Document:

Exhibit 10.14

  

	 	CONFIDENTIAL INFORMATION	Execution Version

 

LOSS PORTFOLIO
TRANSFER AND ADVERSE DEVELOPMENT

 RETROCESSION AGREEMENT

 

by and among

 

R&Q BERMUDA (SAC) LIMITED

ACTING IN RESPECT OF THE HIIG SEGREGATED ACCOUNT

 

and

 

HIIG RE

 

and

 

solely for purposes of Article 7, Article 11, Article
12, Article 23, and Article 28

(and Article 2 and Article 30 to the extent relating to any of the foregoing)

HOUSTON SPECIALTY INSURANCE COMPANY, IMPERIUM INSURANCE COMPANY, AND

GREAT MIDWEST INSURANCE COMPANY

 

Dated as of April 1, 2020

 

    

     

    

 

TABLE OF CONTENTS

 

	ARTICLE SUBJECT	PAGE
	ARTICLE 1 BUSINESS COVERED	2
	ARTICLE 2 DEFINITIONS	3
	ARTICLE 3 COMMENCEMENT AND TERMINATION	9
	ARTICLE 4 EXCLUSIONS	9
	ARTICLE 5 RETROCESSION COVERAGE & APPLICATION OF DEDUCTIBLE	9
	ARTICLE 6 PREMIUM	11
	ARTICLE 7 ROLL FORWARD OF ORIGINAL AMOUNTS	11
	ARTICLE 8 REINSURANCE WARRANTY	13
	ARTICLE 9 ADMINISTRATION OF SUBJECT BUSINESS	15
	ARTICLE 10 ACCOUNTING FOR RESERVES	17
	ARTICLE 11 COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT
    FOR REINSURANCE	17
	ARTICLE 12 REPORTS AND SETTLEMENTS	22
	ARTICLE 13 COMMUTATION	23
	ARTICLE 14 ACCESS TO RECORDS	24
	ARTICLE 15 ARBITRATION	25
	ARTICLE 16 CONFIDENTIALITY	26
	ARTICLE 17 CURRENCY	27
	ARTICLE 18 DELAYS, ERRORS AND OMISSIONS	27
	ARTICLE 19 EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF
    POLICY LIMITS	27
	ARTICLE 20 FEDERAL EXCISE TAX	28
	ARTICLE 21 TAX INFORMATION REPORTING AND WITHHOLDING	29
	ARTICLE 22 INSOLVENCY	29
	ARTICLE 23 OFFSET	30
	ARTICLE 24 PRIVACY & PROTECTION OF DATA	30
	ARTICLE 25 SANCTIONS	31
	ARTICLE 26 SERVICE OF SUIT	31
	ARTICLE 27 REGULATORY MATTERS	32
	ARTICLE 28 LIMITED RECOURSE AND BERMUDA REGULATIONS	32
	ARTICLE 29 REPRESENTATIONS AND WARRANTIES; COVENANTS	32
	ARTICLE 30 MISCELLANEOUS	33

 

EXHIBIT A SUBJECT BUSINESS

EXHIBIT B REINSURANCE AGREEMENT

EXHIBIT C FORM OF STATUTORY TRUST AGREEMENT

EXHIBIT D ROLL FORWARD METHODS

EXHIBIT E SAMPLE CALCULATION OF REINSURANCE WARRANTY

 

    

     

    

 

LOSS PORTFOLIO TRANSFER AND ADVERSE
DEVELOPMENT 

RETROCESSION AGREEMENT

 

This LOSS PORTFOLIO TRANSFER
AND ADVERSE DEVELOPMENT RETROCESSION AGREEMENT (this “Retrocession Agreement”), dated as of April 1, 2020, is made
and entered into by and among HIIG Re, a Cayman Islands corporation (the “Reinsurer”), R&Q Bermuda (SAC) Limited,
a Bermuda limited company, acting in respect of the HIIG Segregated Account (in such capacity, the “Retrocessionaire”),
and, solely for purposes of Article 7, Article 11, Article 12, Article 23, and Article 28 (and Article 2 and Article 30 to the extent
relating to any of the foregoing), Houston Specialty Insurance Company, a Texas domiciled insurance company, Imperium Insurance Company,
a Texas domiciled insurance company, and Great Midwest Insurance Company, a Texas domiciled insurance company, (each a “Company,”
and collectively, the “Companies”).

 

W I T N E S S E T H:

 

WHEREAS, the Companies and
Oklahoma Specialty Insurance Company, each an affiliate of Reinsurer, underwrote certain insurance programs (the “Reinsured Business”)
which Reinsurer reinsured in accordance with that certain Loss Portfolio Transfer and Adverse Development Reinsurance Agreement by and
between Companies and Reinsurer, dated as of the date hereof and attached hereto as Exhibit B (the “Reinsurance Agreement”);

 

WHEREAS, Reinsurer desires
to obtain retrocession coverage for certain of the Reinsurer’s obligations under the Reinsurance Agreement with respect to such
portion of the Reinsured Business as is hereinafter defined as the Subject Business, and Retrocessionaire desires to provide the same,
under and subject to the terms and conditions set forth in this Retrocession Agreement; and

 

WHEREAS, on the date hereof,
concurrent with the execution and delivery of this Retrocession Agreement, each Company individually, the Reinsurer, the Retrocessionaire
and The Bank of New York Mellon shall enter into certain Statutory Trust Agreements, pursuant to which Retrocessionaire shall collateralize
its obligations in respect of Ultimate Net Loss reinsured hereunder.

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, and intending to be legally bound hereby, Reinsurer and Retrocessionaire hereby agree as follows:

 

ARTICLE 1

 

BUSINESS COVERED

 

A.                
This Retrocession Agreement applies to all Ultimate Net Loss that is paid or payable by Reinsurer on and after the Effective Date
in respect of the Subject Business, subject to all the terms and conditions of this Retrocession Agreement.

 

B.                  The
Retrocessionaire’s liability under this Retrocession Agreement shall commence at the Effective Time, and all reinsurance of
Ultimate Net Loss ceded hereunder is subject to the same risks, terms, rates, conditions, assessments, interpretations, waivers,
modifications, alterations and cancellations as the respective Policies to which this Retrocession Agreement applies, except as may
be expressly modified by the specific terms and conditions of this Retrocession Agreement, the true intent of this Retrocession
Agreement being that the Retrocessionaire shall, except as may be expressly modified by the specific terms and conditions of this
Retrocession Agreement, (i) follow the fortunes of the Reinsurer and the Companies, and (ii) the Retrocessionaire shall be bound,
without limitation, by all payments and settlement entered into by or on behalf of the Reinsurer or the Companies, including (for
the avoidance of doubt) any payments or settlements entered into from the Effective Date to the date hereof.

 

C.                  Should
any regulatory or other legal restriction of any applicable jurisdiction require modification of any Policy to which this
Retrocession Agreement applies, or should any such Policy be modified in accordance with its terms or with consent of the
Retrocessionaire, the liability of the Retrocessionaire will follow that of the Reinsurer and the Companies, subject to the express
exclusions set forth herein and the other terms and conditions of this Retrocession Agreement.

 

    2

     

    

 

ARTICLE 2

 

DEFINITIONS

 

The Recitals are incorporated into this Retrocession
Agreement as if set forth at length herein. Capitalized terms as used in this Retrocession Agreement (including in the Recitals and Article
1) shall have the meanings set forth below throughout this Retrocession Agreement:

 

“Actuary’s
Rolled Amounts” has the meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Aggregate Limit”
has the meaning provided under the Article entitled RETROCESSION COVERAGE.

 

“Agreement Deadline”
has the meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Allocated Loss Adjustment
Expenses” means all expenses and costs sustained, without duplication, by the Reinsurer or the Companies in connection with
the adjustment, defense, settlement or litigation of claims or suits, satisfaction of judgments, or resistance to or negotiations concerning
a Loss or potential Loss under specific Policies. Allocated Loss Adjustment Expenses shall include (i) the expenses and costs of TPAs
(which, for the avoidance of doubt, shall not constitute Unallocated Loss Adjustment Expenses), (ii) legal expenses and costs incurred
in connection with coverage analysis and questions regarding specific claims and legal actions assignable to a specific Policy, including
declaratory judgment actions connected thereto (whether or not a Loss is incurred), (iii) all interest on judgments, and (iv) expenses
and costs sustained to obtain recoveries, salvages or other reimbursements, or to secure the reversal or reduction of a verdict or judgment.
Allocated Loss Adjustment Expenses shall not include any normal overhead, office expenses, fees, commissions, salaries and other employee
compensation, and other similar expenses of the Reinsurer, TPAs, or the Companies, whether or not incurred in connection with adjusting
a Loss, which shall be termed the “Unallocated Loss Adjustment Expenses.”

 

“Board” has the meaning provided under
the Article entitled ARBITRATION.

 

“Brokerage”
means the brokerage fee payable to Guy Carpenter, LLC by the Reinsurer on behalf of the Retrocessionaire in respect of the transactions
contemplated herein, in the amount of [***].

 

“Business Day”
means a day other than (i) a Saturday; (ii) a Sunday; or (iii) a day on which banking institutions or trust companies in Texas, the Cayman
Islands, or Bermuda, are authorized or required by applicable Law or executive order to remain closed.

 

    3

     

    

  

“Ceded Reserves”
means the Reserves for Ultimate Net Loss ceded to the Reinsurer under the Reinsurance Agreement in respect of Subject Business (including,
for the avoidance of doubt, reserves for IBNR), calculated in accordance with SAP for the Companies.

 

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

 

“Collateral Deficit”
has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Collateral Dispute
Notice” has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Collateral Excess”
has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Collateral Funds”
has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Collateral Offset”
has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Company”
and “Companies” have the meanings provided under the Preamble to this Retrocession Agreement.

 

“Confidential Information”
has the meaning provided under the Article entitled CONFIDENTIALITY.

 

“Deductible”
means One Hundred Five Million Dollars ($105,000,000.00), which amount shall be rolled forward pursuant to the Article entitled ROLL
FORWARD OF ORIGINAL AMOUNTS.

 

“Deemed Amounts”
has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

“Disclosing Party”
has the meaning provided under the Article entitled CONFIDENTIALITY.

 

“Doctrine” has the meaning provided
under the Article entitled ACCESS TO RECORDS. “Effective Date” means April 1, 2020.

 

“Effective Time” means 12:00:01 a.m. Central
Time on the Effective Date.

 

“Eligible
Assets” means cash (United States legal tender), certificates of deposit (issued by a bank organized under the laws of the
United States, or located in the United States, and payable in United States legal tender), or investments of the types permitted by
Texas Insurance Code § 493.104; provided that such investments are issued by an institution that is not the parent,
subsidiary, or affiliate of any of the Companies, the Reinsurer or the Retrocessionaire and such investments comply with the
investment guidelines agreed by the Companies, the Reinsurer and the Retrocessionaire. The Companies, the Reinsurer and the
Retrocessionaire agree that “Eligible Assets” shall not include any assets held or principally traded outside the United
States. The Parties further agree that the defined term “Eligible Assets” do not include mortgages, collateralized debt
obligations, collateralized loan obligations, real estate or derivatives. Additionally, to be an Eligible Asset, an investment must
be interest bearing, interest accruing with a specific maturity date on which redemption is to be made at stated value, and not in
default and shall otherwise qualify under Texas Insurance Law.

 

    4

     

    

 

“Extra Contractual
Obligations” has the meaning provided under the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS.

 

“Fair Market Value” has the
meaning provided under the Statutory Trust Agreements.

 

“FET” has the meaning provided
under the Article entitled FEDERAL EXCISE TAX.

 

“Governmental Authorities”
means collectively any applicable federal, state, local or foreign governmental, administrative or regulatory authority, court, agency
or instrumentality, including the Texas Department of Insurance.

 

“Group A Participation
Attachment Point” has the meaning provided under the Article entitled RETROCESSION COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group A Policies” has the meaning
set forth under the definition of Subject Business herein.

 

“Group A Sublimit”
has the meaning provided under the Article entitled RETROCESSION COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group B Participation
Attachment Point” has the meaning provided under the Article entitled RETROCESSION COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group B Policies” has the meaning
set forth under the definition of Subject Business herein.

 

“Group B Sublimit”
has the meaning provided under the Article entitled RETROCESSION COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“IBNR”
means incurred but not reported losses, as calculated in accordance with SAP for the Companies.

 

“Inuring Reinsurance”
means reinsurance or retrocession coverages and related recoverables (as applicable) for the benefit of any of the Companies from unaffiliated
reinsurance companies to the extent covering the Subject Business which were procured prior to the earlier to occur of the date hereof
and the Effective Date, which shall be subject to the provisions of Article 8.

 

“Investment Manager”
has the meaning provided under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“IRS” means the U.S. Internal Revenue
Service.

 

“Law” means
any federal, state or local law, statute, ordinance, rule, regulation, or principle of common law or equity imposed by or on behalf of
a Governmental Authority.

 

“Loss(es)”
means, without duplication, all amounts paid or payable by the Reinsurer, the Companies or Oklahoma Specialty Insurance Company arising
(i) under any Policy, subject to the original Policy terms and limit (or any changes to such Policy terms or limit required by applicable
Law or approved in writing by the Retrocessionaire) or (ii) out of escheat or unclaimed property Laws applicable to the Policies. Losses
shall not include Allocated Loss Adjustment Expenses.

 

    5

     

    

 

“Loss Excess of Policy
Limits” has the meaning provided under the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS.

 

“Minimum Notional
Amount” has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

“Net Ceded Reserves”
means the Ceded Reserves which, subject to Article 5, are ceded to the Retrocessionaire hereunder. For the avoidance of doubt, Net Ceded
Reserves shall be net of:

 

		1.	the amount of all Inuring Reinsurance; and
	 	 	 

		2.	all salvage, subrogation and other recoverables actually received by or offset for the account of the
Reinsurer in respect therefor.

 

“Net Loss”
means, without duplication, all Loss, Allocated Loss Adjustment Expenses, Extra Contractual Obligations, and Loss Excess of Policy Limits,
payable on and after the Effective Date in respect of the Subject Business and ceded by the Companies to the Reinsurer pursuant to the
Reinsurance Agreement.

 

“Net Premium” has the meaning provided
under the Article entitled PREMIUM.

 

“Notional Amount”
has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

“NPPI”
has the meaning provided under the Article entitled PRIVACY & PROTECTION OF DATA.

 

“Original Calculation
Date” has meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Party”
and “Parties” means either or both, as applicable, the Reinsurer and the Retrocessionaire and, for purposes of Article
7, Article 11, Article 12, Article 23, and Article 28 (and Article 2 and Article 30 to the extent relating to any of the foregoing), shall
mean the Reinsurer, the Retrocessionaire and the Companies.

 

“PHI” has
the meaning provided under the Article entitled PRIVACY & PROTECTION OF DATA.

 

“Policy(ies)”
means each of the binders, policies, slips, line slips and other agreements of insurance , including all endorsements, riders and supplements
thereto and all amendments thereof, in each case, of the Companies or indemnity reinsured by the Companies from Oklahoma Specialty Insurance
Company.

 

“Premium” shall mean Ninety Seven Million
One Hundred Thousand Dollars ($97,100,000.00).

 

“Quarterly Funding
Report” has the meaning provided in the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“R&Q” means R&Q Bermuda
(SAC) Limited.

 

“Receiving Party” has the meaning
set forth under the Article entitled CONFIDENTIALITY.

 

    6

     

    

 

“Reinsurance Agreement” has the meaning
set forth under the Recitals.

 

“Reinsurance Transaction
Agreements” as the meaning set forth under the Article entitled ARBITRATION.

 

“Reinsurance Warranty
Amount” has the meaning set forth under the Article entitled REINSURANCE WARRANTY.

 

“Reinsured Business” has the meaning set
forth under the Recitals.

 

“Reinsurer” has the meaning set forth
under the Preamble.

 

“Reports” has the meaning set forth under
the Article entitled REPORTS AND SETTLEMENTS.

 

“Representatives” has the meaning set
forth under the Article entitled CONFIDENTIALITY.

 

“Required Collateral
Amount” has the meaning provided in the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Reserves”
means, with respect to any insurer or reinsurer, as required by SAP or applicable Law of the jurisdiction of domicile of such insurance
company, reserves (including any gross, net and ceded reserves, as applicable), funds or provisions for losses, claims (including reserves
for IBNR), unearned premiums, costs and expenses (including Allocated Loss Adjustment Expenses).

 

“Retrocession Agreement” has the
meaning set forth under the Preamble. “Retrocessionaire” has the meaning set forth under the Preamble.

 

“Retrocessionaire’s
Adjustment Notice” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Retrocessionaire’s
Agent for Process” has the meaning set forth under the Article entitled SERVICE OF SUIT.

 

“Roll Forward Agreement
Date” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

  

“Rolled Amount”
has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“SAP” means,
as to any insurer or reinsurer, the statutory accounting practices and principles prescribed or permitted by the Governmental Authority
responsible for the regulatory of insurance and reinsurance in the jurisdiction of domicile of such insurer or reinsurer.

 

“Statement of Rolled
Amounts” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Statutory Trust
Account(s)” has the meaning set forth under the Article entitled COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE.

 

“Statutory Trust
Agreement(s)” means the Statutory Trust Agreements the form of which is attached as Exhibit C hereto.

 

    7

     

    

 

“Subject Business” means

 

(a)   
the Policies in respect of the business identified as “Group A” in Exhibit A, in each case, incepting prior
to the date specified therein; and

 

(b)   
the Policies in respect of the business identified as “Group B” in Exhibit A, in each case, incepting prior
to the applicable date specified therein.

 

“Term”
has the meaning set forth under the Article entitled COMMENCEMENT AND TERMINATION.

 

“TPAs”
means any and all third party administrators handling claims or performing other services in connection with the Subject Business.

 

“Transaction Agreements”
means this Retrocession Agreement, the Reinsurance Agreement, and the Statutory Trust Agreements.

 

“Trustee” means the trustee of the Statutory
Trust Accounts.

 

“Ultimate Net Loss” means all Net Loss, which is:

 

(1) net of:

 

		i.	the amount of all Inuring Reinsurance; and
	 	 	 

		ii.	all salvage, subrogation and recoverables (other than the amount of all Inuring Reinsurance) received
by or offset for the account of the Reinsurer in respect therefor;

 

and

 

(2) subject to the Aggregate Limit and other conditions and
limitations provided under the Article entitled RETROCESSION COVERAGE.

 

In the event of insolvency
of the Reinsurer, “Ultimate Net Loss” shall mean the amount of Ultimate Net Loss which the insolvent Reinsurer has incurred
(or may incur) or is (or may become) liable for and payment by the Retrocessionaire shall be made to the receiver or statutory successor
of the Reinsurer in accordance with the provisions of the Article entitled INSOLVENCY. Nothing in this Retrocession Agreement shall
be construed to mean Losses are not recoverable until the final Ultimate Net Loss to the Reinsurer has been ascertained.

 

    8

     

    

 

ARTICLE 3

 

COMMENCEMENT AND TERMINATION

 

The reinsurance coverage hereunder
shall incept at the Effective Time and shall remain in effect until the earliest of the following (the “Term”):

 

1.                    the date on
which the Aggregate Limit is exhausted by payments in respect of paid Ultimate Net Loss made by the Retrocessionaire;

 

2.                  
 the date on which all liabilities of the Reinsurer in respect of Net Loss are extinguished and all amounts due to the Reinsurer
(or its statutory successor or receiver) under this Retrocession Agreement with respect to Ultimate Net Loss have been paid;

 

3.                  
the date on which this Retrocession Agreement is terminated upon mutual agreement of the Reinsurer and the Retrocessionaire; or

 

4.                  
the date on which this Retrocession Agreement is commuted pursuant to the Article entitled COMMUTATION.

 

ARTICLE 4

 

EXCLUSIONS 

 

This Retrocession Agreement does not apply to and specifically
excludes:

 

1.       Net Loss paid
or booked as paid by the Companies or Reinsurer before the Effective Date;

 

2.       Unallocated Loss
Adjustment Expenses;

 

3.       Any
reinstatement or other premiums due under Reinsurer’s or any Company’s existing reinsurance arrangements to the extent such
existing reinsurance arrangements do not inure to the benefit of this Retrocession Agreement; and

 

4.       Any
payment of profit commission or similar arrangement due from Reinsurer or Companies to any other reinsurer or any other party in respect
of the Subject Business.

 

ARTICLE 5

 

RETROCESSION COVERAGE & APPLICATION OF
DEDUCTIBLE 

 

A.       The
Retrocessionaire hereby agrees to reimburse the Reinsurer for one hundred percent (100%) of the Ultimate Net Loss with respect to the
Subject Business, subject to the limitations provided in this Article 5.

 

B.       Retrocessionaire
agrees to reinsure and (subject to the Deductible and the Aggregate Limit) indemnify Reinsurer for Ultimate Net Loss in the amounts and
subject to the conditions set forth below:

 

1.       Group
A. Retrocessionaire agrees to reinsure Ultimate Net Loss and (subject to the Deductible and the Aggregate Limit) indemnify Reinsurer
for paid Ultimate Net Loss, in each case, arising out of or relating to Group A Policies in the amounts set forth as follows:

 

a.                  
Retrocessionaire shall be liable for one hundred percent (100%) of the Ultimate Net Loss on the Group A Policies for the first
Twenty Five Million Dollars ($25,000,000.00) of such Ultimate Net Loss (“Group A Participation Attachment Point”);
and

 

b.                   In
addition to the amount set forth in clause B.1.a above, Retrocessionaire shall be liable for fifty percent (50%) of every dollar
incurred of Ultimate Net Loss on the first Five Million Dollars ($5,000,000.00) of Ultimate Net Loss on Group A Policies that
exceeds the Group A Participation Attachment
Point, up to an aggregate amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00);

 

    9

     

    

 

 

c.             Reinsurer shall retain hereunder (1) fifty percent (50%) of every dollar of Ultimate Net Loss on the first Five Million Dollars ($5,000,000.00)
of Ultimate Net Loss on Group A Policies that exceeds the Group A Participation Attachment Point, up to an aggregate amount of Two Million
Five Hundred Thousand Dollars ($2,500,000.00);

 

d.            Net Loss (and Inuring Reinsurance and all salvage, subrogation and other recoverables received by or offset for the account of the Reinsurer
in respect of any of the foregoing) that would otherwise constitute Ultimate Net Loss on Group A Policies but that are incurred (or that
correspond to Net Loss) in excess of the first net aggregate Thirty Million Dollars ($30,000,000.00) of such Ultimate Net Loss ceded
hereunder (the “Group A Sublimit”) shall be disregarded and shall not constitute Ultimate Net Loss.

 

2.             Group
B. Retrocessionaire agrees to reinsure Ultimate Net Loss and (subject to the Deductible and the Aggregate Limit) indemnify Reinsurer
for paid Ultimate Net Loss, in each case, arising out of or relating to Group B Policies, in the amounts set forth as follows:

 

a.             Retrocessionaire shall be liable for one hundred percent (100%) of the Ultimate Net Loss on the Group B Policies for the first One Hundred
Fifty Million Dollars ($150,000,000.00) of such Ultimate Net Loss (“Group B Participation Attachment Point”); and

 

b.            In addition to the amount set forth in clause B.2.a above, Retrocessionaire shall be liable for fifty percent (50%) of every dollar incurred
of Ultimate Net Loss on the first Seventy Million Dollars ($70,000,000.00) of Ultimate Net Loss on Group B Policies that exceeds the
Group B Participation Attachment Point, up to an aggregate amount of Thirty Five Million Dollars ($35,000,000.00) of such Ultimate Net
Loss;

 

c.             Reinsurer shall retain hereunder fifty percent (50%) of every dollar of Ultimate Net Loss on the next Seventy Million Dollars ($70,000,000.00)
of Ultimate Net Loss on Group B Policies that exceeds the Group B Participation Attachment Point, up to an aggregate amount of Thirty
Five Million Dollars ($35,000,000.00) of such Ultimate Net Loss;

 

d.            In addition to the amounts set forth in clauses B.2.a and b, Retrocessionaire shall be liable for one hundred percent (100%) of Ultimate
Net Loss on the Group B Policies that is in excess of Two Hundred Twenty Million Dollars ($220,000,000.00) of such Ultimate Net Loss,
up to an aggregate amount of Thirty-Six Million Dollars ($36,000,000.00) of such Ultimate Net Loss; and

 

e.             Net Loss (and Inuring Reinsurance and all salvage, subrogation and other recoverables actually received by or offset for the account
of the Reinsurer in respect of any of the foregoing) that would otherwise constitute Ultimate Net Loss on Group B Policies but that are
incurred (or that correspond to Net Loss incurred) in excess of the first net aggregate Two Hundred Fifty Six Million ($256,000,000.00)
of such Ultimate Net Loss ceded hereunder (the “Group B Sublimit”) shall be disregarded and shall not constitute Ultimate
Net Loss.

 

    10

     

    

 

3.             Retrocessionaire’s
maximum aggregate limit of liability for indemnification of paid Ultimate Net Loss shall in no event exceed One Hundred Forty Three Million
Five Hundred Thousand Dollars ($143,500,000.00) (the “Aggregate Limit”), being the sum of the maximum amounts payable
by Retrocessionaire under Section B of this Article 5 less the Deductible. For the avoidance of doubt, the Aggregate Limit shall be rolled
forward after the date hereof pursuant to the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

C.            Application of Deductible

 

1.             Prior to any cash settlement by the Retrocessionaire to cover its liability for paid Ultimate Net Losses, Reinsurer shall apply the Deductible
funds to the settlement of the Retrocessionaire’s liability for paid Ultimate Net Losses, which shall erode the amount remaining
in respect of the Group A Sublimit and the Group B Sublimit but shall not erode the amount remaining in respect of the Aggregate Limit.

 

2.             For the avoidance of doubt, Reinsurer shall not apply the Deductible toward payment of its obligations under Sections B.1.c. and B.2.c.
above.

 

3.             Furthermore, Reinsurer shall not apply the Deductible toward any Ultimate Net Loss incurred (A) in respect of the Group A Policies, in
excess of the Group A Sublimit or (B) in respect of the Group B Policies, in excess of the Group B Sublimit, which liabilities shall
not, in either case, constitute Ultimate Net Loss.

 

ARTICLE
6

 

PREMIUM

 

A.           The payment of Premium to the Retrocessionaire hereunder includes the amount due in respect of the Brokerage and FET assessed on the
amount of such Premium (the “Net Premium”).

 

B.            On the date hereof, the Reinsurer shall transfer the Premium due to Retrocessionaire under Section A above. Pursuant to this Retrocession
Agreement, Reinsurer shall transfer (less the amount of Brokerage and FET imposed on the Premium transferred to the Retrocessionaire
hereunder, which Brokerage shall be paid by Reinsurer to Guy Carpenter and which FET shall be withheld and remitted by Reinsurer in accordance
with Article 20) directly to the Statutory Trust Accounts described in Article 11 below, as more particularly set forth in such Article
11 and in the Statutory Trust Agreements.

 

ARTICLE
7

 

ROLL
FORWARD OF ORIGINAL AMOUNTS

 

A.            The
Reinsurer and the Retrocessionaire agree and acknowledge that certain sums set forth in this Retrocession Agreement have been calculated
as of June 30, 2019 (the “Original Calculation Date”). Consequently, at the Effective Time there will have been changes
to Net Ceded Reserves, paid Losses and other figures since the Original Calculation Date. Accordingly, the Reinsurer shall roll forward
the following amounts in accordance with the procedures set forth on Exhibit D to reflect, among other things, claims reported
and paid claims subject to this Retrocession Agreement under the Policies covered hereunder from the Original Calculation Date to the
last day of the month ending prior to the date hereof (such date, the “Updated Calculation Date” and such amounts,
the “Rolled Amounts”):

 

1.             Net Ceded Reserves, calculated as of the Updated Calculation Date;

 

    11

     

    

 

2.             The Deductible;

 

3.             The Aggregate Limit;

 

4.             The Group A Participation Attachment Point, Group B Participation Attachment Point, Group A Sublimit, and Group B Sublimit; and

 

5.             The Required Collateral Amount, calculated as of the Updated Calculation Date.

 

B.

 

1.             The Reinsurer shall deliver to Retrocessionaire, within five (5) Business Days after the date hereof, a statement setting forth amounts
from the Original Calculation Date and the Rolled Amounts (the “Statement of Rolled Amounts”), together with the backup
documentation and information reasonably necessary to verify the Rolled Amounts. In addition, Reinsurer shall provide any other information
reasonably requested by the Retrocessionaire in connection therewith.

 

2.             Within ten (10) Business Days of receipt of the Reinsurer’s Statement of Rolled Amounts (the “Agreement Deadline”),
the Retrocessionaire shall advise the Reinsurer, in writing, of its agreement or disagreement with the calculation of the Rolled Amounts
(“Retrocessionaire’s Adjustment Notice”). If the Retrocessionaire agrees with such calculation or fails to notify
the Reinsurer of its agreement or disagreement with such calculation by the Agreement Deadline, then the Statement of Rolled Amounts
shall be deemed final and binding on the parties.

 

3.             If the Retrocessionaire has any good faith disagreement to the Reinsurer’s calculation of the Rolled Amounts, then within ten (10)
Business Days following the delivery of the Retrocessionaire’s Adjustment Notice, the Parties shall use good faith efforts to mutually
agree to the Rolled Amounts. The Parties hereby acknowledge and agree that either Party’s ability to object to Rolled Amounts in
accordance with this Section is preclusive of all other rights of such Party to challenge such Rolled Amounts.

 

4.             In the event the Parties are unable to reach agreement as to the Rolled Amounts within ten (10) Business Days following the delivery
of the Retrocessionaire’s Adjustment Notice, the Reinsurer and the Retrocessionaire shall, mutually appoint an independent actuary
or, in the event that they fail to agree on the selection of an independent actuary, within ten (10) Business Days thereafter, each Party
shall name three independent actuary candidates of which the other Party shall decline two, and the selection of the independent actuary
as between the two remaining independent actuary candidates shall be made by the Party winning a coin toss. If either Party fails to
provide such three names within such ten (10) Business Day period, the other Party shall select the independent actuary. All independent
actuary candidates shall be disinterested in the outcome and shall be Fellows of the Society of Actuaries/Fellows of the Casualty Actuarial
Society. The cost of the independent actuary selected shall be split evenly between the Reinsurer and the Retrocessionaire. The independent
actuary’s determination of the Rolled Amounts (the “Actuary’s Rolled Amounts”) shall be final and binding
on the Parties. The Parties shall instruct the independent actuary to limit its review to matters objected to by the Retrocessionaire
and not resolved by written agreement of the Parties.

 

5.             The independent actuary shall act as an expert, not as an arbitrator, and neither the determination of the independent actuary, nor this
Retrocession Agreement to submit to the determination of the independent actuary, shall be subject to or governed by the Federal Arbitration
Act, 9 U.S.C. § 1 et seq., or any state arbitration law or regime.

 

    12

     

    

 

6.             The earliest of the dates when (i) the Retrocessionaire timely notifies the Reinsurer of its acceptance of the Rolled Amounts by delivery
of the Retrocessionaire’s Adjustment Notice, (ii) the Agreement Deadline passes and the Retrocessionaire fails to notify the Reinsurer
of its disagreement with the Rolled Amounts by timely delivery of the Retrocessionaire’s Adjustment Notice, (iii) in the event
that Retrocessionaire disagrees with the Rolled Amounts by timely delivery of the Retrocessionaire’s Adjustment Notice, (A) the
date when the Parties mutually agree to the Rolled Amounts or (B) the date when the Parties receive the Actuary’s Rolled Amounts,
in each case, shall be known as the “Roll Forward Agreement Date.” Any amounts due and owing between the Parties in
respect of this Article 7 will be settled within five (5) Business Days of the Roll Forward Agreement Date.

 

7.             In the event that between the Original Calculation Date and the Effective Time there is an event, circumstance, development, change or
occurrence which, individually or together with any other event, change or occurrence, has, or would reasonably be expected to have,
a material adverse effect (i) on the financial condition or results of operations of Companies or Reinsurer, or (ii) on the Subject Business,
or (iii) on the Retrocessionaire’s financial obligations hereunder, the amount of Premium, shall be recalculated to put the Parties
in as close an economic position as is reasonably possible under this Retrocession Agreement as they would have been had such material
adverse effect not occurred. In the event that the Parties disagree on the amount of the recalculated Premium, the parties shall utilize
the procedure set forth in Article 15 to determine the amount of the recalculated Premium. At its election, the Companies shall be a
party to any arbitration pursuant to Article 15 of this Retrocession Agreement concerning any adjustment to Premium pursuant to this
Article 7.

 

ARTICLE
8

 

REINSURANCE
WARRANTY

 

A.            The Parties have agreed that a certain amount of reinsurance recoverables will be deemed collected under the Inuring Reinsurance (the
 “Deemed Amount”) and applied Ultimate Net Loss. Reinsurer hereby agrees that a certain amount of reinsurance recoverables
in excess of the Deemed Amounts shall be further deemed recovered, up to [***] (the “Reinsurance Warranty Amount”),
determined in accordance with the provisions of this Article 8. The Reinsurer shall perform the calculation described below, measured
from the Original Calculate Date, once per every calendar quarter occurring after the exhaustion of the Deductible and shall deliver
its calculations to the Retrocessionaire within ten (10) Business Days following the last day of each such quarter.

 

B.            To determine the amount of the Reinsurance Warranty Amount (if any) to be applied to Ultimate Net Loss, the following calculation is
conducted:

 

Step
1. Determine the “Notional Amount,” which shall be, as of any date of determination, an amount equal to the sum of
following:

 

		(i)	[***];
                                            less

 

		(ii)	[***];
                                            plus

 

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		(iii)	Interest
                                            on the sum of (i) and (ii), charged at Two Percent (2%) per annum, calculated on an annual
                                            basis from the date hereof to the date of determination.

 

Step
2. Compare the Notional Amount to the “Minimum Notional Amount,” which shall be, as of any date of determination,
an amount equal to the lesser of:

 

		(i)	[***];
                                            or

 

		(ii)	the
                                            greater of:

 

		(a)	[***];
                                            and

 

		(b)	[***]
                                            less the Notional Amount calculated as of such date of determination.

 

If
the Notional Amount determined pursuant to Step 1 is less than the Minimum Notional Amount determined pursuant to Step 2, the calculation
continues at Step 3. If, as of any date of determination, the Notional Amount is greater than the Minimum Notional Amount, then the Deemed
Amounts are satisfied and the Retrocessionaire shall not be entitled to any further deemed amounts applied toward Ultimate Net Loss in
respect of the Reinsurance Warranty Amount (and, for the avoidance of doubt, the calculation shall not continue to Step 3).

 

Step
3. Calculate the “Additional Excess Recoverables” as follows:

 

		(i)	for
                                            non-proportional reinsurance recoveries – non-proportional Inuring Reinsurance constituting
                                            Ultimate Net Losses on Group B Policies minus [***]; plus

 

		(ii)	for
                                            proportional reinsurance recoveries – proportional Inuring Reinsurance constituting
                                            Ultimate Net Losses on Group B Policies minus [***].

 

The
amount of the Additional Excess Recoverables is applied to reduce the amount of the Reinsurance Warranty Amount applicable to Ultimate
Net Loss.

 

See
Exhibit E for an example calculation of this reinsurance warranty.

 

C.            For
purposes of the calculation detailed in this Article 8, recoveries on the following types of Inuring Reinsurance shall count towards
the satisfaction of the Additional Excess Recoverables: facultative (whether proportional or excess of loss), excess of loss, reinsurance
covering excess liability insurance, and other proportional reinsurance.

 

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D.            Inuring Reinsurance shall not diminish and Retrocessionaire’s liability hereunder shall not be increased by reason of the Reinsurer’s
or the Companies’ inability to collect from any other reinsurers any amounts which are included in Inuring Reinsurance hereunder,
whether such inability to collect arises from (i) the insolvency of such other reinsurers, (ii) breach of the agreements with such other
reinsurers, (iii) the presence of any “net retained lines” or similar provisions in any agreements with such reinsurers which
prevent the Reinsurer or the Companies from recovering such Inuring Reinsurance, (iv) the fact that agreements with such other reinsurers
are no longer in force or became terminated, (v) the fact that the Reinsurer or the Companies failed to timely pay any reinsurance reinstatement
premium, or (vi) any other reason whatsoever, regardless of whether Retrocessionaire, Reinsurer, or Companies were aware of such reason
prior to the execution of this Retrocession Agreement.

 

E.             Notwithstanding anything herein to the contrary in this Retrocession Agreement, neither the Companies nor the Reinsurer may consent to
any commutation of any Inuring Reinsurance without the consent of the Retrocessionaire. In the event that any commutation of any Inuring
Reinsurance is made without the consent of the Retrocessionaire, such Inuring Reinsurance subject to such commutations shall be deemed
to continue in force and collectible in full as if such commutation had not been made.

 

F.             Notwithstanding anything to the contrary in this Retrocession Agreement, Companies and Reinsurer shall keep in force all existing reinsurance
arrangements inuring to the benefit of this Retrocession Agreement and shall timely pay all reinstatement or other premiums due under
such existing reinsurance arrangements. In the event that Inuring Reinsurance is diminished, terminated, or not extended or renewed due
to failure to timely pay reinstatement or other premiums due under its existing reinsurance arrangements, such Inuring Reinsurance shall
be deemed to continue in force and collectible in full as if such payment had been timely made.

 

ARTICLE
9

 

ADMINISTRATION
OF SUBJECT BUSINESS

 

Reinsurer
will be responsible for the handling and administration of the Subject Business claims under this Retrocession Agreement, including managing
and supervising any TPAs or other vendors retained to assist in the handling of such claims. The Reinsurer may delegate these handling
and administrative duties to the Companies and, as of the date hereof, the Reinsurer has delegated all such handling and administrative
duties to the Companies.

 

A.            The
Reinsurer shall investigate, adjust, settle, defend or otherwise handle all such claims as follows:

 

1.             The Reinsurer may establish total Net Loss reserves up to [***] per Subject Business claim.

 

2.             The Reinsurer may settle any Subject Business claim up to [***] in total Net Loss per claim.

 

3.             The Reinsurer shall not settle or reserve any Subject Business claim in excess of its authority, as provided herein, without prior written
approval from the Retrocessionaire.

 

4.             The Reinsurer will prepare and submit to the Retrocessionaire a large loss report, with sufficient particulars to identify the facts
of the claim, in an agreed upon format, and provide all requested relevant documentation, for all reserve or settlement authority requests
on Subject Business claims in excess of the Reinsurer’s authority hereunder.

 

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5.             The
Retrocessionaire shall provide a written response to all of Reinsurer’s authority requests as soon as practicable, but no later
than five (5) Business Days.

 

B.            The
Reinsurer shall provide the Retrocessionaire written notice of any demand, whether time-sensitive or otherwise, to settle any Subject
Business claim for available policy limits as soon as practicable, but no later than forty-eight (48) hours before the expiration of
any time-sensitive demand, and will provide the Retrocessionaire all relevant information in the Reinsurer’s possession to evaluate
such demand. The Retrocessionaire shall provide a written response to the Reinsurer with respect to any such time-sensitive policy-limit
demands as soon as practicable, but no later than the expiration of such demand.

 

C.            The
Reinsurer shall retain and utilize vendors that the Reinsurer deems reasonably necessary in the performance of its claims-handling services
under this Retrocession Agreement, including, but not limited to, attorneys, estimators, appraisers, investigators, independent adjusters,
experts or other advisors, collection companies, and any other claims-related vendors deemed necessary by the Reinsurer in the administration
of any Subject Business claim. The costs of any such vendors shall constitute Allocated Loss Adjustment Expense under this Retrocession
Agreement.

 

D.            The
Reinsurer shall handle all submitted claims in accordance with:

 

1.             the care, skill, prudence, diligence and expertise that would be expected from experienced and qualified personnel performing such duties
in like circumstances;

 

2.             the Reinsurer’s established Claims Handling Guidelines, Claims Litigation Guidelines and Claims Legal Guidelines; and

 

3.             the requirements of all applicable laws and regulations.

 

E.            The
Reinsurer shall not terminate or change any TPA engaged to assist in the handling of the Subject Business claims as of the Effective
Date, without the Retrocessionaire’s prior written approval, except that Reinsurer may amend, modify, change or expand the terms
of its engagement of any current TPA used by the Companies to administer the Subject Business claims.

 

F.            The
Reinsurer shall cooperate, and ensure cooperation of any applicable TPAs, in all respects with the Retrocessionaire, including, but not
limited to, providing to the Retrocessionaire all relevant information about the Subject Business claims, as the Retrocessionaire may
reasonably request, and be reasonably available to discuss individual Subject Business claims with the Retrocessionaire.

 

G.            The
Reinsurer will ensure that the Retrocessionaire has electronic access to all applicable claims systems and documents for the Subject
Business claims, both during the duration of the Term of this Retrocession Agreement, and for such period of time after the termination
of the Term as may be reasonably necessary for Retrocessionaire to fulfill any of its surviving obligations under this Retrocession Agreement
or to fulfill the requirements of applicable Law, at no additional cost to Retrocessionaire.

 

H.            Reinsurer
will invite Retrocessionaire to participate in all large loss conferences with respect to Subject Business claims.

 

I.             Reinsurer
will be available to meet monthly or as otherwise deemed reasonably necessary by Retrocessionaire to discuss any issues related to the
handling of Subject Business claims.

 

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J.             Reinsurer and Retrocessionaire will each designate a single point of contact to address any issues that may arise regarding the handling
of an individual Subject Business claim, or to generally address the administration of Subject Business claims.

 

K.            Reinsurer, to the extent commercially reasonable, will pursue its rights to salvage or subrogation relating to any Net Loss. Should Reinsurer
choose not to pursue a subrogation or salvage that the Retrocessionaire would like to pursue, the Retrocessionaire is hereby authorized
and empowered to instigate such action in the name of the Reinsurer, and from any amount recovered by Retrocessionaire there shall be
first deducted the Retrocessinaire’s expenses incurred in effecting the recoveries. Reinsurer hereby agrees to cooperate with Retrocessionaire
to enforce its rights to salvage or subrogation and to cooperate with Retrocessionaire in the prosecution of all claims arising out of
such rights, to the extent commercially reasonable. Reinsurer agrees to furnish Retrocessionaire, on request, any and all legal instruments
necessary to implement the foregoing assignment.

 

ARTICLE
10

 

ACCOUNTING
FOR RESERVES

 

A.           In calculating and maintaining Net Ceded Reserves, the Reinsurer shall comply with (i) applicable statutory accounting principles and
guidance and generally accepted actuarial standards and principles applied in a manner consistent with past practice used for calculating
and maintaining such Net Ceded Reserves, and (ii) the requirements of any applicable Law, including, the insurance laws and regulations
of the State of Texas, and shall otherwise be consistent with Companies’ standard procedures for calculating and maintaining Reserves.

 

B.            Neither Party has made, hereby makes or shall make any representation or warranty to the other Party as to (i) the proper accounting
or tax treatment by such other Party of the transaction provided for in this Retrocession Agreement or (ii) the proper future accounting
or tax treatment of the transaction provided for in this Retrocession Agreement. Further, each Party acknowledges and agrees that, in
making its independent determination that the transaction provided for in the Retrocession Agreement is properly accounted for as reinsurance
for SAP, GAAP and federal income tax purposes, it did not rely, in any respect, upon any representation or determination made by the
other Party.

 

ARTICLE
11

 

COLLATERAL;
STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE

 

A.           Required
Collateral Amount. As security for the payment and performance of all of Retrocessionaire’s obligations in respect of Ultimate
Net Loss reinsured hereunder, whether now existing or hereafter incurred, subject to Reinsurer’s initial funding obligation set
forth in Section D.1. of this Article 11, following delivery of the first Quarterly Funding Report for the calendar quarter ending June
30, 2020, Retrocessionaire shall provide an amount of collateral for the benefit of each Company, calculated in an amount equal to One
Hundred Five Percent (105%) of Net Ceded Reserves (the “Required Collateral Amount”) and divided among the Statutory
Trust Accounts in accordance with the Quarterly Funding Report. For the avoidance of doubt, the Retrocessionaire shall not be permitted
to make any withdrawals from the Statutory Trust Agreements prior to the delivery of the first Quarterly Report delivered hereunder.
Should Retrocessionaire at any time disagree with the amount of Required Collateral Amount determined by Reinsurer for any Company, Retrocessionaire
shall notify Reinsurer in writing of its disagreement (the “Collateral Dispute Notice”). The applicable provisions
of Article 7 with respect to a dispute thereunder shall apply mutatis mutandis to any dispute under this Article 11.

 

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B.            Statutory
Trust Agreements. The Parties agree that the Retrocessionaire, Reinsurer, and the Trustee (as defined under the Article entitled
DEFINITIONS) shall enter into a separate Trust Agreement (as defined under the Article entitled DEFINITIONS)
with each individual Company and establish a statutory trust account (“Statutory Trust Account”) for the benefit of
each individual Company. The Retrocessionaire and the Reinsurer intend that the establishment and maintenance of the Statutory Trust
Accounts will allow each Company to qualify for full statutory accounting credit for admitted reinsurance by all regulatory authorities
having jurisdiction over the applicable Company for the Retrocessionaire’s obligations under this Retrocession Agreement. Any change
or modification of any Statutory Trust Agreement shall be null and void unless made by written amendment to the applicable Statutory
Trust Agreement and signed by Retrocessionaire, Reinsurer, the applicable Company, and the Trustee.

 

C.            Statutory
Trust Accounts. The Parties understand and agree that the Net Premium, any top-up amounts, and any other funds subsequently provided
by Retrocessionaire for the purpose of meeting its collateral obligations hereunder (collectively, the “Collateral Funds”),
shall be kept in the Statutory Trust Accounts. Each Statutory Trust Account shall hold only the Collateral Funds applicable to beneficiary
Company and no other funds. Notwithstanding anything to the contrary contained herein, in no event shall the Collateral Funds be used
to pay any amounts other than the Retrocessionaire’s indemnification of paid Ultimate Net Loss covered hereunder. Assets may be
withdrawn from the Statutory Trust Account by the beneficiary Company only for the following purposes:

 

		(a)	to
                                            pay, or to reimburse the beneficiary Company for the due but unpaid or unreimbursed Ultimate
                                            Net Loss covered by Retrocessionaire under this Retrocession Agreement;

 

		(b)	to
                                            transfer to the Retrocessionaire any Collateral Funds that are in excess of the Required
                                            Collateral Amount;

 

		(c)	where
                                            the beneficiary Company or Reinsurer has received notification of termination of the Statutory
                                            Trust Agreement and where any of the Retrocessionaire’s obligations under this Retrocession
                                            Agreement remain unliquidated and undischarged ten (10) days prior to the termination date,
                                            to withdraw assets in the applicable Statutory Trust Account equal to such obligations and
                                            deposit such assets in a separate account apart from its other assets, in the name of the
                                            beneficiary Company in any United States bank or trust company apart from its general assets
                                            in trust solely for the uses and purposes specified in this Section C.

 

Reinsurer
shall not cause or allow any action or inaction that would cause funds in the Statutory Trust Account to be withdrawn or used (i) for
any purpose other than the permitted purposes set forth in this Section C or (ii) in duplication of any funds in the Statutory Trust
Account withdrawn or used by a Company in satisfaction of the same due but unpaid or unreimbursed Ultimate Net Loss covered by Retrocessionaire
hereunder.

 

D.            Collateral
Top-Up Requirements; Withdrawals; Offset; Actuarial Review.

 

1.             During the term of the Statutory Trust Agreements, the Reinsurer shall provide to the Retrocessionaire and the Companies a report (each,
a “Quarterly Funding Report”) no later than thirty (30) days from the end of each calendar quarter specifying the
Required Collateral Amount as of the end of such calendar quarter, including the total Required Collateral Amount and the Required Collateral
Amount for each individual Company.

 

2.             Beginning with the Quarterly Funding Report for the calendar quarter ended June 30, 2020, if, based on the Quarterly Funding Report,
the Required Collateral Amount for any one or more of the Statutory Trust Accounts at the end of any calendar quarter exceeds the sum
of the aggregate

 

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Fair
Market Value of the Eligible Assets held in any one or more Statutory Trust Accounts (determined in accordance with the Statutory Trust
Agreements) (a “Collateral Deficit”), Retrocessionaire shall promptly, but not less than five (5) Business Days after
delivery of the Quarterly Funding Report, transfer directly from its own account to applicable Statutory Trust Account(s) such additional
Eligible Assets as may be necessary to increase the Fair Market Value of the Eligible Assets held in the applicable Statutory Trust Account(s)
to the Required Collateral Amount for each such applicable Statutory Trust Account.

 

3.             Beginning with the Quarterly Funding Report for the calendar quarter ended June 30, 2020, if, based on the Quarterly Funding Report,
the Required Collateral Amount for any one or more of the Statutory Trust Accounts at the end of any calendar quarter is less than the
sum of the aggregate Fair Market Value of the Eligible Assets held in any one or more Statutory Trust Accounts (determined in accordance
with the Statutory Trust Agreements) (the “Collateral Excess”), the applicable Company(ies) shall promptly, but not
less than five (5) Business Days after delivery of the Quarterly Funding Report, direct Trustee to transfer directly from applicable
Statutory Trust Account to the account of Retrocessionaire or its designee such Eligible Assets as are in excess of the Required Collateral
Amount.

 

4.             In the event that a Quarterly Funding Report shows that there is a Collateral Deficit in one or more of the Statutory Trust Accounts
and a Collateral Excess in one or more of the other Statutory Trust Accounts, then the Companies may, in each instance with the prior
written consent of Retrocessionaire, withdraw from the Statutory Trust Account(s) having a Collateral Excess and instruct the Reinsurer
to deposit into Statutory Trust Account(s) having a Collateral Deficit an amount that is (i) excess of the Required Collateral Amount,
and (ii) not greater than the amount required to increase the Collateral Funds held in the Statutory Trust Account(s) having a Collateral
Deficit to the Required Collateral Amount. The transfer described in the foregoing sentence (the “Collateral Offset”)
is for administrative expedience only, and Retrocessionaire may refuse its consent to a Collateral Offset for any reason, in its sole
discretion. A Collateral Offset completed in accordance with the provisions of this Article 11 Section D.4 shall not be considered a
transfer in violation of the permitted purposes set forth in Article 11 Section C above.

 

5.             No less frequently than annually, Reinsurer, as part of the Companies’ normal annual statutory financial statement actuarial review,
shall engage the Companies’ appointed actuary to perform a full actuarial analysis to determine the Required Collateral Amount
and shall include such actuary’s report to the extent relevant to Ultimate Net Loss in its Quarterly Funding Report to Retrocessionaire
and Companies.

 

E.             Title
to Assets. The Retrocessionaire, prior to depositing assets in the Statutory Trust Accounts, shall execute assignments, endorsements
in blank, or transfer legal title to the Trustee of all shares, obligations or other assets requiring assignments in order that the Trustee,
upon the direction of the applicable Company, may negotiate these assets without consent or signature from the Retrocessionaire.

 

F.             Income
and Interest. Any income or interest earned on assets on deposit in the Statutory Trust Accounts shall be held in the Statutory Trust
Accounts in accordance with the terms of the Statutory Trust Agreements.

 

G.            Substitutions.
The Retrocessionaire shall have the right to withdraw from the Statutory Trust Accounts all or any part of the assets contained therein
and transfer such assets to the Retrocessionaire; provided that the Retrocessionaire complies with the requirements set forth
in the Statutory Trust Agreements; and provided further that prior to the time of such withdrawal, the Retrocessionaire replaces
the withdrawn assets with other applicable Eligible Assets having a Fair Market Value at least equal to the Fair Market Value of the
assets withdrawn so as to maintain at all times the deposit of the Required Collateral Amount.

 

    19

     

    

 

 

H.                
Termination. Promptly following termination of this Retrocession Agreement and payment of the full amounts due under the
Retrocession Agreement, the parties to the Statutory Trust Agreements all shall take all actions necessary to terminate the Statutory
Trust Accounts and the Statutory Trust Agreements.

 

I.                   
Company Credit for Reinsurance. If, at any time during the Term of this Retrocession Agreement, any Company does not qualify
for full statutory accounting credit in respect of the Reinsurance Agreement for admitted reinsurance by regulatory authorities having
jurisdiction over the Company by reason of its Statutory Trust Account not complying with applicable insurance laws or regulations such
that a financial or accounting penalty to the Company would result on any statutory statement or report the Company is required to make
or file with insurance regulatory authorities (or a court of law in the event of insolvency), the Retrocessionaire shall, on behalf of
the Reinsurer, secure the Reinsurer’s share (subject to the limitations reflected in, Article 5 hereof) of obligations under the
Reinsurance Agreement for which such full statutory credit is not granted by those authorities in a manner, form, and amount acceptable
to the applicable Company, Reinsurer, Retrocessionaire, and to all applicable insurance regulatory Governmental Authorities. Reinsurer
shall cooperate with Retrocessionaire and the Company to secure such credit for reinsurance as needed. Reinsurer, to the extent required
by the Reinsurance Agreement, shall secure its obligations to the Companies (separate and apart from the Statutory Trust Accounts) in
accordance with all applicable Laws governing credit for reinsurance and no such obligation shall be funded through withdrawal from the
Statutory Trust Accounts. Retrocessionaire shall have no obligation to provide any other funds in trust other than the Collateral Funds
in accordance with this Retrocession Agreement and the Statutory Trust Agreements, notwithstanding anything to the contrary set forth
in the Reinsurance Agreement or any other agreement.

 

J.                   
Joint and Several Liability; Indemnification.

 

		(1)	Each Company and the Reinsurer shall be jointly and severally liable for an adjudicated default by any
Company or the Reinsurer under any of the Statutory Trust Agreements, including the use of Collateral Funds for such purpose other than
as allowed under this Agreement or the Statutory Trust Agreements by a Company, the Reinsurer, or any party acting on behalf of or at
the direction of any Company or the Reinsurer (including a third party claims administrator).

 

		(2)	The Companies and the Reinsurer shall jointly and severally indemnify, defend and hold harmless the Restrocessionaire
and its affiliates and their respective directors, officers, employees, agents, successors and permitted assigns (“Retrocessionaire
Indemnified Persons”) from and against any and all disputes, demands, claims, actions, damages, losses, attorneys’ fees, court
costs and other liabilities, including those asserted against Retrocessionaire by Reinsurer (collectively “Liabilities”) incurred
by a Retrocessionaire Indemnified Person to the extent arising from or relating to (1) any breach of the representations, warranties,
covenants or agreements of the Companies or Reinsurer contained in the Statutory Trust Agreements, including the use or application of
Collateral Funds for any purpose other than those permitted under the Statutory Trust Agreements or this Retrocession Agreement, or (2)
any successful enforcement of this indemnity; provided, in any case, the foregoing shall not apply to the extent the Liabilities were
caused by the negligence, gross negligence, fraud or intentional misconduct of any Retrocessionaire Indemnified Person.

