|   |  |
|--------|--|

----

| Reinsurers                                       |   | Participations |   |
|--------------------------------------------------|--------|----------------|--------|
|                                             |   |           |   |
| Actua      Re Ltd.                               |   |           | 43.5   | % |
| Everest      Reinsurance Company                 |   |           | 12.0   |   |
| Hiscox      Insurance Company (Bermuda) Limited  |   |           | 3.0    |   |
| Montpelier      Reinsurance Ltd.                 |   |           | 8.0    |   |
| Platinum      Underwriters Bermuda, Ltd.         |   |           | 17.5   |   |
|                                             |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield |   |           |   |   |
| Lloyd’s      Underwriters and Companies    |   |           |   |   |
| Per      Signing Page(s)                         |   |           | 16.0   |   |
|                                             |   |           |   |   |
| Total                                            |   |           | 100.0  | % |

| Page 1 of3 |  |
|------------|--|

----

| Reinsurers                                                        |   | Participations |   |
|-------------------------------------------------------------------|--------|----------------|--------|
|                                                              |   |           |   |
| ACE      Tempest Reinsurance Ltd.                                 |   |           | 4.0    | % |
| Ariel      Reinsurance Company Limited                            |   |           | 10.0   |   |
| DaVinci      Reinsurance Ltd.                                     |   |           | 7.5    |   |
| Everest      Reinsurance Company                                  |   |           | 16.5   |   |
| Flagstone      Reassurance Suisse SA - Bermuda Branch             |   |           | 15.0   |   |
| Hiscox      Insurance Company (Bermuda) Limited                   |   |           | 3.0    |   |
| Montpelier      Reinsurance Ltd.                                  |   |           | 8.0    |   |
| Munich      Reinsurance America, Inc.                             |   |           | 5.0    |   |
| Platinum      Underwriters Bermuda, Ltd.                          |   |           | 8.0    |   |
| Renaissance      Reinsurance, Ltd.                                |   |           | 7.5    |   |
| Torus      Insurance (Bermuda) Limited                            |   |           | 4.0    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield (Placement Only) |   |           |   |   |
| Amlin      Bermuda Limited                                        |   |           | 3.0    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield                  |   |           |   |   |
| Lloyd’s      Underwriters and Companies                     |   |           |   |   |
| Per      Signing Page(s)                                          |   |           | 8.5    |   |
|                                                              |   |           |   |   |
| Total                                                             |   |           | 100.0  | % |

| Reinsurers                                                        |   | Participations |   |
|-------------------------------------------------------------------|--------|----------------|--------|
|                                                              |   |           |   |
| ACE      Tempest Reinsurance Ltd.                                 |   |           | 4.0    | % |
| Allianz      Risk Transfer AG (Bermuda Branch)                    |   |           | 18.0   |   |
| Ariel      Reinsurance Company Limited                            |   |           | 2.5    |   |
| Everest      Reinsurance Company                                  |   |           | 16.5   |   |
| Flagstone      Reassurance Suisse SA - Bermuda Branch             |   |           | 22.5   |   |
| Hiscox      Insurance Company (Bermuda) Limited                   |   |           | 3.0    |   |
| Montpelier      Reinsurance Ltd.                                  |   |           | 8.0    |   |
| QBE      Reinsurance Corporation                                  |   |           | 4.0    |   |
| Torus      Insurance (Bermuda) Limited                            |   |           | 2.5    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield (Placement Only) |   |           |   |   |
| Amlin      Bermuda Limited                                        |   |           | 7.5    |   |
| Liberty      Syndicates LIB 4472 (Paris Office Underwriting)      |   |           | 3.0    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield                  |   |           |   |   |
| Lloyd’s      Underwriters and Companies                     |   |           |   |   |
| Per      Signing Page(s)                                          |   |           | 8.5    |   |
|                                                              |   |           |   |   |
| Total                                                             |   |           | 100.0  | % |

| Page 2 of3 |  |
|------------|--|

----

| Reinsurers                                                        |   | Participations |   |
|-------------------------------------------------------------------|--------|----------------|--------|
|                                                              |   |           |   |
| Allianz      Risk Transfer AG (Bermuda Branch)                    |   |           | 40.0   | % |
| Flagstone      Reassurance Suisse SA - Bermuda Branch             |   |           | 15.0   |   |
| Montpelier      Reinsurance Ltd.                                  |   |           | 20.0   |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield (Placement Only) |   |           |   |   |
| Amlin      Bermuda Limited                                        |   |           | 5.0    |   |
| Liberty      Syndicates LIB 4472 (Paris Office Underwriting)      |   |           | 8.0    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield                  |   |           |   |   |
| Lloyd’s      Underwriters and Companies                     |   |           |   |   |
| Per      Signing Page(s)                                          |   |           | 12.0   |   |
|                                                              |   |           |   |   |
| Total                                                             |   |           | 100.0  | % |

| Reinsurers                                                        |   | Participations |   |
|-------------------------------------------------------------------|--------|----------------|--------|
|                                                              |   |           |   |
| Allianz      Risk Transfer AG (Bermuda Branch)                    |   |           | 20.0   | % |
| Montpelier      Reinsurance Ltd.                                  |   |           | 25.0   |   |
| Munich      Reinsurance America, Inc.                             |   |           | 30.0   |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield (Placement Only) |   |           |   |   |
| Liberty      Syndicates LIB 4472 (Paris Office Underwriting)      |   |           | 8.0    |   |
|                                                              |   |           |   |   |
| Through      Aon Limited trading as Aon Benfield                  |   |           |   |   |
| Lloyd’s      Underwriters and Companies                     |   |           |   |   |
| Per      Signing Page(s)                                          |   |           | 17.0   |   |
|                                                              |   |           |   |   |
| Total                                                             |   |           | 100.0  | % |

