Document:

WARRANT
EXCHANGE AGREEMENT

    

    This WARRANT EXCHANGE AGREEMENT,
dated as of September 20, 2010 (this “Agreement”), is made
by and between Maiden Holdings Ltd., a Bermuda company (the “Company”), and Barry
Zyskind (the “Warrant
Holder”).  The Company and Warrant Holder are each referred to
herein as a “Party” and collectively, as the “Parties.”

    

    RECITALS

    

    WHEREAS, the Warrant Holder holds that
certain Warrant, issued by the Company on June 7, 2007, to purchase 1,350,000 of
the Company’s common shares at $10.00 per share (the “Warrant”);

    

    WHEREAS, the Company and the Warrant
Holder wish to exchange the Warrant in consideration for the issuance of certain
restricted stock;

    

    WHEREAS, the Parties desire to enter
into this Agreement to set forth certain matters relating to such exchange (the
“Exchange”).

    

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

    

    ARTICLE
I

    

    EXCHANGE

    

    Section 1.1. Exchange of
Warrant.  Upon and subject to the terms and conditions set
forth herein, the Warrant Holder hereby surrenders to the Company for exchange,
the Warrant, together with all appropriate endorsements and instruments of
transfer, and, in exchange therefor, the Company shall issue to the Warrant
Holder 600,000 of the Company’s Common Shares (the “Shares”) via the
Company’s 2007 Share Incentive Plan, which Shares shall be subject to the
provisions of that certain Lockup Agreement attached hereto as Exhibit A (the
“Lockup
Agreement”).

    

    Section 1.2 Lockup
Agreement.  The Company and the Warrant Holder are concurrently
entering into the Lockup Agreement.

    

    ARTICLE
II

    

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

    

    Section 2.1. Representations and
Warranties of the Company. The Company hereby represents and warrants to
the Warrant Holder, as of the date hereof, as follows:

    

    (a) Organization, Good
Standing. The Company is a company duly organized, validly existing and
in good standing under the laws of Bermuda.

    

    (b) Power, Authorization,
Enforcement. The Company has the requisite corporate power and authority
to enter into and perform this Agreement and transactions contemplated herein,
including the Exchange.  The execution and delivery of this Agreement
by the Company has been duly and validly authorized by all necessary corporate
action, and no further corporate consent or authorization is required for the
Company to effect the transactions contemplated hereby.  This
Agreement constitutes a valid and legally binding obligation of the Company,
enforceable in accordance with its terms.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c) Issuance of Shares.
The Shares have been duly authorized by all necessary corporate action and, when
issued in accordance with the terms hereof upon surrender of the Warrant, the
Shares shall be validly issued and outstanding, fully paid and
non-assessable.

    

    (d) No Conflicts. The
execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby does not and
will not (i) violate any provision of the Company’s Articles of Incorporation or
Bylaws, each as amended to date, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party or by which any of the Company’s properties or assets are bound, or
(iii) result in a violation of any federal, state, local or foreign
statute, rule, regulation, order, judgment or decree (including federal and
state securities laws and regulations) applicable to the Company or by which any
property or asset of the Company is bound or affected, except, in all cases,
other than violations pursuant to clauses (i) or (iii) (with respect to federal
and state securities laws) above, except, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a material adverse effect on the
Company.

    

    Section 2.2. Representations and
Warranties of the Warrant Holder. The Warrant Holder hereby represents
and warrants to the Company, as of the date hereof, as follows:

    

    (a) Power, Authorization,
Enforcement. The Warrant Holder has full power and authority to enter
into and perform this Agreement, the Lockup Agreement and transactions
contemplated herein, including the Exchange.  This Agreement and the
Lockup Agreement constitute valid and legally binding obligations of the Warrant
Holder, enforceable in accordance with their terms.

    

    (b) Title. The Warrant
Holder has record and beneficial ownership of the Warrant and is transferring
good and valid title to the Warrant to the Company, free and clear of any claim,
interest, mortgage, pledge, lien or security interest.

    

    (c) Investment.  The
Warrant Holder (A) understands that the Shares have not been, and will not be,
registered under the Securities Act or under any state securities laws, and are
being offered and issued in reliance upon federal and state exemptions for
transactions not involving any public offering, (B) is acquiring the Shares
solely for his own account for investment purposes, and not with a view to the
distribution thereof, (C) is a sophisticated investor with knowledge and
experience in business and financial matters, (D) has received certain
information concerning the Company and has had the opportunity to obtain
additional information as desired in order to evaluate the merits and the risks
inherent in holding the Shares, (E) is able to bear the economic risk and lack
of liquidity inherent in holding the Shares, and (F) is an accredited
investor, as defined in Regulation D under the Securities Act of 1933, as
amended.