 

		(3)	In the event that amounts in excess of the Required Collateral Amount are not timely paid to Retrocessionaire
or otherwise transferred between Statutory Trust Accounts as a permitted Collateral Offset due to the insolvency of a Company and administration
of Collateral Funds by a conservator, liquidator, receiver, or
statutory successor, Retrocessionaire may, to the extent not prohibited by Law, offset such excess amounts due to it against the obligations
of Retrocessionaire in accordance with Article 23 hereto. In addition, the Companies and Reinsurer shall be jointly and severally liable
to Retrocessionaire for payment of all such excess amounts.

 

    21 

     

    

 

K.       Investment
Manager. The Parties agree that either the Retrocessionaire, or a third party investment manager registered with the U.S. Securities
and Exchange Commission selected by the Retrocessionaire (the “Investment Manager”), shall enter into an investment
management agreement with the Reinsurer, the Companies, and the Trustee to manage the assets in the Statutory Trust Accounts in accordance
with the investment guidelines mutually agreed to among the parties to such investment management agreement. Such investment management
agreement shall be in the form and contain provisions that are reasonably acceptable to the Companies and the Reinsurer. All fees, costs
and expenses in respect of the Investment Manager shall be borne solely by the Retrocessionaire and shall not be paid from the Statutory
Trust Accounts.

 

ARTICLE 12

 

REPORTS AND SETTLEMENTS

 

A.       Reports.
After receiving data from the TPA, the Reinsurer, or the Companies as its administrator, shall prepare and deliver the electronic reports
listed below (the “Reports”) with respect to the entirety of the Subject Business. Within two (2) Business Days following
the accounting close of each month (such close occurring on the 15th of the subsequent month), the Reinsurer shall deliver
a Report in a format to be mutually agreed upon by the Parties which contains such accounting and journal entries and details (i) as may
be necessary and customary to enable the Retrocessionaire to determine the amounts owed hereunder from Retrocessionaire or from the Reinsurer,
as the case may be, and (ii) as may be required to permit the Retrocessionaire to prepare, make and file necessary or required financial
and statistical reports and financial statements or otherwise comply with applicable Law.

 

Such Report shall, without
limitation, include the amount of the following, on a monthly and cumulative basis, as at the close of the applicable month (such close
as defined above):

 

1.                  
Amounts paid in respect of Ultimate Net Loss;

 

2.                  
Outstanding case and IBNR Reserves;

 

3.                  
Ceded Reserves;

 

4.                  
Net Ceded Reserves;

 

5.                  
a statement of any amount(s) payable by the Retrocessionaire, including an itemization of all of the payments that are being billed
to the Retrocessionaire for the applicable monthly accounting period;

 

6.                  
Status of Reinsurance Warranty Amount, including a listing of applicable Inuring Reinsurance;

 

7.                  
Amounts paid in erosion of the remaining amount of the Deductible;

 

8.                  
Amounts paid in erosion of the remaining amount of the Aggregate Limit; and

 

    22 

     

    

 

9.       any
other information in connection with settlements hereunder reasonably requested by the Retrocessionaire.

 

B.                 
The Reports outlined in this Article shall continue until the conclusion of the Term of this Retrocession Agreement.

 

C.                 
Settlements. The Parties shall conduct monthly settlements (other than with respect to any amounts satisfied intra-month
through withdrawal by the Reinsurer or the Companies from the Claims Payments Account) based upon the reporting provided in Section A
above evidencing the amount due, subject to Section D below. Any payment, transfer or crediting of amounts required under this Section
shall be made within five (5) Business Days following the date of the delivery of the applicable Report (any such date, the “Settlement
Date”). For the avoidance of doubt, in no event shall an obligation of Retrocessionaire to make a payment pursuant to this Article
12 be postponed or delayed to a date later than the Settlement Date as a result of any pending or threatened dispute pursuant to this
Agreement, except for amounts due under this Article that are disputed in good faith by Retrocessionaire.

 

D.                
Claims Payments Account.

 

1.                  
The Companies shall establish and maintain a demand deposit account for purposes of facilitating interim settlements of amounts
due under this Retrocession Agreement in respect of Ultimate Net Loss indemnifiable by the Retrocessionaire (the “Claims Payments
Account”).

 

2.                  
On the first Business Day of each monthly accounting period following the exhaustion of the Deductible, the Retrocessionaire shall
transfer to the Claims Payments Account cash in an amount sufficient to bring the balance of the Claims Payments Account to an amount
equal to the trailing two (2) month average of payments of Ultimate Net Loss (the “Required Funding Amount”). If at
any time during a monthly accounting period the funds in a Claims Payments Account are, in the Reinsurer’s reasonable estimate,
insufficient to pay all of the Ultimate Net Loss payable in such monthly accounting period, the Reinsurer shall provide a statement (a
 “Claims Estimate”) setting forth in reasonable detail a description of the additional proposed payments of Ultimate
Net Loss anticipated to be required during the remainder of such monthly accounting period and the amount by which the then current balance
in the Claims Payments Account falls short of the aggregate amount set forth in the Claims Estimate.

 

ARTICLE 13

 

COMMUTATION

 

A.                 This Retrocession Agreement shall be commuted effective at any calendar quarter end, subject to any required regulatory approvals,
if applicable, (i) upon commutation of the Reinsurance Agreement or (ii) with the mutual agreement of the Retrocessionaire and the
Reinsurer.

 

B.                 
At commutation, the Retrocessionaire shall pay to the Reinsurer the present value of any and all Ultimate Net Loss liability outstanding
hereunder, as mutually agreed upon by the Reinsurer and Retrocessionaire.

 

C.                 
Upon payment of the commutation amount, all payable Ultimate Net Losses are deemed paid, both Parties shall be released of further
liability under the terms and conditions of this Retrocession Agreement and this Retrocession Agreement shall be deemed commuted and terminated.

 

D.                  It
is agreed that on the day of commutation, the Reinsurer shall release any and all letters of credit, trust accounts (including the Statutory
Trust Accounts) or any other collateral posted by the Retrocessionaire, as applicable, under this Retrocession Agreement.

 

    23 

     

    

 

ARTICLE 14

 

ACCESS TO RECORDS

 

A.                
All records remain the property of the Reinsurer.

 

B.                 
The Retrocessionaire or its designated representatives shall have the right to inspect (and make copies) at all reasonable times
and upon reasonable prior notice to Reinsurer, during the Term of this Retrocession Agreement and thereafter, all proprietary and non-privileged
books, records and papers of the Reinsurer directly related to any reinsurance hereunder, or the subject matter hereof, including, but
not limited to administrative records, claim records, Policy files, and related documents and information, and Retrocessionaire shall
have the right to make photocopies thereof at its expense. All such books, records, and papers shall be kept available by Reinsurer and
its departmental or branch offices for a period of not less than five (5) years after the termination date of this Retrocession Agreement.
Should the Retrocessionaire assume administration of claims for any of the Subject Business, Reinsurer or its designated representatives
shall have the right to inspect (and make copies) at all reasonable times and upon prior reasonable notice to Retrocessionaire during
the Term of this Retrocession Agreement, and thereafter, all proprietary and non-privileged books, records and papers of the Retrocessionaire
directly related to the Retrocessionaire’s administration of claims, and Reinsurer shall have the right to make photocopies thereof
at its expense. All such books, records, and papers shall be kept available by Retrocessionaire and its departmental or branch offices
for a period of not less than five (5) years after the termination date of this Retrocession Agreement.

 

C.                  For the purposes of this Article, “non-privileged” refers to books, records and papers that are not subject
to the Attorney-client privilege and Attorney-work product doctrine. “Attorney-client privilege” and “Attorney-work
product” shall have the meanings ascribed to each by statute and/or the court of final adjudication in the jurisdiction whose
laws govern the substantive law of a claim arising under a Policy reinsured under this Retrocession Agreement.

 

D.                  Notwithstanding anything to the contrary in this Retrocession Agreement, for any claim or Loss under a Policy reinsured under this
Retrocession Agreement, should either Party claim, pursuant to the Common Interest Doctrine (“Doctrine”), that it has
the right to examine any document that is alleged to be subject to the Attorney-client privilege or the Attorney-work product privilege,
upon the claiming Party providing to the other Party substantiation of any law which reasonably supports the basis for the conclusion
that the Doctrine applies and the Doctrine will be upheld as applying between the Parties as against third parties pursuant to the substantive
law(s) which govern the claim or Loss, the claiming Party shall be given access to such document.

 

E.                   Notwithstanding
the foregoing, the Parties shall permit and not object to the other Party’s access to privileged documents in connection with
any underlying claim reinsured hereunder following final settlement or final adjudication of the case or cases involving such claim; provided
that the Party may defer release of such privileged documents if there are subrogation, contribution, or other third party actions
with respect to that claim or case, which might jeopardize the Party’s defense by release of such privileged documents. In the
event a Party shall seek to defer release of such privileged documents, it will, in consultation with the other Party, take other
steps as reasonably necessary to provide the requesting Party with the information it reasonably requires to evaluate exposure,
establish Reserves or indemnify without causing a loss of such privileges. The Parties shall in no event have access to privileged
documents relating to any dispute between the Parties. Furthermore, in the event that a Party demonstrates a need for information
contained in privileged documents prior to the resolution of the underlying claim, the other Party agrees it will endeavor to
undertake steps as reasonably necessary to provide the requesting Party with the information it reasonably requires to indemnify the
other Party without causing a loss of such privilege.

 

F.                   The provisions of this
Article 14 shall survive the termination of this Retrocession Agreement.

 

    24 

     

    

 

ARTICLE 15

 

ARBITRATION 

 

A.                  Any and all disputes between the Reinsurer and the Retrocessionaire arising out of, relating to, or concerning this Retrocession
Agreement, whether sounding in contract or tort and whether arising during or after termination of this Retrocession Agreement, shall
be submitted to the decision of a board of arbitration composed of two (2) arbitrators and an umpire (“Board”) meeting
at a site in the city in which the principal headquarters of the Retrocessionaire are located. The arbitration shall be conducted and
shall proceed as set forth in the ARIAS-US Rules for the Resolution of U.S. Insurance and Reinsurance Disputes and the procedures below.

 

B.                 
A notice requesting arbitration, or any other notice made in connection therewith, shall be in writing and be sent certified or
registered mail, return receipt requested to the affected Party. The notice requesting arbitration shall state in particular all issues
to be resolved, shall appoint the arbitrator selected by the claimant and shall set a tentative date for the hearing, which date shall
be no sooner than ninety (90) days and no later than one hundred fifty (150) days from the date that the notice requesting arbitration
is mailed. Within thirty (30) days of receipt of claimant’s notice, the respondent shall notify claimant of any additional issues
to be resolved in the arbitration and of the name of its appointed arbitrator.

 

C.                  The members of the Board shall be impartial, disinterested and not currently representing any Party participating in the arbitration,
and shall be current or former senior officers of insurance or reinsurance concerns, experienced in the line(s) of business that are the
subject of this Retrocession Agreement. The Reinsurer and the Retrocessionaire as aforesaid shall each appoint an arbitrator and the two
(2) arbitrators shall choose an umpire before instituting the hearing. If the respondent fails to appoint its arbitrator within thirty
(30) days after having received claimant’s written request for arbitration, the claimant is authorized to and shall appoint the
second arbitrator. If the two (2) arbitrators fail to agree upon the appointment of an umpire within thirty (30) days after notification
of the appointment of the second arbitrator, within ten (10) days thereof, the two (2) arbitrators shall request ARIAS-U.S. (“ARIAS”)
to apply its procedures to appoint an umpire for the arbitration with the qualifications set forth above in this Article. If the use of
ARIAS procedures fails to name an umpire, either Party may apply to a court of competent jurisdiction to appoint an umpire with the above
required qualifications. The umpire shall promptly notify in writing all Parties to the arbitration of his selection and of the scheduled
date for the hearing. Upon resignation or death of any member of the Board, a replacement shall be appointed in accordance with the same
procedures pursuant to which the resigning or deceased member was appointed pursuant to this Article 15.

 

D.                  The claimant and respondent shall each submit initial briefs to the Board outlining the facts, the issues in dispute and the basis,
authority, and reasons for their respective positions within thirty (30) days of the date of notice of appointment of the umpire. The
claimant and the respondent may submit a reply brief to the Board within ten (10) days after filing of the initial brief(s). Initial and
reply briefs may be amended by the submitting Party at any time, but not later than ten (10) days prior to the date of commencement of
the arbitration hearing. Reasonable responses shall be allowed at the arbitration hearing to new material contained in any amendments
filed to the briefs but not previously responded to.

 

E.                  The
Board shall consider this Retrocession Agreement as an honorable engagement and shall make a decision and award with regard to the terms
expressed in this Retrocession Agreement, the original intentions of the Parties to the extent reasonably ascertainable, and the custom
and usage of the insurance and reinsurance business that is the subject of this Retrocession Agreement. Notwithstanding any other provision
of this Retrocession Agreement, the Board shall have the right and obligation to consider underwriting and submission-related documents
in any dispute between the Parties.

 

F.                 
The Board shall be relieved of all judicial formalities and the formal rules of evidence, and the decision and award shall be based
upon a hearing in which evidence that is relevant shall be allowed. Cross examination and rebuttal shall be allowed. The Board may request
a post-hearing brief to be submitted within twenty (20) days of the close of the hearing.

 

G.                  The Board shall render its decision and award in writing within thirty (30) days following the close of the hearing or the submission
of post-hearing briefs, whichever is later, unless the Parties consent to an extension. Every decision by the Board shall be by a majority
of the members of the Board and each decision and award by the majority of the members of the Board shall be final and binding upon all
Parties to the proceeding. Such decision shall be a condition precedent to any right of legal action arising out of the arbitrated dispute
which either Party may have against the other. However, the Board is not authorized to award punitive, exemplary or enhanced compensatory
damages.

 

H.                 The
Board shall award interest on the award at a rate not in excess of Two Percent (2%) per annum calculated from the date the Board
determines that any amounts due the prevailing Party should have been paid to the prevailing Party.

 

    25 

     

    

 

I.                   Either
Party may apply to a court of competent jurisdiction for an order confirming any decision and the award; a judgment of that Court
shall thereupon be entered on any decision or award.

 

J.                  
Each Party shall bear the expenses and costs of its own attorney and of the one arbitrator appointed by or for it in connection
with all phases of the arbitration proceeding through any judicial proceedings related to the arbitration and shall jointly and equally
bear with the other Party the expense of any stenographer requested, and of the umpire. The remaining costs of the pre-confirmation arbitration
proceedings shall be finally allocated by the Board.

 

K.                  Subject to customary and recognized legal rules of privilege, each Party participating in the arbitration shall have the obligation
to produce those documents, and as witnesses at the arbitration those of its employees, and those of its affiliates, as any other participating
Party reasonably requests, providing always that the same witnesses and documents be reasonably obtainable and relevant to the issues
in the arbitration and not be unduly burdensome or excessive in the opinion of the Board.

 

L.                   The Parties may mutually agree as to pre-hearing discovery prior to the arbitration hearing and in the absence of agreement, upon
the request of any Party, pre-hearing discovery may be conducted as the Board shall determine in its sole discretion to be in the interest
of fairness, full disclosure, and in furtherance of a prompt hearing, decision and award by the Board.

 

M.                 The Board shall be the final judge of the composition of the Board, the procedures of the Board, the conduct of the arbitration,
the rules of evidence, the rules of privilege, discovery and production and the excessiveness and relevancy of any witnesses and documents
upon the petition of any participating Party. To the extent permitted by law, the Board shall have the authority to issue subpoenas and
other orders to enforce its decisions. The Board shall also have the authority to issue interim decisions or awards in the interest of
fairness, full disclosure, and a prompt and orderly hearing and decision and award by the Board.

 

N.                  Nothing
in this Article shall preclude any of the Parties engaged in arbitration from settling the dispute and withdrawing from an arbitration
established to resolve that dispute.

 

O.                  The provisions of this Article will survive the termination of this Retrocession Agreement.

 

P.                  
If a dispute arising under this Retrocession Agreement is related to a dispute arising out of the Reinsurance Agreement (together,
the “Reinsurance Transaction Agreements”) all such disputes may be brought in a single arbitration, in each case, to
the extent permitted under the respective applicable Reinsurance Transaction Agreement. If one or more arbitrations are already pending
with respect to a dispute under this Retrocession Agreement or a dispute under the other Reinsurance Transaction Agreement, then any Party
may request that any arbitration or any new related dispute be consolidated into any such prior arbitration. Such new dispute or arbitration
shall be so consolidated, provided that the Board for the prior arbitration determines that: (i) the new dispute or arbitration presents
significant issues of law or fact common with those in the pending arbitration; (ii) no party would be unduly prejudiced; and (iii) consolidation
under these circumstances would not result in undue delay for the prior arbitration. Any such order of consolidation issued by the Board
shall be final and binding upon the Parties. The Parties waive any right they have to appeal or to seek interpretation, revision or annulment
of such order of consolidation, including in any court. The Board for the arbitration into which a new dispute is consolidated shall serve
as the Board for the consolidated arbitration.

 

ARTICLE 16

 

CONFIDENTIALITY

 

A.                  The information, data, statements, representations and other materials provided by the Reinsurer and its Representatives or the
Retrocessionaire and its Representatives to the other arising from consideration and participation in this Retrocession Agreement whether
contained in the reinsurance submission, this Retrocession Agreement, or in materials or discussions arising from or related to this Retrocession
Agreement, constitutes confidential or proprietary information (collectively, the “Confidential Information”) unless
(i) it is expressly indicated otherwise by the Party disclosing such information (“Disclosing Party”) in writing from
time to time to the other Party (the “Receiving Party”), or (ii) it is publicly available. This Confidential Information
is intended for the sole use of the Parties to this Retrocession Agreement (and their affiliates involved in management or operation of
the Subject Business covered hereunder, the intermediaries involved in the placement of this Retrocession Agreement, and their respective
auditors, third-party service providers, professional advisors, and legal counsel, collectively termed the “Representatives”)
as may be necessary in analyzing and/or accepting a participation in and/or executing their respective responsibilities under or related
to this Retrocession Agreement. The Receiving Party shall protect and safeguard the confidentiality of all Confidential Information with
at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than
a commercially reasonable degree of care.

 

    26 

     

    

 

B.                 
Disclosing or using Confidential Information relating to this Retrocession Agreement, without the prior written consent of the
Disclosing Party, for any purpose beyond (i) the scope of this Retrocession Agreement, (ii) the reasonable extent necessary to perform
or enforce its rights and responsibilities provided for under this Retrocession Agreement or any Transaction Agreement, (iii) the reasonable
extent necessary to administer, report to and effect recoveries under this Retrocession Agreement, (iv) the reporting to regulatory or
other Governmental Authorities as may be legally required, (v) providing the Confidential Information to Representatives with a need to
know such Confidential Information, who are legally obligated by either written agreement or otherwise to maintain the confidentiality
of the Confidential Information, is expressly forbidden, or (vi) as may be required by applicable Law or regulatory requirement.

 

Copying, duplicating, disclosing, or using Confidential
Information for any purpose beyond these purposes is forbidden without the prior written consent of the Disclosing Party.

 

C.                 
Should a Receiving Party receive a third party demand pursuant to subpoena, summons, or court or governmental order or request,
to disclose Confidential Information that has been provided by the Disclosing Party, to the extent allowed by law, the Receiving Party
shall provide the Disclosing Party with written notice of any subpoena, summons, or court or governmental order or request, at least ten
(10) days prior to such release or disclosure. Unless the Disclosing Party has given its prior permission to release or disclose the Confidential
Information, the Receiving Party shall not comply with the subpoena prior to the actual date required by the subpoena. If a protective
order or appropriate remedy is not obtained (at the sole expense of Disclosing Party), the Receiving Party may disclose only that portion
of the Confidential Information that it is legally obligated to disclose. However, notwithstanding anything to the contrary in this Retrocession
Agreement, in no event, to the extent permitted by law, shall this Article require the Receiving Party not to comply with the subpoena,
summons, or court or governmental order.

 

ARTICLE 17

 

CURRENCY

 

A.                
Whenever the word “dollars” or the “$” sign appears in this Retrocession Agreement, they shall be
construed to mean United States Dollars and all transactions under this Retrocession Agreement shall be in United States Dollars.

 

B.                 
Amounts paid or received by the Companies in any other currency shall be converted to United States Dollars at the rate of exchange
on the date such transaction is entered on the books of the Companies.

 

ARTICLE 18

 

DELAYS, ERRORS AND OMISSIONS 

 

Inadvertent delays, errors
or omissions made in connection with this Retrocession Agreement or any transaction hereunder (including the reporting of claims) shall
not relieve either Party hereto from any liability which would have attached had such delay, error or omission not occurred, provided
always that such delay, error or omission shall be rectified as soon as possible after discovery.

 

ARTICLE 19

 

EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS
OF POLICY LIMITS

 

A.                
This Retrocession Agreement shall provide reinsurance for the Ultimate Net Loss of the Policies comprising the Subject Business,
which includes, subject to the terms and conditions of this Article 19, any Extra Contractual Obligations and/or Loss Excess of
Policy Limits.

 

B.                  “Extra
Contractual Obligations” means all liabilities arising out of or relating to Subject Business not covered under any other
provision of this Retrocession Agreement, including compensatory, consequential, punitive, or exemplary damages together with any
legal costs and expenses incurred in connection therewith, paid (without duplication) as damages or in settlement by any Company,
the Reinsurer or any affiliate arising from an allegation or claim of any Company’s insured, Company’s insured’s
assignee, or other third party, which alleges negligence, gross negligence, bad faith or other tortious conduct on the part of such
Company, the Reinsurer or any affiliate, or any designee of such Company or the Reinsurer (including any TPA) to the extent
indemnifiable by such Company or any affiliate of such Company in the handling, adjustment, rejection, defense or settlement of a
claim under a Policy.

 

    27 

     

    

 

C.                  “Loss Excess of Policy Limits” means any costs, expenses or other amounts (other than Allocated Loss Adjustment
Expenses) incurred in connection with a Loss paid as damages or in settlement (or otherwise) in excess of the limits of a specific Policy,
but otherwise within the coverage terms of such Policy, including as arising from an allegation or claim of any Company’s insured,
Company’s insured’s assignee, or other third party, which alleges negligence, gross negligence, bad faith or other tortious
conduct in the handling of a claim under a Policy, in rejecting a settlement within the Policy limits, in discharging a duty to defend
or prepare the defense in the trial of an action against the insured, or in discharging its duty to prepare or prosecute an appeal consequent
upon such an action. For the avoidance of doubt, the decision by a Company to settle a claim for an amount within the coverage of the
Policy but not within the Policy limit when such Company has reasonable basis to believe that it may have liability to the insured or
assignee or other third party on the claim will be deemed a Loss Excess of Policy Limits.

 

D.                  Any Reserves ceded or assumed or amounts paid or settled by a Party (or a TPA on behalf of such Party) in respect of Extra Contractual
Obligations or Loss Excess of Policy Limits without the other Party’s prior written approval such approval not to be unreasonably
withheld, conditioned or delayed, shall not constitute Ultimate Net Loss or paid Ultimate Net Loss (as applicable), unless the other Party
waives in writing the foregoing exclusion with respect to a particular amount or amounts. No such waiver by either Party shall constitute
any future waiver of this Section with respect to other amounts.

 

E.                 
An Extra Contractual Obligation or a Loss Excess of Policy Limits shall be deemed to have occurred on the same date as the Loss
covered under the Policy and shall be considered part of the original Loss (subject to other terms of this Retrocession Agreement).

 

F.                 
Neither an Extra Contractual Obligation nor a Loss Excess of Policy Limits shall include any Losses, liabilities, penalties, costs
or other expenses arising out of any adjudicated fraudulent or criminal act by any officer or director of the Reinsurer or the Companies
acting individually or collectively or in collusion with any other organization or party involved in the presentation, defense, or settlement
of any claim covered under this Retrocession Agreement.

 

G.                  Neither an Extra Contractual Obligation nor a Loss Excess of Policy Limits shall include any Losses, liabilities, penalties, costs
or other expenses arising out of any adjudicated fraudulent or criminal act by any officer or director of the Retrocessionaire acting
individually or collectively or in collusion with any other organization or party involved in the presentation, defense, or settlement
of any claim covered under this Retrocession Agreement, which all such Losses, Liabilities, penalties, costs or other expenses shall be
the responsibility of Retrocessionaire and shall not be considered Ultimate Net Loss.

 

H.                
The Reinsurer shall be indemnified in accordance with this Article to the fullest extent permitted by applicable Law.

 

ARTICLE 20

 

FEDERAL EXCISE TAX

 

A.                  To
the extent that any portion of the Premium paid to the Retrocessionaire under this Retrocession Agreement is subject to the Federal
Excise Tax (as imposed under Section 4371 of the Internal Revenue Code) (“FET”) and the Retrocessionaire is not
exempt therefrom, the Retrocessionaire shall allow for the purpose of paying the FET, a deduction by the Reinsurer of the applicable
percentage of the Premium payable hereunder. In the event of any return of Premium becoming due hereunder, the Reinsurer shall use
commercially reasonable efforts to obtain a refund of any FET paid to the IRS in respect of such returned Premium, and shall pay any
such refunded FET over to the Retrocessionaire as soon as practicable following the receipt of such refund. Reinsurer or its agent
shall be responsible for remitting any FET withheld from the Premium paid to the Retrocessionaire to the IRS. The Retrocessionaire
shall reimburse the Reinsurer for any FET imposed on Premiums paid (or deemed paid) to the Retrocessionaire under this Retrocession
Agreement that is not deducted and withheld in accordance with Article 6 and this Article 20.

 

B.                  To
the extent applicable, in consideration of the terms under which this Retrocession Agreement is issued, the Reinsurer undertakes not to
claim any deduction of the premium hereon when making Canadian Tax returns or when making tax returns, other than Income or Profits Tax
returns, to any State or Territory of the United States of America or to the District of Columbia.

 

    28 

     

    

 

ARTICLE 21

 

TAX INFORMATION REPORTING AND WITHHOLDING

 

A.                 Prior to the Effective Date, the Reinsurer shall provide the Retrocessionaire with the Reinsurer’s IRS Form W-9, and the
Retrocessionaire shall provide the Reinsurer with the Retrocessionaire’s IRS Form W-8BEN-E. In the event the IRS Form W-9 or IRS
Form W-8BEN-E initially provided may no longer be relied upon, the Reinsurer or Retrocessionaire, as applicable, shall upon the other
party’s reasonable request promptly provide to such other party an updated form. To the extent the Retrocessionaire is subject to
the deduction and withholding of Premium payable hereunder under applicable Law, including, but not limited to, under the Foreign Account
Tax Compliance Act (Sections 1471-1474 of the Internal Revenue Code), the Retrocessionaire agrees to allow such deduction and withholding
from the Premium payable under this Retrocession Agreement, and the Reinsurer shall have no obligation to gross-up the Retrocessionaire
for any such withheld amounts.

 

B.                   In the event of any return of Premium becoming due hereunder, the Reinsurer shall use commercially reasonable efforts to assist
the Retrocessionaire in obtaining any refund permitted by applicable Law. In that event, the Retrocessionaire agrees to provide the Reinsurer
or its agent with all information, assistance and cooperation which the Reinsurer or its agent reasonably requests in order to assist
the Retrocessionaire in obtaining a refund. The Retrocessionaire further agrees that it will do nothing to prejudice the Reinsurer’s
or its agent’s position or their potential or actual rights of recovery.

 

ARTICLE 22

 

INSOLVENCY

 

A.                
In the event of insolvency and the appointment of a conservator, liquidator, receiver, or statutory successor of the Reinsurer,
any risk or obligation assumed by the Retrocessionaire shall be payable to the conservator, liquidator, receiver, or statutory successor
on the basis of claims allowed against the insolvent Reinsurer by any court of competent jurisdiction or by any conservator, liquidator,
receiver, or statutory successor of the Reinsurer having authority to allow such claims, without diminution because of that insolvency,
or because the conservator, liquidator, receiver, or statutory successor has failed to pay all or a portion of any claims.

 

B.                  Payments by the Retrocessionaire as above set forth shall be made directly to the Reinsurer, the Companies, or to Reinsurer’s
conservator, liquidator, receiver, or statutory successor, except where the contract of insurance or reinsurance specifically provides
another payee of such reinsurance or except as provided by applicable Law and regulation in the event of the insolvency of the Reinsurer.

 

    29 

     

    

 

 

C.       In
the event of the insolvency of the Reinsurer, the liquidator, receiver, conservator or statutory successor of the Reinsurer shall give
written notice to the Retrocessionaire of the pendency of a claim against the insolvent Reinsurer on the Policy or Policies reinsured
within a reasonable time after such claim is filed in the insolvency proceeding, and, during the pendency of such claim, Retrocessionaire
may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or
defenses which it may deem available to the Reinsurer or its liquidator, receiver, conservator or statutory successor. The expense thus
incurred by the Retrocessionaire shall be chargeable subject to court approval against the insolvent Reinsurer as part of the expense
of liquidation to the extent of a proportionate share of the benefit which may accrue to the Reinsurer solely as a result of the defense
undertaken by the Retrocessionaire.

 

ARTICLE 23

 

OFFSET

 

The Reinsurer and the Retrocessionaire shall have
the right to offset any balance or amounts due from one Party to the other under the terms of this Retrocession Agreement. In addition,
Retrocessionaire shall specifically have the right of offset against any balance or amounts due to Reinsurer or Companies in the event
that Collateral Funds in the Statutory Trust Accounts are used or withdrawn in violation of the terms and conditions of the Statutory
Trust Agreements or this Retrocession Agreement. In the event of insolvency of a Party hereto, offset shall be as permitted by applicable
Law.

 

ARTICLE 24

 

PRIVACY & PROTECTION OF DATA

 

A.                
The Reinsurer and the Retrocessionaire represent that they are aware of and in compliance with their responsibilities and obligations
under applicable Laws and regulations pertaining to Non-Public Personal Information (“NPPI”) and Protected Health Information
(“PHI”). For the purpose of this Retrocession Agreement, NPPI and PHI shall mean (i) financial or health information
that identifies an individual, including claimants under Policies reinsured under this Retrocession Agreement, and which information is
not otherwise available to the public, and (ii) any other information which would constitute personal information or personal health information
under applicable Laws or regulations relating to the collection, retention, protection and use of such information, including the Gramm-Leach-Bliley
Act of 1999, the Health Insurance Portability and Accountability Act of 1996 and the Health Information Technology for Economic and Clinical
Health Act, and all amendments to and further regulations thereto (collectively, “Privacy Laws”). Data conveyed to
the Retrocessionaire may include NPPI and/or PHI that is protected under applicable Privacy Laws and shall be used only in the performance
of rights, obligations and duties in connection with this Retrocession Agreement.

 

B.                 
The Retrocessionaire shall maintain appropriate safeguards to protect any NPPI and PHI received hereunder from accidental loss
or unauthorized access, use or disclosure, which such safeguards shall, at a minimum, comply with all applicable Privacy Laws. The Retrocessionaire
shall immediately report to the Reinsurer any known or reasonably suspected accidental loss or unauthorized access, use or disclosure
of any NPPI or PHI held by or on behalf of the Retrocessionaire hereunder.

 

C.                 
Without limiting the foregoing, the Retrocessionaire shall collect and use NPPI and PHI solely as permitted by, and shall not otherwise
violate, any applicable privacy policy(ies) of the Reinsurer or with which the Reinsurer must comply which have been provided to the Retrocessionaire
in writing, or which are otherwise known to the Retrocessionaire.

 

    30 

     

    

 

D.       Upon
receipt of any request from the Reinsurer for the deletion of any NPPI or PHI, the Retrocessionaire shall promptly comply with such request
and certify such deletion to the Reinsurer. The Retrocessionaire shall convey to the Reinsurer any request for the deletion of NPPI or
PHI received from any purported data subject.

ARTICLE 25

 

SANCTIONS

 

Neither the Reinsurer nor
the Retrocessionaire shall be liable for any amounts under this Retrocession Agreement if it would result in a violation of any mandatory
sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European
Union, United Kingdom or United States of America that are applicable to either Party.

 

ARTICLE 26

 

SERVICE OF SUIT

 

A.                
This Article will not be read to conflict with or override the obligations of the Parties to arbitrate their disputes as provided
for in the Article entitled ARBITRATION. This Article is intended as an aid to compel required arbitration or enforce an
arbitration or arbitral award, not as an alternative to the Article entitled ARBITRATION for resolving disputes arising
out of this Reinsurance Agreement.

 

B.                 
In the event of any dispute, the Retrocessionaire, at the request of the Reinsurer, shall submit to the jurisdiction of a court
of competent jurisdiction within the State of Texas. The Retrocessionaire agrees to comply with all requirements necessary to give such
court jurisdiction over the Retrocessionaire. The Retrocessionaire further agrees to abide by the final decision of such court or an appellate
court to which such court’s decision is appealed. Nothing in this Article constitutes or should be understood to constitute a waiver
of the Retrocessionaire’s rights to commence an action in any court of competent jurisdiction in the United States, to remove an
action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States
or of any state in the United States.

 

C.                 
Service of process in any such suit against the Retrocessionaire may be made upon its duly authorized agent for service of process,
R&Q Solutions LLC, Two Logan Square, Suite 600, Philadelphia, PA 19103, Attn: Christopher Reichow, U.S. General Counsel (the “Retrocessionaire’s
Agent for Process”), and in any suit instituted, the Retrocessionaire shall abide by the final decision of such court or of
any appellate court in the event of an appeal.

 

D.                
The Retrocessionaire’s Agent for Process is authorized and directed to accept service of process on behalf of the Retrocessionaire
in any such suit.

 

E.                 
Further, as required by and pursuant to any statute of any state, territory or district of the United States which makes provision
therefore, the Retrocessionaire hereby designates the Superintendent, Commissioner or Director of Insurance or other officer specified
for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any
lawful process in any action, suit or proceeding instituted by or on behalf of the Reinsurer arising out of this Retrocessionaire Agreement,
and hereby designates the Retrocessionaire’s Agent for Process as the person to whom the said officer is authorized to mail such
process or a true copy thereof.

 

    31 

     

    

 

ARTICLE 27

 

REGULATORY MATTERS

 

If Reinsurer or Retrocessionaire
receives notice of, or otherwise becomes aware of any inquiry, investigation, examination, audit, enforcement action or proceeding by
any Governmental Authority relating to this Retrocession Agreement or the Reinsurance Agreement, Reinsurer or the Retrocessionaire, as
applicable, shall promptly notify the other Party thereof, whereupon the Parties shall cooperate to resolve such matter.

 

ARTICLE 28

 

LIMITED RECOURSE AND BERMUDA REGULATIONS

 

A.                
Reinsurer and the Companies acknowledge and agree that Retrocessionaire is a segregated account of R&Q. Notwithstanding anything
to the contrary herein, the total liability of Retrocessionaire for the performance and discharge of all of its obligations, however they
may arise, in relation to this Retrocession Agreement and the Statutory Trust Agreements, shall be limited to and payable solely from
the proceeds of realization of the assets of the Retrocessionaire and, accordingly, neither Reinsurer nor the Companies shall have any
recourse, direct or indirect, to any other assets of R&Q whether or not allocated to any other segregated account or the general account
of R&Q. In the event that the proceeds of realization of the assets of Retrocessionaire are insufficient to meet all obligations,
Reinsurer and the Companies undertake in such circumstances to take no action against R&Q in respect of any such obligations. In particular,
neither the Reinsurer, the Companies, nor any party acting on either entity’s behalf shall petition or take any steps for the winding
up or receivership of R&Q.

 

B.                 
Notwithstanding any matter referred to herein, the Reinsurer and the Companies understand and accept that Retrocessionaire is a
segregated account of R&Q that contains assets and liabilities that are legally separate from the assets and liabilities of R&Q’s
general account and other segregated accounts and that all corporate matters relating to the creation of Retrocessionaire, capacity of
Retrocessionaire, operation and liquidation of Retrocessionaire and any matters relating to Retrocessionaire thereof shall be governed
by, and construed in accordance with, the laws of Bermuda. The transactions contemplated under this Retrocession Agreement shall be linked
to the segregated account. Reinsurer and the Companies each have had the opportunity to take advice and to obtain all such additional
information that it considers necessary to evaluate the terms, conditions and risks of entering into this Retrocession Agreement with
Retrocessionaire.

 

ARTICLE 29

 

REPRESENTATIONS AND WARRANTIES; COVENANTS

 

A.       Reinsurer
represents and warrants to Retrocessionaire as of the date hereof that the Reinsurance Agreement attached hereto as Exhibit B is
full, correct, and complete, and has not been further amended or replaced. No amendment of the Reinsurance Agreement shall alter the
Retrocessionaire’s rights and obligations hereunder or under the Reinsurance Agreement with respect to
Retrocessionaire’s status as a third party beneficiary of the Reinsurance Agreement, without the Retrocessionaire’s
prior written consent and any such amendment made without Retrocessionaire’s prior written consent shall not be binding on
Retrocessionaire and shall not alter the Retrocessionaire’s rights or obligations hereunder or under the Reinsurance Agreement
in any way. Reinsurer shall not be required to obtain Retrocessionaire’s consent for any amendments of the Reinsurance
Agreement that do not alter Retrocessionaire’s rights and obligations hereunder, but Reinsurer shall provide notice and a copy
of such amendments to Retrocessionaire.

 

    32 

     

    

 

B.                 
Reinsurer represents and warrants to Retrocessionaire that the Policies for the Subject Business have not been further amended
or replaced since the Effective Date, other than (i) in the ordinary course of business, (ii) in accordance with changes in applicable
Law, or (iii) in accordance with the terms of such Policies, and in any case such amendments or replacements set forth in subclauses (i)-(iii)
do not materially increase the risk to Retrocessionaire as disclosed. No amendment or replacement not expressly permitted herein shall
be made without the Retrocessionaire’s prior written consent and any such amendment or replacement made without Retrocessionaire’s
prior written consent shall not be binding on Retrocessionaire and shall not alter the Retrocessionaire’s rights or obligations
hereunder or under the Reinsurance Agreement in any way.

 

C.                 
Reinsurer represents and warrants to Retrocessionaire as of the date hereof that the Subject Business and associated information
attached hereto as Exhibit A is full, correct, and complete, and has not been further amended or replaced. No amendment of or endorsement
to the Policies written in respect of the Subject Business (other than as set forth in Section A) shall affect Ultimate Net Loss ceded
hereunder without Retrocessionaire’s written consent.

 

D.                
Neither Company nor Reinsurer shall enter into any arrangement with existing reinsurers, or take any other action with respect
to such existing reinsurance arrangements or the agreements evidencing such arrangements, that reduce, restrict or otherwise limit the
cover provided by those reinsurers. Any action taken in violation of this Section shall not be binding on Retrocessionaire and shall not
alter the Retrocessionaire’s rights or obligations hereunder in any way.

 

ARTICLE 30

 

MISCELLANEOUS

A.       Interpretation.

 

1.       As used in this
Retrocession Agreement, references to the following terms have the meanings indicated:

 

a.                  
to the Preamble or to the Recitals, Sections, Articles, Exhibits or Schedules are to the Preamble or a Recital, Section or Article
of, or an Exhibit or Schedule to, this Retrocession Agreement unless otherwise clearly indicated to the contrary;

 

b.                  
to any contract or agreement (including this Retrocession Agreement) are to the contract or agreement as amended, modified, supplemented
or replaced from time to time;

 

c.                  
to any law are to such law as amended, modified, supplemented or replaced from time to time and all rules and regulations promulgated
thereunder, and to any section of any law include any successor to such section;

 

d.                  
to any Governmental Authority include any successor to the Governmental Authority and to any affiliate include any successor to
the affiliate;

 

e.                  
to any “copy” of any contract or agreement or other document or instrument are to a true and complete copy thereof;

 

    33 

     

    

 

f.                   
 to “hereof,” “herein,” “hereunder,” “hereby,” “herewith” and words
of similar import refer to this Retrocession Agreement as a whole and not to any particular Article, Section or clause of this Retrocession
Agreement, unless otherwise clearly indicated to the contrary;

 

g.                  
to the “date of this Retrocession Agreement,” “the date hereof” and words of similar import refer to April
1, 2020; and

 

h.                  
to “this Retrocession Agreement” includes the Exhibits and Schedules.

 

2.                  
Whenever the last day for the exercise of any right or the discharge of any duty under this Retrocession Agreement falls on a day
other than a Business Day, the Party having such right or duty shall have until the next Business Day to exercise such right or discharge
such duty. Unless otherwise indicated, the word “day” shall be interpreted as a calendar day. With respect to any determination
of any period of time, unless otherwise set forth herein, the word “from” means “from and including” and the word
 “to” means “to but excluding.”

 

3.                  
Whenever the words “include,” “includes” or “including” are used in this Retrocession Agreement,
they will be deemed to be followed by the words “without limitation.” The word “or” shall not be disjunctive unless
context requires otherwise. Any singular term in this Retrocession Agreement will be deemed to include the plural, and any plural term
the singular. All pronouns and variations of pronouns will be deemed to refer to the feminine, masculine or neuter, singular or plural,
as the identity of the person referred to may require. Where a word or phrase is defined herein, each of its other grammatical forms shall
have a corresponding meaning.

 

4.                  
The Parties have participated jointly in the negotiation and drafting of this Retrocession Agreement; consequently, in the event
an ambiguity or question of intent or interpretation arises, this Retrocession Agreement shall be construed as jointly drafted by the
Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision
of this Retrocession Agreement.

 

5.                  
No summary of this Retrocession Agreement prepared by or on behalf of any Party shall affect the meaning or interpretation of this
Retrocession Agreement.

 

6.                  
All capitalized terms used without definition in the Exhibits and Schedules to this Retrocession Agreement shall have the meanings
ascribed to such terms in this Retrocession Agreement.

 

B.                 
Binding Effect; Assignment. This Retrocession Agreement shall be binding upon and inure to the benefit of the Parties, and
their respective successors and permitted assigns. This Retrocession Agreement may not be assigned by either Party, by operation of law
or otherwise, without the prior written consent of the other Party, which consent may be withheld by either Party in its sole unfettered
discretion. Any assignment in violation hereof shall be void. This provision shall not be construed to preclude the assignment by the
Reinsurer of reinsurance recoverables to another party for collection.

 

C.                 
Governing Law. This Retrocession Agreement shall be governed by and construed according to the laws of the state of Texas,
exclusive of that state’s rules with respect to conflicts of law.

 

D.                
Headings. The table of contents and headings preceding the text of the Articles and Sections of this Retrocession Agreement
are intended and inserted solely for the convenience of reference and shall not affect the meaning, interpretation, construction or effect
of this Retrocession Agreement.

 

    34 

     

    

 

E.                 
 Entire Agreement; Amendment. This Retrocession Agreement and the Transaction Agreements shall constitute the entire agreement
between the Parties with respect to the Subject Business hereunder. Any change or modification of this Retrocession Agreement shall be
null and void unless made by written amendment to the Retrocession Agreement and signed by all Parties. Nothing in this Article shall
act to preclude the introduction of reinsurance submission-related documents in any dispute between the Parties. No termination of this
Retrocession Agreement shall be effective unless such is made in writing and signed by the Parties hereto.

 

F.                 
No Third Party Beneficiaries. Nothing in this Retrocession Agreement is intended or shall be construed to give any person,
other than the Parties hereto and the Companies, any legal or equitable right, remedy or claim under or in respect of this Retrocession
Agreement or any provision contained herein, other than the Reinsurer and the Retrocessionaire, except any other applicable party pursuant
to the Article entitled INSOLVENCY. The Companies are intended, express third party beneficiaries of all provisions of this
Retrocession Agreement.

 

G.                
Remedies. In the event of any default hereunder beyond the applicable cure period (if any), the non-defaulting Party may
proceed to protect and enforce its rights either by suit in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such default. The rights and remedies provided herein shall be cumulative and not exclusive of any rights or
remedies provided by law, except as set forth in the Article entitled ARBITRATION.

 

H.                
Severability. If any provision of this Retrocession Agreement should be invalid under applicable Laws, the latter shall
control but only to the extent of the conflict without affecting the remaining provisions of this Retrocession Agreement.

 

I.                   
Waiver. The failure of the Reinsurer or Retrocessionaire to insist on strict compliance with this Retrocession Agreement
or to exercise any right or remedy shall not constitute a waiver of any rights contained in this Retrocession Agreement nor estop the
parties from thereafter demanding full and complete compliance nor prevent the Parties from exercising any remedy.

 

J.                   
Force Majeure. Each Party shall be excused for any reasonable failure or delay in performing any of its respective obligations
under this Retrocession Agreement, if such failure or delay is caused by Force Majeure. “Force Majeure” shall mean
any act of God, strike, lockout, act of public enemy, any accident, explosion, fire, storm, earthquake, flood, drought, peril of sea,
riot, embargo, war or foreign, federal, state or municipal order or directive issued by a court or other authorized official, seizure,
requisition or allocation, any failure or delay of transportation, shortage of or inability to obtain supplies, equipment, fuel or labor
or any other circumstance or event beyond the reasonable control of the Party relying upon such circumstance or event.

 

K.                
Survival. Notwithstanding anything to the contrary herein, all Articles of this Retrocession Agreement shall survive the
termination of this Retrocession Agreement until all surviving obligations between the Parties have been finally settled.

 

L.                 
Construction. Whenever the content of this Retrocession Agreement requires, the gender of all words shall include the masculine,
feminine and neuter, and the number of all words shall include the singular and the plural. This Retrocession Agreement shall be construed
without regard to any presumption or other rule requiring construction against the Party causing this Retrocession Agreement to be drafted.

 

    35 

     

    

 

M.                Authority.
Each Party has full power and authority to execute and deliver this Retrocession Agreement and to perform its obligations hereunder.
The execution and delivery of this Retrocession Agreement, and the consummation of the transactions contemplated herein, have been
duly and validly approved by all requisite action on the part of each Party, and no other proceedings on the part of either Party,
is necessary to approve this Retrocession Agreement and to consummate the transactions contemplated herein. This Retrocession
Agreement has been duly and validly executed and delivered by each Party, and constitutes the legal, valid and binding obligation of
each Party, enforceable against each Party in accordance with its terms, except as enforcement may be limited by general principles
of equity, whether applied in a court of law or a court of equity, and by bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting or relating to creditors’ rights and remedies generally.

 

N.       Notices.
All notices and other communications under this Retrocession Agreement shall be in writing and shall be deemed given (a) when
delivered personally by hand, (b) when sent by email, (c) three (3) Business Days after being sent by certified mail, or (d) one (1)
Business Day following the day sent by an internationally recognized overnight courier, in each case, at the following addresses,
and email addresses (or to such other address or email address as a Party may have specified by notice given to the other Party
pursuant to this provision):

 

In the case of Retrocessionaire:

 

R&Q Bermuda (SAC) Limited

Randall & Quilter Investment Holdings Ltd.

F B Perry Building, 40 Church Street

Hamilton HM11, Bermuda

Attention: Paul Corver

Email: [***]

 

With a copy to:

 

R&Q Solutions, LLC

Two Logan Square

Suite 600

Philadelphia, PA 19103

Attention: Christopher Reichow, U.S. General Counsel

Email: [***]

 

In the case of the Reinsurer:

 

HIIG Re

c/o Marsh Management Services Cayman Ltd.

P.O. Box 1051

Grand Cayman KY1-1102

CAYMAN ISLANDS

Attention: Kieran O’Mahony

Email: [***]

 

With a copy to:

 

HIIG Re

Legal Department

800 Gessner, Suite 600

Houston, TX 77024

Email: [***]

 

    36 

     

    

 

In the case of the Companies:

 

Houston Specialty Insurance Company

Legal Department

800 Gessner, Suite 600

Houston, TX 77024

Email: [***]

 

Imperium Insurance Company

Legal Department

800 Gessner, Suite 600

Houston, TX 77024

Email: [***]

 

Great Midwest Insurance Company

Legal Department

800 Gessner, Suite 600

Houston, TX 77024

Email: [***]

 

O.       Counterparts:
Electronic Execution. This Retrocession Agreement may be executed in one or more counterparts, each of which will be deemed to
constitute an original, but all of which shall constitute one and the same agreement, and may be delivered by electronic means
intended to preserve the original graphic or pictorial appearance of a document, including portable document format (PDF) scan.

 

(signatures appear on the following page)

 

    37 

     

    

 

IN WITNESS WHEREOF, each of the Parties has caused
this Retrocession Agreement to be executed on its behalf as of April 1, 2020.

 

	RETROCESSIONAIRE: 	 
	 	 	 
	R&Q BERMUDA (SAC) LIMITED	 
	ACTING IN RESPECT OF THE HIIG SEGREGATED ACCOUNT	 
	 	 
	By: 	/s/ Stewart Ritchie	 
	 	Name:	Stewart Ritchie	 
	 	Title: 	Director	 
	 	 	 
	REINSURER: 	 
	 	 	 
	HIIG RE	 
	 	 	 
	By:	/s/ Kieran O’Mahony	 
	 	Name: 	Kieran O’Mahony	 
	 	Title:	SVP March Management Services Cayman Ltd. as Assistant Secretary	 
	 	 	 
	COMPANIES: 	 
	 	 	 
	HOUSTON SPECIALTY INSURANCE COMPANY	 
	 	 	 
	By:	/s/ Peter B. Smith	 
	 	Name:	Peter B. Smith	 
	 	Title:	President	 
	 	 	 
	IMPERIUM INSURANCE COMPANY	 
	 	 	 
	By: 	/s/ Peter B. Smith	 
	 	Name: 	Peter B. Smith	 
	 	Title: 	President	 

 

(signatures continue on the following page)

 

(Signature page to Loss Portfolio
Transfer Retrocession Agreement)

 

    38 

     

    

 

	COMPANY (continued from previous page):	 
	 	 
	GREAT MIDWEST INSURANCE COMPANY	 
	 	 
	By: 	/s/ Peter B. Smith	 
	 	Name: 	Peter B. Smith	 
	 	Title: 	President	 

 

(Signature page to Loss Portfolio Transfer Retrocession
Agreement — cont.)

 

    39 

     

    

 

 

	CONFIDENTIAL INFORMATION	Execution Version

 

EXHIBIT A 

SUBJECT BUSINESS

 

Group A

 

[***]

 

    40 

     

    

 

	CONFIDENTIAL INFORMATION	Execution Version

 

Group B

 

[***]

 

    41 

     

    

 

	CONFIDENTIAL INFORMATION	Execution Version

 

EXHIBIT B

 

Reinsurance Agreement

 

LOSS PORTFOLIO TRANSFER AND ADVERSE DEVELOPMENT

REINSURANCE AGREEMENT

 

by and among

 

HOUSTON SPECIALTY INSURANCE COMPANY,

IMPERIUM INSURANCE COMPANY,

GREAT MIDWEST INSURANCE COMPANY,

 

and

 

HIIG RE

 

Dated as of: April 1, 2020

 

    42 

     

    

 

TABLE OF CONTENTS

 

	ARTICLE SUBJECT	PAGE
	ARTICLE 1 BUSINESS COVERED	44
	ARTICLE 2 DEFINITIONS	45
	ARTICLE 3 COMMENCEMENT AND TERMINATION	50
	ARTICLE 4 EXCLUSIONS	50
	ARTICLE 5 REINSURANCE COVERAGE & APPLICATION OF DEDUCTIBLE	51
	ARTICLE 6 PREMIUM	52
	ARTICLE 7 ROLL FORWARD OF ORIGINAL AMOUNTS	53
	ARTICLE 8 REINSURANCE WARRANTY	55
	ARTICLE 9 ADMINISTRATION OF SUBJECT BUSINESS	57
	ARTICLE 10 ACCOUNTING FOR RESERVES	59
	ARTICLE 11 COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT FOR REINSURANCE	59
	ARTICLE 12 REPORTS AND SETTLEMENTS	59
	ARTICLE 13 COMMUTATION	61
	ARTICLE 14 ACCESS TO RECORDS	61
	ARTICLE 15 ARBITRATION	62
	ARTICLE 16 CONFIDENTIALITY	64
	ARTICLE 17 CURRENCY	65
	ARTICLE 18 DELAYS, ERRORS AND OMISSIONS	65
	ARTICLE 19 EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS	66
	ARTICLE 20 [Reserved]	67
	ARTICLE 21 TAX INFORMATION REPORTING AND WITHHOLDING	67
	ARTICLE 22 INSOLVENCY	67
	ARTICLE 23 OFFSET	68
	ARTICLE 24 PRIVACY & PROTECTION OF DATA	68
	ARTICLE 25 SANCTIONS	69
	ARTICLE 26 SERVICE OF SUIT	69
	ARTICLE 27 REGULATORY MATTERS	69
	ARTICLE 28 MISCELLANEOUS	70

 

EXHIBIT A SUBJECT BUSINESS

EXHIBIT B RETROCESSION AGREEMENT

EXHIBIT C STATUTORY TRUST AGREEMENT FORM

EXHIBIT D ROLL FORWARD METHODS

EXHIBIT E SAMPLE CALCULATION OF REINSURANCE WARRANTY

 

    43 

     

    

 

LOSS PORTFOLIO TRANSFER AND ADVERSE DEVELOPMENT

REINSURANCE AGREEMENT

 

This LOSS PORTFOLIO TRANSFER
AND ADVERSE DEVELOPMENT REINSURANCE AGREEMENT (this “Reinsurance Agreement”), dated as of April 1, 2020, is made and
entered into by and among, HOUSTON SPECIALTY INSURANCE COMPANY, IMPERIUM INSURANCE COMPANY, and GREAT MIDWEST INSURANCE COMPANY, each
a Texas domiciled insurance company (collectively, the “Companies”, individually, a “Company”) and
HIIG Re, a Cayman Islands corporation and an affiliate of the Companies (the “Reinsurer”).

