Document:

REPUBLIC FINANCIAL SERVICES, INC. DEFERRED COMPENSATION PLAN

 Exhibit 10.8 
  
 REPUBLIC FINANCIAL SERVICES, INC. 
  
 DEFERRED COMPENSATION PLAN 

  
 TABLE OF CONTENTS

  

					
	ARTICLE I	  	PURPOSE OF THE PLAN	  	1
			
	ARTICLE II	  	DEFINITIONS AND CONSTRUCTION	  	1
			
	 2.1
	  	Definitions	  	1
	 2.2
	  	Construction	  	3
			
	ARTICLE III	  	ADMINISTRATION	  	4
			
	 3.1
	  	Appointment of Committee	  	4
	 3.2
	  	Duties of Committee	  	4
	 3.3
	  	Fiduciary Status	  	4
	 3.4
	  	Indemnification of Committee	  	4
			
	ARTICLE IV	  	ELIGIBILITY	  	5
			
	ARTICLE V	  	CONTRIBUTIONS	  	5
			
	 5.1
	  	Participant Deferrals; Deferral Election	  	5
	 5.2
	  	Company Matching Contributions	  	6
	 5.3
	  	Company Profit Sharing Contributions	  	6
	 5.4
	  	Company Discretionary Contributions	  	7
			
	ARTICLE VI	  	ACCOUNTS AND ADJUSTMENTS TO ACCOUNTS	  	7
			
	 6.1
	  	Accounts	  	7
	 6.2
	  	Adjustments to Accounts	  	7
			
	ARTICLE VII	  	DISTRIBUTION OF PLAN BENEFITS	  	8
			
	 7.1
	  	General	  	8
	 7.2
	  	Distribution Upon Retirement, Disability, or Other Separation from Service	  	8
	 7.3
	  	Distribution Upon Death	  	9
	 7.4
	  	Hardship Distribution	  	9
	 7.5
	  	Variance by Board	  	9

  

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	 ARTICLE VIII
	  	CLAIMS PROCEDURES	  	10
			
	 8.1
	  	Claims Procedure	  	10
	 8.2
	  	Unclaimed Benefits; Incapacity of Participant or Beneficiary	  	11
			
	ARTICLE IX	  	TAXES AND EXPENSES	  	11
			
	 9.1
	  	Taxes	  	11
	 9.2
	  	Expenses	  	11
			
	ARTICLE X	  	TERMINATION OR AMENDMENT OF PLAN	  	12
			
	 10.1
	  	Termination of Plan	  	12
	 10.2
	  	Amendment of Plan	  	12
	 10.3
	  	Preservation of Benefits	  	12
			
	ARTICLE XI	  	NATURE OF PLAN; NO FUNDING REQUIRED; ESTABLISHMENT OF TRUST	  	12
			
	 11.1
	  	Nature of the Plan	  	12
	 11.2
	  	No Funding Required; Establishment of Trust	  	12
			
	ARTICLE XII	  	MISCELLANEOUS	  	13
			
	 12.1
	  	No Guarantee of Employment	  	13
	 12.2
	  	Non-Assignability	  	13
	 12.3
	  	Effect on Other Benefits	  	13
	 12.4
	  	Disclaimer of Liability	  	13
	 12.5
	  	Successors	  	13
	 12.6
	  	Severability	  	13
	 12.7
	  	Governing Law	  	14
	 12.8
	  	Effective Date	  	14

  

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 REPUBLIC FINANCIAL
SERVICES, INC. 
  
 DEFERRED COMPENSATION PLAN

  
 ARTICLE I 
 PURPOSE OF THE PLAN 
  
 The purposes of the Republic Financial Services, Inc. Deferred Compensation Plan are: (1) to provide a means for certain employees whose elective
deferrals under the Republic Financial Services, Inc. Profit Sharing or Savings Plan are limited under the Internal Revenue Code to defer a portion of base salary and/or incentive compensation for retirement or other needs; (2) to restore employer
matching contributions which are not contributed under the Republic Financial Services, Inc. Profit Sharing or Savings Plan to eligible employees because of certain limitations under the Internal Revenue Code; and (3) to restore defined contribution
benefits which are not contributed for eligible employees under the Republic Financial Services, Inc. Profit Sharing or Savings Plan because of certain limitations under the Internal Revenue Code. 
  
 ARTICLE II 
 DEFINITIONS AND CONSTRUCTION 
  
 2.1 Definitions: As used herein, the following words and phrases have the following respective meanings, unless the context clearly indicates otherwise: 
  
 (a) Account means the memorandum account reflected on
the books and records of each Employer to record Participant Deferrals made pursuant to Section 5.1, Company Matching Contributions made pursuant to Section 5.2, Company Profit Sharing Contributions made pursuant to Section 5.3, Company
Discretionary Contributions made pursuant to Section 5.4, and investment gains and losses thereon as determined under Section 6.2. 
  
 (b) Base Salary for a Plan Year means that amount, determined on the first day of the Plan Year, due and payable to the Participant
in that Plan Year which for purposes of this Plan is designated by the Employer as the Participant’s base pay on the Employer’s personnel records, including any such amounts otherwise due and payable with respect to which the Deferral
Election hereunder applies, and without regard to the limitation on compensation taken into account under the Profit Sharing or Savings Plan under Internal Revenue Code Sections 401(a)(17), 402(g), 415, and 416. 
  
 (c) Beneficiary means the person or persons
designated by the Participant on a beneficiary designation form under the Profit Sharing or Savings Plan to receive benefits under the Profit Sharing or Savings Plan and this Plan if the Participant dies. 
  

 If the Participant does not designate a Beneficiary, or if the designated Beneficiary predeceases the
Participant, the Beneficiary shall be in order of preference: (i) the Participant’s surviving spouse; (ii) the Participant’s surviving descendants, per stirpes; (iii) the Participant’s surviving parents; (iv) the Participant’s
surviving brothers and sisters; and (iv) the Participant’s estate. 
  
 (d) Change of Control means the acquisition of fifty percent (50%) or more of the outstanding “shares” (as hereinafter defined) of the Company as a result of any tender or exchange offer, other than
one made by the Company or by a corporation or other entity that is owned or controlled by Winterthur Swiss Insurance Company. As used in this Section, a “share” shall mean and refer to a share of the Company’s present Common Stock,
par value $5.00 per share, and any share or shares of capital stock or other securities of the Company hereafter issued or issuable upon, in respect of or in substitution or in exchange for each present share. 
  
 (e) Company means Republic Financial Services, Inc.,
a Texas corporation, or its successor or successors. 
  
 (f) Deferral Election means an election to defer made by a Participant pursuant to the provisions of Section 5.1. 
  
 (g) Disability shall have the meaning set forth in the Profit Sharing or Savings Plan. If a Participant is determined to have a
Disability, as defined under the Profit Sharing or Savings Plan, he or she shall be considered to have a Disability under this Plan. 
  
 (h) Eligible Employee means any individual on the payroll of an Employer (i) whose wages from the Employer are subject to
withholding for Federal income tax and FICA purposes; (ii) who is included within a “select group of management or highly compensated employees,” within the meaning of ERISA; and (iii) who is designated by the Plan Committee as eligible to
participate in the Plan. 
  
 (i) Employer
means (i) the Company and (ii) any subsidiary or other affiliate of the Company which has adopted the Plan pursuant to a written resolution of the Board of Directors of such subsidiary or affiliate evidencing such adoption with the approval of the
Board of Directors of the Company. 
  
 (j)
ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 (k) Incentive Compensation for a Plan Year means cash bonuses or other similar cash incentive award, if any, due and payable to a
Participant by an Employer with respect to services performed by the Participant during the Plan Year, including any such bonuses or other amounts otherwise due and payable with respect to which the Deferral Election hereunder applies. 

 

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 (l) Internal Revenue Code means the Internal Revenue Code of 1986, as amended from
time to time. 
  
 (m) Participant means an
Eligible Employee who is participating in the Plan. 
  
 (n) Plan means the Republic Financial Services, Inc. Deferred Compensation Plan, as set forth herein and as amended from time to time. 
  
 (o) Plan Committee means the committee designated pursuant to Section 3.1 hereof to administer the Plan. 
  
 (p) Plan Year means the twelve-month period beginning
on January 1 and ending on December 31 of each calendar year. 
  
 (q) Profit Sharing or Savings Plan means the Profit Sharing Plan for Employees of Republic Financial Services, Inc. and Certain Affiliates (As Restated Effective January 1, 1993), as amended from time to time.

  
 (r) Profit Sharing or Savings Plan
Compensation for a Plan Year means an Eligible Employee’s Compensation, as that term is defined in the Profit Sharing or Savings Plan, without regard to limitation on compensation taken into account under the Profit Sharing or Savings Plan
pursuant to Code Section 401(a)(17), as indexed for cost-of-living adjustments thereunder; provided, however, that Profit Sharing or Savings Plan Compensation, as used hereunder, shall be adjusted to include amounts specifically excluded from the
definition of Compensation under the Profit Sharing or Savings Plan. 
  
 (s) Retirement means the occurrence of that event on and after which the Participant is entitled to payment of retirement benefits pursuant to the terms of the Profit Sharing or Savings Plan. 
  
 (t) Separation from Service means termination of
employment from an Employer by reason of Retirement, Disability, discharge, resignation, or death. 
  
 2.2 Construction: As used herein, the masculine shall include the feminine, the singular shall include the plural, and vice versa, unless the
context clearly indicates otherwise. Titles and headings herein are for convenience only and shall not be considered in construing the Plan. The words “hereof,” “herein,” “hereunder” and other similar compounds of the
word “here” shall mean and refer to the entire Plan and not to any particular provision or Section. 
  

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 ARTICLE III 
 ADMINISTRATION 
  
 3.1
Appointment of Committee: The Plan shall be administered by the Plan Committee consisting of at least three persons appointed by the Board of Directors of the Company. Except as otherwise provided below, the Plan Committee shall be considered
the “plan administrator” for purposes of ERISA. 
  
 3.2
Duties of Committee: The Plan Committee has the authority and discretion to select those employees who are eligible to participate in the Plan. The Plan Committee further has the authority and discretion to construe and interpret the Plan. As
part of this authority, the Plan Committee has the discretion to resolve inconsistencies or ambiguities in the language of the Plan, to supply omissions from or correct deficiencies in the language of the Plan, and to adopt rules for the
administration of the Plan which are not inconsistent with the terms of the Plan. The Plan Committee also has the authority and discretion to resolve all questions relating to any claim for benefits under the Plan. The Plan Committee’s
determination shall be final and binding on all parties. The Plan Committee also may employ such persons or appoint such agents to assist it in the performance of its duties hereunder as it may deem appropriate. If a member of the Plan Committee is
a Participant hereunder, such Committee member is precluded from participation in any decision directly related to his or her benefits under the Plan. 
  
 3.3 Fiduciary Status: Each person considered to be a fiduciary with respect to the Plan shall have only those powers and responsibilities
specifically given that person under this Plan. It is intended that each person shall be responsible for the proper exercise of his or her own powers and responsibilities, and shall not be responsible for any act or failure to act of any other
person considered to be a fiduciary or any act or failure to act of any person considered to be a non-fiduciary. 
  
