Document:

Exhibit
10.24

 

Willis

ISLAND
HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

PLACEMENT
SLIP/WORDING

 

 

2006
RESIDENTIAL PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

 

Reference
No.: DLXJ526

 

 

Willis

 

	
  Agreement Number

  	
  :

  	
  DLXJ526

  
	
   

  	
   

  	
   

  
	
  Reinsured

  	
  :

  	
  ISLAND HERITAGE INSURANCE COMPANY LIMITED

  
	
   

  	
   

  	
   

  
	
  Type of Agreement

  	
  :

  	
  Residential Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  
	
   

  	
   

  	
   

  
	
  Period

  	
  :

  	
  12 months Commencing 1 April 2006.

  
	
   

  	
   

  	
   

  
	
  This Agreement

  	
  :

  	
  Particular Conditions

  
	
  consists of three parts

  	
   

  	
  General Conditions

  
	
   

  	
   

  	
  Signing Exhibit(s)

  

 

 

Willis

2006
RESIDENTIAL PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT
SLIP/WORDING

 

Reference
No.: DLXJ526

 

 

 

PARTICULAR
CONDITIONS

 

 

ISLAND
HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis Re Inc., 1401 Brickell Avenue,
Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc., 4th Floor, Wall
Street Plaza, New York, New York 10005, U.S.A and Willis Limited, Ten Trinity
Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
  Type

  	
  :

  	
  Residential Property Catastrophe Excess of Loss
  Reinsurance Agreement

  

 

PARTICULAR
CONDITIONS

 

	
  REINSURED AND

  LOCATION:

  	
   

  	
  ISLAND HERITAGE INSURANCE COMPANY
  LIMITED, GRAND CAYMAN, CAYMAN ISLANDS, including any and/or all companies
  that are or may hereafter become affiliated therewith.

  
	
   

  	
   

  	
   

  
	
  PERIOD:

  	
   

  	
  Losses occurring during the period 12 months from
  12:01 a.m. 1 April 2006 to 12:01 a.m. 31 March 2007 both days inclusive,
  local standard time at the place where the loss occurs.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Local Standard Time” shall mean the time as
  described in the original policy.

  
	
   

  	
   

  	
   

  
	
  TYPE:

  	
   

  	
  Residential Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  
	
   

  	
   

  	
   

  
	
  ACCOUNT BASIS:

  	
   

  	
  Losses Occurring.

  
	
   

  	
   

  	
   

  
	
  TYPE:

  	
   

  	
  Residential Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  
	
   

  	
   

  	
   

  
	
  CLASS OF

  BUSINESS:

  	
   

  	
  All business written and classified by the Reinsured
  as Residential Property Business, including but not limited to Fire and
  Allied Perils, Natural Perils, Material Damage and/or Business Interruption,
  Builders’ Risk Business and Automobile Physical Damage.

  
	
   

  	
   

  	
   

  
	
  EXCLUSIONS:

  	
   

  	
  All exclusions are listed in full in the General
  Conditions.

  
	
   

  	
   

  	
   

  
	
  TERRITORIAL

  SCOPE:

  	
   

  	
  Caribbean Islands and their
  interests abroad, including but not limited to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Anguilla, Antigua, Aruba, Bahamas, Barbados, Belize,
  Bermuda, Bonaire, British Virgin Islands, Cayman Islands, Curacao, Dominica,
  Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Martinique,
  Monsterrat, Nevis/St. Kitts, Puerto Rico, Saba, St. Barthelemy, St.
  Eustatius, St. Lucia, St. Martin/Maarten, St. Vincent, The Grenadines,
  Trinidad and Tobago, Turks and Caicos and U. S. Virgin Islands.

  

 

1

 

	
  LIMIT:

  	
   

  	
  First Layer:

  	
  USD   

  	
  15,000,000

  
	
   

  	
   

  	
  Second Layer:

  	
  USD   

  	
  30,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ultimate Net Loss, each and every Loss Occurrence.

  
	
   

  	
   

  	
   

  
	
  RETENTION:

  	
   

  	
  First Layer: 

  	
  USD   

  	
  15,000,000

  
	
   

  	
   

  	
  Second Layer:

  	
  USD   

  	
  30,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ultimate Net Loss, each and every Loss Occurrence.

  
	
   

  	
   

  	
   

  
	
  REINSTATEMENT PROVISIONS:

  	
   

  	
  One full reinstatement,
  applicable to each layer, calculated at pro rata of 100% of the Reinsurers’
  premium for the period of this Agreement, being pro rata only as to the
  fraction of the Reinsurers’ limit of liability hereunder (i.e. the fraction
  of the limit) so reinstated.

  
	
   

  	
   

  	
   

  
	
  Limit
  in All:

  	
   

  	
  First Layer: 

  	
  USD   

  	
  30,000,000

  
	
   

  	
   

  	
  Second Layer:

  	
  USD   

  	
  60,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PREMIUM:

  	
   

  	
  Adjustable Rates are
  applied to the Average Net Retained Property Aggregate in respect of direct
  written business as reported in the Residential aggregate statements as at
  April 1, 2006, July 1, 2006, October 1, 2006, January 1, 2007 and April 1,
  2007.

  
	
   

  	
   

  	
   

  
	
  Adjustable
  Rates:

  	
   

  	
  First Layer:

  	
  0.1382%

  
	
   

  	
   

  	
  Second Layer:

  	
  0.1382%

  
	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  and

  	
   

  	
   

  
	
  Deposit
  Premiums:

  	
   

  	
  First Layer:

  	
  USD   

  	
  1,620,000

  
	
   

  	
   

  	
  Second Layer:

  	
  USD   

  	
  1,620,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discounts:

  	
   

  	
  Notwithstanding the foregoing, the following
  considerations shall apply to all layers:

  
	
   

  	
   

  	
  1)                         The
  aforementioned rates will be discounted by the following factors and applied
  to business written which contains the higher deductibles as shown:

  
							

 

	
   

  	
   

  	
   

  	
  Windstorm deductible

  	
   

  	
  2%

  	
   

  	
  Discount

  	
   

  	
  0%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  3%

  	
   

  	
   

  	
   

  	
  10%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  4%

  	
   

  	
   

  	
   

  	
  20%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  5%

  	
   

  	
   

  	
   

  	
  30%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  10%

  	
   

  	
   

  	
   

  	
  40%

  

 

2

 

	
  PREMIUM:

  (continued)

  	
   

  	
  2)  Furthermore, the above rates will be
  discounted by 50% and applied to business written which contains an exclusion
  for windstorm.

  
	
   

  	
   

  	
   

  
	
  PAYMENT TERMS:

  	
   

  	
  Premiums are payable in four equal quarterly
  instalments at April 1, 2006, July 1, 2006, October 1, 2006 and January 1,
  2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjustments to be made as soon as practical after
  expiry.

  
	
   

  	
   

  	
   

  
	
  BROKERAGE:

  	
   

  	
  10.00% (Nil on Reinstatement).

  
	
   

  	
   

  	
   

  
	
  OTHER 

  DEDUCTIONS FROM PREMIUM:

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  TAXES PAYABLE BY

  REINSURED AND ADMINISTERED BY REINSURERS:

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  TAXES PAYABLE 

  BY REINSURER(S):

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  CHOICE OF

  LAW AND JURISDICTION:

  	
   

  	
  

  

  (AGREEMENT & ARBITRATION TRIBUNALS)

  Law and Jurisdiction of the Cayman Islands.

  
	
   

  	
   

  	
   

  
	
  SEAT OF ARBITRATION:

  	
   

  	
  Grand Cayman, the Cayman Islands.

  
	
   

  	
   

  	
   

  
	
  APPOINTOR:

  	
   

  	
  The Secretary General of the Court of Arbitration of
  the International Chamber of Commerce or if he is unavailable or it is
  inappropriate for him to act for any reason, such person as may be nominated
  by the Committee of that body. If for any reason such persons decline or are
  unable to act then the appointor shall be the judge of the appropriate Courts
  having jurisdiction at the place of Arbitration.

  

 

3

 

	
  EXPRESS WARRANTIES:

  	
   

  	
  

  None.

  
	
   

  	
   

  	
   

  
	
  CONDITIONS PRECEDENT:

  	
   

  	
  

  There is a condition precedent to any right of action in Law as specified in
  the attached General Conditions under Arbitration.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Failure to comply with this condition precedent may
  result in the party commencing litigation having the legal proceedings dismissed
  or stayed and instead being instructed to arbitration by a court of law.

  
	
   

  	
   

  	
   

  
	
  CONDITIONS:

  	
   

  	
  All clauses are as stated in full in the attached
  General Conditions.

  
	
   

  	
   

  	
   

  
	
  SPECIAL ACCEPTANCE:

  	
   

  	
  To be agreed by (“Slip Leader”) only as detailed in
  the General Conditions.

  
	
   

  	
   

  	
   

  
	
  WORDING:

  	
   

  	
  Full contractual wording is incorporated.

  
	
   

  	
   

  	
   

  
	
  SEVERAL

  LIABILITY:

  	
   

  	
  

  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. 

  08/94, LSW1001 (Reinsurance).

  

 

4

 

Willis

2006
RESIDENTIAL PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT
SLIP/WORDING

 

Reference
No.: DLXJ526

 

 

GENERAL
CONDITIONS

 

 

 

ISLAND
HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis Re Inc., 1401 Brickell Avenue,
Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc., 4th Floor, Wall
Street Plaza, New York, New York 10005, U.S.A and Willis Limited, Ten Trinity
Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
  Type

  	
  :

  	
  Residential Property Catastrophe Excess of Loss
  Reinsurance Agreement

  

 

GENERAL
CONDITIONS

 

TABLE OF
CONTENTS

 

	
   

  	
  Parties

  	
   

  
	
  1

  	
  Class of Business Covered

  	
   

  
	
  2

  	
  Limit and Retention

  	
   

  
	
  3

  	
  Reinstatement

  	
   

  
	
  4

  	
  Period

  	
   

  
	
  5

  	
  Special Termination

  	
   

  
	
  6

  	
  Territory

  	
   

  
	
  7

  	
  Exclusions

  	
   

  
	
  8

  	
  Special Acceptance

  	
   

  
	
  9

  	
  Premium

  	
   

  
	
  10

  	
  Definitions

  	
   

  
	
  11

  	
  Two Risk Agreement

  	
   

  
	
  12

  	
  Self Insured Obligations

  	
   

  
	
  13

  	
  Extra Contractual Obligations

  	
   

  
	
  14

  	
  Net Retained Lines

  	
   

  
	
  15

  	
  Original Conditions

  	
   

  
	
  16

  	
  No Third Party Rights

  	
   

  
	
  17

  	
  Notice of Loss and Loss Settlements

  	
   

  
	
  18

  	
  Loss Collection

  	
   

  
	
  19

  	
  Currency

  	
   

  
	
  20

  	
  Currency Revaluation

  	
   

  
	
  21

  	
  Access to Records

  	
   

  
	
  22

  	
  Confidentiality

  	
   

  
	
  23

  	
  Delays, Errors and Omissions

  	
   

  
	
  24

  	
  Offset

  	
   

  
	
  25

  	
  Insolvency

  	
   

  
	
  26

  	
  Arbitration

  	
   

  
	
  27

  	
  Choice of Law and Jurisdiction

  	
   

  
	
  28

  	
  Service of Suit

  	
   

  
	
  29

  	
  Intermediary

  	
   

  
	
  30

  	
  Mode of Execution

  	
   

  
	
  31

  	
  Amendments and Alterations

  	
   

  
	
   

  	
  Reinsured Signing Block

  	
   

  

 

1

 

GENERAL
CONDITIONS

 

TABLE OF
CONTENTS

Attachments

 

	
  1.

  	
  Nuclear Energy Risks Exclusion Clause (Reinsurance)
  (1994) (Worldwide Excluding U.S.A. and Canada) NMA 1975a

  
	
   

  	
   

  
	
  2.

  	
  Nuclear Incident Exclusion Clause - Physical Damage
  - Reinsurance - U.S.A. NMA 1119.

  
	
   

  	
   

  
	
  3.

  	
  Nuclear Incident Exclusion Clause - Physical Damage
  and Liability (Boiler and Machinery Policies) - Reinsurance - U.S.A. NMA
  1116.

  

 

 

Exhibits

 

Subscribing Reinsurer’s Signing Exhibit(s)

 

2

 

RESIDENTIAL
PROPERTY CATASTROPHE EXCESS OF LOSS

REINSURANCE AGREEMENT

 

between

 

ISLAND
HERITAGE INSURANCE COMPANY LIMITED

Grand Cayman, Cayman Islands

 

including
any and/or all companies that are or may hereafter become

affiliated therewith

 

(the “Reinsured”)

 

and

 

THE
SUBSCRIBING REINSURERS IDENTIFIED

IN THE SUBSCRIBING REINSURER’S SIGNING PAGE(S)

 

(the “Reinsurers”)

 

ARTICLE
1

CLASS
OF BUSINESS COVERED

 

This Agreement shall indemnify the Reinsured, as set forth in the Limit
and Retention Article, in respect of the liability which may accrue to the
Reinsured under all policies, bonds, binders, certificates, contracts of
insurance or reinsurance, co-insurance or co-indemnity, or other evidences of
liability (hereinafter referred to as “Policy(ies)” and/or “bond(s)”), whether
oral or written, issued by or contracted for by the Reinsured in respect of all
business as specified in the Particular Conditions under, “Class of Business”, subject to the
exclusions stated in the Exclusions Article.

 

ARTICLE
2

 

LIMIT
AND RETENTION

 

The Reinsurers shall be liable in respect of each Loss Occurrence, for
100% of the Ultimate Net Loss over and above an initial Ultimate Net Loss as
specified in the Particular Conditions under, “Retention”
each and every Loss Occurrence, subject to a limit of liability to
the Reinsurers as specified in the Particular Conditions under, “Limit” each and every Loss Occurrence.

 

General Conditions Page

 

1

 

ARTICLE
3

 

REINSTATEMENT

Loss payments under this Agreement shall reduce the limit of coverage
afforded by the amounts paid, but the limit of coverage shall be reinstated
from the time of the occurrence of the loss to the expiry of this Agreement,
and for each amount so reinstated, the Reinsured agrees to pay, an additional
premium (if any) as specified in the Particular Conditions. Nevertheless, the
Reinsurers’ liability hereunder shall not exceed the amount as specified in the
Particular Conditions under, “Limit” in
respect of each and every Loss Occurrence, and nor the amount as specified in
the Particular Conditions under, “Reinstatement
Provisions, Limit in All” in respect of all Loss Occurrences during
the period of this Agreement.

 

If at the time of a loss settlement hereon the reinsurance premium, as
calculated in accordance with the Premium Article is unknown, the above
calculation of reinstatement premium shall be based upon the minimum and
deposit premium, subject to adjustment when the reinsurance premium is finally
established.

 

ARTICLE
4

 

PERIOD

 

This Agreement applies only to losses occurring during the period as
specified in the attached Particular Conditions under, “Period”.

 

If this Agreement expires or terminates while a loss occurrence covered
hereunder is in progress, it is agreed that, subject to the other conditions of
this Agreement, the Reinsurer shall indemnify the Reinsured as if the entire
loss occurrence had occurred during the period of this Agreement.

