Document:

EXHIBIT 10.61

    

    PROMISSORY
NOTE

    

    
      	
              $1,000,000.00

            	 
      	
              October
      23, 2009

            

    

    

    Mission West Properties,
L.P. II, a Delaware limited partnership (“Mission”)

    

    promises
to pay to             M&M Real Estate Control
& Restructuring.,
LLC                                        

    

    the
principal sum of One Million Dollars and 00 Cents ($1,000,000.00),

    

    plus
interest at the rate of 30 day LIBOR plus 2 percent per annum (compounded on the
basis of a 366-day year) beginning on the 23rd day of October,
2009.

    

    Should
interest not so be paid, it shall thereafter bear like interest as the
principal, but such unpaid interest so compounded shall not exceed an amount
equal to simple interest on the unpaid principal at the maximum rate permitted
by law. Should default be made in the payment of any installment of interest
when due, the whole sum of principal and interest shall become immediately due
and payable at the option of the holder of this note.  Should suit be
commenced or an attorney employed to enforce the payment of this note, we agree
to pay such additional sum as the court may adjudge as reasonable attorney’s
fees in said suit. Principal and interest are payable in lawful money of the
United States.

    

    Principal
and interest are payable in lawful money of the United States no later than
December 31, 2010.  Notwithstanding the above, Mission shall use its
best efforts to repay the loan as soon as possible using all available sources
of cash, including but not limited to cash generated from operations and cash
available from any other financing sources.

    

    
      
        
          
            
              
                	
                        Signed By:

                      	 
      	
                        /s/ Raymond V. Marino

                      	 	
                        10/23/09

                      	 
      
	 
      	
                        Raymond V. Marino, Pres. & COO

                      	 	
                        Date

                      	 
      
	 
      	
                        Mission West Properties, Inc.

                      	 	 
      	 
      
	 
      	
                        Its General Partner

                      	 	 
      	 
      
	 
      	 
      	 	 
      	 
      
	
                        Acknowledged:

                      	
                        /s/ Tom Meckenstock

                      	 	
                        10/23/09

                      	 
      
	 
      	
                        Tom Meckenstock, Managing Member

                      	 	
                        DateExcess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued
to

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

    
       

      
        
          
            	 	
                    

                  

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued
to

    

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

    

    First
Excess Catastrophe Reinsurance

    

    
      
        
          
            
              	
                      Reinsurers

                    	 	
                      Participations

                    	 
	 
      	 	 	 
	
                      Actua
      Re Ltd.

                    	 	 	43.5	%
	
                      Everest
      Reinsurance Company

                    	 	 	12.0	 
	
                      Hiscox
      Insurance Company (Bermuda) Limited

                    	 	 	3.0	 
	
                      Montpelier
      Reinsurance Ltd.

                    	 	 	8.0	 
	
                      Platinum
      Underwriters Bermuda, Ltd.

                    	 	 	17.5	 
	 
      	 	 	 	 
	
                      Through
      Aon Limited trading as Aon Benfield

                    	 	 	 	 
	
                      Lloyd’s
      Underwriters and Companies

                    	 	 	 	 
	
                      Per
      Signing Page(s)

                    	 	 	16.0	 
	 
      	 	 	 	 
	
                      Total

                    	 	 	100.0	%

            

          

        

      

    

     

    
      
        
          
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    Second
Excess Catastrophe
Reinsurance

    

    
      
        
          
            	
                    Reinsurers

                  	 	
                    Participations

                  	 
	 
      	 	 	 
	
                    ACE
      Tempest Reinsurance Ltd.

                  	 	 	4.0	%
	
                    Ariel
      Reinsurance Company Limited

                  	 	 	10.0	 
	
                    DaVinci
      Reinsurance Ltd.

                  	 	 	7.5	 
	
                    Everest
      Reinsurance Company

                  	 	 	16.5	 
	
                    Flagstone
      Reassurance Suisse SA - Bermuda Branch

                  	 	 	15.0	 
	
                    Hiscox
      Insurance Company (Bermuda) Limited

                  	 	 	3.0	 
	
                    Montpelier
      Reinsurance Ltd.

                  	 	 	8.0	 
	
                    Munich
      Reinsurance America, Inc.

                  	 	 	5.0	 
	
                    Platinum
      Underwriters Bermuda, Ltd.

                  	 	 	8.0	 
	
                    Renaissance
      Reinsurance, Ltd.

                  	 	 	7.5	 
	
                    Torus
      Insurance (Bermuda) Limited

                  	 	 	4.0	 
	 
      	 	 	 	 
	
                    Through
      Aon Limited trading as Aon Benfield (Placement Only)

                  	 	 	 	 
	
                    Amlin
      Bermuda Limited

                  	 	 	3.0	 
	 
      	 	 	 	 
	
                    Through
      Aon Limited trading as Aon Benfield

                  	 	 	 	 
	
                    Lloyd’s
      Underwriters and Companies

                  	 	 	 	 
	
                    Per
      Signing Page(s)

                  	 	 	8.5	 
	 
      	 	 	 	 
	
                    Total

                  	 	 	100.0	%

          

        

      

    

    

    Third Excess Catastrophe Reinsurance

    

    
      
        
          
            
              	
                      Reinsurers

                    	 	
                      Participations

                    	 
	 
      	 	 	 
	
                      ACE
      Tempest Reinsurance Ltd.

                    	 	 	4.0	%
	
                      Allianz
      Risk Transfer AG (Bermuda Branch)

                    	 	 	18.0	 
	
                      Ariel
      Reinsurance Company Limited

                    	 	 	2.5	 
	
                      Everest
      Reinsurance Company

                    	 	 	16.5	 
	
                      Flagstone
      Reassurance Suisse SA - Bermuda Branch

                    	 	 	22.5	 
	
                      Hiscox
      Insurance Company (Bermuda) Limited

                    	 	 	3.0	 
	
                      Montpelier
      Reinsurance Ltd.

