (or any other exchange or market system upon which shares of Common Stock are listed or quoted or admitted to trading),
Rule 16b-3 or Section 162(m) of the Code.

 

(b)Neither
the Committee nor the Board will authorize the amendment of any outstanding Stock Option to reduce the Option Price without the
further approval of each class of stockholders of the Company. Furthermore, no Stock Option will be cancelled and replaced with
Stock Options having a lower Option Price without further approval of each class of the stockholders of the Company. This Paragraph
11(b) is intended to prohibit the repricing of “underwater” Stock Options and will not be construed to prohibit the
adjustments provided for in Paragraph 7.

 

(c)The
Committee may also permit Participants to elect to defer the issuance of Common Stock under the Plan pursuant to such rules, procedures
or programs as it may establish for purposes of the Plan. The Committee also may provide that deferred issuances include the payment
or crediting of dividend equivalents or interest on the deferral amounts.

 

(d)The
Plan will terminate automatically 10 years after its adoption by the Board and may be terminated at any earlier time by the majority
approval of the Board. The termination of the Plan will not adversely affect the terms of any outstanding Stock Option.

 

(e)The
Plan does not confer upon any Participant any right with respect to continuance of employment or other service with the Company
or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate
such Participant’s employment or other service at any time.

 

    	- 9 -

    	 

    
 

(f)If
the Committee determines, with the advice of legal counsel, that any provision of the Plan would prevent the payment of any Stock
Option intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Code from so qualifying,
such Plan provision will be invalid and cease to have any effect without affecting the validity or effectiveness of any other provision
of the Plan.

 

(g)The
Plan, all awards and all actions taken under the Plan and the awards will be governed in all respects in accordance with the laws
of the State of Delaware, including without limitation, the Delaware statute of limitations, but without giving effect to the principles
of conflicts of laws of such State.

 

[Signature Page Follows]

 

    	- 10 -

    	 

    
 

As adopted by the Board and Company’s
stockholders as of the date first set forth above.

 

 

 

	 	HOMEOWNERS OF AMERICA HOLDING CORPORATION
	 	 
	 	 	By:	 
	 	 	 	Spencer W. Tucker
	 	 	 	President

 

 

[Signature
Page To The Management Incentive Plan]

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