Document:

Exhibit
10.4

 

INVESTMENT
ADVISORY AGREEMENT

 

This
investment advisory agreement (this “Agreement”)
is made and entered into effective as of December 2, 2019, by and between Fundamental Global Advisors LLC, a Delaware limited
liability company (the “Advisor”) and FedNat Holding Company, a Florida corporation (the “Client”).

 

Preliminary
Statements

 

A.
The Advisor wishes to provide non-discretionary investment advisory services to the Client.

 

B.
The Advisor and the Client wish to enter into this Agreement in order to set forth the terms by which the Advisor would perform
the investment advisory services for the Client.

 

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

 

1.
Non-Discretionary Investment Advisory Services; Fees.

 

(a)
The Advisor will provide the Client with non-discretionary investment advisory services (the “Investment Advisory
Services”), including without limitation: identifying, analyzing and recommending potential investments, advising
as to existing investments and investment optimization, recommending investment dispositions, and advising as to the Advisor’s
views and outlook on macro-economic conditions. The Client hereby engages the Advisor as investment adviser to the Client to provide
non-discretionary investment advice with respect to Client investments and potential investments. The Advisor hereby accepts such
appointment. Advisor will have no authority to withdraw or transfer assets from Client’s accounts. The Advisor may engage
and assign all or a portion of the Investment Advisory Services to a sub-advisor so long as such sub-advisor is a registered investment
adviser.

 

(b)
Advisor will conduct periodic portfolio reviews with Client. Advisor will generally be available to discuss Client’s account
during normal business hours. Advisor will attempt to meet with Client at least annually to discuss Client’s investment
needs, goals and objectives and review Client’s account performance and the continued suitability of investments recommended
by Advisor for Client.

 

(c)
The Advisor will for all purposes of this Agreement be an independent contractor and not an agent or employee of the Client.

 

(d)
In consideration of the Investment Advisory Services provided to the Client hereunder, the Client will pay the Advisor an annual
management fee of $100,000, paid quarterly in advance (the “Management Fee”). The quarterly installment
of the Management Fee will be due no later than five business days after the beginning of each calendar quarter, commencing with
the calendar quarter beginning January 1, 2020 (which first payment shall include a pro-rated portion of the Management Fee attributable
to the period commencing on the date of this Agreement and ending on (and including) December 31, 2019).

 

    	 

    	 

    

 

2.
Expenses. The Client will be responsible for the fees and expenses of administrators, auditors and other service providers
of the Client. The Advisor will be responsible for its own expenses in connection with the provision of the Investment Advisory
Services.

 

3.
Representations and Warranties; Covenants.

 

(a)
The Client represents and warrants to the Advisor and agrees as follows: (i) this Agreement has been duly and validly authorized
by the Client and executed and delivered by the Client in accordance with the applicable provisions of its governing documents
(the “Governing Provisions”) and constitutes a valid and binding agreement of the Client enforceable
in accordance with its terms; (ii) its entering into this Agreement will not breach or cause to be breached any of the Governing
Provisions or any other undertaking, agreement, contract, statute, rule or regulation to which the Client is a party or by which
it is bound; and (iii) it is duly incorporated and validly existing and in good standing under the laws of the State of Florida
and it has the full power and authority under the Governing Provisions to enter into, and perform its obligations under, this
Agreement.

 

(b)
The Advisor represents and warrants to the Client and agrees as follows: (i) this Agreement has been duly and validly authorized,
executed and delivered by the Advisor in accordance with its Governing Provisions and constitutes a valid and binding agreement
of the Advisor enforceable in accordance with its terms; (ii) its entering into this Agreement will not breach or cause to be
breached any undertaking, agreement, contract, statute, rule or regulation to which the Advisor is a party or by which it is bound;
(iii) it is duly organized and validly existing and in good standing under the laws of the State of Delaware; and (iv) it is and
shall remain in compliance in all respects with the Governing Provisions and all laws, rules, regulations and orders of any governmental
agency or self-regulatory organization applicable to the Advisor and/or this Agreement.

