Document:

EXHIBIT
4.2

THIS
PURCHASE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS PURCHASE WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR
SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES
IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND
AN OPINION SATISFACTORY TO THE COMPANY TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.

COMMON STOCK PURCHASE WARRANT

For the Purchase of 1,500,000 Shares
of Common Stock

of

1347 PROPERTY INSURANCE HOLDINGS, INC.

1.                 
Purchase Warrant. THIS CERTIFIES THAT, in consideration of the voluntary termination by 1347 Advisors LLC, a Delaware
limited liability company (the “Holder”), of the Management Services Agreement, dated February 11, 2014, by
and between 1347 Property Insurance Holdings, Inc., a Delaware corporation (the “Company”) and the Holder pursuant
to the Agreement to Buyout and Release, dated as of February 24, 2015, by and between the Company and the Holder, and for other
good and valuable consideration, Holder, as registered owner of this Purchase Warrant, is entitled, at any time or from time to
time from February 24, 2015 (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, February 24,
2022 (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part,
up to 1,500,000 shares of common stock of the Company, par value $0.001 per share (the “Shares”), subject to
the limitations as provided in Section 2.2 hereof and adjustment as provided in Section 5 hereof. If the Expiration Date is a day
on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding
day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees
not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $15.00 per
Share; provided, however, that upon the occurrence of any of the events specified in Section 5 hereof, the rights
granted by this Purchase Warrant, including the Exercise Price and the number of Shares to be received upon such exercise, shall
be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price per Share
or the adjusted exercise price per Share, depending on the context.

2.                 
Exercise.

2.1             
Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed
and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares
being purchased payable in cash by wire transfer of immediately available funds to an account designated by the

    	

    	 

    

 

Company or by certified
check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern
time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

2.2             
Limitations on the Number of Shares Issuable.

2.2.1             
Notwithstanding anything herein to the contrary, the Company shall not issue to Holder any Shares issuable upon exercise
of this Warrant (the “Warrant Shares”) to the extent that after giving effect to such issuance of Warrant Shares,
the Holder (together with Holder’s affiliates) would (a) beneficially own in excess of 19.9% of the number of shares of the
Company’s common stock outstanding immediately after giving effect to such issuance (the “Maximum Aggregate Ownership
Amount”) or (b) control in excess of 19.9% of the total voting power of the Company’s securities outstanding immediately
after giving effect to such issuance that are entitled to vote on a matter being voted on by holders of the Company’s common
stock (the “Maximum Aggregate Voting Amount”), unless and until the Company obtains stockholder approval permitting
such issuance in accordance with applicable NASDAQ Stock Market rules (“Stockholder Approval”).

2.2.2             
For purposes of this Section 2.2, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

2.2.3             
For purposes of this Section 2.2, in determining the number of outstanding shares of the Company’s common stock, Holder
may rely on the number of outstanding shares of the Company’s common stock as reflected in (i) the Company’s most recent
Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as the case may be, filed with the Securities and Exchange Commission,
(ii) a more recent public announcement by the Company, or (iii) any other written notice by the Company or the Company’s
transfer agent setting forth the number of shares of the Company’s common stock outstanding. Upon the written or oral request
of Holder, the Company shall within five business days confirm orally and in writing to Holder the number of shares of the Company’s
common stock then outstanding.

2.2.4             
If on any attempted exercise of this Warrant, the issuance of Warrant Shares would cause Holder to exceed the Maximum Aggregate
Ownership Amount or the Maximum Aggregate Voting Amount, and the Company shall not have previously obtained Stockholder Approval
at the time of exercise, then the Company shall issue to Holder such number of Warrant Shares as may be issued below the Maximum
Aggregate Ownership Amount or Maximum Aggregate Voting Amount, as the case may be.

2.2.5             
The Company shall, at the next annual meeting of stockholders of the Company (the “Stockholder Meeting”),
seek approval from the Company’s stockholders of a proposal approving the issuance of the Warrant Shares in excess of the
Maximum Aggregate Ownership Amount and the Maximum Aggregate Voting Amount upon exercise of the Warrant in accordance with applicable
law and the rules and regulations of the NASDAQ Stock Market.

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2.2.6             
If stockholder approval of the matters set forth in Section 2.2.5 hereof is not obtained at the Stockholder Meeting, the
Company shall cause the Registration Rights Agreement, dated February 28, 2014, by and between Kingsway America Inc. and the Company
(the “Registration Rights Agreement”) to be amended to provide that (i) Holder is granted a demand registration
right thereunder with respect to the resale by Holder of the Warrants, which demand registration may, at the option of Holder,
be for the Company to file a shelf registration statement that permits the resale of the Warrants from time to time thereunder,
(ii) the Company is required to include the Warrants in any shelf registration statement that the Company files after the date
of such amendment and (iii) if Holder exercises its demand registration right under such amended Registration Rights Agreement
with respect to the Warrants, Holder shall pay all expenses (including the Company’s expenses) relating to the registration
of such Warrants.

2.3             
Agreement to Comply with the Securities Act; Legend. The Holder agrees to comply in all respects with the provisions
of this Section 2.3 and the restrictive legend requirements set forth on the face of this Purchase Warrant and further agrees that
such Holder shall not offer, sell or otherwise dispose of this Purchase Warrant or any Shares to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Securities Act of 1933, as amended (the “Securities
Act”). This Purchase Warrant and all Shares issued upon exercise of this Purchase Warrant (unless registered under the
Securities Act) shall be stamped or imprinted with a legend in substantially the following form:

“THIS
PURCHASE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS PURCHASE WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR
SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES
IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND
AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

3.                 
Transfer.

3.1             
General Restrictions. The Holder may transfer or assign this Purchase Warrant to others subject to compliance with
or exemptions from applicable securities laws and compliance with this Section 3.1 and Section 3.2. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with
the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five
(5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant
or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number
of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

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3.2             
Restrictions Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred
unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant
to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established
to the reasonable satisfaction of the Company or (ii) a registration statement or a post-effective amendment to the registration
statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities
and Exchange Commission and compliance with applicable state securities law has been established.

4.                 
New Purchase Warrant to be Issued.

4.1             
Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised
or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase
Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise
Price and/or transfer tax due at the time of exercise or assignment, the Company shall cause to be delivered to the Holder without
charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder
to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

4.2             
Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation
of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and
deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such
loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

5.                 
Adjustments.

5.1             
Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the
Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

5.1.1             
Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 5.3 below, the number
of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then,
on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding
Shares, and the Exercise Price shall be proportionately decreased.

5.1.2             
Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 5.3 below, the number
of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then,
on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in
outstanding Shares, and the Exercise Price shall be proportionately increased.

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5.1.3             
Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
Shares other than a change covered by Section 5.1.1 or 5.1.2 hereof or that solely affects the par value of such Shares, or in
the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than
a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result
in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation
or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of
this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately
prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such
sale or transfer, by a holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately
prior to such event; and if any reclassification also results in a change in Shares covered by Section 5.1.1 or 5.1.2, then such
adjustment shall be made pursuant to Sections 5.1.1, 5.1.2 and this Section 5.1.3. The provisions of this Section 5.1.3 shall similarly
apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other
transfers.

5.1.4             
Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant
to this Section 5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares
as are stated in the Purchase Warrant initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring
after the Commencement Date or the computation thereof.

5.2             
Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation
of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does
not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share
reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder
of this Purchase Warrant shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon
exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such
consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such Purchase
Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer.
Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this
Section 5. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations.

5.3             
Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions
of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional
interests, it being the intent of the

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parties that all fractional
interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or
other securities, properties or rights.

6.                 
Reservation. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the
purpose of issuance upon exercise of this Purchase Warrant, such number of Shares or other securities, properties or rights as
shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of this Purchase Warrant and
payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder.

7.                 
Certain Notice Requirements.

7.1             
Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right
to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights
whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of this Purchase Warrant, any of the
events described in Section 7.2 shall occur, then the Company shall give written notice of such event at least fifteen days prior
to the date fixed as a record date or the date of closing the transfer books, as the case may be, for the determination of the
shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be.

7.2             
Events Requiring Notice. The Company shall be required to give the notice described in this Section 7 upon the occurrence
of one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of
entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable
otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books
of the Company, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company
or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe
therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share
reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed. The
Holder shall keep the information provided in such notices confidential unless and until such information is disclosed publicly
by the Company.