| Page 3 of      3 |  |
|-----------------------|--|

----

| Article |         |                                    | Page   |
|---------|--------------|-----------------------------------------|--------|
|    |         |                                    |   |   |
| I       |         | Classes      of Business Reinsured      | 1      |   |
| II      |         | Commencement      and Termination       | 1      |   |
| III     |         | Territory                               | 2      |   |
| IV      |         | Exclusions                              | 3      |   |
| V       |         | Retention      and Limit                | 4      |   |
| VI      |         | Florida      Hurricane Catastrophe Fund | 5      |   |
| VII     |         | Other      Reinsurance                  | 5      |   |
| VIII    |         | Reinstatement                           | 5      |   |
| IX      |         | Definitions                             | 6      |   |
| X       |         | Loss      Occurrence                    | 7      |   |
| XI      |         | Loss      Notices and Settlements       | 8      |   |
| XII     |         | Salvage      and Subrogation            | 9      |   |
| XIII    |         | Reinsurance      Premium                | 9      |   |
| XIV     |         | Late      Payments                      | 10     |   |
| XV      |         | Offset      (BRMA 36C)                  | 11     |   |
| XVI     |         | Access      to Records (BRMA 1D)        | 11     |   |
| XVII    |         | Liability      of the Reinsurer         | 11     |   |
| XVIII   |         | Net      Retained Lines (BRMA 32E)      | 11     |   |
| XIX     |         | Errors      and Omissions (BRMA 14F)    | 12     |   |
| XX      |         | Currency      (BRMA 12A)                | 12     |   |
| XXI     |         | Taxes      (BRMA 50B)                   | 12     |   |
| XXII    |         | Federal      Excise Tax (BRMA 17D)      | 12     |   |
| XXIII   |         | Reserves                                | 13     |   |
| XXIV    |         | Insolvency                              | 14     |   |
| XXV     |         | Arbitration      (BRMA 6J)              | 15     |   |
| XXVI    |         | Service      of Suit (BRMA 49C)         | 16     |   |
| XXVII   |         | Severability      (BRMA 72E)            | 16     |   |
| XXVIII  |         | Governing      Law (BRMA 71B)           | 16     |   |
| XXIX    |         | Notices      and Contract Execution     | 16     |   |
| XXX     |         | Intermediary                            | 17     |   |
|    |    | Schedule      A                         |   |   |

----

| A. | This      Contract shall become effective at 12:01 a.m., Eastern Standard Time, July      1, 2009, with respect to losses arising out of loss occurrences commencing      at or after that time and date, and shall remain in force until 12:01      a.m., Eastern Standard Time, July 1,2010. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Notwithstanding      the provisions of paragraph A above, the Company may terminate a      Subscribing Reinsurer’s percentage share in this Contract at any time by      giving written notice to the Subscribing Reinsurer in the event any of the      following circumstances occur: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under      the Subscribing Reinsurer’s accounting system) at the inception of this      Contract has been reduced by more than 20.0% of the amount of surplus (or      the applicable equivalent) 12 months prior to that date;  or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      Subscribing Reinsurer’s policyholders’ surplus (or its equivalent under      the Subscribing Reinsurer’s accounting system) at any time during the term      of this Contract has been reduced by more than 20.0% of the amount of      surplus (or the applicable equivalent) at the date of the Subscribing      Reinsurer’s most recent financial  statement filed with      regulatory authorities and available to the public as of the inception of      this Contract; or |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 1 |  |
|--------|--|

----

|   | 3. | The      Subscribing Reinsurer’s A.M. Best’s rating has been assigned or downgraded      below A- and/or Standard & Poor’s rating has been assigned or      downgraded below BBB+; or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | The      Subscribing Reinsurer has become merged with, acquired by or controlled by      any other entity or individual(s) not controlling the Subscribing      Reinsurer’s operations previously;or |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | A      State Insurance Department or other legal authority has ordered the      Subscribing Reinsurer to cease writing business;  or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | The      Subscribing Reinsurer has become insolvent or has been placed into      liquidation, receivership, supervision, administration, winding-up or      under a scheme of arrangement, or similar proceedings (whether voluntary      or involuntary) or proceedings have been instituted against the      Subscribing Reinsurer for the appointment of a receiver, liquidator,      rehabilitator, supervisor, administrator, conservator or trustee in      bankruptcy, or other agent known by whatever name, to take possession of      its assets or control of its operations;or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | The      Subscribing Reinsurer has reinsured its entire liability under this      Contract without the Company’s prior written consent;  or |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 8. | The      Subscribing Reinsurer has ceased assuming new or renewal property or      casualty treaty reinsurance business;or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 9. | The      Subscribing Reinsurer has hired an unaffiliated runoff claims manager that      is compensated on a contingent basis or is otherwise provided with      financial incentives based on the quantum of claims  paid. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The      “term of this Contract” as used herein shall mean the period from 12:01      a.m., Eastern Standard Time, July 1, 2009 to 12:01 a.m., Eastern Standard      Time, July 1, 2010.  However, if this Contract is terminated,      the “term of this Contract” as used herein shall mean the period from      12:01 a.m., Eastern Standard Time, July 1, 2009 to the effective time and      date of termination. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | If      this Contract is terminated or expires while a loss occurrence covered      hereunder is in progress, the Reinsurer’s liability hereunder shall,      subject to the other terms and conditions of this Contract, be determined      as if the entire loss occurrence had occurred prior to the termination or      expiration of this Contract, provided that no part of such loss occurrence      is claimed against any renewal or replacement of this      Contract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 2 |  |
|--------|--|

----

| A.  | This      Contract does not apply to and specifically excludes the      following: |
|----------|------------------------------------------------------------------------------------|

|   | 1. | Reinsurance      assumed by the Company under obligatory reinsurance agreements,      except:\ |
|--------|----|------------------------------------------------------------------------------------------------|

|  | a. | Inter-company      reinsurance between the Company and American Vehicle Insurance      Company; |
|--|----|-------------------------------------------------------------------------------------------------|

|  | b. | Business      assumed by the Company from Citizens Property Insurance      Corporation. |
|--|----|-----------------------------------------------------------------------------------------|

|   | 2. | Hail      damage to growing or standingcrops. |
|--------|----|-----------------------------------------------|

|   | 3. | Business      rated, coded or classified as Flood insurance or which should have been      rated, coded or classified as such. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Business      rated, coded or classified as Mortgage Impairment and Difference in      Conditions insurance or which should have been rated, coded or classified      as such. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Title      insurance and all forms of Financial Guarantee, Credit and Insolvency      insurance. |
|--------|----|--------------------------------------------------------------------------------------------------|

|   | 6. | Aviation,      Ocean Marine, Boiler and Machinery, Fidelity and Surety, Accident and      Health, Animal Mortality and Workers’ Compensation and Employers      Liability. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Errors      and Omissions, Malpractice and any other type of Professional Liability      insurance. |
|--------|----|-----------------------------------------------------------------------------------------------------|

|   | 8. | Loss      and/or damage and/or costs and/or expenses arising from seepage and/or      pollution and/or contamination, other than contamination from      smoke.  Nevertheless, this exclusion does not preclude payment      of the cost of removing debris of property damaged by a loss otherwise      covered hereunder, subject always to a limit of 25.0% of the Company’s      property loss under the applicable original  policy. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 9. | Loss      or liability as excluded under the provisions of the “War Exclusion      Clause” attached to and forming part of this  Contract. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10. | Nuclear      risks as defined in the “Nuclear Incident Exclusion Clause - Physical      Damage - Reinsurance (U.S.A.)” attached to and forming part of this      Contract. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 11. | Loss      or liability from any Pool, Association or Syndicate and any assessment or      similar demand for payment related to the FHCF or Citizens Property      Insurance Corporation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 3 |  |
|--------|--|

