Document:

MULTIPLE LINE
		QUOTA SHARE REINSURANCE AGREEMENT
	 

	 
		(hereinafter referred
		to as the “Agreement”)
	 

	 
		Between
	 

	 
		FIRST PROTECTIVE
		INSURANCE COMPANY
	 

	 
		Lake Mary,
		Florida
	 

	 
		(hereinafter referred
		to as the “Company”)
	 

	 
		and
	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		(hereinafter referred
		to as the “Reinsurer”)
	 

	 
		
	 

	 

	 
	 

	 

	 	
			 
				TABLE
				OF CONTENTS 
			 

		  	 	 	 
	
	 	 	 
	PREAMBLE	 	1	 
	ARTICLE 1 - BUSINESS REINSURED	 	1	 
	ARTICLE 2 - COMMENCEMENT AND TERMINATION	 	1	 
	ARTICLE 3 - TERRITORY	 	2	 
	ARTICLE 4 - EXCLUSIONS	 	2	 
	ARTICLE 5 - RETENTION AND LIMIT	 	5	 
	ARTICLE 6 - EXCESS OF POLICY LIMITS /
			 ECO	 	6	 
	ARTICLE 7 - LOSS OCCURRENCE	 	7	 
	ARTICLE 8 - OTHER REINSURANCE	 	8	 
	ARTICLE 9 - LOSS AND LOSS EXPENSE	 	8	 
	ARTICLE 10 - SALVAGE AND SUBROGATION	 	9	 
	ARTICLE 11 - REINSURANCE PREMIUM	 	9	 
	ARTICLE 12 - ORIGINAL CONDITIONS	 	10	 
	ARTICLE 13 - COMMISSION	 	10	 
	ARTICLE 14 - REPORTS AND REMITTANCES	 	11	 
	ARTICLE 15 - OFFSET	 	12	 
	ARTICLE 16 - ACCESS TO RECORDS	 	12	 
	ARTICLE 17 - ERRORS OR OMISSIONS	 	12	 
	ARTICLE 18 - CURRENCY	 	12	 
	ARTICLE 19 - TAXES	 	13	 
	ARTICLE 20 - INSOLVENCY	 	13	 

	 
		
	 

	 

	 
	 

	 

	 	ARTICLE 21 - ARBITRATION	 	13	 
	ARTICLE 22 - GOVERNING LAW	 	14	 
	ARTICLE 23 - FEDERAL EXCISE TAX	 	14	 
	ARTICLE 24 - SERVICE OF SUIT	 	14	 
	ARTICLE 25 - LETTER OF CREDIT	 	15	 
	ARTICLE 26 - NO THIRD PARTY RIGHTS	 	16	 
	ARTICLE 27 - CONSTRUCTION	 	16	 
	ARTICLE 28 - SEVERABILITY	 	17	 
		

	 
		
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		PREAMBLE
	 

	 
		In consideration of
		the mutual covenants hereinafter contained the parties hereto agree as
		follows:
	 

	 
		ARTICLE 1 - BUSINESS REINSURED
	 

	 	A.	By
			 this Agreement the Company obligates itself to cede to the Reinsurer and the
			 Reinsurer obligates itself to accept quota share reinsurance of the
			 Company’s Net Liability (as defined in paragraph B below) under policies,
			 contracts and binders of insurance or reinsurance (hereinafter called
			 “Policies”) in force at the effective date hereof, and new or renewed
			 on or after that date and classified as Homeowners Multi Peril, Dwelling Fire
			 Comprehensive Personal Liability, and all Allied Lines.
		 
	B.	“Net Liability” as used herein is defined as only that
			 portion of the Company’s gross liability for losses occurring during the
			 term hereof which the Company retains net for its own account after deduction
			 for all reinsurance on the covered business, salvage, subrogation and other
			 recoveries, and in calculating the amount of any loss hereunder and also in
			 computing the amount or amounts to which this Agreement attaches, only loss or
			 losses in respect of any Policy for which the Company has actually paid Net
			 Ceded Written Premium (as defined in Article 11 – Reinsurance Premium)
			 shall be included and only that portion of such loss or losses which the
			 Company retains net for its own account shall be included.
		 
	 	The amount of the Reinsurer’s liability hereunder in respect of
			 any loss or losses shall not be increased by reason of the inability of the
			 Company to collect from any other reinsurer(s), whether specific or general,
			 any amounts which may have become due from such reinsurer(s), whether such
			 inability arises from the insolvency of such other reinsurer(s) or
			 otherwise.
		 
	C.	The liability of the Reinsurer with respect to each cession hereunder
			 shall commence obligatorily and simultaneously with that of the Company,
			 subject to the terms, conditions and limitations hereinafter set
			 forth.

	 
		ARTICLE 2 - COMMENCEMENT AND TERMINATION
	 

	 	A.	This Agreement shall become effective at 12:01 a.m., Eastern Standard
			 Time, October 1, 2006, with respect to losses occurring on or after that date
			 and shall remain in full force and effect until terminated as provided in the
			 following paragraph.
		 
	B.	Either the Company or the Reinsurer shall have the right to terminate
			 this Agreement at annually, beginning December 31, 2007, by giving the other
			 party 90 days prior notice in writing via either Certified or Registered Mail,
			 return receipt requested.
		 
	C.	As
			 respects losses ceded under Policies covered hereunder which are still in force
			 at the termination of this Agreement, the Reinsurer shall remain liable on such
			 Policies for a further 

	 
		Page 1 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	twelve (12) months or until the natural expiration, renewal or
			 cancellation of such Policies, whichever occurs first.
		 
	D.	The Reinsurer may at its option, notify the Company prior to or within
			 30 days after the effective date of termination, of its election to terminate
			 the entire liability of the Reinsurer for losses occurring subsequent to the
			 time and date of termination in which event the Reinsurer shall return the
			 appropriate unearned premium reserve to the Company less the commission
			 previously allowed thereon.
		 
	E.	The Reinsurer shall have the right to terminate this Agreement upon 30
			 days prior notice in writing via either Certified or Registered Mail, return
			 receipt requested, in the event of a change of control or a material change of
			 ownership should any of the Company’s principals, including Lanier Porter,
			 Leman Porter and Willis King, cease to be actively engaged in the Company or
			 should their respective shares of ownership of the Company’s stock be
			 reduced or diluted by more than 10%.

	 
		ARTICLE 3 - TERRITORY
	 

	 
		This Agreement
		applies to Policies issued to insureds domiciled in the state of Florida; but
		this limitation shall not apply to loss if the Company’s Policies for such
		insureds provide coverage outside the aforesaid territorial limits.
	 

	 
		ARTICLE 4 - EXCLUSIONS
	 

	 
		A.
		   This Agreement does not apply to and specifically excludes
		the following:
	 

	 		1.	All excess of loss reinsurance assumed by the Company.
		 	 
		2.	Reinsurance assumed by the Company under obligatory reinsurance
			 agreements, except agency reinsurance where the policies are to be
			 re-underwritten in accordance with the underwriting standards of the Company
			 and reissued as Company policies at the next anniversary or expiration date and
			 reinsurance assumed as a result of the depopulation of Citizens Property
			 Insurance Corporation and/or any reinsurance assumed from private carriers as a
			 result of depopulations.
			 
		3.	Financial Guarantee and Insolvency.
			 
		4.	All Accident and Health, Fidelity and Surety, Boiler and Machinery,
			 Workers’ Compensation and Credit business.
			 
		5.	All Ocean Marine business.
			 
		6.	All Inland Marine business.
			 
		7.	All Automobile business.

	 
		 Page 2 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 		8.	All Aviation, Aerospace and Satellite business.
			 
		9.	All Railroad business.
			 
		10.	All insurances on growing or standing crops.
			 
		11.	Flood and/or earthquake when written as such.
			 
		12.	Difference in Conditions insurances and similar kinds of insurances,
			 however styled, insofar as they may provide coverage for losses from the
			 following causes:
			 

	 		a.	Flood, surface water, waves, tidal water or tidal waves, overflow of
			 streams or other bodies of water or spray from any of the foregoing, all
			 whether wind-driven or not, except when covering property in transit;
			 or
			 
		b.	Earthquake, landslide, subsidence or other earth movement or volcanic
			 eruption; except when covering property in transit.
			 

	 		13.	Mortgage Impairment insurances and similar kinds of insurances,
			 however styled.
			 
		14.	Nuclear risks as defined in the Nuclear Incident Exclusion Clause-
			 Physical Damage­Reinsurance- U.S.A. and Nuclear Incident Exclusion Clause-
			 Liability- Reinsurance­U.S.A attached to and forming part of this
			 Agreement.
			 
		15.	Risks excluded under the provisions of the “Total Insured Value
			 Exclusion Clause” attached to and forming a part of this
			 Agreement.
			 
		16.	Loss or damage caused by or resulting from war, invasion, hostilities,
			 acts of foreign enemies, civil war, rebellion, insurrection, military or
			 usurped power, martial law or confiscation by order of any government or public
			 authority, but this exclusion shall not apply to loss or damage covered under a
			 standard policy with a standard War Exclusion Clause.
			 
		17.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate
			 or Association; and any combination of insurers or reinsurers formed for the
			 purpose of covering specific perils, specific classes of business or for the
			 purpose of insuring risks located in specific geographical areas; but this
			 exclusion shall not apply to residual market mechanisms, including but not
			 limited to FAIR Plans, Joint Underwriting Associations or to Coastal Pools,
			 Beach Plans or similar plans, however styled. It is understood and agreed,
			 however, that this reinsurance does not include any increase in liability to
			 the Company resulting from (a) the inability of any other participant in a
			 residual market mechanism, including but not limited to a FAIR Plan, Joint
			 Underwriting Associations Coastal Pool, Beach Plan or similar plan to meets its
			 liability, or (b) any claim against such a residual market mechanism, including
			 but not limited to a FAIR Plan, Joint Underwriting Association, Coastal Pool,
			 Beach Plan or similar plan, or any participant therein, 

	 
		Page 3 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	including the Company, whether by way of subrogation or otherwise,
			 brought by or on behalf of any insolvency fund.
		 

