Document:

First-Third Excess of Loss Reinsurance Agreement 8493-00-0009-00 January 1, 2006

 Exhibit 10.88 
  

 

 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 issued to 
 SCPIE HOLDINGS, INC., and/or 
 SCPIE INDEMNITY COMPANY and/or 
 AMERICAN HEALTHCARE INDEMNITY COMPANY, and/or 
 AMERICAN HEALTHCARE SPECIALTY COMPANY, and/or 
 SCPIE INSURANCE SERVICES, INC., and/or 
 SCPIE MANAGEMENT SERVICES, INC. 
 Los Angeles, California 
  

			
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 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 TABLE OF CONTENTS 
  

					
	  	 	 	  	Page
	Article	 		  	
		 	Preamble	  	4
	1	 	Business Covered	  	4
	2	 	Term	  	5
	3	 	Attachment of Liability	  	6
	4	 	Territory	  	6
	5	 	Exclusions	  	6
	6	 	Warranties	  	7
	7	 	Definitions	  	8
	8	 	Excess of Original Policy Limits	  	10
	9	 	Extra Contractual Obligations	  	10
	10	 	Net Retained Lines	  	11
	11	 	Reports and Remittances	  	11
	12	 	Notice of Loss and Loss Settlements	  	11
	13	 	Alternate Payee	  	12
	14	 	Commutation	  	13
	15	 	Offset	  	14
	16	 	Original Conditions	  	14
	17	 	No Third Party Rights	  	14
	18	 	Currency	  	14
	19	 	Access to Records	  	14
	20	 	Confidentiality	  	15
	21	 	Unauthorized Reinsurance	  	15
	22	 	Taxes	  	17
	23	 	Errors and Omissions	  	17
	24	 	Insolvency	  	18
	25	 	Arbitration	  	19
	26	 	Service of Suit	  	20
	27	 	Governing Law	  	21
	28	 	Agency	  	21
	29	 	Intermediary	  	21
	30	 	Mode of Execution	  	21
		 	Company Signing Block	  	22
			
	Exhibits	 		  	
		 	Exhibit A - First Layer	  	23
		 	Exhibit B - Second Layer	  	26
		 	Exhibit C - Third Layer	  	27

  

			
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 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 TABLE OF CONTENTS 
  

					
	  	 	 	  	Page
	 Exhibits
 (Cont’d)
	 		  	
		 	Exhibit D - Loss Funding - including IBNR	  	28
			
	Attachments	 		  	
		 	Nuclear Energy Risks Exclusion Clause (Reinsurance) (1994) (Worldwide Excluding U.S.A. and Canada)	  	29
		 	Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.	  	32
		 	Nuclear Incident Exclusion Clause - Liability - Reinsurance - Canada	  	37

  

			
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 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 (the “Contract”) 
 issued to

 SCPIE HOLDINGS, INC., and/or 
 SCPIE INDEMNITY COMPANY and/or 
 AMERICAN HEALTHCARE INDEMNITY COMPANY, and/or 
 AMERICAN HEALTHCARE SPECIALTY COMPANY, and/or 
 SCPIE INSURANCE SERVICES, INC., and/or 
 SCPIE MANAGEMENT SERVICES, INC. 
 Los Angeles, California 
 (collectively, the “Company”) 
 by 
 THE SUBSCRIBING REINSURER(S) IDENTIFIED 
 IN THE INTERESTS AND LIABILITIES AGREEMENT(S) 
 ATTACHED TO AND FORMING PART OF THIS CONTRACT 
 (the “Reinsurer”) 
 ARTICLE 1 
 BUSINESS COVERED 
 The Reinsurer agrees to reimburse the Company, on an excess of loss basis, for the amount of Ultimate Net Loss which the
Company may pay as the result of Claims Made during the term of this Contract under the classes of insurance set forth below with respect to subject Policies which are in force or may hereinafter come into force during the term of this Contract,
subject to the terms and conditions of this Contract, including the attached Exhibits A, B and C: 
  

	 	1.	Physicians and Surgeons Comprehensive Professional and Business Liability, including clinics and clinical laboratories. 

  

	 	2.	Professional and Business Liability Policies for hospitals and healthcare facilities, including: 

  

	 	a.	Modified Claims Made Coverage hospitals and medical centers (primary and excess); 

  

	 	b.	Claims Made Coverage hospitals and medical centers (primary and excess); 

  

	 	c.	Excess Automobile Liability and excess Employers Liability associated with the Policy forms outlined above. 

  

			
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	 	3.	Errors and Omissions Liability Policies for managed care organizations and Directors and Officers Liability Policies. 

  

	 	4.	Physicians and Surgeons Comprehensive Professional Liability and Personal Umbrella business underwritten by Brown & Brown, Inc., Tampa, Florida. 

ARTICLE 2 
 TERM 
  

	 	A.	Except as provided in paragraph C below, this Contract shall apply to Claims Made during the 12-month period from January 1, 2006 through December 31, 2006, both days
inclusive. In the event a Loss Event involves a loss or losses covered under the current Contract term and a prior contract term(s), no recovery shall be made hereunder in respect of any such Loss Event which occurred prior to:

  

	 	1.	January 1, 1979, as regards Extra Contractual Obligations (as provided for in the Extra Contractual Obligations Article); 

  

	 	2.	January 1, 1976, as regards all other losses. 

  

	 	B.	It is understood however, that in respect of Personal Liability and discovery period coverage for deceased, disabled, retired and withdrawing physicians and for physicians ceasing
medical practice within the state, this Contract covers Claims Made during the term of this Contract. In the event this Contract is not renewed, all such liability shall be assumed by the Company with effect from the date of expiration or
termination. 

  

	 	C.	Notwithstanding the above and without prejudice to any rights or remedies the Reinsurer may otherwise have, the Reinsurer may terminate this Contract upon 60 days’ prior
written notice to the Company in the event that control of the Company is transferred by change of ownership or otherwise. 

  

	 	D.	The provisions of paragraphs A and B notwithstanding, the Reinsurer agrees, at the Company’s option, to continue to cover the in-force portfolio of liability covered on the
date of expiration or termination for a further period of 12 months, at terms to be mutually agreed. Should the Company exercise this option, the Company shall give the Reinsurer notice prior to expiration or termination that it wishes to exercise
this option. 

  

	 	E.	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. 

  

	 	F.	Notwithstanding the expiration or termination of this Contract, as hereinabove provided, the provisions of this Contract shall continue to apply to all unfinished business hereunder
to the end that all obligations and liabilities incurred by each party hereunder prior to expiration or termination shall be fully performed and discharged. 

  

			
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 ARTICLE 3 
 ATTACHMENT OF LIABILITY 
  

	A.	For purposes of determining the attachment of the Reinsurer’s liability hereunder as respects any one Loss Event, all losses (including discovery period losses) involving one
or more original insureds, arising from the same incident, and in which first notice of claim or circumstance is notified to the Company during the term of this Contract shall be covered hereunder. 

  

	B.	The date of each Loss Event shall be the earliest date, within the term of this Contract, that the Company has received first notice of claim or circumstance.

 ARTICLE 4 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 
 ARTICLE 5 
 EXCLUSIONS 
 This Contract specifically excludes: 
  

	 	1.	All 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, plan, pool, association, fund or other arrangement, howsoever 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. 

  

	 	2.	Losses excluded by the attached Nuclear Energy Risk Exclusion Clause (Reinsurance) (1994) (Worldwide Excluding U.S.A. and Canada), the attached Nuclear Incident Exclusion
Clause - Liability - Reinsurance - U.S.A. and the attached Nuclear Incident Exclusion Clause - Liability - Reinsurance - Canada. 

  

	 	3.	Assumed reinsurance other than for licensing, financial rating purposes or acquisition purposes. 

  

			
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	        4.	 	     a.	    	All actual or alleged losses, liabilities, damages, injuries, defense costs, costs or expense(s) directly or indirectly arising out of, contributed by, caused by, resulting from or in connection
with any of the following regardless of any other cause or event contributing concurrently or in any other sequence of the loss:

  

	 	i.	war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, revolution, rebellion, insurrection, uprising,
military or usurped power, confiscation by order of any public authority or government de jure or de facto or martial law; 

  

	 	ii.	riots, strikes or civil commotion; or 

  

	 	iii.	any Act of Terrorism. 

  

	 	b.	For purposes of this exclusion, an “Act of Terrorism” means an activity that involves a violent act or the unlawful use of force or an unlawful act dangerous to human
life, tangible or intangible property or infrastructure or a threat thereof; and appears to be intended to (i) intimidate or coerce a civilian population, or (ii) disrupt any segment of the economy of a government de jure or de facto,
state or country; or (iii) overthrow, influence or affect the conduct or policy of any government de jure or de facto by intimidation or coercion; or (iv) affect the conduct of a government de jure or de facto by mass destruction,
assassination, kidnapping or hostage-taking. 

  

	 	c.	This exclusion also applies to all actual or alleged losses, liabilities, damages, injuries, defense costs, costs or expenses directly or indirectly arising out of, contributed by,
caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing, retaliating against or responding to (4)(a)(i), (4)(a)(ii) and/or (4)(a)(iii) above. 

  

	 	d.	If the Reinsurer alleges that by reason of this exclusion any actual or alleged losses, liabilities, damages, injuries, defense costs, costs or expenses is not covered by this
Contract, the burden of proving the contrary shall be upon the Company. 

  

	 	e.	In the event any portion of this exclusion is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 

 ARTICLE 6 
 WARRANTIES 
 The Company warrants the following in respect of the business covered hereunder: 
  

	 	1.	In respect of Physicians and Surgeons Comprehensive Professional and Business Liability Policies, including Clinics and Clinical Laboratories, the maximum Policy limit is
$10,000,000, subject to inuring protection of $8,000,000 in excess of $2,000,000, with a maximum aggregate of $8,000,000 during each 12-month period, or so deemed. 

  

			
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	 	2.	Coverage for Professional and Business Liability Policies for Hospitals is restricted to Policies incepting prior to January 1, 2002, and the maximum Policy limit is
$50,000,000, or so deemed. 

  

	 	3.	In respect of Professional and Business Liability Policies for Healthcare Facilities, the maximum Policy limit is $10,000,000 for Policies incepting prior to January 1, 2002,
and $5,000,000 for Policies incepting on or after January 1, 2002, or so deemed. 

  

	 	4.	In respect of Errors and Omissions Liability Policies for Managed Care Organizations, Directors and Officers Liability Policies and Employment Practices Liability Insurance, the
maximum Policy limit is $5,000,000 for Policies incepting prior to January 1, 2002, and $1,000,000 for Policies incepting on or after January 1, 2002, or so deemed. 

  

	 	5.	In respect of Professional and Business Liability Policies for Dentists, excluding coverages for Oral and Maxillofacial Surgeons, the maximum Policy limit is $10,000,000 for
Policies incepting prior to January 1, 2002, and $2,000,000 for Policies incepting on or after January 1, 2002, or so deemed. 

 ARTICLE 7 
 DEFINITIONS 
  

					
	A.	 	    1.	    	“Ultimate Net Loss” means the sum actually paid by the Company in settlement of losses for which it is held liable, including Loss Adjustment Expense, 80% of any Extra Contractual
Obligation and 100% of any Loss in Excess of the Original Policy Limit, as defined in the respectively captioned Articles, after making proper deductions for all recoveries, salvages, and claims upon other reinsurances and insurances which inure to
the benefit of the Reinsurer under this Contract, whether collectible or not; provided, however, that in the event of the insolvency of the Company, “Ultimate Net Loss” means the amount of loss which the Company has incurred or for which
it is liable, and payment by the Reinsurer shall be made to the liquidator, receiver or statutory successor of the Company in accordance with the provisions of the Insolvency Article in this Contract. Nothing in this clause, however, shall be
construed to mean that losses under this Contract are not recoverable until the final Ultimate Net Loss of the Company has been ascertained.

  

	 	2.	In the event a verdict or judgment is reduced by an appeal or a settlement, subsequent to the entry of a judgment, resulting in an ultimate saving on such verdict or judgment, or a
judgment is reversed outright, the Loss Adjustment Expense incurred in securing such final reduction or reversal shall (a) be prorated between the 

  

			
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 Reinsurer and the Company in proportion that each benefits from such reduction or reversal; or
(b) when the terms and conditions of the Company’s original Policies reinsured hereunder include Loss Adjustment Expense as part of the Policy limit, be added to the Company’s Ultimate Net Loss. 
  

	B.	“Loss Adjustment Expense” means all costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment,
settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal bonds and including (1) pre-judgment interest, unless included as part of the award or judgment; (2) post-judgment
interest; and (3) legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto. Office expenses and salaries of officials and employees not classified as loss adjusters are not chargeable as
expenses for the purpose of this paragraph. 

  

	C.	“Loss Event” means the happening of one or a series of related acts, errors, or omissions to act, accidents or occurrences arising out of one event.

  

	D.	“Claims Made” shall be determined as (1) in respect of Claims Made Policies, claims first notified to the Company during the term of this Contract on any in force
Policy or reporting endorsement arising out of incidents subsequent to the retroactive date of said Policy as the result of the rendering of or failure to render a professional service or the reporting of losses which arise from the insured premises
and operations incidental to the practice of a physician, hospital or managed care organization and/or (2) in respect of Occurrence or Modified Claims Made Policies, claims or losses first notified to the Company during the term of this
Contract. 

  

	E.	“Gross Net Earned Premium Income” means the gross earned premium on business the subject matter hereof, less cancellations and return premiums and less premiums paid for
reinsurance, recoveries under which would inure to the benefit of this Contract. Such premium income shall be understood to include: 

  

	 	1.	That content of pre-paid premiums under Policies in respect of Deceased, Disabled and Retired Insureds, the coverage for which becomes effective during the term of this Contract;

  

	 	2.	The premium transferred internally by the Company from a prior contract, in respect of Deceased, Disabled and Retired Insureds and in respect of other withdrawing insureds who have
purchased extended coverage under reporting endorsements. 

  

	F.	“Policy” means any binder, policy, or contract of insurance or reinsurance issued, accepted or held covered provisionally or otherwise, by or on behalf of the Company.