                    	 	 	8.0	 
	
                      QBE
      Reinsurance Corporation

                    	 	 	4.0	 
	
                      Torus
      Insurance (Bermuda) Limited

                    	 	 	2.5	 
	 
      	 	 	 	 
	
                      Through
      Aon Limited trading as Aon Benfield (Placement Only)

                    	 	 	 	 
	
                      Amlin
      Bermuda Limited

                    	 	 	7.5	 
	
                      Liberty
      Syndicates LIB 4472 (Paris Office Underwriting)

                    	 	 	3.0	 
	 
      	 	 	 	 
	
                      Through
      Aon Limited trading as Aon Benfield

                    	 	 	 	 
	
                      Lloyd’s
      Underwriters and Companies

                    	 	 	 	 
	
                      Per
      Signing Page(s)

                    	 	 	8.5	 
	 
      	 	 	 	 
	
                      Total

                    	 	 	100.0	%

            

          

        

      

    

     

    
       

      
        
          
            
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    Fourth Excess Catastrophe Reinsurance

    

    
      
        
          
            
              	
                      Reinsurers

                    	 	
                      Participations

                    	 
	 
      	 	 	 
	
                      Allianz
      Risk Transfer AG (Bermuda Branch)

                    	 	 	40.0	%
	
                      Flagstone
      Reassurance Suisse SA - Bermuda Branch

                    	 	 	15.0	 
	
                      Montpelier
      Reinsurance Ltd.

                    	 	 	20.0	 
	 
      	 	 	 	 
	
                      Through
      Aon Limited trading as Aon Benfield (Placement Only)

                    	 	 	 	 
	
                      Amlin
      Bermuda Limited

                    	 	 	5.0	 
	
                      Liberty
      Syndicates LIB 4472 (Paris Office Underwriting)

                    	 	 	8.0	 
	 
      	 	 	 	 
	
                      Through
      Aon Limited trading as Aon Benfield

                    	 	 	 	 
	
                      Lloyd’s
      Underwriters and Companies

                    	 	 	 	 
	
                      Per
      Signing Page(s)

                    	 	 	12.0	 
	 
      	 	 	 	 
	
                      Total

                    	 	 	100.0	%

            

          

        

      

    

    

    Fifth
Excess Catastrophe Reinsurance

    

    
      
        
          
            	
                    Reinsurers

                  	 	
                    Participations

                  	 
	 
      	 	 	 
	
                    Allianz
      Risk Transfer AG (Bermuda Branch)

                  	 	 	20.0	%
	
                    Montpelier
      Reinsurance Ltd.

                  	 	 	25.0	 
	
                    Munich
      Reinsurance America, Inc.

                  	 	 	30.0	 
	 
      	 	 	 	 
	
                    Through
      Aon Limited trading as Aon Benfield (Placement Only)

                  	 	 	 	 
	
                    Liberty
      Syndicates LIB 4472 (Paris Office Underwriting)

                  	 	 	8.0	 
	 
      	 	 	 	 
	
                    Through
      Aon Limited trading as Aon Benfield

                  	 	 	 	 
	
                    Lloyd’s
      Underwriters and Companies

                  	 	 	 	 
	
                    Per
      Signing Page(s)

                  	 	 	17.0	 
	 
      	 	 	 	 
	
                    Total

                  	 	 	100.0	%

          

        

      

    

     

    
      
        
          
            
              	Page 3 of
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    Table of Contents

    

    
      
        
          
            
              
                
                  	
                          Article

                        	 
      	 
      	
                          Page

                        
	 
      	 
      	 
      	 
      	 
	
                          I

                        	 
      	
                          Classes
      of Business Reinsured

                        	
                          1

                        	 
	
                          II

                        	 
      	
                          Commencement
      and Termination

                        	
                          1

                        	 
	
                          III

                        	 
      	
                          Territory

                        	
                          2

                        	 
	
                          IV

                        	 
      	
                          Exclusions

                        	
                          3

                        	 
	
                          V

                        	 
      	
                          Retention
      and Limit

                        	
                          4

                        	 
	
                          VI

                        	 
      	
                          Florida
      Hurricane Catastrophe Fund

                        	
                          5

                        	 
	
                          VII

                        	 
      	
                          Other
      Reinsurance

                        	
                          5

                        	 
	
                          VIII

                        	 
      	
                          Reinstatement

                        	
                          5

                        	 
	
                          IX

                        	 
      	
                          Definitions

                        	
                          6

                        	 
	
                          X

                        	 
      	
                          Loss
      Occurrence

                        	
                          7

                        	 
	
                          XI

                        	 
      	
                          Loss
      Notices and Settlements

                        	
                          8

                        	 
	
                          XII

                        	 
      	
                          Salvage
      and Subrogation

                        	
                          9

                        	 
	
                          XIII

                        	 
      	
                          Reinsurance
      Premium

                        	
                          9

                        	 
	
                          XIV

                        	 
      	
                          Late
      Payments

                        	
                          10

                        	 
	
                          XV

                        	 
      	
                          Offset
      (BRMA 36C)

                        	
                          11

                        	 
	
                          XVI

                        	 
      	
                          Access
      to Records (BRMA 1D)

                        	
                          11

                        	 
	
                          XVII

                        	 
      	
                          Liability
      of the Reinsurer

                        	
                          11

                        	 
	
                          XVIII

                        	 
      	
                          Net
      Retained Lines (BRMA 32E)

                        	
                          11

                        	 
	
                          XIX

                        	 
      	
                          Errors
      and Omissions (BRMA 14F)

                        	
                          12

                        	 
	
                          XX

                        	 
      	
                          Currency
      (BRMA 12A)

                        	
                          12

                        	 
	
                          XXI

                        	 
      	
                          Taxes
      (BRMA 50B)

                        	
                          12

                        	 
	
                          XXII

                        	 
      	
                          Federal
      Excise Tax (BRMA 17D)

                        	
                          12

                        	 
	
                          XXIII

                        	 
      	
                          Reserves

                        	
                          13

                        	 
	
                          XXIV

                        	 
      	
                          Insolvency

                        	
                          14

                        	 
	
                          XXV

                        	 
      	
                          Arbitration
      (BRMA 6J)

                        	
                          15

                        	 
	
                          XXVI

                        	 
      	
                          Service
      of Suit (BRMA 49C)

                        	
                          16

                        	 
	
                          XXVII

                        	 
      	