 

If any law or regulation of the federal, state or local government of
any jurisdiction in which the Reinsured is doing business shall render illegal
the arrangements made in this Agreement, the Agreement can be terminated
immediately, insofar as it applies to such jurisdiction, by the Reinsured
giving notice to the Reinsurers to such effect.

 

ARTICLE
5

 

SPECIAL
TERMINATION

 

a)                         It is a
condition upon all Reinsurers who participate in this Agreement that each
individual Reinsurer shall at all times during the period of this Agreement
maintain an Insurer Financial Strength (IFS) rating from Standard & Poor’s Rating Group of 1221 Avenue
of the Americas, New York, New York 10020, USA (“S&P”) equal to or greater
than the rating that was applied by S&P to that individual Reinsurer at the
commencement of this Agreement.

 

2

 

In the event of an
explicit downgrading of any individual Reinsurer by S&P to an IFS rating
inferior to that which was supplied by S&P at the commencement of this
Agreement, then at the sole option of the Reinsured, the Reinsured may elect to
cancel the participation of that individual Reinsurer. The effective date of
such cancellation shall not be earlier than the date upon which the relevant
downgrading by S&P was announced in New York, USA and the Reinsured shall
submit a notice of cancellation within 30 days after the date upon which the
relevant downgrading by S&P was announced.

 

Any individual Reinsurer
who does not have an IFS rating from S&P but who maintains during the
period of this Agreement a rating from A.M. Best Company of A.M. Best Road,
Oldwick, New Jersey 08858-0700 USA (“Bests”) shall also be considered as falling
within the terms of this Article. Any explicit downgrading of such an
individual Reinsurer by Bests to a rating inferior to that which was applied by
Bests to that individual Reinsurer at the commencement of this Agreement shall
give the Reinsured the same right of cancellation as set out above.

 

In the event that a
rating should be given to an individual Reinsurer by both S&P and Bests
which differ to that extent that one of the ratings is inferior to the other
than the rating of S&P shall prevail.

 

For the avoidance of
doubt the status of Credit Watch as defined by S&P or a rating modifier of
‘u’ (Under Review) applied to a rated company as defined by Bests
shall not, of itself, be construed as a downgrading for the purposes of this
Article.

 

With regard to any
Lloyd’s Underwriters participating hereunder the rating applicable to each
individual Lloyd’s Underwriter shall be the S&P IFS rating applicable to
the Lloyd’s Corporation as a whole at the commencement of this Agreement.

 

If, for a reinsurer with
no rating by S&P or Bests, in the judgement of the Reinsured the security
of such Reinsurer has materially deteriorated since inception of this
Agreement, the Reinsured shall have the same right of cancellation as set out
above.

 

Notwithstanding the foregoing,
for Reinsurers rated A- or above at the commencement of this Agreement, Section
a) of this Article will only operate when the deterioration in rating is to a
level below A-.

 

The Reinsured may also
elect to cancel the participation of any individual Reinsurer that ceases
underwriting. The effective date of such cancellation shall be determined at
the sole discretion of the Reinsured provided that the date so determined shall
not be earlier than the date upon which the relevant Reinsurer ceased underwriting.

 

b)                        Furthermore,
either party shall have the right to cancel this Agreement immediately by
giving the other party notice:

 

i)                           if the
performance of the whole or any part of this Agreement is prohibited or
rendered impossible due jure to de facto in particular and without prejudice to
the generality of

 

3

 

the preceding words in
consequence of any law or regulation which is or shall be in force in any
country or territory or if any law or regulation shall prevent directly or
indirectly the remittance of any or all or any part of the balance or payments
due to or from either party;

 

ii)                      if the
country or territory in which the other party resides or has its head office or
is incorporated shall be involved in armed hostilities with any other country
whether war be declared or not, or is partly or wholly occupied by another
power;

 

iii)                      if the other
party shall have failed and refuses after due notice in writing to comply with
any of the General Conditions.

 

After the date of cancellation, under either paragraph a) or b) above,
the liability of the Reinsurers hereunder shall cease outright other than in
respect of losses which have occurred or commenced prior thereto.

 

All notices of cancellation served in accordance with any of the
provisions of paragraph a) and b) above shall be by telegram or facsimile or
any other means of instantaneous communication that provides a permanent record
of such communication, and shall be deemed to be served upon despatch or where
communications between the parties are interrupted upon attempted despatch.

 

All notices of cancellation served in accordance with any of the
provisions of paragraph a) and b) above shall be addressed to the party
concerned at its Head Office or at any other address previously designated by
that party.

 

In the event of this Agreement being terminated in accordance with the
provisions of this Article, and subject to no loss to this Agreement, the
minimum and deposit premium and the final adjusted premium charged hereon will
be calculated in accordance with the following formula-

 

	
  Period
  on Risk

  	
   

  	
  % of Annual Premium

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1 April 2006 to 31 May 2006

  	
   

  	
  20/5ths for each month

  	
   

  
	
  1 June 2006 to 31 December 2006

  	
   

  	
  80/7ths for each month

  	
   

  
	
  1 January 2007 to 31 March 2007

  	
   

  	
  20/5ths for each month

  	
   

  

 

For any period within a month, the number of days will be calculated
pro rata of that month.

 

ARTICLE
6 

 

TERRITORY

 

This Agreement shall apply to losses occurring within the territorial
limits as specified in the Particular Conditions under, “Territorial Scope”.

 

4

 

ARTICLE
7

 

EXCLUSIONS

 

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

 

1.                                       Business
classified by the Reinsured as Credit, Financial Guarantee and Insolvency
insurance.

 

2.                                       Business
classified by the Reinsured as Liability, Ocean Marine and Aviation business,
except where incidental to and forming part of Policies covered hereunder.

 

3.                                       Business
classified by the Reinsured as Fidelity, Life or Surety.

 

4.                                       Business
classified by the Reinsured as Accident and Sickness and Salary Continuance
except when written as part of a package Policy.

 

5.                                       Nuclear
Energy, as per the Nuclear Energy Exclusion Clauses NMA 1975(a), “NMA 1119 and
NMA 1166 as more fully detailed in the attachments hereto.

 

6.                                       With regard to all territories except the U.S. Virgin
Islands, this Agreement does not cover loss, destruction or
damage directly or indirectly caused by seepage and/or pollution and/or
contamination except destruction of or damage to the property insured caused by
pollution or contamination which itself results from damage to insured property
from an insured peril.

 

With
regard to the U.S. Virgin Islands only, this Agreement
excludes loss and/or damage and/or costs and/or expenses arising from seepage
and/or pollution and/or contamination, other than contamination from smoke.
Nevertheless, this exclusion does not preclude payment of the cost of removing
debris of property damaged by a loss otherwise covered hereunder, subject
always to a limit of 25% of the Reinsured’s property loss under the applicable
original Policy.

 

7.                                       Losses
in respect of overhead transmission and distribution lines and their supporting
structures other than those on or within 1,000 feet of the Insured premises.

 

It is agreed that public utilities extension and/or
suppliers extension and/or contingent business interruption coverages are not
subject to this exclusion, provided that these are not part of a transmitters’
or distributors’ Policy.

 

8.                                       Loss
or damage directly or indirectly occasioned by, happening through or in
consequence of war, invasion, acts of foreign enemies, hostilities (whether war
be declared or not), civil war, rebellion, revolution, insurrection, military
or usurped power, or confiscation or nationalization or requisition or
destruction of or damage to property by or under the order of any government or
public or local authority.

 

5

 

9.                                       Cyber
Risk, as per the Information Technology Hazards Clarification Clause:

 

Information
Technology Hazards Exclusion Clause

 

Losses arising, directly or indirectly, out of:

 

(i)                      
loss of, alteration of, or damage to

 

or

 

(ii)                   
a reduction in the functionality, availability or operation of

 

a computer system, hardware, programme, software,
data, information repository, microchip, integrated circuit or similar device
in computer equipment or non-computer equipment, whether the property of the
policyholder of the Reinsured or not, are excluded hereon unless arising out of
one or more of the perils as defined in the Reinsured’s original Policy
Wording. These perils include but are not limited to:

 

fire, lightning, explosion, aircraft or vehicle
impact, falling objects, windstorm, tornado, cyclone, hurricane, earthquake,
volcano, tsunami, flood, subsidence, landslip, theft, riots/strikes, malicious
damage escape of water falling trees.

 

(Based on NMA2928 - 10/12/01).

 

10.                                 Terrorism
Risks in accordance with the terms of Terrorism Exclusion NMA2930c
below:

 

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

 

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

 

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

(ii)                                  involves
damage to property; or

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

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

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

 

6

 

 

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

 

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

 

NMA2930c

22/11/02

 

For the purposes of this
exclusion, condominiums and residential rental properties shall be considered
as personal lines business.

 

Applicable to the U.S.
Virgin Islands only:

 

It is further agreed that
this exclusion does not apply to losses suffered by the Reinsured which form
part of a U.S. Virgin Island market loss caused by Terrorism up to a total of
USD 27,500,000 as defined by TRIEA and any applicable I.S.O. endorsements for
the U.S. Virgin Islands. However, any act of terrorism caused directly or
indirectly by, contributed to by, resulting from, or arising out of or in
connection with biological, chemical, radioactive, or nuclear pollution or contamination
or explosion is hereby excluded. Furthermore any and all recoveries from TRIEA
shall inure to the benefit of this treaty.

 

However, in respect of
certified losses beyond the extent of TRIEA and any applicable I.S.O.
endorsements for the U.S. Virgin Islands, this Reinsurance Agreement will not
pay any losses, including those affecting the Reinsured’s retention, or any
non-certified losses, whether or not these losses are directly or indirectly
caused by, contributed to by, resulting from, or arising out of or in
connection with biological, chemical, radioactive, or nuclear pollution or
contamination or explosion.

 

During the term of this
Reinsurance Agreement and unless any other agreement between the parties (the
Reinsured and the Reinsurers) has been reached, if TRIEA is not extended beyond
the expiry date in place at the commencement of this Reinsurance Agreement or
if the form and shape of TRIEA is revised to whatever extent by the United
States authorities during this Reinsurance Agreement, it is understood that the
definition in force at the commencement date of this Reinsurance Agreement
shall nevertheless be deemed in full force and effect for the purpose of this
Reinsurance Agreement. As soon as the exact structure of TRIEA beyond its current
expiry date is transparent to the parties involved in this Reinsurance
Agreement, the parties will analyze the new situation and negotiate any
amendment or revision of this exclusion.

 

7

 

11.                    Risks in accordance
with the Radioactive Exclusion Clause: unless specifically agreed for an
insured loss involving nuclear material under determined circumstances, this
Agreement does not cover loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any of
the following regardless of any other cause or event contributing concurrently
or in any other sequence to the loss:

 

•                            Ionising
radiations from or contamination by radioactivity from any nuclear fuel or from
any nuclear waste or from the combustion of nuclear fuel.

 

•                            The
radioactive, toxic, explosive or other hazardous or contaminating properties of
any nuclear installation, reactor or other nuclear assembly or nuclear
component thereof.

 

•                            Any
weapon or device of war employing atomic or nuclear fission and/or fusion or
other like reaction or radioactive force or matter.

 

12.                    Pools, pooling
arrangements and captive accounts.

 

13.                    First loss
policies with no average clause.

 

14.                    Bloodstock and
livestock.

 

15.                    Contingent
Business Interruption amended to include Customers and Suppliers extensions
when cover is named 1st tier Customer/Supplier and with a sub-limit of 20% of
the Business Interruption Sum Insured.

 

16.                    Obligatory
reinsurance treaties and insurances and facultative reinsurances on an excess
of loss basis or having excess of loss character, layered coverages and
primaries.

 

17.                    Guarantees of
performance or production.

 

18.                    Growing and
standing crops and timber.

 

19.                    Mould and/or
Fungus with the terms of Absolute Fungus, Mildew and Mould Exclusion below:

 

This Agreement excludes
absolutely any loss, damage, claim, cost, expense, sum or other obligation of
any kind or description directly or indirectly caused by, contributing to, or
resulting from mould, fungus, mildew or spores. This exclusion will apply,
regardless as to whether or not

 

i.                            the
mould, fungus, mildew or spores is/are caused by, contributed to, or results
from an insured peril,

 

ii.                         the
Reinsured’s original policy(ies) provide coverage,

 

iii.                      the
Reinsured’s original obligations are contractual, extra contractual, or
otherwise

 

8

 

iv.                     the
Reinsurance presentation is for settlement(s), judgement(s) or any other form
of resolution

 

20.                    Any direct or
indirect losses caused by infectious or contagious diseases (for existing
extensions, coverage will be given up to next renewal date)

 

ARTICLE
8

 

SPECIAL
ACCEPTANCE

 

To be agreed by (“Slip Leader”) only. Any special acceptance agreed to
by the Slip Leader shall be binding on all Subscribing Reinsurers hereon. The
Slip Leader shall be deemed to have accepted a risk, if it has not responded
within 7 days after receiving the underwriting information on such risk. Any
renewal of a special acceptance agreed to for a predecessor Agreement to this
Agreement, shall automatically be covered hereunder.

 

ARTICLE
9

 

PREMIUM

 

A minimum and deposit premium as specified in the Particular Conditions
under, “Premium” shall be paid to
the Reinsurers as specified in the Particular Conditions under, “Payment Terms”.

 

As soon as practicable after the expiry of this Agreement, the
Reinsured shall furnish to the Reinsurer a statement of their Aggregates (as
defined in the Particular Conditions) based on aggregate statements at the
dates also as specified in the Particular Conditions under, “Premium” and the reinsurance premium shall
be adjusted at a rate as specified in the Particular Conditions under, “Premium, Adjustable Rates” applied to the
Reinsured’s final Aggregates subject to an annual minimum and deposit premium
as specified in the Particular Conditions under, “Premium, Minimum and Deposit  Premium”.

 

Notwithstanding the foregoing, this Agreement may be subject to various
discounts, (which if any) are stipulated in the Particular Conditions.

 

Taxes (if any) in respect of this Agreement shall be payable by the
Reinsured and/or Reinsurers as specified in the attached Particular Conditions.

 

Other Deductions from Premium (if any) shall be as specified in the
attached Particular Conditions.

 

9

 

ARTICLE
10

 

DEFINITIONS

 

Ultimate
Net Loss

 

The term Ultimate Net Loss shall mean the actual loss(es) paid or
payable by the Reinsured and 100% of extra contractual obligations as defined
herein, under its policies, such loss(es) to include legal costs and expenses
of litigation, if any, and all other loss expenses of the Reinsured (including
a pro rata share of salaries and expenses of the Reinsured’s field employees
while adjusting such claims or losses and expenses of the Reinsured’s officials
incurred in connection with claims or losses but no salaries of the Reinsured’s
officials or any normal office expenses shall be included). Salvages and
recoveries including recoveries under all other reinsurances, whether collected
or not, are to be first deducted from such loss to arrive at the amount of
liability, if any, attaching hereunder. Nothing, however, in this Article shall
be construed to mean that losses under this Agreement are not recoverable until
the Reinsured’s Ultimate Net Loss has been ascertained.