 3.4 Indemnification of Committee: The Employers shall indemnify each member of the Plan Committee against any liability or loss sustained by the
member by reason of any act or failure to act relating to the Plan in his or her capacity as such a member, if the act or failure to act does not constitute gross negligence or willful or intentional misconduct Indemnification shall include
attorneys’ fees and other costs and expenses reasonably incurred by such member in defense of any action brought against the member by reason of any such act or failure to act. 
  

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 ARTICLE IV 
 ELIGIBILITY 
  
 Any
employee designated by the Plan Committee as an Eligible Employee, as defined in Section 2.1(h) hereof, is eligible to participate in the Plan on the date of such designation. 
  
 ARTICLE V 
 CONTRIBUTIONS 
  
 5.1 Participant Deferrals;
Deferral Election 
  
 (a) Each Plan Year, an Eligible Employee
may elect to defer (i) any whole percentage between 1 percent and 50 percent of the Participant’s Base Salary for such Plan Year, or a specified dollar amount, up to 50 percent of the Participant’s Base Salary, and (ii) any whole
percentage between 1 percent and 100 percent of Incentive Compensation, or a specified dollar amount, up to 100 percent of the Participant’s Incentive Compensation, for such Plan Year. The deferred amounts are referred to hereunder collectively
as Participant Deferrals or separately as, respectively, Participant Base Salary Deferrals and Participant Incentive Compensation Deferrals. The Deferral Election shall be made by completing and delivering to the Plan Committee a form approved by
the Committee for this purpose and containing the terms and conditions as deemed appropriate by the Plan Committee. 
  
 (b) A separate Deferral Election for the Participant’s Base Salary and Incentive Compensation shall be made for each Plan Year. The Deferral Election
for a Plan Year must be received by the Plan Committee at the time determined by the Plan Committee but, in any event, no later than December 31 of the preceding Plan Year (or, in the case of the first Plan Year, no later than 30 days following the
effective date of the Plan). If an employee becomes an Eligible Employee during the Plan Year, the Deferral Election for the remainder of the Plan Year must be received by the Plan Committee no later than 30 days following the date on which the
employee became an Eligible Employee and shall apply to Base Salary and/or Incentive Compensation attributable to services performed after the date of the Deferral Election. 
  
 (c) A Participant may not amend or change a Deferral Election during a Plan Year. A Participant may terminate a Deferral
Election at any time during the Plan Year but that Participant will not be permitted to make another Deferral Election for that Plan Year. 
  
 (d) A Deferral Election terminates (i) if the Participant Separates from Service with an Employer, if the Plan is terminated, or upon a Change of Control,
in any case, before the date that payment of Base Salary and/or Incentive Compensation would have been made if not deferred, or (ii) if the amount of Base Salary and/or Incentive Compensation available for deferral, after applicable withholding
taxes, is less than the minimum deferral amount (1%) required. 
  

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 (e) Participants shall be fully vested in Participant Deferrals allocated to their Accounts at all times.

  
 5.2 Company Matching Contributions 
  
 (a) For any Plan Year in which an Employer makes matching contributions to
the Profit Sharing or Savings Plan, the Employer shall make a Company Matching Contribution to this Plan for a Participant equal to the sum of (1) plus (2), where- 
  

	 	(1)	is the product of (i) the Participant’s Base Salary Deferrals under this Plan, limited to an amount determined by multiplying the maximum percentage of compensation eligible
for matching contributions under the Profit Sharing or Savings Plan (as applied to Base Salary only in this Plan) in excess of the amount determined under Internal Revenue Code Section 401(a)(17), times (ii) the matching contribution percentage rate
determined under the Profit Sharing or Savings Plan; and 

  

	 	(2)	is the product of (i) the Participant’s Incentive Compensation Deferrals under this Plan, limited to the maximum percentage of compensation (as applied to Incentive
Compensation only in this Plan) eligible for matching contributions under the Profit Sharing or Savings Plan times (ii) the matching contribution percentage rate determined under the Profit Sharing or Savings Plan. 

  
 (b) Participants shall be vested in Company Matching Contributions allocated
to their Accounts to the extent that they are vested under the Profit Sharing or Savings Plan; provided, however, that Participants shall become fully vested in Company Matching Contributions allocated to their Accounts immediately upon termination
of employment resulting from a Change of Control. 
  
 5.3
Company Profit Sharing Contributions 
  
 (a) For any Plan
Year in which an Employer makes a discretionary profit sharing contribution to the Profit Sharing or Savings Plan, the Employer shall make a Company Profit Sharing Contribution to this Plan for a Participant equal to: (i) the discretionary profit
sharing contribution that would have been made to the Profit Sharing or Savings Plan for the Participant without regard to the limitations under Code Sections 401(a)(17), 415, and 416, and without regard to the reduction in Profit Sharing
Compensation on account of salary deferrals made under Code Section 125, less (ii) the discretionary profit sharing contribution actually contributed to the Profit Sharing or Savings Plan for the Plan Year for the Participant and allocated to the
Participant’s account thereunder. The Company Profit Sharing Contributions shall be credited to a Participant’s Account as set forth in Section 6.2. 
  

(b) Participants shall be vested in Company Profit Sharing Contributions allocated to their Accounts to the extent that they are vested under the
Profit Sharing or Savings Plan; provided, however, that Participants shall become fully vested in Company 

  

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Profit Sharing Contributions allocated to their Accounts immediately upon termination of employment resulting from a Change of Control. 
  
 5.4 Company Discretionary Contributions 
  
 (a) For each Plan Year, an Employer shall contribute such additional Company
Discretionary Contributions to the Plan for each Participant as its Board of Directors shall from time to time authorize in its sole discretion. The Company Discretionary Contributions shall be credited to a Participant’s Account as set forth
in Section 6.2. 
  
 (b) Participants shall be vested in Company
Discretionary Contributions allocated to their Accounts to the extent that they are vested under the Profit Sharing or Savings Plan; provided however, that Participants shall become fully vested in Company Discretionary Contributions allocated to
their Accounts immediately upon termination of employment resulting from a Change of Control. 
  
 ARTICLE VI 
 ACCOUNTS AND ADJUSTMENTS TO ACCOUNTS 
  
 6.1 Accounts: There shall be established on each Employer’s books
and records an Account for each Participant hereunder. All Participant Deferrals, Company Matching Contributions, Company Profit Sharing Contributions, Company Discretionary Contributions, and investment gains and losses thereon, shall be credited
to the Participant’s Account. The Employer shall furnish annually to each Participant (or, in the case of a deceased Participant, to the Participant’s Beneficiary) a statement of the amounts credited to the Participant’s Account.

  
 6.2 Adjustments to Accounts 
  
 (a) Participant Deferrals, Company Matching Contributions, Company Profit
Sharing Contributions and Company Discretionary Contributions: All Participant Deferrals for a Plan Year made pursuant to a Deferral Election under Section 5.1 shall be credited to the Participant’s Account when elective deferrals under the
Profit Sharing or Savings Plan are paid to the Profit Sharing or Savings Plan. All Company Matching Contributions, if any, made under Section 5.2 and Company Profit Sharing Contributions, if any, for the Plan Year made under Section 5.3 shall be
credited to the Participant’s Account when contributions are made to the Profit Sharing or Savings Plan. All Company Discretionary Contributions, if any, for the Plan Year made under Section 5.4 shall be credited to the Participant’s
Account as soon as administratively feasible. 
  
 (b)
Participant Investment Selection: A Participant may specify, in accordance with procedures prescribed by the Plan Committee, the extent to which his or her existing Account balance and future contributions to such Account will be deemed
invested in certain investment media selected from time to time by the Plan Committee. Investment selections shall be solely for purposes of crediting earnings or losses to Participant Accounts and may not reflect the actual investment of accounts.
The Employers may consider the Participant’s investment selections but shall not, in any way, be bound to 

  

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actually invest the Participant’s Account in accordance with the selections. In the case of a Participant receiving installment payments under Article
VII hereof, the Participant may make investment selections under this Section until his or her Account is paid in full. 
  
 If a Participant fails to provide investment selections, the Participant’s Account will be deemed invested in the investment fund consisting of a
money market fund designated as having the least investment risk. If a Beneficiary is entitled to receive a distribution of a Participant’s Account, the Account shall be deemed to remain invested in accordance with the Participant’s
investment selections in effect prior to death until paid in full to the Beneficiary. 
  
 (c) Earnings and Losses: The Employers shall credit each Participant’s Account with earnings or losses on a daily basis according to the hypothetical investment selections made by the Participant, as
follows: 
  

	 	(1)	The earnings or losses attributable to each investment fund offered under the Plan first will be determined as if Accounts were actually invested in the fund.

  

	 	(2)	The earnings or losses of each investment fund determined under the preceding paragraph then will be allocated to Participants who had unpaid balances in their Accounts invested, on
a hypothetical basis, in the investment fund in proportion to the balances in the Accounts invested in such fund, subject to such adjustments as the Plan Committee may deem necessary to address administrative concerns. 

  
 In the case of a Participant receiving installment payments under Article VII hereof, the
Participant’s Account will continue to receive allocations of earnings or losses in accordance with this Section until his or her Account is paid in full. 
  

ARTICLE VII 
 DISTRIBUTION OF PLAN
BENEFITS 
  
 7.1 General: Any benefits payable under
the Plan shall be based on the balance of the Participant’s Account. Except as otherwise provided in this Article, Plan benefits shall be payable upon a Participant’s Retirement, Disability, death, or other Separation from Service with an
Employer. 
  
 7.2 Distribution Upon Retirement, Disability, or
Other Separation from Service: Except as otherwise provided in the Plan, a Participant’s benefits shall be payable on account of Retirement in fifteen substantially equal annual installments commencing within sixty days following the end of
the Plan Year in which Retirement occurs. 
  
 Except as otherwise
provided in the Plan, a Participant’s benefits shall be payable on account of Disability or Other Separation from Service in a lump sum payment within 

  

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sixty days following the date of Separation from Service on account of Disability or for other reasons. 
  
 Notwithstanding the foregoing provisions, a Participant may elect, at
commencement of participation, to have Plan benefits paid on account of Retirement, Disability, or other Separation from Service in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to fifteen years,
commencing within sixty days following the end of the Plan Year in which Retirement occurs or 60 days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable. 
  
 7.3 Distribution Upon Death: If a Participant dies, whether or not the
Participant has received Plan benefits, the Participant’s Beneficiary shall receive the balance in the Participant’s Account payable in a lump sum payment as soon as administratively feasible, but no later than sixty days, following
receipt by the Plan Committee of a death certificate or other satisfactory proof of the Participant’s death. 
  
