Document:

Exhibit 10.7

 

SPONSOR WARRANT LOCK-UP AGREEMENT

 

This SPONSOR WARRANT LOCK-UP
AGREEMENT, dated as of December 2, 2021 (“Agreement”), by and among Hagerty, Inc., (formerly, Aldel
Financial Inc.), a Delaware corporation (the “Company”), Aldel Investors LLC (the “Sponsor”)
and FG SPAC Partners, LP (“FGSP”).

 

WHEREAS, the Company entered into the Private Placement
Units Purchase Agreement dated as of April 8, 2021, with the Sponsor (the “Private Placement Units Purchase
Agreement”) pursuant to which the Sponsor purchased, on a private placement basis an aggregate of 515,000 units of the
Company (the “Units”), each Unit comprised of one share of Class A common stock of the Company, par
value $0.0001 per share (“Common Stock”) and one-half of one warrant, each whole warrant exercisable to
purchase one share of Common Stock (“Warrant”), for a purchase price of $10.00 per Unit. The Warrants
underlying the Units are hereinafter referred to as the “Placement Warrants,” and each Placement Warrant
is exercisable to purchase one share of Common Stock at an exercise price of $11.50 per share during the period commencing on the
later of (i) twelve (12) months from the date of the closing of the Company’s initial public offering (the
 “IPO”) and (ii) 30 days following the consummation of the Company’s initial business
combination (the “Business Combination”), as such term is defined in the registration statement in
connection with the IPO, as amended at the time it become effective, and expiring on the fifth anniversary of the consummation of
the Business Combination;

 

WHEREAS, the Company entered
into the OTM Warrants Purchase Agreement dated as of April 8, 2021, with FGSP (the “OTM Warrants Purchase Agreement”)
pursuant to which FGSP purchased private placement warrants (the “OTM Warrants”), each OTM Warrant entitling
the holder to purchase one share of Common Stock at an exercise price of $15.00 per share;

 

WHEREAS, in connection with that certain Business Combination
Agreement, dated as of August 17, 2021(the “Business Combination Agreement”), by and among the Company,
Aldel Merger Sub LLC, a Delaware limited liability company (“Merger Sub”), and The Hagerty Group, LLC, a Delaware
limited liability company (“Hagerty”), Hagerty shall be merged with Merger Sub, with Hagerty being the surviving
entity (the “Transaction”), the Sponsor has agreed that its Placement Warrants (the “Locked-Up Placement Warrants”)
and FGSP has agreed that its OTM Warrants (the “Locked-Up OTM Warrants” and, together with the Locked-Up Placement
Warrants, the “Locked-Up Warrants”) shall be subject to additional vesting requirements before they can be
exercised as hereinafter provided.

 

IT IS AGREED:

 

1.             Vesting
of the Locked-Up Warrants. In addition to the terms and conditions of exercise of the Locked-Up Warrants contained in the
Private Placement Units Purchase Agreement, the OTM Warrants Purchase Agreement and the warrant agreements governing the Locked-Up
Warrants, (i) the Locked-Up Placement Warrants shall not be exercisable until the date on which the volume weighted average
trading price of the Common Stock exceeds $15.00 per share (as adjusted for stock splits, stock dividends, reorganizations and
recapitalizations) for any 20 trading days within any
30-trading day period commencing on the date that is 12 months after the Business Combination and (ii) the Locked-Up OTM
Warrants shall not be exercisable until the date on which the volume weighted average trading price of the Common Stock exceeds
$18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days
within any 30-trading day period commencing on the date that is 12 months after the Business Combination. The period from the date
hereof through the date on which the Locked-Up Warrants may be exercised in accordance with this Section 1 is referred to as
the “Lock-Up Period”).

 

2.             Restrictions
on Transfer. During the Lock-Up Period, the Sponsor and FGSP, as applicable, may transfer the Locked-Up Warrants, subject to any
requirements set forth in the Private Placement Units Purchase Agreement, the OTM Warrants Purchase Agreement and the applicable warrant
agreements governing the Locked-Up Warrants, provided that such transfers may be implemented only upon the respective transferee’s
written agreement to be bound by the terms and conditions of this Agreement. In furtherance of the foregoing, the Company may notify
the Company’s transfer agent in writing of the restrictions on such Locked-up Warrants under this Agreement and direct the Company’s
transfer agent not to process any attempts to exercise or transfer any Locked-up Warrants, except in compliance with this Agreement.

 

     

     

    

 

3.             Miscellaneous.

 

3.1
            Governing Law. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with
the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction.

 

3.2           
Entire Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter
hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party
to the charged.

 

3.3
            Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation thereof.

 

3.4
           Binding Effect. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their
legal representatives, successors and assigns.

 

3.5           Notices.
Any notice or other communication required or which may be given hereunder shall be in writing and either delivered personally,
emailed or sent by overnight mail via a reputable overnight carrier, or sent by certified or registered mail, postage prepaid, and
shall be deemed to be given and received (i) when so delivered personally, (ii) when sent, with no mail undeliverable or
other rejection notice, if sent by email, or (iii) three (3) business days after the date of mailing to the address below
or to such other address or addresses as such person may hereafter designate by notice given hereunder, as follows:

 

(i)            if
to the Company (prior to the Transaction closing), to:

 

Aldel Financial Inc.

105 S. Maple Street

Itasca, IL 60143

Attention: Robert I. Kauffman

E-mail:  RK@robkauffman.com

 

with a required copy to (which copy shall not constitute notice):

 

Loeb & Loeb LLP

345 Park Avenue, 19th Floor

New York, NY 10154

Attention: Mitchell S. Nussbaum, Esq.

E-mail: mnussbaum@loeb.com

 

(ii)           if
to the Company (following the Transaction closing), to:

 

Hagerty, Inc.

P.O. Box 1303

Traverse City, MI 49685-1303

Attention: Barbara Matthews, General Counsel

E-mail:  bmatthews@hagerty.com

 

with a required copy to (which copy shall not constitute notice):

 

Sidley Austin LLP

One South Dearborn St.

Chicago, IL 60603

Attention: Sean Keyvan; William Howell; Jonathan Blackburn

E-mail: skeyvan@sidley.com; bhowell@sidley.com;
 jblackburn@sidley.com

 

    	 	2	 

     

    

 

		(ii)	if to the Sponsor:

 

		(iii)	if to FGSP:

 

FG SPAC Partners, LP

c/o FG SPAC Partners GP, LLC

108 Gateway Boulevard, Suite 204

Mooresville, NC 28117

Attention: D. Kyle Cerminara; Jeff L. Sutton

E-mail: kyle@fundamentalglobal.com; jeff@fundamentalglobal.com

 

The parties may change the persons and addresses
to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein
for giving notice.

 

[Signature Page Follows]

 

    	 	3	 

     

    

 

WITNESS the execution of this Agreement as of the date first above
written.

 

	 	COMPANY:
	 	 
	 	HAGERTY, INC.
	 	 