	 		18.	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, insolvency fund, plan, pool, association, fund or other
			 arrangement, however denominated, established or governed, which provides for
			 any assessment of or payment or assumption by the Company of part or all of any
			 claim, debt, charge, fee or other obligation of an insurer, or its successors
			 or assigns, which has been declared by any competent authority to be insolvent,
			 or which is otherwise deemed unable to meet any claim, debt, charge fee or
			 other obligation in whole or in part.
			 
		19.	Seepage and pollution, defined as any loss or damage or costs or
			 expenses arising from seepage and/or pollution and/or contamination, other than
			 contamination from smoke damage. Nevertheless, this exclusion does not preclude
			 payment of the cost of the removal of debris of property damaged by a loss
			 otherwise covered hereunder, but subject always to a limit of 25% of the
			 Company’s property loss under the policy.
			 
		20.	Losses in respect of overhead transmission and distribution lines and
			 their supporting structures other than those on or within 150 meters (or 500
			 feet) of the insured premises. It is understood and agreed that public
			 utilities extension and/or suppliers extension and/or contingent business
			 interruption coverages are not subject to this exclusion, provided that these
			 are not part of a transmitters’ or distributors’ policy.
			 
		21.	Losses excluded under the Electronic Date Recognition Clause (B)
			 attached to and forming part of this Agreement.
			 
		22.	Mold - This reinsurance excludes any loss, damage, claim, cost,
			 expense, sum or other obligation of any kind or description directly or
			 indirectly caused by, contributing to, or resulting from mold, fungus, mildew
			 or spores unless resulting from a sudden and accidental loss which is caused by
			 an insured peril covered under the Company’s Policy in which case, any
			 loss resulting from the aforementioned perils is only covered if Reinsurer is
			 notified within six (6) months of the original date of loss and the loss
			 results from an insured peril.
			 
		23.	Losses arising from PCS (Property Claims Services) numbered
			 events.
			 
		24.	Losses directly or indirectly occasioned by:
			 

	 		1.	Loss of, alteration of, or damage to; or
			 
		2.	A
			 reduction in the functionality, availability or operation of;
			 

	 	 	a
			 computer system, hardware, program, software, data, information repository,
			 microchip, integrated circuit, or similar device in computer equipment or
			 non-

	 
		Page 4 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	computer equipment, whether the property of the policyholder of the
			 Company or not, are not covered by this Agreement unless arising out of one or
			 more of the following perils:
		 

	 	 	fire, lightning, explosion, aircraft or vehicle impact, falling
			 objects, windstorm, hail, tornado, cyclone, hurricane, earthquake, volcano,
			 tsunami, flood, freeze or weight of snow.
		 

	 		25.	Terrorism as excluded under the provisions of the Terrorism Exclusion
			 NMA 2930c (as attached to and forming a part of this Agreement).
			 
		26.	All Allocated and Unallocated Loss Adjustment Expenses.

	 
		Except with respect
		to risks excluded by Exclusions 3, 5, 8, 13, 16-19, 22-25, and the Nuclear
		Incident Exclusion Clauses, if the Company, without its knowledge is bound or
		unknowingly exposed on a risk falling otherwise within one of the foregoing
		exclusions, such risks are covered hereunder until the Company receives
		knowledge thereof and, pending cancellation of such risk, for a period of ten
		(10) days in addition to the time permitted for cancellation in the
		Company’s original Policy, such total period not exceeding 70 days in
		all.
	 

	 
		ARTICLE 5 - RETENTION AND LIMIT
	 

	 	A.	As
			 respects business subject to this Agreement, the Company shall retain and be
			 liable for 20% of its Net Liability. The Company shall cede to the Reinsurer
			 and the Reinsurer shall accept 80% (Reinsurer’s share) of the
			 Company’s Net Liability. The Company shall have the right but not the
			 obligation, with effective from July 1, 2007, to reduce the Reinsurer’s
			 share of the contract, with regard to business not yet ceded. Notwithstanding
			 the above the Reinsurer’s share shall not be reduced to less that
			 50%.

	 
		         The election to
		reduce the Reinsurers share must be made before July 1, 2007.
	 

	 	B.	As
			 respects losses arising out of any one Loss Occurrence (as defined in Article 7
			 – Loss Occurrence), the liability of the Reinsurer for loss (exclusive of
			 loss in excess of Policy limits and extra contractual obligations) hereunder
			 shall not exceed the Reinsurer’s share of $2,000,000 ($1,600,000 at 80%
			 Reinsurer’s share). Loss in excess of Policy limits and extra contractual
			 obligations, as defined in Article 6 - Excess of Policy Limits / ECO, shall be
			 added to the Company’s loss, if any, under the Policy involved and shall
			 be included when computing the Reinsurer’s limit of liability as described
			 in paragraph E below.
		 
	C.	With respect to each agreement year hereunder (as defined in Article
			 14- Profit Commission), the Company shall retain, in addition to its quota
			 share retention set forth in paragraph A above, the Net Liability (as defined
			 in Article 1 – Business Reinsured) for losses incurred (inclusive of loss,
			 extra contractual obligations, loss in excess of Policy limits and any
			 assessments covered by this Agreement) which would be ceded hereunder, were it
			 not for the provisions of this paragraph, in an amount equal to [*]% of Losses
			 Incurred (as defined in Article 13- Commission) for the agreement year in
			 excess of a [*]% Loss Ratio (as 

	 
		Page 5 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	defined in paragraph E below) and less than an [*]% Loss Ratio for the
			 agreement year and shall hereinafter be referred to as the “loss retention
			 corridor.” 
		 
	D.	All Policies covered under this Agreement are subject to a maximum net
			 property insured value of $500,000 and a maximum Comprehensive Personal
			 Liability (CPL) limit of $500,000 or so deemed. The number of Policies with
			 maximum CPL limits of $500,000 shall not exceed 750 without prior approval from
			 the Reinsurer.
		 
	E.	The Reinsurer’s liability for losses (inclusive of loss, extra
			 contractual obligations, loss in excess of Policy limits and any assessments
			 covered by this Agreement) during any one agreement year, net of inuring
			 reinsurance (whether collected or not), shall not exceed a Loss Ratio of [*]%
			 for that agreement year. The Company shall retain and be liable for 100% of the
			 losses incurred in excess of a Loss Ratio of [*]% for that agreement year.
			 Thus, when the loss retention corridor is applied, the Reinsurer’s
			 liability for losses shall not exceed its share of the Company’s Net
			 Liability up to a [*]% Loss Ratio.
		 
	F.	For purposes of calculating the loss retention corridor and limit of
			 liability for an agreement year, “Loss Ratio” is defined as 118% of
			 the quantity (the Company’s net losses for such period excluding all loss
			 adjustment expenses) divided by the quantity (“Net Ceded Earned
			 Premium” (as defined in Article 13 – Commission) for such
			 period).
		 
	G.	If
			 a Loss Occurrence involves more than one insured or Policy and more than one
			 agreement year, the retention and limit as respects the loss or losses covered
			 under each agreement year shall be the percentage of the retention and limit of
			 this Agreement that the amount of covered loss or losses bears to the total of
			 all losses in the Loss Occurrence.

	 
		ARTICLE 6 - EXCESS OF POLICY LIMITS / ECO
	 

	 	A.	In
			 the event the Company pays or is held liable to pay an amount of loss in excess
			 of the Company’s Policy limit, but otherwise within the terms of its
			 Policy (hereinafter called “loss in excess of Policy limits”) or any
			 punitive, exemplary, compensatory, or consequential damages, other than loss in
			 excess of Policy limits (hereinafter called “extra contractual
			 obligations”) because of alleged or actual bad faith or negligence on its
			 part in rejecting a settlement within Policy limits, or in discharging its duty
			 to defend or prepare the defense in the trial of an action against its
			 policyholder, or in discharging its duty to prepare or prosecute an appeal
			 consequent upon such an action, or in otherwise handling a claim under a Policy
			 subject to this Agreement, loss in excess of Policy limits and/or extra
			 contractual obligations, shall be added to the Company’s loss, if any,
			 under the Policy involved, subject to the Reinsurer’s share of a maximum
			 of $2,000,000 and the sum thereof shall be furthermore subject to the
			 provisions of Article 5 - Retention and Limit.
		 
	B.	In
			 no event shall the Reinsurer’s liability for losses (inclusive of loss in
			 excess of Policy limits and extra contractual obligations) exceed the maximum
			 limit described in Article 5 – Retention and Limit. 

	 
		Page 6 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	C.	An
			 extra contractual obligation shall be deemed to have occurred on the same date
			 as the loss covered or alleged to be covered under the Policy.
		 
	D.	Notwithstanding anything stated herein, this Agreement shall not apply
			 to any loss in excess of Policy limits or any extra contractual obligation
			 incurred by the Company as a result of any fraudulent and/or criminal act by
			 any officer or director of the Company acting individually or 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.
		 
	E.	Recoveries from any form of insurance or reinsurance which protects
			 the Company against claims the subject matter of this Article shall inure to
			 the benefit of this Agreement.

	 
		ARTICLE 7 - LOSS OCCURRENCE
	 

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

	 		1.	As
			 regards windstorm, hail, tornado, hurricane, cyclone, including ensuing
			 collapse and water damage, all individual losses sustained by the Company
			 occurring during any period of 72 consecutive hours arising out of and directly
			 occasioned by the same event. However, the event need not be limited to one
			 state or province or states or provinces contiguous thereto.
			 
		2.	As
			 regards riot, riot attending a strike, civil commotion, vandalism and malicious
			 mischief, all individual losses sustained by the Company occurring during any
			 period of 72 consecutive hours within the area of one municipality or county
			 and the municipalities or counties contiguous thereto arising out of and
			 directly occasioned by the same event. The maximum duration of 72 consecutive
			 hours may be extended in respect of individual losses which occur beyond such
			 72 consecutive hours during the continued occupation of an assured’s
			 premises by strikers, provided such occupation commenced during the aforesaid
			 period.
			 
		3.	As
			 regards earthquake (the epicentre of which need not necessarily be within the
			 territorial confines referred to in the introductory portion of this paragraph)
			 and fire following directly occasioned by the earthquake, only those individual
			 fire losses which commence during the period of 168 consecutive hours maybe
			 included in the Company’s “Loss Occurrence.”

