Document:

Exhibit 10.5

 

REDEMPTION AGREEMENT 

 

by and among

 

SUNLIGHT CAPITAL VENTURES, LLC 

 

SUNLIGHT CAPITAL PARTNERS II, LLC 

 

and

 

FRANKLIN HOLDINGS (BERMUDA), LTD.

 

Dated: April 3, 2013 

 

    	 

    	 

    

 

	ARTICLE I	DEFINITIONS AND RULES OF CONSTRUCTION	1
	1.1.	Definitions	1
	1.2.	Rules of Construction	3
	 	 	 
	ARTICLE II	REDEMPTION	4
	2.1.	Redemption	4
	2.2.	Payments of the Purchase Price	4
	2.3.	Deliverables	5
	 	 	 
	ARTICLE III	REPRESENTATIONS AND WARRANTIES OF THE SELLERS	5
	3.1.	Organization and Power	5
	3.2.	Authorization and Enforceability	5
	3.3.	No Violation	5
	3.4.	Governmental Authorizations and Consents	6
	3.5.	Ownership of the Purchased Stock	6
	3.6.	Litigation	6
	3.7.	No Brokers	6
	3.8.	Investigation	6
	3.9.	Disclaimer	7
	 	 	 
	ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	7
	4.1.	Organization and Power	7
	4.2.	Execution and Enforceability	7
	4.3.	No Violation	7
	4.4.	Governmental Authorizations and Consents	7
	4.5.	Litigation	8
	4.6.	Financial Capacity; Solvency	8
	4.7.	No Brokers	8
	4.8.	No Inducement or Reliance	8
	4.9.	Disclaimer	9
	 	 	 
	ARTICLE  V	COVENANTS	9
	5.1.	Access to Financial Statements	9
	5.2.	Public Announcements	9
	5.3.	Director Indemnification and Insurance	9
	5.4.	Reasonable Best Efforts	10
	5.5.	Release	10
	 	 	 
	ARTICLE VI	INDEMNIFICATION; SURVIVAL	10
	6.1.	Expiration of Representations and Warranties	10
	6.2.	Indemnification	11
	 	 	 
	ARTICLE VII	MISCELLANEOUS	12
	7.1.	Expenses	12
	7.2.	Notices	12
	7.3.	Governing Law	13

  

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	7.4.	Entire Agreement	13
	7.5.	Severability	13
	7.6.	Amendment	13
	7.7.	Effect of Waiver or Consent	13
	7.8.	Parties in Interest; Limitation on Rights of Others	14
	7.9.	Assignability	14
	7.10.	Jurisdiction; Court Proceedings; Waiver of Jury Trial	14
	7.11.	No Other Duties	14
	7.12.	Reliance on Counsel and Other Advisors	15
	7.13.	Remedies	15
	7.14.	Specific Performance	15
	7.15.	Counterparts	15
	7.16.	Further Assurance	15

 

	Exhibits	 	 
	 	 	 
	Exhibit A	-	Purchased Stock
	Exhibit B	-	Form of Promissory Note

  

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REDEMPTION AGREEMENT

 

This REDEMPTION
AGREEMENT is entered into as of April 3, 2013, by and among FRANKLIN HOLDINGS (BERMUDA), LTD., a Bermuda company (the “Company”),
SUNLIGHT CAPITAL VENTURES, LLC, a Delaware limited liability company (“SCV”, and SUNLIGHT CAPITAL PARTNERS II,
LLC, a Delaware limited liability company (“SCP,” and together with SCV, the “Sellers”).

 

RECITALS

 

WHEREAS,
the Company desires to purchase and redeem from the Sellers, and the Sellers desire to sell to the Company, all of each Seller’s
right, title and interest in and to all of the outstanding equity interests of the Company held by each Seller upon the terms and
subject to the conditions hereinafter set forth.

 

NOW THEREFORE,
in consideration of the premises and the representations, warranties, covenants and agreements contained in this Agreement, and
intending to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE I

Definitions and Rules of Construction

 

1.1.        Definitions.

 

As used in this Agreement, the following terms shall
have the meanings set forth below:

 

“Affiliate”
means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly,
either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors of such Person or (b)
direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

“Agreement” means this Redemption
Agreement, as it may be amended from time to time.

 

“Business
Day” means any day other than a Saturday, Sunday or day on which banks are closed in New York, New York. If any period
expires on a day which is not a Business Day or any event or condition is required by the terms of this Agreement to occur or be
fulfilled on a day which is not a Business Day, such period shall expire or such event or condition shall occur or be fulfilled,
as the case may be, on the next succeeding Business Day.

 

“Cash Purchase Price” has the meaning
set forth in Section 2.2(b)(i).

 

“Closing Date” has the meaning set
forth in Section 2.1.

 

“Company” has the meaning set forth
in the Preamble.

 

    	 

    	 

    

 

“Company Indemnitees” has the meaning
set forth in Section 6.2(b).

 

“Contemplated Transactions”
means the transactions contemplated by this Agreement, the Notes, and each other Transaction Document.

 

“Contract”
means any written agreement, license, contract, arrangement, understanding, obligation or commitment to which a party is bound.

 

“Equity
Securities” of any Person means any and all shares of capital stock, warrants, options, membership interests or partnership
interests of such Person, and all securities exchangeable for or convertible or exercisable into, any of the foregoing.

 

“GAAP”
means generally accepted accounting principles as set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession
in the United States.

 

“Governmental
Authority” means any nation or government, any foreign or domestic federal, state, county, municipal or other political
instrumentality or subdivision thereof and any foreign or domestic entity or body exercising executive, legislative, judicial,
regulatory, administrative or taxing functions of or pertaining to government, including any court.

 

“Indebtedness”
means all obligations and indebtedness of the Company or its Subsidiaries for borrowed money; provided, that Indebtedness shall
not include (a) accounts payable to trade creditors, accrued expenses and deferred revenues arising in the ordinary course of business,
(b) the endorsement of negotiable instruments for collection in the ordinary course of business, (c) capitalized lease obligations
or liabilities and (d) Indebtedness owing from the Company to any of its wholly owned Subsidiaries or from any of the Subsidiaries
of the Company to the Company.

 

“Indemnitee” has the meaning set
forth in Section 6.2(c)(i).

 

“Indemnitor” has the meaning set
forth in Section 6.2(c)(i).

 

“Laws” means all
laws, Orders, statutes, codes, regulations, ordinances, decrees, rules, or other requirements with similar effect of any Governmental
Authority.

 

“Lien” means any lien, security
interest, pledge or other similar encumbrance.

 

“Litigation”
means any claims, actions, suits, audits, inquiries, proceedings or governmental investigations, pending or threatened, at Law
or in equity or before any Governmental Authority.

 

“Loss”
or “Losses” means all claims, losses, liabilities, damages, costs and expenses, including, without limitation,
reasonable attorneys’ fees and the costs of enforcing any indemnity or injunctive relief rights, provided, that Losses
shall not include consequential damages, special damages, punitive damages, or lost profits.

  

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“Notes” has the meaning set forth
in Section 2.2(b)(ii).

 

“Note Period” has the meaning set
forth in Section 5.1(a).

 

“Orders” means
all judgments, orders, writs, injunctions, decisions, rulings, decrees and awards of any Governmental Authority.

 

“Person”
means any individual, person, entity, general partnership, limited partnership, limited liability partnership, limited liability
company, corporation, joint venture, trust, business trust, cooperative, association, foreign trust or foreign business organization.

 

“Purchased Stock” has the meaning
set forth in Section 2.1.

 

“Purchase Price” has the meaning
set forth in Section 2.2(a).

 

“Releasee” and “Releasees”
has the meaning set forth in Section 5.5(a).

 

“Sellers” has the meaning set forth
in the Preamble.

 

“Seller Indemnitee” has the meaning
set forth in Section 6.2(a).

 

“SCP” has the meaning set forth
in the Preamble.

 

“SCV” has the meaning set forth
in the Preamble.

 

“Subsidiary”
means, with respect to any Person, any corporation or other organization, whether incorporated or unincorporated, (a) of which
such Person or any other Subsidiary of such Person is a general partner (excluding partnerships, the general partnership interests
of which held by such Person or any Subsidiary of such Person do not have a majority of the voting interests in such partnership),
or (b) at least a majority of the securities or other interests of which having by their terms ordinary voting power to elect a
majority of the board of directors or others performing similar functions with respect to such corporation or other organization
is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one
or more of its Subsidiaries.

 

“Third Party Claim” has the meaning
set forth in Section 6.2(c)(ii)(A).

 

“Transaction
Documents” means this Agreement, the Notes and any other documents being executed and delivered in connection with this
Agreement, the Notes and the transactions contemplated hereby and thereby.

 

1.2.       Rules of Construction.

 

Unless the context otherwise requires:

 

(a)        
A capitalized term has the meaning assigned to it;

 

(b)       An accounting
term not otherwise defined has the meaning assigned to it in accordance with GAAP;

  

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(c)       References
in the singular or to “him,” “her,” “it,” “itself,” or other like references, and
references in the plural or the feminine or masculine reference, as the case may be, shall also, when the context so requires,
be deemed to include the plural or singular, or the masculine or feminine reference, as the case may be;

 

(d)        References to Articles,
Sections and Exhibits shall refer to articles, sections and exhibits of this Agreement, unless otherwise specified;

 

(e)        The
headings in this Agreement are for convenience and identification only and are not intended to describe, interpret, define or limit
the scope, extent or intent of this Agreement or any provision thereof;

 

(f)        This Agreement
shall be construed without regard to any presumption or other rule requiring construction against the party that drafted and caused
this Agreement to be drafted;

 

(g)        All
monetary figures shall be in United States dollars unless otherwise specified; and

 

(h)        References
to “including” in this Agreement shall mean “including, without limitation,” whether or not so specified.

 

ARTICLE II

Redemption

 

2.1.        Redemption.

 

Simultaneously
with the execution of this Agreement and on the date hereof (the “Closing Date”), the Company shall purchase and redeem
from each Seller, and each Seller shall sell, transfer and assign to the Company, all of the Equity Securities of the Company beneficially
owned by such Seller, as set forth on Exhibit A hereto (the “Purchased Stock”), in accordance with the
provisions of this Agreement.

 

2.2.        Payments of the Purchase Price.

 

(a)         The aggregate
purchase price to be paid by the Company for the Purchased Stock shall be Ninety-Two Million Three Hundred Thousand Dollars ($92,300,000)
(the “Purchase Price”), Forty-Six Million One Hundred Fifty Thousand Dollars ($46,150,000) of which will be
payable to SCV and Forty-Six Million One Hundred Fifty Thousand Dollars ($46,150,000) of which will be payable to SCP.

 

(b)        Following the delivery of all the
deliverables required by Section 2.3, the Purchase Price shall be paid on the Closing Date by the Company to Sellers as follows:

 

(i)          Thirty-Six
Million Nine Hundred Twenty Thousand Dollars ($36,920,000) in cash (the “Cash Purchase Price”) shall be paid
by Company to each Seller by wire transfer of immediately available funds to accounts designated by the Sellers; and

 

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(ii)         an
executed Promissory Note, in the form attached as Exhibit B hereto (the “Notes”), in the initial principal
amount of Nine Million Two Hundred Thirty Thousand Dollars ($9,230,000), shall be delivered by Company to each Seller.

 

2.3.        Deliverables.

 

(a)        Simultaneously
with the execution of this Agreement, the Company shall deliver to the Sellers:

 

(i)          The
Cash Purchase Price, as set forth above.

 

(ii)         The
Notes.

 

(b)        Simultaneously
with the payment of the Cash Purchase Price, the Sellers shall deliver, or cause to be delivered, to the Company (i) a resignation
of Mark Cicirelli from his role as a director of the Company, and (ii) original share certificates, if any, representing the Purchased
Stock.

 

ARTICLE III

Representations and Warranties of the
Sellers

 

Each Seller hereby severally,
and not jointly, represents and warrants to the Company as follows:

 

3.1.        Organization and Power.

 

The Seller
is a limited liability company duly organized, validly existing and in good standing under the Laws of Delaware. The Seller has
full power and authority to execute, deliver and perform this Agreement and the Transaction Documents to which it is a party and
to consummate the Contemplated Transactions.

 

3.2.        Authorization and Enforceability.

 

The Seller
has duly authorized the execution and delivery of this Agreement and the Transaction Documents to which it is a party and the performance
of its obligations hereunder and thereunder. This Agreement and each of the Transaction Documents constitute, or when executed
and delivered will constitute, the valid and legally binding obligation of the Seller, enforceable in accordance with its terms,
except as such enforceability may be limited by equitable principles and by applicable bankruptcy, insolvency, reorganization,
arrangement, moratorium or similar Laws relating to or affecting the rights of creditors generally.

 

3.3.        No Violation.

 

The execution, delivery
and performance of this Agreement and the Transaction Documents executed or to be executed by the Seller pursuant to this Agreement,
and the consummation of the Contemplated Transactions will not (i) conflict with or violate any provision of the organizational
documents of the Seller, (ii) conflict with or violate any provision of any Law or Order applicable to the Seller or by which the
Seller or its properties are bound or

 

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affected, or (iii) constitute a default
under any agreement or contract that binds the Seller, which default would materially adversely affect the ability of the Seller
to consummate the Contemplated Transactions.

 

3.4.        Governmental Authorizations and Consents.

 

No consent
or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other person (including
its members), entity or agency is required in order for the Sellers to execute, deliver, or perform any of its obligations under
this Agreement and the Transaction Documents, except such as have been obtained or made and are in full force and effect.

 

3.5.        Ownership of the Purchased Stock.

 

The Purchased
Stock, as set forth on Exhibit A hereto, accurately reflects all of the Equity Securities of the Company beneficially owned
by the Seller. The Seller has not transferred, assigned, encumbered, hypothecated or otherwise disposed of any of the Purchased
Stock owned by such Seller and the Seller owns all such Purchased Stock, free and clear of any Lien. The Seller is not a party
to any Contract, right of first refusal, right of first offer, proxy, voting agreement, voting trust, registration rights agreement
or shareholders agreement with respect to the Purchased Stock. The Purchased Stock will be transferred by Sellers to Company at
Closing, free and clear of any Lien other than those created in favor of the Company by this Agreement. After giving effect to
the Closing, Sellers will not hold, beneficially or of record, any Equity Securities of the Company.

 

3.6.        Litigation.

 

No Litigation
is pending or, to the knowledge of the Seller, threatened by or against such Seller or any of its property or assets (a) with respect
to this Agreement or the Transaction Documents or any of the Contemplated Transactions or (b) that would reasonably be expected
to adversely affect the ability of such Seller to perform its obligations under this Agreement or the Transaction Documents.

