Document:

Exhibit 10.1

 

CONFIDENTIAL TREATMENT REQUESTED FOR
PORTIONS OF THIS DOCUMENT. PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED HAVE BEEN MARKED WITH THREE ASTERISKS
[***] AND A FOOTNOTE INDICATING “CONFIDENTIAL TREATMENT REQUESTED”. MATERIAL OMITTED HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

QUOTA SHARE RETROCESSION AGREEMENT

 

by and between

 

IRIS REINSURANCE LTD. acting
in respect of its segregated account designated AS “KWQS”

 

(the “Company”)

 

and

 

IIS Re Ltd.

 

(as Reinsurer)

 

Dated October 26, 2017

 

     

    

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I CESSION AND REINSURANCE	2
	 	 
	ARTICLE II
    TERM AND TERMINATION	3
	 	 
	ARTICLE III
    REINSURANCE LIMITS	3
	 	 
	ARTICLE IV
    EXCLUSIONS	4
	 	 
	ARTICLE V
    COLLATERAL	4
	 	 
	ARTICLE VI
    LIMITED RECOURSE AND BERMUDA REGULATIONS	5
	 	 
	ARTICLE VII
    FOLLOW THE FORTUNES	5
	 	 
	ARTICLE VIII
    COMMISSION AND OTHER DEDUCTIONS	5
	 	 
	ARTICLE IX
    REPORTS AND REMITTANCES	6
	 	 
	ARTICLE X
    ACCESS TO RECORDS	6
	 	 
	ARTICLE XI
    ERRORS AND OMISSIONS	7
	 	 
	ARTICLE XII
    MEDIATION; ARBITRATION	7
	 	 
	ARTICLE XIII
    CONFIDENTIALITY	9
	 	 
	ARTICLE XIV
    NOTICES	10
	 	 
	ARTICLE XV
    REPRESENTATIONS, WARRANTIES AND COVENANTS	11
	 	 
	ARTICLE XVI
    CURRENCY	13
	 	 
	ARTICLE XVII
    MISCELLANEOUS PROVISIONS	13

 

     

    

    

 

QUOTA SHARE RETROCESSION AGREEMENT

 

This QUOTA SHARE RETROCESSION
AGREEMENT (this “Reinsurance Agreement”), dated as of October 26, 2017 (the “Closing Date”),
and to become effective as of the Effective Date (defined below), is made and entered into by and between Iris Reinsurance Ltd.
(“Iris Re”), a Bermuda exempted company licensed as Class 3 insurer under the Insurance Act 1978 of Bermuda,
as amended, and registered as a segregated accounts company under the Bermuda Segregated Accounts Companies Act 2000, as amended
(the “SAC Act”), acting in respect of its segregated account designated as “KWQS” (the “Company”),
and IIS Re Ltd. (the “Reinsurer”), a Bermuda exempted company incorporated under the laws of Bermuda, and to
be licensed as a special purpose insurance company by the Bermuda Monetary Authority (the “BMA”).

 

WITNESSETH:

 

WHEREAS, the Company
has entered into, and may enter into in the future during the term of this Reinsurance Agreement, certain industry loss warranties,
derivative contracts, reinsurance contracts, treaties and/or agreements (collectively, the “Underlying Reinsurance Agreements”)
with various contract counterparties and ceding companies (each of which that is currently in force is specifically identified
on Schedule A attached hereto (including, without limitation, anticipated premiums and aggregate limits of liability), whereby
the Reinsurer has and/or will assume and reinsure risks and liabilities through a segregated account of the Company;

 

WHEREAS, subject to
the terms, conditions and limitations of this Reinsurance Agreement, the Company desires to cede to the Reinsurer, and the Reinsurer
desires to accept and assume, a quota share of such risks and liabilities arising out of the Underlying Reinsurance Agreements;

 

WHEREAS, the retrocessional
coverage provided hereunder will be effected through a fully collateralized reinsurance structure;

 

WHEREAS, Iris Re established
the Company for the sole and exclusive purpose of effectuating the transactions contemplated by the Underlying Reinsurance Agreements
and this Reinsurance Agreement, and the Company shall have no liabilities to any other person or entity other than to the various
contract counterparties and ceding companies pursuant to the Underlying Reinsurance Agreements and the Reinsurer hereunder;

 

WHEREAS, the Reinsurer
will establish one or more physically and legally segregated trust accounts (the “Trust Account”) with a financial
institution mutually agreeable to the parties for the custody, maintenance and administration of the collateral provided by the
Reinsurer hereunder;

 

WHEREAS, the parties
acknowledge and agree that the intent of this Reinsurance Agreement is to transfer risk on Underlying Reinsurance Agreements that
cover risks and liabilities on an industry loss and/or parametric basis, and that the assumption and reinsurance of any indemnity-based
or other coverage by the Reinsurer will be at the sole discretion of the Reinsurer;

 

     

    

    

 

WHEREAS, the parties
acknowledge and agree that any and all coverage of losses (collectively, the “Excluded CAT Losses”) that cover,
whether directly or indirectly, losses, risks and/or liabilities that were incurred, sustained, suffered or incurred in any way,
whether directly or indirectly prior to the Effective Date (defined below), including, without limitation, those losses covered
under Underlying Reinsurance Agreements caused by, related to or otherwise connected with certain natural catastrophes designated
by the World Meteorological Organization as “Hurricane Harvey” (including the collateral and supplemental damage created
thereby) and “Hurricane Irma” (including the collateral and supplemental damage created thereby) shall be expressly
excluded from the retrocessional coverage provided by the Reinsurer hereunder; and

 

WHEREAS, the
Company and the Reinsurer desire to set forth their respective rights and obligations in relation to the cession of liabilities
by the Company to the Reinsurer hereunder.

 

NOW, THEREFORE, for
and in consideration of the recitals and the promises and the mutual agreements hereinafter set forth, the parties hereto agree
as follows:

 

ARTICLE
I

 

CESSION
AND REINSURANCE

 

		1.1	Reinsurer Obligations. The Company hereby cedes to the Reinsurer, and the Reinsurer hereby
accepts, reinsures and assumes, in each case, pursuant to the terms, conditions, limits and exclusions of this Reinsurance Agreement,
the quota share percentage (as set forth on Annex A, the “Quota Share”) of the Company’s liabilities
and obligations arising under the Underlying Reinsurance Agreements, exclusive of the premiums earned and losses incurred prior
to the Effective Date from the Underlying Reinsurance Agreements, subject to the terms, conditions, limits and exclusions thereunder
(the “Reinsurer Obligations”) during the term of this Reinsurance Agreement. The Quota Share will be variable
and recalculated on a monthly basis. At any time during the term of this Reinsurance Agreement, the aggregate of all Reinsurer
Obligations attributable to the Company’s obligation to pay losses shall not, under any circumstances, exceed the Collateral
Amount (defined below).

 

		1.2	Amendment of Underlying Reinsurance Agreements. The Company shall not amend, restate, modify
or supplement any of the Underlying Reinsurance Agreements to the extent that any such amendment, restatement, modification or
supplement could reasonably be expected to materially and adversely affect the Reinsurer in a manner disproportionately disadvantageous
to the Reinsurer relative to the impact to the Company of such amendment, restatement, modification or supplement hereunder without
the prior written consent of the Reinsurer (which consent shall not be unreasonably withheld, conditioned or delayed).