7.3             
Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise
Price pursuant to Section 5 hereof, send notice to the Holder of such event and change (“Price Notice”). The
Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true
and accurate by the Company’s Chief Financial Officer.

7.4             
Notices. All notices and other communications provided for in this Purchase Warrant shall be given in writing, addressed
to the recipient as follows (or at such other address that shall be specified in a notice given in accordance with this Section
7.4):

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	 	If to Holder:	 	1347 Advisors LLC
	 	 	 	150 Pierce Road, 6th Floor
	 	 	 	Itasca, IL  60143
	 	 	 	Fax No.:  847-952-7079
	 	 	 	Attention:  President
	 	 	 	 	 
	 	If to the Company:	 	1347 Property Insurance Holdings, Inc.
	 	 	 	1511 N. Westshore Blvd., Suite 870
	 	 	 	Tampa, FL  33607
	 	 	 	Fax No.:  813-579-6237
	 	 	 	Attention:  President

 

All notices and other communications shall
be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered by mail,
five days after being deposited in the mail (by registered or certified mail, postage prepaid), and (iii) if delivered by facsimile,
when received.

 

8.                 
Miscellaneous.

8.1             
Amendments. No amendment or modification of this Purchase Warrant shall be valid unless made in writing and signed
by each of the Company and Holder.

8.2             
Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any
way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

8.3             
Entire Agreement. This Purchase Warrant is the entire agreement of the parties hereto relating to the subject matter
hereof, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Purchase
Warrant which are not set forth herein. This Purchase Warrant replaces and supersedes any and all prior discussions and agreements
that the parties hereto have had and have entered into with respect to the subject matter hereof.

8.4             
Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon the Holder and
the Company and their permitted assignees, respective successors, legal representative and assigns, and no other individual or
entity or other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of
or by virtue of this Purchase Warrant or any provisions herein contained.

8.5             
Governing Law. This Purchase Warrant shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of Delaware without giving effect to any choice of conflict law provision or rule (whether of the State
of Delaware or any other jurisdiction).

8.6             
EACH PARTY HERETO, ON BEHALF OF ITSELF AND ITS AFFILIATES AND SUBSIDIARIES, TO THE FULLEST EXTENT PERMITTED BY LAW, KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN

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ANY ACTION OR OTHER
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE WAIVER APPLIES TO ANY ACTION OR LEGAL PROCEEDING, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. THE PARTIES HERETO ACKNOWLEDGE THIS WAIVER OF TRIAL BY JURY BY PLACING THEIR INITIALS HERE:

	 	WAH	 	 	 	 	DNR	 	 
	 	Holder	 	 	 	 	The Company	 

8.7             
Counterparts; Facsimiles. This Purchase Warrant may be executed in counterparts, each of which may be executed and
delivered via facsimile or portable document format (.PDF) electronic delivery with the same validity as if it were an ink-signed
document and each of which shall be effective and binding on the parties as of the date first set forth above. Each such counterpart
shall be deemed an original and, when taken together with other signed counterparts, shall constitute one and the same Purchase
Warrant.

8.8             
Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase
Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase
Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this
Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant
shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement
of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be
a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

[Signature Page Follows]

 

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IN WITNESS
WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the  24th day of
February, 2015.

1347 PROPERTY INSURANCE HOLDINGS, INC.

By:/s/ Douglas N. Raucy

Name:Douglas N. Raucy

Title:President and Chief Executive Officer

 

Accepted and agreed:

 

1347 ADVISORS LLC

By: /s/ William A. Hickey, Jr.

Name:William A. Hickey, Jr.

Title: Managing Director

 

 

 

 

[Signature Page
to Common Stock Purchase Warrant]

    	 

    	 

    

[Form to be used to exercise Purchase
Warrant]

Date: __________, 20___

The undersigned hereby
elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.001 per share (the “Shares”),
of 1347 Property Insurance Holdings, Inc., a Delaware corporation (the “Company”), and hereby makes payment
of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which
this Purchase Warrant is exercised in accordance with the instructions given above and, if applicable, a new Purchase Warrant representing
the number of Shares for which this Purchase Warrant has not been exercised.

	Signature 
	Signature Guaranteed 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	 

    	 

    

[Form to be used to assign Purchase
Warrant]

ASSIGNMENT

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.001 per share, of 1347 Property
Insurance Holdings, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does
hereby authorize the Company to transfer such right on the books of the Company.

	Dated:  __________, 20__
	Signature 
	Signature Guaranteed 

NOTICE: The signature to this form must
correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on
a registered national securities exchange.EXHIBIT 10.1

Agreement to Buyout and Release

This Agreement to Buyout
and Release (this “Agreement”) is entered into between 1347 Advisors LLC, a Delaware limited liability company
(“1347 Advisors”), and 1347 Property Insurance Holdings, Inc., a Delaware corporation (“PIH”),
and is effective as February 24, 2015. Each of 1347 Advisors and PIH may be referred to individually as a “Party”
and collectively as the “Parties”. Unless otherwise stated, all capitalized terms used in this Agreement have
the meanings set forth in Section 12 of this Agreement.

Recitals

WHEREAS, PIH and
1347 Advisors previously entered into a Management Services Agreement dated February 11, 2014 (the “MSA”), pursuant
to which 1347 Advisors agreed to provide consultation in corporate development initiatives and other services to PIH;

WHEREAS, PIH has
determined that it would be in its best interests to terminate the MSA and 1347 Advisors has agreed to voluntarily terminate the
MSA (the “Transaction”); and

WHEREAS, as a result
of the foregoing, PIH and 1347 Advisors desire to enter into this Agreement to set forth in writing the terms and conditions of
the Transaction.

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

1.                 
Termination of MSA. Subject to the terms and conditions of this Agreement, each of PIH and 1347 Advisors hereby agrees
that the MSA shall be terminated and cancelled as of the Closing Date, other than Section 7 of the MSA, which shall survive indefinitely.
The Parties also agree that the Consulting Fee payable to 1347 Advisors under the MSA is due to 1347 Advisors and shall be paid
through January 31, 2015 (the “January Fee”). Each of PIH and 1347 Advisors hereby waives any and all notice
obligations to each other set forth in the MSA relating to the termination thereof.

2.                 
Consideration. In consideration of 1347 Advisors agreeing to voluntarily terminate the MSA, PIH hereby agrees that
(A) at the Closing, it shall (i) pay to 1347 Advisors the Cash Payment, (ii) execute and deliver the Performance Shares Grant Agreement
to 1347 Advisors (or its designee), (iii) issue to 1347 Advisors (or its designee) 120,000 shares of Series B Preferred Shares
of PIH (the “Series B Preferred Shares”) and (iv) execute and deliver the Warrant to 1347 Advisors (or its designee)
and (B) within three (3) business days of receipt from Louisiana Citizens of accurate data regarding January written premium transactions
sufficient to calculate the January Fee, pay to 1347 Advisors the January Fee.

3.                 
Time and Place of Closing; Closing and Post-Closing Deliveries.

a.                  
The Transaction shall be deemed to have been consummated (the “Closing”) at 8:00 a.m. Central Time on
the date hereof (the “Closing Date”) electronically by mutual exchange of facsimile or portable document format
(.PDF)

    	

    	 

    

 

signatures,
or at such other date or time as may be agreed upon from time to time in writing by PIH and 1347 Advisors.

b.                 
At the Closing, (i) PIH shall (x) pay the Cash Payment to 1347 Advisors by wire transfer of immediately available funds,
(y) issue the Series B Preferred Shares to 1347 Advisors (or its designee) and (z) execute and deliver to 1347 Advisors (or its
designee) the Performance Shares Grant Agreement and the Warrant and (ii) 1347 Advisors shall execute and deliver to PIH the Performance
Shares Grant Agreement and the Warrant and return all Proprietary Information (as defined in the MSA) pursuant to the terms of
Section 7 of the MSA. Within three (3) business days of receipt from Louisiana Citizens of accurate data regarding January written
premium transactions sufficient to calculate the January Fee, PIH shall pay the January Fee to 1347 Advisors by wire transfer of
immediately available funds.