 

It is understood and agreed that, where the Reinsured has in effect
other Excess of Loss Contract(s), underlying recoveries thereunder shall inure
to its sole benefit and shall not be taken into account when calculating the
Ultimate Net Loss hereunder.

 

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

 

Loss
Occurrence

 

The words Loss Occurrence shall mean all individual losses arising out
of and directly occasioned by one catastrophe.

 

However, the duration and extent of any Loss Occurrence so defined
shall be limited to:

 

a)                         96
consecutive hours as regards a cyclone, hurricane, typhoon, windstorm,
rainstorm, hailstorm, tornado and/or sea surge;

 

b)                        72
consecutive hours as regards earthquake, seaquake, tidal wave and/or volcanic
eruption;

 

c)                         72
consecutive hours and within the limits of any one territory as regards riots,
civil commotions and malicious damage;

 

d)                        72
consecutive hours as regards any Loss Occurrence which includes individual loss
or losses from any of the perils mentioned in (b) and (c) above;

 

e)                         168
consecutive hours for any Loss Occurrence of whatsoever nature which does not
include individual loss or losses from any of the perils mentioned in (a), (b)
and (c) above;

 

10

 

and no individual loss from whatever insured peril, which occurs
outside these periods of areas, shall be included in that Loss Occurrence.

 

The Reinsured may choose the date and time when any such period of
consecutive hours commences and if any catastrophe is of greater duration than
the above periods, the Reinsured may divide that catastrophe into two or more
Loss Occurrences, provided no two periods overlap and provided no period
commences earlier than the date and time of the happening of the first recorded
individual loss to the Reinsured in that catastrophe.

 

Policy

 

Policy means any bind, policy or contract of insurance issued, accepted
or held covered provisionally or otherwise, by or on behalf of the Reinsured.

 

ARTICLE
11

 

TWO
RISK AGREEMENT

 

It is agreed that the
Reinsurer shall not be liable under this Agreement unless two or more risks are
involved in the same Loss Occurrence.

 

ARTICLE
12

 

SELF-INSURED
OBLIGATIONS

 

As respects all business the subject matter hereof, where the coverage
has been agreed upon between the Reinsured and the Reinsurers, this Agreement
shall cover all obligations of the Reinsured assumed by it as a self insurer
(or self insured obligations in excess of any valid and collectible insurance
available to the Reinsured) to the same extent as if all types of insurance
covered by this Agreement were afforded under the broadest form of agreements
issued by the Reinsured.

 

Any exposure of the Reinsured in respect of the classes of business
included in this Agreement for which the Reinsured has issued a Policy naming
itself and/or an affiliated and/or subsidiary company as the insured or
reinsured party, whether alone or jointly with some other party, shall be
deemed to be an insurance or reinsurance coming within the scope of this
Agreement.

 

11

 

ARTICLE
13

 

EXTRA
CONTRACTUAL OBLIGATIONS

 

This Agreement shall protect the Reinsured, within the limits hereof,
where the Ultimate Net Loss includes any Extra Contractual Obligations. “Extra
Contractual Obligations” are defined as those liabilities not covered under any
other provisions of this Agreement 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 Reinsured to settle within the
Policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against its insured or reinsured or in the preparation
or prosecution of an appeal consequent upon such action.

 

The date on which any extra contractual obligation is incurred by the
Reinsured shall be deemed, in all circumstances, to be the date of the original
disaster and/or casualty.

 

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

 

ARTICLE
14

 

NET
RETAINED LINES

 

Except as otherwise provided in the Ultimate Net Loss Definition, this
Agreement applies only to that portion of any insurance or reinsurance, which
the Reinsured retains net for its own account and in calculating the amount of
any loss hereunder and also, in computing the amount(s) in excess of which this
Agreement attaches, only loss(es) in respect of that portion of any insurance
or reinsurance which the Reinsured retains net for its own account shall be
included.

 

The amount of the Reinsurers’ liability hereunder in respect of any
loss(es) shall not be increased by reason of the inability of the Reinsured to
collect from any insurer or reinsurers (whether specific or general), any
amounts which may have become due from them, regardless whether such inability
arises from the insolvency of such other Reinsurers or otherwise.

 

ARTICLE
15

 

ORIGINAL CONDITIONS

 

All reinsurance under this Agreement shall be subject to the same
rates, terms, conditions, waivers and interpretations, and to the same
modifications and alterations as the respective Policies of the Reinsured.
However, in no event shall this be construed in any way to provide coverage
outside the terms and conditions set forth in this Agreement.

 

12

 

ARTICLE
16

 

NO
THIRD PARTY RIGHTS

 

Except as may be expressly provided for herein, nothing herein shall in
any manner create any obligations or establish any rights against the
Reinsurers in favour of any third party or any persons not parties to this
Agreement.

 

ARTICLE
17

 

NOTICE
OF LOSS AND LOSS SETTLEMENTS

 

In the event of a loss occurrence which either results in or appears to
be of a serious enough nature as probably to result in a claim against and loss
involving this Agreement, then the Reinsured shall give written notice as soon
as reasonably possible and practical to the Reinsurers through the Intermediary
and the Reinsured shall keep the Reinsurers advised of all subsequent
developments in connection therewith.

 

The Reinsurers agree to abide by the loss settlements of the Reinsured,
such settlements to be: considered as, construed as, or evidence of
satisfactory proof of loss. Amounts falling to the share of the Reinsurers
shall be immediately payable to the Reinsured by the Reinsurers upon reasonable
evidence of the amount paid or to be paid by the Reinsured being presented to
the Reinsurers by the Reinsured. All papers in the possession of the Reinsured
in connection with the adjustment of said loss shall at all times within a
reasonable period be open to the inspection of properly authorized
representatives of the Reinsurers.

 

ARTICLE
18

 

LOSS
COLLECTION

 

Notwithstanding the claims payments stipulations contained in the
Ultimate Net Loss Definition of this Agreement, the Reinsured may, having
sustained a Loss Occurrence covered hereunder, recover from the Reinsurers on
the basis of anticipated settlements to its original policyholders which exceed
the Retention hereunder. Such recoveries under this Agreement shall be effected
on fifteen days’ notice from the Reinsured. Such recoveries shall be held in an
escrow account with interest accruing to the benefit of the Reinsurers. Funds
shall be withdrawn by the Reinsured as claims become payable to original
policyholders. Proof of loss will be provided to the Reinsurers in a timely
manner.

 

13

ARTICLE 19

 

CURRENCY

 

Where the word “dollars”
and/or the code “USD” appear in this Agreement, they shall mean United States
Dollars.

 

In the event that the
Reinsured is involved in a loss requiring payment in United States or Non-U.S,
currencies to be converted to United States currency, then the Reinsured’s
Retention and the amount recoverable hereunder shall be apportioned to the two
(2) currencies in the same proportion as the amount of Ultimate Net Loss bears
in each currency to the total amount of Ultimate Net Loss paid by the
Reinsured.

 

ARTICLE 20

 

CURRENCY
REVALUATION

 

It is agreed that
underwriting to contractual limits will be done in terms of United States
(U.S.) dollars for U.S. business and U.S. dollar equivalent for all other
business on the basis of exchange rates in effect at the time if inception of
new or renewal business or at the time an addition to an existing risk takes
place. For other than U.S. business, in the event there is a reduction in
parity value of the U.S. dollar from that existing at the time the risk was
written which results in the contractual limits being exceeded, the Reinsured
shall be held covered for such excess until next renewal of the risk at which
time underwriting will then conform to the contractual U.S. dollar limits in
effect at the time, subject in all cases to the provisions regarding Retention
and Limits.

 

ARTICLE 21

 

ACCESS TO
RECORDS

 

1.                                       The Reinsured shall allow the Reinsurers or
representatives duly authorised by them to inspect, at a mutually agreed time
and place, any records and documents which relate to business covered under
this Agreement. For such purposes, the Reinsured shall not be subjected to
unreasonable expense and disruption.

 

2.                                       The Reinsurers or representatives authorised
by them may arrange for copies to be made, at the Reinsurers’ expense, of any
of the records or documents containing such information that they may require.

 

3.                                       It is agreed that the Reinsurers’ right of
inspection shall continue as long as either party remains under any liability
arising out of this Agreement.

 

14

 

4.                                       The right of inspection being provided shall
not be construed to allow Reinsurers the right to delay or withhold payment for
any losses which fall due under this Agreement in accordance with terms and
conditions as stated herein.

 

ARTICLE 22

 

CONFIDENTIALITY

 

The Reinsurers hereby
acknowledge that the documents, information and data provided to it by the
Reinsured, whether directly or through an authorized agent, in connection with
the placement and execution of this Agreement (“Confidential Information”) are
proprietary and confidential to the Reinsured. Confidential Information shall
not include documents, information or data that the Reinsurers can show:

 

1.                          are publicly known or have become publicly
known through no unauthorized act of the Reinsurers;

 

2.                          have been rightfully received from a third
person without obligation of confidentiality; or

 

3.                          were known by the Reinsurers prior to the
placement of this Agreement without an obligation of confidentiality.

 

Absent the written consent
of the Reinsured, the Reinsurers shall not disclose any Confidential
Information to any third parties, including any affiliated companies, except:

 

1.                          when required by retrocessionaires subject to
the business ceded to this Agreement;

 

2.                          when required by regulators performing an
audit of the Reinsurers’ records and/or financial condition; or

 

3.                          when required by external auditors performing
an audit of the Reinsurers’ records in the normal course of business.

 

Further, the Reinsurers
agree not to use any Confidential Information for any purpose not related to
the performance of its obligations or enforcement of its rights under this
Agreement.

 

Notwithstanding the above,
in the event that the Reinsurers are required by court order, other legal
process or any regulatory authority to release or disclose any or all of the
Confidential Information, the Reinsurers agree to provide the Reinsured with
written notice of same at least 10 days prior to such release or disclosure and
to use its best efforts to assist the Reinsured in maintaining the
confidentiality provided for in this Article.

 

15

 

The provisions of this
Article shall extend to the officers, directors, shareholders and employees of
the Reinsurers and their affiliates, and shall be binding upon their successors
and assigns.

 

ARTICLE 23

 

DELAYS,
ERRORS AND OMISSIONS

 

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

 

ARTICLE 24

 

OFFSET

 

Each party hereto shall
have, and may exercise at any time and from time to time, the right to offset
any and all agreed balances due from one party to the other arising under this
Agreement.

 

ARTICLE 25

 

INSOLVENCY

 

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

 

16

 

Where two or more Reinsurers
are involved in the same claim and a majority in interest elect to interpose
defense to such claim, the expense shall be apportioned in accordance with the
terms of the reinsurance Contract as though such expense had been incurred by
the Reinsured.

 

As to all reinsurance made,
ceded, renewed or otherwise becoming effective under this Agreement, the
reinsurance shall be payable as set forth above by the Reinsurer to the
Reinsured or to its liquidator, receiver, conservator or statutory successor,
except (1) where the Agreement specifically provides another payee in the event
of the insolvency of the Reinsured; and (2) where the Reinsurer, with the
consent of the direct insured(s), have assumed such Policy obligations of the
Reinsured as direct obligations of the Reinsurer to the payees under such
policies and in substitution for the obligations of the Reinsured to such
payees. Then, and in that event only, the Reinsured is entirely released from
its obligation and the Reinsurers pay any loss directly to payees under such
Policy.

 

ARTICLE 26

 

ARBITRATION

 

As a condition precedent to any right of action hereunder,
if any dispute shall arise between the parties to this Agreement
with reference to the interpretation of this Agreement or their rights with
respect to any transaction involved, whether such dispute arises before or
after termination of this Agreement, such dispute, upon the written request of
either party, shall be submitted to three arbitrators, one to be chosen by each
party, and the third by the two so chosen. If either party refuses or neglects
to appoint an arbitrator within thirty days after the receipt of written
notification from the other party requesting it do so do, the requesting party
may appoint two arbitrators. If the two arbitrators fail to agree in the
selection of a third arbitrator within thirty days of their appointment, each
of them shall name two, of whom the other shall decline one and the final
decision shall be made by the “Appointor” specified
in the Particular Conditions. All arbitrators shall be active or retired
executive officers of insurance or reinsurance companies or Underwriters at
Lloyd’s, London not under the control of either party to this Agreement.

 

The arbitrators shall
interpret this Agreement 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. They shall
make their award with a view to affecting the general purpose of this Agreement
in a reasonable manner rather than in accordance with a literal interpretation
of the language. Each party shall submit its case to its arbitrator within
thirty days of the appointment of the third arbitrator.

 

The decision in writing of
any two arbitrators, when filed with the parties hereto, shall be final and
binding on both parties. Judgment may be entered upon the final decision of the
arbitrators in any court having jurisdiction. Each party shall bear the expense
of its own arbitrator and shall jointly and equally bear with the other party
the expense of the third arbitrator and of the arbitration. Said arbitration
shall take place in the city specified in the Particular Condition under “Seat of Arbitration”, unless some other place is mutually agreed
to in writing by the parties to this Agreement.

 

17

 

ARTICLE 27

 

CHOICE OF
LAW AND JURISDICTION

 

The Choice of Law and
Jurisdiction governing this Agreement (including Arbitration Tribunals) shall
be as specified in the attached Particular Conditions, subject to the terms of
the SERVICE OF SUIT CLAUSE in respect of Reinsurers rights in respect of
jurisdiction only.

 

ARTICLE 28

 

SERVICE OF
SUIT

 

(This Article applies only
to those Reinsurers not domiciled in the Cayman Islands)

 

It is agreed that, in the
event of the failure of the Reinsurer to pay any amount claimed to be due under
this Agreement, the Reinsurer, at the request of the Reinsured, will submit to
the jurisdiction of any court of competent jurisdiction within the location
specified in the Choice of Law and Jurisdiction section of the Particular
Conditions and will comply with all requirements necessary to give such court
jurisdiction; and all matters arising hereunder shall be determined in accordance
with the law and practice of such court. 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 location
specified in the Choice of Law and Jurisdiction section of the Particular
Conditions, or to seek a transfer of a case to another court as permitted by
the law of that country.

 

Service of process in such
suit may be made upon Maples & Calder, P.O. Box 309GT, Ugland House, South Church
Street, George Town, Grand Cayman, Cayman Islands (hereinafter, “agent for
service of process”) and in any suit instituted against any Reinsurers upon
this Agreement, the 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 the Reinsurer
in any such suit and/or upon the request of the Reinsured to give a written
undertaking to the Reinsured that the agent for service of process will enter a
general appearance on behalf of the Reinsurer in the event such a suit shall be
instituted.

 

Further, pursuant to any
statute of country in the location specified in the Choice of Law and
Jurisdiction section of the Particular Conditions, which make provision
therefore, the Reinsurer hereby designates Maples & Calder, 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 Reinsured or any
beneficiary hereunder arising out of this Agreement.

 

18

 

ARTICLE 29

 

INTERMEDIARY

 

Willis Re Inc. 1403 Brickell
Avenue, 11th Floor - Suite 1110, Miami FL 33131, U.S.A., and Willis Limited,
Ten Trinity Square, London EC3P 3AX are recognized as the intermediaries
negotiating this Agreement through whom all premiums, losses and communications
shall be transmitted between the parties. Payments by the Reinsured to the
intermediary shall be deemed to constitute payment to the Reinsurers. Payments
by the Reinsurers to the intermediary shall be deemed to constitute payment to
the Reinsured only to the extent that such payments are actually received by
the Reinsured.

