Document:

Exhibit 4.3

 

WARRANT
AGREEMENT

 

This Warrant Agreement
(“Warrant Agreement”) is made as of February [ ], 2018, by and between Insurance Income Strategies Ltd., a Bermuda
exempted company (the “Company”), and V Stock Transfer, LLC (the “Warrant Agent”).

 

WHEREAS, the Company
is engaged in a public offering (the “Public Offering”) of up to 5,980,000 units (the “Units”)
of the Company, each Unit consisting of one common share, par value $0.001 per share (the “Common Shares”),
one Class A warrant (the “Class A Warrants”) exercisable for one Common Share and one Class B warrant (the “Class
B Warrant” and together with the Class A Warrants, the “Warrants”) exercisable for one Common Share
(each Common Share issuable upon exercise of a Warrant, a “Warrant Share”);

 

WHEREAS, if the Units
separate into their component Common Shares, Class A Warrant and Class B Warrant and trade separately before the over-allotment
period expires, then in lieu of Units to be sold pursuant to the over-allotment option, the Company will issue and sell to the
underwriters up to 780,000 additional Common Shares, Class A Warrants and Class B Warrants pursuant thereto;

 

WHEREAS, the Company
has filed, with the U.S. Securities and Exchange Commission (the “SEC”), a registration statement on Form S-l
(File No. 333-221083), as amended (the “Registration Statement”), for the registration, under the Securities
Act of 1933, as amended (the “Act”), with respect to the Public Offering; and

 

WHEREAS, the Company
desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance,
registration, transfer, exchange, redemption and exercise of the Warrants; and

 

WHEREAS, the Company
desires to provide for the form, terms and provisions of the Warrants, including the terms upon which they shall be issued and
exercised, and the respective rights, limitation of rights and immunities of the Company, the Warrant Agent and the holders of
the Warrants; and

 

WHEREAS, all acts and
things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned
by or on behalf of the Warrant Agent, as provided herein, the legally valid and binding obligations of the Company, and to authorize
the execution and delivery of this Warrant Agreement.

 

NOW, THEREFORE, in
consideration of the mutual agreements contained herein, the parties hereto agree as follows:

 

1.           Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and
the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set
forth in this Warrant Agreement.

 

     

     

    

 

2.           Warrants.

 

2.1          Form
of Warrant. Each Warrant shall be issued in registered form only and, if a physical certificate is issued, shall be
in substantially the form of Exhibit A (for the Class A Warrants) and Exhibit B (for the Class B Warrants) hereto, the provisions
of which are incorporated herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board, the Chief
Executive Officer or the Chief Financial Officer of the Company. In the event the person whose facsimile signature has been placed
upon any Warrant shall have ceased to serve in the capacity in which such person signed the Warrant before such Warrant is issued,
it may be issued with the same effect as if he or she had not ceased to be such at the date of issuance. All of the Warrants shall
initially be represented by one or more book-entry certificates (each a “Book-Entry Warrant Certificate”).

 

2.2         Effect
of Countersignature. If a physical certificate is issued, unless and until countersigned by the Warrant Agent pursuant
to this Warrant Agreement, a Warrant shall be invalid and of no effect and may not be exercised by the holder thereof.

 

2.3          Registration.

 

2.3.1       Warrant
Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration of the original
issuance and transfers of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the
Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions delivered
to the Warrant Agent by the Company. All of the Warrants shall initially be represented by one or more Book-Entry Warrant Certificates
deposited with The Depository Trust Company (the “Depositary”) and registered in the name of Cede & Co.,
a nominee of the Depositary. Ownership of beneficial interests in the Warrants shall be shown on, and the transfer of such ownership
shall be effected through, records maintained by (i) the Depositary or its nominee for each Book-Entry Warrant Certificate, or
(ii) institutions that have accounts with the Depositary (each such institution, with respect to a Warrant in its account, a “Participant”).

 

If the Depositary
subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent
regarding making other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no
longer necessary to have the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the
Depositary to deliver to the Warrant Agent for cancellation each Book-Entry Warrant Certificate, and the Company shall instruct
the Warrant Agent to deliver to the Depositary definitive certificates in physical form evidencing such Warrants (“Definitive
Warrant Certificates”). Such Definitive Warrant Certificates shall be in the form annexed hereto as Exhibit A (for the
Class A Warrant) and Exhibit B (for the Class B Warrant) with appropriate insertions, modifications and omissions, as provided
above.

 

2.3.2       Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and
treat the person in whose name such Warrant shall be registered upon the Warrant Register (“Registered Holder”)
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other
writing on a Definitive Warrant Certificate made by anyone other than the Company or the Warrant Agent), for the purpose of
any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice
to the contrary.

 

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2.4         Detachability of
Warrants. Each of the Common Shares, the Class A Warrants and the Class B Warrants comprising the Units will
begin to trade separately on (i) the 45th day after date of the Company’s final prospectus pertaining to the Public
Offering, or (ii) such earlier date as Joseph Gunnar & Co., as representative of the underwriters (the
“Representative”), shall determine is acceptable) such date, the “Detachment Date”). In
no event will separate trading of the securities comprising the Units commence until the Company issues a press release
announcing when such separate trading will begin.

 

3.           Terms
and Exercise of Warrants.

 

3.1         Warrant
Price.

 

3.1.1       Each
Class A Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Warrant Agreement,
to purchase from the Company the number of Common Shares stated therein, at the price of $10.00 per share, subject to the adjustments
provided in Section 4 hereof.

 

3.1.2       Each
Class B Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Warrant Agreement,
to purchase from the Company the number of Common Shares stated therein, at the price of $11.00 per share, subject to the adjustments
provided in Section 4 hereof.

 

3.1.3       The
term “Warrant Price” as used in this Warrant Agreement refers to the price per share at which Common Shares
may be purchased at the time such Warrant is exercised.

 

3.2         Duration
of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on
the date of the closing of the Public Offering (the “Closing Date”) and terminating at 5:00 p.m., New York City
time, (i) with respect to the Class A Warrants, on the fifth anniversary of the Closing Date and (ii) with respect to the Class
B Warrants, on the seventh anniversary of the Closing Date (the “Expiration Date”). Except with respect to the
right to receive the Redemption Price (as set forth in Section 6 hereunder), each Warrant not exercised on or before the Expiration
Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant Agreement shall cease at
5:00 p.m., New York City time on the Expiration Date. The Company may extend the duration of the Class A Warrants and/or Class
B Warrants by delaying the Expiration Date with respect to each such class of Warrants; provided, however, that the Company will
provide at least twenty (20) days prior written notice to the Registered Holders of such class of Warrants of any such extension
and that such extension shall be identical in duration among all Warrants within the particular class of Warrants to which such
extension relates. For the avoidance of doubt, an extension of the Expiration Date of the Class A Warrants shall have no effect
on the Expiration Date of the Class B Warrants, and vice versa, unless the Company expressly provides for such effect in
its written notice to Registered Holders with respect to such delay in the Expiration Date, in which case such extension shall
apply to all Warrants equally.

 

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3.3          Exercise
of Warrants.

 

3.3.1       Cash
Exercise. Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder
thereof by delivering to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing
the Warrants to be exercised, or, in the case of a Book-Entry Warrant Certificate, the Warrants to be exercised (the “Book-Entry
Warrants”) on the records of the Depositary to an account of the Warrant Agent at the Depositary designated for such
purposes in writing by the Warrant Agent to the Depositary from time to time, (ii) a subscription form to purchase Common Shares
pursuant to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the Definitive
Warrant Certificate or, in the case of a Book-Entry Warrant Certificate, properly delivered by the Participant in accordance with
the Depositary’s procedures, to and by (iii) paying in full, in lawful money of the United States, by certified or bank
cashier’s check payable to the order of the Warrant Agent or by wire transfer to the Warrant Agent’s [ ] bank account,
the Warrant Price for each whole Warrant Share as to which the Warrant is exercised and any and all applicable taxes due in connection
with the exercise of the Warrant, the exchange of the Warrant for the Warrant Shares, and the issuance of the Warrant Shares (such
exercise, a “Cash Exercise”). A Cash Exercise in accordance with this Section 3.3.1 is available to the Registered
Holder only during such times that there is an effective registration statement registering the Warrant Shares, with the prospectus
contained therein being available for the resale of the Warrant Shares.

 

3.3.2       Cashless
Exercise. Notwithstanding anything contained herein to the contrary, if on the date of exercise of the Warrants there is no
effective registration statement registering the Warrant Shares, or the prospectus contained therein is not available for the resale
of the Warrant Shares, if the Registered Holder desires to exercise the Warrants, the Registered Holder may only exercise the Warrants
in whole or in part in lieu of making a cash payment, by providing notice to the Chief Financial Officer of the Company, in a subscription
form of its election to utilize cashless exercise, in which event the Company shall issue to the Holder the number of Warrant Shares
determined as follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares to be issued to the
Holder.

 

Y = the number of Warrant Shares with respect to which
this Warrant is being exercised.

 

A = the fair market value of one Common Share.

 

B = the Warrant Price.

 

For purposes of this Section 3.3.2,
the fair market value of one Common Share is defined as follows:

 

(i)           if
the Company’s Common Shares are listed and traded on the New York Stock Exchange, the NYSE American, the NASDAQ Global Select
Market, the NASDAQ Global Market or the NASDAQ Capital Market (each, a “Trading Market”), the fair market value
shall be deemed the closing price on such Trading Market on the trading day immediately prior to the date the subscription form
is submitted to the Company in connection with the exercise of the Warrant; or

 

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(ii)          if
the Company’s Common Shares are not listed on a Trading Market, but are traded in the over-the-counter market, the fair market
value shall be deemed to be the closing bid price on the trading day immediately prior to the date the subscription form is submitted
in connection with the exercise of the Warrant; or

 

(iii)         if
there is no active public market for the Company’s Common Shares, the fair market value of the Common Shares shall be determined
in good faith by the Company’s board of directors.

 

For purposes of Rule 144 promulgated under
the Act, it is intended, understood and acknowledged that, assuming the Registered Holder is not an affiliate of the Company, the
Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Registered Holder, and the
holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued, subject
to the rules and regulations set forth under the Act. The date that notice of cashless exercise is received by the Warrant Agent
shall be conclusively determined by the Warrant Agent. 

 

3.3.3       Fractional
Shares. Notwithstanding any provision to the contrary contained in this Warrant Agreement, the Company shall not be required
to issue any fraction of a Warrant Share in connection with the exercise of Warrants, and in any case where the Registered Holder
would be entitled under the terms of the Warrants to receive a fraction of a Warrant Share upon the exercise of such Registered
Holder’s Warrants, issue or cause to be issued only the largest whole number of Warrant Shares issuable on such exercise
(and such fraction of a Warrant Share will be disregarded); provided, that if more than one Warrant certificate is presented for
exercise at the same time by the same Registered Holder, the number of whole Warrant Shares which shall be issuable upon the exercise
thereof shall be computed on the basis of the aggregate number of Warrant Shares issuable on exercise of all such Warrants surrendered.

