Document:

<PAGE>
                                                                   Exhibit 10.39

                                                         [CARVILL LOGO]
                                                         Carvill America, Inc.
                                                         The Pinnacle, Suite 375
                                                         3455 Peachtree Road. NE
                                                         Atlanta, Georgia 30326
                                                         Telephone: 404-475-0314
                                                         Toll Free: 877-309-8990
                                                         Facsimile: 404-475-0439

TITLE:                EXCESS OF LOSS REINSURANCE CONTRACT

BETWEEN               DARWIN NATIONAL ASSURANCE COMPANY, DARWIN SELECT INSURANCE
                      COMPANY AND/OR ANY OTHER ASSOCIATED, AFFILIATED OR
                      SUBSIDIARY COMPANIES OF DARWIN PROFESSIONAL UNDERWRITERS,
                      INC., INCLUDING BUSINESS ASSUMED BY THE REASSURED FROM
                      CAPITOL INDEMNITY CORPORATION, CAPITOL SPECIALTY INSURANCE
                      CORPORATION, PLATTE RIVER INSURANCE COMPANY AND/OR ANY
                      OTHER ASSOCIATED, AFFILIATED OR SUBSIDIARY COMPANIES OF
                      ALLEGHANY INSURANCE HOLDING LLC, BUT ONLY IN RESPECT OF
                      BUSINESS UNDERWRITTEN BY DARWIN PROFESSIONAL UNDERWRITERS,
                      INC.

                      AND

                      THE REINSURERS SIGNATORY HERETO

COMMENCING            APRIL 1, 2006

U.S. CLASSIFICATION:  U.S. REINSURANCE

<PAGE>

                                    CONTENTS

PREAMBLE                   IDENTITY OF PARTIES
ARTICLE 1                  BUSINESS REINSURED
ARTICLE 2                  EXCLUSIONS
ARTICLE 3                  COVER, LIMIT AND RETENTION
ARTICLE 4                  EXPRESS WARRANTY
ARTICLE 5                  TERRITORIAL SCOPE
ARTICLE 6                  PERIOD
ARTICLE 7                  SPECIAL TERMINATION
ARTICLE 8                  ULTIMATE NET LOSS
ARTICLE 9                  LOSS CAP
ARTICLE 10                 EXCESS OF ORIGINAL POLICY LIMITS
ARTICLE 11                 EXTRA-CONTRACTUAL OBLIGATIONS
ARTICLE 12                 NET RETAINED LINES
ARTICLE 13                 PREMIUM
ARTICLE 14                 PREMIUM LIMITATION
ARTICLE 15                 REPORTS
ARTICLE 16                 NOTICE OF LOSS AND LOSS SETTLEMENTS
ARTICLE 17                 INTEREST PENALTY
ARTICLE 18                 UNEARNED PREMIUM AND OUTSTANDING LOSS RESERVES
ARTICLE 19                 COMMUTATION
ARTICLE 20                 CURRENCY
ARTICLE 21                 TAX PROVISIONS
ARTICLE 22                 INSOLVENCY OF THE REASSURED
ARTICLE 23                 OFFSET
ARTICLE 24                 DELAYS, ERRORS AND OMISSIONS
ARTICLE 25                 AMENDMENTS AND ALTERATIONS
ARTICLE 26                 ACCESS TO RECORDS AND CLAIMS REVIEW
ARTICLE 27                 ARBITRATION
ARTICLE 28                 SERVICE OF SUIT
ARTICLE 29                 CONFIDENTIALITY
ARTICLE 30                 REGULATORY COMPLIANCE
ARTICLE 31                 INTERMEDIARY
ARTICLE 32                 GOVERNING LAW
ARTICLE 33                 PARTICIPATION
ARTICLE 34                 SEVERAL LIABILITY NOTICE

ATTACHMENTS:

I.    NUCLEAR INCIDENT EXCLUSION CLAUSES - LIABILITY - REINSURANCE -
      U.S.A/CANADA

2.    NUCLEAR ENERGY RISKS EXCLUSION CLAUSE - REINSURANCE - 1994 (WORLDWIDE
      excluding U.S.A and CANADA)

3.    APPENDIX A LOSS BORDEREAU FORMAT

                                       2
<PAGE>

                       EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

This Contract is made and entered into between Darwin National Assurance
Company, Darwin Select Insurance Company and/or any other any other associated,
affiliated or subsidiary companies of Darwin Professional Underwriters, Inc.,
including business assumed by the Reassured from Capitol Indemnity Corporation,
Capitol Specialty Insurance Corporation, Platte River Insurance Company and/or
any other associated, affiliated or subsidiary companies of Alleghany Insurance
Holding LLC, but only in respect of business underwritten by Darwin Professional
Underwriters Inc. of 9 Farm Springs Road, Farmington, Connecticut 06032 (NAIC
Group Code 10472) (hereinafter referred to as "the Reassured") and the
Reinsurers signatory hereto (hereinafter referred to as the "Reinsurers"), on
the following terms and conditions:

                                   ARTICLE 1

BUSINESS REINSURED

This Contract applies to policies of insurance classified by the Reassured as
Directors' & Officers' Liability, Fiduciary Liability, Employment Practices
Liability, Managed Care Organizations Errors and Omissions Liability, Insurance
Agents Errors and Omissions Liability, Lawyers Professional Liability (subject
to Exclusion 8 herein), Insurance Company Errors and Omissions Liability
(subject of Exclusion 10 attached herein), Miscellaneous Professional Liability
and Technology Errors and Omissions Liability.

For the purposes of this Contract, the terms "policy", "policies" or "original
policies" as used herein shall be understood to mean all binders, policies,
contracts, endorsements or other evidence of insurance issued in the name of the
Reassured.

                                   ARTICLE 2

EXCLUSIONS

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

1.    Nuclear Incidents, in accordance with the attached Nuclear Incident
      Exclusion Clauses - Liability - Reinsurance - U.S.A./Canada.

2.    Nuclear Energy Risks, in accordance with the attached Nuclear Energy Risks
      Exclusion Clause (Reinsurance) (1994) (Worldwide excluding U.S.A. and
      Canada).

3.    Insolvency Funds, in accordance with the Insolvency Funds Exclusion
      Clause.

4.    Liability assumed by the Reassured as a Member or Reinsurer of any Pool,
      Association or Syndicate.

5.    Financial Guarantee and Insolvency Insurance when written as such.

                                       3
<PAGE>

6.    Surety Business when written as such.

7.    Reinsurance Assumed Business, other than policies "fronted" by another
      carrier and underwritten by Darwin Professional Underwriters, Inc and
      Inter-Company Pooling Arrangements.

8.    Business classified by the Reassured as Accountants Errors & Omissions,
      Actuarial Errors & Omissions, Architects and Engineers Errors & Omissions,
      Engineering/Construction Risk Errors & Omissions, Lawyers Professional
      Liability but only in respect of law firms with 100 or more attorneys at
      the inception of the original policy/program attaching hereto, For Profit
      Outside Directors Liability when written as such under a Lawyers
      Professional Liability policy subject to this Contract, Media Professional
      Liability (except when classified by the Reassured as Technology Errors
      and Omissions Liability), Medical Malpractice, Hospital Professional
      Liability and Nursing Home Errors & Omissions.

9.    Insurance Agents Errors & Omissions for the following: Marsh, Aon, Willis,
      Arthur J. Gallagher, Jardine Lloyd Thompson, Heath Lambert, Benfield and
      Brown & Brown.

10.   Business classified by the Reassured as Errors & Omissions Liability for
      Financial Institutions, which is understood to mean business classified by
      the Reassured as Commercial Money Center Banks, Investment Banks, Mutual
      Funds, Hedge Funds, Security Dealers/Brokers, Investment Advisors and
      Insurance Companies with more than USD250,000,000 of premium income at the
      inception of the original policy/program attaching hereto.

11.   Business classified by the Reassured as Directors' & Officers' Liability
      for Financial Institutions, for risks with market capitalizations of
      USD5,000,000,000 or greater at the time the risk is quoted. Such Exclusion
      shall not apply to business classified by the Reassured as Side "A" or
      Side "A" DIC Directors' & Officers' Liability.

12.   Business classified by the Reassured as Directors' & Officers' Liability
      for Hedge Funds.

13.   Business classified by the Reassured as Representations and Warranties,
      Tax Opinion, and Loss Mitigation Units.

Notwithstanding the above, it is agreed that Exclusions 8, 10 and 11 shall not
apply when they are incidental to the main operations subject to the Reassured's
original policy form, provided such main operations are covered by the Reassured
and are not themselves excluded from the scope of this Contract. For the
purposes of this article "incidental" shall be understood to mean any operation
that contributes less than 5% to the total revenues covered by the Reassured's
original policy form as determined by the Reassured.

                                       4
<PAGE>

Notwithstanding anything in this Article to the contrary, should the Reassured
submit a risk to Reinsurers hereon for their special acceptance, to the extent
that Reinsurers agree to accept such a risk by way of special acceptance, the
above exclusions shall not apply only as provided in the special acceptance.
Additionally it is agreed that, where a risk previously accepted by way of
special acceptance is renewed, no further special acceptance by Reinsurers shall
be required, and all such prior special acceptances on predecessor Contracts
shall also be covered hereunder. Notwithstanding the above, as a condition
precedent to prior special acceptances on predecessor Contracts being
automatically covered, all such prior special acceptances will be identified to
the Reinsurer by the Reassured in the information provided for the purposes of
renewal of this Contract.

For all accounts submitted for special acceptance, the Reassured will provide
the Reinsurers the following information:

-     A copy of the underwriting work-up on the account

-     Terms, conditions and pricing that the Reassured propose to offer within
      this Contract.

-     An account loss history

Upon receipt of the above information provided in an electronic format, the
Reinsurers will provide their underwriting decision on any account submitted for
special acceptance within three (3) working days it being understood that if not
received within the allotted timeframe, the account will be automatically
approved and accepted under this Contract.

                                   ARTICLE 3

COVER, LIMIT AND RETENTION

The Reinsurers shall be liable under this Contract in respect of each and every
loss, each Insured, each policy/program, for the Reassured's Ultimate Net Loss
in excess of USD2,000,000 each and every loss, each Insured, each
policy/program, subject to a limit of liability to the Reinsurers of up to
USD3,000,000 Ultimate Net Loss each and every loss, each Insured, each
policy/program.

Allocated loss adjustment expenses (including outside monitoring counsel) not
covered under the original policies shall be covered hereunder on a pro-rata
costs in addition basis.

The Reassured shall retain the aforementioned USD2,000,000 net and unreinsured,
except for policies and/or programs reinsured under the Reassured's "i-bind"
Quota Share Reinsurance Contract (broker reference 3203/DRI), internal
reinsurance and/or Catastrophe Excess of Loss Reinsurance.

It is understood and agreed that the limits and retentions hereon apply
separately to each original coverage and/or section thereof as applicable,
issued by the Reassured, unless written on a combined, shared limit basis, as
per the original policies.

                                       5
<PAGE>

The meaning of "each and every loss", "claim", "claim made" and "losses
discovered" shall follow the definitions in the policies covered hereunder, as
finally determined by the Reassured. The Reassured shall also be the determinant
of what constitutes "each Insured", "each coverage", "each section" and "each
policy"

Where the Reassured issues more than one policy to the same original insured
covering the same class of business, (such as on a layered basis), then the
combination of such policies shall be considered a program for the purposes
hereof, as reasonably determined by the Reassured.

                                   ARTICLE 4

EXPRESS WARRANTY

Patent Infringement coverage applicable to business classified by the Reassured
as Technology Errors and Omissions Liability will be sub-limited to USD1,000,000
or so deemed.

                                   ARTICLE 5

TERRITORIAL SCOPE

This Contract shall cover wherever the original policies cover.

                                   ARTICLE 6

PERIOD

This Contract covers all claims made or losses discovered, as original, on
original policies issued or renewed during the period April 1st, 2006 12:01 a.m.
Standard Time to April 1st, 2007 12:01 a.m. Standard Time at the place and
location of risks insured.

The maximum original policy period shall be 12 months plus odd time not to
exceed 18 months in all, plus extended reporting period coverage or
endorsements, as original. Such extended reporting period coverage or
endorsements shall be limited to 36 months or so deemed, or such longer period
as required by State Regulations. Notwithstanding the foregoing, policies
classified by the Reassured as "Run-Off" may be issued for periods up to 72
months.

