Company: MHLA
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001412100-25-000011
Chunk: 106

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-10
Form: 10-K
Item: Item 5
Chunk 106
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 represent tax withholding in respect of tax obligations on the vesting of both non-performance-based and discretionary performance-based restricted shares. 

Combination Agreement with Kestrel Group

In connection with the transaction, each issued and outstanding common share of Maiden, par value $0.01 per share (each, a “Maiden Share”), other than any Maiden Share that is subject to any Maiden Award (as defined below), will be automatically canceled and converted into and, upon the completion of the transaction (the “Closing”) will thereafter represent the right to receive one share of Bermuda NewCo. In addition, as consideration for the Kestrel Contribution (as defined in the Combination Agreement), the Kestrel Equityholders (as defined in the Combination Agreement), at the Closing, will receive an aggregate of $40.0 million in cash and 55 million shares of Bermuda NewCo. In addition, the Kestrel Equityholders will be entitled to receive in contingent consideration up to the lesser of (x) 55 million shares of Bermuda NewCo and (y) an aggregate number of Bermuda NewCo shares equal to $45.0 million divided by certain volume weighted average prices of such shares (as calculated pursuant to the terms of the Combination Agreement), which will be payable upon the achievement of certain EBITDA milestones by the businesses that Kestrel and its subsidiaries conducted as of immediately prior to the Closing, and any extensions of such businesses or related or ancillary businesses existing thereafter, subject to other terms and conditions as set forth in the Combination Agreement. 

In connection with the transaction, former Maiden shareholders and former Kestrel Equityholders are expected to own approximately 64.8% and 35.2% of Bermuda NewCo, respectively, at the Closing (including Maiden restricted shares outstanding, but excluding shares of Bermuda NewCo that will be owned by Maiden Reinsurance and the potential contingent consideration payable to Kestrel Equityholders). Upon the completion of the transaction, (i) each outstanding option to purchase Maiden Shares (each, a “Maiden Option”) will be converted into an option to purchase Bermuda NewCo shares, on substantially the same terms and conditions, including vesting schedule and per share exercise price, as applied to such Maiden Option immediately prior to the effective time of the First Merger (as defined in the Combination Agreement), and (ii) each outstanding Maiden Share that is unvested and/or subject to a risk of forfeiture (each, a “Maiden Restricted Share,” and together with the Maiden Options,