Document:

exv10w156

EXHIBIT
10.156

REINSURANCE AGREEMENT

by and between

LIBERTY MUTUAL INSURANCE COMPANY, a Massachusetts stock insurance company (the “Liberty Mutual” or
the “assuming company”), and GOLDEN EAGLE INSURANCE CORPORATION, a California stock insurance
company (“Golden Eagle” or the “ceding company”). For purposes of this Agreement, “policy” means
any policy or contract of insurance, including any binder or renewal certificate issued by an
insurance company in the course of its business and not terminated.

In consideration of the mutual promises and agreements contained herein, the parties hereby agree
as follows:

1. EFFECTIVE DATE

     This Agreement is effective
as of 12:01 A.M., Boston time, January 1, 2004 (the “Effective
Date”) and shall remain in force unless modified by mutual agreement or terminated as provided
herein.

2. CESSIONS AND ACCEPTANCES

     2.1. Golden Eagle cedes to Liberty Mutual and Liberty Mutual accepts 100% of Golden Eagle’s
risks under all policies directly written by Golden Eagle during the term of this Agreement which
are classified in the National Association of Insurance Commissioners (“NAIC”) form of annual
statement as Workers’ Compensation.

     2.2. Golden Eagle cedes to Liberty Mutual, and Liberty Mutual accepts 100% of Golden Eagle’s
“Agents’ balances or uncollected premiums” attributable to the risks accepted.

3. OBLIGATIONS OF ACCEPTING COMPANY

     3.1. Liberty Mutual shall reimburse Golden Eagle for 100% of the losses, expenses,
assessments, taxes and dividends attributable to the risks accepted and shall maintain reserves
for 100% of Golden Eagle’s liabilities attributable to the risks accepted.

     3.2. The cessions and acceptances agreed to in this Agreement take effect with respect to
each risk insured under policies in force on or after the Effective Date.

     3.3. In addition, the cessions and acceptances agreed to in this Agreement are applicable to
the residual liabilities of Golden Eagle under all policies directly written by Golden Eagle and
in effect before the Effective Date which are classified in the National Association of Insurance
Commissioners (“NAIC”) form of annual statement as Workers’ Compensation. Liberty Mutual shall
extend its obligations to the end that it shall maintain reserves for its 100% quota share of
Golden Eagle’s residual liabilities attributable to risks accepted before the Effective Date.
Liberty Mutual shall reimburse Golden Eagle for its 100% quota share of payments made in
discharging such liabilities. As used in this Agreement, “residual liabilities”

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include losses, loss adjustment expenses, unearned premiums and any other assets and liabilities
attributable to the risks accepted under this Agreement.

4. TERMINATION

     This Agreement may be terminated by (i) either party giving the other at least 120 days
advance written notice of such party’s intent to terminate on a prospective basis or (ii)
otherwise by mutual agreement. Liberty Mutual shall remain liable hereunder with respect to all
cessions in force on the effective date of termination.

5. REINSURANCE PREMIUM

     Golden Eagle shall pay Liberty Mutual a reinsurance premium equal to 100% of Golden Eagle’s
premiums attributable to the risks reinsured.

6. ACCOUNTS; DISBURSEMENTS; OFFSET

     The net amount owed by each company to the other under this Agreement shall be determined no
less frequently than on a quarterly basis; and such amount shall be paid on presentation of
invoice covering settlement within 45 days after the close of the accounting period to which the
determination applies. Advances may be made as needed to comply with statutory requirements.
Reports of premiums and losses, and payment of losses, shall be provided no less frequently than
on a quarterly basis. Quarterly reports shall consist of premiums, losses, dividends, taxes and
other expenses in such detail as to enable each party to comply with statutory accounting
practices. Each party shall have, and may exercise at any time and from time to time, the right to
offset any balance or balances, whether on account of premiums, losses, expenses, assessments,
taxes, dividends or otherwise, due from such party to the other party under this Agreement or
under any other agreement heretofore or hereafter entered into by and between them, and may offset
the same against any balance or balances due to the former party from the latter party under the
same or any other agreement between them. Further, Liberty Mutual may withhold funds due to Golden
Eagle with interest credited at a rate equivalent to the comparable investment portfolio rate for
investment of new funds of Liberty Mutual plus twenty basis points.

7. OTHER REINSURANCE

     7.1. Each party to this Agreement has the right to obtain additional reinsurance (“Other
Reinsurance”), whether treaty or facultative, on the risks covered under this Agreement. All Other
Reinsurance obtained by Golden Eagle shall apply before this Agreement, and the collectible
proceeds from such Other Reinsurance shall inure to the benefit of this Agreement. The obligations
of Liberty Mutual under this Agreement shall apply without regard to any amounts of Other
Reinsurance which are determined to be uncollectible.

     7.2. Any party which is unable to obtain credit for Other Reinsurance on its statutory
financial statements shall bear its own penalty for such Other Reinsurance, notwithstanding the
cessions and acceptances agreed to in this Agreement.

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8. ACCESS TO RECORDS

     Each company, by its designated representatives, shall have free access at any reasonable time
to all records of the other company which pertain to the reinsurance provided under this Agreement.

9. SUBROGATION

     9.1. Golden Eagle hereby agrees to enforce such subrogation rights as it may obtain by virtue
of payments made under its policies, but in case it shall refuse or neglect to do so, Liberty
Mutual is hereby authorized and empowered to bring any appropriate action to enforce such rights.

     9.2. All subrogation recoveries, other recoveries, salvage or payments made subsequent to the
settlement of losses hereunder shall be applied as if made before such settlement and all
necessary adjustments to that end shall be made as soon as practicable.

     9.3. Each company shall have the right, before the happening of an occurrence, to waive its
right of subrogation.

10. INSOLVENCY

     In the event of insolvency and the appointment of a conservator, liquidator or statutory
successor of the ceding company, the portion of any risk or obligation assumed by the assuming
company under this Agreement shall be payable by the assuming company to the conservator,
liquidator or statutory successor on the basis of claims allowed against the insolvent ceding
company by any court of competent jurisdiction or by any conservator, liquidator or statutory
successor of the ceding company having authority to allow such claims, without diminution because
of that insolvency or because the conservator, liquidator or statutory successor has failed to pay
all or a portion of any claims. Payment by the assuming company as set forth in this section shall
be made directly to the ceding company or to its conservator, liquidator or statutory successor,
except: where the policy specifically provides another payee of such reinsurance in the event of
the insolvency of the ceding company. The conservator, liquidator or statutory successor of the
ceding company shall give the assuming company written notice of the pendency of a claim against
the ceding company indicating the policy reinsured, within a reasonable time after such claim is
filed. The assuming company may interpose, at its own expense, in the proceeding where such claim
is to be adjudicated, any defense or defenses which it may deem available to the ceding company or
its conservator, liquidator or statutory successor. The expense thus incurred by the assuming
company shall be payable subject to court approval out of the estate of the insolvent ceding
company as part of the expense of conservation or liquidation to the extent of a proportionate
share of the benefit which may accrue to the ceding company in conservation or liquidation, solely
as a result of the defense undertaken by the assuming company.

11. ARBITRATION

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     As a condition precedent to any right of action hereunder, any dispute arising out of this
Agreement shall be submitted to a board of arbitration composed of three arbiters, one arbiter to
be appointed by each of the parties and the third to be appointed by agreement of the two
previously appointed. The board shall meet in Boston, Massachusetts, unless otherwise agreed. The
claimant shall submit its initial brief within 20 days after the appointment of the last arbiter.
The respondent shall submit its brief within 20 days after receipt of the claimant’s brief. The
claimant may submit a reply brief within 10 days after receipt of the respondent’s brief. The board
shall issue its decision following a hearing in which evidence may be introduced without following
strict rules of evidence but in which cross examination and rebuttal shall be allowed. The board
shall make its decision having regard for the custom and usage of the property-casualty insurance
and reinsurance business and within 60 days after the end of the hearing, unless the parties agree
otherwise. A decision by a majority of the board shall be final and binding upon the parties. The
board shall not authorize any punitive, exemplary or consequential damages between the parties.
Judgment may be entered upon the decision of the board in any court of competent jurisdiction. Each
party shall bear the expenses of its own arbiter and its own legal and expert fees and expenses,
and both parties shall share equally in any other expenses of the arbitration proceedings.

12. ERRORS AND OMISSIONS

     Any inadvertent error or omission shall not be held to relieve any party hereto from any
liability which would attach to it hereunder if such error or omission had not been made. Any such
error or omission shall be rectified as soon as may be reasonably practicable after discovery.

13. REINSURANCE FOLLOWS ORIGINAL POLICIES

     It is the intention of the parties that the assuming company shall follow the fortunes of the
ceding company’s policies in every respect; and the assuming company’s reinsurance under this
Agreement shall be subject to the same terms, rates, conditions, waivers, modifications,
alterations and cancellations as the ceding company’s policies.

14. CURRENCY

     All transactions under this Agreement shall be made in United States dollars.

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15. TERRITORY

     The reinsurance provided under this Agreement shall be coextensive with the territory of the
policies reinsured hereunder.