For the purposes of this Contract, any extension, discovery period or extended
reporting endorsement attaching to a policy covered hereunder shall be
considered as part of the period of the said policy, subject to the provision
that a separate limit of liability may apply in respect thereof.

Upon expiry of this Contract, policies in force at the effective time and date
of expiration hereof shall continue to be covered hereunder until their
individual natural expiration or termination dates, whichever sooner, including
extensions, discovery periods or other similar extended reporting endorsements
attaching to such policies. The Reassured may

                                       6
<PAGE>

however, subject to agreement by Reinsurers hereon, terminate the liability of
the Reinsurers for claims made or losses discovered, as original, after the
effective time and date of expiration hereof and, in such event, the unearned
premium at that date applicable to in force policies, including extensions,
discovery periods or other similar extended reporting endorsements attached
thereto, shall be deducted from the Subject Gross Net Written Premium Income for
the purpose of the premium rating hereunder.

Notwithstanding the above, should the Reassured elect to terminate Reinsurers'
liability, premium applicable to run off policies, discovery periods or other
similar extended reporting endorsements in force at the effective time and date
of termination shall be deemed to be fully earned and not deducted from the
Subject Gross Net Premium Income for the purposes of premium rating hereunder.
Any claims applicable to such run off policies, discovery periods or similar
extended reporting endorsements shall be deemed to have been made on the date
the original policy expired or was cancelled.

                                   ARTICLE 7

SPECIAL TERMINATION

A.    Either party may terminate this Contract upon 30 days notice in the event
      that the other party's surplus has been reduced by 30% or more of the
      amount of surplus at March 31st, 2006.

B.    The Reinsured may terminate the Reinsurer's participation hereon at any
      time by giving 30 days' prior written notice to the Reinsurer in the event
      that:

(1)   A State Insurance Department or other legal authority has ordered the
      subscribing Reinsurer to cease writing business; or

(2)   The subscribing Reinsurer has become insolvent or has been placed into
      liquidation or receivership or proceedings have been instituted against
      the subscribing Reinsurer for the appointment of a receiver, liquidator,
      rehabilitator, conservator or trustee in bankruptcy, or other agents known
      by whatever name, to take possession of its assets or control of its
      operation; or

(3)   The subscribing Reinsurer has reinsured its entire liability under this
      Contract without the Reinsured's prior written consent. However, the
      Reinsurer shall be at liberty to effect catastrophe excess and/or
      aggregate stop loss excess reinsurance; or

(4)   The subscribing Reinsurer has ceased assuming new and renewal treaty
      reinsurance business; or

(5)   The subscribing Reinsurer experiences a downgrading in their financial
      strength rating from Standard and Poor's Group below BBB or a downgrading
      in rating from A.M. Best Company below A-.

                                       7
<PAGE>

In the event of such termination, the liability of the Reinsurer shall be
terminated as follows:

Policies in force at the effective time and date of termination of this Contract
shall continue to be covered hereunder until their individual expiration dates,
including extensions, discovery periods or other such similar reporting
endorsements or provisions attached thereto. For rating purposes, the applicable
Subject Gross Net Written Premium Income shall be calculated on policies issued
or renewed from the inception date of this Contract to the effective time and
date of termination of this Contract.

The Reassured may however terminate the liability of the Reinsurer for claims
made or losses discovered, as original, after the effective time and date of
termination of this Contract and, in such event, the unearned premium at the
termination date applicable to in force policies, including extensions,
discovery periods or other similar extended reporting endorsements or provisions
attached thereto, shall be deducted from the Subject Gross Net Written Premium
Income for the purpose of the premium rating hereunder.

The Reassured shall have the right at the time of termination of this Contract
or at any time following the termination of the Reinsurer, provided the
developed rate at that time is strictly below the Maximum hereon, to commute
losses at their discretionary reserves, (which they may deem to be zero for the
purposes hereof). The Reassured will then give Reinsurers a full and final
release of all future liabilities under this Contract. It is understood and
agreed that unearned premium at the termination date applicable to in force
policies, including extensions, discovery periods or other similar extended
reporting endorsements or provisions attached thereto, shall be deducted from
the Subject Gross Net Written Premium Income for the purpose of the premium
rating hereunder.

                                   ARTICLE 8

ULTIMATE NET LOSS

The term "Ultimate Net Loss" as used in this Contract shall mean the sum
actually paid or payable by the Reassured in settlement of any losses under its
original policies. In the event that the Reassured's original policies and/or
specific coverage parts of their original policies are issued with loss
adjustment expenses included within the original policy limit, such loss
adjustment expenses shall be included within the Reassured's Ultimate Net Loss
for the purposes of recovery hereunder.

It is understood and agreed the Reassured may purchase quota share reinsurance
for policies produced, accepted or referred through the Reassured's "i-bind"
system, within the retention herein, recoveries under which shall be disregarded
for the purposes of calculating the Ultimate Net Loss hereunder.

Where the Reassured's original policies and/or specific coverage parts of their
original policies provide for loss adjustment expenses in addition to the
original policy limit, all loss adjustment expenses paid by the Reassured shall
be apportioned in proportion to the respective interests in the loss of the
parties hereto as such interests finally appear in addition to any Ultimate Net
Loss recoverable hereunder. In the event a verdict or

                                       8
<PAGE>

judgment is reduced by an appeal or a settlement, subsequent to the entry of the
judgment, resulting in an ultimate saving on such verdict or judgment, or a
judgment is reversed outright, the expense incurred in securing such final
reduction or reversal shall be pro-rated between the Reinsurers and the
Reassured in the proportion that each benefits from such reduction or reversal;
and the expenses incurred up to the time and date of the original verdict or
judgment shall be pro-rated in proportion to each party's interest in such
verdict or judgment.

In the event of external legal or external adjustment expenses, including
outside monitoring counsel expenses, which are incurred by the Reassured in
connection with a claim or potential claim hereunder and which are not the
subject of the Reassured's original policy, then Reinsurers shall also be liable
for their proportion of such expenses as the respective interests in the loss of
the parties hereto finally appear in addition to their share of any Ultimate Net
Loss recoverable hereunder.

The Reinsurers shall also be liable for legal expenses incurred in respect of
coverage questions and legal actions in connection with a claim or potential
claim hereunder (hereinafter referred to as "declaratory judgment and/or
rescission expenses"). It being understood and agreed that:

      1.    When there is no contractual loss, other than declaratory judgment
            and/or rescission expenses, the declaratory judgment and/or
            rescission expenses shall be considered a contractual loss and
            included within the Reassured's Ultimate Net Loss for the purposes
            of recovery hereunder.

      2.    When a contractual loss, exclusive of declaratory judgment and/or
            rescission expenses, is incurred hereunder, the Reinsurers shall be
            liable for their proportionate share of such declaratory judgment
            and/or rescission expenses, as the respective interests in the
            contractual loss of the parties hereto finally appear, up to an
            additional limit of this Contract in addition to any contractual
            loss recoverable hereunder.

For the purposes of this Contract loss adjustment expenses shall include all
expenses of litigation, including post judgment interest, but shall exclude the
salaries of regular employees and all office expenses of the Reassured.

All salvages and recoveries shall first be deducted from such loss to arrive at
the amount of the Reassured's Ultimate Net Loss for the purposes of this
Contract. All salvages, recoveries or payments recovered or received subsequent
to a loss settlement under this Contract shall be applied as if recovered or
received prior to the aforesaid settlement and all necessary adjustments shall
be made by the parties hereto. However, nothing in the foregoing shall be
construed as meaning that losses are not recoverable hereunder until the
Reassured's Ultimate Net Loss has been ascertained.

                                       9
<PAGE>

                                   ARTICLE 9

LOSS CAP

Notwithstanding any other provision of this Contract, the maximum recoverable
hereon shall not exceed 250% of the final reinsurance premium.

                                   ARTICLE 10

EXCESS OF ORIGINAL POLICY LIMITS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in excess of the
original policy limit as more fully defined below. Such excess of original
policy limits coverage shall be up to an additional limit of this Contract and
in addition to any contractual loss recovered hereunder, it being understood the
maximum additional recoverable in respect of specific excess of original policy
limits and extra contractual obligations coverage shall be USD 3,000,000 any one
claim. However, specific Excess of Original Policy Limits coverage afforded
under the Reassured's "i-bind" Quota Share Reinsurance Contract shall inure to
the benefit of Reinsurers hereon. The Reinsurers agree that the said 90% of the
additional liability so incurred, plus the Reassured's contractual loss, shall
be considered as one combined loss for the purposes of the Reassured's
retention.

Awards in excess of the original policy limit are defined as contractual losses
which the Reassured may be legally liable to pay, but in excess of the original
policy limit, such losses in excess of the original policy limit having been
incurred because of, but not limited to, the following: failure by the Reassured
to settle within the original policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against an insured or
in the preparation or prosecution of an appeal consequent upon such action.

The date on which any liability in excess of original policy limits is incurred
by the Reassured shall be deemed, in all circumstances, to be the date the
original claim was made or discovered.

However, this Article shall not apply where such awards in excess of original
policy limit have been incurred due to the fraud of a member of the Board of
Directors or a corporate officer of the Reassured acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any
claim.

                                   ARTICLE 11

EXTRA-CONTRACTUAL OBLIGATIONS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in respect of any
extra-contractual obligation, as more fully defined below. Such extra
contractual obligations coverage

                                       10
<PAGE>

shall be up to an additional limit of this Contract and in addition to any
contractual loss recovered hereunder, it being understood the maximum additional
recoverable in respect of specific extra contractual obligations and excess of
original policy limits coverage shall be USD 3,000,000 any one claim. However,
specific Extra Contractual Obligations coverage afforded under the Reassured's
"i-bind" Quota Share Reinsurance Contract shall inure to the benefit of
Reinsurers hereon. The Reinsurers agree that the said 90% of the additional
liability so incurred, plus the Reassured's contractual loss, shall be
considered as one combined loss for the purposes of the Reassured's retention.

"Extra-contractual obligations" are defined as those liabilities not covered
under any other provision of this Contract and which arise from the handling of
any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Reassured to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against an insured or in the preparation or prosecution
of an appeal consequent upon such action.

The date on which any extra-contractual obligation is incurred by the Reassured
shall be deemed, in all circumstances, to be the date the original claim was
made or discovered.

Recoveries, collectibles or retentions from any other form of insurance or
reinsurance including deductibles or self-insured retentions that protect the
Company against Extra Contractual Obligations shall inure to the benefit of the
Reinsurers and shall be deducted from the total amount of Extra Contractual
Obligations for purposes of determining the loss hereunder.

However, this Article shall not apply where such extra-contractual obligations
have been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the Reassured acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim.

                                   ARTICLE 12

NET RETAINED LINES

This Contract applies only to that portion of any insurance covered by this
Contract which the Reassured retains net for its own account and in calculating
the amount of any loss hereunder and also in computing the amount in excess of
which this Contract attaches, only loss or losses in respect of that portion of
any insurance which the Reassured retains net for its own account shall be
included. It is understood and agreed the Reassured may purchase quota share
reinsurance for policies produced, accepted or referred through the Reassured's
"i-bind" system, within the net retention herein, which shall be disregarded for
the purposes of this Article.

It is understood and agreed that the amount of the Reinsurers' liability
hereunder in respect of any loss or losses shall not be increased by reason of
the inability of the Reassured to collect from any other reinsurers, whether
specific or general, any amounts

                                       11
<PAGE>

which may have become due from them, whether such inability arises from the
insolvency of such other reinsurers or otherwise.

                                   ARTICLE 13

PREMIUM

In consideration of the liabilities undertaken by the Reinsurers in accordance
with the terms of this Contract, the Reassured shall pay to the Reinsurers their
share of the following premium:

Provisional Premium of USD26,000,000 payable in quarterly installments in
arrears as follows:

June 30th, 2006 (or the next business day thereafter)            USD6,500,000
September 30th, 2006 (or the next business day thereafter)       USD6,500,000
January 1st, 2007 (or the next business day thereafter)          USD6,500,000
March 31st, 2007 (or the next business day thereafter)           USD6,500,000

Provisional Premium to be adjusted within 60 days of the expiry of this Contract
at a provisional rate of 25% of the Reassured' Subject Gross Net Written Premium
Income.

Twelve (12) months after the expiry of this Contract and annually thereafter
until all losses are settled or commuted, the premium hereunder shall be
adjusted at a rate equivalent to 107.5% of the case incurred loss cost plus a
minimum rate of 9% applied to the Subject Gross Net Written Premium Income. In
no event, however, shall the premium developed exceed a maximum rate equal to
41% of the Subject Gross Net Written Premium Income (hereinafter "experience
adjustment").

