Document:

ex10_12.htm

    
      

    

    
      EXHIBIT
10.1.2

      

      Restated

      

      Quota
Share Reinsurance Retrocessional Agreement

      

      By
and Between

      

      Employers
Mutual Casualty Company

      

      And

      

      EMC
Reinsurance Company

      

      This
Restated Quota Share Reinsurance Retrocessional Agreement (“Restated Agreement”)
is hereby made by and between Employers Mutual Casualty Company (EMCC) and EMC
Reinsurance Company (EMC Re).

      

      WHEREAS, EMCC and EMC Re have
been operating under the terms of a Quota Share Reinsurance Retrocessional
Agreement (the “Agreement”) between the parties since January 1, 1981,
and

      

      WHEREAS, there have been
numerous addendums, amendments and endorsements to the Agreement over the years
and the parties now desire to restate the terms and coverage of the Agreement
using language which conforms with industry practices; and

      

      WHEREAS, the Inter-Company
Committees of the boards of directors of EMCC and EMC Re have approved certain
changes to the terms and coverage of the Agreement, which are to be incorporated
into this Restated Agreement and to be effective January 1, 2006, as
follows:

      

      
        	
                 
      

              	
                1.

              	
                EMC
      Re’s retention, or cap, on losses assumed per event will increase from
      $1,500,000 to $2,000,000;

              

      

      
        	
                 
      

              	
                2.

              	
                The
      cost of the $2,000,000 cap on losses assumed per event will be treated as
      a reduction to written premiums rather than commission
      expense;

              

      

      
        	
                 
      

              	
                3.

              	
                EMC
      Re will not directly pay for the outside reinsurance protection that EMCC
      purchases to protect itself from catastrophic losses on the assumed
      reinsurance business it retains in excess of the cap and will instead pay
      a higher premium rate (previously accounted for as commission);
      and

              

      

      
        	
                 
      

              	
                4.

              	
                EMC
      Re will assume all foreign exchange risk/benefit associated with contracts
      incepting on January 1, 2006 and thereafter that are subject to this
      Restated Agreement.

              

      

      

      NOW THEREFORE, in
consideration of the mutual covenants and conditions contained herein, the
parties hereby agree as follows:

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      I.            
AGREEMENT

      

      
        	
                 
      

              	
                1.

              	
                EMCC
      shall cede, and EMC Re shall accept as reinsurance, One-Hundred Percent
      (100%) of all:

              

      

      
        	
                 
      

              	
                a.

              	
                “Gross Net Written
      Premium” less a reinsurance protection cap charge of Ten and
      One-Half Percent (10.5%) of “Gross Net Written Premium”,

              

      

      
        	
                 
      

              	
                b.

              	
                “Net Loss” incurred,
      except for loss arising from an “Occurrence” in excess
      of Two Million Dollars
($2,000,000),

              

      

      
        	
                 
      

              	
                c.

              	
                Underwriting
      expense on reinsurance contracts,

              

      

      
        	
                 
      

              	
                d.

              	
                on
      reinsurance contracts incepting on or after January 1, 2006,
      and

              

      

      
        	
                 
      

              	
                e.

              	
                Gain
      or loss on foreign currency on reinsurance contracts incepting on or after
      January 1, 2006,

              

      

      

      arising
out of “Subject to
Cession” reinsurance contracts (“Policy” or “Policies”).

      

      
        	
                 
      

              	
                2.

              	
                The
      maximum liability transferred to EMC Re by EMCC for loss resulting from
      any one “Occurrence”
      that occurred in a prior calendar year will be subject to the
      reinsurance protection cap limits in effect during the applicable calendar
      year, as follows:

              

      

      

      
        	
                 
      

              	
                a.

              	
                1981
      – 1992:

              	
                No
      occurrence cap.

              

      

      
        
          	
                   
      

                	
                  b.

                	
                  1993
      – 1996:

                	
                  One
      Million Dollars ($1,000,000) occurrence
cap.

                

        

      

      
        	
                 
      

              	
                c.

              	
                1997
      – 2005:

              	
                One
      Million Five Hundred Thousand Dollars ($1,500,000) occurrence
      cap.

              

      

      

      
        	
                 
      

              	
                3.

              	
                All
      premium, loss, and expense shall be settled at least quarterly through the
      EMCC inter-company closing process, with settlement of amounts due to be
      completed no later than forty-five (45) days after the end of the
      applicable quarter.

              

      

      

      II.          
 DEFINITIONS

      

      
        	
                 
      

              	
                1.

              	
                “Extra-contractual
      Obligations” means those liabilities not covered under any other
      provision of this Restated Agreement, including but not limited to
      compensatory, consequential, punitive, or exemplary damages, other than
      that which is a “Loss
      Excess of Policy Limits”, together with any legal costs and
      expenses incurred in connection therewith, paid as damages or in
      settlement or in judgment by EMCC as a result of a demand, claim or an
      action by its insured, its insured's assignee, or other third party, which
      demand, claim or action alleges negligence, gross negligence, fraud, bad
      faith or other tortuous behavior or conduct on the part of EMCC in the
      handling, adjustment, rejection or settlement  of a claim under
      a Policy or bond covered by this Restated Agreement.  An “Extra-contractual
      Obligation” shall be deemed to have occurred on the same date as
      the loss covered or alleged to be covered under the
      Policy.  Notwithstanding anything stated herein, this Restated
      Agreement shall not apply to any Extra-contractual obligation incurred by
      EMCC as a result of any fraudulent and/or criminal act directed against
      EMCC by any officers or directors of EMCC acting individually or
      collectively or in collusion with any individual or corporation or any
      other organization or party involved in the presentation, defense or
      settlement of any claim covered
hereunder.

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                2.

              	
                “Ex-gratia Settlements” shall mean
      payments made for which EMCC has no legal obligation under the terms and
      conditions of any Policy, but which are made solely to maintain the good
      will of EMCC.

              

      

      

      
        	
                 
      

              	
                3.

              	
                “Gross Net Written
      Premium” is defined as written premium booked during the applicable
      calendar year and before reduction for the reinsurance cap protection
      charge.

              

      

      

      
        	
                 
      

              	
                4.

              	
                “Loss Excess of Policy
      Limits” means any amount of loss, together with any legal costs and
      expenses incurred in connection therewith, paid as damages or in
      settlement or in judgment by EMCC in excess of its Policy limits, but
      otherwise within the coverage terms of the Policy, as a result of a
      demand, claim or an action by its insured, its insured's assignee, or
      other third party, which demand, claim or action alleges gross negligence,
      negligence, fraud, bad faith or other tortuous behavior or conduct on the
      part of EMCC in the handling of a claim under a Policy or bond covered by
      this Restated Agreement, in rejecting a settlement within the Policy
      limits, in discharging or failing to discharge a duty to defend or prepare
      the defense in the trial of an action against its insured, or in
      discharging or failing to discharge its duty to prepare or prosecute an
      appeal consequent upon such an action.  A “Loss Excess of Policy
      Limits” shall be deemed to have occurred on the same date as the
      loss covered or alleged to be covered under the Policy.  For the
      avoidance of doubt, the decision by EMCC to settle a claim for an amount
      in excess of the Policy limit when EMCC has reasonable basis to believe
      that it may have liability to its insured or assignee on the claim will be
      deemed a “Loss Excess of
      Policy Limits”.

              

      

      

      
        	
                 
      

              	
                5.

              	
                “Net Loss”
      means:

              

      

      
        	
                 
      

              	
                a.

              	
                The
      sum total of:

              

      

      
        	
                 
      

              	
                (1)

              	
                Contractual
      indemnity loss under the coverage terms of the Policies that is reported
      to EMCC,

              

      

      
        	
                 
      

              	
                (2)

              	
                Associated
      Allocated Loss Expense,

              

      

      
        	
                 
      

              	
                (3)

              	
                “Extra-contractual
      Obligations” and

              

      

      
        	
                 
      

              	
                (4)

              	
                “Loss Excess of Policy
      Limits”

              

      

      

      that is
paid (or imminently payable) by EMCC in settlement of claims or in satisfaction
of judgments rendered on account of those claims, after deduction of all net
subrogation, salvage and other recoveries, and

      

      
        	
                 
      

              	
                (5)

              	
                Any
      additional case reserves (ACRs) or additional incurred but not reported
      reserves (IBNR) established by EMCC on “Subject to Cession”
      contracts.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Inter-company
      reinsurance with respect to the original ceding companies, not to include
      this Restated Agreement, shall be disregarded in calculating “Net
    Loss”.