	 	 
	 	By: 	/s/ McKeel Hagerty
	 	 	Name: 	McKeel Hagerty
	 	 	Title: 	Chief Executive Officer
	 	 
	 	SPONSOR:
	 	 
	 	ALDEL INVESTORS LLC
	 	 
	 	 
	 	By: 	/s/ Robert I. Kauffman
	 	 	Name:	 Robert I. Kauffman
	 	 	Title: 	Manager
	 	 
	 	FGSP:
	 	 
	 	FG SPAC PARTNERS, LP
	 	By: FG SPAC Partners GP, LLC (its general partner)
	 	By: FG Financial Group, Inc. (its manager)
	 	 
	 	 
	 	By: 	/s/ Larry G. Swets, Jr.
	 	 	Name:	 Larry G. Swets, Jr.
	 	 	Title: 	Chief Executive Officer

 

[Signature Page to Sponsor Warrant Lock-up Agreement]Exhibit 10.8

 

Execution Agreement

 

EXCHANGE AGREEMENT

 

EXCHANGE AGREEMENT (this “Agreement”),
dated as of December 2, 2021, by and among Hagerty, Inc., a Delaware corporation (the “Corporation”), The
Hagerty Group, LLC, a Delaware limited liability company (together with any successor thereto, “OpCo”), Hagerty Holding
Corp., a Delaware close corporation (“HHC”), Markel Corporation, a Virginia corporation (“Markel”),
and each of HHC’s and Markel’s Qualified Transferees (as defined below) as such Qualified Transferees may become holders of
Units (as defined herein).

 

WHEREAS, the parties hereto
desire to provide for the exchange of Paired Interests (as defined herein) for shares of Class A Common Stock (as defined herein),
on the terms and subject to the conditions set forth herein.

 

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

 

ARTICLE I

 

SECTION 1.1 Definitions

 

The following definitions
shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

 

“Act” means
the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time to time (or any corresponding provisions
of succeeding law).

 

“Action”
means any claim, action, suit, arbitration, inquiry, proceeding or investigation by or before any Governmental Entity.

 

“Appraiser FMV”
means the fair market value of a share of Class A Common Stock as determined by an independent appraiser mutually agreed upon by
the Corporation and the relevant Exchanging Member, whose determination shall be final and binding for those purposes for which Appraiser
FMV is used in this Agreement. Appraiser FMV shall be the fair market value determined without regard to any discounts for minority interest,
illiquidity or other discounts. The cost of any independent appraisal in connection with the determination of Appraiser FMV in accordance
with this Agreement shall be borne by OpCo.

 

“Board”
means has the meaning given to such term in the OpCo LLC Agreement.

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York and Traverse City, Michigan are
authorized or required by Law to close.

 

“Cash Exchange Class A
5-Day VWAP” means the arithmetic average of the VWAP for each of the five (5) consecutive Trading Days ending on the Trading
Day immediately prior to the Exchange Notice Date (in the case of an Unrestricted Exchange) or the Exchange Date (in the case of any other
Exchange).

 

“Cash Exchange Notice”
has the meaning set forth in Section 2.1(c) of this Agreement.

 

“Cash Exchange Payment”
means with respect to a particular Exchange for which the Corporation has elected a Cash Exchange Payment in accordance with Section 2.1(c):

 

(a) if the shares of Class A
Common Stock trade on a National Securities Exchange or automated or electronic quotation system, an amount of cash equal to the product
of: (i) the number of shares of Class A Common Stock that would have been received by the Exchanging Member in the Exchange
for that portion of the Exchanged Units subject to the Exchange set forth in the Cash Exchange Notice if OpCo or the Corporation, as applicable,
had paid the Stock Exchange Payment with respect to such number of Exchanged Units, and (ii) the Cash Exchange Class A 5-Day
VWAP; or

 

     

     

    

 

(b) if shares of Class A
Common Stock are not then traded on a National Securities Exchange or automated or electronic quotation system, as applicable, an amount
of cash equal to the product of (i) the number of shares of Class A Common Stock that would have been received by the Exchanging
Member in the Exchange for that portion of the Exchanged Units subject to the Exchange set forth in the Cash Exchange Notice if OpCo or
the Corporation, as applicable, had paid the Stock Exchange Payment with respect to such number of Exchanged Units, and (ii) the
Appraiser FMV of one (1) share of Class A Common Stock that would be obtained in an arms-length transaction between an informed
and willing buyer and an informed and willing seller, neither of whom is under any compulsion to buy or sell, respectively, and without
regard to the particular circumstances of the buyer or seller.

 

“Change of Control”
has the meaning given to such term in the Tax Receivable Agreement; provided, that, for the avoidance of doubt, any event that
constitutes both a Corporation Offer and a Change of Control of the Corporation shall be considered a Corporation Offer for purposes of
this Agreement.

 

“Class A Common
Stock” means the Class A common stock, par value $0.0001 per share, of the Corporation.

 

“Class V Common
Stock” means the Class V common stock, par value $0.0001 per share, of the Corporation.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Corporation”
means Hagerty, Inc., a Delaware corporation, and any successor thereto.

 

“Corporation Offer”
has the meaning set forth in Section 2.7 of this Agreement.

 

“Direct Exchange”
has the meaning set forth in Section 2.6 of this Agreement.

 

“Direct Exchange
Election Notice” has the meaning set forth in Section 2.6 of this Agreement.

 

“Equity Securities”
means (a) with respect to a partnership, limited liability company or similar Person, any and all units, interests, rights to purchase,
warrants, options or other equivalents of, or other ownership interests in, any such Person as well as debt or equity instruments convertible,
exchangeable or exercisable into any such units, interests, rights or other ownership interests and (b) with respect to a corporation,
any and all shares, interests, participation or other equivalents (however designated) of corporate stock, including all common stock
and preferred stock, or warrants, options or other rights to acquire any of the foregoing, including any debt instrument convertible or
exchangeable into any of the foregoing.

 

“Exchange”
has the meaning set forth in Section 2.1(a) of this Agreement.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Exchange Blackout
Period” means (a) any “black out” or similar period under the Corporation’s policies covering trading
in the Corporation’s securities to which the applicable Exchanging Member is subject (or will be subject at such time as it owns
Class A Common Stock), which period restricts the ability of such Exchanging Member to immediately resell shares of Class A
Common Stock to be delivered to such Exchanging Member in connection with a Stock Exchange Payment and (b) the period of time commencing
on (i) the date of the declaration of a dividend by the Corporation and ending on the first day following (ii) the record date
determined by the board of directors of the Corporation with respect to such dividend declared pursuant to clause (i), which period of
time shall be no longer than ten (10) Business Days; provided, that in no event shall an Exchange Blackout Period which respect
to clause (b) of the definition hereof occur more than four (4) times per calendar year.

 

“Exchange Date”
means, in the case of any Unrestricted Exchange, the date that is five (5) Business Days after the date the Exchange Notice is given
pursuant to Section 2.1(b), unless the Exchanging Member submits a written request to extend such date and the Corporation
in its sole discretion agrees in writing to such extension, and in any other case, the Quarterly Exchange Date; provided, that
if the Exchange Date for any Exchange with respect to which the Corporation elects to make a Stock Exchange Payment would otherwise fall
within any Exchange Blackout Period, then the Exchange Date shall occur on the next Business Day following the end of such Exchange Blackout
Period.