                          Severability
      (BRMA 72E)

                        	
                          16

                        	 
	
                          XXVIII

                        	 
      	
                          Governing
      Law (BRMA 71B)

                        	
                          16

                        	 
	
                          XXIX

                        	 
      	
                          Notices
      and Contract Execution

                        	
                          16

                        	 
	
                          XXX

                        	 
      	
                          Intermediary

                        	
                          17

                        	 
	 
      	
                            

                        	
                          Schedule
      A

                        	 
      	 

                

              

            

          

        

      

    

     

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Excess
Catastrophe Reinsurance Contract

    Effective:
July 1, 2009

     

    issued
to

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

    (hereinafter referred to as the
“Company”)

     

    by

     

    The
Subscribing Reinsurer(s) Executing the

    Interests
and Liabilities Agreement(s)

    Attached
Hereto

    (hereinafter referred to as the
“Reinsurer”)

     

    Article
I - Classes of Business Reinsured

     

    By this
Contract the Reinsurer agrees to reinsure the excess liability which may accrue
to the Company under its policies, contracts and binders of insurance or
reinsurance (hereinafter called “policies”) in force at the effective date
hereof or issued or renewed on or after that date, and classified by the Company
as Property business, including but not limited to, Dwelling Fire, Inland
Marine, Mobile Home and Homeowners business (including any business assumed from
Citizens Property Insurance Corporation), subject to the terms, conditions and
limitations set forth herein and in Schedule A attached hereto.

     

    Article
II - Commencement and Termination

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      
        
          
            
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              3.

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

            

    

     

    
      	
               
      

            	
              4.

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

            

    

     

    
      	
               
      

            	
              5.

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

            

    

     

    
      	
               
      

            	
              6.

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

            

    

     

    
      	
               
      

            	
              7.

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

            

    

     

    
      	
               
      

            	
              8.

            	
              The
      Subscribing Reinsurer has ceased assuming new or renewal property or
      casualty treaty reinsurance business;
or

            

    

     

    
      	
               
      

            	
              9.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      	
              D.

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

            

    

     

    Article
III - Territory

     

    The
liability of the Reinsurer shall be limited to losses under policies covering
property located within the territorial limits of the State of Florida; but this
limitation shall not apply to moveable  property if the Company’s
policies provide coverage when said moveable property is outside the aforesaid
territorial limits.

    
       

      
        
          
            
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    Article
IV - Exclusions

     

    
      	
              A. 

            	
              This
      Contract does not apply to and specifically excludes the
      following:

            

    

     

    
      	
               
      

            	
              1.

            	
              Reinsurance
      assumed by the Company under obligatory reinsurance agreements,
      except:\

            

    

     

    
      	
            	
              a.

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

            

    

     

    
      	
            	
              b.

            	
              Business
      assumed by the Company from Citizens Property Insurance
      Corporation.

            

    

     

    
      	
               
      

            	
              2.

            	
              Hail
      damage to growing or standing
crops.

            

    

     

    
      	
               
      

            	
              3.

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

            

    

     

    
      	
               
      

            	
              4.

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

            

    

     

    
      	
               
      

            	
              5.

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

            

    

     

    
      	
               
      

            	
              6.

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

            

    

     

    
      	
               
      

            	
              7.

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

            

    

     

    
      	
               
      

            	
              8.

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

            

    

     

    
      	
               
      

            	
              9.

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

            

    

     

    
      	
               
      

            	
              10.

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

            

    

     

    
      	
               
      

            	
              11.

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

            

    

     

    
      
        
          
            
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              12.

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

            

    

     

    
      	
               
      

            	
              13.

            	
              Transmission
      and distribution lines.

            

    

     

    
      	
               
      

            	
              14.

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

            

    

     

    
      	
               
      

            	
              15.

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

            

    

     

    
      	
               
      

            	
              16.

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

            

    

     

    “Electronic
Data” as used herein means facts, concepts and information converted to a form
usable for communications, interpretation or processing by electronic and
electromechanical data processing or electronically-controlled equipment and
includes programs, software and other coded instructions for the processing and
manipulation of data or the direction and manipulation of such
equipment.

     

    “Computer
Virus” as used herein means a set of corrupting, harmful or otherwise
unauthorized instructions or code, including a set of maliciously-introduced,
unauthorized instructions or code, that propagate themselves through a computer
system network of whatsoever nature.

     

    However,
in the event that a peril otherwise covered under the policy results from any of
the matters described above, this Contract, subject to all other terms and
conditions, will cover physical damage directly caused by such listed
peril.

     

    Article
V - Retention and Limit

     

    
      	
              A.

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

            

    

     

    
      
        
          
            
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              B.

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

            

    

     

    Article
VI - Florida Hurricane Catastrophe Fund

     

    The FHCF
mandatory layer of coverage, any Temporary Increase in Coverage Limits (“TICL”)
coverage and any additional underlying limit provided by the FHCF to Limited
Apportionment Companies, all of which are purchased by the Company, shall be
deemed to inure to the benefit of this Contract.  Further, any FHCF
loss reimbursement shall be deemed to be paid to the Company in accordance with
the FHCF reimbursement contract at the full payout level set forth therein and
will be deemed not to be reduced by any reduction or exhaustion of the FHCF’s
claims-paying capacity as respects the mandatory FHCF coverage, the Company’s
elected coverage under TICL, and the coverage provided by the FHCF to Limited
Apportionment Companies.

     

    Article
VII - Other Reinsurance

     

    The
Company shall be permitted to carry other reinsurance, recoveries under which
shall inure solely to the benefit of the Company and be entirely disregarded in
applying all of the provisions of this Contract.

     

    Article
VIII - Reinstatement

     

    
      	
              A.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      	
            	
              a.

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

            

    

     

    
      	
            	
              b.

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

            

    

     

    
      
        
          
            
              	Page 5	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              B.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    Article
IX - Definitions

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      
        
          
            
              	Page 6	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.

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

            

    

     

    Notwithstanding
anything stated herein, this Contract shall not apply to any loss in excess of
policy limits or any extra contractual obligation incurred by the Company as a
result of any fraudulent and/or criminal act by any officer or director of the
Company 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.