 

(c)
The Client further acknowledges that all advice given by the Advisor is the confidential property of the Advisor, and the Client
will not make use of such advice in any manner or disclose the same to third parties, other than to Client’s other investment
managers who would be involved in the evaluation and execution of any such advice, without the prior written consent of the Advisor.
Nothing contained in this Agreement will require the Advisor to disclose the details of any of its investment programs, formulae
or strategies, except as required by applicable law.

 

(d)
The Client acknowledges that Advisor’s past performance and advice regarding Client’s accounts cannot guarantee future
results. As with all market investments, Client investments can appreciate or depreciate and Advisor does not guarantee or warrant
that the services it offers will result in a profit or perform in any particular way. Client also understands that there are no
guarantees that its investment goals or objectives will be met or that any investment recommendations by the Advisor will be successful
in achieving Client’s short or long-term objectives or perform within any target risk limitations.

 

    	2

    	 

    

 

(e)
The Client expressly understands and agrees that Advisor is not qualified to, and does not purport to provide, any legal, accounting,
estate, actuary, or tax advice or to prepare any legal, accounting or tax documents. Nothing in this Agreement is to be construed
as providing for such services. Client will rely on its own tax attorney or accountant for tax advice or tax preparation.

 

4.
Termination.

 

(a)
The term of this Agreement will commence as of the date of this Agreement and continue in effect for a period of five years unless
terminated earlier as provided in this Section 4.

 

(b)
The Advisor may terminate this Agreement at any time upon reasonable prior written notice to the Client. Client may terminate
this Agreement only in the following circumstances:

 

(i)
if the Advisor commits any breach of its obligations under this Agreement and fails, within (10) ten business days of receipt
of notice served by the Client requiring it so to do, to make good such breach;

 

(ii)
at any time by giving notice in writing to the Advisor if the Advisor goes into liquidation (except a voluntary liquidation for
the purpose of reconstruction or amalgamation upon terms previously approved in writing by the parties) or if a receiver is appointed
of any of the assets of the Advisor or if the Advisor makes or proposes any arrangement or composition with its creditors or class
of creditors;

 

(iii)
if the Advisor is found in a legal proceeding to have violated any antifraud or anti-manipulative provisions of laws relating
to the financial services industry or of any other criminal statute involving intentional fraud, misappropriation, misrepresentation,
or embezzlement; or

 

(iv)
if the Adviser is subject to censure or disqualification of under the Investment Advisers Act of 1940, or the Securities Act of
1933, each as amended, or if the Advisor is no longer the holder of all licenses, permissions, authorizations and consents required
to enable it to perform its duties pursuant to this Agreement.

 

(b)
Upon termination of this Agreement, the Advisor must repay to the Client the unearned portion (computed on the basis of the number
of days elapsed), if any, of any Management Fees previously paid to the Advisor.

 

5.
Miscellaneous.

 

(a)
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter
hereof and supersedes any prior agreements or understandings.

 

(b)
Amendment; Waiver. Any term of this Agreement may be amended or waived only by an instrument in writing and signed by both
the Advisor and the Client. A waiver of any breach or failure to enforce any term or provision of this Agreement will not in any
way affect, limit or waive a party’s rights hereunder at any time to enforce strict compliance thereafter with every term
or provision of this Agreement.

 

    	3

    	 

    

 

(c)
Successors and Assigns. Neither party may assign its rights or obligations under this Agreement without the prior written
consent of the other party; provided, that consent of the Client will not be required for the Advisor to engage sub-advisors
to provide the Investment Advisory Services as provided in Section 1(a). This Agreement is binding upon and will inure
to the benefit of the Advisor and the Client and their respective successors and permitted assigns.

 

(d)
Governing Law. This Agreement is governed by, and is to be construed and enforced in accordance with, the laws of the State
of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law.