 

In connection with the
foregoing, all Administration functions shall be serviced by Willis Limited,
Ten Trinity Square, London EC3P 3AX.

 

ARTICLE 30

 

MODE OF
EXECUTION

 

This Agreement may be
executed by:

 

(a)                     An original written ink signature of paper
documents.

 

(b)                    An exchange of facsimile copies showing the
original written ink signature of paper documents.

 

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

 

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

 

ARTICLE 31

 

AMENDMENTS
AND ALTERATIONS

 

It is hereby agreed that any
amendments and/or alterations to this Agreement that are mutually agreed upon,
by addendum, shall be automatically binding on the parties hereto and shall be
considered to form an integral part of this Agreement.

 

19

 

 

 

Signed for and on behalf of

 

 

 

ISLAND
HERITAGE INSURANCE COMPANY LIMITED

 

 

 

in Grand Cayman, Cayman
Islands

 

 

 

	
  this

  	
  day
  of

  	
  ,
  200  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

20

 

Attachment
No. 1

 

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 insurances or reinsurances shall exclude the perils of irradiation
and contamination by Nuclear Material.

 

Except as undernoted,
Nuclear Energy Risks shall not include:

 

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

 

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

 

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

 

21

 

However, the above exemption
shall not extend to:

 

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

 

(a)                    Nuclear Material;

 

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

 

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

 

•                             Fire, lightning, explosion;

 

•                             Earthquake;

 

•                             Aircraft and other aerial devices or articles
dropped therefrom;

 

•                             Irradiation and radioactive contamination;

 

•                             Any other peril insured by the relevant local
Nuclear Insurance Pool and/or Association;

 

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

 

Definitions

 

“Nuclear Material” means:

 

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

 

(ii)                     Radioactive Products or Waste.

 

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

 

22

 

“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.

 

“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.

 

 

NMA 1975a

(10/3/94)

 

23

 

Attachment
No. 2

 

NUCLEAR INCIDENT EXCLUSION
CLAUSE - PHYSICAL DAMAGE - REINSURANCE

 

1.                          This Agreement does not cover any loss or
liability accruing to the Reassured, directly or indirectly and whether as
Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed for the
purpose of covering Atomic or Nuclear Energy risks.

 

2.                          Without in any way restricting the operation
of paragraph (1) of this Clause, this Agreement does not cover any loss or
liability accruing to the Reassured, directly or indirectly and whether as
Insurer or Reinsurer, from any insurance against Physical Damage (including
business interruption or consequential loss arising out of such Physical
Damage) to:

 

I.                           Nuclear reactor power plants including all
auxiliary property on the site, or

 

II.                       Any other nuclear reactor installation,
including laboratories handling radioactive materials in connection with
reactor installations, and “critical facilities” as such, or

 

III.                   Installations for fabricating complete fuel
elements or for processing substantial quantities of “special nuclear material”,
and for reprocessing, salvaging, chemically separating, storing or disposing of
“spent” nuclear fuel or waste materials, or

 

IV.                   Installations other than those listed in
paragraph (2) III above using substantial quantities of radioactive isotopes or
other products of nuclear fission.

 

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

 

(a)                    where Reassured does not have knowledge of
such nuclear reactor power plant or nuclear installation, or

 

(b)                   where said insurance contains a provision
excluding coverage for damage to property caused by or resulting from
radioactive contamination, however caused. However on and after 1st January
1960 this sub-paragraph (b) shall only apply provided the said radioactive
contamination exclusion provision has been approved by the Governmental
Authority having jurisdiction thereof.

 

4.                          Without in any way restricting the operations
of paragraphs (1), (2) and (3) hereof, this Agreement does not cover any loss
or liability by radioactive contamination accruing to the Reassured, directly
or indirectly, and whether as Insurer or Reinsurer, when such radioactive
contamination is a named hazard specifically insured against.

 

24

 

5.                          It is understood and agreed that this Clause
shall not extend to risks using radioactive isotopes in any form where the
nuclear exposure is not considered by the Reassured to be the primary hazard.

 

6.                          The term “special nuclear material” shall
have the meaning given it in the Atomic Energy Act of 1954 or by any law
amendatory thereof.

 

7.                          Reassured to be sole judge of what
constitutes:

 

(a)                                  substantial quantities, and

 

(b)                                 the extent of installation, plant or site.

 

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

 

(a)                                  all policies issued by the Reassured on or
before 31st December 1957 shall be free from the application of the other
provisions of this Clause until expiry date or 31st December 1960 whichever
first occurs whereupon all the provisions of this Clause shall apply.

 

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

 

12/12/57

N.M.A.1119

 

25

 

Attachment
No. 3

 

NUCLEAR INCIDENT EXCLUSION
CLAUSE - PHYSICAL DAMAGE AND LIABILITY (BOILER AND MACHINERY POLICIES) -
REINSURANCE

 

(1)                     This Agreement 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 Agreement all original Boiler and Machinery Insurance or
Reinsurance contracts of the Reassured shall be deemed to include the following
provisions of this paragraph;

 

This Policy does not apply
to “loss”, whether it be direct or indirect, proximate or remote

 

(a)                    from an Accident caused directly or indirectly
by nuclear reaction, nuclear radiation or radioactive contamination, all
whether controlled or uncontrolled; or

 

(b)                   from nuclear reaction, nuclear radiation or
radioactive contamination, all whether controlled or uncontrolled, caused
directly or indirectly by, contributed to or aggravated by an Accident.

 

(3)                     However, it is agreed that loss arising out
of the use of Radioactive isotopes in any form is not hereby excluded from
reinsurance protection.

 

(4)                     Without in any way restricting the operation
of paragraph (1) hereof, it is understood and agreed that

 

(a)                    all policies issued by the Reassured
effective on or before 30th April, 1958, shall be free from the application of
the other provisions of this Clause until expiry date or 30th April, 1961,
whichever first occurs, whereupon all the provisions of this Clause shall
apply,

 

(b)                   with respect to any risk located in Canada
policies issued by the Reassured effective on or before 30th June, 1958, shall
be free from the application of the other provisions of this Clause until
expiry date or 30th June, 1961, whichever first occurs, whereupon all the
provisions of this Clause shall apply.

 

23/6/58

N.M.A. 1166

 

26

 

SUBSCRIPTION AGREEMENT

 

 

SUBSCRIPTION
AGREEMENT BETWEEN THE BROKER AND THE INSURERS / REINSURERS WHICH WILL NOT FORM
PART OF THIS AGREEMENT FOR CONTRACTUAL DOCUMENTATION PURPOSES

 

	
  SLIP
  LEADER :

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BROKERAGE:

  	
   

  	
  10.00% (Nil on
  Reinstatement)

  
	
   

  	
   

  	
   

  
	
  BASIS OF

  AGREEMENT TO CONTRACT

  CHANGES:

  	
   

  	
  All Reinsurers to agree.

  
	
   

  	
   

  	
   

  
	
  DOCUMENT

  PRODUCTION:

  	
   

  	
  Full contractual wording
  is incorporated.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Reinsurers’ acceptance of
  a share in this Agreement, whether by direct signature of the attached
  signing page(s) (whether attached hereto or otherwise), or by correspondence,
  shall constitute their formal signature of this Agreement and no further
  documentation shall be issued.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All Reinsurers are
  requested to complete the “Reinsurer Contact” section in the Signing Page to
  enable accurate and prompt communication.

  
	
   

  	
   

  	
   

  
	
  SIGNING

  PROVISIONS:

  	
   

  	
  

  Disproportionate Lines:

  Reinsurers agree to allow
  Willis Limited, without further authorisation, to sign written lines
  disproportionately. Signing down estimations given at time of placement are
  for indication only and are not warranted.

  
	
   

  	
   

  	
   

  
	
  CLAIMS

  ADMINISTRATION:

  	
   

  	
  All Reinsurers to receive
  and agree claims via email, facsimile or letter.

  

 

1

 

	
  EXPERT(S)
  FEES

  	
   

  	
   

  
	
  COLLECTION:

  	
   

  	
  It is hereby noted and
  agreed for the avoidance of any doubt Willis
  Re Inc. and/or Willis Limited shall have no responsibility
  whatsoever for the collection of any expert fees and expenses.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Such expert fees and
  expenses shall be collected 100% by the party indicated (if any) within the
  attached documentation only if specified.

  
	
   

  	
   

  	
   

  
	
  CURRENCY:

  	
   

  	
  All settlements (premiums
  and claims) to be converted to or paid in United States Dollars.

  

 

2

 

Willis

 

2006 RESIDENTIAL PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ526

 

 

 

INFORMATION

 

 

 

ISLAND HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis Re
Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc.,
4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A and
Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526.

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance
  Company Limited

  
	
  Type

  	
  :

  	
  Residential Property
  Catastrophe Excess of Loss Reinsurance Agreement.

  

 

INFORMATION

 

	
  REINSURED:

  	
  ISLAND
  HERITAGE INSURANCE COMPANY LIMITED, Cayman Islands

  
	
   

  	
   

  
	
  TYPE:

  	
  Residential Property
  Catastrophe Excess of Loss Reinsurance Agreement

  
	
   

  	
   

  
	
  DATE:

  	
  April 2006

  
	
   

  	
   

  
	
  CURRENCY:

  	
  US Dollars

  

 

ESTIMATED
AVERAGE AGGREGATES FOR ADJUSTMENT

 

	
  Residential

  	
  USD

  	
  1,363,675,000

  	
   

  	
   

  

 

LOSS
INFORMATION

 

All Loss Figures are Net
retained on the basis of intended 2006 QS retentions

 

2004
Hurricane Ivan

 

Hurricane Ivan, which hit
Grand Cayman in 2004, caused widespread damage from wind and sea surge. Since
then, various measures have been taken by Island Heritage to reduce the impact
of any future windstorm. These include increased original deductibles and
avoidance, where possible, of risks that are considered unduly exposed.

 

	
  Residential

  	
  USD

  	
  64,311,411

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2004
  Hurricane Jeanne
Residential Bahamas

  	
  USD

  	
  1,838,518

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2004
  Hurricane Francis
Residential Bahamas 

  	
  USD

  	
  2,187,176
  

  	
   

  	
   

  
	
  Residential Turks

  	
  USD

  	
  75,082

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2005 Hurricane
  Wilma
Residential Bahamas 

  	
  USD

  	
  1,052,672
  

  	
   

  	
   

  
	
  Residential Cayman

  	
  USD

  	
  548,027

  	
   

  	
  NB. Cayman Loss in dispute
  by IH due to non disclosure of material facts

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Residential

  	
  USD

  	
  1,600,698

  	
   

  	
   

  

 

 

THIS
INFORMATION SECTION LISTS INFORMATION MADE AVAILABLE TO REINSURERS FOR
ASSESSMENT OF THE RISK. IT DOES NOT INCLUDE CONTRACTUAL TERMS AND CONDITIONS OF
COVER.

 

1

 

Willis Re
Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc.,
4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A and
Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance
  Company Limited

  
	
  Type

  	
  :

  	
  Residential Property
  Catastrophe Excess of Loss Reinsurance Agreement

  

 

FISCAL AND REGULATORY

 

	
  TAXES
  PAYABLE BY

  REINSURER(S):

  	
   

  	
  As specified in the
  Particular Conditions.

  
	
   

  	
   

  	
   

  
	
  US

  CLASSIFICATION:

  	
   

  	
  Non-regulated.

  
	
   

  	
   

  	
   

  
	
  ALLOCATION
  OF

  PREMIUM TO

  CODING:

  	
   

  	
  Unless otherwise indicated
  by Slip Leader no accounting splits required.

  
	
   

  	
   

  	
   

  
	
  FSA
  CLIENT

  CLASSIFICATION:

  	
   

  	
  Reinsurance.

  

 

1

 

Willis

 

2006 RESIDENTIAL PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ526

 

 

SIGNING EXHIBIT(S)

 

 

ISLAND HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis Re
Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc.,
4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A and
Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance
  Company Limited

  
	
  Type

  	
  :

  	
  Residential Property
  Catastrophe Excess of Loss Reinsurance Agreement

  

 

SIGNING EXHIBIT

 

	
  Period:

  	
  Losses occurring during
  the period 12 months from 12:01 a.m. 1 April 2006 to 12:01 a.m. 31 March 2007
  both days inclusive, local standard time at the place where the loss occurs.

  
	
   

  	
   

  
	
  Reinsurer:

  	
   

  	
  FLAGSTONE

  REINSURANCE LIMITED

  
	
   

  	
   

  	
   

  
	
  Agreement
  Carrier if different from above:

  	
   

  
	
   

  	
   

  
	
  Written
  line(s):

  	
  First Layer: 

  	
  25%

  	
   

  	
  Ref.:

  
	
   

  	
  Second Layer: 

  	
  25%

  	
   

  	
  Ref.:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Final
  signed line(s):

  	
  First
  Layer:

  	
  %

  	
   

  
	
   

  	
  Second
  Layer:

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signed in Bermuda this 3rd
  day of June 2006

  
	
   

  
	
   

  	
  /s/ 

  	
   

  
								

 

1

 

Willis Re
Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re Inc.,
4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A and
Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ526

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance
  Company Limited

  
	
  Type

  	
  :

  	
  Residential Property
  Catastrophe Excess of Loss Reinsurance Agreement

  

 

INFORMATION REQUIRED TO IMPROVE CONTRACT SERVICING 

 

REINSURERS:

 

 

	
  REINSURERS’
  CONTACTS

  
	
   

  
	
  UNDERWRITER:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email
  address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
  CLAIMS:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email
  address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
  ACCOUNTS:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email
  address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:EXHIBIT 10.25

 

Willis

 

ISLAND HERITAGE INSURANCE COMPANY 

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

PLACEMENT SLIP/WORDING

 

2006 UMBRELLA PROPERTY CATASTROPHE 

EXCESS OF LOSS REINSURANCE AGREEMENT

 

Reference No.: DLXJ527

 

 

	
  Agreement
  Number

  	
  :

  	
  DLXJ527

  
	
   

  	
   

  	
   

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
   

  	
   

  	
   

  
	
  Type
  of Agreement

  	
  :

  	
  Umbrella Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  
	
   

  	
   

  	
   

  
	
  Period

  	
  :

  	
  12 months Commencing 1 April 2006.

  
	
   

  	
   

  	
   

  
	
  This
  Agreement consists of three parts

  	
  :

  	
  Particular Conditions

  General Conditions

  Signing Exhibit(s)

  

 

 

2006 UMBRELLA PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ527

 

 

PARTICULAR CONDITIONS

 

 

ISLAND HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis
Re Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re
Inc., 4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A
and Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

 

	
  Reference

  	
  :

  	
  DLXJ527

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
  Type

  	
  :

  	
  Umbrella Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  

 

PARTICULAR CONDITIONS

 

 

	
  REINSURED
  AND LOCATION:

  	
   

  	
  ISLAND
  HERITAGE INSURANCE COMPANY LIMITED, GRAND CAYMAN, CAYMAN ISLANDS, including any
  and/or all companies that are or may hereafter become affiliated therewith.

