Document:

EX-10.32

 Exhibit 10.32 

ENDORSEMENT NO. 1 
 to the

 CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 issued to 

AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, control 

or management of Amerisafe, Inc. 

(the “Company”) 
 IT IS HEREBY
AGREED, effective January 1, 2014, that the Company listing in the Contract's preamble shall be amended to read as follows: 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which arc now or hereafter come under the ownership, control 
 or management of Amerisafe, Inc. 

(the “Company”) 
 IT IS FURTHER
AGREED that the GOVERNING LAW ARTICLE shall be amended to read as follows: 
 This Contract shall be governed as to performance, administration
and interpretation by the laws of the State of Nebraska, exclusive of that state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply.

 IT IS FURTHER AGREED that paragraph E. of the ARBITRATION ARTICLE shall be amended to read as follows: 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Omaha, Nebraska but the venue may be changed when deemed by the panel to be in the best interest of
the arbitration 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1
	  		  	1-17-14

	 	
proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Nebraska. The decision of any 2 arbitrators when rendered in writing shall be
final and binding. The panel is empowered to grant interim relief as it may deem appropriate. 

 The provisions of this Contract shall remain
otherwise unchanged. 
 IN WITNESS WHEREOF, the Company by its duly authorized representative has executed this Endorsement as of the date specified
below: 
 Signed this 27th day of January, 2014. 

 

			
	 AMERICAN INTERSTATE INSURANCE COMPANY

SILVER OAK CASUALTY, INC.
 AMERICAN INTERSTATE INSURANCE
COMPANY OF TEXAS

		
	By	 	/s/ C. Allen Bradley, Jr
	Printed Name	 	C. Allen Bradley, Jr
	Title	 	Chairman & Chief Executive Officer

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1
	  		  	1-17-14

 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

 TABLE OF CONTENTS 

 

							
	 ARTICLE
	 	 	  	PAGE	 
	I	 	BUSINESS COVERED	  	 	1	  
			
	II	 	TERM	  	 	2	  
			
	III	 	SPECIAL TERMINATION	  	 	2	  
			
	IV	 	DEFINITIONS	  	 	4	  
			
		 	 Act of Terrorism
	  	 	4	  
			
		 	 Declaratory Judgment Expense
	  	 	4	  
			
		 	 Extra Contractual Obligations/Loss in Excess of Policy Limits
	  	 	4	  
			
		 	 Loss Adjustment Expense
	  	 	5	  
			
		 	 Loss Occurrence
	  	 	5	  
			
		 	 Net Earned Premium
	  	 	6	  
			
		 	 Policy
	  	 	6	  
			
	V	 	TERRITORY	  	 	6	  
			
	VI	 	EXCLUSIONS	  	 	7	  
			
	VII	 	TERRORISM ACT RECOVERIES	  	 	9	  
			
	VIII	 	COVERAGE	  	 	9	  
			
	IX	 	REINSTATEMENT	  	 	10	  
			
	X	 	SPECIAL ACCEPTANCE	  	 	10	  
			
	XI	 	ACCOUNTING BASIS	  	 	11	  
			
	XII	 	REINSURANCE PREMIUM	  	 	11	  
			
	XIII	 	NOTICE OF LOSS AND LOSS SETTLEMENTS	  	 	11	  
			
	XIV	 	LIABILITY OF REINSURERS	  	 	12	  
			
	XV	 	LATE PAYMENTS	  	 	12	  
			
	XVI	 	ANNUITIES AT THE COMPANY’S OPTION	  	 	13	  
			
	XVII	 	AGENCY AGREEMENT	  	 	14	  
			
	XVIII	 	SUBROGATION	  	 	14	  
			
	XIX	 	ERRORS AND OMISSIONS	  	 	14	  
			
	XX	 	OFFSET	  	 	14	  
			
	XXI	 	CURRENCY	  	 	15	  
			
	XXII	 	TAXES	  	 	15	  
			
	XXIII	 	FEDERAL EXCISE TAX	  	 	15	  
			
	XXIV	 	RESERVES AND FUNDING	  	 	15	  
			
	XXV	 	NET RETAINED LINES	  	 	17	  
			
	XXVI	 	THIRD PARTY RIGHTS	  	 	18	  

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

							
	XXVII	 	SEVERABILITY	  	 	18	  
			
	XXVIII	 	GOVERNING LAW	  	 	18	  
			
	XXIX	 	INSPECTION OF RECORDS	  	 	18	  
			
	XXX	 	CONFIDENTIALITY	  	 	19	  
			
	XXXI	 	SUNSET AND COMMUTATION	  	 	20	  
			
	XXXII	 	INSOLVENCY	  	 	21	  
			
	XXXIII	 	ARBITRATION	  	 	22	  
			
	XXXIV	 	EXPEDITED ARBITRATION	  	 	24	  
			
	XXXV	 	SERVICE OF SUIT	  	 	24	  
			
	XXXVI	 	ENTIRE AGREEMENT	  	 	25	  
			
	XXXVII	 	MODE OF EXECUTION	  	 	26	  
			
	XXXVIII	 	INTERMEDIARY	  	 	26	  
			
		 	Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.	  			

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

 CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 between 

AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 

and 
 THE SUBSCRIBING
REINSURER(S) EXECUTING THE 
 INTERESTS AND LIABILITIES AGREEMENT(S) 

ATTACHED HERETO 
 (the
“Reinsurer”) 
 ARTICLE I 

BUSINESS COVERED 
  

	A.	By this Contract the Reinsurer agrees to reinsure the excess liability of the Company under its Policies that are in force at the effective time and date hereof or issued or renewed at or after that time and date, and
classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer Continental Shelf Lands Act and any
other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

	B.	The Reinsurer further agrees to reinsure the excess liability of the Company under Policies issued by Cooperative Mutual Insurance Company that are in force at the effective time and date hereof or issued or renewed at
or after that time and date, and classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer
Continental Shelf Lands Act and any other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	1	  	12-31-13

 ARTICLE II 

TERM 
  

	A.	This Contract will apply to all losses occurring during the period January 1, 2014, 12:01 a.m. Standard Time (as set forth in the Company’s policies), to January 1, 2015, 12:01 a.m. Standard Time.

  

	B.	Upon the expiration or termination of this Contract, the entire liability of the Reinsurer for losses occurring subsequent to the date of expiration shall cease concurrently with the date of expiration of this Contract.

  

	C.	Notwithstanding the above, upon expiration or termination of this Contract, the Company shall have the option of requiring that the Reinsurer shall remain liable for losses occurring under Policies in force on the
expiration or termination date of this Contract until the next renewal, termination, or natural expiration date of such Policies or until 12 months (plus “odd time,” not to exceed 18 months in all) following the date of expiration
(whichever occurs first). 

  

	D.	If this Contract expires while a Loss Occurrence covered hereunder is in progress, the Reinsurer’s liability hereunder shall, subject to the other terms and conditions of this Contract, be determined as if the
entire Loss Occurrence had occurred prior to the expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of this Contract. 

ARTICLE III 
 SPECIAL
TERMINATION 
  

	A.	The Company may terminate a subscribing reinsurer’s share in this Contract by giving written notice to the subscribing reinsurer upon the happening of any one of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the subscribing reinsurer to cease writing business, or 

  

	 	2.	The subscribing reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a
receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

 

	 	3.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the subscribing reinsurer’s policyholders’ surplus, as reported in the financial
statements of the subscribing reinsurer, has been reduced by 20.0% or more, or 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	2	  	12-31-13

	 	4.	The subscribing reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	5.	The subscribing reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, or 

 

	 	6.	The subscribing reinsurer receives an A. M. Best rating of lower than A-, or an S&P financial strength rating of lower than A-, or 

 

	 	7.	The subscribing reinsurer has ceased writing new and renewal reinsurance for the lines of business covered hereunder. 

  

	B.	In the event of such termination, the liability of the subscribing reinsurer shall be terminated, at the Company’s option, either in accordance with the cutoff provisions of paragraph B of the TERM ARTICLE or in
accordance with the runoff provisions of paragraph C of the TERM ARTICLE, and such termination shall be effective as of the date the subscribing reinsurer receives written notice of termination pursuant to paragraph A above. 

 

	C.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provisions of this Article, the Company shall have the option to commute the excess liabilities of the subscribing
reinsurer. If this commutation option is exercised, the provisions of the paragraphs B through G of the SUNSET AND COMMUTATION ARTICLE shall apply. 

  

	D.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company shall have the option to require the subscribing reinsurer to fund its share of
ceded unearned premium, outstanding loss and Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense incurred but not reported to the Company (IBNR as determined by the Company) and any other balances or financial
obligations. Within 30 days of the Company’s written request to fund, the subscribing reinsurer shall provide to the Company a clean, unconditional, evergreen, irrevocable letter of credit or a trust agreement which establishes a trust account
for the benefit of the Company. The method of funding must be acceptable to the Company, shall be established with a financial institution suitable to the Company, shall comply with any applicable state or federal laws or regulations involving the
Company’s ability to recognize these agreements as assets or offsets to liabilities in such jurisdictions and shall be at the sole expense of the subscribing reinsurer. The Company and the subscribing reinsurer may mutually agree on alternative
methods of funding or the use of a combination of methods. This option is available to the Company at any time there remains any outstanding liabilities of the subscribing reinsurer. Notwithstanding the foregoing, the Company shall not require
funding in accordance with this subparagraph in the event the subscribing reinsurer has otherwise fully funded its obligations under this Contract in a manner acceptable to the Company. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	3	  	12-31-13

 ARTICLE IV 

DEFINITIONS 
  

	A.	Act of Terrorism 

 “Act of Terrorism” as used herein shall follow the definition
provided under the Terrorism Risk Insurance Act of 2002 (TRIA) and as amended by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), together and including any
extensions or replacement thereof, the “Terrorism Act.” 
 In the event the Terrorism Act is not extended or renewed, Act of
Terrorism shall mean a violent act or an act that is dangerous to human life; property; or infrastructure that 1) has resulted in damage within the United States, or outside of the United States in the case of an air carrier or vessel, 2) was
committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. The Company shall determine the
application of the above definition. 
 An “Act of Terrorism” may include an act involving the use and/or dispersal of nuclear,
chemical, biological or radiological agents. 
  

	B.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” as used herein shall
mean all expenses incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract.
Declaratory Judgment Expense shall be deemed to have been incurred on the date of the original loss (if any) giving rise to the declaratory judgment action. 
  

	C.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 This Contract shall protect the Company for any “Extra
Contractual Obligations” which as used herein shall mean any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of an action against it by its
insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

An Extra Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the
Policy. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	4	  	12-31-13

	 	2.	Loss in Excess of Policy Limits 

 This Contract shall protect the Company for any “Loss in
Excess of Policy Limits” which as used herein shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of an action against it by its insured, its
insured’s assignee or a third party claimant. Such loss in excess of the limit shall have been incurred because of failure by the Company 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 in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	3.	This paragraph C shall not apply where an Extra Contractual Obligation and/or Loss in Excess of Policy Limits has been incurred due to an adjudicated finding of fraud committed by a member of the Board of Directors or a
corporate officer of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any other corporation or partnership. 

 

	D.	Loss Adjustment Expense 

 “Loss Adjustment Expense” as used herein shall mean all
costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal
bonds, and including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto, including
Declaratory Judgment Expense; and 4) a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been temporarily diverted from their normal and customary duties and assigned to the field
adjustment of losses covered by this Contract. Loss Adjustment Expense does not include unallocated loss adjustment expense. Unallocated loss adjustment expense includes, but is not limited to, salaries and expenses of employees, other than
(4) above, and office and other overhead expenses. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used in this Contract shall mean any one
disaster or casualty or accident or loss or series of disasters or casualties or accidents or losses arising out of or caused by one event. The Company shall be the sole judge of what constitutes one event as outlined herein and in the original
Policy. 
 As respects losses resulting from Occupational or Industrial Disease or Cumulative Trauma, each employee shall be considered a
separate Loss Occurrence subject to the following: 
 Losses resulting from Occupational or Industrial Disease or Cumulative Trauma suffered
by employees of an insured for which the employer is liable, as a result of a sudden and accidental event not exceeding 72 hours in duration, shall be considered one Loss Occurrence and may be combined with losses classified as other than
Occupational or Industrial Disease or Cumulative Trauma which arise out of the same event and the combination of such losses shall be considered as one Loss Occurrence within the meaning hereof. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	5	  	12-31-13

 A loss with respect to each employee affected by an Occupational Disease or Cumulative Trauma
shall be deemed to have been sustained by the Company on the date of the beginning of the disability for which compensation is payable. 

The terms “Occupational or Industrial Disease” and “Cumulative Trauma” as used in this Contract shall be as defined by
applicable statutes or regulations. 
  

	F.	Net Earned Premium 

 “Net Earned Premium” as used herein is defined as gross earned
premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract and less dividends paid or accrued. 

 

	G.	Policy 

 “Policy” or “Policies” as used herein shall mean the Company’s
or Cooperative Mutual Insurance Company’s binders, policies and contracts providing insurance or reinsurance on the classes of business covered under this Contract. 
  

	H.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the actual loss, including any
pre-judgment interest which is included as part of the award or judgment, “Second Injury Fund” assessments that can be allocated to specific claims, Loss Adjustment Expense, 90% of Loss in Excess of Policy Limits, and 90% of Extra
Contractual Obligations, paid or to be paid by the Company on its net retained liability after making deductions for all recoveries, subrogations and all claims on inuring reinsurance, whether collectible or not; provided, however, that in the event
of the insolvency of the Company, payment by the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be construed to mean that losses under this Contract are not recoverable until the
Company’s Ultimate Net Loss has been ascertained. 
 Notwithstanding the definition of “Ultimate Net Loss” herein, the
provisions of paragraph H of the COVERAGE ARTICLE as respects the Minnesota Workers’ Compensation Reinsurance Association shall apply. 

ARTICLE V 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	6	  	12-31-13

 ARTICLE VI 

EXCLUSIONS 
  

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

  

	 	1.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except: 

  

	 	a.	Agency reinsurance where the policies involved are to be reunderwritten in accordance with the underwriting standards of the Company and reissued as Company policies at the next anniversary or expiration date; and

  

	 	b.	Intercompany reinsurance between any of the reinsured companies under this Contract. 

  

	 	c.	Reinsurance assumed through Policies issued by Cooperative Mutual Insurance Company. 

  

	 	2.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause – Liability – Reinsurance – U.S.A.” (NMA 1590 21/9/67) attached hereto. 

 

	 	3.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate or Association, including Assigned Risk Plans or similar plans; however, this exclusion shall not apply to liability under a Policy specifically
designated to the Company from an Assigned Risk Plan or similar plan. 

  

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

  

	 	5.	Loss caused directly or indirectly by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incidental to any of the foregoing. This exclusion shall not apply to any
Policy that contains a standard war exclusion. 

  

	 	6.	Workers’ Compensation where the principal exposure, as defined by the governing class code, is: 

  

	 	a.	Operation of aircraft, but only if the annual estimated policy premium is $250,000 or more; 

  

	 	b.	Operation of Railroads, subways or street railways; 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	7	  	12-31-13

	 	c.	Manufacturing, assembly, packing or processing of fireworks, fuses, nitroglycerine, magnesium, pyroxylin, ammunition or explosives. This exclusion does not apply to the assembly, packing or processing of explosives when
the estimated annual premium is under $250,000 and does not apply to the commercial use of explosives; 

  

	 	d.	Underground mining. 