 

(e)
Notices. All notices, demands and other communications hereunder must be in writing (including facsimile and email) and
must be given:

 

	 	If
    to the Advisor:	 

        D.
        Kyle Cerminara

        

        Fundamental
        Global Investors, LLC

        

        4201
        Congress Street, Suite 140

        

        Charlotte,
        North Carolina 28209

        

        E-Mail:
        kyle@fundamentalglobal.com

         

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

         

        Eliot
        D. Raffkind

        

        Akin
        Gump Strauss Hauer & Feld LLP

        

        2300
        N. Field Street

        

        Suite
        1800

        

        Dallas,
        TX 75201

        

        E-Mail:
        eraffkind@akingump.com

         

	 	If
    to the Client: 	 

        FedNat
        Holding Company

        

        14050
        NW 14th Street, Suite 180

        

        Sunrise,
        FL 33323

        

        Attention:
        Michael H. Braun, CEO and President

        

        E-Mail:
        mbraun@fednat.com

        

         

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

         

        

        Nelson
        Mullins Broad and Cassel

        

        2
        S. Biscayne Blvd., # 2100

        

        Miami,
        FL 33131

        

        Attention:
        Nina Gordon, Esq.

        

        E-Mail:
        nina.gordon@nelsonmullins.com

 

    	4

    	 

    

 

or
to such other address, facsimile number or email address and with such other copies as such party may hereafter specify for the
purpose of notice to the other party. Each such notice, request, demand or other communication will be effective (i) if given
by facsimile, when such facsimile is transmitted to the facsimile number specified in this section and evidence of receipt is
received, (ii) if sent by email, on receipt by the sender of a “read receipt” in respect of the relevant message or
(iii) if given by any other means, upon delivery or refusal of delivery at the address specified in this section

 

(f)
Severability. If any provision or clause of this Agreement is found to be invalid or unenforceable under any applicable
law, this Agreement will be considered severable and divisible, and a reviewing body shall have the authority to amend or “blue
pencil” the Agreement so as to make it fully valid and enforceable.

 

(g)
Captions. The headings and captions used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

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

 

[Signature
page follows]

 

    	5

    	 

    

 

This
Agreement has been executed and delivered by the parties hereto as of the date first written above.

 

	 	FedNat
    Holding Company, a Florida corporation
	 	 	 
	 	By:	/s/
    Michael Braun
	 	Name:	Michael
    Braun
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Fundamental
    Global Advisors LLC, a Delaware limited
    liability company
	 	 	 
	 	By:	FGI
    Funds Management, LLC
	 	Its:	Manager
	 	 	 
	 	By:	/s/
    D. Kyle Cerminara
	 	Name: 	D.
    Kyle Cerminara
	 	Title:	Manager

 

[End
of Agreement.]

 

    	Signature Page to Investment Advisory AgreementExhibit
10.5

 

TRANSITION
SERVICES AGREEMENT

 

THIS
TRANSITION SERVICES AGREEMENT (“Agreement”) is hereby made and entered into on this 2nd day of December, 2019
(the “Effective Date”), by and between 1347 PROPERTY INSURANCE HOLDINGS, INC. a Delaware corporation (the “Seller”),
and FEDNAT HOLDING COMPANY, a Florida corporation (the “Purchaser”) (each a “Party” and
collectively the “Parties”).

 

WHEREAS,
Seller and Purchaser have entered into that certain Equity Purchase Agreement, dated February 25, 2019, (the “Purchase
Agreement”), whereby, among other things, Purchaser shall acquire one hundred percent (100%) of the ownership interests
in Maison Insurance Company (“MIC”), a Louisiana corporation, Maison Managers, Inc. (“MMI”),
a Delaware corporation, and ClaimCor, LLC (“CC”), a Florida limited liability company;

 

WHEREAS,
MIC, MMI and CC are collectively referred to as the “Companies;”

 

WHEREAS,
certain of Seller’s employees currently provide and provided as of the date of the Purchase Agreement certain accounting
related services to the Companies;

 