              

      

      

      
        	
                 
      

              	
                c.

              	
                All
      subrogation, salvage, recoveries, or payments recovered or received
      subsequent to a “Net
      Loss” settlement under this Restated Agreement shall be applied as
      if recovered or received prior to payment or settlement, and all necessary
      adjustments shall be made by the parties to this Restated
      Agreement.

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                d.

              	
                Nothing
      in this definition, however, shall be construed to mean that “Net Loss” is not
      recoverable from EMC Re until the “Net Loss” of EMCC has
      been absolutely ascertained.

              

      

      

      
        	
                 
      

              	
                6.

              	
                “Occurrence” is defined
      as follows:

              

      

      
        	
                 
      

              	
                a.

              	
                Except
      as otherwise provided herein, an “Occurrence” means an
      accident, disaster, casualty or happening, or series of accidents,
      disasters, casualties or happenings arising out of or following on one
      event, regardless of the number of interests insured or the number of
      Policies responding or whether the claims arising out of the “Occurrence” are made
      under Policies issued on an “occurrence” and/or “claims made” or other
      basis.  Except where specifically provided otherwise in this
      Restated Agreement, each “Occurrence” shall be
      deemed to take place in its entirety as of the earliest date of loss as
      determined by any Policy responding to the “Occurrence”.  Any
      claims made under an Extended Reporting Period Endorsement or any other
      extended reporting and/or discovery period under any Policy shall, for the
      purposes of this Restated Agreement, be considered to be made on the last
      day of the Policy period immediately preceding the extended reporting
      and/or discovery period.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Continuous
      Or Repeated Injurious Exposure.  As respects liability (bodily
      injury and property damage) other than Automobile and Products-Completed
      Operations Hazard coverage liability under any Policy, and at the option
      of EMCC, the term “Occurrence” shall also
      mean the sum of all damages for bodily injury and property damage
      sustained by each insured during a period of twelve (12) consecutive
      months arising out of a continuous or repeated injurious exposure to
      substantially the same general conditions.  For purposes of this
      definition, the date of loss shall be deemed to be the inception or
      renewal date of the Policy to which payment is
  charged.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Aggregate
      Basis. With respect to Policies written on an aggregate basis (not subject
      to an aggregate limit) and at the option of EMCC, the term “Occurrence” shall also
      mean all loss or losses, whether or not related or arising from the same
      event or occurrence, that are subject to and covered under an aggregate
      basis Policy (or, if such losses arise under two or more Policies written
      on an aggregate basis), during the twelve (12) month policy period of that
      Policy (or if two or more such Policies are issued to the same risk,
      during any twelve (12) month policy period of the Policy chosen by
      EMCC).  The date of the “Occurrence” shall be
      the inception date of such new or renewal policy period (or if such losses
      arise under two or more Policies, the inception, anniversary or policy
      renewal date of the Policy chosen by EMCC).  The term “policy
      year” refers to each annual period of the Policy which is written on an
      aggregate basis. To be certain, EMCC, at its option, shall be entitled to
      extract any “Net
      Loss” arising from an “Occurrence” as defined
      above from the provisions of this paragraph to apply the basic per
      occurrence reinsurance coverage of this Restated
  Agreement.

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                d.

              	
                Occupational
      Disease or Cumulative Injury.  Each case of Occupational Disease
      or Cumulative Injury suffered by an employee of an EMCC insured and
      covered by a Workers’ Compensation or similar Policy shall be deemed to be
      a separate and distinct “Occurrence”.  The
      date of such “Occurrence” shall be
      deemed to be the date of loss under the Policy as determined by
      EMCC.

              

      

      

      
        	
                 
      

              	
                7.

              	
                “Subject to Cession”
      shall mean all voluntary assumed reinsurance contracts unless
      specifically coded by EMCC “not subject to cession” at the time the
      synopsis (coverage summary) is set up. “Subject to Cession”
      shall not include non-affiliated or involuntary contracts unless
      specifically coded by EMCC “subject to cession” at the time the synopsis
      (coverage summary) is set up.

              

      

      

      III.           CONTINUOUS
CONTRACT

      

      This
contract is continuous until canceled by mutual agreement by the parties, but
may be terminated by either party as of the end of any calendar year upon ninety
(90) days prior written notice.

      

      IV.           TERM

       

      
        	
                 
      

              	
                1.

              	
                This
      Restated Agreement shall take effect at 12:01 a.m., Central Standard Time,
      January 1, 2006, with respect to the accounting for “Subject to Cession”
      reinsurance contracts booked after such time and
  date.

              

      

       

      
        	
                 
      

              	
                2.

              	
                At
      expiration of this Restated Agreement, EMC Re shall remain liable for all
      Policies covered by this Restated Agreement that are in force at
      expiration, until the termination, expiration or renewal of such Policies,
      whichever occurs first, plus any discovery or extended reporting
      periods.

              

      

       

      
        	
                 
      

              	
                3.

              	
                However,
      at expiration of this Restated Agreement, EMCC shall have the option to
      require a return of the ceded unearned premium, net of ceding commission,
      as of the date of expiration, on business in force at that date, in which
      event EMC Re shall be released from liability for losses occurring or
      claims made, as applicable, after
expiration.

              

      

       

      
        	
                 
      

              	
                4.

              	
                In
      the event this Restated Agreement expires on a run-off basis, EMC Re’s
      liability hereunder shall continue if EMCC is required by statute or
      regulation to continue coverage, until the earliest date on which EMCC may
      cancel the Policy.

              

      

       

      
        V.           
TERRITORY

      

       

      The
territorial limits of this contract shall be identical with those of the
original reinsurance contracts.

       

      VI.           EXCLUSIONS

       

       This
Restated Agreement shall not apply to and specifically excludes:

       

      
        	
                 
      

              	
                1.

              	
                Losses
      excluded by the attached Nuclear Incident Exclusion Clauses – BRMA 35 A, B
      and D - G.

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                2.

              	
                Liability
      of EMCC 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, that provides for any
      assessment of or payment or assumption by EMCC of part or all of any
      claim, debt, charge, fee, or other obligation of an insurer, or its
      successors or assigns, that has been declared by any competent authority
      to be insolvent, or that is otherwise deemed unable to meet any claim,
      debt, charge, fee or other obligation in whole or in
  part.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Foreign
      exchange risk on Policies incepting prior to January 1,
    2006.

              

      

       

      VII.         LOSS
SETTLEMENTS

       

      All loss
settlements made by EMCC within the terms of this Restated Agreement or by way
of compromise, including any “Ex-gratia Settlements”, shall be
binding upon EMC Re, and EMC Re agrees to pay or allow, as the case may be, its
share of each such settlement in accordance with this Restated Agreement.
 

       

      VIII.        SALVAGE
AND SUBROGATION

       

      
        	
                 
      

              	
                1.

              	
                Salvages
      and all recoveries, including recoveries under all reinsurances that inure
      to the benefit of this Restated Agreement (whether recovered or not),
      shall be first deducted from such loss to arrive at the amount of
      liability attaching hereunder.

              

      

       

      
        	
                 
      

              	
                2.

              	
                All
      salvages, recoveries or payments recovered or received subsequent to loss
      settlement hereunder shall be applied as if recovered or received prior to
      the aforesaid settlement, and all necessary adjustments shall be made by
      the parties hereto.

              

      

       

      IX.       
   NO THIRD PARTY RIGHTS

       

      This
Restated Agreement is solely between EMCC and EMC Re, and in no instance shall
any insured, claimant, or other third party have any rights under this Restated
Agreement except as may be expressly provided otherwise herein.

       

      X.         
  INSOLVENCY

      

      
        	
                 
      

              	
                1.

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

              

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      
        	
                 
      

              	
                2.