----

|   | 12. | Loss      or liability of the Company arising by contract, operation of law, or      otherwise, from its participation or membership, whether voluntary or      involuntary, in any insolvency fund.  “Insolvency fund” includes      any guaranty fund, insolvency fund, plan, pool, association, fund or other      arrangement, however denominated, established or governed, which provides      for any assessment of or payment or assumption by the Company of part or      all of any claim, debt, charge, fee or other obligation of an insurer, or      its successors or assigns, which has been declared by any competent      authority to be insolvent, or which is otherwise deemed unable to meet any      claim, debt, charge, fee or other obligation in whole or in      part. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 13. | Transmission      and distribution lines. |
|--------|-----|-------------------------------------------|

|   | 14. | Mold,      unless resulting from a peril otherwise covered under the policy      involved. |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | 15. | Loss      or liability as excluded under the provisions of the “Terrorism Exclusion      (NMA 2930b)” attached to and forming part of this  Contract. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 16. | All      property loss, damage, destruction, erasure, corruption or alteration of      Electronic Data from any cause whatsoever (including, but not limited to,      Computer Virus) or loss of use, reduction in functionality, cost, expense      or whatsoever nature resulting therefrom, unless resulting from a peril      otherwise covered under the policyinvolved. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | As      respects each excess layer of reinsurance coverage provided by this      Contract, the Company shall retain and be liable for the first amount of      ultimate net loss, shown as “Company’s Retention” for each excess layer in      Schedule A attached hereto, arising out of each loss      occurrence.  The Reinsurer shall then be liable, as respects      each excess layer, for the amount by which such ultimate net loss exceeds      the Company’s retention, but the liability of the Reinsurer under each      excess layer shall not exceed the amount, shown as “Reinsurer’s Per      Occurrence Limit” for that excess layer in Schedule A attached hereto, as      respects any one loss occurrence. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 4 |  |
|--------|--|

----

| B. | Notwithstanding      the provisions above, no claim shall be made hereunder as respects losses      arising out of loss occurrences commencing during the term of this      Contract unless at least two risks insured or reinsured by the Company are      involved in such loss occurrence.  For purposes hereof, the      Company shall be the sole judge of what constitutes “one      risk.” |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | In      the event all or any portion of the reinsurance under any excess layer of      reinsurance coverage provided by this Contract is exhausted by loss, the      amount so exhausted shall be reinstated immediately from the time the loss      commences hereon. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | As      respects the First Excess Layer, for each amount so reinstated the Company      shall pay no additional premium. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------|

|   | 2. | As      respects the Second, Third, Fourth and Fifth Excess Layers, for each      amount so reinstated the Company agrees to pay additional premium equal to      the product of the following: |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a. | The      percentage of the occurrence limit for the excess layer reinstated (based      on the loss paid by the Reinsurer under that excess layer);      times |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | The      earned reinsurance premium for the excess layer reinstated for the term of      this Contract (exclusive of reinstatement  premium). |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| Page 5 |  |
|--------|--|

----

| B. | Whenever      the Company requests payment by the Reinsurer of any loss under the      Second, Third, Fourth or Fifth Excess Layer, the Company shall submit a      statement to the Reinsurer of reinstatement premium due the Reinsurer for      that excess layer.  If the earned  reinsurance premium      for the Second, Third, Fourth or Fifth Excess Layer for the term of this      Contract has not been finally determined as of the date of any such      statement, the calculation of reinstatement premium due for that excess      layer shall be based on the amount, shown as “Annual Deposit Premium” for      that excess layer in Schedule A attached hereto, and shall be readjusted      when the earned reinsurance premium for that excess layer for the term of      this Contract has been finally determined.  Any reinstatement      premium shown to be due the Reinsurer for the Second, Third, Fourth or      Fifth Excess Layer as reflected by any such statement (less prior      payments, if any, for that excess layer) shall be payable by the Company      concurrently with payment by the Reinsurer of the requested loss for that      excess layer.  Any return reinstatement premium shown to be due      the Company shall be remitted by the Reinsurer as promptly as possible      after receipt and verification of the Company’s  statement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Notwithstanding      anything stated herein, the liability of the Reinsurer under any excess      layer of reinsurance coverage provided by this Contract shall not exceed      either of the following: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      amount, shown as “Reinsurer’s Per Occurrence Limit” for that excess layer      in Schedule A attached hereto, as respects loss or losses arising out of      any one loss occurrence; or |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The      amount, shown as “Reinsurer’s Term Limit” for that excess layer in      Schedule A attached hereto, in all during the term of this      Contract. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | “Ultimate      net loss” as used herein is defined as the sum or sums (including loss in      excess of policy limits, extra contractual obligations and loss adjustment      expense, as hereinafter defined) paid or payable by the Company in      settlement of claims and in satisfaction of judgments rendered on account      of such claims, after deduction of all salvage, all recoveries and all      claims on inuring insurance or reinsurance, whether collectible or      not.  Nothing herein shall be construed to mean that losses      under this Contract are not recoverable until the Company’s ultimate net      loss has been ascertained. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | “Loss      in excess of policy limits” and “extra contractual obligations” as used      herein shall be defined as follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | “Loss      in excess of policy limits” shall mean 80.0% of any amount paid or payable      by the Company in excess of its policy limits, but otherwise within the      terms of its policy, such loss in excess of the Company’s policy limits      having been incurred because of, but not limited to, failure by the      Company to settle within the policy limits or by reason of the Company’s      alleged or actual negligence, fraud or bad faith in rejecting an offer of      settlement or in the preparation of the defense or in the trial of an      action against its insured or reinsured or in the preparation or      prosecution of an appeal consequent upon such an  action. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 6 |  |
|--------|--|

----

|   | 2. | “Extra      contractual obligations” shall mean 80.0% of any punitive, exemplary,      compensatory or consequential damages paid or payable by the Company, not      covered by any other provision of this Contract and which arise from the      handling of any claim on business subject to this Contract, such      liabilities arising because of, but  not limited to, failure by      the Company to settle within the policy limits or by reason of the      Company’s alleged or actual negligence, fraud or bad faith in rejecting an      offer of settlement or in the preparation of the defense or in the trial      of an action against its insured or reinsured or in the preparation or      prosecution of an appeal consequent upon such an action.  An      extra contractual obligation shall be deemed, in all circumstances, to      have occurred on the same date as the loss covered or alleged to be      covered under the policy. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | “Loss      adjustment expense” as used herein shall mean expenses assignable to the      investigation, appraisal, adjustment, settlement, litigation, defense      and/or appeal of specific claims, regardless of how such expenses are      classified for statutory reporting purposes.  Loss adjustment      expense shall include, but not be limited to interest on judgments,      expenses of outside adjusters and declaratory judgment expenses or other      legal expenses and costs incurred in connection with coverage questions      and legal actions connected thereto, but shall not include office expenses      or salaries of the Company’s regularemployees. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      term “loss occurrence” shall mean the sum of all individual losses      directly occasioned by any one disaster, accident or loss or series of      disasters, accidents or losses arising out of one event which occurs      within the area of one state of the United States or province of Canada      and states or provinces contiguous thereto and to one      another.  However, the duration and extent of any one “loss      occurrence” shall be limited to all individual losses sustained by the      Company occurring during any period of 168 consecutive hours arising out      of and directly occasioned by the same event, except that the term “loss      occurrence” shall be further defined asfollows: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | As      regards windstorm, hail, tornado, hurricane, cyclone, including ensuing      collapse and water damage, all individual losses sustained by the Company      occurring during any period of 96 consecutive hours arising out of and      directly occasioned by the same event.  However, the event need      not be limited to one state or province or states or provinces contiguous      thereto. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | As      regards riot, riot attending a strike, civil commotion, vandalism and      malicious mischief, all individual losses sustained by the Company      occurring during any period of 72 consecutive hours within the area of one      municipality or county and the municipalities or counties contiguous      thereto arising out of and directly occasioned by  the same      event.  The maximum duration of 72 consecutive hours may be      extended in respect of individual losses which occur beyond such 72      consecutive hours during the continued occupation of an assured’s premises      by strikers, provided such occupation commenced during the aforesaid      period. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 7 |  |
|--------|--|