 

3.7.        No Brokers.

 

The Seller
has not employed or incurred any liability to any broker, finder or agent for any brokerage fees, finder’s fees, commissions
or other amounts with respect to this Agreement, the Transaction Documents or the Contemplated Transactions.

 

3.8.        Investigation.

 

Each Seller acknowledges
that it has been furnished all materials relating to Company, its Subsidiaries and Affiliates, their business and affairs, the
sale and redemption of the Purchased Stock, and other materials, that it has requested, and that it has been afforded the opportunity
to ask questions and receive answers concerning the terms and conditions of the transactions contemplated by this Agreement, and
to obtain additional information which the Company or its Subsidiaries and Affiliates possess or can acquire without unreasonable
effort or expense that is necessary to verify the accuracy of any representations or information set forth in any such

 

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material. Each Seller further acknowledges
that Company, its Subsidiaries and Affiliates, and their officers, directors, and managers, have answered all inquiries that such
Seller has made of them concerning the Company and its Subsidiaries and Affiliates, or any other matters relating to the transactions
contemplated by this Agreement.

 

3.9.        Disclaimer.

 

Neither Seller
nor any of their Affiliates, representatives or advisors has made, or shall be deemed to have made, to the Company or any other
Person any representations or warranty other than those expressly made by the Sellers in this Article III.

 

ARTICLE IV

Representations and Warranties of the
Company

 

The Company hereby represents and warrants to the Sellers
as follows:

 

4.1.        Organization and Power.

 

The Company
is a company, duly formed, validly existing and in good standing under the Laws of Bermuda and has the requisite power and authority,
and the legal right, to own, lease and operate its properties and assets and to conduct its business as it is now being conducted
and the Company is in material compliance with all Laws and Orders applicable to it. The Company has the power and authority, and
the legal right, to execute and deliver this Agreement and the Transaction Documents and to perform its obligations hereunder and
thereunder.

 

4.2.        Execution and Enforceability.

 

The Company
has duly executed and delivered this Agreement and the Transaction Documents. This Agreement and each Transaction Document is a
valid, legal and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceedings in equity or at law

 

4.3.        No Violation.

 

The execution and
delivery of this Agreement and the Transaction Documents and the consummation by the Company of the Contemplated Transactions do
not and will not (i) violate or conflict with the Company’s organizational documents, (ii) violate any Law or Order applicable
to the Company or by which any of its material properties or assets may be bound, or (iii) constitute a default under any agreement
or contract that binds the Company, which default would materially adversely affect the ability of the Company to consummate the
Contemplated Transactions.

 

4.4.        Governmental Authorizations and Consents.

 

No consent or authorization of, filing
with, notice to or other act by, or in respect of, any Governmental Authority or any other person (including its members), entity
or agency is

 

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required in
order for the Company to execute, deliver, or perform any of its obligations under this Agreement and the Transaction Documents,
except such as have been obtained or made and are in full force and effect.

 

4.5.        Litigation.

 

No Litigation
is pending or, to the knowledge of the Company, threatened by or against the Company or any of its property or assets (a) with
respect to this Agreement or the Transaction Documents or any of the Contemplated Transactions or (b) that would reasonably be
expected to adversely affect the Company’s financial condition or the ability of the Company to perform its obligations under
this Agreement or the Transaction Documents.

 

4.6.        Financial Capacity; Solvency.

 

(a)        The
Company has, as of the date hereof, available capital in an amount that is sufficient to pay the Cash Purchase Price, and the Company
will have available capital in an amount that is sufficient to make each other payment that may be required by and in accordance
with this Agreement, each other Transaction Document and the Contemplated Transactions.

 

(b)        Immediately
after giving effect to the Contemplated Transactions, including the payment by the Company of the Cash Purchase Price and each
other payment required by the Transaction Documents and the incurrence of any Indebtedness by the Company in connection therewith,
(i) the Company and its Subsidiaries, respectively, shall be able to pay their debts as they become due and shall own assets which
have a fair saleable value greater than the amounts required to pay such debts (including a reasonable estimate of the amount of
all contingent liabilities), and (ii) the Company and its Subsidiaries shall have adequate capital to carry on their respective
businesses. No transfer of property is being made and no obligation is being incurred in connection with the Contemplated Transactions
with the intent to hinder, delay or defraud either present or future creditors of the Company or its Subsidiaries.

 

4.7.        No Brokers.

 

Neither the Company
nor or any of its Affiliates has employed or incurred any liability to any broker, finder or agent for any brokerage fees, finder’s
fees, commissions or other amounts with respect to this Agreement, the Transaction Documents or the Contemplated Transactions.

 

4.8.        No Inducement or Reliance.

 

The Company has not
been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by either
Seller (or their Affiliates, officers, directors, employees, agents or representatives) that are not expressly set forth in Article
III hereof, whether or not any such representations, warranties or statements were made in writing or orally.

 

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4.9.        Disclaimer.

 

Neither Company
nor any of their Affiliates, representatives or advisors has made, or shall be deemed to have made, to the Sellers or any other
Person any representations or warranty other than those expressly made by the Company in this Article IV.

 

ARTICLE V

Covenants

 

5.1.        Access to Financial Statements.

 

During the
period from the date hereof through the date that all payments and obligations under the Notes have been satisfied (the “Note
Period”), upon the written request of the Sellers, the Company shall provide to the Sellers, within fifteen (15) days
of such request, (i) the unaudited consolidated balance sheet of the Company and its Subsidiaries for the immediately preceding
quarter, and the related unaudited statements of operations and cash flows, respectively, for such quarter, and (ii) the most recent
audited consolidated balance sheet of the Company and its Subsidiaries and the related statements of income, changes in equity
and cash flows for such audit period.

 

5.2.        Public Announcements.

 

No press
release regarding this Agreement, the Transaction Documents or the Contemplated Transactions shall be made unless the substance
and form of such press release are agreed to in writing by the Company and the Sellers; provided, that in the event that
the parties cannot come to an agreement, either party shall be permitted to make any disclosure required by Law; provided,
further, that the party proposing to issue any press release or similar public announcement or communication in compliance
with any such disclosure obligations shall use reasonable best efforts to consult in good faith with the other party before doing
so.

 

5.3.        Director Indemnification and Insurance.

 

(a)        From and after
the date hereof, the Company shall honor in all respects the obligations of the Company to its directors and officers (and those
of its Subsidiaries) pursuant to any indemnification provisions under the organizational documents of the Company as in effect
as of the date hereof. Until the sixth anniversary of the date hereof, the Company shall maintain the provisions with respect to
indemnification and exculpation from liability as set forth in the organizational documents of the Company as of the date of this
Agreement, which provisions shall not be amended, repealed or otherwise modified during such period in any manner that would adversely
affect the rights thereunder of the Sellers or Mark Cicirelli.

 

(b)        The Company
agrees to pay from time to time as warranted all expenses, including attorneys’ fees, that may be incurred by the Sellers
or Mark Cicirelli in enforcing the indemnity and other obligations provided for in this Section 5.3.

 

(c)        This Section 5.3 shall survive the
closing of the Contemplated Transactions, is intended to benefit and may be enforced by the Sellers or Mark Cicirelli, and

 

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shall be binding on all successors and assigns (including by
merger, asset sale, reorganization and other material transaction) of the Company.

 

5.4.      Reasonable Best Efforts.

 

Each of the
parties shall cooperate and use their respective reasonable best efforts to take, or cause to be taken, all appropriate action,
and do, or cause to be done, and assist and cooperate with the other parties in doing, all things necessary, proper or advisable
to consummate and make effective, in the most expeditious manner practicable, the Contemplated Transactions.

 

5.5.      Release.

 

(a)        Effective
only upon the end of the Note Period, (i) each Seller hereby releases and forever discharges the Company, and (ii) the Company
hereby releases and forever discharges Seller, and (in the case of both (i) and (ii) above) each of its affiliates and each of
their respective, past, present, and future, as it may apply, shareholders, directors, officers, partners, managers, members,
employees, counsel, agents and representatives, and each of their respective successors and assigns (individually, a “Releasee”
and, collectively, the “Releasees”) from any and all claims and liabilities whatsoever, whether known or unknown,
suspected or unsuspected, both at law and in equity, arising contemporaneously with or prior to the Closing Date, or on account
of or arising out of any matter, cause or event occurring contemporaneously with or prior to the Closing Date, including, but
not limited to, any rights to indemnification, reimbursement, or compensation from any Releasee, whether pursuant to any charter
documents, contracts, law, arrangement, commitment, undertaking or otherwise whether written or oral and whether or not relating
to claims pending on, or asserted after, the Closing Date; provided, however, that nothing contained herein shall
operate to release (x) any obligations of the Company or the Sellers arising under this Agreement, the Notes or any of
the other Transaction Documents, it being acknowledged that each party shall retain all rights, obligations and claims available
under the terms of this Agreement, the Notes and the other Transaction Documents, or (y) any right of Mark Cicirelli to receive
indemnification as a former director of the Company.

 

(b)        Further,
each Seller and the Company hereby irrevocably covenants to refrain from, directly or indirectly, asserting any claim or demand,
or commencing, instituting or causing to be commenced, any proceeding of any kind against any Releasee, based upon any matter released
hereby.

 

ARTICLE VI

Indemnification; Survival

 

6.1.       Expiration of Representations and Warranties.

 

The representations
and warranties of the parties set forth in this Agreement shall terminate and expire, and shall cease to be of any force or effect,
at 5:00 P.M. (Eastern time) on the date that is the twenty-four (24) month anniversary of the date hereof and all liability and
indemnification obligations with respect to such representations and warranties shall thereupon be extinguished (except to the
extent a claim for indemnification has been made prior to such time for any breach thereof). The parties acknowledge and agree
that the time period set forth in this Section 6.1 for the assertion of claims under this Agreement is the result of arms’-length

 

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negotiation among the parties and that they intend for such
time period to be enforced as agreed among the parties.

 

6.2.       Indemnification.

 

(a)        By
the Company. Subject to the provisions of Section 6.1, the Company agrees to indemnify, defend and hold harmless the Sellers,
each of their Affiliates, and their respective officers, directors, employees, shareholders, members, partners, agents, representatives,
successors and assigns (collectively, “Seller Indemnitees”) from and against all Losses incurred by any of the
Seller Indemnitees arising out of or relating to: (i) any breach of any representation or warranty made by the Company in this
Agreement or any Transaction Document, or (ii) any breach of any covenant or agreement of the Company contained in this Agreement
or any Transaction Document.

 

(b)        By
the Seller. Subject to the provisions of Section 6.1, the Sellers agree, severally and not jointly, to indemnify, defend and
hold harmless the Company, each of its Affiliates, and their respective officers, directors, employees, shareholders, members,
partners, agents, representatives, successors and assigns (collectively, “Company Indemnitees”) from and against
all Losses incurred by any of the Company Indemnitees arising out of or relating to: (i) any breach of any representation or warranty
made by the Sellers in this Agreement or any Transaction Document, or (ii) any breach of any covenant or agreement of the Sellers
contained in this Agreement or any Transaction Document.

 

(c)        Procedure.

 

(i)          Direct
Claims. If a Seller Indemnitee or a Company Indemnitee, as applicable (an “Indemnitee”), shall have a claim
for indemnification hereunder for any claim other than a claim asserted by a third party, the Indemnitee shall, as promptly as
is practicable, give written notice to the indemnifying party (such party, the “Indemnitor”) of the nature and,
to the extent practicable, a good faith estimate of the amount, of the claim, which notice must certify that the Indemnitee has
in good faith already sustained some (though not necessarily all) Losses with respect to such claim. The failure to make prompt
delivery of such written notice by the Indemnitee to the Indemnitor (so long as a notice pursuant to this Section 6.2(c)(i), including
the requisite certification, is given before the expiration of the applicable period set forth in Section 6.1) shall not relieve
the Indemnitor from any liability under this Section 6.2 with respect to such matter, except to the extent the Indemnitor is actually
prejudiced by failure to give such notice.

 

(ii)         Third-Party
Actions.

 

(A)         If
an Indemnitee receives notice or otherwise obtains knowledge of any matter or any threatened matter that may give rise to an indemnification
claim against an Indemnitor (the “Third Party Claim”), then the Indemnitee shall promptly, and in any event
within twenty (20) days of the receipt of notice or other knowledge of any such claim against a Indemnitee, deliver to the Indemnitor
a written notice describing, to the extent practicable, such matter in reasonable detail and such notice must be accompanied by
a copy of any written notice of the third party claimant to the Indemnitee asserting the Third Party Claim.

  

    	11

    	 

    

 

The failure to make timely prompt delivery
of such written notice or of the copy of the written notice of the third party claimant by the Indemnitee to the Indemnitor (so
long as a notice pursuant to this Section 6.2(c)(ii)(A) that includes any written notice of the third party claimant is given before
the expiration of the applicable period set forth in Section 6.1) shall not relieve the Indemnitor from any liability under this
Section 6.2 with respect to such matter, except to the extent the Indemnitor is actually prejudiced by failure to give such notice.

 

ARTICLE VII

Miscellaneous

 

7.1.        Expenses.

 

Except as
specified in Section 6.2, all fees and expenses incurred in connection with the Contemplated Transactions shall be paid by the
party incurring such expenses, whether or not the Contemplated Transactions are consummated.

 

7.2.        Notices.

 

All notices and other
communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given or made (a) as of
the date delivered, if delivered personally, (b) on the date the delivering party receives confirmation, if delivered by facsimile,
(c) three (3) Business Days after being mailed by registered or certified mail (postage prepaid, return receipt requested) or (d)
one (1) Business Day after being sent by overnight courier (providing proof of delivery), to the parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.2):

 

If to the Company:

 

Franklin Holdings (Bermuda), Ltd.

Clarendon House

2 Church Street

Hamilton HM 11 Bermuda

Attention:         Secretary 

Facsimile:          (441)
292-4720

 

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

 

Bryan Cave LLP

1290 Avenue of the Americas

New York, New York 10104

Attention: Kenneth L. Henderson, Esq.

Facsimile:           
(212) 541-4630

 

If to the Sellers:

 

Elliott Management Corporation

40 West 57th Street, 31st Floor

 

    	12

    	 

    

 

New York, NY 10019

Attn: Mark Cicirelli

 

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

 

Kleinberg, Kaplan, Wolff & Cohen P.C.

551 Fifth Avenue

New York, NY 10176

Attn: Christopher P. Davis

 

7.3.        Governing Law.

 

This Agreement
shall in all respects be governed by, and construed in accordance with, the Laws (excluding conflict of laws rules and principles)
of the State of New York applicable to agreements made and to be performed entirely within such State, including all matters of
construction, validity and performance.

 

7.4.        Entire Agreement.

 

This Agreement,
together with the Exhibits hereto, the Notes and any other Transaction Documents, constitute the entire agreement of the parties
relating to the subject matter hereof and supersede all prior contracts or agreements, whether oral or written.