              	
                Payments
      by EMC Re as above set forth shall be made directly to EMCC or to its
      conservator, liquidator, or statutory successor, except where the contract
      of insurance or reinsurance specifically provides another payee of such
      reinsurance or except as provided by applicable law and regulation (such
      as subsection (a) of section 4118 of the New York Insurance laws) in the
      event of the insolvency of EMCC.

              

      

      

      
        	
                 
      

              	
                3.

              	
                In
      the event of the insolvency of EMCC, the liquidator, receiver, conservator
      or statutory successor of EMCC shall give written notice to EMC Re of the
      pendency of a claim against the insolvent EMCC on the Policy or Policies
      reinsured within a reasonable time after such claim is filed in the
      insolvency proceeding and during the pendency of such claim any reinsurer
      may investigate such claim and interpose, at its own expense, in the
      proceeding where such claim is to be adjudicated any defense or defenses
      which it may deem available to EMCC or its liquidator, receiver,
      conservator or statutory successor.

              

      

      

      
        	
                 
      

              	
                4.

              	
                Where
      two or more reinsurers are involved in the same claim and a majority in
      interest elects to interpose defense to such claim, the expense shall be
      apportioned in accordance with the terms of this Restated Agreement as
      though such expense had been incurred by
EMCC.

              

      

      

      
        	
                 
      

              	
                5.

              	
                The
      original insured or policyholder shall not have any rights against EMC Re
      which are not specifically set forth in this Restated Agreement, or in a
      specific agreement between EMC Re and the original insured or
      policyholder.

              

      

      

       

      XI.          DISPUTES

       

      Any
disputes arising out of the interpretation of this contract shall be submitted
to the Inter-Company Committees of the boards of directors of EMCC and EMC Re
for final and binding resolution.

       

       

      In
WITNESS WHEREOF, the parties hereto, by their respective duly authorized
officers, have executed this Restated Agreement on the dates recorded
below.

       

      

      
        	
                EMC
      Reinsurance Company

              	 
      	
                Employers
      Mutual Casualty Company

              
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Ronnie D. Hallenbeck

              	 
      	
                By:

              	
                /s/
      Bruce G. Kelley

              
	 
      	
                Ronnie
      D. Hallenbeck

              	 
      	 
      	
                Bruce
      G. Kelley

              
	 
      	
                President

              	 
      	 
      	
                President
      & CEO

              
	 
      	 
      	 
      	 
      	 
      
	
                Date:

              	
                December
      30, 2005

              	 
      	
                Date:

              	
                December
      30, 2005

              

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      Amendment
to the

      

      Restated
Quota Share Reinsurance Retrocessional Agreement

      

      By
and Between

      

      Employers
Mutual Casualty Company

      

      And

      

      EMC
Reinsurance Company

      

      This amendment is made and entered by
and between Employers Mutual Casualty Company, an Iowa corporation (“EMCC”), and
EMC Reinsurance Company (“EMC Re”), an Iowa corporation, for the purpose of
amending the Restated Quota Share Reinsurance Retrocessional Agreement executed
by the parties hereto on December 30, 2005.

      

      The parties hereby amend and replace
subparagraph “b” of Paragraph 1 of Section I of the Agreement as
follows:

      

      
        	
                 
      

              	
                b.

              	
                “Net Loss” incurred,
      except for loss arising from an “Occurrence” in excess
      of Three Million Dollars
($3,000,000),

              

      

      

      The
parties hereby amend Paragraph 2 of Section I of the Agreement by adding a new
subparagraph “d”, to read as follows:

      

      
        	
                 
      

              	
                d.

              	
                2006
      – 2009:  Two Million Dollars ($2,000,000) occurrence
      cap.

              

      

      

      IN WITNESS WHEREOF, the parties hereto,
by their respective duly authorized officers, have executed this Amendment on
the dates recorded below, to be retroactively effective on January 1,
2010.

       

      
        	
                EMC Reinsurance Company

              	 
      	
                Employers Mutual Casualty
      Company

              
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Ronnie D. Hallenbeck

              	 
      	
                By:

              	
                /s/
      Bruce G. Kelley

              
	 
      	
                Ronnie
      D. Hallenbeck

              	 
      	 
      	
                Bruce
      G. Kelley

              
	 
      	
                President

              	 
      	 
      	
                President
      & CEO

              
	 
      	 
      	 
      	 
      	 
      
	
                Date:

              	
                February
      3, 2010

              	 
      	
                Date:

              	
                February
      3, 2010

              

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      BRMA 35
A

      NUCLEAR
INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE

      U.S.A.

      

      
        	
                (1)

              	
                This
      reinsurance does not cover any loss or liability accruing to the Reassured
      as a member of, or subscriber to, any association of insurers or
      reinsurers formed for the purpose of covering nuclear energy risks or as a
      direct or indirect reinsurer of any such member, subscriber or
      association.

              

      

      

      
        	
                (2)

              	
                Without
      in any way restricting the operation of paragraph (1) of this Clause it is
      understood and agreed that for all purposes of this reinsurance all the
      original policies of the Reassured (new, renewal and replacement) of the
      classes specified in Clause II of this paragraph (2) from the time
      specified in Clause III in this paragraph (2) shall be deemed to include
      the following provision (specified as the Limited Exclusion
      Provision):

              

      

      

      Limited
Exclusion Provision.*

      

      
        
          	
                	
                  I.

                	
                  It
      is agreed that the policy does not apply under any liability coverage, to
      injury, sickness, disease, death or destruction (bodily injury or property
      damage with respect to which an insured under the policy is also an
      insured under a nuclear energy liability policy issued by Nuclear Energy
      Liability Insurance Association, Mutual Atomic Energy Liability
      Underwriters or Nuclear Insurance Association of Canada, or would be an
      insured under any such policy but for its termination upon exhaustion of
      its limit of liability).

                

        

      

      

      
        
          	
                	
                  II.

                	
                  Family
      Automobile Policies (liability only), Special Automobile Policies (private
      passenger automobiles, liability only), Farmers Comprehensive Personal
      Liability Policies (liability only), Comprehensive Personal Liability
      Policies (liability only) or policies of a similar nature; and the
      liability portion of combination forms related to the four classes of
      policies stated above, such as the Comprehensive Dwelling Policy and the
      applicable types of Homeowners
Policies.

                

        

      

      

      
        
          	
                	
                  III.

                	
                  The
      inception dates and thereafter of all original policies as described in II
      above, whether new, renewal or replacement, being policies which either
      (a) become effective on or after 1st May, 1960, or (b) become effective
      before that date and contain the Limited Exclusion Provision set out
      above; provided this paragraph III shall not be applicable to Family
      Automobile Policies, Special Automobile Policies, or policies or
      combination policies of a similar nature, issued by the Reassured on New
      York risks, until 90 days following approval of the Limited Exclusion
      Provision by the Governmental Authority having jurisdiction
      thereof.

                

        

      

      

      

      
        Page 1 of
5

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
        BRMA 35
A

      

      

      
        	
                (3)

              	
                Except
      for those classes of policies specified in Clause II of paragraph (2) and
      without in any way restricting the operation of paragraph (1) of this
      Clause, it is understood and agreed that for all purposes of this
      reinsurance the original liability policies of the Reassured (new, renewal
      and replacement) affording the following
  coverages:

              

      

      

      Owners,
Landlords and Tenants Liability, Contractual Liability, Elevator Liability,
Owners or Contractors (including railroad) Protective Liability, Manufacturers
and Contractors Liability, Product Liability, Professional and Malpractice
Liability, Storekeepers Liability, Garage Liability, Automobile Liability
(including Massachusetts Motor Vehicle or Garage Liability)

      

      shall be
deemed to include, with respect to such coverages, from the time specified in
Clause V of this paragraph (3), the following provision (specified as the Broad
Exclusion Provision):

      

      

      Broad
Exclusion Provision.*

      

      It is
agreed that the policy does not apply:

      

      
        
          	
                	
                  I.