	 
		Page 7 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

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

	 	B.	For all those “Loss Occurrences,” other than those referred
			 to in subparagraph 2 of paragraph A above, the Company may choose the date and
			 time when any such period of consecutive hours commences, provided that it is
			 not earlier than the date and time of the occurrence of the first recorded
			 individual loss sustained by the Company arising out of that disaster, accident
			 or loss, and provided that only one such period of 168 consecutive hours shall
			 apply with respect to one event, except for any “Loss Occurrence”
			 referred to in subparagraph 1 of paragraph A above where only one such period
			 of 72 consecutive hours shall apply with respect to one event, regardless of
			 the duration of the event.
		 
	C.	As
			 respects those “Loss Occurrences” referred to in subparagraph 2 of
			 paragraph A above, if the disaster, accident or loss occasioned by the event is
			 of greater duration than 72 consecutive hours, then the Company may divide that
			 disaster, accident or loss into two or more “Loss Occurrences,”
			 provided no two periods overlap and no individual loss is included in more than
			 one such period and provided that no period commences earlier than the date and
			 time of the occurrence of the first recorded individual loss sustained by the
			 Company arising out of that disaster, accident or loss.
		 
	D.	No
			 individual losses occasioned by an event that would be covered by 72 hours
			 clauses may be included in any “Loss Occurrence” claimed under the
			 168 hours provision.

	 
		ARTICLE 8 - OTHER REINSURANCE
	 

	 
		The Company shall be
		permitted to carry facultative reinsurance and other treaty reinsurance,
		recoveries under which shall inure to the benefit of this Agreement. Premium
		ceded by the Company for reinsurance that inures to the benefit of this
		Agreement shall be deducted from premiums ceded to this Agreement as earned, in
		accordance with Article 11- Reinsurance Premium. A schedule listing the
		facultative reinsurance and other treaty reinsurance carried by the Company is
		attached hereto as Attachment A. Reinsurance carried by the company shall be
		substantially the same as contained in Attachment A. 
	 

	 
		ARTICLE 9 - LOSS AND LOSS EXPENSE
	 

	 	A.	Losses shall be reported by the Company in summary form as hereinafter
			 provided, but the Company shall notify the Reinsurer immediately when a
			 specific case involves unusual circumstances or large loss possibilities.
			 Further, the Company shall notify the Reinsurer whenever a claim involves a
			 fatality, amputation, spinal cord damage, blindness, extensive burns or
			 multiple fractures, regardless of liability. The Reinsurer shall have the right
			 to participate, at its own expense, in the defense of any claim or suit or
			 proceeding involving this reinsurance.

	 
		Page 8 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	B.	Any loss settlement made by the Company when within the Policy’s
			 terms and conditions, shall be binding upon the Reinsurer and the Reinsurer
			 agrees to pay or allow, as the case may be, its proportion of each such
			 settlement in accordance with Article 5- Retention and Limit.
		 
	C.	The Reinsurer shall not be liable for litigation expenses, interest on
			 judgments, or any other loss adjustment expense incurred by the Company in
			 connection with claims under Policies subject to this Agreement.

	 
		ARTICLE 10 - SALVAGE AND SUBROGATION
	 

	 
		The Reinsurer shall
		be credited with its proportionate share of salvage (i.e., reimbursement
		obtained or recovery made by the Company, less the actual cost, excluding
		salaries of officials and employees of the Company and sums paid to attorneys
		as retainer, of obtaining such reimbursement or making such recovery) on
		account of claims and settlements involving reinsurance hereunder. The Company
		hereby agrees to enforce its rights to salvage or subrogation relating to any
		loss, a part of which was sustained by the Reinsurer, and to prosecute all
		claims arising out of such rights.
	 

	 
		ARTICLE 11 - REINSURANCE PREMIUM
	 

	 
		As premium for the
		reinsurance provided hereunder, the Company shall pay the Reinsurer:
	 

	 	A.	The Reinsurers share of its net written premium for each agreement
			 year. This “Net Ceded Written Premium” is defined as the Reinsurers
			 share of the following amount: gross written premium of the Company for
			 the class of business reinsured hereunder, less cancellations and return
			 premiums, less ceded premiums earned for the for Florida Hurricane Catastrophe
			 Fund protection and non-Florida Hurricane Catastrophe Fund property catastrophe
			 excess of loss reinsurance, less ceded premiums earned by the Company for
			 property per risk excess of loss reinsurance and other reinsurance (not to
			 include any reinstatement premiums paid or earned by the Company to catastrophe
			 excess of loss reinsurers, including FHCF) which inures to the benefit of this
			 Agreement. The Company’s estimated Net Ceded Written Premium for the
			 agreement period commencing October 1, 2006 is $76,998,347.36.
		 
	B.	The Reinsurer’s share of the unearned premium reserve as of
			 October 1, 2006 is $ 38,580,413.51.

	 
		The Company shall
		remit the Net Ceded Written Premium to the Reinsurer within 45 days of the end
		of each quarter. The Company shall remit the Reinsurers share of the unearned
		premium reserve as of October 1, 2006 to the Reinsurer no later than 10 days
		for execution of this contract. Attachment B provides a schedule of estimated
		remittances for the agreement year commencing October 1, 2006. 
	 

	 
		Page 9 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		ARTICLE 12 - ORIGINAL CONDITIONS
	 

	 
		All insurances
		falling under this Agreement shall be subject to the same terms, rates
		conditions and waivers, interpretations and to the same modifications,
		alterations and cancellations 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 Agreement.
	 

	 
		ARTICLE 13 - COMMISSION
	 

	 		A.	The Company shall allow a portion of the Reinsurance Premium actually
			 paid to the Reinsurer as a ceding commission in the amount of [*]% of Net Ceded
			 Written Premium. Should the Company fail to pay any portion of the Reinsurance
			 Premium due to the Reinsurer, then the amount of this ceding commission
			 allowance shall abate proportionately. Should the Company not admit any portion
			 of the ceding commission, or establish any portion of the commission as a
			 contingent liability, such amount shall become net profit to the company under
			 the terms of this contract.
			 
		B.	This commission allowance shall cover all dividends, commissions,
			 premium taxes, assessments, and any other expenses of the Company.
			 
		C.	The Reinsurer will pay the Company an additional Commission equal to
			 [*]% of the Net Profit, if any, accruing to the Reinsurer during each agreement
			 year. The first agreement year shall commence on the effective date of the
			 Agreement. 
			 
		D.	The Reinsurer’s Net Profit for each agreement year will be
			 calculated in accordance with the following formula, it being understood that a
			 positive balance equals Reinsurer’s Net Profit and a negative balance
			 equals Reinsurer’s Net Loss:
			 

	 		1.	Net Ceded Earned Premium actually paid for the agreement year,
			 less
			 
		2.	Ceding Commission as determined in Article 13 – Commission,
			 less
			 
		3.	Losses Incurred for the agreement year, less
			 
		4.	Reinsurer’s Expenses, which are deemed to be [*]% of the Net
			 Ceded Earned Premium with a minimum of $[*] (or upon election of cutoff the
			 treaty, by the Reinsurer, a minimum of $[*]), less
			 
		5.	An
			 allowance of 1% for Federal Excise Tax. 
			 

	 		E.	The Company shall calculate and report the Reinsurer’s Net Profit
			 for each agreement year within 45 days after the end of each agreement year and
			 within 45 days after the end of each 12 month period thereafter until 72 months
			 after inception of the agreement year, or earlier by mutually agreed
			 termination. Any profit commission due the Company shall 

	 
		Page 10 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	be
			 paid by the Reinsurer upon the earlier of (i) the date 72 months after
			 inception of the agreement year, or (ii) the date of an earlier mutually agreed
			 termination, at which time the Reinsurer will be released from all liabilities
			 for the agreement year. 
		 

	 		F.	“Net Ceded Earned Premium” as used herein shall mean ceded
			 unearned premiums at the beginning of the accounting period, plus ceded Net
			 Ceded Written Premiums during the period, less ceded unearned premiums at the
			 end of the period.
			 
		G.	“Losses Incurred” as used herein shall mean ceded losses
			 paid at the effective date of calculation, plus the ceded reserves for losses
			 outstanding as of the same date (including reserves for incurred but not
			 reported loss reserves), less any inuring reinsurance (whether collected or
			 not), all as respects losses occurring during the agreement year under
			 consideration. It is understood that losses retained by the Company pursuant to
			 the loss retention corridor provisions of Article 5 - Retention and Limit,
			 shall be included in Losses Incurred as respects calculation of the loss
			 retention corridor, but shall be excluded from Losses Incurred for purposes of
			 profit commission calculations in accordance with provisions of this
			 Article.

	 
		ARTICLE 14 - REPORTS AND REMITTANCES
	 

	 	A.	As
			 promptly as possible after the effective date of this Agreement, the Company
			 shall remit the Reinsurer’s share of the unearned premium (less commission
			 thereon) applicable to subject business in force at the effective date of this
			 Agreement.
		 
	B.	Within 45 days following the end of quarter, the Company will render a
			 net account to the Reinsurer. Such account will contain the
			 following:
		 

	 		1.	Gross written premium for the quarter,
			 
		2.	Reinsurance premiums paid for FHCF property catastrophe excess of loss
			 reinsurance, non-FHCF property catastrophe excess of loss reinsurance, property
			 per risk excess of loss reinsurance and other inuring reinsurance for the
			 quarter (as provided for in Article 8 - Other Reinsurance);
			 
		3.	Net Ceded Written Premium for the quarter;
			 
		4.	Ceding Commissions on (3) above and an allowance of 1% for Federal
			 Excise Tax on (3) above;
			 
		5.	Gross paid losses during the quarter;
			 
		6.	Paid losses ceded to inuring reinsurance plus other recoveries thereon
			 during the quarter;
			 
		7.	Incurred losses less any paid losses retained by the Company in the
			 loss retention corridor for the quarter (as defined in Article 5 – Limit
			 and Retention);
			 
		8.	Ceded losses paid during the quarter;
			 
		9.	Gross and net ceded unearned premium reserves as of the end of the
			 quarter;
			 
		10.	Gross and net ceded outstanding loss reserves (including reserves for
			 incurred but not reported losses) as of the end of the quarter.
			 

