Document:

Exhibit 10.54

 

QUOTA SHARE RETROCESSION AGREEMENT

 

This Quota Share
Retrocession Agreement (this “Agreement”), dated as of
April      , 2004, is made and entered into by
and between ASSURED GUARANTY RE INTERNATIONAL LTD., formerly known as ACE
CAPITAL RE INTERNATIONAL LTD. (“AGRI”) and ACE BERMUDA INSURANCE LTD. (“ACE
Bermuda”).

 

WHEREAS, AGRI and ACE
Bermuda have entered into that certain Per Policy Excess of Loss Second
Retrocession Agreement, effective as of January 1, 2000 (the “Second
Excess of Loss Retrocession Agreement”), pursuant to which AGRI has
retroceded to ACE Bermuda, on an excess of loss basis, reinsurance assumed by
AGRI from ACE Capital Title Reinsurance Company (“ACTRC”) pursuant to
that certain Per Policy Excess of Loss Retrocession Agreement, dated as of
January 1, 2000, between ACTRC and AGRI (the “First Excess of Loss
Retrocession Agreement”); and

 

WHEREAS, AGRI and ACE
Bermuda desire to amend and restate the Second Excess of Loss Retrocession
Agreement as set for the herein.

 

NOW THEREFORE, in
consideration of the mutual covenants herein contained and for other good and
valuable consideration, the receipt of which is hereby acknowledged, AGRI and
ACE Bermuda agree as follows:

 

Section 1.  Amendment and Restatement.  Effective as of April 1, 2004 (the “Effective
Date”), the Second Excess of Loss Retrocession Agreement is amended and
restated in its entirety, and replaced and superceded by this Agreement.

 

Section 2.  Cover.  Effective as of the Effective Date, AGRI retrocedes to ACE Bermuda,
and ACE Bermuda assumes from AGRI and agrees to indemnify AGRI for, 100% of the
liability of AGRI under the First Excess of Loss Retrocession Agreement.

 

Section 3.  Premium.  Within 10 days of the execution and delivery of this Agreement by
each of the parties hereto, AGRI will pay to ACE Bermuda an amount equal to
$[         ].  In addition, AGRI will pay to ACE Bermuda 100% of all premiums
received by AGRI under the First Excess of Loss Retrocession Agreement after
the Effective Date net of any federal excise taxes.

 

Section 4.  Rights of Claims Association.  When so requested, AGRI will afford ACE
Bermuda an opportunity to be associated in the defense or control of any claim,
suit or proceeding involving this Agreement, and AGRI and ACE Bermuda shall
cooperate in every respect in the defense of such suit, claim or proceeding.

 

Section 5.  Reports.  Within 45 days of the end of each quarter during the Term (as
defined in the First Excess of Loss Retrocession Agreement), AGRI shall provide
ACE Bermuda a bordereau showing for such calendar quarter:

 

 

(i)            all Policies (as
defined in the First Excess of Loss Retrocession Agreement) ceded hereunder
during such calendar quarter and Policies ceded hereunder to date;

(ii)           losses and allocated
loss adjustment expenses with respect to the Policies ceded hereunder;

(iii)          ACE Bermuda’s share of
losses and allocated loss adjustment expenses paid and losses and allocated
loss adjustment expenses outstanding;

(iv)          ACE Bermuda’s share of
subrogation, salvage and other recoveries received by AGRI with respect to
losses and allocated loss adjustment expenses on Policies ceded hereunder; and

(v)           the net premium for
each Policy ceded hereunder during such calendar quarter and the reinsurance
premium payable to ACE Bermuda for such calendar quarter.

 

Section 6.  Follow the Fortunes. 
This Agreement is based on the original terms of the First Excess of
Loss Retrocession Agreement so that ACE Bermuda’s rights and obligations
vis-à-vis AGRI with respect to the reinsurance provided under this Agreement
shall, subject to the terms of this Agreement, follow the fortunes of AGRI in
all respects under the Policy.

 

Section 7.  No Third Party Rights. 
Nothing herein shall be construed to expand the liability of ACE Bermuda
beyond what is specifically assumed under this Agreement by creating in any
third party any rights hereunder.

 

Section 8.  Access to Records. 
Upon reasonable notice, ACE Bermuda or its duly authorized
representative shall have access to and the right to inspect the books and
records of AGRI that pertain to this Agreement or the First Excess of Loss
Retrocession Agreement.