Notwithstanding the above, the first downward experience adjustment of premium
shall not be made until 36 months after the expiry of this Contract.

In the event that Reinsurers are placed in a negative cash position (Premiums
paid by the Reassured less paid losses) prior to April 1st, 2008, the Reassured
shall produce an experience adjustment account and shall settle funds due within
60 days of such account.

For the purposes of this Contract, the Reassured's Subject Gross Net Written
Premium Income shall be defined as the written premium charged by the Reassured
in respect of the first USD5,000,000 of original per claim policy or program
limits (or so deemed) for business covered hereunder, less cancellations, return
premiums, and premiums paid for inuring reinsurance.

Notwithstanding the above, written premium charged by the Reassured in respect
of policies produced, accepted or referred through the Reassured's "i-bind"
system, with original per claim, policy or program limits of USD2,000,000 or
less shall not be considered as part of the Reassured's Subject Gross Net
Written Premium Income for the purposes of this Contract. However, where
original per claim, policy or program limits exceed USD2,000,000, the written
premium charged by the Reassured in respect of the

                                       12
<PAGE>

first USD5,000,000 of original per claim policy or program limits (or so
deemed), less cancellations, return premiums, and premiums paid for inuring
reinsurance, shall be included in the Reassured's Subject Gross Net Written
Premium Income.

Case incurred loss cost means the Reassured's paid and outstanding indemnity,
defense and allocated loss adjustment expenses recovered or recoverable
hereunder on losses applicable to this Contract.

                                   ARTICLE 14

PREMIUM LIMITATION

The Maximum Original Gross Net Written Premium Income accepted by the Reassured
for classes of business subject to this Contract (up to original limits of
USD10,000,000 for all classes except for Directors' & Officers, with up to
original limits of USD15,000,000) not to exceed USD175,000,000 in all for the
Contract Period.

Notwithstanding the above, written premium charged by the Reassured in respect
of policies produced, accepted or referred through the Reassured's "i-bind"
system, with original per claim, policy or program limits of USD2,000,000 or
less shall not be considered as part of the Reassured's Maximum Gross Net
Written Premium Income for the purposes of the Premium Limitation.

In the event the Reassured determines that the applicable Premium Limitation may
be exceeded then the Reassured shall advise Reinsurers and Reinsurers shall
individually have the option to increase the Premium Limitation specific to
their participation in this Contract.

Should any individual Reinsurer decline the option to increase the Premium
Limitation the Reassured shall retain net the declining Reinsurer's share of all
business exceeding the Premium Limitation specified at the outset of this
Contract.

                                   ARTICLE 15

REPORTS

A bordereaux of risks shall be rendered by the Reassured within 45 days from end
of each calendar quarter. The bordereaux shall contain the following
information: policy number, insured name, premium, policy limit, policy term,
SIR/attachment point, class of business, stock market ticker symbol and market
capitalization for publicly traded D&O accounts only at the time the risk is
written as determined by the Reassured.

                                   ARTICLE 16

NOTICE OF LOSS AND LOSS SETTLEMENTS

A Paid and outstanding loss bordereaux for all claims with incurred amounts
(indemnity, defense and expense combined), established by the Reassured of'
USD1,000,000 or more

                                       13
<PAGE>

shall be rendered by the Reassured within 45 days of the end of each calendar
quarter, being within 45 days of June 30th, 2006 and quarterly thereafter. In
addition to the foregoing, such loss bordereaux shall include all SEC Securities
Class Action D&O notices advised to the Reassured irrespective of reserve.

It is understood and agreed, both by the Reassured and Reinsurers, that all paid
and outstanding losses shall be advised to Reinsurers solely by quarterly
bordereaux.

The bordereaux shall solely comprise numerical details of the paid and
outstanding amounts of each loss together with other data to identify the claim,
including the stock "Ticker" symbol for Public D&O claims, all as shown on the
example bordereaux format(s) attached hereto as Appendix C to this Contract and
which have been mutually agreed by the Reassured and Reinsurers. It is clearly
understood and agreed that such bordereaux shall not provide any other details
of the claim and that there shall be no requirement to provide assessment of
potential liability or other evaluations of each claim.

In addition to the bordereaux as described above, the Reassured will provide
individual loss reports for all claims with a reserve of USD1,000,000 or
greater.

The Reinsurers agree to abide by all loss settlements of the Reassured which at
its sole discretion shall adjust, settle or compromise all losses and all such
adjustments, settlements or compromises shall be binding upon the Reinsurers
subject to the terms, conditions and limitations of the original policies and
this Contract.

The Reinsurers agree to settle their share of such loss payments within 30 days
of receipt of the quarterly bordereaux; the bordereaux being the sole billing
documentation necessary to effect settlements from Reinsurers.

It is understood and agreed that requests for individual loss reports by
Reinsurers hereon shall not delay their payment of a claim once billing of the
claim has been presented by the Reassured to Reinsurers. In addition, responses
to requests for individual loss reports shall not be delayed or withheld by the
Reassured.

Notwithstanding such quarterly bordereaux settlements, the Reassured may request
an immediate cash loss settlement from the Reinsurers in the event that the
amount due from the Reinsurers in respect of an individual claim is USD1,000,000
or more. Such cash loss billings shall be made solely utilizing the same format
as the quarterly bordereaux collections and will be payable 15 days upon receipt
of the cash loss settlement.

Reinsurers may request additional information on any claim reported on the
bordereaux. However, such requests (including assessment of potential liability
or evaluations of individual claims) shall not delay their payment of a claim
once billing of the claim has been presented by the Reassured to Reinsurers. In
addition, responses to requests for additional information shall not be delayed
or withheld by the Reassured.

                                       14
<PAGE>

                                   ARTICLE 17

INTEREST PENALTY

The provisions of this Article shall not be implemented unless specifically
invoked, in writing, by the Reassured or Reinsurer. "The interest amounts
provided for in this Article will apply to the Reinsurer or to the Reassured in
the following circumstances:

1.    Loss payment owed by the Reinsurer to the Reassured shall have a due date
      to the Reassured of 30 calendar days following the date of the Reinsurer's
      receipt of the billing, but no later than 60 calendar days from the
      Reassured's date of the billing.

2.    Payment of any premium installments shall be due to the Reinsurer within
      30 calendar days of the date specified in this Contract. Any premium
      adjustments will be due by the debtor party within 60 calendar days of the
      date specified in this Contract.

3.    Payment of return premiums, commissions, profit sharing, or any other
      amounts not provided in paragraphs 1 or 2 above, shall be due by the
      debtor party within 60 calendar days of the due date specified in this
      Contract. If no due date is specified, the due date shall be 60 days
      following the date of the debtor party's receipt of the billing, but no
      later than 90 days from the creditor party's date of the billing.

4.    Failure by the Reinsurer or Reassured to comply with their respective
      payment obligations within the time periods as herein provided will result
      in a compound interest penalty payable at a rate equal to the 90 day
      Treasury Bill rate as published in the Money Rate Section or any successor
      section of the Wall Street Journal on the first business day following the
      date a remittance becomes due, plus 2% per annum, to be compounded and
      adjusted quarterly. Any interest which occurs pursuant to this Article
      shall be calculated by the party to which it is owed. The accumulation of
      the number of days that any payment is past due will stop on the date the
      Intermediary, where applicable, receives payment.

5.    The validity of any claim or payment may be contested under the provisions
      of this Contract. If the debtor party prevails in such action, there shall
      be no interest penalty due. Otherwise, any interest will be calculated and
      due as outlined above.

6.    If a Reinsurer advances payment of any claim it is contesting, and
      prevails such action, the Reassured shall return such payment plus pay
      interest on same, calculated as per the provisions of this Article.

7.    Any interest which occurs pursuant to this Article may be waived by the
      party to which it is owed. Further, any interest which is calculated
      pursuant to this Article that is USD100 or less shall be waived. Waiver of
      such interest, however, shall not affect the waiving party's right to
      similar interest for any other failure by the other party to make payment
      when due under this Article.

                                       15
<PAGE>

8.    Nothing in this Article shall diminish any legal remedies which either
      party may have against the other.

                                   ARTICLE 18

UNEARNED PREMIUM AND OUTSTANDING LOSS RESERVES

This Article applies only to those Reinsurers signatory hereto who do not
qualify for credit under the regulations of the State insurance authorities or
departments which have jurisdiction over the Reassured's reserves.

The Reassured agrees that when, for its Annual Convention Statement purposes, it
files with the authorities or departments mentioned above or sets up in its
books statutory reserves for known outstanding losses and allocated loss
expenses reinsured by this Contract, for unearned premium in respect of business
coming within the scope of this Contract, or for incurred but not reported
losses (IBNR), hereinafter "The Stated Reserves", it shall forward to the
Reinsurers a clear statement of the Reinsurers' proportion of The Stated
Reserves detailing separately the amounts involved for known outstanding losses
and allocated loss expenses and for unearned premium and IBNR, and also how
those amounts are calculated.

The Reinsurers, promptly upon receipt of the Reassured's statement, shall apply
for, and secure delivery to the Reassured of, clean irrevocable and
unconditional Letters of Credit or such equivalent funding acceptable to the
Reassured, for the benefit of the Reassured in amounts equal to their proportion
of The Stated Reserves.

Reserves for IBNR shall be equal to the lesser of the actual amount of IBNR
carried on the books of the Reassured for statutory reporting purposes or 41% of
Subject Gross Net Earned Premium Income less known and reported losses hereon.

In the event that the Provisional Premium adjustment and/or experience
adjustment calculation hereon results in a reduced level of collateral funding
hereunder, the Reassured agrees to return such excess collateral to Reinsurers
within 90 days of the date the adjustment is made.

All Letters of Credit procured pursuant to this Contract shall be issued by a
Bank which is a Member of the Federal Reserve and acceptable to the authorities
or departments mentioned in the first paragraph of this Article current at the
date of the Reassured's statement. Such Letter of Credit shall be in full
conformity with the requirements of such authorities or departments.

Further, all such Letters of Credit shall be "Evergreen" in that they shall be
issued for an initial period of not less than one year and shall be
automatically extended for one year from their original expiration dates and
subsequently from their extended expiration dates unless and until, at least
thirty days before any expiration date, the issuing bank gives notice to the
Reassured by registered mail that the issuing bank elects not to extend the life
of the Letter of Credit in question beyond its forthcoming expiration date.

                                       16
<PAGE>

In consideration of the contract of the Reinsurers to furnish such Letters of
Credit to the Reassured to enable it to obtain credit for the reinsurance
provided under this Contract, the Reassured hereby undertakes to hold such
Letters of Credit and the proceeds of any drawings made upon them in trust for
the Reinsurers and to use and apply the proceeds of any such drawings for the
following purposes only:

a.    To pay the Reinsurers' share or to reimburse the Reassured for that share
      of any liability for loss or allocated loss expense reinsured by this
      Contract or for unearned premium in respect of business coming within the
      scope of this Contract;

b.    To refund to the Reinsurers any balance by which the amount of the Letter
      of Credit exceeds the Reinsurers' proportion of any liability for loss or
      allocated loss expense reinsured by this Contract, incurred but not
      reported losses (IBNR) or for unearned premium in respect of business
      coming within the scope of this Contract.

c.    In the event that one or more of the Reinsurers participating in the
      Letter of Credit gives timely notice of cancellation or non-renewal of
      their participation in the Letter of Credit and provided that the
      obligations secured by the Letter of Credit remain unliquidated and
      undischarged at the time of receipt by the Reassured of such notice, the
      Reassured shall create a cash deposit account, separate from its own
      assets, in an amount equal to the participation of the canceling or
      non-renewing Reinsurer(s) in the Letter of Credit. That cash deposit
      account may then be used as in subparagraphs a. and b. above. It is
      understood and agreed that this procedure may only be implemented before
      the expiry of the notice period in respect of cancellation or non-renewal
      and that if it is implemented, the Reassured will ensure that a rate of
      interest is obtained for the Reinsurers on such a deposit account that is
      at least equal to the rate which would be paid by Citibank N.A. in New
      York, and further that the Reassured will account to the Reinsurers on an
      annual basis for all interest accruing on the cash deposit account for the
      benefit of the Reinsurers.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of drawings made by the Reassured on the Letters of Credit issued
under this Contract or in connection with the disposition of any funds so
withdrawn, except to ensure that drawings are made only upon the order of
properly authorized representatives of the Reassured.