    

    (d) No Tax
Representations.  The warrant Holder understands the tax
consequences of the transactions contemplated by this Agreement.  The
Warrant Holder confirms that it is not relying on any statements or
representations of the Company or any of its agents with respect to the tax
effect of the transactions contemplated by this Agreement.  The
Warrant Holder has had the opportunity to consult with the Warrant Holder’s own
legal, accounting, tax, investment and other advisors, who are unaffiliated with
the Company or any affiliate of the Company, with respect to the tax treatment
of the transactions contemplated by this Agreement.  The Warrant
Holder also acknowledges that he is solely responsible for any tax liability
that may arise as a result of the transactions contemplated by this
Agreement.

    

    
      
         

      

      
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    ARTICLE
III

    

    MISCELLANEOUS

    

    Section 3.1. Fees and Expenses.
Each of the Parties will bear his or its own costs and expenses incurred in
connection with this Agreement and the transactions contemplated
herein.

    

    Section 3.2. Entire Agreement.
This Agreement (including the documents referred to herein) constitutes the
entire agreement among the Parties and supersedes any prior understandings,
agreements, or representations by or among the Parties, written or oral, among
the Parties with respect to the subject matter of this Agreement.

    

    Section
3.3. Notices.
All notices, requests, demands, claims, and other communications hereunder will
be in writing. Any notice, request, demand, claim, or other communication
hereunder shall be deemed duly given when personally delivered, one business day
after it is deposited with a nationally recognized courier for overnight
delivery or two business days after it is sent by registered or certified mail,
return receipt requested, postage prepaid, and addressed to the intended
recipient as set forth below:

    
       

      
        
          	 
      	
                        
                    If
      to the Warrant Holder:

                    Barry
      Zyskind

                    AmTrust
      Financial Services, Inc.

                    59
      Maiden Lane, 6th
      Floor

                    New
      York, NY 10038

                  

                
	 	 
	 
      	
                  If
      to the Company:

                  Maiden
      Holdings, Ltd.

                  131
      Front Street

                  Hamilton
      HM12 Bermuda

                  Attention:
      Secretary

                  Fax:
      (441) 292-0471

                

        

      

    

    

    Any Party
may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Parties notice
in the manner herein set forth.

    

    Section 3.4. Amendments and
Waivers. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by the Parties. No waiver by any
Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

    

    Section 3.5. Headings. The section
headings contained in this Agreement are inserted for convenience only and shall
not affect in any way the meaning or interpretation of this
Agreement.

    

    Section 3.6. Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of
the Parties named herein and their respective successors and permitted assigns.
No Party may assign either this Agreement or any of his or its rights,
interests, or obligations hereunder without the prior written approval of the
other; provided, however, that the Company may (i) assign any or all of its
rights and interests hereunder to one or more of its affiliates, or
(ii) designate one or more of its affiliates to perform its obligations
hereunder (in any or all of which cases the Company nonetheless shall remain
responsible for the performance of all of its obligations
hereunder).

     

    
      
         

      

      
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    Section 3.7. No Third Party
Beneficiaries. This Agreement shall not confer any rights or remedies
upon any individual, partnership, corporation, limited liability company,
association, joint stock company, trust, joint venture, unincorporated
organization, governmental entity (or any department, agency, or political
subdivision thereof) or any other entity, other than the Parties and their
respective successors and permitted assigns.

    

    Section 3.8. Governing Law. This
Agreement shall be governed by and construed in accordance with the domestic
laws of the State of New York without giving effect to any choice or conflict of
law provision or rule (whether of Bermuda or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of
New York.

    

    Section 3.9. Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same
instrument.

    

    Section 3.10. Severability. Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

    

    Section
3.11. Certain
Interpretive Matters and Definitions.  (i) Unless the context
of this Agreement otherwise requires, (A) the terms “hereof,” “herein,” “hereby”
and derivative or similar words refer to this entire Agreement and not to any
particular provision of this Agreement; and (B) the term “Section” without any
reference to a specified document refer to the specified Section of this
Agreement.

     

    (ii) The
words “including,” “include” and “includes” are not exclusive and shall be
deemed to be followed by the words “without limitation”; if exclusion is
intended, the word “comprising” is used instead.