 

3.3.4       Issuance
of Common Shares. No later than three (3) business days following the exercise of any Warrant and the clearance of the funds
in payment of the Warrant Price pursuant to Section 3.3.1 or cashless exercise pursuant to Section 3.3.2, the Company shall issue,
or cause to be issued, to the Registered Holder of such Warrant a certificate or certificates or book-entry notations representing
(or at the option of the Registered Holder, deliver electronically through the facilities of the Depository Trust Corporation)
the number of full Common Shares to which he, she or it is entitled, registered in such name or names as may be directed by him,
her or it, and, if such Warrant shall not have been exercised or surrendered in full, a new book-entry position or countersigned
Warrant, as applicable, for the number of shares as to which such Warrant shall not have been exercised or surrendered. If fewer
than all the Warrants evidenced by a Book-Entry Warrant Certificate are exercised, a notation shall be made to the records maintained
by the Depositary, its nominee for each Book-Entry Warrant Certificate, or a Participant, as appropriate, evidencing the balance
of the Warrants remaining after such exercise.

 

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Notwithstanding the foregoing, the Company
shall be obligated to deliver, or cause to be delivered, any securities without applicable restrictive legend pursuant to the exercise
of a Warrant and shall have no obligation to settle such Warrant exercise unless (a) a registration statement under the Act with
respect to the Common Shares issuable upon exercise of such Warrants is then effective and a current prospectus relating to the
Common Shares issuable upon exercise of the Warrants is available for delivery to the Registered Holder of the Warrant or (b) in
the opinion of counsel to the Company, the exercise of the Warrants is exempt from the registration requirements of the Act and
such securities are qualified for sale or exempt from qualification under applicable securities laws of the states or other jurisdictions
in which the Registered Holder resides. Warrants may not be exercised by, or securities issued to, any Registered Holder in any
state in which such exercise or issuance would be unlawful. In no event will the Company be required to net cash settle the Warrant
exercise.

 

3.3.5       Valid
Issuance. All Common Shares issued upon the proper exercise or surrender of a Warrant in conformity with this Warrant Agreement
shall be validly issued, fully paid and non-assessable.

 

3.3.6       Date
of Issuance. Each person or entity in whose name any Common Shares are issued shall, for all purposes, be deemed to have become
the holder of record of such shares on the date on which the Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such Common Shares (physically or electronically), except that, if the date of such surrender
and payment is a date when the share transfer books of the Company or book-entry system of the Warrant Agent are closed, such person
shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the share
transfer books or book-entry system are open.

 

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3.3.7       Holder’s
Exercise Limitations. A holder of a Warrant may notify the Company in writing in the event he, she or it elects to be subject
to the provisions contained in this subsection 3.3.7; however, no holder of a Warrant shall be subject to this subsection 3.3.7
unless he, she or it makes such election. If the election is made by a holder, the Company shall not effect any exercise of a Warrant, and a holder shall not have the right to exercise
any portion of a Warrant to the extent that after giving effect to such issuance after exercise, the holder (together with the
holder’s affiliates, and any other persons acting as a group together with the holder or any of the holder’s affiliates),
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of Common Shares beneficially owned by the holder and its affiliates shall include the number of Common Shares issuable
upon exercise of a Warrant with respect to which such determination is being made, but shall exclude the number of Common Shares
which would be issuable upon (i) exercise of the remaining, nonexercised portion of a Warrant beneficially owned by the holder
or any of its affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, a Class B Warrant) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the holder or any of its affiliates. Except as set forth in the preceding sentence,
for purposes of this Section 3.3.7, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations promulgated thereunder,
it being acknowledged by the holder that the Company is not representing to the holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the holder is solely responsible for any schedules required to be filed in accordance therewith.
To the extent that the limitation contained in this Section 3.3.7 applies, the determination of whether a Warrant is exercisable
(in relation to other securities owned by the holder together with any affiliates) and of which portion of a Warrant is exercisable
shall be in the sole discretion of the holder, and the submission of a subscription form shall be deemed to be the holder’s
determination of whether a Warrant is exercisable (in relation to other securities owned by the holder together with any affiliates)
and of which portion of a Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company
shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 3.3.7, in determining the number of outstanding Common Shares, a holder may
rely on the number of outstanding Common Shares as reflected in (A) the Company’s most recent periodic or annual report filed
with the SEC, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the
Company or its transfer agent setting forth the number of Common Shares outstanding. Upon the written or oral request of a holder,
the Company shall within two trading days confirm orally and in writing to the holder the number of Common Shares then outstanding.
In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities
of the Company, including Warrants owned by the holder or its affiliates since the date as of which such number of outstanding
Common Shares was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of Common Shares outstanding
immediately after giving effect to the issuance of Common Shares issuable upon exercise of the Warrant. The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3.3.7
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of a Warrant. In addition, in no event will the Company
be obligated to pay such Registered Holder any cash consideration upon exercise or otherwise “net cash settle” the
Warrant.

 

4.            Adjustments.

 

4.1          Stock
Dividends, Splits. If, after the date hereof, and subject to the provisions of Section 4.5 below, the number of outstanding
Common Shares is increased by a stock dividend payable in Common Shares, or by a forward or reverse split of Common Shares, or
other similar event, then, on the effective date of such stock dividend, split or similar event, the number of Common Shares issuable
on exercise of each Warrant shall be increased or decreased in proportion to such increase or decrease in outstanding Common Shares.

 

4.2          Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 4.6, the number of outstanding Common Shares
is decreased by a consolidation, combination or reclassification of Common Shares or other similar event, then, on the effective
date of such consolidation, combination, reclassification or similar event, the number of Common Shares issuable on exercise of
each Warrant shall be decreased in proportion to such decrease in outstanding Common Shares.

 

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4.3          Adjustments
in Exercise Price. Whenever the number of Common Shares purchasable upon the exercise of the Warrants is adjusted, as
provided in Sections 4.1 and 4.2 above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price,
immediately prior to such adjustment, by a fraction, (a) the numerator of which shall be the number of Common Shares purchasable
upon the exercise of the Warrants immediately prior to such adjustment, and (b) the denominator of which shall be the number of
Common Shares so purchasable immediately thereafter. Notwithstanding the foregoing, the Company shall have the ability to reduce
the exercise price of the Class A Warrants and/or the Class B Warrants at any time in its sole discretion. Any reduction in the
Exercise Price of the Class A Warrants shall have no effect on the Exercise Price of the Class B Warrants, and vice versa, unless
expressly provided for by the Company in its notice to Registered Holders with respect to such reduction.

 

4.4          Extraordinary
Dividends. If the Company, at any time while the Class B Warrants are outstanding and unexpired, shall pay a dividend or make
a distribution in cash to the holders of the Common Shares on account of such Common Shares (or other shares of the Company’s
share capital into which the Warrants are convertible) in excess of $0.50 per Common Share (such excess per share amount, the “Excess
Cash”) in any calendar year (such event being referred to herein as an “Extraordinary Dividend”),
then the Warrant Price for the Class B Warrants (but not the Class A Warrants) shall be decreased, effective immediately after
the effective date of such Extraordinary Dividend, by the amount of Excess Cash paid on each Ordinary Share in respect of such
Extraordinary Dividend in such calendar year. The Warrant Price for the Class B Warrants cannot be less than zero.

 

4.5          Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding
Common Shares (other than a change covered by Sections 4.1 or 4.2 hereof or one that solely affects the par value of such Common
Shares), or, in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation
or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization
of the outstanding Common Shares), or, in the case of any sale or conveyance to another corporation or entity of the assets or
other property of the Company as an entirety or substantially as an entirety, in connection with which the Company is dissolved,
the Registered Holders shall thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions
specified in the Warrants and in lieu of the Common Shares of the Company immediately theretofore purchasable and receivable upon
the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including
cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such
sale or transfer, that the Registered Holder would have received if such Registered Holder had exercised his, her or its Warrant(s)
immediately prior to such event; and if any reclassification also results in a change in the number of Common Shares covered by
Sections 4.1 or 4.2, then such adjustment shall be
made pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.5. The provisions of this Section 4.5 shall similarly apply to successive
reclassifications, reorganizations, mergers or consolidations, sales or other transfers.

 

4.6         Notices
of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of
a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting
from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise
of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.
Upon the occurrence of any event specified in Sections 4.1, 4.2 or 4.3 the Company shall give written notice to each Registered
Holder, at the last address set forth for such Registered Holder in the Warrant Register, of the record date or the effective date
of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.

 

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4.7          Form
of Warrant. The form of Warrant need not be changed because of any adjustment pursuant to this Section 4, and Warrants
issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrants initially
issued pursuant to this Warrant Agreement. However, the Company may, at any time, in its sole discretion, make any change in the
form of Warrant that the Company may deem appropriate and that does not affect the substance thereof, and any Warrant thereafter
issued or countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so
changed.

 

4.8          Notice
of Certain Transactions. In the event that the Company shall (a) offer to holders of all its Common Shares rights to
subscribe for or to purchase any securities convertible into Common Shares or shares of stock of any class or any other securities,
rights or options, (b) issue any rights, options or warrants entitling all the holders of Common Shares to subscribe for Common
Shares, or (c) make a tender offer, redemption offer or exchange offer with respect to the Common Shares, the Company shall send
to the Registered Holders a notice of such action or offer. Such notice shall be mailed to the Registered Holders at their addresses
as they appear in the Warrant Register, which shall specify the record date for the purposes of such dividend, distribution or
rights, or the date such issuance or event is to take place and the date of participation therein by the holders of Common Shares,
if any such date is to be fixed, and shall briefly indicate the effect of such action on the Common Shares and on the number and
kind of any other shares of stock and on other property, if any, and the number of Common Shares and other property, if any, issuable
upon exercise of each Warrant and the Warrant Price after giving effect to any adjustment pursuant to this Section 4 which would
be required as a result of such action. Such notice shall be given as promptly as practicable after the Company has taken any such
action.

 

5.           Transfer
and Exchange of Warrants.

 

5.1          Transfer
of Warrants. Prior to the Detachment Date, the Warrants may be transferred or exchanged only together with the Unit
in which such Warrant is included, and only for the purpose of effecting, or in conjunction with, a transfer or exchange of such
Unit. Furthermore, each transfer of a Unit on the register relating to such Units shall operate also to transfer the Warrants included
in such Unit. From and after the Detachment Date, this Section 5.1 will have no further force and effect.

 

5.2          Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant into the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by
appropriate instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants
shall be issued and the old Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled shall be delivered by the
Warrant Agent to the Company from time to time upon the Company’s request.

 

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5.3         Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange
or transfer, and, thereupon, the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered
Holder of the Warrants so surrendered, representing an equal aggregate number of Warrants;  provided, however, that except
as otherwise provided herein or in any Book-Entry Warrant Certificate, each Book-Entry Warrant Certificate may be transferred only
in whole and only to the Depositary, to another nominee of the Depositary, to a successor depository, or to a nominee of a successor
depository; provided further, however, that, in the event a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and shall issue new Warrants in exchange therefor until the Warrant Agent has received an opinion
of counsel for the Company stating that such transfer may be made and indicating whether the new Warrants must also bear a restrictive
legend.