16. UNAUTHORIZED REINSURANCE

     16.1. Notwithstanding any other provision of this Agreement to the contrary, if a pool member
becomes unauthorized in any State or Commonwealth of the United States of America or the District
of Columbia or any other jurisdiction where authorization is required by insurance regulatory
authorities in order for the other parties hereto to obtain credit on their statutory annual
statements for the reinsurance being provided hereunder, such pool member will establish such
escrow accounts, trust accounts for the benefit of the other parties hereto, letters of credit,
funds withheld by the other parties hereto, or a combination thereof as required by applicable law
or regulation to permit the other parties hereto to obtain credit for such reinsurance upon the
request of the other parties hereto if a penalty would accrue to the other parties hereto on their
statutory annual statement without such funding. The pool member shall have the option of
determining the method of funding to be utilized.

     16.2. The pool member shall promptly notify the other parties hereto of any loss of license
or authorization or other change or condition which may affect the ability of the other parties
hereto to obtain credit for such reinsurance.

17. GOVERNMENTAL APPROVAL

     This Agreement is conditional upon obtaining any required approval of applicable governmental
insurance regulatory authorities.

18. ENTIRE AGREEMENT; NO PROFIT GUARANTEE

     This Agreement represents the entire agreement and understanding among the parties with
respect to the subject matter hereof. No other oral or written agreements or contracts relating
to the risks reinsured hereunder currently exist or are contemplated to be legally binding among
the parties. This Agreement provides no guarantee of profit, directly or indirectly, from the
assuming company to the ceding company or from the ceding company to the assuming company. This
Agreement may be executed in multiple counterparts, each of which, when so executed and delivered
shall be an original, but such counterparts shall together constitute one and the same instrument
and agreement.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by
their duly authorized officers, as of the effective date hereof.

LIBERTY MUTUAL INSURANCE COMPANY

	 	 	 	 	 
	/s/ John D. Doyle
 	 	 
	Name:  	John D. Doyle 	 	 
	Title:  	Vice President and Comptroller 	 	 

Signature Date: 6/17/05

GOLDEN EAGLE INSURANCE CORPORATION

	 	 	 	 	 
	/s/ James F. Dore
 	 	 
	Name:  	James F. Dore 	 	 
	Title:  	Senior Vice President and Chief Financial Officer 	 	 

Signature Date: 6/21/05

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AMENDMENT NO. 1

(the “Amendment”)

TO

REINSURANCE AGREEMENT

(the “Agreement”)

by and between

LIBERTY MUTUAL INSURANCE COMPANY, a Massachusetts stock insurance company (“Liberty Mutual” or the
“assuming company”), and GOLDEN EAGLE INSURANCE CORPORATION (“Golden Eagle” or the “ceding
company”); (hereinafter together called the “Parties”).

WHEREAS, the Parties entered into the Agreement for Golden Eagle to cede 100% of Golden Eagle’s
risks which are classified as Workers’ Compensation according to the terms of the Agreement,
originally effective as of 12:01 A.M., Boston time, January 1, 2004.

WHEREAS, the Parties deem it necessary to amend certain provisions of the Agreement with respect to
settlement of amounts due between them.

NOW, THEREFORE, the Parties hereto agree to amend the Agreement, as follows:

Section 6 of the Agreement is amended and restated as follows: The first sentence of Section 6 is
deleted in its entirety and replaced with the following:

The net amount owed by each company to the other under this Agreement
shall he determined no less frequently than on a quarterly basis; and
such amount shall be paid on presentation of invoice covering
settlement within 45 days after the end of the calendar quarter to
which the determination applies.

IN WITNESS WHEREOF, the Parties hereto have caused
this Amendment No. 1 to the Agreement, effective
as of the 31st day of December, 2007 to be executed by their respective duly authorized officers.

 

 

	 	 	 	 	 	 	 

	Golden Eagle Insurance Corporation

	 	 	 	San Diego Insurance Company	 	 
	 
	 	 	 	 	 	 
	/s/ James F. Dore
 

By: James F. Dore

Its: Chief Financial Officer

	 	 
	 	/s/ James F. Dore
 

By: James F. Dore

Its: Chief Financial Officerexv10w157

EXHIBIT
10.157

WAUSAU RETROCESSION QUOTA SHARE CONTRACT

No. 2100400

EFFECTIVE APRIL 1, 2008

between and among

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Company”)

and

LIBERTY MUTUAL INSURANCE COMPANY

Boston, Massachusetts

(hereinafter referred to as the “Subscribing Reinsurer”)

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

OTH0800001

 

 

WAUSAU RETROCESSION QUOTA SHARE CONTRACT No. 2100400

	 	 	 	 	 
	Clause	 	Article Number	 	Page
	 
	ACCESS TO RECORDS
	 	14	 	4
	ARBITRATION
	 	15	 	5
	ASSIGNMENT, NOVATION, OR TRANSFER
	 	16	 	7
	BUSINESS COVERED
	 	1	 	1
	CONFIDENTIALITY CLAUSE
	 	17	 	8
	CURRENCY
	 	18	 	9
	DIVIDENDS AND TAXES
	 	19	 	9
	EFFECTIVE DATE AND TERMINATION
	 	2	 	1
	ENTIRE AGREEMENT
	 	20	 	9
	ERRORS OR OMISSIONS
	 	21	 	9
	EXCLUSIONS
	 	5	 	2
	EXTRA CONTRACTUAL OBLIGATIONS
	 	9	 	4
	FEDERAL EXCISE TAX
	 	22	 	9
	FEDERAL TERRORISM EXCESS RECOVERY
	 	23	 	10
	GOVERNING LAW
	 	24	 	10
	INSOLVENCY
	 	25	 	10
	INTEREST PENALTY
	 	26	 	11
	LIMIT OF LIABILITY
	 	4	 	2
	LOSS ADJUSTMENT AND SETTLEMENT
	 	10	 	4
	NET RETAINED LIABILITY
	 	3	 	2
	OFFSET
	 	27	 	12
	OTHER REINSURANCE
	 	8	 	3
	REINSURANCE CLAIMS OBLIGATIONS
	 	28	 	12
	RATES AND PREMIUM
	 	6	 	2
	REPORTS AND REMITTANCES
	 	7	 	3
	SALVAGE AND SUBROGATION
	 	11	 	4
	SERVICE OF SUIT
	 	29	 	12
	SEVERABILITY
	 	30	 	13
	SPECIAL CONDITIONS
	 	31	 	13
	TERRITORY
	 	12	 	4
	THIRD PARTIES
	 	32	 	15
	ULTIMATE NET LOSS
	 	13	 	4
	UNAUTHORIZED REINSURANCE
	 	33	 	16

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

 

 

WAUSAU RETROCESSION QUOTA SHARE CONTRACT

No. 2100400

(hereinafter referred to as the “Contract”)

between

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Company”)

and

LIBERTY MUTUAL INSURANCE COMPANY

Boston, Massachusetts

(hereinafter referred to as the “Subscribing Reinsurer”)

	ARTICLE 1 — BUSINESS COVERED

	A.	 	By this Contract, the Subscribing Reinsurer obligates itself to accept as reinsurance of the
Company and the Company obligates itself to cede to the Subscribing Reinsurer, 100% of the
Company’s Net Retained Liability on all business assumed by the Company from the following
Companies;
	 
	 	 	Employers Insurance Company of Wausau and/or Liberty Mutual Insurance Company,
	 
	 	 	under the terms and conditions of the following reinsurance contracts, hereinafter referred to
as “Original Assumed Contract(s)”:

	 	1.	 	Casualty Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 1000102
	 
	 	b.	 	Effective: 1/1/2008

	 	2.	 	Property Per Risk Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 0067314

	 	b.	 	Effective: 1/1/2008

	 	3.	 	Property Catastrophe Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: CM — 0067301/ AM — 0867301

	 	b.	 	Effective: 1/1/2008

	 	4.	 	Workers Compensation Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 0067332

	 	b.	 	Effective: 1/1/2008

	 	5.	 	First Casualty Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 0067330

	 	b.	 	Effective: 1/1/2008

	 	6.	 	Second Casualty Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 0067331

	 	b.	 	Effective: 1/1/2008

ARTICLE 2 — EFFECTIVE DATE AND TERMINATION

	A.	 	This Contract shall become effective at 12:01 a.m., April 1, 2008, Local Standard Time, and
shall end at 12:01 a.m., January 1, 2009, Local Standard Time.

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

Page 1 of 17

 

	B.	 	The Subscribing Reinsurer shall remain liable for business subject to this Contract, until
the expiration or termination of coverage under the terms and conditions of the Original
Assumed Contracts has concluded.

ARTICLE 3 — NET RETAINED LIABILITY

	A.	 	Net Retained Liability shall be defined as the difference between what the Company assumes
under the Original Assumed Contracts and what it cedes under the contracts in Article 8 —
Other Reinsurance.

	B.	 	The amount of the Subscribing Reinsurer’s liability in respect of any loss or losses shall be
increased by reason of the inability of the Company to collect from any other reinsurer(s),
whether specific or general, any amounts that may have become due from such reinsurer(s),
whether such inability arises from the insolvency of such reinsurer(s) or otherwise.