 7.4 Hardship Distribution: Upon the request of a Participant (or, in the case of a deceased Participant, the Participant’s Beneficiary) and
with the approval of the Plan Committee, except as provided in this Section, the Employers shall pay to the Participant (or Beneficiary, as applicable) all or any portion of the balance in the Participant’s Account. Approval may be given only
if, taking into account all of the facts and circumstances, continued deferral or adherence to the Plan’s payment schedule would result in financial hardship to the Participant (or Beneficiary, as applicable) arising from an unforeseen event or
emergency beyond the control of the Participant (or Beneficiary, as the case may be). 
  
 The distribution shall be limited to the amount necessary to satisfy the financial hardship (including any applicable federal, state, or local taxes attributable to the distribution), shall be made in the form of a
lump sum payment, and shall reduce the balance of the Participant’s Account. The Participant (or Beneficiary, as applicable) shall resume the regular payment schedule following distribution of the hardship payment. The determination of the
existence of a financial hardship and the approval of the request for a distribution based on the hardship shall be made by the Plan Committee, whose decision with respect thereto shall be final and binding on all parties. 
  
 7.5 Variance by Board: Notwithstanding anything in this Article VII to
the contrary, the Board of Directors of the Company shall have the right in its sole discretion to vary the manner and time of making any installment distributions described in this Article VII and may make such distributions in lump sums or over a
shorter or longer period of time than 15 years as it may deem appropriate. 
  

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 ARTICLE VIII 
 CLAIMS PROCEDURES 
  
 8.1
Claims Procedure: If a Participant does not receive the benefits which the Participant believes are provided under the Plan, the Participant may file a claim for benefits with the Plan Committee. All claims will be made in writing and will be
signed by the client. If the claimant does not furnish sufficient information to determine the validity of the claim, the Plan Committee will indicate to the claimant any additional information which is required. 
  
 Each claim will be approved or disapproved by the Plan Committee within
ninety days following receipt of the information necessary to process the claim, unless special circumstances require an extension of time of up to ninety (90) days for processing the claim. The claimant will be notified of the extension within the
initial ninety (90)-day period. If the Plan Committee denies a claim for benefits in whole or in part, the Plan Committee will notify the claimant in writing of the denial of the claim. The notice also will set forth, in a manner calculated to be
understood by the claimant, the specific reasons for the denial, the specific Plan provisions on which the denial is based, a description of any additional material or information necessary to perfect the claim with an explanation of why the
material or information is necessary, and an explanation of the Plan’s claim review procedure as set forth in the following paragraph. If no action is taken by the Plan Committee on a claim within ninety (90) days, the claim will be deemed to
be denied for purposes of the review procedure. 
  
 A claimant may
appeal a denial of a claim by requesting a review of the decision by the Plan Committee. An appeal must be submitted in writing within sixty (60) days after the denial and must (i) request a review of the claim for benefits under the Plan, (ii) set
forth all of the grounds upon which the claimant’s request for review is based and any facts in support thereof, and (iii) set forth any issues or comments which the claimant deems pertinent to the appeal. The Plan Committee will make a full
and fair review of each appeal and any written materials submitted in connection with the appeal. The Plan Committee will act upon each appeal within sixty (60) days after receipt thereof, unless special circumstances require an extension of time of
up to sixty (60) days for processing. The claimant will be notified of the extension within the initial sixty (60)-day period. The claimant will be given the opportunity to review pertinent documents or materials upon submission of a written request
to the Plan Committee, provided the Plan Committee finds the requested documents or materials pertinent to the appeal. On the basis of its review, the Plan Committee will make an independent determination of the claimant’s eligibility for
benefits under the Plan. The decision of the Plan Committee on any claim for benefits will be final and conclusive upon all parties thereto. If the Plan Committee denies an appeal in whole or in part, the Plan Committee will give written notice of
the decision to the claimant. If no action is taken by the Plan Committee on the appeal within sixty (60) days, the claim will be deemed to be denied. 
  

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 8.2 Unclaimed Benefits; Incapacity of Participant or Beneficiary: During any time in which Plan
benefits are payable to a Participant or Beneficiary and remain unclaimed, the Plan Committee may, in its discretion, mail a notice to such Participant Of Beneficiary at the last known address by registered or certified mail requesting a current
address and any other information deemed appropriate by the Plan Committee. If the information is not provided to the Plan Committee within twelve months from the mailing of the demand, then the Plan Committee may, in its sale discretion, declare
the Plan benefits or any unpaid portion of the Plan benefits suspended, and the assets of the Trust, if any, shall be used to pay other Plan benefits. Plan benefits are subject to restoration if the lost Participant or Beneficiary later files a
claim for the benefit. 
  
 If the Plan Committee is presented with
documentation, including (but not limited to) a power of attorney or court order which determines that a Participant or Beneficiary to whom a payment is due under the Plan is physically, mentally, or legally incompetent and unable to tend to his or
her affairs, any payment due under the Plan may, at the discretion of the Plan Committee, be paid to the Participant’s or Beneficiary’s spouse, child, parent, brother or sister, or to any other person having custody or care, or
responsibility for the support, of the Participant or Beneficiary. Any such payment shall be a complete discharge of the obligations of the Employers under the Plan. 
  
 ARTICLE IX 
 TAXES AND EXPENSES 
  
 9.1 Taxes: Any taxes
imposed on Plan benefits shall be the sole responsibility of the Participant or Beneficiary. The Employers shall deduct from Plan benefits any federal taxes (including, without limitation, Social Security and Medicare taxes), state taxes, local
taxes, or other taxes required to be withheld. The Employers are authorized (i) to withhold any federal taxes (including, without limitation, Social Security and Medicare taxes), state taxes, local taxes, or other taxes required to be withheld with
respect to Plan benefits from other sources of compensation payable to the Participant or Beneficiary by the Employers, or (ii) to require the Participant or Beneficiary to pay the taxes to the Employers by personal check or otherwise for deposit
with the appropriate taxing authority. 
  
 9.2 Expenses:
All or any portion of Plan administration expenses incurred by the Employers or the Plan Committee shall be paid by the Employers or, at the discretion of the Plan Committee, charged against the Accounts of Participants in such manner as the Plan
Committee shall determine; provided, however, that such expenses shall reduce only Company Matching Contributions, Company Profit Sharing Contributions, Company Discretionary Contributions, and investment gains, but not Participant Deferrals, to be
credited to Participant Accounts under Section 5.1 hereof. 
  

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 ARTICLE X 
 TERMINATION OR AMENDMENT OF PLAN 
  
 10.1 Termination of Plan: The Board of Directors of the Company may terminate or discontinue the Plan at any time. If the Commissioner of Internal Revenue, upon the Company’s request for initial approval of this Plan, declines
to issue a favorable ruling on the Plan, this Plan shall automatically terminate at that time. This Plan is expressly conditioned on the continued deferral of income tax on amounts deferred by a Participant under the Plan until such amounts are
actually distributed to the Participant. If, as a result of a change in the tax laws or applicable income tax regulations, amounts deferred by Participants under the Plan become subject to income tax prior to the actual distribution of such amounts,
the Plan and each Deferral Election hereunder shall automatically terminate as of the effective date of the change in the law. 
  
 10.2 Amendment of Plan: The Board of Directors of the Company may amend the Plan at any time and from time to time, without prior notice to any
Participant or Beneficiary. 
  
 10.3 Preservation of
Benefits: Once benefits hereunder to a Participant or Beneficiary have commenced or accrued, no termination or amendment of the Plan may affect materially or adversely the right of the Participant or Beneficiary to the benefits without that
person’s written consent. 
  
 ARTICLE XI 
 NATURE OF PLAN; NO FUNDING REQUIRED; 
 ESTABLISHMENT OF TRUST 
  
 11.1 Nature of the
Plan: The Plan is intended to be a “pension plan,” as defined in ERISA, and is maintained by the Employers on an unfunded basis primarily for the purpose of providing supplementary pension benefits to a select group of management or
highly compensated employees. As such, the Plan is intended to be construed not to provide income to any Participant or Beneficiary under the Internal Revenue Code prior to actual receipt of benefit payments under the Plan. To the extent that this
Plan provides benefits in excess of limitations under Code Section 415, the Plan is intended to be an “excess benefit plan,” within the meaning of ERISA. 
  
 11.2 No Funding Required; Establishment of Trust: Plan benefits shall be payable solely from the general assets of
the Company and each respective Employer. The Company and each respective Employer shall not be required to, but may at their discretion, segregate or physically set aside any funds or assets attributable to Plan benefits. Notwithstanding the
preceding sentence, the Company and the Employers intend to establish an irrevocable trust (the “Trust”), commonly referred to as a “rabbi trust,” for accumulating and holding funds or assets of the Company and each respective
Employer to be used solely for the purpose of paying Plan benefits. No Participant or Beneficiary shall be deemed to have, pursuant to the Plan, any legal or equitable interest 

  

 - 12 - 

 
in any specific assets of the Company or the respective Employer or in the assets of the Trust, and no Participant or Beneficiary shall have any preference
or priority over the rights of any general unsecured creditor of the Company or the respective Employer. The funds and assets of the Trust shall remain subject to the claims of creditors of the Company or each respective Employer in the event of
insolvency of any such entity. 
  
 ARTICLE XII 

MISCELLANEOUS 
  
 12.1 No Guarantee of Employment: Neither participation in the Plan nor any action taken under the Plan shall confer upon a Participant any right to
continue in the employ of an Employer or affect the right of the Employer to terminate the Participant’s employment at any time. 
  
 12.2 Non-Assignability: Unless otherwise required by law, and prior to distribution to a Participant or Beneficiary, Plan benefits shall not be
subject to assignment, transfer, sale, pledge, encumbrance, alienation, or charge by the Participant or Beneficiary, and any attempt to do so shall be void. Plan benefits shall not be liable for or subject to garnishment, attachment, execution, or
levy, or liable for or subject to the debts, contracts, or liabilities of the Participant or Beneficiary; provided, however, that the Employers may offset from the payment of any Plan benefits to a Participant or Beneficiary amounts owed by the
Participant to an Employer. 
  
 12.3 Effect on Other
Benefits: Participation in the Plan shall not reduce any welfare or retirement benefits offered by the Employers, except that neither the amounts deferred under the Plan nor any Plan benefits shall be considered “Compensation” for
purposes of the Profit Sharing or Savings Plan or the Pension Plan for Employees of Republic Financial Services, Inc. and Certain Affiliates (As Restated Effective January 1, 1994), as amended from time to time. 
  
 12.4 Disclaimer of Liability: To the extent not made under the Trust,
the Company and each respective Employer shall be solely responsible for the payment of Plan benefits hereunder. The members of the Plan Committee, and the officers, directors, employees, or agents of the Company or any other Employer, shall not be
liable for the benefits. Unless otherwise required by law, no person shall be liable for any action or failure to act, except where such act or omission constitutes gross negligence or willful or intentional misconduct. 
  
 12.5 Successors: The Plan and any Deferral Election shall be binding
on (i) the Company and its successors and assigns, (ii) any Employer and its successors- and assigns, (iii) each Participant, (iv) each Beneficiary, and (v) the heirs, distributees, and legal representatives of each Participant and Beneficiary.