                	
                  Under
      any Liability Coverage, to injury, sickness, disease, death or destruction
      (bodily injury or property
damage

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                with
      respect to which an insured under the policy is also an insured under a
      nuclear energy liability policy issued by Nuclear Energy Liability
      Insurance Association, Mutual Atomic Energy Liability Underwriters or
      Nuclear Insurance Association of Canada, or would be an insured under any
      such policy but for its termination upon exhaustion of its limit of
      liability; or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                resulting
      from the hazardous properties of nuclear material and with respect to
      which (1) any person or organization is required to maintain financial
      protection pursuant to the Atomic Energy Act of 1954, or any law
      amendatory thereof, or (2) the insured is, or had this policy not been
      issued would be, entitled to indemnity from the United States of America,
      or any agency thereof, under any agreement entered into by the United
      States of America, or any agency thereof, with any person or
      organization).

              

      

      

      

      
        Page 2 of
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          10

          
            

          

        

        
           

        

      

      
        BRMA 35
A

      

      

      
        
          	
                	
                  II.

                	
                  Under
      any Medical Payments Coverage, or under any Supplementary Payments
      Provision relating to immediate medical or surgical relief (first aid), to
      expenses incurred with respect to bodily injury, sickness, disease or
      death (bodily injury resulting from the hazardous properties of nuclear
      material and arising out of the operation of a nuclear facility by any
      person or organization).

                

        

      

      

      
        
          	
                	
                  III.

                	
                  Under
      any Liability Coverage to injury, sickness, disease, death or destruction
      (bodily injury or property damage resulting from the hazardous properties
      of nuclear material, if

                

        

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      nuclear material (1) is at any nuclear facility owned by, or operated by
      or on behalf of, an insured or (2) has been discharged or dispersed
      therefrom;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      nuclear material is contained in spent fuel or waste at any time
      possessed, handled, used, processed, stored, transported or disposed of by
      or on behalf of an insured; or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      (injury, sickness, disease, death or destruction (bodily injury or
      property damages out of the furnishing by an insured of services,
      materials, parts or equipment in connection with the planning,
      construction, maintenance, operation or use of any nuclear facility, but
      if such facility is located within the United States of America, its
      territories, or possessions or Canada, this exclusion (c) applies only to
      injury to or destruction of property at such nuclear facility (property
      damage to such nuclear facility and any property
  thereat)).

              

      

      

      
        
          	
                	
                  IV.

                	
                  As
      used in this endorsement:

                

        

      

      

      “Hazardous
properties" include radioactive, toxic or explosive properties; "nuclear
material" means source material, special nuclear material or byproduct material;
"source material," "special nuclear material," and "byproduct material" have the
meanings given them in the Atomic Energy Act of 1954 or in any law amendatory
thereof; "spent fuel" means any fuel element or fuel component, solid or liquid,
which has been used or exposed to radiation in a nuclear reactor; "waste" means
any waste material (1) containing byproduct material and (2) resulting from the
operation by any person or organization of any nuclear facility included within
the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear
facility" means:

      

      

      Page 3 of
5

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      BRMA 35
A

      

      
        	
                 
      

              	
                (a)

              	
                any
      nuclear reactor,

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any
      equipment or device designed or used for (1) separating the isotopes of
      uranium or plutonium, (2) processing or utilizing spent fuel, or (3)
      handling, processing or packaging
waste,

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      equipment or device used for the processing, fabricating or alloying of
      special nuclear material if at any time the total amount of such material
      in the custody of the insured at the premises where such equipment or
      device is located consists of or contains more than 25 grams of plutonium
      or uranium 233 or any combination thereof, or more than 250 grams of
      uranium 235,

              

      

      

      
        	
                 
      

              	
                (d)

              	
                any
      structure, basin, excavation, premises or place prepared or used for the
      storage or disposal of waste, and includes the site on which any of the
      foregoing is located, all operations conducted on such site and all
      premises used for such operations; "nuclear  reactor" means any
      apparatus designed or used to sustain nuclear fission in a self-supporting
      chain reaction or to contain a critical mass of fissionable
      material;

              

      

      

      (With
respect to injury to or destruction of property, the word "injury" or
"destruction" includes all forms of radioactive contamination of property and
"property damage" includes all forms of radioactive contamination of
property..

      

      
        
          	
                	
                  V.

                	
                  The
      inception dates and thereafter of all original policies affording
      coverages specified in this paragraph V, whether new, renewal or
      replacement, being policies which become effective on or after 1st May,
      1960, provided this paragraph V shall not be applicable
  to:

                

        

      

      

      (i)Garage
and Automobile Policies issued by the Reassured on New York risks,
or

      

      (ii)statutory
liability insurance required under Chapter 90, General Laws of Massachusetts,
until 90 days following approval of the Broad Exclusion Provision by the
Governmental Authority having jurisdiction thereof.

      

      

      Page 4 of
5

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      BRMA 35
A

      

      
        	
                (4)

              	
                Without
      in any way restricting the operation of paragraph (1) of this Clause, it
      is understood and agreed that paragraphs (2) and (3) above are not
      applicable to original liability policies of the Reassured in
      Canada  and that with respect to such policies this Clause shall
      be deemed to include the Nuclear Energy Liability Exclusion Provisions
      adopted by the Canadian Underwriters' Association of the Independent
      Insurance Conference of Canada.

              

      

      

      *NOTE:  The
words printed in italics in the Limited Exclusion Provision and in the Broad
Exclusion Provision shall apply only in relation to original liability policies
which include a Limited Exclusion Provision or a Broad Exclusion Provision
containing those words.

      

      

      Page 5 of
5

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      BRMA 35
B

      NUCLEAR
INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE –

      REINSURANCE

      U.S.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 not
operate:

              

      

      

      
        
          	
                	
                  (a)

                	
                  where
      Reassured does not have knowledge of such nuclear reactor power plant or
      nuclear installation, or

                

        

      

      

      

      Page 1 of
2

      January
1, 1990

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      BRMA 35
B

      

      
        
          	
                	
                  (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 jurisdiction
      thereof.

                

        

      

      

      
        	
                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 what
constitutes:

              

      

      

      
        
          	
                	
                  (a)

                	
                  substantial
      quantities, and

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  the
      extent of installation, plant or
site.

                

        

      

      

      Note:  Without
in any way restricting the operation of paragraph (1) hereof, it is understood
and agreed that:

      

      
        
          	
                	
                  (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 shall
apply,

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  with
      respect to any risk located in Canada policies issued by the Company 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.

                

        

      

      

      

      Page 2 of
2

      January
1, 1990

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      BRMA 35
D

      NUCLEAR
INCIDENT EXCLUSION CLAUSE - LIABILITY – REINSURANCE

      CANADA

      

      
        	
                1.

              	
                This
      Agreement does not cover any loss or liability accruing to the Reinsured
      as a member of, or subscriber to, any association of insurers or
      reinsurers formed for the purpose of covering nuclear energy risks or as a
      direct or indirect reinsurer of any such member, subscriber, or
      association.

              

      

      

      
        	
                2.

              	
                Without
      in any way restricting the operation of paragraph 1 of his clause it is
      agreed that for all purposes of this Agreement all the original liability
      contracts of the Reinsured, whether new, renewal or replacement, of the
      following classes, namely,

              

      

      

      
        Personal
Liability

      

      
        Farmers'
Liability

      

      
        Storekeepers'
Liability

      

      

      which
become effective on or after 31st December 1984, shall be deemed to include,
from their inception dates and thereafter, the following provision:

      

      
        Limited
Exclusion Provision.

      

      

      This
Policy does not apply to bodily injury or property damage with respect to which
the Insured is also insured under a contract of nuclear energy liability
insurance (whether the Insured is unnamed in such contract and whether or not it
is legally enforceable by the Insured) issued by the Nuclear Insurance
Association of Canada or any other group or pool of insurers or would be an
Insured under any such policy but for its termination upon exhaustion of its
limits of liability.

      

      With
respect to property, loss of use of such property shall be deemed to be property
damage.

      

      
        	
                3.

              	
                Without
      in any way restricting the operation of paragraph 1 of this clause it is
      agreed that for all purposes of this Agreement all the original liability
      contracts of the Company, whether new, renewal or replacement, of any
      class whatsoever (other than Personal Liability, Farmers' Liability,
      Storekeepers' Liability or Automobile Liability contracts), which become
      effective on or after 31st December 1984, shall be deemed to include, from
      their inception dates and thereafter, the following
    provision:

              

      

      

      

      Page 1 of
3

      January
1, 1990

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      BRMA 35
D

      

      Broad
Exclusion Provision.