All Letters of Credit procured for the Reassured under this Contract shall be
adjusted at annual intervals, or more frequently as agreed (but never more
frequently than quarterly), to reflect the current balance of the Reinsurers'
proportion of the Reassured's known outstanding loss and allocated loss expense
reserves and unearned premium reserves, and the Reassured shall produce a
statement for this purpose detailed in the same way as the original statement on
the basis of which such Letters of Credit were first issued. If the statement
shows that the Reinsurers' proportion of such losses and allocated expenses,
IBNR or unearned premium reserves exceeds the current amount of the Letters of
Credit,

                                       17
<PAGE>

the Reinsurers shall, within thirty days after receipt of the statement, secure
the amendment of the Letters of Credit increasing their amount to the amount of
the current balance of these items. If, however, the statement shows that the
Reinsurers' proportion of the current balance of those items is less than the
amount of the Letters of Credit the Reassured shall, within thirty days of
receipt of a written request from the Reinsurers to do so, facilitate the
release of the excessive security by authorizing the amendment of the Letters of
Credit so as to reduce their amount to the current balance required.

All expenses incurred in the establishment or maintenance of such Letters of
Credit shall be paid by the Reinsurers.

                                   ARTICLE 19

COMMUTATION

One year after the expiry of this Contract, or at any time thereafter, the
Reassured may, at its option, commute all losses outstanding under this
Contract.

The Reinsurers agree to accept the Reassured's discretionary reserves, (which
the Reassured may deem to be zero for the purpose of commutation), at the time
of commutation in consideration of which premiums shall be immediately adjusted,
and in consideration of which the Reinsurers shall be given a full and final
release of all future liability in respect of this Contract.

The option to commute may only be exercised by the Reassured provided that the
adjusted rate produced by using the Reassured's discretionary reserves at the
time of commutation in the experience adjustment calculation is less than the
maximum rate.

                                   ARTICLE 20

CURRENCY

The currency to be used for all purposes of this Contract shall be United States
Dollars ('USD'). All amounts paid or received by the Reassured in any other
currency shall be converted into United States Dollars at the rates of exchange
at which such transactions are converted in the books of the Reassured.

                                   ARTICLE 21

TAX PROVISIONS

The Reassured shall be liable for all taxes (except Federal Excise Tax) levied
on it with respect to premiums payable to the Reinsurers hereunder. Federal
Excise Tax applies only to those Reinsurers, excepting Underwriters at Lloyd's,
London and other Reinsurers exempt from the Federal Excise Tax, who are
domiciled outside the United States of America.

                                       18
<PAGE>

To the extent that such premium is subject to Federal Excise Tax, the Reinsurers
hereby agree to allow as a deduction from the premium, for the purpose of paying
Federal Excise Tax, all applicable percentages of the premium payable hereon.

In the event of any return premium becoming due hereunder the Reinsurers will
deduct all applicable percentages from the amount of the return, and the
Reassured or its agents shall take steps to recover the tax from the Government
of the United States of America.

In consideration of the terms under which this Contract is issued, the Reassured
undertakes not to claim any deduction in respect of premium payable hereon when
making tax returns, other than Income or Profits tax returns, to any fiscal
authority of the United States of America or any State or Territory thereof.

                                   ARTICLE 22

INSOLVENCY OF THE REASSURED

Amounts due to the Reassured under this Contract shall be payable by the
Reinsurers on the basis of the liability of the Reassured under the original
policies reinsured hereunder without diminution because of the insolvency of any
one or all of the Reassured Companies.

In the event of the insolvency of the Reassured, the Liquidator or Receiver or
Statutory Successor of the Reassured shall give written notice to the Reinsurers
of the pendency of any claim against the insolvent Reassured on the original
policies reinsured hereunder within a reasonable time after such claim is filed
in the insolvency proceedings. During the pendency of such claim the Reinsurers
may investigate such claim and intervene, at their own expense, in the
proceedings where such claim is to be adjudicated and interpose any defense or
defenses which they may deem available to the Reassured or its Liquidator or
Receiver or Statutory Successor. The expense thus incurred by the Reinsurers
shall be chargeable, subject to court approval, against the insolvent Reassured
as part of the expense of liquidation to the extent of a proportionate share of
the benefit which may accrue to the Reassured solely as a result of the defense
so undertaken by the Reinsurers.

When two or more Reinsurers are involved in the same claim and a majority in
interest elect to investigate the claim and/or to interpose defense to such
claim, the expense shall be apportioned in accordance with the terms of the
above paragraph as though such expense had been incurred by the Reassured.

Should the Reassured go into liquidation or should a receiver be appointed, the
Reinsurers shall be entitled to deduct from any sums which may be or may become
due to the Reassured under this Contract any sums which are due to the
Reinsurers from the Reassured under this Contract and which are payable at a
fixed or stated date, as well as any other sums due to the Reinsurers which are
permitted to be offset under applicable law.

                                       19
<PAGE>

In the event of the insolvency of the Reassured, the amounts due to the
Reassured under this Contract shall be payable by the Reinsurers directly to the
Reassured or to its Liquidator, Receiver or Statutory Successor.

It is the mutual intent of the parties that, in the event of the insolvency of
the Reassured, this Article shall be read to conform with the state or
regulatory requirements of the jurisdiction in which the liquidation or
receivership is conducted in the event that any provision of this Article is in
conflict with such state or regulatory requirements, then such provision shall
be reformed to be in compliance with such state or regulatory requirements.

                                   ARTICLE 23

OFFSET

Each party hereto shall have, and may exercise in the event of insolvency of the
other or the non-payment by the other of obligations when due hereunder, the
right to offset any balance or balances whether on account of premiums,
commissions, claims or losses, adjustment expenses, salvage or any amount due
from that party to the other party hereto under this Contract only against any
balance or balances due or to become due to the offsetting party from the other
party under this Contract only. The terms of this Article shall apply separately
to this Contract and to each successive renewal of this Contract.

                                   ARTICLE 24

DELAYS ERRORS AND OMISSIONS

No inadvertent delay, error or omission shall be held to relieve either party
hereto of any liability which would have attached to them under this Contract if
such delay, error or omission had not been made, provided that rectification is
made immediately upon discovery.

                                   ARTICLE 25

AMENDMENTS AND ALTERATIONS

The terms herein contained comprise the whole Contract between the Reassured and
the Reinsurers and may only be changed in writing, signed by or on behalf of
both parties.

                                   ARTICLE 26

ACCESS TO RECORDS AND CLAIMS REVIEW

All documents and records in the possession of the Reassured concerning this
Contract shall be made available upon reasonable notice at the request of the
Reinsurers for inspection at the Reassured's offices by the Reinsurers or their
nominated representatives for the purposes of obtaining information concerning
this Contract or the subject matter hereof.

                                       20
<PAGE>

Specifically, the Reinsurers shall be entitled to nominate a representative to
assess the Reassured's claims and claims procedures.

For the avoidance of doubt, it is hereby expressly agreed that the rights given
to the Reinsurers by this Article shall continue in effect notwithstanding the
expiration of this Contract and shall be exercised at the Reinsurers' own
expense.

                                   ARTICLE 27

ARBITRATION

As a condition precedent to any right of action hereunder, all disputes or
differences arising out of or connected with this Contract (whether or not
arising before or after expiration) its interpretation or implementation, shall
be referred to arbitration in Farmington, Connecticut, U.S.A., the city in which
the Reassured's principal office is located.

Arbitration shall be initiated by the delivery of a written notice of demand for
arbitration by one party to the other within a reasonable time after the dispute
has arisen stating the nature of the dispute and the remedy sought. Those
Reinsurers involved in the dispute or other matter in controversy shall be
considered as one party for the purpose of allocating the cost of the
arbitration.

Each party shall appoint an individual as arbitrator and the two so appointed
shall then appoint a third arbitrator. If either party refuses or neglects to
appoint an arbitrator within sixty (60) days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third arbitrator
within sixty (60) (days of their appointment, within ten (10) days thereafter
the two arbitrators will request the American Arbitration Association ("AAA") to
appoint a third arbitrator with the qualifications set forth below in this
Article without regard to the AAA's Commercial Arbitration Rules. If the AAA
fails to appoint a third arbitrator within thirty (30) days after its receipt of
the two arbitrators' request, either party may apply to a court of competent
jurisdiction to appoint a third arbitrator with the qualifications set forth
below in this Article. The third arbitrator will immediately notify each party
of his selection. In the event of the resignation or death of any member of the
arbitrator panel, a replacement will be appointed in the same manner as the
resigning or deceased member was appointed.

Each arbitrator shall be an active or retired officer of an insurance or
reinsurance company or Underwriter at Lloyd's London; no arbitrator shall have a
personal or financial interest in the result of the arbitration, and shall not
be a present or former officer, attorney, or consultant of the Reassured or the
Reinsurer or either's affiliates.

The arbitrators shall interpret this Contract as an honorable engagement and not
as merely a legal obligation; they are relieved of all judicial formalities and
may abstain from following the strict rules of law, and shall make any award
with a view to effecting the general purpose of this Contract in a reasonable
manner with due regard to the custom and usage of the insurance and reinsurance
business.

                                       21
<PAGE>

The arbitrators shall have full discretion to make such orders as they think fit
in connection with all procedural matters in the Arbitration, including but not
limited to the conduct of the reference by written or oral submissions, the
production of documents, the examination of witnesses, and the imposition of
time limits for the taking of necessary procedural steps. The arbitrators shall
also have full discretion to make such orders as they think fit with regard to
the payment of the costs of the Arbitration including attorneys' costs and fees.
However, the arbitrators shall be precluded from awarding punitive damages
against either party.

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

Any Award or order of the arbitrators or a majority thereof shall be binding on
the parties and there shall be no right of appeal there from. For the purpose of
enforcement of any Award, an action may be brought in any Court of competent
jurisdiction.

Except as provided above, arbitration shall be based, insofar as applicable,
upon the procedures of the American Arbitration Association.

                                   ARTICLE 28

SERVICE OF SUIT

'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.

In the event of the failure of the Reinsurers to pay any amount claimed to be
due hereunder, the Reinsurers, 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 Reinsurers' rights to commence an action in any Court of competent
jurisdiction in the United States, to remove an action to a United States
District Court, or to seek a transfer of a case to another Court as permitted by
the laws of the United States or of any state in the United States. The
Reinsurers, once the appropriate Court is selected, whether such court is the
one originally chosen by the Company and accepted by Reinsurers or is determined
by removal, transfer, or otherwise, as provided for above, will comply with all
requirements necessary to 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.

                                       22
<PAGE>

Service of process in such suit may be made upon Mendes & Mount, 750 Seventh
Avenue, New York, New York 10019-6829. The above-named are authorized and
directed to accept service of process on behalf of Reinsurers in any such suit.

Further, pursuant to any statute of any state, territory or district of the
United States that makes provision therefore, the Reinsurers hereby designate
the Superintendent, Commissioner or Director of Insurance, or other officer
specified for that purpose in the statute, or his successor or successors in
office, as 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 29

CONFIDENTIALITY

The confidential nature of this Contract is acknowledged by all parties.
Moreover, the Reinsurers will only disclose to third parties, such as
regulators, auditors, rating agencies, shareholders, counsel, reinsurers and the
like, such details of this Contract as are necessary to comply with their
obligations to such third parties as part of their normal business practice.

It is a condition binding on Reinsurers hereon that they may not disclose any
details of this Contract at any time to any other third party without the
agreement of the Reassured.

                                   ARTICLE 30

REGULATORY COMPLIANCE

If any provision of this Contract shall be rendered illegal or unenforceable by
the laws, regulations or public policy of any State in the United States, 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
validity or enforceability of such provision in any other jurisdiction.

                                   ARTICLE 31

INTERMEDIARY

Carvill America Incorporated is hereby recognized as the Intermediary
negotiating this Contract for all business hereunder. All communications
including notices, premiums, return premiums, commissions, taxes, losses, loss
adjustment expenses, salvages and loss settlements relating thereto shall be
transmitted to the Reinsurer or the Reassured through Carvill America
Incorporated at The Pinnacle, 3455 Peachtree Road, N.E., Suite 375, Atlanta
Georgia 30326. Payments by the Reassured to the Intermediary

                                       23
<PAGE>

will be deemed to constitute payment to the Reinsurer. Payments by the Reinsurer
to the Intermediary will he deemed only to constitute payment to the Reassured
to the extent that such payments are actually received by the Reassured.