  
 12.6 Severability: If any provision of the Plan shall
be held invalid or unenforceable, the invalidity or unenforceability shall apply only to that provision, and shall not affect or render invalid or unenforceable any other provision of the Plan. The 

  

 - 13 - 

 
Plan shall be administered and construed as if the invalid or unenforceable provision were not contained herein. If the application of any Plan provision to
any Participant or Beneficiary shall be held invalid or unenforceable, the application of the provision to any other Participant or Beneficiary shall not in any manner be affected thereby. 
  
 12.7 Governing Law: Except to the extent that the Plan may be subject
to the provisions of ERISA, the Plan shall be construed and enforced according to the laws of the State of Texas without giving effect to the conflict of laws principles thereof. 
  
 12.8 Effective Date: The effective date of the Plan shall be July 1, 1995. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  

 - 14 - 

  
 Joined by REPUBLIC INSURANCE COMPANY as a
participating Employer, effective July 1, 1995. 
  

			
	REPUBLIC INSURANCE COMPANY
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  
 Joined by BLUE RIDGE INSURANCE COMPANY
as a participating Employer, effective July 1, 1995. 
  

			
	BLUE RIDGE INSURANCE COMPANY
		
	By:	 	/s/    PETER CHRISTEN        
	 Title:
	 	President & CEO

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  
 Joined by WINTERTHUR LIFE RE INSURANCE
COMPANY as a participating Employer, effective July 1, 1995. 
  

			
	WINTERTHUR LIFE RE INSURANCE COMPANY
		
	By:	 	/s/    GORDON JARDIN        
	 Title:
	 	President

  

	
	 ATTEST:

	
	/s/    FOY WALLACE        

  

 - 15 - 

  
 AMENDMENT NO. 1

 TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic Financial Services, Inc. (the “Company”) previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and

  
 WHEREAS, the Company now wishes to amend the Plan in certain
respects pursuant to the authority retained in Section 10.2; 
  
 NOW, THEREFORE, the Company hereby amends the Plan as follows: 
  

	 	1.	Section 7.2 of the Plan is hereby amended to be and to read as follows: 

  
 “7.2 Distribution Upon Retirement, Disability, or Other Separation from Service: Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Retirement in fifteen substantially equal annual installments commencing within thirty days following the end of the Plan Year in which Retirement occurs. 
  
 Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Disability or Other Separation from Service in a lump sum payment within thirty days following the date of Separation from Service on account of Disability or for other reasons. 

 
 Notwithstanding the foregoing provisions, a Participant
may elect, at commencement of participation, to have Plan benefits paid on account of Retirement, Disability, or other Separation from Service in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to
fifteen years, commencing within thirty days following the end of the Plan Year in which Retirement occurs or thirty days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable.”

  

	 	2.	Section 7.3 of the Plan is hereby amended to be and to read as follows: 

  
 “7.3 Distribution Upon Death: If a Participant dies, whether or not the Participant has received Plan benefits, the
Participant’s Beneficiary shall receive the balance in the Participant’s Account payable in a lump sum payment as soon as administratively feasible, but no later than 

  

 
thirty days, following receipt by the Plan Committee of a death certificate or other satisfactory proof of the Participant’s death.” 
  

	 	3.	Section 7.5 of the Plan is hereby deleted in its entirety. 

  

	 	4.	Section 12.2 of the Plan is hereby amended to be and read as follows: 

  
 “12.2 Non-Assignability: Unless otherwise required by law, and prior to distribution to a Participant or Beneficiary, Plan
benefits shall not be subject to assignment, transfer, sale, pledge, encumbrance, alienation, or charge by the Participant or Beneficiary, and any attempt to do so shall be void. Plan benefits shall not be liable for or subject to garnishment,
attachment, execution or levy, or liable for or subject to the debts, contracts, or liabilities of the Participant or Beneficiary.” 
  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 1 to the Republic Financial Services, Inc. Deferred Compensation Plan to be executed in its
name and on its behalf this 21 day of August, 1996, to be effective as of July 1, 1995. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	ATTEST:
	
	/s/    FOY WALLACE        

  

 - 2 - 

  
 AMENDMENT NO. 2 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic
Financial Services, Inc. (the “Company”) previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, the Company now wishes to amend the Plan pursuant to the authority
retained in Section 10.2 to cease participation in and contribution to the Plan by Blue Ridge Insurance Company pursuant to its withdrawal as a participating Employer in the Plan; 
  
 NOW, THEREFORE, the Company hereby amends the Plan effective July 1, 1996, as follows: 
  
 Section 2.1(h) of the Plan is hereby amended to be and to read as follows:

  
 “EMPLOYER means (i) the Company
and (ii) any subsidiary or other affiliate of the Company which has adopted the Plan pursuant to a written resolution of the Board of Directors of such subsidiary or affiliate evidencing such adoption with the approval of the Board of Directors of
the Company. Effective July 1, 1996, Blue Ridge Insurance Company, a subsidiary of the Company, shall cease to be a participating Employer in this Plan.” 
  

IN WITNESS WHEREOF, the Company has caused this Amendment No. 2 to the Republic Financial Services, Inc. Deferred Compensation Plan to be executed in
its name and on its behalf this 21 day of August, 1996, to be effective July 1, 1996. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

  
 AMENDMENT NO. 3 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Republic
Financial Services, Inc. (the “Company”) has previously adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, pursuant to the provisions of Section 10.2 of the Plan, the Company
desires to amend the Plan in certain particulars as hereinafter provided; 
  
 NOW, THEREFORE, the Company hereby amends Section 7.2 of the Plan effective April 28, 1998, as follows: 
  
 “7.2 Distribution Upon Retirement, Disability, or Other Separation from Service: Except as otherwise provided in the Plan, a
Participant’s benefits shall be payable on account of Retirement commencing within thirty (30) days following the end of the Plan Year in which Retirement occurs, in either (i) a lump sum or (ii) substantially equal annual installments over a
period of two to fifteen years. A Participant must elect the form of payment no later than twelve (12) months preceding the date of his termination of employment by reason of Retirement. If the Participant fails to make such an election, his
benefits will be distributed in a lump sum. 
  
 A
Participant’s benefits shall be payable on account of Disability or other Separation from Service in a lump sum payment within thirty (30) days following the date of Separation from Service on account of Disability or for other reasons provided
that, if the Participant so elects no later than twelve (12) months preceding his date of Separation from Service, such benefits shall be paid in either: (i) a lump sum payment; or (ii) substantially equal installments over a period of two to
fifteen years, commencing within thirty (30) days following the date of Separation from Service on account of Disability or for other reasons, whichever is applicable.” 
  

 IN WITNESS WHEREOF, the Company has caused this Amendment No. 3 to the Republic Financial Services, Inc.
Deferred Compensation Plan to be executed in its name and on its behalf this 28 day of April, 1998, effective as of April 28, 1998. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	Officer

  

	
	ATTEST:
	
	/s/    FOY WALLACE        

  

 - 2 - 

  
 AMENDMENT NO. 4 TO

 REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Company with the authority to amend the Plan from time to time, the Company
desires to amend the Plan in certain respects as set forth herein; 
  
 NOW,
THEREFORE, the Company hereby amends the Plan as follows: 
  

	 	1.	In accordance with the provisions of Section 2.1(i) of the Plan, Winterthur Investment Management Corporation (“WIMC”) has adopted the Plan as a Participating Employer
effective January 1, 1999. Accordingly, to the extent necessary to evidence and effect such adoption and participation, the Plan is hereby amended to add WIMC as a Participating Employer effective as of January 1, 1999. 

  

	 	2.	In accordance with the relevant provisions of the Plan, Wintherthur Life Re Insurance Company has ceased its participation in the Plan effective as December 23, 1998. Accordingly,
to the extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude Winterthur Life Re Insurance Company as a Participating Employer effective as of December 23, 1998. 

  

	 	3.	Except as expressly amended hereby, the Plan shall remain unchanged and in full force and effect. 

  

	 	4.	Unless otherwise defined herein, each capitalized term used herein shall have the meaning given to it in the Plan. 

  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 4 to be executed on this 27 day
of April, 1999. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO

  

	
	 Attest:

	
	/s/    FOY WALLACE        

  

  
 AMENDMENT NO. 5 TO

 REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”), for the benefit of its eligible employees; and 
  
 WHEREAS, the Company now wishes to amend the Plan pursuant to the authority retained in
Section 9.2 to discontinue participation in, and contributions to, the Plan by Republic Insurance Company pursuant to its withdrawal as a participating Employer under the Plan; 
  
 NOW, THEREFORE, the Company amends the Plan effective August 1, 2000, as follows: 
  

	 	1.	In accordance with the relevant provisions of the Plan, Republic Insurance Company shall cease its participation in the Plan effective as of August 1, 2000. Accordingly, to the
extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude Republic Insurance Company as a participating Employer effective as of August 1, 2000. 

  
 IN WITNESS WHEREOF, the Company has executed this Amendment No. 5 to be effective as of
August 1, 2000. 
  

			
	 REPUBLIC FINANCIAL SERVICES, INC.

		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	CEO & President

  

	
	 Attest:

	
	/s/    LARRY WESTERFIELD        

  

  
 AMENDMENT No. 6 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (the “Company”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”); and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Board with the authority to amend the Plan from time to time, the Board
desires to amend the Plan in certain respects as set forth herein. 
  
 NOW,
THEREFORE, the Board hereby amends the Plan effective July 15, 2003, as follows: 
  
 In accordance with the relevant provisions of the Plan, Winterthur Investment Management Corporation (“WIMCO”) shall cease its participation in the Plan effective as of July 15, 2003. Accordingly, to the
extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude WIMCO as a participating Employer effective as of July 15, 2003. 
  
 IN WITNESS WHEREOF, the Company has caused this Amendment No. 6 to the Republic Financial Services, Inc. Deferred Compensation Plan to be
executed in its name and on its behalf the 29th day of August, 2003, to be effective July 15, 2003. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

  
 AMENDMENT No. 7 

TO THE REPUBLIC FINANCIAL SERVICES, INC. 
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, REPUBLIC FINANCIAL SERVICES,
INC., a Texas corporation (“RFSI”), has heretofore adopted the Republic Financial Services, Inc. Deferred Compensation Plan (the “Plan”); and 
  
 WHERAS, Republic Underwriters Insurance Company (“RUIC”) is a wholly-owned subsidiary of Republic Financial Services, Inc., a
Nevada corporation (“RFSI—Nevada”), which is a wholly-owned subsidiary of RFSI; and 
  
 WHEREAS, RUIC is a participating employer in the Plan; and 
  
 WHEREAS, RFSI anticipates entering into a transaction pursuant to which all of the common stock of RUIC will be sold to RTXA Sub, Inc., an unrelated entity, to be effective on or about August 29, 2003, but in all
events at a time and date specified in that certain Stock Purchase Agreement by and between RFSI, RFSI-Nevada, Winterthur U.S. Holdings, Inc., RTXA, Inc. and RTXA Sub, Inc. (“Effective Time”); and 
  
 WHEREAS, pursuant to Section 10.2 of the Plan which provides the Board of Directors of RFSI
with the authority to amend the Plan from time to time, the Board desires to amend the Plan in certain respects as set forth herein. 
  