 

    	 	2	 

     

    

 

“Exchange Notice
Date” means, with respect to an Exchange, the date the applicable Exchange Notice is delivered in accordance with Section 2.1(b).

 

“Exchange Rate”
means, at any time, the number of shares of Class A Common Stock for which an Exchanged Unit is entitled to be exchanged at such
time. On the date of this Agreement, the Exchange Rate shall be one-for-one, subject to adjustment pursuant to Section 2.4
hereof.

 

“Exchanged Units”
means any Units to be Exchanged for the Cash Exchange Payment or Stock Exchange Payment, as applicable, on the applicable Exchange Date.

 

“Exchanging Member”
means, with respect to any Exchange, the Unitholder exchanging Units pursuant to Section 2.1(a) of this Agreement.

 

“Exchange Notice”
has the meaning set forth in Section 2.1(b) of this Agreement.

 

“Governmental Entity”
means any federal, national, supranational, state, provincial, local, foreign or other government, governmental, stock exchange, regulatory
or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body.

 

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

 

“HSR Act”
has the meaning set forth in Section 2.1(b) of this Agreement.

 

“Interest”
means the entire interest of a Unitholder in OpCo, including the Units and all of such Unitholder’s rights, powers and privileges
under the OpCo LLC Agreement and the Act.

 

“Law” means
any statute, law, ordinance, regulation, rule, code, order, requirement or rule of law (including common law) of any Governmental
Entity.

 

“Legal Action”
has the meaning set forth in Section 3.8(a) of this Agreement.

 

“Lock-Up Agreement”
means that certain Lock-Up Agreement among the Corporation, HHC, Markel and the other parties thereto, dated as of the date hereof.

 

“Managing Member”
has the meaning given to such term in the OpCo LLC Agreement.

 

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

 

“National Securities
Exchange” means a securities exchange that has registered with the SEC under Section 6 of the Exchange Act.

 

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

 

“OpCo LLC Agreement”
means the Fourth Amended and Restated Limited Liability Company Agreement of OpCo, dated as of the date hereof, as such agreement may
be amended from time to time.

 

“Paired Interest”
means one Unit and one share of Class V Common Stock.

 

“Partnership Tax
Audit Rules” means Sections 6221 through 6241 of the Code, together with any final or temporary Treasury Regulations, Revenue
Rulings, and case law interpreting Sections 6221 through 6241 of the Code (and any analogous provision of state or local tax Law).

 

    	 	3	 

     

    

 

“Permitted Exchange
Event” means any of the following events, which has or is occurring, or is otherwise satisfied, as of the Exchange Date:

 

(a) The Exchange is part
of one or more Exchanges by a Unitholder and any related persons (within the meaning of Section 267(b) or 707(b)(1) of
the Code) that is part of a “block transfer” within the meaning of Treasury Regulations Section 1.7704-1(e)(2) (for
this purpose, treating the Managing Member as a “general partner” within the meaning of Treasury Regulations Section 1.7704-1(k)(1));

 

(b) The Exchange is in
connection with a Corporation Offer or Change of Control; provided, that any such Exchange pursuant to this clause (b) shall
be effective immediately prior to the consummation of the closing of the Corporation Offer or Change of Control date (and, for the avoidance
of doubt, shall not be effective if such Corporation Offer is not consummated or Change of Control does not occur); or

 

(c) The Exchange is permitted
by the Managing Member (whose permission shall not be unreasonably withheld, conditioned or delayed), in connection with circumstances
not otherwise set forth herein, if the Managing Member determines in good faith that the Exchange would not pose a material risk that
OpCo would be treated as a “publicly traded partnership” under Section 7704 of the Code (or any successor or similar
provision) as a result of or in connection with such Exchange.

 

“Person”
means any individual, estate, corporation, partnership, limited partnership, limited liability company, limited company, joint venture,
trust, unincorporated or governmental organization or any agency or political subdivision thereof.

 

“Private Placement
Safe Harbor” means the “private placement” safe harbor set forth in Treasury Regulations Section 1.7704-1(h)(1).

 

“Qualified Transferee”
has the meaning given to such term in the OpCo LLC Agreement.

 

“Quarterly Exchange
Date” means, either (a) for each fiscal quarter, the first (1st) Business Day occurring after the sixtieth (60th) day after
the expiration of the applicable Quarterly Exchange Notice Period or (b) such other date as the Corporation shall determine in its
sole discretion.

 

“Quarterly Exchange
Notice Period” means, for each fiscal quarter, the period commencing on the third (3rd) Business Day after the day on which
the Corporation releases its earnings for the prior fiscal period, beginning with the first such date that falls on or after the waiver
or expiration of any contractual lock-up period relating to the shares of the Corporation that may be applicable to a Unitholder (or such
other date within such quarter as the Corporation shall determine in its sole discretion) and ending five (5) Business Days thereafter.
Notwithstanding the foregoing, the Corporation may change the definition of Quarterly Exchange Notice Period with respect to any Quarterly
Exchange Notice Period scheduled to occur in a calendar quarter subsequent to the then-current calendar quarter by providing notice to
the Unitholders no less than ten (10) Business Days from the date written notice of such change is sent to each Unitholder.

 

“Redemption”
has the meaning set forth in Section 2.1(a) of this Agreement.

 

“Restricted Retraction
Notice” has the meaning set forth in Section 2.1(d) of this Agreement.

 

“Secondary Offering”
has the meaning set forth in Section 2.1(e) of this Agreement.

 

“Securities Act”
has the meaning set forth in Section 2.1(c) of this Agreement.

 

“Stock Exchange Payment”
means a number of shares of Class A Common Stock equal to the product of the number of Exchanged Units multiplied by the Exchange
Rate.

 

“Tax Receivable Agreement”
means that certain Tax Receivable Agreement, dated as of the date hereof, by and among the Corporation and the other parties thereto.

 

“Trading Day”
means a day on which the New York Stock Exchange or such other principal United States securities exchange on which the Class A Common
Stock are listed or admitted to trading and is open for the transaction of business (unless such trading shall have been suspended for
the entire day).

 

    	 	4	 

     

    

 

“Treasury Regulations”
means pronouncements, as amended from time to time, or their successor pronouncements, which clarify, interpret and apply the provisions
of the Code, and which are designated as “Treasury Regulations” by the United States Department of the Treasury.

 

“Unit”
has the meaning set forth in the OpCo LLC Agreement.

 

“Unitholder”
means each holder of one or more Units that may from time to time be a party to this Agreement.

 

“Unrestricted Exchanges”
means any Exchange that is in connection with a Permitted Exchange Event or that occurs during a period in which OpCo meets the requirements
of the Private Placement Safe Harbor.

 

“VWAP”
means the daily per share volume-weighted average price of shares of Class A Common Stock on the New York Stock Exchange or such
other principal United States securities exchange on which shares of Class A Common Stock are listed, quoted or admitted to trading,
as displayed under the heading “Bloomberg VWAP” on the Bloomberg page designated for shares of Class A Common Stock
(or its equivalent successor if such page is not available) in respect of the period from the open of trading on such Trading Day
until the close of trading on such Trading Day (or if such volume-weighted average price is unavailable, (a) the per share volume-
weighted average price of a share of Class A Common Stock on such Trading Day (determined without regard to afterhours trading or
any other trading outside the regular trading session or trading hours), or (b) if such determination is not feasible, the market
price per share of Class A Common Stock, in either case as determined by a nationally recognized independent investment banking firm
retained in good faith for this purpose by the Managing Member).