                                   ARTICLE 32

GOVERNING LAW

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

                                   ARTICLE 33

PARTICIPATION

This Contract obligates each of the Reinsurers for their proportion of the
interests and liabilities set forth under this Contract, such proportions being
shown in the attached Schedule(s).

                                   ARTICLE 34

SEVERAL LIABILITY NOTICE

The subscribing Reinsurers' obligations under contracts of reinsurance to which
they subscribe are several and not joint and are limited solely to the extent of
their individual subscriptions. The subscribing Reinsurers are not responsible
for the subscription of any co-subscribing Reinsurer who for any reason does not
satisfy all or part of its obligations.

IN WITNESS WHEREOF the parties hereto have, by their duly authorized
representative, executed this Contract as follows:

Signed in Farmington, Connecticut, this 19th day of April, 2006.

For and on behalf of the Reassured:

Signed by: /s/ Stephen Sills

Officer Title:  President and CEO

Print Name: Stephen Sills

And for the Reinsurer(s) by means of and in accordance with the attached
Schedule(s), which shall be considered to form an integral part of this
Contract.

                                       24
<PAGE>

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

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

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

LIMITED EXCLUSION PROVISION:

      I.    It is agreed that the policy does not apply under any liability
            coverage, to:   injury, sickness, disease, death or destruction
                            bodily injury or property damage
            with respect to which an insured under the policy is also an insured
            under a nuclear energy liability policy issued by Nuclear Energy
            Liability Insurance Association, Mutual Atomic Energy Liability
            Underwriters or Nuclear Insurance Association of Canada, or would be
            an insured under any such policy but for its termination upon
            exhaustion of its limit of liability.

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

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

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

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

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

                                       25
<PAGE>

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

            Owners, Landlords and Tenants Liability, Contractual Liability,
            Elevator Liability, Owners or Contractors (including railroad)
            Protective Liability, Manufacturers and Contractors Liability,
            Product Liability, Professional and Malpractice Liability,
            Storekeepers Liability, Garage Liability, Automobile Liability
            (including Massachusetts Motor Vehicle or Garage Liability)

      shall be deemed to include, with respect to such coverages, from the time
      specified in Clause V of this paragraph (3), the following provision
      (specified as the Broad Exclusion Provision):

BROAD EXCLUSION PROVISION.*

It is agreed that the policy does not apply:

I.    Under any Liability Coverage, to   injury, sickness, disease, death or
                                         destruction
                                         bodily injury or property damage

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

            or

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

II.   Under any Medical Payments Coverage, or under any Supplementary Payments
      Provision relating to   immediate medical or surgical relief,
                              first aid,
      to expenses incurred with respect to   bodily injury, sickness, disease or
                                             death
                                             bodily injury

                                       26
<PAGE>

      resulting from the hazardous properties of nuclear material and arising
      out of the operation of a nuclear facility by any person or organization.

III.  Under any Liability Coverage, to injury, sickness, disease, death or
                                    destruction
                                    bodily injury or property damage
      resulting from the hazardous properties of nuclear material, if

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

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

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

IV.   As used in this endorsement:

"HAZARDOUS PROPERTIES" include, radioactive, toxic or explosive properties;
"NUCLEAR MATERIAL" means source material, special nuclear material or byproduct
material; "SOURCE MATERIAL", "SPECIAL NUCLEAR MATERIAL", and "BYPRODUCT
MATERIAL" have the meanings given them in the Atomic Energy Act of 1954 or in
any law amendatory thereof; "SPENT FUEL" means any fuel element or fuel
component, solid or liquid, which has been used or exposed to radiation in a
nuclear reactor; "WASTE" means any waste material (1) containing by product
material and (2) resulting from the operation by any person or organization of
any nuclear facility included within the definition of nuclear facility under
paragraph (a) or (b) thereof; "NUCLEAR FACILITY" means

      (a)   any nuclear reactor,

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

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

                                       27
<PAGE>

            or uranium 233 or any combination thereof, or more than 250 grams
            of uranium 235,

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

      and includes the site on which any of the foregoing is located, all
      operations conducted on such site and all premises used for such
      operations; "NUCLEAR REACTOR" means any apparatus designed or used to
      sustain nuclear fission in a self-supporting chain reaction or to contain
      a critical mass of fissionable material;

            With respect to injury to or destruction of properly, the word
            "injury" or "destruction",
            "property damage" includes all forms of radioactive contamination of
            property,
            includes all forms of radioactive contamination of properly.

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

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

            or

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

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

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

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

                                       28
<PAGE>

         NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY-REINSURANCE-CANADA

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

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

      Personal Liability.
      Farmers' Liability.
      Storekeepers' Liability.

      which become effective on or after 31th December 1992, shall be deemed to
      include, from their inception dates and thereafter, the following
      provision:

      Limited Exclusion Provision.

      This Policy does not apply to bodily injury or property damage with
      respect to which the Insured is also insured under a contract of nuclear
      energy liability insurance (whether the Insured is unnamed in such
      contract and whether or not it is legally enforceable by the Insured)
      issued by the Nuclear Insurance Association of Canada or any other group
      or pool of insurers or would be an Insured under any such policy but for
      its termination upon exhaustion of its limits of liability.

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

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

      Broad Exclusion Provision.

      It is agreed that this Policy does not apply:

      (a)   to liability imposed by or arising from any nuclear liability act,
            law or statute or any law amendatory thereof; nor

                                       29
<PAGE>

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

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

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

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

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

                  As used in this Policy:

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

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

      3.    The term "nuclear facility" means:

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

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

                                       30
<PAGE>

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

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

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

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

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

NMA 1979a (01/04/96) Form approved by Lloyd's Underwriters' Non-Marine
Association Limited

                                       31
<PAGE>

           NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994)
                      (WORLDWIDE EXCLUDING U.S.A. & CANADA)

This agreement shall exclude Nuclear Energy Risks whether such risks are written
directly and/or by way of reinsurance and/or via Pools and/or Associations.

For all purposes of this agreement Nuclear Energy Risks shall mean all first
party and/or third party insurances or reinsurances (other than Workers'
Compensation and Employers' Liability) in respect of:

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

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

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

      a)    The generation of nuclear energy; or

      b)    The Production, Use or Storage of Nuclear Material.

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

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

Except as undernoted, Nuclear Energy Risks shall not include: -

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

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

Provided always that such insurance or reinsurance shall exclude the perils of
irradiation and contamination by Nuclear Material.

However, the above exemption shall not extend to: -

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

      (a)   Nuclear Material;

                                       32
<PAGE>

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

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

         - Fire, lightning, explosion;
         - Earthquake;
         - Aircraft and other aerial devices or articles dropped therefrom;
         - Irradiation and radioactive contamination;
         - Any other peril insured by the relevant local Nuclear Insurance Pool
         and/or Association;

         in respect of any other Property not specified in (1) above which
         directly involves the Production, Use or Storage of Nuclear Material as
         from the introduction of Nuclear Material into such Property.

Definitions

"Nuclear Material" means: -

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

(ii)  Radioactive Products or Waste.

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

"Nuclear Installation" means: -

(i)   Any Nuclear Reactor;

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

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

"Nuclear Reactor" means any structure containing nuclear fuel in such an
arrangement that a self sustaining chain process of nuclear fission can occur
therein without an additional source of neutrons.

                                       33
<PAGE>

"Production, Use or Storage of Nuclear Material" means the production,
manufacture, enrichment, conditioning, processing, reprocessing, use, storage,
handling and disposal of Nuclear Material.

"Property" shall mean all land, buildings, structures, plant, equipment,
vehicles, contents (including but not limited to liquids and gases) and all
materials of whatever description whether fixed or not.

"High Radioactivity Zone or Area" means: -

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

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

                                       34<PAGE>
                                                                   EXHIBIT 10.40

                                                                          [LOGO]
                                                           CARVILL AMERICA, INC.
                                                         The Pinnacle, Suite 375
                                                         3455 Peachtree Road, NE
                                                          Atlanta, Georgia 30326
                                                         Telephone: 404-475-0314
                                                         Toll Free: 877-309-8990
                                                         Facsimile: 404-475-0439

TITLE                               EXCESS CESSION REINSURANCE CONTRACT

BETWEEN                             DARWIN NATIONAL ASSURANCE COMPANY, DARWIN
                                    SELECT INSURANCE COMPANY, CAPITOL INDEMNITY
                                    CORPORATION, CAPITOL SPECIALTY INSURANCE
                                    CORPORATION, PLATTE RIVER INSURANCE COMPANY
                                    AND/OR ANY OTHER ASSOCIATED, AFFILIATED OR
                                    SUBSIDIARY COMPANIES OF ALLEGHANY INSURANCE
                                    HOLDING LLC, BUT ONLY IN RESPECT OF BUSINESS
                                    UNDERWRITTEN BY DARWIN PROFESSIONAL
                                    UNDERWRITERS, INC.

                                    AND

                                    THE REINSURERS SIGNATORY HERETO

COMMENCING                          SEPTEMBER 1, 2005

U.S. CLASSIFICATION                 U.S. REINSURANCE

                                  Page 1 of 30
<PAGE>

CONTENTS

   PREAMBLE              IDENTITY OF PARTIES
   ARTICLE 1             BUSINESS REINSURED
   ARTICLE 2             EXCLUSIONS
   ARTICLE 3             COVER, LIMIT AND RETENTION
   ARTICLE 4             TERRITORIAL SCOPE
   ARTICLE 5             PERIOD
   ARTICLE 6             SPECIAL TERMINATION CLAUSE
   ARTICLE 7             FOLLOW THE FORTUNES
   ARTICLE 8             EXCESS OF ORIGINAL POLICY LIMITS
   ARTICLE 9             EXTRA-CONTRACTUAL OBLIGATIONS
   ARTICLE 10            PREMIUM
   ARTICLE 11            CEDING COMMISSION
   ARTICLE 12            ACCOUNTS AND REPORTS
   ARTICLE 13            NOTICE OF LOSS AND LOSS SETTLEMENTS
   ARTICLE 14            INTEREST PENALTY
   ARTICLE 15            UNEARNED PREMIUM AND LOSS RESERVES
   ARTICLE 16            CURRENCY
   ARTICLE 17            TAX PROVISIONS
   ARTICLE 18            INSOLVENCY OF THE REASSURED
   ARTICLE 19            OFFSET
   ARTICLE 20            DELAYS, ERRORS AND OMISSIONS
   ARTICLE 21            AMENDMENTS AND ALTERATIONS
   ARTICLE 22            ACCESS TO RECORDS AND CLAIMS REVIEW
   ARTICLE 23            ARBITRATION
   ARTICLE 24            SERVICE OF SUIT
   ARTICLE 25            CONFIDENTIALITY
   ARTICLE 26            REGULATORY COMPLIANCE
   ARTICLE 27            INTERMEDIARY
   ARTICLE 28            GOVERNING LAW
   ARTICLE 29            PARTICIPATION
   ARTICLE 30            SEVERAL LIABILITY NOTICE

ATTACHMENTS:

1.    NUCLEAR INCIDENT EXCLUSION CLAUSES - LIABILITY - REINSURANCE U.S.A/CANADA

2.    NUCLEAR ENERGY RISKS EXCLUSION CLAUSE - REINSURANCE - 1994 (WORLDWIDE
      excluding U.S.A and CANADA)

                                  Page 2 of 30
<PAGE>

                       EXCESS CESSION REINSURANCE CONTRACT

PREAMBLE

This Contract is made and entered into between Darwin National Assurance
Company, Darwin Select Insurance Company, Capitol Indemnity Corporation, Capitol
Specialty Insurance Corporation, Platte River Insurance Company and/or any other
associated, affiliated or subsidiary companies of Alleghany Insurance Holding
LLC, but only in respect of business underwritten by Darwin Professional
Underwriters Inc. of 9 Farm Springs Road, Farmington, Connecticut 06032 (NAIC
Group Code 10472) (hereinafter referred to as "the Reassured") and the
Reinsurers signatory hereto (hereinafter referred to as "the Reinsurers"), on
the following terms and conditions:

                                    ARTICLE 1

BUSINESS REINSURED

This Contract applies to policies of insurance classified by the Reassured as
Managed Care Organizations Errors and Omissions Liability.

It is understood and agreed all accounts covered hereon are to be approved prior
to binding by the Darwin Professional Underwriters Chief Underwriting Officer,
Senior Vice President of Underwriting or Healthcare Practice Leader.