WHEREAS,
following the Closing of the transaction contemplated under the Purchase Agreement, certain of Seller’s employees will become
employees of the Purchaser (or Purchaser’s Affiliates) (the “New Employees”);

 

WHEREAS,
to facilitate the transition of the Companies to Purchaser, Purchaser has requested, for a limited transition period, Seller to
allow certain of its employees to provide certain services to Purchaser and the Companies on the terms and conditions set forth
herein; and

 

WHEREAS,
to facilitate certain matters pertaining to the Seller following the Closing, Seller has requested, for a limited transition period,
Purchaser to allow certain of the New Employees to provide certain services to Seller on the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree
as follows:

 

1.
Definitions. All capitalized terms used but not defined in this Agreement shall have the meaning ascribed to them in the
Purchase Agreement.

 

2.
Services by Seller. During the Term (as hereinafter defined), the Parties shall provide each other with the following services
described in this Section 2 (collectively, the “Services”). The Parties shall provide and shall use
the Services for substantially the same purpose and in substantially the same manner as those Services have been used by Seller
in the conduct of the business of the Companies prior to the Closing of the transactions contemplated by the Purchase Agreement.

 

    	 	1	 

    	 

    

 

	 	A.	Seller
    Services. Seller shall arrange for its Chief Financial Officer and Controller, currently John Hill and Brian Bottjer (the
    “PIH Employees”), to provide transition accounting services to Purchaser and Companies, with respect to
    the businesses of the Companies, after the Closing as requested by Purchaser, subject to the terms and conditions of this
    Agreement.
	 	 	 
	 	B.	Purchaser
    Services. Purchaser shall arrange for certain of the New Employees to provide transition accounting services to Seller
    after the Closing as requested by Seller.
	 	 	 
	 	C.	Other
    Services. Any other Services as may be mutually agreed upon by the Parties in writing.

 

Nothing
in this Agreement shall be construed to prohibit the PIH Employees from continuing to perform their duties and obligations with
respect to their employment with Seller; provided that the PIH Employees shall devote sufficient time to perform the Services
as requested by Purchaser pursuant to this Agreement; provided further that none of the PIH Employees shall individually be required
to provide more than 20 hours of services to Purchaser during any week during the Term. Nothing in this Agreement shall be construed
to prohibit the New Employees from continuing to perform their duties and obligations with respect to their employment with Purchaser;
provided that the New Employees shall devote sufficient time to perform the Services as requested by Seller pursuant to this Agreement;
provided further that none of the New Employees shall individually be required to provide more than 20 hours of services to Seller
during any week during the Term.

 

3.
Representatives.

 

(a)
Service Representative. Each Party shall provide up to two (2) individuals (each, a “Service Representative”)
who are familiar with that Party’s business and who will be that Party’s primary points of contact in dealing with
the other Party’s Service Representatives under this Agreement and who will have the authority and power to make decisions
with respect to actions to be taken by such Party with respect to the provision of Services under this Agreement. The initial
Service Representative(s) for Seller shall be Kyle Cerminara and for Purchaser shall be Ronald Jordan and Erick Fernandez. Each
Party may change its Service Representative(s) by giving written notice to the other in accordance with the notice provisions
of this Agreement.

 

(b)
Obligations of the Service Representatives. Each Party shall, or shall ensure that their Service Representative(s), as
applicable, respond within a commercially reasonable time to any reasonable requests by the other Party or its Service Representative(s)
for such Party’s Service Representative(s) to provide directions, instructions, approvals, authorizations, decisions or
other information reasonably necessary for such Party to perform any Services.

 

(c)
Access to Books and Records and Personnel. Any Party requesting Services from the other Party shall provide the other Party’s
applicable employees and personnel access to the requesting Party’s applicable books and records, personnel and certain
furniture, fixtures, equipment and leasehold improvements agreed to be provided, upon reasonable prior notice and during regular
business hours, as reasonably required for the performance of the Services in accordance with this Agreement. The parties shall
reasonably cooperate with each other to provide access to applicable books and records beyond the Term (as defined below) for
any future audits by governmental enterprises (including IRS or state regulators), SEC reporting and compliance and other such
requirements until the expiry of statute of limitations for such purposes.