	 	 	The positive balance of 3 (being 1 less 2), less 4, less 8 (being 5
			 less 6 less 7) shall be remitted by the Company with its report. Any balance
			 shown to be due the Company shall 

	 
		Page 11 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	be
			 remitted by the Reinsurer as promptly as possible after receipt and
			 verification of the Company’s report.
		 
	C.	Annually, the Company shall furnish the Reinsurer with such
			 information as the Reinsurer may require to complete its Annual
			 Report.

	 
		ARTICLE 15 - OFFSET
	 

	 		A.	The Company and the Reinsurer may offset any balance or amount due
			 from one party to the other under this Agreement or any other agreement
			 heretofore or hereafter entered into between the Company and the Reinsurer.
			 This provision shall not be affected by the insolvency of either party to this
			 Agreement.
			 
		B.	The Company guarantees on a continuing basis its affiliates’
			 obligations to the Reinsurer and agrees that the Reinsurer may apply funds held
			 by it for the Company’s account to any such affiliates’ obligations.
			 

	 
		ARTICLE 16 - ACCESS TO RECORDS
	 

	 
		Upon request, the
		Company shall provide the Reinsurer at the Company’s premises with
		detailed information on the insurances that form the subject matter of this
		Agreement, including, at the Reinsurer’s expense, copies of the whole or
		part of any documents relating to the risks and their reinsurance. Such
		information shall be made available during the Company’s normal office
		hours to the Reinsurer’s representative(s) who shall be named in advance.
		Notification of such visit shall normally be given 14 days in advance and, even
		in urgent cases, at least 24 hours in advance. The Reinsurer shall have this
		right of inspection and information as long as the Reinsurer has obligations
		under this Agreement.
	 

	 
		ARTICLE 17 - ERRORS OR OMISSIONS
	 

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

	 

	 
		ARTICLE 18 - CURRENCY
	 

	 	A.	Whenever the word “Dollars” or the “$” sign
			 appears in this Agreement, they shall be construed to mean United States
			 Dollars and all transactions under this Agreement shall be in United States
			 Dollars.
		 
	B.	Amounts paid or received by the Company in any other currency shall be
			 converted to United States Dollars at the rate of exchange at the date such
			 transaction is entered on the books of the Company.

	 
		Page 12 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		ARTICLE 19 - TAXES
	 

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

	 
		ARTICLE 20 - INSOLVENCY
	 

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

 

	 	B.	 It is further understood and agreed that, in the event of the
			 insolvency of the Company, the reinsurance under this Agreement shall be
			 payable directly by the Reinsurer to the Company or to its liquidator,
			 receiver, conservator, or statutory successor, except as provided by Section
			 4118(a) of the New York Insurance Law or except (a) where this Agreement
			 specifically provides another payee of such reinsurance in the event of the
			 insolvency of the Company or (b) 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.

	 
		ARTICLE 21- ARBITRATION
	 

	 	A.	As
			 a condition precedent to any right of action hereunder, in the event of any
			 dispute or difference of opinion hereafter arising with respect to this
			 Agreement, it is hereby mutually agreed that such dispute or difference of
			 opinion shall be submitted to arbitration. One Arbiter shall be chosen by the
			 Company, the other by the Reinsurer, and an Umpire shall be chosen by the two
			 Arbiters before they enter upon arbitration, all of whom shall be active or
			 retired disinterested executive officers of insurance or reinsurance companies
			 or Lloyd’s 

	 
		Page 13 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	London Underwriters. In the event that either party should fail to
			 choose an Arbiter within thirty (30) days following a written request by the
			 other party to do so, the requesting party may choose two Arbiters who shall in
			 turn choose an Umpire before entering upon arbitration. If the two Arbiters
			 fail to agree upon the selection of an Umpire within thirty (30) days following
			 their appointment, each Arbiter shall nominate three candidates within ten (10)
			 days thereafter, two of whom the other shall decline, and the decision shall be
			 made by drawing lots.
		 
	B.	Each party shall present its case to the Arbiters within thirty (30)
			 days following the date of appointment of the Umpire. The Arbiters shall
			 consider this Agreement as an honorable engagement rather than merely as a
			 legal obligation and they are relieved of all judicial formalities and may
			 abstain from following the strict rules of law. The decision of the Arbiters
			 shall be final and binding on both parties; but failing to agree, they shall
			 call in the Umpire and the decision of the majority shall be final and binding
			 upon both parties. Judgment upon the final decision of the Arbiters may be
			 entered in any court of competent jurisdiction.
		 
	C.	Each party shall bear the expense of its own Arbiter, and shall
			 jointly and equally bear with the other the expense of the Umpire and of the
			 arbitration. In the event that the two Arbiters are chosen by one party, as
			 above provided, the expense of the Arbiters, the Umpire and the arbitration
			 shall be equally divided between the two parties.
		 
	D.	Any arbitration proceedings shall take place at a location mutually
			 agreed upon by the parties to this Agreement, but notwithstanding the location
			 of the arbitration, all proceedings pursuant hereto shall be governed by the
			 law of the state of New York.

	 
		ARTICLE 22 - GOVERNING LAW
	 

	 
		This Agreement shall
		be governed by and construed in accordance with the laws of the state of New
		York. 
	 

	 
		ARTICLE 23 – FEDERAL EXCISE TAX
	 

	 
		Payment of any
		Federal Excise Tax applicable to this Agreement shall be made by the Company to
		the taxing authorities and in no event shall there be any reduction in
		Reinsurance Premium on account of Federal Excise Tax that exceeds 1% of Net
		Ceded Written Premium. 
	 

	 
		ARTICLE 24 – SERVICE OF SUIT
	 

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

	 
		Page 14 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		Further, pursuant to
		any statute of any state, territory or district of the United States which
		makes provision therefor, the Reinsurer hereby designates the party named in
		its Interests and Liabilities Agreement for receipt of notice on behalf of the
		Reinsurer, or if no party is named therein, then the firm of Kerns, Pitrof,
		Frost & Pearlman, LLC, 70 West Madison Street, Suite 5350, Chicago,
		Illinois 60602, or if notice to it is undeliverable then the Superintendent,
		Commissioner or Director of Insurance or other officer specified for that
		purpose in the statute, or his successor or successors in office, as its true
		and lawful attorney upon whom may be served any lawful process in any action,
		suit or proceeding instituted by or on behalf of the Company or any beneficiary
		hereunder arising out of this Agreement.
	 

	 
		ARTICLE 25 – LETTER OF CREDIT
	 

	 
		As regards Policies
		issued by the Company coming within the scope of this Agreement, the Company
		agrees that when it shall file with the insurance regulatory authority or set
		up on its books reserves for unearned premium and losses and any other amounts
		covered hereunder which it shall be required by law to set up, it will forward
		to the Reinsurer a statement showing the proportion of such reserves which is
		applicable to the Reinsurer. The Reinsurer hereby agrees to fund such reserves
		in respect of unearned premium and losses and any other amounts covered
		hereunder that have been reported to the Reinsurer relating thereto as shown in
		the statement prepared by the Company (hereinafter referred to as
		“Reinsurer’s Obligations”) by Letter of Credit. 
	 

	 
		The Reinsurer agrees
		to apply for and secure timely delivery to the Company of a clean, irrevocable
		and unconditional Letter of Credit 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 proportion
		of said reserves. Such Letter of Credit 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 thirty (30) days (sixty
		(60) days where 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 Letter of
		Credit extended for any additional period.
	 

	 
		The Reinsurer and
		Company agree that the Letter of Credit provided by the Reinsurer pursuant to
		the provisions of this Agreement may be drawn upon at any time, notwithstanding
		any other provision of this Agreement, 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:
	 

	 	(a)	to
			 reimburse the Company for the Reinsurer’s Obligations, the payment of
			 which is due under the terms of this Agreement and which has not been otherwise
			 paid;
		 
	(b)	to
			 make refund of any sum which is in excess of the actual amount required to pay
			 the Reinsurer’s Obligations under this Agreement;

	 
		Page 15 of
		17
	 

	 

	 
	 

	 

	 	GREENLIGHT REINSURANCE,
			 LTD.
	 	 
	(c)	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;
		 
	(d)	to
			 pay the Reinsurer’s share of any other amounts the Company claims are due
			 under this Agreement.

	 
		In the event the
		amount drawn by the Company on any Letter of Credit is in excess of the actual
		amount required for (a) or (c), or in the case of (d), 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.
	 

	 
		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.
	 

	 
		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 Letter of Credit, in the following
		manner:
	 

	 	(a)	If
			 the statement shows that the Reinsurer’s Obligations exceed the balance of
			 credit as of the statement date, the Reinsurer shall, within thirty (30) days
			 after receipt of notice of such excess, secure delivery to the Company of an
			 amendment to the Letter of Credit increasing the amount of credit by the amount
			 of such difference.
		 
	(b)	If, however, the statement shows that the Reinsurer’s Obligations
			 are less than the balance of credit as of the statement date, the Company
			 shall, within thirty (30) days after receipt of written request from the
			 Reinsurer, release such excess credit by agreeing to secure an amendment to the
			 Letter of Credit reducing the amount of credit available by the amount of such
			 excess credit.

	 
		The Company is solely
		liable for the costs of the Letter of Credit. Such costs shall be paid to the
		Reinsurer by the Company promptly upon request and there shall be no reduction
		in Reinsurance Premium on account of such Letter of Credit costs.
	 

	 
		ARTICLE 26 – NO THIRD PARTY RIGHTS 
	 

	 
		This Agreement is
		solely between the Company and the Reinsurer, and in no instance shall any
		insured, claimant or other third party have any rights under this Agreement.
		
	 

	 
		ARTICLE 27 – CONSTRUCTION
	 

	 
		All terms, conditions
		and exclusions under this Agreement are to be construed in an evenhanded
		fashion as between the Company and Reinsurer without regard to authorship of
		the language. 
	 

	 
		Page 16 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		ARTICLE 28 – SEVERABILITY
	 

	 
		If any provisions of
		this Agreement 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 Agreement or the enforceability of such provision
		in any other state.
	 