  

			
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 ARTICLE 8 
 EXCESS OF ORIGINAL POLICY LIMITS 
  

	A.	This Contract shall protect the Company, within the limits hereof, in connection with any loss in excess of the limit of its original Policy, such Loss in Excess of the Original
Policy Limit having been incurred because of failure by it to settle within the Policy limit, or by reason of 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 any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

  

	B.	However, this Article shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors or a corporate officer 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. 

  

	C.	For the purposes of this Article, the word “Loss” shall mean any amounts for which the Company would have been contractually liable to pay had it not been for the limit of
the original Policy. 

 ARTICLE 9 
 EXTRA CONTRACTUAL OBLIGATIONS 
  

	A.	This Contract shall protect the Company within the limits hereof, where the Ultimate Net Loss includes Extra Contractual Obligations. “Extra Contractual Obligations” are
defined as those liabilities not covered under any other provision of this Contract and which arise from handling of any claim on business covered hereunder, such liabilities arising because of, but not limited to the following: failure by the
Company to settle within the Policy limit, or by reason of 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 any action against its insured or reinsured or in
the preparation or prosecution of an appeal consequent upon such action. 

  

	B.	The date on which an Extra Contractual Obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original accident, casualty, disaster or
loss and furthermore, for the purposes hereof be deemed to follow the Claims Made provisions of this Contract, subject always to the provisions of the Term Article. 

  

	C.	However, this Article shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors or a corporate officer 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 

  

	D.	In no event shall coverage be provided to the extent not permitted under law. 

  

			
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 ARTICLE 10 
 NET RETAINED LINES 
  

	A.	This Contract applies to only that portion of any insurance which the Company retains net for its own account; 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 insurance which the Company retains net for its own account shall be included. 

  

	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
underwriters, whether specific or general, any amount which may become due from them, whether such inability arises from the insolvency of such other underwriters or otherwise. 

 ARTICLE 11 
 REPORTS AND REMITTANCES 
  

	A.	The Company shall provide the Reinsurer, within 45 days at the end of each calendar quarter, all necessary data respecting premiums and losses, including reserves thereon, on forms
mutually acceptable to the Company and the Reinsurer. 

  

	B.	Payments of the minimum, deposit and adjusted premium shall be made in accordance with the provisions of the Premium Articles in the attached Exhibits A, B and C. Payments of the
reinstatement premium, if any, shall be made in accordance with the provisions of the Reinstatement Articles in the attached Exhibits B and C. Payments of the contingent commission, if any, shall be made in accordance with the provisions of the
Contingent Commission Article in the attached Exhibit A. 

  

	C.	Payment by the Reinsurer of its portion of Ultimate Net Loss paid by the Company shall be made by the Reinsurer to the Company as soon as possible, but not later than 15 days after
proof of payment by the Company is received by the Reinsurer. 

 ARTICLE 12 
 NOTICE OF LOSS AND LOSS SETTLEMENTS 
  

	A.	In the event of a claim arising hereunder which either results in or appears to be of serious enough nature as probably to result in a loss involving this Contract, the Company
shall give notice as soon as reasonably practicable to the Reinsurer and the Company shall keep the Reinsurer advised of all subsequent developments in connection therewith. 

  

			
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	B.	The Company shall also promptly notify the Reinsurer of all incidents involving the following injuries for which the Company has established an indemnity reserve of $550,000 or
greater and with Policy limits that affect the Reinsurer: 

  

	 	1.	Death of high wage earner with two or more dependents; 

  

	 	2.	Brain injury; 

  

	 	3.	Nerve injury; 

  

	 	4.	Paralysis or cord injury; 

  

	 	5.	Amputations; 

  

	 	6.	Internal injuries which require continuous treatment (e.g., dialysis, hyperalimentation, failure to diagnose); 

  

	 	7.	Blindness. 

  

	C.	All loss settlements made by the Company, provided they are within the terms of the Company’s original Policies and of this Contract, including Extra Contractual Obligations
and Loss in Excess of Original Policy Limits, shall be unconditionally binding upon Reinsurer and amounts falling to the share of the Reinsurer shall be payable to the Company in accordance with the provisions set forth in paragraph C of the Reports
and Remittances Article. 

 ARTICLE 13 
 ALTERNATE PAYEE 
  

	A.	This Article applies only as respects the Scripps Clinic Policy issued to the Scripps Clinical Medical Group and Scripps Clinical Pathology Laboratory, as covered hereunder.

  

	B.	In the event the Company has a conservator, liquidator or receiver appointed, or becomes the subject of any conservation, liquidation or insolvency proceeding, any insurance or
reinsurance company from which the Company has assumed business subject hereto (the “Underlying Carrier”) shall be substituted for the Company as payee of the reinsurance provided hereunder, as respects any claim or claims arising from
such assumed business. The Reinsurer, upon notice from the Underlying Carrier, shall make payment of any such reinsurance recoverables directly to the Underlying Carrier. 

  

	C.	In the event the foregoing provisions apply, all the other provisions of this Contract shall apply to Underlying Carrier in the same manner as if the Underlying Carrier were
substituted for the Company as the reinsured party hereunder, and to the extent this Contract reinsures the Underlying Carrier, coverage hereunder shall be excluded as respects the Company. In no event shall the provisions of this Article subject
the Reinsurer to any duplicate liability to or on behalf of the Company or its liquidator, receiver, conservator or statutory successor. 

  

			
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 ARTICLE 14 
 COMMUTATION 
  

	A.	The Company or the Reinsurer may at any time express its desire to the other party to commute all losses which are applicable to the term of this Contract and which are still
unsettled. In such event the Company and the Reinsurer shall mutually determine and evaluate such losses and the payment by the Reinsurer of its proportion of the amount so ascertained and mutually agreed to be the value of such losses shall relieve
both parties of all further liability under this Contract, in respect of both known and unknown losses. 

  

	B.	In the event that the Company transfers control or institutes changes in its claims handling procedures or loss reserving process in a manner which materially affects the parties
hereunder, the Reinsurer may express its desire to the Company to commute all losses which are applicable to the term of this Contract and which are still unsettled, upon 60 days’ prior written notice. Upon such event the Company and the
Reinsurer shall mutually determine and evaluate such losses and the payment by the Reinsurer of its proportion of the amount so ascertained and mutually agreed to be the value of such losses shall relieve both parties of all further liability under
this Contract, in respect of both known and unknown losses. 

  

	C.	If agreement cannot be reached, the Company and the Reinsurer may mutually appoint an actuary or appraiser to investigate, determine and capitalize such claim or claims. If both
parties then agree, the Reinsurer shall pay its proportion of the amount so determined to be the capitalized value of such claim or claims. 

  

	D.	If the parties fail to agree as outlined in paragraph C above, they may agree to settle any difference using a panel of three actuaries, one to be chosen by each party and the third
by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment,
each of them shall name two, of whom the other shall decline one, and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of medical malpractice claims and shall be Fellows of the Casualty
Actuarial Society or of the American Academy of Actuaries. None of the actuaries shall be under the control of either party to this Contract. Each party shall submit its case to its actuary within 30 days of the appointment of the third actuary. The
decision in writing of any two actuaries, when filed with the parties hereto, shall be final and binding on both parties. The expense of the actuaries and of the commutation shall be equally divided between the two parties. Said commutation shall
take place at the Company’s head office, unless some other place is mutually agreed upon by the Company and the Reinsurer. 

  

			
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 ARTICLE 15 
 OFFSET 
 The Company and the Reinsurer may offset any balance or amount due from one party to the other under this
Contract or any other agreement heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. 
 ARTICLE 16 
 ORIGINAL CONDITIONS 
 All reinsurance under this Contract shall be subject to the same rates, terms, conditions, waivers and interpretations, and to the same modifications and alterations as the respective Policies of the Company. However,
in no event shall this be construed in any way to provide coverage outside the terms and conditions set forth in this Contract. 
 ARTICLE
17 
 NO THIRD PARTY RIGHTS 
 Except as provided in
the Alternate Payee Article, nothing hereinafter shall in any manner create any obligations or establish any rights against the Reinsurer in favor of any third parties or any persons not parties to this Contract. 
 ARTICLE 18 
 CURRENCY 
 Premiums shall be payable by the Company and losses shall be paid to the Company in United States currency. 
 ARTICLE 19 
 ACCESS TO RECORDS 
  

	A.	The Company shall place at the disposal of the Reinsurer at all reasonable times, and the Reinsurer shall have the right to inspect, through its authorized representatives, all
books, records and papers of the Company in connection with this reinsurance hereunder or the subject matter thereof. 

  

	B.	The Reinsurer shall be afforded the opportunity, at its own expense to appoint an agent of its own choice to assess the Company’s claims procedures who shall report to the
Reinsurer the results of such. 

  

			
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 ARTICLE 20 
 CONFIDENTIALITY 
  

	A.	This Contract and the pre-agreement documentation may contain confidential or proprietary information of either party to this Contract. All parties shall maintain the
confidentiality of this information and shall not disclose these to any third party without the other party’s approval. 

  

	B.	Notwithstanding the above, any party may disclose such information without further approval from the other party in answer to interrogations, subpoenas or other legal/arbitration
process as well as to the Company’s reinsurance intermediary hereon, the Reinsurer’s retrocessionaires or in response to requests by governmental and regulatory agencies. In addition, the parties may disclose such information to their
accountants and outside legal counsel as may be necessary. 

 ARTICLE 21 
 UNAUTHORIZED REINSURANCE 
  

	A.	This Article applies only to a Subscribing Reinsurer who does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s
reserves. 

  

	B.	The Company agrees, in respect of its Policies falling within the scope of this Contract, that when it files with its insurance regulatory authority, or sets up on its books
liabilities as required by law, it will forward to the Reinsurer a statement showing the proportion of such liabilities applicable to the Reinsurer. The “Reinsurer’s Obligations” shall be defined as follows: 

 

	 	1.	unearned premium (if applicable); 

  

	 	2.	known outstanding losses that have been reported to the Reinsurer and Loss Adjustment Expense relating thereto; 

  

	 	3.	losses and Loss Adjustment Expense paid by the Company but not recovered from the Reinsurer; 

  

	 	4.	losses incurred but not reported and Loss Adjustment Expense relating thereto, as shown in the statement prepared by the Company (see the attached Exhibit D).

  

	C.	The Reinsurer’s Obligations shall be funded by funds withheld, cash advances, trust agreement or a Letter of Credit (LOC). The Reinsurer shall have the option of determining
the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves. 

  

			
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	D.	When funding by an LOC, the Reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional LOC issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the Reinsurer’s Obligations. Such LOC shall be issued for a period of not less than one year, and shall be
automatically extended for one year from its date of expiration or any future expiration date unless 30 days (or such other time period as may be required by insurance regulatory authorities), prior to any expiration date the issuing bank shall
notify the Company by certified or registered mail that the issuing bank elects not to consider the LOC extended for any additional period. 

  

	E.	The Reinsurer and Company agree that any funding provided by the Reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other
provision of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company, for the following purposes, unless
otherwise provided for in a separate trust agreement: 

  

	 	1.	to reimburse the Company for the Reinsurer’s Obligations, the payment of which is due under the terms of this Contract and that has not been otherwise paid;

  

	 	2.	to make refund of any sum that is in excess of the actual amount required to pay the Reinsurer’s Obligations under this Contract (or in excess of 102% of Reinsurer’s
Obligations, if funding is provided by a trust agreement); 

  

	 	3.	to fund an account with the Company for the Reinsurer’s Obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other
assets, and interest thereon not in excess of the prime rate shall accrue to the benefit of the Reinsurer. Any taxes payable on accrued interest shall be paid out of the assets in the account that are in excess of the Reinsurer’s Obligations
(or in excess of 102% of Reinsurer’s Obligations, if funding is provided by a trust agreement). If the assets are inadequate to pay taxes, any taxes due shall be paid by the Reinsurer; 

  

	 	4.	to pay the Reinsurer’s share of any other amounts the Company claims are due under this Contract. 

  

	F.	If the amount drawn by the Company is in excess of the actual amount required for E(1) or E(3), or in the case of E(4), the actual amount determined to be due, the Company shall
promptly return to the Reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part of the Company or the Reinsurer. 

  

	G.	The issuing bank shall have no responsibility whatsoever in connection with the propriety of withdrawals made by the Company or the disposition of funds withdrawn, except to ensure
that withdrawals are made only upon the order of properly authorized representatives of the Company. 

  

			
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	H.	At annual intervals, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the Reinsurer’s Obligations for
the sole purpose of amending the LOC or other method of funding, in the following manner: 

  

	 	1.	If the statement shows that the Reinsurer’s Obligations exceed the balance of the LOC as of the statement date, the Reinsurer shall, within 30 days after receipt of the
statement, secure delivery to the Company of an amendment to the LOC increasing the amount of credit by the amount of such difference. Should another method of funding be used, the Reinsurer shall, within the time period outlined above, increase
such funding by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the Reinsurer’s Obligations are less than the balance of the LOC (or that 102% of the Reinsurer’s Obligations are less than the trust
account balance if funding is provided by a trust agreement), as of the statement date, the Company shall, within 30 days after receipt of written request from the Reinsurer, release such excess credit by agreeing to secure an amendment to the LOC
reducing the amount of credit available by the amount of such excess credit. Should another method of funding be used, the Company shall, within the time period outlined above, decrease such funding by the amount of such excess.

 ARTICLE 22 
 TAXES

  

	A.	In consideration of the terms under which this Contract is issued, the Company undertakes not to claim any deduction of the premium hereon when making Canadian tax returns or when
making tax returns, other than Income or Profits Tax returns, to any state or territory of the United States of America or to the District of Columbia. 

  

					
	B.	 	    1.	    	Each Subscribing Reinsurer has agreed to allow, for the purpose of paying the Federal Excise Tax, 1% of the premium payable hereon to the extent such premium is subject to Federal Excise
Tax.

  

	 	2.	In the event of any return of premium becoming due hereunder, the Subscribing Reinsurer shall deduct 1% from the amount of the return, and the Company or its agent should take steps
to recover the Tax from the U.S. Government. 