----

|   | 3. | As      regards earthquake (the epicenter of which need not necessarily be within      the territorial confines referred to in the introductory portion of this      paragraph A) and fire following directly occasioned by the earthquake,      only those individual fire losses which commence during the period of 168      consecutive hours may be included in the Company’s “loss      occurrence.” |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | As      regards “freeze,” only individual losses directly occasioned by collapse,      breakage of glass and water damage (caused by bursting frozen pipes and      tanks) may be included in the Company’s “loss  occurrence.” |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | As      regards conflagration, brush fires and any other fires, irrespective of      origin (except as provided in subparagraphs 2 and 3 above), which spread      through trees, grassland or other vegetation, all individual losses      sustained by the Company which occur during any period of 168 consecutive      hours within a 150-mile radius of the location where the fire originated      may be included in the Company’s “loss  occurrence.” |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Except      for those “loss occurrences” referred to in subparagraph 2 of paragraph A      above, the Company may choose the date and time when any such period of      consecutive hours commences, provided that it is not earlier than the date      and time of the occurrence of the first recorded individual loss sustained      by the Company arising out of that disaster, accident or loss, and      provided that only one such period of 168 consecutive hours shall apply      with respect to one event, except for any “loss occurrence” referred to in      subparagraph 1 of paragraph A above where only one such period of 96      consecutive hours shall apply with respect to one event, regardless of the      duration of the event. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | However,      as respects those “loss occurrences” referred to in subparagraph 2 of      paragraph A above, if the disaster, accident or loss occasioned by the      event is of greater duration than 72 consecutive hours, then the Company      may divide that disaster, accident or loss into two or more “loss      occurrences,” provided that no two periods overlap and no individual loss      is included in more than one such period, and provided that no period      commences earlier than the date and time of the occurrence of the first      recorded individual loss sustained by the Company arising out of that      disaster, accident or loss. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | No      individual losses occasioned by an event that would be covered by a 96 or      72 hours clause may be included in any “loss occurrence” claimed under a      168 hours provision. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Whenever      losses sustained by the Company are reserved by the Company for an amount      greater than 50.0% of the Company’s retention under any excess layer      hereunder and/or appear likely to result in a claim under such excess      layer, the Company shall notify the Subscribing Reinsurers under that      excess layer and shall provide updates related to development of such      losses.  The Reinsurer shall have the right to participate in      the adjustment of such losses at its own  expense. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 8 |  |
|--------|--|

----

| B. | All      loss settlements made by the Company, provided they are within the terms      of this Contract and the terms of the original policy (with the exception      of loss in excess of policy limits or extra contractual obligations      coverage, if any, under this Contract), shall be binding upon the      Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be      liable upon receipt of reasonable evidence of the amount paid by the      Company. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | As      premium for each excess layer of reinsurance coverage provided by this      Contract, the Company shall pay the Reinsurer premium determined by      multiplying the amount, shown as “Annual Deposit Premium” in Schedule A      attached hereto, by the fraction calculated by dividing the Company’s      Probable Maximum Loss (“PML”) determined as of September 30, 2009, by the      amount, shown as “Original PML” in Schedule A attached hereto, subject to      a minimum premium of the amount, shown as “Minimum Premium” in Schedule A      attached hereto.  In the event this Contract is terminated in      accordance with the provisions of paragraph C of the Commencement and      Termination Article, the applicable amount determined in accordance with      this paragraph shall be prorated. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      Company shall pay the Reinsurer an annual deposit premium for each excess      layer of the amount, shown as “Annual Deposit Premium” for that excess      layer in Schedule A attached hereto, in four equal installments of the      amount, shown as “Deposit Premium Installment” for that excess layer in      Schedule A attached hereto, on July 1 and October 1 of 2009, and on      January 1 and April 1 of 2010.  However, in the event this      Contract is terminated, there shall be no deposit premium installments due      after the effective date oftermination. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | On      or before June 30, 2010, the Company shall provide a report to the      Reinsurer setting forth the premium due hereunder for each excess layer      for the term of this Contract, computed in accordance with paragraph A      above, and any additional premium due the Reinsurer or return premium due      the Company for each such excess layer shall be remitted      promptly. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 9 |  |
|--------|--|

----

| A. | The      provisions of this Article shall not be implemented unless specifically      invoked, in writing, by one of the parties to this    Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | In      the event any premium, loss or other payment due either party is not      received by the intermediary named in the Intermediary Article      (hereinafter referred to as the “Intermediary”) by the payment due date,      the party to whom payment is due may, by notifying the Intermediary in      writing, require the debtor party to pay, and the debtor party agrees to      pay, an interest penalty on the amount past due calculated for each such      payment on the last business day of each month as  follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The      number of full days which have expired since the due date or the last      monthly calculation, whichever the lesser;times |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | 1/365ths      of the six-month United States Treasury Bill rate as quoted in      The Wall Street      Journal on the first business day of the month for which the      calculation is made; times |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      amount past due, including accruedinterest. |
|--------|----|------------------------------------------------------|

| C. | The      establishment of the due date shall, for purposes of this Article, be      determined as follows: |
|----|------------------------------------------------------------------------------------------------------------|

|   | 1. | As      respects the payment of routine deposits and premiums due the Reinsurer,      the due date shall be as provided for in the applicable section of this      Contract.  In the event a due date is not specifically stated      for a given payment, it shall be deemed due 30 days after the date of      transmittal by the Intermediary of the initial billing for each such      payment. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Any      claim or loss payment due the Company hereunder shall be deemed due 10      days after the proof of loss or demand for payment is transmitted to the      Reinsurer.  If such loss or claim payment is not received within      the 10 days, interest will accrue on the payment or amount overdue in      accordance with paragraph B above, from the date the proof of loss or      demand for payment was transmitted to the  Reinsurer. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | As      respects any payment, adjustment or return due either party not otherwise      provided for in subparagraphs 1 and 2 of this paragraph C, the due date      shall be as provided for in the applicable section of this      Contract.  In the event a due date is not specifically stated      for a given payment, it shall be deemed due 10 days following transmittal      of written notification that the provisions of this Article have been      invoked. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 10 |  |
|---------|--|