 

Section 9.  Offset.  ACE Bermuda
or AGRI may offset any balance(s) due from one party to the other under this
Agreement or any other agreement exclusively between the parties hereto.  The party asserting the right of offset may
exercise such right at any time whether the balance(s) due are on account of
premiums or losses or otherwise.  In the
event of the insolvency of a party hereto, offsets shall only be allowed in
accordance with applicable law.

 

Section 10.  Errors and Omissions. 
Any inadvertent delay, omission or error shall not be held to relieve
either party hereto from any liability which would attach to it hereunder if
such delay, omission or error had not been made, provided such delay, omission
or error is rectified as soon as possible after discovery.

 

Section 11.  Governing Law. 
This Agreement shall be governed by and is to be construed in accordance
with the laws of the State of New York without giving effect to conflict of law
rules thereof.

 

2

 

Section 12.  Arbitration.  Any dispute, controversy, or claim arising
out of or relating to this Agreement, or the breach, termination or invalidity
thereof, shall be finally settled by arbitration in Bermuda under the
provisions of the Bermuda Arbitration Ace of 1986, as amended.

 

Either party to the dispute, once a claim or demand on
its part has been denied or remains unsatisfied for a period of twenty (20)
calendar days by the other party, may notify the other party of its desire to
arbitrate the matter in dispute and at the time of such notification the party
desiring arbitration shall notify the other party of the name of the Arbitrator
nominated by it.  The other party who
has been so notified shall within fourteen (14) calendar days thereafter
nominate another Arbitrator and notify the party desiring arbitration of the
name of such second Arbitrator.  The two
Arbitrators nominated by the parties shall within fourteen (14) calendar days
after the appointment of the second Arbitrator choose a third Arbitrator.

 

The Arbitrators shall
fix, on giving a reasonable notice in writing to the parties involved, a time
and place for the hearing in Bermuda and may prescribe procedural rules
governing the course and conduct of the arbitration proceeding, including
without limitation discovery by the parties.

 

The Arbitrators shall,
within ninety (90) calendar days following the conclusion of the hearing,
render their decision on the matter or matters in dispute in writing and shall
cause a copy thereof to be served on all parties thereto.  In case the Arbitrators fail to reach a
unanimous decision, the decision of the majority of the Arbitrators shall be
deemed to be the decision of the Arbitrators.

 

Each party shall bear the
expense of its own Arbitrator.  The
remaining joint costs of the arbitration shall be borne equally by the parties
to such arbitration.

 

The decision of the Arbitrators shall be final and binding upon the
parties and the parties hereby agree to exclude any right of appeal under
Section 29 of the Arbitration Act of 1986 against any award rendered by
the Arbitrators and further agree to exclude any application under
Section 30 (1) of the Arbitration Act of 1986 for a determination of any
question of law by the Supreme Court of Bermuda

 

All awards of the Board
of Arbitration may be enforced in the same manner as a judgment or order from
the Supreme Court of Bermuda and judgment may be entered pursuant to the terms
of the award by leave from the Supreme Court of Bermuda.

 

This Section shall survive the termination of this Agreement.

 

Section 13.  Notice.  As used in this Agreement, notice shall mean
any and all notices, requests, demands or other communications required or
permitted to be given hereunder.  All
notices shall be in writing and shall be (i) delivered personally, (ii) sent by
an overnight delivery service, or (iii) sent by confirmed facsimile
transmission, addressed to the parties

 

3

 

at the addresses set
forth below.  Any such notice shall be
deemed given (i) in the case of personal delivery, when so delivered
personally, (ii) if sent by overnight delivery service, one day after delivery
of such notice to such service, and (iii) if sent by confirmed facsimile
transmission, at the time of transmission.

 

If to AGRI:

 

Assured Guaranty Re
International Ltd.

30 Woodbourne Ave.

Fifth floor

Hamilton, Bermuda HM 08

Facsimile:  441-296-4004

Attention: Corporate
Secretary

 

If to ACE Bermuda:

 

ACE Bermuda Insurance
Ltd.

The ACE Building

17 Woodbourne Avenue

Hamilton, Bermuda HM 08

Facsimile:  441-295-5221

Attention:  General Counsel

 

AGRI and ACE Bermuda
shall provide each other with wiring instructions for monies to be transferred
under this Agreement promptly after execution of this Agreement and at the time
of any change in such instructions.