  

	 	7.	Professional sports teams. 

  

	B.	Notwithstanding the foregoing, insureds regularly engaged in operations not excluded under paragraph A above, but whose operations may include one or more perils excluded therein, shall not be excluded from coverage
afforded by this Contract, provided said operations are incidental to the main operations of the insured. Notwithstanding the foregoing, coverage extended under this paragraph for incidental operations of an insured shall not apply to exposures
excluded under subparagraphs 1 through 5 of paragraph A above. The Company shall be the judge of what constitutes an incidental part of the insured’s operation. 

 

	C.	Except for subparagraphs 1 through 5 of paragraph A above, if the Company is inadvertently bound or is unknowingly exposed (due to error or automatic provisions of policy coverage) on a risk otherwise excluded in
paragraph A above, such exclusion shall be waived. The duration of said waiver will not extend beyond the time that notice of such coverage has been received by a responsible underwriting authority of the Company and for a period not
exceeding 30 days thereafter, or such longer period required to conform with any notice of cancellation provisions prescribed by regulatory authorities, such period not to exceed 12 months plus odd time (not exceeding 18 months). 

 

	D.	If the Company is required to accept an assigned risk which conflicts with one or more of the exclusions set forth in subparagraph 5 of paragraph A, reinsurance shall apply, but only for the difference between the
Company’s retention and the limit required by the applicable state statute, and in no event shall the Reinsurer’s liability exceed the limit set forth in the Coverage Article. 

 

	E.	Notwithstanding the foregoing, any reinsurance falling within the scope of one or more of the exclusions set forth above that is specially accepted by the Reinsurer from the Company shall be covered under this Contract
and be subject to the terms hereof. 

  

	F.	Except for subparagraphs 1 through 5 of paragraph A above, should a court of competent jurisdiction invalidate any exclusion or expand coverage of the original Policy of the Company, any amount of Loss for which the
Company would not be liable, except for such invalidation or expansion of coverage, shall not be subject to any of the exclusions, conditions and limitations hereinafter set forth under this Contract. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	8	  	12-31-13

 ARTICLE VII 

TERRORISM ACT RECOVERIES 
  

	A.	Any financial assistance the Company receives under the Terrorism Act, shall apply as follows: 

  

	 	1.	Except as provided in subparagraph 2 below, any such financial assistance shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract.

  

	 	2.	If losses occurring hereunder result in recoveries made by the Company both under this Contract and under the Terrorism Act, and such recoveries, together with any other reinsurance recoverables made by the Company
applicable to said losses, exceed the total amount of the Company’s insured losses, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the losses to which the Terrorism Act assistance applies. These
recoveries shall be returned in proportion to each Reinsurer’s paid share of the loss. 

  

	B.	Nothing herein shall be construed to mean that the losses under this Contract are not recoverable until the Company has received financial assistance under the Terrorism Act. 

ARTICLE VIII 
 COVERAGE

  

	A.	The Reinsurer shall be liable for the Ultimate Net Loss in excess of $10,000,000 as a result of any one Loss Occurrence. The Reinsurer’s liability in respect of any one Loss Occurrence shall not exceed $60,000,000.

  

	B.	The Reinsurer’s liability in respect of Ultimate Net Loss amounts recoverable hereunder for an Act of Terrorism (as defined in the definition of “Act of Terrorism”) occurring during the term of this
Contract shall not exceed $60,000,000. This paragraph is not subject the REINSTATEMENT ARTICLE. 

  

	C.	The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed $120,000,000. 

  

	D.	As respects the statutory portion of any Workers’ Compensation Policy, the Company’s Ultimate Net Loss subject to this Contract shall not exceed $10,000,000 as respects any one life, each Loss Occurrence

  

	E.	The Company shall be permitted to purchase (or maintain) other reinsurance which inures to the benefit of this Contract. 

  

	F.	The Company shall be permitted to carry underlying reinsurance, recoveries under which shall inure solely to the benefit of the Company and be entirely disregarded in applying all of the provisions of this Contract.

  

	G.	As respects Employers Liability, the maximum net subject Policy limit (except statutory where required by law) as respects any one Policy shall be $2,000,000 or the Company shall be deemed to have purchased inuring
excess facultative reinsurance for subject Policy limits in excess of $2,000,000. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	9	  	12-31-13

	H.	The Company shall be permitted to carry excess of loss reinsurance applying to Workers’ Compensation risks in the State of Minnesota, actual recoveries under which shall inure to the benefit of this Contract. Such
coverage shall be provided through the Minnesota Workers’ Compensation Reinsurance Association. Notwithstanding the treatment of inuring coverage in the definition of Ultimate Net Loss, the liability of the Reinsurer for Minnesota Workers’
Compensation risks is not released. 

 ARTICLE IX 

REINSTATEMENT 
  

	A.	Should all or any part of the Reinsurer’s limit of liability be exhausted as a result of a Loss Occurrence, the sum so exhausted shall be reinstated from the date the Loss Occurrence commenced. 

 

	B.	For each amount so reinstated, the Company agrees to pay an additional premium at the time of the Reinsurer’s payment of the loss calculated in accordance with the following formula: 

 

	 	1.	The percentage of the Reinsurer’s limit of liability exhausted for the Loss Occurrence; times 

  

	 	2.	The Net Earned Premium for the term of this Contract (exclusive of reinstatement premium). 

 The
dollar amount resulting from the multiplication of subparagraphs 1 and 2 above shall equal the reinstatement premium. If at the time of the Reinsurer’s payment of a loss hereon, the reinsurance premium as calculated under this Contract is
unknown, the calculation of the reinstatement premium shall be based upon the deposit premium subject to adjustment when the reinsurance premium is finally established. 
  

	C.	Nevertheless, the Reinsurer’s liability hereunder shall not exceed $60,000,000 in respect of any one Loss Occurrence, and shall be further limited to $120,000,000 in respect of all losses occurring during the term
of this Contract. 

 ARTICLE X 

SPECIAL ACCEPTANCE 
 From time to time the Company
may request a special acceptance applicable to this Contract. For purposes of this Contract, in the event each subscribing reinsurer whose share in the interests and liabilities of the Reinsurer is 20% or greater agree to a special acceptance, such
agreement shall be binding on all subscribing reinsurers. If such agreement is not achieved, such special acceptance shall be made to this Contract only with respect to the interests and liabilities of each subscribing reinsurer who agrees to the
special acceptance. Should denial for special acceptance not be received within 10 working days of said request, the special acceptance shall be deemed automatically agreed. In the event a reinsurer becomes a party to this Contract subsequent to one
or more special acceptances hereunder, the new reinsurer shall automatically accept such special acceptance(s) as being covered hereunder. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	10	  	12-31-13

 ARTICLE XI 

ACCOUNTING BASIS  
 All premiums and losses under
this Contract shall be reported on an “accident year” accounting basis. Unless specified otherwise herein, all premiums shall be credited to the period during which they earn, and all losses shall be charged to the period during which they
occur. 
 ARTICLE XII  

REINSURANCE PREMIUM  
  

	A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.5453% times its Net Earned Premium for the term of this Contract subject to a Minimum Premium of $1,440,000. 

 

	B.	The Company shall pay the Reinsurer a Deposit Premium of $1,800,000 payable in quarterly installments on January 1, April 1, July 1 and October 1. 

 

	C.	Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and if the premium so computed
is greater than the previously paid Deposit Premium, the balance shall be remitted by the Company with its report. 

  

	D.	If this Contract expires on a runoff basis, the Company shall pay to the Reinsurer a premium for the runoff period equal to the expiring rate times its Net Earned Premium for the runoff period. The runoff premium shall
be calculated and paid within 90 days after the end of each three-month period during the runoff period. There shall be no minimum premium requirement for the runoff period. 

ARTICLE XIII  
 NOTICE OF
LOSS AND LOSS SETTLEMENTS  
  

	A.	As soon as practicable, the Company shall advise the Reinsurer of all bodily injury claims or losses involving any of the following: 

 

	 	1.	Any claim or loss reserved at 50.0% or more of the Company’s retention under this Contract. 

  

	 	2.	Any claim involving any of the following injuries where the Company’s incurred loss is greater than or equal to $1,000,000: 

  

	 	a.	Fatality. 

  

	 	b.	Spinal cord injuries (e.g., quadriplegia, paraplegia). 

  

	 	c.	Brain damage (e.g., seizure, coma or physical/mental impairment). 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	11	  	12-31-13

	 	d.	Severe burn injuries resulting in disfigurement or scarring. 

  

	 	e.	Total or partial blindness in one or both eyes. 

  

	 	f.	Major organ (e.g., heart, lungs). 

  

	 	g.	Amputation of a limb or multiple fractures. 

  

	B.	The Company shall also advise the Reinsurer promptly of all losses which, in the opinion of the Company, may result in a claim hereunder and of all subsequent developments thereto which, in the opinion of the Company,
may materially affect the position of the Reinsurer. 

  

	C.	When so requested in writing, the Company shall afford the Reinsurer or its representatives an opportunity to be associated with the Company, at the expense of the Reinsurer, in the defense of any claim, suit or
proceeding involving this reinsurance, and the Company and the Reinsurer shall cooperate in every respect in the defense of such claim, suit or proceeding. 

  

	D.	All loss settlements made by the Company that are within the terms and conditions of this Contract (including but not limited to ex gratia payments) shall be binding upon the Reinsurer. Upon receipt of satisfactory
proof of loss, the Reinsurer agrees to promptly pay or allow, as the case may be, its share of each such settlement in accordance with this Contract. 

ARTICLE XIV  
 LIABILITY OF
REINSURERS  
 All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same
rates, terms, conditions, interpretations and waivers and to the same modifications, alterations, and cancellations, as the respective policies to which such reinsurances relate, the true intent of the parties to this Contract being that the
Reinsurer shall follow the fortunes of the Company. 
 ARTICLE XV  

LATE PAYMENTS  
  

	A.	In the event any premium, loss or other payment due either party is not received by the Intermediary hereunder by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

 

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	12	  	12-31-13

	 	2.	1/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due; times 

 

	 	3.	The amount past due, including accrued interest. 

 It is agreed that interest shall accumulate
until payment of the original amount due plus interest penalties have been received by the Intermediary. 
  

	B.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	1.	As respects the payment of deposits and premiums due the Reinsurer, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	2.	Any claim or loss payment due the Company hereunder shall be deemed due 10 business days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received
within the10 days, interest will accrue on the payment or amount overdue in accordance with the interest penalty calculation above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 

 

	 	3.	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs 1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract.

  

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
debtor party prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest will be calculated and due as outlined above. 

 

	D.	Interest penalties arising out of the application of this Article that are $100 or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any
12-month period. 

 ARTICLE XVI  

ANNUITIES AT THE COMPANY’S OPTION  
  

	A.	Whenever the Company is required, or elects, to purchase an annuity or to negotiate a structured settlement, either in satisfaction of a judgment or in an out-of-court settlement or otherwise, the cost of the annuity or
the structured settlement, as the case may be, shall be deemed part of the Company’s Ultimate Net Loss. 

  

	B.	The terms “annuity” or “structured settlement” shall be understood to mean any insurance policy, lump sum payment, agreement or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it as a result of an occurrence. 

  

					
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 Casualty Catastrophe XOL
Contract
	  	13	  	12-31-13

	C.	In the event the Company purchases an annuity which inures in whole or in part to the benefit of the Reinsurer, it is understood that the liability of the Reinsurer is not released thereby. In the event the Company is
required to provide benefits not provided by the annuity for whatever reason, the Reinsurer shall pay its share of any loss. 

ARTICLE XVII  
 AGENCY
AGREEMENT  
 If more than one reinsured company is named as a party to this Contract, the first named company will be deemed the agent of the other
reinsured companies for purposes of sending or receiving notices required by the terms and conditions of this Contract and for purposes of remitting or receiving any monies due any party. 

ARTICLE XVIII  
 SUBROGATION
 
 The Reinsurer shall be credited with subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less Loss Adjustment
Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. Subrogation recoveries thereon shall always be used to reimburse the excess carriers in the reverse order
of their priority according to their participation before being used in any way to reimburse the Company for its primary loss. The Company, at its sole option and discretion, may enforce its rights to subrogation relating to any loss, a part of
which loss was sustained by the Reinsurer, and may prosecute all claims arising out of such rights. 
 ARTICLE XIX  

ERRORS AND OMISSIONS  
 Any inadvertent delay,
omission or error shall not be held to relieve either party hereto from any liability which would attach to it hereunder if such delay, omission or error had not been made, provided such omission or error is rectified upon discovery. Nothing
contained in this Article shall be held to override the specific loss reporting deadline of the SUNSET AND COMMUTATION ARTICLE. 

ARTICLE XX  
 OFFSET 

 The Company and the Reinsurer may offset any balance or amount due from one party to the other under this Contract or any other contract heretofore or
hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. The party asserting the right of offset may exercise such right any time whether the balances due are on account of premiums or
losses or otherwise. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	14	  	12-31-13

 ARTICLE XXI  

CURRENCY  
  

	A.	Whenever the word “Dollars” or the “$” sign appears in this Contract, they shall be construed to mean United States Dollars and all transactions under this Contract shall be in United States Dollars.

  

	B.	Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction is entered on the books of the Company. 

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

ARTICLE XXIII  
 FEDERAL
EXCISE TAX  
 (Applicable to those subscribing reinsurers who are domiciled outside the United States of America, excepting subscribing reinsurers
exempt from Federal Excise Tax.) 
  

	A.	The subscribing reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under Section 4371 of the Internal Revenue Code) to
the extent such premium is subject to the Federal Excise Tax. 

  

	B.	In the event of any return of premium becoming due hereunder the subscribing reinsurer will deduct the applicable percentage from the return premium payable hereon and the Company or its agent should take steps to
recover the tax from the United States Government. 

 ARTICLE XXIV  

RESERVES AND FUNDING  
  

	A.	A subscribing reinsurer will provide funding under the terms of this Article only if the Company will be denied statutory credit for reinsurance ceded to that subscribing reinsurer pursuant to the credit for reinsurance
law or regulations in any applicable jurisdiction. In the event any of the provisions of this Article conflict with or otherwise fail to satisfy the requirements of the appropriate credit for reinsurance statute or regulation, this Article will be
deemed amended to conform to the appropriate statute or regulation; the intent of this Article being that the Company will be permitted to realize full credit for the reinsurance ceded to the Reinsurer under this Contract. 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	15	  	12-31-13

	B.	As regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for losses
covered hereunder which it shall be required by law to set up, it will forward to the subscribing reinsurer a statement showing the proportion of such reserves which is applicable to the subscribing reinsurer. The subscribing reinsurer hereby agrees
to fund such reserves in respect of known outstanding losses that have been reported to the subscribing reinsurer and allocated Loss Adjustment Expense relating thereto, losses and allocated Loss Adjustment Expense paid by the Company but not
recovered from the subscribing reinsurer, plus reserves for losses incurred but not reported, as shown in the statement prepared by the Company (hereinafter referred to as “subscribing reinsurer’s obligations”) by funds withheld, cash
advances or a Letter of Credit. The subscribing reinsurer shall have the option of determining the method of funding provided it is acceptable to the Company and to the insurance regulatory authorities having jurisdiction over the Company’s
reserves. 