----

| D. | Nothing      herein shall be construed as limiting or prohibiting a Subscribing      Reinsurer from contesting the validity of any claim, or from participating      in the defense of any claim or suit, or prohibiting either party from      contesting the validity of any payment or from initiating any arbitration      or other proceeding in accordance with the provisions of this      Contract.  If the debtor party prevails in an arbitration or      other proceeding, then any interest penalties due hereunder on the amount      in dispute shall be null and void.  If the debtor party loses in      such proceeding, then the interest penalty on the amount determined to be      due hereunder shall be calculated in accordance with the provisions set      forth above unless otherwise determined by such proceedings.  If      a debtor party advances payment of any amount it is contesting, and proves      to be correct in its contestation, either in whole or in part, the other      party shall reimburse the debtor party for any such excess payment made      plus interest on the excess amount calculated in accordance with this      Article. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Interest      penalties arising out of the application of this Article that are $1,000      or less from any party shall be waived unless there is a pattern of late      payments consisting of three or more items over the course of any 12-month      period. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The      liability of the Reinsurer shall follow that of the Company in every case      and be subject in all respects to all the general and specific      stipulations, clauses, waivers and modifications of the Company’s policies      and any endorsements thereon.  However, in no event shall this      be construed in any way to provide coverage outside the terms and      conditions set forth in thisContract. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Nothing      herein shall in any manner create any obligations or establish any rights      against the Reinsurer in favor of any third party or any persons not      parties to this Contract. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | This      Contract applies only to that portion of any policy which the Company      retains net for its own account (prior to deduction of any underlying      reinsurance specifically permitted in this Contract), and in calculating      the amount of any loss hereunder and also in computing the amount or      amounts in excess of which this Contract attaches, only loss or losses in      respect of that portion of any policy which the Company retains net for      its own account shall be included. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 11 |  |
|---------|--|

----

| B.  | The      amount of the Reinsurer’s liability hereunder in respect of any loss or      losses shall not be increased by reason of the inability of the Company to      collect from any other reinsurer(s), whether specific or general, any      amounts which may have become due from such reinsurer(s), whether such      inability arises from the insolvency of such other reinsurer(s) or      otherwise. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Whenever      the word “Dollars” or the “$” sign appears in this Contract, they shall be      construed to mean United States Dollars and all transactions under this      Contract shall be in United StatesDollars. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| A. | The      Reinsurer has agreed to allow for the purpose of paying the Federal Excise      Tax the applicable percentage of the premium payable hereon (as imposed      under Section 4371 of the Internal Revenue Code) to the extent such      premium is subject to the Federal ExciseTax. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | In      the event of any return of premium becoming due hereunder the Reinsurer      will deduct the applicable percentage from the return premium payable      hereon and the Company or its agent should take steps to recover the tax      from the United States Government. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 12 |  |
|---------|--|

----

| A. | The      Reinsurer agrees to fund its share of amounts, including but not limited      to, the Company’s ceded unearned premium and outstanding loss and loss      adjustment expense reserves (including all case reserves plus any      reasonable amount estimated to be unreported from known loss occurrences)      by: |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Clean,      irrevocable and unconditional letters of credit issued and confirmed, if      confirmation is required by the insurance regulatory authorities involved,      by a bank or banks meeting the NAIC Securities Valuation Office credit      standards for issuers of letters of credit and acceptable to said      insurance regulatory authorities;and/or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Escrow      accounts for the benefit of the Company;and/or |
|--------|----|------------------------------------------------------------|

|  | 3.  | Cash      advances; |
|--|----------|---------------------|

|   | 1. | Is      unauthorized in any state of the United States of America or the District      of Columbia having jurisdiction over the Company and if, without such      funding, a penalty would accrue to the Company on any financial statement      it is required to file with the insurance regulatory authorities involved;      or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Has      an A.M. Best Company’s rating equal to or below B++ at the inception of      this Contract. |
|--------|----|------------------------------------------------------------------------------------------------------------|

| B. | With      regard to funding in whole or in part by letters of credit, it is agreed      that each letter of credit will be in a form acceptable to insurance      regulatory authorities involved, will be issued for a term of at least one      year and will include an “evergreen clause,” which automatically extends      the term for at least one additional year at each expiration date unless      written notice of non-renewal is given to the Company not less than 30      days prior to said expiration date.  The Company and the      Reinsurer further agree, notwithstanding anything to the contrary in this      Contract, that said letters of credit may be drawn upon by the Company or      its successors in interest at any time, without diminution because of the      insolvency of the Company or the Reinsurer, but only for one or more of      the following purposes: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | To      reimburse itself for the Reinsurer’s share of unearned premiums returned      to insureds on account of policy cancellations, unless paid in cash by the      Reinsurer; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | To      reimburse itself for the Reinsurer’s share of losses and/or loss      adjustment expense paid under the terms of policies reinsured hereunder,      unless paid in cash by theReinsurer; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | To      reimburse itself for the Reinsurer’s share of any other amounts claimed to      be due hereunder, unless paid in cash by the  Reinsurer; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 13 |  |
|---------|--|

----

|  | 4. | To      fund a cash account in an amount equal to the Reinsurer’s share of      amounts, including but not limited to, any ceded unearned premium and/or      outstanding loss and loss adjustment expense reserves (including all case      reserves plus any reasonable amount estimated to be unreported from known      loss occurrences) funded by means of a letter of credit which is under      non-renewal notice, if said letter of credit has not been renewed or      replaced by the Reinsurer 10 days prior to its expiration      date; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | To      refund to the Reinsurer any sum in excess of the actual amount required to      fund the Reinsurer’s share of amounts, including but not limited to, the      Company’s ceded unearned premium and/or outstanding loss and loss      adjustment expense reserves (including all case reserves plus any      reasonable amount estimated to be unreported from known loss occurrences),      if so requested by the Reinsurer. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | In      the event of the insolvency of the Company, this reinsurance shall be      payable directly to the Company or to its liquidator, receiver,      conservator or statutory successor on the basis of the liability of the      Company without diminution because of the insolvency of the Company or      because the liquidator, receiver, conservator or statutory successor of      the Company has failed to pay all or a portion of any claim.  It      is agreed, however, that the liquidator, receiver, conservator or      statutory successor of the Company shall give written notice to the      Reinsurer of the pendency of a claim against the Company indicating the      policy or bond reinsured which claim would involve a possible liability on      the part of the Reinsurer within a reasonable time after such claim is      filed in the conservation or liquidation proceeding or in the      receivership, and that during the pendency of such claim, the Reinsurer      may investigate such claim and interpose, at its own expense, in the      proceeding where such claim is to be adjudicated, any defense or defenses      that it may deem available to the Company or its liquidator, receiver,      conservator or statutory successor.  The expense thus incurred      by the Reinsurer shall be chargeable, subject to the approval of the      Court, against the Company as part of the expense of conservation or      liquidation to the extent of a pro rata share of the benefit which may      accrue to the Company solely as a result of the defense undertaken by the      Reinsurer. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Where      two or more reinsurers are involved in the same claim and a majority in      interest elect to interpose defense to such claim, the expense shall be      apportioned in accordance with the terms of this Contract as though such      expense had been incurred by theCompany. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | It      is further understood and agreed that, in the event of the insolvency of      the Company, the reinsurance under this Contract shall be payable directly      by the Reinsurer to the Company or to its liquidator, receiver or      statutory successor, except as provided by Section 4118(a) of the New York      Insurance Law or except (1) where this Contract specifically provides      another payee of such reinsurance in the event of the insolvency of the      Company or (2) where the Reinsurer with the consent of the direct insured      or insureds has assumed such policy  obligations of the Company      as direct obligations of the Reinsurer to the payees under such policies      and in substitution for the obligations of the Company to such      payees. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 14 |  |
|---------|--|