 NOW, THEREFORE, the Plan is hereby amended as follows, effective immediately prior to the Effective Time, or as otherwise stated herein: 
  

	1.	In accordance with the relevant provisions of the Plan, Republic Financial Services, Inc. (“RFSI”) shall cease its participation in the Plan effective immediately prior to
the Effective Time. Accordingly, to the extent necessary to evidence and effect such cessation of participation, the Plan is hereby amended to exclude RFSI as a participating Employer effective immediately prior to the Effective Time.

  

	2.	Section 2.1(e) of the Plan is hereby amended to be and read as follows: 

  

	 	(e)	Company means Republic Underwriters Insurance Company, a Texas corporation, or its successor or successors. 

  

	3.	Section 2.1(n) of the Plan is hereby amended to be and read as follows: 

  

	 	(n)	Plan means the Republic Underwriters Insurance Company Deferred Compensation Plan, as set forth herein and as amended from time to time. 

  

 IN WITNESS WHEREOF, RFSI has caused this Amendment No. 7 to the Republic Financial Services, Inc. Deferred Compensation
Plan to be executed in its name and on its behalf the 29th day of August, 2003, to be effective immediately prior to
the Effective Time, as defined herein, or as otherwise stated herein. 
  

			
	REPUBLIC FINANCIAL SERVICES, INC.
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 Title:
	 	President

  

	
	ATTEST:
	
	/s/    MICHAEL E. DITTO        

  

 Approved by Republic Underwriters Insurance Company, a participating employer in the Plan. 
  

			
	REPUBLIC UNDERWRITERS INSURANCE COMPANY
		
	By:	 	/s/    MARTIN B.
CUMMINGS        
	 Title:
	 	Vice President

  

	
	ATTEST:
	
	/s/    GINA BOONEEXCESS OF LOSS REINSURANCE AGREEMENT

 Exhibit 10.9 
  
 EXCESS OF LOSS REINSURANCE AGREEMENT 
  

Between 
  
 REPUBLIC INSURANCE COMPANY 
  
 WILMINGTON, DELAWARE 
  
 (hereinafter, the “Reinsured”) 
  
 AND

  
 “WINTERTHUR” SWISS INSURANCE COMPANY 
  
 WINTERTHUR, SWITZERLAND 
  
 (the Reinsurer) 
  
 Effective January 1, 1994 

  
 ARTICLE I 

PURPOSE 
  
 It is hereby agreed that the purpose of this Agreement is to protect the Reinsured against any excessive aggregate loss under its subsidiary companies (as listed in
Exhibit A attached hereto) arising out of or relating to any loss occurrence during the term of all underlying liabilities, as defined below, directly occasioned by any one earthquake and fire following which is directly occasioned by the
earthquake. However, the duration and extent of any one loss occurrence shall be limited to all individual losses sustained by the Reinsured and its subsidiary companies occurring during any period of 168 consecutive hours arising out of and
directly occasioned by the same event. 
  
 ARTICLE II

 REINSURANCE AFFORDED 
  
 The Reinsurer hereby agrees that it will indemnify the Reinsured for one hundred percent (100%) of the amount by which the Reinsured’s liabilities and obligations,
including but not limited to Insurance Requirements Plans, arising out of or relating to a loss occurrence (the “underlying liabilities”) during the term of this Agreement exceed One Hundred Fifty Million Dollars ($150,000,000.00), net of
retrocessional recoveries received under the Reinsured’s Excess Per Risk Reinsurance Programs. 
  
 ARTICLE III 
 TERM 
  
 Upon approval by the appropriate state regulatory authorities, this Agreement shall be
effective as of 12:01 A.M. Central Standard Time, January 1, 1994 for all loss occurrences occurring during the calendar year 1994. 
  
 ARTICLE IV 
 SALVAGES AND
RECOVERIES 
  
 In the event of any salvage or other recoveries being
received or made subsequent to settlement of any loss under this reinsurance, the amount of loss hereunder shall be recalculated on the basis of what it would have been settled at had the amount of the salvage or recovery been known at the time the
loss hereunder was originally determined. Any amounts thus found to be due to the Reinsurer shall be immediately paid to it by the Reinsured. 
  

 2 

 ARTICLE V 
 PREMIUM 
  
 The Premium payable to
the Reinsurer shall be One Dollar ($1.00), together with other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the Reinsurer. 
  
 ARTICLE VI 
 INSOLVENCY 
  
 In the event of the insolvency of the
Reinsured, all reinsurance payable under this Agreement shall be payable directly to the Reinsured or its liquidator, receiver, conservator or other statutory successor on the basis of the liability of the Reinsured without diminution because of the
insolvency of the Reinsured or because the liquidator, receiver, conservator or statutory successor of the Reinsured has failed to pay all or a portion of any claim. 
  
 ARTICLE VII 
 SETTLEMENT 
  
 The liability of the Reinsurer to the
Reinsured under the terms of this Agreement shall be calculated, determined, and payable as the Reinsured’s underlying liabilities in excess of $150,000,000.00 are realized and paid. 
  
 All amounts payable hereunder shall be paid in United States currency. 
  
 ARTICLE VIII 
 INSPECTION 
  
 The Reinsurer or its duly appointed
representative shall have free access to all books and records of the Reinsured at any and all reasonable times for the purpose of obtaining any and all information concerning the reinsurance or the subject matter thereof. 
  
 ARTICLE IX 
 ARBITRATION 
  
 If any dispute shall arise between the Reinsured and the Reinsurer with reference to the interpretation of this Agreement or their rights with respect to any transaction involved, the dispute shall be referred to three arbiters, one chosen
by each party and the third by the two so chosen. If either party refuses or neglects to appoint an arbitrator within thirty days after the receipt of written notice from the other party requesting it to do so, the 

  

 3 

 
requesting party may nominate two arbitrators, who shall choose the third. Each party shall submit its case to the arbitrators within thirty days of the
appointment of the arbitrators. The arbitrators shall consider this Agreement an honorable engagement rather than merely a legal obligation; they are relieved of all judicial formalities and may abstain from following the strict rules of law. The
decision of a majority of the arbitrators shall be final and binding on the Reinsured and the Reinsurer. The expense of the arbitrators and arbitration shall be equally divided between the Reinsured and the Reinsurer. Any such arbitration shall take
place in Dallas, Texas. The arbitrators shall be officers of insurance companies. 
  
 ARTICLE X 
 JURISDICTION AND SERVIE OF SUIT 
  
 A. In the event of the failure of the Reinsurer to perform its obligations under the terms of
this Agreement, the Reinsurer, at the request of the Reinsured, shall submit to the jurisdiction of any court of competent jurisdiction in any State of the United States, comply with all requirements necessary to give such court jurisdiction, and
abide by the final decision of such court or of any appellate court in the event of an appeal. This provision, however, is not intended to conflict with or override the obligation of the parties to this Agreement to arbitrate their disputes under
this Agreement. 
  
 B. The Reinsurer hereby designates the Commissioner of the
State of Delaware 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 Reinsured. This provision, however, is not intended to conflict with or override the
obligation of the parties to this agreement to arbitrate their disputes under this Agreement. 
  
 ARTICLE XI 
 RESERVE FUNDING 
  
 To the extent that the Reinsurer is required by any state or federal regulatory body having
jurisdiction over the reserves of the Reinsured, to secure or collateralize its liabilities and obligations under the Agreement, the Reinsurer agrees to do so by either, at the Reinsurer’s option, obtaining unconditional, clean and irrevocable
letters of credit issued by a member of the federal reserve system acceptable to the appropriate regulatory authority, or by establishing and depositing assets in a trust account in any similarly qualified bank. The letters of credit or trust assets
may be required by the appropriate regulatory authority so as to allow the Reinsured to take credit in its financial statements for 

  

 4 

 
the full amount of any funds due from or liabilities ceded to the Reinsurer hereunder. 
  
 ARTICLE XII 
 OFFSET 
  
 Any balances due for settlement under this
Agreement may be set off against any other balances outstanding under this Agreement between the Reinsured and the Reinsurer. 
  
 ARTICLE XIII 
 GENERAL PROVISIONS

  
 A. This Agreement is intended as the entire agreement of the parties,
and supersedes and subsumes all prior agreements between the parties, whether oral or written, with respect to the matters addressed herein. 
  
 B. This Agreement may only be amended by written addendum to this Agreement, individually executed by the Reinsurer and the Reinsured, such addendum being effective only
upon notice to and approval by the appropriate regulatory authority. 
  
 C. This
Agreement may not be assigned by any party without the prior written consent of the other party. 
  
 D. This Agreement shall inure to the benefit of and be binding upon the parties, their heirs, successors, and assigns. 
  
 E. The titles and captions of the paragraphs and sections of this Agreement are included solely for convenience of reference and are not a part of, nor shall they be used
to construe any term or provision of the Agreement. 
  
 F. This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware. 
  
 G. If any provision of this Agreement shall prove or be held to be invalid by any court or regulatory agency of competent authority and jurisdiction, such provision shall be deemed invalid and shall be severed, such severance not otherwise
affecting the remaining provision of this Agreement. 
  

 5 

  
 Executed in Dallas, Texas to take effect on
the date first noted above. 
  

	
	REINSURED:
	
	REPUBLIC INSURANCE COMPANY
	
	/s/    LAURA K. HINSON        
	Laura K. Hinson, Vice President

  

	
	REINSURER:
	
	“WINTERTHUR” SWISS INSURANCE COMPANY
	
	/s/    H.R. STUCKI        

  

 6 

  
 EXHIBIT A

  
 Attached to and made a part of 
  
 EXCESS OF LOSS REINSURANCE AGREEMENT 
  
 Republic Insurance Company, Delaware 
 Vanguard Insurance Company, Texas 
 Blue Ridge Insurance Company, Maryland

  

 ADDENDUM NO. 1 TO 
  

EXCESS OF LOSS REINSURANCE AGREEMENT 
  
 between 
  
 REPUBLIC INSURANCE COMPANY 
  
 WILMINGTON, DELAWARE 
  
 (hereinafter, the “Reinsured”) AND 
  
 “WINTERTHUR” SWISS INSURANCE COMPANY 
  
 WINTERTHUR, SWITZERLAND 
  
 (the “Reinsurer”)

  
 Effective January 1, 1994 
  

 IT IS HEREBY AGREED, effective January 1, 1994, with respect to business in force at that date or issued or renewed
thereafter: 
  
 That the following sentence shall be added to the end of ARTICLE
VII - SETTLEMENT: 
  
 The Reinsured shall establish a statement of account and
shall submit it to the Reinsurer on at least a quarterly basis. The Reinsurer shall verify the statement of account and pay the balance, if any, owed thereon by Reinsurer within 4 weeks of its receipt thereof. 
  