4.                 
Release. In consideration of the covenants, agreements and undertakings of the Parties under this Agreement, effective
upon the satisfaction of PIH’s obligations under Section 2 of this Agreement, each Party, on behalf of itself and
its respective present and former parents, subsidiaries, affiliates, officers, directors, shareholders, members, successors and
assigns (collectively, “Releasors”) hereby releases, waives and forever discharges the other Party and its respective
present and former, direct and indirect, parents, subsidiaries, affiliates, employees, officers, directors, shareholders, members,
agents, representatives, permitted successors and permitted assigns (collectively, “Releasees”) of and from
any and all actions, causes of action, suits, losses, liabilities, rights, debts, dues, sums of money, accounts, reckonings, obligations,
costs, expenses, liens, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses,
damages, judgments, extents, executions, claims, and demands, of every kind and nature whatsoever, whether now known or unknown,
foreseen or unforeseen, matured or unmatured, suspected or unsuspected, in law, admiralty or equity (collectively, “Claims”),
which any of such Releasors ever had, now have, or hereafter can, shall, or may have against any of such Releasees for, upon, or
by reason of any matter, cause, or thing whatsoever from the beginning of time through the date of this Agreement arising out of
or relating to the MSA, except for any Claims relating to rights and obligations preserved by, created by or otherwise arising
out of this Agreement (including the rights and obligations under Section 7 of the MSA).

5.                 
Representations and Warranties.  

a.                  
Each of PIH and 1347 Advisors hereby represents and warrants to the other Party that:

		(i)	such Party is a corporation or limited liability company (as the case may be) duly organized, validly existing and in good
standing under the laws of the State of Delaware;

		(ii)	such Party has the full right, corporate or limited liability company power (as the case may be)
and authority to enter into this Agreement, the Performance Shares Grant Agreement and the Warrant (as applicable) and to
perform its obligations hereunder and thereunder;

    	-2 -

    	 

    

 

 

		(iii)	the execution of this Agreement, the Performance Shares Grant Agreement and the Warrant by the
individual whose signature is set forth at the end of such agreements on behalf of such Party (as applicable), and the delivery
of such agreements by such Party (as applicable), have been duly authorized by all necessary corporate or limited liability company
action (as the case may be) on the part of such Party;

		(iv)	this Agreement, the Performance Shares Grant Agreement and the Warrant have been executed and delivered
by such Party (as applicable) and (assuming due authorization, execution and delivery by the other Party) constitute the legal,
valid and binding obligation of such Party, enforceable against such Party in accordance with its terms, except as may be limited
by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting
creditors' rights generally or the effect of general principles of equity; and

		(v)	such Party (i) knows of no Claims against the other Party relating to or arising out of the MSA
that are not covered by the release contained in Section 4 of this Agreement and (ii) has neither assigned nor transferred
any of the Claims released herein to any Person and no Person has subrogated to or has any interest or rights in any Claims.

b.                 
PIH hereby represents and warrants to 1347 Advisors that:

		(i)	the execution of the Series B Certificate of Designation and the issuance of the Series B Preferred
Shares, the Performance Shares, the Warrant and the Warrant Shares (collectively, the “Securities”) have been
duly authorized by all necessary corporate action on the part of PIH;

		(ii)	neither the issuance of the Securities nor the execution of the Series B Certificate of Designation
will conflict with or result in a breach by PIH of the terms, conditions or provisions of any agreement, instrument, order, judgment
or decree to which PIH is subject; and

		(iii)	upon issuance in accordance with the terms hereof, the Warrant or the Performance Shares Grant
Agreement (as applicable), the Securities will be duly and validly issued, fully paid and nonassessable, and 1347 Advisors will
have good title to the Securities, free and clear of all liens, claims and encumbrances of any kind, other than (i) transfer restrictions
under federal and state securities laws, (ii) transfer restrictions set forth in the Warrant and the Performance Shares Grant Agreement
and (iii) liens, claims or encumbrances imposed due to the actions of 1347 Advisors.

c.                  
1347 Advisors hereby represents and warrants to PIH that:

		(i)	1347 Advisors is acquiring the Securities for 1347 Advisors’ own account, for investment
purposes only and not with a view towards, or for resale in connection with, any public sale or distribution thereof.

    	-3 -

    	 

    

 

 

		(ii)	1347 Advisors is an “accredited investor” as such term is defined in Rule 501(a)(3)
of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

		(iii)	1347 Advisors understands that the Securities are being offered and will be sold to it in reliance
on specific exemptions from the registration requirements of the United States federal and state securities laws and that PIH is
relying upon the truth and accuracy of, and 1347 Advisors’ compliance with, the representations and warranties of 1347 Advisors
set forth herein in order to determine the availability of such exemptions and the eligibility of 1347 Advisors to acquire such
Securities.

		(iv)	1347 Advisors did not decide to enter into this Agreement as a result of any general solicitation
or general advertising within the meaning of Rule 502(c) promulgated under the Securities Act.

		(v)	1347 Advisors has been furnished with all materials relating to the business, finances and operations
of PIH and materials relating to the offer and sale of the Securities which have been requested by 1347 Advisors. 1347 Advisors
has been afforded the opportunity to ask questions of the executive officers and directors of PIH. 1347 Advisors understands that
its investment in the Securities involves a high degree of risk and it has sought such accounting, legal and tax advice as it has
considered necessary to make an informed investment decision with respect to the acquisition of the Securities.

		(vi)	1347 Advisors understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities by 1347 Advisors nor have such authorities passed upon or endorsed the merits of the offering
of the Securities.

		(vii)	1347 Advisors understands that: (a) the Securities have not been registered under the Securities
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (1) subsequently registered
thereunder or (2) sold in reliance on an exemption therefrom; (b) the Securities will not be registered under the Securities Act
or any state securities laws; and (c) neither PIH nor any other person is under any obligation to register the Securities under
the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

		(viii)	1347 Advisors has such knowledge and experience in financial and business matters, knows of the
high degree of risk associated with investments in the securities of companies in the development stage such as PIH, is capable
of evaluating the merits and risks of an investment in

    	-4 -

    	 

    

 

the Securities
and is able to bear the economic risk of an investment in the Securities in the amount contemplated hereunder for an indefinite
period of time. 1347 Advisors has adequate means of providing for its current financial needs and contingencies and will have no
current or anticipated future needs for liquidity which would be jeopardized by the investment in the Securities. 1347 Advisors
can afford a complete loss of its investments in the Securities.

d.                 
All of the representations and warranties contained herein shall survive the Closing Date.

6.                 
Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the internal
laws of the State of Delaware without giving effect to any choice of conflict law provision or rule (whether of the State of Delaware
or any other jurisdiction).

7.                 
EACH PARTY, ON BEHALF OF ITSELF AND ITS AFFILIATES AND SUBSIDIARIES, TO THE FULLEST EXTENT PERMITTED BY LAW, KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR OTHER LEGAL PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT. THE WAIVER APPLIES TO ANY ACTION OR LEGAL PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES
ACKNOWLEDGE THIS WAIVER OF TRIAL BY JURY BY PLACING THEIR INITIALS HERE:

	 	WAH	 	 	 	 	DNR	 
	 	1347 Advisors	 	 	 	 	PIH	 

8.                 
Notices. All notices and other communications provided for in this Agreement shall be given in writing, addressed
to the recipient Party as follows (or at such other address that shall be specified in a notice given in accordance with this Section
8):

	 	If to 1347 Advisors:	 	1347 Advisors LLC
	 	 	 	150 Pierce Road, 6th Floor
	 	 	 	Itasca, IL  60143
	 	 	 	Fax No.:  847-952-7079
	 	 	 	Attention:  President
	 	If to PIH:	 	1347 Property Insurance Holdings, Inc.
	 	 	 	1511 N. Westshore Blvd., Suite 870
	 	 	 	Tampa, FL  33607
	 	 	 	Fax No.:  813-579-6237
	 	 	 	Attention:  President

All notices and other communications
shall be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered
by mail, five days after being deposited in the mail (by registered or certified mail, postage prepaid), and (iii) if delivered
by facsimile, when received.

    	-5 -

    	 

    

 

 

9.                 
Successors and Assigns. This Agreement and the rights and obligations hereunder may not be assigned or delegated
by a Party, in whole or part, whether voluntarily, by operation of law, change of control or otherwise, without the prior written
consent of the other Party. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties
and their respective successors and permitted assigns.

10.             
Entire Agreement; Severability. This Agreement is the entire agreement of the Parties relating to the subject matter
hereof, and the Parties have made no agreements, representations or warranties relating to the subject matter of this Agreement
which are not set forth herein. This Agreement replaces and supersedes any and all prior discussions and agreements that the Parties
have had and have entered into with respect to the subject matter hereof. No amendment, waiver or modification of this Agreement
shall be valid unless made in writing and signed by each of the Parties. If any provision of this Agreement shall, to any
extent, now or hereafter be or become invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and
every other provision of this Agreement shall be valid and enforceable, to the fullest extent permitted by law.