 

    	 	2	 

    

    

  

ARTICLE
II

 

TERM
AND TERMINATION

 

		2.1	Term. This Reinsurance Agreement shall remain in full force and effect from and including
the Effective Date through and including the scheduled termination date of December 31, 2020 (unless otherwise terminated pursuant
to Section 2.2. For the purposes of this Reinsurance Agreement, the “Effective Date” shall mean the first
(1st) Business Day following the satisfaction of the latest to occur of the following conditions precedent: (i) the closing of
the initial public offering (the “IPO”) of Insurance Income Strategies Ltd., a Bermuda reinsurance holding company
and ultimate parent corporation of the Reinsurer; (ii) the licensing and qualification of the Reinsurer as a “Special Purpose
Insurer” by the BMA under the laws and regulations of Bermuda; and (iii) the funding of the Trust Account (as discussed below).
For the avoidance of doubt, until the foregoing conditions precedent are satisfied, this Reinsurance Agreement shall not become
effective and the rights and obligations established hereby shall be of no force or effect.

 

		2.2	Termination. This Reinsurance Agreement shall terminate upon the earlier of (i) December
31, 2020 or (ii) the date specified in a mutual written agreement executed by the parties. Such termination shall be effected through
a commutation of this Reinsurance Agreement and the rights and obligations of the parties hereunder. In consideration of the execution
of a mutually agreed commutation agreement and the payment of a commutation amount mutually agreed to in good faith by the parties,
the Reinsurer and the Company shall be released, without the need for the execution or delivery of any other documents, from all
obligations and liabilities under this Reinsurance Agreement.

 

		2.3	Effect of Termination. In the event of the termination of this Reinsurance Agreement, the
Reinsurer shall remain liable as of the date of termination with respect to its Reinsurer Obligations for each of the Underlying
Reinsurance Agreements of the Company in force prior to the termination of this Reinsurance Agreement until the natural expiration
date and final disposition of all of the Company’s obligations and liabilities under such Underlying Reinsurance Agreements.

 

ARTICLE
III

 

REINSURANCE
LIMITS

 

		3.1	Aggregate Limit. The Reinsurer shall indemnify, reimburse and hold harmless the Company
for its Quota Share of losses under the Underlying Reinsurance Agreements (subject to the terms, conditions, exclusions and limits
of such Underlying Reinsurance Agreements), subject at all times to an aggregate maximum exposure equal to the Collateral Amount
(defined below), which shall be at all times, and from time to time, the Reinsurer’s aggregate limit under this Reinsurance
Agreement.

 

    	 	3	 

    

    

 

 

		3.2	Limited
                                         Recourse applies. It is understood and agreed that the provisions of Article V, Limited
                                         Recourse and Bermuda Regulation, shall override the provision of this Article II as regards
                                         to the maximum liability of the Reinsurer.

 

ARTICLE
IV

 

EXCLUSIONS

 

		4.1	This Reinsurance Agreement shall be subject to the terms, conditions and exclusions contained in
the Underlying Reinsurance Agreements comprising the subject business reinsured hereunder. In addition, this Reinsurance Agreement
shall not cover, and shall expressly exclude: (i) Excluded CAT Losses and (ii) liabilities arising under any reinsurance contract,
agreement, treaty and/or other arrangement between the Company and any ceding company other than an industry loss warranty and/or
parametric reinsurance agreement or derivative where loss is calculated on an indexed rather than actual basis, unless and to the
extent such alternative contract, agreement, treaty or other arrangement has been expressly accepted and assumed hereunder by the
Reinsurer in writing, (iii) Extra-Contractual Obligations (defined below) and (iv) Ex Gratia Payments (defined below). For the
purposes of this Reinsurance Agreement, “Extra-Contractual Obligations” shall mean those liabilities not covered
under any other provision of this Reinsurance Agreement which arise under the Underlying Reinsurance Agreements as a result of
the negligent or fraudulent mishandling of any claim by the Company thereunder, actual negligence by the Company related to any
loss payments on the Underlying Reinsurance Agreements, the negligent or fraudulent rejection or settlement of any disputed claim
thereunder and/or any payments made in excess of the amounts actually owing under the terms and conditions of such Underlying Reinsurance
Agreements. “Ex-Gratia Payment” shall mean any payment, concession or accommodation made by the Company to a
ceding company that the Company would not otherwise be obligated to make under the terms and conditions of an Underlying Reinsurance
Agreement.

 

ARTICLE
V

 

COLLATERAL

 

		5.1	Collateral. On or prior to the Effective Date, the Reinsurer shall deposit, transfer or
otherwise deliver to the Trust Account funds, securities and/or other assets, free and clear of any liens, security interests or
other encumbrances, with a fair market value in an amount to equal to the Reinsurer Obligations in respect of the Company’s
then outstanding obligations under the Underlying Reinsurance Agreements then in effect. Thereafter, all payments of Premium (as
defined in Article VI) by the Company to the Reinsurer shall be deposited, without set-off, into the Trust Account upon the termination
of this Reinsurance Agreement. At any time and from time to time the fair market value of the assets held in the Trust Account
shall be the “Collateral Amount”.

 

    	 	4	 

    

    

 

		5.2	Use of Collateral Amount. The Reinsurer acknowledges that the Company may withdraw from
the Trust Account and use the Collateral Amount to fund its obligations for the payment of the Reinsurer’s Quota Share under
the Underlying Reinsurance Agreements.

 

		5.3	Collateral Distributions. Upon the termination, expiration or commutation of this Reinsurance
Agreement, and the release of the Reinsurer as contemplated by Section 2.2 & 2.3, subject to the mutual agreement of
the parties contained in Section 2.2, the Reinsurer shall be entitled to receive any remaining Collateral Amount contained
in the Trust Account.

 

ARTICLE
VI

 

LIMITED
RECOURSE AND BERMUDA REGULATIONS

 

		6.1	The liability of the Reinsurer for the performance and discharge of all of its obligations, however
they may arise, in relation to this Reinsurance Agreement (together “Obligations” for purposes of this Article),
shall be limited to and payable solely from the proceeds of liquidation and realization of the assets of the Trust Account and
accordingly there shall be no recourse to any other assets of the Reinsurer, whether or not allocated to any other account of Reinsurer.
In the event that the proceeds of liquidation and realization of the assets of the Trust Assets are insufficient to meet all Obligations,
any Obligations remaining after the application of such proceeds shall be extinguished, and the parties hereto shall be released,
without the need for the execution or delivery of any other documents, from all obligations and liabilities under this Reinsurance
Agreement.

 

ARTICLE
VII

 

FOLLOW
THE FORTUNES

 

		7.1	All liabilities and obligations of
                                         the Company of any nature arising out of, relating to or otherwise arising under the
                                         terms of and within the limits of, the Underlying Reinsurance Agreements that are binding
                                         on the Company pursuant to the Underlying Reinsurance Agreements shall be binding upon
                                         the Reinsurer, the intent of this Reinsurance Agreement being that, subject to Section
                                         1.2 and the other terms, conditions and limitations of this Reinsurance Agreement,
                                         the Reinsurer shall in every case “follow the fortunes” of the Company in
                                         respect of the risks and obligations the Company has accepted under the Underlying Reinsurance
                                         Agreements.

 

ARTICLE
VIII

 

COMMISSION
AND OTHER DEDUCTIONS

 

		8.1	As consideration for the reinsurance
                                         coverage hereunder, the Company shall pay to the Reinsurer the Quota Share of all reinsurance
                                         premiums received by the Company under the terms of the Underlying Reinsurance Agreements
                                         (collectively with all investment income, dividends and other amounts earned on or distributed
                                         in respect of assets in the Trust Account and, without duplication, the earned on or
                                         distributed in respect of the portion of assets in any other trust account established
                                         by the Company or Iris Re allocable to the Collateral Amount provided by Reinsurer, “Premium”).
                                         Premium under this Reinsurance Agreement shall be paid by the Company upon termination
                                         to the Trust Account upon the directions of the Reinsurer, and each and every Premium
                                         of the Underlying Reinsurance Agreements shall increase the Collateral Amount.