 The provisions of this Agreement shall remain otherwise unchanged. 
  
 Executed in Dallas, Texas to take effect on the date first noted above. 
  

	
	REINSURED:
	
	REPUBLIC INSURANCE COMPANY
	
	/s/    LAURA K. HINSON        
	Laura K. Hinson, Vice President

  

	
	REINSURER:
	
	“WINTERTHUR” SWISS INSURANCE COMPANY
	
	/s/    H. R. STUCKI        
	H. -R. Stucki, General Manager

  

 ADDENDUM NO. 2 
  
 to the 
  
 EXCESS OF LOSS REINSURANCE AGREEMENT 
 (hereinafter the “Agreement”)

  
 between 
  
 REPUBLIC INSURANCE COMPANY 
  
 and 
  
 “WINTERTHUR” SWISS INSURANCE COMPANY 
  
 Effective Date of the agreement – January 1, 1994 
  
 IT IS HEREBY AGREED, effective January 1, 1996, that: 
  
 (i) Republic Insurance Company is replaced by Republic Underwriters Insurance Company as the Reinsured under the Agreement
and all right, title, interest and obligations of Republic Insurance Company, as the Reinsured, are conveyed and assigned to Republic Underwriters Insurance Company; and 
  
 (ii) Exhibit A of the Agreement is amended to reflect Republic Insurance Company, Vanguard Insurance Company and Blue Ridge
Insurance Company as subsidiary companies; and 
  
 (iii) Paragraph
F of ARTICLE XIII – GENERAL PROVISIONS is amended in its entirety to read as follows: 
  
 “F. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas.” 
  
 The provision of the Agreement shall remain otherwise unchanged. 
  
 IN WITNESS WHEREOF, the parties hereto by their respective duly authorized representatives
have executed this Addendum as of the dates indicated below. 
  

			
	REPUBLIC INSURANCE COMPANY
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 	 	Bruce R. Milligan
	 	 	President & CEO
		
	 Date:
	 	 January 30, 1997

  

			
	WINTERTHUR SWISS INSURANCE COMPANY
		
	By:	 	/s/    H.R. STUCKI        
	 	 	H.R. Stucki
	 	 	General Manager
		
	 Date:
	 	 January 30, 1997

  
 ACCEPTANCE: 
  
 Republic Underwriters Insurance Company accepts the assignment and modification of the
Agreement and agrees to be bound by all of its terms and conditions. 
  

			
	REPUBLIC UNDERWRITERS INSURANCE COMPANY
		
	By:	 	/s/    BRUCE R. MILLIGAN        
	 	 	Bruce R. Milligan
	 	 	President & CEO
		
	 Date:
	 	 January 30, 1997

  

 EXECUTION COPY 
 ADDENDUM NO. 3 
  
 TO 

 
 EXCESS OF LOSS REINSURANCE AGREEMENT 
  
 BETWEEN 
  
 REPUBLIC UNDERWRITERS INSURANCE COMPANY 
  
 AND 
  
 WINTERTHUR SWISS INSURANCE COMPANY 
  
 This Addendum No. 3 (referred to herein as this “Addendum”) is hereby incorporated into and made a part of the Excess of Loss Reinsurance
Agreement between Republic Underwriters Insurance Company and Winterthur Swiss Insurance Company. Republic Underwriters Insurance Company (referred to herein as “Republic Underwriters”) and Winterthur Swiss Insurance Company (referred to
herein as “Winterthur”) are referred to in this Addendum singularly as “Party” and collectively as the “Parties.” 
  
 RECITALS 
  
 WHEREAS, pursuant to the provisions of that certain Quota Share Reinsurance Agreement, effective January 1, 1996, between Republic Underwriters, as
reinsurer, and Republic Insurance Company (referred to herein as “Republic Insurance”), as reinsured, (referred to herein as the “Republic Insurance Agreement”) Republic Underwriters reinsures 100% of the liabilities and
obligations of Republic Insurance arising out of or in connection with certain Covered Business as described in the Republic Insurance Agreement, which liabilities and obligations include liabilities and obligations directly occasioned by the 1994
California earthquake referred to commonly and herein as the “Northridge Earthquake”; 
  
 WHEREAS, pursuant to the provisions of that certain Quota Share Reinsurance Agreement, effective January 1, 1996, between Republic Underwriters, as
reinsurer, and Vanguard Insurance Company (now known as Winterthur International America Insurance Company and referred to herein as “Vanguard”), as reinsured, (referred to herein as the “Vanguard Agreement”) Republic
Underwriters reinsures 100% of the liabilities and obligations of Vanguard arising out of or in connection with certain Covered Business as described in the Vanguard Agreement, which liabilities and obligations include liabilities and obligations
directly occasioned by the Northridge Earthquake; 
  
 WHEREAS,
pursuant to the provisions of that certain Quota Share Reinsurance Agreement, effective January 1, 1996, between Republic Underwriters, as reinsurer, and Blue Ridge Insurance Company (referred to herein as “Blue Ridge”), as reinsured,
(referred to herein as the “Blue Ridge Agreement”) Republic Underwriters reinsures 

  

 
100% of the liabilities and obligations of Blue Ridge arising out of or in connection with certain Covered Business as described in the Blue Ridge Agreement,
which liabilities and obligations include liabilities and obligations directly occasioned by the Northridge Earthquake; 
  
 WHEREAS, pursuant to the provisions of the Republic Insurance Agreement, the Vanguard Agreement and the Blue Ridge Agreement (referred to herein
collectively as the “Reinsurance Agreements”), Republic Underwriters provides claims handling on Covered Business; 
  
 WHEREAS, pursuant to the provisions of that certain Excess of Loss Reinsurance Agreement, effective January 1, 1994, as amended, between Winterthur, as
reinsurer, and Republic Underwriters, as reinsured, (referred to herein as the “Winterthur Agreement”), Winterthur indemnifies Republic Underwriters for one hundred percent of the amount by which Republic Underwriters’ liabilities and
obligations, including but not limited to losses, loss adjustment expenses and assessments for Fair Access to Insurance Requirements Plans, arising out of or relating to a loss occurrence, as defined in the Winterthur Agreement, during the term of
the Winterthur Agreement exceed One Hundred Fifty Million Dollars, net of retrocessional recoveries received under Republic Underwriters’ Excess Per Risk Reinsurance Programs; 
  
 WHEREAS, Winterthur hereby acknowledges that Republic Underwriters’ liabilities and obligations, including but not
limited to losses, loss adjustment expenses and assessments for Fair Access to Insurance Requirements Plans, arising out of or relating to a loss occurrence, as defined in the Winterthur Agreement, during the term of the Winterthur Agreement have
already exceeded One Hundred Fifty Million Dollars, net of retrocessional recoveries received under Republic Underwriters’ Excess Per Risk Reinsurance Programs; 
  
 WHEREAS, the intent of the Winterthur Agreement is to indemnify Republic Underwriters for liabilities and obligations under
the Reinsurance Agreements arising out of or relating to the Northridge Earthquake; 
  
 WHEREAS, a Stock Purchase Agreement has been entered into pursuant to which Winterthur will cease to own indirectly Republic Underwriters, and Republic Underwriters will cease to be an indirect subsidiary company of
Winterthur; 
  
 WHEREAS, subsequent to Republic Underwriters
ceasing to be an indirect subsidiary company of Winterthur, it is the intent of the Parties that Republic Underwriters continue to manage all claims and litigation related matters arising from or related to the Northridge Earthquake pursuant to the
Reinsurance Agreements in the manner in which it currently performs such functions; 
  
 WHEREAS, it is the intent of the Parties that this Addendum set forth in more particular detail the manner in which Republic Underwriters will manage all claims and litigation related matters arising from or related
to the Northridge Earthquake pursuant to 

  

 2 

 
the Reinsurance Agreements and the funding by Winterthur of its obligations pursuant to the Winterthur Agreement; 
  
 WHEREAS, Winterthur desires to ensure that Republic Underwriters will
continue to manage all claims and litigation related matters arising from or related to the Northridge Earthquake in the manner currently followed by Republic Underwriters; and 
  
 WHEREAS, the Parties desire to enter into this Addendum setting forth the manner in which Republic Underwriters will
continue to manage all claims and litigation related matters under the Reinsurance Agreements arising from or related to the Northridge Earthquake. 
  
 NOW, THEREFORE, Republic Underwriters and Winterthur agree as follows: 
  
 ARTICLE 1 - SERVICES 
  
 1.1 Services. Republic Underwriters shall provide claims and litigation related services (referred to herein as the “Services”) for claims and litigation
matters arising from or related to policies reinsured by Republic Underwriters pursuant to the Reinsurance Agreements and subsequently reinsured by Winterthur pursuant to the Winterthur Agreement (referred to herein as the “Claims”).
Republic Underwriters shall provide the Services until all Claims have been finally settled or until Winterthur has provided written notice to Republic Underwriters that Winterthur is assuming control of, and no longer requires Republic Underwriters
to provide, the Services. In the event that Winterthur elects to assume control of the Services, Republic Underwriters shall cooperate in promptly transferring such Services to Winterthur or Winterthur’s delegee; provided,
however, that the transfer of such services will not affect the provision by Winterthur to Republic Underwriters of reinsurance under the Winterthur Agreement. 
  
 1.2 Scope of Services. The Services provided by Republic Underwriters on behalf of Republic Insurance, Vanguard and Blue Ridge
(referred to herein collectively as the “Companies”), as applicable, in connection with the Claims shall be a continuation of the services provided by Republic Underwriters immediately preceding the execution of this Addendum by the
Parties and shall include, but not be limited to, the following, which shall be performed by Republic Underwriters in a manner consistent with the standards set forth in Section 1.3 below, either directly by Republic Underwriters or through third
parties retained by or on behalf of Republic Underwriters (in which event Republic Underwriters shall remain fully responsible for the Services as if such retention had not occurred): 
  

	 	(a)	Investigation of Claims; 

  

	 	(b)	Adjustment of Claims; 

  

	 	(c)	Settlement of Claims; 

  

	 	(d)	Payment of Claims; 

  

 3 

	 	(e)	Payment of Loss Adjustment Expenses; 

  

	 	(f)	Retaining of and contracting for attorneys to defend lawsuits (including, but not limited to, declaratory judgment actions) and provide coverage recommendations;

  

	 	(g)	Payment of final judgments, decrees or awards rendered against the Companies; 

  

	 	(h)	Providing or obtaining necessary litigation related services; 

  

	 	(i)	Asserting applicable legal and evidentiary privileges; 

  

	 	(j)	Accepting service of process or other legal documents related to the Claims; 

  

	 	(k)	Retaining and contracting for appraisers, umpires, experts and other third parties; 

  

	 	(l)	Retaining and contracting for mediators and arbitrators; 

  

	 	(m)	Providing or obtaining mediation and arbitration related services; 

  

	 	(n)	Maintaining Claims files and other appropriate files in accordance with applicable laws, regulations and Republic Underwriters’ record retention practices;

  

	 	(o)	Establishing reserve amounts; 

  

	 	(p)	Providing Monthly Invoices (as defined below), in the form set forth in Attachment 1 hereto, for Indemnification Amounts due to Republic Underwriters; 

  

	 	(q)	Reporting to and seeking recovery from applicable insurers and reinsurers; and 

  

	 	(r)	Providing appropriate employees or other individuals to serve as representatives during trials, mediations or arbitrations. 