11.             
Counterparts; Facsimiles. This Agreement may be executed in counterparts, each of which may be executed and delivered
via facsimile or portable document format (.PDF) electronic delivery with the same validity as if it were an ink-signed document
and each of which shall be effective and binding on the parties as of the date first set forth above. Each such counterpart shall
be deemed an original and, when taken together with other signed counterparts, shall constitute one and the same Agreement.

12.             
Definitions. Except as otherwise noted, for all purposes of this Agreement, the following terms shall have the respective
meanings set forth in this Section 12, which meanings shall apply equally to the singular and plural forms of the terms
so defined:

a.                  
“1347 Advisors” has the meaning set forth in the preamble of this Agreement.

b.                 
“Affiliate” shall mean a Person that directly, or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, a specified Person. For the purpose of this definition, the term “control”
shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract or otherwise.

c.                  
“Agreement” has the meaning set forth in the preamble of this Agreement.

d.                 
“Cash Payment” means Two Million Dollars ($2,000,000).

e.                  
“Claims” has the meaning set forth in Section 4 of this Agreement.

f.                  
“Closing” has the meaning set forth in Section 3.a. of this Agreement.

    	-6 -

    	 

    

 

 

g.                 
“Closing Date” has the meaning set forth in Section 3.a. of this Agreement.

h.                 
“January Fee” has the meaning set forth in Section 1 of this Agreement.

i.                   
“MSA” has the meaning set forth in the recitals of this Agreement.

j.                   
“Party” and “Parties” have the meanings set forth in the preamble of this Agreement.

k.                 
“Performance Shares” means the 100,000 shares of common stock of PIH issuable under the Performance Shares
Grant Agreement.

l.                   
“Performance Shares Grant Agreement” means the Performance Shares Grant Agreement between PIH and 1347
Advisors (or its designee) in the form attached hereto as Exhibit A, pursuant to which PIH will grant to 1347 Advisors (or
its designee) 100,000 shares of common stock of PIH once the price of the common stock of PIH reaches $10.00 per share, subject
to the terms and conditions set forth therein.

m.               
“Person” shall mean any individual, general partnership, government entity, limited partnership, limited
liability company, corporation, joint venture, trust, business trust, cooperative, association or similar organization, and the
heirs, executors, administrators, legal representatives, successors, and assigns of such Person where the context so requires.

n.                 
“PIH” has the meaning set forth in the preamble of this Agreement.

o.                 
“Releasees” has the meaning set forth in Section 4 of this Agreement.

p.                 
“Releasors” has the meaning set forth in Section 4 of this Agreement.

q.                 
“Securities” has the meaning set forth in Section 5.b.(i) of this Agreement.

r.                   
“Securities Act” has the meaning set forth in Section 5.a.(ii) of this Agreement.

s.                  
“Series B Certificate of Designation” means the Certificate of Designation of Series B Preferred Shares
of PIH in the form attached hereto as Exhibit B.

t.                   
“Series B Preferred Shares” has the meaning set forth in Section 2 of this Agreement.

u.                 
“Transaction” has the meaning set forth in the preamble of this Agreement.

    	-7 -

    	 

    

 

 

v.                 
“Warrant” means the Common Stock Purchase Warrant issued by PIH to 1347 Advisors (or its designee) in
the form attached hereto as Exhibit C, pursuant to which PIH will issue to 1347 Advisors (or its designee) warrants to purchase
1,500,000 shares of common stock of PIH subject to the terms and conditions set forth therein.

w.               
“Warrant Shares” means the 1,500,000 shares of common stock of PIH available for purchase upon exercise
of the Warrant.

[Remainder
of Page Intentionally Left Blank]

    	-8 -

    	 

    

IN WITNESS WHEREOF,
the Parties have executed this Agreement to be effective as of the date first set forth above.

 

	1347 Advisors LLC	1347 Property Insurance Holdings, Inc.
	
         

         

        By: /s/ William A. Hickey, Jr.

        Print Name:William A. Hickey, Jr.

        Title:Managing Director
	
         

         

        By: /s/ Douglas N. Raucy

        Print Name:Douglas N. Raucy 

        Title: President and Chief Executive Officer 

	 	 
	 	 

 

[Signature Page to Agreement to Buyout and Release]

    	

    	 

    

 

Exhibit A

Form of Performance Shares Grant Agreement

PERFORMANCE SHARES GRANT AGREEMENT

This Performance
Shares Grant Agreement (this “Agreement”), dated February 24, 2015, is by and between 1347 Property Insurance
Holdings, Inc., a Delaware corporation (the “Company”), and 1347 Advisors LLC, a Delaware limited liability
company (“1347 Advisors”). Each of 1347 Advisors and the Company may be referred to individually as a
“Party” and collectively as the “Parties”.

1.                 
Grant. For good and valuable consideration, including but not limited to the consideration described in Section
2 hereof, the Company hereby agrees to grant 1347 Advisors an aggregate of 100,000 shares (the “Shares”) of
common stock of the Company, par value $0.001 (the “Common Stock”), subject to the terms, conditions
and restrictions set forth in this Agreement.

2.                 
Consideration. In consideration for the Shares being granted under this Agreement, simultaneous with the execution
hereof, 1347 Advisors is entering into the Agreement to Buyout and Release, dated as of the date hereof, by and between the Company
and 1347 Advisors, pursuant to which 1347 Advisors will voluntarily terminate the Management Services Agreement, dated February
11, 2014, by and between the Company and 1347 Advisors.

3.                 
Award Schedule. 1347 Advisors shall be eligible to receive the Shares at any time that the last sales price
of the Common Stock on the NASDAQ or any other national exchange on which the Common Stock is traded equals or exceeds $10.00 per
share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days
within any 30-trading day period (the “Milestone”).

4.                 
Dividends. If the Company shall pay a cash dividend on its Common Stock, 1347 Advisors shall not be entitled
to any cash dividend equivalent payments in respect of or corresponding to any Shares which have not yet been granted to 1347 Advisors,
provided, however, that 1347 Advisors’ right to any cash dividend equivalent payments shall begin as soon as the Milestone
is achieved, whether or not the Shares are issued.

5.                 
Changes in Common Stock. In the event of any change in the number and kind of outstanding shares of Common
Stock by reason of any recapitalization, reorganization, merger, consolidation, stock dividend, stock split, reverse stock split,
or any extraordinary distribution or extraordinary dividend to holders of Common Stock (whether paid in cash or otherwise), the
Company shall make an appropriate adjustment in the number and terms of the Shares subject to this Agreement so that, after such
adjustment, the Shares shall represent a right to receive the same consideration (or if such consideration is not available, other
consideration of the same value) that 1347 Advisors would have received in connection with such recapitalization, reorganization,
merger, consolidation, stock split, extraordinary distribution or extraordinary dividend if 1347 Advisors had owned on the applicable
record date a number of shares of Common Stock equal to the number of Shares subject to this Agreement prior to such adjustment.

6.                 
General Restrictions. Notwithstanding anything in this Agreement to the contrary, the Company shall have no
obligation to issue or transfer the Shares as contemplated by this

    	 

    	 

    

 

Agreement unless and
until such issuance or transfer shall comply with all relevant provisions of law and the requirements of any stock exchange on
which the Common Stock is listed for trading.

7.                 
Issuance of Shares. Upon the achievement of the Milestone resulting in an award of the Shares hereunder, the
Company shall, as soon as reasonably practicable (and no later than 5 business days following the date the Milestone was achieved),
issue the Shares to 1347 Advisors.

8.                 
Agreement to Comply with the Securities Act; Legend. 1347 Advisors agrees to comply in all respects with the
provisions of this Section 8 and Section 9 and further agrees that 1347 Advisors shall not offer, sell or otherwise dispose of
any Shares to be issued upon achievement of the Milestone except under circumstances that will not result in a violation of the
Securities Act of 1933, as amended (the “Securities Act”). All Shares issued upon achievement of the
Milestone (unless registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the following
form:

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED
UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS
UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND AN OPINION SATISFACTORY TO THE CORPORATION
TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

9.                 
Restrictions Imposed by the Securities Act. The Shares shall not be transferred unless and until: (i) the
Company has received the opinion of counsel for 1347 Advisors that the securities may be transferred pursuant to an exemption from
registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable
satisfaction of the Company or (ii) a registration statement or a post-effective amendment to the registration statement relating
to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities and Exchange
Commission and compliance with applicable state securities law has been established.