     

    Further,
any loss in excess of policy limits or extra contractual obligations that are
made in connection with this Contract shall not exceed 25.0% of the Company’s
actual catastrophe loss.

     

    
      	
              C.

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

            

    

     

    Article
X - Loss Occurrence

     

    
      	
              A.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      
        
          
            
              	Page 7	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              3.

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

            

    

     

    
      	
               
      

            	
              4.

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

            

    

     

    
      	
               
      

            	
              5.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      	
              D.

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

            

    

     

    Article
XI - Loss Notices and Settlements

     

    
      	
              A.

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

            

    

     

    
      
        
          
            
              	Page 8	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              B.

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

            

    

     

    Article
XII - Salvage and Subrogation

     

    The
Reinsurer shall be credited with salvage (i.e., reimbursement obtained or
recovery made by the Company, less the actual cost, excluding salaries of
officials and employees of the Company and sums paid to attorneys as retainer,
of obtaining such reimbursement or making such recovery) on account of claims
and settlements involving reinsurance hereunder.  Salvage thereon
shall always be used to reimburse the excess carriers in the reverse order of
their priority according to their participation before being used in any way to
reimburse the Company for its primary loss.  The Company hereby agrees
to enforce its rights to salvage or subrogation relating to any loss, a part of
which loss was sustained by the Reinsurer, and to prosecute all claims arising
out of such rights, if, in the Company’s opinion, it is economically reasonable
to do so.

     

    Article
XIII - Reinsurance Premium

     

    
      	
              A.

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

            

    

     

    The
Company’s PML for each excess layer shall be calculated using AIR Version 10.0
catastrophe modeling software, incorporating long-term perspective but no loss
amplification or storm surge, and shall correspond to the amount, shown as
“Return Time” for that excess layer in Schedule A attached hereto.

     

    
      	
              B.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      
        
          
            
              	Page 9	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Article
XIV - Late Payments

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      	
               
      

            	
              3.

            	
              The
      amount past due, including accrued
interest.

            

    

     

    It is
agreed that interest shall accumulate until payment of the original amount due
plus interest penalties have been received by the Intermediary.

     

    
      	
              C.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      	
               
      

            	
              3.

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

            

    

     

    For
purposes of interest calculations only, amounts due hereunder shall be deemed
paid upon receipt by the Intermediary.

    
       

      
        
          
            
              	Page 10	
                      

                    

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              D.

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

            

    

     

    
      	
              E.

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

            

    

     

    Article
XV - Offset (BRMA 36C)

     

    The
Company and the Reinsurer shall have the right to offset any balance or amounts
due from one party to the other under the terms of this Contract.  The
party asserting the right of offset may exercise such right any time whether the
balances due are on account of premiums or losses or otherwise.

     

    Article
XVI - Access to Records (BRMA 1D)

     

    The
Reinsurer or its designated representatives shall have access at any reasonable
time to all records of the Company which pertain in any way to this
reinsurance.

     

    Article
XVII - Liability of the Reinsurer

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    Article
XVIII - Net Retained Lines (BRMA 32E)

     

    
      	
              A.

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

            

    

     

    
      
        
          
            
              
                	Page 11	
                        

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              B. 

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

            

    

     

    Article
XIX - Errors and Omissions (BRMA 14F)

     

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

     

    Article
XX - Currency (BRMA 12A)

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    Article
XXI - Taxes (BRMA 50B)

     

    In
consideration of the terms under which this Contract is issued, the Company will
not claim a deduction in respect of the premium hereon when making tax returns,
other than income or profits tax returns, to any state or territory of the
United States of America or the District of Columbia.

     

    Article
XXII - Federal Excise Tax (BRMA 17D)

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      
        
          
            
              
                	Page 12	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Article
XXIII - Reserves

     

    
      	
              A.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

            	
              Escrow
      accounts for the benefit of the Company;
and/or

            

    

     

    
      	
            	
              3. 

            	
              Cash
      advances;

            

    

     

    if the
Reinsurer:

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    The
Reinsurer, at its sole option, may fund in other than cash if its method and
form of funding are acceptable to the insurance regulatory authorities
involved.

     

    
      	
              B.

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      	
               
      

            	
              3.

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

            

    

     

    
      
        
          
            
              
                	Page 13	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
            	
              4.

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

            

    

     

    
      	
               
      

            	
              5.

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

            

    

     

    In the
event the amount drawn by the Company on any letter of credit is in excess of
the actual amount required for B(1), B(2) or B(4), or in the case of B(3), the
actual amount determined to be due, the Company shall promptly return to the
Reinsurer the excess amount so drawn.

     

    Article
XXIV - Insolvency

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      
        
          
            
              
                	Page 14	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Article
XXV - Arbitration (BRMA 6J)

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
              C.

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

            

    

     

    
      	
              D.

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

            

    

     

    
      	
              E.

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

            

    

     

    
      
        
          
            
              
                	Page 15	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Article
XXVI - Service of Suit (BRMA 49C)

     

    (Applicable
if the Reinsurer is not domiciled in the United States of America, and/or is not
authorized in any State, Territory or District of the United States where
authorization is required by insurance regulatory authorities)

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    Article
XXVII - Severability (BRMA 72E)

     

    If any
provision of this Contract shall be rendered illegal or unenforceable by the
laws, regulations or public policy of any state, such provision shall be
considered void in such state, but this shall not affect the validity or
enforceability of any other provision of this Contract or the enforceability of
such provision in any other jurisdiction.

     

    Article
XXVIII - Governing Law (BRMA 71B)

     

    This
Contract shall be governed by and construed in accordance with the laws of the
State of Florida.

     

    Article
XXIX - Notices and Contract Execution

     

    
      	
              A.

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

            

    

     

    
      	
              B.

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

            

    

     

    
      	
               
      

            	
              1.

            	
              Paper
      documents with an original ink
signature;

            

    

     

    
      
        
          
            
              
                	Page 16	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.

            	
              Facsimile
      or electronic copies of paper documents showing an original ink signature;
      and/or

            

    

     

    
      	
               
      

            	
              3.

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

            

    

    

    
      	
              C.