 

Section 14.  Assignment.  This Agreement may not be assigned by either
party without the prior written consent of the other party.

 

Section 15.  Amendments.  This Agreement may not be modified or
amended except by mutual written consent of the parties.

 

Section 16.  Changes to
First Excess of Loss Retrocession Agreement.  AGRI shall not amend, modify, supplement or assign the First
Excess of Loss Retrocession Agreement without the prior written consent of ACE
Bermuda (such consent not to be unreasonably withheld).

 

Section 17.  Waivers.  The terms of this Agreement may be waived
only with the written consent of the party waiving compliance. No failure or
delay in exercising any right, power or privilege hereunder will operate as a
waiver thereof, nor will any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege hereunder.

 

4

 

Section 18.  Entire
Agreement; Rights and Remedies. 
This Agreement constitutes the entire agreement between the parties
relating to the subject matter hereof and supersedes all prior written and oral
statements with respect hereto.  The
rights and remedies provided herein are cumulative and are not exclusive or any
rights or remedies that any party may have at law or in equity.

 

Section 19.  Counterparts.  This Agreement may be executed in any number
or counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

Section 20.            Severability.          If any term, provision, covenant or condition of this
Agreement, or the application thereof to any party or circumstances, shall be
held to be invalid or unenforceable (in whole or in part) for any reason, the
remaining terms, provisions, covenants and conditions shall continue in full
force and effect as if this Agreement had been executed with the invalid or
unenforceable portion eliminated, but only if (a) this Agreement as so modified
continues to express, without material change, the original intentions of the
parties as to the subject matter of this Agreement and (b) the deletion of such
portion of this Agreement does not substantially impair the respective benefits
or expectations for the parties to this Agreement.

 

Section 21.            Further Assurances.            Each party hereto shall, at its own cost
and expense, execute and do all such deeds, documents, acts and things as the
other party may from time to time reasonably request as may be necessary to
give full effect to this Agreement.

 

 

[The next page is the signature page.]

 

5

 

IN WITNESS WHEREOF, this
Agreement has been signed by a duly authorized officer of each of the parties
as of the date hereof.

 

	
  ASSURED GUARANTY RE
  INTERNATIONAL LTD.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  ACE BERMUDA INSURANCE
  LTD.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:Exhibit 10.56

 

ASSIGNMENT AND TERMINATION AGREEMENT

 

This
Assignment and Termination Agreement, dated as of April 1, 2004 (this “Agreement”),
is made by and among Assured Guaranty Re International Ltd., formerly known as
ACE Capital Re International Ltd. (“AGRI”), ACE Bermuda Insurance Ltd.
(“ACE Bermuda”) and ACE Capital Title Reinsurance Company (“ACTRC”).

 

 

RECITALS

 

WHEREAS, AGRI and ACTRC have entered into that certain Per Policy
Excess of Loss Retrocession Agreement, dated as of January 1, 2000 (the “Excess
of Loss Retrocession Agreement”), a copy of which is attached hereto as
Annex A;

 

WHEREAS,
AGRI and ACTRC have terminated the Excess of Loss Retrocession Agreement on a
run-off basis pursuant to that certain Run-Off Termination Agreement, dated as
of April [ ], 2004 (the “Termination Agreement”), by and between AGRI and
ACTRC, a copy of which is attached hereto as Annex B;

 

WHEREAS, AGRI and ACE Bermuda have entered into that certain Quota
Share Retrocession Agreement, dated as April [ 
], 2004 (the “Quota Share Retrocession Agreement”), a copy of
which is attached hereto as Annex C and pursuant to which (i) AGRI and ACE
Bermuda have amended and restated that certain Per Policy Excess of Loss Second
Retrocession Agreement, effective as of January 1, 2000, between AGRI and ACE
Bermuda, (ii) ACE Bermuda has agreed to indemnify AGRI for 100% of the
liability of AGRI under the Excess of Loss Retrocession Agreement and (iii)
AGRI has paid ACE Bermuda an amount equal to [$      ];

 

WHEREAS, AGRI desires to assign, transfer and novate all of its past,
present and future right, title, interest and obligations in, to and under the
Excess of Loss Retrocession Agreement to ACE Bermuda as set forth in this
Agreement;

 

WHEREAS, ACE Bermuda desires to accept all of AGRI’s past, present and
future right, title, interest and obligations in, to and under the Excess of
Loss Retrocession Agreement as set forth in this Agreement;

 

WHEREAS, AGRI and ACE Bermuda desire to terminate the Quota Share
Retrocession Agreement; and

 

WHEREAS, ACTRC desires to consent to the assignment, transfer and
novation referred to above and to release AGRO from liability under the Excess
of Loss Retrocession Agreement.