 

ARTICLE II

 

SECTION 2.1 Exchange
Procedure

 

(a) From and after the
expiration of the Lock-Up Period (as defined in the Lock-Up Agreement) and subject to the terms of the OpCo LLC Agreement, each Unitholder
(other than the Corporation) shall be entitled, upon the terms and subject to the conditions hereof, to surrender Paired Interests to
OpCo in exchange for the delivery of the Stock Exchange Payment or, at the election of the Corporation, the Cash Exchange Payment, as
applicable, (such exchange, a “Redemption” and, together with a Direct Exchange (as defined below), an “Exchange”);
provided, that (absent a waiver by the Managing Member) any such Exchange is for a minimum of the lesser of (i) 100,000 Units
(which minimum shall be equitably adjusted in accordance with any adjustments to the Exchange Rate) and (ii) all of the Units held
by such Unitholder.

 

(b) A Unitholder shall
exercise its right to make an Exchange as set forth in Section 2.1(a) above by delivering to OpCo, with a copy to the
Corporation, a written election of exchange in respect of the Paired Interests to be exchanged substantially in the form of Exhibit A
hereto (an “Exchange Notice”) in accordance with this Section 2.1(b). A Unitholder may deliver an Exchange
Notice with respect to an Unrestricted Exchange at any time, and, in any other case, during the Quarterly Exchange Notice Period preceding
the desired Exchange Date. An Exchange Notice with respect to an Unrestricted Exchange may specify that the Exchange is to be contingent
(including as to timing) upon the consummation of a purchase by another Person (whether in a tender or exchange offer, an underwritten
offering or otherwise) of the Class A Common Stock into which the Exchanged Units are exchangeable, or contingent (including as to
timing) upon the closing of an announced merger, consolidation or other transaction or event in which such Class A Common Stock would
be exchanged or converted or become exchangeable for or convertible into cash or other securities or property. Notwithstanding anything
to the contrary contained in this Agreement, if, in connection with an Exchange in accordance with this Section 2.1, a filing
is required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”), then the Exchange Date with
respect to all Exchanged Units which would be exchanged into shares of Class A Common Stock resulting from such Exchange shall be
delayed until the earlier of (i) such time as the required filing under the HSR Act has been made and the waiting period applicable
to such Exchange under the HSR Act shall have expired or been terminated or (ii) such filing is no longer required, at which time
such Exchange shall automatically occur without any further action by the holders of any such Exchanged Units. Each of the Unitholders
and the Corporation shall to promptly take all actions required to make such filing under the HSR Act and the filing fee for such filing
shall be paid by OpCo.

 

    	 	5	 

     

    

 

(c) Within three (3) Business
Days of the giving of an Exchange Notice, the Corporation, on behalf of OpCo, may elect to settle all or a portion of the Exchange in
cash in an amount equal to the Cash Exchange Payment (in lieu of Class A Common Stock) by giving written notice of such election
to the Exchanging Member within such three (3) Business Day period (such notice, the “Cash Exchange Notice”).
The Cash Exchange Notice shall set forth the portion of the Exchanged Units which will be exchanged for cash in lieu of Class A Common
Stock. Any portion of the Exchange not settled for a Cash Exchange Payment shall be settled for a Stock Exchange Payment.

 

(d) The Exchanging Member
may elect to retract its Exchange Notice with respect to an Unrestricted Exchange by giving written notice of such election to OpCo, with
a copy to the Corporation, no later than (1) Business Day prior to the Exchange Date. Subject to the last two (2) sentences
of this Section 2.1(d), if, in the case of an Exchange that is not an Unrestricted Exchange, the Cash Exchange Class A
5-Day VWAP (determined treating the final date of such period as the Exchange Date) decreases by more than ten percent (10%) from the
Cash Exchange Class A 5-Day VWAP (determined treating the final date of such period as the date of delivery of an Exchange Notice),
the Exchanging Member may elect to retract its Exchange Notice by giving written notice of such election (a “Restricted Retraction
Notice”) to OpCo, with a copy to the Corporation, no later than three (3) Business Days prior to the Exchange Date. The
giving of a Restricted Retraction Notice pursuant to this Section 2.1(d) shall terminate all of the Exchanging Member’s,
the Corporation’s and OpCo’s rights and obligations under this Article II arising from such retracted Exchange
Notice (but not, for the avoidance of doubt, from any Exchange Notice not retracted or that may be delivered in the future). An Exchanging
Member may deliver a Restricted Retraction Notice only once in every twelve (12)-month period (and any additional Restricted Retraction
Notice delivered by such Exchanging Member within such twelve (12)-month period shall be deemed null and void ab initio and ineffective
with respect to the revocation of the Exchange specified therein).

 

(e) Notwithstanding anything
to the contrary in this Agreement, if the Corporation closes an underwritten distribution of the shares of Class A Common Stock and
the Unitholders (other than, or in addition to, the Corporation) were entitled to resell shares of Class A Common Stock in connection
therewith (by the exercise by such Unitholders of Exchange rights or otherwise) (a “Secondary Offering”), then, the
immediately succeeding Quarterly Exchange Date shall be automatically cancelled and of no force or effect (and no Unitholder shall be
entitled to exercise its Exchange right or deliver a Quarterly Exchange Date Notice with respect to an Exchange that is not an Unrestricted
Exchange in respect of such Quarterly Exchange Date). Notwithstanding anything to the contrary in this Agreement (i) for so long
as OpCo does not meet the requirements of the Private Placement Safe Harbor, any Secondary Offering (other than that pursuant to which
all Exchanges are Unrestricted Exchanges) shall only be undertaken if, during the applicable taxable year, the total number of Quarterly
Exchange Dates and prior Secondary Offerings (other than any pursuant to which all Exchanges are Unrestricted Exchanges) on which Exchanges
occur is three (3) or fewer and (ii) OpCo and the Corporation shall not be deemed to have failed to comply with their respective
obligations under the Corporation’s Amended and Restated Registration Rights Agreement, dated August 17, 2021, as amended from
time to time, if a Secondary Offering cannot be undertaken due to the restriction set forth in the preceding clause (i).

 

SECTION 2.2 Exchange
Payment

 

(a) The Exchange shall
be consummated on the Exchange Date.

 

(b) On the Exchange Date
(to be effective immediately prior to the close of business on the Exchange Date), in the case of a Redemption, (i) the Corporation
shall contribute to OpCo, for delivery to the Exchanging Member (A) the Stock Exchange Payment with respect to any Exchanged Units
not subject to a Cash Exchange Notice and (B) the Cash Exchange Payment with respect to any Exchanged Units subject to a Cash Exchange
Notice, (ii) the Exchanging Member shall transfer and surrender the Exchanged Units to OpCo and simultaneously surrender the corresponding
number of shares of Class V Common Stock to the Corporation, free and clear of all liens and encumbrances, (iii) OpCo shall
issue to the Corporation a number of Units equal to the number of Exchanged Units surrendered pursuant to clause (ii) and
(iv) the Corporation shall cancel the exchanged shares of Class V Common Stock, and (v) OpCo shall (A) cancel
the redeemed Exchanged Units and (B) transfer to the Exchanging Member the Cash Exchange Payment and/or the Stock Exchange Payment,
as applicable.