 

W I T N E S S E T H: 

 

WHEREAS, the Companies and
the Reinsurer wish to enter into this loss portfolio transfer and adverse development reinsurance agreement, incepting at the Effective
Time, pursuant to which the Companies shall cede and the Reinsurer shall accept and reinsure all of Ultimate Net Loss arising out of or
relating to Policies comprising the Subject Business, subject to the Aggregate Limit (the “Reinsured Liabilities”)
and the terms and conditions set forth herein;

 

WHEREAS, concurrent with the
execution and delivery of this Reinsurance Agreement, the Reinsurer, as the retrocedent, is entering into that certain loss portfolio
transfer and adverse development retrocession agreement incepting at the Effective Time, attached hereto as Exhibit B (the “Retrocession
Agreement”) by and between Reinsurer and R&Q Bermuda (SAC) Limited, a Bermuda limited company, acting in respect of the
HIIG Segregated Account (in such capacity, the “Retrocessionaire”) whereby the Reinsurer will cede and the Retrocessionaire
will reinsure all of the Ultimate Net Loss, except for the portion retained by the Reinsurer pursuant to Article 5 of the Retrocession
Agreement, under and subject to the terms of the Retrocession Agreement; and

 

WHEREAS, on the date hereof,
concurrent with the execution and delivery of this Reinsurance Agreement, each Company individually, the Reinsurer, the Retrocessionaire
and The Bank of New York Mellon shall enter into certain Statutory Trust Agreements, pursuant to which Retrocessionaire shall collateralize
its obligations in respect of ultimate net loss reinsured under the Retrocession Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, and intending to be legally bound hereby, Reinsurer and Retrocessionaire hereby agree as follows:

 

ARTICLE 1

 

BUSINESS COVERED

 

A.                
This Reinsurance Agreement applies to all Ultimate Net Loss that is paid or payable by the Companies on and after the Effective
Date in respect of the Subject Business, subject to all the terms and conditions of this Reinsurance Agreement.

 

B.                  The
Reinsurer’s liability under this Reinsurance Agreement shall commence at the Effective Time, and all reinsurance of Ultimate
Net Loss ceded hereunder is subject to the same risks, terms, rates, conditions, assessments, interpretations, waivers,
modifications, alterations and cancellations as the respective Policies to which this Reinsurance Agreement applies, except as may
be expressly modified by the specific terms and conditions of this Reinsurance Agreement, the true intent of this Reinsurance
Agreement being that the Reinsurer shall, except as may be expressly modified by the specific terms and conditions of this
Reinsurance Agreement, (i) follow the fortunes of the Companies, and (ii) be bound, without limitation, by all payments and
settlement entered into by or on behalf of the Companies, including (for the avoidance of doubt) any payments or settlements entered
into from the Effective Date to the date hereof.

 

C.                 Should
any regulatory or other legal restriction of any applicable jurisdiction require modification of any Policy to which this
Reinsurance Agreement applies, or should any such Policy be modified in accordance with its terms or with consent of the Reinsurer,
the liability of the Reinsurer will follow that of the Companies, Oklahoma Specialty Insurance Company, an affiliate of the
Companies, subject to the express exclusions set forth herein and the other terms and conditions of this Reinsurance Agreement.

 

    44 

     

    

 

ARTICLE 2

 

DEFINITIONS

 

The Recitals are incorporated into this Reinsurance
Agreement as if set forth at length herein. Capitalized terms as used in this Reinsurance Agreement (including in the Recitals and Article
0) shall have the meanings set forth below throughout this Reinsurance Agreement:

 

“Actuary’s
Rolled Amounts” has the meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Aggregate Limit”
has the meaning provided under the Article entitled REINSURANCE COVERAGE.

 

“Agreement Deadline”
has the meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Allocated Loss Adjustment
Expenses” means all expenses and costs sustained, without duplication, by the Companies in connection with the adjustment, defense,
settlement or litigation of claims or suits, satisfaction of judgments, or resistance to or negotiations concerning a Loss or potential
Loss under specific Policies. Allocated Loss Adjustment Expenses shall include (i) the expenses and costs of TPAs (which, for the avoidance
of doubt, shall not constitute Unallocated Loss Adjustment Expenses), (ii) legal expenses and costs incurred in connection with coverage
analysis and questions regarding specific claims and legal actions assignable to a specific Policy, including declaratory judgment actions
connected thereto (whether or not a Loss is incurred), (iii) all interest on judgments, and (iv) expenses and costs sustained to obtain
recoveries, salvages or other reimbursements, or to secure the reversal or reduction of a verdict or judgment. Allocated Loss Adjustment
Expenses shall not include any normal overhead, office expenses, fees, commissions, salaries and other employee compensation, and other
similar expenses of the Reinsurer, TPAs, or the Companies, whether or not incurred in connection with adjusting a Loss, which shall be
termed the “Unallocated Loss Adjustment Expenses.”

 

“Board” has the meaning provided under
the Article entitled ARBITRATION.

 

“Brokerage”
means the brokerage fee payable to Guy Carpenter, LLC by the Reinsurer on behalf of the Retrocessionaire in respect of the transactions
contemplated under the Transaction Agreements, in the amount of [***].

 

    45 

     

    

 

“Business Day”
means a day other than (i) a Saturday; (ii) a Sunday; or (iii) a day on which banking institutions or trust companies in Texas, the Cayman
Islands, or Bermuda, are authorized or required by applicable Law or executive order to remain closed.

 

“Ceded Reserves”
means the Reserves for Ultimate Net Loss ceded to the Reinsurer under this Reinsurance Agreement in respect of Subject Business (including,
for the avoidance of doubt, reserves for IBNR), calculated in accordance with SAP for the Companies.

 

“Claims Estimate”
has the meaning set forth under the Article entitled REPORTS AND SETTLEMENTS.

 

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

 

“Companies” and “Company” has the meaning provided under the Preamble.

 

“Confidential Information”
has the meaning provided under the Article entitled CONFIDENTIALITY.

 

“Deductible”
means One Hundred Five Million Dollars ($105,000,000.00), which amount shall be rolled forward pursuant to the Article entitled ROLL
FORWARD OF ORIGINAL AMOUNTS.

 

“Deemed Amounts”
has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

“Disclosing Party” has the meaning
provided under the Article entitled CONFIDENTIALITY.

 

“Doctrine” has
the meaning provided under the Article entitled ACCESS TO RECORDS.

 

“Effective
Date” means April 1, 2020.

 

“Effective Time” means 12:00:01
a.m. Central Time on the Effective Date.

 

“Eligible Assets”
means cash (United States legal tender), certificates of deposit (issued by a bank organized under the laws of the United States, or located
in the United States, and payable in United States legal tender), or investments of the types permitted by Texas Insurance Code §
493.104; provided that such investments are issued by an institution that is not the parent, subsidiary, or affiliate of any of
the Companies, the Reinsurer or the Retrocessionaire and such investments comply with the investment guidelines agreed by the Companies,
the Reinsurer and the Retrocessionaire. The Companies, the Reinsurer and the Retrocessionaire agree that “Eligible Assets”
shall not include any assets held or principally traded outside the United States. The Parties further agree that the defined term “Eligible
Assets” do not include mortgages, collateralized debt obligations, collateralized loan obligations, real estate or derivatives.
Additionally, to be an Eligible Asset, an investment must be interest bearing, interest accruing with a specific maturity date on which
redemption is to be made at stated value, and not in default and shall otherwise qualify under Texas Insurance Law.

 

“Extra Contractual
Obligations” has the meaning provided under the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS.

 

“FET” has the meaning
provided under the Retrocession Agreement.

 

    46 

     

    

 

“Governmental Authorities”
means collectively any applicable federal, state, local or foreign governmental, administrative or regulatory authority, court, agency
or instrumentality, including the Texas Department of Insurance.

 

“Group A Participation
Attachment Point” has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group A Participation
Attachment Point Premium” has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF
DEDUCTIBLE.

 

“Group A Policies” has the meaning
set forth under the definition of Subject Business herein.

 

“Group A Sublimit”
has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group B Participation
Attachment Point” has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“Group B Participation
Attachment Point Premium” has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF
DEDUCTIBLE.

 

“Group B Policies” has the meaning
set forth under the definition of Subject Business herein.

 

“Group B Sublimit”
has the meaning provided under the Article entitled REINSURANCE COVERAGE & APPLICATION OF DEDUCTIBLE.

 

“IBNR”
means incurred but not reported losses, as calculated in accordance with SAP for the Companies.

 

“Inuring Reinsurance”
means reinsurance or retrocession coverages and related recoverables (as applicable) for the benefit of the Companies from unaffiliated
reinsurance companies to the extent covering the Subject Business which were procured prior to the earlier to occur of the date hereof
and the Effective Date which shall be subject to the provisions of Article 8.

 

“IRS” means the U.S. Internal Revenue
Service.

 

“Law” means
any federal, state or local law, statute, ordinance, rule, regulation, or principle of common law or equity imposed by or on behalf of
a Governmental Authority.

 

“Loss(es)”
means, without duplication, all amounts paid or payable by the Companies or Oklahoma Specialty Insurance Company arising (i) under any
Policy, subject to the original Policy terms and limit (or any changes to such Policy terms or limit required by applicable Law or approved
in writing by the Reinsurer) or (ii) out of escheat or unclaimed property Laws applicable to the Policies. Losses shall not include Allocated
Loss Adjustment Expenses.

 

“Loss Excess of Policy
Limits” has the meaning provided under the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS.

 

“Minimum Notional
Amount” has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

    47 

     

    

 

“Net Loss”
means, without duplication, all Loss, Allocated Loss Adjustment Expenses, Extra Contractual Obligations, and Loss Excess of Policy Limits,
payable on and after the Effective Date in respect of the Subject Business.

 

“Notional Amount”
has the meaning provided under the Article entitled REINSURANCE WARRANTY.

 

“NPPI”
has the meaning provided under the Article entitled PRIVACY & PROTECTION OF DATA.

 

“Original Calculation
Date” has meaning provided under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Party” and “Parties”
means either or both, as applicable, the Reinsurer and the Companies.

 

“PHI” has
the meaning provided under the Article entitled PRIVACY & PROTECTION OF DATA.

 

“Policy(ies)”
means each of the binders, policies, slips, line slips and other agreements of insurance, including all endorsements, riders and supplements
thereto and all amendments thereof, in each case, of the Companies or indemnity reinsured by the Companies from Oklahoma Specialty Insurance
Company.

 

“Premium” shall mean Ninety Seven
Million One Hundred Thousand Dollars ($97,100,000.00).

 

“Receiving Party” has the meaning set forth under the Article
entitled CONFIDENTIALITY.

 

“Reinsurance Agreement” has the meaning set forth under the Preamble.

 

“Reinsurance Transaction
Agreements” as the meaning set forth under the Article entitled ARBITRATION.

 

“Reinsurance Warranty
Amount” has the meaning set forth under the Article entitled REINSURANCE WARRANTY.

 

“Reinsurer” has the meaning set forth
under the Preamble.

 

“Reinsurer’s
Adjustment Notice” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Reports” has the meaning set forth under
the Article entitled REPORTS AND SETTLEMENTS.

 

“Representatives” has the meaning set forth under the Article
entitled CONFIDENTIALITY.

 

“Required Collateral Amount” has the meaning set forth in the Retrocession
Agreement.

 

“Required Funding
Amount” has the meaning set forth under the Article entitled REPORTS AND SETTLEMENTS.

 

“Reserves”
means, with respect to any insurer or reinsurer, as required by SAP or applicable Law of the jurisdiction of domicile of such insurance
company, reserves (including any gross, net and ceded reserves, as applicable), funds or provisions for losses, claims (including reserves
for IBNR), unearned premiums, costs and expenses (including Allocated Loss Adjustment Expenses).

 

    48 

     

    

 

“Retrocession Agreement” has the meaning
set forth under the Recitals.

 

“Retrocessionaire” has the meaning set forth under the Recitals.

 

“Rolled Amount”
has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Roll Forward Agreement
Date” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“SAP” means,
as to any insurer or reinsurer, the statutory accounting practices and principles prescribed or permitted by the Governmental Authority
responsible for the regulatory of insurance and reinsurance in the jurisdiction of domicile of such insurer or reinsurer.

 

“Statement of Rolled
Amounts” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

“Statutory Trust Account(s)” has the meaning
set forth in the Retrocession Agreement.

 

“Statutory Trust
Agreement(s)” means the Statutory Trust Agreements, the form of which is attached as Exhibit C hereto.

 

“Subject Business” means 

 

(a)   
the Policies in respect of the business identified as “Group A” in Exhibit A, in each case, incepting prior
to the date specified therein; and

 

(b)   
the Policies in respect of the business identified as “Group B” in Exhibit A, in each case, incepting prior
to the applicable date specified therein.

 

“Term”
has the meaning set forth under the Article entitled COMMENCEMENT AND TERMINATION.

 

“TPAs”
means any and all third party administrators handling claims or performing other services in connection with the Subject Business.

 

“Transaction Agreements”
means this Reinsurance Agreement, the Retrocession Agreement and the Statutory Trust Agreements.

 

“Ultimate Net Loss” means all Net Loss,
which is:

 

(1)       net of:

 

		i.	the amount of all Inuring Reinsurance; and
	 	 	 

		ii.	all salvage, subrogation and recoverables (other than the amount of all Inuring Reinsurance) received
by or offset for the account of the Reinsurer in respect therefor;

 

and

 

    49 

     

    

 

		(2)	subject to the Aggregate Limit and other conditions and limitations provided under the Article entitled
REINSURANCE COVERAGE.

 

“Updated Calculation
Date” has the meaning set forth under the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

In the event of insolvency
of a Company, “Ultimate Net Loss” shall mean the amount of Ultimate Net Loss which the insolvent Company has incurred (or
may incur) or is (or may become) liable for and payment by the Reinsurer shall be made to the receiver or statutory successor of the Company
in accordance with the provisions of the Article entitled INSOLVENCY. Nothing in this Reinsurance Agreement shall be construed
to mean Losses are not recoverable until the final Ultimate Net Loss to the Companies has been ascertained.

 

ARTICLE 3

 

COMMENCEMENT AND TERMINATION 

 

The reinsurance coverage
hereunder shall incept at the Effective Time and shall remain in effect until the earliest of the following (the “Term”):

 

1.               
the date on which the Aggregate Limit is exhausted by payments in respect of paid Ultimate Net Loss made by the Reinsurer;

 

2.               
the date on which all liabilities of the Companies in respect of Net Loss are extinguished and all amounts due to the Companies
(or its statutory successor or receiver) under this Reinsurance Agreement with respect to Ultimate Net Loss have been paid;

 

3.               
the date on which this Reinsurance Agreement is terminated upon mutual agreement of the Reinsurer and the Companies; or

 

4.               
the date on which this Reinsurance Agreement is commuted pursuant to the Article entitled COMMUTATION.

 

ARTICLE 4

 

EXCLUSIONS 

 

This Reinsurance Agreement does not apply to and specifically
excludes:

 

1.               
Net Loss paid or booked as paid by the Companies or Reinsurer before the Effective Date;

 

2.               
Unallocated Loss Adjustment Expenses;

 

3.            Any
reinstatement or other premiums due under the Companies’s existing reinsurance arrangements to the
extent such existing reinsurance arrangements do not inure to the benefit of this Reinsurance Agreement; and

 

4.               
Any payment of profit commission or similar arrangement due from the Companies to any other reinsurer or any other party in respect
of the Subject Business.

 

    50 

     

    

 

ARTICLE 5

 

REINSURANCE COVERAGE & APPLICATION OF
DEDUCTIBLE

 

A.         The
Reinsurer hereby agrees to reimburse the Companies for one hundred percent (100%) of the Ultimate Net Loss with respect to the Subject
Business, subject to the limitations provided in this Article 0.

 

B.         Reinsurer agrees to reinsure and (subject to the Deductible and the Aggregate Limit) indemnify the Companies for Ultimate Net Loss
in the amounts and subject to the conditions set forth below:

 

1.          Group A. Reinsurer
agrees to reinsure Ultimate Net Loss and (subject to the Deductible and the Aggregate Limit) indemnify the Companies for paid
Ultimate Net Loss, in each case, arising out of or relating to Group A Policies in the amounts set forth as follows:

 

a.                  
Reinsurer shall be liable for one hundred percent (100%) of the Ultimate Net Loss on the Group A Policies for the first Twenty
Five Million Dollars ($25,000,000.00) of such Ultimate Net Loss (“Group A Participation Attachment Point”); and

 

b.                  
In addition to the amount set forth in clause B.1.a above, Reinsurer shall be liable for one hundred percent (100%) of every dollar
incurred of Ultimate Net Loss on the first Five Million Dollars ($5,000,000.00) of Ultimate Net Loss on Group A Policies that exceeds
the Group A Participation Attachment Point, subject to payment by the Companies of additional premium (the “Group A Participation
Attachment Point Premium”) equal to FIFTY CENTS ($00.50) per each dollar of such incurred Ultimate Net Loss up to an aggregate
amount of Two Million Five Hundred Thousand Dollars ($2,500,000) of such Group A Participation Attachment Point Premium. Until the Deductible
is exhausted, such additional premium shall be notional, without any payment to Reinsurer hereunder.

 

c.                  
Net Loss (and Inuring Reinsurance and all salvage, subrogation and other recoverables received by or offset for the account of
the Companies in respect of any of the foregoing) that would otherwise constitute Ultimate Net Loss on Group A Policies but that are incurred
(or that correspond to Net Loss) in excess of the first net aggregate Thirty Million Dollars ($30,000,000.00) of such Ultimate Net Loss
ceded hereunder (the “Group A Sublimit”) shall be disregarded and shall not constitute Ultimate Net Loss.

 

2.            Group
B. Reinsurer agrees to reinsure Ultimate Net Loss and (subject to the Deductible and the Aggregate Limit) indemnify Companies
for the Ultimate Net Loss on Policies written for paid Ultimate Net Loss, in each case, arising out of or relating to Group B
Policies, in the amounts set forth as follows:

 

a.                  
Reinsurer shall be liable for one hundred percent (100%) of the Ultimate Net Loss on the Group B Policies for the first One Hundred
Fifty Million Dollars ($150,000,000.00) of such Ultimate Net Loss (“Group B Participation Attachment Point”); and

 

b.                   In
addition to the amount set forth in clause B.2.a above, Reinsurer shall be liable for one hundred percent (100%) of every dollar
incurred of Ultimate Net Loss on the first Seventy Million Dollars ($70,000,000.00) of Ultimate Net Loss on Group B Policies that
exceeds the Group B Participation Attachment Point, subject to payment by the Companies of additional premium (the “Group B
Participation Attachment Point Premium”) equal to FIFTY CENTS ($00.50) per each dollar of such incurred Ultimate Net Loss
up to an aggregate amount of Thirty Five Million Dollars ($35,000,000) of such Group B Participation Attachment Point Premium. Until
the Deductible is exhausted, such additional premium shall be notional and shall be credited to increase the amount remaining in
respect of the Deductible, without any payment to Reinsurer hereunder.

 

    51 

     

    

 

c.                  
In addition to the amounts set forth in clauses B.2.a and b, Reinsurer shall be liable for one hundred percent (100%) of Ultimate
Net Loss on the Group B Policies that is in excess of Two Hundred Twenty Million Dollars ($220,000,000.00) of such Ultimate Net Loss,
up to an aggregate amount of Thirty-Six Million Dollars ($36,000,000.00) of such Ultimate Net Loss; and

 

d.                  
Net Loss (and Inuring Reinsurance and all salvage, subrogation and other recoverables actually received by or offset for the account
of the Companies in respect of any of the foregoing) that would otherwise constitute Ultimate Net Loss on Group B Policies but that are
incurred (or that correspond to Net Loss incurred) in excess of the first net aggregate Two Hundred Fifty Six Million ($256,000,000.00)
of such Ultimate Net Loss ceded hereunder (the “Group B Sublimit”) shall be disregarded and shall not constitute Ultimate
Net Loss.

 

3.            Reinsurer’s maximum aggregate limit of liability for indemnification of paid Ultimate Net Loss shall in no event exceed One
Hundred Forty Three Million Five Hundred Thousand Dollars ($143,500,000.00) (the “Aggregate Limit”), being the sum
of the maximum amounts payable by Reinsurer under Section B of this Article 0 less the Deductible less the maximum amount of Group A Participation
Attachment Point Premium and Group B Participation Attachment Point Premium payable to or eligible for crediting to the account of the
Reinsurer under Section B of this Article 0. For the avoidance of doubt, the Aggregate Limit shall be rolled forward after the date hereof
pursuant to the Article entitled ROLL FORWARD OF ORIGINAL AMOUNTS.

 

C.           Application of Deductible

 

1.           Prior
to any cash settlement by the Reinsurer to cover its liability for paid Ultimate Net Losses, the Companies shall apply the Deductible
funds to the settlement of the Reinsurer’s liability for paid Ultimate Net Losses, which shall erode the amount remaining in respect
of the Group A Sublimit and the Group B Sublimit but shall not erode the amount remaining in respect of the Aggregate Limit.

 

2.           For
the avoidance of doubt, the Companies shall not apply the Deductible toward payment of its obligations under Section B.2.d. above. Furthermore,
the Companies shall not apply the Deductible toward any Ultimate Net Loss incurred (A) in respect of the Group A Policies, in excess
of the Group A Sublimit or (B) in respect of the Group B Policies, in excess of the Group B Sublimit, which liabilities shall not, in
either case, constitute Ultimate Net Loss.

 

ARTICLE 6

 

PREMIUM

 

A.       The
payment of Premium to Reinsurer hereunder includes the amount due in respect of the Brokerage and FET assessed on the amount of such Premium
transferred to the Retrocessionaire under the Retrocession Agreement.

 

    52 

     

    

 

B.       On
the date hereof, the Companies shall transfer the Premium due to Reinsurer under Section A above. Pursuant to the Retrocession Agreement,
on the date hereof, Reinsurer shall transfer the Premium (less the amount of Brokerage and FET imposed on the Premium transferred to the
Retrocessionaire thereunder, which Brokerage shall be paid by Reinsurer to Guy Carpenter and which FET shall be withheld and remitted
by Reinsurer in accordance with Article 20 of the Retrocession Agreement) directly to the Statutory Trust Accounts described in Article
0 below, as more particularly set forth in such Article 0.

 

ARTICLE 7

 

ROLL FORWARD OF ORIGINAL AMOUNTS

 

A.       The
Companies and the Reinsurer agree and acknowledge that certain sums set forth in this Reinsurance Agreement have been calculated as of
June 30, 2019 (the “Original Calculation Date”). Consequently, at the Effective Time there will have been changes to
Ceded Reserves, paid Losses and other figures since the Original Calculation Date. Accordingly, the Companies shall roll forward the following
amounts in accordance with the procedures set forth on Exhibit D to reflect, among other things, claims reported and paid claims
subject to this Reinsurance Agreement under the Policies covered hereunder from the Original Calculation Date to the last day of the month
ending prior to the date hereof (such date, the “Updated Calculation Date” and such amounts, the “Rolled Amounts”):

 

1.               
Ceded Reserves, calculated as of the Updated Calculation Date;

 

2.               
The Deductible;

 

3.               
The Aggregate Limit;

 

4.               
The Group A Participation Attachment Point, Group B Participation Attachment Point, Group A Sublimit, and Group B Sublimit; and

 

5.               
Required Collateral Amount, calculated as of the Updated Calculation Date.

 

B.

 

1.               
The Companies shall deliver to Reinsurer, within five (5) Business Days after the date hereof, a statement setting forth amounts
from the Original Calculation Date and the Rolled Amounts (the “Statement of Rolled Amounts”), together with the backup
documentation and information reasonably necessary to verify the Rolled Amounts. In addition, Companies shall provide any other information
reasonably requested by the Reinsurer in connection therewith.

 

2.                Reinsurer
shall deliver to Retrocessionaire the Statement of Rolled Amounts and documentation and information set forth in Section B.1 above
immediately after receipt thereof. The Rolled Amounts shall be agreed upon as between Reinsurer and Retrocessionaire in accordance
with the terms of the Retrocession Agreement. Within ten (10) Business Days of Retrocessionaire and Reinsurer’s agreement on
the Rolled Amounts (the “Agreement Deadline”), the Reinsurer shall advise the Companies, in writing, of its
agreement or disagreement with the calculation of the Rolled Amounts as delivered by Companies (“Reinsurer’s
Adjustment Notice”). If the Reinsurer agrees with such calculation or fails to notify the Companies of its agreement or
disagreement with such calculation by the Agreement Deadline, then the Statement of Rolled Amounts shall be deemed final and binding
on the parties unless a dispute is pending pursuant to Article 7 of the Retrocession Agreement, in which case, the Statement of
Rolled Amounts shall not be deemed final and binding until the resolution of such dispute thereunder and the implementation of any
final and binding changes to the Statement of Rolled Amounts (as defined thereunder) in the Statement of Rolled Amounts delivered
hereunder.

 

    53 

     

    

 

3.                  
If the Reinsurer has any good faith disagreement to the Companies’ calculation of the Rolled Amounts, then within ten (10)
Business Days following the delivery of the Reinsurer’s Adjustment Notice, the Parties shall use good faith efforts to mutually
agree to the Rolled Amounts. The Parties hereby acknowledge and agree that either party’s ability to object to Rolled Amounts in
accordance with this Section is preclusive of all other rights of such Party to challenge such Rolled Amounts.

 

4.                  
In the event the Parties are unable to reach agreement as to the Rolled Amounts within ten (10) Business Days following the delivery
of the Reinsurer’s Adjustment Notice, the Reinsurer and the Companies shall, mutually appoint an independent actuary or, in the
event that they fail to agree on the selection of an independent actuary, within ten (10) Business Days thereafter, each Party shall name
three independent actuary candidates of which the other Party shall decline two, and the selection of the independent actuary as between
the two remaining independent actuary candidates shall be made by the Party winning a coin toss. If either Party fails to provide such
three names within such ten (10) Business Day period, the other Party shall select the independent actuary. All independent actuary candidates
shall be disinterested in the outcome and shall be Fellows of the Society of Actuaries/Fellows of the Casualty Actuarial Society. The
cost of the independent actuary selected shall be split evenly between the Reinsurer and the Companies. The independent actuary’s
determination of the Rolled Amounts (the “Actuary’s Rolled Amounts”) shall be final and binding on the Parties.
The Parties shall instruct the independent actuary to limit its review to matters objected to by the Reinsurer and not resolved by written
agreement of the Parties.

 

5.                  
The independent actuary shall act as an expert, not as an arbitrator, and neither the determination of the independent actuary,
nor this Reinsurance Agreement to submit to the determination of the independent actuary, shall be subject to or governed by the Federal
Arbitration Act, 9 U.S.C. § 1 et seq., or any state arbitration law or regime.

 

6.                   The
earliest of the dates when (i) the Reinsurer timely notifies the Companies of its acceptance of the Rolled Amounts by delivery of
the Reinsurer’s Adjustment Notice, (ii) the Agreement Deadline (as defined hereunder and under the Retrocession Agreement)
passes and both (A) the Reinsurer fails to notify the Companies of its disagreement with the Rolled Amounts by timely delivery of
the Reinsurer’s Adjustment Notice and (B) the Retrocessionaire fails to notify the Reinsurer of its disagreement with the
Rolled Amounts (as defined under the Retrocession Agreement) by timely delivery of the Retrocessionaire’s Adjustment Notice
(as defined under the Retrocession Agreement), (iii) in the event that) the Reinsurer disagrees with the Rolled Amounts by timely
delivery of the Reinsurer’s Adjustment Notice, or the Retrocessionaire disagrees with the Rolled Amounts (as defined under the
Retrocession Agreement) by timely delivery of the Retrocessionaire’s Adjustment Notice (as defined under the Retrocession
Agreement), the date when, (A) in the case of the Reinsurer’s disagreement under this Article 0, the Parties mutually agree to
the Rolled Amounts or the Parties receive the Actuary’s Rolled Amounts, or, (B) in the case of the Retrocessionaire’s
disagreement under Article 7 of the Retrocession Agreement, the Parties (as defined under the Retrocession Agreement) mutually agree
to the Rolled Amounts (as defined under the Retrocession Agreement) or the Parties (as defined under the Retrocession Agreement)
receive the Actuary’s Rolled Amounts (as defined under the Retrocession Agreement) and such changes as may become final and
binding on the Statement of Rolled Amounts (as defined under the Retrocession Agreement) are made to the Statement of Rolled Amounts
hereunder to the extent applicable thereto, in each case, shall be known as the “Roll Forward Agreement Date.”
Any amounts due and owing between the Parties in respect of this Article 7 will be settled within five (5) Business Days of the Roll
Forward Agreement Date.

 

    54 

     

    

 

7.                  
In the event that an adjustment to Premium (as defined in the Retrocession Agreement) is finally determined pursuant to Article
7 of the Retrocession Agreement, the Companies shall transfer to the Reinsurer cash in an amount equal to the difference between the Premium
and the adjustment Premium calculated thereunder. At its election, the Companies shall be a party to any arbitration pursuant to Article
15 of the Retrocession Agreement concerning any adjustment to Premium pursuant to Article 7 thereof.

 

8.                  
No difference in the Rolled Amounts as agreed between the Retrocessionaire and Reinsurer pursuant to the terms of the Retrocession
Agreement and the Rolled Amounts as agreed between Reinsurer and Companies pursuant to the terms of this Reinsurance Agreement shall increase
the Retrocessionaire’s liability under the Retrocession Agreement in any way, and only the Rolled Amounts as agreed between Retrocessionaire
and Reinsurer shall be binding on Retrocessionaire.

 

ARTICLE 8

 

REINSURANCE WARRANTY

 

A.          The
Parties have agreed that a certain amount of reinsurance recoverables will be deemed collected under the Inuring Reinsurance (the “Deemed
Amounts”) and applied toward Ultimate Net Loss. The Companies hereby agrees that a certain amount of reinsurance recoverables in
excess of the Deemed Amounts will be further deemed recovered, up to [***] (the “Reinsurance Warranty Amount”) determined
in accordance with this Article 8. The Companies shall perform the calculation described below, measured from the Original Calculation
Date, once per calendar quarter occurring after the exhaustion of the Deductible and shall deliver its calculation to the Reinsurer within
ten (10) Business Days following the last day of each such quarter.

 

B.           To determine the amount of the Reinsurance Warranty Amount (if any) to be applied to Ultimate Net Loss, the following calculation
is conducted:

 

Step 1. Determine
the “Notional Amount,” which shall be, as of any date of determination, an amount equal to the sum of following:

 

		(i)	[***]; less

 

		(ii)	[***]; plus

 

		(iii)	Interest on the sum of (i) and (ii), charged at Two Percent (2%) per annum, calculated on an annual basis
from the date hereof to the date of determination.

 

    55 

     

    

 

Step 2. Compare the
Notional Amount to the “Minimum Notional Amount,” which shall be, as of any date of determination, an amount equal
to the lesser of:

 

		(i)	[***]; or

 

		(ii)	the greater of:

 

		(a)	[***]; and

 

		(b)	[***] less the Notional Amount calculated as of such date of determination.

 

If the Notional Amount determined pursuant
to Step 1 is less than the Minimum Notional Amount determined pursuant to Step 2, the calculation continues at Step 3. If, as of any date
of determination, the Notional Amount is greater than the Minimum Notional Amount, then the Deemed Amounts are satisfied and the Reinsurer
shall not be entitled to any further deemed amounts applied toward Ultimate Net Loss in respect of the Reinsurance Warranty Amount (and,
for the avoidance of doubt, the calculation shall not continue to Step 3).

 

Step 3. Calculate the “Additional Excess Recoverables”
as follows:

 

		(i)	for non-proportional reinsurance recoveries – non-proportional Inuring Reinsurance constituting
Ultimate Net Losses on Group B Policies minus [***]; plus

 

		(ii)	for proportional reinsurance recoveries – proportional Inuring Reinsurance constituting Ultimate
Net Losses on Group B Policies minus [***].

 

The amount of the Additional Excess Recoverables is applied
to reduce the amount of the Reinsurance Warranty Amount applicable to Ultimate Net Loss.

 

See Exhibit E for an example calculation of this reinsurance
warranty.

 

C.            For
purposes of the calculation detailed in this Article 0, recoveries on the following types of Inuring Reinsurance shall count towards
the satisfaction of the Additional Excess Recoverables: facultative (whether proportional or excess of loss), excess of loss, reinsurance
covering excess liability insurance, and other proportional reinsurance.

 

D.           Inuring Reinsurance shall not diminish and the Reinsurer’s liability hereunder shall not be increased by reason of any Company’s
inability to collect from any other reinsurers any amounts which are included in Inuring Reinsurance hereunder, whether such inability
to collect arises from (i) the insolvency of such other reinsurers, (ii) breach of the agreements with such other reinsurers, (iii) the
presence of any “net retained lines” or similar provisions in any agreements with such reinsurers which prevent a Company
from recovering such Inuring Reinsurance, (iv) the fact that agreements with such other reinsurers are no longer in force or became terminated,
(v) the fact that a Company failed to timely pay any reinsurance reinstatement premium, or (vi) any other reason whatsoever, regardless
of whether Reinsurer or any Company was aware of such reason prior to the execution of this Reinsurance Agreement.

 

    56 

     

    

 

Notwithstanding anything herein
to the contrary in this Reinsurance Agreement, the Companies may not consent to any commutation of any Inuring Reinsurance without the
consent of the Reinsurer. In the event that any commutation of any Inuring Reinsurance is made without the consent of the Reinsurer,
such Inuring Reinsurance subject to such commutations shall be deemed to continue in force and collectible in full as if such commutation
had not been made.

 

A.          Notwithstanding
anything to the contrary in this Reinsurance Agreement, the Companies shall keep in force all existing reinsurance arrangements inuring
to the benefit of this Reinsurance Agreement and shall timely pay all reinstatement or other premiums due under such existing reinsurance
arrangements. In the event that Inuring Reinsurance is diminished, terminated, or not extended or renewed due to failure to timely pay
reinstatement or other premiums due under its existing reinsurance arrangements, such Inuring Reinsurance shall be deemed to continue
in force and collectible in full as if such payment had been timely made.

 

ARTICLE 9

 

ADMINISTRATION OF SUBJECT BUSINESS

 

The Companies will be responsible for the handling
and administration of the Subject Business claims under this Reinsurance Agreement, including managing and supervising any TPAs or other
vendors retained to assist in the handling of such claims.

 

A.           The
Companies shall investigate, adjust, settle, defend or otherwise handle all such claims as follows:

 

1.               
The Companies may establish total Net Loss reserves up to [***] per Subject Business claim.

 

2.               
The Companies may settle any Subject Business claim up to [***] in total Net Loss per claim.

 

3.               
The Companies shall not settle or reserve any Subject Business claim in excess of its authority, as provided herein, without prior
written approval from the Reinsurer.

 

4.               
The Companies will prepare and submit to the Reinsurer a large loss report, with sufficient particulars to identify the facts of
the claim, in an agreed upon format, and provide all requested relevant documentation, for all reserve or settlement authority requests
on Subject Business claims in excess of the Companies’s authority hereunder.

 

5.               
Reinsurer shall provide a written response to all of the Companies’s authority requests as soon as practicable, but no later
than five (5) Business Days.

 

B.       The
Companies shall provide Reinsurer written notice of any demand, whether time-sensitive or otherwise, to settle any Subject Business claim
for available policy limits as soon as practicable, but no later than forty-eight (48) hours before the expiration of any time-sensitive
demand, and will provide Reinsurer all relevant information in the Companies’s possession to evaluate such demand. Reinsurer shall
provide a written response to the Companies with respect to any such time-sensitive policy-limit demands as soon as practicable, but no
later than the expiration of such demand.

 

C.       The
Companies shall retain and utilize vendors that the Companies deems reasonably necessary in the performance of its claims-handling
services under this agreement, including, but not limited to, attorneys, estimators, appraisers, investigators, independent
adjusters, experts or other advisors, collection companies, and any other claims-related vendors deemed necessary by the Companies
in the administration of any Subject Business claim. The costs of any such vendors shall constitute Allocated Loss Adjustment
Expense under this agreement.

 

    57 

     

    

 

D.          The Companies shall handle
all submitted claims in accordance with:

 

1.            the
care, skill, prudence, diligence and expertise that would be expected from experienced and qualified personnel performing such duties
in like circumstances;

 

2.            the established Claims Handling Guidelines, Claims Litigation Guidelines and Claims Legal Guidelines; and

 

3.            the
requirements of all applicable laws and regulations.

 

E.          The
Companies shall not terminate or change any TPA engaged to assist in the handling of the Subject Business claims as of the Effective Date,
without Reinsurer’s prior written approval, except that the Companies may amend, modify, change or expand the terms of its engagement
of any current TPA used by the Companies to administer the Subject Business claims.

 

F.          The
Companies shall cooperate, and ensure cooperation of any applicable TPAs, in all respects with Reinsurer, including, but not limited to,
providing to Reinsurer all relevant information about the Subject Business claims, as Reinsurer may reasonably request, and be reasonably
available to discuss individual Subject Business claims with Reinsurer.

 

G.         The
Companies will ensure that Reinsurer has electronic access to all applicable claims systems and documents for the Subject Business claims,
both during the duration of the Term of this Reinsurance Agreement, and for such period of time after the termination of the Term as may
be reasonably necessary for Reinsurer to fulfill any of its surviving obligations under the Agreement or to fulfill the requirements of
applicable Law, at no additional cost to Reinsurer.

 

H.         The
Companies will invite Reinsurer to participate in all large loss conferences with respect to Subject Business claims.

 

I.           The
Companies will be available to meet monthly or as otherwise deemed reasonably necessary by Reinsurer to discuss any issues related to
the handling of Subject Business claims.

 

J.          Reinsurer
and the Companies will each designate a single point of contact to address any issues that may arise regarding the handling of an individual
Subject Business claim, or to generally address the administration of Subject Business claims.

 

K.          The
Companies, to the extent commercially reasonable, will pursue their rights to salvage or subrogation relating to any Net Loss. Should
any Company choose not to pursue a subrogation or salvage that the Reinsurer would like to pursue, the Reinsurer is hereby authorized
and empowered to instigate such action in the name of such Company, and from any amount recovered by the Reinsurer there shall be first
deducted the Reinsurer’s expenses incurred in effecting the recoveries. The Companies hereby agree to cooperate with the Reinsurer
to enforce its rights to salvage or subrogation and to cooperate with the Reinsurer in the prosecution of all claims arising out of such
rights, to the extent commercially reasonable. The Companies agree to furnish the Reinsurer, on request, any and all legal instruments
necessary to implement the foregoing assignment.

 

    58 

     

    

 

ARTICLE 10

 

ACCOUNTING FOR RESERVES

 

A.           In calculating and maintaining Ceded Reserves, the Companies shall comply with (i) applicable statutory accounting principles and
guidance and generally accepted actuarial standards and principles applied in a manner consistent with past practice used for calculating
and maintaining such Ceded Reserves, and (ii) the requirements of any applicable Law, including, the insurance laws and regulations of
the State of Texas, and shall otherwise be consistent with Companies’ standard procedures for calculating and maintaining Reserves.

 

B.            Neither
Party has made, hereby makes or shall make any representation or warranty to the other Party as to (i) the proper accounting or tax treatment
by such other Party of the transaction provided for in this Reinsurance Agreement or (ii) the proper future accounting or tax treatment
of the transaction provided for in this Reinsurance Agreement. Further, each Party acknowledges and agrees that, in making its independent
determination that the transaction provided for in the Reinsurance Agreement is properly accounted for as reinsurance for SAP, GAAP and
federal income tax purposes, it did not rely, in any respect, upon any representation or determination made by the other Party.

 

ARTICLE 11

 

COLLATERAL; STATUTORY TRUST ACCOUNTS; CREDIT
FOR REINSURANCE

 

A.           Collateral; Statutory Trusts. The Parties intend that the Statutory Trust Accounts will contain the amount of collateral
required to secure the amount of Reinsurer’s obligations to each Company individually in respect of Ultimate Net Loss which is retroceded
to the Retrocessionaire.

 

B.            Credit
for Reinsurance. If, at any time during the Term of this Reinsurance Agreement, any Company individually does not qualify for full
statutory accounting credit in respect of the Reinsurance Agreement for admitted reinsurance by regulatory authorities having jurisdiction
over such Company by reason of its Statutory Trust Account not complying with applicable insurance laws or regulations such that a financial
or accounting penalty to such Company would result on any statutory statement or report such Company is required to make or file with
insurance regulatory authorities (or a court of law in the event of insolvency), the Reinsurer shall secure the Reinsurer’s share
(subject to the limitations reflected in, Article 5 hereof) of obligations under the Reinsurance Agreement for which such full statutory
credit is not granted by those authorities in a manner, form, and amount acceptable to such Company and to all applicable insurance regulatory
Governmental Authorities. The Company shall cooperate with the Reinsurer to secure such credit for reinsurance as needed.

 

ARTICLE 12

 

REPORTS AND SETTLEMENTS

 

A.           Reports.
After receiving data from the TPA, the Companies shall prepare and deliver the electronic reports listed below (the “Reports”)
with respect to the entirety of the Subject Business. Within two (2) Business Days following the accounting close of each month (such
close occurring on the 15th of the subsequent month), the Companies shall deliver a Report in a format to be mutually agreed
upon by the Parties which contains such accounting and journal entries and details (i) as may be necessary and customary to enable the
Reinsurer to determine the amounts owed hereunder from the Reinsurer, as the case may be, and (ii) as may be required to permit the Reinsurer
to prepare, make and file necessary or required financial and statistical reports and financial statements or otherwise comply with applicable
Law.

 

    59 

     

    

 

  

Such Report shall, without
limitation, include the amount of the following, on a monthly and cumulative basis, as at the close of the applicable month (such close
as defined above):

 

1.                  
Amounts paid in respect of Ultimate Net Loss;

 

2.                  
Outstanding case and IBNR Reserves;

 

3.                  
Ceded Reserves;

 

4.                  
a statement of any amount(s) payable by the Reinsurer, including an itemization of all of the payments that are being billed to the
Reinsurer for the applicable monthly accounting period;

 

5.                  
Status of Reinsurance Warranty, including a listing of applicable Inuring Reinsurance;

 

6.                  
Amounts paid in erosion of the remaining amount of the Deductible;

 

7.                  
Amounts paid in erosion of the remaining amount of the Aggregate Limit; and

 

8.                  
any other information in connection with settlements hereunder reasonably requested by Reinsurer.

 

B.             The Reports outlined in this Article shall continue until the conclusion of the Term of this Reinsurance Agreement.

 

C.                 
Settlements. The Parties shall conduct monthly settlements (other than with respect to any amounts satisfied intra-month through
withdrawal by the Companies from the Claims Payments Account) based upon the reporting provided in Section A above evidencing the
amount due, subject to Section D below. Any payment, transfer or crediting of amounts required under this Section shall be made
within five (5) Business Days following the date of the delivery of the applicable Report (any such date, the “Settlement
Date”). For the avoidance of doubt, in no event shall an obligation of Reinsurer to make a payment pursuant to this Article 12,
be postponed or delayed to a date later than the Settlement Date as a result of any pending or threatened dispute pursuant to this Agreement,
except for amounts due under this Article that are disputed in good faith by Reinsurer including in respect of any amount due hereunder.

 

D.            
Claims Payments Account.

 

1.                  
The Companies shall establish and maintain a demand deposit account for purposes of facilitating interim settlements of amounts due under
this Reinsurance Agreement in respect of Ultimate Net Loss indemnifiable by the Reinsurer (the “Claims Payments Account”).

 

2.                  
On the first Business Day of each monthly accounting period following the exhaustion of the Deductible, the Retrocessionaire shall transfer
to the Claims Payments Account cash in an amount sufficient to bring the balance of the Claims Payments Account to an amount equal to
the trailing two (2) month average of payments of Ultimate Net Loss (as defined under the Retrocession Agreement) (the “Required
Funding Amount”). If at any time during a monthly accounting period the funds in a Claims Payments Account are, in the Companies’s
reasonable estimate, insufficient to pay all of the Ultimate Net Loss payable in such monthly accounting period, the Companies shall provide
a statement (a “Claims Estimate”) setting forth in reasonable detail a description of the additional proposed payments
of Ultimate Net Loss anticipated to be required during the remainder of such monthly accounting period and the amount by which the then
current balance in the Claims Payments Account falls short of the aggregate amount set forth in the Claims Estimate.

 

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ARTICLE 13

 

COMMUTATION

 

A.                
This Reinsurance Agreement shall be commuted effective at any calendar quarter end, subject to any required regulatory approvals, if applicable,
(i) upon commutation of the Retrocession Agreement or (ii) with the mutual agreement of the Companies and the Reinsurer.

 

B.                 
At commutation, the Reinsurer shall pay to the Companies the present value of any and all Ultimate Net Loss liability outstanding hereunder,
as mutually agreed by the Companies and Reinsurer.

 

C.                 
Upon payment of the commutation amount, all payable Ultimate Net Losses are deemed paid, both Parties shall be released of further liability
under the terms and conditions of this Reinsurance Agreement and this Reinsurance Agreement shall be deemed commuted and terminated.

 

D.                
It is agreed that on the day of commutation, the Companies shall release any and all letters of credit, trust accounts (including the
Statutory Trust Accounts) or any other collateral posted by the Reinsurer, as applicable, under this Reinsurance Agreement.

 

ARTICLE 14

 

ACCESS TO RECORDS

 

A.                
All records remain the property of the Companies.

 

B.                 
The Reinsurer or its designated representatives shall have the right to inspect (and make copies) at all reasonable times and upon reasonable
prior notice to Companies, during the Term of this Reinsurance Agreement, or Retrocession Agreement, as applicable, and for any reasonable
purpose thereafter, all proprietary and non-privileged books, records and papers of the Companies directly related to any reinsurance
hereunder, or the subject matter hereof, including, but not limited to administrative records, claim records, Policy files, and related
documents and information, and Reinsurer shall have the right to make photocopies thereof at its expense. All such books, records, and
papers shall be kept available by Reinsurer and its departmental or branch offices for a period of not less than five (5) years after
the termination date of this Reinsurance Agreement. Should the Reinsurer assume administration of claims for any of the Subject Business,
the Companies or its designated representatives shall have the right to inspect (and make copies) at all reasonable times and upon prior
reasonable notice to Reinsurer during the Term of this Reinsurance Agreement, and thereafter, all proprietary and non-privileged books,
records and papers of the Reinsurer directly related to the Reinsurer’s administration of claims, and the Companies shall have the
right to make photocopies thereof at its expense. All such books, records, and papers shall be kept available by Reinsurer and its departmental
or branch offices for a period of not less than five (5) years after the termination date of this Reinsurance Agreement.

 

C.                 
For the purposes of this Article, “non-privileged” refers to books, records and papers that are not subject to the Attorney-client
privilege and Attorney-work product doctrine. “Attorney-client privilege” and “Attorney-work product” shall have
the meanings ascribed to each by statute and/or the court of final adjudication in the jurisdiction whose laws govern the substantive
law of a claim arising under a Policy reinsured under this Reinsurance Agreement.

 

D.                
Notwithstanding anything to the contrary in this Reinsurance Agreement, for any claim or Loss under a Policy reinsured under this Reinsurance
Agreement, should either Party claim, pursuant to the Common Interest Doctrine (“Doctrine”), that it has the right
to examine any document that is alleged to be subject to the Attorney-client privilege or the Attorney-work product privilege, upon the
claiming Party providing to the other Party substantiation of any law which reasonably supports the basis for the conclusion that the
Doctrine applies and the Doctrine will be upheld as applying between the Parties as against third parties pursuant to the substantive
law(s) which govern the claim or Loss, the claiming Party shall be given access to such document.

 

    61

     

    

 

E.                 
Notwithstanding the foregoing, the Parties shall permit and not object to the other Party’s access to privileged documents in connection
with any underlying claim reinsured hereunder following final settlement or final adjudication of the case or cases involving such claim;
provided that the Party may defer release of such privileged documents if there are subrogation, contribution, or other third party
actions with respect to that claim or case, which might jeopardize the Party’s defense by release of such privileged documents.
In the event a Party shall seek to defer release of such privileged documents, it will, in consultation with the other Party, take other
steps as reasonably necessary to provide the requesting Party with the information it reasonably requires to evaluate exposure, establish
Reserves or indemnify without causing a loss of such privileges. The Parties shall in no event have access to privileged documents relating
to any dispute between the Parties. Furthermore, in the event that a Party demonstrates a need for information contained in privileged
documents prior to the resolution of the underlying claim, the other Party agrees it will endeavor to undertake steps as reasonably necessary
to provide the requesting Party with the information it reasonably requires to indemnify the other Party without causing a loss of such
privilege.

 

F.                 
The provisions of this Article 14 shall survive the termination of the Reinsurance Agreement.

 

ARTICLE 15

 

ARBITRATION

 

A.                
Any and all disputes between the Companies and the Reinsurer arising out of, relating to, or concerning this Reinsurance Agreement, whether
sounding in contract or tort and whether arising during or after termination of this Reinsurance Agreement, shall be submitted to the
decision of a board of arbitration composed of two (2) arbitrators and an umpire (“Board”) meeting at a site in
the city in which the principal headquarters of the Companies are located. The arbitration shall be conducted and shall proceed as set
forth in the ARIAS-US Rules for the Resolution of U.S. Insurance and Reinsurance Disputes and the procedures below.

 

B.                 
A notice requesting arbitration, or any other notice made in connection therewith, shall be in writing and be sent certified or registered
mail, return receipt requested to the affected Party. The notice requesting arbitration shall state in particular all issues to be resolved,
shall appoint the arbitrator selected by the claimant and shall set a tentative date for the hearing, which date shall be no sooner than
ninety (90) days and no later than one hundred fifty (150) days from the date that the notice requesting arbitration is mailed. Within
thirty (30) days of receipt of claimant’s notice, the respondent shall notify claimant of any additional issues to be resolved in
the arbitration and of the name of its appointed arbitrator.

 

C.                 
The members of the Board shall be impartial, disinterested and not currently representing any Party participating in the
arbitration, and shall be current or former senior officers of insurance or reinsurance concerns, experienced in the line(s) of
business that are the subject of this Reinsurance Agreement. The Companies and the Reinsurer as aforesaid shall each appoint an
arbitrator and the two (2) arbitrators shall choose an umpire before instituting the hearing. If the respondent fails to
appoint its arbitrator within thirty (30) days after having received claimant’s written request for arbitration, the claimant
is authorized to and shall appoint the second arbitrator. If the two (2) arbitrators fail to agree upon the appointment of an
umpire within thirty (30) days after notification of the appointment of the second arbitrator, within ten (10) days thereof,
the two (2) arbitrators shall request ARIAS-U.S. (“ARIAS”) to apply its procedures to appoint an umpire for
the arbitration with the qualifications set forth above in this Article. If the use of ARIAS procedures fails to name an umpire,
either Party may apply to a court of competent jurisdiction to appoint an umpire with the above required qualifications. The umpire
shall promptly notify in writing all Parties to the arbitration of his selection and of the scheduled date for the hearing. Upon
resignation or death of any member of the Board, a replacement shall be appointed in accordance with the same procedures pursuant to
which the resigning or deceased member was appointed pursuant to this Article 15.

 

    62

     

    

 

D.                
The claimant and respondent shall each submit initial briefs to the Board outlining the facts, the issues in dispute and the basis, authority,
and reasons for their respective positions within thirty (30) days of the date of notice of appointment of the umpire. The claimant and
the respondent may submit a reply brief to the Board within ten (10) days after filing of the initial brief(s). Initial and reply
briefs may be amended by the submitting Party at any time, but not later than ten (10) days prior to the date of commencement of
the arbitration hearing. Reasonable responses shall be allowed at the arbitration hearing to new material contained in any amendments
filed to the briefs but not previously responded to.

 

E.                 
The Board shall consider this Reinsurance Agreement as an honorable engagement and shall make a decision and award with regard to the
terms expressed in this Reinsurance Agreement, the original intentions of the Parties to the extent reasonably ascertainable, and the
custom and usage of the insurance and reinsurance business that is the subject of this Reinsurance Agreement. Notwithstanding any other
provision of this Reinsurance Agreement, the Board shall have the right and obligation to consider underwriting and submission-related
documents in any dispute between the Parties.

 

F.                 
The Board shall be relieved of all judicial formalities and the formal rules of evidence, and the decision and award shall be based
upon a hearing in which evidence that is relevant shall be allowed. Cross examination and rebuttal shall be allowed. The Board may request
a post-hearing brief to be submitted within twenty (20) days of the close of the hearing.

 

G.                
The Board shall render its decision and award in writing within thirty (30) days following the close of the hearing or the submission
of post-hearing briefs, whichever is later, unless the Parties consent to an extension. Every decision by the Board shall be by a majority
of the members of the Board and each decision and award by the majority of the members of the Board shall be final and binding upon all
Parties to the proceeding. Such decision shall be a condition precedent to any right of legal action arising out of the arbitrated dispute
which either Party may have against the other. However, the Board is not authorized to award punitive, exemplary or enhanced compensatory
damages.

 

H.                
The Board shall award interest on the award at a rate not in excess of Two Percent (2%) per annum, calculated from the date the Board
determines that any amounts due the prevailing Party should have been paid to the prevailing Party.

 

I.                   
Either Party may apply to a court of competent jurisdiction for an order confirming any decision and the award; a judgment of that Court
shall thereupon be entered on any decision or award.

 

J.                   
Each Party shall bear the expenses and costs of its own attorney and of the one arbitrator appointed by or for it in connection with all
phases of the arbitration proceeding through any judicial proceedings related to the arbitration and shall jointly and equally bear with
the other Party the expense of any stenographer requested, and of the umpire. The remaining costs of the pre-confirmation arbitration
proceedings shall be finally allocated by the Board.

 

K.                
Subject to customary and recognized legal rules of privilege, each Party participating in the arbitration shall have the
obligation to produce those documents, and as witnesses at the arbitration those of its employees, and those of its affiliates, as
any other participating Party reasonably requests, providing always that the same witnesses and documents be reasonably obtainable
and relevant to the issues in the arbitration and not be unduly burdensome or excessive in the opinion of the Board.

 

    63

     

    

 

L.                 
The Parties may mutually agree as to pre-hearing discovery prior to the arbitration hearing and in the absence of agreement, upon the
request of any Party, pre-hearing discovery may be conducted as the Board shall determine in its sole discretion to be in the interest
of fairness, full disclosure, and in furtherance of a prompt hearing, decision and award by the Board.

 

M.               
The Board shall be the final judge of the composition of the Board, the procedures of the Board, the conduct of the arbitration, the rules of
evidence, the rules of privilege, discovery and production and the excessiveness and relevancy of any witnesses and documents upon
the petition of any participating Party. To the extent permitted by law, the Board shall have the authority to issue subpoenas and other
orders to enforce its decisions. The Board shall also have the authority to issue interim decisions or awards in the interest of fairness,
full disclosure, and a prompt and orderly hearing and decision and award by the Board.