ARTICLE 4 — LIMIT OF LIABILITY

As respects business subject to this Contract the Company shall cede to the Subscribing Reinsurer
and the Subscribing Reinsurer agrees to accept 100% of the Company’s Net Retained Liability.

ARTICLE 5 — EXCLUSIONS

It is expressly understood and agreed that this Contract does not apply to the following:

Any special acceptance authorized by the Company under the terms and conditions of the Original
Assumed Contracts after April 1, 2008, which was not also approved by the Subscribing Reinsurer.

ARTICLE 6 — RATES AND PREMIUM

	A.	 	100% of the premium assumed by the Company under the terms and conditions of the Original
Assumed Contracts net of the premium paid by the Company for coverage of these risks under the
contracts included in Article 8 — Other Reinsurance.

	B.	 	For purposes of this Article, the premium paid by the Company for coverage of these risks
under the contracts included in Article 8 — Other Reinsurance, shall be calculated as follows:

	 	1.	 	Property Per Risk Excess of Loss Reinsurance Contract

	 	a.	 	.491% of 100% of the CMP (property) earned premium used in the Property
Per Risk Excess of Loss Contract, defined in Article 1 — Business Covered,
paragraph A.2
	 
	 	b.	 	Estimated premium $246,195

	 	2.	 	Clash Excess of Loss Reinsurance Contract

	 	a.	 	.072% of 100% of the WC earned premium used in the Casualty Excess of Loss Contract,
defined in Article 1 — Business Covered, paragraph A.1
	 
	 	b.	 	Estimated premium $579,600

	 	3.	 	Umbrella, Lead Excess and Excess Capacity Reinsurance Contract

	 	a.	 	6.438% of 100% of the Other Liability Umbrella earned premium used in
the Casualty Excess of Loss Contract, defined in Article 1 — Business Covered,
paragraph A.1
	 
	 	b.	 	Estimated premium $1,135,200
	 
	 	c.	 	Commission shall be allowed at 27.5%

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

Page 2 of 17

 

	 	4.	 	Property Catastrophe Excess of Loss Reinsurance Contract

	 	a.	 	50% of .941% of 100% of the CMP (property) earned premium used in the
Property Catastrophe Excess of Loss Contract, defined in Article 1 — Business
Covered, paragraph A.3
	 
	 	b.	 	90% of .234% of 100% of the CMP (property) earned premium used in the
Property Catastrophe Excess of Loss Contract, defined in Article 1 — Business
Covered, paragraph A.3
	 
	 	c.	 	Estimated premium $235,916

	 	5.	 	Workers Compensation Excess of Loss Reinsurance Contract

	 	a.	 	100% of the premium assumed in the Workers Compensation Excess of
Loss Contract, defined in Article 1 — Business Covered, paragraph A.4

	 	6.	 	First Casualty Excess of Loss Reinsurance Contract

	 	a.	 	100% of the premium assumed in the First Casualty Excess of Loss
Reinsurance Contract, defined in Article 1 — Business Covered, paragraph A.5

	 	7.	 	Second Casualty Excess of Loss Reinsurance Contract

	 	a.	 	100% of the premium assumed in the Second Casualty Excess of Loss
Reinsurance Contract, defined in Article 1 — Business Covered, paragraph A.6

ARTICLE 7 — REPORTS AND REMITTANCES

	A.	 	The Company shall furnish the Subscribing Reinsurer with all necessary data respecting
premiums and losses for as long as one of the parties hereto has a claim against the other
arising from this Contract.

	B.	 	Deposit Premium equal to 1/3 of the estimated premium will be remitted on April 15, July 15
and October 15. The Company shall submit finalized accounts to the Subscribing Reinsurer no
later than February 15, of the subsequent year, summarizing the actual subject earned premium
for the previous contract year. The difference between the deposit premium and the actual
premium will be settled to or from the Company within 15 days of February 15.

	C.	 	Payment by the Subscribing Reinsurer of its portion of Loss and Loss Adjustment Expenses paid
by the Company shall be made by the Subscribing Reinsurer to the Company immediately upon
reasonable evidence of the amount due or to be due, being furnished by the Company.

ARTICLE 8 — OTHER REINSURANCE

	A.	 	It is understood and agreed that the Company is permitted to have other treaty reinsurance.
Any premium paid for any such reinsurance that inures to the benefit of this Contract shall be
deducted from the premium due for this Contract.
	 
	B.	 	The following contracts inure to the benefit of this Contract;

	 	1.	 	Property Per Risk Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 2008280
	 
	 	b.	 	Effective 1/1/2008

	 	2.	 	Clash Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 2008260
	 
	 	b.	 	Effective 1/1/2008

	 	3.	 	Umbrella, Lead Excess and Excess Capacity Reinsurance Contract

	 	a.	 	Contract Number: 2008315
	 
	 	b.	 	Effective 1/1/2008

	 	4.	 	Property Catastrophe Excess of Loss Reinsurance Contract

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

Page 3 of 17

 

	 	a.	 	Contract Number: 2008250

	 	b.	 	Effective 1/1/2008

	 	5.	 	Workers Compensation Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 2008300

	 	b.	 	Effective 1/1/2008

	 	6.	 	First Casualty Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 2008158

	 	b.	 	Effective 1/1/2008

	 	7.	 	Second Casualty Excess of Loss Reinsurance Contract

	 	a.	 	Contract Number: 2008159

	 	b.	 	Effective 1/1/2008

ARTICLE 9 — EXTRA CONTRACTUAL OBLIGATIONS

“Extra Contractual Obligations” shall follow the terms and conditions of each Original Assumed
Contract.

ARTICLE 10 — LOSS ADJUSTMENT AND SETTLEMENTS

“Loss Adjustment and Settlements” shall follow the terms and conditions of each Original Assumed
Contract.

ARTICLE 11 — SALVAGE AND SUBROGATION

“Salvage and Subrogation” shall follow the terms and conditions of each Original Assumed Contract.

ARTICLE 12 — TERRITORY

“Territory” shall follow the terms and conditions of each Original Assumed Contract.

ARTICLE 13 — ULTIMATE NET LOSS

“Ultimate Net Loss” shall follow the terms and conditions of each Original Assumed Contract.

ARTICLE 14 — ACCESS TO RECORDS (LM-00100-2007.12.26-A)

	A.	 	Except as otherwise provided in this Article, the Subscribing Reinsurer, or its
duly authorized representative, may upon reasonable prior written notice to the Company, at
the Subscribing Reinsurer’s own expense, examine at the offices of the Company or its
affiliates, during normal office hours, the Company’s Policy, accounting, underwriting, or
claim records and files, or any such additional relevant records and files, as they exist in
the Company’s or its affiliates’ possession or reasonable control, relating to business ceded
under this Contract. The Subscribing Reinsurer’s notice shall reasonably describe the nature
of the inspection that it wishes to conduct, the persons conducting the inspection and upon
notice of available files from the Company, the files that it wishes to review. Subject to the
limitations expressed in this Article, this right of inspection shall survive termination or
expiration of this Contract and shall continue as long as either Party has any rights or
obligations under this Contract.

	B.	 	The Company reserves the right to deny the Subscribing Reinsurer access to records or files
concerning any particular claim(s) if the Subscribing Reinsurer has not disputed liability for
payment of such claim(s), and payment of such claim(s) is more than ninety (90) days overdue
according to the Company’s records. The Company shall, however, prior to an arbitration demand
that may be instituted by either party,

			
	 	 	 
	Effective: April 1, 2008
	 	Wausau Retrocession Quota Share Contract

Page 4 of 17

 

	 	 	continue to respond to reasonable specific requests for information and questions raised by
the Subscribing Reinsurer concerning such claims; and nothing in this Article shall restrict
the right or ability of the Subscribing Reinsurer to seek discovery of relevant information in
an arbitration proceeding pursuant to the Arbitration Article of this Contract.
	 
	C.	 	As a condition precedent to access to records under this Article, the Subscribing Reinsurer,
its personnel and any authorized third party representative of the Subscribing Reinsurer shall
agree to the provisions of the Confidentiality Article of this Contract.
	 
	D.	 	The Company reserves the right to withhold any documents from the Subscribing Reinsurer (1)
concerning Trade Secrets of the Company or its affiliates, (2) subject to the terms of a third
party non-disclosure agreement with the Company or its affiliates requiring third party
consent to disclosure, (3) subject to the Work Product Privilege or Attorney-Client Privilege
or (4) concerning individual private information that as a matter of law cannot be disclosed
by the Company or its affiliates (hereinafter referred to in the Contract as “Privileged
Documents”). The Company shall reasonably try to exempt the Subscribing Reinsurer from any
third party non-disclosure agreement or obtain consent from the third party to disclose to the
Subscribing Reinsurer.
	 