  

	C.	When funding by a Letter of Credit, the subscribing reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional Letter of Credit issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the subscribing reinsurer’s proportion of said reserves. Such Letter of Credit shall be issued for a period
of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (60 days where required by insurance regulatory authorities) prior to any expiration date the
issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. 

 

	D.	The subscribing reinsurer and Company agree that the Letters of Credit provided by the subscribing reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision
of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes, unless otherwise
provided for in a separate Trust Agreement: 

  

	 	1.	To reimburse the Company for the subscribing reinsurer’s obligations, the payment of which is due under the terms of this Contract and which has not been otherwise paid; 

 

	 	2.	To make refund of any sum which is in excess of the actual amount required to pay the subscribing reinsurer’s obligations under this Contract; 

 

	 	3.	To fund an account with the Company for the subscribing reinsurer’s obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon
not in excess of the prime rate shall accrue to the benefit of the subscribing reinsurer; 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	16	  	12-31-13

	 	4.	To pay the subscribing reinsurer’s share of any other amounts the Company claims are due under this Contract. 

In the event the amount drawn by the Company on any Letter of Credit is in excess of the actual amount required for subparagraph 1 or 3, or in
the case of subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the subscribing reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part
of the Company or the subscribing reinsurer. 
  

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

  

	F.	At annual intervals, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the subscribing reinsurer’s obligations, for the sole purpose of
amending the Letter of Credit, in the following manner: 

  

	 	1.	If the statement shows that the subscribing reinsurer’s obligations exceed the balance of credit as of the statement date, the subscribing reinsurer shall, within 30 days after receipt of notice of such excess,
secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the subscribing reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from
the subscribing reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit. 

 

	G.	Should the subscribing reinsurer be in breach of its obligations under this Article, notwithstanding anything to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any
court having competent jurisdiction of the parties hereto. 

 ARTICLE XXV  

NET RETAINED LINES  
  

	A.	This Contract applies only to that portion of any Policy which the Company retains net for its own account (prior to deduction of any underlying reinsurance specifically permitted in this Contract), and in calculating
the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Contract attaches, only loss or losses in respect of that portion of any Policy which the Company retains net for its own account shall be included.

  

	B.	The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not be increased by reason of the inability of the Company to collect from any other reinsurer(s), whether specific or
general, any amounts which may have become due from such reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s) or otherwise. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	17	  	12-31-13

 ARTICLE XXVI  

THIRD PARTY RIGHTS  
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract except as expressly provided otherwise in the INSOLVENCY ARTICLE. 

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

ARTICLE XXVIII  
 GOVERNING
LAW  
 This Contract shall be governed as to performance, administration and interpretation by the laws of the State of Louisiana, exclusive of that
state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply. 

ARTICLE XXIX  
 INSPECTION OF
RECORDS  
  

	A.	The Reinsurer or its designated representative(s) approved by the Company, upon providing reasonable advance notice to the Company, shall have access at the offices of the Company or at a location to be mutually agreed,
at a time to be mutually agreed, to inspect the Company’s underwriting, accounting, or claim files pertaining to the subject matter of this Contract, other than proprietary information or privileged communications. The Company shall determine
the manner in which files shall be accessed by the Reinsurer. The Reinsurer may, at its own expense, reasonably request copies of such files and agrees to pay the Company’s reasonable costs incurred in procuring such copies. 

 

	B.	If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer shall have access to such records only upon payment of all such overdue amounts. 

  

					
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Contract
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	C.	If the Reinsurer makes any inspection of the Company’s books and records involving specific claims under this Contract and, as a result of the inspection the claim is contested or disputed, the Reinsurer shall
provide the Company, at the Company’s request, a summary of any reports, other than proprietary information or privileged communications, completed by the Reinsurer’s personnel or by third parties on behalf of the Reinsurer outlining the
reasons for contesting or disputing the subject claim. 

 ARTICLE XXX  

CONFIDENTIALITY  
  

	A.	The Reinsurer hereby acknowledges that the documents, information, and data provided to the Reinsurer by the Company, whether directly or through an authorized agent, in connection with the placement and execution of
this Contract (“Confidential Information”) are proprietary and confidential to the Company. 

  

	B.	Absent the written consent of the Company, the Reinsurer will not disclose any Confidential Information to any third parties, except when: 

 

	 	1.	The disclosure is to professional advisors or to authorized agents of the Reinsurer performing underwriting, claim handling, pricing, placement and/or evaluation services for the Reinsurer; or 

 

	 	2.	The Confidential Information is publicly known or has become publicly known through no unauthorized act of the Reinsurer; or 

  

	 	3.	Required by retrocessionaires subject to the business ceded to this Contract; or 

  

	 	4.	Required by state regulators performing an audit of the Reinsurer’s records and/or financial condition; or 

  

	 	5.	Required by auditors performing an audit of the Reinsurer’s records in the normal course of business. 

  

	C.	Further, the Reinsurer agrees not to use any Confidential Information for any purpose not permitted by this Contract or not related to the performance of their obligations or enforcement of their rights under this
Contract. 

  

	D.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process, or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Company by written or electronic mail, reasonable advance notice of same prior to such release or disclosure and to use their reasonable best efforts to assist the Company in maintaining the confidentiality provided for in this
Article. 

  

	E.	The provisions of this Article will extend to the officers, directors, shareholders, and employees of the Reinsurer and its affiliates, who have received Confidential Information in accordance with this Contract and
will be binding upon their successors and assigns. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	19	  	12-31-13

 ARTICLE XXXI  

SUNSET AND COMMUTATION  
  

	A.	Ten years after the expiration of this Contract, the Company shall advise the Reinsurer of any Loss Occurrences attaching to this Contract which have not been finally settled and which may result in a claim by the
Company under this Contract. No liability shall attach hereunder for any claim or claims not reported to the Reinsurer within this ten year period. If a loss arising out of a Loss Occurrence is reported during this period, all losses arising out of
the same Loss Occurrence shall be deemed reported under this paragraph regardless of when notification of loss is provided. 

  

	B.	If both parties agree to commute the unsettled losses subject to the Contract, then the Reinsurer’s liability for all such unsettled losses shall then be commuted. 

 

	C.	It is understood that commutation of all such losses shall be made using tabular reserving methods. For each loss, the nominal ultimate value of the Company’s Ultimate Net Loss shall be established by projecting
out future medical and indemnity payments and loss expenses by year based on appropriate trends and escalations applied to annual cost estimates. The Contract limit and retention (where applicable) shall then be applied to the nominal ultimate value
of the Company’s Ultimate Net Loss to determine the nominal ultimate Contract loss. Mortality factors and discount factors shall then be applied by year to the nominal ultimate Contract loss. The discounted, mortality adjusted projected annual
loss payments shall be summed to determine the present value (“commutation price”) of the ultimate Contract loss. The medical escalation, discount and mortality factors are described in paragraph C. 

 

	D.	The following factors shall be utilized in establishing the commutation price: 

  

	 	1.	Medical Escalation Rate 

 The medical escalation rate shall be a reasonable
estimate of future medical inflation. 
  

	 	2.	Discount Rate 

 The discount rate shall be the annualized 10-year US Treasury
Bill rate at the Valuation Date. 
  

	 	3.	Mortality Tables 

 Mortality factors shall be based on the most recent mortality table at the
Valuation Date from the “Vital Statistics of the United States” as published by the US Department of Health and Human Services, Center for Disease Control and Prevention. Factors for extension beyond age 85 shall also be included. 

 

	 	4.	Impairment 

 Impairment factors shall be based on the individual claim characteristics. 

  

					
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 Casualty Catastrophe XOL
Contract
	  	20	  	12-31-13

 Any other method of calculating the commutation price of one or more losses subject to this
Contract may be used as mutually agreed between the Company and the Reinsurer. 
  

	E.	If the Company and the Reinsurer cannot agree on a commutation value, the effort can be abandoned. Alternatively, the Company and the Reinsurer may mutually agree to settle any difference using a panel of three
actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of
a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of Workers’
Compensation claims and shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. 

 

	F.	The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for
the complete mutual release of all liabilities in respect of such reserves. 

  

	G.	The Reinsurer’s commutation payment shall be due within 7 days following the date the Company and the Reinsurer agree to the commutation price. Such payment by the Reinsurer shall constitute both a complete release
of the Reinsurer of its liability for all losses, known or unknown, under this Contract, and a complete release of the Company of its liabilities and obligations, known or unknown, under this Contract. 

 

	H.	This Article shall survive the expiration of this Contract. 

 ARTICLE XXXII  

INSOLVENCY  
  

	A.	In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator or statutory successor, with reasonable provision for verification, on
the basis of the liability of the Company without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of the Company has failed to pay all or a portion of any claim. It is
agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the Policy 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 its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of a proportionate share of the benefit which may accrue to the
Company solely as a result of the defense undertaken by the Reinsurer. 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	21	  	12-31-13

	B.	Where two or more subscribing 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 this Contract
as though such expense had been incurred by the Company. 

  

	C.	It is further agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or its liquidator, receiver, conservator, or
statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except 1) where this Contract specifically provides another payee of such reinsurance in the event of the insolvency of the Company or 2) where the
Reinsurer with the consent of the direct insured or insureds has assumed such Policy obligations of the Company as direct obligations of the Reinsurer to the payee under such Policies and in substitution for the obligations of the Company to such
payees. 

  

	D.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

ARTICLE XXXIII  
 ARBITRATION
 
  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of 3 arbitrators. Notice requesting arbitration will be in writing and sent by certified mail, return receipt requested, or such reputable
courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	The Company shall have the option to either litigate or arbitrate where: 

  

	 	1.	The Reinsurer makes any allegation of misrepresentation, non-disclosure, concealment, fraud or bad faith; or 

  

	 	2.	The Reinsurer experiences any of the circumstances set forth in subparagraphs 1 through 7 of paragraph A of the SPECIAL TERMINATION ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days notice by certified mail or
reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

					
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	D.	The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. Should the two arbitrators fail to choose the third arbitrator within 30 days of the
appointment of the second arbitrator, the parties shall appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS) Umpire Selection Procedure. All arbitrators shall be disinterested active or
former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

  

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in DeRidder, Louisiana but the venue may be changed when deemed by the panel to be in the best interest
of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Louisiana. The decision of any 2 arbitrators when rendered in writing shall be final and binding. The panel is
empowered to grant interim relief as it may deem appropriate. 

  

	F.	In the event an arbitrator is unable to serve due to death, disability or other incapacity, a replacement arbitrator shall be chosen in accordance with the procedures set forth in this Article for the original selection
of the arbitrator appointed and the newly constituted panel shall take all necessary and/or reasonable measures to continue the arbitration proceedings without additional delay. 

 

	G.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. Judgment upon the award may
be entered in any court having jurisdiction thereof. 

  

	H.	If more than one subscribing reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such subscribing reinsurers shall
constitute and act as one party for purposes of this Article and communications shall be made by the Company to each of the subscribing reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of such
subscribing reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the subscribing reinsurers under the terms of this Contract from several to joint. 

 

	I.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel.
The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. However, the panel may not award any Exemplary or Punitive Damages and
Enhanced Compensatory Damages. 

  

					
	 American Interstate Insurance Company

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	  	23	  	12-31-13

 ARTICLE XXXIV  

EXPEDITED ARBITRATION  
  

	A.	Notwithstanding the provisions of the ARBITRATION ARTICLE, in the event an amount in dispute hereunder is $500,000 or less, the Company may elect to require an expedited arbitration process with the use of a single
arbitrator. The arbitrator will be chosen in accordance with the procedures for selecting an arbitrator in force on the date the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS).

  

	B.	Each party’s case will be submitted to the arbitrator within 100 days of the date of determination of the arbitrator. Discovery will be limited to exchanging only those documents directly relating to the issue in
dispute, subject to a limit of two discovery depositions from each party, unless otherwise authorized by the arbitrator upon a showing of good cause. 

  

	C.	Within 120 days of the date of determination of the arbitrator, the hearing will be completed and a written award will be issued by the arbitrator. The arbitrator will have all the powers conferred on the arbitration
panel as provided in the ARBITRATION ARTICLE, and said Article will apply to all matters not specifically addressed above. 

ARTICLE XXXV  
 SERVICE OF
SUIT  
 (This Article is applicable if the subscribing reinsurer is not domiciled in the United States of America and/or is not authorized in any
State, Territory or District of the United States where authorization is required by insurance regulatory authorities. This Article is not intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the subscribing reinsurer to pay any amount claimed to be due hereunder, the subscribing reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of competent
jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the subscribing reinsurer’s rights to commence an action in any court of competent jurisdiction in the United States,
to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The subscribing reinsurer, once the appropriate court is
selected, whether such court is the one originally chosen by the Company and accepted by subscribing reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said
court jurisdiction and, in any suit instituted against it upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. 

  

					
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	B.	Service of process in such suit may be made upon the agent for the service of process (“agent”) named below, depending on the jurisdiction where the Company chooses to bring suit: 

 

	 	1.	If the suit is brought in the State of California, the law firm of Mendes and Mount, 601 South Figueroa Street, Suite 4676, Los Angeles, California 90017 shall be authorized and directed to accept service of process on
behalf of the subscribing reinsurer in any such suit; 

  

	 	2.	If the suit is brought in the State of New York, the law firm of Mendes and Mount, 750 Seventh Avenue, New York, New York 10019 shall be authorized and directed to accept service of process on behalf of the subscribing
reinsurer in any such suit; 

  

	 	3.	If the suit is brought in any state other than California or New York, either of the agents described in subparagraphs 1 or 2 above shall be authorized and directed to accept service of process on behalf of the
subscribing reinsurer in any such suit; or 

  

	 	4.	If the subscribing reinsurer has designated an agent in the subscribing reinsurer’s Interests and Liabilities Agreement attached hereto, then that agent shall be authorized and directed to accept service of process
on behalf of the subscribing reinsurer in any suit. However, if an agent is designated in the subscribing reinsurer’s Interests and Liabilities Agreement and the agent is not located in California as respects a suit brought in California or New
York as respects a suit brought in New York, in keeping with the laws of the states of California and New York which require that service be made on an agent located in the respective state if a suit is brought in that state, the applicable office
of Mendes and Mount stipulated in subparagraphs 1 and 2 above must be used for service of suit unless the provisions of paragraph C of this Article apply. 

  

	C.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the subscribing reinsurer hereby designates the Superintendent, Commissioner or Director of
Insurance, or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceedings instituted by or on behalf
of the Company or any beneficiary hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 

ARTICLE XXXVI  
 ENTIRE
AGREEMENT  
 This Contract shall constitute the entire agreement between the parties with respect to the business being reinsured hereunder. There
are no understandings between the parties other than as expressed in this Contract. Any change or modification to this Contract shall be null and void unless made by amendment to this Contract and signed by both parties. This Article shall not be
construed as limiting in any way the admissibility in the context of an arbitration or any other legal proceeding, evidence regarding the formation, interpretation, purpose or intent of this Contract. 