	 
		Page 17 of 17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		IN WITNESS
		WHEREOF, the parties hereto by their respective duly authorized
		representatives have executed this Agreement, in duplicate, as of the dates
		under mentioned.
	 

	 
		Signed in Lake Mary,
		Florida, this 17 of January, 2007.
	 

	 
		FIRST PROTECTIVE
		INSURANCE COMPANY
	 

	 
		BY:   /s/ Leman
		Porter      
		                            
		                

	 

	 
		TITLE:
		   President  
		                                                         

	 

	 
		Signed in Grand
		Cayman, Grand Cayman Islands, this 17 of January, 2007.
	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		BY:   /s/ Brendan
		Barry       
		                            
		                 

	 

	 
		TITLE:   S.V.P.  
		                                                         
		        
	 

	 
		 Page 18 of
		17
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		NUCLEAR INCIDENT
		EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A.
	 

	 	I)	This Agreement does not cover any loss or liability accruing to the
			 Reinsured, directly or indirectly, and whether as Insurer or Reinsurer, from
			 any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or
			 Nuclear Energy risks.
		 
	2)	Without in any way restricting the operation of paragraph (1) of this
			 Clause, this Agreement does not cover any loss or liability accruing to the
			 Reinsured, directly or indirectly and whether as Insurer or Reinsurer, from any
			 Insurance against Physical Damage (including business interruption or
			 consequential loss arising out of such Physical Damage) to:
		 

	 		I.	Nuclear reactor power plants including all auxiliary property on the
			 site, or
			 
		II.	Any other nuclear reactor installation, including laboratories
			 handling radioactive materials in connection with reactor installations, and
			 “critical facilities” as such, or
			 
		III.	Installations for fabricating complete fuel elements or for processing
			 substantial quantities of “special nuclear material,” and for
			 reprocessing, salvaging, chemically separating, storing or disposing of
			 “spent” nuclear fuel or waste materials, or
			 
		IV.	Installations other than those listed in paragraph 2) III above using
			 substantial quantities of radioactive isotopes or other products of nuclear
			 fission.
			 

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

	 		a)	where the Reinsured does not have knowledge of such nuclear reactor
			 power plant or nuclear installation, or
			 
		b)	where said insurance contains a provision excluding coverage for
			 damage to property caused by or resulting from radioactive contamination,
			 however caused. However, on and after 1st, January 1960, this sub-paragraph b)
			 shall only apply provided the said radioactive contamination exclusion
			 provision has been approved by the Governmental Authority having jurisdiction
			 thereof,
			 

	 	4)	Without in any way restricting the operations of paragraphs 1), 2) and
			 3) hereof, this Agreement does not cover any loss or liability by radioactive
			 contamination accruing to the Reinsured, directly or indirectly, and whether as
			 Insurer or Reinsurer, when such radioactive contamination is a named hazard
			 specifically insured against
		 
	5)	It
			 is understood and agreed that this Clause shall not extend to risks using
			 radioactive isotopes in any form where the nuclear exposure is not considered
			 by the Reinsured to be the primary hazard.
		 
	6)	The term “special nuclear material” shall have the meaning
			 given it in the Atomic Energy Act of 1954, or by any law amendatory
			 thereof.

	 
		7)             Reinsured
		to be sole judge of what constitutes:
	 

	 
		                a)            
		substantial quantities, and
	 

	 
		                b)            the
		extent of installation, plant or site.
	 

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

	 		(a)	all policies issued by the Reassured on or before 31st December 1957
			 shall be free from the application of 

	 
		Page 1 of 2
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	the other provisions of this Clause until expiry date or 31st December
			 1960 whichever first occurs whereupon all the provisions of this Clause shall
			 apply,
		 

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

	 
		Page 2 of 2
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		NUCLEAR INCIDENT
		EXCLUSION CLAUSE - LIABILITY - REINSURANCE U.S.A.
 (Approved by Lloyd’s
		Underwriters’ Non-Marine Association)
	 

	 
		(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,
		 
	II.	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.

	 
		(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 coverage’s:
	 

	 	 	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 he 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, 

	 
		Page 1 of 3
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 	 	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.
		                                          to
		expenses incurred with respect
	 

	 	 	                to (bodily injury, sickness,
			 disease or death
		 

	 	 	      (bodily
			 injury                   resulting
			 from the hazardous properties of nuclear material and arising

	 
		                                   out
		of the operation of a nuclear facility by any person or organization.
	 

	 
		III.
		         Under any Liability
		Coverage to      (injury, sickness, disease,
		death or destruction
	 

	 	 	                (bodily injury or property damage
			 resulting from the hazardous properties of nuclear material, if
		 

	 		(a)	the nuclear material (1) is at any nuclear facility owned by, or
			 operated by or on behalf of, an insured or (2) has been discharged or dispersed
			 therefrom;
			 
		(b)	the nuclear material is contained in spent fuel or waste at any time
			 possessed, handled, used, processed, stored, transported or disposed of by or
			 on behalf of an insured; or
	 	(c)	the         (injury,
			 sickness, disease, death or destruction
(bodily injury or property
			 damages
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 threat.

	 	 	

	 
		IV.
		         As used in this
		endorsement:
	 

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

	 	 	(a)	any nuclear reactor,
		(h)	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 2.50 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” (“property damage” includes all forms of
			 radioactive contamination of property (includes all forms of radioactive
			 contamination of property.

	 
		V.
		           The inception
		dates and thereafter of all original policies affording coverage’s
		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,
	 

	 
		Page 2 of 3
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

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

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

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

	 
		Page 3 of 3
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		YEAR 2000
		EXCLUSION CLAUSE
 EDRC (B) - NMA 2801
		(15/12197)
	 

	 
		SECTION
		1
	 

	 
		This Agreement does
		not cover any loss, damage, cost, claim or expense, whether preventative,
		remedial or otherwise, directly or indirectly arising out of or
		relating:
	 

	 		a)	the calculation, comparison, differentiation, sequencing or processing
			 of data involving the date change to the year 2000, or any other date change,
			 including leap year calculations, by any computer system, hardware, programme
			 or software and/or any microchip, integrated circuit or similar device in
			 computer equipment or non-computer equipment, whether the property of the
			 insured or not; or
			 
		b)	any change, alteration or modification involving the date change to
			 the year 2000 or any other date change, including leap year calculations, to
			 any such computer system, hardware, programme or software or any microchip,
			 integrated circuit or similar device in computer equipment or non-computer
			 equipment, whether the property of the insured or not.

	 
		This clause applies
		regardless of any other cause or event that contributes concurrently or in any
		sequence to the loss, damage, cost, claim or expense.
	 

	 
		However, this section
		shall not apply in respect of physical damage occurring at the insured’s
		premises arising out of the perils of fire, lightning, explosion, aircraft or
		vehicle impact, falling objects, windstorm, hail, tornado, hurricane, cyclone,
		riot, civil commotion, vandalism, malicious mischief, earthquake, volcano,
		tsunami, freeze or weight of snow.
	 

	 
		SECTION
		2
	 

	 
		Notwithstanding
		Section 1, above, this Agreement does not cover any costs and expenses, whether
		preventative, remedial or otherwise, arising out of or relating to change,
		alteration or modification of any computer system, hardware, programme or
		software or any microchip, integrated circuit or similar devise in computer or
		non-computer equipment, whether the property of the insured or not.
	 

	 
		SECTION
		3
	 

	 
		The date change to
		the year 2000, or any other date change, including leap year calculations,
		shall not in and of itself be regarded as an event for the purposes of this
		Agreement.
	 

	 
		
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		Total Insured
		Value Exclusion Clause
	 

	 
		It is the mutual
		intention of the parties to exclude risks, other than Offices, Hotels,
		Apartments, Hospitals, Educational Establishments and Public Utilities (except
		Railroad Schedules), and Builders Risks on the above classes, where at the time
		of cession, the Total Insured Value over all interests exceeds $250,000,000.
		However, the Company shall be protected hereunder, subject to the other terms
		and conditions of this Agreement, if subsequent to cession being made, the
		Company becomes acquainted with the true facts of the case and discovers that
		the mutual intention has been inadvertently breached; on condition that the
		Company shall at the first opportunity, and certainly by next anniversary of
		the original policy, exclude the risk in question.
	 

	 
		It is agreed that
		this mutual intention does not apply to Contingent Business Interruption or to
		interests traditionally underwritten as Inland Marine or to Stock and/or
		Contents written on a blanket basis except where the Company is aware that the
		Total Insured Value of $250,000,000 is already exceeded for buildings,
		machinery, equipment and direct use and occupancy at the key location.
	 

	 
		It is understood and
		agreed that this Clause shall not apply hereunder where the Company writes 100%
		of the risk.
	 

	 
		
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		TERRORISM
		EXCLUSION
 (Property Treaty Reinsurance)
	 

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

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

	 
		(i)
		           involves
		violence against one or more persons; or
	 

	 
		(ii)          
		involves damage to property; or
	 

	 
		(iii)
		         endangers life other than
		that of the person committing the action; or
	 

	 
		(iv)
		         creates a risk to health
		or safety of the public or a section of the public; or
	 

	 
		(v)
		          is designed to
		interfere with or to disrupt an electronic system.
	 

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

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

	 
		NMA293Oc

		22/11/02

		Form approved by
		Lloyd’s Market Association [Non-Marine]
	 

	 
		
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		INTERESTS AND
		LIABILITIES CONTRACT
 (hereinafter referred to as the “Contract”)
 

		Between
	 

	 
		FIRST PROTECTIVE
		INSURANCE COMPANY
 Lake Mary, Florida
 (hereinafter referred to as the
		“Company”)
	 

	 
		and
	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
 (hereinafter referred to as the “Reinsurer”)
	 

	 
		in respect of
		the
	 

	 
		MULTIPLE LINE
		QUOTA SHARE REINSURANCE AGREEMENT
 (hereinafter referred to as the
		“Agreement”)
	 

	 
		IT IS AGREED that,
		effective 12:01 a.m., Eastern Standard Time, October 1, 2006, the
		REINSURER shall have a 100% share in the Interests and Liabilities of
		the Reinsurer as set forth in the above Agreement to which this Contract is
		attached. This Contract shall continue in force until terminated in accordance
		with the provisions contained in the above Agreement.
	 