	E.	 	Notwithstanding the foregoing, the Company shall permit and not object to the Subscribing
Reinsurer’s access to Privileged Documents falling within (3) above, in connection with the
underlying claim reinsured hereunder following final settlement or final adjudication of the
case or cases involving such claim, with prejudice against all claimants, and all parties to
such adjudications; provided that the Company, may defer release of such Privileged Documents
if there are subrogation, contribution, or other third party actions with respect to that
claim or case, which might jeopardize the Company’s or its affiliates’ defense by release of
such Privileged Documents. In the event that the Company shall seek to defer release of such
Privileged Documents or to withhold documents concerning Trade Secrets, it will in
consultation with the Subscribing Reinsurer take other steps as reasonably necessary to
provide the Subscribing Reinsurer with the information it reasonably requires to indemnify the
Company without causing a loss of such privileges or protections. The Subscribing
Reinsurer, however, shall not have access to Privileged Documents relating to any dispute
between the Company and the Subscribing Reinsurer.
	 
	F.	 	For purposes of this Article, “Trade Secrets” shall have the meaning provided in Section 1839
of the United States Economic Espionage Act of 1996. “Attorney-Client Privilege” shall mean
communications of a confidential nature between (1) the Company or its affiliates, or anyone
retained by or in the control of the Company, or its affiliates, or their in-house or outside
legal counsel, or anyone in the control of such legal counsel, and (2) any in-house or outside
legal counsel which relate to legal advice being sought by the Company or its affiliates
and/or which contains legal advice being provided to the Company or its affiliates. “Work
Product Privilege” shall mean communications, written materials and tangible things prepared
by or for in-house or outside counsel, or prepared by or for the Company or its affiliates, in
anticipation of or in connection with litigation, arbitration, or other dispute resolution
proceedings.

ARTICLE 15 — ARBITRATION (LM-00200-2007.05.03-A)

	A.	 	Disputes to be Arbitrated. With the exception of any dispute resolution procedures
that are otherwise contained in this Contract, any and all disputes between the Company and
any Subscribing Reinsurer or Reinsurers (“Party” individually or “Parties” collectively)
arising out of, relating to, or concerning this Contract, whether sounding in contract or tort
and whether arising during or after this Contract’s formation, or after its termination,
including disputes as to whether the Contract was validly formed or is voidable, shall be
submitted to the decision of an arbitration panel (“Panel”). The Panel shall consist of an
umpire and two party-appointed arbitrators unless a Party meets the requirements of Paragraph
C of this Article and demands arbitration pursuant thereto, in which case the Panel would
consist of an umpire only.

	B.	 	Procedures. Except as provided herein, any arbitration shall be based upon the
Procedures for the resolution of U.S. Insurance and Reinsurance Disputes, Regular Panel
Version, dated April 2004 (the “Procedures”), developed by the Insurance and Reinsurance
Dispute Resolution Task Force, subject to the following modifications:

			
	 	 	 
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	 	1.	 	Qualifications of the arbitrators and umpires shall be in accordance with Alternative
section 6.2 of the Procedures.
	 
	 	2.	 	The Parties hereby designate the umpire list maintained by ARIAS (U.S.) as the list
to be used in the event that section 6.7(a) of the Procedures is invoked.
	 
	 	3.	 	Unless otherwise mutually agreed, the members of the Panel shall be impartial and
disinterested. The members of the Panel may not be: (1) in the control of any Party or its
parent, affiliate, or agent, (2) a former director or officer of any Party or its parent,
affiliate, or agent, or (3) a likely witness in the arbitration. The requirement of
impartiality means that all members of the Panel shall have the same obligation to
approach the Panel’s duties and decisions with fairness and without consideration for the
fact that Panel members may have been appointed by one of the Parties. The requirement of
impartiality does not mean that any arbitrator can have no previous knowledge of or
experience with respect to issues involved in the dispute or disputes.
	 
	 	4.	 	The first sentence of Section 10.4 of the Procedures shall be replaced by the
following sentence: “The Panel shall require that each Party submit concise written
statements of position, including summaries of the facts and evidence a Party intends to
present, discussion of the applicable law and the basis for the requested Award or denial
of relief sought.”
	 
	 	5.	 	Once the Panel has been constituted, no Party (or anyone acting for a Party) shall
have any communications concerning the arbitration or any of the issues before the Panel
with any member of the Panel that is not also disclosed to all other Parties and all
members of the Panel. Each Panel member shall have a continuing duty to disclose
promptly to all Parties and all Panel members any violation of this prohibition and the
specifics of any improper communications that occurred. This prohibition shall remain in
place until all challenges to any arbitration awards and decisions have been either waived
or finally concluded.
	 
	 	6.	 	Section 11.1 of the Procedures shall be replaced by the following provision: “The
Parties may propound discovery seeking disclosure of such information and/or documents
relevant to the dispute or, necessary for the proper resolution of the dispute.”
	 
	 	7.	 	Position statements may be amended at any reasonable time, but not later than the
close of discovery without a showing to the Panel that the amending Party could not
reasonably have raised the new claim or issue at an earlier time.
	 
	 	8.	 	The Panel shall hold an evidentiary hearing, if one is necessary, within one year of
the arbitration demand, unless the Parties otherwise agree. Should a Party seek a
reasonable extension to this time frame for good cause shown, the other Party’s agreement
shall not be unreasonably withheld.
	 
	 	9.	 	To the extent permitted by the law, the Panel shall have the authority to issue
subpoenas and other orders to enforce its decisions.
	 
	 	10.	 	The Panel may award reasonable attorneys’ fees and arbitration costs to the
prevailing Party, as determined by the Panel.
	 
	 	11.	 	Section 14.3 of the Procedures shall be replaced by the following provision: “The
Panel shall make a decision and issue an award with regard to the terms expressed in this
Contract, and the custom and practice of the property and casualty insurance and
reinsurance business. The Panel shall not be obligated to follow the strict rules of law
and evidence.”

	C.	 	Alternative Streamlined Procedures. Notwithstanding the foregoing provisions of this
Article, the Alternative Streamlined Procedures set forth in section 16 of the Procedures, as
modified by sections B3, B4, and B9 through B11 of this Article, shall apply in the event
that, in a consolidated proceeding or otherwise, the Party initiating arbitration is seeking
payment of a total amount that is no greater than one million dollars ($1,000,000), or the
currency equivalent thereof. Sections 16.1, 16.2, 16.3 and the second sentence of section 16.4
of the Alternative Streamlined Procedures shall not apply. The Parties agree to

			
	 	 	 
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	 	 	comply with section 6.7 of the Procedures to appoint a single umpire, and hereby designate the
umpire list maintained by ARIAS (U.S.) as the list to be used in section 6.7(a).
	 
	D.	 	Hearing Location. The hearing shall be held in Boston, Massachusetts, unless the
Parties mutually agree to a different location.
	 
	E.	 	Confirmation. Either Party may apply to a court of competent jurisdiction for an
order confirming any award of the Panel; a judgment of that court shall thereupon be entered
on any award. If such an order is issued, the Party against whom confirmation is sought shall
pay the attorneys’ fees incurred of the Party who applied for the confirmation order and all
court costs of any such proceeding.
	 
	F.	 	Equitable Relief from a Court of Law. Nothing herein shall be construed to prevent
any participating Party from applying to a court of competent jurisdiction to issue a
restraining order or other equitable relief to maintain the “status quo” of the Parties
participating in the arbitration pending the decision and award by the Panel.
	 
	G.	 	Consolidated Proceedings.

	 	1.	 	Same contract, single Subscribing Reinsurer. Both the Company and any single
Subscribing Reinsurer on this Contract have the right to combine any and all disputes
between them that concern this Contract (including any renewal of this Contract or any
contract for which this Contract is a renewal) into a single arbitration proceeding before
a single Panel, except that the standard for determining whether a Party may add a new
issue, claim, or dispute to an arbitration proceeding shall be the standard for amending a
Position statement, as set forth in Paragraph B7 of this Article.
	 
	 	2.	 	Multiple contracts, single Subscribing Reinsurer. The Company has the right to
combine any and all disputes between the Company and a single Subscribing Reinsurer into
a single arbitration proceeding before a single Panel where such disputes involve this
Contract and any additional contracts between the two Parties, except that the standard
for determining whether a Party may add a new issue, claim, or dispute to an arbitration
proceeding shall be the standard for amending a Position statement, as set forth in
Paragraph B7 of this Article.
	 
	 	3.	 	Same contract, multiple Reinsurers. At the Company’s option, if more than one
Subscribing Reinsurer is involved in arbitration relating to this Contract, where there
are common questions of law or fact and a possibility of conflicting awards or
inconsistent results, all such Reinsurers shall constitute and act as one Party for
purposes of this Article and communications shall be made by the Company to each of the
Reinsurers constituting the one Party; provided, however, that the Reinsurers shall have
the right to assert several, rather than joint defenses or claims, and to be represented
by separate counsel. This provision shall not change the liability of each of the
Reinsurers under the terms of this Contract from several to joint.

	H.	 	Choice of Law. The law set forth in the Governing Law Article shall apply to this
Arbitration Article. In addition, to the extent the Panel (or the umpire in an Alternative
Streamlined Procedure) looks to applicable law, such Panel or umpire shall apply the law as
set forth in the Governing Law Article of this Contract.