 

5.4          Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result
in the issuance of a Warrant certificate for a fraction of a Warrant.

 

5.5         Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance
with the terms of this Warrant Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and
the Company, whenever required by the Warrant Agent, will supply the Warrant Agent with Warrants duly executed on behalf of the
Company for such purpose.

 

6.          Redemption.

 

6.1         Redemption.
Subject to the second sentence of this Section 6.1, all (and not less than all) of the outstanding Class A Warrants and/or all
(and not less than all) of the outstanding Class B Warrants may be redeemed, at the option of the Company, at any time prior to
their expiration, at the office of the Warrant Agent, upon the notice referred to in Section 6.2, at the price of $0.01 per Warrant
(“Redemption Price”); provided that the last reported sale price of a Common Share has been equal to or greater
than $14.00 (subject to adjustment for splits, dividends, recapitalizations and other similar events) for any twenty (20) trading
days within a thirty (30) consecutive trading day period ending on the third business day prior to the date on which notice of
redemption is given. Notwithstanding the foregoing, a registration statement under the Act covering Common Shares issuable upon
exercise of the Warrants must be effective and a current prospectus relating thereto must be available for use by the Registered
Holders hereof during such thirty (30) consecutive trading day period in order for the Company to exercise its redemption rights
pursuant to this Section 6.

 

6.2         Date
Fixed for, and Notice of, Redemption. In the event the Company elects to redeem all of the Class A Warrants and/or all
of the Class B Warrants, the Company shall fix a date for the redemption. Notice of redemption shall be mailed by first class mail,
postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to the Registered Holders of the Warrants
to be redeemed at their last addresses as they shall appear on the Warrant Register. Any notice mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the Registered Holder received such notice.

 

    	 	10	 

     

    

 

6.3          Exercise
After Notice of Redemption. The Warrants may be exercised in accordance with Section 3 of this Warrant Agreement at
any time after notice of redemption shall have been given by the Company pursuant to Section 6.2 hereof and prior to the time and
date fixed for redemption. On and after the redemption date, the Registered Holder of the Warrants shall have no further rights
except to receive, upon surrender of the Warrants, the Redemption Price.

 

6.4         No
Other Rights to Cash Payment. Except for a redemption in accordance with this Section 6, no Registered Holder of any
Warrant shall be entitled to any cash payment whatsoever from the Company in connection with the ownership, exercise or surrender
of any Warrant under this Warrant Agreement.

 

7.           Other
Provisions Relating to Rights of Registered Holders of Warrants.

 

7.1         No
Rights as Shareholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a shareholder
of the Company, including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive
rights to vote or to consent or to receive notice as a shareholder in respect of the meetings of shareholders or the election of
directors of the Company or any other matter.

 

7.2          Lost,
Stolen Mutilated or Destroyed Warrants. If any Warrant is lost, stolen, mutilated or destroyed, the Company
and the Warrant Agent may, on such terms as to indemnity or otherwise as they may in their discretion impose (which terms
shall include the provision of a bond of indemnity and, in the case of a mutilated Warrant, the surrender thereof), issue a new
Warrant of like denomination, tenor and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant
shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated
or destroyed Warrant shall be at any time enforceable by anyone.

 

7.3          Reservation
of Common Shares. The Company shall at all times reserve and keep available a number of its authorized but unissued
Common Shares that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant
Agreement.

 

7.4          Registration
of Common Shares. The Company has registered the Warrants and the Common Shares issuable upon exercise of the Warrants
pursuant to the Registration Statement. Until the expiration of the Warrants in accordance with the provisions of this Warrant
Agreement, the Company shall use its reasonable best efforts to maintain the effectiveness of such Registration Statement and the
current status of the prospectus. If the Company fails to maintain the effectiveness of the Registration Statement, the Registered
Holders have no right to a Cash Exercise as set forth in Section 3.3.1 and their sole recourse shall be to have the right to exercise
the Warrants on a cashless basis (in accordance with Section 3(a)(9) of the Act or another exemption) as set forth in Section 3.3.2
and the Company shall not have any other penalties for failure to maintain the effectiveness of the Registration Statement or the
current status of the prospectus at the time of exercise by the Registered Holder.

 

    	 	11	 

     

    

 

8.           Warrant
Agent and Other Matters.

 

8.1          Payment
of Taxes. The Company will, from time to time, promptly pay all taxes and charges that may be imposed upon the Company
or the Warrant Agent in respect of the issuance or delivery of Common Shares upon the exercise of Warrants, but the Company shall
not be obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

8.2         Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1       Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the
office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint, in writing,
a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of
30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the Registered Holder
of the Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the Registered
Holder of any Warrant may apply to the Supreme Court of the State of New York for the County of New York for the appointment of
a successor Warrant Agent. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation
organized and existing under the laws of the State of New York, in good standing and having its principal office in the Borough
of Manhattan, City and State of New York, and be authorized under such laws to exercise corporate trust powers and subject to supervision
or examination by federal or state authorities. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties and obligations of its predecessor Warrant Agent with like effect as if originally named as
Warrant Agent hereunder, without any further act or deed; but, if for any reason it becomes necessary or appropriate, the predecessor
Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and, upon request of any successor Warrant Agent,
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting
in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties and obligations.

 

8.2.2       Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof
to the predecessor Warrant Agent and the transfer agent for the Common Shares not later than the effective date of any such appointment.

 

8.2.3       Merger
or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be consolidated
or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Warrant Agreement without any further act on the part of the Company or the Warrant Agent.

 

    	 	12	 

     

    

 

8.3         Fees
and Expenses of Warrant Agent.

 

8.3.1       Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as Warrant Agent hereunder and will reimburse
the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties hereunder.

 

8.3.2       Further
Assurances. The Company agrees to perform, execute, acknowledge and deliver, or cause to be performed, executed, acknowledged
and delivered, all such further and other acts, instruments and assurances as may reasonably be required by the Warrant Agent for
the carrying out or performing of the provisions of this Warrant Agreement.

 

8.4          Liability
of Warrant Agent.

 

8.4.1       Reliance
on Company Statement. Whenever, in the performance of its duties under this Warrant Agreement, the Warrant Agent shall deem
it necessary or desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a statement signed by the Chief Executive Officer, Chief Financial Officer or Chairman of
the Board of the Company and delivered to the Warrant Agent. The Warrant Agent may rely upon such statement for any action taken
or suffered in good faith by it pursuant to the provisions of this Warrant Agreement.

 

8.4.2       Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company
agrees to indemnify the Warrant Agent and hold it harmless against any and all liabilities, including judgments, costs and
reasonable counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Warrant Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct or bad faith.

 

8.4.3       Exclusions.
The Warrant Agent shall have no responsibility with respect to the validity of this Warrant Agreement or with respect to the validity
or execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of
any covenant or condition contained in this Warrant Agreement or in any Warrant; nor shall it be responsible to make any adjustments
required under the provisions of Section 4 hereof or responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment; nor shall it, by any act hereunder, be deemed to
make any representation or warranty as to the authorization or reservation of any Common Shares to be issued pursuant to this Warrant
Agreement or any Warrant or as to whether any Common Shares will when issued be valid and fully paid and non-assessable.

 

8.5         Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Warrant Agreement and agrees to perform the
same upon the terms and conditions herein set forth and, among other things, shall account promptly to the Company with respect
to Warrants exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase
of the Company’s Common Shares through the exercise of Warrants.

 

    	 	13	 

     

    

 

9.           Miscellaneous
Provisions.

 

9.1          Successors.
All the covenants and provisions of this Warrant Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.

 

9.2          Notices.
Any notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by the Registered
Holder of any Warrant to or on the Company shall be delivered by hand or sent by registered or certified mail or overnight courier
service, addressed (until another address is filed in writing by the Company with the Warrant Agent) as follows:

 

Insurance Income Strategies Ltd.

Canon’s Court, 22 Victoria Street

Hamilton, HM12 Bermuda

Attention: Thomas C. Heise

 

and

 

Winston & Strawn, LLP

200 Park Avenue

New York, NY 10166

Fax: (215) 963-5001

Attention: Joel L. Rubinstein and Elliott M. Smith

 

Any notice, statement or demand authorized
by this Warrant Agreement to be given or made by the Registered Holder of any Warrant or by the Company to or on the Warrant Agent
shall be delivered by hand or sent by registered or certified mail or overnight courier service, addressed (until another address
is filed in writing by the Warrant Agent with the Company), as follows:

 

V Stock Transfer, LLC

18 Lafayette Place

Woodmere, New York 11598

 

Any notice, sent pursuant to this Warrant
Agreement shall be effective, if delivered by hand, upon receipt thereof by the party to whom it is addressed, if sent by overnight
courier, on the next business day of the delivery to the courier, and if sent by registered or certified mail on the third day
after registration or certification thereof

 

9.3          Applicable
Law. The validity, interpretation, and performance of this Warrant Agreement and of the Warrants shall be governed in
all respects by the laws of the State of New York, without giving effect to conflict of law principles that would result in the
application of the substantive laws of another jurisdiction. The Company and the Warrant Agent hereby agree that any action, proceeding
or claim against either of them arising out of or relating in any way to this Warrant Agreement shall be brought and enforced in
the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclusive. The Company and the Warrant Agent hereby waive any objection
to such exclusive jurisdiction and that such courts represent an inconvenient forum.

 

    	 	14	 

     

    

 

9.4          Persons
Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied
from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other
than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Warrant
Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises,
and agreements contained in this Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto and their
successors and assigns and of the Registered Holders of the Warrants.

 

9.5          Examination
of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office
of the Warrant Agent in the Borough of Manhattan, City and State of New York, for inspection by the Registered Holder of any Warrant.
The Warrant Agent may require any such Registered Holder to submit his, her or its Warrant for inspection.

 

9.6         Counterparts-
Facsimile Signatures. This Warrant Agreement may be executed in any number of counterparts, and each of such counterparts
shall, for all purposes, be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.
Facsimile signatures shall constitute original signatures for all purposes of this Warrant Agreement.

 

9.7         Effect
of Headings. The section headings herein are for convenience only and are not part of this Warrant Agreement and shall
not affect the interpretation thereof

 

9.8         Amendments.
This Warrant Agreement and any Warrant certificate may be amended by the parties hereto by executing a supplemental warrant agreement
(a “Supplemental Agreement”), without the consent of any of the Warrant Holders, for the purpose of (i) reducing
the exercise price of the Class A Warrants and/or the Class B Warrants at the Company’s discretion, (ii) curing any ambiguity,
or curing, correcting or supplementing any defective provision contained herein, or making any other provisions with respect to
matters or questions arising under this Warrant Agreement that is not inconsistent with the provisions of this Warrant Agreement
or the Warrant certificates, (iii) evidencing the succession of another corporation to the Company and the assumption by any such
successor of the covenants of the Company contained in this Warrant Agreement and the Warrants, (iv) evidencing and providing for
the acceptance of appointment by a successor Warrant Agent with respect to the Warrants, (v) adding to the covenants of the Company
for the benefit of the Registered Holders or surrendering any right or power conferred upon the Company under this Warrant Agreement,
or (vi) amending this Warrant Agreement and the Warrants in any manner that the Company may deem to be necessary or desirable and
that will not adversely affect the interests of the Registered Holders in any material respect. All other modifications or amendments
to this Warrant Agreement, including any amendment to increase the Warrant Price or shorten the Exercise Period, shall require
the written consent of the Registered Holders of a majority of the then outstanding Warrants; provided however, that (i) if such
amendment relates only to the Class A Warrants and not the Class B Warrants, then such amendment will require the written consent
of the Registered Holders of a majority of the then outstanding Class A Warrants and (ii) if such amendment relates only to the
Class B Warrants and not the Class A Warrants, then such amendment will require the written consent of the Registered Holders of
a majority of the then outstanding Class B Warrants. Notwithstanding the foregoing, the Company may extend the duration of the
Exercise Period in accordance with Section 3.2 without such consent.