	 
		The share of the
		REINSURER in the Interests and Liabilities of the Reinsurer under the
		above Agreement shall be several and not joint with the shares of any other
		reinsurer, and in no event shall the REINSURER participate in the
		Interests and Liabilities of any other reinsurer.
	 

	 
		IN WITNESS
		WHEREOF, the parties hereto by their respective duly authorized
		representatives have executed this Contract, in duplicate, as of the dates
		under mentioned.
	 

	 
		Signed in Lake Mary,
		Florida, this 17 of January, 2007.
	 

	 
		FIRST PROTECTIVE
		INSURANCE COMPANY
	 

	 
		BY:   /s/ Leman
		Porter      
		                            
		                

	 

	 
		TITLE:
		   President  
		                                                         

	 

	 
		Signed in Grand
		Cayman, Grand Cayman Islands, this 17 of January, 2007.
	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		BY:   /s/ Brendan
		Barry       
		                            
		                 

	 

	 
		TITLE:   S.V.P.  
		                                                         
		        
	 

	 
		
	 

	 

	 
	 

	 

	 
		GREENLIGHT
		REINSURANCE, LTD.
	 

	 
		                     APPENDIX
		B
	 

	 	
			 
				Remittances 45 days from
				Qtr
			 

		  	
			 
				January
			 

		  	
			 
				April
			 

		  	
			 
				July
			 

		  	
			 
				October
			 

		  	
			 
				January
			 

		  	
			 
				Total
			 

		  	 
	 	
	 
	
			 
				Gross
				Ceded
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				Reinsurance Cat
				Pre Earned
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				Net Ceded
				Written Premium
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				Commissions
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				Net
				Remitted
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				UEP
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	 
	
			 
				Total
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]
			 

		  	
			 
				[*]SUPPLEMENTAL INDENTURE TO BE DELIVERED
		
	 

	 
		BY GUARANTEEING SUBSIDIARIES
	 

	 
		Supplemental Indenture (this
		“Supplemental Indenture”), dated as of May 1, 2007, among L-3
		Communications Corporation (or its permitted successor), a Delaware corporation
		(the “Company”), each subsidiary of the Company signatory hereto
		(each, a “Guaranteeing Subsidiary”, and collectively, the
		“Guaranteeing Subsidiaries”), and The Bank of New York, as trustee
		under the indenture referred to below (the “Trustee”).
	 

	 
		W
		I T
		N E
		S S
		E T
		H
	 

	 
		WHEREAS, the Company has heretofore executed
		and delivered to the Trustee an indenture (the “Indenture”), dated as
		of June 28, 2002 providing for the issuance of an aggregate principal amount of
		up to $750,000,000 of 7 5/8% Senior Subordinated Notes due 2012 (the
		“Notes”);
	 

	 
		WHEREAS, the Indenture provides that under
		certain circumstances the Guaranteeing Subsidiaries shall execute and deliver
		to the Trustee a supplemental indenture pursuant to which the Guaranteeing
		Subsidiaries shall unconditionally guarantee all of the Company’s
		obligations under the Notes and the Indenture on the terms and conditions set
		forth herein (the “Subsidiary Guarantee”); and
	 

	 
		WHEREAS, pursuant to Section 9.01 of the
		Indenture, the Trustee is authorized to execute and deliver this Supplemental
		Indenture.
	 

	 
		NOW THEREFORE, in consideration of the
		foregoing and for other good and valuable consideration, the receipt of which
		is hereby acknowledged, the Guaranteeing Subsidiaries and the Trustee mutually
		covenant and agree for the equal and ratable benefit of the Holders of the
		Notes as follows:
	 

	 
		1. CAPITALIZED TERMS. Capitalized terms used
		herein without definition shall have the meanings assigned to them in the
		Indenture.
	 

	 
		2. AGREEMENT TO GUARANTEE. Each Guaranteeing
		Subsidiary hereby agrees as follows:
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Such Guaranteeing Subsidiary,
				  jointly and severally with all other current and future guarantors of the Notes
				  (collectively, the “Guarantors” and each, a “Guarantor”),
				  unconditionally guarantees to each Holder of a Note authenticated and delivered
				  by the Trustee and to the Trustee and its successors and assigns, regardless of
				  the validity and enforceability of the Indenture, the Notes or the Obligations
				  of the Company under the Indenture or the Notes, that:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the principal of, premium, interest
				  and Additional Amounts, if any, on the Notes will be promptly paid in full when
				  due, whether at maturity, by acceleration, redemption or otherwise, and
				  interest on the overdue principal of, premium, interest and Additional Amounts,
				  if any, on the Notes, to the extent lawful, and all other Obligations of the
				  Company to the Holders or the Trustee thereunder or under the Indenture will be
				  promptly paid in full, all in accordance with the terms thereof; and
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		1
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  in case of any extension of time for
				  payment or renewal of any Notes or any of such other Obligations, that the same
				  will be promptly paid in full when due in accordance with the terms of the
				  extension or renewal, whether at stated maturity, by acceleration or
				  otherwise.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Notwithstanding the foregoing, in
				  the event that this Subsidiary Guarantee would constitute or result in a
				  violation of any applicable fraudulent conveyance or similar law of any
				  relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this
				  Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the
				  maximum amount permissible under such fraudulent conveyance or similar
				  law.
				

			 

 

	 
		3. EXECUTION AND DELIVERY OF SUBSIDIARY
		GUARANTEES.
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  To evidence its Subsidiary Guarantee
				  set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby
				  agrees that a notation of such Subsidiary Guarantee substantially in the form
				  of Exhibit F to the Indenture shall be endorsed by an officer of such
				  Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee
				  after the date hereof.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Notwithstanding the foregoing, such
				  Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth
				  herein shall remain in full force and effect notwithstanding any failure to
				  endorse on each Note a notation of such Subsidiary Guarantee.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  If an Officer whose signature is on
				  this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that
				  office at the time the Trustee authenticates the Note on which a Subsidiary
				  Guarantee is endorsed, the Subsidiary Guarantee shall be valid
				  nevertheless.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  The delivery of any Note by the
				  Trustee, after the authentication thereof under the Indenture, shall constitute
				  due delivery of the Subsidiary Guarantee set forth in this Supplemental
				  Indenture on behalf of each Guaranteeing Subsidiary.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  Each Guaranteeing Subsidiary hereby
				  agrees that its obligations hereunder shall be unconditional, regardless of the
				  validity, regularity or enforceability of the Notes or the Indenture, the
				  absence of any action to enforce the same, any waiver or consent by any Holder
				  of the Notes with respect to any provisions hereof or thereof, the recovery of
				  any judgment against the Company, any action to enforce the same or any other
				  circumstance which might otherwise constitute a legal or equitable discharge or
				  defense of a guarantor.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  Each Guaranteeing Subsidiary hereby
				  waives diligence, presentment, demand of payment, filing of claims with a court
				  in the event of insolvency or bankruptcy of the Company, any right to require a
				  proceeding first against the Company, protest, notice and all demands
				  whatsoever and covenants that its Subsidiary Guarantee made pursuant 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		to this Supplemental Indenture will not be
		discharged except by complete performance of the Obligations contained in the
		Notes and the Indenture.
	 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  If any Holder or the Trustee is
				  required by any court or otherwise to return to the Company or any Guaranteeing
				  Subsidiary, or any custodian, Trustee, liquidator or other similar official
				  acting in relation to either the Company or such Guaranteeing Subsidiary, any
				  amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee
				  made pursuant to this Supplemental Indenture, to the extent theretofore
				  discharged, shall be reinstated in full force and effect.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  Each Guaranteeing Subsidiary agrees
				  that it shall not be entitled to any right of subrogation in relation to the
				  Holders in respect of any Obligations guaranteed hereby until payment in full
				  of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further
				  agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the
				  Holders and the Trustee, on the other hand:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  the maturity of the Obligations
				  guaranteed hereby may be accelerated as provided in Article 6 of the Indenture
				  for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental
				  Indenture, notwithstanding any stay, injunction or other prohibition preventing
				  such acceleration in respect of the obligations guaranteed hereby; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  in the event of any declaration of
				  acceleration of such obligations as provided in Article 6 of the Indenture,
				  such obligations (whether or not due and payable) shall forthwith become due
				  and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary
				  Guarantee made pursuant to this Supplemental Indenture.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  Each Guaranteeing Subsidiary shall
				  have the right to seek contribution from any other non-paying Guaranteeing
				  Subsidiary so long as the exercise of such right does not impair the rights of
				  the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this
				  Supplemental Indenture.
				

			 

 

	 
			
				
				   
				

			 	
				
				  4. GUARANTEEING SUBSIDIARY MAY
				  CONSOLIDATE, ETC. ON CERTAIN TERMS.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Except as set forth in Articles 4
				  and 5 of the Indenture, nothing contained in the Indenture, this Supplemental
				  Indenture or in the Notes shall prevent any consolidation or merger of any
				  Guaranteeing Subsidiary with or into the Company or any other Guarantor or
				  shall prevent any transfer, sale or conveyance of the property of any
				  Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the
				  Company or any other Guarantor.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Except as set forth in Article 4 of
				  the Indenture, nothing contained in the Indenture, this Supplemental Indenture
				  or in the Notes shall prevent any consolidation or merger of any Guaranteeing
				  Subsidiary with or into a 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		corporation or corporations other than the
		Company or any other Guarantor (in each case, whether or not affiliated with
		the Guaranteeing Subsidiary), or successive consolidations or mergers in which
		a Guaranteeing Subsidiary or its successor or successors shall be a party or
		parties, or shall prevent any sale or conveyance of the property of any
		Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a
		corporation other than the Company or any other Guarantor (in each case,
		whether or not affiliated with the Guaranteeing Subsidiary) authorized to
		acquire and operate the same; provided, however, that each Guaranteeing
		Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon
		any such consolidation, merger, sale or conveyance, the due and punctual
		performance and observance of all of the covenants and conditions of the
		Indenture and this Supplemental Indenture to be performed by such Guaranteeing
		Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing
		Subsidiary is not the surviving corporation in the merger), by supplemental
		indenture satisfactory in form to the Trustee, executed and delivered to the
		Trustee, by the corporation formed by such consolidation, or into which such
		Guaranteeing Subsidiary shall have been merged, or by the corporation which
		shall have acquired such property and (ii) immediately after giving effect to
		such consolidation, merger, sale or conveyance no Default or Event of Default
		exists.
	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  In case of any such consolidation,
				  merger, sale or conveyance and upon the assumption by the successor
				  corporation, by supplemental indenture, executed and delivered to the Trustee
				  and satisfactory in form to the Trustee, of the Subsidiary Guarantee made
				  pursuant to this Supplemental Indenture and the due and punctual performance of
				  all of the covenants and conditions of the Indenture and this Supplemental
				  Indenture to be performed by such Guaranteeing Subsidiary, such successor
				  corporation shall succeed to and be substituted for such Guaranteeing
				  Subsidiary with the same effect as if it had been named herein as the
				  Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be
				  signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes
				  issuable under the Indenture which theretofore shall not have been signed by
				  the Company and delivered to the Trustee. All the Subsidiary Guarantees so
				  issued shall in all respects have the same legal rank and benefit under the
				  Indenture and this Supplemental Indenture as the Subsidiary Guarantees
				  theretofore and thereafter issued in accordance with the terms of the Indenture
				  and this Supplemental Indenture as though all of such Subsidiary Guarantees had
				  been issued at the date of the execution hereof.
				