 ARTICLE 23 
 ERRORS AND OMISSIONS 
 Any inadvertent delay, omission or error shall not be held to relieve either party hereto from
any liability which would attach to it hereunder if such delay, omission or error had not been made, provided such delay, omission or error is rectified immediately upon discovery; provided, however, this Article is not to override retroactive dates
specified in the Term Article. 
  

			
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 ARTICLE 24 
 INSOLVENCY 
  

	A.	If more than one reinsured company is referenced within the definition of “Company” in the Preamble to this Contract, this Article will apply severally to each such
company. Further, this Article and the laws of the domiciliary state will apply in the event of the insolvency of any company covered hereunder. In the event of a conflict between any provision of this Article and the laws of the domiciliary state
of any company covered hereunder, that domiciliary state’s laws will prevail. 

  

	B.	In the event of the insolvency of the Company, this reinsurance (or the portion of any risk or obligation assumed by the Reinsurer, if required by applicable law) shall be payable
directly to the Company, or to its liquidator, receiver, conservator or statutory successor, either: (1) on the basis of the liability of the Company, or (2) on the basis of claims filed and allowed in the liquidation proceeding, whichever
may be required by applicable statute, 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 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 that may accrue to the Company solely as a result of
the defense undertaken by the Reinsurer. 

  

	C.	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 reinsurance Contract as though such expense had been incurred by the Company. 

  

	D.	As to all reinsurance made, ceded, renewed or otherwise becoming effective under this Contract, the reinsurance shall be payable as set forth above by the Reinsurer to the Company
or to its liquidator, receiver, conservator or statutory successor, (except as provided by Section 4118(a)(1)(A) of the New York Insurance Law, provided the conditions of 1114(c) of such law have been met, if New York law applies) or except
(1) where the Contract specifically provides another payee in the event of the insolvency of the 

  

			
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 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. Then, and in that event only, the Company, with the prior
approval of the certificate of assumption on New York risks by the Superintendent of Insurance of the State of New York, or with the prior approval of such other regulatory authority as may be applicable, is entirely released from its obligation and
the Reinsurer shall pay any loss directly to payees under such Policy. 
 ARTICLE 25 
 ARBITRATION 
  

	A.	As a condition precedent to any right of action hereunder, any dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity
thereof, shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration shall be in writing and sent certified or registered mail, return receipt requested. 

  

	B.	One arbitrator shall be chosen by each party and the two arbitrators shall, before instituting the hearing, choose an impartial third arbitrator who shall preside at the hearing. If
either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days’ notice by certified or registered mail of its intention to do so, may appoint the second arbitrator.

  

	C.	If the two arbitrators are unable to agree upon the third arbitrator within 30 days of their appointment, the deficiency shall be supplied on the application of the party requesting
arbitration by an appointment made by the American Arbitration Association. Notwithstanding the appointment of any third arbitrator by the American Arbitration Association, the arbitration proceedings shall not be governed by the American
Arbitration Association’s commercial arbitration rules. 

  

	D.	All arbitrators shall be disinterested active or former executive officers of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings.

  

	F.	The panel shall be relieved of all judicial formality and shall not be bound by the strict rules of procedure and evidence Unless the panel agrees otherwise, arbitration shall take
place in Los Angeles, California, but the venue may be changed when deemed by the panel to be in the best interest of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of
California. The decision of any two arbitrators when rendered in writing shall be final and binding. The panel is empowered to grant interim relief as it may deem appropriate. 

  

			
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	G.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business within 60 days following the termination of the hearings.
Judgment upon the award may be entered in a court having jurisdiction thereof. 

  

	H.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the
arbitration shall be allocated by the panel. The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. 

ARTICLE 26 
 SERVICE OF SUIT 
  

	A.	This Article applies only to those Subscribing Reinsurers not domiciled in the United States of America, and/or not authorized in any state, territory and/or district of the United
States of America where authorization is required by insurance regulatory authorities. 

  

	B.	This Article shall not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in the Arbitration Article. This Article is
intended as an aid to compelling arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Contract. 

  

	C.	In the event of the failure of the Reinsurer to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company, shall submit to the jurisdiction of a court
of competent jurisdiction within the United States of America. 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 of America, 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 of America or of any state in the United States of America. The
Reinsurer, once the appropriate court is selected, whether such court is the one originally chosen by the Company and accepted by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all
requirements necessary to give said court jurisdiction and, in any suit instituted against the Reinsurer upon this Contract, shall abide by the final decision of such court or of any appellate court in the event of an appeal.

  

	D.	Service of process in such suit may be made upon Messrs. Mendes & Mount, 725 South Figueroa, Suite 1990, Los Angeles, CA 90017. The above-named are authorized and directed
to accept service of process on behalf of the Reinsurer in any such suit. 

  

	E.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the Reinsurer hereby designates 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 

  

			
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 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, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. Notwithstanding the foregoing, one copy of the
served documents must be submitted by registered mail to Messrs. Mendes & Mount, 725 South Figueroa, Suite 1990, Los Angeles, CA 90017. 
 ARTICLE 27 
 GOVERNING LAW 
 This Contract shall be governed by and interpreted in accordance with the laws of the State of California. 
 ARTICLE 28 
 AGENCY 
 For purposes of
sending and receiving notices and payments required by this Contract, the first named Company shall be deemed the agent of all other reinsured Companies referenced in this Contract. In no event, however, shall any reinsured Company be deemed the
agent of another with respect to the terms of the Insolvency Article. 
 ARTICLE 29 
 INTERMEDIARY 
 Guy Carpenter & Company, Inc. is hereby
recognized as the Intermediary negotiating this Contract for all business hereunder. All communications (including but not limited to notices, statements, premium, return premium, commissions, taxes, losses, Loss Adjustment Expense, salvages and
loss settlements) relating thereto shall be transmitted to the Company or the Reinsurer through Guy Carpenter & Company, Inc., 3600 Minnesota Drive, Suite 400, Edina, Minnesota 55435. Payments by the Company to the Intermediary shall be
deemed to constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to constitute payment to the Company only to the extent that such payments are actually received by the Company. 
 ARTICLE 30 
 MODE OF EXECUTION 
  

	A.	This Contract may be executed by: 

  

	 	1.	An original written ink signature of paper documents. 

  

			
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	 	2.	An exchange of facsimile copies showing the original written ink signature of paper documents. 

  

	 	3.	Electronic signature technology employing computer software and a digital signature or digitizer pen pad to capture a person’s handwritten signature in such a manner that the
signature is unique to the person signing, is under the sole control of the person signing, is capable of verification to authenticate the signature and is linked to the document signed in such a manner that if the data is changed, such signature is
invalidated. 

  

	B.	The use of any one or a combination of these methods of execution shall constitute a legally binding and valid signing of this Contract. This Contract may be executed in one or more
counterparts, each of which, when duly executed, shall be deemed an original. 

 IN WITNESS WHEREOF, the Company has caused this Contract to
be executed by its duly authorized representative(s) this      day of                     , in the year of
                . 
 SCPIE HOLDINGS, INC.,
and/or 
 SCPIE INDEMNITY COMPANY and/or 
 AMERICAN HEALTHCARE INDEMNITY COMPANY, and/or 
 AMERICAN HEALTHCARE SPECIALTY COMPANY, and/or

 SCPIE INSURANCE SERVICES, INC., and/or 
 SCPIE MANAGEMENT SERVICES, INC. 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 

 

			
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 EXHIBIT A - FIRST LAYER 
 attaching to and forming a part of the 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE
CONTRACT 
 RETENTION AND LIMIT 
  

	A.	The Company shall retain for its own account and pay under one or more of the Company’s Policies the first $2,000,000 Ultimate Net Loss, each Loss Event, and the Reinsurer
agrees to reimburse the Company for the amount of Ultimate Net Loss paid in excess of $2,000,000, each Loss Event, but the Reinsurer’s liability under this Exhibit A shall not exceed $3,000,000 resulting from each Loss Event.

  

	B.	The Reinsurer’s aggregate liability from all losses under this Exhibit A during the term of this Contract shall not exceed $18,000,000. 

  

	C.	Notwithstanding the foregoing, it is a condition hereto that an annual aggregate deductible of $3,000,000, otherwise recoverable under this Exhibit A, shall first be deducted before
any liability attaches hereon. 

 PREMIUM 
  

	A.	The Company shall pay to the Reinsurer a deposit premium of $5,872,500 payable in equal installments of $2,936,250 within 60 days of January 1 and July 1 of 2006.

  

	B.	As soon as practicable after the expiration or termination of this Contract, the Company shall calculate the premium due the Reinsurer based on a rate of 4.35% of the Gross Net
Earned Premium Income accounted for by the Company during the term of this Contract on all business subject matter of the Contract, subject to a minimum premium of $4,698,400 (or a pro rata share thereof if this Contract is terminated prior to its
expiration). In the event the premium due hereunder is greater than the deposit premium paid, the difference shall be paid to the Reinsurer forthwith. If the actual premium is less than the deposit premium paid, the difference shall be refunded to
the Company, subject to the minimum premium. 

 CONTINGENT COMMISSION 
  

	A.	Within 45 days following December 31, 2009, and annually thereafter until the Reinsurer’s liability for all losses on Claims Made during the term of this Contract is
settled or commuted, a contingent commission calculation shall be prepared by the Company in accordance with the following: 

  

	 	1.	“Income” means the reinsurance premium for this Exhibit A for the term of this Contract. 

  

			
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	 	2.	“Outgo” means the sum of: 

  

	 	a.	Losses and Loss Adjustment Expense paid by the Reinsurer on Claims Made under this Exhibit A during the term of this Contract, plus 

  

	 	b.	The outstanding case reserves of the Reinsurer on Claims Made under this Exhibit A during the term of this Contract, plus 

  

	 	c.	The Reinsurer’s expense allowance of 30% of Income, plus 

  

	 	d.	As respects any Subscribing Reinsurer who participated on any of the Predecessor Contracts defined below, the cumulative deficit from its participation on the Predecessor Contracts,
if any (i.e., the amount by which Reinsurer’s share of losses incurred under those contracts exceeds the Reinsurer’s earned premium under those contracts). 

  

	B.	The contingent commission shall be 35% of the amount by which Income exceeds Outgo. 

  

	C.	As respects the first calculation of contingent commission hereunder, the Reinsurer shall remit to the Company, as promptly as possible after receipt and verification of the
Company’s report, one-third of the contingent commission shown to be due to the Company. As respects the second calculation, the Reinsurer shall remit to the Company, as promptly as possible after receipt and verification of the Company’s
report, two-thirds of the contingent commission shown to be due to the Company, less any contingent commission previously paid. As respects the third and each subsequent calculation, the Reinsurer shall remit to the Company, as promptly as possible
after receipt and verification of the Company’s report, the contingent commission shown to be due to the Company, less any contingent commission previously paid. 

  

	D.	Should Outgo exceed Income, the difference shall be considered as the Reinsurer’s deficit and shall be carried forward on an unlimited basis into the calculations for the
successors to this Contract, if any. 

  

	E.	“Predecessor Contracts” means the following reinsurance agreements (or layers of reinsurance agreements) issued to the Company: 

  

	 	1.	Second Excess of Loss Reinsurance, effective January 1, 1997 (Contract 01-97-0021); 

  

	 	2.	Second Excess of Loss Reinsurance, effective January 1, 1998 (Contract 01-98-0021); 

  

	 	3.	Second Excess of Loss Reinsurance, effective January 1, 1999 (Contract 8493-00-0001-99-02); 

  

			
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	 	4.	First Excess of Loss Reinsurance, effective January 1, 2000 (Contract 8493-0009-2000-1); 

  

	 	5.	First Layer of First - Fifth Excess of Loss Reinsurance, effective January 1, 2001 (Contract 8493-0009-01); 

  

	 	6.	First Layer of First - Fifth Excess of Reinsurance, effective January 1, 2002 (Contract 8493-0009-01); 

  

	 	7.	First Layer of First - Fifth Excess of Loss Reinsurance, effective January 1, 2003 (Contract 8493-0009-00); and 

  

	 	8.	First Layer of First – Fifth Excess of Loss Reinsurance, effective January 1, 2004 (Contract 8493-0009-00). 

  

	 	9.	First Layer of First – Third Excess of Loss Reinsurance, effective January 1, 2005 (Contract 8493-0009-00). 

  

			
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 EXHIBIT B - SECOND LAYER 
 attaching to and forming a part of the 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE
CONTRACT 
 RETENTION AND LIMIT 
 The Company shall
retain for its own account and pay under one or more of the Company’s Policies the first $5,000,000 Ultimate Net Loss, each Loss Event, and the Reinsurer agrees to reimburse the Company for the amount of Ultimate Net Loss paid in excess of
$5,000,000, each Loss Event, but the Reinsurer’s liability under this Exhibit B shall not exceed $5,000,000 resulting from each Loss Event. 
 PREMIUM 
  

	A.	The Company shall pay to the Reinsurer a deposit premium of $3,172,500 payable in equal installments of $1,586,250 within 60 days of January 1 and July 1 of 2006.

  

	B.	As soon as practicable after expiration of this Contract, the Company shall calculate the premium due the Reinsurer based on a rate of 2.35% of the Gross Net Earned Premium Income
accounted for by the Company during the term of this Contract on all business subject matter of the Contract, subject to a minimum premium of $2,538,000 (or a pro rata share thereof if this Contract is terminated prior to its expiration). In the
event the premium due hereunder is greater than the deposit premium paid, the difference shall be paid to the Reinsurer forthwith. If the actual premium is less than the deposit premium paid, the difference shall be refunded to the Company, subject
to the minimum premium. 

 REINSTATEMENT 
  

	A.	In the event of any portion of the coverage under this Exhibit B being depleted or exhausted by loss, the amount so depleted or exhausted shall be reinstated from the time claim is
first made and the Company shall pay the Reinsurer for such reinstatement an additional premium calculated as follows: 

  

	 	1.	For the first $5,000,000 so reinstated, 60% of the annual reinsurance premium pro rated as to the amount so reinstated; 

  

	 	2.	For the second $5,000,000 so reinstated, 100% of the annual reinsurance premium pro rated as to the amount so reinstated. 