  
	
   

  	
   

  	
   

  
	
  PERIOD:

  	
   

  	
  Losses occurring during
  the period 12 months from 12:01 a.m. 1 April 2006 to 12:01 a.m. 31 March 2007
  both days inclusive, local standard time at the place where the loss occurs.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Local Standard Time”
  shall mean the time as described in the original policy.

  
	
   

  	
   

  	
   

  
	
  TYPE:

  	
   

  	
  Umbrella Property
  Catastrophe Excess of Loss Reinsurance Agreement.

  
	
   

  	
   

  	
   

  
	
  ACCOUNT
  BASIS:

  	
   

  	
  Losses Occurring.

  
	
   

  	
   

  	
   

  
	
  CLASS
  OF BUSINESS:

  	
   

  	
  All business written
  and classified by the Reinsured as Residential Property, Commercial Property
  Business including but not limited to Fire and Allied Perils, Natural Perils,
  Material Damage and/or Business Interruption, Builders’ Risk Business and
  Automobile Physical Damage.

  
	
   

  	
   

  	
   

  
	
  EXCLUSIONS:

  	
   

  	
  All exclusions are listed in full in the General
  Conditions.

  
	
   

  	
   

  	
   

  
	
  TERRITORIAL
  SCOPE:

  	
   

  	
  Caribbean Islands and their
  interests abroad, including but not limited to:\

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Anguilla, Antigua, Aruba, Bahamas, Barbados, Belize,
  Bermuda, Bonaire, British Virgin Islands, Cayman Islands, Curacao, Dominica,
  Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Martinique,
  Monsterrat, Nevis/St. Kitts, Puerto Rico, Saba, St. Barthelemy, St.
  Eustatius, St. Lucia, St. Martin/Maarten, St. Vincent, The Grenadines,
  Trinidad and Tobago, Turks and Caicos and U. S. Virgin Islands.

  
	
   

  	
   

  	
   

  
	
  LIMIT:

  	
   

  	
  USD 90,000,000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ultimate Net Loss, each and every Loss Occurrence.

  

 

1

 

	
  RETENTION:

  	
   

  	
  In excess of the
  Reinsured’s underlying coverages:

   

  Residential
  Property:        USD 60,000,000

  Commercial Property:      USD 30,000,000

  Quota Share Contract Event Limits: as per schedule

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ultimate Net Loss, each and every Loss Occurrence.

  
	
   

  	
   

  	
   

  
	
  REINSTATEMENT
  PROVISIONS:

  	
   

  	
  One full reinstatement, calculated at pro rata of
  100% of the Reinsurers’ premium for the period of this Agreement, being pro
  rata only as to the fraction of the Reinsurers’ limit of liability hereunder
  (i.e. the fraction of the limit) so reinstated.

  
	
   

  	
   

  	
   

  
	
  Limit in All:

  	
   

  	
  USD 180,000,000

  
	
   

  	
   

  	
   

  
	
  PREMIUM:

  	
   

  	
  Adjustable Rates are applied to the Average Net
  Retained Property Aggregates in respect of direct written business as
  reported in the aggregate statements as at April 1, 2006, July 1, 2006,
  October 1, 2006, January 1, 2007 and April 1, 2007.

  
	
   

  	
   

  	
   

  
	
  Adjustable Rate:

  	
   

  	
  0.1880%

  
	
   

  	
   

  	
   

  
	
  Minimum
  and Deposit Premiums:

  	
   

  	
  USD 3,240,000

  
	
   

  	
   

  	
   

  
	
  Discounts:

  	
   

  	
  Notwithstanding the foregoing, the following
  considerations shall apply to all layers:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1)

  	
  The aforementioned rates will be discounted by the
  following factors and applied to business written which contains the higher
  deductibles as shown:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Windstorm deductible

  	
  2

  	
  %

  	
   

  	
  Discount

  	
  0

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
  3

  	
  %

  	
   

  	
   

  	
  10

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
  4

  	
  %

  	
   

  	
   

  	
  20

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
  5

  	
  %

  	
   

  	
   

  	
  30

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
  10

  	
  %

  	
   

  	
   

  	
  40

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2)

  	
  Furthermore, the above rates will be discounted by
  50% and applied to business written which contains an exclusion for
  windstorm.

  

 

2

 

	
  PAYMENT
  TERMS:

  	
   

  	
  Premiums are payable in four equal quarterly
  instalments at April 1, 2006, July 1, 2006, October 1, 2006 and January 1,
  2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adjustments to be made as soon as practical after
  expiry.

  
	
   

  	
   

  	
   

  
	
  BROKERAGE:

  	
   

  	
  10.00% (Nil on Reinstatement).

  
	
   

  	
   

  	
   

  
	
  OTHER
  DEDUCTIONS FROM PREMIUM:

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  TAXES
  PAYABLE BY REINSURED AND ADMINISTERED BY REINSURERS:

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  TAXES
  PAYABLE BY REINSURER(S):

  	
   

  	
  Nil.

  
	
   

  	
   

  	
   

  
	
  CHOICE
  OF LAW AND JURISDICTION:

  	
   

  	
  (AGREEMENT & ARBITRATION TRIBUNALS)

  
	
   

  	
   

  	
  Law and Jurisdiction of the Cayman Islands.

  
	
   

  	
   

  	
   

  
	
  SEAT OF
  ARBITRATION:

  	
   

  	
  Grand Cayman, the Cayman Islands.

  
	
   

  	
   

  	
   

  
	
  APPOINTOR:

  	
   

  	
  The Secretary General of the Court of Arbitration of
  the International Chamber of Commerce or if he is unavailable or it is
  inappropriate for him to act for any reason, such person as may be nominated
  by the Committee of that body. If for any reason such persons decline or are
  unable to act then the appointor shall be the judge of the appropriate Courts
  having jurisdiction at the place of Arbitration.

  
	
   

  	
   

  	
   

  
	
  EXPRESS
  WARRANTIES:

  	
   

  	
  None.

  

 

3

 

	
  CONDITIONS
  PRECEDENT:

  	
   

  	
  There is a condition precedent to any right of
  action in Law as specified in the attached General Conditions under
  Arbitration.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Failure to comply with this condition precedent may
  result in the party commencing litigation having the legal proceedings
  dismissed or stayed and instead being instructed to arbitration by a court of
  law.

  
	
   

  	
   

  	
   

  
	
  CONDITIONS:

  	
   

  	
  All clauses are as stated in full in the attached
  General Conditions.

  
	
   

  	
   

  	
   

  
	
  SPECIAL
  ACCEPTANCE:

  	
   

  	
  To be agreed by (“Slip Leader”) only as detailed in
  the General Conditions.

  
	
   

  	
   

  	
   

  
	
  WORDING:

  	
   

  	
  Full contractual wording is incorporated.

  
	
   

  	
   

  	
   

  
	
  SEVERAL
  LIABILITY:

  	
   

  	
  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.

  08/94, LSW1001 (Reinsurance).

  

 

4

Willis

 

2006 UMBRELLA PROPERTY
CATASTROPHE 

EXCESS OF LOSS REINSURANCE
AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ527

 

 

GENERAL CONDITIONS

 

 

ISLAND HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN
ISLANDS

 

 

Willis
Re Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re
Inc., 4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A
and Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference
  

  	
  :

  	
  DLXJ527

  
	
  Reinsured
  

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
  Type

  	
  :

  	
  Umbrella Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  

 

GENERAL CONDITIONS

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Parties

  	
   

  	
   

  
	
  1

  	
   

  	
  Class of Business Covered

  	
   

  	
   

  
	
  2

  	
   

  	
  Limit and Retention

  	
   

  	
   

  
	
  3

  	
   

  	
  Reinstatement

  	
   

  	
   

  
	
  4

  	
   

  	
  Period

  	
   

  	
   

  
	
  5

  	
   

  	
  Special Termination

  	
   

  	
   

  
	
  6

  	
   

  	
  Territory

  	
   

  	
   

  
	
  7

  	
   

  	
  Exclusions

  	
   

  	
   

  
	
  8

  	
   

  	
  Special Acceptance

  	
   

  	
   

  
	
  9

  	
   

  	
  Premium

  	
   

  	
   

  
	
  10

  	
   

  	
  Definitions

  	
   

  	
   

  
	
  11

  	
   

  	
  Two Risk Agreement

  	
   

  	
   

  
	
  12

  	
   

  	
  Self Insured Obligations

  	
   

  	
   

  
	
  13

  	
   

  	
  Extra Contractual Obligations

  	
   

  	
   

  
	
  14

  	
   

  	
  Net Retained Lines

  	
   

  	
   

  
	
  15

  	
   

  	
  Original Conditions

  	
   

  	
   

  
	
  16

  	
   

  	
  No Third Party Rights

  	
   

  	
   

  
	
  17

  	
   

  	
  Notice of Loss and Loss Settlements

  	
   

  	
   

  
	
  18

  	
   

  	
  Loss Collection

  	
   

  	
   

  
	
  19

  	
   

  	
  Currency

  	
   

  	
   

  
	
  20

  	
   

  	
  Currency Revaluation

  	
   

  	
   

  
	
  21

  	
   

  	
  Access to Records

  	
   

  	
   

  
	
  22

  	
   

  	
  Confidentiality

  	
   

  	
   

  
	
  23

  	
   

  	
  Delays, Errors and Omissions

  	
   

  	
   

  
	
  24

  	
   

  	
  Offset

  	
   

  	
   

  
	
  25

  	
   

  	
  Insolvency

  	
   

  	
   

  
	
  26

  	
   

  	
  Arbitration

  	
   

  	
   

  
	
  27

  	
   

  	
  Choice of Law and Jurisdiction

  	
   

  	
   

  
	
  28

  	
   

  	
  Service of Suit

  	
   

  	
   

  
	
  29

  	
   

  	
  Intermediary

  	
   

  	
   

  
	
  30

  	
   

  	
  Mode of Execution

  	
   

  	
   

  
	
  31

  	
   

  	
  Amendments and Alterations

  	
   

  	
   

  
	
   

  	
   

  	
  Reinsured Signing Block

  	
   

  	
   

  

 

1

 

Attachments

 

1.                          Nuclear
Energy Risks Exclusion Clause (Reinsurance) (1994) (Worldwide Excluding U.S.A.
and Canada) NMA 1975a

2.                          Nuclear
Incident Exclusion Clause - Physical Damage - Reinsurance - U.S.A. NMA 1119.

3.                          Nuclear
Incident Exclusion Clause - Physical Damage and Liability (Boiler and Machinery
Policies) - Reinsurance - U.S.A. NMA 1116.

 

Exhibits

 

Subscribing Reinsurer’s
Signing Exhibit(s)

 

2

 

UMBRELLA PROPERTY
CATASTROPHE EXCESS OF LOSS

REINSURANCE AGREEMENT

 

between

 

ISLAND HERITAGE INSURANCE
COMPANY LIMITED

Grand Cayman, Cayman Islands

 

including any and/or all
companies that are or may hereafter become

affiliated therewith

 

(the “Reinsured”)

 

and

 

THE SUBSCRIBING
REINSURERS IDENTIFIED

IN THE SUBSCRIBING REINSURER’S SIGNING PAGE(S)

 

(the “Reinsurers”)

 

ARTICLE 1

 

CLASS OF BUSINESS COVERED

 

This Agreement shall
indemnify the Reinsured, as set forth in the Limit and Retention Article, in
respect of the liability which may accrue to the Reinsured under all policies,
bonds, binders, certificates, contracts of insurance or reinsurance,
co-insurance or co-indemnity, or other evidences of liability (hereinafter
referred to as “Policy(ies)” and/or “bond(s)”), whether oral or written, issued
by or contracted for by the Reinsured in respect of all business as specified
in the Particular Conditions under, “Class of
Business”, subject to the exclusions stated in the Exclusions
Article.

 

ARTICLE 2

 

LIMIT AND RETENTION

 

The Reinsurers shall be
liable in respect of each Loss Occurrence, for 100% of the Ultimate Net Loss
over and above an initial Ultimate Net Loss as specified in the Particular
Conditions under, “Retention” each
and every Loss Occurrence, subject to a limit of liability to the Reinsurers as
specified in the Particular Conditions under, “Limit”
each and every Loss Occurrence.

 

1

 

ARTICLE 3

 

REINSTATEMENT

 

Loss payments under this
Agreement shall reduce the limit of coverage afforded by the amounts paid, but
the limit of coverage shall be reinstated from the time of the occurrence of
the loss to the expiry of this Agreement, and for each amount so reinstated,
the Reinsured agrees to pay, an additional premium (if any) as specified in the
Particular Conditions. Nevertheless, the Reinsurers’ liability hereunder shall
not exceed the amount as specified in the Particular Conditions under, “Limit” in respect of each and every Loss Occurrence, and
nor the amount as specified in the Particular Conditions under, “Reinstatement Provisions, Limit in All” in
respect of all Loss Occurrences during the period of this Agreement.

 

If at the time of a loss
settlement hereon the reinsurance premium, as calculated in accordance with the
Premium Article is unknown, the above calculation of reinstatement premium
shall be based upon the minimum and deposit premium, subject to adjustment when
the reinsurance premium is finally established.

 

ARTICLE 4

 

PERIOD

 

This Agreement applies
only to losses occurring during the period as specified in the attached
Particular Conditions under, “Period”.

 

If this Agreement expires
or terminates while a loss occurrence covered hereunder is in progress, it is
agreed that, subject to the other conditions of this Agreement, the Reinsurer
shall indemnify the Reinsured as if the entire loss occurrence had occurred
during the period of this Agreement.

 

If any law or regulation
of the federal, state or local government of any jurisdiction in which the
Reinsured is doing business shall render illegal the arrangements made in this
Agreement, the Agreement can be terminated immediately, insofar as it applies
to such jurisdiction, by the Reinsured giving notice to the Reinsurers to such
effect.

 

ARTICLE 5

 

SPECIAL TERMINATION

 

a)                         It is a
condition upon all Reinsurers who participate in this Agreement that each
individual Reinsurer shall at all times during the period of this Agreement
maintain an Insurer Financial Strength (IFS) rating from Standard & Poor’s
Rating Group of 1221 Avenue of the Americas, New York, New York 10020, USA (“S&P”)
equal to or greater than the rating that was applied by S&P to that
individual Reinsurer at the commencement of this Agreement.

 

2

 

In the event of an
explicit downgrading of any individual Reinsurer by S&P to an IFS rating
inferior to that which was supplied by S&P at the commencement of this
Agreement, then at the sole option of the Reinsured, the Reinsured may elect to
cancel the participation of that individual Reinsurer. The effective date of
such cancellation shall not be earlier than the date upon which the relevant
downgrading by S&P was announced in New York, USA and the Reinsured shall
submit a notice of cancellation within 30 days after the date upon which the
relevant downgrading by S&P was announced.

 

Any individual Reinsurer
who does not have an IFS rating from S&P but who maintains during the
period of this Agreement a rating from A.M. Best Company of A.M. Best Road,
Oldwick, New Jersey 08858-0700 USA (“Bests”) shall also be considered as
falling within the terms of this Article. Any explicit downgrading of such an
individual Reinsurer by Bests to a rating inferior to that which was applied by
Bests to that individual Reinsurer at the commencement of this Agreement shall
give the Reinsured the same right of cancellation as set out above.