 

N.                
Nothing in this Article shall preclude any of the Parties engaged in arbitration from settling the dispute and withdrawing from an
arbitration established to resolve that dispute.

 

O.                
The provisions of this Article will survive the termination of this Reinsurance Agreement.

 

P.                 
If a dispute arising under this Reinsurance Agreement is related to a dispute arising out of the Retrocession Agreement (together, the
 “Reinsurance Transaction Agreements”) all such disputes may be brought in a single arbitration, in each case, to the
extent permitted under the respective applicable Reinsurance Transaction Agreement. If one or more arbitrations are already pending with
respect to a dispute under this Reinsurance Agreement or a dispute under the other Reinsurance Transaction Agreement, then any Party may
request that any arbitration or any new related dispute be consolidated into any such prior arbitration. Such new dispute or arbitration
shall be so consolidated, provided that the Board for the prior arbitration determines that: (i) the new dispute or arbitration presents
significant issues of law or fact common with those in the pending arbitration; (ii) no party would be unduly prejudiced; and (iii) consolidation
under these circumstances would not result in undue delay for the prior arbitration. Any such order of consolidation issued by the Board
shall be final and binding upon the Parties. The Parties waive any right they have to appeal or to seek interpretation, revision or annulment
of such order of consolidation, including in any court. The Board for the arbitration into which a new dispute is consolidated shall serve
as the Board for the consolidated arbitration.

 

ARTICLE 16

 

CONFIDENTIALITY

 

A.       The
information, data, statements, representations and other materials provided by the Companies and its Representatives or the
Reinsurer and its Representatives to the other arising from consideration and participation in this Reinsurance Agreement whether
contained in the reinsurance submission, this Reinsurance Agreement, or in materials or discussions arising from or related to this
Reinsurance Agreement, constitutes confidential or proprietary information (collectively, the “Confidential
Information”) unless (i) it is expressly indicated otherwise by the Party disclosing such information
(“Disclosing Party”) in writing from time to time to the other Party (the “Receiving Party”),
or (ii) it is publicly available. This Confidential Information is intended for the sole use of the Parties to this Reinsurance
Agreement (and their affiliates involved in management or operation of the Subject Business covered hereunder, the intermediaries
involved in the placement of this Reinsurance Agreement, and their respective auditors, third-party service providers, professional
advisors, and legal counsel, collectively termed the “Representatives”) as may be necessary in analyzing and/or
accepting a participation in and/or executing their respective responsibilities under or related to this Reinsurance Agreement. The
Receiving Party shall protect and safeguard the confidentiality of all Confidential Information with at least the same degree of
care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable
degree of care.

 

    64

     

    

 

B.                 
Disclosing or using Confidential Information relating to this Reinsurance Agreement, without the prior written consent of the Disclosing
Party, for any purpose beyond (i) the scope of this Reinsurance Agreement, (ii) the reasonable extent necessary to perform or
enforce its rights and responsibilities provided for under this Reinsurance Agreement or any Transaction Agreement, (iii) the reasonable
extent necessary to administer, report to and effect recoveries under this Reinsurance Agreement, (iv) the reporting to regulatory
or other Governmental Authorities as may be legally required, (v) providing the Confidential Information to Representatives with
a need to know such Confidential Information, who are legally obligated by either written agreement or otherwise to maintain the confidentiality
of the Confidential Information, is expressly forbidden, or (vi) as may be required by applicable Law or regulatory requirement.
Copying, duplicating, disclosing, or using Confidential Information for any purpose beyond these purposes is forbidden without the prior
written consent of the Disclosing Party.

 

C.                 
Should a Receiving Party receive a third party demand pursuant to subpoena, summons, or court or governmental order or request, to disclose
Confidential Information that has been provided by the Disclosing Party, to the extent allowed by law, the Receiving Party shall provide
the Disclosing Party with written notice of any subpoena, summons, or court or governmental order or request, at least ten (10) days
prior to such release or disclosure. Unless the Disclosing Party has given its prior permission to release or disclose the Confidential
Information, the Receiving Party shall not comply with the subpoena prior to the actual date required by the subpoena. If a protective
order or appropriate remedy is not obtained (at the sole expense of Disclosing Party), the Receiving Party may disclose only that portion
of the Confidential Information that it is legally obligated to disclose. However, notwithstanding anything to the contrary in this Reinsurance
Agreement, in no event, to the extent permitted by law, shall this Article require the Receiving Party not to comply with the subpoena,
summons, or court or governmental order.

 

ARTICLE 17

 

CURRENCY

 

A.                
Whenever the word “dollars” or the “$” sign appears in this Reinsurance Agreement, they shall be construed
to mean United States Dollars and all transactions under this Reinsurance Agreement shall be in United States Dollars.

 

B.                 
Amounts paid or received by the Companies in any other currency shall be converted to United States Dollars at the rate of exchange on
the date such transaction is entered on the books of the Companies.

 

ARTICLE 18

 

DELAYS, ERRORS AND OMISSIONS

 

Inadvertent delays, errors
or omissions made in connection with this Reinsurance Agreement or any transaction hereunder (including the reporting of claims) shall
not relieve either Party hereto from any liability which would have attached had such delay, error or omission not occurred, provided
always that such delay, error or omission shall be rectified as soon as possible after discovery.

 

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ARTICLE 19

 

EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS
OF POLICY LIMITS

 

A.                
This Reinsurance Agreement shall provide reinsurance for the Ultimate Net Loss of the Policies comprising the Subject Business, which
includes, subject to the terms and conditions of this Article 0, any Extra Contractual Obligations and/or Loss Excess of Policy
Limits.

 

B.                 
 “Extra Contractual Obligations” means all liabilities arising out of or relating to Subject Business not covered under
any other provision of this Reinsurance Agreement, including compensatory, consequential, punitive, or exemplary damages together with
any legal costs and expenses incurred in connection therewith, paid (without duplication) as damages or in settlement by any Company or
any affiliate arising from an allegation or claim of such Company’s insured, such Company’s insured’s assignee, or other
third party, which alleges negligence, gross negligence, bad faith or other tortious conduct on the part of such Company or any affiliate,
or any designee of such Company (including any TPA) to the extent indemnifiable by the Company or any affiliate of the Company in the
handling, adjustment, rejection, defense or settlement of a claim under a Policy.

 

C.                 
 “Loss Excess of Policy Limits” means any costs, expenses or other amounts (other than Allocated Loss Adjustment Expenses)
incurred in connection with a Loss paid as damages or in settlement (or otherwise) in excess of the limits of a specific Policy, but otherwise
within the coverage terms of such Policy, including as arising from an allegation or claim of a Company’s insured, a Company’s
insured’s assignee, or other third party, which alleges negligence, gross negligence, bad faith or other tortious conduct in the
handling of a claim under a Policy, in rejecting a settlement within the Policy limits, in discharging a duty to defend or prepare the
defense in the trial of an action against the insured, or in discharging its duty to prepare or prosecute an appeal consequent upon such
an action. For the avoidance of doubt, the decision by a Company to settle a claim for an amount within the coverage of the Policy but
not within the Policy limit when such Company has reasonable basis to believe that it may have liability to the insured or assignee or
other third party on the claim will be deemed a Loss Excess of Policy Limits.

 

D.                
Any Reserves ceded or assumed or amounts paid or settled by a Party (or a TPA on behalf of such Party) in respect of Extra Contractual
Obligations or Loss Excess of Policy Limits without the other Party’s prior written approval such approval not to be unreasonably
withheld, conditioned or delayed, shall not constitute Ultimate Net Loss or paid Ultimate Net Loss (as applicable), unless the other Party
waives in writing the foregoing exclusion with respect to a particular amount or amounts. No such waiver by either Party shall constitute
any future waiver of this Section with respect to other amounts.

 

E.                 
An Extra Contractual Obligation or a Loss Excess of Policy Limits shall be deemed to have occurred on the same date as the Loss covered
under the Policy and shall be considered part of the original Loss (subject to other terms of this Reinsurance Agreement).

 

F.                 
Neither an Extra Contractual Obligation nor a Loss Excess of Policy Limits shall include any Losses, liabilities, penalties, costs or
other expenses arising out of any adjudicated fraudulent or criminal act by any officer or director of a Company acting individually or
collectively or in collusion with any other organization or party involved in the presentation, defense, or settlement of any claim covered
under this Reinsurance Agreement.

 

G.                
Neither an Extra Contractual Obligation nor a Loss Excess of Policy Limits shall include any Losses, liabilities, penalties, costs
or other expenses arising out of any adjudicated fraudulent or criminal act by any officer or director of the Reinsurer acting
individually or collectively or in collusion with any other organization or party involved in the presentation, defense, or
settlement of any claim covered under this Reinsurance Agreement, which all such Losses, Liabilities, penalties, costs or other
expenses shall be the responsibility of Reinsurer and shall not be considered Ultimate Net Loss.

 

H.       The
Companies shall be indemnified in accordance with this Article to the fullest extent permitted by applicable Law.

 

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ARTICLE 20

 

[RESERVED]

 

ARTICLE 21

 

TAX INFORMATION REPORTING AND WITHHOLDING

 

A.                
Prior to the Effective Date, the Companies shall provide the Reinsurer with the Companies’ IRS Form W-9, and the Reinsurer
shall provide the Companies with the Reinsurer’s IRS Form W-9. In the event the IRS Form W-9 initially provided may no
longer be relied upon, the Reinsurer or Companies, as applicable, shall upon the other Party’s reasonable request promptly provide
to such other Party an updated form. To the extent the Reinsurer is subject to the deduction and withholding of Premium payable hereunder
under applicable Law, including, but not limited to, under the Foreign Account Tax Compliance Act (Sections 1471-1474 of the Internal
Revenue Code), the Reinsurer agrees to allow such deduction and withholding from the Premium payable under this Reinsurance Agreement,
and the Companies shall have no obligation to gross-up the Reinsurer for any such withheld amounts.

 

B.                 
In the event of any return of Premium becoming due hereunder, the Companies shall use commercially reasonable efforts to assist the Reinsurer
in obtaining any refund permitted by applicable Law. In that event, the Reinsurer agrees to provide the Companies or its agent with all
information, assistance and cooperation which the Companies or its agent reasonably requests in or-der to assist the Retrocessionaire
in obtaining a refund. The Reinsurer further agrees that it will do nothing to prejudice the Companies’ or its agent’s position
or their potential or actual rights of recovery.

 

ARTICLE 22

 

INSOLVENCY

 

A.                
In the event of insolvency and the appointment of a conservator, liquidator, receiver, or statutory successor of a Company, any risk or
obligation assumed by the Reinsurer shall be payable to the conservator, liquidator, receiver, or statutory successor on the basis of
claims allowed against the insolvent Company by any court of competent jurisdiction or by any conservator, liquidator, receiver, or statutory
successor of the Company having authority to allow such claims, without diminution because of that insolvency, or because the conservator,
liquidator, receiver, or statutory successor has failed to pay all or a portion of any claims.

 

B.                 
Payments by the Reinsurer as above set forth shall be made directly to the Company or to its conservator, liquidator, receiver, or statutory
successor, except where the contract of insurance or reinsurance specifically provides another payee of such reinsurance or except as
provided by applicable Law and regulation in the event of the insolvency of the Company.

 

C.                 
In the event of the insolvency of a Company, the liquidator, receiver, conservator or statutory successor of the Company shall give
written notice to the Reinsurer of the pendency of a claim against the insolvent Company on the Policy or Policies reinsured within
a reasonable time after such claim is filed in the insolvency proceeding, and, during the pendency of such claim, Reinsurer may
investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or
defenses which it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The expense
thus incurred by the Reinsurer shall be chargeable subject to court approval against the insolvent Company as part of the expense of
liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense
undertaken by the Reinsurer.

 

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ARTICLE 23

 

OFFSET

 

The Companies and the Reinsurer
shall have the right to offset any balance or amounts due from one Party to the other under the terms of this Reinsurance Agreement. In
addition, the Reinsurer shall specifically have the right of offset against any balance or amounts due to Reinsurer or the Companies in
the event that Collateral Funds in the Statutory Trust Accounts are used or withdrawn in violation of the terms and conditions of the
Statutory Trust Agreements or this Reinsurance Agreement. In the event of insolvency of a Party hereto, offset shall be as permitted by
applicable law.

 

ARTICLE 24

 

PRIVACY & PROTECTION OF DATA

 

A.                
The Companies and the Reinsurer represent that they are aware of and in compliance with their responsibilities and obligations under applicable
Laws and regulations pertaining to Non-Public Personal Information (“NPPI”) and Protected Health Information (“PHI”).
For the purpose of this Reinsurance Agreement, NPPI and PHI shall mean (i) financial or health information that identifies an individual,
including claimants under Policies reinsured under this Reinsurance Agreement, and which information is not otherwise available to the
public, and (ii) any other information which would constitute personal information or personal health information under applicable
Laws or regulations relating to the collection, retention, protection and use of such information, including the Gramm-Leach-Bliley Act
of 1999, the Health Insurance Portability and Accountability Act of 1996 and the Health Information Technology for Economic and Clinical
Health Act, and all amendments to and further regulations thereto (collectively, “Privacy Laws”). Data conveyed to
the Reinsurer may include NPPI and/or PHI that is protected under applicable Privacy Laws and shall be used only in the performance of
rights, obligations and duties in connection with this Reinsurance Agreement.

 

B.                 
The Reinsurer shall maintain appropriate safeguards to protect any NPPI and PHI received hereunder from accidental loss or unauthorized
access, use or disclosure, which such safeguards shall, at a minimum, comply with all applicable Privacy Laws. The Reinsurer shall immediately
report to the Companies any known or reasonably suspected accidental loss or unauthorized access, use or disclosure of any NPPI or PHI
held by or on behalf of the Reinsurer hereunder.

 

C.                 
Without limiting the foregoing, the Reinsurer shall collect and use NPPI and PHI solely as permitted by, and shall not otherwise violate,
any applicable privacy policy(ies) of the Companies or with which the Companies must comply which have been provided to the Reinsurer
in writing, or which are otherwise known to the Reinsurer.

 

D.                
Upon receipt of any request from the Companies for the deletion of any NPPI or PHI, the Reinsurer shall promptly comply with such request
and certify such deletion to the Companies. The Reinsurer shall convey to the Companies any request for the deletion of NPPI or PHI received
from any purported data subject.

 

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ARTICLE 25

 

SANCTIONS

 

Neither the Companies nor
the Reinsurer shall be liable for premium or Loss under this Reinsurance Agreement if it would result in a violation of any mandatory
sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European
Union, United Kingdom or United States of America that are applicable to either Party.

 

ARTICLE 26

 

SERVICE OF SUIT

 

A.                
This Article will not be read to conflict with or override the obligations of the Parties to arbitrate their disputes as provided
for in the Article entitled ARBITRATION. This Article is intended as an aid to compel required arbitration or
enforce an arbitration or arbitral award, not as an alternative to the Article entitled ARBITRATION for resolving disputes
arising out of this Reinsurance Agreement.

 

B.                 
In the event of any dispute, the Reinsurer, at the request of the Companies, shall submit to the jurisdiction of a court of competent
jurisdiction within the State of Texas. The Reinsurer agrees to comply with all requirements necessary to give such court jurisdiction
over the Reinsurer. The Reinsurer further agrees to abide by the final decision of such court or an appellate court to which such court’s
decision is appealed. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s
rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District
Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States.

 

C.                 
Service of process in any such suit against the Reinsurer may be made upon its duly authorized agent for service of process, Marsh Management
Services Cayman Ltd., P.O. Box 1051, Grand Cayman KY1-1102, CAYMAN ISLANDS (the “Reinsurer’s Agent for Process”),
and in any suit instituted, the Reinsurer shall abide by the final decision of such court or of any appellate court in the event of an
appeal.

 

D.                
The Reinsurer’s Agent for Process is authorized and directed to accept service of process on behalf of the Reinsurer in any such
suit.

 

E.                 
Further, as required by and pursuant to any statute of any state, territory or district of the United States which makes provision therefore,
the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose
in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in
any action, suit or proceeding instituted by or on behalf of the Companies arising out of this Reinsurance Agreement, and hereby designates
the Reinsurer’s Agent for Process as the person to whom the said officer is authorized to mail such process or a true copy thereof.

 

ARTICLE 27

 

REGULATORY MATTERS

 

If Reinsurer or any Company
receives notice of, or otherwise becomes aware of any inquiry, investigation, examination, audit, enforcement action or proceeding by
any Governmental Authority relating to this Reinsurance Agreement, Reinsurer or such Company, as applicable, shall promptly notify the
other Party thereof, whereupon the Parties shall cooperate to resolve such matter.

 

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ARTICLE 28

 

MISCELLANEOUS

 

A.          Interpretation.

 

1.       As
used in this Reinsurance Agreement, references to the following terms have the meanings indicated:

 

a.                  
to the Preamble or to the Recitals, Sections, Articles, Exhibits or Schedules are to the Preamble or a Recital, Section or Article of,
or an Exhibit or Schedule to, this Reinsurance Agreement unless otherwise clearly indicated to the contrary;

 

b.                  
to any contract or agreement (including this Reinsurance Agreement) are to the contract or agreement as amended, modified, supplemented
or replaced from time to time;

 

c.                  
to any law are to such law as amended, modified, supplemented or replaced from time to time and all rules and regulations promulgated
thereunder, and to any section of any law include any successor to such section;

 

d.                  
to any Governmental Authority include any successor to the Governmental Authority and to any affiliate include any successor to the affiliate;

 

e.                  
to any “copy” of any contract or agreement or other document or instrument are to a true and complete copy thereof;

 

f.                   
to “hereof,” “herein,” “hereunder,” “hereby,” “herewith” and words of similar
import refer to this Reinsurance Agreement as a whole and not to any particular Article, Section or clause of this Reinsurance Agreement,
unless otherwise clearly indicated to the contrary;

 

g.                  
to the “date of this Reinsurance Agreement,” “the date hereof” and words of similar import refer to April 1, 2020;
and

 

h.                  
to “this Reinsurance Agreement” includes the Exhibits and Schedules.

 

2.           Whenever
the last day for the exercise of any right or the discharge of any duty under this Reinsurance Agreement falls on a day other than a Business
Day, the Party having such right or duty shall have until the next Business Day to exercise such right or discharge such duty. Unless
otherwise indicated, the word “day” shall be interpreted as a calendar day. With respect to any determination of any period
of time, unless otherwise set forth herein, the word “from” means “from and including” and the word “to”
means “to but excluding.”

 

3.          Whenever
the words “include,” “includes” or “including” are used in this Reinsurance Agreement, they will be
deemed to be followed by the words “without limitation.” The word “or” shall not be disjunctive. Any singular
term in this Reinsurance Agreement will be deemed to include the plural, and any plural term the singular. All pronouns and variations
of pronouns will be deemed to refer to the feminine, masculine or neuter, singular or plural, as the identity of the person referred to
may require. Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning.

 

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4.                  
The Parties have participated jointly in the negotiation and drafting of this Reinsurance Agreement; consequently, in the event an ambiguity
or question of intent or interpretation arises, this Reinsurance Agreement shall be construed as jointly drafted by the Parties and no
presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Reinsurance
Agreement.

 

5.                  
No summary of this Reinsurance Agreement prepared by or on behalf of any Party shall affect the meaning or interpretation of this Reinsurance
Agreement.

 

6.                  
All capitalized terms used without definition in the Exhibits and Schedules to this Reinsurance Agreement shall have the meanings ascribed
to such terms in this Reinsurance Agreement.

 

B.           Binding
Effect; Assignment. This Reinsurance Agreement shall be binding upon and inure to the benefit of the Companies and Reinsurer and
their respective successors and permitted assigns. This this Reinsurance Agreement may not be assigned by either Party, by operation
of law or otherwise, without the prior written consent of the other Party, which consent may be withheld by either Party in its sole
unfettered discretion. Any assignment in violation hereof shall be void. This provision shall not be construed to preclude the assignment
by the Companies of reinsurance recoverables to another party for collection.

 

C.          Governing Law. This Reinsurance Agreement shall be governed by and construed according to the laws of the state of Texas, exclusive
of that state’s rules with respect to conflicts of law.

 

D.          Headings.
The table of contents and headings preceding the text of the Articles and Sections of this Reinsurance Agreement are intended and inserted
solely for the convenience of reference and shall not affect the meaning, interpretation, construction or effect of this Reinsurance
Agreement.

 

E.           Entire
Agreement; Amendment. This Reinsurance Agreement and the Transaction Agreements shall constitute the entire agreement between the
Parties with respect to the Subject Business hereunder. Any change or modification of this Reinsurance Agreement shall be null and void
unless made by written amendment to the Reinsurance Agreement and signed by both Parties. Nothing in this Article shall act to preclude
the introduction of reinsurance submission-related documents in any dispute between the Parties. No termination of this Reinsurance Agreement
shall be effective unless such is made in writing and signed by the Parties hereto.

 

F.           No
Third Party Beneficiaries. Nothing in this Reinsurance Agreement is intended or shall be construed to give any person, other than
the Parties hereto, any legal or equitable right, remedy or claim under or in respect of this Reinsurance Agreement or any provision
contained herein, other than the Companies and the Reinsurer as provided under the terms of this Reinsurance Agreement, except as expressly
provided otherwise under Article entitled INSOLVENCY; and except for Retrocessionaire, which shall be a third-party beneficiary
able to enforce rights under this Agreement to the extent that failure to enforce such rights (in whole or in part) would adversely affect
the Retrocessionaire.

 

G.           Remedies.
In the event of any default hereunder beyond the applicable cure period (if any), the non-defaulting Party may proceed to protect and
enforce its rights either by suit in equity and/or by action at law, including, but not limited to, an action for damages as a result
of any such default. The rights and remedies provided herein shall be cumulative and not exclusive of any rights or remedies provided
by law, except as set forth in the Article entitled ARBITRATION.

 

    71 

     

    

 

H.                
Severability. If any provision of this Reinsurance Agreement should be invalid under applicable Laws, the latter shall control
but only to the extent of the conflict without affecting the remaining provisions of this Reinsurance Agreement.

 

I.                   
Waiver. The failure of the Companies or Reinsurer to insist on strict compliance with this Reinsurance Agreement or to exercise
any right or remedy shall not constitute a waiver of any rights contained in this Reinsurance Agreement nor estop the parties from thereafter
demanding full and complete compliance nor prevent the Parties from exercising any remedy.

 

J.                   
Force Majeure. Each Party shall be excused for any reasonable failure or delay in performing any of its respective obligations
under this Reinsurance Agreement, if such failure or delay is caused by Force Majeure. “Force Majeure” shall mean any
act of God, strike, lockout, act of public enemy, any accident, explosion, fire, storm, earthquake, flood, drought, peril of sea, riot,
embargo, war or foreign, federal, state or municipal order or directive issued by a court or other authorized official, seizure, requisition
or allocation, any failure or delay of transportation, shortage of or inability to obtain supplies, equipment, fuel or labor or any other
circumstance or event beyond the reasonable control of the Party relying upon such circumstance or event.

 

K.                
Survival. Notwithstanding anything to the contrary herein, all Articles of this Reinsurance Agreement shall survive the termination
of this Reinsurance Agreement until all surviving obligations between the Parties have been finally settled.

 

L.                 
Construction. Whenever the content of this Reinsurance Agreement requires, the gender of all words shall include the masculine,
feminine and neuter, and the number of all words shall include the singular and the plural. This Reinsurance Agreement shall be construed
without regard to any presumption or other rule requiring construction against the Party causing this Reinsurance Agreement to be drafted.

 

M.               
Authority. Each Party has full power and authority to execute and deliver this Reinsurance Agreement and to perform its obligations
hereunder. The execution and delivery of this Reinsurance Agreement, and the consummation of the transactions contemplated herein, have
been duly and validly approved by all requisite action on the part of each Party, and no other proceedings on the part of either Party,
is necessary to approve this Reinsurance Agreement and to consummate the transactions contemplated herein. This Reinsurance Agreement
has been duly and validly executed and delivered by each Party, and constitutes the legal, valid and binding obligation of each Party,
enforceable against each Party in accordance with its terms, except as enforcement may be limited by general principles of equity, whether
applied in a court of law or a court of equity, and by bankruptcy, insolvency, reorganization, moratorium and similar laws affecting or
relating to creditors’ rights and remedies generally.

 

N.                
Notices. All notices and other communications under this Reinsurance Agreement shall be in writing and shall be deemed given (a)
when delivered personally by hand, (b) when sent by email (with written confirmation of transmission), (c) three (3) Business Days after
being sent by certified mail, or (d) one (1) Business Day following the day sent by an internationally recognized overnight courier, in
each case, at the following addresses and email addresses (or to such other address or email address as a party may have specified by
notice given to the other party pursuant to this provision):

 

In the case of Reinsurer:

 

Marsh Management Services Cayman Ltd. 

P.O. Box 1051 

Grand Cayman KY1-1102 

CAYMAN ISLANDS

 

    72 

     

    

 

With a copy to:

 

HIIG Services Companies

800 Gessner, Suite 600

Houston, TX 77024

Attn: Legal Department

 

In the case of the Companies:

 

Houston Specialty Insurance Companies 

Imperium Insurance Companies 

Great Midwest Insurance Companies 

Legal Department 

800 Gessner, Suite 600 

Houston, TX 77024

 

O.          Counterparts:
Electronic Execution. This Reinsurance Agreement may be executed in one or more counterparts, each of which will be deemed to
constitute an original, but all of which shall constitute one and the same agreement, and may be delivered by electronic means
intended to preserve the original graphic or pictorial appearance of a document, including portable document format (PDF) scan.

 

(signatures appear on the following page)

 

    73 

     

    

 

IN WITNESS WHEREOF, each of
the Parties has caused this Reinsurance Agreement to be executed on its behalf as of April 1, 2020.

 

	 	HOUSTON SPECIALTY INSURANCE COMPANY
	 	 
	 	By:	 
	 	 	Title: President
	 	 
	 	IMPERIUM INSURANCE COMPANY,
	 	 
	 	By:	     
	 	 	Title: President
	 	 
	 	GREAT MIDWEST INSURANCE COMPANY
	 	 
	 	By:	 
	 	 	Title: President
	 	 
	 	HIIG RE
	 	 
	 	By:	 
	 		Title:

 

    lxxiv

     

    

 

EXHIBIT C

 

Statutory Trust Agreement Form

 

STATUTORY TRUST AGREEMENT

 

BY AND AMONG

 

R&Q BERMUDA (SAC) LIMITED 

ACTING IN RESPECT OF THE HIIG SEGREGATED ACCOUNT

 

as Retrocessionaire Grantor

 

HIIG RE

 

as Reinsurer Grantor

 

[_________________________________]

 

as Beneficiary

 

AND

 

THE BANK OF NEW YORK MELLON

 

as Trustee

 

Dated as of April 1, 2020

 

    lxxv

     

    

 

STATUTORY TRUST AGREEMENT

 

This is a statutory trust
agreement, dated as of April 1, 2020 (hereinafter the “Agreement”), by and among R&Q Bermuda (SAC) Limited, a Bermuda
limited company, acting in respect of the HIIG Segregated Account (the “Retrocessionaire Grantor”), HIIG Re, a Cayman Islands
company (the “Reinsurer Grantor” and together with the Retrocessionaire Grantor, the “Grantors” and either of
them individually, a “Grantor”), [                                                                  ], a Texas company (“Beneficiary”), and The Bank of New York Mellon,
a New York banking corporation (the “Trustee”). The Grantors, the Beneficiary and the Trustee are hereinafter each sometimes
referred to individually as a “Party” and collectively as the “Parties”.

 

WHEREAS, the Beneficiary, [
                                                   ]
and [                                             ] (collectively,
 “the Ceding Companies”) and the Reinsurer Grantor have entered into that certain Loss Portfolio Transfer and Adverse
Development Reinsurance Agreement by and between Ceding Companies and the Reinsurer Grantor (the “Reinsurance
Agreement”);

 

WHEREAS, the Retrocessionaire
Grantor and the Reinsurer Grantor have entered into that certain Loss Portfolio Transfer and Adverse Development Retrocession Agreement
(the “Retrocession Agreement”, together with the Reinsurance Agreement, the “LPT Agreements”), in accordance with
which the Retrocessionaire Grantor agrees to provide retrocession coverage for certain, but not all, of Reinsurer Grantor’s obligations
under the Reinsurance Agreement, which such certain obligations were assumed by the Retrocessionaire Grantor under the Retrocession Agreement
(the “Retrocession Liabilities”);

 

WHEREAS, the Reinsurance Agreement
and the Retrocession Agreement each provides that the Grantors shall secure their obligations in respect of the Retrocession Liabilities
to each of the Ceding Companies by depositing and maintaining certain assets in trust for the benefit of the Ceding Companies, so that
the Ceding Companies be permitted to take full credit for reinsurance with respect to such Retrocession Liabilities.

 

NOW, THEREFORE, for and in
consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged, and intending
to be legally bound hereby, the Parties hereby agree as follows:

 

TERMS AND CONDITIONS

 

Section 1.          Deposit of Assets to the Trust Account.

 

(a)       The Grantors
shall establish and maintain with the Trustee a trust account for the

 

sole benefit of Beneficiary (which in its
totality shall be hereinafter referred to, including all successor accounts thereto, as the “Trust Account”). The
Grantors shall transfer to the Trustee, for deposit to the Trust Account, cash and other Assets. The initial deposit of Assets into
the Trust Account shall be made in accordance with the terms of the Retrocession Agreement by the Reinsurer Grantor, in cash in the
amount of Beneficiary’s proportionate share of the Net Premium. Trustee shall receive such Assets and hold all Assets in a
safe place. Additional Assets may subsequently be deposited to, and Assets may be withdrawn from, the Trust Account only in
accordance with the provisions of this Agreement. For the avoidance of doubt, Reinsurer Grantor has no obligation to make additional
deposits to the Trust Account, on behalf of the Retrocession Grantor or otherwise.

 

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(b)              
The Trustee shall administer the Trust Account as Trustee and fiduciary for the sole benefit of Beneficiary. The Trust Account shall be
subject to withdrawal solely by Beneficiary as provided herein. All Assets in the Trust Account will be held by the Trustee at the Trustee’s
Office in the United States of America (“United States”).

 

(c)              
A Grantor that transfers Assets into the Trust Account hereby represents and warrants with respect to such Assets that (i) all such cash
and/or other Assets referred to in Section 1(a) transferred to the Trustee for deposit to the Trust Account shall consist only of United
States Dollars (“cash”) and Eligible Securities, (ii) that any such Assets transferred by the Grantor to the Trustee for deposit
to the Trust Account will be in such form that Beneficiary, and the Trustee upon direction by Beneficiary, may negotiate any such Assets
without consent or signature from the Grantors or any person in accordance with the terms of this Agreement and (iii) such cash and other
Assets transferred for deposit to the Trust Account shall be free and clear of all liens, claims and encumbrances. A Grantor, prior to
depositing Assets with the Trustee, shall execute assignments, endorsements in blank, or transfer legal title to the trustee of all shares,
obligations, or any other assets requiring assignments, in order that Beneficiary, or the Trustee upon the direction of Beneficiary may,
whenever necessary, negotiate any such Assets without consent or signature from the Grantors or any other entity.

 

(d)              
Reinsurer Grantor further represents and warrants that the initial deposit in the amount of the Net Premium transferred to the Trustee
for deposit to the Trust Account shall consist only of cash and such cash transferred for deposit to the Trust Account shall be free and
clear of all liens, claims and encumbrances

 

(e)              
The Trustee shall have no responsibility to determine whether the total value of cash proceeds and Eligible Securities referred to in
Section 1(c) together with Eligible Securities in which cash in the Trust Account is invested or which are substituted for other Eligible
Securities pursuant to Section 3(b) (such cash and Eligible Securities, as hereinafter defined, are in this Agreement referred to collectively
as the “Assets” and individually as an “Asset”) in the Trust Account are sufficient to secure the Retrocession
Liabilities.

 

Section 2.                Withdrawal of Assets from the Account.

 

(a)              
Without notice or consent of the Grantors, Beneficiary shall have the right to withdraw from the Trust Account, at any time and from time
to time, upon Beneficiary giving written notice (the “Withdrawal Notice”) to the Trustee, such Assets as are specified in
such Withdrawal Notice. Beneficiary need present no statement or document in addition to a Withdrawal Notice in order to withdraw any
Assets, nor is said right of withdrawal or any other provision of this Agreement subject to any conditions or qualifications outside of
this Agreement.

 

(b)              
Upon receipt of a Withdrawal Notice, the Trustee shall immediately take any and all steps necessary to transfer absolutely and
unequivocally all right, title, and interest and physical custody in the Assets specified in such Withdrawal Notice and shall
deliver such assets to Beneficiary as specified in such Withdrawal Notice given by Beneficiary.

 

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(c)       Subject
to paragraph (a) of this Section 2 and to Section 3 of this Agreement, in the absence of a Withdrawal Notice, the Trustee shall allow
no substitution or withdrawal of any Asset from the Trust Account.

 

(d)       Notwithstanding
anything to the contrary set forth in this Section 2, Beneficiary shall utilize and apply any such withdrawals, without diminution because
of the insolvency of Beneficiary or the Grantors, for the following purposes only (the “Permitted Purposes”):

 

	 	(a)	to pay, or to reimburse Beneficiary for the due but unpaid or unreimbursed Retrocession Liabilities;

 

	 	(b)	to transfer to the Retrocessionaire Grantor any Assets that are in excess of the Required Collateral Amount;

 

	 	(c)	where Beneficiary has received notification of termination of this Agreement and where any of the Grantors’ Retrocession Liabilities remain unliquidated and undischarged ten (10) days prior to the termination date, to withdraw assets in the Trust Account equal to such obligations and deposit such assets in a separate account apart from its other assets, in the name of Beneficiary, in any United States bank or trust company apart from Beneficiary’s general assets in trust solely for the uses and purposes specified in this section that remain executory after the withdrawal and for any period after such termination date.

 

A Collateral Offset (as defined in the Retrocession
Agreement) completed in accordance with the provisions of the Retrocession Agreement shall not be considered a transfer in violation of
the Permitted Purposes set forth above.

 

(e)       Beneficiary
shall return to the Trust Account, within five (5) Business Days, assets withdrawn in excess of all amounts due under Sections 2(d)(i)
and 2(d)(iii), and, to the extent not yet actually paid to the Retrocessionaire Grantor, Section 2(d)(ii). Any such excess amounts shall
at all times be held by Beneficiary (or any successor by operation of law thereof, including any liquidator, rehabilitator, receiver or
conservator thereof) in trust for the benefit of the Retrocessionaire Grantor for the sole purpose of funding the payments and reimbursements
described in Section 2(d). Assets that are subsequently determined not to be due shall be returned to the Trust Account with interest
charged thereon at Two Percent (2%) per annum, calculated on an annual basis.

 

(f)       The
Trustee shall have no responsibility whatsoever to determine how any Assets withdrawn from the Trust Account pursuant to this Section
2 will be used and applied by Beneficiary. Furthermore, the Trustee shall have no responsibility whatsoever to determine whether the Beneficiary
shall return, or shall have returned, any excess amounts and whether any interest is owed under Section 2(e).

 

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(g)              
Beneficiary shall not, and shall not permit any party (including any third party claims administrator administering claims in connection
with the Retrocession Liabilities) to use and apply Assets for any purpose other than the Permitted Purposes.

 

(h)              
If, based on the Quarterly Funding Report beginning with the calendar quarter ended June 30, 2020, the Required Collateral Amount at the
end of any calendar quarter (i) is less than the Fair Market Value of the Assets held in the Trust Account (determined in accordance with
Section 6(f) hereof), Beneficiary shall promptly, but not less than five (5) Business Days after delivery of the Quarterly Funding Report
to the Grantors, direct the Trustee to transfer directly from the Trust Account to the account of the Retrocessionaire Grantor or its
designee such Assets with a Fair Market Value in excess of the Required Collateral Amount, or (ii) exceeds the Fair Market Value of the
Assets held in the Trust Account (determined in accordance with Section 6(f) hereof), the Retrocessionaire Grantor shall promptly, but
not less than five (5) Business Days after delivery of the Quarterly Funding Report, transfer to the Trust Account such additional Assets
as may be necessary to increase the Fair Market Value of the Assets held in the Trust Account to the Required Collateral Amount.

 

(i)                
Any other term in this Agreement notwithstanding, no statement or document, other than the written notice from Beneficiary to the Trustee,
will be accepted to withdraw Assets. Beneficiary shall, upon written request of the Trustee, acknowledge in writing to the Trustee, Beneficiary’s
receipt of the withdrawn Assets.

 

Section 3.               Redemption, Investment and Substitution of Assets.

 

(a)              
The Trustee shall surrender for payment all maturing Assets and all Assets called for redemption and deposit the principal amount of the
proceeds of any such payment to the Trust Account.

 

(b)              
The Trustee shall allow no substitutions or withdrawals of Assets from the Trust Account, except on written instructions from Beneficiary,
or the Trustee may, without the consent of but with written notice to Beneficiary, on call or maturity of any Asset, withdraw such Asset
on condition that the proceeds are paid or deposited into the Trust Account.

 

(c)              
The Trustee shall invest and reinvest the cash held in the Trust Account as directed by the Retrocessionaire Grantor in writing from time
to time. The Trustee shall have no responsibility whatsoever to determine that any Assets in the Trust Account are or continue to be in
compliance with the provision of Texas Insurance Law.

 

(d)              
Any loss incurred from any investment pursuant to the terms of this Section 3 shall be borne exclusively by the Trust Account. Subject
to other terms of this Agreement, the Trustee shall have no liability for any loss sustained as a result of any investment made pursuant
to the terms of this Agreement or as a result of any liquidation of any investment prior to its maturity or for the failure of the Retrocessionaire
Grantor to give the Trustee instructions to invest or reinvest the Trust Account. The Retrocessionaire Grantor shall make additional deposits
pursuant to Section 1 in the event such loss is incurred.

 

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(e)              
The Trustee shall keep full and complete records of the administration of the Trust Account.

 

(f)               
When the Trustee is directed by Beneficiary to deliver Assets against payment, delivery will be made in accordance with generally accepted
market practice, not inconsistent with terms of this Agreement.

 

(g)              
The Trustee shall execute investment directions and settle securities transactions by itself or by means of an agent or broker. The Trustee
shall not be responsible for any act or omission, or for the solvency, of any such agent or broker. For the purposes of Section 3
the Trustee shall not be liable for valuing the assets according to their Fair Market Value.

 

Section 4.     Interest
and Dividends.

 

All payments of interest, dividends and other
income in respect to the Assets in the Trust Account shall be posted and credited by the Trustee, subject to deduction of the Trustee’s
compensation and expenses as provided in Section 7 of this Agreement, in the separate income column of the custody ledger (the “Income
Account”) within the Trust Account, which Trust Account is established and maintained by the Retrocessionaire Grantor at an office
of the Trustee in New York City. Any interest, dividend or other income automatically posted and credited on the payment date to the Income
Account which is not subsequently received by the Trustee shall be reimbursed by the Retrocessionaire Grantor to the Trustee and the Trustee
may debit the Income Account for this purpose. Every quarter, after deduction of the Trustee’s compensation and expenses as provided
in Section 7 of this Agreement, the interest, dividends and other income set forth in the Income Account shall be swept into the
Trust Account.

 

Section 5.     Right
to Vote Assets.

 

The Trustee shall forward all annual and interim
stockholder reports and all proxies and proxy materials relating to the Assets in the Trust Account to the Retrocesionaire Grantor. The
Retrocessionaire Grantor shall have the full and unqualified right to exercise any voting rights associated with the Assets in the Trust
Account. The Trustee shall notify the Retrocessionaire Grantor of rights or discretionary actions with respect to Eligible Securities
as promptly as practicable under the circumstances, provided that the Trustee has actually received notice of such right or discretionary
corporate action from the relevant depository. Subject to other terms of this Agreement, absent actual receipt of such reports and materials,
the Trustee shall have no liability for failing to so forward the same to the any Grantor. The Trustee shall not be liable for failure
to take any action relating to or to exercise any rights conferred by such Eligible Securities.

 

Section 6.     Additional
Rights and Duties of the Trustee.

 

(a)            The
Trustee shall notify the Grantors and Beneficiary in writing within ten (10) days following each deposit to, or withdrawal from, the
Trust Account. Any notification or statement required to be given by the Trustee under this Agreement shall be deemed so given upon
notice by e-mail to the Grantors and Beneficiary that such notification or statement is available to the Grantors and the
Beneficiary through the Trustee’s online reporting tool, but only if the Grantors and Beneficiary are granted reasonable
access to the Trustee’s online reporting tool at the time of such notice and such notification or statement through the
Trustee’s online reporting tool is actually available to the Grantors and Beneficiary for at least a reasonable time
thereafter. However, providing such access shall not relieve the Trustee of its notice obligations under this Section 6(a). The
term notification as used in this paragraph does not include any notice or notification required to be given or referred in
Section 10, Termination of the Trust Account.

 

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(b)              
Before accepting any Asset for deposit to the Trust Account, the Trustee shall determine that such Asset is in such form that Beneficiary,
or the Trustee upon direction by the Beneficiary, may, whenever necessary negotiate such Asset without consent or signature from the Grantors
or any other person.

 

(c)              
The Trustee shall have no responsibility whatsoever to determine that any Assets in the Trust Account are or continue to be Eligible Securities.

 

(d)              
The Trustee may record any Assets in the Trust Account in a book entry form maintained at the Federal Reserve Bank of New York or in depositories
such as the Depository Trust Company so long as the Trustee’s records clearly indicate that the assets held are a part of the Trust
Account. Subject to other terms of this Agreement, the Trustee shall have no liability whatsoever for the action or inaction of any such
depository or for any losses resulting from the maintenance of Assets with any such depository.

 

(e)              
The Trustee shall accept and open all mail directed to the Grantors or Beneficiary in care of the Trustee.

 

(f)               
The Trustee shall furnish to the Grantors and Beneficiary a statement of all Assets in the Trust Account at inception of the Trust Account
and at the end of each calendar month. Such report shall, in reasonable detail, show: (i) all deposits, withdrawals and substitutions
during such month; (ii) a listing of securities held and cash and cash equivalent balances in the Trust Account as of the last day
of such month; and (iii) the Fair Market Value of each Asset held in the Trust Account (other than cash) and the amount of cash held
as of the last day of such month. The Trustee shall utilize the services of nationally recognized industry providers in order to determine
the Fair Market Value of any Assets in the Trust Account at inception and thereafter on a monthly basis, and the Grantors and Beneficiary
shall accept such values; provided that such values are to be stated in United States dollars. Where the vendors do not provide information
for particular Assets, an Authorized Person of the Retrocessionaire Grantor, or the Retrocesionaire Grantor's designated investment advisor,
if any, may advise the Trustee regarding the Fair Market Value of, or provide other information with respect to, such Assets as determined
by it in good faith. The Trustee shall not be liable for any loss, damage or expense incurred as a result of errors or omissions with
respect to any pricing or any other information used by the Trustee hereunder.

 

(g)              
Upon the request of the Grantors or Beneficiary, the Trustee shall promptly permit the Grantors or Beneficiary, their respective agents,
employees or independent auditors to examine, audit, excerpt, transcribe and copy, during the Trustee's normal business hours, any books,
documents, papers and records relating to the Trust Account or the Assets.

 

(h)              
Unless otherwise provided in this Agreement, the Trustee is authorized to follow and rely upon all instructions given by officers
named in incumbency certificates furnished to the Trustee from time to time by the Grantors and Beneficiary, respectively, and by
attorneys-in-fact acting under written authority furnished to the Trustee by the Grantors or Beneficiary, including, without
limitation, instructions given by letter, facsimile transmission, or electronic mail, if the Trustee reasonably believes such
instructions to be genuine and to have been signed, sent or presented by the proper Party or Parties. The Trustee shall not incur
any liability to anyone resulting from actions taken by the Trustee in reliance in good faith on such instructions. The Trustee
shall not incur any liability in executing instructions (i) from an attorney-in-fact prior to receipt by it of notice of the
revocation of the written authority of the attorney-in-fact or (ii) from any officer of the Grantors or Beneficiary named in an
incumbency certificate delivered hereunder, if such instructions are executed prior to receipt by it of a more current certificate.
Each Grantor and Beneficiary acknowledges and agrees that it is fully informed of the protections and risks associated with the
various methods of transmitting instructions to the Trustee, and that there may be more secure methods of transmitting instructions
than the method selected by the sender. Each Grantor and Beneficiary agrees that the security procedures, if any, to be followed in
connection with a transmission of instructions provide to it a commercially reasonable degree of protection in light of its
particular needs and circumstances. Other provisions and terms of this Agreement notwithstanding, the Trustee shall be liable to the
Beneficiary and the Grantors for the Trustee’s negligence, willful misconduct, or lack of good faith or breach of fiduciary
duty.

 

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(i)                
The duties and obligations of the Trustee shall only be such as are specifically set forth in this Agreement, as it may from time to time
be amended, and no implied duties or obligations shall be read into this Agreement against the Trustee. The Trustee shall only be liable
for its own negligence, willful misconduct, or lack of good faith or breach of fiduciary duty. In the performance of its duties under
this Agreement, the Trustee may act directly or through its agents and Affiliates, and the Trustee shall be deemed to have discharged
its duties and responsibilities under this Agreement to the extent that an agent or an Affiliate of the Trustee has agreed to perform,
and does perform, any act to discharge, and does discharge, any duty of the Trustee hereunder, and the Trustee shall not be held liable
for the default or failure of the such agent of Affiliate provided that the Trustee shall have exercised due care in selection of such
agent or Affiliate, and due care in the supervision of any such agent which is also an Affiliate of the Trustee, in each case in good
faith and absent negligence, or willful misconduct or breach of fiduciary duty on the part of the Trustee. For the avoidance of doubt,
the Trustee’s fiduciary duty under this Agreement shall mean the safekeeping and administration of the Trust Account as explicitly
specified in this Agreement. It is agreed that the standard of care and the benefits, protections and rights (including indemnities) applied
to or provided to the Trustee under this Trust Agreement shall be applied to and shall be available to the Affiliates of the Trustee in
respect of any execution or performance by such Affiliates hereunder.

 

(j)                
No provision of this Agreement shall require the Trustee to take any action which, in the Trustee's reasonable judgment, would result
in any violation of law.

 

(k)              
The Trustee may confer with counsel of its own choice in relation to matters arising under this Agreement and shall have full and complete
authorization from the other Parties hereunder and shall be fully protected with respect to any action taken or suffered by it under this
Agreement or under any transaction contemplated hereby in good faith and in accordance with opinion of such counsel.

 

(1)              
The
Trust Account shall be (i) in the possession of the Trustee at its offices in New York (ii) kept separate and apart on the books
and records of the Trustee from any assets of the Trustee and any other securities held by the Trustee for whomever and for whatsoever
purpose, (iii) clearly identifiable as Assets subject to this Agreement at all times while in the possession of the Trustee. The
title and account number of the Trust Account are identified on Schedule 3 attached hereto.

 

(m)            
Anything in this Agreement to the contrary notwithstanding, in no event shall the Trustee be liable under or in connection with this Agreement
for indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever, including but not limited to lost
profits, whether or not foreseeable, even if the Trustee, has been advised of the possibility thereof and regardless of the form of action
in which such damages are sought.

 

(n)              
The Trustee shall not be responsible for the existence, genuineness or value of any of the Assets or for the validity, perfection, priority
or enforceability of the liens in any of the Assets, whether impaired by operation of law or by reason of any action or omission to act
on its part hereunder, except to the extent such action or omission constitutes negligence, lack of good faith, or willful misconduct
or breach of fiduciary duty, for the validity of title to the Assets, for insuring the Assets or for the payment of taxes, charges, assessments
or liens upon the Assets.

 

(o)              
The Trustee shall not be required to risk or expend its own funds in performing its obligations under this Agreement.

 

(d)               The Trustee shall respond to any and all reasonable requests from the Grantors or Beneficiary, and the Trustee shall promptly supply the
information requested as concerning the Trust Account or the Assets held therein.

 

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Section 7.     The
Trustee’s Compensation, Expenses and Indemnification.

 

(a)            The
Retrocessionaire Grantor shall pay the Trustee, as compensation for its services under this Agreement, a fee computed at rates determined
by the Trustee from time to time and communicated in writing to the Retrocessionaire Grantor. The Retrocessionaire Grantor shall pay
or reimburse the Trustee for all of the Trustee's out-of-pocket expenses and disbursements in connection with its duties under this Agreement
(including attorney's fees and expenses), except any such expense, or disbursement as may arise from the Trustee's negligence, willful
misconduct, or lack of good faith or breach of fiduciary duty. The Trustee shall be entitled to deduct its compensation and expenses
from payments of dividends into the Income Account as provided in Section 4 of this Agreement. This Agreement prohibits invasion
of the trust corpus for the purpose of paying compensation to, or reimbursing the expenses of, the Trustee. The Grantors and Beneficiary
severally and not jointly hereby indemnify the Trustee for, and holds it harmless against, any loss, liability, costs or expenses (including
attorney’s fees and expenses and the costs of successfully defending itself against a claim of negligence or willful misconduct
on its part made by another party hereto) incurred or made without negligence, willful misconduct or lack of good faith on the part of
the Trustee, or breach of fiduciary duty, arising out of or in connection with the performance of its obligations in accordance with
the provisions of this Agreement, including any loss, liability, costs or expenses arising out of or in connection with the status of
the Trustee. The Grantors and Beneficiary hereby acknowledge that the foregoing indemnities shall survive the resignation or discharge
of the Trustee or the termination of this Agreement.

 

(b)            No
Assets shall be withdrawn from the Trust Account or used in any manner for paying compensation to, or reimbursement or
indemnification of, the Trustee. This provision is not intended to limit or affect the Trustee's entitlement to deduct from the
Income Account.

 

Section 8.     TINs.

 

The Grantors and Beneficiary each represents that
its respective correct Taxpayer Identification Number (“TIN”) assigned by the Internal Revenue Service or any other taxing
authority is set forth in Schedule 1 hereto. Upon execution of this Agreement, the Grantors shall each provide the Trustee with a fully
executed W-8 or W-9 Internal Revenue Service Form, which shall include the applicable Grantor’s Tax Identification Number (TIN),
as assigned by the Internal Revenue Service. All interest or other income earned under this Agreement shall be deposited pursuant to the
terms of this Agreement and reported by the Retrocessionaire Grantor to the Internal Revenue Service or any other taxing authority. Notwithstanding
such written directions, Trustee shall report and, as required, withhold any taxes as it determines may be required by any law or regulation
in effect at the time of the distribution. In the event that any such earnings remain undeposited at the end of any calendar year, Trustee
shall report such income to the Internal Revenue Service or such other authority such earnings as it deems appropriate or as required
by any applicable law or regulation. In addition, Trustee shall hold any taxes if required by law to do so and shall remit such taxes
to the appropriate authorities.

 

Section 9.     Grantor
Trust for U.S. Federal Income Tax Purposes.

 

The Trust shall be treated as a grantor trust
(pursuant to sections 671 through 677 of the Code) for U.S. federal income tax purposes. The Retrocessionaire Grantor shall constitute
the grantor (within the meaning of sections 671 and 677(a) of the Code) and, thus, any and all income derived from the Assets shall
constitute income or gain of the Retrocessionaire Grantor only as the owner of such Assets. The Retrocessionaire Grantor shall file any
federal, state or local tax returns to the extent required by applicable Law.

 

Section 10.    Resignation of the Trustee.

 

(a)               
The Trustee may resign at any time by giving not less than ninety (90) days written notice thereof to the Beneficiary and to the Grantors,
such resignation to become effective on the acceptance of appointment by a successor trustee and the transfer to such successor trustee
of all Assets in the Trust Account in accordance with paragraph (b) of this Section 9.

 

(b)              
Upon receipt of the Trustee’s notice of resignation, the Grantors and Beneficiary shall appoint a successor trustee. Any
successor trustee shall be a bank that is a member of the Federal Reserve System and shall not be a parent, a subsidiary or an
affiliate of the Grantors or Beneficiary. Upon the acceptance of the appointment as trustee hereunder by a successor trustee,
payment of all fees due the Trustee and the transfer to such successor trustee of all Assets in the Trust Account, the resignation
of the Trustee shall become effective. Thereupon, such successor trustee shall succeed to and become vested with the rights, powers,
privileges and duties of the Trustee, and the Trustee shall be discharged from any future duties and obligations under this
Agreement, but the Trustee shall continue after its resignation to be entitled to the benefits of the indemnities provided herein
for the Trustee.

 

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Section 11.    Termination of the Trust Account.

 

(a)              
The Trust Account and this Agreement, except for the indemnities provided herein, may be terminated only after (i) Beneficiary has
given the Trustee written notice of its intention to terminate the Trust Account (the “Notice of Intention”), and (ii) the
Trustee has given the Grantors and the Beneficiary the written notice specified in paragraph (b) of this Section 10. The Notice
of Intention shall specify the date on which Beneficiary or the Trustee, as applicable, intends the Trust Account to terminate (the “Proposed
Date”).

 

(b)              
Within ten (10) Business Days following receipt by the Trustee of the Notice of Intention, the Trustee shall give written notification
(the “Termination Notice”) to the Beneficiary and the Grantors of the date (the “Termination Date”) on which the
Trust Account shall terminate. The Termination Date shall be (a) the Proposed Date (or if not a Business Day, the next Business Day
thereafter), if the Proposed Date is at least thirty (30) days but no more than 45 days subsequent to the date the Termination Notice
is given; (b) thirty (30) days subsequent to the date the Termination Notice is given (or if not a Business Day, the next Business
Day thereafter), if the Proposed Date is fewer than thirty (30) days subsequent to the date the Termination Notice is given; or (c) forty
five (45) days subsequent to the date the Termination Notice is given (or if not a Business Day, the next Business Day thereafter), if
the Proposed Date is more than forty five (45) days subsequent to the date the Termination Notice is given. Further, the Trustee shall
at least thirty (30) days prior to Termination Date deliver written notification of termination, including the termination date, via certified
mail, to the Beneficiary.

 

(c)              
On the Termination Date, upon receipt of written approval of the Beneficiary, the Trustee shall transfer any Assets remaining in the Trust
Account to the Retrocessionaire Grantor as directed by such instructions, at which time all liability of the Trustee with respect to such
Assets shall cease.