10.             
Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of Delaware without giving effect to any choice of conflict law provision or rule (whether of the State
of Delaware or any other jurisdiction).

11.             
EACH PARTY, ON BEHALF OF ITSELF AND ITS AFFILIATES AND SUBSIDIARIES, TO THE FULLEST EXTENT PERMITTED BY LAW, KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN

    	 

    	 

    

 

ANY ACTION OR OTHER
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE WAIVER APPLIES TO ANY ACTION OR LEGAL PROCEEDING, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. THE PARTIES ACKNOWLEDGE THIS WAIVER OF TRIAL BY JURY BY PLACING THEIR INITIALS HERE:

	 	____________	 	 	 	 	___________	 
	 	1347 Advisors	 	 	 	 	The Company	 

12.             
Notices. All notices and other communications provided for in this Agreement shall be given in writing, addressed
to the recipient Party as follows (or at such other address that shall be specified in a notice given in accordance with this Section
12):

	 	If to 1347 Advisors:	 	1347 Advisors LLC
	 	 	 	150 Pierce Road, 6th Floor
	 	 	 	Itasca, IL  60143
	 	 	 	Fax No.:  847-952-7079
	 	 	 	Attention:  President
	 	 	 	 
	 	If to the Company:	 	1347 Property Insurance Holdings, Inc.
	 	 	 	1511 N. Westshore Blvd., Suite 870
	 	 	 	Tampa, FL  33607
	 	 	 	Fax No.: 813-579-6237  
	 	 	 	Attention:  President
	 	 	 	 

All notices and other communications
shall be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered
by mail, five days after being deposited in the mail (by registered or certified mail, postage prepaid), and (iii) if delivered
by facsimile, when received.

13.             
Successors and Assigns. This Agreement and the rights and obligations hereunder may not be assigned or delegated
by a Party, in whole or part, whether voluntarily, by operation of law, change of control or otherwise, without the prior written
consent of the other Party. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties
and their respective successors and permitted assigns.

14.             
Entire Agreement; Severability. This Agreement is the entire agreement of the Parties relating to the subject
matter hereof, and the Parties have made no agreements, representations or warranties relating to the subject matter of this Agreement
which are not set forth herein. This Agreement replaces and supersedes any and all prior discussions and agreements that the Parties
have had and have entered into with respect to the subject matter hereof. No amendment, waiver or modification of this Agreement
shall be valid unless made in writing and signed by each of the Parties.  If any provision of this Agreement shall, to any
extent, now or hereafter be or become invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and
every other provision of this Agreement shall be valid and enforceable, to the fullest extent permitted by law.

    	 

    	 

    

 

 

15.             
Counterparts; Facsimiles. This Agreement may be executed in counterparts, each of which may be executed and
delivered via facsimile or portable document format (.PDF) electronic delivery with the same validity as if it were an ink-signed
document and each of which shall be effective and binding on the parties as of the date first set forth above. Each such counterpart
shall be deemed an original and, when taken together with other signed counterparts, shall constitute one and the same Agreement.

16.             
Book Entry Delivery of Shares. Whenever reference in this Agreement is made to the issuance or delivery of
certificates representing one or more Shares, the Company may elect to issue or deliver such Shares in book entry form in lieu
of certificates.

[Signature page follows.]

    	 

    	 

    

IN WITNESS WHEREOF,
the parties hereto have executed this Performance Shares Grant Agreement on the date first written above.

	1347 PROPERTY INSURANCE HOLDINGS, INC.
	 	 
	 	 
	By:	 
	Name:	 
	Title:	 

 

	1347 ADVISORS LLC
	 	 
	 	 
	By:	 
	Name:	 
	Title:	 

 

    	

    	 

    

 

Exhibit B

Form of Series B Certificate of Designation

CERTIFICATE OF DESIGNATION OF SERIES
B PREFERRED SHARES OF 1347 PROPERTY INSURANCE HOLDINGS, INC.

Pursuant to Section
151 of the General Corporation Law of the State of Delaware, 1347 Property Insurance Holdings, Inc., a corporation organized and
existing under the General Corporation Law of the State of Delaware (the “Corporation”), in accordance with
the provisions of Section 103 thereof, does hereby submit the following:

WHEREAS, the Second
Amended and Restated Certificate of Incorporation of the Corporation (as may be further amended or amended and restated from time
to time, the “Certificate of Incorporation”) authorizes the issuance of up to one million (1,000,000) shares
of preferred stock, par value $25.00 per share, of the Corporation (“Preferred Stock”) in one or more series,
and expressly authorizes the Board of Directors of the Corporation (the “Board”), subject to limitations prescribed
by law, to provide, out of the unissued shares of Preferred Stock, for series of Preferred Stock, and, with respect to each such
series, to establish and fix the number of shares to be included in any series of Preferred Stock and the designation, rights,
preferences, powers, restrictions and limitations of the shares of such series;

WHEREAS, it is the
desire of the Board to establish and fix the number of shares to be included in a new series of Preferred Stock and the designation,
rights, preferences and limitations of the shares of such new series; and

WHEREAS, on January
16, 2014, the Board established and fixed the Series A Convertible Preferred Shares of the Corporation, which Series A Convertible
Preferred Shares were converted into shares of Common Stock and warrants to acquire shares of Common Stock at the time of the Company’s
initial public offering.

NOW, THEREFORE,
BE IT RESOLVED, that the Board does hereby provide for the issue of a series of Preferred Stock and does hereby in this Certificate
of Designation (the “Certificate of Designation”) establish and fix and herein state and express the designation,
rights, preferences, powers, restrictions and limitations of such series of Preferred Stock as follows:

Section 1.               
Designation. There shall be a series of Preferred Stock that shall be designated as “Series B Preferred Shares”
(the “Series B Preferred Shares”) and the number of Shares constituting such series shall be 120,000. The rights,
preferences, powers, restrictions and limitations of the Series B Preferred Shares shall be as set forth herein.

Section 2.               
Defined Terms. For purposes hereof, the following terms shall have the following meanings:

“Board” has the
meaning set forth in the Recitals.

“Certificate
of Designation” has the meaning set forth in the Recitals.

“Certificate
of Incorporation” has the meaning set forth in the Recitals.

    	 

    	 

    

 

 

“Change
of Control” means (a) any sale, lease or transfer or series of sales, leases or transfers of all or substantially all
of the consolidated assets of the Corporation and its Subsidiaries; (b) any sale, transfer or issuance (or series of sales, transfers
or issuances) of capital stock by the Corporation or the holders of Common Stock (or other voting stock of the Corporation) that
results in the inability of the holders of Common Stock (or other voting stock of the Corporation) immediately prior to such sale,
transfer or issuance to designate or elect a majority of the board of directors (or its equivalent) of the Corporation; or (c)
any merger, consolidation, recapitalization or reorganization of the Corporation with or into another Person (whether or not the
Corporation is the surviving corporation) that results in the inability of the holders of Common Stock (or other voting stock of
the Corporation) immediately prior to such merger, consolidation, recapitalization or reorganization to designate or elect a majority
of the board of directors (or its equivalent) of the resulting entity or its parent company.

“Common
Stock” means the common stock, $0.001 par value per share, of the Corporation.

“Corporation”
has the meaning set forth in the Preamble.

“Date of
Issuance” means, for any Share, February 24, 2015.

“Dividend
Reference Date” means each anniversary of the Date of Issuance.

“Exempt
Dividends and Repurchases” means (a) any dividend or distribution payable on the Common Stock in shares of Common Stock
and (b) any repurchase of Common Stock held by employees or consultants of the Corporation upon termination of their employment
or services.

“Junior
Securities” means, collectively, the Common Stock and any other class of securities of the Corporation that is specifically
designated as junior to the Series B Preferred Shares.

“Liquidation”
has the meaning set forth in Section 5.1.

“Liquidation
Value” means, with respect to any Share on any given date, $25.00.

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, governmental authority, unincorporated
organization, trust, association or other entity.

“Payment
Date” has the meaning set forth in Section 4.2.

“Preferred
Stock” has the meaning set forth in the Recitals.

“Securities
Act” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations thereunder,
which shall be in effect at the time.

“Series
B Preferred Shares” has the meaning set forth in Section 1.

“Series
B Preferred Shares Breach” has the meaning set forth in Section 8.1.

    	 

    	 

    

 

 

“Series
B Redemption” means a redemption of the Shares by the Corporation pursuant to Section 7.1 or Section 7.2.

“Series
B Redemption Date” means the date on which any Series B Redemption occurs.