     

    (iii) The
word “or” shall be construed to mean “and/or” unless the context clearly
prohibits that construction.

     

    (iv) Any
reference to any federal, state, local, provincial or foreign statute or law,
including any one or more sections thereof, shall be deemed also to refer to,
unless the context requires otherwise, all rules and regulations promulgated
thereunder, including Treasury Regulations.

     

    (v) Any
representation or warranty contained herein as to the enforceability of a
contract, including this Agreement, shall be subject to the effect of any
bankruptcy, insolvency, reorganization, moratorium or other similar law
affecting the enforcement of creditors’ rights generally and to general
equitable principles (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

     

    (vi) The
Parties have participated jointly in the negotiation and drafting of this
Agreement.  If an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or disfavoring any
Party by virtue of the authorship of any of the provisions hereof.

     

    [Signature
Page Next]

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto have executed this Warrant Exchange
Agreement as of the date first above written.

     

    
      
        	SHAREHOLDER	 	
                THE
      COMPANY

                Maiden Holdings Ltd.

              	 
	 	 	 	 	 
	
                      
                  /s/
      Barry Zyskind

                

              	 	By:  
      	
                /s/
      Arturo M. Raschbaum

              	 
	
                BARRY
      ZYSKIND

              	 	Name:  	
                Arturo
      M. Raschbaum

              	 
	
                 

              	 	Title: 	
                President
      and Chief Executive OfficerLOCKUP
AGREEMENT

     

    This Lockup
Agreement is being executed and delivered as of September 20, 2010 by
Michael Karfunkel (the “Shareholder”) in
favor of and for the benefit of Maiden Holdings Ltd., a Bermuda company (the
“Company”).

    

    RECITALS

    

    A.          Contemporaneously
with the execution and delivery of this Lockup Agreement, the Shareholder is
entering into an Warrant Exchange Agreement with the Company (the “Agreement”) pursuant
to which the Shareholder will acquire common shares of the Company (the “Shares”) in exchange
for the surrender of a Warrant (the “Exchange”).

    

    B.           In
connection with the Exchange (and as a condition to consummating the Exchange),
the Company has requested that the Shareholder enter into this Lockup Agreement;
and the Shareholder is entering into this Lockup Agreement in order to induce
the Company to enter into the Agreement and consummate the
Exchange.

     

    AGREEMENT

     

    In order
to induce the Company to enter into the Agreement and consummate the Exchange,
and in consideration of the issuance and delivery to the Shareholder of the
Shares pursuant to the Agreement, the Shareholder agrees as
follows:

     

    1.           Agreement by
Shareholder.

     

    (a)        
The Shareholder agrees with the Company that, beginning on the closing of the
Exchange (the “Closing”) and
continuing for a period of thirty six (36) months from the Closing, the
Shareholder will not, without the prior written consent of the Company, directly
or indirectly, (A) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant for the sale of, or otherwise dispose of or transfer any Shares
acquired by the Shareholder as a result of the Exchange or (B) enter into any
swap or any other agreement or any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of such
Shares, whether any such swap transaction is to be settled by delivery of Shares
or other securities, in cash or otherwise.

     

    (b)         Notwithstanding
the foregoing, the Shareholder may transfer such Shares either during his
lifetime or upon death by will or intestacy to his immediate family or to a
trust if the beneficiaries of such trust are exclusively the Shareholder and/or
a member or members of his immediate family; provided, however, that prior
to any such transfer each transferee shall execute an agreement substantially
identical to this agreement and which shall be satisfactory to the Company,
pursuant to which each transferee shall agree to receive and hold such Shares,
subject to the provisions hereof, and there shall be no further transfer except
in accordance with the provisions hereof. For purposes of this paragraph,
“immediate family” shall mean spouse, lineal descendant, father, mother,
brother, sister or domestic partner of the transferor.

     

    The
Shareholder also agrees and consents to the entry of stop-transfer instructions
with the Company’s transfer agent against the transfer of such Shares except in
compliance with this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.           Notices.
Any notice or other communication required or permitted to be delivered to the
Shareholder or the Company under this Lockup Agreement shall be in writing and
shall be deemed properly delivered, given and received when delivered (by hand,
by registered mail, by courier or express delivery service or by confirmed
facsimile) to the address or facsimile telephone number set forth beneath the
name of such party below (or to such other address or facsimile telephone number
as such party shall have specified in a written notice delivered in accordance
with this Section 2):

    

    if to the
Company:

    Maiden
Holdings, Ltd.