	I.	 	Survival of Article. This Article shall survive the termination or expiration of
this Contract.

ARTICLE 16 — ASSIGNMENT, NOVATION, OR TRANSFER (LM-00300-2007.10.05-A)

This Contract shall be binding upon and inure to the benefit of the Company and the Subscribing
Reinsurer and their respective successors and assigns provided, however, that this Contract may
not be assigned, novated or transferred, including any attempted transfer of rights and/or
obligations under any U.S. or foreign statute, legislation or jurisprudence, by either the
Company or the Subscribing Reinsurer, or as the result of the actions of a parent company or
affiliated entity of either, without the prior written consent of the other. In the event of
any assignment, novation or transfer, the assignor, novator or transferor shall remain

			
	 	 	 
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liable under this Contract, and further guarantees the performance of all obligations of any
assignee, novatee or transferee under this Contract. Notwithstanding the foregoing, the Company
may assign this Contract to an affiliated entity, without the Subscribing Reinsurer’s written
consent.

ARTICLE 17 — CONFIDENTIALITY (LM-00400-2007.12.05-A)

	A.	 	Confidential Information. The submission materials, and any Policy, financial,
underwriting, accounting, and claims information, data statements, representations, and other
materials provided by the Company or it affiliates and received by the Subscribing Reinsurer
in the course of an audit, inspection, or otherwise, represent confidential or proprietary
information (“Confidential Information”). This Confidential Information is intended for the
sole use of the Subscribing Reinsurer (and its retrocessionaires, respective auditors,
accountants, and legal counsel) as may be necessary in analyzing and/or accepting a
participation in and/or executing its responsibilities under or related to this Contract.
The Subscribing Reinsurer acknowledges and agrees that with respect to any review of
Confidential Information by the Subscribing Reinsurer, and/or discussion of Confidential
Information, the Company and its affiliates do not waive and do not intend to waive any
available privilege or protection. The review of Confidential Information by the Subscribing
Reinsurer and/or discussion of Confidential Information with the Company or its affiliates
shall not destroy, waive, or otherwise impair the proprietary and/or protected status of any
Confidential Information or any information revealed in such discussion with the personnel of
the Company or its affiliates, whether reviewed by and/or discussed with the
Subscribing Reinsurer intentionally or inadvertently, nor does the review of the
Confidential Information and/or discussion of Confidential Information with the Company or its
affiliates constitute an estoppel or waiver of the Company’s or its affiliates’ rights to
assert the attorney-client or work-product privileges, or any other applicable privilege or
protection, over certain documents contained in the Company’s or its affiliates’ files and/or
certain information.

	B.	 	The Company and the Subscribing Reinsurer agree that no confidentiality obligations will
apply to Confidential Information to the extent such Confidential Information: (1) is or
becomes available to the public, other than as a result of impermissible disclosure by the
Subscribing Reinsurer, (2) was or became available lawfully to the Subscribing Reinsurer from
a source, other than the Company, its affiliates or their personnel, that is not subject to a
confidentiality obligation, (3) was developed independently by the Subscribing Reinsurer
prior to disclosure by the Company, its affiliates or their personnel, as
demonstrated by the Subscribing Reinsurer’s records, or (4) is required to be disclosed by
law, regulation, court, or regulatory agency action, subject to the Third-Party Demand
paragraph of this article.

	C.	 	The Subscribing Reinsurer agrees to preserve all confidentiality and privilege pertaining to
all Confidential Information provided by the Company and all knowledge and information gained
through its review of Confidential Information or discussions with the personnel of the
Company or its affiliates. The Subscribing Reinsurer further agrees not to disclose any
such Confidential Information to any other person or entity except as such disclosure may be
necessary to its retrocessionaires, accountants, attorneys, auditors, actuaries or third party
catastrophe modelers or as otherwise required by law. The Subscribing Reinsurer agrees that no
Confidential Information is to be copied and/or removed from the Company’s or its affiliates’
premises without the express permission of the Company.

	D.	 	Non-Public Personally Identifiable Information. Additionally, any disclosure of
non-public personally identifiable information shall comply with all state and federal
statutes and regulations governing the disclosure of non-public personally identifiable
information. “Non-public personally identifiable information” is financial or medical
information of or concerning a private person which either has been obtained from sources
which are not available to the general public or obtained from the person who is the subject
and which information is included in data files exchanged by the parties hereto. For the
purposes hereof, the terms shall include data elements such as names and addresses of
individuals. Disclosing or using this information for any purpose beyond the scope of this
Contract, or beyond the exceptions set forth above, is expressly forbidden without the prior
consent of the Company.

	E.	 	Third-Party Demand. Should the Subscribing Reinsurer receive a third-party demand
pursuant to subpoena, summons, or court or governmental order, to disclose Confidential
Information (including Non-public personally identifiable information) that has been provided
by the Company or its affiliates, the Subscribing Reinsurer shall make commercially reasonable
efforts to notify the Company promptly upon

			
	 	 	 
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	 	 	receipt of the demand and prior to disclosure of the Confidential Information and provide the
Company a reasonable opportunity to object to the disclosure. If the Company timely objects to
the release of the Confidential Information, the Subscribing Reinsurer will comply with the
reasonable requests of the Company in connection with the Company’s efforts to resist release
of the Confidential Information. The Company shall bear the cost of resisting the release of
the Confidential Information.
	 
	F.	 	Survival. The parties agree that the obligations contained in this Article
shall survive the expiration or termination of this Contract.

ARTICLE 18 — CURRENCY (LM-00500-2005.08.09)

Whenever a reference to a monetary currency appears in this Contract, it shall be construed to
mean United States Dollars (“USD”). However, in those cases where the Policies are issued by the
Company using Canadian Dollars (“CAD”), it shall mean Canadian Dollars. All payments made by
either party shall be made in United States Dollars except that payments made involving Policies
issued using Canadian Dollars shall be made in Canadian Dollars. All amounts paid or received by
the Company in any other currency shall be converted into United States Dollars at the rate of
exchange on the date at which it is entered on the books of the Company.

ARTICLE 19- DIVIDENDS AND TAXES (LM-00600-2005.06.02-A)

In consideration of the terms of this Contract, the Company shall not claim any deduction in
respect of any amount paid as dividends or as reinsurance premium when making tax returns, other
than income or profits tax returns to any State or to the District of Columbia.

ARTICLE 20 — ENTIRE AGREEMENT (LM-00701-2005.08.24-A)

This Contract shall constitute the entire agreement between the Company and the Subscribing
Reinsurer with respect to the subject matter of this Contract and shall supersede all prior
understandings, negotiations and discussions, whether oral or written, by or between the Company
and the Subscribing Reinsurer relating to the subject matter hereof. There are no general or
specific warranties, representations or other agreements by or among the Company and the
Subscribing Reinsurer in connection with entering into this Contract except as specifically set
forth in this Contract. Notwithstanding the foregoing, this Contract may be amended or modified
only by a writing signed by both the both the Company and the Subscribing Reinsurer.

ARTICLE 21 — ERRORS AND OMISSIONS (LM-00800-2005.06.02-A)

Any inadvertent delay, omission, or error in complying with the terms and conditions of this
Contract shall not be held to relieve either party hereto from any liability, which would attach
to it hereunder if such delay, omission, or error had not been made, provided such delay,
omission, or error is rectified upon discovery.

ARTICLE 22 — FEDERAL EXCISE TAX (LM-01000-2005.08.24-A)

	A.	 	This Article is applicable to any Subscribing Reinsurer who is domiciled outside of the
United States of America, except for any Subscribing Reinsurer exempt from Federal Excise Tax.
A Subscribing Reinsurer that claims exempt status from Federal Excise Tax shall provide to the
Company, upon its request, proof that the exempt status adequately satisfies the demands of
the U.S. Internal Revenue Service, Department of the Treasury, or its successor and/or
other applicable U.S. government authority.

	B.	 	Each Subscribing Reinsurer shall allow the applicable percentage of the premium payable
hereon (as imposed under Section 4371 of the Internal Revenue Code) for the purpose of paying
Federal Excise Tax to the extent such premium is subject to such tax.

			
	 	 	 
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	C.	 	In the event of any return of premium, the Subscribing Reinsurer shall deduct the
aforesaid percentage from the return premium payable hereon and the Company or its agent
shall recover such tax from the United States Government.

ARTICLE 23 — FEDERAL TERRORISM EXCESS RECOVERY (LM-01100-2007.12.28-A)

	A.	 	Any loss reimbursement the Company receives from the United States Government under the
Terrorism Risk Insurance Act of 2002 and any subsequent amendments thereto (“TRIA”) as a
result of loss occurrences commencing during the term of this Contract shall apply as follows:
	 
	B.	 	Except as provided below, any loss reimbursement under TRIA shall inure solely to the benefit
of the Company and shall be entirely disregarded in applying all of the provisions of this
Contract.
	 