“Series
B Redemption Price” means $25 per Share plus all unpaid accrued dividends on all
such Share (whether or not declared).

“Share”
means a share of Series B Preferred Shares.

“Subsidiary”
means, with respect to any Person, any other Person of which a majority of the outstanding shares or other equity interests having
the power to vote for directors or comparable managers are owned, directly or indirectly, by the first Person.

Section 3.               
Rank. With respect to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary, all Shares of the Series B Preferred Shares shall rank senior to all Junior Securities, and the Corporation
shall not issue any other series of Preferred Stock that ranks equal or senior to the Series B Preferred Shares while any Share
is outstanding.

Section 4.               
Dividends.

4.1             
Accrual and Payment of Dividends. From and after the Date of Issuance of any Share, cumulative dividends on such
Share shall accrue, whether or not declared by the Board and whether or not there are funds legally available for the payment of
dividends, on a daily basis in arrears at the rate of eight percent (8%) per annum of the Liquidation Value. All accrued dividends
on any Share shall be paid in cash only when, as and if declared by the Board out of funds legally available therefor or upon a
liquidation or redemption of the Series B Preferred Shares in accordance with the provisions of Section 5 or Section
7.

4.2             
Compounding Dividends. To the extent that on any Dividend Reference Date commencing with the third anniversary of
the Date of Issuance (such third anniversary and each successive anniversary of the Date of Issuance, a “Payment Date”),
the Corporation does not pay the dividends on the Shares outstanding accrued during the twelve-month period ending upon such Dividend
Reference Date (the “Current Pay Dividends”), such Current Pay Dividends shall
accumulate and compound from and after the applicable Dividend Reference Date and shall accrue, whether or not declared by the
Board and whether or not there are funds legally available for the payment of dividends,
on a daily basis in arrears at the rate of thirteen percent (13%) per annum and shall
remain accruing and accumulated dividends until such Current Pay Dividends are paid in full.

4.3             
Junior Securities. The Board shall have the discretion to declare and pay any dividends or make other distributions
on, or repurchase or redeem, any Junior Securities while any accrued dividends on the Shares remain unpaid, provided that during
the time that any Current Pay Dividends are unpaid and compounding pursuant to Section 4.2, no dividends or other distributions
or repurchases or redemptions on any Junior Securities (other than Exempt Dividends and Repurchases) shall be declared or paid
by the Board until such Current Pay

    	 

    	 

    

 

Dividends and all
dividends accrued thereon pursuant to Section 4.2 are declared and paid in full.

Section 5.               
Liquidation.

5.1             
Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation
(a “Liquidation”), the holders of Shares then outstanding shall be entitled to be paid out of the assets of
the Corporation available for distribution to its stockholders, before any payment shall be made to the holders of Junior Securities
by reason of their ownership thereof, an amount in cash equal to the aggregate Liquidation Value of all Shares held by such holder,
plus all unpaid accrued dividends on all such Shares (whether or not declared), and will not be entitled to any further assets
of the Corporation.

5.2             
Insufficient Assets. If upon any Liquidation the remaining assets of the Corporation available for distribution to
its stockholders shall be insufficient to pay the holders of the Shares the Liquidation Value, (a) the holders of the Shares shall
share ratably in any distribution of the remaining assets and funds of the Corporation in proportion to the respective full preferential
amounts which would otherwise be payable in respect of the Series B Preferred Shares in the aggregate upon such Liquidation if
all amounts payable on or with respect to such Shares were paid in full, and (b) the Corporation shall not make or agree to make
any payments to the holders of Junior Securities.

5.3             
Notice Requirement. In the event of any Liquidation, the Corporation shall, within ten (10) days following the date
the Board approves such action, or no later than twenty (20) days following any stockholders’ meeting called to approve such
action, or within twenty (20) days of the commencement of any involuntary proceeding, whichever is earlier, give each holder of
Shares written notice of the proposed action. Such written notice shall describe the material terms and conditions of such proposed
action, including a description of the stock, cash and property to be received by the holders of Shares upon consummation of the
proposed action and the date of delivery thereof. If any material change in the facts set forth in the initial notice shall occur,
the Corporation shall promptly give written notice to each holder of Shares of such material change.

Section 6.               
Voting. The Shares shall not be entitled to vote with respect to any matters presented to the stockholders of the
Corporation for their action or consideration (whether at a meeting of stockholders of the Corporation, by written action of stockholders
in lieu of a meeting or otherwise), except as provided by law, nor will the holders of the Series B Preferred Shares be given any
notice of a meeting or vote by the Corporation, except as provided herein.

Section 7.               
Redemption of Series B Preferred Shares.

7.1             
Mandatory Redemption. Unless redeemed earlier by the Corporation with the written consent of the holders of a majority
of the Shares or pursuant to Section 7.2, the Corporation shall redeem on February 24, 2020 the then outstanding Shares
for a price per Share equal to the Series B Redemption Price.

    	 

    	 

    

 

 

7.2             
Non-Mandatory Redemption. The Corporation shall have the option to redeem the then outstanding Shares for a price
per Share equal to the Series B Redemption Price immediately prior to the consummation of any Change of Control that occurs prior
to February 24, 2020.

7.3             
Payment. In exchange for the surrender to the Corporation by the respective holders of Shares of their certificate
or certificates representing such Shares, the aggregate Series B Redemption Price for all Shares held by each holder of Shares
shall be payable in cash in immediately available funds to the respective holders of the Series B Preferred Shares on the Series
B Redemption Date and the Corporation shall contribute all of its assets to the payment of the aggregate Series B Redemption Price
on all Shares, and to no other corporate purpose, except to the extent prohibited by applicable Delaware law.

7.4             
Insufficient Funds; Remedies For Nonpayment. If on the Series B Redemption Date, the assets of the Corporation legally
available are insufficient to pay the full Series B Redemption Price for the total number of Shares required to be redeemed pursuant
to Section 7.1 or Section 7.2, the Corporation shall (i) take all appropriate action reasonably within its means
to maximize the assets legally available for paying the aggregate Series B Redemption Price on all Shares, (ii) redeem out of all
such assets legally available therefor on the Series B Redemption Date the maximum possible number of Shares that it can redeem
on such date, pro rata among the holders of such Shares to be redeemed in proportion to the aggregate number of Shares elected
to be redeemed by each such holder on the applicable Series B Redemption Date and (iii) following the applicable Series B Redemption
Date, at any time and from time to time when additional assets of the Corporation become legally available to redeem the remaining
Shares, the Corporation shall immediately use such assets to pay the remaining balance of the aggregate applicable Series B Redemption
Price.

7.5             
Compounding Series B Redemption Price. To the extent any amount of the aggregate Series B Redemption Price on all
Shares remains unpaid as of the Series B Redemption Date, such amount shall accumulate and compound on a daily basis at the rate
of thirteen percent (13%) per annum until all such amounts due have been paid.

7.6             
Rights Subsequent to Redemption. If on the Series B Redemption Date, the Series B Redemption Price is paid (or tendered
for payment) for any of the Shares to be redeemed on such Series B Redemption Date, then on such date all rights of the holder
in the Shares so redeemed and paid or tendered shall cease and such Shares shall no longer be deemed issued and outstanding.

Section 8.               
Breach of Obligations.

8.1             
Series B Preferred Shares Breach. A breach by the Corporation of the rights, preferences, powers, restrictions and
limitations of the Series B Preferred Shares set forth herein shall mean the occurrence of one or more of any of the events and
conditions set forth in this Section 8.1 (each such event or condition, a “Series B Preferred Shares Breach”),
whether such event or condition occurs voluntarily or involuntarily, by operation of law or pursuant to any judgment, order, decree,
rule or regulation and regardless of the reason or cause of such event or condition.

    	 

    	 

    

 

 

(a)               
Nonpayment of Redemption or Liquidation Payments. The failure of the Corporation to make any (i) redemption payment
when due pursuant to Section 7 or (ii) liquidation payment when due pursuant to Section 5, in each case whether or
not such payment is legally permissible or is otherwise prohibited.

(b)              
Bankruptcy or Insolvency. The Corporation or any of its Subsidiaries (i) becomes insolvent or admits its inability
to pay its debts generally as they become due; (ii) becomes subject, voluntarily or involuntarily, to any proceeding under any
domestic or foreign bankruptcy or insolvency law, which is not fully stayed within seven (7) days or is not dismissed or vacated
within ninety (90) days after filing; (iii) makes a general assignment for the benefit of creditors; or (iv) has a receiver, trustee,
custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion
of its property or business.