 

9.9          Severability.
This Warrant Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall
not affect the validity or enforceability of this Warrant Agreement or of any other term or provision hereof. Furthermore, in lieu
of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant
Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

[SIGNATURE PAGE
FOLLOWS]

 

    	 	15	 

     

    

 

IN WITNESS WHEREOF, this Warrant Agreement
has been duly executed by the parties hereto as of the day and year first above written.

 

	 	INSURANCE INCOME STRATEGIES LTD.
	 	 	 
	 	By:	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:
	 	 	 
	 	V STOCK TRANSFER, LLC
	 	 	 
	 	By:	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:

 

[SIGNATURE PAGE
TO THE WARRANT AGREEMENT]

 

     

     

    

 

EXHIBIT A 

 

SPECIMEN CLASS A WARRANT CERTIFICATE

 

	NUMBER	 	[ ] WARRANTS
	 	 	 
	WA-	 	 

 

(THIS WARRANT WILL BE VOID IF NOT EXERCISED
PRIOR TO 5:00 P.M.

NEW YORK CITY TIME, FIVE YEARS FROM THE
CLOSING DATE OF THE COMPANY’S INITIAL

PUBLIC OFFERING)

 

INSURANCE INCOME STRATEGIES, LTD.

 

CUSIP [____]

 

CLASS A WARRANT

 

THIS WARRANT CERTIFIES THAT, for value received , or registered
agents, is the registered holder of a Warrant or Warrants expiring on a date which is five years from the closing date (the “Warrant”)
of the Company’s initial public offering (the “Offering”), to purchase one fully paid and non-assessable share
(the “Warrant Shares”), of common stock, par value $0.001 per share (the “Common Shares”), of Insurance
Income Strategies Ltd., a Bermuda exempted company (the “Company”), for each Warrant evidenced by this Warrant Certificate.
This Warrant Certificate is subject to and shall be interpreted under the terms and conditions of the Warrant Agreement (as defined
below).

 

The Warrant entitles the holder thereof
to purchase from the Company, from time to time, in whole or in part, commencing upon the date when the Company’s units issued
in the Offering detach and the Common Shares, the Warrant and the Class B warrant of the Company begin to trade separately, such
number of Warrant Shares at the price of $10.00 per share (the “Warrant Price”), upon surrender of this Warrant Certificate
and payment of the Warrant Price at the office or agency of V Stock Transfer, LLC (the “Warrant Agent”), such payment
to be made subject to the conditions set forth herein and in the Warrant Agreement, dated February [ ], 2018, between the Company
and the Warrant Agent (the “Warrant Agreement”). In no event shall the registered holder(s) of this Warrant be entitled
to receive a net-cash settlement in lieu of physical settlement in Warrant Shares of the Company. The Warrant Agreement provides
that, upon the occurrence of certain events, the Warrant Price and the number of Warrant Shares purchasable hereunder, set forth
on the face hereof, may be adjusted, subject to certain conditions. The term Warrant Price as used in this Warrant Certificate
refers to the price per Warrant Share at which Warrant Shares may be purchased at the time the Warrant is exercised.

 

     

     

    

 

This Warrant will expire on the date first
referenced above if it is not exercised prior to such date by the registered holder pursuant to the terms of the Warrant Agreement
or if it is not redeemed by the Company prior to such date.

 

No fraction of a Share will be issued upon
any exercise of a Warrant. If, upon exercise of a Warrant, a holder would be entitled to receive a fractional interest in a Share,
the Company will, upon exercise, issue or cause to be issued only the largest whole number of Warrant Shares issuable on such exercise
(and such fraction of a Share will be disregarded).

 

Upon any exercise of the Warrant for less
than the total number of full Warrant Shares provided for herein, there shall be issued to the registered holder(s) hereof or its
assignee(s) a new Warrant Certificate covering the number of Warrant Shares for which the Warrant has not been exercised.

 

Warrant Certificates, when surrendered
at the office or agency of the Warrant Agent by the registered holder(s) hereof in person or by attorney duly authorized in writing,
may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service
charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of
Warrants.

 

Upon due presentment for registration of
transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant Certificate or Warrant Certificates
of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this
Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any applicable tax
or other governmental charge.

 

The Company and the Warrant Agent may deem
and treat the registered holder(s) as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership
or other writing hereon made by anyone) for the purpose of any exercise hereof, of any distribution to the registered holder(s),
and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

This Warrant does not entitle the registered
holder(s) to any of the rights of a shareholder of the Company.

 

At any time prior to the Warrant’s
expiration date, the Company reserves the right to redeem the Warrant, with a notice of redemption in writing to the holder(s)
of record of the Warrant, giving 30 days’ notice of such redemption; provided that the last reported sale price of a Common
Share has been equal to or greater than $14.00 (subject to adjustment for splits, dividends, recapitalizations and other similar
events) for any twenty (20) trading days within a thirty (30) consecutive trading day period ending on the third business day prior
to the date on which notice of redemption is given; provided that a registration statement under the Act with respect to the Warrant
Shares is effective and a current prospectus is available for use by the registered holders hereof during the thirty (30) consecutive
trading day period. The redemption price of the Warrants is $0.01 per Warrant.

 

     

     

    

 

If the foregoing conditions are satisfied
and the Company calls the Warrant for redemption, each holder will then be entitled to exercise his, her or its Warrant prior to
the date scheduled for redemption. Any Warrant either not exercised or tendered back to the Company by the end of the date specified
in the notice of redemption shall be canceled on the books of the Company and have no further value except for the $0.01 redemption
price.

 

	COUNTERSIGNED:	 
	V STOCK TRANSFER, LLC	 
	WARRANT AGENT	 
	 	 
	BY:	 
	AUTHORIZED OFFICER	 
	 	 
	DATED:	 
	 	 
	(Signature)	 
	CHIEF EXECUTIVE OFFICER	 
	 	 
	(Seal)	 
	 	 
	(Signature)	 
	SECRETARY	 

 

     

     

    

 

[REVERSE OF CERTIFICATE]

 

SUBSCRIPTION FORM

 

To Be Executed by the Registered Holder(s)
in Order to Exercise Warrants

 

The undersigned hereby irrevocably elects
to exercise the right, represented by this Warrant Certificate, to receive Common Shares in accordance with the terms of this Warrant
Certificate and pursuant to the method selected below. Capitalized terms used herein and not otherwise defined have the respective
meanings set forth in the Warrant Agreement. PLEASE CHECK THE APPLICABLE METHOD OF PAYMENT:

 

	 ̈ 	a “Cash Exercise” with respect to Warrant Shares; or
	 	 
	 ̈ 	a “Cashless Exercise” with respect to Warrant Shares because on the date of this exercise, there is no effective registration statement registering the Warrant Shares, or the prospectus contained therein is not available for the resale of the Warrant Shares, in which event the Company shall deliver to the registered holder(s) Common Shares pursuant to Section 3.3.2 of the Warrant Agreement. 

 

The undersigned requests that a certificate for such shares
be registered in the name(s) of

 

	(PLEASE TYPE OR PRINT NAME(S) AND ADDRESS) 
	 
	 
	 
	 
	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER(S))

 

	and be delivered to	 
	 	(PLEASE PRINT OR TYPE NAME(S) AND ADDRESS)

 

and, if such number of Warrants shall not be all the Warrants
evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the name
of, and delivered to, the registered holder(s) at the address(es) stated below: 

 

     

     

    

 

Dated: 

 

	 	 
	(SIGNATURE(S)) 	 
	 	 
	 	 
	(ADDRESS(ES))	 
	 	 
	 	 
	(TAX IDENTIFICATION NUMBER(S))	 

 

ASSIGNMENT

 

To Be Executed by the Registered Holder
in Order to Assign Warrants

 

For Value Received, hereby sell(s), assign(s), and transfer(s)
unto

 

	 	 
	(PLEASE TYPE OR PRINT NAME(S) AND ADDRESS(ES))	 
	 	 
	 	 
	 	 
	 	 
	 	 
	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER(S)) 	 

 

	and to be delivered to	 	 
	 	 	 
	 	(PLEASE PRINT OR TYPE NAME(S) AND ADDRESS(ES))	 

 

	 	 
	 	 
	(SOCIAL SECURITY OR TAX

IDENTIFICATION NUMBER(S)) 	 

 

     

     

    

 

of the Warrants represented by this Warrant Certificate, and
hereby irrevocably constitute and appoint Attorney to transfer this Warrant Certificate on the books of the Company, with full
power of substitution in the premises.

 

Dated:

 

	 	 
	(SIGNATURE(S))	 

 

NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND
WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.

 

Signature(s) Guaranteed:

 

	By	 	 

 

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

     

     

    

 

EXHIBIT B

 

SPECIMEN CLASS B WARRANT CERTIFICATE

 

	NUMBER 	 	[ ] WARRANTS
	 	 	 
	WA- 	 	 

 

(THIS WARRANT WILL BE VOID IF NOT EXERCISED
PRIOR TO 5:00 P.M.

NEW YORK CITY TIME, SEVEN YEARS FROM THE
CLOSING DATE OF THE COMPANY’S INITIAL

PUBLIC OFFERING)

 

INSURANCE INCOME STRATEGIES, LTD.

 

CUSIP [____]

 

CLASS B WARRANT

 

THIS WARRANT CERTIFIES THAT, for value received , or registered
agents, is the registered holder of a Warrant or Warrants expiring on a date which is seven years from the closing date (the “Warrant”)
of the Company’s initial public offering (the “Offering”), to purchase one fully paid and non-assessable share
(the “Warrant Shares”), of common stock, par value $0.001 per share (the “Common Shares”), of Insurance
Income Strategies Ltd., a Bermuda exempted company (the “Company”), for each Warrant evidenced by this Warrant Certificate.
This Warrant Certificate is subject to and shall be interpreted under the terms and conditions of the Warrant Agreement (as defined
below).