For the purposes of this Contract, the terms "policy", "policies" or "original
policies" as used herein shall be understood to mean all binders, policies,
contracts, endorsements or other evidence of insurance issued in the name of the
Reassured.

                                    ARTICLE 2

EXCLUSIONS

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

1.    Nuclear Incidents, in accordance with the attached Nuclear Incident
      Exclusion Clauses - Liability - Reinsurance - U.S.A./Canada.

2.    Nuclear Energy Risks, in accordance with the attached Nuclear Energy Risks
      Exclusion Clause (Reinsurance) (1994) (Worldwide excluding U.S.A. and
      Canada).

3.    All liability of the Reassured arising by contract, operation of law, or
      otherwise, from its participation or membership, whether voluntary or
      involuntary, in any Insolvency Fund. "Insolvency Fund" includes any
      guarantee fund, insolvency fund, plan, pool, association, fund or other
      arrangement, howsoever denominated, established or governed, which
      provides for any assessment of or payment or assumption by the Reassured
      of part or all of any claim, debt, charge, fee or other obligation of an
      insurer, or its successors or assigns, which has been declared by any
      competent authority to be insolvent, or which is

                                  Page 3 of 30
<PAGE>
      otherwise deemed unable to meet any claim, debt, charge, fee or other
      obligation in whole or in part.

4.    Liability assumed by the Reassured as a Member or Reinsurer of any Pool,
      Association or Syndicate.

5.    Financial Guarantee and Insolvency Insurance.

6.    Surety Business.

7.    Reinsurance Assumed Business, other than policies "fronted" by another
      carrier and individually underwritten by Darwin Professional Underwriters,
      Inc, and Inter-Company Pooling Arrangements.

8.    Retrospectively rated business.

9.    Any account where the Reassured does not provide USD10,000,000 in
      underlying MCO E&O coverage on either a primary or on an underlying excess
      basis.

10.   The following accounts: Aetna Inc., Cigna Corp., United Healthgroup Inc.
      and Wellpoint Inc..

It is understood and agreed that for all accounts submitted for special
acceptance, the Reassured will provide to Reinsurers the following information
only:

      -     A copy of the underwriting work-up on the account.

      -     An account loss history.

      -     The terms, conditions and pricing of the program the Reassured
            expect to quote or have quoted already using their USD10,000,000 of
            net and treaty capacity.

      -     The terms, conditions and pricing of all other carriers' underlying
            layers.

      -     The terms, conditions and pricing that the Reassured propose to
            offer within this Contract.

Upon receipt of the above information, the Reinsurers will provide their
underwriting decision on any account submitted for special acceptance within 2
working days it being understood that if not received within the allotted
timeframe the account will be automatically approved and accepted under this
Contract.

                                   ARTICLE 3

COVER, LIMIT AND RETENTION

This contract applies to all original policies coming within the scope of this
Contact which are issued by the Reassured for limits up to USD10,000,000 each
and every loss, each Insured, each

                                  Page 4 of 30
<PAGE>

policy/program excess of a minimum underlying of USD10,000,000 each and every
loss, each Insured, each policy/program.

Reinsurers hereon to bear their proportional share of all loss adjustment and
defense cost expenses, as per the original policy. Original policies may provide
for costs inclusive or costs in addition coverage. Where coverage is issued on a
costs inclusive basis, costs shall be included within the limit hereon. Where
coverage is issued on a cost in addition basis, pro rata costs shall be payable
in addition to the limit hereon.

The Reassured shall be at liberty to omit cessions hereunder, when they consider
it in the best interests of the Reinsurers to do so.

The meaning of "each and every loss", "claim", "claim made" and "losses
discovered" shall follow the definitions in the policies covered hereunder, as
finally determined by the Reassured. The Reassured shall also be the determinant
of what constitutes "each Insured", "each coverage", "each section" and "each
policy".

Where the Reassured issues more than one policy to the same original insured
covering the same class of business, (such as on a layered basis), then the
combination of such policies shall be considered a program for the purposes
hereof, as reasonably determined by the Reassured.

It is warranted that the Reassured shall retain not less than 10.0% of liability
and premium in respect of each cession hereunder, net and unreinsured, except
for internal reinsurance and/or Catastrophe Excess of Loss Reinsurance.

Notwithstanding any other provision of this Contract, the maximum recoverable
hereon shall not exceed (for 100%) USD50,000,000.

                                   ARTICLE 4

TERRITORIAL SCOPE

This Contract shall cover wherever the original policies cover.

                                   ARTICLE 5

PERIOD

This Contract shall cover claims made on original policies issued or renewed
during the period September 1, 2005 12:01 a.m. Standard Time to October 1st,
2006 12:01 a.m. Standard Time at the place and location of risks insured.

The maximum original policy period shall be 12 months plus odd time not to
exceed 18 months in all, plus extended reporting period coverage or
endorsements, as original. Such extended reporting period coverage or
endorsements shall be limited to 36 months or so deemed, or such longer period
as required by State Regulations.

                                  Page 5 of 30

<PAGE>

For the purposes of this Contract, any extension, discovery period or extended
reporting endorsement attaching to a policy covered hereunder shall be
considered as part of the period of the said policy, subject to the provision
that a separate limit of liability will not apply in respect thereof.

Upon expiry of this Contract, policies in force at the effective time and date
of expiration hereof shall continue to be covered hereunder until their
individual natural expiration or termination dates, whichever sooner, including
extensions, discovery periods or other similar extended reporting endorsements
attaching to such policies. The Reassured may however, subject to agreement by
Reinsurers hereon, terminate the liability of the Reinsurers for claims made or
losses discovered, as applicable on or after the effective time and date of
expiration hereof and, in such event, the unearned premium on all ceded policies
attaching hereunder shall be returned to the Reassured by the Reinsurer less any
ceding commission previously allowed on unearned premium.

                                   ARTICLE 6

SPECIAL TERMINATION CLAUSE

A.    Either party may terminate this Contract upon 30 days notice in the event
      that the other party's surplus has been reduced by 30% or more of the
      amount of surplus at June 30th, 2005.

B.    The Reassured may terminate the Reinsurer's participation hereon at any
      time by giving 30 days' prior written notice to the Reinsurer in the event
      that:

      (1)   A State Insurance Department or other legal authority has ordered
            the subscribing Reinsurer to cease writing business; or

      (2)   The subscribing Reinsurer has become insolvent or has been placed
            into liquidation or receivership or proceedings have been instituted
            against the subscribing Reinsurer for the appointment of a receiver,
            liquidator, rehabilitator, conservator or trustee in bankruptcy, or
            other agents known by whatever name, to take possession of its
            assets or control of its operation; or

      (3)   The subscribing Reinsurer has reinsured its entire liability under
            this Contract without the Reassured's prior written consent.
            However, the Reinsurer shall be at liberty to effect catastrophe
            excess and/or aggregate stop loss excess reinsurance; or

      (4)   The subscribing Reinsurer has ceased assuming new and renewal treaty
            reinsurance business; or

      (5)   The subscribing Reinsurer experiences a downgrading in their
            financial strength rating from Standard and Poor's Group below BBB
            or a downgrading in rating from A.M. Best Company below A-.

In the event of such termination, the liability of the Reinsurer shall be
terminated as follows:

                                  Page 6 of 30
<PAGE>

Policies in force at the effective time and date of termination of this Contract
shall continue to be covered hereunder until their individual expiration dates,
including extensions, discovery periods or other such similar reporting
endorsements or provisions attached thereto. For rating purposes, the applicable
Original Gross Net Written Premium Income shall be calculated on policies issued
or renewed from the inception date of this Contract to the effective time and
date of termination of this Contract.

The Reassured may however terminate the liability of the Reinsurer for claims
made or losses discovered, as original, after the effective time and date of
termination of this Contract and, in such event, the unearned premium at the
termination date applicable to in force policies, including extensions,
discovery periods or other similar extended reporting endorsements or provisions
attached thereto, shall be returned to the Reassured by the Reinsurer less any
ceding commission previously allowed on unearned premium.

                                   ARTICLE 7

FOLLOW THE FORTUNES

This Contract shall be construed as an honorable undertaking between the
Reassured and the Reinsurers and shall not be defeated by technical legal
restrictions, it being the intention of this Contract that the fortunes of the
Reinsurers shall follow in all respects the fortunes of the Reassured on all
original policies and contracts of insurance ceded to this Contract.

It is understood however, that this Contract is a contract of reinsurance
separate and distinct from the original policies issued by the Reassured. Except
as provided for in INSOLVENCY OF THE REASSURED the Reinsurers will not, under
any circumstances whatsoever, be directly liable to the original insureds.

                                   ARTICLE 8

EXCESS OF ORIGINAL POLICY LIMITS

In addition to the coverage afforded under COVER, LIMIT AND RETENTION should the
Reassured incur additional liability as the result of an award in excess of
their original policy limit as defined below, the Reinsurers shall accept the
additional liability incurred solely on cessions made hereunder, up to an
additional Contract limit in addition to any contractual loss hereunder (subject
to the Reassured's 10.0% co-participation hereon), it being understood the
maximum additional recoverable in respect of specific excess of original policy
limits and extra contractual obligations coverage shall be USD10,000,000 any one
claim. However, specific Excess of Original Policy Limits coverage afforded
under the Reassured's underlying Excess of Loss and Excess Cession Reinsurance
Contracts shall inure to the benefit of Reinsurers hereon. No separate
underlying retention of USD10,000,000 shall apply to such additional Excess of
Original Policy Limits coverage hereunder.

Awards in excess of the original policy limit are defined as contractual losses
which the Reassured may be legally liable to pay, but in excess of the original
policy limit, such losses in excess of the original policy limit having been
incurred because of, but not limited to, the

                                  Page 7 of 30
<PAGE>

following: failure by the Reassured to settle within the original policy limit
or by reason of alleged or actual negligence, fraud or bad faith in rejecting an
offer of settlement or in the preparation of the defense or in the trial of any
action against an insured or in the preparation or prosecution of an appeal
consequent upon such action.

The date on which any liability in excess of original policy limits is incurred
by the Reassured shall be deemed, in all circumstances, to be the date the
original claim was made or occurred.

However, this Article shall not apply where such awards in excess of original
policy limit have been incurred due to the fraud of a member of the Board of
Directors or a corporate officer of the Reassured acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any
claim.

                                   ARTICLE 9

EXTRA-CONTRACTUAL OBLIGATIONS

In addition to the coverage afforded under COVER, LIMIT AND RETENTION should the
Reassured incur additional liability as the result of an award in respect of any
extra-contractual obligations, as defined below, the Reinsurers shall accept the
additional liability incurred solely on cessions made hereunder, up to an
additional Contract limit in addition to any contractual loss hereunder (subject
to the Reassured's 10.0% co-participation hereon), it being understood the
maximum additional recoverable in respect of specific excess of original policy
limits and extra contractual obligations coverage shall be USD$10,000,000 any
one claim. However, specific Extra Contractual Obligations coverage afforded
under the Reassured's underlying Excess of Loss and Excess Cession Reinsurance
Contracts shall inure to the benefit of Reinsurers hereon. No separate
underlying retention of USD10,000,000 shall apply to such additional Extra
Contractual Obligations coverage hereunder.

"Extra-contractual obligations" are defined as those liabilities not covered
under any other provision of this Contract and which arise from the handling of
any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Reassured to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against an insured or in the preparation or prosecution
of an appeal consequent upon such action.

The date on which any extra-contractual obligation is incurred by the Reassured
shall be deemed, in all circumstances, to be the date the original claim was
made or occurred.

Recoveries, collectibles or retentions from any other form of insurance or
reinsurance including deductibles or self insured retentions that protect the
Company against Extra Contractual Obligations shall inure to the benefit of the
Reinsurers and shall be deducted from the total amount of Extra Contractual
Obligations for purposes of determining the loss hereunder.

However, this Article shall not apply where such extra-contractual obligations
have been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the

                                  Page 8 of 30
<PAGE>

Reassured acting individually or collectively or in collusion with any
individual or corporation or any other organization or party involved in the
presentation, defense or settlement of any claim.

                                   ARTICLE 10

PREMIUM

In consideration of the liabilities undertaken by the Reinsurers in accordance
with the terms of this Contract, the Reassured shall pay to the Reinsurers their
proportion of the Reassured's Original Gross Net Written Premium for limits
attaching hereon, generated in accordance with the Increased Limit Factors
(ILF's) established by the Reassured for each class of business covered
hereunder.