 

    	 	2	 

    	 

    

 

4.
Term.

 

(a)
Maximum Term. The term of this Agreement shall commence on the Effective Date and, unless terminated earlier in accordance
with Section 4(b), expire twelve months thereafter (the “Term”). Notwithstanding the foregoing, the
Term may be extended by mutual written agreement of the Parties.

 

(b)
Termination for Material Breach or Default. If either Party commits a material breach of this Agreement and fails to cure
such breach within fifteen (15) days of receipt of written notice thereof, then the non-breaching Party may terminate this Agreement
immediately upon written notice.

 

(c)
End of the Term. Upon termination of the Term with respect to any Service, the Parties shall reasonably cooperate to effect
an orderly, efficient, effective and expeditious winding-up of such Service, provided that neither Party shall be required to
provide any services or incur any costs other than as expressly set forth in this Agreement.

 

5.
Consideration for Services.

 

(a)
As consideration for the Services, the Parties shall pay to each other the fees set forth on Schedule “A” attached
hereto based on the person performing the Services (the “Service Fee”).

 

(b)
In addition to the Service Fee, Purchaser shall reimburse Seller for all reasonable out-of-pocket costs, and expenses from third
parties actually incurred by Seller in the provision of the Services that are approved in writing (including by electronic mail)
by Purchaser’s Service Representatives prior to the Seller incurring such out-of-pocket expense (each, an “Expense”);
provided, however, Seller shall be excused from performance for Services to the extent Seller’s performance is delayed as
a result of Purchaser’s pre-approval process for Expenses.

 

(c)
In addition to the Service Fee, Seller shall reimburse Purchaser for all reasonable out-of-pocket costs, and expenses from third
parties actually incurred by Purchaser in the provision of the Services that are approved in writing (including by electronic
mail) by Seller’s Service Representatives prior to the Purchaser incurring such out-of-pocket expense (each, an “Expense”);
provided, however, Purchaser shall be excused from performance for Services to the extent Purchaser’s performance is delayed
as a result of Seller’s pre-approval process for Expenses.

 

    	 	3	 

    	 

    

 

6.
Terms of Payment.

 

(a)
Within fifteen (15) days following each calendar month during the Term, each Party shall submit to the other Party an invoice
in writing setting out the Services performed by such Party during the prior month and the related Service Fee and any Expense
incurred in prior months to be reimbursed. The Party receiving the invoice shall pay the amount shown on each such invoice no
later than fifteen (15) days after receipt of such invoice. If such amount is not paid within such fifteen (15) day period, the
defaulting Party will be in breach of this Agreement. In the event a Party fails to timely make payment as required under this
Section 6(a), (other than disputed sums as provided under Section 6(c)) such Party shall pay the other Party interest from and
computed from the first day of the calendar month following receipt of such invoice on the outstanding balance of any such invoices
at a rate of 1.5% per month.

 

(b)
Any transition, excise, sales, use or similar tax charged to, assessed on or incurred by the rendering of the Services shall be
collected from the Party receiving the Services in addition to the Service Fee and shall be remitted by the Party providing the
Services to the applicable governmental agency; provided, however, each Party shall be solely responsible for their
own income taxes.

 

(c)
Should a Party dispute in good faith any portion or the entire amount due on any invoice or require any adjustment to an invoiced
amount, such Party shall promptly notify the other Party in writing of the nature and basis of the dispute and/or adjustment within
fifteen (15) days after the Party’s receipt of such invoice. If a Party fails to provide notice within such 15-day period,
the invoiced amount shall be deemed to be accurate and correct and shall not be subject to dispute or contest. In the event a
Party timely delivers notice of a dispute and/or adjustment, the Parties shall use their reasonable efforts to resolve such matter
within thirty (30) calendar days. The Parties shall pay any undisputed amount in accordance with the terms of the invoice

 

(d)
All amounts payable hereunder shall be remitted in United States dollars or to a bank to be designated in the invoice, unless
otherwise provided for and agreed upon in writing by the Parties.