			 

 

	 
		5. RELEASES.
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Concurrently with any sale of assets
				  (including, if applicable, all of the Capital Stock of a Guaranteeing
				  Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold
				  thereby shall be released; provided that in the event of an Asset Sale, the Net
				  Proceeds from such sale or other disposition 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		are treated in accordance with the
		provisions of Section 4.10 of the Indenture. If the assets sold in such sale or
		other disposition include all or substantially all of the assets of a
		Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing
		Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other
		disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the
		Person acquiring the property (in the event of a sale or other disposition of
		all or substantially all of the assets of such Guaranteeing Subsidiary) shall
		be released from and relieved of its Obligations under this Supplemental
		Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in
		the event of an Asset Sale, the Net Proceeds from such sale or other
		disposition are treated in accordance with the provisions of Section 4.10 of
		the Indenture. Upon delivery by the Company to the Trustee of an Officers’
		Certificate to the effect that such sale or other disposition was made by the
		Company or the Guaranteeing Subsidiary, as the case may be, in accordance with
		the provisions of the Indenture and this Supplemental Indenture, including
		without limitation, Section 4.10 of the Indenture, the Trustee shall execute
		any documents reasonably required in order to evidence the release of the
		Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture
		and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing
		Subsidiary is not released from its obligations under its Subsidiary Guarantee,
		it shall remain liable for the full amount of principal of and interest on the
		Notes and for the other obligations of such Guaranteeing Subsidiary under the
		Indenture as provided in this Supplemental Indenture.
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Upon the designation of a
				  Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the
				  terms of the Indenture, such Guaranteeing Subsidiary shall be released and
				  relieved of its obligations under its Subsidiary Guarantee and this
				  Supplemental Indenture. Upon delivery by the Company to the Trustee of an
				  Officers’ Certificate and an Opinion of Counsel to the effect that such
				  designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was
				  made by the Company in accordance with the provisions of the Indenture,
				  including without limitation Section 4.07 of the Indenture, the Trustee shall
				  execute any documents reasonably required in order to evidence the release of
				  such Guaranteeing Subsidiary from its obligations under its Subsidiary
				  Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under
				  its Subsidiary Guarantee shall remain liable for the full amount of principal
				  of and interest on the Notes and for the other Obligations of any Guaranteeing
				  Subsidiary under the Indenture as provided herein.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Each Guaranteeing Subsidiary shall
				  be released and relieved of its obligations under this Supplemental Indenture
				  in accordance with, and subject to, Section 4.18 of the Indenture.
				

			 

 

	 
		6. NO RECOURSE AGAINST OTHERS. No past,
		present or future director, officer, employee, incorporator, stockholder or
		agent of any Guaranteeing Subsidiary, as such, shall have any liability for any
		obligations of the Company or any Guaranteeing Subsidiary under the Notes, any
		Subsidiary Guarantees, the Indenture or this Supplemental Indenture or for any
		claim based on, in respect of, or by reason of, such obligations or their
		creation. Each Holder of the Notes by accepting a Note waives and releases all
		such liability. The waiver and release are part of the consideration for
		issuance of 
	 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		the Notes. Such waiver may not be effective
		to waive liabilities under the federal securities laws and it is the view of
		the SEC that such a waiver is against public policy.
	 

	 
		7. SUBORDINATION OF SUBSIDIARY GUARANTEES;
		ANTI-LAYERING. No Guaranteeing Subsidiary shall incur, create, issue, assume,
		guarantee or otherwise become liable for any Indebtedness that is subordinate
		or junior in right of payment to any Senior Debt of a Guaranteeing Subsidiary
		and senior in any respect in right of payment to any of the Subsidiary
		Guarantees. Notwithstanding the foregoing sentence, the Subsidiary Guarantee of
		each Guaranteeing Subsidiary shall be subordinated to the prior payment in full
		of all Senior Debt of that Guaranteeing Subsidiary (in the same manner and to
		the same extent that the Notes are subordinated to Senior Debt), which shall
		include all guarantees of Senior Debt.
	 

	 
		8. THIS SUPPLEMENTAL INDENTURE SHALL BE
		GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
		YORK.
	 

	 
		9. COUNTERPARTS. The parties may sign any
		number of copies of this Supplemental Indenture. Each signed copy shall be an
		original, but all of them together represent the same agreement.
	 

	 
		10. EFFECT OF HEADINGS. The Section headings
		herein are for convenience only and shall not affect the construction
		hereof.
	 

	 
		11. THE TRUSTEE. The Trustee shall not be
		responsible in any manner whatsoever for or in respect of the validity or
		sufficiency of this Supplemental Indenture or for or in respect of the recitals
		contained herein, all of which recitals are made solely by the Guaranteeing
		Subsidiaries and the Company.
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the parties hereto have
		caused this Supplemental Indenture to be duly executed, all as of the date
		first above written.
	 

	 
		 
	 

	 
			
				
				  Dated: May 1, 2007
				

			 	
				
				   
				

			 	
				
				  L-3 COMMUNICATIONS
				  CORPORATION
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Senior Vice
				  President
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Dated: May 1, 2007
	 

	 
		Apcom, Inc., a Maryland corporation
	 

	 
		Broadcast Sports Inc., a Delaware
		corporation
	 

	 
		D.P. Associates, Inc., a Virginia
		corporation
	 

	 
		Electrodynamics, Inc., an Arizona
		corporation
	 

	 
		gForce Technologies, Inc., a Massachusetts
		corporation
	 

	 
		Henschel Inc., a Delaware corporation
	 

	 
		Hygienetics Environmental Services, Inc., a
		Delaware corporation
	 

	 
		Interstate Electronics Corporation, a
		California corporation
	 

	 
		KDI Precision Products, Inc., a Delaware
		corporation
	 

	 
		LinCom Wireless, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Advanced Laser Systems
		Technology, Inc., a Florida corporation
	 

	 
		L-3 Communications Aeromet, Inc., an Oregon
		corporation
	 

	 
		L-3 Communications AIS GP Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Applied Signal and Image
		Technology, Inc., a Maryland corporation
	 

	 
		L-3 Communications Avionics Systems, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Avisys Corporation, a
		Texas corporation
	 

	 
		L-3 Communications Aydin Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications CE Holdings, Inc., a
		Delaware corporation 
	 

	 
		L-3 Communications Cincinnati Electronics,
		Inc., an Ohio corporation
	 

	 
		L-3 Communications Crestview Aerospace
		Corporation, a Delaware corporation
	 

	 
		L-3 Communications CSI, Inc., a California
		corporation
	 

	 
		L-3 Communications CyTerra Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Dynamic Positioning and
		Control Systems, Inc., a California corporation
	 

	 
		L-3 Communications Electron Technologies,
		Inc., a Delaware corporation
	 

	 
		L-3 Communications EO/IR, Inc., a Florida
		corporation
	 

	 
		L-3 Communications EOTech, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications ESSCO, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Foreign Holdings, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Geneva Aerospace, Inc., a
		Texas corporation
	 

	 
		L-3 Communications Government Services,
		Inc., a Virginia corporation
	 

	 
		L-3 Communications ILEX Systems, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications InfraredVision Technology
		Corporation, a California corporation
	 

	 
		L-3 Communications Investments Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Klein Associates, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications MAS (US) Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications MariPro, Inc., a
		California corporation
	 

	 
		L-3 Communications Mobile-Vision, Inc., a
		New Jersey corporation 
	 

	 
		L-3 Communications Nautronix Holdings, Inc.,
		a Delaware corporation
	 

	 
		L-3 Communications Nova Engineering, Inc.,
		an Ohio corporation
	 

	 
		L-3 Communications SafeView, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Security and Detection
		Systems, Inc., a Delaware corporation
	 

	 
		L-3 Communications Sonoma EO, Inc., a
		California corporation
	 

	 
		L-3 Communications SSG-Tinsley, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications TCS, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Tinsley Laboratories,
		Inc., a California corporation
	 

	 
		L-3 Communications Titan Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Westwood Corporation, a
		Nevada corporation
	 

	 
		MCTI Acquisition Corporation, a Maryland
		Corporation
	 

	 
		Microdyne Communications Technologies
		Incorporated, a Maryland corporation
	 

	 
		Microdyne Corporation, a Maryland
		corporation
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Microdyne Outsourcing Incorporated, a
		Maryland corporation
	 

	 
		MPRI, Inc., a Delaware corporation
	 

	 
		Pac Ord Inc., a Delaware corporation
	 

	 
		Power Paragon, Inc., a Delaware
		corporation
	 

	 
		SPD Electrical Systems, Inc., a Delaware
		corporation
	 

	 
		SPD Switchgear Inc., a Delaware
		corporation
	 

	 
		SYColeman Corporation, a Florida
		corporation
	 

	 
		Titan Facilities, Inc., a Virginia
		corporation
	 

	 
		Troll Technology Corporation, a California
		corporation
	 

	 
		Wescam Air Ops Inc., a Delaware
		corporation
	 

	 
		Wescam Holdings (US) Inc., a Delaware
		corporation
	 

	 
		Wolf Coach, Inc., a Massachusetts
		corporation
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  As Guaranteeing Subsidiaries
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Vice President and
				  Secretary
				