            	
              This
      Contract may be executed in one or more counterparts, each of which, when
      duly executed, shall be deemed an
original.

            

    

     

    
      Article
XXX - Intermediary

    

    

    Aon
Benfield Inc., or one of its affiliated corporations duly licensed as a
reinsurance intermediary, is hereby recognized as the Intermediary negotiating
this Contract for all business hereunder.  All communications (including
but not limited to notices, statements, premiums, return premiums, commissions,
taxes, losses, loss adjustment expense, salvages and loss settlements) relating
to this Contract will be transmitted to the Company or the Reinsurer through the
Intermediary.  Payments by the Company to the Intermediary will be deemed
payment to the Reinsurer.  Payments by the Reinsurer to the Intermediary
will be deemed payment to the Company only to the extent that such payments are
actually received by the Company.

    

    In Witness Whereof, the
Company by its duly authorized representative has executed this Contract as of
the date undermentioned at:

    

    
      Lauderdale
Lakes, Florida, this 30 day of July in the year 2009.

    

    

    
      
        
          
            	
                    

                  
	
                    Federated
      National Insurance
Company

                  

          

        

      

    

     

    
      
        
          
            
              
                	Page 17	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
A

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued
to

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	 	
                                            First

                                          	 	 	
                                            Second

                                          	 	 	
                                            Third

                                          	 	 	
                                            Fourth

                                          	 	 	
                                            Fifth

                                          	 
	 
      	 	
                                            Excess

                                          	 	 	
                                            Excess

                                          	 	 	
                                            Excess

                                          	 	 	
                                            Excess

                                          	 	 	
                                            Excess

                                          	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Company’s
      Retention

                                          	 	$	5,000,000	 	 	$	19,447,762	 	 	$	58,916,306	 	 	$	83,573,570	 	 	$	103,573,570	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Reinsurer’s
      Per Occurrence Limit

                                          	 	$	4,447,762	 	 	$	39,468,544	 	 	$	24,657,264	 	 	$	20,000,000	 	 	$	8,000,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Reinsurer’s
      Term Limit

                                          	 	$	8,895,524	 	 	$	78,937,088	 	 	$	49,314,528	 	 	$	40,000,000	 	 	$	16,000,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Original
      PML

                                          	 	$	9,447,762	 	 	$	58,916,306	 	 	$	305,488,950	 	 	$	325,488,950	 	 	$	333,488,950	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Return
      Time

                                          	 	
                                            3.90-year

                                          	 	 	
                                            12.66-year

                                          	 	 	
                                            82.64-year

                                          	 	 	
                                            90.91-year

                                          	 	 	
                                            95.24
      year

                                          	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Minimum
      Premium

                                          	 	$	2,668,657	 	 	$	11,998,437	 	 	$	3,945,162	 	 	$	1,920,000	 	 	$	672,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Annual
      Deposit Premium

                                          	 	$	3,335,824	 	 	$	14,998,048	 	 	$	4,931,452	 	 	$	2,400,000	 	 	$	840,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            Deposit
      Premium Installments

                                          	 	$	833,956	 	 	$	3,749,512	 	 	$	1,232,863	 	 	$	600,000	 	 	$	210,000	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    The
figures listed above for each excess layer shall apply to each Subscribing
Reinsurer in the percentage share for that excess layer as expressed in its
Interests and Liabilities Agreement attached hereto.

     

    
      
         

        
          
            
              
                	Schedule A	
                        

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    War
Exclusion Clause

     

    As
regards interests which at time of loss or damage are on shore, no liability
shall attach hereto in respect of any loss or damage which is occasioned by war,
invasion, hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or confiscation by order
of any government or public authority.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    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

            

    

     

    
      	
            	
              (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 Reassured on
      or before 31st December 1958 shall be free from the application of the
      other provisions of this Clause until expiry date or 31st December 1960
      whichever first occurs whereupon all the provisions of this Clause shall
      apply.

            

    

     

    12/12/57

    N.M.A.
1119

    BRMA
35B

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Terrorism
Exclusion

    (Property Treaty
Reinsurance)

     

    Notwithstanding
any provision to the contrary within this Contract or any amendment thereto, it
is agreed that this Contract excludes loss, damage, cost or expense directly or
indirectly caused by, contributed to by, resulting from or arising out of or in
connection with any act of terrorism, as defined herein, regardless of any other
cause or event contributing concurrently or in any other sequence to the
loss.

     

    An act of
terrorism includes any act, or preparation in respect of action, or threat of
action designed to influence the government de jure or de facto of any nation or any
political division thereof, or in pursuit of political, religious, ideological
or similar purposes to intimidate the public or a section of the public of any
nation by any person or group(s) of persons whether acting alone or on behalf of
or in connection with any organization(s) or government(s) de jure or de facto, and
which:

     

    
      	
               
      

            	
              1.

            	
              Involves
      violence against one or more persons,
or

            

    

     

    
      	
               
      

            	
              2.

            	
              Involves
      damage to property; or

            

    

     

    
      	
               
      

            	
              3.

            	
              Endangers
      life other than the person committing the action;
  or

            

    

     

    
      	
               
      

            	
              4.

            	
              Creates
      a risk to health or safety of the public or a section of the public;
      or

            

    

     

    
      	
               
      

            	
              5.

            	
              Is
      designed to interfere with or disrupt an electronic
  system.

            

    

     

    This
Contract also excludes loss, damage, cost or expense directly or indirectly
caused by, contributed to by, resulting from or arising out of or in connection
with any action in controlling, preventing, suppressing, retaliating against or
responding to any act of terrorism.

     

    Notwithstanding
the above and subject otherwise to the terms, conditions, and limitations of
this Contract, in respect only of personal lines, this Contract will pay actual
loss or damage (but not related cost and expense) caused by any act of terrorism
provided such act is not directly or indirectly caused by, contributed to by,
resulting from or arising out of or in connection with biological, chemical, or
nuclear pollution or contamination.

     

    N.M.A.
2930b

    12/19/01

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    ACE
Tempest Reinsurance Ltd.