 

    	 	6	 

     

    

 

(c) On the Exchange Date
(to be effective immediately prior to the close of business on the Exchange Date), in the case of a Direct Exchange, (i) the Corporation
shall deliver to the Exchanging Member, (A) the Stock Exchange Payment with respect to any Exchanged Units not subject to a Cash
Exchange Notice and (B) the Cash Exchange Payment with respect to any Exchanged Units subject to a Cash Exchange Notice, (ii) the
Exchanging Member shall transfer to the Corporation the Exchanged Units and the corresponding shares of Class V Common Stock (it
being understood that the Corporation shall cancel the surrendered shares of Class V Common Stock), free and clear of all liens and
encumbrances, and (iii) solely to the extent necessary in connection with a Direct Exchange, the Corporation shall undertake all
actions, including an issuance, reclassification, distribution, division or recapitalization, with respect to the shares of Class A
Common Stock to maintain a one-to-one ratio between the number of Units owned by the Corporation, directly or indirectly, and the number
of outstanding shares of Class A Common Stock, any Stock Exchange Payment, and any other action taken in connection with this Section 2.2.

 

(d) Upon the Exchange of
all of a Unitholder’s Units, such Unitholder shall cease to be a Member (as such term is defined in the OpCo LLC Agreement) of OpCo.

 

SECTION 2.3 Expenses
and Restrictions.

 

(a) Except as expressly
set forth in this Agreement, OpCo and each Exchanging Member shall bear its own expenses in connection with the consummation of any Exchange,
whether or not any such Exchange is ultimately consummated, except that OpCo shall bear any transfer taxes, stamp taxes or duties, or
other similar taxes in connection with, or arising by reason of, any Exchange; provided, however, that if any shares of
Class A Common Stock are to be delivered in a name other than that of the Unitholder that requested the Exchange, then such Unitholder
and/or the Person in whose name such shares are to be delivered shall pay to OpCo the amount of any transfer taxes, stamp taxes or duties,
or other similar taxes in connection with, or arising by reason of, such Exchange or shall establish to the reasonable satisfaction of
OpCo that such tax has been paid or is not payable.

 

(b) Notwithstanding anything
to the contrary herein, the Corporation or OpCo shall use commercially reasonable efforts to restrict issuances of Units in an amount
sufficient for OpCo to be eligible for the Private Placement Safe Harbor, and, to the extent that the Corporation or OpCo determine that
OpCo does not meet the requirements of the Private Placement Safe Harbor at any point in any taxable year, the Corporation or OpCo may
impose such restrictions on Exchanges during such taxable year as the Corporation or OpCo may determine to be necessary or advisable so
that OpCo is not treated as a “publicly traded partnership” under Section 7704 of the Code; provided, that restrictions
imposed pursuant to this Section 2.3(b) shall not apply to any Unrestricted Exchange. Notwithstanding anything to the
contrary herein, no Exchange shall be permitted (and, if attempted, shall be void ab initio) if, in the good faith determination
of the Corporation or of OpCo, such an Exchange would pose a material risk that OpCo would be a “publicly traded partnership”
under Section 7704 of the Code.

 

(c) For the avoidance of
doubt, and notwithstanding anything to the contrary herein, a Unitholder shall not be entitled to effect an Exchange to the extent the
Corporation determines in good faith that such Exchange (i) would be prohibited by law or regulation (including, without limitation,
the unavailability of any requisite registration statement filed under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), or any exemption from the registration requirements thereunder) or (ii) would not be permitted under any other agreements
with the Corporation or its subsidiaries to which such Unitholder may be party (including, without limitation, the OpCo LLC Agreement)
or any written policies of the Corporation related to unlawful or inappropriate trading applicable to its directors, officers or other
personnel.

 

(d) The Corporation may
adopt reasonable procedures for the implementation of the exchange provisions set forth in this Article II, including, without
limitation, procedures for the giving of notice of an election of exchange.

 

    	 	7	 

     

    

 

SECTION 2.4 Adjustment.
The Exchange Rate shall be adjusted accordingly if there is: (a) any subdivision (by any unit split, unit distribution, reclassification,
reorganization, recapitalization or otherwise) or combination (by reverse unit split, reclassification, reorganization, recapitalization
or otherwise) of the Units that is not accompanied by an identical subdivision or combination of the Class A Common Stock or (b) any
subdivision (by any stock split, stock dividend or distribution, reclassification, reorganization, recapitalization or otherwise) or combination
(by reverse stock split, reclassification, reorganization, recapitalization or otherwise) of the Class A Common Stock that is not
accompanied by an identical subdivision or combination of the Units. If there is any reclassification, reorganization, recapitalization
or other similar transaction in which the Class A Common Stock are converted or changed into another security, securities or other
property, then upon any subsequent Exchange, an Exchanging Member shall be entitled to receive the amount of such security, securities
or other property that such Exchanging Member would have received if such Exchange had occurred immediately prior to the effective time
of such reclassification, reorganization, recapitalization or other similar transaction, taking into account any adjustment as a result
of any subdivision (by any split, distribution or dividend, reclassification, reorganization, recapitalization or otherwise) or combination
(by reverse split, reclassification, recapitalization or otherwise) of such security, securities or other property that occurs after the
effective time of such reclassification, reorganization, recapitalization or other similar transaction. Except as may be required in the
immediately preceding sentence, no adjustments in respect of distributions shall be made upon the exchange of any Unit.

 

SECTION 2.5 Class A
Common Stock to be Issued.

 

(a) The Corporation shall
at all times reserve and keep available out of its authorized but unissued Class A Common Stock, solely for the purpose of issuance
upon an Exchange, such number of shares of Class A Common Stock as may be deliverable upon any such Exchange; provided, that
nothing contained herein shall be construed to preclude OpCo from satisfying its obligations in respect of the Exchange of the Exchanged
Units by delivery of shares of Class A Common Stock which are held in the treasury of the Corporation or are held by OpCo or any
of their subsidiaries or by delivery of purchased shares of Class A Common Stock (which may or may not be held in the treasury of
the Corporation or held by any subsidiary thereof), or by delivery of the Cash Exchange Payment. The Corporation and OpCo shall at all
times ensure that all Class A Common Stock issued upon an Exchange will, upon issuance, be validly issued, fully paid and non-assessable.

 

(b) The Corporation and
OpCo shall at all times ensure that the execution and delivery of this Agreement by each of the Corporation and OpCo and the consummation
by each of the Corporation and OpCo of the transactions contemplated hereby (including without limitation, the issuance of the Class A
Common Stock) have been duly authorized by all necessary corporate or limited liability company action, as the case may be, on the part
of the Corporation and OpCo, including, but not limited to, all actions necessary to ensure that the acquisition of shares of Class A
Common Stock pursuant to the transactions contemplated hereby, to the fullest extent of the Corporation’s board of directors’
power and authority and to the extent permitted by law, shall not be subject to any “moratorium,” “control share acquisition,”
 “business combination,” “fair price” or other form of anti-takeover laws and regulations of any jurisdiction that
may purport to be applicable to this Agreement or the transactions contemplated hereby.