 

    	 	5	 

    

    

 

 

		8.2	Beginning December 31, 2018, the Reinsurer may elect on a quarterly basis to receive payment of
up to 100% of earned Premium with 60 calendar days prior notice. Payment of such amounts shall reduce the Collateral Amount.

 

		8.3	The Company shall charge the Reinsurer
                                         a ceding commission in an amount equal to [***]1%
                                         of the Collateral Amount paid by the Reinsurer (“Ceding Commission”)
                                         per annum if the Collateral Amount is $[***]2
                                         million or less, and [***]3%
                                         of the Collateral Amount if the Collateral Amount exceeds $[***]4
                                         million. The Ceding Commission is to be calculated on the basis of
                                         daily Collateral Amount outstanding and paid on a quarterly basis at the beginning of
                                         each quarter.

 

ARTICLE
IX

 

REPORTS
AND REMITTANCES

 

		9.1	The Company shall prepare and deliver to the Reinsurer periodic statements of account within
seven (7) Business Days following the close of each calendar month during the term of this Reinsurance Agreement, and the Company
shall deliver to the Reinsurer (i) updates with regards to the Underlying Reinsurance Agreements within ten (10) Business Days
following its receipt of any “calculation report” or other material document thereunder and (ii) any other notices,
reports, loss advices and similar material received by the Company in connection with the Underlying Reinsurance Agreements promptly
following receipt thereof by the Company.

 

ARTICLE
X

 

ACCESS
TO RECORDS

 

		10.1	The Reinsurer or its designated representatives shall have full access to the books and records
of the Company at all reasonable times for the purpose of obtaining information concerning this Reinsurance Agreement or the subject
matter hereof. Upon request of the Reinsurer, at the Reinsurer’s expense, the Company shall (a) supply the Reinsurer
with copies of the whole or any part of such books and records relating to this Reinsurance Agreement or the subject matter hereof
and (b) exercise its rights under the Underlying Reinsurance Agreements to review the books and records or seek additional information
with respect to the Underlying Reinsurance Agreements. Upon the occurrence and during the continuance of any default hereunder
by the Company, the Reinsurer’s rights to access the books and records of the Company shall be unlimited, and any inspection
of such books and records by the Reinsurer shall be at the sole cost and expense of the Company.

 

 

1
Confidential treatment requested.

2
Confidential treatment requested.

3
Confidential treatment requested.

4
Confidential treatment requested.

 

    	 	6	 

    

    

 

ARTICLE
XI

 

ERRORS
AND OMISSIONS

 

		11.1	Any inadvertent delays, errors or
                                         omissions made in connection with this Reinsurance Agreement or any transaction hereunder
                                         shall not relieve either party from any liability which would have attached hereunder
                                         had such delay, error or omission not occurred; provided, that such error or omission
                                         is rectified as soon as reasonably possible after discovery.

 

ARTICLE
XII

 

MEDIATION;
ARBITRATION

 

		12.1	Mediation. If a dispute between the Company and the Reinsurer, arising out of the provisions
of this Reinsurance Agreement or concerning its interpretation or validity and whether arising before or after termination of this
Reinsurance Agreement, has not been settled through negotiation, both parties agree to try in good faith to settle such dispute
by nonbinding mediation, before resorting to arbitration.

 

		12.2	Arbitration.

 

		(a)	Resolution of Disputes. As a condition precedent to any right of action arising hereunder,
any dispute not resolved by mediation between the Company and the Reinsurer arising out of the provisions of this Reinsurance Agreement
or concerning its interpretation or validity, whether arising before or after termination of this Reinsurance Agreement, shall
be submitted to arbitration in the manner hereinafter set forth.

 

		(b)	Composition of Panel. Unless the parties agree upon a single arbitrator within fifteen (15)
days after the receipt of a notice of intention to arbitrate, all disputes shall be submitted to an arbitration panel composed
of two arbitrators and an umpire chosen in accordance with Section 12.2(c).

 

    	 	7	 

    

    

 

		(c)	Appointment of Arbitrators. The members of the arbitration panel shall be chosen from disinterested
persons with at least ten (10) years’ experience in the insurance and reinsurance business. The party requesting arbitration
(hereinafter referred to as the “claimant”) shall appoint an arbitrator and give written notice thereof by certified
mail, to the other party (hereinafter referred to as the “respondent”) together with its notice of intention
to arbitrate. Within thirty (30) days after receiving such notice, unless a single arbitrator is agreed upon in accordance with
Section 12.2(b), the respondent shall also appoint an arbitrator and notify the claimant thereof by certified mail. The
parties agree that the arbitrator appointed by the parties need not be neutral. Before instituting a hearing, the two arbitrators
so appointed shall choose an umpire. If, within twenty (20) days after the appointment of the arbitrator chosen by the respondent,
the two arbitrators fail to agree upon the appointment of an umpire, each of them shall nominate three individuals to serve as
umpire, of whom the other shall decline two and the umpire shall be chosen from the remaining two by drawing lots. The name of
the individual first drawn shall be the umpire.

 

		(d)	Failure of Party to Appoint an Arbitrator. If the respondent fails to appoint an arbitrator
within thirty (30) days after receiving a notice of intention to arbitrate, the claimant’s arbitrator shall appoint an arbitrator
on behalf of the respondent, such arbitrator shall then, together with the claimant's arbitrator, choose an umpire as provided
in Section 12.2(c).

 

		(e)	Submission of Dispute to Panel. Within thirty (30) days after the notice of appointment
of all arbitrators, the panel shall meet, and determine a timely period for discovery, discovery procedures and schedules for hearings.

 

		(f)	Procedures Governing Arbitration. All proceedings before the panel shall be informal and
the panel shall not be bound by the formal rules of evidence. The panel shall have the power to fix all procedural rules relating
to the arbitration proceeding. In reaching any decision, the panel shall give due consideration to the customs and usages of the
insurance and reinsurance business.

 

		(g)	Arbitration Award. The arbitration panel shall render its decision within sixty (60) days
after termination of the proceeding, which decision shall be in writing, stating the reasons therefor. The decision of the majority
of the panel shall be final and binding on the parties to the proceeding. In no event, however, will the panel be authorized to
award punitive, exemplary or consequential damages of whatsoever nature.

 

		(h)	Cost of Arbitration. Unless otherwise allocated by the panel, each party shall bear the
expense of its own arbitrator and shall jointly and equally bear with the other parties the expense of the umpire and the arbitration.

 

    	 	8	 

    

    

 

ARTICLE
XIII

 

CONFIDENTIALITY

 

		13.1	Confidential Information. The information, data, statements and other materials provided
by Company or the Reinsurer to the other arising from participation in this Reinsurance Agreement constitute confidential or proprietary
information unless expressly indicated otherwise by the disclosing party (the “Disclosing Party”) in writing
from time to time to the other party (“Confidential Information”). Such Confidential Information is intended
for the sole use of the parties to this Reinsurance Agreement.