  

					
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Contract
	  	25	  	12-31-13

 ARTICLE XXXVII 

MODE OF EXECUTION 
 This Contract may be executed
either by an original written ink signature of paper documents, by an exchange of facsimile copies showing the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as
to satisfy the parties at the time of execution that the version of the document agreed to by each party shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of any one or a combination of
these methods of execution shall constitute a legally binding and valid signing of this Contract. This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

ARTICLE XXXVIII 

INTERMEDIARY 
 Willis Re Inc., 15305 North Dallas
Parkway, Suite 1100, Colonnade III, Addison, Texas 75001 is hereby recognized as the intermediary negotiating this Contract and through whom all communications relating thereto shall be transmitted to the Company or the Reinsurer. However, all
communications concerning accounts, claim information, funds and inquiries related thereto shall be transmitted to the Company or the Reinsurer through Willis Re Inc., 5420 Millstream Road, Suite 200, McLeansville, North Carolina 27301. Payments by
the Company to Willis Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by the Reinsurer to Willis Re Inc. shall be deemed to constitute payment to the Company only to the extent that such payments are actually received by
the Company. 
 IN WITNESS WHEREOF, the Company by its duly authorized representative has executed this Contract as of the date specified below: 

Signed this 15th day of January, 2014. 

 

			
	 AMERICAN INTERSTATE INSURANCE COMPANY

AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS

SILVER OAK CASUALTY, INC.

		
	By	 	/s/ C. Allen Bradley, Jr
	Print Name	 	C. Allen Bradley, Jr
	Title	 	Chairman & CEO

  

  

					
	 American Interstate Insurance Company

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	  	26	  	12-31-13

 NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY—REINSURANCE—U.S.A 

(1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or reinsurers
formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association. 
 (2) Without
in any way restricting the operation of paragraph (1) of this Clause it is understood and agreed that for all purposes of this reinsurance all the original policies of the Reassured (new, renewal and replacement) of the classes specified in
Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following provision (specified as the Limited Exclusion Provision): 

Limited Exclusion Provision.* 

(1) Except for those classes of policies specified in Clause II of paragraph (2) and without in any way restricting the operation of
paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and replacement) affording the following coverages: 

 

	 	I.	It is agreed that the policy does not apply under any liability coverage, 

to (injury, sickness, disease, death or destruction, 

(bodily injury or property damage 

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

 

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

  

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

 

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

  

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

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

Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad)
Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability)
shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision (specified as the Broad Exclusion Provision): 

Broad Exclusion Provision.* 

It is agreed that the policy does not apply: 
  

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

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

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

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to (immediate medical or surgical relief, 

(first aid, 
 to expenses
incurred with respect 
 to (bodily injury, sickness, disease or death 

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

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

 
 (a) the nuclear material (1) is at any nuclear facility owned by, or
operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom; 
 (b) the nuclear material is contained in
spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or 

  

					
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	  	1	  	12-31-13

 (c)     the (injury, sickness, disease, death or destruction 

(bodily injury or property damages 

arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction,
maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to 

(injury to or destruction of property at such nuclear facility 

(property damage to such nuclear facility and any property thereat. 
  

	IV.	As used in this endorsement: 

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

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

(c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of
such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, 

(d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which
any of the foregoing is located, all operations conducted on such site and all premises used for such operations; “nuclear reactor” means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction
or to contain a critical mass of fissionable material; 
 (With respect to injury to or destruction of property, the word “injury
“ or “destruction” (“property damage” includes all forms of radioactive contamination of property (includes all forms of radioactive contamination of property. 

 

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

  

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

  

	 	(ii)	statutory liability insurance required under Chapter 90, General Laws of Massachusetts, until 90 days following approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof.

 (4) Without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that paragraphs
(2) and (3) above are not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be deemed to include the Nuclear Energy Liability Exclusion Provisions adopted by the
Canadian Underwriters’ Association of the Independent Insurance Conference of Canada. 
 *NOTE: The words printed in italics in the
Limited Exclusion Provision and in the Broad Exclusion Provision shall apply only in relation to original liability policies which include a Limited Exclusion Provision or a Broad Exclusion Provision containing those words. 

21/9/67 
 N.M.A. 1590 

BRMA 35A 

  

					
	 American Interstate Insurance Company

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	  	2	  	12-31-13

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 ALTERRA REINSURANCE USA INC 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 5.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 26th day of January, 2014. 

 

			
	ALTERRA REINSURANCE USA INC
		
	By	 	/s/ William Pentony
	Print Name	 	William Pentony
	Title	 	SVP

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	12-31-13

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 ALTERRA REINSURANCE USA
INC 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF,
the Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 30th day of January, 2014. 
  

			
	ALTERRA REINSURANCE USA INC
		
	By	 	/s/ William Pentony
	Print Name	 	William Pentony
	Title	 	SVP

  

					
	 American Interstate Insurance Company

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	  		  	1-17-14

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 ARCH REINSURANCE COMPANY 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 7.50% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below:

 Signed this 20th day of January, 2014. 

 

			
	ARCH REINSURANCE COMPANY
		
	By	 	/s/ Peder F. Moller
	Print Name	 	Peder F. Moller
	Title	 	Director, Casualty Clash

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	12-31-13

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 ARCH REINSURANCE COMPANY

 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF,
the Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 29th day of January, 2014. 
 ARCH REINSURANCE COMPANY 

 

			
		
	By	 	/s/ Peder F. Moller
	Printed Name	 	Peder F. Moller
	Title	 	Director, Casualty Clash

  

					
	 American Interstate Insurance Company

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	  		  	1-17-14

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 BRIT SYNDICATE 2987 AT LLOYD’S 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 10th day of January, 2014.

			
	 BGS SERVICES (BERMUDA) LIMITED

for and on behalf of
 BRIT SYNDICATE 2987 AT
LLOYD’S

		
	By	 	/s/ Joseph Bonanno
	Print Name	 	Joseph Bonanno
	Title	 	SVP

 

 

 

 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 BRIT SYNDICATE 2987 AT
LLOYD’S 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF, the
Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 30th day of January, 2014.

			
	 BGS SERVICES (BERMUDA) LIMITED

for and on behalf of
 BRIT SYNDICATE 2987 AT
LLOYD’S

		
	By	 	/s/ Joseph Bonanno
	Printed Name	 	Joseph Bonanno
	Title	 	SVP

 

 

 

 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
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 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 CATLIN UNDERWRITING AGENCIES LIMITED (#2003) 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 9th day of January, 2014. 

 

			
	 CATLIN UNDERWRITING, INC.

on behalf of CATLIN UNDERWRITING AGENCIES LIMITED (#2003)

		
	By	 	/s/ Michael Orlich
	Print Name	 	Michael Orlich
	Title	 	Vice President

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	12-31-13

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 CATLIN UNDERWRITING
AGENCIES LIMITED (#2003) 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF,
the Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 29th day of January, 2014. 
 CATLIN UNDERWRITING, INC. 

on behalf of CATLIN UNDERWRITING AGENCIES LIMITED (#2003) 

			
		
	By	 	/s/ Michael Orlich
	Printed Name Michael Orlich
	Title Vice President

  

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 MONTPELIER UNDERWRITING AGENCIES LIMITED 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 5.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 9th day of January, 2014. 

IOA REINSURANCE UNDERWRITING MANAGERS 
 on behalf of
MONTPELIER UNDERWRITING AGENCIES LIMITED 
  

							
	By	 	/s/ William Reichert	 		 	

	 Print Name William Reichert

Title Senior Vice President
	 		 
		 		 
		 		 
		 		 
		 		 
		 		 
		 		 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 MONTPELIER UNDERWRITING
AGENCIES LIMITED 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF, the
Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 12th day of February, 2014. 
 IOA REINSURANCE UNDERWRITING MANAGERS 

on behalf of MONTPELIER UNDERWRITING AGENCIES LIMITED 

							
				
	By	 	/s/ William Reichert	 		 	

	Printed Name William Reichert	 		 
	Title SVP	 		 
		 		 
		 		 
		 		 
		 		 
		 		 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to -
I&L
	  		  	

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 MUNICH REINSURANCE AMERICA, INC. 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company, 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 14th day of January, 2014. 

MUNICH REINSURANCE AMERICA, INC. 

			
		
	By	 	/s/ Michael Schummer/Gerard P. Skalka
	Print Name Michael Schummer/Gerard P. Skalka
	Title Senior Vice President

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	12-31-13

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 MUNICH REINSURANCE
AMERICA, INC. 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF, the
Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 30th day of January, 2014. 
 MUNICH REINSURANCE AMERICA, INC. 

							
				
	By	 	 /s/ Michelle R Glass
	 		 	 /s/ Janet Dezube

	Printed Name Michelle R Glass	 		 	Janet Dezube
	Title Senior Vice President	 		 	SVP

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 TOKIO MILLENNIUM RE AG 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DcRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 5.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 14th day of January, 2014. 

TOKIO MILLENNIUM AG, BERMUDA 

							
				
	By	  	/s/ Mirek Wieczorek	  		  	 

  

	Print Name Mirek Wieczorek	  		  
	Title Senior Vice President	  		  
		  		  
		  		  
		  		  

  

					
	 Market Ref #: 510032/01/14
 American Interstate
Insurance Company
 93948003-14 (Eff: 1-1-14)
 Casualty
Catastrophe XOL - I&L
	  		  	12-31-13

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 TOKIO MILLENNIUM RE AG,
BERMUDA BRANCH 
 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF, the
Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed this 4th day of February, 2014. 
 TOKIO MILLENNIUM RE AG, BERMUDA BRANCH 

			
		
	By	 	/s/ Mirek Wieczorek
	Printed Name Mirek Wieczorek
	Title Senior Vice President

  

					
	 TMR Reference: 510032/01/13
 American Interstate
Insurance Company
 93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL
Endt 1 to I&L
	  		  	1-17-14

			
	 Willis Limited
 51 Lime Street London
EC3M 7DQ United Kingdom
 Telephone: +44 (0)2031246000 Fax: +44 (0)2031248223

Website: www.willis.com
	  	

  

			
	Order hereon:	  	47.50%
		
	 EFFECTED WITH:
	  	
		
	 27.50%

 
	  	Underwriters at Lloyd’s, as per schedule below
	 10.00%
	  	 Markel at Lloyd’s — Zurich Branch

Branch of Alterra UK Underwriting Services Limited, on behalf of Lloyd’s Syndicate 3000

	 10.00%
	  	HCC International Insurance Company PLC, London, England
	  
	  	
	 47.50%
	  	
	  
	  	

 LLOYD’S UNDERWRITERS 
  

							
	 Signed Line
	 	 Syndicate Number
	  	 Pseudonym
	  	NAIC Code
	 10.00%
	 	 4472
	  	LIB	  	AA-1126006
	 7.50%
	 	 1955
	  	BAR	  	AA-1120084
	 10.00%
	 	 1084
	  	CSL	  	AA-1127084
	  
	 		  		  	
	 27.50%
	 		  		  	
	  
	 		  		  	

 Willis Limited. A Willis Group Company. A Lloyds broken. Willis Limited is authorised and regulated by the Financial Conduct
Authority. Registered office 51 Lime Street, London EC3M 7DQ Registered number 181116 England and Wales. Registered VAT number GB 334 1289 70 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

			
	 Willis Limited
 51 Lime Street London
EC3M 7DQ United Kingdom
 Telephone: +44 (0)2031246000 Fax: +44 (0)2031248223

Website: www.willis.com
	  	

 For and on behalf of 

Willis Limited 
  

			
	

	  	

	Authorised Signatory	  	Authorised Signatory

 Willis Limited. A Willis Group Company. A Lloyds broker. Willis Limited is authorised and regulated by the Financial Conduct
Authority. Registered office 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales. Registered VAT number GB 334 1289 70 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

			
	 Willis Limited
 WLM 801
	  	

 CONTRACT ENDORSEMENT 
  

			
	UNIQUE MARKET REFERENCE:	  	B080110074N14 (93948003-14)
		
	ENDORSEMENT REFERENCE:	  	001

  

			
	REINSURED	  	American Interstate Insurance Company
		
	TYPE	  	Casualty Catastrophe Excess of Loss Reinsurance Contract
		
	PERIOD	  	1st January 2014 to 1st January 2015

 CONTRACT CHANGES 

It is hereby noted and agreed that this Contract is amended as per the attached Endorsement 1. 

All other terms and conditions remain unaltered. 

AGREEMENT 
  

 

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 UNDERWRITERS AT
LLOYD’S, LONDON 
 AS SET FORTH IN THE SIGNING PAGE(S) ATTACHED HERETO 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF,
the Subscribing Reinsurer by its duly authorized representative has executed this Endorsement per the attached signing page(s). 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

 ENDORSEMENT NO. 1 

to the 
 INTERESTS AND
LIABILITIES AGREEMENT 
 (the “Agreement”) 

of 
 HOUSTON CASUALTY COMPANY

 (the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS REINSURANCE CONTRACT 
 (the “Contract”) 

issued to 
 AMERICAN INTERSTATE
INSURANCE COMPANY 
 DeRidder, Louisiana 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 SILVER OAK CASUALTY,
INC. 
 DeRidder, Louisiana 

and 
 any other insurance
companies which are now or hereafter come under the ownership, 
 control or management of Amerisafe, Inc. 

(the “Company”) 
 The Subscribing
Reinsurer hereby accepts Endorsement No. 1 to the Contract as part of the Contract, effective January 1, 2014. 
 IN WITNESS WHEREOF, the
Subscribing Reinsurer by its duly authorized representative has executed this Endorsement as of the date specified below: 
 Signed
this                                 day of
                                , 20     . 

 

			
	HOUSTON CASUALTY COMPANY
		
	By	 	 
	Printed Name	 	 
	Title	 	 

 

 

 

 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1 to
I&L
	  		  	1-17-14

 ENDORSEMENT NO. 1 

to the 
 CASUALTY CATASTROPHE
EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, control 

or management of Amerisafe, Inc. 

(the “Company”) 
 IT IS HEREBY
AGREED, effective January 1, 2014, that the Company listing in the Contract’s preamble shall be amended to read as follows: 

AMERICAN INTERSTATE INSURANCE COMPANY 

SILVER OAK CASUALTY, INC. 

both of Omaha, Nebraska 

and 
 AMERICAN INTERSTATE
INSURANCE COMPANY OF TEXAS 
 Austin, Texas 

and 
 any other insurance
companies which are now or hereafter come under the ownership, control 
 or management of Amerisafe, Inc.  

(the “Company”) 
 IT IS FURTHER
AGREED that the GOVERNING LAW ARTICLE shall be amended to read as follows: 
 This Contract shall be governed as to performance, administration
and interpretation by the laws of the State of Nebraska, exclusive of that state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply.

 IT IS FURTHER AGREED that paragraph E. of the ARBITRATION ARTICLE shall be amended to read as follows: 

 

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in Omaha, Nebraska but the venue may be changed when deemed by the panel to be in the best interest of
the arbitration 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1
	  		  	1-17-14

 proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law
of the State of Nebraska. The decision of any 2 arbitrators when rendered in writing shall be final and binding. The panel is empowered to grant interim relief as it may deem appropriate. 