 

The Warrant entitles the holder thereof
to purchase from the Company, from time to time, in whole or in part, commencing upon the date when the Company’s units issued
in the Offering detach and the Common Shares, the Warrant and the Class A warrant of the Company begin to trade separately, such
number of Warrant Shares at the price of $11.00 per share (the “Warrant Price”), upon surrender of this Warrant Certificate
and payment of the Warrant Price at the office or agency of V Stock Transfer, LLC (the “Warrant Agent”), such payment
to be made subject to the conditions set forth herein and in the Warrant Agreement, dated February [ ], 2018, between the Company
and the Warrant Agent (the “Warrant Agreement”). In no event shall the registered holder(s) of this Warrant be entitled
to receive a net-cash settlement in lieu of physical settlement in Warrant Shares of the Company. The Warrant Agreement provides
that, upon the occurrence of certain events, the Warrant Price and the number of Warrant Shares purchasable hereunder, set forth
on the face hereof, may be adjusted, subject to certain conditions. The term Warrant Price as used in this Warrant Certificate
refers to the price per Warrant Share at which Warrant Shares may be purchased at the time the Warrant is exercised.

 

     

     

    

 

This Warrant will expire on the date first
referenced above if it is not exercised prior to such date by the registered holder pursuant to the terms of the Warrant Agreement
or if it is not redeemed by the Company prior to such date.

 

No fraction of a Share will be issued upon
any exercise of a Warrant. If, upon exercise of a Warrant, a holder would be entitled to receive a fractional interest in a Share,
the Company will, upon exercise, issue or cause to be issued only the largest whole number of Warrant Shares issuable on such exercise
(and such fraction of a Share will be disregarded).

 

Upon any exercise of the Warrant for less
than the total number of full Warrant Shares provided for herein, there shall be issued to the registered holder(s) hereof or its
assignee(s) a new Warrant Certificate covering the number of Warrant Shares for which the Warrant has not been exercised.

 

Warrant Certificates, when surrendered
at the office or agency of the Warrant Agent by the registered holder(s) hereof in person or by attorney duly authorized in writing,
may be exchanged in the manner and subject to the limitations provided in the Warrant Agreement, but without payment of any service
charge, for another Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of
Warrants.

 

Upon due presentment for registration of
transfer of the Warrant Certificate at the office or agency of the Warrant Agent, a new Warrant Certificate or Warrant Certificates
of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this
Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any applicable tax
or other governmental charge.

 

The Company and the Warrant Agent may deem
and treat the registered holder(s) as the absolute owner(s) of this Warrant Certificate (notwithstanding any notation of ownership
or other writing hereon made by anyone) for the purpose of any exercise hereof, of any distribution to the registered holder(s),
and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

This Warrant does not entitle the registered
holder(s) to any of the rights of a shareholder of the Company.

 

At any time prior to the Warrant’s
expiration date, the Company reserves the right to redeem the Warrant, with a notice of redemption in writing to the holder(s)
of record of the Warrant, giving 30 days’ notice of such redemption; provided that the last reported sale price of a Common
Share has been equal to or greater than $14.00 (subject to adjustment for splits, dividends, recapitalizations and other similar
events) for any twenty (20) trading days within a thirty (30) consecutive trading day period ending on the third business day prior
to the date on which notice of redemption is given; provided that a registration statement under the Act with respect to the Warrant
Shares is effective and a current prospectus is available for use by the registered holders hereof during the thirty (30) consecutive
trading day period. The redemption price of the Warrants is $0.01 per Warrant.

 

     

     

    

 

If the foregoing conditions are satisfied
and the Company calls the Warrant for redemption, each holder will then be entitled to exercise his, her or its Warrant prior to
the date scheduled for redemption. Any Warrant either not exercised or tendered back to the Company by the end of the date specified
in the notice of redemption shall be canceled on the books of the Company and have no further value except for the $0.01 redemption
price.

 

	COUNTERSIGNED:	 
	V STOCK TRANSFER, LLC	 
	WARRANT AGENT	 
	 	 
	BY:	 
	AUTHORIZED OFFICER	 
	 	 
	DATED:	 
	 	 
	(Signature)	 
	CHIEF EXECUTIVE OFFICER	 
	 	 
	(Seal)	 
	 	 
	(Signature)	 
	SECRETARY	 

 

     

     

    

 

[REVERSE OF CERTIFICATE]

 

SUBSCRIPTION FORM

 

To Be Executed by the Registered Holder(s)
in Order to Exercise Warrants

 

The undersigned hereby irrevocably elects
to exercise the right, represented by this Warrant Certificate, to receive Common Shares in accordance with the terms of this Warrant
Certificate and pursuant to the method selected below. Capitalized terms used herein and not otherwise defined have the respective
meanings set forth in the Warrant Agreement. PLEASE CHECK THE APPLICABLE METHOD OF PAYMENT:

 

	 ̈ 	a “Cash Exercise” with respect to Warrant Shares; or
	 	 
	
         ̈

         
	a “Cashless Exercise” with respect to Warrant Shares because on the date of this exercise, there is no effective registration statement registering the Warrant Shares, or the prospectus contained therein is not available for the resale of the Warrant Shares, in which event the Company shall deliver to the registered holder(s) Common Shares pursuant to Section 3.3.2 of the Warrant Agreement. 

 

The undersigned requests that a certificate for such shares
be registered in the name(s) of

 

 

	(PLEASE TYPE OR PRINT NAME(S) AND ADDRESS) 
	 
	 
	 
	 
	 
	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER(S)) 

 

	and be delivered to	 
	 	 
	 	(PLEASE PRINT OR TYPE NAME(S) AND ADDRESS)

 

and, if such number of Warrants shall not be all the Warrants
evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the name
of, and delivered to, the registered holder(s) at the address(es) stated below: 

 

     

     

    

 

Dated: 

 

	 	 
	(SIGNATURE(S)) 	 
	 	 
	 	 
	(ADDRESS(ES))	 
	 	 
	 	 
	(TAX IDENTIFICATION NUMBER(S)) 	 

 

ASSIGNMENT

 

To Be Executed by the Registered Holder
in Order to Assign Warrants

 

For Value Received, hereby sell(s), assign(s), and transfer(s)
unto

 

 

	(PLEASE TYPE OR PRINT NAME(S) AND ADDRESS(ES))	 
	 	 
	 	 
	 	 
	 	 
	 	 
	(SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER(S)) 	 

 

	and to be delivered to	 	 
	 	 	 
	 	(PLEASE PRINT OR TYPE NAME(S) AND ADDRESS(ES))	 

 

     

     

    

 

	 	 
	 	 
	 	 
	(SOCIAL SECURITY OR TAX

IDENTIFICATION NUMBER(S)) 	 

 

of the Warrants represented by this Warrant Certificate, and
hereby irrevocably constitute and appoint Attorney to transfer this Warrant Certificate on the books of the Company, with full
power of substitution in the premises.

 

Dated:

 

	 	 
	(SIGNATURE(S))	 

 

NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND
WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.

 

Signature(s) Guaranteed:

 

	By	 	 

 

THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).Exhibit 10.1

 

CONFIDENTIAL TREATMENT REQUESTED FOR PORTIONS
OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED HAVE BEEN MARKED WITH THREE ASTERISKS [***]
AND A FOOTNOTE INDICATING “CONFIDENTIAL TREATMENT REQUESTED”. MATERIAL OMITTED HAS BEEN FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION. 

 

QUOTA SHARE RETROCESSION AGREEMENT

 

by and between

 

IRIS REINSURANCE LTD. acting
in respect of its segregated account designated AS “KWQS”

 

(the “Company”)

 

and

 

ARTEX SAC LIMITED ACTING IN RESECT OF IIS
CCG SEGREGATED ACCOUNT

 

(as Reinsurer)

 

Dated January 10, 2018

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I CESSION AND REINSURANCE	2
	 	 
	ARTICLE II TERM AND TERMINATION	3
	 	 
	ARTICLE III REINSURANCE LIMITS	3
	 	 
	ARTICLE IV EXCLUSIONS	4
	 	 
	ARTICLE V COLLATERAL	4
	 	 
	ARTICLE VI LIMITED RECOURSE AND BERMUDA REGULATIONS	5
	 	 
	ARTICLE VII FOLLOW THE FORTUNES	5
	 	 
	ARTICLE VIII COMMISSION AND OTHER DEDUCTIONS	6
	 	 
	ARTICLE IX REPORTS AND REMITTANCES	6
	 	 
	ARTICLE X ACCESS TO RECORDS	7
	 	 
	ARTICLE XI ERRORS AND OMISSIONS	7
	 	 
	ARTICLE XII MEDIATION; ARBITRATION	7
	 	 
	ARTICLE XIII CONFIDENTIALITY	9
	 	 
	ARTICLE XIV NOTICES	10
	 	 
	ARTICLE XV REPRESENTATIONS, WARRANTIES AND COVENANTS	11
	 	 
	ARTICLE XVI CURRENCY	13
	 	 
	ARTICLE XVII MISCELLANEOUS PROVISIONS	13

 

    	 	 	 

     

    

 

QUOTA SHARE RETROCESSION AGREEMENT

 

This QUOTA SHARE RETROCESSION
AGREEMENT (this “Reinsurance Agreement”), dated as of January 10, 2018 (the “Closing Date”),
and to become effective as of the Effective Date (defined below), is made and entered into by and between Iris Reinsurance Ltd.
(“Iris Re”), a Bermuda exempted company licensed as Class 3 insurer under the Insurance Act 1978 of Bermuda,
as amended, and registered as a segregated accounts company under the Bermuda Segregated Accounts Companies Act 2000, as amended
(the “SAC Act”), acting in respect of its segregated account designated as “KWQS” (the “Company”),
and Artex SAC Limited (“Artex SAC”), a Bermuda exempted company licensed as a Class 3 and Class C Long-Term insurer
and registered under the SAC Act, acting in respect of its segregated account designated as IIS CCG Segregated Account (the “Reinsurer”).

 

WITNESSETH:

 

WHEREAS, the Company has
entered into, and may enter into in the future during the term of this Reinsurance Agreement, certain industry loss warranties,
derivative contracts, reinsurance contracts, treaties and/or agreements (collectively, the “Underlying Reinsurance Agreements”)
with various contract counterparties and ceding companies (each of which that is currently in force is specifically identified
on Schedule A attached hereto (including, without limitation, anticipated premiums and aggregate limits of liability), whereby
the Reinsurer has and/or will assume and reinsure risks and liabilities through a segregated account of the Company;

 

WHEREAS, subject to the
terms, conditions and limitations of this Reinsurance Agreement, the Company desires to cede to the Reinsurer, and the Reinsurer
desires to accept and assume, a quota share of such risks and liabilities arising out of the Underlying Reinsurance Agreements;

 

WHEREAS, the retrocessional
coverage provided hereunder will be effected through a fully collateralized reinsurance structure;

 

WHEREAS, Iris Re established
the Company for the sole and exclusive purpose of effectuating the transactions contemplated by the Underlying Reinsurance Agreements
and this Reinsurance Agreement, and the Company shall have no liabilities to any other person or entity other than to the various
contract counterparties and ceding companies pursuant to the Underlying Reinsurance Agreements and the Reinsurer hereunder;

 

WHEREAS, the Reinsurer
will transfer funds equal to Reinsurer Obligations (as defined below) to a bank account designated by the Company for the custody,
maintenance and administration of the collateral provided by the Reinsurer hereunder;

 

WHEREAS, the parties acknowledge
and agree that the intent of this Reinsurance Agreement is to transfer risk on Underlying Reinsurance Agreements that cover risks
and liabilities on an industry loss and/or parametric basis, and that the assumption and reinsurance of any indemnity-based or
other coverage by the Reinsurer will be at the sole discretion of the Reinsurer;

 

    	 	 	 

     

    

 

WHEREAS, the parties acknowledge
and agree that any and all coverage of losses (collectively, the “Excluded CAT Losses”) that cover, whether
directly or indirectly, losses, risks and/or liabilities that were incurred, sustained, suffered or incurred in any way, whether
directly or indirectly prior to the Effective Date (defined below), including, without limitation, those losses covered under Underlying
Reinsurance Agreements caused by, related to or otherwise connected with certain natural catastrophes designated by the World Meteorological
Organization as “Hurricane Harvey” (including the collateral and supplemental damage created thereby) and “Hurricane
Irma” (including the collateral and supplemental damage created thereby) shall be expressly excluded from the retrocessional
coverage provided by the Reinsurer hereunder; and

 

WHEREAS, the
Company and the Reinsurer desire to set forth their respective rights and obligations in relation to the cession of liabilities
by the Company to the Reinsurer hereunder.