 

		13.2	Limits on Disclosure. Each of the parties hereto (as a receiving party, the “Receiving
Party”) agrees, on behalf of itself and its affiliates, agents and representatives, to hold and keep confidential, and
not to disclose to any third party (for the avoidance of doubt, “third party” as used herein shall not include any
affiliates, agents, representatives, reinsurers or retrocessionaires of, or investors in the Receiving Party), any Confidential
Information of the Disclosing Party that it receives or has access to concerning this Reinsurance Agreement or the subject matter
hereof (unless requested or required by relevant insurance regulatory authorities or otherwise compelled to do so by applicable
law); provided that this provision shall not apply to the extent that such Confidential Information was already in the public domain
at the time of disclosure other than as a result of a breach of this Agreement. The Reinsurer further agrees, on behalf of itself
and its affiliates, agents and representatives, that it shall not use any underwriting or related information received from the
Company, except for the sole purpose of analyzing the risks to be ceded to the Reinsurer hereunder or in the application of the
terms of this Reinsurance Agreement. The Receiving Party agrees to abide by any reasonable determination by the Disclosing Party
that any information provided to the Receiving Party constitutes confidential and proprietary information.

 

		13.3	Third-Party Demands for Access. Should a Receiving Party receive a third party demand
pursuant to subpoena, summons, or court or governmental order or request, to disclose Confidential Information that has been provided
by another party to this Reinsurance Agreement, the Receiving Party shall provide the Disclosing Party with written notice of any
subpoena, summons, or court or governmental order or request, promptly upon receipt of the demand and prior to disclosure of such
Confidential Information. Unless the Disclosing Party has given its prior permission to release or disclose the Confidential Information,
the Receiving Party shall not comply with the subpoena prior to the actual date required by the subpoena and, if the Disclosing
Party objects to the release of the Confidential Information, the Receiving Party will take reasonable steps to cooperate with
the Disclosing Party in its efforts to resist release of the Confidential Information. The Disclosing Party shall bear the cost
of resisting such release or disclosure. If a protective order or appropriate remedy is not obtained, the Receiving Party may disclose
only that portion of the Confidential Information that it has been advised by its counsel is legally required to be disclosed.

 

    	 	9	 

    

    

 

ARTICLE
XIV

 

NOTICES

 

Any notice or information to be given,
delivered or provided pursuant to this Reinsurance Agreement to either party shall be in writing and be deemed received, served,
delivered or provided if it is delivered (i) by hand, when delivered in person against written receipt, (ii) by recognized express
courier, when delivered by such service against written or electronic receipt or (iii) by facsimile transmission, on the date of
confirmation of transmission, on the date of transmission, to the following address, facsimile number or e-mail address:

 

		(a)	in the case of the Reinsurer, by giving, delivering or providing the original notice or information
at:

 

IIS Re Ltd.

The Boyle Building

2nd Floor

31 Queen Street

Hamilton HM 11

Bermuda

Attention: Tom Heise,
Chief Executive Officer

 

With a copy to:

 

with copy to:

 

Marsh Management Services
(Bermuda) LTD

Power House

7 Par La Ville Road

Hamilton HM 11

Bermuda

Attention: Davis Maranga

Telephone: 1 441 298
6623

Email: Davis.Maranga@marsh.com

 

		(b)	in the case of the Company, by giving, delivering or providing the original notice or information
at:

 

Iris Reinsurance Ltd.

Par-La-Ville Place

14 Par-La-Ville Road

Hamilton HM08

Bermuda

Attention: Peter Yu, Charles Mixon

Tel: +1-441-292-6720

E-mail: peter.yu@cartesiangroup.com; charles.mixon@cartesianre.com;
team@iris-re.com

 

    	 	10	 

    

    

  

With a copy to:

 

Horseshoe Group

Wessex House, 3rd Floor

45 Reid Street

Hamilton HM 12, Bermuda

Attention: Nigel Godfrey

Telephone No.: +1-441-295-8478

E-mail: iris@horseshoe.bm

 

or, in each case, to such other address
or facsimile number and/or for the attention of any other individual and/or copied to any other person designated pursuant to a
written notice provided in accordance with this Article XIII.

 

ARTICLE
XV

 

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

		15.1	Representations, Warranties and Covenants of the Company. The Company
represents, warrants and covenants, as applicable, to the Reinsurer
as follows:

 

		(a)	Representations and Warranties

 

		(i)	Iris Re is duly organized and validly existing under the laws of Bermuda.

 

		(ii)	The Company has all requisite power and authority to enter into each of this Reinsurance Agreement
and the Underlying Reinsurance Agreements, and to perform its obligations hereunder and thereunder. The execution and delivery
by the Company of each of this Reinsurance Agreement and the Underlying Reinsurance Agreements, and the performance by the Company
of its obligations hereunder and thereunder, have been duly authorized. Each of this Reinsurance Agreement and the Underlying Reinsurance
Agreements constitutes a valid and binding obligation of the Company, enforceable against it in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors’ rights and to general equity principles.

 

    	 	11	 

    

    

  

		(iii)	The execution, delivery and performance of each of this Reinsurance Agreement and the Underlying
Reinsurance Agreements will not (A) violate any provision of the memorandum of association or bye-laws of Iris Re; (B) violate,
conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty the right to
terminate, or constitute a default under, any contract or other agreement to which the Company
is a party; (C) violate any order, judgment or decree applicable to the Company;
or (D) be subject to the receipt of any necessary regulatory approval or non-disapproval except as have been obtained and are in
effect on the date hereof, or violate any statute, law or regulation of any jurisdiction applicable to the Company.

 

		(iv)	The individual executing each of this Reinsurance Agreement and the Underlying Reinsurance Agreements
on behalf of the Company is duly authorized to do so.

 

		(b)	Covenants. The Company shall use utmost good faith in all of its dealings with the Reinsurer
and in all of the transactions contemplated hereby.

 

		15.2	Representations, Warranties and Covenants of the Reinsurer. The Reinsurer
represents, warrants and covenants, as applicable, to the Company
as follows:

 

		(a)	Representations and Warranties

 

		(i)	The Reinsurer is duly organized
and validly existing under the laws of its jurisdiction of organization.

 

		(ii)	The Reinsurer has all requisite
power and authority to enter into this Reinsurance Agreement, and, upon registration as a special purpose insurer, will have all
requisite power and authority to perform its obligations hereunder. The execution and delivery by the Reinsurer
of this Reinsurance Agreement, and, upon registration as a special purpose insurer, the performance by the Reinsurer
of its obligations hereunder, will be duly authorized, valid and binding obligations of the Reinsurer
enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

 

    	 	12	 

    

    

  

		(iii)	The execution, delivery and performance of this Reinsurance Agreement will not (A) violate any
provision of the charter or organizational document of the Reinsurer;
(B) violate, conflict with or result in the breach of any of the terms of, result in any modification of, give any counterparty
the right to terminate, or constitute a default under, any contract or other agreement to which the Reinsurer
is a party; (C) violate any order, judgment or decree applicable to the Reinsurer;
or (D) be subject to the receipt of any necessary regulatory approval or non-disapproval, or violate any statute, law or regulation
of any jurisdiction applicable to the Reinsurer.

 

		(iv)	The individual executing this Reinsurance Agreement on behalf of the Reinsurer
is duly authorized to do so.

 

		(b)	Covenants. The Reinsurer
shall use utmost good faith in all of its dealings with the Company and in all of the transactions contemplated hereby.

 

		15.3	Remedies.
Remedies with respect to breaches of certain representation, warranties and covenants are as follows:

 

		(a)	In the event that the Company or the Reinsurer breaches any of the representations or warranties
made in Section 15.1(a) or Section 15.2(a), the non-breaching party’s damages shall be limited to money damages.

 

		(b)	In the event that the Company or the Reinsurer breaches any of the covenants made in Section 15.1(b)
or Section 15.2(b), the non-breaching party’s damages shall be limited to money damages.

 

ARTICLE
XVI

 

CURRENCY

 

		16.1	Currency. Wherever the word "Dollars" or sign "$" appear in this Reinsurance
Agreement they shall be construed to mean United States Dollars.