8.2             
Consequences of Breach. In addition to any other rights which a holder of Shares is entitled under any other contract
or agreement and any other rights such holder may have pursuant to applicable law, the holders of Series B Preferred Shares shall
have the rights and remedies set forth in this Section 8.2 on the occurrence of a Series B Preferred Shares Breach.

(a)               
Redemption Right. If a Series B Preferred Shares Breach has occurred (other than a Series B Preferred Shares Breach
described in Section 8.1(b)) and is continuing for a period of thirty (30) days, any holder of Series B Preferred Shares
shall have the right to elect to have, out of funds legally available therefor, all (but not less than all) of the then outstanding
Series B Preferred Shares immediately redeemed by the Corporation for a price per Share equal to the Series B Redemption Price.
Any such redemption shall occur not more than twenty (20) days following receipt by the Corporation of the request by the holder.

(b)              
Automatic Redemption on Bankruptcy. Notwithstanding the earliest dates for redemption set forth in Section 7,
if a Series B Preferred Shares Breach described in Section 8.1(b) has occurred, all of the then outstanding Series B Preferred
Shares shall be subject to redemption immediately without any action required by the holders of Shares, for a price per Share equal
to the Series B Redemption Price. Any such redemption shall occur immediately and shall otherwise be executed in accordance with
the provisions of Section 7, applied mutatis mutandis.

Section 9.               
Reissuance of Series B Preferred Shares. Any Series B Preferred Shares redeemed, converted or otherwise acquired
by the Corporation or any Subsidiary shall be cancelled and retired as authorized and issued shares of capital stock of the Corporation
and no such Shares shall thereafter be reissued, sold or transferred.

Section 10.           
Notices. Except as otherwise provided herein, all notices, requests, consents, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation
of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on
the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours
of the recipient, and on the

    	 

    	 

    

 

next business day
if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent (a) to the Corporation, at its principal executive
offices and (b) to any stockholder, at such holder’s address at it appears in the stock records of the Corporation (or at
such other address for a stockholder as shall be specified in a notice given in accordance with this Section 10).

Section 11.           
Amendment and Waiver. No provision of this Certificate of Designation may be amended, modified or waived except by
an instrument in writing executed by the Corporation and holders of at least 50% of the Shares, and any such written amendment,
modification or waiver will be binding upon the Corporation and each holder of Series B Preferred Shares; provided, that
no such action shall change or waive (a) the definition of Liquidation Value or (b) this Section 11, without the prior written
consent of each holder of outstanding Series B Preferred Shares; provided, further, that no amendment, modification
or waiver of the terms or relative priorities of the Series B Preferred Shares may be accomplished by the merger, consolidation
or other transaction of the Corporation with another corporation or entity unless the Corporation has obtained the prior written
consent of the holders in accordance with this Section 11.

[SIGNATURE PAGE FOLLOWS]

    	 

    	 

    

IN WITNESS WHEREOF,
this Certificate of Designation is duly executed on behalf of the Corporation by an authorized officer as of this __ day of February,
2015.

	
        1347 PROPERTY INSURANCE

        HOLDINGS, INC.

	 	 
	 	 
	By:  	
	 	Name:
	 	Title:

 

    	

    	 

    

 

Exhibit C

Form of Warrant

 

THIS
PURCHASE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS PURCHASE WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR
SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES
IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND
AN OPINION SATISFACTORY TO THE COMPANY TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.

COMMON STOCK PURCHASE WARRANT

For the Purchase of 1,500,000 Shares
of Common Stock

of

1347 PROPERTY INSURANCE HOLDINGS, INC.

1.                 
Purchase Warrant. THIS CERTIFIES THAT, in consideration of the voluntary termination by 1347 Advisors LLC, a Delaware
limited liability company (the “Holder”), of the Management Services Agreement, dated February 11, 2014, by
and between 1347 Property Insurance Holdings, Inc., a Delaware corporation (the “Company”) and the Holder pursuant
to the Agreement to Buyout and Release, dated as of February 24, 2015, by and between the Company and the Holder, and for other
good and valuable consideration, Holder, as registered owner of this Purchase Warrant, is entitled, at any time or from time to
time from February 24, 2015 (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, February 24,
2022 (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part,
up to 1,500,000 shares of common stock of the Company, par value $0.001 per share (the “Shares”), subject to
the limitations as provided in Section 2.2 hereof and adjustment as provided in Section 5 hereof. If the Expiration Date is a day
on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding
day which is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees
not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $15.00 per
Share; provided, however, that upon the occurrence of any of the events specified in Section 5 hereof, the rights
granted by this Purchase Warrant, including the Exercise Price and the number of Shares to be received upon such exercise, shall
be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price per Share
or the adjusted exercise price per Share, depending on the context.

2.                 
Exercise.

2.1             
Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed
and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares
being purchased payable in cash by wire transfer of immediately available funds to an account designated by the

    	 

    	 

    

 

Company or by certified
check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern
time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented
hereby shall cease and expire.

2.2             
Limitations on the Number of Shares Issuable.

2.2.1             
Notwithstanding anything herein to the contrary, the Company shall not issue to Holder any Shares issuable upon exercise
of this Warrant (the “Warrant Shares”) to the extent that after giving effect to such issuance of Warrant Shares,
the Holder (together with Holder’s affiliates) would (a) beneficially own in excess of 19.9% of the number of shares of the
Company’s common stock outstanding immediately after giving effect to such issuance (the “Maximum Aggregate Ownership
Amount”) or (b) control in excess of 19.9% of the total voting power of the Company’s securities outstanding immediately
after giving effect to such issuance that are entitled to vote on a matter being voted on by holders of the Company’s common
stock (the “Maximum Aggregate Voting Amount”), unless and until the Company obtains stockholder approval permitting
such issuance in accordance with applicable NASDAQ Stock Market rules (“Stockholder Approval”).

2.2.2             
For purposes of this Section 2.2, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

2.2.3             
For purposes of this Section 2.2, in determining the number of outstanding shares of the Company’s common stock, Holder
may rely on the number of outstanding shares of the Company’s common stock as reflected in (i) the Company’s most recent
Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as the case may be, filed with the Securities and Exchange Commission,
(ii) a more recent public announcement by the Company, or (iii) any other written notice by the Company or the Company’s
transfer agent setting forth the number of shares of the Company’s common stock outstanding. Upon the written or oral request
of Holder, the Company shall within five business days confirm orally and in writing to Holder the number of shares of the Company’s
common stock then outstanding.

2.2.4             
If on any attempted exercise of this Warrant, the issuance of Warrant Shares would cause Holder to exceed the Maximum Aggregate
Ownership Amount or the Maximum Aggregate Voting Amount, and the Company shall not have previously obtained Stockholder Approval
at the time of exercise, then the Company shall issue to Holder such number of Warrant Shares as may be issued below the Maximum
Aggregate Ownership Amount or Maximum Aggregate Voting Amount, as the case may be.

2.2.5             
The Company shall, at the next annual meeting of stockholders of the Company (the “Stockholder Meeting”),
seek approval from the Company’s stockholders of a proposal approving the issuance of the Warrant Shares in excess of the
Maximum Aggregate Ownership Amount and the Maximum Aggregate Voting Amount upon exercise of the Warrant in accordance with applicable
law and the rules and regulations of the NASDAQ Stock Market.

    	 

    	 

    

 

 

2.2.6             
If stockholder approval of the matters set forth in Section 2.2.5 hereof is not obtained at the Stockholder Meeting, the
Company shall cause the Registration Rights Agreement, dated February 28, 2014, by and between Kingsway America Inc. and the Company
(the “Registration Rights Agreement”) to be amended to provide that (i) Holder is granted a demand registration
right thereunder with respect to the resale by Holder of the Warrants, which demand registration may, at the option of Holder,
be for the Company to file a shelf registration statement that permits the resale of the Warrants from time to time thereunder,
(ii) the Company is required to include the Warrants in any shelf registration statement that the Company files after the date
of such amendment and (iii) if Holder exercises its demand registration right under such amended Registration Rights Agreement
with respect to the Warrants, Holder shall pay all expenses (including the Company’s expenses) relating to the registration
of such Warrants.