      

      It is
agreed that this Policy does not apply:

      

      
        
          	
                	
                  (a)

                	
                  to
      liability imposed by or arising under The Nuclear Liability Act;
      nor

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  to
      bodily injury or property damage with respect to which an Insured under
      this Policy is also insured under a contract of nuclear energy liability
      insurance (whether the Insured is unnamed in such contract and whether or
      not it is legally enforceable by the Insured) issued by the Nuclear
      Insurance Association of Canada or any other insurer or group or pool of
      insurers or would be an Insured under any such policy but for its
      termination upon exhaustion of its limit of liability;
  nor

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  to
      bodily injury or property damage resulting directly or indirectly from the
      nuclear energy hazard arising
from:

                

        

      

      

      
        	
                 
      

              	
                (i)

              	
                the
      ownership, maintenance, operation or use of a nuclear facility by or on
      behalf of an Insured;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the
      furnishing by an Insured of services, materials, parts or equipment in
      connection with the planning, construction, maintenance, operation or use
      of any nuclear facility; and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                the
      possession, consumption, use, handling, disposal or transportation of
      fissionable substances or of other radioactive material (except
      radioactive isotopes, away from a nuclear facility, which have reached the
      final stage of fabrication so as to be usable for any scientific, medical,
      agricultural, commercial or industrial purpose) used, distributed, handled
      or sold by an Insured.

              

      

      

      
        As used
in this Policy:

      

      

      
        	
                1.

              	
                The
      term "nuclear energy hazard" means the radioactive, toxic, explosive or
      other hazardous properties of radioactive
  material;

              

      

      

      

      Page 2 of
3

      January
1, 1990

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      BRMA 35
D

      

      
        	
                2.

              	
                The
      term "radioactive material" means uranium, thorium, plutonium, neptunium,
      their respective derivatives and compounds, radioactive isotopes of other
      elements and any other substances that the Atomic Energy Control Board
      may, by regulation, designate as being prescribed substances capable of
      releasing atomic energy, or as being requisite for the production, use or
      application of atomic energy;

              

      

      

      
        	
                3.

              	
                The
      term "nuclear facility" means:

              

      

      

      
        
          	
                	
                  (a)

                	
                  any
      apparatus designed or used to sustain nuclear fission in a self-supporting
      chain reaction or to contain a critical mass of plutonium, thorium and
      uranium or any one or more of
them;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  any
      equipment or device designed or used for (i) separating the isotopes of
      plutonium, thorium and uranium or any one or more of them, (ii) processing
      or utilizing spent fuel, or (iii) handling, processing or packaging
      waste;

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  any
      equipment or device used for the processing, fabricating or alloying of
      plutonium, thorium or uranium enriched in the isotope uranium 233 or in
      the isotope uranium 235, or any one or more of them if at any time the
      total amount of such material in the custody of the Insured at the
      premises where such equipment or device is located consists of or contains
      more than 25 grams of plutonium or uranium 233 or any combination thereof,
      or more than 250 grams of uranium
235;

                

        

      

      

      
        
          	
                	
                  (d)

                	
                  any
      structure, basin, excavation, premises or place prepared or used for the
      storage or disposal of waste radioactive material; and includes the site
      on which any of the foregoing is located, together with all operations
      conducted thereon and all premises used for such
    operations.

                

        

      

      

      
        	
                4.

              	
                The
      term "fissionable substance" means any prescribed substance that is, or
      from which can be obtained, a substance capable of releasing atomic energy
      by nuclear fission.

              

      

      

      
        	
                5.

              	
                With
      respect to property, loss of use of such property shall be deemed to be
      property damage.

              

      

      

      

      Page 3 of
3

      January
1, 1990

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      BRMA 35
E

      NUCLEAR
INCIDENT EXCLUSION CLAUSE PHYSICAL DAMAGE AND

      LIABILITY
(BOILER AND MACHINERY POLICIES) - REINSURANCE - U.S.A.

      

      
        	
                (1)

              	
                This
      reinsurance does not cover any loss or liability accruing to the Reassured
      as a member of, or subscriber to, any association of insurers or
      reinsurers formed for the purpose of covering nuclear energy risks or as a
      direct or indirect reinsurer of any such member, subscriber or
      association.

              

      

      

      
        	
                (2)

              	
                Without
      in any way restricting the operation of paragraph (1) of this Clause it is
      understood and agreed that for all purposes of this reinsurance all
      original Boiler and Machinery Insurance or Reinsurance contracts of the
      Reassured shall be deemed to include the following provisions of this
      paragraph;

              

      

      

      This
Policy does not apply to "loss," whether it be direct or indirect, proximate or
remote

      

      
        
          	
                	
                  (a)

                	
                  from
      an Accident caused directly or indirectly by nuclear reaction, nuclear
      radiation or radioactive contamination, all whether controlled or
      uncontrolled; or

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  from
      nuclear reaction, nuclear radiation or radioactive contamination, all
      whether controlled or uncontrolled, caused directly or indirectly by,
      contributed to or aggravated by an
Accident.

                

        

      

      

      
        	
                3.

              	
                However,
      it is agreed that loss arising out of the use of Radioactive Isotopes in
      any form is not hereby excluded from reinsurance
    protection.

              

      

      

      
        	
                4.

              	
                Without
      in any way restricting the operation of paragraph (1) hereof, it is
      understood and agreed that

              

      

      

      
        
          	
                	
                  (a)

                	
                  all
      policies issued by the Reassured effective on or before 30th April, 1958,
      shall be free from the application of the other provisions of this Clause
      until expiry date or 30th April, 1961, whichever first occurs, whereupon
      all the provisions of this Clause shall
apply,

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  with
      respect to any risk located in Canada policies issued by the Reassured
      effective on or before 30th June, 1958, shall be free from the application
      of the other provisions of this Clause until expiry date of 30th June,
      1961, whichever first occurs, whereupon all the provisions of this Clause
      shall apply.

                

        

      

      

      

      Page 1 of
1

      January
1, 1990

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      BRMA 35
F

      NUCLEAR
INCIDENT EXCLUSION CLAUSE

      PHYSICAL
DAMAGE AND LIABILITY

      (BOILER
AND MACHINERY POLICIES) - REINSURANCE - CANADA

      

      
        	
                (1)

              	
                This
      reinsurance does not cover any loss or liability accruing to the Reassured
      as a member of, or subscriber to, any association of insurers or
      reinsurers formed for the purpose of covering nuclear energy risks or as a
      direct or indirect reinsurer of any such member, subscriber or
      association.

              

      

      

      
        	
                (2)

              	
                Without
      in any way restricting the operation of paragraph (1) of this Clause it is
      understood and agreed that for all purposes of this reinsurance all
      original Boiler and Machinery Insurance or Reinsurance contracts of the
      Reassured shall be deemed to include the following provisions of this
      paragraph;

              

      

      

      This
Policy does not apply to "loss," whether it be direct or indirect, proximate or
remote

      

      
        
          	
                	
                  (a)

                	
                  from
      an Accident caused directly or indirectly by nuclear reaction, nuclear
      radiation or radioactive contamination, all whether controlled or
      uncontrolled; or

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  from
      nuclear reaction, nuclear radiation or radioactive contamination, all
      whether controlled or uncontrolled, caused directly or indirectly by,
      contributed to or aggravated by an
Accident.

                

        

      

      

      
        	
                (3)

              	
                However,
      it is agreed that loss arising out of the use of Radioactive Isotopes in
      any form is not hereby excluded from reinsurance
    protection.

              

      

      

      
        	
                (4)

              	
                Without
      in any way restricting the operation of paragraph (1) hereof, it is
      understood and agreed that policies issued by the Reassured effective 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, 1961,
      whichever first occurs, whereupon all the provisions of this Clause shall
      apply.

              

      

      

      

      Page 1 of
1

      January
1, 1990

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      

      BRMA 35
G

      NUCLEAR
INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE

      REINSURANCE

      CANADA

      

      
        	
                1.