 

7.5.        Severability.

 

Should any
provision of this Agreement or the application thereof to any Person or circumstance be held invalid or unenforceable to any extent:
(a) such provision shall be ineffective to the extent, and only to the extent, of such unenforceability or prohibition and shall
be enforced to the greatest extent permitted by Law, (b) such unenforceability or prohibition in any jurisdiction shall not invalidate
or render unenforceable such provision as applied (i) to other Persons or circumstances or (ii) in any other jurisdiction, and
(c) such unenforceability or prohibition shall not affect or invalidate any other provision of this Agreement.

 

7.6.        Amendment.

 

Neither
this Agreement nor any of the terms hereof may be terminated, amended, supplemented or modified orally, but only by an instrument
in writing signed by the Company and each Seller; provided, that the observance of any provision of this Agreement may
be waived in writing by the party that will lose the benefit of such provision as a result of such waiver.

 

7.7.        Effect of Waiver or Consent.

 

No waiver or consent,
express or implied, by any party to or of any breach or default by any party in the performance by such party of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such
party of the same or any other obligations of such party hereunder. No single or partial exercise of any right or power, or any
abandonment or discontinuance of steps to enforce any right or power, shall preclude any other or further exercise thereof or the
exercise of any other

 

    	13

    	 

    

 

right or power.
Failure on the part of a party to complain of any act of any party or to declare any party in default, irrespective of how long
such failure continues, shall not constitute a waiver by such party of its rights hereunder until the applicable statute of limitation
period has run.

 

7.8.        Parties in Interest; Limitation on Rights
of Others.

 

The terms
of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective legal representatives,
successors and assigns. Nothing in this Agreement, whether express or implied, shall be construed to give any Person (other than
the parties hereto and their respective legal representatives, successors and assigns and as expressly provided herein) any legal
or equitable right, remedy or claim under or in respect of this Agreement or any covenants, conditions or provisions contained
herein, as a third party beneficiary or otherwise.

 

7.9.        Assignability.

 

This Agreement
shall not be assigned by a party without the prior written consent of each of the other parties hereto.

 

7.10.       Jurisdiction; Court Proceedings; Waiver
of Jury Trial.

 

Any Litigation against
any party to this Agreement arising out of or in any way relating to this Agreement shall be brought in any federal or state court
located in the State of New York in New York County and each of the parties hereby submits to the exclusive jurisdiction of such
courts for the purpose of any such Litigation; provided, that a final judgment in any such Litigation shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably
and unconditionally agrees not to assert (a) any objection which it may ever have to the laying of venue of any such Litigation
in any federal or state court located in the State of New York in New York County, (b) any claim that any such Litigation brought
in any such court has been brought in an inconvenient forum and (c) any claim that such court does not have jurisdiction with respect
to such Litigation. To the extent that service of process by mail is permitted by applicable Law, each party irrevocably
consents to the service of process in any such Litigation in such courts by the mailing of such process by registered or certified
mail, postage prepaid, at its address for notices provided for herein. Each party irrevocably and unconditionally waives
any right to a trial by jury and agrees that any of them may file a copy of this paragraph with any court as written evidence of
the knowing, voluntary and bargained-for agreement among the parties irrevocably to waive its right to trial by jury in any Litigation.

 

7.11.        No Other Duties.

 

The only duties and
obligations of the parties under this Agreement are as specifically set forth in this Agreement, and no other duties or obligations
shall be implied in fact, Law or equity, or under any principle of fiduciary obligation.

 

    	14

    	 

    

 

7.12.       Reliance on Counsel and Other Advisors.

 

Each party
has consulted such legal, financial, technical or other expert as it deems necessary or desirable before entering into this Agreement.
Each party represents and warrants that it has read, knows, understands and agrees with the terms and conditions of this Agreement.

 

7.13.       Remedies.

 

All remedies,
either under this Agreement or by Law or otherwise afforded to the parties hereunder, shall be cumulative and not alternative,
and any Person having any rights under any provision of this Agreement will be entitled to enforce such rights specifically, to
recover damages by reason of any breach of this Agreement and to exercise all other rights granted by Law, equity or otherwise.

 

7.14.       Specific Performance.

 

The parties agree
that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. Accordingly, the parties agree that, in addition to any other remedies, each
party shall be entitled to enforce the terms of this Agreement by a decree of specific performance without the necessity of proving
the inadequacy of money damages as a remedy. Each party hereby waives any requirement for the securing or posting of any bond in
connection with such remedy. Each party further agrees that the only permitted objection that it may raise in response to any action
for equitable relief is that it contests the existence of a breach or threatened breach of this Agreement.

 

7.15.       Counterparts.

 

This Agreement
may be executed by facsimile signatures and in any number of counterparts with the same effect as if all signatory parties had
signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

 

7.16.       Further Assurance.

 

If at any time after
the date hereof any further action is necessary or desirable to fully effect the transactions contemplated by this Agreement or
any other of the Transaction Documents, each of the parties shall take such further action (including the execution and delivery
of such further instruments and documents) as any other party reasonably may request.

 

(signature pages follow)

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be duly executed and delivered in its name and on its behalf, all as of
the day and year first above written.

 

	 	FRANKLIN HOLDINGS (BERMUDA), LTD.
	 	 	 
	 	By: 	/s/ Robert P. Myron
	 	Name: Robert P. Myron
	 	Title:  CEO
	 	 
	 	SUNLIGHT CAPITAL VENTURES, LLC
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	SUNLIGHT CAPITAL PARTNERS II, LLC
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[signature page to the Stock Purchase
Agreement]

  

    	 

    	 

    

 

IN WITNESS
WHEREOF, each of the parties hereto has caused this Agreement to be duly executed and delivered in its name and on its behalf,
all as of the day and year first above written.

 

	 	FRANKLIN HOLDINGS (BERMUDA), LTD.
	 	 	 
	 	By: 	 
	 	Name: 
	 	Title:  
	 	 
	 	SUNLIGHT CAPITAL VENTURES, LLC
	 	 	 
	 	By:	/s/ ELLIOT GREENBERG
	 	Name: ELLIOT GREENBERG
	 	Title:   VICE PRESIDENT
	 	 
	 	SUNLIGHT CAPITAL PARTNERS II, LLC
	 	 	 
	 	By:	/s/ ELLIOT GREENBERG
	 	Name: ELLIOT GREENBERG
	 	Title:   VICE PRESIDENT

 

[signature page
to the Stock Purchase Agreement] 

 

    	 

    	 

    

 

EXHIBIT A

PURCHASED STOCK

 

	HOLDER	 	SHARES	 
	Sunlight Capital Ventures, LLC	 	 	62,500	 
	Sunlight Capital Partners II, LLC	 	 	62,500	 

  

    	 

    	 

    

 

EXHIBIT B

FORM OF PROMISSORY NOTE 

 

    	 

    	 

    

 

PROMISSORY NOTE

(Sunlight Capital Ventures, LLC)

 

	Amount:	U.S.$9,230,000	 
	 	 	 
	Dated:	April 3, 2013	 

 

FOR VALUE
RECEIVED, the undersigned Franklin Holdings (Bermuda) Ltd. (“Borrower”), with an address at Clarendon House, 2
Church Street, Hamilton HM11, Bermuda, promises to pay to the order of Sunlight Capital Ventures, LLC (“Lender”), at
its office located at 40 West 57th Street, New York, NY 10019 or at such other place as Lender may direct, U.S. Nine Million Two
Hundred Thirty Thousand Dollars and 00/100 Dollars (U.S.$9,230,000) (the “Principal Amount”), together with interest
at the rate, and fees and expenses on the terms provided in, this Promissory Note (the “Loan”). This Promissory Note
(“Note”) is made as of the date of Borrower’s repurchase of one hundred percent (100%) of Lender’s equity
ownership interest in Borrower, and the Principal Amount represents the portion of the purchase price of such equity for which
Borrower has not paid Lender in cash.

 

		1.	INTEREST RATE.   Borrower will pay Lender interest on the unpaid Principal Amount
at the annual rate set forth below (calculated on the actual number of days elapsed over a 365 day year) from the date of this
Note (except as provided in the next sentence) until the entire outstanding Principal Amount and accrued and outstanding interest
together with all fees and expenses due under this Note have been paid, whether or not judgment is obtained. At no time, however,
will the interest rate exceed the maximum allowable by Law. Interest will compound annually.

 

Fixed Rate.   The rate of five
and one-half percent (5.5%) per annum, subject to automatic (i) reduction to two and one-half percent (2.5%) per annum in the event
Borrower repays all but not less than all amounts related to the Loan on or before April 3, 2014, and (ii) increase as provided
in Section 7 of this Note.

 

		2.	TERM.   This Note matures and all unpaid principal, accrued interest and unpaid
fees and expenses are payable on October 3, 2014 (the “Maturity Date”).

 

		3.	FEES AND EXPENSES.   All fees and expenses incurred by Lender in connection with
the enforcement of this Note, including but not limited to attorney’s fees, will be promptly reimbursed by Borrower.

 

		4.	PAYMENTS.   All unpaid Principal Amount, accrued interest and unpaid fees and
expenses shall be due and payable on the Maturity Date by means of wire transfer of immediately available funds to an account designated
in writing by Lender.

 

		5.	PREPAYMENTS.   Borrower may prepay the Loan evidenced by this Note in whole or
in part without penalty before the Maturity Date. All payments made hereunder shall be applied first to the payment of any fees
or charges outstanding hereunder, second to

 

    	 

    	 

    

 

accrued but unpaid interest,
and third to the payment of the Principal Amount outstanding under the Note.

 

		6.	DEFAULT.   Each of the following shall constitute an event of default (“Event of Default”)
under this Note: (a) failure of Borrower to make any payment to Lender when due hereunder; (b) the breach or nonperformance of
any representation, warranty or covenant of Borrower contained in this Note and such breach or nonperformance continues for a period
of not less than thirty (30) days after written notice thereof from Lender to Borrower; provided, that, any breach or nonperformance
of the provisions of Sections 4, 8(A)(i), 8(F), 9(A), 10(B) or 10(C) shall immediately result in an Event of Default, without such
thirty (30) day period; (c) any breach under the Redemption Agreement of even date herewith (the “Redemption Agreement”)
between Borrower and Lender and such breach continues beyond any applicable notice and cure period; or (d) the institution of proceedings
by or against Borrower under any bankruptcy or insolvency law, or any law for the benefit of creditors or relief of debtors, (provided,
however, that the institution of involuntary proceedings against Borrower will not be an Event of Default if such proceeding is
discharged or dismissed within sixty (60) days after the commencement date thereof), or a custodianship, trusteeship, receivership
or assignment for the benefit of creditors is imposed upon or sought by Borrower.

 

		7.	REMEDIES.  Upon the occurrence and during the continuance of an Event of Default, at Lender’s
option, all amounts owing to Lender in connection with the Loan and this Note will become due and payable immediately, without
notice of any kind to Borrower. Upon the occurrence and during the continuance of an Event of Default, interest will continue to
accrue on all such amounts until paid, at a default rate of interest equal to two percent (2%) per annum above the otherwise applicable
rate under this Note. In addition, Lender shall have all the rights and remedies available at law, in equity, or otherwise. All
of Lender’s rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to
pursue any remedy or combination shall not exclude pursuit of any other remedy, and an election to make expenditures or take action
to perform any obligation of Borrower shall not affect Lender’s right to declare an Event of Default and to exercise its
rights and remedies.

 

		8.	REPRESENTATIONS.  As a material inducement to Lender’s willingness to make the Loan,
Borrower represents and warrants that:

 

(A)         it
is (i) a limited company duly incorporated, validly existing and in good standing under the Laws of Bermuda and has the requisite
power and authority, and the legal right, to own, lease and operate its material properties and assets and to conduct its business
as it is now being conducted in all material respects and (ii) in material compliance with all Laws and Orders applicable to it;

(B)         Borrower
has the power and authority, and the legal right, to execute and deliver this Note and to perform its obligations hereunder;

(C)         Borrower
has duly executed and delivered this Note;

(D)         no
consent or authorization of, filing with, notice to or other act by, or in respect of, any governmental authority or any other
person (including its shareholders), entity or agency is required in order for Borrower to execute, deliver, or perform any of
its

 

 

    	2

    	 

    

 

obligations under this Note, except such as have been obtained
or made and are in full force and effect;

(E)         the
execution and delivery of this Note and the consummation by Borrower of the transactions contemplated hereby do not and will not
(i) violate or conflict with Borrower’s organizational documents (ii) violate any Law or Order applicable to Borrower or
by which any of its material properties or assets may be bound; or (iii) constitute a default under any material agreement or contract
by which Borrower may be bound;

(F)         this
Note is a valid, legal and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally and subject
to general principles of equity, regardless of whether considered in a proceedings in equity or at law;

(G)         Except
for liens identified in Borrower’s most recent audited financial statements and liens encumbering certain investment property
of JRG Reinsurance Company Ltd. under that certain Master Letter of Credit Reimbursement and Security Agreement dated as of July
7, 2011 between KeyBank National Association and JRG Reinsurance Company Ltd., the assets of neither Borrower nor any of its subsidiaries
are encumbered by any liens securing indebtedness of any person outstanding on the date hereof the aggregate principal or face
amount of which equals or exceeds (or may equal or exceed) $5,000,000; and

(H)        no action, suit,
litigation, investigation or proceeding of, or before, any arbitrator or governmental authority is pending or, to the knowledge
of Borrower, threatened by or against Borrower or any of its property or assets (a) with respect to this Note or any of the transactions
contemplated hereby or (b) that would reasonably be expected to materially adversely affect Borrower’s financial condition
or the ability of Borrower to perform its obligations under this Note.

 

Borrower understands
and acknowledges that Lender is reasonably, materially and detrimentally relying on each representation and warranty set forth
in this Section 8 and would not be making this Loan “but for” each representation and warranty.

 

For the purposes of this Note:

 

“Law”
means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any governmental
authority or agency and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to
or binding on such person or any of its properties or to which such person or any of its properties is subject.

 

“Order”
means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator or a
court or other governmental authority, in each case, applicable to or binding on such person or any of its properties or to which
such person or any of its properties is subject.