The provisions of this Contract shall remain otherwise unchanged. 

IN WITNESS WHEREOF, the Company by its duly authorized representative has executed this Endorsement as of the date specified below: 

Signed this 27th day of January, 2014. 

 

			
	 AMERICAN INTERSTATE INSURANCE COMPANY

SILVER OAK CASUALTY, INC.
 AMERICAN INTERSTATE INSURANCE
COMPANY OF TEXAS

		
	By	 	/s/ C. Allen Bradley, Jr
	Printed Name	 	C. Allen Bradley, Jr
	Title	 	Chairman & Chief Executive Officer

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Cat XOL Endt 1
	  		  	1-17-14

 

 
 MRC Format Exempt — Client Requirement 

 

							
	WILLIS LIMITED	  	B0801WLM
		
	Agreement Number:	  	10074N14
		
	Reinsured:	  	American Interstate Insurance Company
		
	Type of Agreement:	  	Casualty Catastrophe Excess of Loss Reinsurance Contract
		
	Period:	  	12 months commencing 1st January 2014
		
	Client Shortname:	  	WILREINC
		
	Client Ref:	  	93948003-14
		
	Previous Ref:	  	10074N13
		
	Client Longname:	  	Willis Re Inc., Texas
		
	Brokerage:	  	15% brokerage, split 10% Willis Re Inc. and 5% Willis Re London
				
	Account Executive:	  	Graeme Meachem	  	Extn:	  	17449
				
	London Technician:	  	Sean Brown	  	Extn:	  	27074

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 

 
  

					
	UMR	  	: B080110074N14	  	
	Reinsured	  	: American Interstate Insurance Company	  	
	Type	  	: Casualty Catastrophe Excess of Loss	  	

 RISK DETAILS 
  

			
	 UNIQUE MARKET

REFERENCE:
	  	B080110074N14
		
	REINSURED: 	  	 American Interstate Insurance Company

		
	TYPE:	  	 Casualty Catastrophe Excess of Loss Reinsurance Contract

		
	PERIOD:	  	 This Contract will apply to all losses occurring during the period January 1, 2014, 12:01 a,m., Standard Time (as set forth in the
Company’s policies), to January 1, 2015, 12:01 a.m., Standard Time.

		
	TAXES PAYABLE BY REINSURED AND ADMINISTERED BY REINSURERS: 	  	 None.

		
	 TAXES PAYABLE BY

REINSURERS) AND ADMINISTERED BY THE REINSURED OR THEIR AGENT:
	  	 1% Federal Excise Tax where applicable or as statutorily required.

		
	REINSURER CONTRACT DOCUMENTATION:	  	 This Reinsurance Agreement details the Agreement terms entered into by the Reinsurer(s) and constitutes the Reinsurance Agreement.

 
 Any further documentation changing this Agreement, which has been appropriately agreed,
shall form the evidence of such change(s)
  
 Full contractual wording (93984003-14
[12-31-l3]) is incorporated.

 The “Risk Details” section represents only a convenient summary of the Contractual Wording and is not itself
contractually binding. 
 SB / 27-12-13 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

 TABLE OF CONTENTS 

 

							
	 ARTICLE
	 	 	  	PAGE	 
	 I
	 	BUSINESS COVERED	  	 	1	  
	 II
	 	TERM	  	 	2	  
	 III
	 	SPECIAL TERMINATION	  	 	2	  
	 IV
	 	DEFINITIONS	  	 	4	  
		 	    Act of Terrorism	  	 	4	  
		 	    Declaratory Judgment Expense	  	 	4	  
		 	    Extra Contractual Obligations/Loss in Excess of Policy Limits	  	 	4	  
		 	    Loss Adjustment Expense	  	 	5	  
		 	    Loss Occurrence	  	 	5	  
		 	    Net Earned Premium	  	 	6	  
		 	    Policy	  	 	6	  
	 V
	 	TERRITORY	  	 	6	  
	 VI
	 	EXCLUSIONS	  	 	7	  
	 VII
	 	TERRORISM ACT RECOVERIES	  	 	9	  
	 VIII
	 	COVERAGE	  	 	9	  
	 IX
	 	REINSTATEMENT	  	 	10	  
	 X
	 	SPECIAL ACCEPTANCE	  	 	10	  
	 XI
	 	ACCOUNTING BASIS	  	 	11	  
	 XII
	 	REINSURANCE PREMIUM	  	 	11	  
	 XIII
	 	NOTICE OF LOSS AND LOSS SETTLEMENTS	  	 	11	  
	 XIV
	 	LIABILITY OF REINSURERS	  	 	12	  
	 XV
	 	LATE PAYMENTS	  	 	12	  
	 XVI
	 	ANNUITIES AT THE COMPANY’S OPTION	  	 	13	  
	 XVII
	 	AGENCY AGREEMENT	  	 	14	  
	 XVIII
	 	SUBROGATION	  	 	14	  
	 XIX
	 	ERRORS AND OMISSIONS	  	 	14	  
	 XX
	 	OFFSET	  	 	14	  
	 XXI
	 	CURRENCY	  	 	15	  
	 XXII
	 	TAXES	  	 	15	  
	 XXIII
	 	FEDERAL EXCISE TAX	  	 	15	  
	 XXIV
	 	RESERVES AND FUNDING	  	 	15	  
	 XXV
	 	NET RETAINED LINES	  	 	17	  
	 XXVI
	 	THIRD PARTY RIGHTS	  	 	18	  

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

							
	 XXVII
	 	SEVERABILITY	  	 	18	  
	 XXVIII
	 	GOVERNING LAW	  	 	18	  
	 XXIX
	 	INSPECTION OF RECORDS	  	 	18	  
	 XXX
	 	CONFIDENTIALITY	  	 	19	  
	 XXXI
	 	SUNSET AND COMMUTATION	  	 	20	  
	 XXXII
	 	INSOLVENCY	  	 	21	  
	 XXXIII
	 	ARBITRATION	  	 	22	  
	 XXXIV
	 	EXPEDITED ARBITRATION	  	 	24	  
	 XXXV
	 	SERVICE OF SUIT	  	 	24	  
	 XXXVI
	 	ENTIRE AGREEMENT	  	 	25	  
	 XXXVII
	 	MODE OF EXECUTION	  	 	26	  
	 XXXVIII
	 	INTERMEDIARY	  	 	26	  
		 	Nuclear Incident Exclusion Clause—Liability—Reinsurance—U.S.A.	  			

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  		  	12-31-13

 CASUALTY CATASTROPHE EXCESS OF LOSS 

REINSURANCE CONTRACT 
 (the
“Contract”) 
 between 

AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 

and 
 THE SUBSCRIBING
REINSURER(S) EXECUTING THE 
 INTERESTS AND LIABILITIES AGREEMENT(S) 

ATTACHED HERETO 
 (the
“Reinsurer”) 
 ARTICLE I 

BUSINESS COVERED 
  

	A.	By this Contract the Reinsurer agrees to reinsure the excess liability of the Company under its Policies that are in force at the effective time and date hereof or issued or renewed at or after that time and date, and
classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer Continental Shelf Lands Act and any
other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

	B.	The Reinsurer further agrees to reinsure the excess liability of the Company under Policies issued by Cooperative Mutual Insurance Company that are in force at the effective time and date hereof or issued or renewed at
or after that time and date, and classified by the Company as Workers’ Compensation, Employers Liability, including but not limited to coverage provided under the U.S. Longshore and Harbor Workers’ Compensation Act, Jones Act, Outer
Continental Shelf Lands Act and any other Federal Coverage extensions, subject to the terms, conditions and limitations hereafter set forth. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	1	  	12-31-13

 ARTICLE II 

TERM 
  

	A.	This Contract will apply to all losses occurring during the period January 1, 2014, 12:01 a.m. Standard Time (as set forth in the Company’s policies), to January 1, 2015, 12:01 a.m. Standard Time.

  

	B.	Upon the expiration or termination of this Contract, the entire liability of the Reinsurer for losses occurring subsequent to the date of expiration shall cease concurrently with the date of expiration of this Contract.

  

	C.	Notwithstanding the above, upon expiration or termination of this Contract, the Company shall have the option of requiring that the Reinsurer shall remain liable for losses occurring under Policies in force on the
expiration or termination date of this Contract until the next renewal, termination, or natural expiration date of such Policies or until 12 months (plus “odd time,” not to exceed 18 months in all) following the date of expiration
(whichever occurs first), 

  

	D.	If this Contract expires while a Loss Occurrence covered hereunder is in progress, the Reinsurer’s liability hereunder shall, subject to the other terms and conditions of this Contract, be determined as if the
entire Loss Occurrence had occurred prior to the expiration of this Contract, provided that no part of such Loss Occurrence is claimed against any renewal or replacement of this Contract. 

ARTICLE III 
 SPECIAL
TERMINATION 
  

	A.	The Company may terminate a subscribing reinsurer’s share in this Contract by giving written notice to the subscribing reinsurer upon the happening of any one of the following circumstances: 

 

	 	1.	A State Insurance Department or other legal authority orders the subscribing reinsurer to cease writing business, or 

  

	 	2.	The subscribing reinsurer has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a
receiver, liquidator, rchabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations, or 

 

	 	3.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the subscribing reinsurer’s policyholders’ surplus, as reported in the financial
statements of the subscribing reinsurer, has been reduced by 20.0% or more, or 

	

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	2	  	12-31-13

	 	4.	The subscribing reinsurer has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling the subscribing reinsurer’s operations previously, or 

 

	 	5.	The subscribing reinsurer has reinsured its entire liability under this Contract without the Company’s prior written consent, or 

 

	 	6.	The subscribing reinsurer receives an A. M. Best rating of lower than A-, or an S&P financial strength rating of lower than A-, or 

 

	 	7.	The subscribing reinsurer has ceased writing new and renewal reinsurance for the lines of business covered hereunder. 

  

	B.	In the event of such termination, the liability of the subscribing reinsurer shall be terminated, at the Company’s option, either in accordance with the cutoff provisions of paragraph B of the TERM ARTICLE or in
accordance with the runoff provisions of paragraph C of the TERM ARTICLE, and such termination shall be effective as of the date the subscribing reinsurer receives written notice of termination pursuant to paragraph A above. 

 

	C.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provisions of this Article, the Company shall have the option to commute the excess liabilities of the subscribing
reinsurer. If this commutation option is exercised, the provisions of the paragraphs B through G of the SUNSET AND COMMUTATION ARTICLE shall apply. 

  

	D.	In the event the Company terminates a subscribing reinsurer’s share in this Contract under the provision of this Article, the Company shall have the option to require the subscribing reinsurer to fund its share of
ceded unearned premium, outstanding loss and Loss Adjustment Expense reserves, reserves for losses and Loss Adjustment Expense incurred but not reported to the Company (IBNR as determined by the Company) and any other balances or financial
obligations. Within 30 days of the Company’s written request to fund, the subscribing reinsurer shall provide to the Company a clean, unconditional, evergreen, irrevocable letter of credit or a trust agreement which establishes a trust account
for the benefit of the Company. The method of funding must be acceptable to the Company, shall be established with a financial institution suitable to the Company, shall comply with any applicable state or federal laws or regulations involving the
Company’s ability to recognize these agreements as assets or offsets to liabilities in such jurisdictions and shall be at the sole expense of the subscribing reinsurer. The Company and the subscribing reinsurer may mutually agree on alternative
methods of funding or the use of a combination of methods. This option is available to the Company at any time there remains any outstanding liabilities of the subscribing reinsurer. Notwithstanding the foregoing, the Company shall not require
funding in accordance with this subparagraph in the event the subscribing reinsurer has otherwise fully funded its obligations under this Contract in a manner acceptable to the Company. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	3	  	12-31-13

 ARTICLE IV 

DEFINITIONS 
  

	A.	Act of Terrorism 

 “Act of Terrorism” as used herein shall follow the definition
provided under the Terrorism Risk Insurance Act of 2002 (TRIA) and as amended by the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) and the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), together and including any
extensions or replacement thereof, the “Terrorism Act.” 
 In the event the Terrorism Act is not extended or renewed, Act of
Terrorism shall mean a violent act or an act that is dangerous to human life; property; or infrastructure that 1) has resulted in damage within the United States, or outside of the United States in the case of an air carrier or vessel, 2) was
committed by an individual or individuals as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. The Company shall determine the
application of the above definition. 
 An “Act of Terrorism” may include an act involving the use and/or dispersal of nuclear,
chemical, biological or radiological agents. 
  

	B.	Declaratory Judgment Expense 

 “Declaratory Judgment Expense” as used herein shall
mean all expenses incurred by the Company in connection with a declaratory judgment action brought to determine the Company’s defense and/or indemnification obligations that are allocable to a specific claim subject to this Contract.
Declaratory Judgment Expense shall be deemed to have been incurred on the date of the original loss (it any) giving rise to the declaratory judgment action. 
  

	C.	Extra Contractual Obligations/Loss in Excess of Policy Limits 

  

	 	1.	Extra Contractual Obligations 

 This Contract shall protect the Company for any “Extra
Contractual Obligations” which as used herein shall mean any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of an action against it by its
insured, its insurcd’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

An Extra Contractual Obligation shall be deemed to have occurred on the same date as the loss covered or alleged to be covered under the
Policy. 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	4	  	12-31-13

	 	2.	Loss in Excess of Policy Limits 

 This Contract shall protect the Company for any “Loss in
Excess of Policy Limits” which as used herein shall mean an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of an action against it by its insured, its
insured’s assignee or a third party claimant. Such loss in excess of the limit shall have been incurred because of failure by the Company 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 in the preparation or prosecution of an appeal consequent upon such action. 

 

	 	3.	This paragraph C shall not apply where an Extra Contractual Obligation and/or Loss in Excess of Policy Limits has been incurred due to an adjudicated finding of fraud committed by a member of the Hoard of Directors or a
corporate officer of the Company acting individually or collectively or in collusion with a member of the Board of Directors or a corporate officer or a partner of any other corporation or partnership. 

 

	D.	Loss Adjustment Expense 

 “Loss Adjustment Expense” as used herein shall mean all
costs and expenses allocable to a specific claim that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal
bonds, and including 1) pre-judgment interest, unless included as part of the award or judgment; 2) post-judgment interest; 3) legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto, including
Declaratory Judgment Expense; and 4) a pro rata share of salaries and expenses of Company field employees, and expenses of other Company employees who have been temporarily diverted from their normal and customary duties and assigned to the field
adjustment of losses covered by this Contract. Loss Adjustment Expense does not include unallocated loss adjustment expense. Unallocated loss adjustment expense includes, but is not limited to, salaries and expenses of employees, other than
(4) above, and office and other overhead expenses. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used in this Contract shall mean any one
disaster or casualty or accident or lessor series of disasters or casualties or accidents or losses arising out of or caused by one event. The Company shall be the sole judge of what constitutes one event as outlined herein and in the original
Policy. 
 As respects losses resulting from Occupational or Industrial Disease or Cumulative Trauma, each employee shall be considered a
separate Loss Occurrence subject to the following: 
 Losses resulting from Occupational or Industrial Disease or Cumulative Trauma suffered
by employees of an insured for which the employer is liable, as a result of a sudden and accidental event not exceeding 72 hours in duration, shall be considered one Loss Occurrence and may be combined with losses classified as other than
Occupational or Industrial Disease or Cumulative Trauma which arise out of the same event and the combination of such losses shall he considered as one Loss Occurrence within the meaning hereof. 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	5	  	12-31-13

 A loss with respect to each employee affected by an Occupational Disease or Cumulative Trauma
shall be deemed to have been sustained by the Company on the date of the beginning of the disability for which compensation is payable. 