			 

 

	 
		L-3 Communications Integrated Systems L.P.,
		a Delaware limited partnership
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		L-3 Communications Flight Capital LLC, a
		Delaware limited liability company
	 

	 
		L-3 Communications Flight International
		Aviation LLC, a Delaware limited liability company
	 

	 
		L-3 Communications Vector International
		Aviation LLC, a Delaware limited liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS VERTEX
				  AEROSPACE LLC, as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS INTEGRATED
				  SYSTEMS L.P., as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		L-3 Communications Vertex Aerospace LLC, a
		Delaware limited liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS INTEGRATED
				  SYSTEMS L.P., as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		Wescam Air Ops LLC, a Delaware limited
		liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS EO/IR, INC.,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		Wescam LLC, a Delaware limited liability
		company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS CORPORATION,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Senior Vice President
				

			 

 

	 
		 
	 

	 
		L-3 Communications Germany Holdings, LLC, a
		Delaware limited liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS CORPORATION,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Senior Vice
				  President
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  Dated: May 1, 2007
				

			 	
				
				   
				

			 	
				
				  THE BANK OF NEW YORK,

				  as Trustee
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title: Assistant Vice President
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		NOTATION ON SENIOR SUBORDINATED NOTE
		RELATING TO SUBSIDIARY GUARANTEE
	 

	 
		Pursuant to the Supplemental Indenture (the
		“Supplemental
		Indenture”) dated as of May 1,
		2007 among L-3 Communications Corporation, a Delaware
		corporation, the Guarantors party thereto (each a “Guarantor”
		and collectively the “Guarantors”) and The Bank of New York, as trustee (the
		“Trustee”), each Guarantor (i) has jointly
		and severally unconditionally guaranteed (a) the due and punctual payment of
		the principal of, and premium, interest and Additional Amounts on the Notes,
		whether at maturity or an interest payment date, by acceleration, call for
		redemption or otherwise, (b) the due and punctual payment of interest on the
		overdue principal and premium of, and interest and Additional Amounts on the
		Notes, and (c) in case of any extension of time of payment or renewal of any
		Notes or any of such other Obligations, the same will be promptly paid in full
		when due in accordance with the terms of the extension or renewal, whether at
		stated maturity, by acceleration or otherwise and (ii) has agreed to pay any
		and all costs and expenses (including reasonable attorneys’ fees) incurred
		by the Trustee or any Holder in enforcing any rights under the Subsidiary
		Guarantee (as defined in the Supplemental Indenture).
	 

	 
		Notwithstanding the foregoing, in the event
		that the Subsidiary Guarantee of any Guarantor would constitute or result in a
		violation of any applicable fraudulent conveyance or similar law of any
		relevant jurisdiction, the liability of such Guarantor under its Subsidiary
		Guarantee shall be reduced to the maximum amount permissible under such
		fraudulent conveyance or similar law.
	 

	 
		No past, present or future director,
		officer, employee, agent, incorporator, stockholder or agent of any Guarantor,
		as such, shall have any liability for any Obligations of the Company or any
		Guarantor under the Notes, any Subsidiary Guarantee, the Indenture, any
		supplemental indenture delivered pursuant to the Indenture by such Guarantor,
		or for any claim based on, in respect of or by reason of such Obligations or
		their creation. Each Holder by accepting a Note waives and releases all such
		liability.
	 

	 
		The Subsidiary Guarantee shall be binding
		upon each Guarantor and its successors and assigns and shall inure to the
		benefit of the successors and assigns of the Trustee and the Holders and, in
		the event of any transfer or assignment of rights by any Holder or the Trustee,
		the rights and privileges herein conferred upon that party shall automatically
		extend to and be vested in such transferee or assignee, all subject to the
		terms and conditions hereof.
	 

	 
		The Subsidiary Guarantee shall not be valid
		or obligatory for any purpose until the certificate of authentication on the
		Note upon which the Subsidiary Guarantee is noted has been executed by the
		Trustee under the Indenture by the manual signature of one of its authorized
		officers. Capitalized terms used herein have the meaning assigned to them in
		the Indenture, dated as of June 28, 2002, among L-3 Communications Corporation,
		the Guarantors party thereto and the Trustee.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Dated: May 1, 2007
				

			 

 

	 
		Apcom, Inc., a Maryland corporation
	 

	 
		Broadcast Sports Inc., a Delaware
		corporation
	 

	 
		D.P. Associates, Inc., a Virginia
		corporation
	 

	 
		Electrodynamics, Inc., an Arizona
		corporation
	 

	 
		gForce Technologies, Inc., a Massachusetts
		corporation
	 

	 
		Henschel Inc., a Delaware corporation
	 

	 
		Hygienetics Environmental Services, Inc., a
		Delaware corporation
	 

	 
		Interstate Electronics Corporation, a
		California corporation
	 

	 
		KDI Precision Products, Inc., a Delaware
		corporation
	 

	 
		LinCom Wireless, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Advanced Laser Systems
		Technology, Inc., a Florida corporation
	 

	 
		L-3 Communications Aeromet, Inc., an Oregon
		corporation
	 

	 
		L-3 Communications AIS GP Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Applied Signal and Image
		Technology, Inc., a Maryland corporation
	 

	 
		L-3 Communications Avionics Systems, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Avisys Corporation, a
		Texas corporation
	 

	 
		L-3 Communications Aydin Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications CE Holdings, Inc., a
		Delaware corporation 
	 

	 
		L-3 Communications Cincinnati Electronics,
		Inc., an Ohio corporation
	 

	 
		L-3 Communications Crestview Aerospace
		Corporation, a Delaware corporation
	 

	 
		L-3 Communications CSI, Inc., a California
		corporation
	 

	 
		L-3 Communications CyTerra Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Dynamic Positioning and
		Control Systems, Inc., a California corporation
	 

	 
		L-3 Communications Electron Technologies,
		Inc., a Delaware corporation
	 

	 
		L-3 Communications EO/IR, Inc., a Florida
		corporation
	 

	 
		L-3 Communications EOTech, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications ESSCO, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Foreign Holdings, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Geneva Aerospace, Inc., a
		Texas corporation
	 

	 
		L-3 Communications Government Services,
		Inc., a Virginia corporation
	 

	 
		L-3 Communications ILEX Systems, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications InfraredVision Technology
		Corporation, a California corporation
	 

	 
		L-3 Communications Investments Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Klein Associates, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications MAS (US) Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications MariPro, Inc., a
		California corporation
	 

	 
		L-3 Communications Mobile-Vision, Inc., a
		New Jersey corporation 
	 

	 
		L-3 Communications Nautronix Holdings, Inc.,
		a Delaware corporation
	 

	 
		L-3 Communications Nova Engineering, Inc.,
		an Ohio corporation
	 

	 
		L-3 Communications SafeView, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications Security and Detection
		Systems, Inc., a Delaware corporation
	 

	 
		L-3 Communications Sonoma EO, Inc., a
		California corporation
	 

	 
		L-3 Communications SSG-Tinsley, Inc., a
		Delaware corporation
	 

	 
		L-3 Communications TCS, Inc., a Delaware
		corporation
	 

	 
		L-3 Communications Tinsley Laboratories,
		Inc., a California corporation
	 

	 
		L-3 Communications Titan Corporation, a
		Delaware corporation
	 

	 
		L-3 Communications Westwood Corporation, a
		Nevada corporation
	 

	 
		MCTI Acquisition Corporation, a Maryland
		Corporation
	 

	 
		Microdyne Communications Technologies
		Incorporated, a Maryland corporation
	 

	 
		Microdyne Corporation, a Maryland
		corporation
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Microdyne Outsourcing Incorporated, a
		Maryland corporation
	 

	 
		MPRI, Inc., a Delaware corporation
	 

	 
		Pac Ord Inc., a Delaware corporation
	 

	 
		Power Paragon, Inc., a Delaware
		corporation
	 

	 
		SPD Electrical Systems, Inc., a Delaware
		corporation
	 

	 
		SPD Switchgear Inc., a Delaware
		corporation
	 

	 
		SYColeman Corporation, a Florida
		corporation
	 

	 
		Titan Facilities, Inc., a Virginia
		corporation
	 

	 
		Troll Technology Corporation, a California
		corporation
	 

	 
		Wescam Air Ops Inc., a Delaware
		corporation
	 

	 
		Wescam Holdings (US) Inc., a Delaware
		corporation
	 

	 
		Wolf Coach, Inc., a Massachusetts
		corporation
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  As Guaranteeing Subsidiaries
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		L-3 Communications Integrated Systems L.P.,
		a Delaware limited partnership
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		L-3 Communications Flight Capital LLC, a
		Delaware limited liability company
	 

	 
		L-3 Communications Flight International
		Aviation LLC, a Delaware limited liability company
	 

	 
		L-3 Communications Vector International
		Aviation LLC, a Delaware limited liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS VERTEX
				  AEROSPACE LLC, as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS INTEGRATED
				  SYSTEMS L.P., as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		L-3 Communications Vertex Aerospace LLC, a
		Delaware limited liability company
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS INTEGRATED
				  SYSTEMS L.P., as Sole Member
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS AIS GP
				  CORPORATION, as General Partner
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		Wescam Air Ops LLC, a Delaware limited
		liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS EO/IR, INC.,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Vice President and
				  Secretary
				

			 

 

	 
		 
	 

	 
		Wescam LLC, a Delaware limited liability
		company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS CORPORATION,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C. Cambria
				  
 Title: Senior Vice President
				

			 

 

	 
		 
	 

	 
		L-3 Communications Germany Holdings, LLC, a
		Delaware limited liability company
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  By: L-3 COMMUNICATIONS CORPORATION,
				  as Sole Member
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By: 
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Christopher C.
				  Cambria
 Title: Senior Vice
				  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]