              	
                This
      Agreement does not cover any loss or liability accruing to the Reinsured
      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 Agreement does not cover any loss or liability accruing to
      the Reinsured, 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:

              

      

      

      
        
          	
                	
                  (1)

                	
                  Nuclear
      reactor power plants including all auxiliary property on the site,
      or

                

        

      

      

      
        
          	
                	
                  (2)

                	
                  Any
      other nuclear reactor installation, including laboratories handling
      radioactive materials in connection with reactor installations, and
      critical facilities as such,
or

                

        

      

      

      
        
          	
                	
                  (3)

                	
                  Installations
      for fabricating complete fuel elements or for processing substantial
      quantities of prescribed substances, and for reprocessing, salvaging,
      chemically separating, storing or disposing of spent nuclear fuel or waste
      materials, or

                

        

      

      

      
        
          	
                	
                  (4)

                	
                  Installations
      other than those listed in (3) above using substantial quantities of
      radioactive isotopes or other products of nuclear
  fission.

                

        

      

      

      
        	
                3.

              	
                Without
      in any way restricting the operation of paragraphs 1 and 2 of this clause,
      this Agreement does not cover any loss or liability by radioactive
      contamination accruing to the Reinsured, 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 not operate.

              

      

      

      
        
          	
                	
                  (a)

                	
                  where
      the Reinsured does not have knowledge of such nuclear reactor power plant
      or nuclear installation, or

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  where
      the said insurance contains a provision excluding coverage for damage to
      property caused by or resulting from radioactive contamination, however
      caused.

                

        

      

      

      

      Page 1 of
2

      February
19, 1993

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      BRMA 35
G

      

      
        	
                4.

              	
                Without
      in any way restricting the operation of paragraphs 1, 2 and 3 of this
      clause, this Agreement does not cover any loss or liability by radioactive
      contamination accruing to the Reinsured, directly or indirectly, and
      whether as Insurer or Reinsurer, when such radioactive contamination is a
      named hazard specifically insured
against.

              

      

      

      
        	
                5.

              	
                This
      clause shall not extend to risks using radioactive isotopes in any form
      where the nuclear exposure is not considered by the Reinsured to be the
      primary hazard.

              

      

      

      
        	
                6.

              	
                The
      term "prescribed substances" shall have the meaning given it by the Atomic
      Energy Control Act R.S.C. 1974 or by any law amendatory
      thereof.

              

      

      

      
        	
                7.

              	
                Reinsured
      to be sole judge of what
constitutes:

              

      

      

      
        
          	
                	
                  (a)

                	
                  substantial
      quantities, and

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  the
      extent of installation, plant or
site.

                

        

      

      

      
        	
                8.

              	
                Without
      in any way restricting the operation of paragraphs 1, 2, 3 and 4 of this
      clause, this Agreement does not cover any loss or liability accruing to
      the Reinsured, directly or indirectly, and whether as Insurer or Reinsurer
      caused:

              

      

      

      
        
          	
                	
                  (a)

                	
                  by
      any nuclear incident as defined in the Nuclear Liability Act or any other
      nuclear liability act, law or statute, or any law amendatory thereof or
      nuclear explosion, except for ensuing loss or damage which results
      directly from fire, lightning or explosion of natural, coal or
      manufactured gas;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  by
      contamination by radioactive
material.

                

        

      

      

      NOTE:  Without
in any way restricting the operation of paragraphs 1, 2, 3 and 4 of this clause,
paragraph 8 of this clause shall only apply to all original contracts of the
Reinsured, whether new, renewal or replacement, which become effective on or
after December 31, 1992.

      

      

      Page 2 of
2

      February
19, 1993

       

    

     

    22FORM
OF WARRANT

     

    THIS
WARRANT AND THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THESE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO
THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL, SATISFACTORY TO THE
CORPORATION, THAT AN EXEMPTION THEREFROM IS AVAILABLE.

     

    NEW
GENERATION BIOFUELS HOLDINGS, INC.

    WARRANT

    TO
PURCHASE COMMON STOCK

     

    Issue
Date:        ____________,
2010

    

    THIS WARRANT IS TO CERTIFY
THAT, (the “Purchaser”), is
entitled to purchase from New Generation Biofuels Holdings, Inc., a Florida
corporation (the “Company”), ________ shares of the Company’s common stock, par
value $.001 per share (the “Common Stock”), at
the Exercise Price (as defined below).

    

    Section
1.        Certain
Definitions.

    

    As used
in this Warrant, unless the context otherwise requires:

    

    “Business Day” shall
mean any day other than Saturday, Sunday or other day on which commercial banks
in The City of New York are authorized by law to remain closed.

     

    “Exercise Price” shall
mean $0.90 per share, as adjusted from time to time pursuant to Section 3
hereof.

     

    “Person” shall mean an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a
government or any department or agency thereof.

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended.

     

    “Warrant” shall mean
this Warrant and all additional or new warrants issued upon division or
combination of, or in substitution for, this Warrant. All such additional or new
warrants shall at all times be identical as to terms and conditions and date,
except as to the number of shares of Warrant Stock for which they may be
exercised.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Warrantholder” shall
mean the Purchaser, as the initial holder of this Warrant, and its nominees,
successors or assigns, including any subsequent holder of this Warrant to whom
it has been legally transferred.

     

    “Warrant Stock” shall
mean the shares of the Company’s Common Stock purchasable by the holder of this
Warrant upon the exercise of this Warrant.

     

    Section
2.        Exercise of
Warrant.

     

    (a)           At
any time after the six month anniversary of the Issue Date but prior to the
fifth anniversary of the Issue Date (the “Expiration Date”),
the Purchaser may at any time and from time to time exercise this Warrant, in
whole or in part.

     

    (b)           (i)           The
Warrantholder shall exercise this Warrant by means of delivering to the Company
at its office identified in Section 14 hereof (i)
a written notice of exercise, including the number of shares of Warrant Stock to
be delivered pursuant to such exercise, (ii) this Warrant and (iii) payment
equal to the Exercise Price in accordance with Section 2(b)(ii). In
the event that any exercise shall not be for all shares of Warrant Stock
purchasable hereunder, a new Warrant registered in the name of the
Warrantholder, of like tenor to this Warrant and for the remaining shares of
Warrant Stock purchasable hereunder, shall be delivered to the Warrantholder
within ten (10) days after any such exercise. Such notice of exercise shall be
in the Subscription Form set out at the end of this Warrant.

     

    (ii)          The
Warrantholder shall pay the Exercise Price to the Company either by cash,
certified check to the order of the Company or wire transfer to an account
specified by the Company.  At any time after the six month anniversary
of the Issue Date, in addition to the method of payment set forth in the
immediately preceding sentence and in lieu of any cash payment required thereby,
this Warrant may also be exercised at such time by means of a “cashless
exercise” in which the Warrantholder shall be entitled to receive a certificate
for the number of shares of Warrant Stock computed using the following
formula:

     

    X = Y (A-B)

     A

    

    
      
        	
              	
                Where 
      (X) =

              	
                the
      number of shares of Warrant Stock to be issued to the
      Warrantholder;

              

      

    

     

    
      	
            	
                     
           (Y) = 

            	
              the
      number of shares of Warrant Stock issuable upon exercise of thisWarrant in
      accordance with the terms of this Warrant by means of a cashexercise
      rather than a cashless exercise;

            

    

     

    
      	
            	
                      
          (A) = 

            	
              the
      Market Price (as defined below);
and

            

    

     

    
      	
            	
                       
         (B) = 

            	
              the
      Exercise Price of this Warrant, as adjusted from time to
    time.

            

    

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    Solely
for the purposes of this paragraph, Market Price shall be calculated as of the
Trading Day (defined for this purpose as any day on which the equity securities
markets are generally open for trading) immediately preceding the date which the
subscription form attached hereto is deemed to have been sent to the Company
pursuant to Section
14 hereof (such preceding date, the “Valuation Date”). As
used herein, the phrase “Market Price” shall
mean (i) if the Warrant Stock is listed or admitted for trading on a national
securities exchange, an automated quotation system or the Over the Counter
Bulletin Board, the last reported sale price per share of the Warrant Stock on
the Valuation Date, or, in case no such reported sale takes place on such day or
is reported, then the average of the last reported per share bid and ask prices
for shares of the Warrant Stock on such date (or if such bid and ask prices are
not available on such date, the most recent preceding date), in either case as
officially reported by such securities exchange, quotation system or Bulletin
Board on which the Common Stock is listed or admitted to trading, (ii) if not so
listed or admitted for trading, the fair market value of a share of the Warrant
Stock as determined by the Company’s board of directors in good faith, or (iii)
if such exercise is in connection with a merger or consolidation of the Company
in which the Company is not the survivor or in which the Warrant Stock is
exchanged for cash or other securities or a sale of all or substantially all of
the assets of the Company (collectively, a “Sale”), the implied
price per share of the Warrant Stock resulting from such Sale.