 

		16.2	Unless otherwise agreed, for purposes of this Reinsurance Agreement, where the Company
receives premiums or pays losses and/or commissions in currencies other than United States currency, such premiums or losses and
commissions shall be converted into United States Dollars at the rates of exchange utilised by the Company in its books at the
inception date of this Reinsurance Agreement.

 

ARTCILE
XVII

 

MISCELLANEOUS
PROVISIONS

 

		17.1	No Set-Off. All payments due and payable hereunder by either party, whether with respect
to the same date or otherwise, shall be made on a gross basis.

 

    	 	13	 

    

    

 

		17.2	Entire Agreement. This Reinsurance Agreement (including any amendments hereto) and the Underlying
Reinsurance Agreements (including any amendments thereto) constitute the entire agreement among the parties with respect to the
subject matter hereof and supersedes all other prior agreements and understandings, both written and verbal, among the parties
or any of them with respect to the subject matter hereof.

 

		17.3	Governing Law. This Reinsurance Agreement shall be governed by, and construed and enforced
in accordance with, the laws of Bermuda (other than any mandatory conflict of law rule which might result in the application of
the law of any other jurisdiction), provided that any provisions of this Reinsurance Agreement relating to the segregation of assets
or liabilities of the Company shall be governed by and construed in accordance with the SAC Act.

 

		17.4	Third-Party Beneficiaries. This Reinsurance Agreement is intended for the exclusive benefit
of the parties to this Reinsurance Agreement and their respective successors and permitted assigns, and nothing in this Reinsurance
Agreement, express or implied, is intended to or shall confer upon any person, other than the parties hereto, any rights, benefits
or remedies of any nature whatsoever under or by reason of this Reinsurance Agreement.

 

		17.5	Wire Transfers. All payments to the Reinsurer required under this Reinsurance Agreement
shall be made in United States dollars by wire transfer in immediately available funds in accordance with the following wire transfer
instructions:

 

To be provided
by the Reinsurer at the Effective Date.

 

		17.6	Descriptive Headings. The article and section headings herein are inserted for convenience
of reference only and are not intended to be part of or to affect the meaning or interpretation of this Reinsurance Agreement.

 

		17.7	Amendment. This Reinsurance
                                         Agreement may not be amended or modified or any term or provision hereof waived or discharged
                                         except by an instrument or instruments in writing signed and delivered on behalf of each
                                         of the parties hereto.

 

		17.8	Waiver. Except as otherwise provided in this Reinsurance Agreement, any failure or delay
by any party in exercising any right, power or privilege hereunder shall not operate as a waiver thereof, nor shall any single
or partial exercise thereof preclude any other or further exercise of any such right, power or privilege or the exercise of any
other right, power or privilege hereunder or otherwise available at law or in equity.

 

		17.9	Assignment. No party may
                                         assign any of its rights or obligations under this Reinsurance Agreement without the
                                         written consent of the other party to this Reinsurance Agreement.

 

    	 	14	 

    

    

 

		17.10	Counterparts. This Reinsurance Agreement may be executed in counterparts, each of which
shall be deemed to be an original, but all of which shall constitute one and the same agreement.

 

		17.11	Further Assurances. Each party hereto agrees to perform any further acts and to execute
and deliver any further documents, which may be reasonably necessary to carry out the provisions of this Reinsurance Agreement.

 

		17.12	Severability. Any term or provision of this Reinsurance Agreement which is invalid or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this Reinsurance Agreement or affecting the validity or
enforceability of any of the terms or provisions of this Reinsurance Agreement in any other jurisdiction. If any provision of this
Reinsurance Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

		17.13	Segregated Account and Bermuda law.

 

		(a)	This Reinsurance Agreement confers no voting rights on the Reinsurer relative to either the affairs
of the Company, the affairs of any segregated account of Iris Re or of the general account of Iris Re.

 

		(b)	The assets of Iris Re arising out of or in respect of the terms of this Reinsurance Agreement shall
at all times be linked to the Company and shall be kept segregated within the meaning of the SAC Act, and separate, and distinct
from all other funds and assets of Iris Re (except where all relevant parties, including the Company, may expressly agree otherwise,
and in accordance with the provisions of section 17A of the SAC Act), and are not chargeable with, and shall not be reduced by,
any liability arising from any other business of Iris Re, including, without limitation, any liability arising under the general
account or any other segregated account of Iris Re.

 

		(c)	All rights and interests in assets and property linked to the Company shall be determined in accordance
with this Reinsurance Agreement and the terms of the SAC Act.

 

		(d)	Pursuant to the terms of this Reinsurance Agreement, all premiums, retro-premium and other receipts
arising from this Reinsurance Agreement will be linked to the Company. In addition, any reinsurance recoveries arising from any
retrocessional reinsurance agreements ceding all or any portion of the risks assumed hereunder shall be linked to the Company.

 

		(e)	All payments made by the Company under this Reinsurance Agreement shall be paid only out of funds
or other assets linked to the Company.

 

    	 	15	 

    

    

  

		(f)	Iris Re may terminate the Company at any time after the Company ceases to have any obligation or
liability to the Reinsurer hereunder.

 

		(g)	Notwithstanding any matter referred to herein, the Reinsurer understands and accepts that the Company
is a segregated account of Iris Re and that all corporate matters relating to the creation of the Company, capacity of the Company,
operation and liquidation of the Company and any matters relating to the Company thereof shall be governed by, and construed in
accordance with, the laws of Bermuda. The Reinsurer has had the opportunity to take advice and to obtain all such additional information
that it considers necessary to evaluate the terms, conditions and risks of entering into this Reinsurance Agreement with the Company.

 

		(h)	The Reinsurer acknowledges and recognizes the applicability, validity and enforceability of the
SAC Act and the terms contained therein and in particular that the Company’s liability and obligations under this Reinsurance
Agreement are limited to the assets linked to the Company.  The Reinsurer agrees and acknowledges that there shall only be
recourse to the assets linked to the Company and that (except where all relevant parties, including the Company, may expressly
agree otherwise, and in accordance with the provisions of section 17A of the SAC Act) in the event of the exhaustion of the assets
linked to the Company, there shall be no recourse by any party to the assets which are linked to any other segregated account (as
that term is defined in the SAC Act) established by Iris Re or to the general account of Iris Re and that there is no obligation
whatsoever for Iris Re to use any of its property or assets, other than the assets linked to the Company, to satisfy any claim
in the event of the exhaustion of the assets linked to the Company.

 

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

 

	IRIS REINSURANCE LTD., 	 	IIS RE LTD.
	ACTING IN RESPECT OF ITS

SEGREGATED ACCOUNT

DESIGNATED AS “KWQS”	 	 
	 	 	 
	By: 	/s/ Charles Mixon	 	By: 	/s/ Thomas C. Heise
	Charles Mixon	 	Thomas C. Heise
	Authorized Signatory	 	Chief Executive Officer
	 	 	 	 	 

 

    	 	16Exhibit 10.2

 

SERVICES AGREEMENT

 

This SERVICES AGREEMENT
(the “Agreement”) is made as of [______] (the “Effective Date”), between IIS
Re Ltd. (the “Company”) and 1347 Advisors LLC (the “Consultant”).

 

WITNESSETH:

 

WHEREAS, the Company is
organized and existing under the laws of Bermuda and permitted to engage in the business of insurance under the Bermuda Insurance
Act 1978;

 

WHEREAS, the Company desires
to retain the Consultant to render certain brokerage and structuring services to the Company, and the Consultant is willing to
render such services; and

 

WHEREAS, the Consultant,
a Delaware limited liability company, is ready and willing to act as consultant to the Company, subject to and in accordance with
the provisions hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the premises and mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

Article I: Retention
of Consultant

 

Section 1.1. The Company hereby retains the
Consultant for the period and on the terms set forth in this Agreement. The Consultant agrees to render the services herein set
forth for the compensation herein provided.