The terms “Occupational or Industrial Disease” and “Cumulative Trauma” as used in this Contract shall be as defined by
applicable statutes or regulations. 
  

	F.	Net Earned Premium 

 “Net Earned Premium” as used herein is defined as gross earned
premium of the Company for the classes of business reinsured hereunder, less the earned portion of premiums ceded by the Company for reinsurance which inures to the benefit of this Contract and less dividends paid or accrued. 

 

	G.	Policy 

 “Policy” or “Policies” as used herein shall mean the Company’s
or Cooperative Mutual Insurance Company’s binders, policies and contracts providing insurance or reinsurance on the classes of business covered under this Contract. 
  

	H.	Ultimate Net Loss 

 “Ultimate Net Loss” shall mean the actual loss, including any
pre-judgment interest which is included as part of the award or judgment, “Second Injury Fund” assessments that can be allocated to specific claims, Loss Adjustment Expense, 90% of Loss in Excess of Policy Limits, and 90% of Extra
Contractual Obligations, paid or to be paid by the Company on its net retained liability after making deductions for all recoveries, subrogations and all claims on inuring reinsurance, whether collectible or not; provided, however, that in the event
of the insolvency of the Company, payment by the Reinsurer shall be made in accordance with the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be consumed to mean that losses under this Contract are not recoverable until the
Company’s Ultimate Net Loss has been ascertained. 
 Notwithstanding the definition of “Ultimate Net Loss” herein, the
provisions of paragraph H of the COVERAGE ARTICLE as respects the Minnesota Workers’ Compensation Reinsurance Association shall apply. 

ARTICLE V 
 TERRITORY

 The territorial limits of this Contract shall be identical with those of the Company’s Policies. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	6	  	12-31-13

 ARTICLE VI 

EXCLUSIONS 
  

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

  

	 	1.	Reinsurance assumed by the Company under obligatory reinsurance agreements, except: 

  

	 	a.	Agency reinsurance where the policies involved are to be reunderwritten in accordance with the underwriting standards of the Company and reissued as Company policies at the next anniversary or expiration date; and

  

	 	b.	Intercompany reinsurance between any of the reinsured companies under this Contract. 

  

	 	c.	Reinsurance assumed through Policies issued by Cooperative Mutual Insurance Company. 

  

	 	2.	Nuclear risks as defined in the “Nuclear Incident Exclusion Clause — Liability—Reinsurance -U.S.A.” (NMA 1590 21/9/67) attached hereto. 

 

	 	3.	Liability as a member, subscriber or reinsurer of any Pool, Syndicate or Association, including Assigned Risk Plans or similar plans; however, this exclusion shall not apply to liability under a Policy specifically
designated to the Company from an Assigned Risk Plan or similar plan. 

  

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

  

	 	5.	Loss caused directly or indirectly by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incidental to any of the foregoing. This exclusion shall not apply to any
Policy that contains a standard war exclusion. 

  

	 	6.	Workers’ Compensation where the principal exposure, as defined by the governing class code, is: 

  

	 	a.	Operation of aircraft, but only if the annual estimated policy premium is $250,000 or more; 

  

	 	b.	Operation of Railroads, subways or street railways; 

  

	 	c.	Manufacturing, assembly, packing or processing of fireworks, fuses, nitroglycerine, magnesium, pyroxylin, ammunition or explosives. This exclusion does not apply to the assembly, packing or processing of explosives when
the estimated annual premium is under $250,000 and does not apply to the commercial use of explosives; 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	7	  	12-31-13

	 	d.	Underground mining. 

  

	 	7.	Professional sports teams. 

  

	B.	Notwithstanding the foregoing, insureds regularly engaged in operations not excluded under paragraph A above, but whose operations may include one or more perils excluded therein, shall not be excluded from coverage
afforded by this Contract, provided said operations are incidental to the main operations of the insured. Notwithstanding the foregoing, coverage extended under this paragraph for incidental operations of an insured shall not apply to exposures
excluded under subparagraphs 1 through 5 of paragraph A above. The Company shall be the judge of what constitutes an incidental part of the insured’s operation. 

 

	C.	Except for subparagraphs 1 through 5 of paragraph A above, if the Company is inadvertently bound or is unknowingly exposed (due to error or automatic provisions of policy coverage) on a risk otherwise excluded in
paragraph A above, such exclusion shall be waived. The duration of said waiver will not extend beyond the time that notice of such coverage has been received by a responsible underwriting authority of the Company and for a period not exceeding 30
days thereafter, or such longer period required to conform with any notice of cancellation provisions prescribed by regulatory authorities, such period not to exceed 12 months plus odd time (not exceeding 18 months). 

 

	D.	If the Company is required to accept an assigned risk which conflicts with one or more of the exclusions set forth in subparagraph 5 of paragraph A, reinsurance shall apply, but only for the difference between the
Company’s retention and the limit required by the applicable state statute, and in no event shall the Reinsurer’s liability exceed the limit set forth in the Coverage Article. 

 

	E.	Notwithstanding the foregoing, any reinsurance falling within the scope of one or more of the exclusions set forth above that is specially accepted by the Reinsurer from the Company shall be covered under this Contract
and be subject to the terms hereof. 

  

	F.	Except for subparagraphs 1 through 5 of paragraph A above, should a court of competent jurisdiction invalidate any exclusion or expand coverage of the original Policy of the Company, any amount of Loss for which the
Company would not be liable, except for such invalidation or expansion of coverage, shall not be subject to any of the exclusions, conditions and limitations hereinafter set forth under this Contract. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	8	  	12-31-13

 ARTICLE VII 

TERRORISM ACT RECOVERIES 
  

	A.	Any financial assistance the Company receives under the Terrorism Act, shall apply as follows: 

  

	 	1.	Except as provided in subparagraph 2 below, any such financial assistance shall inure solely to the benefit of the Company and shall be entirely disregarded in applying all of the provisions of this Contract.

  

	 	2.	If losses occurring hereunder result in recoveries made by the Company both under this Contract and under the Terrorism Act, and such recoveries, together with any other reinsurance recoverables made by the Company
applicable to said losses, exceed the total amount of the Company’s insured losses, any amount in excess thereof shall reduce the Ultimate Net Loss subject to this Contract for the losses to which the Terrorism Act assistance applies. These
recoveries shall be returned in proportion to each Reinsurer’s paid share of the loss. 

  

	B.	Nothing herein shall be construed to mean that the losses under this Contract are not recoverable until the Company has received financial assistance under the Terrorism Act. 

ARTICLE VIII 
 COVERAGE

  

	A.	The Reinsurer shall be liable for the Ultimate Net Loss in excess of $10,000,000 as a result of any one Loss Occurrence. The Reinsurer’s liability in respect of any one Loss Occurrence shall not exceed $60,000,000.

  

	B.	The Reinsurer’s liability in respect of Ultimate Net Loss amounts recoverable hereunder for an Act of Terrorism (as defined in the definition of “Act of Terrorism”) occurring during the term of this
Contract shall not exceed $60,000,000. This paragraph is not subject the REINSTATEMENT ARTICLE. 

  

	C.	The Reinsurer’s liability in respect of all losses occurring during the term of this Contract shall not exceed $120,000,000. 

  

	D.	As respects the statutory portion of any Workers’ Compensation Policy, the Company’s Ultimate Net Loss subject to this Contract shall not exceed $10,000,000 as respects any one life, each Loss Occurrence

  

	E.	The Company shall be permitted to purchase (or maintain) other reinsurance which inures to the benefit of this Contract. 

  

	F.	The Company shall be permitted to carry underlying reinsurance, recoveries under which shall inure solely to the benefit of the Company and be entirely disregarded in applying all of the provisions of this Contract.

  

	G.	As respects Employers Liability, the maximum net subject Policy limit (except statutory where required by law) as respects any one Policy shall be $2,000,000 or the Company shall be deemed to have purchased inuring
excess facultative reinsurance for subject Policy limits in excess of $2,000,000. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	9	  	12-31-13

	H.	The Company shall be permitted to carry excess of loss reinsurance applying to Workers’ Compensation risks in the State of Minnesota, actual recoveries under which shall inure to the benefit of this Contract. Such
coverage shall be provided through the Minnesota Workers’ Compensation Reinsurance Association. Notwithstanding the treatment of inuring coverage in the definition of Ultimate Net Loss, the liability of the Reinsurer for Minnesota Workers’
Compensation risks is not released. 

 ARTICLE IX 

REINSTATEMENT 
  

	A.	Should all or any part of the Reinsurer’s limit of liability be exhausted as a result of a Loss Occurrence, the sum so exhausted shall be reinstated from the date the Loss Occurrence commenced. 

 

	B.	For each amount so reinstated, the Company agrees to pay an additional premium at the time of the Reinsurer’s payment of the loss calculated in accordance with the following formula: 

 

	 	1.	The percentage of the Reinsurer’s limit of liability exhausted for the Loss Occurrence; times 

  

	 	2.	The Net Earned Premium for the term of this Contract (exclusive of reinstatement premium). 

 The
dollar amount resulting from the multiplication of subparagraphs 1 and 2 above shall equal the reinstatement premium. If at the time of the Reinsurer’s payment of a loss hereon, the reinsurance premium as calculated under this Contract is
unknown, the calculation of the reinstatement premium shall be based upon the deposit premium subject to adjustment when the reinsurance premium is finally established. 
  

	C.	Nevertheless, the Reinsurer’s liability hereunder shall not exceed $60,000,000 in respect of any one Loss Occurrence, and shall be further limited to $120,000,000 in respect of all losses occurring during the term
of this Contract. 

 ARTICLE X 

SPECIAL ACCEPTANCE 
 From time to time the Company
may request a special acceptance applicable to this Contract. For purposes of this Contract, in the event each subscribing reinsurer whose share in the interests and liabilities of the Reinsurer is 20% or greater agree to a special acceptance, such
agreement shall be binding on all subscribing reinsurers. If such agreement is not achieved, such special acceptance shall be made to this Contract only with respect to the interests and liabilities of each subscribing reinsurer who agrees to the
special acceptance. Should denial for special acceptance not be received within 10 working days of said request, the special acceptance shall be deemed automatically agreed. In the event a reinsurer becomes a party to this Contract subsequent to one
or more special acceptances hereunder, the new reinsurer shall automatically accept such special acceptance(s) as being covered hereunder. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	10	  	12-31-13

 ARTICLE XI 

ACCOUNTING BASIS 
 All premiums and losses under
this Contract shall be reported on an “accident year” accounting basis. Unless specified otherwise herein, all premiums shall be credited to the period during which they earn, and all losses shall be charged to the period during which they
occur. 
 ARTICLE XII 

REINSURANCE PREMIUM 
  

	A.	As premium for the reinsurance provided hereunder, the Company shall pay the Reinsurer 0.5453% times its Net Earned Premium for the term of this Contract subject to a Minimum Premium of $1,440,000. 

 

	B.	The Company shall pay the Reinsurer a Deposit Premium of $1,800,000 payable in quarterly installments on January 1, April 1, July 1 and October 1. 

 

	C.	Within 90 days after the expiration of this Contract, the Company shall provide a report to the Reinsurer setting forth the premium due hereunder, computed in accordance with paragraph A, and if the premium so computed
is greater than the previously paid Deposit Premium, the balance shall be remitted by the Company with its report. 

  

	D.	If this Contract expires on a runoff basis, the Company shall pay to the Reinsurer a premium for the runoff period equal to the expiring rate times its Net Earned Premium for the runoff period. The runoff premium shall
be calculated and paid within 90 days after the end of each three-month period during the runoff period. There shall be no minimum premium requirement for the runoff period. 

ARTICLE XIII 
 NOTICE OF LOSS
AND LOSS SETTLEMENTS 
  

	A.	As soon as practicable, the Company shall advise the Reinsurer of all bodily injury claims or losses involving any of the following: 

 

	 	1.	Any claim or loss reserved at 50.0% or more of the Company’s retention under this Contract. 

  

	 	2.	Any claim involving any of the following injuries where the Company’s incurred loss is greater than or equal to $1,000,000: 

  

	 	a.	Fatality. 

  

	 	b.	Spinal cord injuries (e.g., quadriplegia, paraplegia). 

  

	 	c.	Brain damage (e.g., seizure, coma or physical/mental impairment). 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	11	  	12-31-13

	 	d.	Severe burn injuries resulting in disfigurement or scarring. 

  

	 	e.	Total or partial blindness in one or both eyes. 

  

	 	f.	Major organ (e.g., heart, lungs). 

  

	 	g.	Amputation of a limb or multiple fractures. 

  

	B.	The Company shall also advise the Reinsurer promptly of all losses which, in the opinion of the Company, may result in a claim hereunder and of all subsequent developments thereto which, in the opinion of the Company,
may materially affect the position of the Reinsurer. 

  

	C.	When so requested in writing, the Company shall afford the Reinsurer or its representatives an opportunity to be associated with the Company, at the expense of the Reinsurer, in the defense of any claim, suit or
proceeding involving this reinsurance, and the Company and the Reinsurer shall cooperate in every respect in the defense of such claim, suit or proceeding. 

  

	D.	All loss settlements made by the Company that are within the terms and conditions of this Contract (including but not limited to ex gratia payments) shall be binding upon the Reinsurer. Upon receipt of satisfactory
proof of loss, the Reinsurer agrees to promptly pay or allow, as the case may be, its share of each such settlement in accordance with this Contract. 

ARTICLE XIV 
 LIABILITY OF
REINSURERS 
 All reinsurances for which the Reinsurer shall be liable by virtue of this Contract shall be subject in all respects to the same rates,
terms, conditions, interpretations and waivers and to the same modifications, alterations, and cancellations, as the respective policies to which such reinsurances relate, the true intent of the parties to this Contract being that the Reinsurer
shall follow the fortunes of the Company. 
 ARTICLE XV 

LATE PAYMENTS 
  

	A.	In the event any premium, loss or other payment due either party is not received by the Intermediary hereunder by the payment due date, the party to whom payment is due may, by notifying the Intermediary in writing,
require the debtor party to pay, and the debtor party agrees to pay, an interest penalty on the amount past due calculated for each such payment on the last business day of each month as follows: 

 

	 	1.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	12	  	12-31-13

	 	2.	l/365ths of a rate equal to the 90-day Treasury Bill rate as published in The Wall Street Journal on the first business day following the date a remittance becomes due; times 

 

	 	3.	The amount past due, including accrued interest. 

 It is agreed that interest shall accumulate
until payment of the original amount due plus interest penalties have been received by the Intermediary. 
  

	B.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	1.	As respects the payment of deposits and premiums due the Reinsurer, the due date shall be as provided for in the applicable section of this Contract. 