    Hamilton,
Bermuda

    (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

       0%
of the First Excess Catastrophe Reinsurance

    4.0% of
the Second Excess Catastrophe Reinsurance

    4.0% of
the Third Excess Catastrophe Reinsurance

       0%
of the Fourth Excess Catastrophe Reinsurance

       0%
of the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of _________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    ACE
      Tempest Reinsurance
Ltd.

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Actua Re
Ltd.

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued
to

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    It Is Hereby Agreed that the
Subscribing Reinsurer
hereby accepts the following percentage share(s) in the interests and
liabilities of the “Reinsurer” as set forth in the attached Contract captioned
above:

     

    43.5%  
of the First Excess Catastrophe Reinsurance

    0%   
of the Second Excess Catastrophe Reinsurance

    0%   
of the Third Excess Catastrophe Reinsurance

    0%  
 of the Fourth Excess Catastrophe Reinsurance

    0%  
 of the Fifth Excess Catastrophe Reinsurance

     

    It Is Further Agreed that this
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    It Is Also Agreed that the
following shall apply to the Subscribing Reinsurer’s share
in the attached Contract:

     

    
      
        	
                1.

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

              

      

       

      “Article X - Loss
Occurrence

    

     

    The term
‘loss occurrence’ shall mean the sum of all individual losses sustained by the
Company arising out of and directly occasioned by the same event, and shall be
limited to any storm that has ever been named or numbered by the National
Hurricane Center, including ensuing collapse and water
damage.  However, the duration and extent of any one ‘loss occurrence’
shall be limited to all individual losses sustained by the Company occurring
during any period of 96 consecutive hours arising out of and directly occasioned
by the same event.  The Company may choose the date and time when any
such period of consecutive hours commences provided that it is not earlier than
the date and time of the occurrence of the first recorded individual loss
sustained by the Company arising out of that  disaster, accident or
loss and provided that only one such period of 96 consecutive hours shall apply
with respect to one event, regardless of the duration of the
event.”

    
      
        
           

          
            
              
                
                  	Page 1 of
4	
                          

                        

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              2.

            	
              The
      following Articles shall be added to and made part of this
      Contract:

            

    

     

    
      “Article XXXI -
Obligations

    

     

    
      	
            	
              A. 

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

            

    

     

    
      	
            	
              B. 

            	
              The
      term ‘Obligations’ shall mean:

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      	
            	
              a.

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

            

    

     

    
      	
            	
              b. 

            	
              The
      Company’s reserves for losses reported and outstanding;
    plus

            

    

     

    
      	
            	
              c.

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

            

    

     

    
      	
            	
              d.

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

            

    

     

    The
amount so determined shall be recalculated at each month end until all liability
has been extinguished.

     

    
      	
            	
              C.

            	
              On
      December 15, 2009, collateral will be released consistent with the
      provisions of the Collateral Release
Article.

            

    

     

    
      	
            	
              D. 

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

            

    

     

    
      	
               
      

            	
              1.

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

            

    

     

    
      	
               
      

            	
              2.

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

            

    

     

    
      
        
          
            
              
                
                  	Page 2 of
      4	
                          

                        

                

              

            

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              3.

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

            

    

     

    
      	
               
      

            	
              4.

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

            

    

     

    In the
event the amount drawn by the Company on any Trust Fund or LOC is in excess of
the actual amount required, the Company shall return to the Reinsurer the excess
amount so drawn within 10 days of receiving notice of the amount
due.

     

    Article
XXXII - Collateral Release

     

    
      	
            	
              A. 

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

            

    

     

    
      	
            	
              B. 

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

            

    

     

    
      	
               
      

            	
              1.

            	
              Losses
      and allocated loss adjustment expense paid by the Company;
      plus

            

    

     

    
      	
               
      

            	
              2.

            	
              Reserves
      for losses reported and outstanding;
plus

            

    

     

    
      	
               
      

            	
              3.

            	
              Reserves
      for allocated loss adjustment expense reported and outstanding;
      plus

            

    

     

    
      	
               
      

            	
              4.

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

            

    

     

    
      	
            	
              C. 

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

            

    

    

    
      
        
          
            
              
                
                  
                    	
                            Buffer Loss Multiplier table

                          	 
	
                            Number of

                          	 	 	 	 	 	 	 	 	 
	
                            days since

                          	 	 	 	 	 	 	 	 	 
	
                            loss event

                          	 	
                            Windstorm

                          	 	 	
                            Earthquake

                          	 	 	
                            Other event

                          	 
	
                            0
      to 90

                          	 	 	180	%	 	 	250	%	 	 	200	%
	
                            91
      to 180

                          	 	 	145	%	 	 	200	%	 	 	165	%
	
                            181
      to 270

                          	 	 	125	%	 	 	175	%	 	 	140	%
	
                            271
      to 365

                          	 	 	110	%	 	 	150	%	 	 	115	%
	
                            366
      to 455

                          	 	 	100	%	 	 	125	%	 	 	100	%
	
                            456
      to 545

                          	 	 	100	%	 	 	110	%	 	 	100	%
	
                            Thereafter

                          	 	 	100	%	 	 	100	%	 	 	100	%

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	Page 3 of
      4	
                        

                      

              

            

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      
        	
              	
                D. 

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

              

      

    

    

    
      	
            	
              E. 

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

            

    

    

    
      	
            	
              F. 

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

            

    

    

    It is Also Agreed that the
Subscribing Reinsurer’s share in the
attached Contract shall be separate and apart from the shares of the other
reinsurers, and shall not be joint with the shares of the other reinsurers, it
being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities
of the other reinsurers.

    

    In Witness Whereof, the
parties hereto by their respective duly authorized representatives have executed
this Agreement as of the dates undermentioned at:

    

    Lauderdale
Lakes, Florida, this 30 day of July in the year 2009.

    

    
      
        
          
            
              	

                      

                    
	
                      Federated
      National Insurance
Company

                    

            

          

        

      

    

    

    Hamilton,
Bermuda, this ____ day of _______________________ in the year
_________.

    

    
      
        
          
            	 
      
	
                    Actua
      Re Ltd.