 

Section 1.2. The Consultant agrees to notify
the Company of any change in the ownership of the Consultant within a reasonable time after such change.

 

Article II: Duties
of Consultant

 

Section 2.1. Subject to the terms and conditions
of this Agreement, the oversight of the boards of directors of the Company and its parent company, Insurance Income Strategies
Ltd., a Bermuda company (“IIS”), and the applicable requirements, the Consultant shall perform, or shall
cause to be performed, the following services:

 

(a)       Identification
and due diligence of potential transaction counterparties for consideration by the Company’s management;

 

(b)       Advice
on capital structure and corporate development opportunities;

 

(c)       Support
for compliance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”); and

 

(d)       Other
periodic and special requests deemed within the scope of this Agreement by the parties hereto.

 

    	 	1	 

     

    

 

For the avoidance of doubt, the services of
interim chief financial officer and chairperson of the Board of IIS are not being provided under this Agreement. The Consultant
will not have any authority under the Agreement to negotiate, enter into, or to conclude any contract or otherwise to effect any
transactions on behalf of the Company or in the name of the Company or IIS.

 

Article III:
Expenses

 

Section 3.1. The Consultant
shall pay all of its costs and expenses relating to the general operation of its business, including expenses related to staff
as may be necessary for the due performance of its duties. The Consultant shall be entitled to reimbursement of all reasonable
out-of-pocket expenses incurred by it specifically in connection with performance of its obligations under this Agreement, including
(i) any costs, including all travel, accommodation and other reasonable expenses, incurred by the Consultant at the request of
the Company, (ii) communication and mailing expenses incurred in the course of performance of obligations under this Agreement,
and (iii) all legal and professional expenses incurred by the Consultant in furtherance of its duties under this Agreement.

 

Article IV: Remuneration

 

Section 4.1 As of the Effective
Date, the Consultant shall be entitled to receive the following fee from the Company as compensation for the services herein set
forth:

 

		a)	A brokerage commission of 10.0125% of a number equal to i) gross written premiums (direct or assumed)
and any other gross revenue related to insurance operations of the Company or any of its Affiliate entities (as defined below),
less ii) corporate overhead as may be reduced by investment income (the “Brokerage Commission”), payable
to the Consultant immediately upon execution of any contract by the Company or any of its Affiliates that produce gross written
premiums and any other gross operating revenue for the Company or any of its Affiliates; and

 

		b)	A no claims bonus equal to 13.50% of the Net Underwriting Profits (as defined below) of the Company
and any future licensed insurance company formed and owned by IIS, payable annually (the “Profit Commission”,
and together with Brokerage Commission, the “Service Fee”). The payment of Profit Commission to the Consultant
shall be made annually no later than 30 days after IIS files its Annual Report on Form 10-K for each fiscal year ending June 30th
(the “Form 10-K”). The Profit Commission can only be a positive number, i.e. it is only payable in case of net Underwriting
Profits and Consultant will not share any net underwriting losses. “Net Underwriting Profits” shall be
calculated in the following manner based on the financial statements of IIS prepared in accordance with GAAP and included in IIS’s
Form 10-K: (i) Total revenues, less (ii) loss and loss adjustment expenses incurred, less (iii) acquisition costs incurred (comprising
of federal excise taxes and commissions paid to cedants). For avoidance of doubt, acquisition costs for the purposes of the definition
of Net Underwriting Profits do not include any Service Fee incurred by the Company under this Agreement.

 

    	 	2	 

     

    

 

As used in this Agreement, “Affiliate”
means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control
with, such Person. For this purpose, “control” (including, with its correlative meanings, “controlled by”
and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the ownership of securities or partnership or other ownership
interests, by contract or otherwise. “Person” means any individual, corporation, estate, partnership,
joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or any other entity.

 

		c)	Consultant shall have full responsibility for all applicable federal, state and local taxes, including
withholding and income taxes, for all compensation paid to Consultant, its partners, agents or its employees under this Agreement,
and for compliance with all applicable labor and employment requirements with respect to Consultant’s business organization,
and Consultant’s partners, agents and employees. Consultant agrees to indemnify, defend and hold the Company harmless from
any liability for, or assessment of, any claims or penalties with respect to such taxes, labor or employment requirements, including
any liability for, or assessment of, withholding taxes imposed on the Company by the relevant taxing authorities with respect to
any compensation paid to Consultant or Consultant’s partners, agents or its employees.

 

Article V: Liability
and Indemnification

 

Section
5.1. The Consultant and its Affiliates, directors, officers, employees, agents, successors and permitted assigns (the “Consultant
Indemnitees”) will not be liable for any loss, claims, liabilities,
damages, deficiencies, costs or expenses of any type incurred by the Company and its Affiliates, directors, officers, employees,
agents, successors and permitted assigns (the “Company Indemnitees”) (i) on account of any third-party
claim or proceeding arising out of the performance of this Agreement or (ii) from any breach of, or failure to perform, any covenant
or obligation of Consultant Indemnitees contained in this Agreement, in each case, unless (a) a court or arbitral panel with appropriate
jurisdiction shall have determined by a final judgment which is not subject to appeal such losses, claims, liabilities, damages,
costs or expenses are as a result of fraud, dishonesty, gross negligence or willful misconduct of any of the Consultant Indemnitees
or (b) such Consultant Indemnitees shall have settled such losses, claims, liabilities, damages, costs or expenses without the
consent of the Company Indemnitees (such consent not to be unreasonably withheld or delayed). Notwithstanding anything else in
this Agreement to the contrary, the Consultant Indemnitees’ aggregate liability during the term of this Agreement with respect
to, arising from, or arising out of or attributable to this Agreement, or from all services rendered or omitted to be rendered
under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the highest amount actually
paid as Service Fees in any single calendar year during the term of this Agreement.

 

    	 	3	 

     

    

 

Section 5.2. The Company
unconditionally agrees to indemnify, defend and hold harmless the Consultant Indemnitees from and against, and pay or reimburse
such parties for, any losses, claims, liabilities, damages, deficiencies, costs or expenses of any type which they may incur on
account of any third-party claim or proceeding arising out of the performance of this Agreement or from any breach of, or failure
to perform, any covenant or obligation of Company Indemnitees contained in this Agreement unless a court or arbitral panel with
appropriate jurisdiction shall have determined by a final judgment which is not subject to appeal such losses, claims, liabilities,
damages, costs or expenses are as a result of fraud, dishonesty, gross negligence or wilful misconduct of any of the Consultant
Indemnitees.

 

Article VI: Term
and Termination

 

Section 6.01. This Agreement
shall become effective on the Effective Date and shall remain in full force and effect until terminated or not renewed by the Company
or the Consultant in accordance with this Article VI. This Agreement shall have an initial term of seven (7) years commencing on
the date of the closing of the initial public offering of IIS (the “Offering”) and will renew automatically
on the seventh anniversary of the completion of the Offering (“Initial Renewal Date”) and upon every
third anniversary thereafter (“Subsequent Renewal Dates”), unless otherwise terminated or not renewed
in accordance with this Article VI.

 

Section 6.02. The Agreement
may be terminated at any time by the Company upon the occurrence of any of the following events:

 

		a)	If the Consultant breaches or fails to perform in any material respect any of its obligations,
representations, warranties or covenants contained in this Agreement, which breach or failure to perform has not been cured within
60 business days after giving written notice to the Consultant of such breach or failure to perform (the “Cure Period”),
the Company may terminate this Agreement by providing the Consultant with at least 30 business days’ prior written notice
from the date of the expiration of the Cure Period.