 

(d)              
At least thirty (30) days prior to the Termination Date, written notification of termination of the Trust Account shall be delivered by
the Trustee via certified mail to Beneficiary and to the Texas Department of Insurance. Notice to the Texas Department of Insurance shall
be addressed and sent to the attention of the Financial Regulation Division, PO Box 149104, Austin, TX 78714-9104 or such other address.
Beneficiary shall provide the Trustee with updates to such address and addressee information as from time to time may be necessary to
keep that information current. In providing the Notices required by this paragraph, the Trustee may rely upon this information and in
doing so shall be protected, held harmless and deemed to have exercised all reasonable due care.

 

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Section 12.   Definitions.

 

Except as the context shall otherwise require,
the following terms shall have the following meanings for all purposes of this Agreement (the definitions are applicable to both the singular
and the plural forms).

 

The term “Affiliate”
with respect to any legal entity shall mean a person or legal entity which directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such legal entity. The term “control” (including the related
terms “controlled by” and “under common control with”) shall mean the ownership, directly or indirectly, of more
than ten percent (10%) of the voting stock of a legal entity.

 

The term “Beneficiary”
shall include any successor of the Beneficiary by operation of law including, without limitation, any liquidator, rehabilitator, receiver
or conservator.

 

The term “Business Day”
shall mean any day other than a Saturday, Sunday or any other day on which the Trustee located at the notice address set forth in Section 17
is authorized or required by law or executive order to remain closed.

 

The term "Eligible Securities"
shall mean those securities which consist solely of

 

(1)        
a certificate of deposit payable in United States dollars and issued by a bank organized under the laws of the United States or any state
thereof; or

 

(2)        
an investment of a type permitted by the Texas Insurance Code, Section 493.104, provided that such investment must also be issued
by an institution which is not the parent, subsidiary or Affiliate of the Beneficiary or the Grantors. The Beneficiary and the Grantors
agree the Eligible Securities shall not include any Assets held or principally traded outside the United States.

 

"Eligible Securities"
do not include mortgages, collateralized debt obligations, collateralized loan obligations, real estate or derivatives. Additionally,
to be part of Eligible Securities, an investment must be interest bearing, interest, accruing with a specific maturity date on which redemption
is to be made at stated value, and not in default and shall otherwise qualify under Texas Insurance Law.

 

The term “Fair
Market Value” shall mean in respect of any given valuation date, (i) in the case of securities listed on an exchange or
in an over-the counter market, the closing price on such exchange or market (or the average of the closing bid and asked prices if
there is no closing price) plus all accrued but unpaid interest on such securities through the last Business Day preceding the
valuation date if such amount is not already reflected in such closing price (or such bid and asked prices), and (ii) in the
case of cash, the face amount thereof. Trustee may, as an accommodation, provide pricing or other information services to Grantor
and/ or Beneficiary in connection with this Agreement. The Trustee is authorized to utilize any nationally recognized vendor whose
business regularly involves providing pricing information including the valuation of thinly traded or illiquid securities reasonably
believed by the Trustee to be reliable to provide such information. Under no circumstances shall the Trustee be liable for any loss,
damage, or expense suffered or incurred by Grantor or Beneficiary as a result of errors or omissions with respect to any pricing or
other information utilized by Trustee hereunder.

 

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The term “Net Premium”
shall mean an amount equal to Premium less Brokerage less FET assessed on Premium (each of the foregoing, as defined in
the Retrocession Agreement).

 

The term “Parent”
shall mean an institution controlled, directly or indirectly, by another institution.

 

The term “Person”
shall mean and include an individual, a corporation, a partnership, an association, a trust, an unincorporated organization or a government
or political subdivision thereof.

 

The term “Quarterly
Funding Report” shall have the meaning set forth in the Retrocession Agreement.

 

The term “Required Collateral
Amount” shall have the meaning set forth in the Retrocession Agreement.

 

The term “Ultimate Net
Loss” shall have the meaning set forth in the Retrocession Agreement.

 

Section 13.    Governing Law.

 

This Agreement shall be subject to and governed
by the laws of the State of New York. Each Party hereto irrevocably waives any objection on the grounds of venue, forum non conveniens
or any similar grounds and irrevocably consents to the service of process by mail or in any other manner permitted by applicable laws
and consents to the jurisdiction of the federal courts of the United States located in the Southern District of the State of New York
or, if such courts do not have jurisdiction, the state courts of the State of New York sitting in the Borough of Manhattan. Each Party
hereby waives any right to a trial by jury with respect to any lawsuit or judicial proceeding arising or relating to this Agreement.

 

Section 14.    Successors and Assigns.

 

No Party may assign this Agreement or any of
its obligations hereunder, without the prior written consent of the other Parties; provided, however, that this Agreement shall
inure to the benefit of and bind those who, by operation of law, become successors to the Parties, including, without limitation,
any liquidator, rehabilitator, receiver or conservator and any successor merged or consolidated entity and provided further that, in
the case of the Trustee, the successor trustee is eligible to be a trustee under the terms hereof and in the case of Grantors and
Beneficiary, the parties have provided the Trustee with prior written notice of such assignment and subject to the Bank’s
satisfactory completion of CIP on the successor. Any corporation or association into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation or association to which all or substantially all the Insurance Trust business
of the Trustee's corporate trust line of business may be transferred, shall be the Trustee under this Agreement without further
act.

 

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Section 15     Severability.

 

In the event that any provision of the Agreement
shall be declared invalid or unenforceable by any regulatory body or court having jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remaining portions of this Agreement.

 

Section 16.    Entire Agreement.

 

This Agreement constitutes the entire agreement
among the Parties with respect to the subject matter hereof, and there are no understandings or agreements, conditions or qualifications
relative to this Agreement which are not fully expressed in this Agreement.

 

Section 17.    Amendments.

 

This Agreement may be modified or otherwise amended, and the
observance of any term of this Agreement may be waived, but only to the extent that such modification, amendment or waiver is in
writing and signed by all of the Parties.

 

Section 18.    Notices.

 

(a)            All
communications hereunder shall be in writing and shall be deemed to be duly given and received:

 

(i)                
upon delivery if delivered personally, electronic media or upon confirmed transmittal if by facsimile (Fax);

 

(ii)               
on the next Business Day if sent by overnight courier; or

 

(iii)              
four (4) Business Days after mailing if mailed by prepaid register mail, return receipt requested, to the appropriate notice address
set forth below this Section 17 or at such other address as any Party hereto may have furnished to the other parties in writing by
registered mail, return receipt requested.

 

If to the Retrocession Grantor:

 

R&Q Bermuda (SAC) Limited 

Randall & Quilter Investment Holdings Ltd. 

F B Perry Building, 40 Church Street 

Hamilton HM11, Bermuda 

Attention: Paul Corver 

Email: [***]

 

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With a copy to:

 

R&Q Solutions, LLC 

Two Logan Square 

Suite 600 

Philadelphia, PA 19103 

Attention: Christopher Reichow, U.S. General Counsel 

Email: [***]

 

If to the Reinsurer Grantor:

 

HIIG Re 

c/o Marsh Management Services Cayman Ltd. 

P.O. Box 1051 

Grand Cayman KY1-1102 

CAYMAN ISLANDS 

Email:

 

With a copy to

 

HIIG Re 

Legal Department 

800 Gessner, Suite 600 

Houston, TX 77024 

Email: [***]

 

If to the Beneficiary:

 

[______________________]

[______________________]

[______________________]

[______________________]

Email: [______________________]

 

If to the Trustee:

 

The Bank of New York Mellon

Insurance Trust and Escrow

240 Greenwich Street, 

New York, NY 10286 USA

Attention: 

Fax

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(b)       Notwithstanding
the above, in the case of communications delivered to the Trustee pursuant to (ii) and (iii) of this Section 17, such
communications shall be deemed to have been given on the date received by the Trustee. Each Party may from time to time designate a different
address for notices, directions, requests, demands, acknowledgments and other communications by giving written notice of such change
to the other Parties. All notices, directions, requests, demands, acknowledgments and other communications relating to the Beneficiary's
approval of the Retrocessionaire Grantor's authorization to substitute Trust Assets and to the termination of the Trust Account shall
be in writing and may be made or given by facsimile or electronic media.

 

Section 19. Funds Transfer Procedures.

 

In the event funds transfer instructions are given
in writing by Beneficiary, via facsimile or otherwise, pursuant to other terms of this Agreement, the Trustee is authorized to seek confirmation
of such instructions from Beneficiary by telephone call-back to the person or persons designated in Schedule 2 hereto (“Schedule
2”), and the Trustee may rely upon the confirmation of anyone purporting to be the person or persons so designated. The persons
and telephone numbers for call-backs may be changed only in a writing actually received and acknowledged by the Trustee. If the Trustee
is unable to contact any of the authorized representatives identified in Schedule 2, the Trustee is hereby authorized to seek confirmation
of such instructions by telephone call-back to any one or more of the executive officers of Beneficiary (“Executive Officers”)
as the Trustee may select. Such Executive Officer shall deliver to the Trustee a fully executed Incumbency Certificate, and the Trustee
may rely upon the confirmation of anyone purporting to be any such officer. The Trustee and the Beneficiary's bank in any funds transfer
may rely solely upon any account numbers or similar identifying numbers provided by Beneficiary to identify (i) the Beneficiary, (ii)
the Beneficiary’s bank, or (iii) an intermediary bank. The Trustee may choose to apply any of the Assets in the Trust Account for
any payment order it executes using any such identifying number. The parties to this Agreement acknowledge that these security procedures
are commercially reasonable. Payment or otherwise to act on any instruction by Beneficiary’s Executive Officer will be made by the
Trustee within three (3) Business Days after the Trustee’s verification of instructions as set forth above, unless a shorter time
frame is required by this Agreement or applicable Texas law. The Beneficiary shall notify the Trustee if a shorter time frame is required
by this Agreement or under Texas law.

 

Notwithstanding any revocation, cancellation or
amendment of a written funds transfer authorization pursuant to this Agreement, any action taken by the Trustee pursuant to such authorization
prior to the Trustee’s receipt of a notice of revocation, cancellation or amendment, pursuant to this Agreement, shall not be affected
by such notice.

 

Section 20. Force Majeure.

 

In the event that any Party to this Agreement
is unable to perform its obligations under the terms of this Agreement because of acts of God, strikes, equipment or transmission failure
or damage reasonably beyond its control, or other cause reasonably beyond its control, such Party shall not be liable for damages to the
other Parties resulting from such failure to perform or otherwise from such causes. Performance under this Agreement shall resume when
the affected Party is able to perform substantially that Party’s duties.

 

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Section 21. USA Patriot Act.

 

The Grantors and Beneficiary hereby acknowledge
that the Trustee is subject to federal laws, including the Customer Identification Program (“CIP”) requirements under the
USA PATRIOT Act and its implementing regulations, pursuant to which the Trustee must obtain, verify and record information that allows
the Trustee to identify the Grantors and Beneficiary. Accordingly, prior to opening the Trust Account hereunder, the Trustee will ask
the Grantors and Beneficiary to provide certain information including, but not limited to, the Grantors’ and Beneficiary's name,
physical address, tax identification number and other information that will help the Trustee to identify and verify the Grantors’
and Beneficiary's identity such as organizational documents, certificate of good standing, license to do business, or other pertinent
identifying information. Each of the Grantors and Beneficiary agrees that the Trustee cannot open the Trust Account hereunder unless and
until the Trustee verifies the Grantors’ and Beneficiary's identity in accordance with the Trustee's CIP.

 

Section 22. Required Disclosure.

 

The Trustee is authorized to supply any information
regarding the Trust Account and related Assets that is required by any law, regulation or rule now or hereafter in effect. Grantors and
Beneficiary agree to supply the Trustee with any required information if it is not otherwise reasonably available to the Trustee.

 

Section 23. Trustee's Representations, Warranties and Covenants.

 

Trustee represents, warrants and covenants to the Grantors and the
Beneficiary that:

 

(a)            
Trustee is a bank that is either a member of the Federal Reserve System, or a New York State-chartered bank or trust company.

(b)           
Trustee shall maintain the Trust Account and the Trust Assets in the same manner as it maintains accounts and assets for its custodial
customers;

(c)            
The Trust Account is and at all times shall be maintained at an office of the Trustee located within the Unites States of America;
and

(d)           
Trustee is not a Parent, subsidiary or Affiliate of the Grantors or the Beneficiary.

 

Section 24. Parties’ Representations.

 

Each Party represents and warrants to the other
that it has full authority to enter into this Agreement upon the terms and conditions hereof and that the individual executing this Agreement
on its behalf has the requisite authority to bind such Party to this Agreement, and that the Agreement constitutes a binding obligation
of such Party enforceable in accordance with its terms.

 

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Section 25. Shareholder Communication Act.

 

With respect to securities issued in the
United States, the Shareholders Communications Act of 1985 (the “Act”) requires Trustee to disclose to the issuers, upon
their request, the name, address and securities position of the Retrocessionaire Grantor that is (a) the “beneficial
owners” (as defined in the Act) of the issuer’s securities, if the beneficial owner does not object to such disclosure,
or (b) acting as a “respondent bank” (as defined in the Act) with respect to the securities. (Under the Act,
 “respondent banks” do not have the option of objecting to such disclosure upon the issuers’ request). The Act
defines a “beneficial owner” as any person who has, or shares, the power to vote a security (pursuant to an agreement or
otherwise), or who directs the voting of a security. The Act defines a “respondent bank” as any bank, association or
other entity that exercises fiduciary powers which holds securities on behalf of beneficial owners and deposits such securities for
safekeeping with a bank, such as Trustee. Under the Act, Retrocessionaire Grantor is either the “beneficial owner” or a
 “respondent bank.”

 

[ 1 Retrocessionaire Grantor is the
 “beneficial owner,” as defined in the Act, of the securities to be held by Trustee hereunder.

[ 1 Retrocessionaire Grantor is not
the beneficial owner of the securities to be held by Trustee, but is acting as a “respondent bank,” as defined in the Act,
with respect to the securities to be held by Trustee hereunder.

IF NO BOX IS CHECKED, TRUSTEE SHALL ASSUME THAT DEPOSITOR IS THE
BENEFICIAL OWNER OF THE SECURITIES.

For beneficial owners of the securities only:

[ 1 Retrocessionaire Grantor
objects

[ 1 Retrocessionaire Grantor does not object

to the disclosure of its name, address and securities position to any issuer
which requests such information pursuant to the Act for the specific purpose of direct communications between such issuer and
Retrocessionaire Grantor.

 

IF NO BOX IS CHECKED, TRUSTEE SHALL RELEASE
SUCH INFORMATION UNTIL IT RECEIVES A CONTRARY WRITTEN INSTRUCTION FROM RETROCESSIONAIRE GRANTOR.

 

With respect to securities issued outside of the
United States, information shall be released to issuers only if required by law or regulation of the particular country in which the securities
are located.

 

The Retrocessionaire Grantor agrees to disseminate
in a timely manner any proxies or requests for voting instructions, other proxy soliciting material, information statements, and/or annual
reports that it receives to any other beneficial owners.

 

    91 

     

    

 

Section 26. Information Sharing.

 

The Bank of New York Mellon Corporation is a
global financial organization that operates in and provides services and products to clients through its affiliates and subsidiaries
located in multiple jurisdictions (the “BNY Mellon Group”). The BNY Mellon Group may (i) centralize in one or more
affiliates and subsidiaries certain activities (the “Centralized Functions”), including audit, accounting,
administration, risk management, legal, compliance, sales, product communication, relationship management, and the compilation and
analysis of information and data regarding Grantors and Beneficiary (which, for purposes of this provision, includes the name and
business contact information for the Grantors’ and Beneficiary’s employees and representatives) and the accounts
established pursuant to this Agreement (“Grantors’ and Beneficiary’s Information”) and (ii) use third party
service providers to store, maintain and process Grantors’ and Beneficiary’s Information (“Outsourced
Functions”). Notwithstanding anything to the contrary contained elsewhere in this Agreement and solely in connection with the
Centralized Functions and/or Outsourced Functions, Grantors and Beneficiary consent to the disclosure of, and authorize BNY Mellon
to disclose, Grantors’ and Beneficiary’s Information to (i) other members of the BNY Mellon Group (and their respective
officers, directors and employees) and to (ii) third-party service providers (but solely in connection with Outsourced Functions)
who are required to maintain the confidentiality of Grantors’ and Beneficiary’s Information. In addition, the BNY Mellon
Group may aggregate Grantors’ and Beneficiary’s Information with other data collected and/or calculated by the BNY
Mellon Group, and the BNY Mellon Group will own all such aggregated data, provided that the BNY Mellon Group shall not distribute
the aggregated data in a format that identifies Grantors’ and Beneficiary’s Information with Grantors and Beneficiary
specifically. Grantors and Beneficiary represent that Grantors and Beneficiary are authorized to consent to the foregoing and that
the disclosure of Grantors’ and Beneficiary’s Information in connection with the Centralized Functions and/or Outsourced
Functions, and to the best of their knowledge and belief, does not violate any relevant data protection legislation. Grantors and
Beneficiary also consent to the disclosure of Grantors’ and Beneficiary’s Information to governmental and regulatory
authorities in jurisdictions where the BNY Mellon Group operates and otherwise as required by law.

 

Section 27. Insolvency.

 

The Grantors and Beneficiary agree that the Assets
in the Trust Account may be withdrawn by the Beneficiary at any time, notwithstanding any other provisions in the LPT Agreements or other
agreement, and be utilized and applied by the Beneficiary or its successors in interest by operation of law, including without limitation
any liquidator, rehabilitator, receiver or conservator of the Beneficiary, without diminution because of the Beneficiary’s or the
Grantors’ insolvency, but only for the Permitted Purposes.

 

Section 28. Remedies.

 

In the event of any default hereunder, the non-defaulting
party may proceed to protect and enforce its rights either by suit in equity and/or by action at law, including, but not limited to, an
action for damages as a result of any such default. The rights and remedies provided herein shall be cumulative and not exclusive of any
rights or remedies provided by law.

 

Section 29. Reinsurance Contract.

 

Notwithstanding anything to the contrary herein
or in the LPT Agreements, in no event shall the rights and obligations of any Party hereunder be conditioned or dependent on or derivative
of any provisions of the Reinsurance Agreement. No modification, amendment, or revision of the Reinsurance Agreement shall affect the
terms and conditions hereof in any way.

 

Section 30. Counterparts; Electronic Execution

 

This Agreement may be executed in any number of
counterparts and by the different Parties on separate counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same instrument, and may be delivered by facsimile or other electronic means intended
to preserve the original graphic or pictorial appearance of a document, including portable document format (PDF) scan.

 

(signatures appear on the following page)

 

    92 

     

    

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement
to be executed and delivered by their respective officers hereunto duly authorized as of the date first above written.

 

	 	RETROCESSIONAIRE GRANTOR:
	 	 
	 	R&Q Bermuda (SAC) Limited, a Bermuda limited company, acting in respect of the HIIG Segregated Account
	 	 
	 	By:	                      
	 	Name: 	 
	 	Title: 	 
	 	 	 
	 	REINSURER GRANTOR:
	 	 
	 	HIIG Re, a Cayman Island captive
	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	 	 
	 	BENEFICIARY:
	 	 	 
	 	[                                      ], a Texas corporation
	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 

 

    93 

     

    

 

	 	TRUSTEE:
	 	 
	 	The Bank of New York Mellon
	 	 
	 	By: 	     
	 	Name: 	 
	 	Title: 	 

 

    94 

     

    

 

Schedule 1

 

TIN Numbers

 

    95 

     

    

 

Schedule 2

 

Telephone Number(s) for Call-Backs and

Person(s) Designated to Confirm Funds Transfer
Instructions

 

(Beneficiary Telephone Call-Back Persons)

 

	 

                                                                       

                                                                       

                                                                       

                                                                       
	 
	 

                                                                                 

                                                                                 

                                                                                 

                                                                                 
	 
	 

                                                                                 

                                                                                 

                                                                                 

                                                                                 
	 
	 

                                                                                 

                                                                                 

                                                                                 

                                                                                 
	 

 

Telephone call-backs shall be made to the Beneficiary as per above (or to such other designees as the Beneficiary may provide notice to
the other Parties) if joint instructions are required pursuant to the Agreement.

 

    96 

     

    

 

Schedule 3

 

Title and Account Number

 

    97 

     

    

 

EXHIBIT D

 

Roll Forward Methods

 

[***]

 

    98 

     

    

 

EXHIBIT E

 

Sample Calculation of Reinsurance Warranty

 

[***]

 

    99Exhibit 10.15

 

EXECUTION VERSION

 

INVESTMENT MANAGEMENT AGREEMENT

 

INVESTMENT MANAGEMENT AGREEMENT
(the "Agreement"), made as of the 13th day of January, 2016, among Houston Specialty Insurance Company, Imperium
Insurance Company and Great Midwest Insurance Company (collectively, the "Client") and Arena Investors, LP, a Delaware
limited partnership, as investment adviser (referred to herein as the "Investment Adviser").

 

WHEREAS, each of the Client's constituent entities
is a Texas-domiciled insurance company;

 

WHEREAS, the Client desires
to retain the Investment Adviser to perform certain investment management services with respect to an account containing a designated
portion of the Client's assets, which will consist of such cash and securities as the Client designates plus or minus such additions or
withdrawals as the Client shall make from time to time in accordance with this Agreement (the "Account"); and

 

WHEREAS, the Investment Adviser
desires to undertake to perform such services in respect of the Account pursuant to the terms and subject to the conditions of this Agreement.

 

NOW, THEREFORE, in consideration
of the premises and mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

 

1.            THE
ACCOUNT.

 

(a)            Account
Assets. On or about the date agreed upon between the Client and the Investment Adviser for the commencement of the investment of the
assets of the Account (the "Effective Date"), the Client will, subject to the terms hereof, establish the Account. The
Client shall maintain such Account and shall make capital available to the Investment Adviser in accordance with the terms hereof. The
assets in such Account, as altered from time to time by the investment, reinvestment or disposition thereof, are collectively referred
to herein as the "Account Assets."

 

(b)            Client
Ownership. Notwithstanding anything herein to the contrary, all Account Assets in the Account are assets of, and solely owned by,
the Client and remain such at all times. No right, duty, power or authorization granted to the Investment Adviser herein shall affect
or be deemed to affect in any manner the Client's sole ownership of all Account Assets.

 

(c)            Opening
of Bank Accounts; Appointment of Custodian. The Client hereby delegates to the Investment Adviser responsibility for opening up bank
accounts, engaging prime brokers and appointing a custodian recommended by the Investment Adviser (the "Custodian") in
respect of the Account. In connection therewith, the Client agrees to cooperate with the Investment Adviser and promptly provide any documentation
or signatures required in connection with opening such accounts, engaging such prime brokers and appointing the Custodian.

 

(d)            Transaction
Procedures. All transactions will be consummated by payment to, or delivery by, the Client or the Custodian, of all cash and/or
securities due to or from the Account. The Investment Adviser shall not act as custodian for the Account, but may issue such
instructions to the Custodian as may be appropriate in connection with the settlement of transactions initiated by the Investment
Adviser pursuant to Section 3 hereof. Instructions of the Investment Adviser to the Client and/or the Custodian shall be made
in writing sent by electronic mail or, at the option of the Investment Adviser, orally and confirmed in writing as soon as practical
thereafter, and the Investment Adviser shall instruct all brokers and dealers executing orders on behalf of the Account to
forward to the Client and/or the Custodian copies of all confirmations promptly after execution of transactions. The Investment
Adviser shall not be responsible for any loss incurred by reason of any act or omission of any broker or dealer or the Custodian; provided,
however, that the Investment Adviser will make reasonable efforts to require that brokers and dealers selected by the Investment
Adviser perform their obligations with respect to the Account.

 

     

     

    

 

(e)            Custodian
Responsibility. The Investment Adviser shall not be liable to the Client for (i) any failure of the Custodian to perform its
responsibilities to the Account, including, but not limited to, any losses that arise from the failure of the Custodian to notify the
Investment Adviser of any notices affecting called securities, deadline expirations, dates and capital reorganization events affecting
the securities in the Account or (ii) any liability or loss with respect to the transmittal or safekeeping of cash, securities or
other assets. It is understood that all transactions effected by the Investment Adviser for the Account shall be at the Client's expense
and risk, and the Client accepts responsibility for all indebtedness, losses, calls for payment and other liabilities sustained. The Client
shall promptly pay all costs and other amounts involved on demand.

 

2.            APPOINTMENT
OF THE INVESTMENT ADVISER. The Client hereby appoints the Investment Adviser to act as Investment Adviser for it in respect of the
Account for the period and on the terms set forth in this Agreement. By executing this Agreement, the Investment Adviser accepts such
appointment and agrees to render the services herein set forth for the compensation herein provided, including on Exhibit A
hereto.

 

3.            DUTIES
OF THE INVESTMENT ADVISER.

 

(a)            Subject
in each case to any requirement to obtain the Compliance Approval (as defined below) pursuant to Section 3(b), if applicable, the
Investment Adviser shall have, and is hereby granted the following discretionary authorities, powers, and rights, for the Account and
in the name of the Client in respect of the Account: buying, selling (including short selling), and trading, on margin or otherwise, any
Admitted Asset. For these purposes, an "Admitted Asset" means: (i) United States currency; (ii) bonds issues
by the State of Texas; (iii) bonds or other evidences of indebtedness of the United States the principal and interest of which are
guaranteed by the United States; (iv) bonds or other interest-bearing evidences of indebtedness of a country or municipality of the
State of Texas; (v) notes secured by first mortgages—(A) on otherwise unencumbered real property in the State of Texas
the title to which is valid and (B) the payment of which is insured wholly or partly by the United States; (vi) government obligations
of any state of the United States or a province of Canada; (vii) stock of national or state banks; (viii) deposits in Certain
Financial Institutions (as defined in the Texas Insurance Code); (ix) certain obligations of a partnership or corporation; (x) mutual
funds; (xi) real property; (xii) obligations secured by real property loans; (xiii) transportation equipment; (xiv) investment
in a foreign jurisdiction; (xv) certain loans on the pledge of any mortgage, stock, bond or other evidence of indebtedness acceptable
as an investment as long as the value of the collateral is 25% more than the amount of the loan; (xvi) obligations of Local Government
Entities (as defined in the Texas Insurance Code); (xvii) notes or bonds issued by the University of Texas; (xviii) bonds issues,
assumed or guaranteed in the international market; (xix) other bonds or notes specifically authorized by the Texas Insurance Code;
(xx) certain dollar roll, repurchase, reverse repurchase and securities lending transactions; (xxi) certain risk control transactions
(derivative instruments); (xxii) short term investment pools (strict limitations on types of investments in pool); and (xviii) other
assets as long as they are (A) not specifically identified within the Accounting Practices and Policies, or any subsequently promulgated
rules or regulations, of the Texas Insurance Code as a "nonadmitted asset" and (B) specifically identified within
the Accounting Practices and Policies, or any subsequently promulgated rules or regulations, of the Texas Insurance Code as an "admitted
asset."

 

    2 

     

    

 

(b)            Prior
to the purchase of, or entry into a short position in respect of, any Admitted Asset (each, a "Purchase Transaction"),
the Investment Adviser shall provide the Client reasonably in advance of any such Purchase Transaction sufficient information to enable
the Client to confirm that the Purchase Transaction complies with state insurance regulatory laws applicable to the Client. The Investment
Adviser shall not be authorized to enter into any such Purchase Transaction until the foregoing confirmations have been received (which
may be via email, facsimile or telephone) from the Client (such confirmations, the "Compliance Approval"). The Client
shall confirm its willingness or unwillingness to provide the Compliance Approval as soon as practicable after advance notice by the Investment
Adviser, it being understood that the Investment Adviser shall not be responsible for any losses that result from the Client's failure
to respond in a timely manner. For the avoidance of doubt, the Investment Adviser shall not be obligated to seek a new Compliance Approval
from the Client (i) as a result of any change in terms of a Purchase Transaction prior to the closing of such Purchase Transaction
unless there is a fundamental change in the underlying collateral or asset implicated by such Purchase Transaction or (ii) in connection
with the sale of any asset acquired pursuant to this Agreement. Each of the Client and the Investment Adviser agrees that upon the six
month anniversary of this Agreement, the Client and the Investment Adviser shall review and discuss in good faith the process and necessity
for obtaining the Compliance Approvals and eliminate or amend such process as mutually agreed upon by the Client and the Investment Adviser.

 

(c)            The
Investment Adviser is authorized to engage in loan origination activity.

 

(d)            Notwithstanding
Section 3(a), 3(b) and 3(c), the Investment Adviser's management of the Account shall be consistent with the Investment Guidelines
set forth in Exhibit B hereto.

 

(e)            The
Investment Adviser may cause the Client to open accounts (including cash or securities accounts) in the name of, or otherwise on behalf
of, the Client, with prime brokers, other broker-dealers, banks, futures commission merchants, any counterparty and custodians. Subject
to Section 1(c), the Investment Adviser shall have full discretionary authority over any such account and any assets therein and
may direct such counterparties, on behalf of the Client, to transfer or deploy such assets. Subject to its duty of best execution, the
Investment Adviser is not required to select the broker offering the lowest brokerage commission for any transaction and may take into
consideration other factors in selecting brokers for the Client's transactions.

 

(g)            Subject
to Section 3(b), the Investment Adviser is authorized to cause the Client to borrow monies from time to time (and to pledge, mortgage,
hypothecate or encumber the assets in the Account, and issue notes or other evidences of indebtedness, in connection therewith) through
leverage facilities entered into in advance or through margin provided by prime brokers, on such terms and subject to such conditions
as the Investment Adviser may determine but, in all cases, consistent with the Investment Guidelines set forth in Exhibit B
hereto. In connection therewith, the Client agrees to cooperate with the Investment Adviser and promptly provide any documentation or
signatures required in connection with such matters.

 

(g)            The
Investment Adviser shall allocate orders and investment opportunities among the Account and its other client and proprietary
accounts in accordance with the Investment Adviser's allocation policy and in accordance with its fiduciary duties to the Client and
the other client accounts. The Client acknowledges that while the Investment Adviser, its affiliates and their personnel will seek
to allocate orders and investment opportunities in a manner that they believe is equitable to all their clients and proprietary
accounts, such allocations may not necessarily be pro rata as to the Account and other participating entities and clients
(due to differing objectives, availability of investable funds or other considerations) and, thus, there can be no assurance that a
particular order or investment opportunity will be allocated in a particular manner. If conflicts arise in the allocation of
investment opportunities, the Investment Adviser shall seek to resolve such conflicts equitably. The Client acknowledges that the
foregoing policy does not require that each opportunity be made available to all accounts, leaving significant discretion to the
Investment Adviser.

 

    3 

     

    

 

(h)            Where
permitted by law, the Investment Adviser may aggregate orders occurring at approximately the same time, for the Account with its own orders,
those of any affiliated company or any other client orders. The Client acknowledges and agrees that such aggregation of orders may on
some occasions operate to the disadvantage of the Account.

 

(i)            With
the consent of the Client, the Investment Adviser may cause the Account to engage in transactions with affiliates of the Investment Adviser.

 

(j)            Subject
to Section 3(a) and 3(b), the Investment Adviser may from time to time form one or more partnerships, limited liability companies
or other types of entities that are owned in part by the Account or other accounts managed by the Investment Adviser or affiliates of
the Investment Adviser (each such entity or joint venture, an "Acquisition Vehicle"), the purpose of which is to purchase,
own or dispose of investments and to allocate participation in such investments among the Account and the Investment Adviser's other accounts;
provided that such Acquisition Vehicle shall not be subject to any additional management or performance fee.

 

(k)            The
Investment Adviser shall consider whether and in what manner all rights conferred by investments should be exercised and exercise such
rights accordingly. Without limiting the foregoing, but subject to Section 1(c), Section 3(a) and Section 3(b), the
Investment Adviser shall have the power on behalf of the Client to purchase, sell, exchange, transfer, lend (with or without security),
mortgage, pledge, hypothecate, and otherwise act to acquire, dispose of, and exercise all rights, powers, privileges and other incidents
of ownership or possession with respect to investments and other property or funds held or owned by the Client in the Account.

 

4.            ADDITIONAL
DUTIES OF THE INVESTMENT ADVISER.

 

(a)            The
investment management services of the Investment Adviser to the Client in respect of the Account under this Agreement are not exclusive
with respect to the Investment Adviser, and the Investment Adviser shall be free to provide similar services to others. It is agreed that
the Investment Adviser may give advice and take action with respect to such other clients or for its own account(s) that may differ
from the advice or the timing or nature of action taken with respect to the Account. Furthermore, the Investment Adviser shall have no
obligation to recommend for purchase or sale for the Account any asset that the Investment Adviser or an affiliate may purchase, sell
or originate for its own account or for the account of any of their respective clients.

 

(b)            The
Investment Adviser shall not be liable to the Client or to any of the Client's affiliates or beneficial owners for any claim, loss, cost,
indebtedness, liability, settlement or expense (including, without limitation, court costs, attorneys' fees and expenses, costs of investigation,
expert witness fees, taxes and penalties) suffered by any such person that arises out of any action or inaction of the Investment Adviser,
any of is respective affiliates, any Independent Representative, as applicable, if such person's course of conduct did not constitute
willful misconduct, gross negligence, fraud or criminal wrongdoing in or about the conduct of the Investment Adviser's business or affairs
on behalf of the Account or in the execution or discharge of such person's duties, powers, authorities or discretions (the "Standard
of Care").

 

(c)            The Investment Adviser shall determine how
to vote (or not vote) proxies in connection with the Account in a manner consistent with (i) its fiduciary duty to the Client
in respect of the Account and (ii) its policies and procedures in respect of proxy voting, as disclosed in the Investment
Adviser's Form ADV Part 2A.

 

(d)            The
Investment Adviser shall use commercially reasonable efforts to provide the Client with a statement each month end for the Account within
20 days after month end, calculated according to the General Accepted Accounting Principles.

 

    4 

     

    

 

5.            COMPENSATION.

 

(a)            A
management fee is calculated and deducted from the Account monthly in advance on the first day of each month and paid to the Investment
Adviser or its affiliates in an amount equal to [***]% ([***]% per annum) of the balance of the Account payable on the first day of each
month as described in the Schedule of Fees attached as Exhibit A hereto (the "Management Fee").

 

(b)            Further,
a performance fee is calculated as of December 31 of each year and upon the date of any disposition of Set Aside Assets in connection
with a withdrawal request and deducted from the Account equal to [***]% of the net profits for such period (including net profits on unrealized
gains), subject to a "high water mark" provision, as described in the Schedule of Fees attached Exhibit A hereto
(the "Performance Fee" or "Set Aside Fee").

 

(c)            The
Client, through the execution of this Agreement, hereby provides its consent to the terms of the Schedule of Fees attached as Exhibit A
hereto.

 

6.            EXPENSES.

 

(a)            Except
as provided in Section 6(b) and Section 6(c) below, the Investment Adviser shall bear all of its separate expenses
arising out of its duties hereunder, including all of its general overhead expenses (which include the rent of the offices which the Investment
Adviser will occupy, compensation and benefits of the administrative staff of the Investment Adviser, maintenance of its books and records,
and its fixed expenses, telephones, and general purpose office equipment).

 

(b)            The
Client shall bear all of its own operating and investment expenses including, but not limited to: the fees as set forth on the Schedule
of Fees attached hereto as Exhibit B; brokerage commissions; expenses relating to short sales; hedging expenses; clearing and settlement
charges; custodial fees; bank service fees; administrative expenses; valuation and appraisal expenses; interest expenses; financing costs;
investment-related expenses, including travel (both private and commercial) and due diligence expenses; professional fees relating to
investments (including expenses of attorneys, consultants and experts); other costs, fees and expenses incurred in connection with the
investigation, development, acquisition, consummation, ownership, maintenance, monitoring, hedging or disposition of investments; origination
fees; costs of trade breaks; costs of trade errors to the extent consistent with the Investment Adviser's Trade Error Policy; expenses
related to organizing and structuring any blockers of special purpose vehicles; tax structuring costs; costs of joint venture servicing;
risk management expenses; legal fees and compliance expenses; expenses related to or in connection with any governmental inquiry, investigation
or proceeding involving the Account, including the amounts of any judgments, settlements or fines paid in connection therewith; accounting
and operations expenses (including the cost of accounting software packages); extraordinary expenses (including litigation, indemnification
and contribution expenses); expenses related to unconsummated investments, transactions or joint venture arrangements; out-of-pocket
expenses of asset management personnel; third party administrator expenses; insurance costs; fees and expenses of sub-advisers; cost
of software in connection with investments (including fees of third party software developers); costs of relevant non-accounting
software; expenses relating to quantitative analysis and software management services; fees and expenses of servicers of specific assets
owned by the Account; costs of research, information systems, software and hardware; costs of participations and other forms of compensation
provided to deal finders or sourcers; costs of other service providers to the Account, including the Investment Adviser's affiliate,
Arena Management Co., LLC, in connection with its services to the Investment Adviser in respect of the Account (provided, for
the avoidance of doubt, except as provided in Section 6(c) below, the salaries of the Investment Adviser's employees (whether
employed directly or through service agreements with AMC), rent and other normal operating overhead of the Investment Adviser and its
affiliates shall not be borne by the Account); costs of third parties that approve affiliated transactions and possibly other conflicts
involving the Account (including the Independent Representative); and costs and expenses associated with the preparation and distribution
of periodic reports to the Client. To the extent such costs, fees or expenses are incurred for the benefit of both the Account and other
entities managed by the Investment Adviser or its affiliates, the Investment Adviser shall make a good faith allocation of such costs,
fees or expenses among the Account and such entities.

 

    5 

     

    

 

(d)            Affiliates
of the Investment Adviser may charge the Account a fee in connection with the management and servicing of certain portions of the Account's
loan portfolio. This fee is in addition to the Management Fee already borne by the Account and will be used to facilitate the Investment
Adviser or its affiliates in engaging personnel and incurring other overhead costs to manage loans in lieu of hiring an unaffiliated third-party
service provider to provide these services. Any fee payable to the Investment Adviser or its affiliates will be comparable to a fee that
a qualified independent third-party service provider would have charged to the Account for such services.

 

(e)          The
Client shall promptly reimburse the Arena Parties (as defined below) for any costs and expenses set forth in Section 6(b) incurred
by the Arena Parties on behalf of the Account. "Arena Party" means the Investment Adviser, any affiliate of the Investment
Adviser and any member, partner, shareholder, director, officer, employee or agent of the Investment Adviser or any such affiliate. Client
hereby authorizes the Custodian and agrees to cause the Custodian to reimburse such amounts to the Arena Parties to ensure the Client's
compliance with this provision.

 

(f)            The
Investment Adviser shall not be responsible for litigation costs and other extraordinary expenses of the Client.

 

7.            WITHDRAWALS.

 

a)            The
Client shall have the right to make withdrawals from the Account in amounts designated by the Client (the "Withdrawal Amount")
to be effective as of the last business day of any calendar month (each, a "Withdrawal Date"); provided that a
written notice requesting such Withdrawal Amount (the "Withdrawal Notice") is provided to the Investment Adviser no later
than ten (10) business days before the Withdrawal Date; provided, that any withdrawal that would bring the Account balance
below the lesser of (i) $10,000,000 and (ii) 20% of the net asset value of the Account Assets as of the last month end shall
be deemed a termination of this Agreement pursuant to Section 11. Subject to the authority of the Investment Adviser to retain amounts
already designated for investment in a new investment, a follow-on investment or the satisfaction of anticipated expenses related to the
Account, including for payment of taxes by the Client (as long as the need for such amount to satisfy tax liabilities has been communicated
to the Investment Adviser at least 90 days in advance) (the "Reserve"), any Account Assets constituting cash or temporary
cash equivalents as of such Withdrawal Date shall be used to satisfy such Withdrawal Amount and, to the extent so applied, the Agreement
shall be deemed terminated in respect of such amounts.

 

    6 

     

    

 

b)            To
the extent the cash and temporary cash equivalents in the Account as of the Withdrawal Date are insufficient to satisfy the Withdrawal
Amount in full as of the Withdrawal Date, the Investment Adviser will designate the portion of such Withdrawal Amount attributable to
assets that the Investment Adviser determines in its sole discretion cannot be readily liquidated (such portion of the Withdrawal Amount
together with any Reserve, the "Set Aside Portion" and the related assets, the "Set Aside Assets").
Following the Withdrawal Date, the Set Aside Portion will not participate in any new Account Assets or follow-on investments in respect
of existing Account Assets, but the related Set Aside Assets shall be managed in the same manner as for other clients of the Investment
Adviser participating in such Account Assets and the Account will participate in any profits or losses associated with such Set Aside
Assets. For the avoidance of doubt, such Set Aside Assets will be liquidated at the same time on behalf of all clients of the Investment
Adviser, including the Client, and shall not be liquidated prematurely on behalf of the Client or its Account. Each Set Aside Asset will
be tracked separately and to the extent any follow-on investment is made by the Account in such asset, it shall be treated as a new or
separate Account Asset for purposes of allocating profits and losses in respect thereof.

 

c)            As
and when the Set Aside Assets corresponding to the Set Aside Portion are realized (each such asset, a "Realized Set Aside Asset")
or other payments are received by the Account attributable to such Set Aside Assets (including, but not limited to, dividends, principal
and interest received in respect thereof), the Custodian shall distribute to the Client its Set Aside Percentage of the proceeds of such
Realized Set Aside Asset, less (i) any additional reserve the Investment Adviser determines in its sole discretion may be
necessary to satisfy liabilities (including future Management Fees in respect of any remaining Set Aside Portion) in respect of the remainder
of such Set Aside Portion, (ii) any accrued Management Fees, and allocated expenses (to the extent not already paid from other sources)
based on the Account's Set Aside Percentage of such Set Aside Asset, and (iii) any Set Aside Fee then payable pursuant to Exhibit A.
Following such distribution, the Agreement shall be deemed terminated in respect of such amounts.

 

d)            Following
any Withdrawal Date, a set aside percentage (a "Set Aside Percentage") shall be determined for the withdrawal equal to
the Account's percentage participation in any Set Aside Assets in which other clients participate immediately prior to such Withdrawal
Date multiplied by the percentage of such Account sought to be withdrawn. Profits and losses in respect of the Account's Set Aside
Assets will be allocated based on the Account's Set Aside Percentage.

 

8.            INDEMNITY.

 

(a)            The
Client shall indemnify to the fullest extent permitted by applicable law, out of its assets, the Investment Adviser and its affiliates,
partners, directors, shareholders, officers, controlling persons, employees (and their respective affiliates, directors, shareholders,
officers, controlling persons, employees, and agents), and agents (each of the foregoing being an "Indemnified Party")
against any liabilities, claims, and expenses, including amounts paid in satisfaction of judgments, in compromise, or as fines and penalties,
and counsel fees and expenses reasonably incurred by such Indemnified Party in connection with the defense or disposition of any action,
suit, or other proceeding, whether civil or criminal, before any court or administrative or investigative body, in which such Indemnified
Party may be or may have been involved as a party or otherwise or with which such Indemnified Party may be or may have been threatened,
in connection with this Agreement; except that, no Indemnified Party shall be indemnified hereunder against any liability or any expense
of such Indemnified Party arising by reason of its violation of the Standard of Care.

 

(b)            The
Client shall make advance payments in connection with the expenses of defending any action with respect to which indemnification
might be sought hereunder if the Client receives (i) a written affirmation of the Indemnified Party's good faith belief that
the standard of conduct necessary for indemnification has been met and (ii) a written undertaking by or on behalf of the
Indemnified Party to repay the amount paid or reimbursed if it shall ultimately be determined that such Indemnified Party is not
entitled to be indemnified hereunder. Such obligation to make advance payments shall be on a pro rata basis based on the relative
net asset values of the Account Assets to other funds or clients of the Investment Adviser from which indemnification is sought.

 

    7 

     

    

 

(c)          All
determinations with respect to indemnification hereunder shall be made pursuant to Section 16 of this Agreement. All determinations
to advance payment in connection with the expense of defending any proceeding shall be made in accordance with Section 8(b).

 

(d)            The
rights accruing to any Indemnified Party under the provisions of this Section 8 shall not exclude any other right to which such Indemnified
Party may be lawfully entitled.

 

(e)            The
provisions of this Section 8 shall survive the termination of this Agreement or the termination of the services of the Investment
Adviser.

 

The indemnification and exculpation
provisions herein shall not be construed as a waiver of any rights of the Client under the U.S. securities laws.

 

9.            REPRESENTATIONS
AND WARRANTIES.

 

(a)            The
Client represents, warrants and agrees to the following:

 

(i)            The
Client is duly organized, validly existing and in good standing (where such concept exists) under the laws of its jurisdiction of incorporation
or formation and has all requisite power and authority to own its property, to conduct its business as currently conducted and to execute
and deliver, and to perform its obligations under, this Agreement.

 

(ii)            This
Agreement has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of the Client,
enforceable against such party in accordance with its terms.

 

(iii)            The
execution and delivery of, and the performance by the Client of its obligations under this Agreement do not and will not result in a breach
or constitute a violation of, conflict with, or constitute a default under, the certificate of incorporation or bylaws of the Client or
any agreement or instrument to which it is a party or by which it or any of its property is bound, which breach, violation, conflict or
default could have a material adverse effect on its ability to perform its obligations under this Agreement.

 

(iv)            The
Client acknowledges the receipt of the Investment Adviser's Form ADV Part 2A and Part 2B on or prior to the Effective Date.
The Client has reviewed the Investment Adviser's Form ADV Part 2A and Part 2B and acknowledges and understands the conflicts
of interest disclosed therein.

 

(v)            The
Client has carefully reviewed, understands and has agreed to the Schedule of Fees set forth in Exhibit A hereto, the
Investment Guidelines set forth in Exhibit B hereto, Certain Conflicts of Interest set forth in Exhibit C
hereto and Certain Risk Factors set forth in Exhibit D hereto. The Client has substantial knowledge and experience in
business and financial matters. The Client can afford to bear the risks of the Investment Adviser's management of the
Account, including the risk of losing the entire Account balance.

 

    8 

     

    

 

(vi)            The
Client is and during the term of this Agreement will remain a "qualified purchaser" as defined in Section 2(a)(51)(A) of
the U.S. Investment Company Act of 1940, as amended, and the rules promulgated thereunder and a "qualified institutional buyer"
as defined in Rule 144A of the Securities Act. Further, the Client is an "Eligible Contract Participant" as defined under
the Commodity Exchange Act.

 

(vii)            The
Client has relied on the advice of its own professional advisers and is fully informed as to the legal, financial and tax aspects of the
Investment Adviser's management of the Account.

 

(viii)            No
assets of the Account constitute assets of (i) an employee benefit plan as defined in and subject to Title I of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), (ii) a plan as defined in and subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the "Code"), (iii) a governmental, church or non-U.S. plan subject to any Federal, State,
local or non-U.S. law substantially similar to Section 406 of ERISA or Section 4975 of the Code (each of the foregoing, a "Plan"),
or (iv) any entity the assets of which constitute assets of any such Plan.

 

(ix)            The
Client is not a foreign person, foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined
in the Code and Treasury Regulations).

 

(x)            The
Client represents and warrants that it is aware that the Investment Adviser and their affiliates may, on behalf of the Account, effect
transactions (known as "cross trades") in which the Investment Adviser or one of their affiliates also is acting for other parties
(including, without limitation, other funds or pooled investment vehicles established or advised by the Investment Adviser and their affiliates,
such as funds for their employees) on the other side of the same transaction (including circumstances where the Investment Adviser or
one of their affiliates acts as broker for both sides of the transaction), and may have a potentially conflicting division of loyalties
and responsibilities regarding the Account and the other parties to the transaction. By executing this Agreement, the Client hereby authorizes
and consents to any and all of the foregoing transactions, including any exercise by the Investment Adviser of its right to consent to
such transactions on behalf of the Account, and agrees that it has read, understood and accepts the conflicts of interests described in
Exhibit D. Further, the Client understands that because a portion of the Account's strategy may involve frequent acquisitions
of loans originated by an affiliate of the Investment Adviser, AOC, or other affiliated parties, and the possible sale of a portion of
those loans to affiliated clients of the Investment Adviser, certain conflict resolution procedures may be implemented to provide for
the review of, and consent to, such transactions on behalf of the Account.

 

(xi)            The
Client understands that the Investment Adviser is indirectly owned and controlled by The Westaim Corporation
("Westaim"), a Canadian corporation. In addition, Subscriber understands that Bernard Partners, LLC
("BernardCo"), an entity owned by Daniel Zwirn and certain other members of the management team of the Investment
Adviser, may eventually earn a majority equity interest in the Investment Adviser, after which Westaim may retain certain veto
rights over extraordinary actions designed to protect Westaim's economic interests in the Investment Adviser. The Investment
Adviser does not anticipate that the change in equity ownership will have any effect on the day-to-day management or investment
decision-making of the Investment Adviser, which are expected to remain with BernardCo. To the extent any such change in the equity
ownership of the Investment Adviser represents an "assignment" or change of control within the meaning of the Advisers
Act, the Client hereby consents to such assignment or, alternatively, consents to an independent representative with relevant
experience, to provide consent to such assignment or change of control on behalf of the Client. The Client understands and agrees
that any such consent given on its behalf will be binding on it and the Account.

 

    9 

     

    

 

(xii)            The
Client represents and covenants that neither the Client, nor any person controlling or controlled by the Client, nor any
person having a beneficial interest in the Account, is a Prohibited Investor1, and that the Account is not investing on
behalf, or for the benefit, of any Prohibited Investor. Neither the Client nor any director, officer, partner, member, affiliate,
or, if the Client is an unlisted company, any shareholder or beneficial owner of the Client is a Senior Foreign Political
Figure,2 any member of a Senior Foreign Political Figure's Immediate Family3 or any Close
Associate4 of a Senior Foreign Political Figure unless the Client has notified the Investment Adviser of such fact. The
Client is not resident in, or organized or chartered under the laws of, a jurisdiction that has been designated by the Secretary of
the Treasury under Section 311 of the USA PATRIOT Act as warranting special measures due to money laundering concerns.5 The
Account funds do not originate from, nor were they routed through, an account maintained at a Foreign Shell Bank,6 an
offshore bank, a bank organized or chartered under the laws of a jurisdiction
that has been designated by FATF as noncooperative with international anti-money laundering principles or a financial institution subject
to special measures under Section 311 of the USA PATRIOT Act. If the Client or any person controlling, controlled by, or under common
control with the Client is organized under the laws of a country other than the United States to engage in the business of banking, the
Subscriber or such person, as the case may be, either: (i) has a Physical Presence' in a country in which the Client (or such person)
is authorized to conduct banking activities, at which address the Subscriber (or such person): (x) employs one or more persons on
a full-time basis, (y) maintains operating records relating to its banking business, and (z) is subject to inspection by the
banking authority from which it obtained its banking license; or (ii) is affiliated with a financial institution that maintains a
Physical Presence in the United States or another country and is subject to supervision by a banking authority regulating such affiliated
financial institution.

 

 

1“Prohibited Investors” include:
(1) a person or entity whose name appears on the list of Specially Designated Nationals and Blocked Persons maintained by the Office
of Foreign Assets Control ("OFAC") or prohibited under OFAC country sanctions, or any blocked persons list maintained
by the SEC or other governmental or regulatory body as may become applicable to the General Partner and Arena, (2) any Foreign Shell
Bank, (as defined below), and (3) any person or entity resident in or whose subscription funds are transferred from or through an
account in a jurisdiction that has been designated as non-cooperative with international anti-money laundering principles or procedures
by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering ("FATF"),
of which the U.S. is a member and with which designation the U.S. representative to the group or organization continues to concur. See
http://www.fatf-gafi.org for FATF's list of Non-Cooperative Countries and Territories.

 

2“Senior
Foreign Political Figure” means a current or former senior political official in the executive, legislative, administrative,
military or judicial branches of a non-U.S. government (whether elected or not), a current or former senior official of a major non-U.S.
political party, or a current or former senior executive of a non-U.S. government-owned corporation. In addition, a Senior Foreign Political
Figure includes any corporation, business or other entity that has been formed by, or for the benefit of, a Senior Foreign Political Figure.

 

3“Immediate
Family” with respect to a Senior Foreign Political Figure, typically includes the political figure's parents, siblings, spouse,
children and in-laws.

 

4"Close
Associate" means, with respect to a Senior Foreign Political Figure, a person who is widely and publicly known internationally
to maintain an unusually close relationship with the Senior Foreign Political Figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure.

 

5Notice
of jurisdictions that have been designated by the Treasury Department as a primary money laundering concern under
Section 311 are published in the Federal Register and on the website of the Treasury Department's Financial Crimes
Enforcement Network ("FinCEN") at http://www.fincen.gov/reg section311.html. FinCEN also issues advisories
regarding jurisdictions that it deems to be deficient in their counter-money laundering regimes. Such advisories
are posted at http://www.fincen.gov/pub main.html.

 

6
 "Foreign Shell Bank" means a Foreign Bank without a Physical Presence (each as defined below) in any country, but does
not include a Regulated Affiliate (as defined below).

 

"Foreign Bank" means
an organization that (i) is organized under the laws of a country outside the United States; (ii) engages in the business of
banking; (iii) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal
banking operations; (iv) receives deposits to a substantial extent in the regular course of its business; and (v) has the power
to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank.

 

"Physical Presence"
means a place of business that is maintained by a Foreign Bank and is located at a fixed address, other than solely a post office box
or an electronic address, in a county in which the Foreign Bank is authorized to conduct banking activities, at which location the Foreign
Bank: (i) employs one or more individuals on a full-time basis; (ii) maintains operating records related to its banking activities;
and (iii) is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities.

 

"Regulated Affiliate"
means a Foreign Shell Bank that: (i) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a
Physical Presence in the U.S. or a foreign country, as applicable; and (ii) is subject to supervision by a banking authority in the
country regulating such affiliated depository institution, credit union, or Foreign Bank.

 

    10 

     

    

 

 

(xiii)            The
Client represents that (i) neither the Client nor any person who has discretionary authority to cause the Client to enter into this
Agreement is an associated person of a firm that is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA")
(f/k/a the National Association of Securities Dealers, Inc.); or (ii) if the Subscriber or any person who has discretionary
authority to cause the Client to enter into this Agreement is an associated person of a firm that is a member of FINRA, the associated
person has informed the FINRA member firm with which it is associated of this Agreement and has not been advised by such member that it
may not enter into this Agreement.

 

(b)            The
Investment Adviser represents warrants and agrees to the following:

 

(i)            It
is duly organized, validly existing and in good standing (where such concept exists) under the laws of its jurisdiction of incorporation
or formation and has all requisite power and authority to own its property, to conduct its business as currently conducted and to execute
and deliver, and to perform its obligations under, this Agreement.