                  

          

        

      

    

     

    
      
        
          
            
              
                	Page 4 of
      4	
                        

                      

              

            

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Allianz
Risk Transfer AG (Bermuda Branch)

    Pembroke,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%  
 of the First Excess Catastrophe Reinsurance

    0%    of
the Second Excess Catastrophe Reinsurance

      18.0% 
   of the Third Excess Catastrophe Reinsurance

      40.0%
    of the Fourth Excess Catastrophe
Reinsurance

      20.0% 
   of the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In any
action, suit or proceeding to enforce the Subscribing Reinsurer’s obligations
under the attached Contract, service of process may be made upon Corporation
Service Company, 1133 Avenue of the Americas, Suite 3100, New York, NY
10036.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Pembroke,
Bermuda, this _______ day of _________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Allianz
      Risk Transfer AG (Bermuda
Branch)

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Ariel
Reinsurance Company Ltd.

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

      10.0%    
of the Second Excess Catastrophe Reinsurance

    2.5%    
of the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Ariel
      Reinsurance Company
Ltd.

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    DaVinci
Reinsurance Ltd.

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

    7.5% 
   of the Second Excess Catastrophe Reinsurance

    0%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    DaVinci
      Reinsurance Ltd.

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Everest
Reinsurance Company

    A
Delaware Corporation

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

      12.0%    
of the First Excess Catastrophe Reinsurance

      16.5%    
of the Second Excess Catastrophe Reinsurance

      16.5%    
of the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Liberty
Corner, New Jersey, this _______ day of ___________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Everest
      Reinsurance
Company

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Flagstone
Reassurance Suisse SA - Bermuda Branch

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

      15.0%    
of the Second Excess Catastrophe Reinsurance

      22.5%     of
the Third Excess Catastrophe Reinsurance

      15.0%     of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Flagstone
      Reassurance Suisse SA - Bermuda
Branch

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Hiscox
Insurance Company (Bermuda) Limited

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    3.0%     of
the First Excess Catastrophe Reinsurance

    3.0%    
of the Second Excess Catastrophe Reinsurance

    3.0%     of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Hiscox
      Insurance Company (Bermuda)
Limited

                  

          

        

      

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Montpelier
Reinsurance Ltd.

    Pembroke,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

     with respect to
the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    8.0%    
of the First Excess Catastrophe Reinsurance

    8.0%     of
the Second Excess Catastrophe Reinsurance

    8.0%     of
the Third Excess Catastrophe Reinsurance

      20.0%     of
the Fourth Excess Catastrophe Reinsurance

      25.0%     of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Montpelier
      Reinsurance Ltd.

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Munich
Reinsurance America, Inc.

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

     5.0%    of
the Second Excess Catastrophe Reinsurance

    0%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

      30.0%    
of the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Princeton,
New Jersey, this _______ day of ______________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Munich
      Reinsurance America,
Inc.

                  

          

        

      

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Platinum
Underwriters Bermuda, Ltd.

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

      17.5%    
of the First Excess Catastrophe Reinsurance

    8.0%    
of the Second Excess Catastrophe Reinsurance

    0%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Platinum
      Underwriters Bermuda,
Ltd.

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    QBE
Reinsurance Corporation

    Philadelphia,
Pennsylvania

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

    0%    of
the Second Excess Catastrophe Reinsurance

     4.0%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    New York,
New York, this _______ day of ________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    QBE
      Reinsurance
Corporation

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Renaissance
Reinsurance, Ltd.

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

     7.5%    of
the Second Excess Catastrophe Reinsurance

    0%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Renaissance
      Reinsurance, Ltd.

                  

          

        

      

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Torus
Insurance (Bermuda) Limited

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

     4.0%    of
the Second Excess Catastrophe Reinsurance

     2.5%    of
the Third Excess Catastrophe Reinsurance

    0%    of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Torus
      Insurance (Bermuda)
Limited

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Amlin
Bermuda Limited

    Hamilton,
Bermuda

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

    3.0%    
of the Second Excess Catastrophe Reinsurance

    7.5%    
of the Third Excess Catastrophe Reinsurance

    5.0%     of
the Fourth Excess Catastrophe Reinsurance

    0%    of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Hamilton,
Bermuda, this _______ day of __________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Amlin
      Bermuda Limited

                  

          

        

      

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Liberty
Syndicates LIB 4472

    (Paris
Office Underwriting)

    Paris,
France

     (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    0%    of
the First Excess Catastrophe Reinsurance

    0%    of
the Second Excess Catastrophe Reinsurance

    3.0%    
of the Third Excess Catastrophe Reinsurance

    8.0%     of
the Fourth Excess Catastrophe Reinsurance

    8.0%     of
the Fifth Excess Catastrophe Reinsurance

     

     This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    The Subscribing Reinsurer’s share
in the attached Contract shall be separate and apart from the shares of the
other reinsurers, and shall not be joint with the shares of the other
reinsurers, it being understood that the Subscribing Reinsurer shall
in no event participate in the interests and liabilities of the other
reinsurers.

     

    In Witness Whereof, the Subscribing Reinsurer by its
duly authorized representative has executed this Agreement as of the date
undermentioned at:

     

    Paris,
France, this ________ day of _____________________________ in the year
________.

     

    
      
        
          
            	 
      
	
                    Liberty
      Syndicates LIB 4472 (Paris Office
Underwriting)

                  

          

        

      

    

     

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Certain
Underwriting Members of Lloyd’s

    shown in
the Signing Page(s) attached hereto

    (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

      10.0%    
of the First Excess Catastrophe Reinsurance

    2.5%     of
the Second Excess Catastrophe Reinsurance

    2.5%     of
the Third Excess Catastrophe Reinsurance

    6.0%     of
the Fourth Excess Catastrophe Reinsurance

    9.0%     of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    In any
action, suit or proceeding to enforce the Subscribing Reinsurer’s
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New
York  10019.

     

    Signed
for and on behalf of the Subscribing Reinsurer in the
Signing Page(s) attached hereto.

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Signing
Page

     

    attaching
to and forming part of the

     

    Interests
and Liabilities Agreement

     

    of

     

    Certain
Underwriting Members of Lloyd’s

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

     

    (Re)Insurer’s
Liability Clause - LMA3333

     

    (Re)insurer’s liability several not
joint

     

    The
liability of a (re)insurer under this contract is several and not joint with
other (re)insurers party to this contract.  A (re)insurer is liable only
for the proportion of liability it has underwritten.  A (re)insurer is not
jointly liable for the proportion of liability underwritten by any other
(re)insurer.  Nor is a (re)insurer otherwise responsible for any liability
of any other (re)insurer that may underwrite this contract.