 

	 	2.	Any claim or loss payment due the Company hereunder shall be deemed due 10 business days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received
within the 10 days, interest will accrue on the payment or amount overdue in accordance with the interest penalty calculation above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 

 

	 	3.	As respects any payment, adjustment or return due either party not otherwise provided For in subparagraphs 1 and 2 of this paragraph, the due date shall be as provided for in the applicable section of this Contract.

  

	C.	For purposes of interest calculation only, amounts due hereunder shall be deemed paid upon receipt by the Intermediary. The validity of any claim or payment may be contested under the provisions of this Contract. If the
debtor party prevails in an arbitration, or any other proceeding, there shall be no interest penalty due. Otherwise, any interest will be calculated and due as outlined above. 

 

	D.	Interest penalties arising out of the application of this Article that are $100 or less from any party shall be waived unless there is a pattern of late payments consisting of three or more items over the course of any
12-month period. 

 ARTICLE XVI 

ANNUITIES AT THE COMPANY’S OPTION 
  

	A.	Whenever the Company is required, or elects, to purchase an annuity or to negotiate a structured settlement, either in satisfaction of a judgment or in an out-of-court settlement or otherwise, the cost of the annuity or
the structured settlement, as the case may be, shall be deemed part of the Company’s Ultimate Net Loss. 

  

	B.	The terms “annuity” or “structured settlement” shall be understood to mean any insurance policy, lump sum payment, agreement or device of whatever nature resulting in the payment of a lump sum by the
Company in settlement of any or all future liabilities which may attach to it as a result of an occurrence. 

  

					
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	C.	In the event the Company purchases an annuity which inures in whole or in part to the benefit of the Reinsurer, it is understood that the liability of the Reinsurer is not released thereby. In the event the Company is
required to provide benefits not provided by the annuity for whatever reason, the Reinsurer shall pay its share of any loss. 

ARTICLE XVIII 
 AGENCY
AGREEMENT 
 If more than one reinsured company is named as a party to this Contract, the first named company will be deemed the agent of the other
reinsured companies for purposes of sending or receiving notices required by the terms and conditions of this Contract and for purposes of remitting or receiving any monies due any party. 

ARTICLE XVIII 
 SUBROGATION

 The Reinsurer shall be credited with subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less Loss
Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. Subrogation recoveries thereon shall always be used to reimburse the excess carriers in the
reverse order of their priority according to their participation before being used in any way to reimburse the Company for its primary loss. The Company, at its sole option and discretion, may enforce its rights to subrogation relating to any loss,
a part of which loss was sustained by the Reinsurer, and may prosecute all claims arising out of such rights. 
 ARTICLE
XIX 
 ERRORS AND OMISSIONS 
 Any
inadvertent delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it hereunder if such delay, omission or error had not been made, provided such omission or error is rectified upon
discovery. Nothing contained in this Article shall be held to override the specific loss reporting deadline of the SUNSET AND COMMUTATION ARTICLE. 

ARTICLE XX 
 OFFSET

 The Company and the Reinsurer may offset any balance or amount due from one party to the other under this Contract or any other
contract heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer or ceding company. The party asserting the right of offset may exercise such right any time whether the balances due are on
account of premiums or losses or otherwise. 

  

					
	 American Interstate Insurance Company

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Contract
	  	14	  	12-31-13

 ARTICLE XXI 

CURRENCY 
  

	A.	Whenever the word “Dollars” or the “$” sign appears in this Contract, they shall be construed to mean United States Dollars and all transactions under this Contract shall be in United States Dollars.

  

	B.	Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such transaction is entered on the books of the Company. 

ARTICLE XXII 
 TAXES

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

ARTICLE XXIII 
 FEDERAL
EXCISE TAX 
 (Applicable to those subscribing reinsurers who are domiciled outside the United States of America, excepting subscribing reinsurers
exempt from Federal Excise Tax.) 
  

	A.	The subscribing reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under Section 4371 of the Internal Revenue Code) to
the extent such premium is subject to the Federal Excise Tax. 

  

	B.	In the event of any return of premium becoming due hereunder the subscribing reinsurer will deduct the applicable percentage from the return premium payable hereon and the Company or its agent should take steps to
recover the tax from the United States Government. 

 ARTICLE XXIV 

RESERVES AND FUNDING 
  

	A.	A subscribing reinsurer will provide funding under the terms of this Article only if the Company will be denied statutory credit for reinsurance ceded to that subscribing reinsurer pursuant to the credit for reinsurance
law or regulations in any applicable jurisdiction. In the event any of the provisions of this Article conflict with or otherwise fail to satisfy the requirements of the appropriate credit for reinsurance statute or regulation, this Article will be
deemed amended to conform to the appropriate statute or regulation; the intent of this Article being that the Company will be permitted to realize full credit for the reinsurance ceded to the Reinsurer under this Contract. 

  

					
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	B.	As regards Policies or bonds issued by the Company coming within the scope of this Contract, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for losses
covered hereunder which it shall be required by law to set up, it will forward to the subscribing reinsurer a statement showing the proportion of such reserves which is applicable to the subscribing reinsurer. The subscribing reinsurer hereby agrees
to fund such reserves in respect of known outstanding losses that have been reported to the subscribing reinsurer and allocated Loss Adjustment Expense relating thereto, losses and allocated Loss Adjustment Expense paid by the Company but not
recovered from the subscribing reinsurer, plus reserves for losses incurred but not reported, as shown in the statement prepared by the Company (hereinafter referred to as “subscribing reinsurer’s obligations”) by funds withheld, cash
advances or a Letter of Credit. The subscribing reinsurer shall have the option of determining the method of funding provided it is acceptable to the Company and to the insurance regulatory authorities having jurisdiction over the Company’s
reserves. 

  

	C.	When funding by a Letter of Credit, the subscribing reinsurer agrees to apply for and secure timely delivery to the Company of a clean, irrevocable and unconditional Letter of Credit issued by a bank and containing
provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the subscribing reinsurer’s proportion of said reserves. Such Letter of Credit shall be issued for a period
of not less than one year, and shall be automatically extended for one year from its date of expiration or any future expiration date unless 30 days (60 days where required by insurance regulatory authorities) prior to any expiration date the
issuing bank shall notify the Company by certified or registered mail that the issuing bank elects not to consider the Letter of Credit extended for any additional period. 

 

	D.	The subscribing reinsurer and Company agree that the Letters of Credit provided by the subscribing reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwithstanding any other provision
of this Contract, and be utilized by the Company or any successor, by operation of law, of the Company including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Company for the following purposes, unless otherwise
provided for in a separate Trust Agreement: 

  

	 	1.	To reimburse the Company for the subscribing reinsurer’s obligations, the payment of which is due under the terms of this Contract and which has not been otherwise paid; 

 

	 	2.	To make refund of any sum which is in excess of the actual amount required to pay the subscribing reinsurer’s obligations under this Contract; 

 

	 	3.	To fund an account with the Company for the subscribing reinsurer’s obligations. Such cash deposit shall be held in an interest bearing account separate from the Company’s other assets, and interest thereon
not in excess of the prime rate shall accrue to the benefit of the subscribing reinsurer; 

  

					
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	 	4.	To pay the subscribing reinsurer’s share of any other amounts the Company claims are due under this Contract. 

In the event the amount drawn by the Company on any Letter of Credit is in excess of the actual amount required for subparagraph 1 or 3, or in
the case of subparagraph 4, the actual amount determined to be due, the Company shall promptly return to the subscribing reinsurer the excess amount so drawn. All of the foregoing shall be applied without diminution because of insolvency on the part
of the Company or the subscribing reinsurer. 
  

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

  

	F.	At annual intervals, or more frequently as agreed but never more frequently than quarterly, the Company shall prepare a specific statement of the subscribing reinsurer’s obligations, for the sole purpose of
amending the Letter of Credit, in the following manner: 

  

	 	1.	If the statement shows that the subscribing reinsurer’s obligations exceed the balance of credit as of the statement date, the subscribing reinsurer shall, within 30 days after receipt of notice of such excess,
secure delivery to the Company of an amendment to the Letter of Credit increasing the amount of credit by the amount of such difference. 

  

	 	2.	If, however, the statement shows that the subscribing reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from
the subscribing reinsurer, release such excess credit by agreeing to secure an amendment to the Letter of Credit reducing the amount of credit available by the amount of such excess credit. 

 

	G.	Should the subscribing reinsurer be in breach of its obligations under this Article, notwithstanding anything to the contrary elsewhere in this Contract, the Company may seek relief in respect of said breach from any
court having competent jurisdiction of the parties hereto. 

 ARTICLE XXV 

NET RETAINED LINES 
  

	A.	This Contract applies only to that portion of any Policy which the Company retains net for its own account (prior to deduction of any underlying reinsurance specifically permitted in this Contract), and in calculating
the amount of any loss hereunder and also in computing the amount or amounts in excess of which this Contract attaches, only loss or losses in respect of that portion of any Policy which the Company retains net for its own account shall be included.

  

	B.	The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not be increased by reason of the inability of the Company to collect from any other reinsurer(s), whether specific or
general, any amounts which may have become due from such reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s) or otherwise. 

  

					
	 American Interstate Insurance Company

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Contract
	  	17	  	12-31-13

 ARTICLE XXVI 

THIRD PARTY RIGHTS 
 This Contract is solely
between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Contract except as expressly provided otherwise in the INSOLVENCY ARTICLE. 

ARTICLE XXVII 
 SEVERABILITY

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

ARTICLE XXVIII 
 GOVERNING
LAW 
 This Contract shall be governed as to performance, administration and interpretation by the laws of the State of Louisiana,
exclusive of that state’s rules with respect to conflicts of law, except as to rules with respect to credit for reinsurance in which case the applicable rules of all states shall apply. 

ARTICLE XXIX 
 INSPECTION OF
RECORDS 
  

	A.	The Reinsurer or its designated representative(s) approved by the Company, upon providing reasonable advance notice to the Company, shall have access at the offices of the Company or at a location to be mutually agreed,
at a time to be mutually agreed, to inspect the Company’s underwriting, accounting, or claim files pertaining to the subject matter of this Contract, other than proprietary information or privileged communications. The Company shall determine
the manner in which files shall be accessed by the Reinsurer. The Reinsurer may, at its own expense, reasonably request copies of such files and agrees to pay the Company’s reasonable costs incurred in procuring such copies. 

 

	B.	If any undisputed amounts are overdue from the Reinsurer to the Company, the Reinsurer shall have access to such records only upon payment of all such overdue amounts. 

  

					
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	C.	If the Reinsurer makes any inspection of the Company’s books and records involving specific claims under this Contract and, as a result of the inspection the claim is contested or disputed, the Reinsurer shall
provide the Company, at the Company’s request, a summary of any reports, other than proprietary information or privileged communications, completed by the Reinsurer’s personnel or by third parties on behalf of the Reinsurer outlining the
reasons for contesting or disputing the subject claim. 

 ARTICLE XXX 

CONFIDENTIALITY 
  

	A.	The Reinsurer hereby acknowledges that the documents, information, and data provided to the Reinsurer by the Company, whether directly or through an authorized agent, in connection with the placement and execution of
this Contract (“Confidential Information”) are proprietary and confidential to the Company. 

  

	B.	Absent the written consent of the Company, the Reinsurer will not disclose any Confidential Information to any third parties, except when: 

 

	 	1.	The disclosure is to professional advisors or to authorized agents of the Reinsurer performing underwriting, claim handling, pricing, placement and/or evaluation services for the Reinsurer; or 

 

	 	2.	The Confidential Information is publicly known or has become publicly known through no unauthorized act of the Reinsurer; or 

  

	 	3.	Required by retrocessionaires subject to the business ceded to this Contract; or 

  

	 	4.	Required by state regulators performing an audit of the Reinsurer’s records and/or financial condition; or 

  

	 	5.	Required by auditors performing an audit of the Reinsurer’s records in the normal course of business. 

  

	C.	Further, the Reinsurer agrees not to use any Confidential Information for any purpose not permitted by this Contract or not related to the performance of their obligations or enforcement of their rights under this
Contract. 

  

	D.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process, or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Company by written or electronic mail, reasonable advance notice of same prior to such release or disclosure and to use their reasonable best efforts to assist the Company in maintaining the confidentiality provided for in this
Article. 

  

	E.	The provisions of this Article will extend to the officers, directors, shareholders, and employees of the Reinsurer and its affiliates, who have received Confidential Information in accordance with this Contract and
will be binding upon their successors and assigns. 

  

					
	 American Interstate Insurance Company

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Contract
	  	19	  	12-31-13

 ARTICLE XXXI 

SUNSET AND COMMUTATION 
  

	A.	Ten years after the expiration of this Contract, the Company shall advise the Reinsurer of any Loss Occurrences attaching to this Contract which have not been finally settled and which may result in a claim by the
Company under this Contract. No liability shall attach hereunder for any claim or claims not reported to the Reinsurer within this ten year period. If a loss arising out of a Loss Occurrence is reported during this period, all losses
arising out of the same Loss Occurrence shall be deemed reported under this paragraph regardless of when notification of loss is provided. 

  

	B.	If both parties agree to commute the unsettled losses subject to the Contract, then the Reinsurer’s liability for all such unsettled losses shall then be commuted. 

 

	C.	It is understood that commutation of all such losses shall be made using tabular reserving methods. For each loss, the nominal ultimate value of the Company’s Ultimate Net Loss shall be established by projecting
out future medical and indemnity payments and loss expenses by year based on appropriate trends and escalations applied to annual cost estimates. The Contract limit and retention (where applicable) shall then be applied to the nominal ultimate value
of the Company’s Ultimate Net Loss to determine the nominal ultimate Contract loss. Mortality factors and discount factors shall then be applied by year to the nominal ultimate Contract loss. The discounted, mortality adjusted projected annual
loss payments shall be summed to determine the present value (“commutation price”) of the ultimate Contract loss. The medical escalation, discount and mortality factors are described in paragraph C. 

 

	D.	The following factors shall be utilized in establishing the commutation price: 

  

	 	1.	Medical Escalation Rate 

 The medical escalation rate shall be a reasonable estimate of future
medical inflation. 
  

	 	2.	Discount Rate 

 The discount rate shall be the annualized 10-year US Treasury Bill rate at the
Valuation Date. 
  

	 	3.	Mortality Tables 

 Mortality factors shall be based on the most recent mortality table at the
Valuation Date from the “Vital Statistics of the United States” as published by the US Department of Health and Human Services, Center for Disease Control and Prevention. Factors for extension beyond age 85 shall also be included. 

 

	 	4.	Impairment 

 Impairment factors shall be based on the individual claim characteristics. 

  

					
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	  	20	  	12-31-13

 Any other method of calculating the commutation price of one or more losses subject to this
Contract may be used as mutually agreed between the Company and the Reinsurer. 
  

	E.	If the Company and the Reinsurer cannot agree on a commutation value, the effort can be abandoned. Alternatively, the Company and the Reinsurer may mutually agree to settle any difference using a panel of three
actuaries, one to be chosen by each party and the third by the two so chosen. If either party refuses or neglects to appoint an actuary within 30 days, the other party may appoint two actuaries. If the two actuaries fail to agree on the selection of
a third actuary within 30 days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall be made by drawing lots. All the actuarics shall be regularly engaged in the valuation of Workers’
Compensation claims and shall be Fellows of the Casualty Actuarial Society or members of the American Academy of Actuaries. All of the actuaries shall be independent of either party to this Contract. 