 

NOW, THEREFORE, for and
in consideration of the recitals and the promises and the mutual agreements hereinafter set forth, the parties hereto agree as
follows:

 

ARTICLE
I

 

CESSION
AND REINSURANCE

 

		1.1	Reinsurer Obligations. The Company hereby cedes to the Reinsurer, and the Reinsurer hereby
accepts, reinsures and assumes, in each case, pursuant to the terms, conditions, limits and exclusions of this Reinsurance Agreement,
the quota share percentage (as set forth on Annex A, the “Quota Share”) of the Company’s liabilities
and obligations arising under the Underlying Reinsurance Agreements, exclusive of the premiums earned and losses incurred prior
to the Effective Date from the Underlying Reinsurance Agreements, subject to the terms, conditions, limits and exclusions thereunder
(the “Reinsurer Obligations”) during the term of this Reinsurance Agreement. The Quota Share will be variable
and recalculated on a monthly basis. At any time during the term of this Reinsurance Agreement, the aggregate of all Reinsurer
Obligations attributable to the Company’s obligation to pay losses shall not, under any circumstances, exceed the Collateral
Amount (defined below).

 

		1.2	Amendment of Underlying Reinsurance Agreements. The Company shall not amend, restate, modify
or supplement any of the Underlying Reinsurance Agreements to the extent that any such amendment, restatement, modification or
supplement could reasonably be expected to materially and adversely affect the Reinsurer in a manner disproportionately disadvantageous
to the Reinsurer relative to the impact to the Company of such amendment, restatement, modification or supplement hereunder without
the prior written consent of the Reinsurer (which consent shall not be unreasonably withheld, conditioned or delayed).

 

    	 	2	 

     

    

 

ARTICLE
II

 

TERM
AND TERMINATION

 

		2.1	Term. This Reinsurance Agreement shall remain in full force and effect from and including
the Effective Date through and including the scheduled termination date of December 31, 2020 (unless otherwise terminated pursuant
to Section 2.2. For the purposes of this Reinsurance Agreement, the “Effective Date” shall mean the first
(1st) Business Day following the satisfaction of the latest to occur of the following conditions precedent: (i) the closing of
the initial public offering (the “IPO”) of Insurance Income Strategies Ltd., a Bermuda reinsurance holding company
and ultimate parent corporation of the Reinsurer; and (ii) the funding of the Reinsurer Obligations to the designated bank account
as collateral. For the avoidance of doubt, until the foregoing conditions precedent are satisfied, this Reinsurance Agreement shall
not become effective and the rights and obligations established hereby shall be of no force or effect.

 

		2.2	Termination. This Reinsurance Agreement shall terminate upon the earlier of (i) December
31, 2020 or (ii) the date specified in a mutual written agreement executed by the parties. Such termination shall be effected through
a commutation of this Reinsurance Agreement and the rights and obligations of the parties hereunder. In consideration of the execution
of a mutually agreed commutation agreement and the payment of a commutation amount mutually agreed to in good faith by the parties,
the Reinsurer and the Company shall be released, without the need for the execution or delivery of any other documents, from all
obligations and liabilities under this Reinsurance Agreement.

 

		2.3	Effect of Termination. In the event of the termination of this Reinsurance Agreement, the
Reinsurer shall remain liable as of the date of termination with respect to its Reinsurer Obligations for each of the Underlying
Reinsurance Agreements of the Company in force prior to the termination of this Reinsurance Agreement until the natural expiration
date and final disposition of all of the Company’s obligations and liabilities under such Underlying Reinsurance Agreements.

 

ARTICLE
III

 

REINSURANCE
LIMITS

 

		3.1	Aggregate Limit. The Reinsurer shall indemnify, reimburse and hold harmless the Company
for its Quota Share of losses under the Underlying Reinsurance Agreements (subject to the terms, conditions, exclusions and limits
of such Underlying Reinsurance Agreements), subject at all times to an aggregate maximum exposure equal to the Collateral Amount
(defined below), which shall be at all times, and from time to time, the Reinsurer’s aggregate limit under this Reinsurance
Agreement.

 

    	 	3	 

     

    

 

		3.2	Limited Recourse applies. It
                                         is understood and agreed that the provisions of Article VI, Limited Recourse and Bermuda
                                         Regulation, shall override the provision of this Article II as regards to the maximum
                                         liability of the Reinsurer.

 

ARTICLE
IV

 

EXCLUSIONS

 

		4.1	This Reinsurance Agreement shall be subject to the terms, conditions and exclusions contained in
the Underlying Reinsurance Agreements comprising the subject business reinsured hereunder. In addition, this Reinsurance Agreement
shall not cover, and shall expressly exclude: (i) Excluded CAT Losses and (ii) liabilities arising under any reinsurance contract,
agreement, treaty and/or other arrangement between the Company and any ceding company other than an industry loss warranty and/or
parametric reinsurance agreement or derivative where loss is calculated on an indexed rather than actual basis, unless and to the
extent such alternative contract, agreement, treaty or other arrangement has been expressly accepted and assumed hereunder by the
Reinsurer in writing, (iii) Extra-Contractual Obligations (defined below) and (iv) Ex Gratia Payments (defined below). For the
purposes of this Reinsurance Agreement, “Extra-Contractual Obligations” shall mean those liabilities not covered
under any other provision of this Reinsurance Agreement which arise under the Underlying Reinsurance Agreements as a result of
the negligent or fraudulent mishandling of any claim by the Company thereunder, actual negligence by the Company related to any
loss payments on the Underlying Reinsurance Agreements, the negligent or fraudulent rejection or settlement of any disputed claim
thereunder and/or any payments made in excess of the amounts actually owing under the terms and conditions of such Underlying Reinsurance
Agreements. “Ex-Gratia Payment” shall mean any payment, concession or accommodation made by the Company to a
ceding company that the Company would not otherwise be obligated to make under the terms and conditions of an Underlying Reinsurance
Agreement.

 

ARTICLE
V

 

COLLATERAL

 

		5.1	Collateral. On or prior to the Effective Date, the Reinsurer shall deposit, transfer or
otherwise deliver as collateral to the designated bank account of the Company funds, securities and/or other assets, free and clear
of any liens, security interests or other encumbrances, with a fair market value in an amount to equal to the Reinsurer Obligations
in respect of the Company’s then outstanding obligations under the Underlying Reinsurance Agreements then in effect. The
Reinsurer acknowledges that the Company may use such transferred collateral to fund its obligations for the payment of the Reinsurer’s
Quota Share under the Underlying Reinsurance Agreements by transferring the collateral provided by Reinsurer to trust accounts
(“Trust Accounts”) established by the Company in regards to Underlying Reinsurance Agreements. Thereafter, all payments
of Premium (as defined in Article VIII) by the Company to the Reinsurer shall be deposited, without set-off, into the Trust Accounts.
At any time and from time to time the fair market value of the current balance of assets transferred by Reinsurer to the Company
for purposes of collateralizing the Reinsurer Obligations (whether held in designated bank account of the Company or the Trust
Accounts) as well as any balance held from deposit of Premium (as defined below) in the Trust Accounts shall be the “Collateral
Amount”.

 

    	 	4	 

     

    

 

		5.2	Reserved.

 

		5.3	Collateral Distributions. Upon the termination, expiration or commutation of this Reinsurance
Agreement, and the release of the Reinsurer as contemplated by Section 2.2 & 2.3, subject to the mutual agreement of
the parties contained in Section 2.2, the Reinsurer shall be entitled to receive any remaining Collateral Amount.

 

ARTICLE
VI

 

LIMITED
RECOURSE AND BERMUDA REGULATIONS

 

		6.1	The liability of the Reinsurer for the performance and discharge of all of its obligations, however
they may arise, in relation to this Reinsurance Agreement (together “Obligations” for purposes of this Article),
shall be limited to and payable solely from the proceeds of liquidation and realization of the assets held by the Company as Collateral
Amount and accordingly there shall be no recourse to any other assets of the Reinsurer, whether or not allocated to any other account
of Reinsurer. In the event that the proceeds of liquidation and realization of the assets held by the Company as Collateral Amount
are insufficient to meet all Obligations, any Obligations remaining after the application of such proceeds shall be extinguished,
and the parties hereto shall be released, without the need for the execution or delivery of any other documents, from all obligations
and liabilities under this Reinsurance Agreement.

 

ARTICLE
VII

 

FOLLOW
THE FORTUNES

 

		7.1	All liabilities
                                         and obligations of the Company of any nature arising out of, relating to or otherwise
                                         arising under the terms of and within the limits of, the Underlying Reinsurance Agreements
                                         that are binding on the Company pursuant to the Underlying Reinsurance Agreements shall
                                         be binding upon the Reinsurer, the intent of this Reinsurance Agreement being that, subject
                                         to Section 1.2 and the other terms, conditions and limitations of this Reinsurance
                                         Agreement, the Reinsurer shall in every case “follow the fortunes” of the
                                         Company in respect of the risks and obligations the Company has accepted under the Underlying
                                         Reinsurance Agreements.

 

    	 	5	 

     

    

 

ARTICLE
VIII

 

COMMISSION
AND OTHER DEDUCTIONS

 

		8.1	As consideration for the reinsurance
                                         coverage hereunder, the Company shall pay to the Reinsurer the Quota Share of all reinsurance
                                         premiums received by the Company under the terms of the Underlying Reinsurance Agreements
                                         (collectively with all investment income, dividends and other amounts earned on or distributed
                                         in respect of assets in the Trust Accounts and, without duplication, the earned on or
                                         distributed in respect of the portion of assets in any other trust account established
                                         by the Company or Iris Re allocable to the Collateral Amount provided by Reinsurer, “Premium”).
                                         Premium under this Reinsurance Agreement shall be paid by the Company upon termination
                                         per the directions of the Reinsurer, and each and every Premium of the Underlying Reinsurance
                                         Agreements shall increase the Collateral Amount.