 

(ii)            This
Agreement has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of the Investment
Adviser, enforceable against such party in accordance with its terms. 

 

(iii)            The
execution and delivery of, and the performance by the Investment Adviser of its obligations under this Agreement do not and will not result
in a breach or constitute a violation of, conflict with, or constitute a default under, the certificate of incorporation or bylaws of
the Investment Adviser or any agreement or instrument to which it is a party or by which it or any of its property is bound, which breach,
violation, conflict or default could have a material adverse effect on its ability to perform its obligations under this Agreement.

 

    11 

     

    

 

10.            CONFIDENTIALITY.

 

(a)            All
information with respect to the business and assets of the Account, the Investment Adviser and their affiliates shall be presumed confidential
and proprietary unless the Client and the Investment Adviser otherwise so indicate in writing. The Client covenants that the Client shall
at all times keep confidential and not, directly or indirectly, disclose, divulge, furnish or make accessible to anyone, or use in any
manner that would be adverse to the interests of the Account or the Investment Adviser, any confidential or proprietary information to
which the Client has been or shall become privy relating to the business or assets of the Account or the Investment Adviser except with
the prior written approval of the Investment Adviser, or as required by law or regulation, or except for information that is otherwise
publicly available (other than information made publicly available by the Client relying on this exemption in disclosing such information)
or required to be disclosed by law.

 

(b)            The
Investment Adviser covenants that the Investment Adviser shall at all times keep confidential and not, directly or indirectly, disclose,
divulge, furnish or make accessible to anyone, or use in any manner that would be adverse to the interests of the Account or the Client,
the identity of the Client or the terms of this Agreement, except in connection with the Investment Adviser's performance under this Agreement,
with the prior written approval of the Client, or except for information that is otherwise publicly available (other than information
made publicly available by the Client relying on this exemption in disclosing such information) or required to be disclosed by law or
to comply with governmental or regulatory request or court order or in order to enforce rights under this agreement.

 

(c)            Before
any disclosure of information otherwise subject to this paragraph on the grounds that such information has otherwise become publicly available
or that such disclosure is required by law, the Client shall so inform the Investment Adviser and shall give the Investment Adviser, to
the greatest extent reasonably practicable, an opportunity to contest whether such information has in fact otherwise been made publicly
available or is required by law to be disclosed. The Client shall only disclose such information if, and to the extent that, such disclosure
is affirmatively determined to be permitted on the basis of such information otherwise having been so made publicly available or the disclosure
being required by law. To the extent that it has been reasonably determined that information must be provided to the Texas Department
of Insurance ("TDI"), such information will be redacted before being provided to TDI in a manner that ensures the Investment
Adviser's compliance with its confidentiality obligations with respect to any third parties. If TDI will not accept redaction of such
information, then Client shall indemnify the Investment Adviser for any liabilities, claims and expenses arising in connection with the
provision of such information in a manner consistent with its indemnification obligations set forth in Section 8.

 

(d)            The
Client may, however, share such information with the Client's investment advisers (only to the extent necessary for the protection of
the Client), beneficial owners, board members, accountants and attorneys ("Permitted Confidants"); provided, that the
Client's Permitted Confidants undertake to hold such information strictly confidential to the same extent set forth herein, and not in
any manner or respect to use any of such information for their personal gain; and provided further, that the Client accepts full liability for any unauthorized
use or disclosure of such information by the Client's Permitted Confidants.

 

    12 

     

    

 

11.            DURATION
AND TERMINATION.

 

(a)            This
Agreement shall become effective on the Effective Date and shall remain in full force and effect until the twelfth month-end following
the Effective Date. Thereafter, unless otherwise terminated, this Agreement will automatically be renewed for subsequent twelve-month
terms.

 

(b)            Either
party may terminate this Agreement at any time by providing not less than 120 days' and not more than 180 days' prior written notice of
termination to the other party.

 

(c)            A
termination of this Agreement shall be treated as a withdrawal of the entirety of the Account balance and the provisions of Section 7
shall apply such that (i) the Investment Adviser will cease reinvesting the positions in the Account, (ii) the Account shall
be subject to a Performance Fee as of the date of such termination, (iii) all cash assets and cash equivalents shall be promptly
made available to the Client and (iv) any remaining positions shall be treated as Set Aside Assets subject to the provisions of Section 7
(including with respect to the continued application of the Management Fee and the application of the Set Aside Fee).

 

(d)            Any
notice of termination shall have no effect upon the liabilities and commitments initiated, made, or accrued prior to the effective date
of termination. Any obligations for acts or activities under this Agreement that are incurred prior to its termination shall survive any
termination hereof.

 

(e)            Notwithstanding
the foregoing provisions of this Section 11, each of the Client and the Investment Adviser acknowledges and agrees that this Agreement
may not be terminated during any period in which the Client is in receivership pursuant to Tex. Ins. Code Chapter 443 and during such
period, the Investment Adviser will continue to maintain any systems, programs or other infrastructure used in connection with managing
the Account Assets and will make them reasonably available to the receiver upon its request for so long as the Investment Adviser continues
to receive timely payment of the management fee and is otherwise reimbursed for the costs and expenses of continuing to manage the Account
Assets.

 

12.            SERVICE
TO OTHER CLIENTS AND OUTSIDE BUSINESS ACTIVITIES.

 

(a)            It
is understood that the Investment Adviser performs investment advisory services for various clients and manages its own proprietary accounts.
The Client agrees that the Investment Adviser may give advice and take action with respect to any of its other clients or the Investment
Adviser's proprietary accounts which may differ from advice given or the timing or nature of action taken with respect to the Account,
so long as it is the Investment Adviser's policy, to the extent practical, to allocate investment opportunities to the Account over a
period of time on a fair and equitable basis relative to other clients and proprietary accounts. It is understood that the Investment
Adviser shall not have any obligation to purchase or sell, or to recommend for purchase or sale, for the Account any security which the
Adviser, its principals, affiliates or employees may purchase or sell for its or their own accounts or for the account of any other client,
if in the opinion of the Investment Adviser such transaction or investment appears unsuitable, impractical or undesirable for the Account.

 

(b)            Except
to the extent of any restrictions prescribed by law, the Investment Adviser and its officers, employees and beneficial owners shall be
free from time to time to acquire, possess, manage, and dispose of securities or other investment assets for their own accounts, for the
accounts of their families, for the account of any entity
in which they have a beneficial interest or for the accounts of others for whom any of the foregoing may provide investment advisory,
brokerage or other services in transactions which may or may not correspond with transactions effected or positions held in the Account;
provided, however, that the Investment Adviser shall not cause the Client to purchase any asset from or sell any asset to the Investment
Adviser or any of its officers or employees or any account or entity controlled by such persons without the Client's consent, which may
be obtained via the procedures described under Section 3(i) above.

 

    13 

     

    

 

13.            NO
PERSONAL LIABILITY. Except as expressly set forth in this Agreement, each of the Client and the Investment Adviser understands and
agrees that other persons not parties hereto, including but not limited to the directors and officers of such parties, shall not personally
be bound by or liable hereunder, nor shall any resort to their personal property be had for the satisfaction of any obligation or claim
hereunder.

 

14.            INSURANCE
REGULATORY ACKNOWLEDGMENT. Each of the Client and the Investment Adviser acknowledges and agrees that if the Client is placed in receivership
or seized by the commissioner under Tex. Ins. Code Chapter 443, then the Client shall notify the Investment Adviser as soon as practicable
of such event, all of the rights of the Client under this Agreement will extend to the receiver or the commissioner and, following any
written request therefor, all books and records will be made available to the receiver or the commissioner as soon as practicable and
upon the receiver or the commissioner's request, copies thereof will be turned over to the receiver or commissioner as soon as practicable.

 

15.            INDEPENDENT
CONTRACTOR STATUS. The Investment Adviser shall for all purposes herein be deemed to be an independent contractor and shall, unless
otherwise expressly provided herein or authorized by the Client from time-to-time, have no authority to act for or represent the Client
in any way or otherwise be deemed an agent of the Client.

 

16.            GOVERNING
LAW; ARBITRATION. Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly
agree that this Agreement, and all terms and provisions hereof, shall be governed by and construed in accordance with the internal laws
of the State of New York (without conflicts of laws principles) applicable to agreements made and to be performed in New York. Any dispute,
controversy or claim arising out of or in connection with or relating to this Agreement or any breach or alleged breach hereof shall be
submitted to, and determined and settled by, arbitration in New York, New York, pursuant to the Comprehensive Arbitration Rules of
the Judicial Arbitration and Mediation Services, and judgment upon any such arbitral award rendered may be entered in any court having
jurisdiction thereof.

 

17.             NOTICES.
Unless otherwise specified in this Agreement, all notices or other communications that the Investment Adviser or the Client may
desire or be required to give hereunder shall be in writing and shall be personally delivered, delivered by facsimile transmission,
mailed by certified or registered mail, sent by overnight delivery by a reputable private carrier or postal service or transmitted
by e-mail in accordance with the provisions below.

 

If to the Investment Adviser:

 

Arena Investors, LP 

405 Lexington Avenue, 59th floor

New York, New York 10174

United States

 

Email:
[***] and [***]

 

Attn: Lawrence Cutler and Marcel Herbst

 

    14 

     

    

 

If to the Client:

 

HIIG Service Company

800 Gessner, Suite 600

Houston, TX 77024

United States

 

Email:
[***]

 

Attn: Mark Haushill

 

18.            NO
THIRD PARTY BENEFICIARY RIGHTS. The provisions of this Agreement are intended solely for the benefit of the Client and
the Investment Adviser and, to the fullest extent permitted by law, shall not be construed as conferring any benefit upon any
creditor or receiver of the Client (and no such creditor or receiver shall be deemed a third party beneficiary of this
Agreement).

 

19.            ASSIGNMENT.

 

(a)            This
Agreement may not be assigned, in whole or in part, by any party to this Agreement without the prior written consent of the other party
hereto. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding on the parties hereto and their successors
and permitted assigns, in each case provided that such successor or assignee agrees to be bound by the terms and conditions of this Agreement.

 

(b)            Notwithstanding
Section 19(a), this Agreement may be assigned, in whole or in part, by the Investment Adviser to one or more affiliates of the Investment
Adviser upon notice to the Client, whereupon the assignee shall be substituted for the Investment Adviser hereunder and the Investment
Adviser shall have no further liability or obligation hereunder, on condition that such assignment does not constitute an "assignment"
for purposes of Section 205(a)(2) of the Investment Advisers Act of 1940, as amended.

 

20.            ENTIRE
AGREEMENT. This Agreement constitutes the entire agreement between the parties hereto with respect to the matters referred to
herein, and no other agreement, verbal or otherwise, shall be binding as between the parties unless it shall be in writing and
signed by the party against whom enforcement is sought.

 

21.            AMENDMENT;
WAIVER. This Agreement shall not be amended except by a writing signed by the parties hereto. No waiver of any
provision of this Agreement shall be implied from any course of dealing between the parties hereto or from any failure by any party hereto
to assert its rights hereunder on any occasion or series of occasions.

 

    15 

     

    

 

22.            COUNTERPARTS.
This Agreement may be executed in any number of identical counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same agreement as if the signatures to each counterpart were upon a single instrument. This
Agreement shall become effective when counterparts have been signed by each party and delivered to the other parties, provided that a
facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and
effect as if the signature were an original and not a facsimile signature.

 

23.            HEADINGS.
Headings to sections herein are for the convenience of the parties only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

 

24.            SEVERABILITY.
If any provision of this Agreement, or the application of any provision to any person or circumstance, shall be held to be inconsistent
with any present or future law, ruling, rule, or regulation of any court or governmental or regulatory authority having jurisdiction over
the subject matter hereof, such provision shall be deemed to be rescinded or modified in accordance with such law, ruling, rule, or regulation,
and the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it
shall be held inconsistent, shall not be affected thereby.

 

    16 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused the foregoing instrument to be executed as of the date first stated above.

 

	 	HOUSTON SPECIALTY INSURANCE COMPANY

 

		By:	/s/ Cynthia L. Casale

	 	Name: 
	 	Title:

 

	 	IMPERIUM INSURANCE COMPANY

 

		By:	/s/ Cynthia L. Casale

	 	Name: 
	 	Title:

 

	 	GREAT MIDWEST INSURANCE COMPANY

 

		By:	/s/ Cynthia L. Casale

	 	Name: 
	 	Title:

 

	 	ARENA INVESTORS, LP

 

		By:	/s/ Lawrence
                                            D. Cutler

		Name:	Lawrence D. Cutler

		Title:	Chief Operating Officer

 

     

     

    

 

SCHEDULE I

 

    18

     

    

 

EXECUTION VERSION

 

EXHIBIT A

 

SCHEDULE OF FEES

 

[***]

 

     

     

    

 

EXECUTION VERSION

 

EXHIBIT B

 

INVESTMENT GUIDELINES

 

Objective.

 

The investment objective for the Account is to
seek capital appreciation and current income by investing in debt and equity instruments, with an emphasis on debt instruments. The Investment
Adviser will pursue this objective through the creation and maintenance of a managed account pursuant to the qualifications and restrictions
set forth in these Investment Guidelines and the Investment Management Agreement among Investment Adviser, Houston Specialty Insurance
Company, Imperium Insurance Company and Great Midwest Insurance Company dated as of January 13, 2016.

 

     

     

    

 

 

EXECUTION VERSION

 

EXHIBIT C

 

CERTAIN CONFLICTS OF INTEREST

 

Affiliated
Loan Origination Vehicle. As part of the strategy for the Account, AOC and certain other affiliates of Arena, engage in and
are expected to continue engaging in loan origination. AOC may sell all or a portion of those loans to the Account. Such parties may receive
loan origination fees in connection with such activity and in connection with loans that are originated by other Arena clients and also
may be sold to the Account. To the extent that the Account participates in loans originated by AOC, it is anticipated that it will share
in the related origination fees. However, the Account may not benefit from all of the origination fees received by such parties. Mr. Zwirn
and certain other members of the management team involved in managing the Account and selecting investments may be entitled, under certain
circumstances, to share in such origination fees. AOC or its affiliates also may sell certain of its loans to the Arena Finance Affiliates
(defined below).

 

Conflicts
Procedures. Because a portion of the Account's investment strategy may involve frequent acquisitions of loans originated by
AOC or other affiliated parties, including other Arena clients, where such a transaction constitutes (or may constitute), as determined
by the Investment Adviser, a "principal transaction" under Section 206(3) of the Investment Advisers Act of 1940,
certain conflict resolution procedures have been implemented to provide for the independent review of, and consent to, such transactions
on behalf of the Account. As agreed to by the Client, an independent representative (the "Independent Representative")
may be appointed by the Investment Adviser to review each such transaction, including the price and value of the asset so acquired. The
Independent Representative may be requested to approve other transactions involving potential conflicts of interest. There is no guarantee
that the foregoing procedures will eliminate the risk of conflicts of interest associated with these transactions

 

Valuation
and Acquisition of Loans Originated by Other Arena Clients or AOC. As noted above, the Account may acquire from other Arena
clients or AOC participations in and/or assignments or sales of loans (or interests therein) that such other Arena client or AOC has originated
and/or purchased. In the event of such an acquisition, the price of the participation, assignment or sale will not be set by the Investment
Adviser, such other Arena client or AOC but rather will be established based on a third-party valuation. Further, in the case of a "principal
transaction" or a possible "principal transaction," as defined in Section 206(3) of the Advisers Act, the decision
by the Account to accept or reject the offer will be made by a party independent of the Investment Adviser, such as an independent third-party
valuation firm or an Independent Representative of the Account. There is no guarantee that the determinations of the Independent Representative
will guarantee that such transaction is entered into at the most advantageous price.

 

Trading
by the Investment Adviser. The Investment Adviser and its affiliates may trade securities for their own accounts. The records
of such trading will not be made available to the Client. It is possible that the Investment Adviser and its affiliates may buy or sell
securities or other instruments that the Investment Adviser has recommended to clients and may engage in transactions for their own accounts
in a manner that is inconsistent with the Investment Adviser's recommendations to a client.

 

Personal
Trading by Investment Adviser Employees. Personal securities transactions by principals, officers and employees may raise potential
conflicts of interest when such persons trade in a security that is owned by, or considered for purchase or sale for, a client. The Investment
Adviser has adopted policies and procedures designed to detect and prevent such conflicts of interest and, when they do arise, to ensure
that it effects transactions for clients in a manner that is consistent with its fiduciary duty to its clients and in accordance with
applicable law. In compliance with the Investment Adviser's Code of Ethics for

 

Personal Trading, transactions in certain securities
described therein are required to be pre-cleared to allow for a review for any potential conflict of interest or insider trading. Principals,
officers and employees of the Investment Adviser are required to report personal securities transactions either electronically or via
a monthly (or as generated, e.g., quarterly) duplicate statement sent directly from the corresponding brokerage firm.

 

Restrictions
of Fund Trading Activities—Material Non-Public Information. Arena employees regularly acquire confidential information
and Arena may enter into confidentiality and/or "standstill agreements" when assessing investment opportunities. By reason of
its various activities, Arena and its employees may have access to material non-public information ("MNPI") about an issuer.
For example, an employee of Arena may serve from time to time as a director, or in a similar capacity, or as an executive officer, with
respect to, the securities of which may be purchased or sold on behalf of clients, which service may prohibit all clients from engaging
in transactions in certain issuers. Additionally, employees of Arena may acquire MNPI in the ordinary course of their investment activities,
which acquisition may result in restrictions on the Account's ability to sell a portfolio investment at a time when it might otherwise
have done so. Any of these activities could prevent the Account from buying or selling securities or other interests in an issuer, potentially
for an extended period.

 

    

     

    

 

Arena
Finance Affiliates. Arena is affiliated with Arena Finance National LLC and Arena Finance Global LLC (together, the "Arena
Finance Affiliates"). The Arena Finance Affiliates earn interest income and certain financing-related fees from holding debt
instruments they acquire from AOC as well as from unrelated parties. Mr. Zwirn and certain members of the management team, will receive
a salary and a bonus from the Finance Affiliates through BernardCo, and Mr. Zwirn will perform certain services on behalf of these
firms.

 

Arena
Services Affiliate. Arena Management Co., LLC ("AMC") has entered into a services agreement with the Investment Adviser.
However, AMC and the individuals it employs are not dedicated solely to the Investment Adviser. AMC has also entered into services agreements
with AOC and the Arena Finance Affiliates. As a result, the individuals AMC employs may face conflicting demands on their time and attention.

 

Compensation
Structure. The Investment Adviser and affiliates and their principals ("Arena Parties") receive fees and performance-based
compensation from the Client. The Arena Parties have a conflict of interest between their responsibility to manage the Account for the
benefit of Client and their interest in maximizing the fees and profits such Arena Parties will receive. For example, the performance-based
compensation paid to the Investment Adviser or its affiliate may create an incentive for the Investment Adviser to engage in more speculative
investing than might be the case if the Investment Adviser or its affiliate were compensated solely based on a flat percentage of capital.
Also, fees the Investment Adviser and its principals receive from the Investment Adviser's affiliates may create an incentive for the
Investment Adviser to make investment recommendations that maximize those fees rather than recommendations in the best interests of the
Client. The Investment Adviser endeavors to mitigate those risks by engaging in the Conflicts Procedures described above.

 

Valuation
Risks. It is anticipated that a substantial portion of the Client's portfolio will consist of illiquid and difficult to value
instruments. The Investment Adviser will be responsible for valuing instruments based on available information. Because both the Management
Fee and Performance Fee calculations derive from the valuation of the Account Assets, the Investment Adviser faces a conflict in valuing
the Client's Account. Although the Investment Adviser will seek to mitigate this conflict by relying on third party sources for valuation,
such third party sources may not be available for many instruments.

 

    

     

    

 

EXECUTION VERSION

 

EXHIBIT D

 

CERTAIN RISK FACTORS

 

Risk of Loss of a Portion or All of the Account Assets.

 

The Client's investments
in securities through the Account are speculative and involve substantial risks, including, without limitation, general market and investment
risks, risks associated with certain instruments, trading techniques and strategies, risks associated with derivatives, structural risks
and tax risks. Such an investment is suitable only for persons who have limited need for liquidity in their investment, particularly due
to extensive use of illiquid investments. No assurance exists that the Account will achieve its investment objective. A portion or all
of the Account Assets may be lost. This is a risk the Client must be prepared to bear.

 

Substantial
Costs. The Account is subject to fees (including the Management Fee), transactional and operating costs and expenses irrespective
of its performance which, in the aggregate, may be substantial. If these fees, costs and expenses are not offset by investment gains,
then the Account will not achieve its investment objective.

 

Illiquid
Assets. It is anticipated that a substantial portion of the Account's positions will be or become relatively or entirely illiquid
or may cease to be traded after the Account invests. In such cases, and in the event of extreme market volatility, the Account may not
be able to liquidate its positions promptly if the need should arise. In addition, the Account's sales of some securities could depress
the market value of such securities and thereby reduce the Account's profitability or increase its losses. The illiquidity of the assets
could mean that the Client is obligated to wait a significant period of time (up to several years) before receiving any proceeds.

 

Fraud.
Of paramount concern in lending is the possibility of material misrepresentation or omission on the part of the borrower. Such
inaccuracy or incompleteness may adversely affect the valuation of the collateral underlying the loans or may adversely affect the ability
to perfect or effectuate a lien on the collateral securing the loan. The Account will rely upon the accuracy and completeness of representations
made by borrowers and/or other counterparties, co-investors and service providers to the extent reasonable, but cannot guarantee such
accuracy or completeness.

 

Bank
Loans and Participations. The Account's investment program may include bank loans and participations. These obligations are
subject to unique risks, including: (i) the possible invalidation of an investment transaction as a "fraudulent conveyance"
under relevant creditors' rights laws; (ii) so-called "lender liability" claims by the issuer of the obligations; (iii) environmental
liabilities that may arise with respect to collateral securing the obligations; and (iv) limitations on the ability of The Account
to directly enforce its rights with respect to participations. In analyzing each bank loan or participation, the Investment Adviser compares
the relative significance of the risks against the expected benefits. Successful claims by third parties arising from these and other
risks, absent violation of the Standard of Care by the Investment Adviser or its affiliates, will be borne by the Account.

 

The Account may experience
significant delays in the settlement of certain loan and/or bank debt transactions, particularly in the case of investments that are or
become distressed. Until such transactions are settled, The Account is subject to counterparty insolvency risk. Pursuant to certain insolvency
laws, a counterparty may have the ability to reject or terminate an unsettled loan transaction. If a counterparty rejects an unsettled
transaction, The Account might lose any increase in value with respect to such loan that accrued while the transaction was unsettled.

 

The Account may also invest
in loan participations where it will be subject to certain additional risks as a result of having no direct contractual relationship with
the borrower of the underlying loan. In such circumstances, The Account generally would depend on the lender to enforce its rights and
obligations under the loan arrangements in the event of a default by the borrower on the underlying loan and will generally have no voting
rights with respect to the issuer, as such rights are typically retained by the lender. Such investments are subject to the credit risk
of the lender (as well as the borrower) since they will depend upon the lender forwarding payments of principal and interest received
on the underlying loan. There can be no assurance that the lender will not default on its obligations under such arrangements, resulting
in substantial losses to the Account.

 

From time to time, the Investment
Adviser may cause the Account to acquire certain assets through participation and sub-participation arrangements with unaffiliated third
parties. Such arrangements may expose the Account to additional credit risk compared to acquiring the asset directly because, in addition
to the underlying credit risk of the asset, the Account is exposed to the risk of the direct participant defaulting on its obligations
to the Account under the participation or sub-participation arrangement.

 

    

     

    

 

Prepayment
Risk. The frequency at which prepayments (including voluntary prepayments by the obligors and liquidations due to default and
foreclosures) occur on loans and other debt underlying certain of the Account's investments will be affected by a variety of factors including,
but not limited to, the prevailing level of interest rates as well as economic, demographic, tax, social, legal and other factors.
In general, "premium" financial instruments (i.e., financial instruments whose market values exceed their principal or
par amounts) are adversely affected by faster than anticipated prepayments, and "discount" financial instruments (i.e., financial
instruments whose principal or par amounts exceed their market values) are adversely affected by slower than anticipated prepayments.
Since the Account's investments may include discount financial instruments when interest rates are high, and may include premium financial
instruments when interest rates are low, such investments may be adversely affected by prepayments in any interest rate environment.

 

Agency
Provisions. Agency provisions in the loans acquired by the Account may impair enforcement actions against the collateral
and expose the Account to losses on the loans. The loans may consist of agented loans. Under the underlying loan agreement with
respect to agented loans, the loan originator or another financial institution may be designated as the administrative agent and/or
collateral agent. Under these arrangements, the borrower grants a lien to such agent on behalf of the lenders and directs payments
to such agent, which, in turn, will distribute payments to the lenders, including the Account. The agent is responsible for
administering and enforcing the loan and generally may take actions only in accordance with the instructions from lenders holding a
specified percentage in commitments or principal amount of the loan. In the case of loans that are part of a capital structure that
includes both senior and subordinated loans, the agent may take such action in accordance with the instructions of one or more
senior lenders without consultation with, or any right to vote (except in certain limited circumstances) by, the subordinated
lenders. The loans held by the Account may represent less than the amount sufficient to compel such actions or may represent
subordinated debt which is precluded from acting and, under such circumstances, the Account would only be able to direct such
actions if instructions from the Account were made in conjunction with other lenders that together comprise the requisite percentage
of lenders then entitled to take or direct the agent to take action. Conversely, if the required percentage of lenders other than
the Account desire to take or direct the agent to take certain actions, such actions may be taken even if the Account did not
support such actions. Furthermore, if a loan held by the Account is subordinated to one or more senior loans made to the borrower,
the ability of the Account to exercise such rights may be subordinated to the exercise of such rights by the senior lenders. However
certain actions, such as amendments to the material payment terms of the loans, typically may not be taken without consent of all
lenders, including the Account. If the loan is a syndicated revolving loan or delayed draw term loan, other lenders may fail to
satisfy their full contractual funding commitments for such loan, which could create a breach of contract resulting in a lawsuit by
the borrower against the lenders (including the Account even if it did not default) and adversely affect the fair market value of
such loan.

 

There is a risk that an agent
may become subject to insolvency proceedings. Such an event could delay, and possibly impair, the ability of the lenders for such agented
loan to take any enforcement action against the related borrower or the collateral securing a loan and may require the lenders to take
action in the agent's insolvency proceeding to realize on proceeds or payments made by borrowers that are in the possession or control
of the agent.

 

In addition, it is expected
that agented loans will allow for the agent to resign. Agented loans may or may not contain provisions for lenders to remove the agent.
If an agent resigns or is removed, the lenders may be required to find, and the required percentage thereof agree to appoint, a successor
agent that may be difficult to find or cost more than the predecessor agent.

 

Cross-collateralization.
Certain of the loans may be cross-collateralized. Cross-collateralization arrangements may be subject to challenge, which could
result in the subordination of the Account's interest in the collateral or the loan itself. Cross-collateralization arrangements involving
more than one borrower could be challenged as fraudulent conveyances by creditors of the related borrower in an action brought outside
a bankruptcy case or, if the borrower were to become a debtor in a bankruptcy case, by the borrower's representative (or the borrower
as debtor-in-possession). If a court were to conclude that the granting of the liens to cross-collateralize a loan was a voidable fraudulent
conveyance, such court could (a) subordinate all or part of the pertinent loan to existing or future indebtedness of that borrower,
(b) recover payments made under that loan or (c) take other actions detrimental to the Account, including, under certain circumstances,
invalidating the loan or the Account's interest in the collateral securing the cross-collateralized loan. Any of these actions could impair,
delay or eliminate payments by the borrower of a loan that is cross-collateralized, which would adversely affect the returns expected
by the Investors with respect to any such loan.

 

    

     

    

 

Equitable
Subordination. Under common law principles that in some cases form the basis for lender liability claims, if a lender (a) intentionally
takes an action that results in the undercapitalization of a borrower or issuer to the detriment of other creditors of such borrower or
issuer, (b) engages in other inequitable conduct to the detriment of such other creditors, (c) engages in fraud with respect
to, or makes misrepresentations to, such other creditors or (d) uses its influence as a stockholder to dominate or control a borrower
or issuer to the detriment of other creditors of such borrower or issuer, a court may elect to subordinate the claim of the offending
lender or bondholder to the claims of the disadvantaged creditor or creditors (a remedy called "equitable subordination"). The
Account does not intend to engage in conduct that would form the basis for a successful cause of action based upon the equitable subordination
doctrine; however, because of the nature of the debt obligations, the Account may be subject to claims from creditors of an obligor that
debt obligations of such obligor which are held by the issuer should be equitably subordinated.

 

Risks
of Acquiring Real Estate Loans and Participations. Real estate loans acquired by the Account may be at the time of their acquisition,
or may become after their acquisition, nonperforming for a wide variety of reasons. Such nonperforming real estate loans may require a
substantial amount of workout negotiations and/or restructuring, which may entail, among other things, a substantial reduction in the
interest rate and a substantial writedown of the principal of such loan. However, even if a restructuring were successfully accomplished,
a risk exists that, upon maturity of such real estate loan, replacement "takeout" financing may not be available. Purchases
of participations in real estate loans raise many of the same risks as investments in real estate and also carry risks of illiquidity
and lack of control. It is possible that Arena may find it necessary or desirable to foreclose on collateral securing one or more real

 

estate loans purchased by the Account. The foreclosure
process varies jurisdiction by jurisdiction and can be lengthy and expensive. Borrowers often resist foreclosure actions by asserting
numerous claims, counterclaims, and defenses, even when the assertions may have no basis in fact, in an effort to prolong the foreclosure
process. In some states or other jurisdictions, foreclosure actions can take up to several years or more to conclude. During the foreclosure
proceeding, a borrower may have the ability to file for bankruptcy, potentially staying the foreclosure action and further delaying the
foreclosure process. Foreclosure litigation tends to create a negative public image of the collateral property and may result in disrupting
ongoing leasing and management of the property.

 

Investments
in Loans Secured by Real Estate. The Account may invest in loans secured by real estate (other than mortgage-backed securities)
and may, as a result of default, foreclosure or otherwise, hold real estate assets. Special risks associated with such investments include
change in the general economic climate or local conditions (such as an oversupply of space or a reduction in demand for space), competition
based on rental rates, attractiveness and location of the properties, changes in the financial condition of tenants and changes in operating
costs. Real estate values are also affected by such factors as governmental regulations (including those governing usage, improvements,
zoning and taxes), interest rate levels, the availability of financing and potential liability under changing environmental and other
laws. Of particular concern may be those mortgaged properties which are, or have been the site if manufacturing, industrial or disposal
activities. Such environmental risks may give rise to a diminution in the value of property (including real property securing any portfolio
investment) or liability for cleanup costs or other remedial actions, which liability could exceed the value of such property or the principal
balance of the related portfolio investment. In certain circumstances, a lender may choose not to foreclose on contaminated property rather
than risk incurring liability for remedial actions.

 

Non-Performing
Nature of Loans. It is possible that certain of the loans purchased by the Account may be non-performing which may involve
workout negotiations, restructuring and the possibility of foreclosure. These processes can be lengthy and expensive. Many of the NPLs
will have been underwritten to "subprime," "Alternative A-Paper" or "expanded" underwriting guidelines.
These underwriting guidelines are different from and, in certain respects, less stringent than the other general underwriting standards
employed by originators. For example, these loans may have been originated to borrowers that have poor credit or that provide limited
or no documentation in connection with the underwriting of the mortgage loan. Such loans present increased risk standards of delinquency,
foreclosure, bankruptcy and loss than prime mortgage loans. An originator generally originates mortgage loans in accordance with underwriting
guidelines it has established and, in certain cases, based on exceptions to those guidelines. These guidelines may not identify or appropriately
assess the risk that the interest and principal payments due on a mortgage loan will be repaid when due, or at all, or whether the value
of the mortgaged property will be sufficient to otherwise provide for recovery of such amounts. To the extent exceptions were made to
an originator's underwriting guidelines in originating an NPL, those exceptions may increase the risk that principal and interest amounts
may not be received or recovered and compensating factors, if any, which may have been the premise for making an exception to the underwriting
guidelines may not in fact compensate for any additional risk.

 

    

     

    

 

Investments
in Secured Loans. The assets of the portfolio of the Account will include secured debt, which involve various degrees of
risk of a loss of capital. The factors affecting an issuer's secured leveraged loans, and its overall capital structure, are
complex. Some secured loans may not necessarily have priority over all other debt of an issuer. For example, some secured loans may
permit other secured obligations (such as overdrafts, swaps or other derivatives made available by members of the syndicate to the
company), or involve secured loans only on specified assets of an issuer (e.g., excluding real estate). Issuers of secured
loans may have two tranches of secured debt outstanding each with secured debt on separate collateral. Furthermore, the liens
referred to herein generally only cover domestic assets and non-U.S. assets are not included (other than, for example, where a
borrower pledges a portion of the stock of first-tier non-U.S. subsidiaries). In the event of Chapter 11 filing by an issuer, the
Bankruptcy Reform Act of 1978, as amended (the "Bankruptcy Code") authorizes the issuer to use a creditor's
collateral and to obtain additional credit by grant of a priority lien on its property, senior even to liens that were first in
priority prior to the filing, as long as the issuer provides what the presiding bankruptcy judge considers to be "adequate
protection" which may but need not always consist of the grant of replacement or additional liens or the making of cash
payments to the affected secured creditor. The imposition of priority liens on the Account's collateral would adversely affect the
priority of the liens and claims held by the Account and could adversely affect the Account's recovery on the affected loans. Any
secured debt is secured only to the extent of its lien and only to the extent of underlying assets or incremental proceeds on
already secured assets. Moreover, underlying assets are subject to credit, liquidity, and interest rate risk.

 

Certain Risks Associated with Investments in Residential Mortgage
Loans and RMBS.

 

Market
Disruptions and Distress. The residential mortgage market in the United States and elsewhere has, at certain times, experienced
disruption and instability. Such disruptions may occur even during periods of broader economic recovery. Declines in the value of mortgaged
properties may result in increases in delinquencies and losses on residential mortgage loans generally.

 

Residential mortgage loans
(including the mortgage loans underlying an issue of RMBS) held by the Account are likely to include "non-traditional" mortgage
loans, such as adjustable rate mortgage loans (or "ARMS") — i.e., mortgage loans that offer relatively low monthly
payments during the initial years of the loan that increase (often significantly) in later years — or mortgage loans that require
large "balloon" payments at specified times (unlike traditional, "self-amortizing" mortgage loans). Many borrowers
enter into non-traditional mortgage loans with the hope that they will be able to refinance, or resell the underlying property, before
the increased interest payments or balloon payments become due. Stress in the real estate markets, including declines in housing prices
may, however, make these refinancings or resales commercially unfeasible or impossible. This, in turn, may contribute to higher delinquency
rates and losses on mortgage loans (and mortgage loans underlying RMBS) held by the Account, which would adversely affect the Account's
performance.

 

Under current market conditions,
it is likely that many of the residential mortgage loans purchased by the Account will have loan-to-value ratios in excess of 100%, meaning
that the amount owed on the mortgage loan exceeds the value of the underlying real property. Further, the borrowers on these mortgage
loans may be in economic distress and/or may have become unemployed, bankrupt or otherwise unable or unwilling to make payments when due.
Even though it is anticipated that the Account will pay less than the amount owed on these mortgage loans to acquire them, if actual results
are different from the Account's assumptions in determining the price for these mortgage loans, then the Account may incur significant
losses.

 

In connection with the disposition
of mortgage loans, the Account may be required to make representations about the mortgage loans, including with respect to matters that
the Account may be unable to diligence. Such transactions may also require the Account to indemnify the purchaser to the extent that any
such representations turned out to be incorrect, incomplete or misleading. These arrangements may result in contingent liabilities, which
ultimately may be paid by the Account.

 

Applicable
Law and Regulations. State and federal laws, public policy and general principles of equity relating to the protection of
consumers, abusive debt collection practices, and unfair, discriminatory and deceptive practices generally may apply to the
origination, servicing and collection of the Account's residential mortgage loans and residential mortgage loans backing the
Account's RMBS. Violations of these laws, policies and principles (including violations that occurred period to the Account's
ownership of the relevant asset) may limit the ability of the Account (or, as applicable, the issuer of RMBS) to collect all or part
of the principal of or interest on the mortgage loans, may entitle a borrower to a refund of amounts previously paid, and could
subject the owner of a mortgage loan to damages and administrative enforcement.

 

    

     

    

 

Numerous laws, regulations
and rules related to the servicing of mortgage loans, including in respect of foreclosure actions, have been enacted and/or proposed
by federal, state and local governmental authorities, including the newly formed Consumer Financial Protection Bureau created under the
Reform Act. Such laws, regulations and rules may delay foreclosure processes, reduce payments by borrowers or increase reimbursable
servicing expenses, which in turn would likely result in delays and reductions in the distributions to be made to the Account as the owners
of residential mortgage loans or as an investor in RMBS and/or collateralized debt obligations backed by RMBS. In addition, the rate of
foreclosures of properties backing subprime loans in certain states may prompt legislators, regulators and attorneys general in those
states to try to prevent certain foreclosures and bring lawsuits against participants in the financing of subprime loans in their states,
including issuers of RMBS backed by such loans and investors in those RMBS, including the Account. The Account and other similarly-situated
investors will bear the risk that future regulatory developments will result in losses on their investments, whether due to delayed or
reduced distributions or reduced market value.

 

Risks
Associated with Servicers and Third Party Service Providers. Mortgage loans owned by the Account are serviced by one or more
third party servicers. As mentioned directly above, mortgage servicers are subject to numerous laws, regulations and rules. The Account
may not be able to successfully detect and prevent violations of such laws or, more generally, fraud or incompetence by such third parties,
which could expose the Account to material liability. Terminating a mortgage servicer is a cumbersome process, which could result in delays
in realizing the Account's investment strategies, thereby adversely affecting returns.

 

Whether relating to the Account's
investments in mortgage loans or RMBS, the relevant servicer generally is required to make advances in respect of delinquent mortgage
loans. However, servicers experiencing financial difficulties may not be able to perform these obligations. Servicers who have sought
bankruptcy protection may, due to application of the provisions of bankruptcy law, not be required to advance such amounts. Even if a
servicer were able to advance amounts in respect of delinquent mortgage loans, its obligation to make such advances may be limited to
the extent that it does not expect to recover such advances due to the deteriorating credit of the delinquent mortgage loans. In addition,
a servicer's obligation to make such advances may be limited to the amount of its servicing fee.

 

Additional third parties will
be retained to provide services in respect of the Account's mortgage loan investments, which services may include those relating to evaluating
loss mitigation strategies, assisting with valuation of underlying properties, assisting with foreclosures or general management of the
loans. The Account's investments could be negatively affected by the actions taken, or advice given, by such third parties.

 

On January 10,
2014, a set of new rules issued by the U.S. Consumer Financial Protection Bureau went into effect. These new rules require
mortgage servicers to (i) warn borrowers before any interest rate adjustments on their mortgage loans and provide alternatives
for borrowers to consider, (ii) provide monthly mortgage statements that explicitly breakdown principal, interest, fees, escrow
and due dates, (iii) provide options for avoiding lender-placed, or "force-placed" insurance, (iv) provide early
outreach to borrowers in danger of default regarding options to avoid foreclosure, (v) provide that payments be credited to
borrower accounts the day they are received, (vi) require borrower account records be kept current, (vii) provide
increased accessibility to servicing staff and records for borrowers and (viii) investigate errors within 30 days and improve
staff accessibility to consumers, among other things. The new rules may cause servicers, including the Account's servicer, to
modify their servicing processes and procedures and to incur additional costs in connection therewith.

 

Violation
of Various Federal, State and Local Laws May Result in Losses on Residential Mortgage Loans. Numerous federal and state
consumer protection laws impose substantive requirements upon residential mortgage lenders in connection with the origination, servicing
and enforcement of mortgage loans. There has been significant attention from state and federal banking regulatory agencies, state attorneys
general, the U.S. Federal Trade Commission, the U.S. Department of Justice, the U.S. Department of Housing and Urban Development, the
U.S. Consumer Financial Protection Bureau and state and local governmental authorities regarding certain lending practices by some companies
in the subprime industry, sometimes referred to as "predatory lending" practices. Sanctions have been imposed by state, local
and federal governmental agencies for practices including, but not limited to, charging borrowers excessive fees, imposing higher interest
rates than the borrower's credit risk warrants and failing to adequately disclose the material terms of loans to the borrowers. Sanctions
could adversely affect the value of any investment by the Account in a mortgage loan.

 

    

     

    

 

Applicable state and local
laws generally regulate interest rates and other charges, require certain disclosure, impact closing practices, and require licensing
of originators. In addition, other state and local laws, public policy and general principles of equity relating to the protection of
consumers, unfair and deceptive practices and debt collection practices may apply to the origination, ownership, servicing and collection
of such residential mortgage loans. Such laws can increase the costs of compliance in connection with such investments and ultimately
undermine the profitability of such investments.

 

Certain
Risks Associated with Investments in CMBS. The underlying commercial mortgage loans in an issue of CMBS held by the Account
will be backed by obligations (including participation interests in obligations) that are principally secured by mortgage loans on real
property (or interests therein) having a multifamily or commercial use, including regional malls or other retail space, office buildings,
industrial or warehouse properties, hotels, apartments, cooperatives, nursing homes and senior living centers. Commercial mortgage loans
are generally nonrecourse loans, lack standardized terms, tend to have shorter maturities than residential mortgage loans and may provide
for the payment of all or substantially all of the principal only at maturity. Commercial properties also tend to be unique and are more
difficult to value than single-family residential properties. The types of property securing commercial mortgage loans, and the ways that
those properties are used, can also create special risks. For instance, commercial properties that operate as hospitals and nursing homes
may present special risks to lenders due to the significant governmental regulation of the ownership, operation, maintenance and financing
of health care institutions. Hotel and motel properties are often operated pursuant to franchise, management or operating agreements which
may be terminable by the franchisor or operator, and may be subject to complex local licensing requirements.

 

The repayment of loans
secured by income-producing commercial properties is typically dependent on the successful operation of those properties rather than
upon the liquidation value of the underlying real estate or the existence of independent income or assets of the borrower. The net
operating income from commercial properties is subject to volatility, however, and may not be sufficient to cover debt service on
the related mortgage loan at any given time. Furthermore, the net operating income from, and value of, any commercial property may
be adversely affected by risks generally incidental to interests in real property, including events that the borrower or manager of
the property, or the issuer or servicer of the related issuance of CMBS, may be unable to predict or control, such as changes in
general or local economic conditions and specific industry segments; declines in real estate values; declines in rental or occupancy
rates; increases in interest rates, real estate tax rates and other operating expenses; changes in governmental rules, regulations
and fiscal policies; natural disasters; acts of war; acts of terrorism; and social unrest and civil disturbances. The value of
commercial real estate is also subject to a number of laws, such as laws regarding environmental clean-up and limitations on
remedies imposed by bankruptcy laws and state laws regarding foreclosures and rights of redemption.

 

Mortgage loans underlying
a CMBS issue may lack regular amortization of principal, resulting in a single "balloon" payment due at maturity. If the underlying
mortgage borrower experiences business problems, or other factors limit refinancing alternatives, these balloon payment mortgage loans
are likely to experience payment delays or even default. In addition, the mortgage loans underlying a CMBS issue may lack diversification
and may relate to a single loan or a limited number of loans.

 

Peer-to-Peer
Lending. Peer-to-peer lending allows individuals and increasingly, institutional investors, to lend money to others via an
online platform. The borrowers on such platforms are a wide range of individuals and businesses, and the Account's ability to assess their
creditworthiness may be limited. While lending on a peer-to-peer platform can generate high returns, it is subject to many risks, including
the risk that the Account could lose its entire investment if a borrower defaults or if the lending and/or loan servicing platform itself
ceases operations. In the event of a default, certain lending platforms offer lenders almost no chance of recovery. In addition, peer-to-peer
loans are relatively illiquid investments. In many cases it is difficult or impossible for the lender to get its money back before a loan
matures, even absent a default.

 

Nature
of Bankruptcy Proceedings. There are a number of significant risks when investing in companies involved, or which may have
been involved, in bankruptcy proceedings, including the following: First, many events in a bankruptcy are the product of contested matters
and adversary proceedings which are beyond the control of the creditors. Second, a bankruptcy filing may have adverse and permanent effects
on a company. For instance, the company may lose its market position and key employees and otherwise become incapable of restoring itself
as a viable entity. Further, if the proceeding is converted to a liquidation, the liquidation value of the company may not equal the liquidation
value that was believed to exist at the time of the investment. Third, the duration of a bankruptcy proceeding is difficult to predict.
A creditor's return on investment can be impacted adversely by delays while the plan of reorganization is being negotiated, approved by
the creditors and confirmed by the bankruptcy court, and until it ultimately becomes effective. Fourth, certain claims, such as claims
for taxes, wages and certain trade claims, may have priority by law over the claims of certain creditors. Fifth, the administrative costs
in connection with a bankruptcy proceeding are frequently high and will be paid out of the debtor's estate prior to any return to creditors.
Sixth, creditors can lose their ranking and priority in a variety of circumstances, including if they exercise "domination and control"
over a debtor and other creditors can demonstrate that they have been harmed by such actions. Seventh, investors in the company may be
subject to a court-imposed "cram down" in which they lose their seniority in the capital and security interest structure. Eighth,
the Account may seek representation on creditors' committees and as a member of a creditors' committee it may owe certain obligations
generally to all similarly situated creditors that the committee represents and may be exposed to liability to such other creditors who
disagree with the Account's actions. There can be no assurance that the Account would be successful in obtaining results most favorable
to it in such proceedings, although the Account may incur significant legal fees and other expenses in attempting to do so. The Account
may also be subject to various trading or confidentiality restrictions. In addition, the Account and some of the Investment Adviser's
other clients may potentially hold conflicting positions in relation to investments in companies involved in bankruptcy proceedings.

 

Investment in the debt of
financially distressed companies domiciled outside the United States involves additional risks. Bankruptcy law and process may differ
substantially from that in the United States, resulting in greater uncertainty as to the rights of creditors, the enforceability of such
rights, reorganization timing, and the classification, seniority and treatment of claims.

 

    

     

    

 

 

Short
Sales. The Account may make short sales in any type of securities for profit in anticipation of a change in the market price
of a financial instrument or as a hedge against other positions held by the Account. Short sales that are not made "against the box"
and are not part of a hedging transaction create opportunities to increase return but, at the same time, are speculative and involve special
risk considerations. Since the seller in effect profits from a decline in the price of the securities sold short without the need to invest
the full purchase price of the securities on the date of the short sale, returns tend to increase more when the securities sold short
decrease in value, and to decrease more when the securities sold short increase in value, than would otherwise be the case if the seller
had not engaged in such short sales. Short sales theoretically involve unlimited loss potential, as the market price of securities sold
short may continuously increase, although the Account may mitigate such losses by replacing the securities sold short before the market
price has increased significantly. Under adverse market conditions, the Account might have difficulty purchasing securities to meet its
short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary to meet its short sale obligations
at a time when fundamental investment considerations would not favor such sales.

 

As a result of the financial
disruptions which began in the second half of 2008, it appears likely that there may be significant additional restrictions imposed on
short-selling (at least of certain issuers' securities).

 

Hedging
Transactions. Hedging techniques involve one or more of the following risks: (i) imperfect correlation between the performance
and value of the instrument and the value of the Account securities or other objective of the Investment Adviser; (ii) possible lack
of a secondary market for closing out a position in such instrument; (iii) losses resulting from interest rate, spread or other market
movements not anticipated by the Investment Adviser; (iv) the possible obligation to meet additional margin or other payment requirements,
all of which could worsen the Account's position; and (v) default or refusal to perform on the part of the counterparty with which
the Account trades. Furthermore, to the extent that any hedging strategy involves the use of over-the-counter ("OTC") derivatives
transactions, such a strategy would be affected by implementation of the various regulations adopted pursuant to the Reform Act.

 

The Investment Adviser will
not attempt to hedge all market or other risks inherent in the Account's positions, and will hedge certain risks, if at all, only partially.
Specifically, the Investment Adviser may choose not, or may determine that it is economically unattractive, to hedge certain risks —either
in respect of particular positions or in respect of the Account's overall portfolio. The Account's portfolio composition will commonly
result in various directional market risks remaining unhedged. The Investment Adviser may rely on diversification to control such risks
to the extent that the Investment Adviser believes it is desirable to do so; however, the Account is not subject to formal diversification
policies.

 

The ability of the Account
to hedge successfully will depend on the ability of the Investment Adviser to predict relevant market movements, which cannot be assured.
The Investment Adviser is not required to hedge and there can be no assurance that hedging transactions will be available or, even if
undertaken, will be effective. In addition, it is not possible to hedge fully or perfectly against currency fluctuations affecting the
value of securities denominated in non-United States currencies because the value of those securities is likely to fluctuate as a result
of independent factors not related to currency fluctuations. Moreover, it should be noted that the portfolio will always be exposed to
certain risks that cannot be hedged, such as counterparty credit risk. Furthermore, by hedging a particular position, any potential gain
from an increase in the value of such position may be limited.

 

     

     

    

 

Credit
Default Swaps. The Account may invest in credit default swaps. A credit default swap is a contract between two parties
which transfers the risk of loss if a company fails to pay principal or interest on time or files for bankruptcy. Credit default
swaps can be used to hedge a portion of the default risk on a single corporate bond or a portfolio of bonds. In addition, credit
default swaps can be used to implement the General Partner's view that a particular credit, or group of credits, will experience
credit improvement. The credit default swap market in high yield securities is comparatively new and rapidly evolving compared to
the credit default swap market for more seasoned and liquid investment grade securities. Swap transactions dependent upon credit
events are priced incorporating many variables including the pricing and volatility of the common stock, and potential loss upon
default, among other factors. As such, there are many factors upon which market participants may have divergent views.

 

Because the master and credit
support agreements for over-the-counter swap transactions are individually negotiated with a specific counterparty, there exists the risk
that the parties may interpret contractual terms (e.g., the definition of default) differently when the Account seeks to enforce its contractual
rights. If that occurs, the Account may be forced to seek to enforce its contractual rights through legal proceedings, which may be costly
and time consuming.

 

Collateralized
Debt Obligations ("CDOs"). The Account may invest in CDOs and CLOs. The portfolio may consist of CLO equity, multi-sector
CDO equity, trust preferred CDO equity and CLO mezzanine debt. CDOs are subject to credit, liquidity and interest rate risks. The CDO
equity purchased by the Account will most likely be unrated or non-investment grade, which means that a greater possibility that adverse
changes in the financial condition of an issuer or in general economic conditions or both may impair the ability of the related issuer
or obligor to make payments of principal or interest. Such investments may be speculative. In addition, as a holder of CDO equity, the
Account will have limited remedies available upon the default of the CDO. In the recent past, the market for CDOs has become highly illiquid
resulting in severe declines of the prices of such instruments.

 

Lending
Against Equipment. In a loan against equipment transaction, also known as a sale leaseback, equipment is sold on paper by the
seller and leased back. The seller obtains working capital and keeps the equipment on their property. As with equipment leasing, there
are considerable costs associated with terminating such loans and retrieving hard assets if a borrower fails to make timely payments on
the loan. Further, the value of the subject equipment will decline over time as a result of use by the borrower, reducing the value of
the collateral backing the loan and increasing the risk that the Account will lose money in the event of borrower default. The Account
may also engage in equipment leasing, which may expose the Investors to considerable risk. In cases of a non-performing lessee, there
are considerable costs associated with terminating leases and retrieving hard assets that can disrupt and reduce cash flow. These risks
may be exacerbated in the case of lessee bankruptcy. Further, it may be difficult to re-lease or sell retrieved equipment, depending on
market conditions, especially if such equipment is outdated or has been misused.

 

Currency
and Foreign Risks. The Account may, from time to time, invest in non-dollar denominated debt instruments or in securities
of companies domiciled or operating outside of the United States. While this is not expected to be a significant portion of the
Account's activities, investing in these securities involves considerations and possible risks not typically involved in investing
in securities of companies domiciled and operating in the United States, including instability of some governments, capital
controls, the possibility of expropriation, limitations on the use or removal of funds or other assets, changes in governmental
administration or economic or monetary policy (in the United States or abroad) or changed circumstances in dealings between nations.
The application of tax laws applicable outside the United States (e.g., the imposition of withholding taxes on interest and
dividend payments, income taxes and excise taxes) or confiscatory taxation may also affect the Account's investments. Moreover, less
information may be publicly available concerning certain of the foreign issuers of securities held by the Account than is available
concerning United States companies. The Account may incur higher expenses with respect to investments made outside the United States
compared to investing in U.S. securities because of the costs incurred in connection with conversions between various currencies and
the fact that brokerage commissions outside the United States may be higher than commissions in the United States. Non-United States
markets also may be less liquid, more volatile and less subject to governmental supervision than in the United States.

 

     

     

    

 

Recent
Developments in Europe. Global markets have experienced upheaval and above-average volatility due to developments in Europe
that have raised doubts about the ability of certain European countries to meet their sovereign debt obligations, including the recent
failure of Greece to pay interest on a portion of its outstanding bonds. The fallout from such developments could have a significant impact
on the stability and credit ratings of various European countries and financial institutions with exposure to European sovereign debt,
and even the continued viability of the European Union and the Euro currency. There can be no assurance that the Investment Adviser will
accurately predict or adequately prepare for the impact of such developments, and therefore they may have a materially negative effect
on the Account's investments, particularly those made in European entities or denominated in the Euro currency.

 

Mezzanine
Debt Securities. Mezzanine debt securities are generally unrated or below investment grade rated investments that have greater
credit and liquidity risk than more highly rated debt obligations. Mezzanine debt securities are typically issued in traditional private
placements or in connection with acquisitions and other business combinations and have no trading market. Moreover, mezzanine debt securities
are generally unsecured and subordinate to other obligations of the obligor and are subject to many of the same risks as those associated
with high yield debt securities. Adverse changes in the financial condition of the obligor of mezzanine debt securities or in general
economic conditions (including, for example, a substantial period of rising interest rates or declining earnings) or both may impair the
ability of the obligor to make payment of principal and interest. Issuers of mezzanine debt securities may be highly leveraged, and their
relatively high debt to equity ratios create increased risks that their operations might not generate sufficient cash flow to service
their debt obligations.

 

Litigation
Claims. The Account may purchase anticipated future payments to be received as the result of favorably determined litigation
or mass tort claims. The results of pending litigation are inherently uncertain. Purchasing or lending against pending litigation entails
unique risks because there is no guarantee that the relevant litigation will be favorably determined, and consequently that the Account's
investment objective will be achieved. If the relevant litigation is determined (in a court or in an out-of-court settlement) in a manner
that is adverse to the Account's interest, the Account may lose some or all of its investment.