 

In the event that a
rating should be given to an individual Reinsurer by both S&P and Bests
which differ to that extent that one of the ratings is inferior to the other
than the rating of S&P shall
prevail.

 

For the avoidance of
doubt the status of Credit Watch as defined by S&P or a rating modifier of ‘u’
(Under Review) applied to a rated company as defined by Bests shall not, of
itself, be construed as a downgrading for the purposes of this Article.

 

With regard to any Lloyd’s
Underwriters participating hereunder the rating applicable to each individual
Lloyd’s Underwriter shall be the S&P IFS rating applicable to the Lloyd’s
Corporation as a whole at the commencement of this Agreement.

 

If, for a reinsurer with
no rating by S&P or Bests, in the judgement of the Reinsured the security
of such Reinsurer has materially deteriorated since inception of this
Agreement, the Reinsured shall have the same right of cancellation as set out
above.

 

Notwithstanding the
foregoing, for Reinsurers rated A- or above at the commencement of this
Agreement, Section a) of this Article will only operate when the deterioration
in rating is to a level below A-.

 

The Reinsured may also
elect to cancel the participation of any individual Reinsurer that ceases
underwriting. The effective date of such cancellation shall be determined at
the sole discretion of the Reinsured provided that the date so determined shall
not be earlier than the date upon which the relevant Reinsurer ceased
underwriting.

 

b)                        Furthermore,
either party shall have the right to cancel this Agreement immediately by
giving the other party notice:

 

i)                           if the
performance of the whole or any part of this Agreement is prohibited or
rendered impossible due jure to de facto in particular and without prejudice to
the generality of

 

3

 

the preceding words in
consequence of any law or regulation which is or shall be in force in any
country or territory or if any law or regulation shall prevent directly or
indirectly the remittance of any or all or any part of the balance or payments
due to or from either party;

 

ii)                        if the
country or territory in which the other party resides or has its head office or
is incorporated shall be involved in armed hostilities with any other country
whether war be declared or not, or is partly or wholly occupied by another
power;

 

iii)                     if the other
party shall have failed and refuses after due notice in writing to comply with
any of the General Conditions.

 

After the date of
cancellation, under either paragraph a) or b) above, the liability of the
Reinsurers hereunder shall cease outright other than in respect of losses which
have occurred or commenced prior thereto.

 

All notices of
cancellation served in accordance with any of the provisions of paragraph a)
and b) above shall be by telegram or facsimile or any other means of
instantaneous communication that provides a permanent record of such
communication, and shall be deemed to be served upon despatch or where communications
between the parties are interrupted upon attempted despatch.

 

All notices of
cancellation served in accordance with any of the provisions of paragraph a)
and b) above shall be addressed to the party concerned at its Head Office or at
any other address previously designated by that party.

 

In the event of this
Agreement being terminated in accordance with the provisions of this Article,
and subject to no loss to this Agreement, the minimum and deposit premium and
the final adjusted premium charged hereon will be calculated in accordance with
the following formula-

 

	
  Period on Risk

  	
   

  	
  % of Annual Premium

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1
  April 2006 to 31 May 2006

  	
   

  	
  20/5ths for each month

  	
   

  
	
  1
  June 2006 to 31 December 2006

  	
   

  	
  80/7ths for each month

  	
   

  
	
  1
  January 2007 to 31 March 2007

  	
   

  	
  20/5ths for each month

  	
   

  

 

For any period within a
month, the number of days will be calculated pro rata of that month.

 

ARTICLE 6

 

TERRITORY

 

This Agreement shall
apply to losses occurring within the territorial limits as specified in the
Particular Conditions under, “Territorial
Scope”.

 

4

 

ARTICLE 7

 

EXCLUSIONS

 

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

 

1.                          Business
classified by the Reinsured as Credit, Financial Guarantee and Insolvency
insurance.

 

2.                          Business
classified by the Reinsured as Liability, Ocean Marine and Aviation business
except where incidental to and forming part of Policies covered hereunder.

 

3.                          Business
classified by the Reinsured as Fidelity, Life or Surety.

 

4.                          Business
classified by the Reinsured as Accident and Sickness and Salary Continuance
except when written as part of a package Policy.

 

5.                          Nuclear
Energy, as per the Nuclear Energy Exclusion Clauses NMA 1975(a), NMA 1119 and
NMA 1166 as more fully detailed in the attachments hereto.

 

6.                          With regard to all territories except the U.S. Virgin
Islands, this Agreement does not cover loss, destruction or
damage directly or indirectly caused by seepage and/or pollution and/or
contamination except destruction of or damage to the property insured caused by
pollution or contamination which itself results from damage to insured property
from an insured peril.

 

With
regard to the U.S. Virgin Islands only, this Agreement
excludes loss and/or damage and/or costs and/or expenses arising from seepage
and/or pollution and/or contamination, other than contamination from smoke.
Nevertheless, this exclusion does not preclude payment of the cost of removing
debris of property damaged by a loss otherwise covered hereunder, subject
always to a limit of 25% of the Reinsured’s property loss under the applicable
original Policy.

 

7.                          Losses
in respect of overhead transmission and distribution lines and their supporting
structures other than those on or within 1,000 feet of the Insured premises.

 

It is agreed that public
utilities extension and/or suppliers extension and/or contingent business
interruption coverages are not subject to this exclusion, provided that these
are not part of a transmitters’ or distributors’ Policy.

 

8.                          Loss or
damage directly or indirectly occasioned by, happening through or in
consequence of war, invasion, acts of foreign enemies, hostilities (whether war
be declared or not), civil war, rebellion, revolution, insurrection, military
or usurped power, or confiscation or nationalization or requisition or
destruction of or damage to property by or under the order of any government or
public or local authority.

 

5

 

9.                          Cyber
Risk, as per the Information Technology Hazards Clarification Clause:

 

Information
Technology Hazards Exclusion Clause

 

Losses arising, directly
or indirectly, out of:

 

(i)                       loss of,
alteration of, or damage to

 

or

 

(ii)                    a reduction in
the functionality, availability or operation of

 

a computer system,
hardware, programme, software, data, information repository, microchip,
integrated circuit or similar device in computer equipment or non-computer
equipment, whether the property of the policyholder of the Reinsured or not,
are excluded hereon unless arising out of one or more of the perils as defined
in the Reinsured’s original Policy Wording. These perils include but are not
limited to:

 

fire, lightning,
explosion, aircraft or vehicle impact, falling objects, windstorm, tornado,
cyclone, hurricane, earthquake, volcano, tsunami, flood, subsidence, landslip,
theft, riots/strikes, malicious damage escape of water falling trees.

 

(Based on NMA2928 -
10/12/01).

 

10.                    Terrorism
Risks in accordance with the terms of Terrorism Exclusion NMA2930c
below:

 

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

 

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

 

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

(ii)                    involves
damage to property; or

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

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

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

 

6

 

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

 

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

 

NMA2930c 

22/11/02

 

For the purposes of this
exclusion, condominiums and residential rental properties shall be considered
as personal lines business.

 

Applicable to the U.S.
Virgin Islands only:

 

It is further agreed that
this exclusion does not apply to losses suffered by the Reinsured which form
part of a U.S. Virgin Island market loss caused by Terrorism up to a total of
USD 27,500,000 as defined by TRIEA and any applicable I.S.O. endorsements for
the U.S. Virgin Islands. However, any act of terrorism caused directly or
indirectly by, contributed to by, resulting from, or arising out of or in
connection with biological, chemical, radioactive, or nuclear pollution or
contamination or explosion is hereby excluded. Furthermore any and all
recoveries from TRIEA shall inure to the benefit of this treaty.

 

However, in respect of
certified losses beyond the extent of TRIEA and any applicable I.S.O.
endorsements for the U.S. Virgin Islands, this Reinsurance Agreement will not
pay any losses, including those affecting the Reinsured’s retention, or any
non-certified losses, whether or not these losses are directly or indirectly
caused by, contributed to by, resulting from, or arising out of or in connection
with biological, chemical, radioactive, or nuclear pollution or contamination
or explosion.

 

During the term of this
Reinsurance Agreement and unless any other agreement between the parties (the
Reinsured and the Reinsurers) has been reached, if TRIEA is not extended beyond
the expiry date in place at the commencement of this Reinsurance Agreement or
if the form and shape of TRIEA is revised to whatever extent by the United
States authorities during this Reinsurance Agreement, it is understood that the
definition in force at the commencement date of this Reinsurance Agreement
shall nevertheless be deemed in full force and effect for the purpose of this
Reinsurance Agreement. As soon as the exact structure of TRIEA beyond its
current expiry date is transparent to the parties involved in this Reinsurance
Agreement, the parties will analyze the new situation and negotiate any
amendment or revision of this exclusion.

 

7

 

11.                    Risks in
accordance with the Radioactive Exclusion Clause: unless specifically agreed
for an insured loss involving nuclear material under determined circumstances,
this Agreement does not cover
loss, damage, cost or expense of whatsoever nature directly or indirectly
caused by, resulting from or in connection with any of the following regardless
of any other cause or event contributing concurrently or in any other sequence
to the loss:

 

•                            lonising
radiations from or contamination by radioactivity from any nuclear fuel or from
any nuclear waste or from the combustion of nuclear fuel.

 

•                            The
radioactive, toxic, explosive or other hazardous or contaminating properties of
any nuclear installation, reactor or other nuclear assembly or nuclear
component thereof.

 

•                            Any
weapon or device of war employing atomic or nuclear fission and/or fusion or
other like reaction or radioactive force or matter.

 

12.                    Pools, pooling
arrangements and captive accounts.

 

13.                    First loss
policies with no average clause.

 

14.                    Bloodstock and
livestock.

 

15.                    Contingent Business
Interruption amended to include Customers and Suppliers extensions when cover
is named 1st tier Customer/Supplier and with a sub-limit of 20% of the Business
Interruption Sum Insured.

 

16.                    Obligatory
reinsurance treaties and insurances and facultative reinsurances on an excess
of loss basis or having excess of loss character, layered coverages and
primaries.

 

17.                    Guarantees of
performance or production.

 

18.                    Growing and
standing crops and timber.

 

19.                    Mould and/or
Fungus with the terms of Absolute Fungus, Mildew and Mould Exclusion
below:

 

This Agreement excludes
absolutely any loss, damage, claim, cost, expense, sum or other obligation of
any kind or description directly or indirectly caused by, contributing to, or
resulting from mould, fungus, mildew or spores. This exclusion will apply,
regardless as to whether or not

 

i.                            the
mould, fungus, mildew or spores is/are caused by, contributed to, or results
from an insured peril,

 

ii.                         the
Reinsured’s original policy(ies) provide coverage,

 

iii.                      the Reinsured’s
original obligations are contractual, extra contractual, or otherwise

 

8

 

iv.                     the
Reinsurance presentation is for settlement(s), judgement(s) or any other form
of resolution

 

20.                    Any direct or
indirect losses caused by infectious or contagious diseases (for existing
extensions, coverage will be given up to next renewal date)

 

ARTICLE 8 

 

SPECIAL ACCEPTANCE

 

To be agreed by (“Slip
Leader”) only. Any special acceptance agreed to by the Slip Leader shall be binding
on all Subscribing Reinsurers hereon. The Slip Leader shall be deemed to have
accepted a risk, if it has not responded within 7 days after receiving the
underwriting information on such risk. Any renewal of a special acceptance
agreed to for a predecessor Agreement to this Agreement, shall automatically be
covered hereunder.

 

ARTICLE 9

 

PREMIUM

 

A minimum and deposit
premium as specified in the Particular Conditions under, “Premium” shall be paid to the Reinsurers
as specified in the Particular Conditions under, “Payment Terms”.

 

As soon as practicable
after the expiry of this Agreement, the Reinsured shall furnish to the
Reinsurer a statement of their Aggregates (as defined in the Particular
Conditions) based on aggregate statements at the dates also as specified in the
Particular Conditions under, “Premium” and
the reinsurance premium shall be adjusted at a rate as specified in the
Particular Conditions under, “Premium,
Adjustable Rates” applied to the Reinsured’s final Aggregates
subject to an annual minimum and deposit premium as specified in the Particular
Conditions under, “Premium, Minimum and
Deposit Premium”.

 

Notwithstanding the
foregoing, this Agreement may be subject to various discounts, (which if any)
are stipulated in the Particular Conditions.

 

Taxes (if any) in respect
of this Agreement shall be payable by the Reinsured and/or Reinsurers as
specified in the attached Particular Conditions.

 

Other Deductions from
Premium (if any) shall be as specified in the attached Particular Conditions.

 

9

 

ARTICLE 10

 

DEFINITIONS

 

Ultimate Net Loss

 

The term Ultimate Net
Loss shall mean the actual loss(es) paid or payable by the Reinsured and 100%
of extra contractual obligations as defined herein, under its policies, such
loss(es) to include legal costs and expenses of litigation, if any, and all
other loss expenses of the Reinsured (including a pro rata share of salaries
and expenses of the Reinsured’s field employees while adjusting such claims or
losses and expenses of the Reinsured’s officials incurred in connection with
claims or losses but no salaries of the Reinsured’s officials or any normal
office expenses shall be included). Salvages and recoveries including
recoveries under all other reinsurances, whether collected or not, are to be
first deducted from such loss to arrive at the amount of liability, if any,
attaching hereunder. Nothing, however, in this Article shall be construed to
mean that losses under this Agreement are not recoverable until the Reinsured’s
Ultimate Net Loss has been ascertained.

 

In the event of a
catastrophe which results in a loss which exceeds the event limit of the
Reinsured’s Quota Share Treaties, the excess amount can contribute toward the
Ultimate Net Loss and be recoverable hereunder.

 

It is understood and
agreed that, where the Reinsured has in effect other Excess of Loss
Contract(s), underlying recoveries thereunder shall inure to its sole benefit
and shall not be taken into account when calculating the Ultimate Net Loss
hereunder.

 

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

 

Loss Occurrence

 

The words Loss Occurrence
shall mean all individual losses arising out of and directly occasioned by one
catastrophe.

 

However, the duration and
extent of any Loss Occurrence so defined shall be limited to:

 

a)                         96
consecutive hours as regards a cyclone, hurricane, typhoon, windstorm,
rainstorm, hailstorm, tornado and/or sea surge;

 

b)                        72
consecutive hours as regards earthquake, seaquake, tidal wave and/or volcanic
eruption;

 

c)                         72
consecutive hours and within the limits of any one territory as regards riots,
civil commotions and malicious damage;

 

d)                        72
consecutive hours as regards any Loss Occurrence which includes individual loss
or losses from any of the perils mentioned in (b) and (c) above;

 

10

 

e)                         168
consecutive hours for any Loss Occurrence of whatsoever nature which does not
include individual loss or losses from any of the perils mentioned in (a), (b)
and (c) above;

 

and no individual loss
from whatever insured peril, which occurs outside these periods of areas, shall
be included in that Loss Occurrence.

 

The Reinsured may choose
the date and time when any such period of consecutive hours commences and if
any catastrophe is of greater duration than the above periods, the Reinsured
may divide that catastrophe into two or more Loss Occurrences, provided no two
periods overlap and provided no period commences earlier than the date and time
of the happening of the first recorded individual loss to the Reinsured in that
catastrophe.