 

		b)	If the Consultant (1) files a voluntary petition in bankruptcy, (2) is involuntarily dissolved
and commences its winding up, (3) consents to or acquiesces to the appointment of a trustee, receiver or liquidator of the Consultant,
or (4) has entered against it an order for relief in a federal bankruptcy proceeding which order is not stayed, vacated or dismissed
within ninety (90) business days, the Company may terminate this Agreement by providing the Consultant with at least 30 business
days’ prior written notice of such termination.

 

Section 6.03. The Agreement
may be terminated at any time by the Consultant upon the occurrence of any of the following events:

 

		a)	If the Company breaches or fails to perform in any material respect any of its obligations, representations,
warranties or covenants contained in this Agreement, which breach or failure to perform has not been cured within 60 business days
after giving written notice to the Company of such breach or failure to perform (the “Company Cure Period”),
the Consultant may terminate this Agreement by providing the Company with at least 30 business days’ prior written notice
from the date of the expiration of the Company Cure Period.

 

    	 	4	 

     

    

 

		b)	If the Company or any of its Affiliates (1) files a voluntary petition in bankruptcy, (2) is involuntarily
dissolved and commences its winding up, (3) consents to or acquiesces to the appointment of a trustee, receiver or liquidator of
the Company, or (4) has entered against it an order for relief in a federal bankruptcy proceeding which order is not stayed, vacated
or dismissed within ninety (90) business days, the Consultant may terminate this Agreement by providing the Company with at least
30 business days’ prior written notice of such termination.

 

		c)	If there is a Change in Control (as defined below) of the Company or IIS, this Agreement may be
terminated by the Consultant upon 30 business days’ prior written notice to the Company. For purposes of this Agreement,
“Change in Control” means with respect to IIS the first to occur of any of the following (in one transaction or a series
of related transactions): (i) consummation of a sale of, directly or indirectly, all or substantially all of the IIS’s assets,
(ii) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act of 1934, as amended (the “Exchange
Act”)), other than a trustee or other fiduciary holding securities of IIS under an employee benefit plan of IIS,
becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly,
of securities of IIS representing 50% or more of (A) the outstanding equity securities of IIS or (B) the combined voting power
of IIS’s then outstanding securities, (iii) IIS is party to a consummated merger or consolidation which results in the voting
securities of IIS outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by
being converted into voting securities of the surviving or another entity) at least fifty (50%) percent of the combined voting
power of the voting securities of IIS or such surviving or other entity outstanding immediately after such merger or consolidation,
and (iv) a majority of the members of the board of directors of IIS are replaced during any twelve-month period by directors whose
appointment or election is not endorsed by a majority of the board of directors of IIS before the date of appointment or election.

 

Section 6.04. Prior to
the Initial Renewal Date or any of the Subsequent Renewal Dates of this Agreement as described above, the Company or the Consultant
may non-renew the Agreement for any or no reason by providing a not less than nine months, but not more than 12 months’ written
notice to the other party prior to Initial Renewal Date or any of the Subsequent Renewal Dates, as applicable (the “Non-Renewal”).
Any termination under this Section 6.04 shall be effective as of the Initial Renewal Date or Subsequent Renewal Date, as applicable.

 

Section 6.05. Upon termination
for any reason or Non-Renewal of this Agreement at any point pursuant to this Article VI, except termination by the Company pursuant
to Section 6.02, the Company will pay a one-time termination fee equal to 7.5% of the Shareholders’ Equity (as defined below)
calculated as of the most recently completed fiscal quarter prior to the date of termination (the “Termination Fee”).
The term “Shareholders’ Equity” as used herein means, as of the end of any fiscal quarter, IIS’s
shareholders’ equity, on a consolidated basis, as reported in IIS’s financial statements prepared in accordance with
U.S. GAAP. “U.S. GAAP” means the generally accepted accounting principles used in the United States of
America.

 

    	 	5	 

     

    

 

Article VII:
Assignment

 

Section 7.1 The Company
may not assign this Agreement or its duties hereunder without the prior written consent of the Consultant. The Consultant, in its
sole discretion, may assign its duties under this Agreement or this Agreement in entirety to any other party without the consent
of the Company or IIS and this Agreement will be binding upon and inure to the benefit of and be enforceable by the parties hereto
and their respective successors and assigns.

 

Article VIII:
Amendment

 

Section 8.1. This Agreement
may not be amended without the prior written consent of the Company and the Consultant.

 

Article IX: Covenants

 

Section 9.01. Covenants
of the Company. During the term of this Agreement, the Company, on behalf of itself and its Affiliates, agrees that the Company
and its Affiliates shall:

 

		(a)	observe and comply with any and all provisions of this Agreement;

 

		(b)	not, directly or indirectly (including through any of its Affiliates), enter into any other services
agreement (or similar agreement) with any other entity that provides similar services as being provided by the Consultant under
this Agreement;

 

		(c)	provide the Consultant with access to the books and records of the Company and its Affiliates in
respect of the services rendered and to be rendered pursuant to this Agreement (such access to be upon reasonable prior notice
and during regular business hours), and otherwise take such action as is reasonably required to allow the Consultant to fulfill
its obligations hereunder, in each case in a manner that does not unreasonably interfere with the business operations of the Company
and its Affiliates; and

 

		(d)	compensate and reimburse the Consultant for its expenses as provided in Article IV and Article
III hereof, respectively.

 

Section 9.02. Covenants
of the Consultant. During the term of this Agreement, the Consultant agrees that it shall:

 

		(a)	observe and comply with any and all provisions of this Agreement;

 

		(b)	act in good faith and with reasonable skill and care in respect of the services rendered or to
be rendered pursuant to this Agreement; and

 

		(c)	have regard to any matter to which a prudent service provider should reasonably pay regard in accordance
with customary industry standards for the provision of such services as those to be rendered pursuant to this Agreement.

 

    	 	6	 

     

    

 

Article X: Representations
and Warranties

 

Section 10.1. Each party
hereby represents and warrants to the other party that (in respect of itself):

 

		(a)	it is duly formed and validly existing under applicable laws, with full power and authority to
conduct its business, and it has full power and authority to enter into, perform its duties under and exercise its rights under
this Agreement;

 

		(b)	assuming the due authorization, execution and delivery of the other party, this Agreement constitutes
its valid, lawful and binding obligations enforceable against such party in accordance with its terms, except as may be limited
by (i) any bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors
rights, (ii) general equity principles, (iii) the law of fraudulent conveyance, (iv) public policy, (v) judicial imposition of
any implied covenant of good faith and fair dealing, or (vi) any similar laws or principles;

 

		(c)	the execution and delivery of this Agreement and the performance of such party’s obligations
under this Agreement do not and shall not constitute a breach of or default under (i) its organizational documents, or (ii) any
agreement or instrument by which it is bound;

 

		(d)	no material consent, approval, waiver, license, permit, order or authorization of, or registration,
declaration or filing with, any regulatory authority is required to be obtained or made by it in connection with the execution,
delivery and performance of this Agreement or the consummation of the transactions contemplated by this Agreement; and

 

		(e)	no step, application, order, proceeding or appointment has been taken or made by or in respect
of it for a distress, execution, composition or arrangement with creditors, winding-up, dissolution, administration, receivership
(administrative or otherwise) or bankruptcy, and it is able to pay its debts.

 

The representations and
warranties in this Article X are made on a continuing basis, and shall remain in full force and effect throughout the duration
of this Agreement. If any party becomes aware that any of the representations and warranties made by it in this Article X has ceased
to be true, then it shall notify the other party promptly.