 All calculations of reinstatement premiums shall be based on paid losses only. 
  

	B.	Nevertheless, the Reinsurer’s liability shall never be more than $5,000,000 in respect of any Loss Event, nor more than the maximum annual aggregate amount recoverable under
this Exhibit B of $15,000,000 in all during the term of the Contract. 

  

			
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 EXHIBIT C - THIRD LAYER 
 attaching to and forming a part of the 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE
CONTRACT 
 RETENTION AND LIMIT 
 The Company shall
retain for its own account and pay under one or more of the Company’s Policies the first $10,000,000 Ultimate Net Loss, each Loss Event, and the Reinsurer agrees to reimburse the Company for the amount of Ultimate Net Loss paid in excess of
$10,000,000, each Loss Event, but the Reinsurer’s maximum liability shall not exceed $10,000,000 resulting from each Loss Event. 
 PREMIUM

  

	A.	The Company shall pay to the Reinsurer a deposit premium of $1,863,000 payable in equal installments of $931,500 within 60 days of January 1 and July 1 of 2006.

  

	B.	As soon as practicable after expiration of this Contract, the Company shall calculate the premium due the Reinsurer based on a rate of 1.38% of the Gross Net Earned Premium Income
accounted for by the Company during the term of this Contract on all business subject matter of the Contract, subject to a minimum premium of $1,490,400 (or a pro rata share thereof if this Contract is terminated prior to its expiration). In the
event the premium due hereunder is greater than the deposit premium paid, the difference shall be paid to the Reinsurer forthwith. If the actual premium is less than the deposit premium paid, the difference shall be refunded to the Company, subject
to the minimum premium. 

 REINSTATEMENT 
  

	A.	In the event of any portion of the coverage under this Exhibit C being depleted or exhausted by loss, the amount so depleted or exhausted shall be reinstated from the time claim is
first made and the Company shall pay the Reinsurer for such reinstatement an additional premium calculated as 100% of the annual reinsurance premium pro rated as to the amount so reinstated. All calculations of reinstatement premiums shall be based
on paid losses only. 

  

	B.	Nevertheless, the Reinsurer’s liability shall never be more than $10,000,000 in respect of any Loss Event, nor more than the maximum annual aggregate amount recoverable under
this Exhibit C of $20,000,000 in all during the term of the Contract. 

  

			
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 EXHIBIT D - LOSS FUNDING - INCLUDING IBNR 
 attaching to and forming a part of the 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 THIS IS APPLICABLE TO NON-ADMITTED REINSURERS ONLY

 After consultation with its outside actuaries, Tillinghast, Towers Perrin, the Company intends to use the following IBNR factors applied to gross
reinsurance premiums for 2006 Letter of Credit funding purposes applicable to non-admitted Reinsurers only: 
  

				
	 Period
	  	 IBNR
 Factor
	 
	 Current Year
	  	97.00	%
	 First Development Year
	  	40.00	%
	 Second Development Year
	  	17.00	%
	 Third Development Year
	  	7.00	%
	 Fourth Development Year & Subsequent
	  	2.00	%

 The Letter of Credit Funding requirement for IBNR shall be net of any specific case base loss reserves.
Therefore, the factors outlined above represent the ceiling for the sum of specific case base loss reserves and IBNR. Further, a cap of five times the gross reinsurance premium shall apply as the lifetime IBNR maximum for this
Contract. 
  

			
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 NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994)
 (WORLDWIDE EXCLUDING U.S.A. AND CANADA) 
 This
Agreement shall exclude Nuclear Energy Risks whether such risks are written directly and/or by way of reinsurance and/or via Pools and/or Associations. 
 For all purposes of this Agreement Nuclear Energy Risks shall mean all first party and/or third party insurances or reinsurances (other than Workers’ Compensation and Employers’ Liability) in respect of: 
  

	 	(I)	All Property on the site of a nuclear power station. 

 Nuclear Reactors, reactor buildings and plant and equipment therein on any site other than a nuclear power station. 
  

	 	(II)	All Property, on any site (including but not limited to the sites referred to in (I) above) used or having been used for: 

  

	 	(a)	the generation of nuclear energy; or 

  

	 	(b)	the Production, Use or Storage of Nuclear Material. 

  

	 	(III)	Any other Property eligible for insurance by the relevant local Nuclear Insurance Pool and/or Association but only to the extent of the requirements of that local Pool and/or
Association. 

  

	 	(IV)	The supply of goods and services to any of the sites, described in (I) to (III) above, unless such insurances or reinsurances shall exclude the perils of irradiation and
contamination by Nuclear Material. 

 Except as undernoted, Nuclear Energy Risks shall not include:

  

	 	(i)	Any insurance or reinsurance in respect of the construction or erection or installation or replacement or repair or maintenance or decommissioning of Property as described in
(I) to (III) above (including contractors’ plant and equipment); 

  

	 	(ii)	Any Machinery Breakdown or other Engineering insurance or reinsurance not coming within the scope of (i) above. 

 Provided always that such insurance or reinsurance shall exclude the perils of irradiation and contamination by Nuclear Material. 
 However, the above exemption shall not extend to: 
  

	 	(1)	The provision of any insurance or reinsurance whatsoever in respect of: 

  

	 	(a)	Nuclear Material; 

  

			
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	 	(b)	Any Property in the High Radioactivity Zone or Area of any Nuclear Installation as from the introduction of Nuclear Material or - for reactor installations - as from fuel loading or
first criticality where so agreed with the relevant local Nuclear Insurance Pool and/or Association. 

  

	 	(2)	The provision of any insurance or reinsurance for the undernoted perils: 

  

	 	•	 	fire, lightning, explosion; 

  

	 	•	 	earthquake; 

  

	 	•	 	aircraft and other aerial devices or 

  

	 	•	 	articles dropped therefrom; 

  

	 	•	 	irradiation and radioactive contamination; 

  

	 	•	 	any other peril insured by the relevant 

     local Nuclear Insurance Pool and/or Association; 
 in respect of any other Property not specified in
(1) above which directly involves the Production, Use or Storage of Nuclear Material as from the introduction of Nuclear Material into such Property. 
 Definitions 
 “Nuclear Material” means: 
  

	 	(i)	Nuclear fuel, other than natural uranium and depleted uranium, capable of producing energy by a self-sustaining chain process of nuclear fission outside a Nuclear Reactor, either
alone or in combination with some other material; and 

  

	 	(ii)	Radioactive Products or Waste. 

 “Radioactive Products or Waste”
means any radioactive material produced in, or any material made radioactive by exposure to the radiation incidental to the production or utilisation of nuclear fuel, but does not include radioisotopes which have reached the final stage of
fabrication so as to be usable for any scientific, medical, agricultural, commercial or industrial purpose. 
 “Nuclear
Installation” means: 
  

	 	(i)	Any Nuclear Reactor; 

  

	 	(ii)	Any factory using nuclear fuel for the production of Nuclear Material, or any factory for the processing of Nuclear Material, including any factory for the reprocessing of
irradiated nuclear fuel; and 

  

	 	(iii)	Any facility where Nuclear Material is stored, other than storage incidental to the carriage of such material. 

  

			
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 “Nuclear Reactor” means any structure containing nuclear fuel in such an arrangement that a self-sustaining
chain process of nuclear fission can occur therein without an additional source of neutrons. 
 “Production, Use or Storage of Nuclear Material”
means the production, manufacture, enrichment, conditioning, processing, reprocessing, use, storage, handling and disposal of Nuclear Material. 
 “Property” shall mean all land, buildings, structures, plant, equipment, vehicles, contents (including but not limited to liquids and gases) and all materials of whatever description whether fixed or not. 
 “High Radioactivity Zone or Area” means: 
  

	 	(i)	For nuclear power stations and Nuclear Reactors, the vessel or structure which immediately contains the core (including its supports and shrouding) and all the contents thereof, the
fuel elements, the control rods and the irradiated fuel store; and 

  

	 	(ii)	For non-reactor Nuclear Installations, any area where the level of radioactivity requires the provision of a biological shield. 

 N.M.A. 1975(a) 
 April 1, 1994 
  

					
	NOTES:	 	Wherever used herein the terms:
			
		 	“Reinsured”	 	shall be understood to mean “Company”, “Reinsured”, “Reassured” or whatever other term is used in the attached reinsurance document to designate the reinsured
company or companies.
			
		 	“Agreement”	 	shall be understood to mean “Agreement”, “Contract”, “Policy” or whatever other term is used to designate the attached reinsurance document.
			
		 	“Reinsurers”	 	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other term is used in the attached reinsurance document to designate the reinsurer or
reinsurers.

  

			
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 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - U.S.A. 
  

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

  

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

 Limited Exclusion Provision.* 
  

	 	I.	It is agreed that the policy does not apply under any liability coverage, to 

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

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

  

	 	III.	The inception dates and thereafter of all original policies as described in II above, whether new, renewal or replacement, being policies which either 

  

	 	(a)	become effective on or after 1st May, 1960, or 

  

	 	(b)	become effective before that date and contain the Limited Exclusion Provision set out above; 

 provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies
of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
  

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

 Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad) Protective Liability,
Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability) 
 shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision (specified
as the Broad Exclusion Provision): 
 Broad Exclusion Provision.* 
 It is agreed that the policy does not apply: 
  

	 	I.	Under any Liability Coverage, to 

 injury, sickness,
disease, death or destruction 
 bodily injury or property damage 
  

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

  

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

  

	 	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to 

 immediate medical or surgical relief 
 first aid, 
  

			
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 to expenses incurred with respect to 
 bodily injury, sickness, disease or death 
 bodily injury 
 resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility
by any person or organization. 
 III. Under any Liability Coverage, to 
 injury, sickness, disease, death or destruction 
 bodily injury or property damage 
 resulting from the hazardous properties of nuclear material, if

  

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

  

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

  

	 	(c)	the 

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

	 	IV.	As used in this endorsement: 

 “hazardous
properties” include radioactive, toxic or explosive properties; “nuclear material” means source material, special nuclear material or byproduct material; “source material”, “special nuclear
material”, and “byproduct material” have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory 
  

			
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 thereof; “spent fuel” means any fuel element or fuel component, solid or liquid,
which has been used or exposed to radiation in a nuclear reactor; “waste” means any waste material (1) containing byproduct material other than the tailings or wastes produced by the extraction or concentration of uranium or
thorium from any ore processed primarily for its source material content and (2) resulting from the operation by any person or organization of any nuclear facility included under the first two paragraphs of the definition of nuclear facility;
“nuclear facility” means 
  

	 	(a)	any nuclear reactor, 

  

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

  

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

  

	 	(d)	any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, 

 and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations;
“nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; 
 With respect to injury to or destruction of property, the word “injury” or “destruction” includes all forms of radioactive
contamination of property. “property damage” includes all forms of radioactive contamination of property. 
  

	 	V.	The inception dates and thereafter of all original policies affording coverages specified in this paragraph (3), whether new, renewal or replacement, being policies which become
effective on or after 1st May, 1960, provided this paragraph (3) shall not be applicable to 

  

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

  

	 	(ii)	statutory liability insurance required under Chapter 90, General Laws of Massachusetts, 

 until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
  

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

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

					
	NOTES:	 	Wherever used herein the terms:
			
		 	“Reassured”	 	shall be understood to mean “Company”, “Reinsured”, “Reassured” or whatever other term is used in the attached reinsurance document to designate the reinsured
company or companies.
			
		 	“Agreement”	 	shall be understood to mean “Agreement”, “Contract”, “Policy” or whatever other term is used to designate the attached reinsurance document.
			
		 	“Reinsurers”	 	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other term is used in the attached reinsurance document to designate the reinsurer or
reinsurers.

 21/9/67 
 NMA 1590 (amended) 
  

			
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 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - CANADA 
  

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

  

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

 Personal Liability 
 Farmers’ Liability 
 Storekeepers’
Liability 
 which become effective on or after 31st December 1992, shall be deemed to include, from their inception dates and
thereafter, the following provision: 
 Limited Exclusion Provision 
 This Policy does not apply to bodily injury or property damage with respect to which the Insured is also insured under a contract of nuclear energy
liability insurance (whether the Insured is unnamed in such contract and whether or not it is legally enforceable by the Insured) issued by the Nuclear Insurance Association of Canada or any other group or pool of insurers or would be an Insured
under any such policy but for its termination upon exhaustion of its limit of liability. 
 With respect to property, loss of use of such
property shall be deemed to be property damage. 
  

	3.	Without in any way restricting the operation of paragraph 1 of this clause it is agreed that for all purposes of this Agreement all the original liability contracts of the
Reinsured, whether new, renewal or replacement of any class whatsoever (other than Personal Liability, Farmers’ Liability, Storekeepers’ Liability or Automobile Liability contracts), which become effective on or after 31st December
1992, shall be deemed to include from their inception dates and thereafter, the following provision: 

 Broad Exclusion
Provision 
 It is agreed that this Policy does not apply: 
 (a) To any liability imposed by or arising from any nuclear liability act, law or statute or any law amendatory thereof; nor 
  

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

  

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

  

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

  

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

  

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

 As used in this Policy: 
  

	1.	The term “nuclear energy hazard” means the radioactive, toxic, explosive, or other hazardous properties of radioactive material; 

  

	2.	The term “radioactive material” means uranium, thorium, plutonium, neptunium, their respective derivatives and compounds, radioactive isotopes of other elements and any
other substances which may be designated by or pursuant to any law, act or statute, or law amendatory thereof as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic
energy; 

  

	3.	The term “nuclear facility” means: 

  

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

  

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

  

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

  

	 	(d)	any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste radioactive material; 

 and includes the site on which any of the foregoing is located, together with all operations conducted thereon and all premises used for such operations.

  

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

  

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

 NMA 1979a 
 (01.04.96) Form approved by Lloyd’s Underwriters’ Non-Marine Association Limited. 
  

					
	NOTES:	 	Wherever used herein the terms:
			
		 	“Reassured”	 	shall be understood to mean “Company”, “Reinsured”, “Reassured” or whatever other term is used in the attached reinsurance document to designate the reinsured
company or companies.
			