 

7.
Proprietary Rights, Employees and Facilities.

 

(a)
Confidential Information. Any and all information disclosed by one Party to another Party (specifically including any information
disclosed by the Purchaser to the PIH Employees and any information disclosed by the Seller to the New Employees) in connection
with the performance of the Services under this Agreement, whether disclosed in writing, orally or visually, is considered confidential
information (“Confidential Information”), unless such information (i) is or becomes available to the public
(other than as a result of a disclosure by the recipient or its Representatives); (ii) was known to the recipient on a non-confidential
basis prior to the disclosure to the recipient by the disclosing party or its Representatives; (iii) was independently developed
by the recipient or its Representatives without use of the other Party’s Confidential Information; or (iv) becomes available
to the recipient on a non-confidential basis from a source other than the disclosing party or one of its Representatives who is
not known by the recipient to be under an obligation not to disclose such information.

 

    	 	4	 

    	 

    

 

(b)
Protection of Confidential Information. The recipient shall maintain the other Party’s Confidential Information in
confidence in the same manner used to protect its own confidential information, provided that no less than a reasonable standard
of care is used to protect the confidentiality of the other Party’s Confidential Information. Except as mandated by any
Laws, the recipient shall not disclose the other Party’s Confidential Information to others or use it for purposes other
than fulfilling its obligations pursuant to this Agreement. If a recipient is mandated by any applicable Laws to disclose the
other Party’s Confidential Information, such Confidential Information may be disclosed so long as the recipient provides
the disclosing party with timely prior notice of the requirement, to the extent such notice is permitted by such Law, and reasonably
coordinates with the disclosing party, at the disclosing party’s expense, in an effort to limit the nature and scope of
such required disclosure. The recipient further agrees to limit disclosure of Confidential Information to its employees and agents
who need to know such information for the purpose of fulfilling the recipient’s obligations under this Agreement. After
termination of this Agreement, or at any other time requested by the disclosing party, the recipient shall destroy, unless otherwise
instructed in writing by disclosing party to return, all documents, samples or other materials embodying the Confidential Information,
and shall retain no copies thereof (unless the recipient has a legal obligation to retain a copy thereof, which shall then be
permitted). This Section 7 shall survive the termination of this Agreement.

 

(c)
PIH Employees and Facilities. The PIH Employees shall at all times remain employees of the Seller (or its Affiliates),
subject to the direction and control of Seller (or its Affiliates). Seller shall have complete discretion to supervise and manage
the PIH Employees, and Seller is not required to continue employment for any specific individual personnel of Seller. Seller shall
be responsible for all wages, salary, benefits and other compensation payable to the PIH Employees. No equipment or facility of
Seller used in performing the Services for or subject to use by Purchaser shall be deemed to be transferred, assigned, conveyed
or leased by such performance or use (however, for further clarity, this sentence is not intended to have any effect on the property
being transferred in accordance with the terms of the Purchase Agreement).

 

(d)
New Employees and Facilities. The New Employees shall at all times remain employees of the Purchaser (or its Affiliates)
subject to the direction and control of Purchaser (or its Affiliates). Purchaser shall have complete discretion to supervise and
manage the New Employees, and Purchaser is not required to continue employment for any specific individual personnel of Purchaser.
Purchaser shall be responsible for all wages, salary, benefits and other compensation payable to the New Employees which accrues
following the Closing. No equipment or facility of Purchaser used in performing the Services for or subject to use by Seller shall
be deemed to be transferred, assigned, conveyed or leased by such performance or use.

 

    	 	5	 

    	 

    

 

8.
Warranties and Remedies.

 

(a)
Warranty. Each Party warrants to the other Party that it shall perform and provide the Services (i) in a professional and
workmanlike manner and with the same level of service and degree of care, skill, prudence, quality, and efficiency as provided
in connection with such Services performed or provided by such Party prior to the Closing, and(ii) in material compliance with
all applicable Laws.