	C.	 	If one or more loss occurrences commencing during the term of this Contract result(s) in
reinsurance recoveries to the Company under this Contract and reimbursement under TRIA, and
such amounts, together with any other reinsurance recoveries to the Company for said loss
occurrence(s), exceed the total amount of “Insured Losses” to the Company, any amount in
excess thereof shall be held by the Company. The Company shall then reimburse the
Subscribing Reinsurer a portion of such excess recovery in an amount equal to the proportion
that the Subscribing Reinsurer’s payment under this Contract bears to the total treaty
reinsurance recoveries to the Company for Insured Losses for said loss occurrence(s).
Provided, however, that in no event shall such reimbursement exceed the amount paid by the
Subscribing Reinsurer to the Company under this Contract.
	 
	D.	 	For purposes hereof, if a loss reimbursement received by the Company under TRIA is based on
the Company’s Insured Losses in more than one loss occurrence and neither the Secretary of the
Treasury nor his delegate specifies the amount of loss allocable to each respective
loss occurrence, the reimbursement shall be pro-rated in the proportion that the Company’s
Insured Losses in each loss occurrence bears to the Company’s total Insured Losses resulting
from all loss occurrences to which the reimbursement applies.
	 
	E.	 	For purposes of this Article, “Insured Loss (es)” shall have the same
meaning as set forth in Section 102(5) of TRIA.

ARTICLE 24 — GOVERNING LAW (LM-01200-2005.06.02-A)

The validity and interpretation of this Contract shall be governed by and construed in accordance
with the law of the Commonwealth of Massachusetts.

ARTICLE 25 — INSOLVENCY (LM-01300-2005.08.24-A)

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

	A.	 	In the event of the insolvency of the Company, reinsurance under this Contract shall be
payable on demand, with reasonable provision for verification, on the basis of claims allowed
against the insolvent Company by any court of competent jurisdiction or by any liquidator,
receiver, conservator, or statutory successor of the Company having authority to allow such
claims, without diminution because of such insolvency or because such liquidator, receiver,
conservator, or statutory successor has failed to pay all or a portion of any claims. Such
payments by the Subscribing Reinsurer shall be made directly to the Company or its
liquidator, receiver, conservator, or statutory successor, except to the extent Section
4118(a) of the New York Insurance Law applies, or except (a) where the Contract specifically
provides another payee of such reinsurance in the event of the insolvency of the Company, or
(b) where the

			
	 	 	 
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	 	 	Subscribing Reinsurer with the consent of the direct insured or insureds has assumed such
Policy obligations of the Company as direct obligations of the Subscribing Reinsurer to the
payees under such Policies and in substitution for the obligations of the Company to such
payees.
	 
	B.	 	It is agreed, however, that the liquidator, receiver, conservator, or statutory successor of
the insolvent Company shall give written notice to the Subscribing Reinsurer of the pendency
of a claim against the insolvent Company on the Policy or Policies reinsured within a
reasonable time after such claim is filed in the insolvency proceeding and that during the
pendency of such claim the Subscribing Reinsurer may investigate such claim and interpose, at
its own expense, in the proceeding where such claim is to be adjudicated, any defense or
defenses which it may deem available to the Company or its liquidator, receiver, conservator,
or statutory successor. The expense thus incurred by the Subscribing Reinsurer shall be
chargeable, subject to court approval, against the insolvent Company as part of the expense of
liquidation to the extent of a proportionate share of the benefit, which may accrue to the
Company solely as a result of the defense undertaken by the Subscribing Reinsurer.
	 
	C.	 	Where two or more Reinsurers are involved in the same claim and a majority in interest elects
to interpose defense to such claim, the expense shall be apportioned in accordance with the
terms of this Contract as though such expense had been incurred by the insolvent Company.

ARTICLE 26 — INTEREST PENALTY (LM-01400-2005.08.24-A)

	A.	 	The interest amounts provided for in this Article shall apply to the Subscribing Reinsurer or
to the Company in the following circumstances:

	 	1.	 	If a loss payment owed by the Subscribing Reinsurer to the Company is not received
within 45 calendar days following the date of presentation to the Subscribing Reinsurer of
information necessary to approve payment of the claim, and/or
	 
	 	2.	 	If any premium payment owed by the Company to the Subscribing Reinsurer is not
received within 45 calendar days following the date on which payment is due, and/or
	 
	 	3.	 	If any premium adjustment, agreed by either Party to the other, is not received
within 150 calendar days following the expiry or anniversary of this Contract, and/or
	 
	 	4.	 	If any return of premiums, commissions, profit sharing, or any amounts not
provided in subparagraphs 1, 2, and 3 above, are not received in accordance with the
date specified in this Contract or if no date is specified, within 90 calendar days
following the date the debtor Party received the billing.

	B.	 	Failure by the Subscribing Reinsurer or Company to comply with their respective payment
obligations within the time periods as herein provided shall, as of that date, be subject to
an interest payment computed by multiplying the amount due by a variable rate consisting of
the U.S. Prime Rate as published in the Eastern Edition of The Wall Street Journal on
the first day of the calendar month in which the amount became past due, plus 2%. The
variable rate shall be adjusted monthly thereafter to equal the U.S. Prime Rate as published
in the Eastern Edition of The Wall Street Journal on the first day of each successive
month during which the amount due remains unpaid, plus 2%. The product shall then be
multiplied by 1/365 for each day after the due date that the amount due and the interest
amount remain unpaid. Any interest that occurs pursuant to this Article shall be calculated
by the Party to which it is owed.

	C.	 	The validity of any claim or payment may be contested under the provisions of this Contract.
If the debtor Party prevails in arbitration or any other proceeding with respect to the
amounts in dispute, there shall be no interest penalty due. If the creditor Party wholly or
partially prevails on any of the amounts in dispute, the interest penalty shall be awarded as
outlined above. Such interest penalty shall be calculated from the date the monies were due
and owing to the date of resolution of the arbitration or proceeding, and shall be payable as
of the date of resolution of the arbitration or proceeding.

			
	 	 	 
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	D.	 	If a Subscribing Reinsurer advances the entire or partial payment of any claim it is
contesting, and wholly or partially prevails in the contest, the Company shall promptly return
the applicable amount of such payment. The arbitrator(s) hearing such dispute shall determine
if interest shall be added to the amount returned by the Company.
	 
	E.	 	Any interest owing pursuant to this Article may be waived by the Party to which it is owed.
Further, any interest calculated pursuant to this Article that is $100 or less shall be
waived. Any waiver of any interest pursuant to this paragraph, however, shall not affect the
waiving Party’s right to claim and/or pursue interest for any other failure by the other Party
to make payment when due under this Article.

ARTICLE 27 — OFFSET (LM-01700-2005.06.02-A)

Each party to this Contract together with their successors or assigns shall have and may exercise,
at any time, the right to offset any balance(s) due the other (or, if more than one, any other).
Such offset may include balances due under this Contract, and any other contracts between the
parties, whether such balances arises from premium, losses, or otherwise, and regardless of the
capacity of any party, whether as assuming and/or ceding insurer, under the various reinsurance
contracts involved, provided however, that in the event of insolvency of a party hereto, offsets
shall only be allowed in accordance with the provisions of the applicable law, statute, or
regulation governing such offset.

ARTICLE 28 — REINSURER CLAIMS OBLIGATIONS (LM-03100-2007.10.10-A)

It is understood and agreed that the Subscribing Reinsurer will fulfill its obligations under the
Loss Adjustment and Settlement Article, until all claims have been reported and settled. Without
first obtaining the Company’s written consent, the Subscribing Reinsurer will not, either directly
or as the result of an action of a parent company or an affiliated entity, invoke any U.S. or
foreign statute, legislation, or jurisprudence that purports to enable the Subscribing Reinsurer
to require the Company to settle its claims liabilities, including but not limited to any
estimated or undetermined claims liabilities, under this Contract on an accelerated basis. It is
further expressly understood and agreed that in the event the Subscribing Reinsurer attempts to
require the Company to settle its claims liabilities on an accelerated basis, the Company shall
continue to have the right to utilize or to draw upon Letters of Credit or other collateral, under
the terms of this Contract. This Article does not prevent the Company and the Subscribing
Reinsurer from settling any claims liabilities using a commutation process that is agreeable to
both parties. This Article shall in no way affect the rights and obligations of the Company and
the Subscribing Reinsurer under the Insolvency Article.

ARTICLE 29 — SERVICE OF SUIT (LM-01900-2005.08.24-A)

(This article applies to unauthorized Reinsurers and to Reinsurers who are domiciled outside the
United States of America.)

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

	B.	 	In the event of the failure of the Subscribing Reinsurer to pay any amount claimed to be due
hereunder, the Subscribing Reinsurer, at the request of the Company, will submit to the
jurisdiction of a Court of competent jurisdiction within the United States. Nothing in this
Article constitutes or should be understood to constitute a waiver of the Subscribing
Reinsurer’s right to commence an action in any Court of competent jurisdiction in the United
States, to remove an action to a United States District Court, or to seek a transfer of a case
to another Court as permitted by the laws of the United States or of any state in the United
States. The Subscribing Reinsurer, once the appropriate Court is selected, whether such court
is the one originally chosen by the Company and accepted by the Subscribing Reinsurer or is
determined by removal, transfer, or otherwise, as provided for above, will comply with all
requirements necessary to

			
	 	 	 
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	 	 	give said Court jurisdiction and, in any suit instituted against any of them upon this
Contract, will abide by the final decision of such Court or of any Appellate Court in the
event of an appeal.
	 