 

		8.2	Beginning December 31, 2018, the Reinsurer may elect on a quarterly basis to receive payment of
up to 100% of earned Premium with 60 calendar days prior notice. Payment of such amounts shall reduce the Collateral Amount.

 

		8.3	The Company shall charge the Reinsurer
                                         a ceding commission in an amount equal to [***]1% of the Collateral Amount
                                         paid by the Reinsurer (“Ceding Commission”) per annum if the Collateral
                                         Amount is $[***]2 million or less, and [***]3% of the Collateral
                                         Amount if the Collateral Amount exceeds $[***]4 million. The Ceding Commission
                                         is to be calculated on the basis of daily Collateral Amount outstanding and paid on a
                                         quarterly basis at the beginning of each quarter.

 

ARTICLE
IX

 

REPORTS
AND REMITTANCES

 

		9.1	The Company shall prepare and deliver to the Reinsurer periodic statements of account within
seven (7) Business Days following the close of each calendar month during the term of this Reinsurance Agreement, and the Company
shall deliver to the Reinsurer (i) updates with regards to the Underlying Reinsurance Agreements within ten (10) Business Days
following its receipt of any “calculation report” or other material document thereunder and (ii) any other notices,
reports, loss advices and similar material received by the Company in connection with the Underlying Reinsurance Agreements promptly
following receipt thereof by the Company.

 

 

1 Confidential treatment requested.

2 Confidential treatment requested.

3 Confidential treatment requested.

4
Confidential treatment requested.

 

    	 	6	 

     

    

 

ARTICLE
X

 

ACCESS
TO RECORDS

 

		10.1	The Reinsurer or its designated representatives shall have full access to the books and records
of the Company at all reasonable times for the purpose of obtaining information concerning this Reinsurance Agreement or the subject
matter hereof. Upon request of the Reinsurer, at the Reinsurer’s expense, the Company shall (a) supply the Reinsurer
with copies of the whole or any part of such books and records relating to this Reinsurance Agreement or the subject matter hereof
and (b) exercise its rights under the Underlying Reinsurance Agreements to review the books and records or seek additional information
with respect to the Underlying Reinsurance Agreements. Upon the occurrence and during the continuance of any default hereunder
by the Company, the Reinsurer’s rights to access the books and records of the Company shall be unlimited, and any inspection
of such books and records by the Reinsurer shall be at the sole cost and expense of the Company.

 

ARTICLE
XI

 

ERRORS
AND OMISSIONS

 

		11.1	Any inadvertent delays, errors or
                                         omissions made in connection with this Reinsurance Agreement or any transaction hereunder
                                         shall not relieve either party from any liability which would have attached hereunder
                                         had such delay, error or omission not occurred; provided, that such error or omission
                                         is rectified as soon as reasonably possible after discovery.

 

ARTICLE
XII

 

MEDIATION;
ARBITRATION

 

		12.1	Mediation. If a dispute between the Company and the Reinsurer, arising out of the provisions
of this Reinsurance Agreement or concerning its interpretation or validity and whether arising before or after termination of this
Reinsurance Agreement, has not been settled through negotiation, both parties agree to try in good faith to settle such dispute
by nonbinding mediation, before resorting to arbitration.

 

		12.2	Arbitration.

 

		(a)	Resolution of Disputes. As a condition precedent to any right of action arising hereunder,
any dispute not resolved by mediation between the Company and the Reinsurer arising out of the provisions of this Reinsurance Agreement
or concerning its interpretation or validity, whether arising before or after termination of this Reinsurance Agreement, shall
be submitted to arbitration in the manner hereinafter set forth.

 

    	 	7	 

     

    

 

		(b)	Composition of Panel. Unless the parties agree upon a single arbitrator within fifteen (15)
days after the receipt of a notice of intention to arbitrate, all disputes shall be submitted to an arbitration panel composed
of two arbitrators and an umpire chosen in accordance with Section 12.2(c).

 

		(c)	Appointment of Arbitrators. The members of the arbitration panel shall be chosen from disinterested
persons with at least ten (10) years’ experience in the insurance and reinsurance business. The party requesting arbitration
(hereinafter referred to as the “claimant”) shall appoint an arbitrator and give written notice thereof by certified
mail, to the other party (hereinafter referred to as the “respondent”) together with its notice of intention
to arbitrate. Within thirty (30) days after receiving such notice, unless a single arbitrator is agreed upon in accordance with
Section 12.2(b), the respondent shall also appoint an arbitrator and notify the claimant thereof by certified mail. The
parties agree that the arbitrator appointed by the parties need not be neutral. Before instituting a hearing, the two arbitrators
so appointed shall choose an umpire. If, within twenty (20) days after the appointment of the arbitrator chosen by the respondent,
the two arbitrators fail to agree upon the appointment of an umpire, each of them shall nominate three individuals to serve as
umpire, of whom the other shall decline two and the umpire shall be chosen from the remaining two by drawing lots. The name of
the individual first drawn shall be the umpire.

 

		(d)	Failure of Party to Appoint an Arbitrator. If the respondent fails to appoint an arbitrator
within thirty (30) days after receiving a notice of intention to arbitrate, the claimant’s arbitrator shall appoint an arbitrator
on behalf of the respondent, such arbitrator shall then, together with the claimant's arbitrator, choose an umpire as provided
in Section 12.2(c).

 

		(e)	Submission of Dispute to Panel. Within thirty (30) days after the notice of appointment
of all arbitrators, the panel shall meet, and determine a timely period for discovery, discovery procedures and schedules for hearings.

 

		(f)	Procedures Governing Arbitration. All proceedings before the panel shall be informal and
the panel shall not be bound by the formal rules of evidence. The panel shall have the power to fix all procedural rules relating
to the arbitration proceeding. In reaching any decision, the panel shall give due consideration to the customs and usages of the
insurance and reinsurance business.

 

		(g)	Arbitration Award. The arbitration panel shall render its decision within sixty (60) days
after termination of the proceeding, which decision shall be in writing, stating the reasons therefor. The decision of the majority
of the panel shall be final and binding on the parties to the proceeding. In no event, however, will the panel be authorized to
award punitive, exemplary or consequential damages of whatsoever nature.

 

    	 	8	 

     

    

 

		(h)	Cost of Arbitration. Unless otherwise allocated by the panel, each party shall bear the
expense of its own arbitrator and shall jointly and equally bear with the other parties the expense of the umpire and the arbitration.

 

ARTICLE
XIII

 

CONFIDENTIALITY

 

		13.1	Confidential Information. The information, data, statements and other materials provided
by Company or the Reinsurer to the other arising from participation in this Reinsurance Agreement constitute confidential or proprietary
information unless expressly indicated otherwise by the disclosing party (the “Disclosing Party”) in writing
from time to time to the other party (“Confidential Information”). Such Confidential Information is intended
for the sole use of the parties to this Reinsurance Agreement.

 

		13.2	Limits on Disclosure. Each of the parties hereto (as a receiving party, the “Receiving
Party”) agrees, on behalf of itself and its affiliates, agents and representatives, to hold and keep confidential, and
not to disclose to any third party (for the avoidance of doubt, “third party” as used herein shall not include any
affiliates, agents, representatives, reinsurers or retrocessionaires of, or investors in the Receiving Party), any Confidential
Information of the Disclosing Party that it receives or has access to concerning this Reinsurance Agreement or the subject matter
hereof (unless requested or required by relevant insurance regulatory authorities or otherwise compelled to do so by applicable
law); provided that this provision shall not apply to the extent that such Confidential Information was already in the public domain
at the time of disclosure other than as a result of a breach of this Agreement. The Reinsurer further agrees, on behalf of itself
and its affiliates, agents and representatives, that it shall not use any underwriting or related information received from the
Company, except for the sole purpose of analyzing the risks to be ceded to the Reinsurer hereunder or in the application of the
terms of this Reinsurance Agreement. The Receiving Party agrees to abide by any reasonable determination by the Disclosing Party
that any information provided to the Receiving Party constitutes confidential and proprietary information.

 

		13.3	Third-Party Demands for Access. Should a Receiving Party receive a third party demand
pursuant to subpoena, summons, or court or governmental order or request, to disclose Confidential Information that has been provided
by another party to this Reinsurance Agreement, the Receiving Party shall provide the Disclosing Party with written notice of any
subpoena, summons, or court or governmental order or request, promptly upon receipt of the demand and prior to disclosure of such
Confidential Information. Unless the Disclosing Party has given its prior permission to release or disclose the Confidential Information,
the Receiving Party shall not comply with the subpoena prior to the actual date required by the subpoena and, if the Disclosing
Party objects to the release of the Confidential Information, the Receiving Party will take reasonable steps to cooperate with
the Disclosing Party in its efforts to resist release of the Confidential Information. The Disclosing Party shall bear the cost
of resisting such release or disclosure. If a protective order or appropriate remedy is not obtained, the Receiving Party may disclose
only that portion of the Confidential Information that it has been advised by its counsel is legally required to be disclosed.

 

    	 	9	 

     

    

 

ARTICLE
XIV

 

NOTICES

 

Any notice or information to be given, delivered
or provided pursuant to this Reinsurance Agreement to either party shall be in writing and be deemed received, served, delivered
or provided if it is delivered (i) by hand, when delivered in person against written receipt, (ii) by recognized express courier,
when delivered by such service against written or electronic receipt or (iii) by facsimile transmission, on the date of confirmation
of transmission, on the date of transmission, to the following address, facsimile number or e-mail address:

 

		(a)	in the case of the Reinsurer, by giving, delivering or providing the original notice or information
at:

 

Artex SAC Limited

P.O. Box HM 3033

Cumberland House

1 Victoria Street

Hamilton HM NX, Bermuda

Attention: The Board of Directors

Email: Robert.Eastham@artexrisk.bm

Telephone: 441 292 7505

 

With a copy to:

 

IIS Re Ltd.

The Boyle Building

2nd Floor

31 Queen Street

Hamilton HM 11

Bermuda

Attention: Tom Heise, Chief
Executive Officer

 

		(b)	in the case of the Company, by giving, delivering or providing the original notice or information
at:

 

Iris Reinsurance Ltd.

Par-La-Ville Place

14 Par-La-Ville Road

Hamilton HM08

Bermuda

Attention: Peter Yu, Charles Mixon

Tel: +1-441-292-6720

E-mail: peter.yu@cartesiangroup.com; charles.mixon@cartesianre.com;
team@iris-re.com

 

    	 	10	 

     

    

 

With a copy to:

 

Horseshoe Group

Wessex House, 3rd Floor

45 Reid Street

Hamilton HM 12, Bermuda

Attention: Nigel Godfrey

Telephone No.: +1-441-295-8478

E-mail: iris@horseshoe.bm

 

or, in each case, to such other address or
facsimile number and/or for the attention of any other individual and/or copied to any other person designated pursuant to a written
notice provided in accordance with this Article XIII.