 

Policy

 

Policy means any bind,
policy or contract of insurance issued, accepted or held covered provisionally
or otherwise, by or on behalf of the Reinsured.

 

ARTICLE 11

 

TWO RISK AGREEMENT

 

It is agreed that the
Reinsurer shall not be liable under this Agreement unless two or more risks are
involved in the same Loss Occurrence.

 

ARTICLE 12

 

SELF-INSURED OBLIGATIONS

 

As respects all business
the subject matter hereof, where the coverage has been agreed upon between the
Reinsured and the Reinsurers, this Agreement shall cover all obligations of the
Reinsured assumed by it as a self insurer (or self insured obligations in
excess of any valid and collectible insurance available to the Reinsured) to
the same extent as if all types of insurance covered by this Agreement were
afforded under the broadest form of agreements issued by the Reinsured.

 

Any exposure of the
Reinsured in respect of the classes of business included in this Agreement for
which the Reinsured has issued a Policy naming itself and/or an affiliated
and/or subsidiary company as the insured or reinsured party, whether alone or
jointly with some other party, shall be deemed to be an insurance or
reinsurance coming within the scope of this Agreement.

 

11

 

ARTICLE 13

 

EXTRA CONTRACTUAL
OBLIGATIONS

 

This Agreement shall
protect the Reinsured, within the limits hereof, where the Ultimate Net Loss
includes any Extra Contractual Obligations. “Extra Contractual Obligations” are
defined as those liabilities not covered under any other provisions of this
Agreement 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 Reinsured to settle within the Policy limit, or by
reason of alleged or actual negligence, fraud or bad faith in rejecting an
offer of settlement or in the preparation of the defense or in the trial of any
action against its insured or reinsured or in the preparation or prosecution of
an appeal consequent upon such action.

 

The date on which any
extra contractual obligation is incurred by the Reinsured shall be deemed, in
all circumstances, to be the date of the original disaster and/or casualty.

 

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

 

ARTICLE 14

 

NET RETAINED LINES

 

Except as otherwise
provided in the Ultimate Net Loss Definition, this Agreement applies only to
that portion of any insurance or reinsurance, which the Reinsured retains net
for its own account and in calculating the amount of any loss hereunder and
also, in computing the amount(s) in excess of which this Agreement attaches,
only loss(es) in respect of that portion of any insurance or reinsurance which
the Reinsured retains net for its own account shall be included.

 

The amount of the
Reinsurers’ liability hereunder in respect of any loss(es) shall not be
increased by reason of the inability of the Reinsured to collect from any
insurer or reinsurers (whether specific or general), any amounts which may have
become due from them, regardless whether such inability arises from the
insolvency of such other Reinsurers or otherwise.

 

ARTICLE 15

 

ORIGINAL CONDITIONS

 

All reinsurance under
this Agreement shall be subject to the same rates, terms, conditions, waivers
and interpretations, and to the same modifications and alterations as the
respective Policies of the Reinsured. However, in no event shall this be
construed in any way to provide coverage outside the terms and conditions set
forth in this Agreement.

 

12

 

ARTICLE 16

 

NO THIRD PARTY RIGHTS

 

Except as may be
expressly provided for herein, nothing herein shall in any manner create any
obligations or establish any rights against the Reinsurers in favour of any
third party or any persons not parties to this Agreement.

 

ARTICLE 17

 

NOTICE OF LOSS AND LOSS
SETTLEMENTS

 

In the event of a loss
occurrence which either results in or appears to be of a serious enough nature
as probably to result in a claim against and loss involving this Agreement,
then the Reinsured shall give written notice as soon as reasonably possible and
practical to the Reinsurers through the Intermediary and the Reinsured shall
keep the Reinsurers advised of all subsequent developments in connection
therewith.

 

The Reinsurers agree to
abide by the loss settlements of the Reinsured, such settlements to be:
considered as, construed as, or evidence of satisfactory proof of loss. Amounts
falling to the share of the Reinsurers shall be immediately payable to the
Reinsured by the Reinsurers upon reasonable evidence of the amount paid or to
be paid by the Reinsured being presented to the Reinsurers by the Reinsured.
All papers in the possession of the Reinsured in connection with the adjustment
of said loss shall at all times within a reasonable period be open to the
inspection of properly authorized representatives of the Reinsurers.

 

ARTICLE 18

 

LOSS COLLECTION

 

Notwithstanding the
claims payments stipulations contained in the Ultimate Net Loss Definition of
this Agreement, the Reinsured may, having sustained a Loss Occurrence covered
hereunder, recover from the Reinsurers on the basis of anticipated settlements
to its original policyholders which exceed the Retention hereunder. Such
recoveries under this Agreement shall be effected on fifteen days’ notice from
the Reinsured. Such recoveries shall be held in an escrow account with interest
accruing to the benefit of the Reinsurers. Funds shall be withdrawn by the
Reinsured as claims become payable to original policyholders. Proof of loss
will be provided to the Reinsurers in a timely manner.

 

13

 

ARTICLE 19

 

CURRENCY

 

Where the word “dollars”
and/or the code “USD” appear in this Agreement, they shall mean United States
Dollars.

 

In the event that the
Reinsured is involved in a loss requiring payment in United States or Non-U.S.
currencies to be converted to United States currency, then the Reinsured’s
Retention and the amount recoverable hereunder shall be apportioned to the two
(2) currencies in the same proportion as the amount of Ultimate Net Loss bears
in each currency to the total amount of Ultimate Net Loss paid by the
Reinsured.

 

ARTICLE 20

 

CURRENCY REVALUATION

 

It is agreed that
underwriting to contractual limits will be done in terms of United States
(U.S.) dollars for U.S. business and U.S. dollar equivalent for all other
business on the basis of exchange rates in effect at the time if inception of new
or renewal business or at the time an addition to an existing risk takes place.
For other than U.S. business, in the event there is a reduction in parity value
of the U.S. dollar from that existing at the time the risk was written which
results in the contractual limits being exceeded, the Reinsured shall be held
covered for such excess until next renewal of the risk at which time
underwriting will then conform to the contractual U.S. dollar limits in effect
at the time, subject in all cases to the provisions regarding Retention and
Limits.

 

ARTICLE 21 

 

ACCESS TO RECORDS

 

1. The Reinsured shall
allow the Reinsurers or representatives duly authorised by them to inspect, at
a mutually agreed time and place, any records and documents which relate to
business covered under this Agreement. For such purposes, the Reinsured shall
not be subjected to unreasonable expense and disruption.

 

2. The Reinsurers or
representatives authorised by them may arrange for copies to be made, at the
Reinsurers’ expense, of any of the records or documents containing such
information that they may require.

 

3. It is agreed that the
Reinsurers’ right of inspection shall continue as long as either party remains
under any liability arising out of this Agreement.

 

14

 

4. The right of
inspection being provided shall not be construed to allow Reinsurers the right
to delay or withhold payment for any losses which fall due under this Agreement
in accordance with terms and conditions as stated herein.

 

ARTICLE 22 

 

CONFIDENTIALITY

 

The Reinsurers hereby
acknowledge that the documents, information and data provided to it by the
Reinsured, whether directly or through an authorized agent, in connection with
the placement and execution of this Agreement (“Confidential Information”) are
proprietary and confidential to the Reinsured. Confidential Information shall
not include documents, information or data that the Reinsurers can show:

 

1.                          are
publicly known or have become publicly known through no unauthorized act of the
Reinsurers;

 

2.                          have
been rightfully received from a third person without obligation of
confidentiality; or

 

3.                          were
known by the Reinsurers prior to the placement of this Agreement without an
obligation of confidentiality.

 

Absent the written
consent of the Reinsured, the Reinsurers shall not disclose any Confidential
Information to any third parties, including any affiliated companies, except:

 

1.                          when
required by retrocessionaires subject to the business ceded to this Agreement;

 

2.                          when
required by regulators performing an audit of the Reinsurers’ records and/or
financial condition; or

 

3.                          when
required by external auditors performing an audit of the Reinsurers’ records in
the normal course of business.

 

Further, the Reinsurers
agree not to use any Confidential Information for any purpose not related to
the performance of its obligations or enforcement of its rights under this
Agreement.

 

Notwithstanding the
above, in the event that the Reinsurers are required by court order, other legal
process or any regulatory authority to release or disclose any or all of the
Confidential Information, the Reinsurers agree to provide the Reinsured with
written notice of same at least 10 days prior to such release or disclosure and
to use its best efforts to assist the Reinsured in maintaining the
confidentiality provided for in this Article.

 

The provisions of this
Article shall extend to the officers, directors, shareholders and employees of
the Reinsurers and their affiliates, and shall be binding upon their successors
and assigns.

 

15

 

ARTICLE 23

 

DELAYS, ERRORS AND
OMISSIONS

 

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

 

ARTICLE 24

 

OFFSET

 

Each party hereto shall
have, and may exercise at any time and from time to time, the right to offset
any and all agreed balances due from one party to the other arising under this
Agreement.

 

ARTICLE 25 

 

INSOLVENCY

 

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

 

Where two or more
Reinsurers are involved in the same claim and a majority in interest elect to
interpose defense to such claim, the expense shall be apportioned in accordance
with the terms of the reinsurance Contract as though such expense had been
incurred by the Reinsured.

 

As to all reinsurance
made, ceded, renewed or otherwise becoming effective under this Agreement, the
reinsurance shall be payable as set forth above by the Reinsurer to the
Reinsured or to its liquidator, receiver, conservator or statutory successor,
except (1) where the Agreement specifically

 

16

 

provides another payee in
the event of the insolvency of the Reinsured; and (2) where the Reinsurer, with
the consent of the direct insured(s), have assumed such Policy obligations of
the Reinsured as direct obligations of the Reinsurer to the payees under such
policies and in substitution for the obligations of the Reinsured to such
payees. Then, and in that event only, the Reinsured is entirely released from
its obligation and the Reinsurers pay any loss directly to payees under such
Policy.

 

ARTICLE 26 

 

ARBITRATION

 

As a condition precedent to any right of action hereunder, if any dispute shall arise between the
parties to this Agreement with reference to the interpretation of this
Agreement or their rights with respect to any transaction involved, whether such
dispute arises before or after termination of this Agreement, such dispute,
upon the written request of either party, shall be submitted to three
arbitrators, one to be chosen by each party, and the third by the two so
chosen. If either party refuses or neglects to appoint an arbitrator within
thirty days after the receipt of written notification from the other party
requesting it do so do, the requesting party may appoint two arbitrators. If
the two arbitrators fail to agree in the selection of a third arbitrator within
thirty days of their appointment, each of them shall name two, of whom the
other shall decline one and the final decision shall be made by the “Appointor” specified in the Particular
Conditions. All arbitrators shall be active or retired executive officers of
insurance or reinsurance companies or Underwriters at Lloyd’s, London not under
the control of either party to this Agreement.

 

The arbitrators shall
interpret this Agreement 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. They shall make their award with a view to
affecting the general purpose of this Agreement in a reasonable manner rather
than in accordance with a literal interpretation of the language. Each party
shall submit its case to its arbitrator within thirty days of the appointment
of the third arbitrator.

 

The decision in writing
of any two arbitrators, when filed with the parties hereto, shall be final and
binding on both parties. Judgment may be entered upon the final decision of the
arbitrators in any court having jurisdiction. Each party shall bear the expense
of its own arbitrator and shall jointly and equally bear with the other party
the expense of the third arbitrator and of the arbitration. Said arbitration
shall take place in the city specified in the Particular Condition under “Seat of Arbitration”, unless some other place is mutually agreed
to in writing by the parties to this Agreement.

 

17

 

ARTICLE 27

 

CHOICE OF LAW AND
JURISDICTION

 

The Choice of Law and
Jurisdiction governing this Agreement (including Arbitration Tribunals) shall
be as specified in the attached Particular Conditions, subject to the terms of
the SERVICE OF SUIT CLAUSE in respect of Reinsurers rights in respect of
jurisdiction only.

 

ARTICLE 28

 

SERVICE OF SUIT

 

(This Article applies
only to those Reinsurers not domiciled in the Cayman Islands)

 

It is agreed that, in the
event of the failure of the Reinsurer to pay any amount claimed to be due under
this Agreement, the Reinsurer, at the request of the Reinsured, will submit to
the jurisdiction of any court of competent jurisdiction within the location
specified in the Choice of Law and Jurisdiction section of the Particular
Conditions and will comply with all requirements necessary to give such court
jurisdiction; and all matters arising hereunder shall be determined in
accordance with the law and practice of such court. 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
location specified in the Choice of Law and Jurisdiction section of the
Particular Conditions, or to seek a transfer of a case to another court as
permitted by the law of that country.

 

Service of process in
such suit may be made upon Maples & Calder, P.O. Box 309GT, Ugland House,
South Church Street, George Town, Grand Cayman, Cayman Islands (hereinafter, “agent
for service of process”) and in any suit instituted against any Reinsurers upon
this Agreement, the 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 the Reinsurer
in any such suit and/or upon the request of the Reinsured to give a written
undertaking to the Reinsured that the agent for service of process will enter a
general appearance on behalf of the Reinsurer in the event such a suit shall be
instituted.

 

Further, pursuant to any
statute of country in the location specified in the Choice of Law and
Jurisdiction section of the Particular Conditions, which make provision
therefore, the Reinsurer hereby designates Maples & Calder, 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 Reinsured or any
beneficiary hereunder arising out of this Agreement.

 

18

 

ARTICLE 29

 

INTERMEDIARY

 

Willis Re Inc. 1401
Brickell Avenue, 11th Floor - Suite 1110, Miami FL 33131, U.S.A., and Willis
Limited, Ten Trinity Square, London EC3P 3AX are recognized as the
intermediaries negotiating this Agreement through whom all premiums, losses and
communications shall be transmitted between the parties. Payments by the
Reinsured to the intermediary shall be deemed to constitute payment to the
Reinsurers. Payments by the Reinsurers to the intermediary shall be deemed to
constitute payment to the Reinsured only to the extent that such payments are
actually received by the Reinsured.

 

In connection with the
foregoing, all Administration functions shall be serviced by Willis Limited,
Ten Trinity Square, London EC3P 3AX.

 

ARTICLE 30

 

MODE OF EXECUTION

 

This Agreement may be
executed by:

 

(a)                     An original
written ink signature of paper documents,

 

(b)                    An exchange of
facsimile copies showing the original written ink signature of paper documents.

 

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

 

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

 

ARTICLE 31

 

AMENDMENTS AND
ALTERATIONS

 

It is hereby agreed that
any amendments and/or alterations to this Agreement that are mutually agreed
upon, by addendum, shall be automatically binding on the parties hereto and
shall be considered to form an integral part of this Agreement.

 

19

 

Signed for and on behalf
of

 

 

ISLAND
HERITAGE INSURANCE COMPANY LIMITED

 

 

in Grand Cayman, Cayman
Islands

 

 

this                               day
of           , 200    

 

 

	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

20

 

Attachment No. 1

 

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
insurances or reinsurances shall exclude the perils of irradiation and contamination
by Nuclear Material.