All accounts covered hereunder will be subject to the following minimum premium
criteria or so deemed:

      1.    Any account with 2,500,000 or less enrollees - minimum USD12,500 per
            million of policy limit.

      2.    Any account with 2,500,001 - 7,500,000 enrollees - minimum USD15,000
            per million of policy limit.

      3.    Any account with more than 7,500,000 enrollees - minimum USD25,000
            per million of policy limit.

Reference to number of enrollees above shall be in respect of the number of
enrollees at the time the account is bound.

                                   ARTICLE 11

CEDING COMMISSION

The Reinsurers shall allow the Reassured to deduct and retain for their own
benefit as ceding commission the original acquisition costs plus 12.5% of ceded
Original Gross Net Written Premium payable to the Reinsurers in accordance with
the terms of the PREMIUM Article, not to exceed 22.5% in the aggregate for all
cessions covered hereunder. A commission calculation will be prepared by the
Reassured within 60 days of the expiry of this Contract, and in the event the
commission charged exceeds the maximum allowed the difference will be returned
to the Reinsurers with the commission calculation. There shall be a further
adjustment 12 months after the expiry hereof.

                                   ARTICLE 12

ACCOUNTS AND REPORTS

Accounts shall be rendered quarterly in arrears. Premium and bordereaux of
cessions shall be rendered by the Reassured within 45 days of the end of each
calendar quarter, that is within 45 days of September 30, 2005 and quarterly
thereafter.

                                  Page 9 of 30
<PAGE>

                                   ARTICLE 13

NOTICE OF LOSS AND LOSS SETTLEMENTS

The Reinsurers agree to abide by all loss settlements of the Reassured which at
its sole discretion shall adjust, settle or compromise all losses and all such
adjustments, settlements or compromises shall be binding upon Reinsurers subject
to the terms, conditions and limitations of the original policies and this
Contract.

The Reassured shall provide individual loss reports to the Reinsurers of all
claims reserved at or above USD5,000,000, and in the event of loss settlements
by the Reassured, the Reinsurers agree to settle to the Reassured their
proportion of such loss settlements immediately upon receipt of satisfactory
proof of loss.

Where the Reassured's original policies and/or specific coverage parts of their
original policies provide for loss adjustment expenses in addition to limit, all
loss adjustment expenses paid by the Reassured shall be apportioned in
proportion to the respective interests in the loss of the parties hereto as such
interests finally appear and shall be in addition to their share of the loss
recoverable hereunder. In the event a verdict or judgment is reduced by an
appeal or a settlement, subsequent to the entry of the judgment, resulting in an
ultimate saving on such verdict or judgment, or a judgment is reversed outright,
the expense incurred in securing such final reduction or reversal shall be
pro-rated between the Reinsurers and the Reassured in the proportion that each
benefits from such reduction or reversal; and the expenses incurred up to the
time and date of the original verdict or judgment shall be pro-rated in
proportion to each party's interest in such verdict or judgment.

Notwithstanding the foregoing, in the event that the Reassured's original
policies and/or specific coverage parts of their original policies are issued
with loss adjustment expenses included within the original policy limit, such
loss adjustment expenses shall be included as Loss for the purposes of recovery
hereunder.

In the event of external legal or external adjustment expenses, including
outside monitoring counsel expenses, which are incurred by the Reassured in
connection with a claim or potential claim hereunder and which are not the
subject of the Reassured's original policy, then Reinsurers shall also be liable
for their proportion of such expenses in addition to their share of the loss
recoverable hereunder.

The Reinsurers shall also accept additional liability, solely on cessions made
hereunder, for legal expenses incurred in respect of coverage questions and
legal actions in connection with a claim or potential claim hereunder
(hereinafter referred to as "declaratory judgment and/or rescission expenses").
It being understood and agreed that:

      1.    When there is no contractual loss, other than declaratory judgment
            and/or rescission expenses, the declaratory judgment and/or
            rescission expenses shall be considered a Loss for the purposes of
            recovery hereunder.

      2.    When a contractual loss, exclusive of declaratory judgment and/or
            rescission expenses, is incurred hereunder, the Reinsurers shall be
            liable for their

                                  Page 10 of 30
<PAGE>

            proportionate share of such declaratory judgment and/or rescission
            expenses, as the respective interests in the loss of the parties
            hereto finally appear, up to an additional limit of this Contract in
            addition to any Loss recoverable hereunder.

Declaratory judgment expense as used in this Contract shall mean all expenses
incurred by the Reassured in connection with declaratory judgment actions
brought to determine the Reassured's defense and/or indemnification obligations
that are allocable to specific policies and claims subject to this Contract. Any
declaratory judgment expense shall be deemed to have been fully incurred by the
Reassured on the date of the actual or alleged loss under the Reassured's policy
giving rise to the action.

For the purposes of this Contract loss adjustment expenses shall include all
expenses of litigation, including post judgment interest, but shall exclude the
salaries of regular employees and all office expenses of the Reassured.

All salvages, recoveries or payments recovered or received subsequent to a loss
settlement under this Contract shall be applied as if recovered or received
prior to the aforesaid settlement and all necessary adjustments shall be made by
the parties hereto.

                                   ARTICLE 14

INTEREST PENALTY

The provisions of this Article shall not be implemented unless specifically
invoked, in writing, by the Reassured or Reinsurer. The interest amounts
provided for in this Article will apply to the Reinsurer or to the Reassured in
the following circumstances:

      1.    Loss payment owed by the Reinsurer to the Reassured shall have a due
            date to the Reassured of 45 calendar days following the date of the
            Reinsurer's receipt of the billing, but no later than 90 days from
            the Reassured's date of the billing.

      2.    Payment of any premium installments shall be due to the Reinsurer
            within 30 calendar days of the date specified in this Contract. Any
            premium adjustments will be due by the debtor party within 60
            calendar days of the date specified in this Contract.

      3.    Payment of return premiums, commissions, profit sharing, or any
            other amounts not provided in paragraphs 1 or 2 above, shall be due
            by the debtor party within 60 calendar days of the due date
            specified in this Contract. If no due date is specified, the due
            date shall be 60 days following the date of the debtor party's
            receipt of the billing, but no later than 90 days from the creditor
            party's date of the billing.

      4.    Failure by the Reinsurer or Reassured to comply with their
            respective payment obligations within the time periods as herein
            provided will result in a compound interest penalty payable at a
            rate equal to the 90 day Treasury Bill rate as published in the
            Money Rate Section or any successor section of THE WALL STREET
            JOURNAL on the first business day following the date a remittance

                                  Page 11 of 30
<PAGE>

            becomes due, plus 2% per annum, to be compounded and adjusted
            quarterly. Any interest which occurs pursuant to this Article shall
            be calculated by the party to which it is owed. The accumulation of
            the number of days that any payment is past due will stop on the
            date the Intermediary, where applicable, receives payment.

      5.    The validity of any claim or payment may be contested under the
            provisions of this Contract. If the debtor party prevails in such
            action, there shall be no interest penalty due. Otherwise, any
            interest will be calculated and due as outlined above.

      6.    If a Reinsurer advances payment of any claim it is contesting, and
            prevails such action, the Reassured shall return such payment plus
            pay interest on same, calculated as per the provisions of this
            Article.

      7.    Any interest which occurs pursuant to this Article may be waived by
            the party to which it is owed. Further, any interest which is
            calculated pursuant to this Article that is USD100 or less shall be
            waived. Waiver of such interest, however, shall not affect the
            waiving party's right to similar interest for any other failure by
            the other party to make payment when due under this Article.

      8.    Nothing in this Article shall diminish any legal remedies which
            either party may have against the other.

                                   ARTICLE 15

UNEARNED PREMIUM AND LOSS RESERVES

This Article applies only to those Reinsurers signatory hereto who do not
qualify for credit under the regulations of the State insurance authorities or
departments which have jurisdiction over the Reassured's reserves.

The Reassured agrees that when, for its Annual Convention Statement purposes, it
files with the authorities or departments mentioned above or sets up in its
books statutory reserves for known outstanding losses and allocated loss
expenses reinsured by this Contract, for unearned premium in respect of business
coming within the scope of this Contract, or for incurred but not reported
losses (IBNR), hereinafter "The Stated Reserves", it shall forward to the
Reinsurers a clear statement of the Reinsurers' proportion of The Stated
Reserves detailing separately the amounts involved for known outstanding losses
and allocated loss expenses and for unearned premium and IBNR, and also how
those amounts are calculated. Reserves for IBNR shall be equal to the actual
amount of IBNR carried on the books of the Reassured for statutory reporting
purposes.

The Reinsurers, promptly upon receipt of the Reassured's statement, shall apply
for, and secure delivery to the Reassured of, clean, irrevocable and
unconditional Letters of Credit or such equivalent funding acceptable to the
Reassured, for the benefit of the Reassured in amounts equal to their proportion
of The Stated Reserves.

All Letters of Credit procured pursuant to this Contract shall be issued by a
Bank which is a Member of the Federal Reserve and acceptable to the authorities
or departments mentioned in the

                                  Page 12 of 30
<PAGE>

first paragraph of this Article current at the date of the Reassured's
statement. Such Letter of Credit shall be in full conformity with the
requirements of such authorities or departments.

Further, all such Letters of Credit shall be "Evergreen" in that they shall be
issued for an initial period of not less than one year and shall be
automatically extended for one year from their original expiration dates and
subsequently from their extended expiration dates unless and until, at least
thirty days before any expiration date, the issuing bank gives notice to the
Reassured by registered mail that the issuing bank elects not to extend the life
of the Letter of Credit in question beyond its forthcoming expiration date.

In consideration of the contract of the Reinsurers to furnish such Letters of
Credit to the Reassured to enable it to obtain credit for the reinsurance
provided under this Contract, the Reassured hereby undertakes to hold such
Letters of Credit and the proceeds of any drawings made upon them in trust for
the Reinsurers and to use and apply the proceeds of any such drawings for the
following purposes only:

a.    To pay the Reinsurers' share or to reimburse the Reassured for that share
      of any liability for loss or allocated loss expense reinsured by this
      Contract or for unearned premium in respect of business coming within the
      scope of this Contract;

b.    To refund to the Reinsurers any balance by which the amount of the Letter
      of Credit exceeds the Reinsurers' proportion of any liability for loss or
      allocated loss expense reinsured by this Contract, incurred but not
      reported losses (IBNR) or for unearned premium in respect of business
      coming within the scope of this Contract.

c.    In the event that one or more of the Reinsurers participating in the
      Letter of Credit gives timely notice of cancellation or non-renewal of
      their participation in the Letter of Credit and provided that the
      obligations secured by the Letter of Credit remain unliquidated and
      undischarged at the time of receipt by the Reassured of such notice, the
      Reassured shall create a cash deposit account, separate from its own
      assets, in an amount equal to the participation of the canceling or
      non-renewing Reinsurer(s) in the Letter of Credit. That cash deposit
      account may then be used as in subparagraphs a. and b. above. It is
      understood and agreed that this procedure may only be implemented before
      the expiry of the notice period in respect of cancellation or non-renewal
      and that if it is implemented, the Reassured will ensure that a rate of
      interest is obtained for the Reinsurers on such a deposit account that is
      at least equal to the rate which would be paid by Citibank N.A. in New
      York, and further that the Reassured will account to the Reinsurers on an
      annual basis for all interest accruing on the cash deposit account for the
      benefit of the Reinsurers.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of drawings made by the Reassured on the Letters of Credit issued
under this Contract or in connection with the disposition of any funds so
withdrawn, except to ensure that drawings are made only upon the order of
properly authorized representatives of the Reassured.

All Letters of Credit procured for the Reassured under this Contract shall be
adjusted at annual intervals, or more frequently as agreed (but never more
frequently than quarterly), to reflect the

                                  Page 13 of 30
<PAGE>

current balance of the Reinsurers' proportion of the Reassured's known
outstanding loss and allocated loss expense reserves and unearned premium
reserves, and the Reassured shall produce a statement for this purpose detailed
in the same way as the original statement on the basis of which such Letters of
Credit were first issued. If the statement shows that the Reinsurers' proportion
of such losses and allocated expenses, IBNR or unearned premium reserves exceeds
the current amount of the Letters of Credit, the Reinsurers shall, within thirty
days after receipt of the statement, secure the amendment of the Letters of
Credit increasing their amount to the amount of the current balance of these
items. If, however, the statement shows that the Reinsurers' proportion of the
current balance of those items is less than the amount of the Letters of Credit
the Reassured shall, within thirty days of receipt of a written request from the
Reinsurers to do so, facilitate the release of the excessive security by
authorizing the amendment of the Letters of Credit so as to reduce their amount
to the current balance required.