 

ARTICLE
XV

 

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

		15.1	Representations, Warranties and Covenants of the Company. The Company
represents, warrants and covenants, as applicable, to the Reinsurer
as follows:

 

		(a)	Representations and Warranties

 

		(i)	Iris Re is duly organized and validly existing under the laws of Bermuda.

 

		(ii)	The Company has all requisite power and authority to enter into each of this Reinsurance Agreement
and the Underlying Reinsurance Agreements, and to perform its obligations hereunder and thereunder. The execution and delivery
by the Company of each of this Reinsurance Agreement and the Underlying Reinsurance Agreements, and the performance by the Company
of its obligations hereunder and thereunder, have been duly authorized. Each of this Reinsurance Agreement and the Underlying Reinsurance
Agreements constitutes a valid and binding obligation of the Company, enforceable against it in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors’ rights and to general equity principles.

 

    	 	11	 

     

    

 

		(iii)	The execution, delivery and performance of each of this Reinsurance Agreement and the Underlying
Reinsurance Agreements will not (A) violate any provision of the memorandum of association or bye-laws of Iris Re; (B) violate,
conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty the right to
terminate, or constitute a default under, any contract or other agreement to which the Company
is a party; (C) violate any order, judgment or decree applicable to the Company;
or (D) be subject to the receipt of any necessary regulatory approval or non-disapproval except as have been obtained and are in
effect on the date hereof, or violate any statute, law or regulation of any jurisdiction applicable to the Company.

 

		(iv)	The individual executing each of this Reinsurance Agreement and the Underlying Reinsurance Agreements
on behalf of the Company is duly authorized to do so.

 

		(b)	Covenants. The Company shall use utmost good faith in all of its dealings with the Reinsurer
and in all of the transactions contemplated hereby.

 

		15.2	Representations, Warranties and Covenants of the Reinsurer. The Reinsurer
represents, warrants and covenants, as applicable, to the Company
as follows:

 

		(a)	Representations and Warranties

 

		(i)	The Reinsurer is duly organized
and validly existing under the laws of its jurisdiction of organization.

 

		(ii)	The Reinsurer has all requisite
power and authority to enter into this Reinsurance Agreement and to perform its obligations hereunder. The execution and delivery
by the Reinsurer of this Reinsurance Agreement and the performance
by the Reinsurer of its obligations hereunder, will be duly
authorized, valid and binding obligations of the Reinsurer
enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

 

    	 	12	 

     

    

 

		(iii)	The execution, delivery and performance of this Reinsurance Agreement will not (A) violate any
provision of the charter or organizational document of the Reinsurer;
(B) violate, conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty
the right to terminate, or constitute a default under, any contract or other agreement to which the Reinsurer
is a party; (C) violate any order, judgment or decree applicable to the Reinsurer;
or (D) be subject to the receipt of any necessary regulatory approval or non-disapproval, or violate any statute, law or regulation
of any jurisdiction applicable to the Reinsurer.

 

		(iv)	The individual executing this Reinsurance Agreement on behalf of the Reinsurer
is duly authorized to do so.

 

		(b)	Covenants. The Reinsurer
shall use utmost good faith in all of its dealings with the Company and in all of the transactions contemplated hereby.

 

		15.3	Remedies.
Remedies with respect to breaches of certain representation, warranties and covenants are as follows:

 

		(a)	In the event that the Company or the Reinsurer breaches any of the representations or warranties
made in Section 15.1(a) or Section 15.2(a), the non-breaching party’s damages shall be limited to money damages.

 

		(b)	In the event that the Company or the Reinsurer breaches any of the covenants made in Section 15.1(b)
or Section 15.2(b), the non-breaching party’s damages shall be limited to money damages.

 

ARTICLE
XVI

 

CURRENCY

 

		16.1	Currency. Wherever the word "Dollars" or sign "$" appear in this Reinsurance
Agreement they shall be construed to mean United States Dollars.

 

		16.2	Unless otherwise agreed, for purposes of this Reinsurance Agreement, where the Company
receives premiums or pays losses and/or commissions in currencies other than United States currency, such premiums or losses and
commissions shall be converted into United States Dollars at the rates of exchange utilised by the Company in its books at the
inception date of this Reinsurance Agreement.

 

ARTCILE
XVII

 

MISCELLANEOUS
PROVISIONS

 

		17.1	No Set-Off. All payments due and payable hereunder by either party, whether with respect
to the same date or otherwise, shall be made on a gross basis.

 

		17.2	Entire Agreement. This Reinsurance Agreement (including any amendments hereto) and the Underlying
Reinsurance Agreements (including any amendments thereto) constitute the entire agreement among the parties with respect to the
subject matter hereof and supersedes all other prior agreements and understandings, both written and verbal, among the parties
or any of them with respect to the subject matter hereof.

 

    	 	13	 

     

    

 

		17.3	Governing Law. This Reinsurance Agreement shall be governed by, and construed and enforced
in accordance with, the laws of Bermuda (other than any mandatory conflict of law rule which might result in the application of
the law of any other jurisdiction), provided that any provisions of this Reinsurance Agreement relating to the segregation of assets
or liabilities of the Company shall be governed by and construed in accordance with the SAC Act.

 

		17.4	Third-Party Beneficiaries. This Reinsurance Agreement is intended for the exclusive benefit
of the parties to this Reinsurance Agreement and their respective successors and permitted assigns, and nothing in this Reinsurance
Agreement, express or implied, is intended to or shall confer upon any person, other than the parties hereto, any rights, benefits
or remedies of any nature whatsoever under or by reason of this Reinsurance Agreement.

 

		17.5	Wire Transfers. All payments to the Reinsurer required under this Reinsurance Agreement
shall be made in United States dollars by wire transfer in immediately available funds in accordance with the following wire transfer
instructions:

 

To be provided by
the Reinsurer at the Effective Date.

 

		17.6	Descriptive Headings. The article and section headings herein are inserted for convenience
of reference only and are not intended to be part of or to affect the meaning or interpretation of this Reinsurance Agreement.

 

		17.7	Amendment. This Reinsurance
                                         Agreement may not be amended or modified or any term or provision hereof waived or discharged
                                         except by an instrument or instruments in writing signed and delivered on behalf of each
                                         of the parties hereto.

 

		17.8	Waiver. Except as otherwise provided in this Reinsurance Agreement, any failure or delay
by any party in exercising any right, power or privilege hereunder shall not operate as a waiver thereof, nor shall any single
or partial exercise thereof preclude any other or further exercise of any such right, power or privilege or the exercise of any
other right, power or privilege hereunder or otherwise available at law or in equity.

 

		17.9	Assignment. No party may
                                         assign any of its rights or obligations under this Reinsurance Agreement without the
                                         written consent of the other party to this Reinsurance Agreement, except that Reinsurer
                                         upon 10 business days notice to the Company may assign this Reinsurance Agreement to
                                         IIS Re Ltd. or its affiliate as long as IIS Re Ltd. (or its affiliate) is appropriately
                                         licensed and has authority to become a party to this Reinsurance Agreement. The assignee
                                         will be subject to all the rights, duties and obligations of this Reinsurance Agreement.

 

    	 	14	 

     

    

 

		17.10	Counterparts. This Reinsurance Agreement may be executed in counterparts, each of which
shall be deemed to be an original, but all of which shall constitute one and the same agreement.

 

		17.11	Further Assurances. Each party hereto agrees to perform any further acts and to execute
and deliver any further documents, which may be reasonably necessary to carry out the provisions of this Reinsurance Agreement.

 

		17.12	Severability. Any term or provision of this Reinsurance Agreement which is invalid or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this Reinsurance Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Reinsurance Agreement in any other jurisdiction. If any provision of this
Reinsurance Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

		17.13	Segregated Account and Bermuda law.

 

		(a)	This Reinsurance Agreement confers no voting rights on the Reinsurer relative to either the affairs
of the Company, the affairs of any segregated account of Iris Re or of the general account of Iris Re.

 

		(b)	The assets of Iris Re arising out of or in respect of the terms of this Reinsurance Agreement shall
at all times be linked to the Company and shall be kept segregated within the meaning of the SAC Act, and separate, and distinct
from all other funds and assets of Iris Re (except where all relevant parties, including the Company, may expressly agree otherwise,
and in accordance with the provisions of section 17A of the SAC Act), and are not chargeable with, and shall not be reduced by,
any liability arising from any other business of Iris Re, including, without limitation, any liability arising under the general
account or any other segregated account of Iris Re.

 

		(c)	All rights and interests in assets and property linked to the Company shall be determined in accordance
with this Reinsurance Agreement and the terms of the SAC Act.

 

		(d)	Pursuant to the terms of this Reinsurance Agreement, all premiums, retro-premium and other receipts
arising from this Reinsurance Agreement will be linked to the Company. In addition, any reinsurance recoveries arising from any
retrocessional reinsurance agreements ceding all or any portion of the risks assumed hereunder shall be linked to the Company.

 

    	 	15	 

     

    

 

		(e)	All payments made by the Company under this Reinsurance Agreement shall be paid only out of funds
or other assets linked to the Company.

 

		(f)	Iris Re may terminate the Company at any time after the Company ceases to have any obligation or
liability to the Reinsurer hereunder.

 

		(g)	Notwithstanding any matter referred to herein, the Reinsurer understands and accepts that the Company
is a segregated account of Iris Re and that all corporate matters relating to the creation of the Company, capacity of the Company,
operation and liquidation of the Company and any matters relating to the Company thereof shall be governed by, and construed in
accordance with, the laws of Bermuda. The Reinsurer has had the opportunity to take advice and to obtain all such additional information
that it considers necessary to evaluate the terms, conditions and risks of entering into this Reinsurance Agreement with the Company.

 

		(h)	The Reinsurer acknowledges and recognizes the applicability, validity and enforceability of the
SAC Act and the terms contained therein and in particular that the Company’s liability and obligations under this Reinsurance
Agreement are limited to the assets linked to the Company.  The Reinsurer agrees and acknowledges that there shall only be
recourse to the assets linked to the Company and that (except where all relevant parties, including the Company, may expressly
agree otherwise, and in accordance with the provisions of section 17A of the SAC Act) in the event of the exhaustion of the assets
linked to the Company, there shall be no recourse by any party to the assets which are linked to any other segregated account (as
that term is defined in the SAC Act) established by Iris Re or to the general account of Iris Re and that there is no obligation
whatsoever for Iris Re to use any of its property or assets, other than the assets linked to the Company, to satisfy any claim
in the event of the exhaustion of the assets linked to the Company.

 

IN WITNESS WHEREOF, the parties hereto
have caused this Reinsurance Agreement to be executed as of the date first set forth above.

 

	IRIS REINSURANCE LTD., 	 	ARTEX SAC LIMITED
	ACTING IN RESPECT OF ITS

                    SEGREGATED ACCOUNT

                    DESIGNATED AS “KWQS”
	 	
        ACTING IN RESPECT OF

        IIS CCG SEGREGATED ACCOUNT

	 	 	 	 	 
	By:	 	 	By:	 
	Charles Mixon	 	Robert Eastham
	Authorized Signatory	 	Managing Director

 

    	 	16

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