 

(c) The Corporation and
OpCo shall, to the extent that a registration statement under the Securities Act is effective and available for shares of Class A
Common Stock to be delivered with respect to any Exchange, deliver shares that have been registered under the Securities Act in respect
of such Exchange. In the event that any Exchange in accordance with this Agreement is to be effected at a time when any required registration
has not become effective or otherwise is unavailable, upon the request and with the reasonable cooperation of the Unitholder requesting
such Exchange, the Corporation and OpCo shall use commercially reasonable efforts to promptly facilitate such Exchange pursuant to any
reasonably available exemption from such registration requirements. The Corporation and OpCo shall use commercially reasonable efforts
to list the Class A Common Stock required to be delivered upon exchange prior to such delivery upon each national securities exchange
or inter-dealer quotation system upon which the outstanding Class A Common Stock may be listed or traded at the time of such delivery.

 

SECTION 2.6 Direct
Exchange. Notwithstanding anything to the contrary in this Article II, the Corporation may, in its sole and absolute discretion,
elect to effect on the Exchange Date the Exchange of Exchanged Units for the Cash Exchange Payment and/or the Stock Exchange Payment,
as the case may be (and subject to the terms of Section 2.2(b) and (c)), through a direct exchange of such Exchanged
Units and with such consideration between the Exchanging Member and the Corporation (a “Direct Exchange”). Upon such
Direct Exchange pursuant to this Section 2.6, the Corporation shall acquire the Exchanged Units and shall be treated for all
purposes of this Agreement as the owner of such Units; provided, that, any such election by the Corporation shall not relieve OpCo
of its obligation arising with respect to such applicable Exchange Notice. The Corporation may, at any time prior to an Exchange Date,
deliver written notice (an “Direct Exchange Election Notice”) to OpCo and the Exchanging Member setting forth its election
to exercise its right to consummate a Direct Exchange; provided, that such election does not prejudice the ability of the parties
to consummate an Exchange or Direct Exchange on the Exchange Date. A Direct Exchange Election Notice may be revoked by the Corporation
at any time; provided, that any such revocation does not prejudice the ability of the parties to consummate an Exchange or Direct
Exchange on the Exchange Date. The right to consummate a Direct Exchange in all events shall be exercisable for all the Exchanged Units
that would otherwise have been subject to an Exchange. Except as otherwise provided in this Section 2.6, a Direct Exchange
shall be consummated pursuant to the same timeframe and in the same manner as the relevant Exchange would have been consummated had the
Corporation not delivered a Direct Exchange Election Notice.

 

    	 	8	 

     

    

 

SECTION 2.7. Corporation Offer
or Change of Control.

 

(a) In the event that a
tender offer, share exchange offer, issuer bid, take-over bid, recapitalization or similar transaction with respect to Class A Common
Stock (a “Corporation Offer”) is proposed by the Corporation or is proposed to the Corporation or its stockholders
and approved by the Board or is otherwise effected or to be effected with the consent or approval of the Board or the Corporation will
undergo a Change of Control, the Unitholders shall be permitted to deliver an Exchange Notice (which Exchange Notice shall be effective
immediately prior to the consummation of such Corporation Offer or Change of Control (and, for the avoidance of doubt, shall be contingent
upon such Corporation Offer or Change of Control and not be effective if such Corporation Offer or Change of Control is not consummated)).
In the case of a Corporation Offer proposed by the Corporation, the Corporation will use its reasonable best efforts expeditiously and
in good faith to take all such actions and do all such things as are necessary or desirable to enable and permit the Unitholders to participate
in such Corporation Offer to the same extent or on an economically equivalent basis as the holders of shares of Class A Common Stock
without discrimination.

 

(b) The Corporation shall
send written notice to OpCo and the Unitholders at least thirty (30) days prior to the closing of the transactions contemplated by the
Corporation Offer or the Change of Control date notifying them of their rights pursuant to this Section 2.7, and setting forth,
in the case of a Corporation Offer, (i) a copy of the written proposal or agreement pursuant to which the Corporation Offer will
be effected, (ii) the consideration payable in connection therewith, (iii) the terms and conditions of transfer and payment
and (iv) the date and location of and procedures for selling Units, or in the case of a Change of Control, (A) a description
of the event constituting the Change of Control, (B) the date of the Change of Control, and (C) a copy of any written proposals
or agreement relating thereto. In the event that the information set forth in such notice changes from that set forth in the initial notice,
a subsequent notice shall be delivered by the Corporation no less than seven (7) days prior to the closing of the Corporation Offer
or date of the Change of Control.

 

ARTICLE III

 

SECTION 3.1 Additional
Unitholders. To the extent a Unitholder validly transfers any or all of such holder’s Units to a Qualified Transferee in accordance
with, and not in contravention of, the Corporation’s certificate of incorporation, the OpCo LLC Agreement or any other agreement
or agreements with the Corporation or any of its subsidiaries to which a transferring Unitholder may be party, then such Qualified Transferee
shall have the right to execute and deliver a joinder to this Agreement, substantially in the form of Exhibit B hereto, whereupon
such Qualified Transferee shall become a Unitholder hereunder. To the extent OpCo issues Units in the future, OpCo shall be entitled,
in its sole discretion, to make any holder of such Units a Unitholder hereunder through such holder’s execution and delivery of
a joinder to this Agreement, substantially in the form of Exhibit B hereto.

 

SECTION 3.2 Addresses
and Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic mail (delivery
receipt requested) or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following
addresses (or at such other address for a party as shall be as specified in a notice given in accordance with this Section 3.2):

 

(a) If to the Corporation,
to:

 

P.O. Box 1303

Traverse City, MI 49685-1303

Attention: Barbara Matthews, General
Counsel

E-mail: bmatthews@hagerty.com

 

    	 	9	 

     

    

 

(b) If to OpCo, to:

 

P.O. Box 1303

Traverse City, MI 49685-1303

Attention: Barbara Matthews, General Counsel

E-mail: bmatthews@hagerty.com

 

(c) If to any Unitholder,
to the address or other contact information set forth in the records of OpCo from time to time.

 

SECTION 3.3 Further
Action. Each party hereto agrees that it will from time to time, upon the reasonable request of another party, execute such documents
and instruments and take such further action as may be required to accomplish the purposes of this Agreement.

 

SECTION 3.4 Binding
Effect. All of the terms and provisions of this Agreement shall be binding upon the parties and their respective successors and assigns,
but shall inure to the benefit of and be enforceable by the successors and assigns of any Unitholder only to the extent that they are
permitted successors and assigns pursuant to the terms hereof. No party hereto may assign its rights hereunder except as herein expressly
permitted.

 

SECTION 3.5 Severability.
If any provision of this Agreement is determined to be invalid, illegal or unenforceable by any Governmental Entity, the remaining provisions
of this Agreement, to the extent permitted by Law shall remain in full force and effect; provided, that the essential terms
and conditions of this Agreement for all parties remain valid, binding and enforceable.

 

SECTION 3.6 Amendment.