 

Aviation
Investments. Airline business and results of operations are significantly impacted by general economic and industry conditions.
The airline industry is highly cyclical, and the level of demand for air travel is correlated to the strength of the U.S. and global economies.
Robust demand for air transportation services depends on favorable economic conditions, including the strength of the domestic and foreign
economies, low unemployment levels, strong consumer confidence levels and the availability of consumer and business credit. In addition,
airlines are subject to extensive regulatory oversight. Compliance with U.S. and international regulations imposes significant costs and
may have adverse effects on an airline.

 

In addition to factors
linked to the aviation industry, other factors that may affect the value of an aircraft at any time include: (i) the particular
maintenance and operating history of the related airframe and engines; (ii) manufacture and type or model of aircraft or
engines, including the number of operators using such type or model; (iii) whether the aircraft is subject to a lease and, if
so, whether the lease terms are favorable to the lessor; (iv) the age of the aircraft; (v) the advent of newer models of
such aircraft or aircraft types competing with such aircraft; (vi) any tax, customs, regulatory and legal requirements that
must be satisfied when an aircraft is purchased, sold or re-leased; (vii) compatibility of aircraft configurations or
specifications with other aircraft operated by operators of that type of aircraft; (viii) regulatory actions, including
mandatory grounding of the aircraft; (ix) any renegotiation of a lease on less favorable terms; (x) decreases in
creditworthiness of lessees; and (xi) the availability of spare parts. Any decrease in values of and lease rates for used
commercial aircraft which may result from the above factors or other unanticipated factors may have a material adverse effect on the
Account's investments.

 

     

     

    

 

Shipping
Investments. The maritime shipping industry is both cyclical and volatile in terms of charter rates and profitability. A worsening
of the current global economic conditions may adversely affect the Account's ability to charter or recharter its vessels or to sell them
on the expiration or termination of their charters and the rates payable in respect of its currently operating vessels, or any renewal
or replacement charters that the Account enters into may not be sufficient to allow it to operate its vessels profitably. Fluctuations
in charter rates and vessel values result from changes in the supply and demand for vessel capacity and changes in the supply and demand
for the products that such vessels carry. The factors affecting the supply and demand for vessels are outside of the Account's control,
and the nature, timing and degree of changes in industry conditions are unpredictable.

 

Trade
Claims. The Account may purchase trade claims, often in connection with the restructuring or bankruptcy of a debtor company
over which the Account is trying to exercise influence. The Account might also acquire trade claims as a means of obtaining control over
a debtor that is in the process of emerging from Chapter 11, with an intent to push for a Chapter 11 plan that converts debt to
equity or to block acceptance of any Chapter 11 plan it opposes. By purchasing trade claims in connection with a bankrupt company,
the Account could use this leverage to negotiate a more favorable Chapter 11 plan. Alternatively, the Account could retain the claim,
anticipating that the present value of any distribution at the conclusion of the case will exceed the purchase price. Although trade claims
may result in significant returns to the Account, they involve a substantial degree of risk. In order to make successful decisions regarding
the objective in connection with the acquisition of trade claims, the level of analytical sophistication, both financial and legal, necessary
to such decision-making is unusually high. In addition, if the Account has acquired trade claims with the objective of exercising influence
over a distressed company or in a bankruptcy action, the expected timing can only be estimated and there may be significant delays which
may affect the returns on such trade claim investments for the Account.

 

Interest
Rate Fluctuations. The prices of portfolio investments can be sensitive to interest rate fluctuations, and unexpected fluctuations
in interest rates could cause the corresponding prices of a position to move in directions which were not initially anticipated. In addition,
interest rate increases generally will increase the interest carrying costs to the Account of borrowed securities and leveraged investments.

 

Contrarian
Investing. The Investment Adviser believes the price of certain securities may become depressed to the point that the Investment
Adviser believes that such securities have lower downside risk than other investors may perceive (i.e., an investment will generally
be made only if it is believed that the current market price is less than the intrinsic value of the security, based on assumptions as
to asset values, total liabilities or claims, timing and the rate of return on the investment), and the Account has made or will make
certain investments in such securities. Because of the substantial uncertainty concerning the outcome of transactions involving financially
troubled companies undergoing fundamental changes, there is always the potential risk of a substantial loss.

 

Emerging
Markets. The Account may trade in emerging markets. These markets tend to be inefficient and illiquid as well as subject to
political and other factors which do not typically affect more developed economies. The Account may sustain losses as a result of market
inefficiencies or interference in emerging markets which would not take place in more developed markets.

 

     

     

    

 

Correlation
Risk. The Account will tend to have a bias toward investments in which the Investment Adviser believes prices should ultimately
hinge more on discrete, credit-specific events than the direction of the broader markets. However, in certain market environments (particularly
those characterized by widespread perceptions of systemic risk), risk asset prices can display abnormal levels of correlation. The Account's
returns could be adversely affected in scenarios like this, in which fundamental valuation metrics tend to be overwhelmed by other factors.

 

Risk
Arbitrage. Special risks are associated with the use of risk arbitrage, or "merger arbitrage," techniques. In addition
to general risks of market behavior and currency fluctuations, merger arbitrage is subject to "deal risk" — the risk of
non-consummation of the transaction. A number of factors may lead to deal collapse or delay, such as either party's inability to satisfy
conditions to closing, failure to obtain shareholder approval, failure to meet regulatory or antitrust requirements, failure to obtain
required financing, or other events that may change the target's or the acquirer's willingness to consummate the transaction.

 

Leverage
of Portfolio Companies. The Account's investments may include securities of companies with leveraged capital structures, which could
be subject to increased exposure to adverse economic factors such as an increase in interest rates, a downturn in the economy or further
deterioration in the economic conditions of such company or its industry. Similarly, the Account may invest in entities that are unable
to generate sufficient cash flow to meet principal and interest payments on their indebtedness. Accordingly, the value of the Account's
investment in such an entity could be significantly reduced or even eliminated due to further credit deterioration.

 

Uncertain
Exit Strategies; Duration of Investment Positions. The Investment Adviser typically does not know the maximum — or, often,
even the expected — duration of any particular investment at the time of initiation. Due to the illiquid nature of some of the investments
that the Account expects to make, the Investment Adviser is unable to predict with confidence what, if any, exit strategy for a given
investment will ultimately be available for the Account. Exit strategies that appear to be viable at certain times during the life cycle
of an investment may be precluded by the time the investment is ready to be realized due to economic, legal, political or other factors.
The larger the transaction in which the Account is participating, the more uncertain the Account's exit strategy tends to become. The
length of time for which a position is maintained may vary significantly, based on Arena's subjective judgment of the appropriate point
at which to liquidate a position so as to augment gains or reduce losses. Many of the Account's transactions may involve acquiring related
positions in a variety of different instruments or markets at or about the same time. Frequently, optimizing the probability of being
able to exploit the pricing anomalies among these positions requires holding periods of significant length—sometimes many months
to a year or more. Actual holding periods depend on numerous market factors which can both expedite and disrupt price convergences. There
can be no assurance that the Account will be able to maintain any particular position, or group of related positions, for the duration
required to realize the expected gains, or avoid losses, from such positions.

 

Expedited
Transactions. Investment analyses and decisions by the Investment Adviser may be undertaken on an expedited basis in order
to make it possible for the Account to take advantage of short-lived investment opportunities. In such cases, the available information
at the time of an investment decision may be limited, inaccurate and/or incomplete. Furthermore, the Investment Adviser is unlikely to
have sufficient time to fully evaluate information which is available. There is a significantly increased risk of making poor investments
when they are made on an expedited basis.

 

Inability
to Participate in Certain Investments. The Investment Adviser has numerous business commitments and relationships
worldwide. As a result of these commitments and relationships, there may be situations in which the Investment Adviser would
otherwise take a control position in an issuer, or a position adverse to the management of an issuer, but will be prevented from
doing so due to other holdings.

 

     

     

    

 

Derivatives Risks

 

Derivatives.
The Account may use various derivative instruments, such as options, futures, forwards, commodities, swaps and swaptions (including
interest rate and credit default swaps). The use of derivative instruments involves a variety of material risks, including the extremely
high degree of leverage sometimes embedded in such instruments. The derivatives markets are frequently characterized by limited liquidity,
which can make it difficult as well as costly to close out open positions in order either to realize gains or to limit losses. The pricing
relationships between derivatives and the instruments underlying such derivatives may not correlate with historical patterns, resulting
in unexpected losses.

 

Use of derivatives and other
techniques such as short sales for hedging purposes involves certain additional risks, including (i) dependence on the ability to
predict movements in the price of the securities hedged; (ii) imperfect correlation between movements in the securities on which
the derivative is based and movements in the assets of the underlying portfolio; and (iii) possible impediments to effective portfolio
management or the ability to meet short-term obligations because of the percentage of a portfolio's assets segregated to cover its obligations.
In addition, by hedging a particular position, any potential gain from an increase in the value of such position may be limited.

 

Swap
Agreements. The Account from time to time enters into various swap agreements ("Swaps") as part of its investment
program. A Swap is an individually negotiated, non-standardized agreement between two parties to exchange cash flows (and sometimes principal
amounts) measured by different interest rates, commodity prices, exchange rates, indices or prices, with payments generally calculated
by reference to a principal ("notional") amount or quantity. Swaps and similar derivative contracts are not currently traded
on exchanges; rather, banks and dealers act as principals in these markets. As a result, the Account is subject to the risk of the inability
or refusal to perform with respect to such contracts on the part of the counterparties with which the Account trades. Swaps may be subject
to various other types of risk, including market risk, liquidity risk, counterparty credit risk, legal risk and operations risk. In addition,
Swaps can involve considerable economic leverage and may, in some cases, involve significant risk of loss. Depending on their structure,
Swaps may increase or decrease exposure to the corporate credit market, equity securities, long-term or short-term interest rates, foreign
currency values, corporate borrowing rates or other factors. Swaps can take many different forms and are known by a variety of names.
The Account is not limited to any particular form of Swap if its use is consistent with the Account's investment objectives and policies,
and the Investment Adviser anticipates that the Account will invest in interest rate swaps, credit default swaps, total return swaps,
variance swaps and other types of Swaps.

 

Depending on how they are
used, Swaps may increase or decrease the overall volatility of a portfolio. The most significant factor in the performance of Swaps is
the change in the specific interest rate, currency, equity index or other factors that determine the amounts of payments due to and from
the Account. If a Swap calls for payments by the Account, the Account must be prepared to make such payments when due. In addition, if
a counterparty's creditworthiness declines, the value of a Swap with such counterparty can be expected to decline, potentially resulting
in losses by the Account.

 

Credit
Default Swap Agreements. The Account may invest in credit default swaps. The typical credit default swap contract
requires the seller to pay to the buyer, if a particular reference entity experiences specified credit events, the difference
between the notional amount of the contract and the value of a portfolio of securities issued by the reference entity that the buyer
delivers to the seller. In return, the buyer agrees to make periodic payments equal to a fixed percentage of the notional amount of
the contract. The Account may also sell credit default swaps on a basket of reference entities as part of a synthetic collateralized
debt obligation transaction.

 

     

     

    

 

As a buyer of credit default
swaps, the Account will be subject to certain risks in addition to those described elsewhere herein. In circumstances in which the Account
does not own the debt securities that are deliverable under a credit default swap, the Account will be exposed to the risk that deliverable
securities will not be available in the market, or will be available only at unfavorable prices, as would be the case in a so-called "short
squeeze." While the credit default swap market auction protocols reduce this risk, it is still possible that an auction will not
be organized or will not be successful. In certain instances of issuer defaults or restructurings (for those credit default swaps for
which restructuring is specified as a credit event), it has been unclear under the standard industry documentation for credit default
swaps whether or not a "credit event" triggering the seller's payment obligation had occurred. The creation of the ISDA Credit
Derivatives Determination Committee (the "Determination Committee") is intended to reduce this uncertainty and create
uniformity across the market, although it is possible that the Determination Committee will not be able to reach a resolution or do so
on a timely basis. In either of these cases, the Account would not be able to realize the full value of the credit default swap upon a
default by the reference entity.

 

As a seller of credit default
swaps, the Account will incur leveraged exposure to the credit of the reference entity and become subject to many of the same risks it
would incur if it were holding debt securities issued by the reference entity. However, the Account will not have any legal recourse against
the reference entity and will not benefit from any collateral securing the reference entity's debt obligations. In addition, the credit
default swap buyer will have broad discretion to select which of the reference entity's debt obligations to deliver to the Account following
a credit event and will likely choose the obligations with the lowest market value in order to maximize the payment obligations of the
Account.

 

Counterparty risk is always
present in credit default swaps. The market for credit default swaps on distressed securities is not liquid (compared to the market for
credit default swaps on investment grade corporate reference entities). If current interest rate spreads over LIBOR (or over the applicable
United States Treasury Benchmark) widen or the prevailing credit premiums on credit default swaps increase, the amount of a termination
or assignment payment upon a termination or assignment of a transaction due from the Account to the credit default swap counterparty could
increase by a substantial amount.

 

In addition, the proper tax
treatment of credit default swaps and other derivatives may not be clear. Investors are required to treat any such derivatives for United
States federal income tax purposes in the same manner as they are treated by the Account. The tax environment for derivatives is evolving
and changes in the taxation of derivatives may adversely affect the value of derivatives held by the Account.

 

Given the recent sharp increases
in volume of credit derivatives trading in the market, settlement of such contracts may also be delayed beyond the time frame originally
anticipated by counterparties. Such delays may adversely impact the Account's ability to otherwise productively deploy any capital that
is committed with respect to such contracts.

 

Certain governmental entities
have indicated that they intend to regulate the market in credit default swaps. It is difficult to predict the impact of any such regulation
on the Account, but it may be adverse (including making the Account ineligible to be a "seller" of credit default swaps).

 

Credit
Default Swaps on Loans and LCDX Transactions. The Account may invest in all types of loan credit default swaps
("LCDS") and all types of LCDX transactions, a tradable index comprising 100 equally-weighted underlying single-name
loan-only credit default swaps. LCDS are similar to credit default swaps on bonds, except that the underlying protection is sold on
syndicated secured loans of a reference entity rather than a broader category of bonds or loans. Buyers of protection pay a fixed
coupon agreed at time of trade, and receive compensation on the principal if the entity named on the contract defaults on its
secured debt. The compensation will be par minus recovery either via the protection seller paying par in return for gaining
possession of the loan or via cash settlement. Loan credit default swaps may be on single names or on baskets of loans, both
tranched and untranched.

 

     

     

    

 

The Account may also invest
in LCDX, which is the buying or selling of protection on 100 names that comprise the LCDX portfolio (i.e., the buying and selling
of 100 single-name LCDS). Buying and selling the LCDX can be compared to buying and selling a loan portfolio. When the index is bought,
the buyer is taking on the credit exposure to the loans, and is exposed to defaults similar to when a loan portfolio is bought. if the
index is sold, this exposure is passed on to someone else. The index has a fixed coupon, which is paid when the index is sold, or received
if the index is bought. The credit events that generally trigger a payout from the buyer (protection seller) of the index are bankruptcy
or failure to pay a scheduled payment on any debt (after a grace period), for any of the constituents of the index. Credit events can
be settled by physical or cash settlement. Physical settlement entails delivering the loan and receiving par. The protection seller who
took delivery of the loan holds the defaulted asset. Although this method is the traditional method of settlement, there are risks that
the notional amounts of the outstanding loans is less than the LCDS outstanding and that the LCDX counterparty will be able to take receipt
of the loans.

 

Total
Return Swaps. The Account from time to time may invest in total return swaps. As a buyer of total return swaps, the Account
will be obligated to make certain periodic payments in exchange for the total return on a referenced asset, including coupons, interest
and the gain or loss on such asset over the term of the swap. The Account may be required to maintain collateral with the total return
swap counterparty. If the Account fails to fulfill its payment obligations or fails to post any required collateral under a total return
swap, the total return swap counterparty may declare an event of default and, as a result, the Account may be required to pay swap breakage
fees, suffer the loss of the amounts paid to the counterparty and forego the receipts from the counterparty of further total return swap
payments.

 

Over-the-Counter
Derivatives Markets. The Reform Act, enacted in July 2010, includes provisions that comprehensively regulate the OTC derivatives
markets for the first time. The Reform Act will ultimately mandate that a substantial portion of OTC derivatives must be executed in regulated
markets and be submitted for clearing to regulated clearinghouses. OTC trades submitted for clearing will be subject to minimum initial
and variation margin requirements set by the relevant clearinghouse, as well as possible SEC- or CFTC-mandated margin requirements. OTC
derivatives dealers typically demand the unilateral ability to increase the Account's collateral requirements for cleared OTC trades beyond
any regulatory and clearinghouse minimums. The regulators also have broad discretion to impose margin requirements on non-cleared OTC
derivatives and new requirements will apply to the holding of customer collateral by OTC derivatives dealers. These requirements may increase
the amount of collateral the Account is required to provide and the costs associated with providing it. OTC derivative dealers also are
required to post margin to the clearinghouses through which they clear their customers' trades instead of using such margin in their operations,
as was widely permitted before the Reform Act. This has and will continue to increase the OTC derivative dealers' costs, and these increased
costs are generally passed through to other market participants in the form of higher upfront and mark-to-market margin, less favorable
trade pricing, and the imposition of new or increased fees, including clearing account maintenance fees.

 

With respect to cleared
OTC derivatives, the Account will not face a clearinghouse directly but rather through an OTC derivatives dealer that is registered
with the CFTC or SEC to act as a clearing member. The Account may face the indirect risk of the failure of another clearing member
customer to meet its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its
obligations to the clearinghouse, triggered by a customer's failure to meet its obligations to the clearing member.

 

     

     

    

 

The SEC and CFTC will also
require a substantial portion of derivative transactions that are currently executed on a bi-lateral basis in the OTC markets to be executed
through a regulated securities, futures, or swap exchange or execution facility. Certain CFTC-regulated derivatives trades became subject
to these rules starting in 2014. It is not yet clear when the parallel SEC requirements will go into effect. Such requirements may
make it more difficult and costly for investment funds, including the Account, to enter into highly tailored or customized transactions.
They may also render certain strategies in which the Account might otherwise engage impossible or so costly that they will no longer be
economical to implement. If the Account decides to become a direct member of one or more of these exchanges or execution facilities, the
Account would be subject to all of the rules of the exchange or execution facility, which would bring additional risks and liabilities,
and potential additional regulatory requirements.

 

OTC derivative dealers are
now required to register with the CFTC and will ultimately be required to register with the SEC. Dealers are subject to new minimum capital
and margin requirements, business conduct standards, disclosure requirements, reporting and recordkeeping requirements, transparency requirements,
position limits, limitations on conflicts of interest, and other regulatory burdens. These requirements further increase the overall costs
for OTC derivative dealers, which costs may be passed along to market participants as market changes continue to be implemented. The overall
impact of the Reform Act on the Account remains highly uncertain and it is unclear how the OTC derivatives markets will adapt to this
new regulatory regime, along with additional, sometimes overlapping, regulatory requirements imposed by non-U.S. regulators.

 

Convertible
Securities, Rights and Warrants. The Account may invest in hybrid securities that may be exchanged for, converted into or exercised
to acquire a predetermined number of shares of an issuer's common stock at the option of the holder during a specified time period (such
as convertible preferred stocks, convertible debentures, stock purchase rights, and warrants). Convertible securities generally pay interest
or dividends and provide for participation in the appreciation of the underlying common stock but at a lower level of risk because the
yield is higher and the security is senior to common stock. Convertible debt securities purchased by the Account that are acquired for
their equity characteristics are not subject to minimum rating requirements.

 

The value of a convertible
security is a function of its "investment value" (determined by its yield in comparison with the yields of other securities
of comparable maturity and quality that do not have a conversion privilege) and its "conversion value" (the security's worth,
at market value, if converted into the underlying common stock). The credit standing of the issuer and other factors may also affect the
investment value of a convertible security. If the conversion value is low relative to the investment value, the price of the convertible
security is governed principally by its investment value. To the extent the market price of the underlying common stock approaches or
exceeds the conversion price, the price of the convertible security is increasingly influenced by its conversion value.

 

Convertible securities may
also include warrants, often publicly traded, that give a holder the right to purchase at any time during a specified period a predetermined
number of shares of common stock at a fixed price but that do not pay a fixed dividend. Their value depends primarily on the relationship
of the exercise price to the current and anticipated price of the underlying securities.

 

Futures
Trading. The Account may trade futures contracts, including stock index futures. Futures prices are highly volatile, with
price movements being influenced by a multitude of factors such as changing supply and demand relationships, government trade,
fiscal, monetary and exchange control programs and policies, national and international political and economic events and
speculative frenzy and the emotions of the marketplace. In addition, governments from time to time intervene in certain markets,
particularly currency and interest-rate markets.

 

     

     

    

 

The low margin deposits normally
required in futures trading permit an extremely high degree of leverage; margin requirements for futures trading being in some cases as
little as 2% of the face value of the contracts traded. Accordingly, a relatively small price movement in a futures contract may result
in an immediate and substantial loss to the investor.

 

There can be no assurance
that a liquid market will exist at a time when the Account seeks to close out an option position, future or Swap. Most United States commodity
exchanges limit fluctuations in futures contract prices during a single day by regulations referred to as "daily limits." During
a single trading day, no trades may be executed at prices beyond the daily limit. Once the price of a futures contract has increased or
decreased to the limit point, positions can be neither taken nor liquidated. Futures prices have occasionally moved to the daily limit
for several consecutive days with little or no trading. Similar occurrences could prevent the Account from promptly liquidating unfavorable
positions and subject the Account to substantial losses. In addition, certain of these instruments are relatively new and are without
a significant trading history. As a result, there is no assurance that an active secondary market will develop or continue to exist. Lack
of a liquid market for any reason may prevent the Account from liquidating an unfavorable position and the Account would remain obligated
to meet margin requirements until the position is closed.

 

The CFTC and the United States
commodities exchanges impose limits referred to as "speculative position limits" on the maximum net long or net short speculative
positions that any person may hold or control in any particular futures or options contracts traded on United States commodities exchanges.
For example, the CFTC currently imposes speculative position limits on a number of agricultural commodities (e.g., corn, oats,
wheat, soybeans and cotton) and United States commodities exchanges currently impose speculative position limits on many other commodities.
The Reform Act significantly expands the CFTC's authority to impose position limits with respect to futures contracts and options on futures
contracts, swaps that are economically equivalent to futures or options on futures, and swaps that are traded on a regulated exchange
and certain swaps that perform a significant price discovery function. In response to this expansion of its authority, in 2012, the CFTC
proposed a series of new speculative position limits with respect to futures and options on futures on so-called "exempt commodities"
(which includes most energy and metals contracts) and with respect to agricultural commodities. Those proposed speculative position limits
were vacated by a United States District Court, but the CFTC has again proposed a new set of speculative position rules which are
not yet finalized (or effective). If the CFTC is successful in this second try, the counterparties with which the Account deals may further
limit the size or duration of positions available to the Account. All accounts owned or managed by the Investment Adviser are likely to
be combined for speculative position limit purposes. The Account could be required to liquidate positions it holds in order to comply
with such limits, or may not be able to fully implement trading instructions generated by its trading models, in order to comply with
such limits. Any such liquidation or limited implementation could result in substantial costs to the Account.

 

Options
Trading. When purchasing or selling an option, the risks associated with the transaction will vary depending on the type
of option (i.e., put or call). When purchasing an option, it is necessary to calculate the extent to which the value of the
underlying security must increase (in the case of a call) or decrease (in the case of a put) in order for the Account's position to
become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise
the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser
acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with
associated liabilities for margin. If the purchased option expires worthless, the Account will suffer a total loss of the amount
invested in the option that will consist of the option premium plus transaction costs.

 

     

     

    

 

 

Selling ("writing"
or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received
by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to
maintain the position if the market moves unfavorably. The seller will also be exposed to the risk of the purchaser exercising the option,
and, upon such exercise, the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest,
depending on the terms of the option. If the option is on a future, upon exercise by the purchaser of the option, the seller will acquire
a position in a future with associated liabilities for margin. If the option is "covered" by the seller holding a corresponding
position in the underlying interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of
loss can be unlimited. In the case of an option on a future, certain exchanges in some jurisdictions permit deferred payment of the option
premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject
to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any
unpaid premium outstanding at that time.

 

Forward
Contracts. Certain forward contracts may be traded on exchanges; however, forward contracts that are not traded on an exchange
are traded via banks and/or dealers who act as principals in these markets. As a result of the Reform Act, the CFTC now regulates non-deliverable
forwards (including deliverable forwards where the parties do not take delivery). Changes in the forward markets may entail increased
costs and result in burdensome reporting requirements. There is currently no limitation on the daily price movements of forward contracts.
Principals in the forward markets have no obligation to continue to make markets in the forward contracts traded. The imposition of credit
controls by governmental authorities or the implementation of regulations pursuant to the Reform Act might limit such forward trading
to less than that which the Investment Adviser would otherwise recommend, to the possible detriment of the Account.

 

Regulatory
Developments Related to Commodities Trading. Trading activities may be impacted by regulatory developments related to commodities
trading. For example, recent joint rulemaking by the CFTC and the SEC (required under the Reform Act) has broadened the definition of
 "commodities" positions to include certain types of swaps, including some foreign exchange trades, that were previously not
regulated as commodities. The precise contours of the SEC and CFTC rules remain somewhat uncertain and may change in unpredictable
ways over time. As of the date of this Memorandum, the General Partner is exempt from registration with the CFTC as a commodity pool operator
("CPO") pursuant to CFTC Rule 4.13(a)(3) which imposes certain quantitative limits on the size of commodities positions
(including positions in swaps regulated as commodities) that the Account may take. Continued reliance on CFTC Rule 4.13(a)(3) will
cause the Account to forego certain investment opportunities that might otherwise be suitable investments for the Account. In order to
avoid the trading limitations imposed by CFTC Rule 4.13(a)(3), the Investment Adviser may seek to rely on other exemptions from registration
that do not impose such limitations, or it may elect to register as a CPO with the CFTC. However, even if the Investment Adviser does
register as a CPO, it expects that it may nevertheless be able to avoid certain disclosure, recordkeeping and reporting requirements that
would otherwise apply to it (in reliance on CFTC Rule 4.7).

 

    

     

    

 

This
SUPPLEMENTAL ACKNOWLEDGMENT (this "Supplemental Acknowledgment") to the existing Investment Management Agreement between
Houston Specialty Insurance Company (the "Client") and Arena Investors, LP, a Delaware limited partnership, as investment
adviser (referred to herein as the "Investment Adviser") dated January 13, 2016 (as amended and supplemented from
time to time, the "IMA") is being entered into as of May 17, 2021.

 

The signatories below acknowledge
that a new discretionary sub-account (the "Sub-Account") is being created pursuant to the IMA that will be subject to
the terms, investment guidelines and fees described below. Capitalized terms not otherwise defined herein have the meanings set forth
in the IMA.

 

I.            Funding
Terms

 

The Sub-Account will be funded
through a commitment of $50 million (the "Initial Commitment") by the Client which will be funded by the Client in 5
tranches of $10 million (or such lesser amounts as determined and notified by the Investment Adviser), with each tranche to be funded
upon five (5) business days' notice to the Client from the Investment Adviser.

 

2. Investment Guidelines

 

The Investment Adviser's management
of the Sub-Account will be consistent with the investment guidelines set forth below.

 

		·	Asset Types: CLOs, CMBS, RMBS,
Consumer ABS, FIG Corporates, and Esoteric ABS

 

		·	Investment grade only (as defined
by industry accepted rating agencies)1

 

		·	Target position size: $1-5mm (cost
at time of purchase)

 

		·	Target average duration of four
years

 

		·	US dollar denominated investments
only

 

3.            Fees.

 

The
fees for the Sub-Account shall be as set forth in the Fee Exhibit attached hereto.

 

4.            Indemnity.

 

In addition to the terms
set forth in the indemnification provisions set forth in Section 8 of the IMA, the parties agree that: (a) the Investment Adviser
shall indemnify the Client against any liabilities, claims and expenses reasonably incurred by Client in connection with the defense
or disposition of any suit in which Client is involved as a party if such suit is reasonably related to the Investment Adviser's violation
of its Standard of Care; and (b) all determinations with respect to indemnification hereunder shall be made by a final decision
on the merits by a court or other body before whom the proceeding was brought that the Client is liable or not liable for any acts or
omissions in connection with this Agreement. All determinations to advance payment in connection with the expense of defending any proceeding
shall be made in accordance with Section 8(b) of the IMA.

 

 

1
Credit ratings represent the rating agencies' opinions regarding the credit quality of certain instruments and are not a guarantee of
future performance of such instruments. In addition, such ratings may not fully reflect the true risks of an investment in such instrument.
Finally, in recent years, many highly rated instruments have been subject to substantial losses,

 

    

     

    

 

5.            Confidentiality.

 

In addition to the confidentiality
terms set forth in Section 10 of the IMA, the parties agree that before any disclosure of information otherwise subject to Section 10
of the IMA on the grounds that such information is required by law, the Investment Adviser, to the extent permitted under such applicable
law or regulatory authority, shall so inform the Client and shall give the Client, to the greatest extent reasonably permitted and practicable,
an opportunity to seek appropriate protection of such confidential information.

 

Termination Upon Withdrawals.

 

Notwithstanding the language
in Section 7 of the IMA, unless the Investment Adviser determines otherwise, any withdrawal that would bring the Sub-Account balance
below the lesser of (i) $25,000,000 and (ii) 20% of the net asset value of the Sub-Account Assets as of the last month end before
the Withdrawal Date shall be deemed a termination of the IMA with respect to the Sub-Account.

 

6.            Representations,
Warranties and Covenants,

 

Each of the Client's representations,
warranties and covenants will be deemed repeated and reaffirmed (including with respect to the authorization of the Custodian by the Client
to pay the Management Fees and Performance Fes directly to the Investment Adviser) as of the date this Supplemental Acknowledgement is
executed.

 

IN WITNESS WHEREOF, the parties hereto have caused
the foregoing Supplemental Acknowledgment to be executed as of the date first stated above.

 

	 	HOUSTON SPECIALTY INSURANCE COMPANY 
	 	 	 
	 	By:	/s/Mark W. Haushill
	 	 	Name: Mark. W. Haushill
	 	 	Title:
	 	 	 
	 	ARENA INVESTORS, LP
	 	 	 
	 	By:	/s/Lawrence Cutler
	 	 	Name: Lawrence Cutler
	 	 	Title: Authorized Signatory

 

    

     

    

 

FEE EXHIBIT FOR INITIAL COMMITMENT

 

I.            Management
Fee.

 

A monthly management fee of [***]% ([***]% per
annum) of the net asset value of the Sub-Account attributable to the Initial Commitment shall be payable to the Investment Adviser on
the first day of each month as discussed in Exhibit A (the "Management Fee").

 

II.            Performance
Fee.

 

Further
for its services hereunder, the Investment Adviser will calculate in respect of amounts attributable to the Initial Commitment as of (A) the
end of each Fiscal Year (i.e., December 31st) and (B) each Withdrawal
Date, solely with respect to the amounts then withdrawn, [***]% (the "Performance Fee") of any excess as of such date
of the Closing Sub-Account Balance, over (x) the Opening Sub-Account Balance (including for both the Opening and Closing
Sub-Account Balances the balance attributable to any Set Aside Portions) as of the beginning of the current Fiscal Year (or, the Effective
Date, as applicable); provided, however, that the Performance Fee shall not be paid unless the Sub-Account has earned the Hurdle
from the date of the last payment of a Performance Fee (or for the first payment date from the Effective Date of the Sub-Account), it
being the intention that if the Sub-Account has earned the Hurdle the Investment Adviser shall accrue a full Performance Fee on all of
the net profits of the Sub-Account.2 If the Hurdle has not been met for any Fiscal Period, no Performance Fee shall be paid
for that Fiscal Period and entitlement to a Performance Fee shall be subject to meeting the Hurdle from the date a prior Performance Fee
was paid or for the first payment date from the Effective Date of the Sub-Account. For these purposes:

 

"Closing Sub-Account
Balance" means (i) for any Fiscal Period ending on December 31st or upon the date of termination of the
Agreement, the Sub-Account balance as of the last business day of such Fiscal Period (as adjusted for any contributions or withdrawals
during such period) or (ii) for any Fiscal Period ending as of a Withdrawal Date, the Sub-Account balance attributable to the amount
of such withdrawal as of such Withdrawal Date.

 

"Fiscal Period"
means the period beginning on the first business day of each calendar year (or the Effective Date for the first Fiscal Period) and ending
on the earlier of the last business day of such calendar year (or the date of termination for the last Fiscal Period of the Sub-Account)
and each Withdrawal Date.

 

"Hurdle"
means a [***]% per annum increase in the actual Sub-Account value on any Fiscal Period end date above the net asset value as of the immediately
preceding Fiscal Period end as to which a Performance Fee was paid (or for the first payment date from the Effective Date of the Sub-Account),
as adjusted in good faith to eliminate the effect of additions to and withdrawals from the Sub-Account. Upon any withdrawal request from
the Sub-Account, the Hurdle will be reduced pro rata based on the percentage of the Sub-Account sought to be withdrawn.

 

"Opening Sub-Account
Balance" means (i) for any Fiscal Period beginning as of the Effective Date or the first business day of any calendar year,
the Sub-Account balance as of such beginning date or (ii) for any Fiscal Period measured in connection with a withdrawal, the portion
of the Sub-Account balance as of such beginning date attributable to the amount of such withdrawal.

 

 

2
Note that this does not include new capital contributions, as clarified in the definition of Closing Sub-Account Balance.

 

    

     

    

 

This SUPPLEMENTAL ACKNOWLEDGMENT
B (this "Supplemental Acknowledgment") to the existing Investment Management Agreement between Houston Specialty Insurance
Company (the "Client") and Arena Investors, LP, a Delaware limited partnership, as investment adviser (referred to herein
as the "Investment Adviser") dated January 13, 2016 (as amended and supplemented from time to time, the "IMA")
is being entered into as of May 17, 2021.

 

The signatories below acknowledge
that a new discretionary sub-account (the "Sub-Account") is being created pursuant to the IMA and a Supplemental Acknowledgement
thereof as of the date of this Supplemental Acknowledgment that will be subject to the terms, investment guidelines and fees described
in such Supplemental Acknowledgment. Capitalized terms not otherwise defined herein have the meanings set forth in the IMA.

 

1.            Expenses.

 

The expenses for the Sub-Account shall be as set
forth in the Expenses Exhibit attached hereto.

 

2.            Conflicts &
Risk Factors.

 

The conflicts and risk factors
set forth in the IMA shall be supplemented by the additional conflicts and risk factors set forth in the Conflicts & Risk Factors
Exhibit attached hereto

 

IN WITNESS WHEREOF, the parties hereto have caused
the foregoing Supplemental Acknowledgment to be executed as of the date first stated above.

 

 

	 	HOUSTON SPECIALTY INSURANCE COMPANY 
	 	 	 
	 	By:	/s/Mark W. Haushill
	 	 	Name: Mark. W. Haushill
	 	 	Title:
	 	 	 
	 	ARENA INVESTORS, LP
	 	 	 
	 	By:	/s/Lawrence Cutler
	 	 	Name: Lawrence Cutler
	 	 	Title: Authorized Signatory

 

    

     

    

 

EXPENSES EXHIBIT

 

The Client shall bear all of its own operating
and investment expenses including, but not limited to: the fees as set forth on the Fee Exhibit attached hereto; the Sub-Account
will pay or reimburse any Arena Party for all reasonable costs, fees and third-party expenses incurred on behalf of the Sub-Account, including,
but not limited to, brokerage commissions; clearing and settlement charges; custodial fees; bank service fees; administration expenses;
valuation and appraisal expenses; interest expenses; professional and other fees and costs relating to the investigation, development,
acquisition, consummation, ownership, maintenance, monitoring, hedging or disposition of investment opportunities, whether or not consummated
(including expenses of attorneys, consultants and experts, private and commercial travel and investment software); costs of trade breaks;
costs of trade errors to the extent consistent with the Investment Adviser's Trade Error Policy; risk management expenses; insurance (including
general liability, directors and officers, errors or omissions and any cybersecurity insurance in respect of the Investment Adviser and
related sub-advisors); Management Fees; expenses related to or in connection with any governmental inquiry, investigation or proceeding
involving the Sub-Account, including the amounts of any judgments, settlements or fines paid in connection therewith; accounting and operations
expenses (including the cost of accounting software packages and relevant non-accounting software); extraordinary expenses (including,
unless otherwise stated herein, litigation, indemnification and contribution expenses) related to activities performed pursuant to this
Agreement; expenses associated with investor reports; fees and expenses of unaffiliated servicers of specific assets owned by the Sub-Account;
costs of research, information systems, software and hardware; costs of participations and other forms of compensation provided to deal
finders; fees, costs and expenses (including salaries) of third-party persons engaged to provide middle- and back-office services to the
Investment Adviser in respect of the Sub-Account and its activities; and costs and expenses associated with the preparation and distribution
of periodic reports to the Client. To the extent such costs, fees or expenses are incurred for the benefit of both the Sub-Account and
other entities managed by the Investment Adviser or its affiliates, the Investment Adviser shall make a good faith allocation of such
costs, fees or expenses among the Sub-Account, and such entities.

 

    

     

    

 

CONFLICTS & RISK FACTORS EXHIBIT

 

Capital
Structure Conflicts. The Investment Adviser anticipates that it may make an investment in respect of the Sub-Account in a company
in which another Arena client holds an investment in a different class of such company's debt or equity. In such circumstances, the Investment
Adviser may have conflicting loyalties between its duties to the Sub-Account and such other Arena client. Generally speaking, Arena expects
that the Sub-Account will make investments that potentially conflict with the interest of another Arena client only when, at the time
of investment by the Sub-Account, the Investment Adviser believes that (a) such investment is in the best interests of the Sub-Account
and (b)(i) the possibility of actual adversity between the Sub-Account and the other Arena client is remote, (ii) either the
potential investment by the Sub-Account or the investment of such other Arena client is not large enough to control any actions taken
by the collective holders of securities of such company or asset, or (iii) in light of the particular circumstances, the Investment
Adviser believes such investment is appropriate notwithstanding the potential for conflict. In those circumstances where the Sub-Account
and another Arena client hold investments in different classes of a company's debt or equity, the Investment Adviser may also, to the
fullest extent permitted by applicable law, take steps to reduce the potential for adversity between the Sub-Account and such other Arena
client, including causing the Sub-Account to take certain actions that, in the absence of such conflict, it would not take, such as (A) remaining
passive in a restructuring or similar situations (including electing not to vote or voting pro rata with other security holders), (B) investing
in the same or similar classes of securities as the other Arena Sub-Account in order to align their interests, (C) divesting investments
or (D) otherwise taking an action designed to reduce adversity. Any such step could have the effect of benefiting another Arena client
(or the Investment Adviser) and therefore may not have been in the best interests of, and may have been adverse to, the Sub-Account. A
similar standard generally will apply if another Arena client makes an investment in a company or asset in which the Sub-Account holds
an investment in a different class of such company's debt or equity securities or assets.

 

Valuation
Risks. It is anticipated that a substantial portion of the Client's portfolio will consist of illiquid and difficult to value
instruments. The Investment Adviser will be responsible for valuing instruments based on available information. The Investment Adviser
shall determine the value of such instruments in good faith, in accordance with the Investment Adviser's pricing policy, which may be
amended from time to time, copies of which shall be made available to the Client upon its reasonable request at any time. Because both
the Management Fee and Performance Fee calculations derive from the valuation of the Sub-Account Assets, the Investment Adviser faces
a conflict in valuing the Client's Sub-Account. The Investment Adviser will seek to mitigate this conflict by relying on third party sources
for valuation whenever such third party sources are reasonably available.

 

Engagement
of Advisors and Service Providers. Conflicts may arise in connection with the engagement of advisors and other service providers.
Certain advisors and other service providers, or their affiliates (including accountants, administrators, lenders, bankers, brokers, attorneys,
consultants, investment or commercial banking firms and certain other advisors and agents), to the Sub-Account may also provide goods
or services to or have business, personal, financial or other relationships with the Investment Adviser or its affiliates and/or other
Arena clients. Such advisors and service providers may be investors in other accounts, sources of investment opportunities or co-investors
or counterparties therewith. These relationships may influence the Investment Adviser in deciding whether to select or recommend such
a service provider to perform services for the Sub-Account (the cost of which will generally be borne directly or indirectly by the Sub-Account).
In certain circumstances, advisors and service providers, or their affiliates, may charge different rates or have different arrangements
for services provided to the Investment Adviser or its affiliates or other Arena clients as compared to services provided in respect of
the Sub-Account, which may result in more favorable rates or arrangements than those payable by the Sub-Account.

 

    

     

    

 

Notwithstanding the foregoing, investment transactions
for the Sub-Account that require the use of a service provider will generally be allocated to service providers on the basis of the Investment
Adviser's judgment as to best execution. In addition, the Investment Adviser or its affiliates may from time to time enter into business
arrangements with service providers to operating companies whereby the Investment Adviser or its affiliates will recommend the service
provider to operating companies held by one or more Arena clients in circumstances deemed appropriate by the Investment Adviser or its
affiliates, and the service provider will agree to provide services to all such operating companies at a discounted rate. Such arrangements
present a conflict of interest given the potential recommendation of a service provider that is providing other operating companies (in
some cases, owned by other Arena clients and/or the Investment Adviser) with services (at a discounted rate or otherwise).

 

Service Providers. In certain circumstances, the
Investment Adviser and/or its affiliates may retain third-party consultants on a full-time or part-time basis primarily to provide manufacturing,
sales, marketing, pricing, technology, human resources, acquisition integration/rationalization and/or other operations services or similar
services in respect of the Sub-Account, any alternative investment vehicle or any Investment or prospective Investment of the Sub-Account
or any alternative investment vehicle. In such circumstances, the Sub-Account may bear compensation and expenses of such consultants calculated
as fixed fees and/or performance-based fees and allocations with respect to Investments, whether in the form of cash, options, warrants,
stock, incentive equity, other stock awards or otherwise. The Sub-Account's portion of any such compensation payments and expenses will
not be deemed transaction fees and will not otherwise reduce the Management Fee. In addition, over the life of the Sub-Account, the Investment
Adviser generally expects to exercise its discretion to recommend to the Sub-Account or to an Investment thereof that it contracts for
services with various service providers, potentially including, among others, a current or prospective investors in Arena clients or its
affiliates. This subjects the Investment Adviser to potential conflicts of interest, because although it intends to select service providers
that it believes are aligned with its operational strategies and that will enhance Investment performance, the Investment Adviser may
have an incentive to recommend the related or other person or entity because of its financial or business interest.

 

Conflicts may arise whereby the Investment Adviser
may be incentivized to favor the Investment Adviser's or its affiliates' consultants or current or prospective investors to provide such
services over more qualified service providers. There is a possibility that the Investment Adviser, because of such incentive or for other
reasons (including whether the use of such persons or entities could establish, recognize, strengthen or cultivate relationships that
have the potential to provide longer-term benefits to the Investment Adviser, the Sub-Account or other Arena clients), may favor such
retention or continuation even if a better price and/or qualify of service provider could be obtained from another person or entity. In
addition, the Investment Adviser may have a conflict of interest in determining the costs of such services that will be charged to the
Sub-Account. Whether or not the Investment Adviser has a relationship with or receives financial or other benefit from recommending a
particular service provider, there can be no assurance that no other service provider is more qualified to provide the applicable services
or could provide such services at lesser cost.

 

Middle- and Back-Office Support Services. The
Investment Adviser may engage third-party services providers to provide middle- and back-office support services to the Investment Adviser
in respect of the Sub-Account's and other Arena client's activities. Persons provided by such third-party service may spend a substantial
amount of their time dedicated to the Investment Adviser as if they were employees of the Investment Adviser. The Sub-Account will bear
its allocable share of the salaries, fees and expenses of any such persons.

 

Epidemics,
Pandemics, Outbreaks of Disease and Public Health Issues. The Investment Adviser's business activities as well as the activities
in respect of the Sub-Account and its operations and investments could be materially adversely affected by outbreaks of disease, epidemics
and public health issues in Asia, Europe, North America, the Middle East and/or globally, such as COVID-19 (and other novel coronaviruses),
Ebola, H1N1 flu, H7N9 flu, H5N1 flu, Severe Acute Respiratory Syndrome, or SARS, or other epidemics, pandemics, outbreaks of disease or
public health issues. In particular, coronavirus, or COVID-19, has spread and is currently spreading rapidly around the world since its
initial emergence in December 2019 and has negatively affected (and may continue to negative affect or materially impact) the global
economy, global equity markets and supply chains (including as a result of quarantines and other government-directed or mandated measures
or actions to stop the spread of outbreaks). Although the long-term effects of coronavirus, or COVID-19 (and the actions and measures
taken by governments around the world to halt the spread of such virus), cannot currently be predicted, previous occurrences of other
epidemics, pandemics and outbreaks of disease, such as HSNI, H1N1 and the Spanish flu, had material adverse effects on the economies,
equity markets and operations of those countries and jurisdictions in which they were most prevalent. A recurrence of an outbreak of any
kind of epidemic, communicable disease, virus or major public health issue could cause a slowdown in the levels of economic activity generally
(or push the world or local economies into recession), which would be reasonably likely to adversely affect the business, financial condition
and operations of the Investment Adviser and the Sub-Account. Should these or other major public health issues, including pandemics, arise
or spread farther (or continue to worsen), the Investment Adviser and the Sub-Account could be adversely affected by more stringent travel
restrictions (such as mandatory quarantines and social distancing), additional limitations on the Investment Adviser's (or the Sub-Account's)
operations and business activities and governmental actions limiting the movement of people and goods between regions and other activities
or operations.

 

    

     

    

 

Execution Version

 

AMENDMENT AGREEMENT TO

 

THE INVESTMENT MANAGEMENT AGREEMENT

 

THIS
AMENDMENT AGREEMENT TO THE INVESTMENT MANAGEMENT AGREEMENT (the “Amendment Agreement”) is entered
into this March 23, 2022 with an effective date as of March 15, 2022, between Houston Specialty Insurance Company, Imperium
Insurance Company and Great Midwest Insurance Company (collectively the “Client”) and Arena Investors, LP, a
Delaware limited partnership, as investment manager (the “Investment Adviser”). The Client and the Investment
Adviser are sometimes each individually referred to as a “Party” and collectively as the “Parties”.
Any terms used but not defined herein have the meanings assigned to them in the IMA (as defined below).

 

Witnesseth

 

WHEREAS, the Investment Adviser
and the Client are parties to that certain Investment Management Agreement dated January 13, 2016 (the “IMA”),
pursuant to which the Investment Adviser provides certain services to the Client in respect of the Client’s investment sub-accounts
(collectively, the “Account”).

 

WHEREAS, the Parties now wish
to enter into this Amendment Agreement in order to document certain disclosures made to the Client by the Investment Adviser with respect
to the Account.

 

NOW, THEREFORE, in consideration
of the mutual promises contained herein, and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of
which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree the IMA is hereby amended as follows:

 

1.            AMENDMENTS

 

		1.1	An Annex A titled “CERTAIN DISCLOSURES” shall be inserted at the end of the IMA to read as
provided in Annex attached hereto.

 

		1.2	The Client has carefully reviewed, understands and agrees to the disclosures listed on Annex A.

 

2.            ABSENCE
OF ADDITIONAL AMENDMENTS

 

Unless otherwise agreed in this Amendment Agreement,
the terms of the IMA shall remain in full force and effect unless such terms are incompatible with the amendments set forth in Section 1
of this Amendment Agreement, in which case, such terms shall apply with the minimum modifications necessary to make them valid and enforceable.

 

3.            REPRESENTATION
AND WARRANTIES

 

		3.1	Each Party hereby reiterates and confirms the original representations and warranties given in the IMA.

 

3.2            Without
prejudice to Section 3.1 above, each Party represents and warrants that:

 

		3.2.1	it has full power to execute this Amendment Agreement and to fulfil the obligations arising thereunder;
and

 

		3.2.2	it took all the necessary steps
to authorize the execution and performance of its obligations under this Amendment Agreement.

 

    

     

    

 

 

4.            GOVERNING
LAW; ARBITRATION

 

Notwithstanding the place where this Amendment
Agreement may be executed by any of the parties hereto, the parties expressly agree that this Amendment Agreement, and all terms and provisions
hereof, shall be governed by and construed in accordance with the laws of the State of Delaware (without conflicts of laws principles).
Any dispute, controversy or claim arising out of or in connection with or relating to this Amendment Agreement or any breach or alleged
breach hereof shall be submitted to, and determined and settled by, arbitration in New York, New York, pursuant to the Comprehensive Arbitration
Rules of the Judicial Arbitration and Mediation Services, and judgment upon any such arbitral award rendered may be entered in any
court having jurisdiction thereof.

 

5.            COUNTERPARTS

 

This Amendment Agreement may be executed in any
number of identical counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the
same agreement as if the signatures to each counterpart were upon a single instrument. This Amendment Agreement shall become effective
when counterparts have been signed by each party and delivered to the other parties; provided that a facsimile signature shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original and
not a facsimile signature.

 

6.            JURY
TRIAL WAIVER.

 

EACH OF THE PARTIES TO THIS AMENDMENT AGREEMENT
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW OR IN EQUITY, ALL OF ITS RIGHTS TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING, OR COUNTERCLAIM DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AMENDMENT AGREEMENT, ANY GOVERNING DOCUMENT, THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, OR ANY ACTIONS OR OMISSIONS IN CONNECTION HEREWITH OR THEREWITH. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT, OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AMENDMENT AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    2

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
the foregoing instrument to be executed as of the date first stated above.

 

	 	GREAT MIDWEST INSURANCE COMPANY
	 	 
	 	By:	 /s/Kevin Westervelt
	 	Name: Kevin Westervelt
	 	Title: Authorized Signatory
	 	 
	 	HOUSTON SPECIALTY INSURANCE COMPANY
	 	 
	 	By:	 /s/Kevin Westervelt
	 	Name: Kevin Westervelt
	 	Title: Authorized Signatory
	 	 
	 	IMPERIUM INSURANCE COMPANY
	 	 
	 	By:	 /s/Kevin Westervelt
	 	Name: Kevin Westervelt
	 	Title: Authorized Signatory
	 	 
	 	ARENA INVESTORS, LP
	 	 
	 	By:	 /s/Lawrence Cutler
	 	Name: Lawrence Cutler
	 	Title: Authorized Signatory

 

    3

     

    

 

ANNEX A

 

CERTAIN DISCLOSURES

 

1.            Certain
Asset Servicing Expenses

 

Because many of the assets
that the Account expects to acquire require the direct and continuous supervision of asset servicing personnel, the Investment Adviser,
on behalf of the Account, will contract with its affiliate, Quaestor Advisors, LLC (“Quaestor” and together
with Arena Fortify Management LLC, and any other company ultimately owned by AMC (as defined below) established for the purpose of providing
similar services to assets from a specific industry or geographic profile, the “Affiliated Asset Service Providers”)
for the day-to-day asset servicing, including loan servicing and other ancillary services, required to maintain the types of illiquid
assets in the Account’s portfolio.

 

In addition, certain other
support functions are performed by personnel or other entities in the Arena Group, the fees of which are paid by the Account and are not
included in the Asset Servicing Expense discussed below. Each Affiliated Asset Service Provider is currently staffed primarily by individuals
who are also employees of the Arena Group to service a broad array of illiquid assets on behalf of the Account and other persons. Given
the Affiliated Asset Service Providers’ affiliation with the Investment Adviser and that personnel are providing services on behalf
of the Affiliated Asset Service Providers are employed by other entities in the Arena Group, the Investment Adviser faces a conflict in
determining whether to engage any of the Affiliated Asset Service Providers and monitoring the quality of their services.

 

In light of the unique nature
of a large portion of the Account’s assets and the efforts required to service them, it is not possible to estimate servicing costs
precisely. However, these services are estimated to cost Quaestor an annual amount per asset type set forth in the table below. Rather
than charging an amount per asset type, Quaestor will limit the charge to the Account to an amount equal to [***] basis points ([***]%)
per annum (the “Asset Servicing Expense”) of the fair value, as determined by the Investment Adviser’s
valuation committee, of that portion of Account’s illiquid assets. For the avoidance of doubt, asset servicing functions may be
performed by personnel within back office functions including, for example, operations, accounting, finance and compliance. The Investment
Adviser estimates that this will result in an aggregate annual Asset Servicing Expense in a typical year that is lower than the fees charged
for asset servicing if an amount per asset type were charged to the Account based on the rates below. However, depending on the mix of
asset types in the portfolio at any given time the fee could be higher or lower than an aggregated fee based on the rates below:

 

	Asset Type	Annual Rate
	 	 
	ABS/CDO/RMBS/CMBS/ Other Securitized Bonds	[***]%
	 	 
	Commercial/Corporate-Performing Loans/Convertibles	[***]%
	 	 
	Real Estate - Performing Loans	[***]%
	 	 
	Private Structured Transactions	[***]%
	 	 
	Commercial/Corporate Non-Performing Distressed Loans	[***]%
	 	 
	Real Estate - Non-performing Distressed Loans/REO	[***]%
	 	 
	Other Assets (Tangible)	[***]%

 

    Annex A-1

     

    

 

From time to time the Investment
Adviser will review the Asset Servicing Expense in consideration of the services provided in order to validate its belief that the Asset
Servicing Expense is comparable than the fees that would be charged for the same services if obtained from a third party. In evaluating
the Asset Servicing Expense, the Investment Adviser will consider the costs being charged for similar services by non-affiliated service
providers. However, relevant comparisons may not be available for a number of reasons, including, without limitation, because there are
a limited number of providers or users of such services or because of the confidential and/or bespoke nature of such services. For these
reasons, market comparisons may not yield market terms for comparable services. In addition to acquiring market data, the Investment Adviser
may decide from time to time to obtain benchmarking data. However, benchmarking data is based on general market overviews, rather than
determined on an asset-by-asset basis. As a result, benchmarking data does not take into account the specific characteristics of individual
assets (such as location or size, and to some degree, the specialty nature of an asset). Benchmarking studies are expensive and will be
borne by the Account and/or any other Arena client utilizing such benchmarking study, and will not offset the Management Fee.

 

In addition to the day-to-day
asset management services, the Affiliated Asset Service Providers will provide due diligence, acquisition and disposition services to
the Account for the types of assets listed above.