 

(b)
Force Majeure. A Party shall not be liable to hereunder for any delay or failure to perform under this Agreement arising
from any cause or causes beyond its control, including, without limitation, any of the following: acts of God, disruption of utilities,
acts by any governmental entity, war, fire, flood, explosion, civil commotion or industrial dispute. A Party unable to perform
shall promptly notify the other Parties upon learning of the occurrence of any such event of force majeure.

 

(c)
Remedy. In the event that Party fails to perform a Service or fails to comply with the standards set forth in Section
8(a) in the performance of a Service, including without limitation any failure resulting from an event of force majeure as
provided above, such Party shall use commercially reasonable efforts promptly to correct such error or perform such Service. Nothing
contained in this Section shall be construed to limit any other remedy available to a Party under this Agreement.

 

9.
Indemnification.

 

(a)
Subject to Section 9, each of Seller and Purchaser (each as an “Indemnifying Party”) shall indemnify,
defend and hold harmless the other (each, as an “Indemnified Party”) for any and all losses, liabilities, damages,
costs or expenses, including, without limitation, interest, penalties and attorneys’, accountants’ and experts’
fees and costs (“Losses”), as a result of or on account of any material breach of the terms of this Agreement
by the Indemnifying Party or incurred in connection with any gross negligence, willful misconduct, dishonesty or fraudulent actions
or omissions on the part of the Indemnifying Party or its Representatives. Notwithstanding the foregoing, Seller shall have no
liability to Purchaser or any other party for any errors, omissions, miscalculations and/or misstatements contained in any financial
statements, regulatory reports, SEC filings or other documents of Purchaser prepared with the assistance of any of the PIH Employees
or any other persons providing services to Purchaser pursuant to this Agreement, except to the extent such errors, omissions,
miscalculations and/or misstatements are caused by, or result from the gross negligence, willful misconduct, dishonesty, or fraudulent
actions or omissions on the part of any of the PIH Employees.

 

(b)
The Parties’ indemnification obligations pursuant to this Section 9 shall survive the expiration of the Term or early
termination of this Agreement.

 

10.
Cooperation. Each Party shall cooperate and provide such information as may be reasonably necessary with respect to performance
of any requirement of this Agreement.

 

    	 	6	 

    	 

    

 

11.
Choice of Laws; Cumulative Rights. This Agreement shall be construed in accordance with and governed by the internal laws
of the State of Delaware without regard to the choice of law provisions thereof. The rights and remedies provided to each Party
hereunder are cumulative and will be in addition to the rights and remedies otherwise available to such Party under this Agreement,
any other agreement or applicable Laws.

 

12.
Consent to Jurisdiction. The Parties hereby irrevocably submit to the exclusive jurisdiction of the Delaware Court of Chancery
or, only in the event such court does not have subject matter jurisdiction over such action or proceeding, the United States District
Court for the District of Delaware or another court sitting in the State of Delaware with respect to any action arising out of
or relating to this Agreement, and the Parties hereby irrevocably agree that all claims in respect to such action shall be heard
and determined in any such court and irrevocably waive any objection it may now or hereafter have as to the venue of any such
action brought in such court or that such court is an inconvenient forum.

 

13.
Assignment. No Party shall assign this Agreement (voluntarily, involuntarily, by judicial process, by operation of law,
or otherwise) without the prior written consent of the other Party.

 

14.
Notices. All notices and other communications hereunder to any Party shall be contained in a written instrument addressed
to such Party at the address set forth below or such other address as may hereafter be designated in writing by the addressee
to the addressor, listing all Parties and shall be deemed given (a) when delivered in person or duly sent by facsimile or electronic
mail to a facsimile number or electronic mail address furnished by the addressee for the purpose of receiving notices and other
communications, or (b) two (2) days after being duly sent by Federal Express or other recognized express courier service:

 

	If
    to the Purchaser:	FedNat
        Holding Company

        14050
        NW 14h Street, Suite 180

        Sunrise,
        FL 33323

        Attn:
        Michael H. Braun. CEO and President

        E-Mail:
        mbraun@fednat.com

         

	with
    a copy (which shall not constitute notice) to:	Colodny
        Fass, P.L.L.C.