     

    (c)        The
Company shall not effect the exercise of this Warrant, and the Warrantholder
shall not have the right to exercise this Warrant, to the extent that after
giving effect to such exercise, such Person (together with such Person’s
affiliates) would beneficially own in excess of 9.99% (the “Maximum Percentage”)
of the shares of Common Stock outstanding immediately after giving effect to
such exercise.  For purposes of the foregoing sentence, the aggregate
number of shares of Common Stock beneficially owned by such Person and its
affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock which would be
issuable upon (A) exercise of the remaining, unexercised portion of this Warrant
beneficially owned by such Person and its affiliates and (B) exercise or
conversion of the unexercised or unconverted portion of any other securities of
the Company beneficially owned by such Person and its affiliates (including,
without limitation, any convertible notes or convertible preferred stock or
warrants) subject to a limitation on conversion or exercise analogous to the
limitation contained herein.  Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act.  For
purposes of this Warrant, in determining the number of outstanding shares of
Common Stock, the Warrantholder may rely on the number of outstanding shares of
Common Stock as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q,
Current Report on Form 8-K or other public filing with the Securities and
Exchange Commission (“SEC”), as the case
may be, (2) a more recent public announcement by the Company or (3) any other
notice by the Company or the transfer agent setting forth the number of shares
of Common Stock outstanding.  For any reason at any time, upon the
written or oral request of the Warrantholder, where such request indicates that
it is being made pursuant to this Warrant, the Company shall within two Business
Days confirm orally and in writing to the Warrantholder the number of shares of
Common Stock then outstanding.  In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion
or exercise of securities of the Company by the Warrantholder and its affiliates
since the date as of which such number of outstanding shares of Common Stock was
reported.  By written notice to the Company, the Warrantholder may
increase or decrease the Maximum Percentage to any other percentage not in
excess of 9.99% specified in such notice; provided, that any
such increase will not be effective until the 61st day
after such notice is delivered to the Company.

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    (d)        Upon
exercise of this Warrant and delivery of the Subscription Form with proper
payment relating thereto, the Company shall cause to be executed and delivered
to the Warrantholder a certificate or certificates representing the aggregate
number of fully-paid and nonassessable shares of Warrant Stock issuable upon
such exercise.

     

    (e)        All
shares of Warrant Stock issuable upon the exercise of this Warrant in accordance
with the terms hereof will not be registered with the SEC and will not be
transferable or resalable by any subscribers except as permitted pursuant to
registration or exemption under the Securities Act.  Rule 144 provides
that all non-affiliates who have held restricted securities of an SEC reporting
company for at least six months and have not had an affiliate relationship with
the issuer during the preceding three months may sell their securities without
restriction or limitation, other than that the issuer must be in compliance with
the rule’s current public information requirements during the six months
following satisfaction of the six-month holding period
requirement.  It also provides that all non-affiliates who have held
restricted shares of an SEC reporting company for more than one year, may freely
sell the securities without regard to any Rule 144 conditions.  The
Company will undertake all reasonable efforts to comply with Rule 144’s current
information requirement, including compliance with the filing and reporting
requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended, (the “Exchange
Act”).

     

    (f)         The
stock certificate or certificates for Warrant Stock to be delivered in
accordance with this Section 2 shall be in
such denominations as may be specified in said notice of exercise and shall be
registered in the name of the Warrantholder or such other name or names as shall
be designated in said notice. Such certificate or certificates shall be deemed
to have been issued and the Warrantholder or any other person so designated to
be named therein shall be deemed to have become the holder of record of such
shares, including to the extent permitted by law the right to vote such shares
or to consent or to receive notice as shareholders, as of the time said notice
is delivered to the Company as aforesaid.

     

    (g)        The
Company shall pay all expenses payable in connection with the preparation, issue
and delivery of stock certificates under this Section 2; provided, however, that the
Warrantholder shall be responsible for all transfer taxes resulting from the
fact that any certificate issued in respect of Warrant Stock is not in the name
of the Warrantholder.

     

    (h)        All
shares of Warrant Stock issuable upon the exercise of this Warrant in accordance
with the terms hereof shall be validly issued, fully paid and nonassessable, and
free from all liens and other encumbrances thereon, other than liens or other
encumbrances created by the Warrantholder or restrictions upon transfer under
federal or state securities laws.

     

    (i)         In
no event shall any fractional share of Warrant Stock of the Company be issued
upon any exercise of this Warrant. If, upon any exercise of this Warrant, the
Warrantholder would, except as provided in this paragraph, be entitled to
receive a fractional share of Warrant Stock, then the Company shall deliver in
cash to such holder an amount equal to such fractional
interest.

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    Section
3.        Adjustment of Exercise Price
and Warrant Stock.

     

    (a)        If,
at any time prior to the Expiration Date, the number of outstanding shares of
Common Stock is (i) increased by a stock dividend payable in shares of Warrant
Stock or by a subdivision or split-up of shares of Common Stock, or (ii)
decreased by a combination of shares of Common Stock, then, following the record
date fixed for the determination of holders of Common Stock entitled to receive
the benefits of such stock dividend, subdivision, split-up, or combination, the
Exercise Price shall be adjusted to a new amount equal to the product of (A) the
Exercise Price in effect on such record date, and (B) the quotient obtained by
dividing (x) the number of shares of Warrant Stock into which this Warrant would
be exercisable on such record date (without giving effect to the event referred
to in the foregoing clause (i) or (ii)), by (y) the number of shares of Warrant
Stock which would be outstanding immediately after the event referred to in the
foregoing clause (i) or (ii), if this Warrant had been exercised immediately
prior to such record date.

     

    (b)        Upon
each adjustment of the Exercise Price as provided in Section 3(a),
the Warrantholder shall thereafter be entitled to subscribe for and purchase, at
the Exercise Price resulting from such adjustment, the number of shares of
Warrant Stock equal to the product of (i) the number of shares of Warrant Stock
into which this Warrant would be exercisable prior to such adjustment and (ii)
the quotient obtained by dividing (A) the Exercise Price existing prior to such
adjustment by (B) the new Exercise Price resulting from such
adjustment.

     

    Section
4.        Division and
Combination.

     

    This
Warrant may be divided or combined with other Warrants upon presentation at the
aforesaid office of the Company, together with a written notice specifying the
names and denominations in which new Warrants are to be issued, signed by the
Warrantholder or its agent or attorney. The Company shall pay all expenses in
connection with the preparation, issue and delivery of Warrants under this Section 4. The
Company agrees to maintain at its aforesaid office books for the registration of
the Warrants.

     

    Section
5.        Reclassification,
Etc.

     

    In case
of any reclassification or change of the outstanding Warrant Stock of the
Company (other than as a result of a subdivision, combination or stock
dividend), or in case of any consolidation of the Company with, or merger of the
Company into, another corporation or other business organization (other than a
consolidation or merger in which the Company is the continuing corporation and
which does not result in any reclassification or change of the outstanding
Common Stock of the Company) at any time prior to the Expiration Date, then, as
a condition of such reclassification, reorganization, change, consolidation or
merger, lawful provision shall be made, and duly executed documents evidencing
the same from the Company or its successor shall be delivered to the
Warrantholder, so that the Warrantholder shall have the right prior to the
Expiration Date to purchase, at a total price not to exceed that payable upon
the exercise of this Warrant, the kind and amount of shares of stock and other
securities and property receivable upon such reclassification, reorganization,
change, consolidation or merger by a holder of the number of shares of Warrant
Stock of the Company which might have been purchased by the Warrantholder
immediately prior to such reclassification, reorganization, change,
consolidation or merger, and in any such case appropriate provisions shall be
made with respect to the rights and interest of the Warrantholder to the end
that the provisions hereof (including provisions for the adjustment of the
Exercise Price and of the number of shares purchasable upon exercise of this
Warrant) shall thereafter be applicable in relation to any shares of stock and
other securities and property thereafter deliverable upon exercise
hereof.