 

 

    	3

    	 

    

 

		9.	AFFIRMATIVE COVENANTS.   Until all obligations of Borrower under this Note have been satisfied or terminated
in accordance with this Note, Borrower shall:

 

(A)         Preserve,
renew and maintain in full force and effect its corporate or organizational existence and take all reasonable action to maintain
all material rights, privileges and franchises necessary or desirable in the normal conduct of its business;

(B)         Comply
with all Laws and Orders applicable to it or its property, other than such Laws and Orders (i) the validity or applicability of
which Borrower is contesting in good faith by appropriate proceedings or (ii) the failure to comply with which would not reasonably
be expected to materially adversely affect Borrower’s financial condition or the ability of Borrower to perform its obligations
under this Note;

(C)         Use
its commercially reasonable efforts to obtain third party financing sufficient to pay all amounts due under this Note in full on
or before October 3, 2013;

(D)         Upon
the request of Lender, promptly execute and deliver such further instruments and do or cause to be done such further acts as may
be reasonably necessary or advisable to carry out the intent and purposes of this Note;

(E)         Pay,
discharge or otherwise satisfy all of its material obligations before the same shall become delinquent or in default, except where
the amount or validity thereof is currently being contested in good faith by appropriate proceedings, and reserves in conformity
with the generally accepted accounting principles of the United States with respect thereto have been provided on its books;

(F)         As
soon as practicable and in any event within five (5) business days after an executive officer of Borrower obtains actual knowledge
that an Event of Default has occurred, notify Lender in writing of the nature and extent of such Event of Default and the action,
if any, it has taken or proposes to take with respect to such Event of Default; and

(G)         Use
the proceeds of any and all new debt incurred or borrowed outside of the ordinary course of business (including all new borrowings
since the March 1, 2013 under that certain Credit Agreement dated as of September 24, 2008 (as in existence as of the date hereof,
the “KeyBank Credit Agreement”) among Borrower, as borrower, Franklin Holdings (II) (Bermuda), Ltd., as subsidiary
guarantor, the lenders party thereto and KeyBank National Association, as administrative agent and letter of credit issuer, but
excluding any reborrowing or refinancing of any amounts outstanding under the KeyBank Credit Agreement by a renewal or replacement
facility) to repay Lender and Lehman, on a pro rata basis according to the outstanding principal, interest and fees and expenses
owed to Lender and Lehman under this Note and the Lehman Note, respectively, any principal, interest and fees and expenses outstanding
under this Note and the Lehman Note, respectively, within three (3) business days of Borrower’s receipt of such proceeds.

 

For the purposes of this Note:

 

“Lehman” means Lehman Brothers Offshore Partners,
Ltd.

 

“Lehman Note” means
that certain Promissory Note dated as of the date hereof by Borrower in favor of Lehman in the principal amount of $3,692,000.00.

 

    	4

    	 

    

 

		10.	NEGATIVE COVENANTS.   So long as any amount under this Note shall remain unpaid,
Borrower will not, and will cause each of its subsidiaries not to, without the prior written consent of Lender (which consent shall
not be unreasonably withheld, conditioned or delayed):

 

(A)         Create
or suffer to exist any lien, security interest or other charge or encumbrance, or any other type of preferential arrangement, upon
or with respect to any of its properties or assets, whether now owned or hereafter acquired, or assign any right to receive income,
in each case to secure any debt of any person, other than:

(i)          liens
imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.05 of the KeyBank Credit Agreement;

(ii)         carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like liens imposed by law, arising in
the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being contested
in compliance with Section 5.05 of the KeyBank Credit Agreement;

(iii)        pledges
and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations (including, without limitation, deposits made in the ordinary course of business to cash
collateralize letters of credit described in the parenthetical in clause (i) of the definition of “Debt” in the KeyBank
Credit Agreement);

(iv)        deposits
to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature and liens imposed by statutory or common law relating to banker’s liens or rights of setoff
or similar rights relating to deposit accounts, in each case in the ordinary course of business;

(v)         liens
arising under escrows, trusts, custodianships, separate accounts, funds withheld procedures, and similar deposits, arrangements,
or agreements established with respect to insurance policies, annuities, guaranteed investment contracts and similar products underwritten
by, or reinsurance agreements entered into by, any Insurance Subsidiary (as such term is defined in the KeyBank Credit Agreement)
in the ordinary course of business;

(vi)        deposits
with insurance regulatory authorities in the ordinary course of business (which deposits may be in the form of cash collateralized
letters of credit);

(vii)       easements,
zoning restrictions, rights-of-way, licenses, reservations, minor irregularities of title and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure any monetary obligation and do not materially detract
from the value of the affected property or interfere with the ordinary conduct of business of Borrower;

(viii)      any
lien on any property of Borrower or any subsidiary existing on the date hereof and described in Section 8(G) above; provided
that (A) such lien shall not apply to any other property of Borrower or such subsidiary and (B) such lien shall secure only
those obligations that it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the
aggregate commitment amount secured thereby; 

 

    	5

    	 

    

 

(ix)         any
lien existing on any fixed or capital asset before the acquisition thereof by a Borrower or any subsidiary or existing on any fixed
or capital asset of any person that first becomes a subsidiary after the date hereof before the time such person becomes a subsidiary;
provided that (A) such lien is not created in contemplation of or in connection with such acquisition or such person becoming
a subsidiary, (B) such lien will not apply to any other property or asset of Borrower or any subsidiary, (C) such lien will secure
only those obligations which it secures on the date of such acquisition or the date such person first becomes a subsidiary, as
the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof,
(D) the principal amount of debt secured by any such lien shall at no time exceed 80% of the fair market value (as determined in
good faith by a senior financial officer of Borrower or a subsidiary) of such fixed or capital asset at the time it was acquired
(by purchase, construction or otherwise) , and (E) the aggregate principal amount of debt secured by any and all such liens permitted
under this clause (ix) shall not at any time exceed $10,000,000;

(x)          liens
on fixed or capital assets acquired, constructed or improved by Borrower or any subsidiary; provided that (A) such liens
and the debt secured thereby are incurred before or within ninety (90) days after such acquisition or the completion of such construction
or improvement, (C) the debt secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital
assets, (C) such liens will not apply to any other property of Borrower or any subsidiary, and (D) the aggregate principal amount
of debt secured by any and all such liens permitted under this clause (x) shall not at any time exceed $10,000,000;

(xi)         liens
to secure a debt owing to Borrower or a subsidiary;

(xii)        liens
on the assets of an insurance subsidiary to secure debt owing by such subsidiary to the Federal Home Loan Bank of which such subsidiary
is a member;

(xiii)       cash
deposited as collateral to secure letter of credit debt incurred by an insurance subsidiary of Borrower in the ordinary course
of business; and

(xiv)      any
lien arising out of the refinancing, extension, renewal or refunding of any debt secured by a lien permitted by any of clauses
(viii), (ix), (x), (xi), (xii) or (xiii) of this Section; provided that such debt under any of clauses (viii), (ix) and
(x) is not increased (except by the amount of fees, expenses and premiums required to be paid in connection with such refinancing,
extension, renewal or refunding) and is not secured by any additional assets;

provided
that, except as provided in clause (iii) above, the liens permitted pursuant to clauses (i) through (vii) above shall not include
any lien that secures indebtedness for borrowed money.

(B)          Except for payments
to Lehman made on the date hereof and to be made pursuant to the Lehman Note, pay any cash dividends, cash distributions or other
cash payments, including by way of loans, indemnities or guaranties, to the shareholders of Borrower; provided, however,
that the foregoing shall in no way limit any right to indemnification afforded any director or officer of Borrower by corporate
policy or applicable statute for their actions (or inactions) in such capacity.

 

    	6

    	 

    

 

(C)         Merge
or consolidate with or into, or convey, transfer, otherwise dispose of (other than in the ordinary course of business) any of its
assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets of, or otherwise enter into
a material business combination with, any person, unless the surviving or acquiring entity in such transaction expressly agrees
in writing to assume and perform all of Borrower’s obligations under this Note.

(D)         Prepay
any amount under the Lehman Note without concurrently making a pro rata (according to the amount of principal, interest, fees and
expenses outstanding under each of this Note and the Lehman Note) prepayment against the Loan in accordance with Section 5 of this
Note.

(E)         Materially
amend, supplement or modify the Lehman Note.

 

		11.	TAXES.

 

(A)         Any
and all payments by Borrower under this Note shall be made free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto (all such taxes, levies imposts,
deductions, charges, withholdings and liabilities, but excluding any taxes based on Lender’s income, being hereinafter referred
to as “Taxes”).

(B)         In
addition, Borrower shall pay any present or future stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made under this Note or from the execution, delivery or registration of, or otherwise with respect to, this
Note (all such taxes, charges and levies being hereinafter referred to as “Other Taxes”).

(C)         Borrower
shall indemnify Lender for the full amount of Taxes and Other Taxes, and for the full amount of Taxes imposed by any jurisdiction
on amounts payable under this paragraph, paid by Lender and any liability (including, without limitation, penalties, additions
to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification payment shall be made within thirty
days from the date Lender makes written demand therefor.

(D)         Without
prejudice to the survival of any other agreement of Borrower under this Note, the agreements and obligations of Borrower contained
in this paragraph shall survive the payment in full of principal and interest under this Note.

 

		12.	MAXIMUM RATE PERMITTED BY LAW.
                                          All agreements in this Note are expressly limited so that in no contingency or
                                         event whatsoever, whether reason of acceleration of maturity of the indebtedness evidenced
                                         hereby or otherwise, shall the amount agreed to be paid hereunder for the use, forbearance,
                                         or detention of money exceed the highest lawful rate permitted under applicable usury
                                         laws. If, from any circumstance whatsoever, fulfillment of any provision of this Note
                                         at the time performance of such provision shall be due shall involve exceeding any usury
                                         limit prescribed by law that a court of competent jurisdiction may deem applicable hereto,
                                         then, ipso facto, the obligations to be fulfilled shall be reduced to allow
                                         compliance with such limit, and if, from any circumstance whatsoever, Lender shall ever
                                         receive as interest an amount that would exceed the highest lawful rate, the receipt
                                         of such excess shall be deemed a mistake and shall be canceled automatically or, if theretofore
                                         paid, such excess shall be credited against the principal amount of the indebtedness
                                         evidenced

  

    	7

    	 

    

 

hereby to which the same may lawfully be credited,
and any portion of such excess not capable of being so credited shall be refunded immediately to Borrower.

 

		13.	AVOIDANCE OF DEBT PAYMENTS.  To the extent that any payment to Lender and/or
any payment or proceeds of any collateral received by Lender in reduction of the Loan is subsequently invalidated, declared to
be fraudulent or preferential, set aside and/or required to be repaid to a trustee, to Borrower (or Borrower’s successor)
as a debtor in possession, or to a receiver, creditor, or any other party under any bankruptcy law, state or federal law, common
law or equitable cause, then the portion of the Loan intended to have been satisfied by such payment or proceeds shall remain due
and payable hereunder, be evidenced by this Note, and shall continue in full force and effect as if such payment or proceeds had
never been received by Lender whether or not this Note has been marked “paid” or otherwise cancelled or satisfied and/or
has been delivered to Borrower, and in such event Borrower shall be immediately obligated to return the original Note to Lender
and any marking of “paid” or other similar marking shall be of no force and effect.

 

		14.	SEVERABILITY.  If any provision of this Note is found to be invalid or unenforceable,
such provision shall be stricken and all remaining provisions of this Note shall remain valid and enforceable.

 

		15.	WAIVER; AMENDMENTS.  No amendment of this Note, and no waiver of any one or more of
the provisions hereof, shall be effective unless set forth in a writing signed by Lender and Borrower; provided, however,
that any such waiver shall be restricted to the matters specified in such writing.

 

		16.	ENTIRE AGREEMENT.   This Note and the associated Redemption Agreement constitute
the sole agreements of the parties regarding the subject matter hereof and thereof and supersede all oral negotiations and prior
writings regarding the subject matter hereof and thereof.

 

		17.	APPLICABLE LAW; JURISDICTION. THIS NOTE WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ANY PRINCIPLES OF CONFLICTS OF LAW. ANY LEGAL ACTION OR PROCEEDING
BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS NOTE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE
STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK
(IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS NOTE, BORROWER ACCEPTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM)
FOR ANY LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS NOTE. 

  

    	8

    	 

    

 

		18.	SUCCESSORS AND ASSIGNS.   This Note shall be binding upon Borrower and Borrower’s
successors and assigns and shall inure to the benefit of Lender, its successors and assigns. Neither party may assign or transfer
its rights or obligations under this Note without the prior written consent of the other party. By acceptance of this Note, Lender
is hereby deemed to have accepted the terms and conditions hereof.

 

		19.	NO WAIVER, MODIFICATION OR PARTNERSHIP. Nothing set forth in this Note shall be construed
as making Lender or Borrower the partner, agent or joint venturer of the other party. Borrower and Lender shall have no relationship
to each other than as debtor and creditor.

 

IN WITNESS WHEREOF, BORROWER, INTENDING
TO BE LEGALLY BOUND, HAS EXECUTED THIS NOTE IN FAVOR OF LENDER AS OF THE DATE ABOVE WRITTEN.

 

	 	BORROWER:
	 	 
	 	FRANKLIN HOLDINGS (BERMUDA) LTD.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

  

    	9

    	 

    

 

PROMISSORY NOTE

(Sunlight Capital Partners II, LLC)

 

	Amount:	U.S.$9,230,000	 
	 	 	 
	Dated:	April 3, 2013	 

 

FOR
VALUE RECEIVED, the undersigned Franklin Holdings (Bermuda) Ltd. (“Borrower”), with an address at Clarendon House,
2 Church Street, Hamilton HM11, Bermuda, promises to pay to the order of Sunlight Capital Partners II, LLC (“Lender”),
at its office located at 40 West 57th Street, New York, NY 10019 or at such other place as Lender may direct, U.S.
Nine Million Two Hundred Thirty Thousand Dollars and 00/100 Dollars (U.S.$9,230,000) (the “Principal Amount”), together
with interest at the rate, and fees and expenses on the terms provided in, this Promissory Note (the “Loan”). This
Promissory Note (“Note”) is made as of the date of Borrower’s repurchase of one hundred percent (100%) of Lender’s
equity ownership interest in Borrower, and the Principal Amount represents the portion of the purchase price of such equity for
which Borrower has not paid Lender in cash.

 

		1.	INTEREST RATE.  Borrower will pay Lender interest on the unpaid Principal Amount at
the annual rate set forth below (calculated on the actual number of days elapsed over a 365 day year) from the date of this Note
(except as provided in the next sentence) until the entire outstanding Principal Amount and accrued and outstanding interest together
with all fees and expenses due under this Note have been paid, whether or not judgment is obtained. At no time, however, will the
interest rate exceed the maximum allowable by Law. Interest will compound annually.

 

Fixed Rate.   The rate of five and
one-half percent (5.5%) per annum, subject to automatic (i) reduction to two and one-half percent (2.5%) per annum in the event
Borrower repays all but not less than all amounts related to the Loan on or before April 3, 2014, and (ii) increase as provided
in Section 7 of this Note.

 

		2.	TERM.  This Note matures and all unpaid principal, accrued interest and unpaid fees
and expenses are payable on October 3, 2014 (the “Maturity Date”).

 

		3.	FEES AND EXPENSES.  All fees and expenses incurred by Lender in connection with the
enforcement of this Note, including but not limited to attorney’s fees, will be promptly reimbursed by Borrower.