     

    The
proportion of liability under this contract underwritten by a (re)insurer (or,
in the case of a Lloyd’s syndicate, the total of the proportions underwritten by
all the members of the syndicate taken together) is shown next to its
stamp.  This is subject always to the provision concerning “signing”
below.

     

    In the
case of a Lloyd’s syndicate, each member of the syndicate (rather than the
syndicate itself) is a (re)insurer.  Each member has underwritten a
proportion of the total shown for the syndicate (that total itself being the
total of the proportions underwritten by all the members of the syndicate taken
together).  The liability of each member of the syndicate is several
and not joint with other members.  A member is liable only for that
member’s proportion.  A member is not jointly liable for any other
member’s proportion.  Nor is any member otherwise responsible for any
liability of any other (re)insurer that may underwrite this
contract.  The business address of each member is Lloyd’s, One Lime
Street, London EC3M 7HA.  The identity of each member of a Lloyd’s
syndicate and their respective proportion may be obtained by writing to Market
Services, Lloyd’s, at the above address.

     

    Proportion
of liability

     

    Unless
there is “signing” (see below), the proportion of liability under this contract
underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of the syndicate taken
together) is shown next to its stamp and is referred to as its “written
line”.

     

    Where
this contract permits, written lines, or certain written lines, may be adjusted
(“signed”).  In that case a schedule is to be appended to this
contract to show the definitive proportion of liability under this contract
underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of the syndicate taken
together).  A definitive proportion (or, in the case of a Lloyd’s
syndicate, the total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed
line”.  The signed lines shown in the schedule will prevail over the
written lines unless a proven error in calculation has occurred.

     

    Although
reference is made at various points in this clause to “this contract” in the
singular, where the circumstances so require this should be read as a reference
to contracts in the plural.

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Interests
and Liabilities Agreement

     

    of

     

    Certain
Insurance Companies

    shown in
the Signing Page(s) attached hereto

    (hereinafter referred to as the
“Subscribing Reinsurer”)

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

    Lauderdale
Lakes, Florida

     

    The Subscribing Reinsurer hereby
accepts the following percentage shares in the interests and liabilities of the
“Reinsurer” as set forth in the attached Contract captioned above:

     

    6.0%     of
the First Excess Catastrophe Reinsurance

    6.0%     of
the Second Excess Catastrophe Reinsurance

    6.0%     of
the Third Excess Catastrophe Reinsurance

    6.0%     of
the Fourth Excess Catastrophe Reinsurance

    8.0%     of
the Fifth Excess Catastrophe Reinsurance

     

    This
Agreement shall become effective at 12:01 a.m., Eastern Standard Time, July 1,
2009, and shall remain in force until 12:01 a.m., Eastern Standard Time, July 1,
2010, unless earlier terminated in accordance with the provisions of the
attached Contract.

     

    In any
action, suit or proceeding to enforce the Subscribing Reinsurer’s
obligations under the attached Contract, service of process may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New
York  10019.

     

    Signed
for and on behalf of the Subscribing Reinsurer in the
Signing Page(s) attached hereto.

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Signing
Page

     

    attaching
to and forming part of the

     

    Interests
and Liabilities Agreement

     

    of

     

    Certain
Insurance Companies

     

    with
respect to the

     

    Excess
Catastrophe Reinsurance Contract

    Effective:  July
1, 2009

     

    issued to
and duly executed by

     

    Federated
National Insurance Company

     

    (Re)Insurer’s
Liability Clause - LMA3333

     

    (Re)insurer’s liability several not
joint

     

    The
liability of a (re)insurer under this contract is several and not joint with
other (re)insurers party to this contract.  A (re)insurer is liable only
for the proportion of liability it has underwritten.  A (re)insurer is not
jointly liable for the proportion of liability underwritten by any other
(re)insurer.  Nor is a (re)insurer otherwise responsible for any liability
of any other (re)insurer that may underwrite this contract.

     

    The
proportion of liability under this contract underwritten by a (re)insurer (or,
in the case of a Lloyd’s syndicate, the total of the proportions underwritten by
all the members of the syndicate taken together) is shown next to its
stamp.  This is subject always to the provision concerning “signing”
below.

     

    In the
case of a Lloyd’s syndicate, each member of the syndicate (rather than the
syndicate itself) is a (re)insurer.  Each member has underwritten a
proportion of the total shown for the syndicate (that total itself being the
total of the proportions underwritten by all the members of the syndicate taken
together).  The liability of each member of the syndicate is several
and not joint with other members.  A member is liable only for that
member’s proportion.  A member is not jointly liable for any other
member’s proportion.  Nor is any member otherwise responsible for any
liability of any other (re)insurer that may underwrite this
contract.  The business address of each member is Lloyd’s, One Lime
Street, London EC3M 7HA.  The identity of each member of a Lloyd’s
syndicate and their respective proportion may be obtained by writing to Market
Services, Lloyd’s, at the above address.

     

    Proportion
of liability

     

    Unless
there is “signing” (see below), the proportion of liability under this contract
underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of the syndicate taken
together) is shown next to its stamp and is referred to as its “written
line”.

     

    Where
this contract permits, written lines, or certain written lines, may be adjusted
(“signed”).  In that case a schedule is to be appended to this
contract to show the definitive proportion of liability under this contract
underwritten by each (re)insurer (or, in the case of a Lloyd’s syndicate, the
total of the proportions underwritten by all the members of the syndicate taken
together).  A definitive proportion (or, in the case of a Lloyd’s
syndicate, the total of the proportions underwritten by all the members of a
Lloyd’s syndicate taken together) is referred to as a “signed
line”.  The signed lines shown in the schedule will prevail over the
written lines unless a proven error in calculation has occurred.

     

    Although
reference is made at various points in this clause to “this contract” in the
singular, where the circumstances so require this should be read as a reference
to contracts in the plural.

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