        1401
        NW 136th Avenue, Suite 200

        Sunrise,
        FL 33323

        Attn:
        Sandy P. Fay, Esq.

        E-Mail:
        sfay@colodnyfass.com

	 	 
	To
    Seller:	D.
        Kyle Cerminara

        Fundamental
        Global Investors, LLC

        4201
        Congress Street, Suite 140

        Charlotte,
        NC 28209

        E-Mail:
        kyle@fundamentalglobal.com

         

	with
    a copy (which shall not constitute notice) to:	Thompson
        Hine LLP

        3900
        Key Center

        127
        Public Square

        Cleveland,
        OH 44114

        Attn:
        Derek D. Bork, Esq.

        E-Mail:
derek.bork@thompsonhine.com

 

    	 	7	 

    	 

    

 

15.
Counterparts. This Agreement may be executed in any number of counterparts, including counterparts by facsimile or electronic
(.pdf) copy, each of which when so executed and delivered will be deemed an original,
and such counterparts together will constitute an original.

 

16.
Successors and Assigns. This Agreement will bind and inure to the benefit of the Parties and their respective successors
and assigns.

 

17.
Severability. The provisions of this Agreement will be deemed severable, and if any provision or part of this Agreement
is held illegal, void or invalid under an applicable Legal Requirement, such provision or part may be changed to the extent reasonably
necessary to make the provision or part, as so changed, legal, valid and binding. If any provision of this Agreement is held illegal,
void or invalid in its entirety, the remaining provisions of this Agreement will not in any way be affected or impaired but will
remain binding in accordance with their terms.

 

18.
Headings. The section headings in this Agreement are for convenience of reference only and will not be deemed to alter
or affect the meaning or interpretation of any provisions hereof.

 

19.
Amendments. This Agreement may not be amended, modified, altered or supplemented other than by means of a written instrument
duly executed and delivered on behalf of each of the Parties hereto.

 

20.
Parties in Interest. None of the provisions of this Agreement is intended to provide any rights or remedies to any Person
other than the Parties hereto and their respective successors and permitted assigns, if any.

 

21.
Entire Agreement. This Agreement and the other agreements referred to herein set forth the entire understanding of the
Parties hereto relating to the subject matter hereof and thereof and supersede all prior agreements and understandings among or
between any of the Parties relating to the subject matter hereof and thereof.

 

Remainder
of page intentionally left blank. Signature page follows.

 

    	 	8	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives.

 

	PURCHASER	 	SELLER
	 	 	 
	FEDNAT
    HOLDING COMPANY	 	1347
    PROPERTY INSURANCE HOLDINGS, INC.
	 	 	 	 	 
	By:	/s/
    Michael Braun	 	By:	/s/
    John S. Hill
	Name: 	Michael
    Braun	 	Name: 	John
    S. Hill
	Title:	Chief
    Executive Officer 	 	Title:	Vice
    President, Chief Financial Officer and Secretary

 

SIGNATURE
PAGE TO TRANSITION SERVICES AGREEMENT

 

    	 	 	 

    	 

    

 

SCHEDULE
“A”

SERVICE
FEES

 

	CFO	 	$	250.00	/HR
	CONTROLLER	 	$	200.00	/HR
	SR. ACCOUNTANT	 	$	85.00	/HR
	STAT ACCOUNTING MANAGER	 	$	83.00	/HR
	ASSISTANT CONTROLLER	 	$	78.00	/HR
	ADMINISTRATIVE ASSISTANT	 	$	62.00	/HR
	AP ASSOCIATE	 	$	43.00	/HR

 

Note:
The titles stated above are as of the Effective Date.

 

SCHEDULE
A TO TRANSITION SERVICES AGREEMENT

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