 

(a) The terms and provisions
of this Agreement may only be waived, modified or amended (including by means of merger, consolidation or other business combination to
which OpCo is a party) with the approval of (y) the Managing Member and (z) if at such time the Unitholders (other than the
Corporation) beneficially own, in the aggregate, more than ten percent (10%) of the then-outstanding Units, the holders of greater than
fifty percent (50%) of the outstanding Units held by Unitholders other than the Corporation; provided, that no waiver, modification
or amendment shall be effective until at least five (5) Business Days after written notice is provided to the Unitholders that the
requisite consent has been obtained for such waiver, modification or amendment, and any Unitholder, including any Unitholder not providing
written consent, shall have the right to undertake an Exchange prior to the effectiveness of such waiver, modification or amendment; provided,
further, that no amendment to this Agreement may materially alter or change any rights, preferences or privileges of any Unitholder
(including the ability to Exchange Paired Interests pursuant to this Agreement)in a manner that is different or prejudicial (or would
have a different or prejudicial effect) relative to any other Interests, without the approval of a majority in interest of the Unitholders
holding the Interests affected in such a different or prejudicial manner.

 

(b) Notwithstanding the
provisions of Section 3.6(a), the Managing Member, acting alone, may amend this Agreement or update the books and records
of OpCo (i) to reflect the admission of new Unitholders, transfers of Interests, the issuance of additional Equity Securities, as
provided by the terms of this Agreement, and, subject to Section 3.6(a), subdivisions or combinations of Units made in compliance
with Section 3.1(g) of the OpCo LLC Agreement, (ii) to the minimum extent necessary to comply with or administer
in an equitable manner the Partnership Tax Audit Rules in any manner determined by the Managing Member, and (iii) as necessary
to avoid OpCo being classified as a “publicly traded partnership” within the meaning of Section 7704(b) of the Code.

 

SECTION 3.7 Waiver.
No waiver of any provision or default under, nor consent to any exception to, the terms of this Agreement or any agreement contemplated
hereby shall be effective unless in writing and signed by the party to be bound and then only to the specific purpose, extent and instance
so provided.

 

SECTION 3.8 Submission
to Jurisdiction; Waiver of Jury Trial.

 

(a) The parties hereto
hereby agree and consent to be subject to the jurisdiction of any federal court of the District of Delaware or the Delaware Court of Chancery
over any action, suit or proceeding (a “Legal Action”) arising out of or in connection with this Agreement. The parties
hereto irrevocably waive the defense of an inconvenient forum to the maintenance of any such Legal Action. Each of the parties hereto
further irrevocably consents to the service of process out of any of the aforementioned courts in any such Legal Action by the mailing
of copies thereof by registered mail, postage prepaid, to such party at its address set forth in this Agreement, such service of process
to be effective upon acknowledgment of receipt of such registered mail. Nothing in this Section 3.8 shall affect the right
of any party hereto to serve legal process in any other manner permitted by law.

 

    	 	10	 

     

    

 

(b) To the extent that
any party has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service
or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself, or to such party’s
property, each such party hereby irrevocably waives such immunity in respect of such party’s obligations with respect to this Agreement.

 

(c) EACH PARTY ACKNOWLEDGES
THAT IT IS KNOWINGLY AND VOLUNTARILY AGREEING TO THE CHOICE OF DELAWARE LAW TO GOVERN THIS AGREEMENT AND TO THE JURISDICTION OF DELAWARE
COURTS IN CONNECTION WITH PROCEEDINGS BROUGHT HEREUNDER. THE PARTIES INTEND THIS TO BE AN EFFECTIVE CHOICE OF DELAWARE LAW AND AN EFFECTIVE
CONSENT TO JURISDICTION AND SERVICE OF PROCESS UNDER 6 DEL. C. § 2708.

 

(d) EACH OF THE CORPORATION,
HHC, MARKEL AND ANY INDEMNITEES SEEKING REMEDIES HEREUNDER HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT IT MAY HAVE
TO TRIAL BY JURY IN RESPECT OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE.

 

SECTION 3.9 Counterparts.
This Agreement and any amendment hereto or any other agreement (or document) delivered pursuant hereto may be executed in one or more
counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and the same agreement (or
other document) and shall become effective (unless otherwise provided therein) when one or more counterparts have been signed by each
party and delivered to the other party.

 

SECTION 3.10 Tax Treatment.
This Agreement shall be treated as part of the partnership agreement of OpCo as described in Section 761(c) of the Code and
Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations promulgated thereunder. As required by the Code and
the Treasury Regulations, the parties shall report any Exchange consummated hereunder as a taxable sale of the Exchanged Units by a Unitholder
to the Corporation in exchange for (a) the payment by the Corporation of the Stock Exchange Payment, the Cash Exchange Payment, or
other applicable consideration to the Exchanging Member, and (b) corresponding payments under the Tax Receivable Agreement, and no
party shall take a contrary position on any income tax return, amendment thereof or communication with a taxing authority unless an alternate
position that is permitted under the Code and Treasury Regulations is requested by the Exchanging Member and the Corporation consents
in writing, such consent not to be unreasonably withheld, conditioned, or delayed. Further, in connection with any Exchange consummated
hereunder, OpCo and/or the Corporation shall provide the Exchanging Member with all reasonably necessary information to enable the Exchanging
Member to file its income tax returns for the taxable year that includes the Exchange, including information with respect to Code Section 751
assets (including relevant information regarding “unrealized receivables” or “inventory items”) and Section 743(b) basis
adjustments as soon as practicable and in all events within sixty (60) days following the close of such taxable year (and use commercially
reasonable efforts to provide estimates of such information within ninety (90) days of the applicable Exchanges). Within thirty (30) days
following the Exchange Date, the Corporation shall deliver a Section 743 notification to OpCo in accordance with Treasury Regulations
Section 1.743-1(k)(2).

 

    	 	11	 

     

    

 

SECTION 3.11 Withholding.
The Corporation and OpCo shall be entitled to deduct and withhold from any payments made to a Unitholder pursuant to any Exchange consummated
under this Agreement all taxes that each of the Corporation and OpCo is required to deduct and withhold with respect to such payments
under the Code (and any other provision of applicable law, including, without limitation, under Section 1445 and Section 1446(f) of
the Code). In connection with any Exchange, the Exchanging Member shall, to the extent it is legally entitled to deliver such form, deliver
to the Corporation or OpCo, as applicable, a certificate, dated as of the Exchange Date, in a form reasonably acceptable to the Corporation
certifying as to such Exchanging Member’s taxpayer identification number and that such Exchanging Member is a not a foreign person
for purposes of Section 1445 and Section 1446(f) of the Code (which certificate may be an Internal Revenue Service Form W-9
if then sufficient for such purposes under applicable law) (such certificate, a “Non-Foreign Person Certificate”).
If an Exchanging Member is unable to provide a Non-Foreign Person Certificate the Corporation or OpCo, as applicable, shall be permitted
to withhold on the amount realized by such Exchanging Member in respect of such Exchange as provided in Section 1446(f) of the
Code and Regulations thereunder; provided that the Corporation and OpCo shall reasonably cooperate with the Exchanging Member to reduce
or eliminate such withholding to the extent permitted by law. The Corporation or OpCo, as applicable, may at their sole discretion reduce
the Class A Common Stock issued to a Unitholder in an Exchange in an amount that corresponds to the amount of the required withholding
described in the immediately preceding sentence and all such amounts shall be treated as having been paid to such Unitholder.