  
 1.3 Standard of Conduct. The Services provided by Republic Underwriters shall (i)
comply with applicable laws and governmental regulations and (ii) be of the same standards of diligence and business conduct as Republic Underwriters follows in its own business operations, which standards shall not be less stringent than those
followed by Republic Underwriters in providing the Services immediately prior to the execution of this Addendum. If such compliance is impossible for reasons beyond its control, Republic Underwriters will notify Winterthur of that fact and the
reasons for noncompliance. 
  

 4 

 1.4 Winterthur Oversight. 
  
 (a) As promptly as practicable following the date hereof and within 45 days after the end of each calendar quarter
thereafter, Republic Underwriters will provide Winterthur a bordereau of outstanding Claims including those which are in litigation as of the date hereof. Republic Underwriters will advise Winterthur in writing within 15 days of material
developments for each Claim for which the Indemnification Amount (as defined in Article 3) is reasonably likely to exceed $200,000 (a “Claims Notice”). Such Claims Notice shall be in the form attached hereto as Exhibit A. Failure to
provide a Claims Notice in a timely manner shall not be deemed a waiver of Republic Underwriters’ rights hereunder, except to the extent that such failure causes Winterthur to suffer actual prejudice. In the event that Winterthur determines
that the amount set forth in the second preceding sentence for which Republic Underwriters must provide a Claims Notice do not provide Winterthur with adequate protection, Winterthur may, upon prior written notice to Republic Underwriters,
reasonably reduce such amount and Republic Underwriters shall, upon receipt of such notice, provide Claims Notices in accordance with such reduced amounts provided, however, that such reduced amount shall not be less than $50,000.

  
 (b) After receipt of a Claims Notice, Winterthur may at any
time during the pendency of such Claim notify Republic Underwriters that Winterthur elects to have the Representative (as defined below) participate with Republic Underwriters in providing the Services, including without limitation, the
administration and defense of the Claim which is the subject of the Claims Notice (a “Participating Claim”). Until such time as Winterthur notifies Republic Underwriters of its election to have the Representative participate in providing
the Services with respect to such Participating Claim, the obligation to provide the Services with respect to the Claim or circumstance described in such Claims Notice will remain fully with Republic Underwriters. If Winterthur delivers such notice,
Republic Underwriters shall cooperate fully with the Representative in respect of the Participating Claim. 
  
 (c) For purposes of this Agreement, the Representative shall mean Unigard Insurance Company or such alternate persons or entities named by Winterthur
(which may be an affiliate of Winterthur) and consented to by Republic Underwriters, such consent not to be unreasonably withheld. Properly invoiced fees and expenses of the Representative shall be promptly paid by Republic Underwriters and will be
treated as Indemnification Amounts as set forth in Article 3 and reimbursed pursuant to the provisions of Article 5. The Representative is authorized to monitor Republic Underwriters’ performance in rendering the Services in respect of
Participating Claims and is further authorized to (but may decline to) fully manage and control the disposition of disputes and litigation in respect of Participating Claims, provided, however, that if litigation has been instituted in
respect of a Participating Claim that includes claims for amounts for which Republic Underwriters is not entitled to indemnification under Section 3.1(e) or Section 3.1(f) due to the exception contained in each such Section (a “Special
Claim”), Republic Underwriters shall control the defense of such Special Claim and such Special Claim may not be settled by the Representative unless Republic Underwriters has consented to such settlement, which consent shall not be
unreasonably withheld. 
  

 5 

 (d) Republic Underwriters shall provide Winterthur and its authorized representatives with full access at
all reasonable times and in a manner so as not to interfere with the normal business operations of Republic Underwriters or its affiliates, to the books and records, claim files, litigation files, work papers, information and employees of Republic
Underwriters relating to the Services or the Claims, and fully cooperate with Winterthur and its authorized representatives, in each case as Winterthur may reasonably request. 
  
 ARTICLE 2 - EMPLOYEES AND EXTERNAL PERSONNEL 
  
 2.1 Internal Employees. Republic Underwriters shall make available its internal employees as is reasonably necessary to provide the
Services hereunder. Republic Underwriters will use its commercially reasonable efforts to continue to make the services of its current internal employees who provided services in connection with the Claims immediately preceding the execution of this
Addendum (the “Current Internal Employees”) by the Parties available during the time Republic Underwriters provides the Services and as is necessary to provide the Services consistent with the standards set forth in Section 1.3 above
(subject to the continued employment of such Current Internal Employees by Republic Underwriters, which employment is and shall be “at-will”), provided that Republic Underwriters shall not without good cause terminate the employment of any
Current Internal Employee without the prior written consent of Winterthur, which consent shall not be unreasonably withheld. The Current Internal Employees are listed on Attachment 2 hereto. 
  
 2.2 Additional or Replacement Internal Employees. If additional or replacement
internal employees are required to provide the Services, Republic Underwriters will submit the names and qualifications of such employees to Winterthur for its approval prior to assigning such employees to perform the Services; provided, however, if
the additional or replacement employees primarily perform clerical or administrative tasks and do not result in a material increase in the costs to Republic Underwriters in providing the Services, approval to assign such employees shall not be
required. 
  
 2.3 External Personnel. Republic Underwriters shall retain at
reasonable cost external personnel, including, but not limited to, attorneys, adjusters, investigators, experts, mediators, arbitrators, umpires, appraisers, paralegals, support staff and other third parties, to provide or assist in providing
Services, all upon such terms and conditions as is reasonable, necessary and appropriate. 
  
 ARTICLE 3 - INDEMNIFICATION 
  
 3.1
Indemnification Amounts. Pursuant to the terms of the Winterthur Agreement, Winterthur indemnifies Republic Underwriters for one hundred percent of the amount by which Republic Underwriters’ liabilities and obligations, including but not
limited to losses, loss adjustment expenses and assessments for Fair Access to Insurance Requirements Plans, under the Reinsurance Agreements arising out of or relating to the Northridge Earthquake exceed One Hundred Fifty Million Dollars, net of
retrocessional recoveries received under Republic Underwriters’ Excess Per Risk Reinsurance Programs 

  

 6 

 
(referred to herein as the “Indemnification Amounts”). The Parties acknowledge and agree that Indemnification Amounts include, but are not limited
to, the following: 
  
 (a) An amount for each internal employee,
including current, additional or replacement employees, equal to a percentage of compensation (salary and bonuses) paid to each such internal employee. The percentage designated for each employee shall be Republic Underwriters’ good-faith
estimate of the percent of work time each internal employee dedicates to performing the Services. The applicable percentage for each current internal employee primarily responsible for providing the Services as of the date of execution of this
Addendum is set forth in Attachment 2 hereto. Republic Underwriters shall change (either by increase or decrease) such percentages at any time to reflect fairly the percent of work time an employee dedicates to performing the Services; provided,
however, that Republic Underwriters shall not change the percentages more often than once every three months. 
  
 (b) An amount for benefits and other salary related costs, which benefits and costs are identified on Exhibit B hereto, with respect to each
internal employee, including current, additional or replacement employees, equal to a percentage of the aggregate compensation paid to each such internal employee as calculated in Section 3.1(a) above. For 2003, such percentage shall be 30% of the
aggregate compensation paid to such internal employees as calculated in 3.1(a) above and such percentage shall be revised annually thereafter (taking into account the then current health care costs and retirement and other benefits) and included in
each Plan delivered by Republic Underwriters to Winterthur as contemplated in Article 4 below.  
  
 (c) An amount for reimbursement for Republic Underwriters’ direct and indirect internal costs, other than costs identified in 3.1(a) and 3.1(b)
above. Direct internal costs shall be supported by receipts and expense statements maintained in accordance with Republic Underwriters’ expense policies. Indirect internal costs for common support facilities and services necessary for Republic
Underwriters to provide the Services shall be equal to a percentage of the aggregate compensation paid to the internal employee as calculated in Section 3.1(a) above. For 2003, such percentage shall be 16% of the aggregate compensation paid to the
internal employees as calculated in 3.1(a) above and such percentage shall be revised annually thereafter and included in each Plan delivered by Republic Underwriters to Winterthur as contemplated in Article 4 below. 
  
 (d) Actual costs and expenses of third parties incurred by or on behalf of
Republic Underwriters. Costs and expenses will be supported by billings and invoices to the extent possible. Costs and expenses of third parties shall be reasonable and shall be managed judiciously by Republic Underwriters on behalf of Winterthur
and shall be passed to Winterthur without a profit to Republic Underwriters. 
  
 (e) Contractual and extra-contractual amounts, judgments, punitive damages, exemplary damages, interest, costs, fines, sanctions, penalties, expenses and all other amounts for which Republic Underwriters or the
Companies may be liable arising out of or related to the Claims or the Services, except to the extent arising out of the negligence 

  

 7 

 
or willful or intentional act or failure to act of Republic Underwriters, its employees, agents or representatives occurring after the effective date of this
Addendum; provided, however, that this exception shall not apply if such negligence, or willful or intentional act or failure to act of Republic Underwriters, its employees, agents or representatives occurs as a result of or pursuant
to direction of the Representative. 
  
 (f) All amounts that
otherwise would be Indemnification Amounts as identified in this Article 3 incurred by or on behalf of Republic Underwriters in connection with claims or litigation arising out of the Northridge Earthquake but for which a specific insurance policy
is not identifiable, including, but not limited to, class action lawsuits or putative class action lawsuits, except to the extent arising out of the negligence or willful or intentional act or failure to act of Republic Underwriters, its employees,
agents or representatives occurring after the effective date of this Addendum; provided, however, that this exception shall not apply if such negligence, or willful or intentional act or failure to act of Republic Underwriters, its
employees, agents or representatives occurs as a result of or pursuant to direction of the Representative. 
  
 (g) Notwithstanding the provisions of Section 3.1, in no event shall Winterthur be obligated to pay to Republic Underwriters any Indemnification Amounts
arising out of Section 3.1(a) and (b) for a particular year to the extent such amounts exceed ten percent (10%) of the amounts for Section 3.1(a) and (b) as set forth on the Plan (as defined below) for such calendar year. 
  
 ARTICLE 4 - WORK PLAN AND BUDGET 
  
 4.1 2004 Plan. Prior to September 30, 2003, Republic Underwriters shall provide to
Winterthur a written plan setting forth a proposed work plan and budget (the “Plan”) for managing Claims during the calendar year 2004. The Plan will set forth the Claims for which Services are anticipated to be provided during the year,
the current status of the Claims, a general description of the anticipated action required for the Claims, the internal employees of Republic Underwriters to be assigned to the Services and such other information as Republic Underwriters deems
appropriate. The budget will set forth the costs and expenses anticipated in connection with the Services. The Parties acknowledge and agree that the Plan will represent only an estimate of the activities and costs reasonably anticipated by Republic
Underwriters and that the actual Services provided and the costs and expenses actually incurred will vary from the Plan. Republic Underwriters hereby agrees that each Plan shall be based upon good faith estimates and assumptions believed by Republic
Underwriters to be reasonable at the time made. 
  