		 	“Agreement”	 	shall be understood to mean “Agreement”, “Contract”, “Policy” or whatever other term is used to designate the attached reinsurance document.
			
		 	“Reinsurers”	 	shall be understood to mean “Reinsurers”, “Underwriters” or whatever other term is used in the attached reinsurance document to designate the reinsurer or
reinsurers.

  

			
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 INTERESTS AND LIABILITIES AGREEMENT 
 (the “Agreement”) 
 of 
 (REINSURER) 
 (the “Subscribing
Reinsurer”) 
 as respects the 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
 Effective: January 1, 2006 
 (the “Contract”) 
 issued to and
executed by 
 SCPIE HOLDINGS, INC., and/or 
 SCPIE INDEMNITY COMPANY and/or 
 AMERICAN HEALTHCARE INDEMNITY COMPANY, and/or 
 AMERICAN HEALTHCARE SPECIALTY COMPANY, and/or 
 SCPIE INSURANCE SERVICES, INC., and/or 
 SCPIE MANAGEMENT SERVICES, INC. 
 Los Angeles, California 
 (collectively, the “Company”) 
 The Subscribing Reinsurer’s share in the interests and liabilities of the Reinsurer as set
forth in the Contract shall be: 
  

			
	First Excess:	  	%
		
	Second Excess:	  	%
		
	Third Excess:	  	%

 The share of the Subscribing Reinsurer in the interests and liabilities of the Reinsurer in respect of the
Contract shall be separate and apart from the shares of other subscribing reinsurers, if any, on the Contract. The interests and liabilities of the Subscribing Reinsurer shall not be joint with those of such other subscribing reinsurers and in no
event shall the Subscribing Reinsurer participate in the interests and liabilities of such other subscribing reinsurers. 
  

			
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 This Agreement shall become effective on January 1, 2006 and shall be subject to the provisions of the Term
Article and all other terms and conditions of the Contract. 
 Premium and loss payments made to Guy Carpenter shall be deposited in a Premium and Loss
Account in accordance with Section 32.3(a)(1) of Regulation 98 of the New York Insurance Department. The Subscribing Reinsurer consents to withdrawals from said account in accordance with Section 32.3(a)(3) of the Regulation, including
interest and Federal Excise Tax. 
 Brokerage earned by Guy Carpenter (US) hereunder shall be deducted from ceded premium at
a rate of 10.00%. 
 The brokerage rate on reinstatement premium shall be 50.00% of the above rates. 
 IN WITNESS WHEREOF, the Subscribing Reinsurer has caused this Agreement to be executed by its duly authorized representative as follows: 
 on this      day of
                    , in the year
                . 
 (REINSURER)

 Market Reference Number for the First Excess: 
 Market Reference Number for the Second Excess: 
 Market Reference Number for the Third Excess: 
 SCPIE HOLDINGS, INC., and/or 
 SCPIE INDEMNITY COMPANY and/or 
 AMERICAN HEALTHCARE INDEMNITY COMPANY, and/or 
 AMERICAN HEALTHCARE SPECIALTY COMPANY, and/or 
 SCPIE INSURANCE SERVICES, INC., and/or 
 SCPIE MANAGEMENT SERVICES, INC. 
 FIRST-THIRD EXCESS OF LOSS REINSURANCE CONTRACT 
  

			
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	8493-00-0009-00EXHIBIT 10.1

ENTERPRISE FINANCIAL SERVICES CORP
 EXECUTIVE EMPLOYMENT AGREEMENT

          THIS AGREEMENT, is made by and between __________________ (the “Executive”) and ENTERPRISE FINANCIAL SERVICES CORP, a Delaware corporation (the “Company”), effective as of __________, 2006 (the “Effective Date”). 

          WITNESSETH: 

          WHEREAS, Executive desires to be employed or to continue to be employed by the Company, and the Company desires to employ or continue to employ Executive, on the terms, covenants and conditions hereinafter set forth in this Agreement. 

          NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual promises and agreements herein set forth, the Company and Executive agree as follows: 

          1.        Employment.  Subject to the terms and conditions set forth in this Agreement, the Company hereby employs Executive for the Contract Term as hereafter defined.  During the Contract Term, Executive shall serve in an executive capacity and shall have such duties and responsibilities as the Board of Directors (the “Board”) may from time to time specify. Executive shall comply with all policies and procedures of the Company generally applicable to executive employees of the Company.  Executive hereby accepts such employment and agrees to serve the Company in such capacities for the term of this Agreement. 

          2.        Term of Employment.  Except as otherwise provided herein, the term of this Agreement shall be for a term commencing on the Effective Date and extend for 36 months.     

          3.        Devotion to Duties.  Executive agrees to continue to represent The Company to employees and clients in high regards in order to ensure the Companies long-term success. Executive agrees that during the Employment Term he will devote his skill, knowledge, commercial efforts and working time to the conscientious and faithful performance of his duties and responsibilities to the Company. Executive will use his best good faith efforts to promote the success of the Company’s business and will cooperate fully with the Board in the advancement of the best interests of the Company.  

          4.        Compensation of Executive Base Salary.  During the Employment Term, the Company shall pay to Executive as compensation for the services to be performed by the Executive a base salary (the “Base Salary”) of ______________ for the first year from the Effective Date, _____________________ for the second year from the Effective Date, ______________ for the third year from the Effective Date. This contract after the third anniversary will be renewable for two years at ___________ per year, if agreed, in writing, by both parties. The parties will undertake renewal discussions at least 90 days prior to end of the Term of Employment. The Base Salary shall be payable in installments in accordance with the Company’s normal payroll practice and shall be subject to such withholding as may be required by law.  The Base
Salary may be adjusted from time to time in the sole discretion of the Board, but shall not be reduced without the consent of Executive. 

	
   
 	
  
          4.1       Targeted   Bonus.  There will be no bonus eligible during the   Employment Term.
  
	
   
 	
   
 
	
   
 	
            4.2       Benefits.  Executive shall   be entitled to participate, during the Employment Term, in all regular   employee benefit and deferred compensation plans established by the Company   including, without limitation, any savings and profit sharing plan, incentive   stock plan, dental and medical plans, life insurance and disability   insurance, such participation to be as provided in said employee benefit   plans in accordance with the terms and conditions thereof as in effect from   time to time and subject to any applicable waiting period.  Executive shall also be entitled to paid vacation   during each year of the Employment Term in accordance with the Company’s   vacation policy, provided that any vacation not used in any year shall be   forfeited and not carried over to any subsequent year.
  
	
   
 	
   
 
	
   
 	
  
          4.3       Reimbursement   of Expenses.  The   Company will provide for the payment or reimbursement of all reasonable and   necessary expenses incurred by the Executive in connection with the   performance of his duties under this Agreement in accordance with the   Company’s expense reimbursement policy, as such may change from time to time.
  
	
   
 	
   
 
	
   
 	
  
5.      Termination   of Employment.
  
	
   
 	
   
 
	
   
 	
            5.1       Termination   for Cause.    “Termination for Cause”, as hereinafter defined, may be effected by   the Company at any time during the term of this Agreement by written   notification to Executive, specifying in detail the basis for the Termination   for Cause. Upon Termination for Cause, Executive shall immediately be paid   all accrued salary, bonus compensation to the extent earned for the calendar   year immediately preceding termination, vested deferred compensation, if any,   (other than pension plan or profit sharing plan benefits which will be paid   in accordance with the terms of the applicable plan), any benefits under any   plans of the Company in which the Executive is a participant to the full   extent of the Executive’s rights under such plans, accrued vacation pay for   the year in which termination occurs,
and any appropriate business expenses   incurred by Executive reimbursable by the Company in connection with his   duties hereunder, all to the date of termination, but Executive shall not be   paid any other compensation or reimbursement of any kind, including without   limitation, severance compensation.    “Termination for Cause” shall mean termination by the Company of   Executive’s employment by the Company by reason of (a) an order of any   federal or state regulatory authority having jurisdiction over the Company,   (b) the willful failure of Executive substantially to perform his duties   hereunder (other than any such failure due to Executive’s physical or mental   illness); (c) a willful breach by Executive of any material provision of this   Agreement or of any other written agreement with the Company or any of its   Affiliates; (d) Executive’s commission of a crime that constitutes a felony   or other crime of moral turpitude or criminal fraud; (e) chemical or
alcohol   dependency which materially and adversely affects Executive’s performance of   his duties under this Agreement; (f) any act of disloyalty or breach of   responsibilities to the Company by the Executive which is intended by the   Executive to cause material harm to the Company; (g) misappropriation (or   attempted misappropriation) of any of the Company’s funds or property; or (h)   Executive’s material violation of any Company policy applicable to Executive.
  

2

	
   
 	
  
          5.2       Termination   Other Than for Cause.  Notwithstanding any other provisions of   this Agreement, the Company may effect a “Termination Other Than For Cause”,   as hereinafter defined, at any time upon giving written notice to Executive   of such termination.  Upon any   Termination Other Than for Cause, subject to Executive’s compliance with the   terms and conditions contained in this Agreement, Executive shall within 30   days after such termination be paid all accrued salary, bonus compensation to   the extent earned for the calendar year immediately preceding termination,   vested deferred compensation (other than pension plan or profit sharing plan   benefits which will be paid in accordance with the applicable plan), accrued   vacation pay for the year in which termination occurs, any benefits under any   plans of the
Company in which Executive is a participant to the full extent   of Executive’s rights under such plans, and any appropriate business expenses   incurred by Executive in connection with his duties hereunder, all to the   date of termination.  “Termination   Other Than for Cause” shall mean any termination by the Company of   Executive’s employment with the Company other than a termination pursuant to   subsection 5.1, 5.3, 5.4, 5.5 or 5.6. If there is a “Termination Other Than   For Cause”, Executive receives (1) year of severance as defined in 6.1 and   other restrictions shall remain including the non-compete and   non-solicitation in sections 9.1 and 9.2.
  
	
   
 	
   
 
	
   
 	
  
          5.3       Termination   by Reason of Disability.    If, during the term of this Agreement, the Executive, in the   reasonable judgment of the Board of Directors, (i) has failed to perform his   duties under this Agreement on account of illness or physical or mental   incapacity, and (ii) such illness or incapacity continues for a period of   more than 90 consecutive days, or 90 days during any 180 day period, the   Company shall have the right to terminate Executive’s employment hereunder by   written notification to Executive and payment to Executive of all accrued   salary, bonus compensation to the extent earned for the calendar year   immediately preceding termination, vested deferred compensation, if any,   (other than pension plan or profit sharing plan benefits which will be paid   in accordance with the applicable plans), accrued vacation
pay for the year   in which termination occurs, any benefits under any plans of the Company in   which Executive is a participant to the full extent of Executive’s rights under   such plans, and any appropriate business expenses incurred by Executive in   connection with his duties hereunder, all to the date of termination, but   Executive shall not be paid any other compensation or reimbursement of any   kind, including without limitation, severance compensation.
  
	
   
 	
   
 
	
   
 	
            5.4       Death.  In the event of Executive’s death during   the term of this Agreement, Executive’s employment shall be deemed to have   terminated as of the last day of the month during which his death occurs and the   Company shall pay to his estate or such beneficiaries as Executive may from   time to time designate all accrued salary, bonus compensation to the extent   earned for the calendar year immediately preceding termination, vested   deferred compensation (other than pension plan or profit sharing plan   benefits which will be paid in accordance with the applicable plan), any   benefits under any plans of the Company in which Executive is a participant   to the full extent of Executive’s rights under such plans, accrued vacation   pay for the year in which termination occurs, and any appropriate business   expenses
incurred by Executive in connection with his duties hereunder, all   to the date of termination, but Executive’s estate shall not be paid any   other compensation or reimbursement of any kind, including without   limitation, severance compensation.
  

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          5.5       Voluntary   Termination.  In the   event of a “Voluntary Termination,” as hereinafter defined, provided that the   Executive provides the Company with at least 90 days notice of such   termination (which notice and any requirement for service may be waived or   shortened by the Company), the Company shall within 30 days after such   termination pay all accrued salary, bonus compensation to the extent earned,   vested deferred compensation, if any, (other than pension plan or profit   sharing plan benefits which will be paid in accordance with the applicable   plans), any benefits under any plans of the Company in which Executive is a   participant to the full extent of Executive’s rights under such plans,   accrued vacation pay for the year in which termination occurs, and any   appropriate business expenses incurred by
Executive in connection with his   duties hereunder, all to the date of termination, but no other compensation   or reimbursement of any kind, including without limitation, severance   compensation. “Voluntary Termination” shall mean termination by Executive of   Executive’s employment other than (i) termination by reason of Executive’s   disability as described in subsection 5.3, (ii) termination by reason of   Executive’s death as described in subsection 5.4, (iii) Termination Upon a   Change in Control as described in subsection 5.6, (iv) Termination For Cause   as described in subsection 5.1, and (v) Termination Other Than for Cause as   described in subsection 5.2.
  