 

SECTION 3.12 Specific
Performance. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that such parties shall
be entitled to specific performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled at
law or in equity.

 

SECTION 3.13 Independent
Nature of Unitholders’ Rights and Obligations. The obligations of each Unitholder hereunder are several and not joint with
the obligations of any other Unitholder, and no Unitholder shall be responsible in any way for the performance of the obligations of
any other Unitholder hereunder. The decision of each Unitholder to enter into this Agreement has been made by such Unitholder independently
of any other Unitholder. Nothing contained herein, and no action taken by any Unitholder pursuant hereto, shall be deemed to constitute
the Unitholders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Unitholders
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated hereby. The Corporation
acknowledges that the Unitholders are not acting in concert or as a group, and the Corporation will not assert any such claim, with respect
to such obligations or the transactions contemplated hereby.

 

SECTION 3.14 Applicable
Law. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual, instituted by
any party with respect to matters arising under or growing out of or in connection with or in respect of this Agreement shall be governed
by and construed in accordance with the Laws of the State of Delaware applicable to contracts made and performed in such state and without
regard to conflicts of law doctrines, except to the extent that certain matters are preempted by federal Law or are governed as a matter
of controlling Law by the Law of the jurisdiction of organization of the respective parties.

 

[Remainder of Page Intentionally Left
Blank]

 

    	 	12	 

     

    

 

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

 

	 	Hagerty, Inc.
	 	 
	 	By:	/s/ McKeel Hagerty
	 	Name:	 McKeel Hagerty
	 	Title:	Chief Executive Officer

 

[Signature Page to Exchange Agreement]

 

     

     

    

 

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

 

	 	The
    Hagerty Group, LLC
	 	 
	 	By:	/s/ McKeel Hagerty
	 	Name:	McKeel Hagerty
	 	Title:	Chief Executive Officer

 

[Signature Page to Exchange Agreement]

 

     

     

    

 

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

 

	 	Hagerty
    Holding Corp.
	 	 
	 	By:	/s/ McKeel Hagerty
	 	Name:	McKeel Hagerty
	 	Title:	Chief Executive Officer

 

[Signature Page to Exchange Agreement]

 

     

     

    

 

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

 

	 	Markel
    Corporation
	 	 
	 	By:	/s/ Richard R. Whitt, III
	 	Name:	Richard R. Whitt, III
	 	Title:	Co-Chief Executive Officer

 

[Signature Page to Exchange Agreement]

 

     

     

    

 

EXHIBIT A

EXCHANGE NOTICE

 

Hagerty, Inc.

Attn: General Counsel

P.O. Box 1303

Traverse City, MI 49685-1303

 

Reference is hereby made to
the Exchange Agreement, dated as of December 2, 2021 (as amended from time to time, the “Exchange Agreement”),
by and among The Hagerty Group, LLC, a Delaware limited liability company (together with any successor thereto, “OpCo”),
Hagerty, Inc., a Delaware corporation (“Corporation”) and managing member of OpCo, and the Unitholders from time
to time party thereto (each, a “Holder”). Capitalized terms used but not defined herein shall have the meanings given
to them in the Exchange Agreement.

 

The undersigned Holder hereby
transfers the number of Units plus shares of Class V Common Stock set forth below (together, the “Paired Interests”)
in Exchange for shares of Class A Common Stock to be issued in its name as set forth below, or the Cash Exchange Payment, as applicable,
as set forth in the Exchange Agreement.

 

	Legal Name of Holder:	 	 

 

	Address:	 	 

 

	Number of Paired Interests to be Exchanged:	 	 

 

	Brokerage Account Details:	 	 

 

The undersigned hereby represents
and warrants that (a) the undersigned has full legal capacity to execute and deliver this Exchange Notice and to perform the undersigned’s
obligations hereunder; (b) this Exchange Notice has been duly executed and delivered by the undersigned and is the legal, valid
and binding obligation of the undersigned enforceable against it in accordance with the terms thereof or hereof, as the case may be,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and the availability of equitable
remedies; (c) the Paired Interests subject to this Exchange Notice are being transferred to the Corporation or OpCo, as applicable,
free and clear of any pledge, lien, security interest, encumbrance, equities or claim; and (d) no consent, approval, authorization,
order, registration or qualification of any third party or with any court or governmental agency or body having jurisdiction over the
undersigned or the Paired Interests subject to this Exchange Notice is required to be obtained by the undersigned for the transfer of
such Paired Interests to the Corporation or OpCo, as applicable.

 

The undersigned hereby irrevocably
constitutes and appoints any officer of the Corporation or of OpCo as the attorney of the undersigned, with full power of substitution
and resubstitution in the premises, to do any and all things and to take any and all actions that may be necessary to transfer to the
Corporation or OpCo, as applicable, the Paired Interests subject to this Exchange Notice and to deliver to the undersigned the Stock
Exchange Payment or Cash Exchange Payment, as applicable, to be delivered in exchange therefor.

 

     

     

    

 

IN WITNESS WHEREOF the undersigned,
by authority duly given, has caused this Exchange Notice to be executed and delivered by the undersigned or by its duly authorized attorney.

 

	 	Name:	 
	 	Dated:	 

 

[Signature Page to Exchange Agreement]

 

     

     

    

 

EXHIBIT B

 

JOINDER

 

This Joinder Agreement (“Joinder
Agreement”) is a joinder to the Exchange Agreement, dated as of [●], 2021 (as amended from time to time, the “Exchange
Agreement”), among Hagerty, Inc., a Delaware corporation (together with any successor thereto, the “Corporation”),
The Hagerty Group, LLC, a Delaware limited liability company, and each of the Unitholders from time to time party thereto. Capitalized
terms used but not defined in this Joinder Agreement shall have their meanings given to them in the Exchange Agreement. This Joinder Agreement
shall be governed by, and construed in accordance with, the law of the State of Delaware. In the event of any conflict between this Joinder
Agreement and the Exchange Agreement, the terms of this Joinder Agreement shall control.

 

The undersigned hereby joins
and enters into the Exchange Agreement having acquired Units in The Hagerty Group, LLC. By signing and returning this Joinder Agreement
to the Corporation, the undersigned accepts and agrees to be bound by and subject to all of the terms and conditions of and agreements
of a Unitholder contained in the Exchange Agreement, with all attendant rights, duties and obligations of a Unitholder thereunder. The
parties to the Exchange Agreement shall treat the execution and delivery hereof by the undersigned as the execution and delivery of the
Exchange Agreement by the undersigned and, upon receipt of this Joinder Agreement by the Corporation and by The Hagerty Group, LLC, the
signature of the undersigned set forth below shall constitute a counterpart signature to the signature page of the Exchange Agreement.

 

	Name:	 	 

 

	Address for Notices:
	 	 
	 	 
	 	 
	 	 
	 	 

 

	 	 
	Attention:	 	 
	 	 
	With copies to:

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