All expenses incurred in the establishment or maintenance of such Letters of
Credit shall be paid by the Reinsurers.

                                   ARTICLE 16

CURRENCY

The currency to be used for all purposes of this Contract shall be United States
Dollars. All amounts paid or received by the Reassured in any other currency
shall be converted into United States Dollars at the rates of exchange at which
such transactions are converted in the books of the Reassured.

                                   ARTICLE 17

TAX PROVISIONS

The Reassured shall be liable for all taxes (except Federal Excise Tax) levied
on it with respect to premiums payable to the Reinsurers hereunder. Federal
Excise Tax applies only to those Reinsurers, excepting Underwriters at Lloyd's,
London and other Reinsurers exempt from the Federal Excise Tax, who are
domiciled outside the United States of America.

To the extent that such premium is subject to Federal Excise Tax, the Reinsurers
hereby agree to allow as a deduction from the premium, for the purpose of paying
Federal Excise Tax, all applicable percentages of the premium payable hereon.

In the event of any return premium becoming due hereunder the Reinsurers will
deduct all applicable percentages from the amount of the return, and the
Reassured or its agents shall take steps to recover the tax from the Government
of the United States of America.

In consideration of the terns under which this Contract is issued, the Reassured
undertakes not to claim any deduction in respect of premium payable hereon when
making tax returns, other than Income or Profits tax returns, to any fiscal
authority of the United States of America or any State or Territory thereof.

                                  Page 14 of 30
<PAGE>

                                   ARTICLE 18

INSOLVENCY OF THE REASSURED

Amounts due to the Reassured under this Contract shall be payable by the
Reinsurers on the basis of the liability of the Reassured under the original
policies reinsured hereunder without diminution because of the insolvency of any
one or all of the Reassured Companies.

In the event of the insolvency of the Reassured, the Liquidator or Receiver or
Statutory Successor of the Reassured shall give written notice to the Reinsurers
of the pendency of any claim against the insolvent Reassured on the original
policies reinsured hereunder within a reasonable time after such claim is filed
in the insolvency proceedings. During the pendency of such claim the Reinsurers
may investigate such claim and intervene, at their own expense, in the
proceedings where such claim is to be adjudicated and interpose any defense or
defenses which they may deem available to the Reassured or its Liquidator or
Receiver or Statutory Successor. The expense thus incurred by the Reinsurers
shall be chargeable, subject to court approval, against the insolvent Reassured
as part of the expense of liquidation to the extent of a proportionate share of
the benefit which may accrue to the Reassured solely as a result of the defense
so undertaken by the Reinsurers.

When two or more Reinsurers are involved in the same claim and a majority in
interest elect to investigate the claim and/or to interpose defense to such
claim, the expense shall be apportioned in accordance with the terms of the
above paragraph as though such expense had been incurred by the Reassured.

Should the Reassured go into liquidation or should a receiver be appointed, the
Reinsurers shall be entitled to deduct from any sums which may be or may become
due to the Reassured under this Contract any sums which are due to the
Reinsurers from the Reassured under this Contract and which are payable at a
fixed or stated date, as well as any other sums due to the Reinsurers which are
permitted to be offset under applicable law.

In the event of the insolvency of the Reassured, the amounts due to the
Reassured under this Contract shall be payable by the Reinsurers directly to the
Reassured or to its Liquidator, Receiver or Statutory Successor.

It is the mutual intent of the parties that, in the event of the insolvency of
the Reassured, this Article shall be read to conform with the state or
regulatory requirements of the jurisdiction in which the liquidation or
receivership is conducted. In the event that any provision of this Article is in
conflict with such state or regulatory requirements, then such provision shall
be reformed to be in compliance with such state or regulatory requirements.

                                   ARTICLE 19

OFFSET

Each party hereto shall have, and may exercise in the event of insolvency of the
other or the non-payment by the other of obligations when due hereunder, the
right to offset any balance or balances whether on account of premiums,
commissions, claims or losses, adjustment expenses,

                                  Page 15 of 30
<PAGE>

salvage or any amount due from that party to the other party hereto under this
Contract only against any balance or balances due or to become due to the
offsetting party from the other party under this Contract only. The terms of
this Article shall apply separately to this Contract and to each successive
renewal of this Contract.

                                   ARTICLE 20

DELAYS, ERRORS AND OMISSIONS

No inadvertent delay, error or omission shall be held to relieve either party
hereto of any liability which would have attached to them under this Contract if
such delay, error or omission had not been made, provided that rectification is
made immediately upon discovery.

                                   ARTICLE 21

AMENDMENTS AND ALTERATIONS

The terms herein contained comprise the whole Contract between the Reassured and
the Reinsurers and may only be changed in writing, signed by or on behalf of
both parties.

                                   ARTICLE 22

ACCESS TO RECORDS AND CLAIMS REVIEW

All documents and records in the possession of the Reassured concerning this
Contract shall be made available upon reasonable notice at the request of the
Reinsurers for inspection at the Reassured's offices by the Reinsurers or their
nominated representatives for the purposes of obtaining information concerning
this Contract or the subject matter hereof.

Specifically, the Reinsurers shall be entitled to nominate a representative to
assess the Reassured's claims and claims procedures.

For the avoidance of doubt, it is hereby expressly agreed that the rights given
to the Reinsurers by this Article shall continue in effect notwithstanding the
expiration of this Contract and shall be exercised at the Reinsurers' own
expense.

                                   ARTICLE 23

ARBITRATION

As a condition precedent to any right of action hereunder, all disputes or
differences arising out of or connected with this Contract (whether or not
arising before or after expiration) its interpretation or implementation, shall
be referred to arbitration in Farmington, Connecticut, U.S.A., the city in which
the Reassured's principal office is located.

Arbitration shall be initiated by the delivery of a written notice of demand for
arbitration by one party to the other within a reasonable time after the dispute
has arisen stating the nature of the dispute and the remedy sought. Those
Reinsurers involved in the dispute or other matter in

                                  Page 16 of 30
<PAGE>

controversy shall be considered as one party for the purpose of allocating the
cost of the arbitration.

Each party shall appoint an individual as arbitrator and the two so appointed
shall then appoint a third arbitrator. If either party refuses or neglects to
appoint an arbitrator within sixty (60) days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third arbitrator
within sixty (60) days of their appointment, within ten (10) days thereafter the
two arbitrators will request the American Arbitration Association ("AAA") to
appoint a third arbitrator with the qualifications set forth below in this
Article without regard to the AAA's Commercial Arbitration Rules. If the AAA
fails to appoint a third arbitrator within thirty (30) days after its receipt of
the two arbitrators' request, either party may apply to a court of competent
jurisdiction to appoint a third arbitrator with the qualifications set forth
below in this Article. The third arbitrator will immediately notify each party
of his selection. In the event of the resignation or death of any member of the
arbitrator panel, a replacement will be appointed in the same manner as the
resigning or deceased member was appointed.

Each arbitrator shall be an active or retired officer of an insurance or
reinsurance company or Underwriter at Lloyd's London; no arbitrator shall have a
personal or financial interest in the result of the arbitration, and shall not
be a present or former officer, attorney, or consultant of the Reassured or the
Reinsurer or either's affiliates.

The arbitrators shall interpret this Contract as an honorable engagement and not
as merely a legal obligation; they are relieved of all judicial formalities and
may abstain from following the strict rules of law, and shall make any award
with a view to effecting the general purpose of this Contract in a reasonable
manner with due regard to the custom and usage of the insurance and reinsurance
business.

The arbitrators shall have full discretion to make such orders as they think fit
in connection with all procedural matters in the Arbitration, including but not
limited to the conduct of the reference by written or oral submissions, the
production of documents, the examination of witnesses, and the imposition of
time limits for the taking of necessary procedural steps. The arbitrators shall
also have full discretion to make such orders as they think fit with regard to
the payment of the costs of the Arbitration including attorneys' costs and fees.

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

Any Award or order of the arbitrators or a majority thereof shall be binding on
the parties and there shall be no right of appeal therefrom. For the purpose of
enforcement of any Award, an action may be brought in any Court of competent
jurisdiction.

Except as provided above, arbitration shall be based, insofar as applicable,
upon the procedures of the American Arbitration Association.

                                  Page 17 of 30
<PAGE>

                                   ARTICLE 24

SERVICE OF SUIT

It is agreed that in the event of the failure of the Reinsurer to pay any amount
awarded by the arbitration tribunal referred to in the Arbitration Clause
herein, the Reinsurers hereon, at the request of the Reassured, 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 Reinsurers' rights to commence an action in any court of competent
jurisdiction in the United States, to remove an action to a United States
District Court, or to seek a transfer of a case to another court as permitted by
the laws of the United States or of any state in the United States. It is
further agreed that service of process in such suit may be made upon Mendes &
Mount, 750 Seventh Avenue, New York, New York 10019, and that in any suit
instituted against any one of them upon this Contract, Reinsurers will abide by
the final decision of such court or of any appellate court in the event of an
appeal.

The above-named are authorized and directed to accept service of process on
behalf of Reinsurers in any such suit and/or upon the request of the Reassured
to give a written undertaking to the Reassured that they will enter a general
appearance upon Reinsurers' behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the
United States which makes provision therefore, Reinsurers hereon hereby
designate the Superintendent, Commissioner or Director of Insurance or other
officer specified for that purpose in the statute, or his successor or
successors in office, as their 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 Reassured or any beneficiary hereunder arising out of this Contract of
reinsurance, 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 25

CONFIDENTIALITY

The confidential nature of this Contract is acknowledged by all parties.
Moreover, the Reinsurers will only disclose to third parties, such as
regulators, auditors, rating agencies, shareholders, reinsurers and the like,
such details of this Contract as are necessary to comply with their obligations
to such third parties as part of their normal business practice.

It is a condition binding on Reinsurers hereon that they may not disclose any
details of this Contract at any time to any other third party without the
agreement of the Reassured.

                                   ARTICLE 26

REGULATORY COMPLIANCE

If any provision of this Contract shall be rendered illegal or unenforceable by
the laws, regulations or public policy of any State in the United States, such
provision shall be considered

                                  Page 18 of 30
<PAGE>

void in such State, but this shall not affect the validity or enforceability of
any other provision of this Contract, or the validity or enforceability of such
provision in any other jurisdiction.

                                   ARTICLE 27

INTERMEDIARY

Carvill America Incorporated is hereby recognized as the Intermediary
negotiating this Contract for all business hereunder. All communications
including notices, premiums, return premiums, commissions, taxes, losses, loss
adjustment expenses, salvages and loss settlements relating thereto shall be
transmitted to the Reinsurer or the Reassured through Carvill America
Incorporated at The Pinnacle, 3455 Peachtree Road, N.E., Suite 375, Atlanta
Georgia 30326. Payments by the Reassured to the Intermediary will be deemed to
constitute payment to the Reinsurer. Payments by the Reinsurer to the
Intermediary will be deemed only to constitute payment to the Reassured to the
extent that such payments are actually received by the Reassured.

                                   ARTICLE 28

GOVERNING LAW

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

                                   ARTICLE 29

PARTICIPATION

This Contract obligates each of the Reinsurers for their proportion of the
interests and liabilities set forth under this Contract, such proportions being
shown in the attached Schedules.

                                   ARTICLE 30

SEVERAL LIABILITY NOTICE

The subscribing Reinsurers' obligations under contracts of reinsurance to which
they subscribe are several and not joint and are limited solely to the extent of
their individual subscriptions. The subscribing Reinsurers are not responsible
for the subscription of any co-subscribing Reinsurer who for any reason does not
satisfy all or part of its obligations.

                                  Page 19 of 30
<PAGE>

IN WITNESS WHEREOF the parties hereto have, by their duly authorized
representative, executed this Contract as follows:

Signed in Farmington, Connecticut, this 19th day of January 2006.

For and on behalf of the Reassured:

Signed by:  /s/ Stephen Sills
            -----------------------------------------

Officers Title:  CEO
                 ------------------------------------

Print Name:  Stephen Sills
             ----------------------------------------

And for the Reinsurer(s) by means of and in accordance with the attached
Schedule(s), which shall be considered to form an integral part of this
Contract.

                                  Page 20 of 30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]