 

 

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

 

1.     Effective as of the date
hereof:

 

(i)                                     AGRI
hereby assigns, transfers and novates all of its past, present and future
right, title and interest in the Excess of Loss Retrocession Agreement to ACE
Bermuda;

 

(ii)                                  AGRI
hereby assigns, transfers and novates all of its past, present and future
obligations which arise out of, relate to, or are in any way connected with,
the Excess of Loss Retrocession Agreement to ACE Bermuda;

 

(iii)                               ACE
Bermuda hereby accepts each assignment, transfer and novation referred to in
the immediately preceding clauses (i) and (ii) and assumes all of the
liabilities and obligations (whether past, present or future) with respect to
the foregoing;

 

(iv)                              ACTRC
hereby acknowledges and consents to each assignment, transfer and novation
referred to in the preceding clauses (i) and (ii); and

 

(v)                                 AGRI and ACE Bermuda
hereby acknowledge and agree that the Quota Share Retrocession Agreement is
hereby terminated in all respects and
all of the respective rights and obligations of AGRI and ACE Bermuda thereunder
are irrevocably and unconditionally cancelled and terminated, and each of AGRI and
ACE Bermuda fully and finally releases and discharges the other party from any
obligations, claims or liabilities (of any nature whatsoever, whether now
existing, hereafter arising or contingent and whether known or unknown) of the
other party arising out of and to be performed in connection with such Quota
Share Retrocession Agreement.

 

2.             In furtherance of the foregoing,
ACTRC hereby releases AGRI from any and all past, present or future liabilities
or obligations with respect to the Excess of Loss Retrocession Agreement (as
modified by the Termination Agreement), and ACE Bermuda hereby agrees to
indemnify and hold AGRI harmless against any and all such liabilities and
obligations.

 

3.             Each party hereto shall, at any
time and from time to time after the first date written above, upon request of
any other party hereto, do, execute, acknowledge and deliver, or cause to be
done, executed, acknowledged and delivered, all such further acts, instruments,
assignments and assurances as may be reasonably required in order to carry out
the intent of this Agreement.

 

2

 

4.             This Agreement,
together with the Quota Share Retrocession Agreement, the Excess of Loss
Retrocession Agreement and the Termination Agreement, contains the entire
agreement and understanding of the parties hereto with respect to the matters
herein and supersedes any other agreement, whether written or oral, with
respect to the subject matter of this Agreement.  In the event of any conflict between the provisions of this
Agreement and the provisions of the Quota Share Retrocession Agreement, the
Excess of Loss Retrocession Agreement or the Termination Agreement, the
provisions of this Agreement shall control.

 

5.             The consideration
for the transactions contemplated by this Agreement is included in the
consideration paid under the Quota Share Retrocession Agreement.

 

6.             This Agreement may
be executed in any number of counterparts, each of which will be deemed to be
an original copy of this Agreement and all of which, when taken together, will
be deemed to constitute one and the same agreement.

 

7.             This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to the conflicts of law rules thereof.

 

8.             Except as expressly
set forth herein and amended hereby, the Excess of Loss Retrocession Agreement
shall remain in full force and effect.

 

 

[The next page is the signature page.]

 

3

 

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

 

 

	
  ASSURED GUARANTY RE
  INTERNATIONAL LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ACE
  BERMUDA INSURANCE LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ACE
  CAPITAL TITLE REINSURANCE COMPANY

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

ANNEX A

 

[Attach AGRI/ACTRC Excess of Loss Retrocession
Agreement]

 

 

ANNEX B

 

[Attach AGRI/ACTRC Run-Off Termination Agreement]

 

 

ANNEX C

 

[Attach AGRI/ACE Bermuda Quota Share Retrocession
Agreement]

 

 

ASSIGNMENT AGREEMENT

 

This Assignment Agreement, dated as of April
     , 2004 (this “Agreement”), is made by and
among Assured Guaranty Re Overseas Ltd., formerly known as ACE Capital Re
Overseas Ltd., (“AGRO”), ACE European Markets Insurance Limited (“AEM”)
and ACE Bermuda Insurance Ltd. (“ACE Bermuda”).