 

Except as undernoted,
Nuclear Energy Risks shall not include:

 

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

 

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

 

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

 

21

 

However, the above
exemption shall not extend to:

 

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

 

(a)                    Nuclear
Material;

 

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

 

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

 

•                             Fire,
lightning, explosion;

 

•                             Earthquake;

 

•                             Aircraft and other aerial devices or articles
dropped therefrom;

 

•                             Irradiation and radioactive contamination;

 

•                             Any
other peril insured by the relevant local Nuclear Insurance Pool and/or
Association;

 

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

 

Definitions

 

“Nuclear Material” means:

 

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

 

(ii)                     Radioactive
Products or Waste.

 

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

 

22

 

“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.

 

“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.

 

NMA 1975a

(10/3/94)

 

23

 

Attachment No. 2

 

NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE
- REINSURANCE

 

1.                          This
Agreement does not cover any loss or liability accruing to the Reassured,
directly or indirectly and whether as Insurer or Reinsurer, from any Pool of
Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear
Energy risks.

 

2.                          Without
in any way restricting the operation of paragraph (1) of this Clause, this
Agreement does not cover any loss or liability accruing to the Reassured,
directly or indirectly and whether as Insurer or Reinsurer, from any insurance
against Physical Damage (including business interruption or consequential loss
arising out of such Physical Damage) to:

 

I.                           Nuclear
reactor power plants including all auxiliary property on the site, or

 

II.                       Any other
nuclear reactor installation, including laboratories handling radioactive
materials in connection with reactor installations, and “critical facilities”
as such, or

 

III.                   Installations
for fabricating complete fuel elements or for processing substantial quantities
of “special nuclear material”, and for reprocessing, salvaging, chemically
separating, storing or disposing of “spent” nuclear fuel or waste materials, or

 

IV.                   Installations
other than those listed in paragraph (2) III above using substantial quantities
of radioactive isotopes or other products of nuclear fission.

 

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

 

(a)                    where
Reassured does not have knowledge of such nuclear reactor power plant or
nuclear installation, or

 

(b)                   where said
insurance contains a provision excluding coverage for damage to property caused
by or resulting from radioactive contamination, however caused. However on and
after 1st January 1960 this sub-paragraph (b) shall only apply provided the
said radioactive contamination exclusion provision has been approved by the
Governmental Authority having jurisdiction thereof.

 

4.                          Without
in any way restricting the operations of paragraphs (1), (2) and (3) hereof,
this Agreement does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as
Insurer or Reinsurer, when such radioactive contamination is a named hazard
specifically insured against.

 

24

 

5.                          It is
understood and agreed that this Clause shall not extend to risks using radioactive
isotopes in any form where the nuclear exposure is not considered by the
Reassured to be the primary hazard.

 

6.                          The term
“special nuclear material” shall have the meaning given it in the Atomic Energy
Act of 1954 or by any law amendatory thereof.

 

7.                          Reassured
to be sole judge of what constitutes:

 

(a)                    substantial
quantities, and

 

(b)                   the extent of
installation, plant or site.

 

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

 

(a)                    all policies
issued by the Reassured on or before 31st December 1957 shall be free from the
application of the other provisions of this Clause until expiry date or 31st
December 1960 whichever first occurs whereupon all the provisions of this
Clause shall apply.

 

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

 

12/12/57

N.M.A.1119

 

25

 

Attachment No. 3

 

NUCLEAR INCIDENT
EXCLUSION CLAUSE - PHYSICAL DAMAGE AND LIABILITY (BOILER AND MACHINERY
POLICIES) - REINSURANCE

 

(1)                     This
Agreement 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 Agreement all original
Boiler and Machinery Insurance or Reinsurance contracts of the Reassured shall
be deemed to include the following provisions of this paragraph;

 

This Policy does not
apply to “loss”, whether it be direct or indirect, proximate or remote

 

(a)                    from an
Accident caused directly or indirectly by nuclear reaction, nuclear radiation
or radioactive contamination, all whether controlled or uncontrolled; or

 

(b)                   from nuclear
reaction, nuclear radiation or radioactive contamination, all whether
controlled or uncontrolled, caused directly or indirectly by, contributed to or
aggravated by an Accident.

 

(3)                     However, it
is agreed that loss arising out of the use of Radioactive isotopes in any form
is not hereby excluded from reinsurance protection.

 

(4)                     Without in
any way restricting the operation of paragraph (1) hereof, it is understood and
agreed that

 

(a)                    all policies
issued by the Reassured effective on or before 30th April, 1958, shall be free
from the application of the other provisions of this Clause until expiry date
or 30th April, 1961, whichever first occurs, whereupon all the provisions of
this Clause shall apply,

 

(b)                   with respect to
any risk located in Canada policies issued by the Reassured effective on or
before 30th June, 1958, shall be free from the application of the other
provisions of this Clause until expiry date or 30th June, 1961, whichever first
occurs, whereupon all the provisions of this Clause shall apply.

 

23/6/58

N.M.A. 1166

 

26

 

SUBSCRIPTION AGREEMENT

 

SUBSCRIPTION
AGREEMENT BETWEEN THE BROKER AND THE INSURERS / REINSURERS WHICH WILL NOT FORM
PART OF THIS AGREEMENT FOR CONTRACTUAL DOCUMENTATION PURPOSES

 

 

	
  SLIP
  LEADER :

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BROKERAGE:

  	
   

  	
  10.00% (Nil on Reinstatement)

  
	
   

  	
   

  	
   

  
	
  BASIS
  OF AGREEMENT TO CONTRACT CHANGES:

  	
   

  	
  All Reinsurers to agree.

  
	
   

  	
   

  	
   

  
	
  DOCUMENT
  PRODUCTION:

  	
   

  	
  Full contractual wording is incorporated.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Reinsurers’ acceptance of a share in this Agreement,
  whether by direct signature of the attached signing page(s) (whether attached
  hereto or otherwise), or by correspondence, shall constitute their formal
  signature of this Agreement and no further documentation shall be issued.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All Reinsurers are requested to complete the “Reinsurer
  Contact” section in the Signing Page to enable accurate and prompt
  communication.

  
	
   

  	
   

  	
   

  
	
  SIGNING

  PROVISIONS:

  	
   

  	
  

  Disproportionate Lines:

  Reinsurers agree to allow Willis Limited, without
  further authorisation, to sign written lines disproportionately. Signing down
  estimations given at time of placement are for indication only and are not
  warranted.

  
	
   

  	
   

  	
   

  
	
  CLAIMS
  ADMINISTRATION:

  	
   

  	
  All Reinsurers to receive and agree claims via
  email, facsimile or letter.

  
	
   

  	
   

  	
   

  
	
  EXPERT(S)
  FEES COLLECTION:

  	
   

  	
  

  It is hereby noted and agreed for the avoidance of any doubt Willis Re Inc. and/or Willis Limited
  shall have no responsibility whatsoever for the collection of any expert fees
  and expenses.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Such expert fees and expenses shall be collected
  100% by the party indicated (if any) within the attached documentation only
  if specified.

  
	
   

  	
   

  	
   

  
	
  CURRENCY:

  	
   

  	
  All settlements (premiums and claims) to be
  converted to or paid in United States Dollars.

  

 

1

Willis

 

2006 UMBRELLA PROPERTY CATASTROPHE

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ527

 

 

INFORMATION

 

 

ISLAND HERITAGE INSURANCE COMPANY

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

Willis
Re Inc., 1401 Brickell Avenue, Suite 1110, Miami FL 33131, U.S.A, Willis Re
Inc., 4th Floor, Wall Street Plaza, New York, New York 10005, U.S.A
and Willis Limited, Ten Trinity Square, London EC3P 3AX.

 

	
  Reference

  	
  :

  	
  DLXJ527

  
	
  Reinsured

  	
  :

  	
  Island Heritage Insurance Company Limited

  
	
  Type

  	
  :

  	
  Umbrella Property Catastrophe Excess of Loss
  Reinsurance Agreement.

  

 

INFORMATION

 

	
  REINSURED:

  	
   

  	
  ISLAND HERITAGE INSURANCE COMPANY
  LIMITED,

  Cayman Islands

  
	
   

  	
   

  	
   

  
	
  TYPE:

  	
   

  	
  Umbrella Property Catastrophe Excess of Loss
  Reinsurance Agreement

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
  April 2006

  
	
   

  	
   

  	
   

  
	
  CURRENCY:

  	
   

  	
  US Dollars

  

 

ESTIMATED AVERAGE
AGGREGATES FOR ADJUSTMENT

 

	
  Residential

  	
   

  	
  USD

  	
  1,363,675,000

  	
   

  
	
  Commercial

  	
   

  	
  USD

  	
  551,450,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  USD

  	
  1,915,125,000

  	
   

  

 

LOSS INFORMATION

 

All Loss Figures are Net
retained on the basis of intended 2006 QS retentions

 

2004 Hurricane Ivan

Hurricane Ivan, which hit Grand Cayman in 2004, caused widespread damage from
wind and sea surge. Since then, various measures have been taken by Island
Heritage to reduce the impact of any future windstorm. These include increased
original deductibles and avoidance, where possible, of risks that are
considered unduly exposed.

 

	
  Residential

  	
  USD

  	
  64,311,411

  	
   

  
	
  Commercial

  	
  USD

  	
  20,374,894

  	
   

  
	
  Commercial
  Condo

  	
  USD

  	
  25,538,120

  	
   

  
	
  Total
  Commercial

  	
  USD

  	
  45,913,014

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Overall
  Total

  	
  USD

  	
  110,224,425

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2004 Hurricane Jeanne

  	
   

  	
   

  	
   

  
	
  Residential
  Bahamas

  	
  USD

  	
  1,838,518

  	
   

  
	
  Commercial
  Bahamas

  	
  USD

  	
  60,312

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
  USD

  	
  1,898,830

  	
   

  

 

1

 

	
  2004
  Hurricane Francis

  	
   

  	
   

  	
   

  	
   

  
	
  Residential
  Bahamas

  	
  USD

  	
  2,187,176

  	
   

  	
   

  
	
  Residential
  Turks

  	
  USD

  	
  75,082

  	
   

  	
   

  
	
  Total
  Residential

  	
  USD

  	
  2,262,257

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commercial
  Bahamas

  	
  USD

  	
  81,010

  	
   

  	
   

  
	
  Commercial Turks

  	
  USD

  	
  75,082

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2005
  Hurricane Wilma

  	
   

  	
   

  	
   

  	
   

  
	
  Residential
  Bahamas

  	
  USD

  	
  1,052,672

  	
   

  	
   

  
	
  Residential
  Cayman

  	
  USD

  	
  548,027

  	
   

  	
   

  	
  NB. Cayman Loss in dispute by IH due to non
  disclosure of material facts

  
	
  Total
  Residential

  	
  USD

  	
  1,600,698

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commercial
  Bahamas

  	
  USD

  	
  5,094

  	
   

  	
   

  
	
  Commercial
  Cayman

  	
  USD

  	
  1,625

  	
   

  	
   

  
	
  Total Commercial

  	
  USD

  	
  6,969

  	
   

  	
   

  
	
  Total

  	
  USD

  	
  1,607,667

  	
   

  	
   

  

 

SCHEDULE OF INTENDED
QUOTA SHARE LIMITS 2006/7 AS AT 20 MARCH 2006:

 

	
   

  	
   

  	
  CESSION LIMIT

  	
   

  	
  EVENT LIMIT

  	
   

  	
  MAX CEDED

  	
   

  
	
  Cayman Islands (Residential)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jamaica (Combined)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  560,000,000

  	
   

  	
  30.00

  	
  %

  	
  25.00

  	
  %

  
	
  Turks & Calcos (Combined)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bahamas (Combined)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  537,000,000

  	
   

  	
  15.00

  	
  %

  	
  25.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cayman Islands (Commercial)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  460,000,000

  	
   

  	
  30.00

  	
  %

  	
  35.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USVI (Residential)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  665,000,000

  	
   

  	
  25.00

  	
  %

  	
  10.00

  	
  %

  
	
  BVI (Combined)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  45,000,000

  	
   

  	
  25.00

  	
  %

  	
  70.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USVI (Commercial)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  250,000,000

  	
   

  	
  25.00

  	
  %

  	
  50.00

  	
  %

  

 

 

	
   

  	
   

  	
  CESSION LIMIT

  	
   

  	
  EVENT LIMIT

  	
   

  	
  MAX CEDED

  	
   

  
	
  Barbados (Combined)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  621.000.000

  	
   

  	
  20.00

  	
  %

  	
  75.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Zone A – All Islands Combined

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  171.500.000

  	
   

  	
  20.00

  	
  %

  	
  75.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Zone B – All Islands Combined

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  161.900.000

  	
   

  	
  20.00

  	
  %

  	
  75.00

  	
  %

  

 

 

THIS
INFORMATION SECTION LISTS INFORMATION MADE AVAILABLE TO REINSURERS FOR
ASSESSMENT OF THE RISK. IT DOES NOT INCLUDE CONTRACTUAL TERMS AND CONDITIONS OF
COVER.

 

 

2

 

FISCAL AND REGULATORY

 

	
  TAXES
  PAYABLE BY REINSURER(S):

  	
   

  	
  As specified in the Particular Conditions.

  
	
   

  	
   

  	
   

  
	
  US
  CLASSIFICATION:

  	
   

  	
  Non-regulated.

  
	
   

  	
   

  	
   

  
	
  ALLOCATION
  OF PREMIUM TO CODING:

  	
   

  	
  Unless otherwise indicated by Slip Leader no
  accounting splits required.

  
	
   

  	
   

  	
   

  
	
  FSA
  CLIENT CLASSIFICATION:

  	
   

  	
  Reinsurance.

  

 

1

 

Willis

 

2006 UMBRELLA PROPERTY CATASTROPHE 

EXCESS OF LOSS REINSURANCE AGREEMENT

 

 

PLACEMENT SLIP/WORDING

 

Reference No.: DLXJ527

 

 

SIGNING EXHIBIT(S)

 

 

ISLAND HERITAGE INSURANCE COMPANY 

LIMITED, GRAND CAYMAN, CAYMAN ISLANDS

 

 

SIGNING EXHIBIT

 

	
  Period:

  	
   

  	
  Losses occurring during the period 12 months from
  12:01 a.m. 1 April 2006 to 12:01 a.m. 31 March 2007 both days inclusive,
  local standard time at the place where the loss occurs.

  
	
   

  	
   

  	
   

  
	
  Reinsurer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FLAGSTONE

  REINSURANCE LIMITED

  
	
   

  	
   

  	
   

  
	
  Agreement
  Carrier if 

  different from above:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Written
  line(s):

  	
   

  	
   15

  	
  %

  	
  Ref.:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Final
  signed line(s):

  	
   

  	
   

  	
  %

  	
   

  

 

Signed in Bermuda
this 3rd day of June 2006

 

	
  /s/ 

  	
   

  
	
  Signing Exhibit

  
	
   

  

 

1

 

INFORMATION REQUIRED TO
IMPROVE CONTRACT SERVICING

 

REINSURER:

 

REINSURERS’ CONTACTS

 

 

	
  UNDERWRITER:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
  CLAIMS:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
  ACCOUNTS:

  	
   

  	
  Name(s):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Office Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Email address(es):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax No.:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]