 

		4.	PAYMENTS.   All unpaid Principal Amount, accrued interest and unpaid fees and
expenses shall be due and payable on the Maturity Date by means of wire transfer of immediately available funds to an account designated
in writing by Lender.

 

		5.	PREPAYMENTS.  Borrower may prepay the Loan evidenced by this Note in whole or in part
without penalty before the Maturity Date. All payments made hereunder shall be applied first to the payment of any fees or charges
outstanding hereunder, second to accrued but unpaid interest, and third to the payment of the Principal Amount outstanding under
the Note.

  

    	 

    	 

    

 

		6.	DEFAULT.   Each of the following shall constitute an event of default (“Event
of Default”) under this Note: (a) failure of Borrower to make any payment to Lender when due hereunder; (b) the breach or
nonperformance of any representation, warranty or covenant of Borrower contained in this Note and such breach or nonperformance
continues for a period of not less than thirty (30) days after written notice thereof from Lender to Borrower; provided, that,
any breach or nonperformance of the provisions of Sections 4, 8(A)(i), 8(F), 9(A), 10(B) or 10(C) shall immediately result in an
Event of Default, without such thirty (30) day period; (c) any breach under the Redemption Agreement of even date herewith (the
“Redemption Agreement”) between Borrower and Lender and such breach continues beyond any applicable notice and
cure period; or (d) the institution of proceedings by or against Borrower under any bankruptcy or insolvency law, or any law for
the benefit of creditors or relief of debtors, (provided, however, that the institution of involuntary proceedings against Borrower
will not be an Event of Default if such proceeding is discharged or dismissed within sixty (60) days after the commencement date
thereof), or a custodianship, trusteeship, receivership or assignment for the benefit of creditors is imposed upon or sought by
Borrower.

 

		7.	REMEDIES.  Upon the occurrence and during the continuance of an Event of Default, at
Lender’s option, all amounts owing to Lender in connection with the Loan and this Note will become due and payable immediately,
without notice of any kind to Borrower. Upon the occurrence and during the continuance of an Event of Default, interest will continue
to accrue on all such amounts until paid, at a default rate of interest equal to two percent (2%) per annum above the otherwise
applicable rate under this Note. In addition, Lender shall have all the rights and remedies available at law, in equity, or otherwise.
All of Lender’s rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender
to pursue any remedy or combination shall not exclude pursuit of any other remedy, and an election to make expenditures or take
action to perform any obligation of Borrower shall not affect Lender’s right to declare an Event of Default and to exercise
its rights and remedies.

 

		8.	REPRESENTATIONS.  As a material inducement to Lender’s willingness to make the
Loan, Borrower represents and warrants that:

 

(A)         it
is (i) a limited company duly incorporated, validly existing and in good standing under the Laws of Bermuda and has the requisite
power and authority, and the legal right, to own, lease and operate its material properties and assets and to conduct its business
as it is now being conducted in all material respects and (ii) in material compliance with all Laws and Orders applicable to it;

(B)         Borrower
has the power and authority, and the legal right, to execute and deliver this Note and to perform its obligations hereunder;

(C)         Borrower
has duly executed and delivered this Note;

(D)         no
consent or authorization of, filing with, notice to or other act by, or in respect of, any governmental authority or any other
person (including its shareholders), entity or agency is required in order for Borrower to execute, deliver, or perform any of
its obligations under this Note, except such as have been obtained or made and are in full force and effect; 

 

    	 

    	 

    

 

(E)         the execution and delivery of this
Note and the consummation by Borrower of the transactions contemplated hereby do not and will not (i) violate or conflict with
Borrower’s organizational documents (ii) violate any Law or Order applicable to Borrower or by which any of its material
properties or assets may be bound; or (iii) constitute a default under any material agreement or contract by which Borrower may
be bound;

(F)         this
Note is a valid, legal and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights generally and subject
to general principles of equity, regardless of whether considered in a proceedings in equity or at law;

(G)         Except
for liens identified in Borrower’s most recent audited financial statements and liens encumbering certain investment property
of JRG Reinsurance Company Ltd. under that certain Master Letter of Credit Reimbursement and Security Agreement dated as of July
7, 2011 between KeyBank National Association and JRG Reinsurance Company Ltd., the assets of neither Borrower nor any of its subsidiaries
are encumbered by any liens securing indebtedness of any person outstanding on the date hereof the aggregate principal or face
amount of which equals or exceeds (or may equal or exceed) $5,000,000; and

(H)         no
action, suit, litigation, investigation or proceeding of, or before, any arbitrator or governmental authority is pending or, to
the knowledge of Borrower, threatened by or against Borrower or any of its property or assets (a) with respect to this Note or
any of the transactions contemplated hereby or (b) that would reasonably be expected to materially adversely affect Borrower’s
financial condition or the ability of Borrower to perform its obligations under this Note.

 

Borrower understands
and acknowledges that Lender is reasonably, materially and detrimentally relying on each representation and warranty set forth
in this Section 8 and would not be making this Loan “but for” each representation and warranty.

 

For the purposes of this Note:

 

“Law”
means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any governmental authority
or agency and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding
on such person or any of its properties or to which such person or any of its properties is subject.

 

“Order”
means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator or a court
or other governmental authority, in each case, applicable to or binding on such person or any of its properties or to which such
person or any of its properties is subject.

 

		9.	AFFIRMATIVE COVENANTS. Until all obligations of Borrower under this Note have been satisfied or terminated in accordance
with this Note, Borrower shall:

  

    	 

    	 

    

 

(A)         Preserve,
renew and maintain in full force and effect its corporate or organizational existence and take all reasonable action to maintain
all material rights, privileges and franchises necessary or desirable in the normal conduct of its business;

(B)         Comply
with all Laws and Orders applicable to it or its property, other than such Laws and Orders (i) the validity or applicability of
which Borrower is contesting in good faith by appropriate proceedings or (ii) the failure to comply with which would not reasonably
be expected to materially adversely affect Borrower’s financial condition or the ability of Borrower to perform its obligations
under this Note;

(C)         Use
its commercially reasonable efforts to obtain third party financing sufficient to pay all amounts due under this Note in full on
or before October 3, 2013;

(D)         Upon
the request of Lender, promptly execute and deliver such further instruments and do or cause to be done such further acts as may
be reasonably necessary or advisable to carry out the intent and purposes of this Note;

(E)         Pay,
discharge or otherwise satisfy all of its material obligations before the same shall become delinquent or in default, except where
the amount or validity thereof is currently being contested in good faith by appropriate proceedings, and reserves in conformity
with the generally accepted accounting principles of the United States with respect thereto have been provided on its books;

(F)         As
soon as practicable and in any event within five (5) business days after an executive officer of Borrower obtains actual knowledge
that an Event of Default has occurred, notify Lender in writing of the nature and extent of such Event of Default and the action,
if any, it has taken or proposes to take with respect to such Event of Default; and

(G)         Use
the proceeds of any and all new debt incurred or borrowed outside of the ordinary course of business (including all new borrowings
since the March 1, 2013 under that certain Credit Agreement dated as of September 24, 2008 (as in existence as of the date hereof,
the “KeyBank Credit Agreement”) among Borrower, as borrower, Franklin Holdings (II) (Bermuda), Ltd., as subsidiary
guarantor, the lenders party thereto and KeyBank National Association, as administrative agent and letter of credit issuer, but
excluding any reborrowing or refinancing of any amounts outstanding under the KeyBank Credit Agreement by a renewal or replacement
facility) to repay Lender and Lehman, on a pro rata basis according to the outstanding principal, interest and fees and expenses
owed to Lender and Lehman under this Note and the Lehman Note, respectively, any principal, interest and fees and expenses outstanding
under this Note and the Lehman Note, respectively, within three (3) business days of Borrower’s receipt of such proceeds.

 

For the purposes of this Note:

 

“Lehman” means Lehman Brothers Offshore
Partners, Ltd.

 

“Lehman Note”
means that certain Promissory Note dated as of the date hereof by Borrower in favor of Lehman in the principal amount of $3,692,000.00.

 

		10.	NEGATIVE COVENANTS. So long as any amount under this Note shall remain unpaid, Borrower will not, and will cause each
of its subsidiaries not to, without the prior

  

    	 

    	 

    

 

written consent of Lender (which consent
shall not be unreasonably withheld, conditioned or delayed):

 

(A)         Create
or suffer to exist any lien, security interest or other charge or encumbrance, or any other type of preferential arrangement, upon
or with respect to any of its properties or assets, whether now owned or hereafter acquired, or assign any right to receive income,
in each case to secure any debt of any person, other than:

(i)           liens
imposed by law for taxes that are not yet due or are being contested in compliance with Section 5.05 of the KeyBank Credit Agreement;

(ii)         carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like liens imposed by law,
arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being
contested in compliance with Section 5.05 of the KeyBank Credit Agreement;

(iii)      pledges
and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and
other social security laws or regulations (including, without limitation, deposits made in the ordinary course of business to cash
collateralize letters of credit described in the parenthetical in clause (i) of the definition of “Debt” in the KeyBank
Credit Agreement);

(iv)       deposits
to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature and liens imposed by statutory or common law relating to banker’s liens or rights of setoff
or similar rights relating to deposit accounts, in each case in the ordinary course of business;

(v)         liens
arising under escrows, trusts, custodianships, separate accounts, funds withheld procedures, and similar deposits, arrangements,
or agreements established with respect to insurance policies, annuities, guaranteed investment contracts and similar products underwritten
by, or reinsurance agreements entered into by, any Insurance Subsidiary (as such term is defined in the KeyBank Credit Agreement)
in the ordinary course of business;

(vi)        deposits
with insurance regulatory authorities in the ordinary course of business (which deposits may be in the form of cash collateralized
letters of credit);

(vii)       easements,
zoning restrictions, rights-of-way, licenses, reservations, minor irregularities of title and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure any monetary obligation and do not materially detract
from the value of the affected property or interfere with the ordinary conduct of business of Borrower;

(viii)      any
lien on any property of Borrower or any subsidiary existing on the date hereof and described in Section 8(G) above; provided
that (A) such lien shall not apply to any other property of Borrower or such subsidiary and (B) such lien shall secure only those
obligations that it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the aggregate
commitment amount secured thereby;

(ix)        any lien existing on any fixed or capital asset
before the acquisition thereof by a Borrower or any subsidiary or existing on any fixed or capital asset of

  

    	 

    	 

    

 

any person
that first becomes a subsidiary after the date hereof before the time such person becomes a subsidiary; provided that (A)
such lien is not created in contemplation of or in connection with such acquisition or such person becoming a subsidiary, (B) such
lien will not apply to any other property or asset of Borrower or any subsidiary, (C) such lien will secure only those obligations
which it secures on the date of such acquisition or the date such person first becomes a subsidiary, as the case may be, and extensions,
renewals and replacements thereof that do not increase the outstanding principal amount thereof, (D) the principal amount of debt
secured by any such lien shall at no time exceed 80% of the fair market value (as determined in good faith by a senior financial
officer of Borrower or a subsidiary) of such fixed or capital asset at the time it was acquired (by purchase, construction or otherwise)
, and (E) the aggregate principal amount of debt secured by any and all such liens permitted under this clause (ix) shall not at
any time exceed $10,000,000;

(x)          liens
on fixed or capital assets acquired, constructed or improved by Borrower or any subsidiary; provided that (A) such liens
and the debt secured thereby are incurred before or within ninety (90) days after such acquisition or the completion of such construction
or improvement, (C) the debt secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital
assets, (C) such liens will not apply to any other property of Borrower or any subsidiary, and (D) the aggregate principal amount
of debt secured by any and all such liens permitted under this clause (x) shall not at any time exceed $10,000,000;

(xi)         liens
to secure a debt owing to Borrower or a subsidiary;

(xii)        liens
on the assets of an insurance subsidiary to secure debt owing by such subsidiary to the Federal Home Loan Bank of which such subsidiary
is a member;

(xiii)       cash
deposited as collateral to secure letter of credit debt incurred by an insurance subsidiary of Borrower in the ordinary course
of business; and

(xiv)      any
lien arising out of the refinancing, extension, renewal or refunding of any debt secured by a lien permitted by any of
clauses (viii), (ix), (x), (xi), (xii) or (xiii) of this Section; provided that such debt under any of clauses (viii),
(ix) and (x) is not increased (except by the amount of fees, expenses and premiums required to be paid in connection with
such refinancing, extension, renewal or refunding) and is not secured by any additional assets;

provided that, except
as provided in clause (iii) above, the liens permitted pursuant to clauses (i) through (vii) above shall not include any lien
that secures indebtedness for borrowed money.

(B)         Except
for payments to Lehman made on the date hereof and to be made pursuant to the Lehman Note, pay any cash dividends, cash distributions
or other cash payments, including by way of loans, indemnities or guaranties, to the shareholders of Borrower; provided,
however, that the foregoing shall in no way limit any right to indemnification afforded any director or officer of Borrower
by corporate policy or applicable statute for their actions (or inactions) in such capacity.

(C)         Merge
or consolidate with or into, or convey, transfer, otherwise dispose of (other than in the ordinary course of business) any of
its assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets of, or otherwise enter
into a 

 

    	 

    	 

    

 

material
business combination with, any person, unless the surviving or acquiring entity in such transaction expressly agrees in writing
to assume and perform all of Borrower’s obligations under this Note.

(D)         Prepay
any amount under the Lehman Note without concurrently making a pro rata (according to the amount of principal, interest, fees and
expenses outstanding under each of this Note and the Lehman Note) prepayment against the Loan in accordance with Section 5 of this
Note.

(E)         Materially
amend, supplement or modify the Lehman Note.

 

		11.	TAXES.

 

(A)         Any
and all payments by Borrower under this Note shall be made free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto (all such taxes, levies imposts,
deductions, charges, withholdings and liabilities, but excluding any taxes based on Lender’s income, being hereinafter referred
to as “Taxes”).

(B)         In
addition, Borrower shall pay any present or future stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made under this Note or from the execution, delivery or registration of, or otherwise with respect to, this
Note (all such taxes, charges and levies being hereinafter referred to as “Other Taxes”).

(C)         Borrower
shall indemnify Lender for the full amount of Taxes and Other Taxes, and for the full amount of Taxes imposed by any jurisdiction
on amounts payable under this paragraph, paid by Lender and any liability (including, without limitation, penalties, additions
to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification payment shall be made within thirty
days from the date Lender makes written demand therefor.

(D)         Without
prejudice to the survival of any other agreement of Borrower under this Note, the agreements and obligations of Borrower contained
in this paragraph shall survive the payment in full of principal and interest under this Note.