 

Article XI: Conflicts
of Interest and Exclusivity

 

Section 11.1. The services
provided by the Consultant under this Agreement are not exclusive. None of the services to be provided under this Agreement nor
any other matter shall give rise to any fiduciary or equitable duties which would prevent or hinder the Consultant, its Affiliates
or their respective directors, officers, employees and agents (each an “Interested Party”) from providing
services to or entering into transactions with other parties. An Interested Party may, without prior notice to or consent of the
Company or its Affiliates, recommend, effect or enter into transactions or provide services on behalf of other clients (whether
or not similar to the services provided under this Agreement) where an Interested Party has, directly or indirectly, a material
interest or a relationship with another person which may involve a conflict with the Consultant’s duty to the Company or
its Affiliates.

 

    	 	7	 

     

    

 

Section 11.2. The Consultant
shall take reasonable steps to ensure fair treatment for the Company or its Affiliates, and shall, on a best efforts basis, make
efforts so that any such transactions that are effected by the Company or its Affiliates are effected on terms which are not materially
less favorable to the Company or its Affiliates than if the potential conflict had not existed. However, neither the Consultant,
its Affiliates nor any other Interested Party shall be liable to the Company or its Affiliates for any profit, commission or remuneration
made or received from or by reason of such transactions or any related transactions. The Consultant hereby notifies the Company
and its Affiliates, and the Company on its behalf and on behalf of its Affiliates hereby acknowledges, that such potential conflicting
interests or duties may arise as a result of, among other things:

 

		(a)	an Interested Party undertaking investment or other business for other clients;

 

		(b)	Certain directors and officers of the Company and IIS also being managing directors of the Consultant;

 

		(c)	the Consultant, in performing its duties under this Agreement, brokering an agreement or arrangement
between the Company or its Affiliates with another Interested Party; or

 

		(d)	the Consultant acting as agent for the Company or its Affiliates in relation to transactions effected
by the Company or its Affiliates in which the Consultant is also acting as agent for the account of other clients or Interested
Parties.

 

Article XII: Miscellaneous

 

Section
12.01. Independent Contractor Status

 

The Consultant shall for
all purposes herein be deemed to be an independent contractor. Nothing contained herein shall be deemed to constitute the parties
hereto members of any partnership, joint venture, association, syndicate or other entity. The parties further agree that any amounts
paid to the Consultant pursuant to this Agreement shall constitute payments for services rendered.

 

Section
12.02. No Authority to Conclude Contracts

 

Although the Consultant
is an independent contractor for all purposes herein, it shall not have, and shall not represent to any third party that it has,
authority to enter into or to conclude any contract on behalf of or in the name of the Company, or otherwise to effect any transactions,
without the express written consent of the Company.

 

    	 	8	 

     

    

 

Section
12.03. Non-Exclusivity

 

Nothing in this Agreement
shall limit or restrict the right of the Consultant or any of its partner, director, officer, agent or employee to engage in any
other business or to devote his time and attention in part to any other business.

 

Section
12.04. Notices

 

Notices of any kind to
be given to the Consultant shall be in writing and shall be duly given if mailed or delivered to the Consultant at 150 Pierce Road,
6th Floor, Itasca, IL 60143, Attn: Legal Department, or at such other address or to such other individual as shall be
specified by the Consultant to the Company in accordance with this Section 12.04.. Notices of any kind to be given to the Company
shall be in writing and shall be duly given if mailed or delivered to the Company at Canon’s Court, 22 Victoria Street, Hamilton
, HM12 Bermuda, Attn: Thomas Heise, or at such other address or to such other individual as shall be specified by the Company to
the Consultant in accordance with this Section 12.04.

 

Section
12.05. Headings

 

The headings of the Articles
and Sections of this Agreement are for convenience of reference only and are not to be considered in construing the terms and provisions
of this Agreement.

 

Section
12.06. Governing Law

 

THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.

 

Section
12.07. Counterparts

 

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

 

Section 12.08. Confidentiality

 

No party shall at any time
use, divulge or communicate to any Person any confidential information, except:

 

(i)       as
agreed by the other party;

 

(ii)       where
required to perform its duties or exercise its rights under this Agreement (including to its delegates or agents, if applicable);

 

to its professional representatives
or advisers, or to insurance companies, insurance brokers, insurance agents, and other potential transaction counterparties to
the extent required by them to perform their duties, and provided that they are or agree to be bound by a duty of confidentiality; to
the extent required by any regulatory authority (including for the purpose of filing tax returns). 

 

    	 	9	 

     

    

 

Section 12.09. Entire
Agreement.

 

This Agreement constitutes
the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, among the parties and
their Affiliates, or any of them, with respect to the subject matter hereof and thereof and is not intended to confer upon any
Person other than the parties any rights or remedies

 

Section 12.10. WAIVER
OF JURY TRIAL

 

EACH PARTY ACKNOWLEDGES
AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT AND WHICH IS NOT SETTLED IN ARBITRATION IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT 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 HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (C) IT
MAKES SUCH WAIVER VOLUNTARILY AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVER AND CERTIFICATIONS IN THIS SECTION 12.10.

 

Section 12.11. Arbitration

 

The Consultant and the Company agree that all questions or matters
in dispute with respect to this Agreement, or any claim for indemnification that is in dispute, shall be submitted to arbitration
pursuant to the terms hereof.  Prior to referring any matter to arbitration pursuant to the
provisions hereof, any party intending to refer any matter to arbitration shall have given not less than ten (10) days prior written
notice of its intention to do so to the other party together with the particulars of the matter in dispute. The parties shall submit
any dispute arising out of this Agreement to final and binding arbitration pursuant to the Commercial Arbitration Rules of American
Arbitration Association, in Chicago, Illinois.  The arbitration shall be conducted by three (3) neutral arbitrators, all appointed
in accordance with the Commercial Arbitration Rules of the American Arbitration Association. In any such arbitration, the parties
shall have reasonable rights of discovery.  Each party shall be entitled to reasonable notice of the time and place of hearings
to be held by the arbitrators, to be present at such hearings, and to be represented by counsel at such hearings; provided,
however, if having been afforded such notice, a party shall fail, neglect, or refuse to appear at such hearings, the arbitrators
may act in the absence of such party. The parties agree that the award of a majority of the arbitrators shall become final and
binding upon each of them on the thirtieth (30th) day following delivery to the parties, and that, thereafter judgment
upon the award may be entered in any court having jurisdiction thereof. 

 

    	 	10	 

     

    

 

Section 12.12. Survival.
The provisions of Articles III, IV, V and Section 12.08 and 12.11 shall survive the termination of this Agreement.

 

Section 12.13.Severability

 

If any term, condition
or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless
remain in full force and effect. Upon such determination that any term, condition or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that
the terms of this Agreement are fulfilled to the extent possible.

 

Section 12.14. No Waiver/Cumulative
Remedies

 

Any waiver of a breach
of any of the terms of this Agreement or of any default under this Agreement shall not be deemed a waiver of any subsequent breach
or default and shall in no way affect the other terms of this Agreement. No failure on the part of a party to exercise, and no
delay on its part in exercising, any right or remedy under this Agreement shall operate as a waiver of that right or remedy, nor
shall any single or partial exercise of any right or remedy preclude any other or further exercise of that right or remedy or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any
rights or remedies provided by law.

 

[Signature Page Follows]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	 	THE CONSULTANT:
	 	 
	 	1347 ADVISORS LLC
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	THE COMPANY:
	 	 
	 	IIS Re LTD.
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

Signature Page to Services Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]