 

RECITALS

 

WHEREAS, AEM and AGRO have entered into that certain UK Title Quota
Share Reinsurance Agreement, dated as of June 1, 2003, a copy of which is
attached hereto as Annex A (the “2003 Reinsurance Agreement”);

 

WHEREAS, AEM and AGRO have entered into that certain Quota Share
Reinsurance Agreement (including the (i) Special Acceptance, effective as of
August 15, 2002 and (ii) Termination Agreement, dated as of May 31, 2003, in
each case made in respect of and subject to such Quota Share Reinsurance
Agreement), effective as of January 1, 2002, copies of which are attached
hereto as Annex B (the “2002 Reinsurance Agreement” and together with
the 2003 Reinsurance Agreement, the “Reinsurance Agreements”);

 

WHEREAS, AGRO desires to assign, transfer and novate all of its past,
present and future right, title, interest and obligations in, to and under the
Reinsurance Agreements to ACE Bermuda as set forth in this Agreement;

 

WHEREAS, ACE Bermuda desires to accept all of AGRO’s past, present and
future right, title, interest and obligations in, to and under the Reinsurance
Agreements as set forth in this Agreement; and

 

WHEREAS, AEM desires to consent to the assignment, transfer and
novation referred to above and to release AGRO from liability under the
Reinsurance Agreements.

 

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

 

1.     Effective as of April 1, 2004 and subject
to receipt by ACE Bermuda of the amount referred to in Section 2 herein:

 

(i)                                     AGRO hereby
assigns, transfers and novates all of its past, present and future right, title
and interest in the Reinsurance Agreements to ACE Bermuda;

 

(ii)                                  AGRO hereby assigns,
transfers and novates all of its past, present and future obligations which
arise out of, relate to, or are in any way connected with, the Reinsurance
Agreements to ACE Bermuda;

 

 

(iii)                               ACE Bermuda hereby
accepts each assignment, transfer and novation referred to in the immediately
preceding clauses (i) and (ii) and assumes all of the liabilities and
obligations (whether past, present or future) with respect to the foregoing;
and

 

(iv)                              AEM hereby acknowledges
and consents to each assignment, transfer and novation referred to in clauses
(i) and (ii) of this Paragraph 1.

 

2.             In furtherance of the foregoing,
AEM hereby releases AGRO from any and all past, present or future liabilities
or obligations with respect to the Reinsurance Agreements, and ACE Bermuda
hereby agrees to indemnify and hold AGRO harmless against any and all such
liabilities and obligations.

 

3.             Concurrently with the execution of
this Agreement, AGRO will pay US$[       
] to ACE Bermuda by wire transfer of funds to an account designated by
ACE Bermuda.

 

4.             Each party hereto shall, at any
time and from time to time after the first date written above, upon request of
any other party hereto, do, execute, acknowledge and deliver, or cause to be
done, executed, acknowledged and delivered, all such further acts, instruments,
assignments and assurances as may be reasonably required in order to carry out
the intent of this Agreement.

 

5.             Except as expressly
set forth herein and amended hereby, the Reinsurance Agreements shall remain in
full force and effect.

 

6.             This Agreement
contains the entire agreement and understanding of the parties hereto with
respect to the matters herein and supersedes any other agreement, whether
written or oral, with respect to the subject matter of this Agreement.

 

7.             This Agreement may
be executed in any number of counterparts, each of which will be deemed to be
an original copy of this Agreement and all of which, when taken together, will
be deemed to constitute one and the same agreement.

 

8.             This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to the conflicts of law rules thereof.

 

2

 

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

 

 

	
  ASSURED GUARANTY RE
  OVERSEAS LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ACE BERMUDA
  INSURANCE LTD.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ACE
  EUROPEAN MARKETS INSURANCE LIMITED

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

ANNEX A

 

[Attach 2003 Reinsurance Agreement]

 

 

ANNEX B

 

[Attach 2002 Reinsurance
Agreement, Special Acceptance and Termination Agreement]

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