----

| A. | As      a condition precedent to any right of action hereunder, in the event of      any dispute or difference of opinion hereafter arising with respect to      this Contract, it is hereby mutually agreed that such dispute or      difference of opinion shall be submitted to arbitration.  One      Arbiter shall be chosen by the Company, the other by the Reinsurer, and an      Umpire shall be chosen by the two Arbiters before they enter upon      arbitration, all of whom shall be active or retired disinterested      executive officers of insurance or reinsurance companies or Lloyd’s London      Underwriters.  In the event that either party should fail to      choose an Arbiter within 30 days following a written request by the other      party to do so, the requesting party may choose two Arbiters who shall in      turn choose an Umpire before entering upon arbitration.  If the      two Arbiters fail to agree upon the selection of an Umpire within 30 days      following their appointment, each Arbiter shall nominate three candidates      within 10 days thereafter, two of whom the other shall decline, and the      decision shall be made by drawinglots. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Each      party shall present its case to the Arbiters within 30 days following the      date of appointment of the Umpire.  The Arbiters shall consider      this Contract as an honorable engagement rather than merely as a legal      obligation and they are relieved of all judicial formalities and may      abstain from following the strict rules of law.  The decision of      the Arbiters shall be final and binding on both parties; but failing to      agree, they shall call in the Umpire and the decision of the majority      shall be final and binding upon both parties.  Judgment upon the      final decision of the Arbiters may be entered in any court of competent      jurisdiction. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | If      more than one reinsurer is involved in the same dispute, all such      reinsurers shall constitute and act as one party for purposes of this      Article and communications shall be made by the Company to each of the      reinsurers constituting one party, provided, however, that nothing herein      shall impair the rights of such reinsurers to assert several, rather than      joint, defenses or claims, nor be construed as changing the liability of      the reinsurers participating under the terms of this Contract from several      to joint. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Each      party shall bear the expense of its own Arbiter, and shall jointly and      equally bear with the other the expense of the Umpire and of the      arbitration.  In the event that the two Arbiters are chosen by      one party, as above provided, the expense of the Arbiters, the Umpire and      the arbitration shall be equally divided between the two      parties. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Any      arbitration proceedings shall take place at a location mutually agreed      upon by the parties to this Contract, but notwithstanding the location of      the arbitration, all proceedings pursuant hereto shall be governed by the      law of the state in which the Company has its principal      office. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 15 |  |
|---------|--|

----

| A. | It      is agreed that in the event the Reinsurer fails to pay any amount claimed      to be due hereunder, the Reinsurer, at the request of the Company, will      submit to the jurisdiction of a court of competent jurisdiction within the      United States.  Nothing in this Article constitutes or should be      understood to constitute a waiver of the Reinsurer’s rights to commence an      action in any court of competent jurisdiction in the United States, to      remove an action to a United States District Court, or to seek a transfer      of a case to another court as permitted by the laws of the United States      or of any state in the UnitedStates. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | Further,      pursuant to any statute of any state, territory or district of the United      States which makes provision therefor, the Reinsurer hereby designates the      party named in its Interests and Liabilities Agreement, or if no party is      named therein, the Superintendent, Commissioner or Director of Insurance      or other officer specified for that purpose in the statute, or his      successor or successors in office, as its true and lawful attorney upon      whom may be served any lawful process in any action, suit or proceeding      instituted by or on behalf of the Company or any beneficiary hereunder      arising out of this Contract. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Whenever      a notice, statement, report or any other written communication is required      by this Contract, unless otherwise specified, such notice, statement,      report or other written communication may be transmitted by certified or      registered mail, nationally or internationally recognized express delivery      service, personal delivery, electronic mail, or facsimile.  With      the exception of notices of termination, first class mail is also      acceptable. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | The      use of any of the following shall constitute a valid execution of this      Contract or any amendments thereto: |
|----|--------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Paper      documents with an original inksignature; |
|--------|----|-----------------------------------------------------|

| Page 16 |  |
|---------|--|

----

|   | 2. | Facsimile      or electronic copies of paper documents showing an original ink signature;      and/or |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | 3. | Electronic      records with an electronic signature made via an electronic      agent.  For the purposes of this Contract, the terms “electronic      record,” “electronic signature” and “electronic agent” shall have the      meanings set forth in the Electronic Signatures in Global and National      Commerce Act of 2000 or any amendmentsthereto. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | This      Contract may be executed in one or more counterparts, each of which, when      duly executed, shall be deemed anoriginal. |
|----|-------------------------------------------------------------------------------------------------------------------------------------|

|                                          |
|------------------------------------------|
| Federated      National InsuranceCompany |