	
   
 	
   
 
	
   
 	
            5.6       Termination   Upon a Change in Control.    In the event of a “Termination Upon a Change in Control,” as   hereinafter defined, Executive shall immediately be paid all accrued salary,   bonus compensation to the extent earned, vested deferred compensation, if   any, (other than pension plan or profit sharing plan benefits which will be   paid in accordance with the applicable plans), any benefits under any plans   of the Company in which Executive is a participant to the full extent of   Executive’s rights under such plans, vacation pay for the year in which   termination occurs, and any appropriate business expenses incurred by   Executive in connection with his duties hereunder, all to the date of termination.   “Termination Upon a Change in Control” shall mean a termination by the   Company (other than a
Termination for Cause) or by Executive, in either case   within one year following a “Change in Control” as hereinafter defined.   “Change in Control” shall mean the date on which any of the following has   occurred:
  

	
   
 	
   
 	
  
           (a)          any   individual, entity or group (a “Person”), other than one or more of the   Company’s directors on the Effective Date of this Agreement or any Person   that any such director controls, becomes the beneficial owner of 50% or more   of the combined voting power of the then outstanding voting securities of the   Company entitled to vote generally in the election of directors of the   Company (the “Company Outstanding Voting Securities”);
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
             (b)          any   Person becomes the beneficial owner of 50% or more of the combined voting   power of the then outstanding voting securities of Enterprise Bank &   Trust entitled to vote generally in the election of directors of Enterprise   Bank & Trust (“Bank Outstanding Voting Securities”);
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
           (c)          consummation   of a reorganization, merger or consolidation (a “Business Combination”) of   the Company, unless, in each case, following such Business Combination (i)   all or substantially all of the Persons who were the beneficial owners,   respectively, of the Company Outstanding Voting Securities immediately prior   to such Business Combination beneficially own, directly or
  

4

	
   
 	
   
 	
  
indirectly, more than a majority of the   combined voting power of the then outstanding voting securities entitled to   vote generally in the election of directors of the company resulting from   such Business Combination, (ii) no Person (excluding any company resulting   from such Business Combination) beneficially owns, directly or indirectly,   50% or more of the combined voting power of the then outstanding voting   securities entitled to vote generally in the election of directors of the   company resulting from such Business Combination except to the extent such   ownership existed prior to the Business Combination, and (iii) at least a   majority of the members of the Board of Directors of the company resulting   from the Business Combination are Continuing Directors (as hereinafter   defined) at the time of the execution of the definitive agreement, or the   action of the Board, providing for such Business Combination;
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
             (d)          consummation   of the sale, other than in the ordinary course of business, of more than 50%   of the combined assets of the Company and its subsidiaries in a transaction   or series of related transactions during the course of any twelve-month   period; or
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
           (e)          the   date on which Continuing Directors (as hereinafter defined) cease for any   reason to constitute at least a majority of the Board of Directors of the   Company.
  
	
   
 	
   
 	
   
 
	
   
 	
  
As used in this Section 5.6, the   definitions of the terms “beneficial owner” and “group” shall have the   meanings ascribed to those terms in Rule 13(d)(3) under the Securities   Exchange Act of 1934. As used in this Section 5.6, the term “Continuing   Directors” shall mean, as of any date of determination, (i) any member of the   Board of Directors on the Effective Date of this Agreement, (ii) any person   who has been a member of the Board of Directors for the two years immediately   preceding such date of determination, or (iii) any person who was nominated   for election or elected to the Board of Directors with the affirmative vote   of the greater of (A) a majority of the Continuing Directors who were members   of the Board of Directors at the time of such nomination or election or (B)   at least four Continuing Directors but excluding, for purposes of this clause   (iii), any such individual whose initial assumption of office
occurs as a   result of an actual or threatened election contest with respect to the   election or removal of directors or other actual or threatened solicitation   of proxies by or on behalf of a Person other than the Board of Directors of   the Company.  “Control” means the   direct or indirect ownership of voting securities constituting more than   fifty percent (50%) of the issued voting securities of a corporation.
  
	
   
 	
   
 	
   
 
	
   
 	
            5.7       Resignation   Upon Termination.   Effective upon any termination under this   Section 5 or otherwise, Executive shall automatically and without taking any   further actions be deemed to have resigned from all positions then held by   him with the Company and all of its Subsidiaries and Affiliates.
  
	
   
 	
   
 	
   
 

5

          6.        Severance Compensation 

	
   
 	
  
          6.1     Termination   Upon Change in Control or Termination Other Than For Cause.  In the event Executive’s employment is   terminated in a Termination Upon a Change in Control or Termination Other   Than For Cause, Executive shall be paid the following as severance   compensation:
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (a)          Following   such termination of employment, an amount of one (1) year equal to the Base   Salary at the rate payable at the time of such termination plus (i) any   accrued and unpaid benefits due Executive under paragraph 4.3 of this   Agreement. Notwithstanding any provision in this paragraph (a) to the   contrary, Executive may, in Executive’s sole discretion, by delivery of a   notice to the Company within 30 days following a Termination Upon a Change in   Control and Termination Other Than For Cause, The executive would receive   from the Company a lump sum severance payment.  The Company shall also pay for the costs of COBRA coverage for   one year.
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
            (b)          In   the event that Executive is not otherwise entitled to fully exercise all   awards granted to him under any stock option or other compensation plan   maintained by the Company and any such plan does not otherwise provide for   acceleration of exercise ability upon the occurrence of the Change in Control   described herein, such awards shall become immediately exercisable upon a   Change in Control.
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (c)          All   restricted stock granted to Executive will vest and become transferable.
  
	
   
 	
   
 	
   
 
	
   
 	
  
          6.2     Termination   Upon Any Other Event.    In the event of a Voluntary Termination, Termination For Cause,   termination by reason of Executive’s disability pursuant to subsection 5.3 or   termination by reason of Executive’s death pursuant to subsection 5.4, Executive   or his estate shall not be paid any severance compensation.
  

          7.       Confidentiality.  Executive agrees to hold in strict confidence all non-public information concerning any matters affecting or relating to the business of the Company, its Subsidiaries and Affiliates, including without limiting the generality of the foregoing non-public information concerning their manner of operation, business or other plans, data bases, marketing programs, protocols, processes, computer programs, client lists, marketing information and analyses, operating policies or manuals or other data.  Executive agrees that he will not, directly or indirectly, use any such information for the benefit of others than the Company or disclose or communicate any of such information in any manner whatsoever other than to the directors, officers, employees, agents and representatives of the Company who need to know such information, who
shall be informed by Executive of the confidential nature of such information and directed by Executive to treat such information confidentially.  Upon the Company’s request, Executive shall return all information furnished to him related to the business of the Company without retaining any copies in electronic or other form.  The above limitations on use and disclosure shall not apply to information which Executive can demonstrate:  (a) was known to Executive before receipt thereof from the Company; (b) is learned by Executive from a third party entitled to disclose it; or (c) becomes known publicly other than through Executive; (c) is disclosed by Executive upon authority of the Board or any committee of the Board; (d) is 

6

disclosed pursuant to any legal requirement or (e) is disclosed pursuant to any agreement to which the Company or any of its Subsidiaries or Affiliates is a party.  The parties hereto stipulate that all such information is material and confidential and gravely affects the effective and successful conduct of the business of the Company and the Company’s goodwill, and that any breach of the terms of this Section 7 shall be a material breach of this Agreement.  The terms of this Section 7 shall survive and remain in effect following any termination of this Agreement. 

          8.        Use of Proprietary Information.  Executive recognizes that the Company possesses a proprietary interest in all of the information described in Section 7 and has the exclusive right and privilege to use, protect by copyright, patent or trademark, manufacture or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing. Executive expressly agrees that any products, inventions, discoveries or improvements made by Executive, his agents or affiliates, during the term of this Agreement, based on or arising out of the information described in Section 7 shall be the property of and inure to the exclusive benefit of the Company. Executive further agrees that any and all products, inventions, discoveries or improvements developed by
Executive (whether or not able to be protected by copyright, patent or trademark) in the scope of his employment, or involving the use of the Company’s time, materials or other resources, shall be promptly disclosed to the Company and shall become the exclusive property of the Company. 

          9.        Non-Competition Agreement. 

	
   
 	
             9.1      Non-Competition.  Executive agrees that, during the   Employment Term and for a period of one year following any termination of   such employment, Executive shall not, without the prior written consent of   the Company, directly or indirectly, own, manage, operate, control, be   connected with as an officer, employee, partner, consultant or otherwise, or   otherwise engage or participate in (except as an employee of the Company, or   Affiliate of it) any corporation or other business entity engaged in the   operation, ownership or management of a bank, trust company or financial   services business in Missouri or Kansas.    Notwithstanding the foregoing, the ownership by Executive of less than   (i) 5% of any class of the outstanding capital stock of any corporation   conducting such a competitive business which is regularly traded
on a   national securities exchange or in the over-the-counter market and (ii) less   than one-half of one percent of any other capital stock of any corporation   conducting such a competitive business, shall not be in a violation of the   foregoing covenant. Furthermore, in the event of a Voluntary Termination   under subsection 5.5, the aforementioned one (1) year shall instead be six   (6) months.
  
	
   
 	
   
 
	
   
 	
  
          9.2      Non-Solicitation.  During the Employment Term and for a   period of one year following any termination of such employment, Executive   shall not, except on behalf of or with the prior written consent of the   Company, directly or indirectly, entice or induce, or attempt to entice or   induce, any employee of the Company to leave such employ, or employ any such   person in any business similar to or in competition with that of the   Company.  Executive hereby   acknowledges and agrees that the provisions set forth in this subsection 9.2   constitute a reasonable restriction on his ability to compete with the   Company.
  

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          9.3       Saving   Provision.  The parties   hereto agree that, in the event a court of competent jurisdiction shall   determine that the geographical or durational elements of this covenant are   unenforceable, such determination shall not render the entire covenant   unenforceable. Rather, the excessive aspects of the covenant shall be reduced   to the threshold which is enforceable, and the remaining aspects shall not be   affected thereby.
  
	
   
 	
   
 
	
   
 	
  
          9.4       Equitable   Relief.  Executive   acknowledges that the extent of damages to the Company from a breach of   Sections 7, 8 and 9 of this Agreement would not be readily quantifiable or   ascertainable, that monetary damages would be inadequate to make the Company   whole in case of such a breach, and that there is not and would not be an   adequate remedy at law for such a breach.    Therefore, Executive specifically agrees that the Company is entitled   to injunctive or other equitable relief (without any requirement to post any   bond or other security) from a breach of Sections 7, 8 and 9 of this   Agreement, and hereby waives and covenants not to assert against a prayer for   such relief that there exists an adequate remedy at law, in monetary damages   or otherwise.
  
	
   
 	
   
 
	
   
 	
            9.5       Change   of Control or Termination Other Than For Cause.  If after any Change of Control or   Termination Other Than For Cause, Executive’s employment is terminated under   circumstances such that Executive does not receive severance compensation   pursuant to Section 6.1, Executive shall not be subject to the restrictions   of this Section 9.1 unless the Company continues to pay either as a lump sum   or without interruption Executive’s Base Salary at the rate in effect   immediately prior to such termination and then only so long as such payments   are continued without interruption for a period of up to one year after   termination.
  

          10.       Assignment.   This Agreement shall not be assignable by Executive and shall not be assignable by the Company except by operation of law or to a successor entity acquiring all or substantially all the Company’s business or assets.  No such assignment shall affect any determination of whether such assignment involves a Change of Control for purposes of this Agreement.  In the event of any assignment permitted hereby, the duties and responsibilities of Executive performed for the assignee shall not, without the written consent of Executive, be materially increased, altered or diminished in a manner inconsistent with Executive’s duties and responsibilities hereunder for the Company. 

          11.       Entire Agreement.  This Agreement and any agreements entered into after the date hereof under any of the Company’s benefit plans or compensation programs as described in Section 4 contain the complete agreement concerning the employment arrangement between the parties, including without limitation severance or termination pay, and shall, as of the Effective Date, supersede all other agreements or arrangements between the parties with regard to the subject matter hereof. 

          12.       Binding Agreement.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. The obligations of the Company under this Agreement shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business or similar event relating to the Company.  This Agreement shall not be terminated by reason of any merger, consolidation or reorganization of the Company, but shall be binding upon and inure to the benefit of the surviving or resulting entity. 

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          13.       Modification.  No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless authorized by the Board and reduced to in writing and duly executed by the party to be charged therewith and no evidence of any waiver or modification shall be offered or received in evidence of any proceeding, arbitration, or litigation between the parties hereto arising out of or affecting this Agreement, or the rights or obligations of the parties thereunder, unless such waiver or modification is in writing, duly executed as aforesaid. 

          14.       Severability.  All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid or unenforceable by any court of competent jurisdiction, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein. 

          15.       Manner of Giving Notice.  All notices, requests and demands to or upon the respective parties hereto shall be sent by hand, certified mail, overnight air courier service, in each case with all applicable charges paid or otherwise provided for, addressed as follows, or to such other address as may hereafter be designated in writing by the respective parties hereto: 

	
   
 	
  To Company:
  	
  
To Executive: at his current
  
	
   
 	
  
Enterprise Financial Services Corp
  	
  
residential address on file with
  
	
   
 	
  
150 North Meramec
  	
  
the Company.
  
	
   
 	
  
Clayton, Missouri 63105
  	
   
 
	
   
 	
  
Attention:         President
  	
   
 
	
   
 	
  
                       and   Corporate Secretary
  	
   
 

          Such notices, requests and demands shall be deemed to have been given or made on the date of delivery if delivered by hand or by telecopy and on the next following date if sent by mail or by air courier service. 

          16.       Remedies.  In the event of a breach of this Agreement, the non-breaching party shall be entitled to such legal and equitable relief as may be provided by law, and shall further be entitled to recover all costs and expenses, including reasonable attorneys’ fees, incurred in enforcing the non-breaching party’s rights hereunder. 

          17.       Headings.  The headings have been inserted for convenience only and shall not be deemed to limit or otherwise affect any of the provisions of this Agreement. 

          18.       Choice of Law.  It is the intention of the parties hereto that this Agreement and the performance hereunder be construed in accordance with, under and pursuant to the laws of the State of Missouri without regard to the jurisdiction in which any action or special proceeding may be instituted. 

          19.       Taxes.  The company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law. 

          20.       Voluntary Agreement; No Conflicts.  Executive hereby represents and warrants to the Company that he is legally free to accept and perform his employment with the Company, that he has no obligation to any other person or entity that would affect or conflict with any of Executive’s obligations pursuant to such employment, and that the complete performance of the 

9

obligations pursuant to Executive’s employment will not violate any order or decree of any governmental or judicial body or contract by which Executive is bound.  The Company will not request or require, and Executive agrees not to use, in the course of Executive’s employment with the Company, any information obtained in Executive’s employment with any previous employer to the extent that such use would violate any contract by which Executive is bound or any decision, law, regulation, order or decree of any governmental or judicial body. 

          21.       Certain Definitions.  As used herein, the following definitions shall apply: 

          “Affiliate” with respect to any person, means any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of the first Person, a Person of which the first Person is a Subsidiary, or another Subsidiary of a Person of which the first Person is also a Subsidiary. 

          “Control” With respect to any Person, means the possession, directly or indirectly, severally or jointly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise. 

          “Person” Any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity. 