    131 Front
Street

    Hamilton
HM12 Bermuda

    Attention:
Secretary

    Fax:
(441) 292-0471

    

    if to the
Shareholder:

    Michael
Karfunkel

    American
Capital Acquisition Corporation

    59 Maiden
Lane

    New York,
NY 10038

    

    3.           Severability.
If any provision of this Lockup Agreement or any part of any such provision is
held under any circumstances to be invalid or unenforceable in any jurisdiction,
then (a) such provision or part thereof shall, with respect to such
circumstances and in such jurisdiction, be deemed amended to conform to
applicable laws so as to be valid and enforceable to the fullest possible
extent, (b) the invalidity or unenforceability of such provision or part thereof
under such circumstances and in such jurisdiction shall not affect the validity
or enforceability of such provision or part thereof under any other
circumstances or in any other jurisdiction, and (c) such invalidity of
enforceability of such provision or part thereof shall not affect the validity
or enforceability of the remainder of such provision or the validity or
enforceability of any other provision of this Lockup Agreement. Each provision
of this Lockup Agreement is separable from every other provision of this Lockup
Agreement, and each part of each provision of this Lockup Agreement is separable
from every other part of such provision.

     

    4.           Governing
Law. This Lockup Agreement shall be construed in accordance with, and
governed in all respects by, the laws of the State of New York, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof.

     

    
      
         

      

      
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    5.           Waiver.
No failure on the part of the Company to exercise any power, right, privilege or
remedy under this Lockup Agreement, and no delay on the part of the Company in
exercising any power, right, privilege or remedy under this Lockup Agreement,
shall operate as a waiver of such power, right, privilege or remedy; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy. The Company shall not be deemed to have waived any claim
arising out of this Lockup Agreement, or any power, right, privilege or remedy
under this Lockup Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed
and delivered on behalf of the Company; and any such waiver shall not be
applicable or have any effect except in the specific instance in which it is
given.

     

    6.           Captions.
The captions contained in this Lockup Agreement are for convenience of reference
only, shall not be deemed to be a part of this Lockup Agreement and shall not be
referred to in connection with the construction or interpretation of this Lockup
Agreement.

     

    7.    
     Further
Assurances. The Shareholder shall execute and/or cause to be delivered to
the Company such instruments and other documents and shall take such other
actions as the Company may reasonably request to effectuate the intent and
purposes of this Lockup Agreement.

     

    8.      
   Entire
Agreement. This Lockup Agreement and the other agreements referred to
herein set forth the entire understanding of the Shareholder and the Company
relating to the subject matter hereof and thereof and supersede all prior
agreements and understandings between any of such parties relating to the
subject matter hereof and thereof.

     

    9.         
Amendments.
This Lockup Agreement may not be amended, modified, altered, or supplemented
other than by means of a written instrument duly executed and delivered on
behalf of the Company and the Shareholder.

     

    10.        Assignment.
This Lockup Agreement and all obligations hereunder are personal to the
Shareholder and may not be transferred or assigned by the Shareholder at any
time except as provided in Section 1(b). The Company may assign its rights under
this Lockup Agreement to any entity in connection with any merger or sale or
transfer of all or substantially all of the Company’s assets.

     

    11.        Binding
Nature. Subject to Section 10, this Lockup Agreement will be binding upon
the Shareholder and the Shareholder’s representatives, executors,
administrators, estate, heirs, successors and assigns, and will inure to the
benefit of the Company and its successors and assigns.

     

    
      
         

      

      
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    In Witness
Whereof, the Shareholder and the Company have executed this Lockup
Agreement as of the date first above written.

     

    
      
        
          
            	
                    
                      SHAREHOLDER

                    

                  	 	 	
                    THE
      COMPANY

                  	 
	 	 	 	 	 
	 	 	 	
                    
                      Maiden
      Holdings Ltd.

                    

                  	 
	 	 	 	 	 
	 	 	 	 	 
	
                    
                      
                        
                          /s/
      Michael Karfunkel

                        

                      

                    

                  	 	By:	
                    
                      /s/
      Arturo M. Raschbaum

                    

                  	 
	
                    
                      
                        
                          MICHAEL
      KARFUNKEL

                        

                      

                    

                  	 	Name:	
                    Arturo
      M. Raschbaum

                  	 
	 	 	Title: 	President and Chief Executive Officer	 
	
                     

                  	 	
                  	
                     

                  	 

          

        

      

    

     

    
      
        
        

      

      
        4

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