| Page 17 |  |
|---------|--|

----

|                                        |   | First     |      |   | Second     |   |       | Third      |   |   | Fourth      |   |   | Fifth           |        |
|---------------------------------------------|--------|-----------|-----------|--------|------------|--------|------------|------------|--------|--------|-------------|--------|--------|-----------------|-------------|
|                                        |   | Excess    |      |   | Excess     |   |       | Excess     |   |   | Excess      |   |   | Excess          |        |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |
| Company’s      Retention              |   | $         | 5,000,000 |   |       | $      | 19,447,762 |       |   | $      | 58,916,306  |   |   | $               | 83,573,570  |   |   | $ | 103,573,570 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Reinsurer’s      Per Occurrence Limit |   | $         | 4,447,762 |   |       | $      | 39,468,544 |       |   | $      | 24,657,264  |   |   | $               | 20,000,000  |   |   | $ | 8,000,000 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Reinsurer’s      Term Limit           |   | $         | 8,895,524 |   |       | $      | 78,937,088 |       |   | $      | 49,314,528  |   |   | $               | 40,000,000  |   |   | $ | 16,000,000 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Original      PML                           |   | $         | 9,447,762 |   |       | $      | 58,916,306 |       |   | $      | 305,488,950 |   |   | $               | 325,488,950 |   |   | $ | 333,488,950 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Return      Time                            |   | 3.90-year |      |   | 12.66-year |   |       | 82.64-year |   |   | 90.91-year  |   |   | 95.24      year |        |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Minimum      Premium                        |   | $         | 2,668,657 |   |       | $      | 11,998,437 |       |   | $      | 3,945,162   |   |   | $               | 1,920,000   |   |   | $ | 672,000 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Annual      Deposit Premium                 |   | $         | 3,335,824 |   |       | $      | 14,998,048 |       |   | $      | 4,931,452   |   |   | $               | 2,400,000   |   |   | $ | 840,000 |   |
|                                        |   |      |      |   |       |   |       |       |   |   |        |   |   |            |        |   |   |   |   |   |
| Deposit      Premium Installments           |   | $         | 833,956   |   |       | $      | 3,749,512  |       |   | $      | 1,232,863   |   |   | $               | 600,000     |   |   | $ | 210,000 |   |

| Schedule A |  |
|------------|--|

----

----

| 1. | This      Reinsurance does not cover any loss or liability accruing to the      Reassured, directly or indirectly and whether as Insurer or Reinsurer,      from any Pool of Insurers or Reinsurers formed for the purpose of covering      Atomic or Nuclear Energy risks. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Without      in any way restricting the operation of paragraph (1) of this Clause, this      Reinsurance does not cover any loss or liability accruing to the      Reassured, directly or indirectly and whether as Insurer or Reinsurer,      from any insurance against Physical Damage (including business      interruption or consequential loss arising out of such Physical Damage)      to: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |    I. | Nuclear      reactor power plants including all auxiliary property on the site,      or |
|--|----------------------|-----------------------------------------------------------------------------------------|

|  |   II. | Any      other nuclear reactor installation, including laboratories handling      radioactive materials in connection with reactor installations, and      “critical facilities” as such, or |
|--|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | III. | Installations      for fabricating complete fuel elements or for processing substantial      quantities of “special nuclear material,” and for reprocessing, salvaging,      chemically separating, storing or disposing of “spent” nuclear fuel or      waste materials, or |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | IV. | Installations      other than those listed in paragraph (2) III above using substantial      quantities of radioactive isotopes or other products of nuclear      fission. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Without      in any way restricting the operations of paragraphs (1) and (2) hereof,      this Reinsurance does not cover any loss or liability by radioactive      contamination accruing to the Reassured, directly or indirectly, and      whether as Insurer or Reinsurer, from any insurance on property which is      on the same site as a nuclear reactor power plant or other nuclear      installation and which normally would be insured therewith except that      this paragraph (3) shall notoperate |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (a) | where      Reassured does not have knowledge of such nuclear reactor power plant or      nuclear installation, or |
|--|-----|-------------------------------------------------------------------------------------------------------------------|

|  | (b) | where      said insurance contains a provision excluding coverage for damage to      property caused by or resulting from radioactive contamination, however      caused.  However on and after 1st January 1960 this      sub-paragraph (b) shall only apply provided the said radioactive      contamination exclusion provision has been approved by the Governmental      Authority having jurisdictionthereof. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Without      in any way restricting the operations of paragraphs (1), (2) and (3)      hereof, this Reinsurance does not cover any loss or liability by      radioactive contamination accruing to the Reassured, directly or      indirectly, and whether as Insurer or Reinsurer, when such radioactive      contamination is a named hazard specifically insured    against. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | It      is understood and agreed that this Clause shall not extend to risks using      radioactive isotopes in any form where the nuclear exposure is not      considered by the Reassured to be the primary  hazard. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | The      term “special nuclear material” shall have the meaning given it in the      Atomic Energy Act of 1954 or by any law amendatory  thereof. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Reassured      to be sole judge of whatconstitutes: |
|----|-----------------------------------------------------|

|  | (a)  | substantial      quantities, and |
|--|-----------|----------------------------------|

|  | (b)  | the      extent of installation, plant orsite. |
|--|-----------|------------------------------------------------|

|  | (a)  | all      policies issued by the Reassured on or before 31st December 1957 shall be      free from the application of the other provisions of this Clause until      expiry date or 31st December 1960 whichever first occurs whereupon all the      provisions of this Clause shallapply. |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b)  | with      respect to any risk located in Canada policies issued by the Reassured on      or before 31st December 1958 shall be free from the application of the      other provisions of this Clause until expiry date or 31st December 1960      whichever first occurs whereupon all the provisions of this Clause shall      apply. |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | Involves      violence against one or more persons,or |
|--------|----|-------------------------------------------------------|

|   | 2. | Involves      damage to property; or |
|--------|----|--------------------------------------|

|   | 3. | Endangers      life other than the person committing the action;  or |
|--------|----|----------------------------------------------------------------------|

|   | 4. | Creates      a risk to health or safety of the public or a section of the public;      or |
|--------|----|-------------------------------------------------------------------------------------------|

|   | 5. | Is      designed to interfere with or disrupt an electronic  system. |
|--------|----|----------------------------------------------------------------------|

----

|                             |
|----------------------------------|
| ACE      Tempest ReinsuranceLtd. |

----

| 1. | In lieu of the provisions of      Article X - Loss Occurrence - the following shall apply: |
|----|--------------------------------------------------------------------------------------------|

| Page 1 of4 |  |
|------------|--|

----

| 2. | The      following Articles shall be added to and made part of this      Contract: |
|----|------------------------------------------------------------------------------------|

|  | A.  | The      Reinsurer will establish a Trust Fund or provide a Letter of Credit (LOC)      issued by a bank and containing provisions acceptable to the insurance      regulatory authorities having jurisdiction over the Company as security      for the Reinsurer’s Obligations: |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B.  | The      term ‘Obligations’ shall mean: |
|--|----------|-----------------------------------------------------|

|   | 1. | During      the term of this Contract, (a) the Reinsurer’s term limit as defined under      the Reinstatement Article, less (b) any unpaid reinsurance premium (net of      brokerage and Federal Excise Tax payable) under this Contract, and less      (c) any amounts already recovered from the  Reinsurer; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | On      the expiration of this Contract, if this Contract is renewed, the      Reinsurer’s ‘Obligations’ shall be determined as the aggregate of the      Reinsurer’s share of the following: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a. | Losses      and allocated loss adjustment expense paid by the Company, but not      recovered from the Reinsurer; plus |
|--|----|------------------------------------------------------------------------------------------------------------------------|

|  | b.  | The      Company’s reserves for losses reported and outstanding;    plus |
|--|----------|--------------------------------------------------------------------------------|

|  | c. | The      Company’s reserves for losses incurred but not reported - to be mutually      agreed in good faith; plus |
|--|----|-------------------------------------------------------------------------------------------------------------------------|