          “Subsidiary” With respect to any Person, each corporation or other Person in which the first Person owns or Controls, directly or indirectly, capital stock or other ownership interests representing 50% or more of the combined voting power of the outstanding voting stock or other ownership interests of such corporation or other Person. 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first stated above. 

	
   
 	
  ENTERPRISE FINANCIAL SERVICES CORP
  
	
   
 	
   
 	
   
 
	
   
 	
  
By:
  	
   
 
	
   
 	
   
 	

  

	 
	 
	 

	
   
 	
  
Title:
  	
  _______________________________________________________________________
 
	
   
 	
   
 	
   
 
	
   
 	
   
 	
   
 
	
   
 	
   
 	
   
 
	
   
 	
  
EXECUTIVE:
  
	
   
 	
   
 	
   
 
	
   
 	
   _________________________________________________________________________________
 

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ENTERPRISE FINANCIAL SERVICES CORP
 EXECUTIVE EMPLOYMENT AGREEMENT

          THIS AGREEMENT, is made by and between __________________ (the “Executive”) and ENTERPRISE FINANCIAL SERVICES CORP, a Delaware Corporation (the “Company”), effective as of __________, 2006 (the “Effective Date”). 

          WITNESSETH: 

          WHEREAS, Executive desires to be employed or to continue to be employed by the Company, and the Company desires to employ or continue to employ Executive, on the terms, covenants and conditions hereafter set forth in this Agreement. 

          NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual promises and agreements herein set forth, the Company and Executive agree as follows: 

          22.       Employment.  Subject to the terms and conditions set forth in this Agreement, the Company hereby employs Executive for the Contract Term as hereafter defined.  During the Contract Term, Executive shall serve in an executive capacity and shall have such duties and responsibilities as the Board of Directors (the “Board”) may from time to time specify, including taking positions with subsidiaries of the Company.  Executive shall comply with all polices and procedures of the Company generally applicable to executive employees of the Company. Executive hereby accepts such employment and agrees to serve the Company in such capacities for the term of this Agreement. 

          23.       Term of Employment.  Except as otherwise provided herein, the term of this Agreement shall be for a term commencing on the Effective Date and extending for two years. This Agreement can be renewed for one year subject to the written approval to renew of both parties provided at least ninety days prior to the expiration of the Term. 

          24.       Devotion to Duties.  Executive agrees that during the Employment Term he will devote all of his skill, knowledge, commercial efforts and working time to the conscientious and faithful performance of his duties and responsibilities to the Company (except for (i) permitted vacation time and absence for sickness or similar disability and (ii) to the extent that it does not interfere with the performance of Executive’s duties hereunder:  (A) such reasonable time as may be devoted to the fulfillment of Executive’s civic and charitable activities and (B) such reasonable time as may be necessary from time to time for personal financial matters). Executive will use his best good faith efforts to promote the success of the Company’s business and will cooperate fully with the Board in the advancement of the best interests of the
Company. If requested by the Board, Executive will agree to serve as a director or officer of any of the Company’s Subsidiaries without additional compensation. 

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25.     Compensation   of Executive.
  
	
   
 	
   
 
	
   
 	
  
          25.1     Base Salary.  During the Employment Term, the Company   shall pay to Executive as compensation for the services to be performed by   the Executive a base salary of ________________ per year (the “Base   Salary”).  The Base Salary shall be   payable in installments in accordance with the Company’s normal payroll   practice and shall be subject to such withholding as may be required by   law.  The Base Salary may be adjusted   from time to time in the sole discretion of the Board, but shall not be   reduced without the consent of Executive.
  
	
   
 	
   
 
	
   
 	
            25.2     Targeted Bonus.   In addition to the compensation set forth elsewhere in this Section 4, for   each calendar year during the Employment Term and any extensions thereof, the   Executive shall qualify for a targeted annualized bonus (“Targeted Bonus”)   based upon meeting established targeted goals.  No later than the Company’s January Board meeting, the Company   and Executive shall agree upon certain targeted financial and operating goals   (“Targets”) for that calendar year.    The established Targets shall be consistent with the financial plan   for the Company as adopted by the Company’s Board. Within 75 days after the   end of each calendar year, the Company’s Chief Executive Officer in   collaboration with the Board (or a committee of the Board to which the Board   has delegated such authority) shall
make a good faith determination as to the   extent to which the Targets have been met for the preceding calendar   year.  If the Targets have been met,   then Executive shall receive a Targeted Bonus for such preceding year.  In the event that the established Targets   are exceeded, then Executive shall be entitled to receive additional bonus   amounts above the Targeted Bonus as the Company’s Chief Executive Officer in   collaboration with the Board (or such committee) may determine in their   discretion. If the Company’s Chief Executive Officer in collaboration with   the Board (or such committee of the Board) determines that the Targets have   not been fully met, but minimum thresholds as may be established by the   Company’s Chief Executive Officer in collaboration with the Board (or such   committee) have been met, the Company’s Chief Executive Officer in   collaboration with the Board (or such committee) shall make a good faith   determination as to the extent that
the Targets have been met and determine   the amount of such Targeted Bonus to be awarded to the Executive based   proportionately upon the extent to which the Targets are determined to have   been met.  Executive shall also be   eligible to receive such other bonuses or incentive payments as may be   approved by the Board of Directors.
  
	
   
 	
   
 
	 
	           25.3     Benefits. Executive shall be entitled to participate, during the Employment Term, in all regular employee benefit and deferred compensation plans established by the Company including, without limitation, any savings and profit sharing plan, incentive stock plan, dental and medical plans, life insurance and disability insurance, such participation to be as provided in said employee benefit plans in accordance with the terms and conditions thereof as in effect from time to time and subject to any applicable waiting period.  Executive shall also be entitled to paid vacation during each year of the Employment Term in accordance with the Company’s vacation policy, provided that any vacation not used in any year shall be forfeited and not carried over to any subsequent year.

	
   
 	
   
 
	
   
 	
             25.4     Reimbursement of Expenses.  The Company will provide for the payment or reimbursement of all reasonable and necessary expenses incurred by the Executive in connection with the performance of his duties under this Agreement in accordance with the Company’s expense reimbursement policy, as such may change from time to time.
 

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26.     Termination   of Employment.
  
	
   
 	
   
 
	
   
 	
            26.1     Termination for   Cause.  “Termination   for Cause”, as hereinafter defined, may be effected by the Company at any   time during the term of this Agreement by written notification to Executive,   specifying in detail the basis for the Termination for Cause. Upon   Termination for Cause, Executive shall immediately be paid all accrued   salary, bonus compensation to the extent earned for the calendar year   immediately preceding termination, vested deferred compensation, if any,   (other than pension plan or profit sharing plan benefits which will be paid   in accordance with the terms of the applicable plan), any benefits under any   plans of the Company in which the Executive is a participant to the full   extent of the Executive’s rights under such plans, accrued vacation pay for   the year in which termination occurs, and any
appropriate business expenses   incurred by Executive reimbursable by the Company in connection with his   duties hereunder, all to the date of termination, but Executive shall not be   paid any other compensation or reimbursement of any kind, including without   limitation, severance compensation.    “Termination for Cause” shall mean termination by the Company of   Executive’s employment by the Company by reason of (a) an order of any   federal or state regulatory authority having jurisdiction over the Company,   (b) the willful failure of Executive substantially to perform his duties   hereunder (other than any such failure due to Executive’s physical or mental   illness); (c) a willful breach by Executive of any material provision of this   Agreement or of any other written agreement with the Company or any of its   Affiliates; (d) Executive’s commission of a crime that constitutes a felony   or other crime of moral turpitude or criminal fraud; (e) chemical or alcohol
  dependency which materially and adversely affects Executive’s performance of   his duties under this Agreement; (f) any act of disloyalty or breach of   responsibilities to the Company by the Executive which is intended by the   Executive to cause material harm to the Company; (g) misappropriation (or   attempted misappropriation) of any of the Company’s funds or property; or (h)   Executive’s material violation of any Company policy applicable to Executive.
  
	
   
 	
   
 
	
   
 	
            26.2     Termination   Other Than for Cause. Notwithstanding any other provisions of   this Agreement, the Company may effect a “Termination Other Than For Cause”,   as hereinafter defined, at any time upon giving written notice to Executive   of such termination.  Upon any   Termination Other Than for Cause, subject to Executive’s compliance with the   terms and conditions contained in this Agreement, Executive shall within 30   days after such termination be paid all accrued salary, bonus compensation to   the extent earned for the calendar year immediately preceding termination,   vested deferred compensation (other than pension plan or profit sharing plan   benefits which will be paid in accordance with the applicable plan), accrued   vacation pay for the year in which termination occurs, any benefits under any   plans of the Company in
which Executive is a participant to the full extent   of Executive’s rights under such plans, and any appropriate business expenses   incurred by Executive in connection with his duties hereunder, all to the   date of termination.  “Termination   Other Than for Cause” shall mean any termination by the Company of   Executive’s employment with the Company other than a termination pursuant to   subsection 5.1, 5.3, 5.4, 5.5 or 5.6. If there is a “Termination Other Than   For Cause”, Executive receives six (6) months of severance as defined in 6.1   and other restrictions shall remain including the non-compete and   non-solicitation in sections 9.1 and 9.2.
  

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          26.3     Termination by   Reason of Disability.    If, during the term of this Agreement, the Executive, in the   reasonable judgment of the Board of Directors, (i) has failed to perform his   duties under this Agreement on account of illness or physical or mental   incapacity, and (ii) such illness or incapacity continues for a period of   more than 90 consecutive days, or 90 days during any 180 day period, the   Company shall have the right to terminate Executive’s employment hereunder by   written notification to Executive and payment to Executive of all accrued   salary, bonus compensation to the extent earned for the calendar year   immediately preceding termination, vested deferred compensation, if any,   (other than pension plan or profit sharing plan benefits which will be paid   in accordance with the applicable plans), accrued vacation pay for the
year   in which termination occurs, any benefits under any plans of the Company in   which Executive is a participant to the full extent of Executive’s rights   under such plans, and any appropriate business expenses incurred by Executive   in connection with his duties hereunder, all to the date of termination, but Executive   shall not be paid any other compensation or reimbursement of any kind,   including without limitation, severance compensation.
  
	
   
 	
   
 
	
   
 	
   
 
	
   
 	
            26.4     Death.  In the event of Executive’s death during   the term of this Agreement, Executive’s employment shall be deemed to have   terminated as of the last day of the month during which his death occurs and   the Company shall pay to his estate or such beneficiaries as Executive may   from time to time designate all accrued salary, bonus compensation to the extent   earned for the calendar year immediately preceding termination, vested   deferred compensation (other than pension plan or profit sharing plan   benefits which will be paid in accordance with the applicable plan), any   benefits under any plans of the Company in which Executive is a participant   to the full extent of Executive’s rights under such plans, accrued vacation   pay for the year in which termination occurs, and any appropriate business   expenses incurred by
Executive in connection with his duties hereunder, all   to the date of termination, but Executive’s estate shall not be paid any   other compensation or reimbursement of any kind, including without   limitation, severance compensation.
  
	
   
 	
   
 
	
   
 	
  
          26.5     Voluntary   Termination.  In the   event of a “Voluntary Termination,” as hereinafter defined, provided that the   Executive provides the Company with at least 90 days notice of such   termination (which notice and any requirement for service may be waived or   shortened by the Company), the Company shall within 30 days after such   termination pay all accrued salary, bonus compensation to the extent earned,   vested deferred compensation, if any, (other than pension plan or profit   sharing plan benefits which will be paid in accordance with the applicable   plans), any benefits under any plans of the Company in which Executive is a   participant to the full extent of Executive’s rights under such plans,   accrued vacation pay for the year in which termination occurs, and any   appropriate business expenses incurred by Executive in
connection with his   duties hereunder, all to the date of termination, but no other compensation   or reimbursement of any kind, including without limitation, severance   compensation. “Voluntary Termination” shall mean termination by Executive of   Executive’s employment other than (i) termination by reason of Executive’s   disability as described in subsection 5.3, (ii) termination by reason of   Executive’s death as described in subsection 5.4, and (iii) Termination Upon   a Change in Control as described in subsection 5.6, (iv) Termination For   Cause as described in subsection 5.1, and (v) Termination Other Than for   Cause as described in subsection 5.2.
  

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          26.6     Termination   Upon a Change in Control.    In the event of a “Termination Upon a Change in Control,” as   hereinafter defined, Executive shall immediately be paid all accrued salary,   bonus compensation to the extent earned, vested deferred compensation, if   any, (other than pension plan or profit sharing plan benefits which will be   paid in accordance with the applicable plans), any benefits under any plans   of the Company in which Executive is a participant to the full extent of   Executive’s rights under such plans, vacation pay for the year in which   termination occurs, and any appropriate business expenses incurred by   Executive in connection with his duties hereunder, all to the date of   termination, and all severance compensation provided in subsection 6.1.   “Termination Upon a Change in Control” shall mean a
termination by the Company   (other than a Termination for Cause) or by Executive, in either case within   one year following a “Change in Control” as hereinafter defined.  “Change in Control” shall mean the date on   which any of the following has occurred:
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (a)          any   individual, entity or group (a “Person”), other than one or more of the   Company’s directors on the Effective Date of this Agreement or any Person   that any such director controls, becomes the beneficial owner of 50% or more   of the combined voting power of the then outstanding voting securities of the   Company entitled to vote generally in the election of directors of the   Company (the “Company Outstanding Voting Securities”);
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
            (b)          any   Person becomes the beneficial owner of 50% or more of the combined voting   power of the then outstanding voting securities of Enterprise Bank &   Trust entitled to vote generally in the election of directors of Enterprise   Bank & Trust (“Bank Outstanding Voting Securities”);
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (c)          consummation   of a reorganization, merger or consolidation (a “Business Combination”) of   the Company, unless, in each case, following such Business Combination (i)   all or substantially all of the Persons who were the beneficial owners,   respectively, of the Company Outstanding Voting Securities immediately prior   to such Business Combination beneficially own, directly or indirectly, more   than a majority of the combined voting power of the then outstanding voting   securities entitled to vote generally in the election of directors of the   company resulting from such Business Combination, (ii) no Person (excluding   any company resulting from such Business Combination) beneficially owns,   directly or indirectly, 50% or more of the combined voting power of the then outstanding   voting securities entitled to vote generally in
the election of directors of   the company resulting from such Business Combination except to the extent   such ownership existed prior to the Business Combination, and (iii) at least   a majority of the members of the Board of Directors of the company resulting   from the Business Combination are Continuing Directors (as hereinafter   defined) at the time of the execution of the definitive agreement, or the   action of the Board, providing for such Business Combination;
  

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          (d)          consummation   of the sale, other than in the ordinary course of business, of more than 50%   of the combined assets of the Company and its subsidiaries in a transaction   or series of related transactions during the course of any twelve-month   period; or
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (e)          the   date on which Continuing Directors (as hereinafter defined) cease for any   reason to constitute at least a majority of the Board of Directors of the   Company.
  