 

The Asset Servicing Expense
and the charges described above are in addition to, and will not offset, the Management Fee or any other fees; they are used to cover
Affiliated Asset Service Providers’ expense of engaging additional personnel and incurring additional overhead costs to manage the
illiquid assets in the Account’s portfolio, in lieu of hiring an unaffiliated third-party loan servicer.

 

The Affiliated Asset Service
Providers will not manage or receive payments in respect of the Account’s portfolio of liquid assets (i.e., Level I assets for GAAP
purposes), for which the costs of managing will be covered by the Management Fee.

 

Arena and certain of its principals
will benefit from each the Affiliated Asset Service Provider’s relationship and its receipt of fees from the Account. Such fees
and relationship enhance the value of each Affiliated Asset Service Provider as a full service asset servicing firm, and the Account will
not participate in any increase in value, tangible or intangible, of such Affiliated Asset Service Provider. Conflicts may arise in determining
whether the Affiliated Asset Service Providers have performed their obligations to the Account and/or whether the Affiliated Asset Service
Providers are entitled to be indemnified pursuant to the provisions contained in any agreement between the Affiliated Asset Service Providers
and the Account. The managers, officers, and employees of the Affiliated Asset Service Providers will devote such time as it determines
in its sole discretion to be necessary to perform its obligations under its agreement with the Account. It is expected that such individuals
will also perform services for other Arena clients and conflicts of interest may arise in allocating management time, services or functions
among the Account and such other Arena clients.

 

    Annex A-2

     

    

 

2.            Other
Costs of Service Providers and Consultants

 

It is anticipated that the
Account will bear additional expenses and charges related to certain types of assets in respect of the Account, including the expenses
of Quaestor Strategic Advisors LLC (“Quaestor Strategic Advisors”) and other charges. For example, loans, such
as term loans and revolvers, originated by Arena affiliates, clients (including the Account) and their respective portfolio investments
are anticipated to involve the engagement of Arena affiliates (including Quaestor Strategic Advisors and sourcers owned in whole or in
part by Arena Management Company (“AMC”) or other Arena funds) as a service provider. In addition, Arena Fortify
Management LLC and other affiliates, subsidiaries, and successors of AMC or Quaestor Strategic Advisors, as applicable, will provide expertise
and services to portfolio companies involved in specific sectors or geographic regions.

 

In addition, the Account will
have the right to contract with other affiliates of the Investment Adviser for asset management, loan servicing, special servicing due
diligence and ancillary services. In such an instance, such affiliate would receive fees from the Account for such services from the Account,
which gives rise to a conflict associated with the pricing of such services.

 

3.            Quaestor
Strategic Advisors; Special Expenses

 

Quaestor Strategic Advisors
consists of U.S. and non-U.S. entities utilized by affiliates of Arena (collectively with any subsidiary or successor entities thereto,
and any similar entities established for the purpose of conducting similar activities for specified groupings of companies that come under
the control of AMC, such as Arena Fortify Management LLC (the “Quaestor Entities” and together with any other
company ultimately owned by AMC established for the purpose of providing similar services to assets from a specific industry or geographic
profile, “Affiliated Asset Service Entities”). The Affiliated Asset Service Entities, in exchange for the Special
Expenses, facilitate strategic arrangements with, or engagements (including on an independent contractor or employment basis) of, any
persons that the Investment Adviser determines in good faith to be industry executives, advisors, consultants, operating executives, subject
matter experts or other persons acting in a similar capacity, to provide consulting, sourcing or other services to the Account, issuers
of investments (including with respect to potential portfolio investments of the Account) and other Arena clients and their investments
and expects to provide such services to clients not managed by the Investment Adviser in the future. The foregoing individuals are distinct
from Arena’s personnel who provide services on behalf of the Investment Adviser; however, from time to time some personnel or consultants
who are Arena employees may become employees or consultants of the Affiliated Asset Service Entities if the Investment Adviser determines
that such personnel have the specific skills, talents or other qualities to perform certain services. No lapse in service or time period
is required in order for the Affiliated Asset Service Entities to retain the services of such personnel and to commence billing the Account
for the Special Expenses.

 

In connection with such services,
the Affiliated Asset Service Entities may receive Special Expenses. Special Expenses will be retained by, and be for the benefit of, the
Affiliated Asset Service Entities and will not offset the Management Fee. The Affiliated Asset Service Entities may hire a person to perform
work for the Account and other funds advised by the Investment Adviser or for one or more investments in the Account. In such event the
expenses paid for such person will be shared by the Account and such other Arena accounts in a manner that the Investment Adviser believes
is fair and equitable. Such expenses include, but are not limited to, employee costs, consulting, legal expenses, software expenses and
insurance.

 

    Annex A-3

     

    

 

To the extent that for legal,
tax, regulatory or similar reasons it is necessary or desirable that the foregoing activities be conducted by, through or with one or
more affiliates of the Investment Adviser or other persons other than the Affiliated Asset Service Entities, such activities will be treated
for purposes of this definition as if they were conducted by the Affiliated Asset Service Entities.

 

“Special Expenses”
means salary, fees, expenses or other compensation of any nature, including performance-based bonuses, paid by the Account or an issuer
of an investment to the Affiliated Asset Service Entities (and a share of the Cost related to such entity) or any of their employees who
acts as an officer of, or in an active management role at, or in respect of, such issuer (including industry executives, advisors, consultants
(including operating consultants and sourcing consultants), operating executives, subject matter experts or other persons acting in a
similar capacity engaged or employed by an applicable Affiliated Asset Service Entity, but excluding investment professionals providing
services on behalf of the Investment Adviser that are engaged primarily in the investment activities of the Account. The Affiliated Asset
Service Entities may be engaged by and receive reimbursement for Special Expenses from the Account with respect to a potential or actual
portfolio investment or be engaged directly by a portfolio company and receive reimbursement for Special Expenses from the portfolio company.
Neither reimbursement by the Account or by the issuer of an investment shall be the exclusive means of reimbursement of Special Expenses
by the Affiliated Asset Service Entities with respect to any services provided by or expenses incurred by the Affiliated Asset Service
Entities.

 

“Cost”
means overhead costs including office leases and related expenses (such as rent, utilities and other related expenses), information technology
and related support (such as applications, licenses, data/cybersecurity software and services and other related expenses), legal, regulatory
compliance, human resources, accounting and internal audit, insurance, and other operating costs (e.g., travel, employee activities, working
meals and supplies). For the avoidance of doubt, “Cost” will typically increase on a per client basis if fewer clients of
the Investment Adviser utilize the applicable Affiliated Asset Service Entity or other affiliated service provider as the costs are spread
among fewer additional persons.

 

4.            Ongoing
Account Expenses

 

For the avoidance of doubt,
costs related to services provided to the Account by certain personnel of the Investment Adviser or its affiliates will be charged to
the Account where such activities are outside of the services expected to be provided under the IMA. Such services are generally of a
type that the Investment Adviser would otherwise hire a third party.

 

The Account will bear the
expense for retaining additional personnel who will source investments on behalf of the Account and report to the applicable personnel
employed by the Investment Adviser with respect to such investment origination. Such amounts will be in addition to the Management Fee.

 

5.            Diversification
Target

 

For the avoidance of doubt,
the Investment Adviser may, in its sole discretion, determine that for the purposes of the limit on investments in any single issuer,
investments will not be combined with other investments (even if investing in multiple developments within a geographic region with a
single joint venture partner). Any deviation from this limit will be reported to the Client in the next quarterly reports.

 

    Annex A-4

     

    

 

6.            Leverage

 

Leverage for the Account is
expected in some cases to be obtained on a joint and several or cross-collateralized basis with other Arena accounts and affiliates. The
Account intends to enter into credit facilities on a joint and several or cross-collateralized basis with other Arena accounts and certain
affiliates. Such credit facilities may include implementing leverage for investments that will be purchased by or contributed to a special
purpose vehicle (“SPV”) for the purpose of co-investment in certain assets with other Arena accounts and which
may further involve the sale of a portion of loans originated by such SPVs to other Arena accounts (directly or indirectly through another
SPV structure that is co-owned by the Account and other Arena accounts) including other entities that are wholly-owned by the Investment
Advisor or its parent. If there were a failure by one or more of the other borrowers in a cross-collateralized facility, the Account could
be responsible for the repayment of any such defaulted portion, even if the loan proceeds were not extended to the Account but to another
borrower included in the facility. In addition, in respect of any investment purchased with borrowed funds, the relevant lender may obtain
certain restrictive or other consent rights in relation to such investment upon a default of a coborrower or the Account. Such rights
may hinder the ability of the other co-borrowers, including the Account, to sell, amend or otherwise deal in the relevant asset.

 

7.            New
Ventures

 

In furtherance of the Account’s
investment strategy, the Investment Adviser may form, fund, and invest in, new going-concerns or other new businesses or business lines
(individually, a “New Venture Party” and collectively, the “New Venture Parties”),
and then cause such New Venture Parties to commence business operations, whether alone, or together with the Account and/or one or more
other Arena accounts.

 

Such lines of business will
be newly formed entities with no operating history or track record upon which to evaluate the New Venture Party’s performance. Investing
in new ventures is inherently riskier that investing in existing going-concerns. New ventures generally have less predictable operating
results, could from time to time be parties to litigation, are often engaged in rapidly changing businesses with products subject to a
substantial risk of obsolescence, could require a large amount of time and attention from the Investment Adviser, could require substantial
additional capital to support their operations, finance expansion or maintain their competitive position, and if such new ventures have
difficulty accessing the capital markets to meet future capital needs, will limit their ability to grow. In addition, the success of new
ventures depends in large part on the management talents and efforts of a small group of persons and their ability to work together. In
the case of the New Venture Parties, the persons, some of whom are performing critical functions, will not necessarily know each other
and have no experience working together, which enhances the risk profile of the New Venture Parties. In addition, the death, disability,
resignation or termination of one or more of these persons could have a material adverse impact on these ventures’ ability to meet
their obligations.”

 

In addition, Arena could
in the future develop new businesses, such as providing investment banking, advisory and other services to corporations, financial
sponsors, management or other persons. Such services could relate to transactions that could give rise to investment opportunities
that are suitable for the Account. In such case, Arena’s client would typically require it to act exclusively on its behalf,
thereby precluding the Account from participating in such investment opportunities. Arena would not be obligated to decline any such
engagements in order to make an investment opportunity available to the Account. In addition, it is possible Arena or its affiliates
will come into the possession of information through these new businesses that limits the Account’s ability to engage in
potential transactions.

 

    Annex A-5

     

    

 

8.            Custody
Rule

 

The Account will bear the
Investment Adviser’s expenses for complying with the custody rule under the Advisers Act. The Investment Adviser will determine
how to comply with the custody rule in its sole discretion and charge such amounts to the Account. Such amounts will be in addition
to the Management Fee.

 

9.            Affiliated
Broker-Dealer

 

The Investment Adviser is
an affiliate of Arena Financial Services, LLC (“AFS”), which is registered as a broker-dealer in the U.S. with
the SEC and FINRA and may become an affiliate of or establish other broker-dealers in the future. Such broker-dealers (including their
respective related lending vehicles) could manage or otherwise participate in underwriting syndicates and/or selling groups with respect
to portfolio companies of the Account or otherwise be involved in the private placement of debt or equity securities or instruments issued
by the Account’s portfolio companies and non-controlling entities in or through which the Account invests (including by placing
securities issued by such portfolio companies with co-investors) or otherwise in arranging or providing financing for portfolio companies
alone or with other lenders, which could include the Account and other Arena clients. As a consequence, such affiliated broker-dealers
could hold positions in instruments and securities issued by the Account’s portfolio companies and engage in transactions that could
also be appropriate investments for the Account. Such broker-dealers will generally (subject to applicable law) receive underwriting fees,
placement commissions, financing fees, interest payments or other compensation with respect to such activities, which are not required
to be shared with the Account. Where an affiliated broker-dealer serves as underwriter with respect to a portfolio company’s securities,
the Account will generally be subject to a “lock-up” period following the offering under applicable regulations or agreements
during which time its ability to sell any securities that it continues to hold is restricted. This could prejudice the Account’s
ability to sell of such securities at an opportune time.

 

In addition, in circumstances
where a portfolio company becomes distressed and the participants in an offering undertaken by such portfolio company have a valid claim
against the underwriter, the Account would have a conflict in determining whether to sue its affiliated broker-dealer. In circumstances
where a non-affiliate broker-dealer has underwritten an offering, the issuer of which becomes distressed, the Account will also have a
conflict in determining whether to bring a claim on the basis of concerns regarding Arena’s relationship with the broker-dealer.

 

10.            Certain
Additional Risk Factors

 

Market
Disruptions; Governmental Intervention; Dodd-Frank Wall Street Reform and Consumer Protection Act. The global financial
markets have in the past gone through pervasive and fundamental disruptions that have led to extensive and unprecedented
governmental intervention. Such intervention has in certain cases been implemented on an “emergency” basis, suddenly and
substantially eliminating market participants’ ability to continue to implement certain strategies or manage the risk of their
outstanding positions. In addition — as one would expect given the complexities of the financial markets and the limited time
frame within which governments have felt compelled to take action — these interventions have typically been unclear in scope
and application, resulting in confusion and uncertainty which in itself has been materially detrimental to the efficient functioning
of the markets as well as previously successful investment strategies.

 

    Annex A-6

     

    

 

The Account may incur major
losses in the event of disrupted markets and other extraordinary events in which historical pricing relationships become materially distorted.
The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it
difficult or impossible to close out positions against which the markets are moving. The financing available to the Account from its banks,
dealers and other counterparties is typically reduced in disrupted markets. Such a reduction may result in substantial losses to the Account.
Market disruptions may from time to time cause dramatic losses for the Account, and such events can result in otherwise historically low-risk
strategies performing with unprecedented volatility and risk.

 

In the United States, the
Dodd-Frank Act was signed into law in July 2010. The Dodd-Frank Act established rigorous oversight standards to protect the U.S.
economy and American consumers, investors and businesses. The Dodd-Frank Act and related CFTC and SEC rulemakings require additional regulation
of fund and derivative managers, including requirements for such managers to register as investment advisers under the Advisers Act, and
disclose certain information to regulators about their funds, investors, positions, counterparties, and exposures. The Dodd-Frank Act
is in the process of being implemented based on the adoption of various regulations and reports being promulgated by various authorities
over a period of time. While certain significant rules have gone into effect, the regulators are currently in the process of proposing
and promulgating additional regulations, and it is unknown in what form, when, and in what order all of the regulations may be implemented
or the impact any such implemented regulations will have on Arena and the Account.

 

Regulatory
Risks Associated with Investment Level Leverage. The Account may implement collateralized
loan obligations (“CLOs”) in order to secure leverage. The applicable risk retention
rules require a sponsor or a “majority-owned affiliate” thereof of a securitization transaction, such as a CLO (in the
case of U.S. Risk Retention Rules) or certain other eligible entities (in the case of EU/UK Risk Retention Rules), to retain at least
5% of the economic interest in the credit risk of the securitized assets (the “Retention Interests”).

 

Under the U.S. Risk Retention
Rules, a “majority-owned affiliate” of a sponsor may hold Retention Interests. For purposes of satisfying obligations under
the U.S. Risk Retention Rules, Arena, as asset manager (a “CLO Manager”) of any CLO implemented by the Account,
expects to retain, as sponsor, or to cause one of its “majority-owned affiliates” to retain, Retention Interests in each such
CLO. There has been limited guidance regarding how entities may be structured for this purpose, and therefore the regulatory environment
in which any such CLOs would operate is uncertain. There can be no assurance that applicable governmental authorities will agree that
any of the transactions, structures or arrangements entered into by Arena, and the manner in which it expects to hold Retention Interests,
will satisfy the U.S. Risk Retention Rules. If such transactions, structures or arrangements are determined not to comply with the U.S.
Risk Retention Rules, Arena and the Account could become subject to regulatory action. The impact of the U.S. Risk Retention Rules on
the securitization market is also unclear and such rules may negatively impact the value of the CLOs and their underlying assets.

 

    Annex A-7

     

    

 

Epidemics,
Pandemics, Outbreaks of Disease and Public Health Issues. The Investment Adviser’s business activities as well as
the activities in respect of the Account and its operations and investments could be materially adversely affected by outbreaks of
disease, epidemics and public health issues in Asia, Europe, North America, the Middle East and/or globally, such as COVID-19 (and
other novel coronaviruses), Ebola, H1N1 flu, H7N9 flu, H5N1 flu, Severe Acute Respiratory Syndrome, or SARS, or other epidemics,
pandemics, outbreaks of disease or public health issues. In particular, coronavirus, or COVID-19, has spread and is currently
spreading rapidly around the world since its initial emergence in December 2019 and has negatively affected (and may continue
to negative affect or materially impact) the global economy, global equity markets and supply chains (including as a result of
quarantines and other government-directed or mandated measures or actions to stop the spread of outbreaks). Although the long-term
effects of coronavirus, or COVID-19 (and the actions and measures taken by governments around the world to halt the spread of such
virus), cannot currently be predicted, previous occurrences of other epidemics, pandemics and outbreaks of disease, such as H5N1,
H1N1 and the Spanish flu, had material adverse effects on the economies, equity markets and operations of those countries and
jurisdictions in which they were most prevalent. A recurrence of an outbreak of any kind of epidemic, communicable disease, virus or
major public health issue could cause a slowdown in the levels of economic activity generally (or push the world or local economies
into recession), which would be reasonably likely to adversely affect the business, financial condition and operations of the
Investment Adviser and the Account. Should these or other major public health issues, including pandemics, arise or spread farther
(or continue to worsen), the Investment Adviser and the Account could be adversely affected by more stringent travel restrictions
(such as mandatory quarantines and social distancing), additional limitations on the Investment Adviser’s (or the
Account’s) operations and business activities and governmental actions limiting the movement of people and goods between
regions and other activities or operations.

 

Risks
Relating to SPACs. The Account may invest in one or more special purpose acquisition companies (each, a “SPAC”).
Thus, a portion of the Account’s profits will be dependent on a SPAC’s ability to successfully complete its IPO and initial
business combination transaction, the performance of a SPAC and of its acquired company at, and following, the business combination and
the market value of a SPAC’s securities. An investment in a SPAC, including SPACs sponsored by Arena SPAC Persons (as defined below),
creates a number of significant risks, including those described below.

 

Risks associated with investing
in a SPAC include, among other things, that: (i) such SPAC may not be able to locate or acquire target companies by the deadline;
(ii) the value of any target company may decrease following its acquisition by such SPAC; (iii) the value of the funds invested
and held in the trust decline; (iv) the inability to redeem due to the failure to hold the securities in the SPAC as of the record
date or the failure to vote against the acquisition; and (v) if the SPAC is unable to consummate a business combination, public stockholders
(including the Account) will be forced to wait until the deadline before liquidating distributions are made. If a SPAC is unable to locate
and acquire target companies by the deadline, the SPAC may be forced to liquidate its assets, which may result in losses due to the expenses
and liabilities of the SPAC.

 

The Account may invest
in a SPAC that, at the time of investment, has not selected or approached any prospective target businesses with respect to a
business combination. In such circumstances, there may be an extremely limited basis for the Account to evaluate the possible merits
or risks of such SPAC’s investment in any particular target business. Also, to the extent that a SPAC completes a business
combination, it may be affected by numerous risks inherent in the business operations of the acquired company or companies, and
there is no guarantee that a SPAC that completes a business combination will exceed the per share value of the SPAC’s equity
previously held in trust.

 

    Annex A-8

     

    

 

 

Also, certain affiliates and
key persons of the Investment Adviser (the “Arena SPAC Persons”) may serve in the future as a sponsor to, certain
SPACs in which certain Arena clients will invest in the future (a “Related SPAC”). Although the Arena SPAC Persons
will endeavor to evaluate the risks inherent in a particular target business for any Related SPAC, there is no guarantee that Arena SPAC
Persons will properly ascertain or assess all of the significant risk factors or that they will have adequate time to complete due diligence.
Furthermore, some of these risks may be outside of the target business and outside of any Related SPAC’s control and leave a Related
SPAC with no ability to control or reduce the chances that those risks will adversely impact a target business. In addition, there can
be no assurance that a target business will be profitable or successful in its operations following the business combination.

 

Arena SPAC Persons, the Account
and other Arena affiliated investment accounts managed by it or by an affiliate may, from time to time, be allocated Sponsor Equity (as
defined below) in connection with a Related SPAC. For the avoidance of doubt, the Account may not be offered such opportunities depending
on the circumstances of the SPAC. The Sponsor Equity will be worthless if a Related SPAC does not complete an initial business combination.
As a result, the Arena SPAC Persons may have different interests in considering and supporting any proposed de-SPAC business combination
transaction than the Account. Additionally, as a holder of Sponsor Equity the Account will incur its pro rata portion of any upfront costs
incurred in connection with the formation of any Related SPAC, and there is no guarantee that the Account would receive any return on
its investment in Sponsor Equity.

 

Investments in SPACs are speculative and involve
a high degree of risk.

 

PIPE
Transactions. The Account may participate in PIPE transactions, including PIPE transactions associated with Related SPACs.
Special investments in public companies whose stocks are quoted on stock exchanges or which trade in the over-the-counter securities market,
a type of investment commonly referred to as a “PIPE” transaction, may be entered into with smaller capitalization
public companies, which will entail business and financial risks comparable to those of investments in the publicly issued securities
of smaller capitalization companies. Such companies may also be less likely to weather business or cyclical downturns than larger companies
and are more likely to be substantially hurt by the loss of a few key personnel. In addition, PIPE transactions will generally result
in the Account acquiring either restricted stock or an instrument convertible into restricted stock. As with investments in other types
of restricted securities, such an investment may be illiquid. The Account’s ability to dispose of securities acquired in PIPE transactions
may depend on the registration of such securities for resale. Any number of factors may prevent or delay a proposed registration. Alternatively,
it may be possible for securities acquired in a PIPE transaction to be resold in transactions exempt from registration in accordance with
Rule 144 under the Securities Act, or otherwise under U.S. federal securities laws. There can be no guarantee that there will be
an active or liquid market for the stock of any small capitalization company due to the possible small number of stockholders. As a result,
even if the Account is able to have securities acquired in a PIPE transaction registered or sell such securities through an exempt transaction,
the Account may not be able to sell all the securities on short notice, and the sale of the securities could lower the market price of
the securities. There is no guarantee that an active trading market for the securities will exist at the time of disposition of the securities,
and the lack of such a market could hurt the market value of the Account’s investments.

 

    Annex A-9

     

    

 

Conflicts
Relating to Investments in SPACs and PIPEs. Certain Arena SPAC Persons expect in the future to sponsor one or more SPACs, in
which Arena clients will invest in the future in various capacities. A SPAC is a publicly traded company formed for the purpose of raising
capital through an IPO to fund the acquisition, through a merger, capital stock exchange, asset acquisition or other similar business
combination, of one or more operating businesses.

 

It is expected that one or
more Arena SPAC Persons will sponsor one or more Related SPACs in the future. In connection with sponsoring a Related SPAC and managing
the Arena clients’ investments in such SPACs, Arena SPAC Persons are and will be faced with actual and potential conflicts of interest,
as set out in more detail below.

 

For the avoidance of doubt,
the Account may or may not be offered positions in such investments based on the Investment Adviser’s policies.

 

Allocation of Time and Resources

 

None of the Arena SPAC Persons
are required to devote any particular amount of time to the Account or any other Arena clients. The devotion of time and effort of certain
Arena SPAC Persons to sponsoring any Related SPAC could be viewed as creating a conflict of interest in that the time and effort of certain
Arena SPAC Persons will not be devoted exclusively to the business of the Account and the Investment Adviser but will be allocated between
the business of the Account and the Investment Adviser, on the one hand, and other business activities, including the activities of such
SPACs, on the other hand, including diligencing target companies and management teams and effecting a merger with a target. In addition,
in connection with sponsoring any Related SPAC it is anticipated that Arena SPAC Persons may serve as directors and/or officers of such
SPACs and/or any acquisition target of such SPACs that becomes publicly listed on an exchange (each such company, an “Acquired
Company”). Arena SPAC Persons may face a conflict between the duties owed to the Account and the duties owed to such SPACs
or Acquired Companies. In such circumstances, such persons may act in ways that are in the best interests of such SPACs or Acquired Companies
but not the Account. For example, such SPAC may decline an opportunity to merge with a company in which the Account is invested or may
merge with a company that competes directly with a company in which the Account is invested. There can be no assurance that the board
membership and/or the involvement of certain Arena SPAC Persons with respect to such SPACs or Acquired Companies, in each case, will result
in favorable results for the Account.

 

Board of Director Compensation

 

From time to time, Arena SPAC
Persons may receive compensation (whether in the form of cash, options, warrants, stock or otherwise) in connection with serving as a
director of a SPAC or an Acquired Company in which the Account is invested. With respect to any cash payments received by an Arena SPAC
Person in connection with such board positions, such amounts will be applied to reduce the Management Fees paid by the Management Fee-bearing
Shareholders. Any other compensation received in connection with such board positions as non-cash payments (e.g., stock, options, warrants
or otherwise) will not be used to offset Management Fees and will be retained by Arena SPAC Persons. For the avoidance of doubt, only
cash compensation received by Arena SPAC Persons in connection with serving as a director of a SPAC or an Acquired Company will offset
Management Fees, unlike instances in which Transaction Fees are received. Given these differences, the Investment Adviser may face a conflict
of interest in allocating investment opportunities of the Account.

 

    Annex A-10

     

    

 

SPAC Sponsor Economics

 

Certain Arena SPAC Persons
expect to receive, economic benefits in connection with serving as a sponsor of a SPAC (“Sponsor Equity”). It
is expected that with respect to any Related SPAC, certain Arena SPAC Persons will receive similar economic benefits and such economic
benefits will be shared with the Arena clients only to a limited extent as determined by the sponsor of such Related SPAC in its own discretion,
without the requirement of notifying the Account and/or the Limited Partners.

 

Account Participation in SPACs and PIPEs

 

In addition to receiving an
allocation of Sponsor Equity with respect to a SPAC, the Account may participate in an IPO of a SPAC and to the extent there is a PIPE
formed in connection with a SPAC, the Account may also participate in the associated PIPE. However, there is no guarantee that the Account
will be allocated such SPAC and PIPE opportunities.

 

In respect of any Related
SPAC, the Account and certain other Arena clients may receive an allocation of Sponsor Equity, participate in an IPO of such SPACs, enter
into a forward purchase agreement with such SPACs and/or participate in any associated PIPE. By directing the Account to enter into such
transactions with such SPACs and/or participate in any associated PIPE, the Investment Adviser is presented with a conflict of interest.
The Investment Adviser, on the one hand, is incentivized to increase the value of any Related SPAC or Acquired Company, thus preserving
the benefits associated with its Sponsor Equity, including by having the Account invest in the related PIPE, which may help fund redemptions
upon a de-SPAC transaction and ensure the success of a business merger. In addition, because of the economics associated with the Sponsor
Equity, the Arena SPAC Persons are incentivized to enter into a merger with any target in order to reap the benefits of the Sponsor Equity,
even if the securities of the Acquired Company are not ultimately a profitable investment for the Arena clients. This may be exacerbated
by the possibility that the Arena SPAC Persons could receive significant profits in respect of the Sponsor Equity, even where the Account
receives only minimal or no profits in respect of its PIPE investment. Such Arena SPAC Persons, on the other hand, owe certain duties
to the Account. Thus, the Investment Adviser faces a conflict of interest in determining the size and scope of the Account’s investment
in any Related SPAC or Acquired Company. Further, there is no guarantee that such investment in any Related SPAC or Acquired Company would
have been entered into but for certain Arena SPAC Persons serving as a sponsor to such SPACs. Arena has adopted written policies and procedures
to help address any actual and potential conflicts arising out of its affiliation with a SPAC and/or a PIPE.

 

In connection with any Related
SPAC’s IPO, the Account may enter into a forward purchase agreement with an issuer to participate in a private placement transaction,
which would close concurrently with the initial business combination of such SPAC. The terms of such forward purchase agreement would
be negotiated by the Investment Adviser, on behalf of the Account, in its discretion. Thus, the Account could be in a position of providing
capital to support the Arena SPAC Persons’ acquisition of Sponsor Equity with no guarantee that such capital investment will be
profitable for the Account.

 

    Annex A-11

     

    

 

Potential Engagement with Issuers

 

In connection with its investment
activities, any Related SPAC may engage with issuers in which the Arena clients invest or other companies with respect to which the Arena
clients,

 

including the Account, transact business. There
is no guarantee such engagement by such SPAC will be beneficial to the Arena clients, and the interests of the Arena clients may not be
aligned in all circumstances with the interests of such SPAC with respect to any such issuers, which could create actual or potential
conflicts of interest or the appearance of such conflicts for such SPAC, the Arena clients, the Investment Adviser and/or its affiliates.
In that regard, actions may be taken by such SPAC that are adverse to the Account.

 

The Investment Adviser will
allocate investment opportunities involving SPACs, SPAC IPOs and PIPE investments in accordance with its investment allocation policies
and procedures then in effect.

 

Credit
Default Swap Agreements. The Account may invest in credit default swaps. The typical credit default swap contract requires
the seller to pay to the buyer, if a particular reference entity experiences specified credit events, the difference between the notional
amount of the contract and the value of a portfolio of securities issued by the reference entity that the buyer delivers to the seller.
In return, the buyer agrees to make periodic payments equal to a fixed percentage of the notional amount of the contract. The Account
may also sell credit default swaps on a basket of reference entities as part of a synthetic collateralized debt obligation transaction.

 

As a buyer of credit default
swaps, the Account will be subject to certain risks in addition to those described elsewhere herein. In circumstances in which the Account
does not own the debt securities that are deliverable under a credit default swap, the Account will be exposed to the risk that deliverable
securities will not be available in the market, or will be available only at unfavorable prices, as would be the case in a so-called “short
squeeze.” While the credit default swap market auction protocols reduce this risk, it is still possible that an auction will not
be organized or will not be successful. In certain instances of issuer defaults or restructurings (for those credit default swaps for
which restructuring is specified as a credit event), it has been unclear under the standard industry documentation for credit default
swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. The Credit Derivatives
Determination Committees (the “Determination Committees”) are intended to reduce this uncertainty and create
uniformity across the market, although it is possible that a Determination Committee will not be able to reach a resolution or do so on
a timely basis. In either of these cases, the Account would not be able to realize the full value of the credit default swap upon a default
by the reference entity.

 

As a seller of credit default
swaps, the Account will incur leveraged exposure to the credit of the reference entity and become subject to many of the same risks it
would incur if it were holding debt securities issued by the reference entity. However, the Account will not have any legal recourse against
the reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In addition, the
credit default swap buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to the
Account following a credit event and will likely choose the obligations with the lowest market value in order to maximize the payment
obligations of the Account.

 

Counterparty risk is always
present in credit default swaps, although central clearing of certain credit default swaps is intended to reduce counterparty risk by
imposing the central clearing house as the counterparty to each cleared swap. The market for credit default swaps on distressed securities
is not liquid (compared to the market for credit default swaps on investment grade corporate reference entities).

 

    Annex A-12

     

    

 

In addition, the proper tax
treatment of credit default swaps and other derivatives may not be clear. Limited Partners generally are required to treat any such derivatives
for U.S. federal income tax purposes in the same manner as they are treated by the Account. The tax environment for derivatives is evolving
and changes in the taxation of derivatives may adversely affect the value of derivatives held by the Account.

 

Given the recent sharp increases
in volume of credit derivatives trading in the market, settlement of such contracts may also be delayed beyond the time frame originally
anticipated by counterparties. Such delays may adversely impact the Account’s ability to otherwise productively deploy any capital
that is committed with respect to such contracts.

 

Certain governmental entities
have indicated that they intend to regulate the market in credit default swaps. It is difficult to predict the impact of any such regulation
on the Account, but it may be adverse (including making the Account ineligible to be a “seller” of credit default swaps).

 

Total
Return Swaps. The Account from time to time may invest in total return swaps. As a buyer of total return swaps, the Account
will be obligated to make certain periodic payments in exchange for the total return on a referenced asset, including coupons, interest
and the gain or loss on such asset over the term of the swap. The Account may be required to maintain collateral with the total return
swap counterparty. If the Account fails to fulfill its payment obligations or fails to post any required collateral under a total return
swap, the total return swap counterparty may declare an event of default and, as a result, the Account may be required to pay swap breakage
fees, suffer the loss of the amounts paid to the counterparty and forego the receipts from the counterparty of further total return swap
payments.

 

Over-the-Counter Derivatives
Markets. The Dodd-Frank Act, enacted in July 2010, includes provisions that comprehensively regulate the OTC derivatives markets
for the first time. The Dodd-Frank Act will ultimately mandate that a substantial portion of OTC derivatives must be executed in regulated
markets and be submitted for clearing to regulated clearinghouses. OTC trades submitted for clearing will be subject to minimum initial
and variation margin requirements set by the relevant clearinghouse, as well as possible SEC- or CFTC-mandated margin requirements. OTC
derivatives dealers typically demand the unilateral ability to increase the Account’s collateral requirements for cleared OTC trades
beyond any regulatory and clearinghouse minimums. The regulators also have broad discretion to impose margin requirements on non-cleared
OTC derivatives and new requirements will apply to the holding of customer collateral by OTC derivatives dealers. These requirements may
increase the amount of collateral the Account is required to provide and the costs associated with providing it. OTC derivative dealers
also are required to post margin to the clearinghouses through which they clear their customers’ trades instead of using such margin
in their operations, as was widely permitted before the Dodd-Frank Act. This has and will continue to increase the OTC derivative dealers’
costs, and these increased costs are generally passed through to other market participants in the form of higher upfront and mark-to-market
margin, less favorable trade pricing, and the imposition of new or increased fees, including clearing account maintenance fees.

 

With respect to cleared
OTC derivatives, the Account will not face a clearinghouse directly but rather through an OTC derivatives dealer that is registered
with the CFTC or SEC to act as a clearing member. The Account may face the indirect risk of the failure of another clearing member
customer to meet its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its
obligations to the clearinghouse, triggered by a customer’s failure to meet its obligations to the clearing member.

 

    Annex A-13

     

    

 

The SEC and CFTC will also
require a substantial portion of derivative transactions that were historically executed on a bi-lateral basis in the OTC markets to be
executed through a regulated securities, futures, or swap exchange or execution facility. Some types of CFTC-regulated swaps (including
interest rate swaps and credit default index swaps on North American and European indices) are required to be centrally cleared and exchange-traded,
and additional types of swaps may be required to be centrally cleared and exchange traded in the future. In December 2019, the SEC
adopted a package of rule amendments that “stood up” its regulatory regime with regard to security-based swaps became
effective, and as of November 2021, security-based swap dealers will be required to register with the SEC and most of the SEC’s
regulations of security-based swaps come into effect. Such requirements may make it more difficult and costly for investment funds, including
the Account, to enter into highly tailored or customized transactions. They may also render certain strategies in which the Account might
otherwise engage impossible or so costly that they will no longer be economical to implement. If the Account decides to become a direct
member of one or more of these exchanges or execution facilities, the Account would be subject to all of the rules of the exchange
or execution facility, which would bring additional risks and liabilities, and potential additional regulatory requirements.

 

OTC derivative dealers are
now required to register with the CFTC and will ultimately be required to register with the SEC. CFTC-registered swap dealers are and
SEC-registered security-based swap dealers will be subject to minimum capital and margin requirements, business conduct standards, disclosure
requirements, reporting and recordkeeping requirements, transparency requirements, position limits, limitations on conflicts of interest,
and other regulatory burdens. These requirements further increase the overall costs for registered swap dealers and are expected to increase
the overall costs for registered security-based swap dealers, which costs may be passed along to market participants as market changes
continue to be implemented. The overall impact of the Dodd-Frank Act on the Account is not yet known, and it is unclear how the OTC derivatives
markets will ultimately adapt to this regulatory regime, along with additional, sometimes overlapping, regulatory requirements imposed
by non-U.S. regulators.

 

Futures
Trading. The Account may trade futures contracts, including stock index futures. Futures prices are highly volatile, with price
movements being influenced by a multitude of factors such as changing supply and demand relationships, government trade, fiscal, monetary
and exchange control programs and policies, national and international political and economic events and speculative frenzy and the emotions
of the marketplace. In addition, governments from time to time intervene in certain markets, particularly currency and interest-rate markets.

 

The low margin deposits normally
required in futures trading permit an extremely high degree of leverage; margin requirements for futures trading being in some cases as
little as 2% of the face value of the contracts traded. Accordingly, a relatively small price movement in a futures contract may result
in an immediate and substantial loss to the investor.

 

There can be no assurance
that a liquid market will exist at a time when the Account seeks to close out an option position, future or Swap. Most U.S. commodity
exchanges limit fluctuations in futures contract prices during a single day by regulations referred to as “daily limits.”
During a single trading day, no trades may be executed at prices beyond the daily limit.

 

    Annex A-14

     

    

 

Once the price of a futures contract has increased
or decreased to the limit point, positions can be neither taken nor liquidated. Futures prices have occasionally moved to the daily limit
for several consecutive days with little or no trading. Similar occurrences could prevent the Account from promptly liquidating unfavorable
positions and subject the Account to substantial losses. In addition, certain of these instruments are relatively new and are without
a significant trading history. As a result, there is no assurance that an active secondary market will develop or continue to exist. Lack
of a liquid market for any reason may prevent the Account from liquidating an unfavorable position and the Account would remain obligated
to meet margin requirements until the position is closed.

 

The CFTC and the U.S. commodities
exchanges impose limits referred to as “speculative position limits” on the maximum net long or net short speculative positions
that any person may hold or control in any particular futures or options contracts traded on U.S. commodities exchanges. For example,
the CFTC currently imposes speculative position limits on a number of agricultural commodities (e.g., corn, oats, wheat, soybeans and
cotton) and U.S. commodities exchanges currently impose speculative position limits on many other commodities. The Dodd-Frank Act significantly
expanded the CFTC’s authority to impose position limits with respect to futures contracts and options on futures contracts, swaps
that are economically equivalent to futures or options on futures, and swaps that are traded on a regulated exchange and certain swaps
that perform a significant price discovery function. In October 2020, the CFTC adopted amendments to its position limits rules that
establish certain new and amended position limits for 25 specified physical commodity futures and related options contracts traded on
exchanges, other futures contracts and related options directly or indirectly linked to such 25 specified contracts, and any OTC transactions
that are economically equivalent to the 25 specified contracts. The Investment Adviser will need to consider whether the exposure created
under these contracts might exceed the new and amended limits in anticipation of the applicable compliance dates, and the limits may constrain
the ability of the Account to use such contracts. The amendments also modify the bona fide hedging exemption for which certain swap dealers
are currently eligible, which could limit the amount of speculative OTC transaction capacity each such swap dealer would have available
for the Account prior to the applicable compliance date. All accounts owned or managed by the Investment Adviser are likely to be combined
for speculative position limit purposes. The Account could be required to liquidate positions it holds in order to comply with such limits,
or may not be able to fully implement trading instructions generated by its trading models, in order to comply with such limits. Any such
liquidation or limited implementation could result in substantial costs to the Account.

 

Cybersecurity
Breaches and Information Technology. Arena is heavily reliant on its information technology infrastructure, processes and
procedures, and it has devoted significant resources to ensuring it has competitive informational technology systems. Information technology
changes rapidly, however, and Arena may not be able to stay ahead of such advances. Moreover, as Arena grows, it may find itself a target
of cybersecurity breaches and attacks. The Account is subject to risks associated with a breach in its cybersecurity. Cybersecurity is
a generic term used to describe the technology, processes and practices designed to protect networks, systems, computers, programs and
data from “hacking” by other computer users, other unauthorized access and the resulting damage and disruption of hardware
and software systems, loss or corruption of data as well as misappropriation of confidential information. The computer systems, networks
and devices used by Arena and service providers to Arena and the Account to carry out routine business operations employ a variety of
protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication failures,
infiltration by unauthorized persons and security breaches. Despite the various protections utilized, these systems, networks, or devices
potentially can be breached. Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from
computer viruses or other malicious software code; and attacks that shut down, disable, slow, or otherwise disrupt operations, business
processes, or website access or functionality.

 

    Annex A-15

     

    

 

The Account could be negatively
impacted as a result of a cybersecurity breach. If a cybersecurity breach occurs, the Account may incur substantial costs, including those
associated with: forensic analysis of the origin and scope of the breach; increased and upgraded cybersecurity; investment losses from
sabotaged trading systems; loss of data and other records; identity theft; unauthorized use of proprietary information; litigation; adverse
investor reaction; the dissemination of confidential and proprietary information; and reputational damage. Cybersecurity breaches may
cause disruptions and impact business operations, potentially resulting in financial losses to the Account; interference with Arena’s
ability to calculate the value of an investment in the Account; impediments to trading; the inability of Arena and other service providers
to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement
or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information.

 

Investors are advised to ensure
communication methods with the Investment Adviser and any of their respective affiliates, any financial advisers or any other parties
associated with the Account are secure so as to prevent fraudulent change of details or other fraudulent requests and communications from
being submitted through, for example, their email accounts.

 

    Annex A-16

     

    

 

 

Execution Version

 

This SUPPLEMENTAL ACKNOWLEDGMENT
(this “Supplemental Acknowledgment”) to the existing Investment Management Agreement between Houston Specialty Insurance
Company, Imperium Insurance Company and Great Midwest Insurance Company (collectively, the “Client”) and Arena
Investors, LP, a Delaware limited partnership, as investment adviser (referred to herein as the “Investment Adviser”)
dated January 13, 2016 (as amended and supplemented from time to time, the “IMA”) is entered into by and between
Client and Advisor as of March 23, 2022.

 

The signatories below acknowledge
that a discretionary Stable Income—Real Estate Credit sub-account (the “Sub-Account”) has been created pursuant
to the IMA that will be subject to the terms, investment guidelines and fees described below. Capitalized terms not otherwise defined
herein have the meanings set forth in the IMA.

 

Client and Investment Adviser
previously entered into a separate agreement–that certain Investment Management Agreement, dated March 1, 2017, which was replaced
by the Amended and Restated Investment Management Agreement, dated April 1, 2020 (the “Former Investment Management Agreement”).
The Former Investment Management Agreement governed the terms and conditions between Client and Investment Adviser in relation to the
Stable Income—Real Estate Credit Sub-Account. Client and Investment Adviser hereby agree that the Former Investment Management Agreement
is terminated and shall no longer be in effect upon the execution by Client and Investment Adviser of this Supplemental Acknowledgment;
and henceforth, this Supplemental Acknowledgment together with the IMA shall govern the relationship and terms and conditions between
Client and Investment Adviser for the Stable Income— Real Estate Credit Sub-Account.

 

		1.	Funding Terms

 

The Sub-Account was funded
through a commitment of $50 million (the “Initial Commitment”) by the Client on or about March 1, 2017 (the “Effective
Date”). The Client shall maintain such Sub-Account and shall make capital available to the Investment Adviser. The assets in
such Sub-Account, as altered from time to time by the investment, reinvestment or disposition thereof, are collectively referred to herein
as the “Sub-Account Assets.” On five (5) business days’ notice the Client will advance funds to such accounts
as the Investment Adviser shall designate for the purpose of investing in Sub-Account Assets, provided, however, that at no point shall
the net asset value of the Account Assets exceed $50 million plus the amount of net profits retained in the Account less net losses suffered
by the Account less the amounts distributed to the Client and withdrawn from the Account pursuant to Section 7(a) of the IMA
less the amounts paid to the Investment Adviser for fees and costs.

 

		2.	Investment Guidelines: The Investment Adviser’s management of the Sub-Account will be consistent
with the investment guidelines set forth below.

 

	Table A – Portfolio - Overall Risk Tolerance	 	Limits
	Duration -Weighted Average Effective Range	 	1-5
	Credit Quality- Weighted Average Minimum	 	BB-

 

    

     

    

 

	
    All ratings criteria in this document will be applied using the NAIC
    method as follows:

     

    (i)            For
    a security rated by one NRSRO, it will be assigned that rating;

    (ii)           If
    a security is rated by two NRSROs, then the lowest rating will be assigned.

    (iii)          If
    a security is rated by three or more NRSROs, then the Bloomberg Composite1 Rating will be assigned.

    (iv)          Securities
    that are rated higher by the NAIC due to cost basis treatment will be rated as follows: AA for NAIC 1, BBB for NAIC 2, BB for NAIC 3,
    B for NAIC 4, and CCC for NAIC 5.

    (v)           Securities
    with credit ratings with + or -, or numerical qualifier shall be deemed to be within the letter rating class shown, unless specifically
    indicated elsewhere in this Investment Policy. For example, a BBB minimum indication shall include BBB3 and BBB- securities.

    (vi)          For
    weight averaging calculation refer to Table D “Credit Rating Numerical Conversion”

     

 

	Table B - Fixed Income - Asset Class Diversification	 	Maximum of Invested Assets	 
	Short Term Investments with an original maturity of not more than one year (Minimum Credit Quality A1/P1)	 	 	100	%
	U.S. Government & Full-faith and credit Agency Obligations	 	 	100	%
	Non full-faith and credit U.S. Agency Obligations	 	 	100	%
	Mortgage Related Securities, including mortgage loans and mortgage pools with the following sub limits (excluding full faith & credit)	 	 	100	%
	- U.S. Agency Backed - Residential	 	 	100	%
	- Non-Agency Backed - Residential	 	 	100	%
	- U.S. Agency Backed - Commercial	 	 	100	%
	- Non-Agency Backed – Commercial (must be in compliance with Texas code detailed in Table B)	 	 	100	%
	- Total Agency and Non-Agency Backed - Commercial (including commercial loans)	 	 	100	%
	Asset-Backed Securities (Inclusive of all non-Collateralized Loan Obligations Asset-Backed Securities)	 	 	100	%
	-Collateralized Loan Obligation tranches	 	 	50	%
	-Rated BBB and Below Collateralized Loan Obligation tranches	 	 	25	%
	Public & 144A Corporate Securities including Convertible Securities	 	 	100	%
	Bank Debt – Originated Secondary (First Lien)	 	 	100	%
	-Second Lien	 	 	25	%
	Traditional Rated Private Placements	 	 	60	%
	Preferred Stocks including Convertible Securities	 	 	10	%

 

 

1
Bloomberg Composite Rating - The rating agencies (Moody’s, Fitch, Standard & Poor’s and Dominion Bond Rating Service
Ltd) are evenly weighted when calculating the composite. The Bloomberg Composite is the average of existing ratings, rounded down to the
lower rating if the composite is between two ratings.

 

    2

     

    

 

Investments not specifically permitted in Table B are prohibited without
prior written approval of the Investment Committee.

 

	Table C- Issuer Diversification – excluding U.S. Government, Agency and Government sponsored MBS & Debentures
	Asset Class	Rating Agency/NAIC	
    % of Invested

    Assets (Limit 

by Issuer)

	
    Corporate Bonds (Including Traditional Rated Privates), Mortgage
    Backed Securities, Asset Backed (excluding CLO) and Commercial Mortgage Backed Securities

     

    (Investment must be domiciled in US or Canada or have NAIC
    1 or 2 rating)
	
    AAA/1

    AA/1

    A/1

    BBB/2

    BB/3

    B/4

    CCC/5
	
    20.0%

    15.0%

    10.0%

    10.0%

    10.0%

    10.0%

    10.0%

	Collateralized Loan Obligations	AAA/1 

AA/1 

A/1 

BBB/2 

BB/3	
    18.0%

    10.0%

    10.0%

    10.0%

    10.0%

	
    Commercial Mortgage Loan First Liens Under Section 424.066
of the Texas Insurance Code (Code), an insurer may invest funds, in excess of minimum capital and surplus, in a bond, note or evidence
of indebtedness that is secured by a valid first lien on real property located in the United States. Loan to Value shall not exceed 90%
and value must be determined by an outside appraisal. An insurer’s single obligation may not exceed 10% of the insurer’s
capital and surplus and an insurer’s aggregate investments may not exceed 30% of the insurer’s assets. Loan secured by a
valid first lien on real property located in the United States.
	BBB/2	15.0%

 

	Table D - Credit Rating Numerical Conversion	 
	Tsy	1	BB+	12
	Agy	2	BB	13
	AAA	2	BB-	14
	AA+	3	B+	15
	AA	4	B	16
	AA-	5	B-	17
	A+	6	CCC+	18
	A	7	CCC	19
	A-	8	CCC-	20
	BBB+	9	CC	21
	BBB	10	C	22
	BBB-	11	DDD	23

 

		3.	Fees.

 

The fees for the Sub-Account shall be as set forth in the
Fee Exhibit attached hereto.

 

    3

     

    

 

		4.	Indemnity.

 

In addition to the terms set
forth in the indemnification provisions set forth in Section 8 of the IMA, the parties agree that: (a) the Investment Adviser
shall indemnify the Client against any liabilities, claims and expenses reasonably incurred by Client in connection with the defense or
disposition of any suit in which Client is involved as a party if such suit is reasonably related to the Investment Adviser’s violation
of its Standard of Care; and (b) all determinations with respect to indemnification hereunder shall be made by a final decision on
the merits by a court or other body before whom the proceeding was brought that the Client is liable or not liable for any acts or omissions
in connection with this Agreement. All determinations to advance payment in connection with the expense of defending any proceeding shall
be made in accordance with Section 8(b) of the IMA.

 

		5.	Confidentiality.

 

In addition to the confidentiality
terms set forth in Section 10 of the IMA, the parties agree that before any disclosure of information otherwise subject to Section 10
of the IMA on the grounds that such information is required by law, the Investment Adviser, to the extent permitted under such applicable
law or regulatory authority, shall so inform the Client and shall give the Client, to the greatest extent reasonably permitted and practicable,
an opportunity to seek appropriate protection of such confidential information.

 

		6.	Termination Upon Withdrawals.

 

Notwithstanding the language
in Section 7 of the IMA, unless the Investment Adviser determines otherwise, any withdrawal that would bring the Sub-Account balance
below the lesser of (i) $10,000,000 and (ii) 20% of the net asset value of the Sub-Account Assets as of the last month end before
the Withdrawal Date shall be deemed a termination of the IMA with respect to the Sub-Account.

 

		7.	Representations, Warranties and Covenants.

 

Each of the Client’s
representations, warranties and covenants will be deemed repeated and reaffirmed (including with respect to the authorization of the Custodian
by the Client to pay the Management Fees and Performance Fes directly to the Investment Adviser) as of the date this Supplemental Acknowledgement
is executed.

    4

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
the foregoing Supplemental Acknowledgment to be executed as of the date first stated above.

 

	 	HOUSTON SPECIALTY INSURANCE COMPANY 
	 	 	 
	 	By: 	/s/ Kevin Westervelt 
	 	 	Name: Kevin Westervelt 
	 	 	Authorized Signatory
	 	 	 
	 	IMPERIUM INSURANCE COMPANY 
	 	 	 
	 	By: 	/s/ Kevin Westervelt 
	 	 	Name: Kevin Westervelt
	 	 	Authorized Signatory
	 	 	 
	 	GREAT MIDWEST INSURANCE COMPANY 
	 	 	 
	 	By: 	/s/ Kevin Westervelt 
	 	 	Name: Kevin Westervelt
	 	 	Authorized Signatory
	 	 	 
	 	ARENA INVESTORS, LP 
	 	 	 
	 	By: 	/s/ Lawrence Cutler 
	 	 	Name: Lawrence Cutler
	 	 	Authorized Signatory

 

    

     

    

 

Execution Version

 

FEE EXHIBIT FOR INITIAL COMMITMENT

 

I.            Management
Fee.

 

A monthly management fee of [***]% ([***]%
per annum) of the net asset value of the Sub-Account shall be payable to the Investment Adviser on the first day of each month as discussed
in Exhibit A (the “Management Fee”).

 

II.            Performance
Fee.

 

Further for its services hereunder,
the Investment Adviser will calculate amounts as of (A) the end of each Fiscal Year (i.e., December 31st)
and (B) each Withdrawal Date, solely with respect to the amounts then withdrawn, [***]% (the “Performance Fee”)
of any excess as of such date of the Closing Sub-Account Balance, over (x) the Opening Sub-Account Balance (including for
both the Opening and Closing Sub-Account Balances the balance attributable to any Set Aside Portions) as of the beginning of the current
Fiscal Year (or, the Effective Date, as applicable); provided, however, that the Performance Fee shall not be paid unless the Sub-Account
has earned the Hurdle from the date of the last payment of a Performance Fee (or for the first payment date from the Effective Date of
the Sub-Account), it being the intention that if the Sub-Account has earned the Hurdle the Investment Adviser shall accrue a full Performance
Fee on all of the net profits of the Sub-Account.1 If the Hurdle has not been met for any Fiscal Period, no Performance Fee
shall be paid for that Fiscal Period and entitlement to a Performance Fee shall be subject to meeting the Hurdle from the date a prior
Performance Fee was paid or for the first payment date from the Effective Date of the Sub-Account. For these purposes:

 

“Closing
Sub-Account Balance” means (i) for any Fiscal Period ending on December 31st or upon the date of termination
of the Agreement, the Sub-Account balance as of the last business day of such Fiscal Period (as adjusted for any contributions or withdrawals
during such period) or (ii) for any Fiscal Period ending as of a Withdrawal Date, the Sub-Account balance attributable to the amount
of such withdrawal as of such Withdrawal Date.

 

“Fiscal
Period” means the period beginning on the first business day of each calendar year (or the Effective Date for the first Fiscal
Period) and ending on the earlier of the last business day of such calendar year (or the date of termination for the last Fiscal Period
of the Sub-Account) and each Withdrawal Date.

 

“Hurdle”
means a [***]% per annum increase in the actual Sub-Account value on any Fiscal Period end date above the net asset value as of the immediately
preceding Fiscal Period end as to which a Performance Fee was paid (or for the first payment date from the Effective Date of the Sub-Account),
as adjusted in good faith to eliminate the effect of additions to and withdrawals from the Sub-Account. Upon any withdrawal request from
the Sub-Account, the Hurdle will be reduced pro rata based on the percentage of the Sub-Account sought to be withdrawn.

 

“Opening
Sub-Account Balance” means (i) for any Fiscal Period beginning as of the Effective Date or the first business day of any
calendar year, the Sub-Account balance as of such beginning date or (ii) for any Fiscal Period measured in connection with a withdrawal,
the portion of the Sub-Account balance as of such beginning date attributable to the amount of such withdrawal.

 

 

1 Note that this does
not include new capital contributions, as clarified in the definition of Closing Sub-Account Balance.

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