	C.	 	Service of process in such suit may be made upon; Mendes & Mount, LLP, 750 Seventh Avenue,
New York, NY 10019-6829.)
	 
	D.	 	The above-named are authorized and directed to accept service of process on behalf of the
Subscribing Reinsurer in any such suit. Further, pursuant to any statute of any state,
territory, or district of the United States that makes provision therefore, the Subscribing
Reinsurer hereby designates the Superintendent, Commissioner, or Director of Insurance, or
other officer specified for that purpose in the statute, or their successor(s) in office, as
their true and lawful attorney upon whom may be served any lawful process in any action, suit,
or proceedings instituted by or on behalf of the Company or any beneficiary hereunder arising
out of this Contract, and hereby designate the above-named as the person to whom the said
officer is authorized to mail such process or a true copy thereof.

ARTICLE 30 — SEVERABILITY (LM-02000-2005.06.02-A)

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

	 
	ARTICLE 31 — SPECIAL CONDITIONS (LM-02100-2007.12.05-A) 

	A.	 	This Article applies only in the event that:

	 	1.	 	A State Insurance Department or other legal authority orders the Subscribing
Reinsurer to cease writing business or has imposed upon it any other restrictions on or
conditions relating to the Subscribing Reinsurer’s license or conduct of business in any
jurisdiction; or
	 
	 	2.	 	The Subscribing Reinsurer has become insolvent or has been placed into liquidation or
receivership (whether voluntary or involuntary), or there have been instituted against it
proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator,
trustee in bankruptcy, or other agent known by whatever name, to take possession of its
assets or control of its operations; or
	 
	 	3.	 	The Subscribing Reinsurer’s policyholders’ surplus or equity has been reduced by 25%
or there has been a 25% reduction in the Subscribing Reinsurer’s Stamp Capacity or funds
at Lloyd’s at the inception of this Contract; or
	 
	 	4.	 	The Subscribing Reinsurer has entered into a definitive agreement to become merged
with, acquired, or controlled by any unaffiliated company, corporation, or individual(s)
not controlling the Subscribing Reinsurer’s operations at the inception of this Contract;
or
	 
	 	5.	 	The Subscribing Reinsurer’s A.M. Best Rating has been assigned or downgraded below A-
or Standard and Poor’s Rating has been assigned or downgraded below A-; or
	 
	 	6.	 	The Subscribing Reinsurer fails to maintain its surplus at a level of at least 200%
of the Subscribing Reinsurer’s Authorized Control Level Risk-Based Capital; or
	 
	 	7.	 	The Subscribing Reinsurer announces intentions to cease underwriting operations; or
	 
	 	8.	 	The Subscribing Reinsurer voluntarily ceases underwriting operations; or
	 
	 	9.	 	The Subscribing Reinsurer has reinsured its entire liability under this Contract; or
	 
	 	10.	 	The Subscribing Reinsurer, directly or through the actions of a parent company or an
affiliated entity, has or has attempted to assign, novate or transfer the Subscribing
Reinsurer’s rights and/or

			
	 	 	 
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Page 13 of 17

 

	 	 	 	obligations under this Contract, including any attempted transfer of rights and/or
obligations under any U.S. or foreign statute, legislation or jurisprudence, without the
Company’s prior written consent; or
	 
	 	11.	 	The Subscribing Reinsurer, directly or through the actions of a parent company or an
affiliated entity, has invoked any U.S. or foreign statute, legislation or jurisprudence
which purports to enable the Reinsurer to require the Company to settle its claims
liabilities, including but not limited to any estimated or undetermined claims
liabilities under this Contract, on an accelerated basis. This condition does not apply
to any attempt to enforce a settlement of claims liabilities under a commutation process
to which the parties have agreed.

	B.	 	If one or more of the above-stated circumstances occur, the Company shall provide the
Subscribing Reinsurer with a written statement of the Subscribing Reinsurer’s share of all
paid recoverables, case reserves, loss adjustment expenses, incurred but not reported losses,
reserves for unearned premium, and ceding commissions due under this Contract (collectively
“Obligations”). Within fifteen (15) days of the Subscribing Reinsurer’s receipt of such
statement, the Subscribing Reinsurer agrees to fund all Obligations by clean, irrevocable, and
unconditional Letters of Credit payable exclusively to the Company and issued by a bank
acceptable to the Company. Such Letters of Credit shall be issued for a period of not less
than one year, and shall be automatically extended for one year from their dates of expiration
or any future expiration dates, unless sixty (60) days prior to any expiration date the
issuing bank shall notify the Company by certified mail that the issuing bank elects not to
extend any Letter of Credit for any additional period.

	C.	 	The Subscribing Reinsurer and Company agree that the Letters of Credit provided by the
Subscribing Reinsurer, pursuant to the provisions of this Contract, may be drawn upon at any
time, notwithstanding any other provision of this Contract, and be utilized by the Company, or
any successor, by operation of law, of the Company, including without limitation, any
liquidator, rehabilitator, receiver, or conservator of the Company, without diminution because
of the insolvency of the Company or the Subscribing Reinsurer for one or more of the following
purposes:

	 	1.	 	To pay or reimburse the Company for:

	 	a.	 	The Subscribing Reinsurer’s share under this Contract of premiums
returned, but not yet recovered from the Subscribing Reinsurer, to the owners of
Policies reinsured under this Contract due to cancellations of such Policies; and
	 
	 	b.	 	The Subscribing Reinsurer’s share, under this Contract, of surrenders and
benefits or liabilities paid by the Company, but not yet recovered from the
Subscribing Reinsurer, under the terms and provisions of the Policies reinsured
under this Contract; and
	 
	 	c.	 	Any other amounts necessary to secure the credit or reduction from
liability for reinsurance taken by the Company.

	 	2.	 	Where the Letters of Credit will expire without renewal or be reduced or replaced by
Letters of Credit for a reduced amount and where the Subscribing Reinsurer’s entire
obligations under this Contract remain unliquidated and undischarged ten (10) days prior
to the termination date, to withdraw amounts equal to the Subscribing Reinsurer’s share of
the liabilities, to the extent that the liabilities have not yet been funded by the
Subscribing Reinsurer and exceed the amount of any reduced or replacement Letters of
Credit, and deposit those amounts in a separate account in the name of the Company in a
qualified U.S. financial institution apart from its general assets, in trust for such uses
and purposes as specified above as may remain after withdrawal and for any period after the
termination date.

	D.	 	At annual intervals, or at the Company’s option, on a quarterly basis, the Company shall
prepare an adjusted statement of the Subscribing Reinsurer’s Obligations, for the sole purpose
of amending the Letters of Credit, in the following manner:

	 	1.	 	If the statement shows that the Subscribing Reinsurer’s Obligations exceed the balance
of credit as of the statement date, the Subscribing Reinsurer shall, within fifteen (15)
days after receipt of notice of such excess, secure delivery to the Company of an amendment
to the Letters of Credit increasing the amount of credit by the amount of such difference.

			
	 	 	 
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Page 14 of 17

 

	 	2.	 	If, however, the statement shows that the Subscribing Reinsurer’s Obligations are less
than the balance of credit as of the statement date, the Company shall, within fifteen
(15) days after receipt of written request from the Subscribing Reinsurer, release such
excess credit by agreeing to secure an amendment to the Letters of Credit reducing the
amount of credit available by the amount of such excess credit.

	E.	 	If the Subscribing Reinsurer fails to fund such Obligations by Letters of Credit as described
above, the Company may terminate this Contract at any time by the giving of thirty (30) days
prior written notice to the Subscribing Reinsurer.

	F.	 	The coverage afforded by this Contract shall cease as of the date of termination and the
Subscribing Reinsurer shall return the unearned premium, if any. If coverage hereunder
terminates while a claim covered by this Contract is in progress, the Subscribing Reinsurer
shall be liable subject to all other conditions hereof for its proportion of the entire claim,
provided that the event giving rise to the claim started before such termination.

	G.	 	If the Company elects to terminate this Contract, the Company shall have the option to
commute the Subscribing Reinsurer’s liability for loss(es), whether reported or unreported,
comprising the sum total of the present value of the ceded: (1) case reserves and allocated
loss adjustment expense, (2) projected ultimate losses, (3) any unearned premium reserve, and
(4) undiscounted outstanding paid claims (hereinafter the “Commutation Losses”), on Policies
covered by this Contract as of the effective date of termination.

	 	1.	 	The Company shall submit a statement of valuation showing the elements considered
reasonable to establish the Commutation Losses, and the Subscribing Reinsurer shall pay
the amount requested. In the event the Company and the Subscribing Reinsurer cannot agree
on the statement of valuation of the Subscribing Reinsurer’s liability under such
Policies, either party may request in writing that the differences be settled by a panel
of three actuaries. Each party shall appoint an actuary to assess such liability within
fifteen (15) days after receipt of the written request for commutation. Upon such
appointment, the two actuaries shall appoint a third actuary. If the two actuaries fail
to agree on the third actuary within thirty (30) days of their appointment, each of them
shall nominate three individuals, of whom the other shall decline two, and the final
decision shall be made by drawing lots. The actuaries shall then investigate and
capitalize such Commutation Loss(es) within thirty (30) days. As used herein,
“capitalize” shall mean to determine the present value of Commutation Losses, without
regard to the Subscribing Reinsurer’s ability to pay such losses. The panel shall meet
in Boston, Massachusetts, unless the Company and Subscribing Reinsurer agree otherwise.
	 