	
   
 	
   
 	
   
 
	
   
 	
  
As used in this Section 5.6, the   definitions of the terms “beneficial owner” and “group” shall have the   meanings ascribed to those terms in Rule 13(d)(3) under the Securities   Exchange Act of 1934. As used in this Section 5.6, the term “Continuing   Directors” shall mean, as of any date of determination, (i) any member of the   Board of Directors on the Effective Date of this Agreement, (ii) any person   who has been a member of the Board of Directors for the two years immediately   preceding such date of determination, or (iii) any person who was nominated   for election or elected to the Board of Directors with the affirmative vote   of the greater of (A) a majority of the Continuing Directors who were members   of the Board of Directors at the time of such nomination or election or (B)   at least four Continuing Directors but excluding, for purposes of this clause   (iii), any such individual whose initial assumption of office
occurs as a   result of an actual or threatened election contest with respect to the   election or removal of directors or other actual or threatened solicitation   of proxies by or on behalf of a Person other than the Board of Directors of   the Company.  “Control” means the   direct or indirect ownership of voting securities constituting more than   fifty percent (50%) of the issued voting securities of a corporation.
  
	
   
 	
   
 	
   
 
	
   
 	
            26.7     Resignation   Upon Termination. Effective upon any termination under this   Section 5 or otherwise, Executive shall automatically and without taking any   further actions be deemed to have resigned from all positions then held by   him with the Company and all of its Subsidiaries and Affiliates.
  
	
   
 	
   
 	
   
 
	
   
 	
  
27.     Severance   Compensation
  
	
   
 	
   
 	
   
 
	
   
 	
  
          27.1     Termination   Upon Change in Control or Termination Other Than For Cause.  In the event Executive’s employment is   terminated in a Termination Upon a Change in Control or Termination Other   Than For Cause, Executive shall be paid the following as severance   compensation:
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (a)          Following   such termination of employment, an amount equal to six (6) months of Base   Salary at the rate payable at the time of such termination plus (i) any   accrued and unpaid benefits due Executive under paragraph 4.3 of this   Agreement and (ii) an amount equal to the Targeted Bonuses due (based on the   Base Salary then in effect) for the year in which such termination of   employment occurs (determined as though all requisite targets were fully and   completely achieved). Notwithstanding any provision in this paragraph (a) to   the contrary, Executive may, in Executive’s sole discretion, by delivery of a   notice to the Company within 30 days following a Termination Upon a Change in   Control, The executive would receive from the Company a lump sum severance   payment.  The Company shall also pay   the costs of COBRA
coverage for six months.
  

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          (b)          In   the event that Executive is not otherwise entitled to fully exercise all   awards granted to him under any stock option or other compensation plan   maintained by the Company and any such plan does not otherwise provide for   acceleration of exercise ability upon the occurrence of the Change in Control   described herein, such awards shall become immediately exercisable upon a   Change in Control.
  
	
   
 	
   
 	
   
 
	
   
 	
   
 	
  
          (c)          All   restricted stock granted to Executive will vest and become transferable.
  
	
   
 	
   
 	
   
 
	
   
 	
  
          27.2    Termination Upon Any   Other Event.  In the   event of a Voluntary Termination, Termination For Cause, termination by   reason of Executive’s disability pursuant to subsection 5.3 or termination by   reason of Executive’s death pursuant to subsection 5.4, Executive or his   estate shall not be paid any severance compensation.
  

          28.     Confidentiality.  Executive agrees to hold in strict confidence all non-public information concerning any matters affecting or relating to the business of the Company, its Subsidiaries and Affiliates, including without limiting the generality of the foregoing non-public information concerning their manner of operation, business or other plans, data bases, marketing programs, protocols, processes, computer programs, client lists, marketing information and analyses, operating policies or manuals or other data.  Executive agrees that he will not, directly or indirectly, use any such information for the benefit of others than the Company or disclose or communicate any of such information in any manner whatsoever other than to the directors, officers, employees, agents and representatives of the Company who need to know such information, who shall be
informed by Executive of the confidential nature of such information and directed by Executive to treat such information confidentially.  Upon the Company’s request, Executive shall return all information furnished to him related to the business of the Company without retaining any copies in electronic or other form.  The above limitations on use and disclosure shall not apply to information which Executive can demonstrate:  (a) was known to Executive before receipt thereof from the Company; (b) is learned by Executive from a third party entitled to disclose it; or (c) becomes known publicly other than through Executive; (c) is disclosed by Executive upon authority of the Board or any committee of the Board; (d) is disclosed pursuant to any legal requirement or (e) is disclosed pursuant to any agreement to which the Company or any of its Subsidiaries or Affiliates is a party.  The parties hereto stipulate that all such information is material and confidential and gravely
affects the effective and successful conduct of the business of the Company and the Company’s goodwill, and that any breach of the terms of this Section 7 shall be a material breach of this Agreement.  The terms of this Section 7 shall survive and remain in effect following any termination of this Agreement. 

          29.     Use of Proprietary Information.  Executive recognizes that the Company possesses a proprietary interest in all of the information described in Section 7 and has the exclusive right and privilege to use, protect by copyright, patent or trademark, manufacture or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing. Executive expressly agrees that any products, inventions, discoveries or improvements made by Executive, his agents or affiliates, during the term of this Agreement, based on or arising out of the information described in Section 7 shall be the property of and inure to the exclusive benefit of the Company. Executive further agrees that any and all products, inventions, discoveries or improvements developed by Executive (whether
or not able to be protected by copyright, patent or trademark) in the scope of his employment, or involving the use of the Company’s time, materials or other resources, shall be promptly disclosed to the Company and shall become the exclusive property of the Company.

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30.      Non-Competition   Agreement.
  
	
   
 	
   
 
	
   
 	
  
          30.1     Non-Competition.  Executive agrees that, during the   Employment Term and for a period of six (6) months following any termination   of such employment, Executive shall not, without the prior written consent of   the Company, directly or indirectly, own, manage, operate, control, be connected   with as an officer, employee, partner, consultant or otherwise, or otherwise   engage or participate in (except as an employee of the Company, or Affiliate   of it) any corporation or other business entity engaged in the operation,   ownership or management of a bank, trust company or financial services   business in Missouri or Kansas. Notwithstanding the foregoing, the ownership   by Executive of less than 5% of any class of the outstanding capital stock of   any corporation conducting such a competitive business which is regularly   traded on a national
securities exchange or in the over-the-counter market   shall not be a violation of the foregoing covenant.
  
	
   
 	
   
 
	
   
 	
  
          30.2     Non-Solicitation.  During the Employment Term and for a   period of six (6) months following any termination of such employment,   Executive shall not, except on behalf of or with the prior written consent of   the Company, directly or indirectly, entice or induce, or attempt to entice   or induce, any employee of the Company to leave such employ, or employ any   such person in any business similar to or in competition with that of the   Company.  Executive hereby   acknowledges and agrees that the provisions set forth in this subsection 9.2   constitute a reasonable restriction on his ability to compete with the   Company.
  
	
   
 	
   
 
	
   
 	
            30.3     Saving   Provision.  The parties   hereto agree that, in the event a court of competent jurisdiction shall   determine that the geographical or durational elements of this covenant are   unenforceable, such determination shall not render the entire covenant   unenforceable. Rather, the excessive aspects of the covenant shall be reduced   to the threshold which is enforceable, and the remaining aspects shall not be   affected thereby.
  
	
   
 	
   
 
	
   
 	
  
          30.4     Equitable   Relief.  Executive   acknowledges that the extent of damages to the Company from a breach of   Sections 7, 8 and 9 of this Agreement would not be readily quantifiable or   ascertainable, that monetary damages would be inadequate to make the Company   whole in case of such a breach, and that there is not and would not be an   adequate remedy at law for such a breach.    Therefore, Executive specifically agrees that the Company is entitled   to injunctive or other equitable relief (without any requirement to post any   bond or other security) from a breach of Sections 7, 8 and 9 of this   Agreement, and hereby waives and covenants not to assert against a prayer for   such relief that there exists an adequate remedy at law, in monetary damages   or otherwise.
  
	
   
 	
   
 
	
   
 	
  
          30.5     Change of   Control, Termination Other Than For Cause or Voluntary Termination.  If after any Change of Control,   Termination Other Than For Cause or Voluntary Termination, Executive’s   employment is terminated under circumstances such that Executive does not   receive severance compensation pursuant to Section 6.1, Executive shall not   be subject to the restrictions of this Section 9.1 unless the Company
  

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continues to pay either as a lump sum or   without interruption Executive’s Base Salary at the rate in effect   immediately prior to such termination and then only so long as such payments   are continued without interruption for a period of up to six months after   termination.
  

          31.       Assignment.   This Agreement shall not be assignable by Executive and shall not be assignable by the Company except by operation of law or to a successor entity acquiring all or substantially all the Company’s business or assets.  No such assignment shall affect any determination of whether such assignment involves a Change of Control for purposes of this Agreement.  In the event of any assignment permitted hereby, the duties and responsibilities of Executive performed for the assignee shall not, without the written consent of Executive, be materially increased, altered or diminished in a manner inconsistent with Executive’s duties and responsibilities hereunder for the Company. 

          32.       Entire Agreement.  This Agreement and any agreements entered into after the date hereof under any of the Company’s benefit plans or compensation programs as described in Section 4 contain the complete agreement concerning the employment arrangement between the parties, including without limitation severance or termination pay, and shall, as of the Effective Date, supersede all other agreements or arrangements between the parties with regard to the subject matter hereof. 

          33.       Binding Agreement.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. The obligations of the Company under this Agreement shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business or similar event relating to the Company.  This Agreement shall not be terminated by reason of any merger, consolidation or reorganization of the Company, but shall be binding upon and inure to the benefit of the surviving or resulting entity. 

          34.       Modification.  No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless authorized by the Board and reduced to in writing and duly executed by the party to be charged therewith and no evidence of any waiver or modification shall be offered or received in evidence of any proceeding, arbitration, or litigation between the parties hereto arising out of or affecting this Agreement, or the rights or obligations of the parties thereunder, unless such waiver or modification is in writing, duly executed as aforesaid. 

          35.       Severability.  All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid or unenforceable by any court of competent jurisdiction, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein. 

          36.       Manner of Giving Notice.  All notices, requests and demands to or upon the respective parties hereto shall be sent by hand, certified mail, overnight air courier service, in each case with all applicable charges paid or otherwise provided for, addressed as follows, or to such other address as may hereafter be designated in writing by the respective parties hereto: 

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To Company:
  	
  
To Executive:   at his current residential address 
  
	
  
 
  	
  
Enterprise   Financial Services Corp
  	
  
on file with   the Company.
  
	
  
 
  	
  
150 North   Meramec
  	
  
 
  
	
  
 
  	
  
Clayton,   Missouri 63105
  	
  
 
  
	  
	 Attention:          President
	  

	
  
 
  	
  
                            and Corporate Secretary
  	
  
 
  

          Such notices, requests and demands shall be deemed to have been given or made on the date of delivery if delivered by hand or by telecopy and on the next following date if sent by mail or by air courier service. 

          37.          Remedies.  In the event of a breach of this Agreement, the non-breaching party shall be entitled to such legal and equitable relief as may be provided by law, and shall further be entitled to recover all costs and expenses, including reasonable attorneys’ fees, incurred in enforcing the non-breaching party’s rights hereunder. 

          38.          Headings. The headings have been inserted for convenience only and shall not be deemed to limit or otherwise affect any of the provisions of this Agreement. 

          39.          Choice of Law.  It is the intention of the parties hereto that this Agreement and the performance hereunder be construed in accordance with, under and pursuant to the laws of the State of Missouri without regard to the jurisdiction in which any action or special proceeding may be instituted. 

          40.          Taxes.  The company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law. 

          41.          Voluntary Agreement; No Conflicts.  Executive hereby represents and warrants to the Company that he is legally free to accept and perform his employment with the Company, that he has no obligation to any other person or entity that would affect or conflict with any of Executive’s obligations pursuant to such employment, and that the complete performance of the obligations pursuant to Executive’s employment will not violate any order or decree of any governmental or judicial body or contract by which Executive is bound.  The Company will not request or require, and Executive agrees not to use, in the course of Executive’s employment with the Company, any information obtained in Executive’s employment with any previous employer to the extent that such use would violate any contract by which Executive
is bound or any decision, law, regulation, order or decree of any governmental or judicial body. 

          42.          Certain Definitions.  As used herein, the following definitions shall apply: 

          “Affiliate” with respect to any person, means any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of the first Person, a Person of which the first Person is a Subsidiary, or another Subsidiary of a Person of which the first Person is also a Subsidiary. 

          “Control” With respect to any Person, means the possession, directly or indirectly, severally or jointly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise. 

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          “Person” Any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity. 

          “Subsidiary” With respect to any Person, each corporation or other Person in which the first Person owns or Controls, directly or indirectly, capital stock or other ownership interests representing 50% or more of the combined voting power of the outstanding voting stock or other ownership interests of such corporation or other Person. 

          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first stated above. 

	
  
 
  	
  
ENTERPRISE   FINANCIAL SERVICES CORP
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  
	  
	 Title:
	  _______________________________________________________________________

	  
	  
	  

	  
	 EXECUTIVE:
	  

	  
	  
	  

	  
	 _____________________________________________________________________________________
     

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