2.3             
Agreement to Comply with the Securities Act; Legend. The Holder agrees to comply in all respects with the provisions
of this Section 2.3 and the restrictive legend requirements set forth on the face of this Purchase Warrant and further agrees that
such Holder shall not offer, sell or otherwise dispose of this Purchase Warrant or any Shares to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Securities Act of 1933, as amended (the “Securities
Act”). This Purchase Warrant and all Shares issued upon exercise of this Purchase Warrant (unless registered under the
Securities Act) shall be stamped or imprinted with a legend in substantially the following form:

“THIS
PURCHASE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS PURCHASE WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR
SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SECURITIES
IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND
AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

3.                 
Transfer.

3.1             
General Restrictions. The Holder may transfer or assign this Purchase Warrant to others subject to compliance with
or exemptions from applicable securities laws and compliance with this Section 3.1 and Section 3.2. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with
the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five
(5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant
or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number
of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

    	 

    	 

    

 

 

3.2             
Restrictions Imposed by the Securities Act. The securities evidenced by this Purchase Warrant shall not be transferred
unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant
to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established
to the reasonable satisfaction of the Company or (ii) a registration statement or a post-effective amendment to the registration
statement relating to the offer and sale of such securities has been filed by the Company and declared effective by the U.S. Securities
and Exchange Commission and compliance with applicable state securities law has been established.

4.                 
New Purchase Warrant to be Issued.

4.1             
Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised
or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase
Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise
Price and/or transfer tax due at the time of exercise or assignment, the Company shall cause to be delivered to the Holder without
charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder
to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

4.2             
Lost Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation
of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and
deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such
loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

5.                 
Adjustments.

5.1             
Adjustments to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the
Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:

5.1.1             
Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 5.3 below, the number
of outstanding Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then,
on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding
Shares, and the Exercise Price shall be proportionately decreased.

5.1.2             
Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 5.3 below, the number
of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares or other similar event, then,
on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in
outstanding Shares, and the Exercise Price shall be proportionately increased.

    	 

    	 

    

 

 

5.1.3             
Replacement of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
Shares other than a change covered by Section 5.1.1 or 5.1.2 hereof or that solely affects the par value of such Shares, or in
the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation (other than
a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result
in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation
or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of
this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately
prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such
sale or transfer, by a holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately
prior to such event; and if any reclassification also results in a change in Shares covered by Section 5.1.1 or 5.1.2, then such
adjustment shall be made pursuant to Sections 5.1.1, 5.1.2 and this Section 5.1.3. The provisions of this Section 5.1.3 shall similarly
apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other
transfers.

5.1.4             
Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant
to this Section 5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares
as are stated in the Purchase Warrant initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring
after the Commencement Date or the computation thereof.

5.2             
Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation
of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation which does
not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share
reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder
of this Purchase Warrant shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon
exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such
consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such Purchase
Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer.
Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this
Section 5. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations.

5.3             
Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions
of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional
interests, it being the intent of the

    	 

    	 

    

 

parties that all fractional
interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or
other securities, properties or rights.

6.                 
Reservation. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the
purpose of issuance upon exercise of this Purchase Warrant, such number of Shares or other securities, properties or rights as
shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of this Purchase Warrant and
payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder.

7.                 
Certain Notice Requirements.

7.1             
Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right
to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights
whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of this Purchase Warrant, any of the
events described in Section 7.2 shall occur, then the Company shall give written notice of such event at least fifteen days prior
to the date fixed as a record date or the date of closing the transfer books, as the case may be, for the determination of the
shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be.

7.2             
Events Requiring Notice. The Company shall be required to give the notice described in this Section 7 upon the occurrence
of one or more of the following events: (i) if the Company shall take a record of the holders of its Shares for the purpose of
entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable
otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books
of the Company, (ii) the Company shall offer to all the holders of its Shares any additional shares of capital stock of the Company
or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe
therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share
reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed. The
Holder shall keep the information provided in such notices confidential unless and until such information is disclosed publicly
by the Company.

7.3             
Notice of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise
Price pursuant to Section 5 hereof, send notice to the Holder of such event and change (“Price Notice”). The
Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true
and accurate by the Company’s Chief Financial Officer.

7.4             
Notices. All notices and other communications provided for in this Purchase Warrant shall be given in writing, addressed
to the recipient as follows (or at such other address that shall be specified in a notice given in accordance with this Section
7.4):

    	 

    	 

    

 

	 	If to 1347 Advisors:	 	1347 Advisors LLC
	 	 	 	150 Pierce Road, 6th Floor
	 	 	 	Itasca, IL  60143
	 	 	 	Fax No.:  847-952-7079
	 	 	 	Attention:  President
	 	 	 	 
	 	If to the Company:	 	1347 Property Insurance Holdings, Inc.
	 	 	 	1511 N. Westshore Blvd., Suite 870
	 	 	 	Tampa, FL  33607
	 	 	 	Fax No.: 813-579-6237  
	 	 	 	Attention:  President

 

All notices and other communications shall
be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered by mail,
five days after being deposited in the mail (by registered or certified mail, postage prepaid), and (iii) if delivered by facsimile,
when received.

 

8.                 
Miscellaneous.

8.1             
Amendments. No amendment or modification of this Purchase Warrant shall be valid unless made in writing and signed
by each of the Company and Holder.

8.2             
Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any
way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

8.3             
Entire Agreement. This Purchase Warrant is the entire agreement of the parties hereto relating to the subject matter
hereof, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Purchase
Warrant which are not set forth herein. This Purchase Warrant replaces and supersedes any and all prior discussions and agreements
that the parties hereto have had and have entered into with respect to the subject matter hereof.

8.4             
Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon the Holder and
the Company and their permitted assignees, respective successors, legal representative and assigns, and no other individual or
entity or other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of
or by virtue of this Purchase Warrant or any provisions herein contained.

8.5             
Governing Law. This Purchase Warrant shall be governed by, and construed and interpreted in accordance with, the
internal laws of the State of Delaware without giving effect to any choice of conflict law provision or rule (whether of the State
of Delaware or any other jurisdiction).

8.6             
EACH PARTY HERETO, ON BEHALF OF ITSELF AND ITS AFFILIATES AND SUBSIDIARIES, TO THE FULLEST EXTENT PERMITTED BY LAW, KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN

    	 

    	 

    

 

ANY ACTION OR OTHER
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THE WAIVER APPLIES TO ANY ACTION OR LEGAL PROCEEDING, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE. THE PARTIES HERETO ACKNOWLEDGE THIS WAIVER OF TRIAL BY JURY BY PLACING THEIR INITIALS HERE:

	 	____________	 	 	 	 	___________	 	 
	 	Holder	 	 	 	 	The Company	 	 

8.7             
Counterparts; Facsimiles. This Purchase Warrant may be executed in counterparts, each of which may be executed and
delivered via facsimile or portable document format (.PDF) electronic delivery with the same validity as if it were an ink-signed
document and each of which shall be effective and binding on the parties as of the date first set forth above. Each such counterpart
shall be deemed an original and, when taken together with other signed counterparts, shall constitute one and the same Purchase
Warrant.

8.8             
Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase
Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase
Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this
Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant
shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement
of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be
a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

[Signature Page Follows]

 

    	 

    	 

    

IN WITNESS WHEREOF,
the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ____ day of February, 2015.

	1347 PROPERTY INSURANCE

        HOLDINGS, INC.

	 	 
	 	 
	By:  	
	 	Name:
	 	Title:

 

	Accepted and agreed:
	 	 
	1347 ADVISORS LLC
	By:	 
	 	Name:
	 	Title:
	 	 	 

 

[Signature Page to Common Stock Purchase Warrant]

    	 

    	 

    

[Form to be used to exercise Purchase
Warrant]

Date: __________, 20___

The undersigned hereby
elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.001 per share (the “Shares”),
of 1347 Property Insurance Holdings, Inc., a Delaware corporation (the “Company”), and hereby makes payment
of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which
this Purchase Warrant is exercised in accordance with the instructions given above and, if applicable, a new Purchase Warrant representing
the number of Shares for which this Purchase Warrant has not been exercised.

	Signature __________________________
	Signature Guaranteed _________________

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

    	 

    	 

    

[Form to be used to assign Purchase
Warrant]

ASSIGNMENT

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

FOR VALUE RECEIVED, __________________
does hereby sell, assign and transfer unto the right to purchase shares of common stock, par value $0.001 per share, of 1347 Property
Insurance Holdings, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant and does
hereby authorize the Company to transfer such right on the books of the Company.

	Dated:  __________, 20__
	Signature ______________________
	Signature Guaranteed ______________

NOTICE: The signature to this form must
correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on
a registered national securities exchange.

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