 

		12.	MAXIMUM RATE PERMITTED BY
                                         LAW.   All agreements in this Note are expressly limited so that in no
                                         contingency or event whatsoever, whether reason of acceleration of maturity of the indebtedness
                                         evidenced hereby or otherwise, shall the amount agreed to be paid hereunder for the use,
                                         forbearance, or detention of money exceed the highest lawful rate permitted under applicable
                                         usury laws. If, from any circumstance whatsoever, fulfillment of any provision of this
                                         Note at the time performance of such provision shall be due shall involve exceeding any
                                         usury limit prescribed by law that a court of competent jurisdiction may deem applicable
                                         hereto, then, ipso facto, the obligations to be fulfilled shall be reduced
                                         to allow compliance with such limit, and if, from any circumstance whatsoever, Lender
                                         shall ever receive as interest an amount that would exceed the highest lawful rate, the
                                         receipt of such excess shall be deemed a mistake and shall be canceled automatically
                                         or, if theretofore paid, such excess shall be credited against the principal amount of
                                         the indebtedness evidenced hereby to which the same may lawfully be credited, and any
                                         portion of such excess not capable of being so credited shall be refunded immediately
                                         to Borrower.

  

    	 

    	 

    

 

		13.	AVOIDANCE OF DEBT PAYMENTS.   To the extent that any payment to Lender and/or
any payment or proceeds of any collateral received by Lender in reduction of the Loan is subsequently invalidated, declared to
be fraudulent or preferential, set aside and/or required to be repaid to a trustee, to Borrower (or Borrower’s successor)
as a debtor in possession, or to a receiver, creditor, or any other party under any bankruptcy law, state or federal law, common
law or equitable cause, then the portion of the Loan intended to have been satisfied by such payment or proceeds shall remain due
and payable hereunder, be evidenced by this Note, and shall continue in full force and effect as if such payment or proceeds had
never been received by Lender whether or not this Note has been marked “paid” or otherwise cancelled or satisfied and/or
has been delivered to Borrower, and in such event Borrower shall be immediately obligated to return the original Note to Lender
and any marking of “paid” or other similar marking shall be of no force and effect.

 

		14.	SEVERABILITY.  If any provision of this Note is found to be invalid or unenforceable,
such provision shall be stricken and all remaining provisions of this Note shall remain valid and enforceable.

 

		15.	WAIVER; AMENDMENTS.  No
                                         amendment of this Note, and no waiver of any one or more of the provisions hereof,
                                         shall be effective unless set forth in a writing signed by Lender and Borrower; provided,
                                         however, that any such waiver shall be restricted to the matters specified in
                                         such writing.

 

		16.	ENTIRE AGREEMENT.   This Note and the associated Redemption Agreement constitute
the sole agreements of the parties regarding the subject matter hereof and thereof and supersede all oral negotiations and prior
writings regarding the subject matter hereof and thereof.

 

		17.	APPLICABLE LAW; JURISDICTION. THIS NOTE WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ANY PRINCIPLES OF CONFLICTS OF LAW. ANY LEGAL ACTION OR PROCEEDING
BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS NOTE MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE
STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK
(IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS NOTE, BORROWER ACCEPTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM)
FOR ANY LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS NOTE. 

 

		18.	SUCCESSORS AND ASSIGNS.   This Note shall be binding upon Borrower and Borrower’s
successors and assigns and shall inure to the benefit of Lender, its successors and assigns. Neither party may assign or transfer
its rights or obligations under this Note

  

    	 

    	 

    

 

without the prior written consent of the other party.
By acceptance of this Note, Lender is hereby deemed to have accepted the terms and conditions hereof.

 

		19.	NO WAIVER, MODIFICATION OR PARTNERSHIP. Nothing set forth in this Note shall be construed
as making Lender or Borrower the partner, agent or joint venturer of the other party. Borrower and Lender shall have no relationship
to each other than as debtor and creditor.

 

IN WITNESS WHEREOF, BORROWER, INTENDING
TO BE LEGALLY BOUND, HAS EXECUTED THIS NOTE IN FAVOR OF LENDER AS OF THE DATE ABOVE WRITTEN.

 

	 	BORROWER:
	 	 
	 	FRANKLIN HOLDINGS (BERMUDA) LTD.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:Exhibit 10.6

 

Form of Shareholder Indemnification
Agreement

 

CONFIDENTIAL

 

This
INDEMNIFICATION AGREEMENT, dated as of December 11, 2007 (the “Agreement”), is among (i) Franklin Holdings
(Bermuda), Ltd., a Bermuda exempted company (the “Company”), (ii) James River Group, Inc., a Delaware
corporation (James River), and (iii) [●] (each an “Investor”
and, together, the “Investors”). Capitalized terms used in this Agreement without definition have the meanings
set forth in Section 1 below.

 

RECITALS

 

A.         The
Company and Franklin Acquisition Corp. (“Merger Sub”) have entered into an Agreement and Plan of Merger, dated
as of June 11, 2007 (as it may be amended from time to time in accordance with its terms, the “Merger Agreement”),
with James River, pursuant to which the Company has agreed to acquire, on the terms and subject to the conditions set forth in
the Merger Agreement, all of the outstanding shares of capital stock of James River via the merger of Merger Sub with and into
James River (the “Merger”).

 

B.         The
Company and certain of its shareholders, including the Investors, have entered into an Investor Shareholders Agreement (as the
same may be amended from time to time in accordance with its terms, the “Shareholders Agreement”), dated as
of the date of this Agreement, setting forth certain terms and conditions regarding the ownership of Equity Securities, including
certain restrictions on the transfer of such Equity Securities, and the governance of the Company and its Subsidiaries.

 

C.         In
order to fund the merger consideration payable under the Merger Agreement, to capitalize the proposed Bermuda reinsurance Subsidiary
of the Company, and to pay or reimburse expenses and incidental activities related to such funding and capitalization, (a)
the Company is selling Preferred Shares, to each Investor and to other shareholders of the Company as are listed in the signature
pages to the Shareholders Agreement (the “Equity Offering”), and (b) James River and affiliates of the
Company are entering into the Debt Financing.

 

D.         The
Company or one or more of its Subsidiaries from time to time in the future may (a) offer and sell or cause to be
offered and sold equity or debt securities or instruments (such offerings, collectively, the “Subsequent
Offerings”), including (i) offerings of shares of capital stock of the Company or any of its Subsidiaries,
and/or options to purchase such shares or other equity-linked securities to employees and directors of the Company or any of
its Subsidiaries (any such offering, a “Management Offering”), and (ii) one or more offerings of
debt securities or instruments, and (b) repurchase, redeem, or otherwise acquire certain securities of the Company or
any of its Subsidiaries or engage in recapitalization or structural reorganization transactions relating thereto (any such
repurchase, redemption, acquisition, recapitalization, or

 

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reorganization, a “Redemption”),
in each case, subject to the terms and conditions of the Shareholders Agreement and any other applicable agreement.

 

E.         The
parties to this Agreement recognize the possibility that claims might be made against and liabilities incurred by any of the Investors
or any Excluded Person under applicable securities laws or otherwise in connection with the Transactions or the Offerings, or relating
to the provision of financial, investment banking, management, advisory, consulting, monitoring or other services (the “Transaction
Services”) or actions or omissions of or by the Company or any of its Subsidiaries, and the parties to this Agreement
accordingly wish to provide for the Investors and the other Indemnitees to be indemnified in respect of any such claims and liabilities.

 

F.         The
parties to this Agreement recognize that claims might be made against and liabilities incurred by Investors that hold Voting Proxies
in connection with their exercise of their rights to vote the Voting Securities subject to such Voting Proxies, and the parties
to this Agreement accordingly wish to provide for such holders to be indemnified in respect of any such claims and liabilities.

 

G.         The
parties to this Agreement recognize that claims might be made against and liabilities incurred by directors and officers of the
Company or any of its Subsidiaries in connection with their acting in such capacity, and that breach of fiduciary duty claims might
be made against and liabilities incurred by shareholders of the Company, and accordingly wish to provide for such shareholders,
directors, and officers to be indemnified to the fullest extent permitted by law in respect of any such claims and liabilities.

 

NOW, THEREFORE, in consideration
of the foregoing premises, and the mutual agreements and covenants and provisions set forth in this Agreement, the parties to this
Agreement agree as follows:

 

1.          Definitions.

 

(a)        “Affiliate”
means, with respect to any Person, (i) any other Person directly or indirectly Controlling, Controlled by or under common
Control with, such Person; (ii) any Person directly or indirectly owning or Controlling ten percent or more of any class
of outstanding voting securities of such Person; or (iii) any officer, director, general partner, special limited partner,
or trustee of any such Person described in clause (i) or (ii).

 

(b)        “Claim”
means, with respect to any Indemnitee, any claim by or against such Indemnitee involving any Obligation with respect to which such
Indemnitee may be entitled to be indemnified by the Company or any of its Subsidiaries under this Agreement.

 

(c)        “Commission”
means the United States Securities and Exchange Commission or any successor entity thereto.

 

(d)        “Common
Shares” means the common shares, par value $0.01 per share, of the Company and any securities issued in respect thereof,
or in substitution therefor, in connection

 

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with any stock split, dividend,
or combination, or any reclassification, recapitalization, merger, consolidation, exchange, or other similar reorganization.

 

(e)        “Control”
of any Person means the power to direct the management and policies of such Person (whether through the ownership of voting securities,
by contract, as trustee or executor, or otherwise).

 

(f)         “Debt
Financing” means the financing contemplated by the Debt Commitment Letters (as defined in the Shareholders Agreement),
and any replacement financing for, or refinancing of, such financing.

 

(g)        “Determination”
means a determination that either (i) there is a reasonable basis for the conclusion that indemnification of an Indemnitee
is proper in the circumstances because such Indemnitee met a particular standard of conduct (a “Favorable Determination”)
or (ii) solely in the case of an Indemnitee making a Claim in such Indemnitee’s capacity as director or officer of
the Company or any of its Subsidiaries, there is no reasonable basis for the conclusion that indemnification of an Indemnitee is
proper in the circumstances because such Indemnitee met a particular standard of conduct (an “Adverse Determination”).
An Adverse Determination includes both the decision that a Determination was required by applicable law and this Agreement in connection
with indemnification and the decision as to the applicable standard of conduct.

 

(h)        “Equity
Securities” means any and all (a) Common Shares, (b) Preferred Shares, or (c) securities of the
Company convertible into, or exchangeable or exercisable for, Common Shares, and options, warrants, or other rights to acquire
Common Shares.

 

(i)         “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

(j)         “Excluded
Person” means any former, current, or future director, officer, employee, agent, general or limited partner, manager,
member, stockholder, Affiliate, or assignee of the Investors or any former, current, or future director, officer, employee, agent,
general or limited partner, manager, member, stockholder, Affiliate, or assignee of any of the foregoing.

 

(k)        “Expenses”
means all reasonable and reasonably documented attorneys’ fees and expenses, retainers, court, arbitration and mediation
costs, transcript costs, fees of experts, bonds, witness fees, costs of collecting and producing documents, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements, costs, or expenses
of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in, appealing, or otherwise participating in a Proceeding.

 

(l)         “Extraordinary
Transaction” means: (i) the acquisition by any Person or Group of (x) Voting Securities representing 50
percent or more of the voting power of the Company’s then outstanding Voting Securities or (y) 50 percent or more
of the Shares then outstanding, in each case other than any such acquisition by the Company or any Subsidiary of the Company, any
member of an Investor Group (as defined in the Shareholders Agreement), any employee benefit plan of the Company or any of its
Subsidiaries, or any Affiliates of any of the

  

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foregoing; (ii) the
merger, consolidation, recapitalization, stock purchase, or other similar transaction involving the Company, as a result of which
Persons who were shareholders immediately prior to such merger, consolidation, or other similar transaction do not, immediately
thereafter, own, directly or indirectly, more than 50 percent of the combined voting power entitled to vote generally in the election
of directors of the merged, consolidated, or surviving company; (iii) a majority of the votes of the total authorized membership
of the board of directors of the Company shall cease to be held by directors designated by the Investors, the GS Investors (as
defined in the Shareholders Agreement), the Elliott Investors (as defined in the Shareholders Agreement), any Additional Co-Investor
(as defined in the Shareholders Agreement), or members of their respective Investor Groups; or (iv) the sale, transfer,
or other disposition of all or substantially all of the assets of the Company to one or more Persons that are not, immediately
prior to such sale, transfer, or other disposition, Affiliates of the Company. Notwithstanding the foregoing, a Public Offering
shall not constitute an Extraordinary Transaction.

 

(m)       “Group”
has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act.

 

(n)        “Indemnitee”
means each of the Investors, their respective Affiliates (other than the Company and any of its Subsidiaries), each Related Entity,
their respective successors and assigns, and the respective directors, officers, liquidators, partners, members, stockholders,
employees, agents, advisers, consultants, representatives, and controlling persons (within the meaning of the Securities Act) of
each of them, or of their partners, members, and controlling persons, and each other person who is or becomes a director or an
officer of any member of the Company or any of its Subsidiaries, in each case irrespective of the capacity in which such person
acts, and whether or not such Person continues to have the applicable status referred to above.

 

(o)        “Independent
Legal Counsel” means an attorney or firm of attorneys competent to render an opinion under the applicable law, selected
in accordance with the provisions of Section 4(e) below, who has not otherwise performed any services for the Company, any of its
Subsidiaries, or for any Indemnitee within the last three years (other than with respect to matters concerning the rights of an
Indemnitee under this Agreement or other indemnitees under indemnity agreements similar to this Agreement).

 

(p)        “Obligations”
means, collectively, any and all claims, obligations, liabilities, causes of actions, Proceedings, investigations, judgments, decrees,
losses, damages (including punitive, consequential, special, and exemplary damages), fees, fines, penalties, amounts paid in settlement,
costs (including costs of investigation and preparations) and Expenses (including interest, assessments, and other charges in connection
therewith and disbursements of attorneys, accountants, investment bankers, and other professional advisers), in each case whether
incurred, arising, or existing with respect to third parties or otherwise at any time or from time to time, other than, for the
avoidance of doubt, (i) solely in the case of a Shareholder (as such term is defined in the Shareholders Agreement) or former
Shareholder, any such claims, obligations, liabilities, causes of actions, Proceedings, investigations, judgments, decrees, losses,
damages, fees, fines, penalties, amounts paid in settlement, costs or Expenses incurred or arising in connection with a breach
of contract claim under the Shareholders Agreement or the Voting Proxies against such Shareholder or former Shareholder by another
party to the Shareholders

 

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Agreement or the Voting Proxies,
it being understood that this clause (i) shall not apply to any Obligations of an Excluded Person of such Shareholder or former
Shareholder incurred or arising in connection therewith; (ii) any such claims, obligations, liabilities, causes of actions,
Proceedings, investigations, judgments, decrees, losses, damages, fees, fines, penalties, amounts paid in settlement, costs or
Expenses incurred or arising in connection with any claim against an Indemnitee by a direct or indirect equityholder of an Indemnitee
arising out of such equityholder’s direct or indirect ownership of equity interests in Indemnitee or its Affiliates or any
related contractual arrangements; or (iii) any such claims, obligations, liabilities, causes of actions, Proceedings, investigations,
judgments, decrees, losses, damages, fees, fines, penalties, amounts paid in settlement, costs, or Expenses incurred or arising
in connection with any claim against an Indemnitee by any service provider of such Indemnitee or its affiliates arising in connection
with the provision of services by such service provider to such Indemnitee or affiliates.