	 	2.	 	All actuaries shall be disinterested in the outcome of the commutation and shall be
Fellows of the Society of Actuaries/Fellows of the Casualty Actuarial Society. Except as
stated below, the expense of the actuaries and of the commutation shall be equally divided
between the parties of the commutation.
	 
	 	3.	 	The decision in writing of the actuaries, when filed with the parties hereto, shall
be final and binding, except that if the Company does not agree with the capitalized value
of the Commutation Loss(es), the Company shall have no obligation to commute. In the event
the Company does not agree with the capitalized value of the Commutation Loss(es) and
does not move forward with commutation, the expense of the actuaries, including reasonable
expense of the actuary appointed by the Subscribing Reinsurer, will be paid by the
Company. If the Contract is commuted, payment by the Subscribing Reinsurer to the
Company or any other third party mutually agreed upon by the Subscribing Reinsurer and the
Company shall constitute a complete and final release of the Subscribing Reinsurer in
respect to its liability under this Contract.

	H.	 	Termination under the terms of this Article can be made after the date of expiration of this
Contract.

ARTICLE 32 — THIRD PARTIES (LM-02700-2005.09.27-A)

This Contract shall not be deemed to give any right or remedy to any third party whatsoever unless
said right or remedy is specifically granted to such third party by the terms of this Contract.

			
	 	 	 
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Page 15 of 17

 

ARTICLE 33 — UNAUTHORIZED REINSURANCE (LM-02500-2006.10.26-A)

(Applies only to a Subscribing Reinsurer who at the inception of the Contract or at any time
thereafter does not qualify for full credit with any insurance regulatory authority having
jurisdiction over the Company’s reserves.)

	A.	 	As regards Policies issued by the Company coming within the scope of this Contract, the
Company agrees that when it shall file with the insurance regulatory authority or set up on
its books reserves for unearned premium and losses covered hereunder which it shall be
required by law to set up, it will forward to the Subscribing Reinsurer a statement showing
the proportion of such reserves which is applicable to the Subscribing Reinsurer. The
Subscribing Reinsurer hereby agrees to fund such reserves in respect of unearned premium,
known outstanding losses that have been reported to the Subscribing Reinsurer and allocated
loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by
the Company but not recovered from the Subscribing Reinsurer, plus reserves for losses
incurred but not reported as determined by the Company, as shown in the statement prepared by
the Company (hereinafter referred to as “Subscribing Reinsurer Obligations”) by funds
withheld, cash advances, or Letters of Credit unless the Company and the Subscribing Reinsurer
otherwise agree, and/or the method of funding is determined by applicable law, statute, or
regulation, the Subscribing Reinsurer shall agree to fund such Subscribing Reinsurer
Obligations by Letters of Credit.

	B.	 	When funding by Letters of Credit, the Subscribing Reinsurer agrees to apply for and secure
timely delivery to the Company of clean, irrevocable, and unconditional Letters of Credit
issued by a bank that is a qualified U.S. financial institution and containing provisions
acceptable to the insurance regulatory authorities having jurisdiction over the Company’s
reserves in an amount equal to the Subscribing Reinsurer’s proportion of said reserves. Such
Letters of Credit shall be issued for a period of not less than one year, and shall be
automatically extended for one year from its date of expiration or any future expiration date
unless 60 days prior to any expiration date the issuing bank shall notify the Company by
certified mail that the issuing bank elects not to consider the Letters of Credit extended for
any additional period.

	C.	 	The Subscribing Reinsurer and Company agree that the Letters of Credit provided by the
Subscribing Reinsurer pursuant to the provisions of this Contract may be drawn upon at any
time, notwithstanding any other provision of this Contract, and be utilized by the Company or
any successor, by operation of law, of the Company including without limitation, any
liquidator, rehabilitator, receiver, or conservator of the Company, without diminution because
of the insolvency of the Company or the Subscribing Reinsurer for one or more of the following
purposes:

	 	1.	 	To reimburse the Company or a Legal Entity for the Subscribing Reinsurer’s share of
premiums returned to the owners of Policies reinsured under this Contract because of
cancellations of the Policies;
	 
	 	2.	 	To reimburse the Company or a Legal Entity for the Subscribing Reinsurer’s share of
surrenders and benefits or losses paid by the Company or a Legal Entity under provisions
of the Policies reinsured under this Contract;
	 
	 	3.	 	To fund an account with the Company or a Legal Entity in an amount at least equal to
the deduction for reinsurance ceded from the Company’s or a Legal Entity’s liabilities for
Policies ceded under this Contract. The account shall include, but not be limited to,
amounts for Policy reserves, claims and losses incurred (including losses incurred but
not reported), loss adjustment expenses, and unearned premium reserves; and
	 
	 	4.	 	To pay any other amounts the Company claims are due under this Contract.

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

			
	 	 	 
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Page 16 of 17

 

	E.	 	At annual intervals, or at the Company’s option, on a quarterly basis, the Company shall
prepare a specific statement of the Subscribing Reinsurer’s Obligations, for the sole purpose
of amending the Letters of Credit, in the following manner:

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

	F.	 	Any and all disputes between the Company and any Subscribing Reinsurer or Reinsurers
(“Party”, individually, or “Parties”, collectively) arising out of, relating to, or concerning
this Article shall be resolved pursuant to the ARIAS-U.S. Newer Arbitrator Program. Unless
the Parties otherwise agree, the ARIAS Newer Arbitrator Program expedited proceeding with a
single Newer Arbitrator shall be used to resolve any such disputes.

			
	 	 	 
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Page 17 of 17

 

INTEREST AND LIABILITIES AGREEMENT

(hereinafter referred to as the “Agreement”)

to the

WAUSAU RETROCESSION QUOTA SHARE CONTRACT

No. 2100400

between

PEERLESS INSURANCE COMPANY

Keene, New Hampshire

(hereinafter referred to as the “Company”)

and

LIBERTY MUTUAL INSURANCE COMPANY

Boston, Massachusetts

(hereinafter referred to as the “Subscribing Reinsurer”)

It is hereby agreed by and between the Company on the one part and the Subscribing
Reinsurer on the other part that the Subscribing Reinsurer’s share in the interests and
liabilities of the Reinsurers as set forth in the attached Wausau Retrocession Quota
Share Contract No. 2100400, effective 12:01 a.m., Local Standard Time, April 1, 2008, to
which this Agreement is attached shall be for: 100%

The share of the Subscribing Reinsurer in the interests and liabilities of all reinsurers
participating in said Contract shall be separate and apart from the shares of such other
reinsurers to the said Contract. The interests and liabilities of the Subscribing
Reinsurer shall not be joint with those of the other reinsurers and in no event shall the
Subscribing Reinsurer participate in the interests and liabilities of the other
Reinsurers participating in said Contract.

	 	 	 

	 

	 	Wausau Retrocession Quota Share
	 

	 	Contract — April 1, 2008
	Page 1 of 2

	 	Interest and Liabilities Agreement

OTH0800002

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate, by
their duly authorized representatives.

In Keene, New Hampshire, this 20th day of May, 2008.

	 	 	 	 	 	 	 

	ATTEST:

	 	 	 	PEERLESS INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Daniel P. Baker
 

Signature

	 	 
	 	/s/ Nancy C. Callender
 

Signature
	 	 
	 
	 	 	 	 	 	 
	Daniel P. Baker

	 	 	 	Nancy C. Callender	 	 
	 

	 	 	 	 	 	 
	Name

	 	 	 	Name	 	 
	 
	 	 	 	 	 	 
	VP, Financial Services

	 	 	 	AVP — AM Reinsurance Management-Manager	 	 
	 

	 	 	 	 	 	 
	Title

	 	 	 	Title	 	 

And in Boston, Massachusetts, this 9th day of July, 2008.

	 	 	 	 	 	 	 

	ATTEST:

	 	 	 	LIBERTY MUTUAL INSURANCE COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Lauren H. Covert
 

Signature

	 	 
	 	/s/ Elaine Caprio Brady
 

Signature
	 	 
	 
	 	 	 	 	 	 
	Lauren H. Covert

	 	 	 	Elaine Caprio Brady	 	 
	 

	 	 	 	 	 	 
	Name

	 	 	 	Name	 	 
	 
	 	 	 	 	 	 
	Director of Ceded Reinsurance

	 	 	 	Vice President	 	 
	 

	 	 	 	 	 	 
	Title

	 	 	 	Title	 	 

	 	 	 

	 

	 	Wausau Retrocession Quota Share
	 

	 	Contract — April 1, 2008
	Page 2 of 2

	 	Interest and Liabilities Agreement

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