|  | d. | The      Company’s reserves for allocated loss adjustment expense      outstanding. |
|--|----|-------------------------------------------------------------------------------------------|

|  | C. | On      December 15, 2009, collateral will be released consistent with the      provisions of the Collateral ReleaseArticle. |
|--|----|------------------------------------------------------------------------------------------------------------------------------|

|  | D.  | The      Company and the Reinsurer further agree, notwithstanding anything to the      contrary in this Contract, that said Trust Fund or LOC may be drawn upon      by the Company or its successors in interest at any time, without      diminution because of the insolvency of the Company or the Reinsurer, but      only for one or more of the followingpurposes: |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | To      reimburse itself for the Reinsurer’s share of unearned premiums on the      account of cancellations or adjustment premiums, unless paid in cash by      the Reinsurer; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | To      reimburse itself for the Reinsurer’s share of losses and/or loss      adjustment expense paid under the terms of this Contract, unless paid in      cash by the Reinsurer; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Page 2 of      4 |  |
|-----------------------|--|

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|   | 3. | To      fund a cash account in the amount equal to the Reinsurer’s Obligations, if      said Trust Fund or LOC has not been renewed or replaced by the Reinsurer      10 days prior to its expiration date;and/or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | To      refund to the Reinsurer any sum in excess of the actual amount required to      fund the Reinsurer’s Obligations, if so requested by the      Reinsurer. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A.  | As      of December 15, 2009 or 31 days from the date of loss, whichever is later,      the parties shall determine how much collateral will be required to be      maintained within the Trust Fund.  This calculation will be      performed on a monthly basis until all liability has been      extinguished. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B.  | For      the purposes of paragraph C below, ‘Loss Amount’ shall be defined as the      sum of: |
|--|----------|------------------------------------------------------------------------------------------------------------|

|   | 1. | Losses      and allocated loss adjustment expense paid by the Company;      plus |
|--------|----|----------------------------------------------------------------------------------|

|   | 2. | Reserves      for losses reported and outstanding;plus |
|--------|----|--------------------------------------------------------|

|   | 3. | Reserves      for allocated loss adjustment expense reported and outstanding;      plus |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 4. | Reserves      for losses incurred but not reported - to be mutually agreed in good      faith. |
|--------|----|------------------------------------------------------------------------------------------------|

|  | C.  | For      each potentially covered loss hereunder, the Company shall multiply the      Loss Amount by the appropriate Buffer Loss Multiplier from the table      below, based on the number of days which have elapsed since the      event.  The product of this calculation shall be defined as the      Buffered Loss Amount (‘BLA’). |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Buffer Loss Multiplier table |   |
|---------------------------------------------|--------|
| Number of                              |   |   |   |   |   |   |   |   |   |
| days since                             |   |   |   |   |   |   |   |   |   |
| loss event                             |   | Windstorm |   |   | Earthquake |   |   | Other event |   |
| 0      to 90                                |   |   | 180 | % |   |   | 250 | % |   |   | 200 | % |
| 91      to 180                              |   |   | 145 | % |   |   | 200 | % |   |   | 165 | % |
| 181      to 270                             |   |   | 125 | % |   |   | 175 | % |   |   | 140 | % |
| 271      to 365                             |   |   | 110 | % |   |   | 150 | % |   |   | 115 | % |
| 366      to 455                             |   |   | 100 | % |   |   | 125 | % |   |   | 100 | % |
| 456      to 545                             |   |   | 100 | % |   |   | 110 | % |   |   | 100 | % |
| Thereafter                                  |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

| Page 3 of      4 |  |
|-----------------------|--|

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|  | D.  | With      respect to each event for which the BLA exceeds the Company’s retention as      defined under the Retention and Limit Article, an amount equal to the      Reinsurer’s share of the lesser of (1) the amount by which the BLA exceeds      the Company’s retention as defined under the Retention and Limit Article,      or (2) the Reinsurer’s per occurrence limit as defined under the Retention      and Limit Article, shall be deemed to equal the event specific collateral      amount at the calculation date (the ‘Event Collateral      Amount’      or the ‘ECA’). |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | E.  | In      respect of all events for which an ECA exceeds $0, the aggregate amount of      the required collateral to be held in the Trust Fund shall be equal to the      amount by which the lesser of (1) the sum of the ECAs, or (2) the      Reinsurer’s term limit as defined under the Reinstatement Article, exceeds      amounts paid to date by the Reinsurer. Such aggregate amount shall be      deemed to be the ‘Aggregate Collateral Obligation’ or the      ‘ACO.’ |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | F.  | At      any month-end at which there is any security on deposit  in the      Trust Fund, the Company shall perform this calculation within 10 days      after the end of such month and report to the Reinsurer and Trustee named      in the Trust Agreement information supporting any BLA, ECA and ACO amounts      greater than $0.  The Assets in the Trust Fund will be adjusted      monthly based on this calculation.  In the event the balance of      the Trust Fund is greater than the amount required to fully fund the      Obligations, as defined by the ACO, the Company shall promptly, within 10      days, authorize a return of such excess amount to the Reinsurer.      Similarly, in the event the balance of the Trust Fund falls below the      aoumt required to fully fund the Obligations, the Reinsurer shall      promptly, within 10 days, add assets to the Trust Fund to eliminate such      shortfall.” |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |
|------------------------------------------|
| Federated      National InsuranceCompany |

|               |
|--------------------|
| Actua      Re Ltd. |

| Page 4 of      4 |  |
|-----------------------|--|

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|                                          |
|-----------------------------------------------|
| Allianz      Risk Transfer AG (BermudaBranch) |

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|                               |
|------------------------------------|
| Ariel      Reinsurance CompanyLtd. |

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|                          |
|-------------------------------|
| DaVinci      Reinsurance Ltd. |

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|                            |
|---------------------------------|
| Everest      ReinsuranceCompany |

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|                                                 |
|------------------------------------------------------|
| Flagstone      Reassurance Suisse SA - BermudaBranch |

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|                                           |
|------------------------------------------------|
| Hiscox      Insurance Company (Bermuda)Limited |

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|                             |
|----------------------------------|
| Montpelier      Reinsurance Ltd. |

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|                                 |
|--------------------------------------|
| Munich      Reinsurance America,Inc. |

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|                                    |
|-----------------------------------------|
| Platinum      Underwriters Bermuda,Ltd. |

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|                            |
|---------------------------------|
| QBE      ReinsuranceCorporation |

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|                               |
|------------------------------------|
| Renaissance      Reinsurance, Ltd. |

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|                                  |
|---------------------------------------|
| Torus      Insurance (Bermuda)Limited |

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|                       |
|----------------------------|
| Amlin      Bermuda Limited |

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|                                                        |
|-------------------------------------------------------------|
| Liberty      Syndicates LIB 4472 (Paris OfficeUnderwriting) |

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