 

(q)        “Offerings”
means the Equity Offering, any Management Offering, any Redemption, and any Subsequent Offering.

 

(r)         “Person”
means an individual, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock
company, trust, unincorporated organization, government or any agency or political subdivisions thereof, or any other entity or
Group.

 

(s)         “Preferred
Shares” means the 2,500,000 shares of Series A Preferred Stock, par value $0.01 per share, of the Company and any other
preference shares issued in accordance with the Bye-laws.

 

(t)         “Proceeding”
means a threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative,
including a claim, demand, discovery request, formal or informal investigation, inquiry, administrative hearing, arbitration or
other form of alternative dispute resolution, including an appeal from any of the foregoing.

 

(u)        “Public
Offering” means an offering of Common Shares pursuant to a registration statement filed in accordance with the Securities
Act.

 

(v)        “Related
Document” means any agreement, certificate, instrument, or other document to which the Company or any of its Subsidiaries
may be a party or by which it or any of its properties or assets may be bound or affected from time to time relating in any way
to the Transactions or any Offering or any of the transactions contemplated thereby, including in each case as the same may be
amended from time to time, (i) any registration statement filed by or on behalf of the Company or any of its Subsidiaries
with the Commission in connection with the Transactions or any Offering, including all exhibits, financial statements, and schedules
appended to such registration statement, and any submissions to the Commission in connection with such registration statement;
(ii) any prospectus (preliminary, final, free-writing, or otherwise), included in such registration statements or otherwise
filed by or on behalf of the Company or any of its Subsidiaries in connection with the Transactions or any Offering or used to
offer or confirm sales of their respective securities or instruments in any Offering; (iii) any private placement or offering
memorandum or circular, information statement, or other information or materials distributed by

 

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or on behalf of the Company
or any of its Subsidiaries or any placement agent or underwriter in connection with the Transactions or any Offering; (iv)
any federal, state, or foreign securities law or other governmental or regulatory filings or applications made in connection with
any Offering, the Transactions, or any of the transactions contemplated thereby; (v) any dealer-manager, underwriting, subscription,
purchase, shareholders, option, or registration rights agreement or plan entered into or adopted by the Company or any of its Subsidiaries
in connection with any Offering; (vi) any purchase, repurchase, redemption, recapitalization or reorganization, or other
agreement entered into by the Company or any of its Subsidiaries in connection with any Redemption; or (vii) any quarterly,
annual, or current reports or other filing filed, furnished, or supplementally provided by the Company or any of its Subsidiaries
with or to the Commission or any securities exchange, including all exhibits, financial statements, and schedules appended to such
reports or filings, and any submission to the Commission or any securities exchange in connection with such reports or filings.

 

(w)       “Related
Entity” means [●]; any entity directly or indirectly affiliated with any of the Investor or [●]; investment
funds directly or indirectly affiliated with, or controlled by, any of the Investor or [●]; subsidiaries of and entities
directly or indirectly controlled by any of the Investor, [●] and/or such entities; and investment vehicles to which investment
management services are provided by any of the foregoing.

 

(x)        “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

(y)        “Subsidiary”
means each Person in which a Person owns or Controls, directly or indirectly, capital stock or other equity interests representing
more than 50 percent of the outstanding capital stock or other equity interests.

 

(z)        “Transactions”
means the Merger, the Equity Offering, the Debt Financing, and any transaction for which Transaction Services are or have been
provided to the Company or any of its Subsidiaries.

 

(aa)      “Voting
Securities” means, at any time, shares of any class of Equity Securities of the Company, which are then entitled to vote
generally in the election of directors.

 

2.          Indemnification.

 

(a)        Without
in any way limiting any rights of indemnification any Indemnitee may have pursuant to Article V of the Shareholders Agreement,
each of the Company and James River (each an “Indemnifying Party” and collectively the “Indemnifying
Parties”), jointly and severally, agrees to indemnify, defend, and hold harmless each Indemnitee:

 

(i)                
from and against any and all Obligations, whether incurred with respect to third parties or
otherwise, in any way resulting from, arising out of or in connection with, based upon, or relating to liabilities under the Securities
Act, the Exchange Act, or any other applicable securities or other laws, rules, or regulations in connection with (i) the
inaccuracy or breach of or default under any representation, warranty, covenant, or agreement in any Related Document, or any allegation
of inaccuracy, breach, or default; (ii) any untrue statement or 

 

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alleged untrue
statement of a material fact contained in any Related Document; or (iii) any omission or alleged omission to state in any
Related Document a material fact required to be stated in such Related Document or necessary to make the statements in such Related
Document not misleading. Notwithstanding the foregoing, the Indemnifying Parties shall not be obligated to indemnify such Indemnitee
from and against any such Obligation to the extent that such Obligation arises out of or is based upon (x) any representation,
warranty, covenant, or agreement of, or made by, an Indemnitee in any Related Document or (y) an untrue statement or omission
made in such Related Document in reliance upon and in conformity with written information furnished to the Indemnifying Parties,
as the case may be, in an instrument duly executed by such Indemnitee and specifically stating that it is for use in the preparation
of such Related Document;

 

(ii)         with
respect to Indemnitees that are the holders of any Voting Proxies, from and against any and all Obligations, whether incurred with
respect to third parties or otherwise, in any way resulting from, arising out of or in connection with, based upon, or relating
to the exercise by such Indemnitee of its rights to vote the Voting Securities, except where a court of competent jurisdiction
has rendered a final determination that the Obligations were incurred by reason of such Indemnitees’ fraud or willful misconduct;

 

(iii)        to
the fullest extent permitted by the law of the place of organization of an Indemnifying Party, or by any other applicable law in
effect as of the date of this Agreement or as amended to increase the scope of permitted indemnification, whichever is greater
(except, with respect to any Indemnifying Party, to the extent that such indemnification may be prohibited by the law of the place
of incorporation of such Indemnifying Party), from and against any and all Obligations whether incurred with respect to third parties
or otherwise, in any way resulting from, arising out of or in connection with, based upon or relating to (A) the fact that
such Indemnitee is or was a director or an officer of the Company or any of its Subsidiaries or is or was serving at the request
of such entity as a director, officer, member, employee, or agent of, or adviser or consultant to another corporation, partnership,
joint venture, trust, or other enterprise; (B) any breach or alleged breach by such Indemnitee of his or her fiduciary duty
as a shareholder (direct or indirect), a director, or an officer of the Company or any of its Subsidiaries; or (C) any payment
by any of the Investors or any Excluded Person to an Indemnitee with respect to the Obligations referred to in this Section 2(a)(iii),
in each case except where a court of competent jurisdiction has rendered a final determination that the Obligations were incurred
by reason of such Indemnitees’ fraud or willful misconduct;

 

in each case including, but not limited to,
any and all reasonable and reasonably documented fees, costs, and Expenses (including reasonable and reasonably documented fees
and disbursements of attorneys and other professional advisers) incurred by or on behalf of any Indemnitee in asserting, exercising,
or enforcing any of its rights, powers, privileges, or remedies in respect of this Agreement.

 

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(b)        Without
limiting the foregoing, in the event that any Proceeding is initiated by an Indemnitee or the Company or any of its Subsidiaries
to enforce or interpret this Agreement or any rights of such Indemnitee to indemnification or advancement of Expenses (or related
obligations of such Indemnitee) under the Company’s memorandum of association or bye-laws or any Subsidiary of the Company’s
certificate of incorporation or by-laws or similar organizational documents, any other agreement to which such Indemnitee and the
Company or any of its Subsidiaries are party, any vote of the directors of the Company or any of its Subsidiaries, any applicable
law, or any liability insurance policy, the Indemnifying Parties shall indemnify such Indemnitee against all costs and Expenses
incurred by such Indemnitee or on such Indemnitee’s behalf (including by any managing member of or adviser to such Indemnitee)
in connection with such Proceeding, whether or not such Indemnitee is successful in such Proceeding, except to the extent that
the Person presiding over such Proceeding determines that (i) material assertions made by such Indemnitee in such proceeding
were in bad faith or were frivolous or (ii) as a matter of applicable law, such Expenses must be limited in proportion to
the success achieved by such Indemnitee in such Proceeding and the efforts required to obtain that success, as determined by such
presiding Person.

 

3.          Contribution.

 

(a)        If
for any reason the indemnity provided for in Section 2(a) above is unavailable or is insufficient to hold harmless any Indemnitee
from any of the Obligations covered by such indemnity, then the Indemnifying Parties, jointly and severally, shall contribute to
the amount paid or payable by such Indemnitee as a result of such Obligation in such proportion as is appropriate to reflect (i)
the relative fault of each of the Company and its Subsidiaries, on the one hand, and such Indemnitee, on the other, in connection
with the state of facts giving rise to such Obligation; (ii) if such Obligation results from, arises out of, is based upon
or relates to the Transactions or any Offering, the relative benefits received by each of the Company and its Subsidiaries, on
the one hand, and such Indemnitee, on the other, from such Transaction or Offering; and (iii) if required by applicable
law, any other relevant equitable considerations.

 

(b)          For
purposes of Section 3(a) above, the relative fault of each of the Company and its Subsidiaries, on the one hand, and of an Indemnitee,
on the other, shall be determined by reference to, among other things, their respective relative intent, knowledge, access to information
(including whether such information was supplied by the Company and its Subsidiaries, on the one hand, or by such Indemnitee, on
the other), opportunity to correct the state of facts giving rise to such Obligation, and applicable law. For purposes of Section
3(a) above, the relative benefits received by each of the Company and its Subsidiaries, on the one hand, and an Indemnitee, on
the other, shall be determined by weighing the direct monetary proceeds to the Company and its Subsidiaries, on the one hand, and
such Indemnitee, on the other, from such Transaction or Offering.

 

(c)        The
parties to this Agreement acknowledge and agree that it would not be just and equitable if contributions pursuant to Section 3(a)
above were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable
considerations referred to in such Section. No Indemnifying Party shall be liable under Section

 

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3(a) above, as applicable,
for contribution to the amount paid or payable by any Indemnitee except to the extent and under such circumstances such Indemnifying
Party would have been liable to indemnify, defend, and hold harmless such Indemnitee under the Section 2(a) above if such indemnity
were enforceable under applicable law. No Indemnitee shall be entitled to contribution from any Indemnifying Party with respect
to any Obligation covered by the indemnity specifically provided for in Section 2(a) above in the event that such Indemnitee is
finally determined to be guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in
connection with such Obligation and such Indemnifying Party is not guilty of such fraudulent misrepresentation. For the avoidance
of doubt, no Indemnifying Party shall be liable for contribution pursuant to Section 3(a) above with respect to any Obligation
to the extent such Obligation would not be indemnifiable under this Agreement.

 

4.          Indemnification
Procedures.

 

(a)               
Whenever any Indemnitee shall have actual knowledge of the assertion of a Claim against it,
such Indemnitee shall notify the Company or its appropriate Subsidiary in writing of the Claim (the “Notice of Claim”)
with reasonable promptness after such Indemnitee has such knowledge relating to such Claim; provided that the failure or
delay of such Indemnitee to give such Notice of Claim shall not relieve any Indemnifying Party of its indemnification obligations
under this Agreement except to the extent that such omission results in a failure of actual notice to it and it is materially injured
as a result of the failure to give such Notice of Claim. The Notice of Claim shall specify all material facts known to such Indemnitee
relating to such Claim and the monetary amount or an estimate of the monetary amount of the Obligation involved if such Indemnitee
has knowledge of such amount or a reasonable basis for making such an estimate. The Indemnifying Parties shall, at their expense,
undertake the defense of such Claim with attorneys of their own choosing reasonably satisfactory in all respects to such Indemnitee,
subject to the right of such Indemnitee to undertake such defense as provided below. An Indemnitee may participate in such defense
with counsel of such Indemnitee’s choosing at the expense of the Indemnifying Parties. In the event that the Indemnifying
Parties do not undertake the defense of the Claim within a reasonable time after such Indemnitee has given the Notice of Claim,
or in the event that such Indemnitee shall in good faith determine that the defense of any Claim by the Indemnifying Parties is
inadequate or may conflict with the interest of any Indemnitee (including Claims brought by or on behalf of the Company or its
Subsidiaries), such Indemnitee may, at the expense of the Indemnifying Parties and after giving notice to the Indemnifying Parties
of such action, undertake the defense of the Claim and, subject to the prior written consent of the Indemnifying Parties in the
case of any compromise or settlement that requires the payment in respect of the Claim of any amount indemnifiable under this Agreement,
such consent not to be unreasonably withheld or delayed, compromise or settle the Claim, all for the account of and at the risk
of the Indemnifying Parties. In the defense of any Claim against an Indemnitee, no Indemnifying Party shall, except with the prior
written consent of such Indemnitee, consent to entry of any judgment or enter into any settlement that includes any injunctive
or other non-monetary relief or any payment of money by such Indemnitee, or that does not include as an unconditional term of such
judgment or settlement the giving by the Person or Persons asserting such Claim to such Indemnitee of an unconditional release
from all liability on any of the matters that are the subject of such Claim and an acknowledgement that such Indemnitee denies
all wrongdoing in connection with such matters. Notwithstanding anything to the contrary contained in this Agreement, the Indemnifying
Parties shall not be obligated to indemnify Indemnitee against 

 

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amounts paid in settlement
of a Claim if such settlement is effected by such Indemnitee without the prior written consent of the Company (on behalf of all
Indemnifying Parties), which shall not be unreasonably withheld or delayed. In each case, each Indemnitee seeking indemnification
hereunder will cooperate with the Indemnifying Parties, so long as an Indemnifying Party is conducting the defense of the Claim,
in the preparation for and the prosecution of the defense of such Claim, including making available evidence within the control
of such Indemnitee, as the case may be, and persons needed as witnesses who are employed by such Indemnitee, as the case may be,
in each case as reasonably needed for such defense and at cost, which cost, to the extent reasonably incurred, shall be paid by
the Indemnifying Parties.