 4.2 Subsequent Years’
Plans. No later than August 1 of each year subsequent to 2004 during which Republic Underwriters provides the Services, Republic Underwriters shall provide a Plan to Winterthur for the next calendar year. 
  

	4.3	Winterthur Review of Plan. 

  
 (a) Upon receipt of a Plan, Winterthur shall have thirty (30) days to review such Plan. If Winterthur notifies Republic Underwriters of any objection to
the Plan, the 

  

 8 

 
Parties shall in good faith attempt to resolve, within fifteen (15) days (or such longer period as the Parties may agree) following such notice their
differences with respect to such Plan. If the Parties cannot resolve their differences with respect to such Plan, the Plan as proposed by Republic Underwriters shall become an addendum to the Winterthur Agreement, provided, however, that such Plan
shall remain subject to and shall be adjusted retroactively (to the beginning of the relevant calendar year) and prospectively (through the end of the relevant calendar year) for (i) any revision as a result of a negotiated resolution by the Parties
of their differences with respect thereto or (ii) any revision as a result of a resolution reached pursuant to the arbitration provisions set forth in Article IX of the Winterthur Agreement. 
  
 (b) During the period of any review or dispute contemplated by this Section
4.3, Republic Underwriters shall provide Winterthur and its authorized representatives with full access at all reasonable times, and in a manner so as not to interfere with the normal business operations of Republic Underwriters or its Affiliates,
to all relevant books and records, claim files, litigation files, work papers, information and employees, and cooperate fully with Winterthur and its authorized representatives, in each case, as necessary or useful for the review of such Plan or for
the resolution of any dispute between the Parties relating thereto.  
  
 ARTICLE 5 - FUNDING. 
  
 5.1 Monthly
Invoices. Within 15 days after the end of each calendar month following the date hereof, Republic Underwriters shall render a detailed monthly invoice in the form set forth in Attachment 1 hereto (referred to herein as a “Monthly
Invoice”) to Winterthur for Indemnification Amounts due in respect of such month. Within 30 days of receipt of a Monthly Invoice, Winterthur shall pay to Republic Underwriters the amounts indicated on such Monthly Invoice. 
  
 5.2 Interest. 
  
 (a) In the event that any amounts due either Party hereunder are not received by the other Party by the payment due date,
interest shall accrue on such amount past due calculated as follows: 
  

	 	(i)	The number of full days which has expired since the due date, times 

  

	 	(ii)	1/365th of the one-year United States Treasury
Bill Rate as quoted in The Wall Street Journal on the payment due date; times 

  

	 	(iii)	The amount past due, including accrued interest. 

  
 (b) It is agreed that interest shall accumulate until payment of the original amount due plus accrued interest has been received by the Party to be paid.

  
 (c) Nothing herein shall be construed as limiting or
prohibiting either Party from contesting the validity of any payment or from initiating any arbitration or other proceeding. If the debtor Party prevails in an arbitration or other proceeding, then any 

  

 9 

 
interest due hereunder on the amount in dispute shall be null and void. If the debtor Party loses in such proceeding, then the interest penalty on the amount
determined to be due hereunder shall be calculated in accordance with the provisions set forth above unless otherwise determined by such proceedings. If Winterthur advances payment of any amount it is contesting, and proves to be correct in
contesting such payment, either in whole or in part, Republic Underwriters shall reimburse Winterthur for any such excess payment made plus interest on the excess amount calculated in accordance with this Article. 
  
 5.3 Cash Calls. In the event that a payment in respect of a Claim is reasonably
expected by Republic Underwriters to be made within ten (10) days in an amount greater than or equal to $500,000 Republic Underwriters may request in writing that Winterthur provide, and Winterthur shall so provide, such amount prior to the date of
payment thereof. 
  
 5.4 Addendum No. 1. For the avoidance of doubt, the
terms of this Article 5 amend and replace the sentence added to the end of Article VII (Settlement) of the Winterthur Agreement by Addendum No. 1 to the Winterthur Agreement. 
  

 10 

  
 IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first above written. 
  

					
	Republic Underwriters Insurance Company
		
	By:	 	/s/    BRUCE R.
MILLIGAN        
	 	 	 Name:
	 	Bruce R. Milligan
	 	 	 Title:
	 	President

  
 Date: August 29, 2003 
  

					
	Winterthur Swiss Insurance Company
		
	By:	 	/s/    HANS [SIGNATURE
ILLEGIBLE]        
	 	 	 Name:
	 	 
	 	 	 Title:
	 	Managing Director

  
 Date:
                             
  

					
		
	By:	 	/s/    DANIEL
STIEFEL        
	 	 	 Name:
	 	Daniel Stiefel
	 	 	 Title:
	 	Vice President

  
 Date: 26/08/03 
  

 11 

  
 ATTACHMENT 1 
  
 Republic Underwriters Insurance Company 
 Monthly Invoice 
 Northridge Earthquake Claims 
 Month ending on                      
 Statement Date                      
  
 External Loss Adjustment Expense: 
  

				
	 Fee adjusters:
	  	$	xxxxxx
	 Specialist:
	  	 	xxxxxx
	 Legal:
	  	 	xxxxxx
	 Total External Expense
	  	$	xxxxxx

  
 Internal Loss Adjustment Expense:

  
 Claims department personnel (salaries, benefits and cost
center expenses): 
  

							
	 Sally McKinney
	  	xx.x	%	 	$	xxxxx
	 Terry Burke
	  	xx.x	%	 	 	xxxxx
	 Temporary #1
	  	xx.x	%	 	 	xxxxx
	 Temporary #2
	  	xx.x	%	 	 	xxxxx
			
	 Estimated benefits and taxes
	  	xx.x	%	 	 	xxxx
	 Indirect internal costs
	  	xx.x	%	 	 	xxxx

  
 Legal department
personnel (salaries, benefits and cost center expenses): 
  

							
	 Elizabeth Gilday
	  	xx.x	%	 	$	xxxxx
	 Chesney Sampson
	  	xx.x	%	 	 	Xxxxx
	 Debbie Jackson
	  	xx.x	%	 	 	Xxxxx
	 Estimated benefits and taxes
	  	xx.x	%	 	 	xxxx
	 Indirect internal costs
	  	Xx,x	%	 	 	Xxxx
			
	 Claims department expense reports
	  	 	 	 	$	xxxxx
	 Legal department expense reports
	  	 	 	 	 	xxxxx
	 Other direct expenses
	  	 	 	 	 	xxxxx
			
	 Total Internal Expense
	  	 	 	 	$	xxxxx
			
	 Contractual, Extra-contractual, etc. Costs
	  	 	 	 	$	xxxxx
	 Less: Cash calls during the month
	  	 	 	 	 	Xxxxx
			
	 Total Monthly Invoice Amount
	  	 	 	 	$	xxxxxx

  
 The Total Monthly Invoice Amount is
the actual amount of the indemnification to be provided by Winterthur to Republic Underwriters pursuant to the Winterthur Agreement for the previous month. 
  

  
 ATTACHMENT 2 
  
 1. The following internal employees currently provide direct Services for the Claims. The
percentages of all compensation paid to such internal employees during the Initial Period are: 
  

	 	(a)	Elizabeth Gilday, Attorney - 100% 

  

	 	(b)	Sally McKinney, Claims Supervisor - 40% 

  

	 	(c)	Chesney Sampson, Legal Secretary - 25% 

  

	 	(d)	Debbie Jackson, Legal Secretary - 10% 

  

	 	(e)	Terry Burke, Claims Supervisor -100% 

  

	 	(f)	Jerry Jones, Vice President -5% 

  

  
 Exhibit A 

Form of Claims Notice 
  
  ̈
Original      ̈
Supplement                                       
  
  
                                   Claims Notice 
  

															
								
	Insured	 	Name	 	 	 	 	 	Agent	 	Name	 	                                #	 	 
	 	 	 	 	 	 	 	 	

								
	            (b)	 	Policy No.	 	 	 	 	 	Mortgagees	 	First	 	 	 	 
								
	 	 	Claim No.	 	 	 	 	 	 	 	Second	 	 	 	 
	
	 	

							
	Property Risk
Address/	 	Address	 	 	 	 	 	Occupancy/
Structure	 	 ̈ Owner          ̈ Tenant	 	 
	Auto Garage
Location	 	City, State	 	 	 	 	 	  
 Covered
Driver Name
	 	 	 	 	 	 
	 	  
 Zip
	 	 	 	 	 	 	 	 	 	 	 
	 	  
 Description
	 	 	 	 	 	 	 	 	 	 	 
	
	 	

								
	Coverage	 	Policy Type	 	 	 	 	 	Loss	 	Cause	 	 	 	 
								
	 	 	Period	 	 	 	 	 	 	 	D.O.L.	 	Time   	 	 
								
	 	 	Orig Eff Date	 	 	 	 	 	 	 	 	 	 	 	 
								
	 	 	Limits	 	 	 	 	 	 	 	Date Reported	 	CAT #	 	 
								
	 	 	Endorsements	 	 	 	 	 	 	 	 	 	 	 	 
	

							
	Recovery	 	 ̈ Yes          ̈ No	 	 	 	 	 	 	 	 	 	 
								
	 	 	Explain	 	 	 	 	 	 	 	 	 	 	 	 
								
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	Payment/
Reserve	 	Date	 	Current Reserve	 	        Reserve Change	 	Payment to Date	 	    Total Incurred	 	 
	 	

	
	

	Facts	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	Claimant(s)	 	1	 	 	 	 	 	2	 	 	 	 	 	 
								
	 	 	3	 	 	 	 	 	4	 	 	 	 	 	 
								
	 	 	5	 	 	 	 	 	6	 	 	 	 	 	 
	

							
	 	 	Adjuster	 	Supervisor	 	        Manager	 	Office	 	    Date	 	 

  

  
 Exhibit B 

Benefits and Other Salary Related Costs 
  
 The benefits and other salary related costs provided for in Article 3.1(b) include, but are not limited to, the following: 
  

	 	•	 	health plans – medical, dental, vision, physicals plans 

  

	 	•	 	insurance plans – life, long-term disability, accidental death and dismemberment plans 

  

	 	•	 	retirement plans – including qualified and nonqualified defined benefit and defined contribution plans, 

  

	 	•	 	miscellaneous employee expenses – including training, cafeteria subsidies, company sponsored employee events, and 

  

	 	•	 	employer payroll taxes. 

  
 These costs do not include the following types of expenses which would be included under Article 3.1(c) and Article 3.1(d) (if any): 
  

	 	•	 	travel, vehicle and related expenses, and 

  

	 	•	 	employee placement fees and advertising expenses for replacement employees. 

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00084-of-00352.parquet"}]]