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

     

    Section
6.        Reservation and Authorization
of Capital Stock.

     

    The
Company shall, at all times on and after the date hereof, reserve and keep
available for issuance such number of its authorized but unissued shares of
Common Stock as will be sufficient to permit the exercise in full of all
outstanding Warrants.

     

    Section
7.        Rights of
Shareholders.

     

    Nothing
contained herein shall be construed to confer upon the holder of this Warrant,
as such, any of the rights of a shareholder of the Company or any right to vote
for the election of directors or upon any matter submitted to shareholders at
any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance of stock, reclassification of
stock, change of par value or change of stock to no par value, consolidation,
merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until the Warrant shall
have been exercised and the certificates representing the Warrant Stock shall
have been issued, as provided herein.

     

    Section
8.        Stock and Warrant
Books.

     

    The
Company will not at any time, except upon dissolution, liquidation or winding
up, close its stock books or warrant books so as to result in preventing or
delaying the exercise of any Warrant.

     

    Section
9.        Limitation of
Liability.

     

    No
provisions hereof, in the absence of affirmative action by the Warrantholder to
purchase Warrant Stock hereunder, shall give rise to any liability of the
Warrantholder to pay the Exercise Price or as a shareholder of the Company
(whether such liability is asserted by the Company or creditors of the
Company).

     

    Section
10.      Transfer

     

    This
Warrant may be transferred only upon the written consent of the Company, which
approval shall not be unreasonably withheld or delayed. Any Warrants issued upon
the transfer of this Warrant shall be numbered and shall be registered in a
Warrant Register as they are issued. The Company shall be entitled to treat the
registered holder of any Warrant on the Warrant Register as the owner in fact
thereof for all purposes and shall not be bound to recognize any equitable or
other claim to, or interest in, such Warrant on the part of any other person,
and shall not be liable for any registration of transfer of Warrants that are
registered or to be registered in the name of a fiduciary or the nominee of a
fiduciary unless made with the actual knowledge that a fiduciary or nominee is
committing a breach of trust in requesting such registration or transfer, or
with the knowledge of such facts that its participation therein amounts to bad
faith. This Warrant shall be transferable only on the books of the Company upon
delivery thereof duly endorsed by the Holder or by his duly authorized attorney
or representative, or accompanied by proper evidence of succession, assignment,
or authority to transfer. In all cases of transfer by an attorney, executor,
administrator, guardian, or other legal representative, duly authenticated
evidence of his or its authority shall be produced. Upon any registration of
transfer, the Company shall deliver a new Warrant or Warrants to the person
entitled thereto. This Warrant may be exchanged, at the option of the Holder
thereof, for another Warrant, or other Warrants of different denominations, of
like tenor and representing in the aggregate a like amount, upon surrender to
the Company or its duly authorized agent. Notwithstanding the foregoing, the
Company shall have no obligation to cause Warrants to be transferred on its
books to any person if, in the opinion of counsel to the Company, such transfer
does not comply with the provisions of the Securities Act and the rules and
regulations thereunder.

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

     

    Section
11.      Investment Representations; Restrictions
on Warrant Stock.

     

    The
Warrantholder, by accepting this Warrant, covenants and agrees that, at the time
of exercise hereof, and at the time of any proposed transfer of Warrant Stock
acquired upon exercise hereof, unless a current registration statement under the
Securities Act shall be in effect with respect to the Warrant Stock to be issued
upon exercise of this Warrant, such Warrantholder will deliver to the Company a
written statement that the securities acquired by the Warrantholder upon
exercise hereof are for the account of the Warrantholder or are being held by
the Warrantholder as trustee, investment manager, investment advisor or as any
other fiduciary for the account of the beneficial owner or owners for investment
and are not acquired with a view to, or for sale in connection with, any
distribution thereof (or any portion thereof) and with no present intention (at
any such time) of offering and distributing such securities (or any portion
thereof). The Warrantholder agrees that certificates representing Warrant Stock
may bear a legend substantially as follows:

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT IS IN
EFFECT AS TO THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL,
SATISFACTORY TO THE CORPORATION, THAT AN EXEMPTION THEREFROM IS
AVAILABLE.

     

    Section
12.      Loss, Destruction of Warrant
Certificates.

     

    Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction
or mutilation of any warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity and/or security satisfactory to the
Company or, in the case of any such mutilation, upon surrender and cancellation
of such Warrant, the Company will make and deliver, in lieu of such lost,
stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same aggregate number of shares of
Warrant Stock.

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

     

    Section
13.      Amendments.

     

    The terms
of this Warrant may be amended, and the observance of any term herein may be
waived, but only with the written consent of the Company and the
Warrantholder.

     

    Section
14.      Notices Generally.

     

    Any
notice, request, consent, other communication or delivery pursuant to the
provisions hereof shall be in writing and shall be sent by one of the following
means: (i) by registered or certified first class mail, postage prepaid, return
receipt requested; (ii) by facsimile transmission with confirmation of receipt;
(iii) by overnight courier service; or (iv) by personal delivery, and shall be
properly addressed to the Warrantholder at the last known address or facsimile
number appearing on the books of the Company, or, except as herein otherwise
expressly provided, to the Company at its principal executive office at New
Generation Biofuels Holdings, Inc., 15850 Waterloo Road, Suite 140, Columbia,
Maryland 21045 (Fax: (443) 638-0277), Attention: Cary J. Claiborne,
President, Chief Executive Officer and Chief Financial Officer, or such other
address or facsimile number as shall have been furnished to the party giving or
making such notice, demand or delivery.

     

    Section
15.      Successors and Assigns.

     

    This
Warrant shall bind and inure to the benefit of and be enforceable by the parties
hereto and their respective permitted successors and assigns.

     

    Section
16.      Governing Law.

     

    In all
respects, including all matters of construction, validity and performance, this
Warrant and the obligations arising hereunder shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York
applicable to contracts made and performed in such State.

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed in its name by its duly authorized
officer as of the date first written above.

    

    
      
        	
                NEW
      GENERATION BIOFUELS HOLDINGS, INC.

              
	 
      	 
      
	
                By:

              	 
      

      

    

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

     

    SUBSCRIPTION
FORM

     

    (to be
executed only upon exercise of Warrant)

    

    
      
        
          	
                  To:

                	
                  New
      Generation Biofuels Holdings, Inc.

                
	 
      	
                  5850
      Waterloo Road, Suite 140

                
	 
      	
                  Columbia,
      Maryland 21045

                
	 
      	
                  Attn:
      Cary J. Claiborne

                
	 	 
	 
      	
                  or
      such other address notified by the Company to the
  Holder.

                

        

      

    

    

    (1) The undersigned hereby elects to
purchase _______ shares of Warrant Stock of the Company pursuant to the terms of
the attached Warrant, and tenders herewith payment of the exercise price in
full, together with all applicable transfer taxes, if any.

    

    (2) Payment shall take the form of
(check applicable box):

    

     ̈ in lawful money of the
United States; or

    

     ̈ the
cancellation of such number of shares of Warrant Stock as is necessary, in
accordance with the formula set forth in subsection 2(b), to exercise this
Warrant with respect to the shares of Warrant Stock set forth above pursuant to
the cashless exercise procedure set forth in subsection 2(b).

    

    (3) Please issue a certificate or
certificates representing said shares of Warrant Stock in the name of the
undersigned or in such other name as is specified below:

    
       

      
        

      

    The
shares of Warrant Stock shall be delivered to the following:

     

    
      
        

      

       

      
        

      

       

      
        

      

    

     

    (4) Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    [SIGNATURE
OF HOLDER]

    
       

    

    Name of
Investing Entity:

     

    
      
        

      

    

    Signature
of Authorized Signatory of Investing Entity:

    
       

      
        

      

    

    Name of
Authorized Signatory:

    
       

        
          

        

      

      Title of Authorized Signatory:

       

        
          

        

      

       

      Date: __________________________________

    

    
      
         

      

      
        - 2
-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]