 

(b)        An
Indemnitee shall notify the Indemnifying Parties in writing of the amount requested for advances (“Notice of Advances”).
Each of the Indemnifying Parties, jointly and severally, agrees to advance all Expenses incurred by any Indemnitee in connection
with any Claim (but not for any Claim initiated or brought voluntarily by an Indemnitee other than a Proceeding pursuant to Section
2(b) above) in advance of the final disposition of such Claim without regard to whether such Indemnitee will ultimately be entitled
to be indemnified for such Expenses upon receipt of an undertaking by or on behalf of such Indemnitee to repay amounts so advanced
if it shall ultimately be determined in a decision of a court of competent jurisdiction from which no appeal can be taken that
such Indemnitee is not entitled to be indemnified by the Indemnifying Parties as authorized by this Agreement. Such repayment undertaking
shall be unsecured and shall not bear interest. No Indemnifying Party shall impose on any Indemnitee additional conditions to advancement
or require from such Indemnitee additional undertakings regarding repayment. The Indemnifying Parties shall make payment of such
advances no later than ten days after the receipt of the Notice of Advances.

 

(c)        An
Indemnitee shall notify the Indemnifying Parties in writing of the amount of any Claim actually paid by such Indemnitee (the “Notice
of Payment”). The amount of any Claim actually paid by such Indemnitee shall bear simple interest at the rate equal to
the HSBC Bank USA, N.A. prime rate as of the date of such payment plus 2 percent per annum, from the date the Indemnifying Parties
receive the Notice of Payment to the date on which any Indemnifying Party shall repay the amount of such Claim plus interest on
such Claim to such Indemnitee. The Indemnifying Parties shall make indemnification payments to such Indemnitee no later than 30
days after receipt of the Notice of Payment.

 

(d)        Determination.
The Company and its Subsidiaries intend that an Indemnitee shall be indemnified to the fullest extent permitted by law as provided
in Section 2 above and that no Determination shall be required in connection with such indemnification. In no event shall a Determination
be required in connection with (i) indemnification of any Indemnitee other than a director or officer of the Company or
its Subsidiaries in connection with a Claim against such Indemnitee acting in such capacity (and then, only to the extent required
by applicable law), (ii) advancement of Expenses pursuant to Section 4(b) above, (iii) indemnification for Expenses
incurred as a witness, or (iv) any Claim or portion of a Claim with respect to which an Indemnitee has been successful
on the merits or otherwise. Any decision that a Determination is required by law in connection with any other indemnification of
an Indemnitee, and any such Determination, shall be made within 30 days after receipt of a Notice of Claim, as follows:

 

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(i)          if
no Extraordinary Transaction has occurred, (x) by a majority vote of the directors of the Indemnifying Parties who are not
parties to such Claim, even though less than a quorum, or (y) by a committee of such directors designated by majority vote
of such directors, even though less than a quorum, or (z) if there are no such directors, or if such directors so direct,
by Independent Legal Counsel in a written opinion to the Indemnifying Party and such Indemnitee; and

 

(ii)         if
an Extraordinary Transaction has occurred, by Independent Legal Counsel in a written opinion to the Indemnifying Parties (or their
successors) and such Indemnitee.

 

The Indemnifying Parties shall pay all expenses incurred by an Indemnitee
in connection with a Determination.

 

(e)        Independent
Legal Counsel. If there has not been an Extraordinary Transaction, Independent Legal Counsel shall be selected by the board
of directors of the Company and approved by the Indemnitee (which approval shall not be unreasonably withheld or delayed). If there
has been an Extraordinary Transaction, Independent Legal Counsel shall be selected by the Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld or delayed). The Indemnifying Parties shall pay the reasonable and reasonably
documented fees and expenses of Independent Legal Counsel and indemnify Independent Legal Counsel against any and all Expenses,
claims, liabilities, and damages arising out of or relating to its engagement.

 

(f)         Consequences
of Determination; Remedies of Indemnitee. The Indemnifying Parties shall be bound by and shall have no right to challenge a
Favorable Determination. If an Adverse Determination is made, or if for any other reason any Indemnifying Party does not make timely
indemnification payments or advances of expenses, Indemnitee shall have the right to commence a Proceeding before a court of competent
jurisdiction to challenge such Adverse Determination and/or to require such Indemnifying Party to make such payments or advances.
An Indemnitee shall be entitled to be indemnified for all Expenses incurred in connection with such a Proceeding in accordance
with Section 2 above and to have such Expenses advanced by the Company in accordance with Section 4(b) above. If an Indemnitee
fails to timely challenge an Adverse Determination, or if an Indemnitee challenges an Adverse Determination and such Adverse Determination
has been upheld by a final judgment of a court of competent jurisdiction from which no appeal can be taken, then, to the extent
and only to the extent required by such Adverse Determination or final judgment, no Indemnifying Party shall be obligated to indemnify
or advance expenses to such Indemnitee under this Agreement.

 

(g)        Presumptions;
Burden and Standard of Proof. In connection with any Determination, or any review of any Determination, by any person, including
a court:

 

(i)          It
shall be a presumption that a Determination is not required.

 

 (ii)        The burden of proof shall be on the Indemnifying Parties to overcome the presumption set forth in the preceding clause (i), and such 

 

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presumption shall
only be overcome if the Indemnifying Parties establish that there is no reasonable basis to support it.

 

(iii)        The
termination of any Proceeding by judgment, order, finding, settlement (whether with or without court approval), or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that indemnification is not proper
or that an Indemnitee did not meet the applicable standard of conduct or that a court has determined that indemnification is not
permitted by this Agreement or otherwise.

 

(iv)        Neither
the failure of any person or persons to have made a Determination nor an Adverse Determination by any person or persons shall be
a defense to an Indemnitee’s claim or create a presumption that an Indemnitee did not meet the applicable standard of conduct,
and any Proceeding commenced by an Indemnitee pursuant to Section 4(f)above shall be de novo with respect to all determinations
of fact and law.

 

5.          Certain
Covenants. The rights of each Indemnitee to be indemnified under any other agreement, document, certificate, or instrument
or applicable law are independent of and in addition to any rights of such Indemnitee to be indemnified under this Agreement, provided
that to the extent that an Indemnitee is entitled to be indemnified by the Indemnifying Parties under this Agreement and by any
other Indemnitee under any other agreement, document, certificate, or instrument, the obligations of the Indemnifying Parties hereunder
shall be primary, and the obligations of such other Indemnitee secondary, and the Indemnifying Parties shall not be entitled to
contribution or indemnification from or subrogation against such other Indemnitee. Notwithstanding the foregoing, any Indemnitee
may choose to seek indemnification from any potential source of indemnification regardless of whether such indemnitor is primary
or secondary. An Indemnitee’s election to seek advancement of indemnified sums from any secondary indemnifying party will
not limit the right of such Indemnitee, or any secondary indemnitor proceeding under subrogation rights or otherwise, from seeking
indemnification from the Indemnifying Parties to the extent that the obligations of the Indemnifying Parties are primary. The rights
of each Indemnitee and the obligations of the Indemnifying Parties under this Agreement shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnitee. Following the Transactions, each of the Company and its Subsidiaries,
and each of their corporate successors, shall implement and maintain in full force and effect any and all provisions in their certificate
of incorporation, memorandum of association, bye-laws, or similar organizational documents that may be necessary or appropriate
to enable such Company or Subsidiary of the Company (or successor to the Company or Subsidiary of the Company) to carry out its
obligations under this Agreement to the fullest extent permitted by applicable law, including a provision of its certificate of
incorporation (or comparable organizational document under its jurisdiction of incorporation) eliminating liability of a director
for breach of fiduciary duty to the fullest extent permitted by applicable law, as amended from time to time. So long as the Company
or any of its Subsidiaries maintains liability insurance for any directors, officers, employees, or agents of any such Person,
the Indemnifying Parties shall ensure that each Indemnitee serving in such capacity is covered by such insurance in such a manner
as to provide such Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s
and its Subsidiaries’ then current directors and officers.

 

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6.          Notices.
All notices and other communications under this Agreement shall be in writing and shall be deemed duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt; (b) on the first Business Day following
the date of dispatch if delivered by a recognized next-day courier service; or (c) on the third Business Day following the date of mailing
if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices under this Agreement shall
be delivered to the addresses set forth on the attached Annex A to this Agreement, or pursuant to such other instructions as may
be designated in writing by the party to receive such notice.

 

7.          Governing
Law; Jurisdiction; Waiver of Jury Trial. All disputes, claims, or controversies arising out of or relating to this Agreement,
or the negotiation, validity, or performance of this Agreement, or the transactions contemplated by this Agreement shall be governed
by and construed in accordance with the laws of the State of New York. In any action or proceeding between any of the parties arising
out of or relating to this Agreement or any of the transactions contemplated by this Agreement, each of the parties to this Agreement:
(a) irrevocably and unconditionally consents and submits, for itself and its property, to the exclusive jurisdiction and
venue of the courts of the State of New York or the United States District Court, in each case located in the Borough of Manhattan
in New York City; (b) agrees that all claims in respect of such action or proceeding must be commenced, and may be heard
and determined, exclusively in the courts of the State of New York or the United States District Court, in each case located in
the Borough of Manhattan in New York City; (c) waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any such action or proceeding in the courts of the State of New York
or the United States District Court, in each case located in the Borough of Manhattan in New York City; and (d) waives,
to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
the courts of the State of New York or the United States District Court, in each case located in the Borough of Manhattan in New
York City. Each party to this Agreement agrees that a final judgment in any such action or proceeding may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) 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, (II)
EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY,
AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 7. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
NONE OF THE INVESTORS, INDEMNITEES, OR ANY EXCLUDED PERSON SHALL BE LIABLE TO

 

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THE COMPANY, JAMES RIVER,
OR TO ANY OTHER PERSON MAKING CLAIMS ON BEHALF OF THE FOREGOING FOR CONSEQUENTIAL, EXEMPLARY, PUNITIVE, INCIDENTAL, INDIRECT, OR
SPECIAL DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, LOSS OF USE OR REVENUE, OR LOSSES BY REASON OF COST OF CAPITAL, ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHETHER BASED ON CONTRACT, TORT (INCLUDING
NEGLIGENCE), STRICT LIABILITY, VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT OR SIMILAR LAW, OR ANY OTHER LEGAL OR
EQUITABLE DUTY OR PRINCIPLE, AND THE COMPANY AND JAMES RIVER RELEASE EACH SUCH PERSON FROM LIABILITY FOR ANY SUCH DAMAGES.

 

8.          Severability.
If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any Law or public policy,
all other terms and provisions of this Agreement shall nevertheless remain in full force and effect. Notwithstanding the foregoing,
upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the agreements set forth in this Agreement are adhered to as originally contemplated to the greatest
extent possible.

 

9.          Successors;
Binding Effect. Each Indemnifying Party will require any successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization, or otherwise) to all or substantially all of the business and assets of such Indemnifying Party, by agreement in
form and substance satisfactory to each of the Investors and their counsel, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that such Indemnifying Party would be required to perform if no such succession had taken
place. This Agreement shall be binding upon and inure to the benefit of each party to this Agreement and its successors and permitted
assigns, and each other Indemnitee. The Investors may assign this Agreement or any of their rights, interests, and obligations
under this Agreement to any Person or Persons to whom they transfer all or a portion of their Equity Securities in accordance with
the terms and conditions of the Shareholders Agreement, but neither this Agreement nor any right, interest, or obligation under
this Agreement shall be assigned, whether by operation of law or otherwise, by the Company without the prior written consent of
each of the Investors.

 

10.        Miscellaneous.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. Except where expressly specified to the contrary, whenever the words “include,” “includes,”
or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”
This Agreement is not intended to confer any legal or equitable right, remedy, or claim under or with respect to this Agreement
or any provision of this Agreement upon any Person other than each of the parties hereto and their respective successors and permitted
assigns and each other Indemnitee. No amendment, modification, supplement, or discharge of this Agreement, and no waiver under
this Agreement shall be valid and binding unless set forth in writing and duly executed by the party or other Indemnitee against
whom enforcement of the amendment, modification, supplement, or discharge is sought. Neither the waiver by any of the parties to
this Agreement or any other Indemnitee of a breach of or a default

 

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under any of the provisions
of this Agreement, nor the failure by any party to this Agreement or any other Indemnitee on one or more occasions, to enforce
any of the provisions of this Agreement or to exercise any right, powers, or privilege under this Agreement, shall be construed
as a waiver of any other breach or default of a similar nature, or as a waiver of any provisions of this Agreement, or any rights,
powers, or privileges under this Agreement. The rights, indemnities, and remedies provided in this Agreement are cumulative and
are not exclusive of any rights, indemnities, or remedies that any party or other Indemnitee may otherwise have by contract, at
law or in equity, or otherwise. This Agreement may be executed in any number of counterparts, including by facsimile, each of which
shall be an original, but all of which together shall constitute one and the same instrument.

 

[The remainder of this page has been left
blank intentionally; signature pages follow.]

 

    	15

    	 

    

  

IN WITNESS WHEREOF, the parties to this Agreement have duly executed
this Agreement by their authorized representatives as of the date first above written.

 

		FRANKLIN HOLDINGS (BERMUDA), LTD.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Indemnification Agreement]

 

    	 

    	 

    

 

	 	JAMES RIVER GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Indemnification Agreement]

 

    	 

    	 

    

  

[●]

 

	 	By:	 
	 	 	Name:
	 	 	Title: Authorized Signatory

 

[Signature Page to Indemnification Agreement]

  

    	 

    	 

    

  

Annex A

Notice Addresses

 

If to the Company to:

 

Franklin Holdings (Bermuda), Ltd.

Clarendon House

2 Church Street

Hamilton HM 11 Bermuda

Attention: Charles Collis, Esq.

Telephone: (441) 295-1422

Facsimile: (441) 292-4720

 

D. E. Shaw Oculus Portfolios, L.L.C., D. E. Shaw CH-SP Franklin,
L.L.C., and

D. E. Shaw CF-SP Franklin, L.L.C.

Tower 45, 39th Floor

120 West 45th Street

New York, NY 10036

Attention: Andrew Lindholm, Esq.

Telephone: (212) 478-0000

Facsimile: (212) 478-0100

 

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

 

Debevoise & Plimpton LLP

919 Third Avenue

New York, NY 10022

Attention: Andrew L. Sommer, Esq.

Telephone: (212) 909-6000

Facsimile: (212) 909-6836

 

If to any Subsidiary of the Company to:

 

James River Group, Inc.

300 Meadowmont Village Circle

Suite 333

Chapel Hill, NC 27517

Attention: J. Adam Abram

Telephone: (919) 883-4171

Facsimile: (919) 883-4177

 

    	 

    	 

    

  

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

 

D. E. Shaw & Co., L.L.C.

Tower 45, 39th Floor

120 West 45th Street

New York, NY 10036

Attention: Andrew Lindholm, Esq.

Telephone: (212) 478-0000

Facsimile: (212) 478-0100

 

If to the Investors to:

 

[●]

 

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

 

[●]

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