 

	F.	The settlement agreed upon by a majority of the panel of actuaries shall be final and binding on both parties and set forth in a sworn written document expressing their professional opinion that said value is fair for
the complete mutual release of all liabilities in respect of such reserves. 

  

	G.	The Reinsurer’s commutation payment shall be due within 7 days following the date the Company and the Reinsurer agree to the commutation price. Such payment by the Reinsurer shall constitute both a complete release
of the Reinsurer of its liability for all losses, known or unknown, under this Contract, and a complete release of the Company of its liabilities and obligations, known or unknown, under this Contract. 

 

	H.	This Article shall survive the expiration of this Contract. 

 ARTICLE XXXII 

INSOLVENCY 
  

	A.	In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator or statutory successor, with reasonable provision for verification, on
the basis of the liability of the Company without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of the Company has failed to pay all or a portion of any claim. It is
agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the Policy 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 its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by the Reinsurer shall be chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of a proportionate share of the benefit which may accrue to the
Company solely as a result of the defense undertaken by the Reinsurer. 

  

					
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	B.	Where two or more subscribing 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
this Contract as though such expense had been incurred by the Company. 

  

	C.	It is further agreed that, in the event of the insolvency of the Company, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Company or its liquidator, receiver, conservator, or
statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except 1) where this Contract specifically provides another payee of such reinsurance in the event of the insolvency of the Company or 2) where the
Reinsurer with the consent of the direct insured or insureds has assumed such Policy obligations of the Company as direct obligations of the Reinsurer to the payee under such Policies and in substitution for the obligations of the Company to such
payees. 

  

	D.	In the event of the insolvency of any company or companies listed in the designation of “Company” under this Contract, this Article shall apply only to the insolvent company or companies. 

ARTICLE XXXIII 
 ARBITRATION

  

	A.	As a condition precedent to any right of action hereunder, any irreconcilable dispute arising out of the interpretation, performance or breach of this Contract, including the formation or validity thereof, whether
arising before or after the expiry or termination of the Contract, shall be submitted for decision to a panel of 3 arbitrators. Notice requesting arbitration will be in writing and sent by certified mail, return receipt requested, or such reputable
courier service as is capable of returning proof of receipt of such notice by the recipient to the party demanding arbitration. 

  

	B.	The Company shall have the option to either litigate or arbitrate where: 

  

	 	1.	The Reinsurer makes any allegation of misrepresentation, non-disclosure, concealment, fraud or bad faith; or 

  

	 	2.	The Reinsurer experiences any of the circumstances set forth in subparagraphs 1 through 7 of paragraph A of the SPECIAL TERMINATION ARTICLE. 

 

	C.	One arbitrator shall be appointed by each party. If either party fails to appoint its arbitrator within 30 days after being requested to do so by the other party, the latter, after 10 days notice by certified mail or
reputable courier as provided above of its intention to do so, may appoint the second arbitrator. 

  

					
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	D.	The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. Should the two arbitrators fail to choose the third arbitrator within 30 days of the
appointment of the second arbitrator, the parties shall appoint the third arbitrator pursuant to the AIDA Reinsurance and Insurance Arbitration Society — U.S. (ARIAS) Umpire Selection Procedure. All arbitrators shall be disinterested active or
former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

  

	E.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in DeRidder, Louisiana but the venue may be changed when deemed by the panel to be in the best interest
of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of Louisiana. The decision of any 2 arbitrators when rendered in writing shall be final and binding. The panel is
empowered to grant interim relief as it may deem appropriate. 

  

	F.	In the event an arbitrator is unable to serve due to death, disability or other incapacity, a replacement arbitrator shall be chosen in accordance with the procedures set forth in this Article for the original selection
of the arbitrator appointed and the newly constituted panel shall take all necessary and/or reasonable measures to continue the arbitration proceedings without additional delay. 

 

	G.	The panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. Judgment upon the award may
be entered in any court having jurisdiction thereof. 

  

	H.	If more than one subscribing reinsurer is involved in arbitration where there are common questions of law or fact and a possibility of conflicting awards or inconsistent results, all such subscribing reinsurers shall
constitute and act as one party for purposes of this Article and communications shall be made by the Company to each of the subscribing reinsurers constituting the one party; provided, however, that nothing therein shall impair the rights of such
subscribing reinsurers to assert several, rather than joint defenses or claims, nor be construed as changing the liability of the subscribing reinsurers under the terms of this Contract from several to joint. 

 

	I.	Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel.
The panel may, at its discretion, award such further costs and expenses as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. However, the panel may not award any Exemplary or Punitive Damages and
Enhanced Compensatory Damages. 

  

					
	 American Interstate Insurance Company

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 Casualty Catastrophe XOL
Contract
	  	23	  	12-31-13

 ARTICLE XXXIV 

EXPEDITED ARBITRATION 
  

	A.	Notwithstanding the provisions of the ARBITRATION ARTICLE, in the event an amount in dispute hereunder is $500,000 or less, the Company may elect to require an expedited arbitration process with the use of a single
arbitrator. The arbitrator will be chosen in accordance with the procedures for selecting an arbitrator in force on the date the arbitration is demanded, established by the AIDA Reinsurance and Insurance Arbitration Society – U.S. (ARIAS).

  

	B.	Each party’s case will be submitted to the arbitrator within 100 days of the date of determination of the arbitrator. Discovery will be limited to exchanging only those documents directly relating to the issue in
dispute, subject to a limit of two discovery depositions from each party, unless otherwise authorized by the arbitrator upon a showing of good cause. 

  

	C.	Within 120 days of the date of determination of the arbitrator, the hearing will be completed and a written award will be issued by the arbitrator. The arbitrator will have all the powers conferred on the arbitration
panel as provided in the ARBITRATION ARTICLE, and said Article will apply to all matters not specifically addressed above. 

ARTICLE XXXV 
 SERVICE OF
SUIT 
 (This Article is applicable if the subscribing reinsurer is not domiciled in the United States of America and/or is not authorised in any
State, Territory or District of the United States where authorization is required by insurance regulatory authorities. This Article is not intended to conflict with or override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.) 
  

	A.	In the event of the failure of the subscribing reinsurer to pay any amount claimed to be due hereunder, the subscribing reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of competent
jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the subscribing reinsurer’s rights to commence an action in any court of competent jurisdiction in the United States,
to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The subscribing reinsurer, once the appropriate court is
selected, whether such court is the one originally chosen by the Company and accepted by subscribing reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall comply with all requirements necessary to give said
court jurisdiction and, in any suit instituted against it upon this Contract, and shall abide by the final decision of such court or of any appellate court in the event of an appeal. 

  

					
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	B.	Service of process in such suit may be made upon the agent for the service of process (“agent”) named below, depending on the jurisdiction where the Company chooses to bring suit: 

 

	 	1.	If the suit is brought in the State of California, the law firm of Mendes and Mount, 601 South Figueroa Street, Suite 4676, Los Angeles, California 90017 shall be authorized and directed to accept service of process on
behalf of the subscribing reinsurer in any such suit; 

  

	 	2.	If the suit is brought in the State of New York, the law firm of Mendes and Mount, 750 Seventh Avenue, New York, New York 10019 shall be authorized and directed to accept service of process on behalf of the subscribing
reinsurer in any such suit; 

  

	 	3.	If the suit is brought in any state other than California or New York, either of the agents described in subparagraphs 1 or 2 above shall be authorized and directed to accept service of process on behalf of the
subscribing reinsurer in any such suit; or 

  

	 	4.	If the subscribing reinsurer has designated an agent in the subscribing reinsurer’s Interests and Liabilities Agreement attached hereto, then that agent shall be authorized and directed to accept service of process
on behalf of the subscribing reinsurer in any suit. However, if an agent is designated in the subscribing reinsurer’s Interests and Liabilities Agreement and the agent is not located in California as respects a suit brought in California or New
York as respects a suit brought in New York, in keeping with the laws of the states of California and New York which require that service be made on an agent located in the respective state if a suit is brought in that state, the applicable office
of Mendes and Mount stipulated in subparagraphs 1 and 2 above must be used for service of suit unless the provisions of paragraph C of this Article apply. 

  

	C.	Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefor, the subscribing reinsurer hereby designates the Superintendent, Commissioner or Director of
Insurance, or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceedings instituted by or on behalf
of the Company or any beneficiary hereunder arising out of this Contract, and hereby designates the above-named as the person to whom the said officer is authorized to mail such process or a true copy thereof. 

ARTICLE XXXVI 
 ENTIRE
AGREEMENT 
 This Contract shall constitute the entire agreement between the parties with respect to the business being reinsured hereunder. There
are no understandings between the parties other than as expressed in this Contract. Any change or modification to this Contract shall be null and void unless made by amendment to this Contract and signed by both parties. This Article shall not be
construed as limiting in any way the admissibility in the context of an arbitration or any other legal proceeding, evidence regarding the formation, interpretation, purpose or intent of this Contract. 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	25	  	12-31-13

 ARTICLE XXXVII 

MODE OF EXECUTION 
 This Contract may be executed
either by an original written ink signature of paper documents, by an exchange of facsimile copies showing the original written ink signature of paper documents, or by electronic signature by either party employing appropriate software technology as
to satisfy the parties at the time of execution that the version of the document agreed to by each party shall always be capable of authentication and satisfy the same rules of evidence as written signatures. The use of any one or a combination of
these methods of execution shall constitute a legally binding and valid signing of this Contract. This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

ARTICLE XXXVIII 

INTERMEDIARY 
 Willis Re Inc., 15305 North Dallas
Parkway, Suite 1100, Colonnade III, Addison, Texas 75001 is hereby recognized as the intermediary negotiating this Contract and through whom all communications relating thereto shall be transmitted to the Company or the Reinsurer. However, all
communications concerning accounts, claim information, funds and inquiries related thereto shall be transmitted to the Company or the Reinsurer through Willis Re Inc., 5420 Millstream Road, Suite 200, McLeansville, North Carolina 27301. Payments by
the Company to Willis Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by the Reinsurer to Willis Re Inc. shall be deemed to constitute payment to the Company only to the extent that such payments are actually received by
the Company. 
 IN WITNESS WHEREOF, the Company by its duly authorized representative has executed this Contract as of the date specified below:
 
 Signed this 15th day of January, 2014. 

AMERICAN INTERSTATE INSURANCE COMPANY 
 AMERICAN
INTERSTATE INSURANCE COMPANY OF TEXAS 
 SILVER OAK CASUALTY, INC. 
  

			
	By	 	 /s/ C. Allen Bradley, Jr

	Print Name	 	C. Allen Bradley, Jr
	Title	 	Chairman & CEO

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	26	  	12-31-13

 NUCLEAR INCIDENT EXCLUSION CLAUSE—LIABILITY—REINSURANCE—U.S.A. 

(1) This reinsurance does not cover any loss or liability accruing to the Reassured as a member of, or subscriber to, any association of insurers or
reinsurers formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber or association. 
 (2)
Without in any way restricting the operation of paragraph (1) of this Clause it is understood and agreed that for all purposes of this reinsurance all the original policies of the Reassured (new, renewal and replacement) of the classes specified in
Clause II of this paragraph (2) from the time specified in Clause III in this paragraph (2) shall be deemed to include the following provision (specified as the Limited Exclusion Provision): 

Limited Exclusion Provision.* 
  

	I.	It is agreed that the policy does not apply under any liability coverage, 

	 	to	(injury, sickness, disease, death or destruction, 

 (bodily injury or property damage

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

 

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

  

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

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

(b) become effective before that date and contain the Limited Exclusion Provision set out above; provided this paragraph
(2) shall not be applicable to Family Automobile Policies, Special Automobile Policies, or policies or combination policies of a similar nature, issued by the Reassured on New York risks, until 90 days following approval of the Limited
Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
 (3) Except for those classes of policies specified in Clause II of
paragraph (2) and without in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and
replacement) affording the following coverages: 
 Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners
or Contractors (including railroad) Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile Liability (including Massachusetts
Motor Vehicle or Garage Liability) 
 shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3),
the following provision (specified as the Broad Exclusion Provision): 
 Broad Exclusion Provision.* 

It is agreed that the policy does not apply: 
  

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

 (bodily
injury or properly damage 
 (a) with respect to which an insured under the policy is also an insured under a nuclear energy liability
policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada or would be an insured under any such policy but for its termination upon exhaustion of its limit
of liability; or 
 (b) resulting from the hazardous properties of nuclear material and with respect to which (1) any person or
organisation is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States
of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 
  

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to (immediate medical or 

surgical relief, 
 (first
aid, 
 to expenses incurred with respect 

to (bodily injury, sickness, disease or death 

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

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

(bodily injury or property damage 

resulting from the hazardous properties of nuclear material, if 

(a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been
discharged or dispersed therefrom; 
 (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an insured; or 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	1	  	12-31-13

	 	(c)	the (injury, sickness, disease, death or destruction 

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

(injury to or destruction of property at such nuclear facility 

(property damage to such nuclear facility and any property thereat. 
  

	IV.	As used in this endorsement: 

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

(b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing
spent fuel, or (3) handling, processing or packaging waste, 
 (c) any equipment or device used for the processing, fabricating or
alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250 grams of uranium 235, 
 (d) any structure, basin, excavation, premises or place prepared or used
for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; “nuclear reactor” means any apparatus designed or
used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; 
 (With
respect to injury to or destruction of property, the word “injury” or “destruction”  
 (“property
damage” includes all forms of radioactive contamination of property  
 (Includes all farms of radioactive contamination of
property. 
  

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

 (i) Garage and Automobile Policies issued by the Reassured on
New York risks, or 
 (ii) statutory liability insurance required under Chapter 90, General Laws of Massachusetts, until 90 days following
approval of the Broad Exclusion Provision by the Governmental Authority having jurisdiction thereof. 
 (4) Without in any way restricting the operation of
paragraph (1) of this Clause, it is understood and agreed that paragraphs (2) and (3) above are not applicable to original liability policies of the Reassured in Canada and that with respect to such policies this Clause shall be deemed to
include the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian Underwriters’ Association of the Independent Insurance Conference of Canada. 
  

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

 21/9/67 

N.M.A. 1590 
 BRMA35A 

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL
Contract
	  	2	  	12-31-13

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 UNDERWRITERS AT LLOYD’S, LONDON 

AS SET FORTH IN THE SIGNING PAGE(S) ATTACHED HERETO 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DcRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DcRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. The Subscribing Reinsurer’s percentage share shall equal the sum of
the final signed lines percentage share(s) as executed on the attached signing page(s) for Lloyd’s Underwriters. 
 This Agreement shall commence at
12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1, 2015. 
 The share of the
Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and
liabilities of the other subscribing reinsurers. 
 IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed
this Agreement per the attached signing page(s). 
  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  	

	  	12-31-13

 INTERESTS AND LIABILITIES AGREEMENT 

(the “Agreement”) 
 of

 HOUSTON CASUALTY COMPANY 

(the “Subscribing Reinsurer”) 

with respect to the 
 CASUALTY
CATASTROPHE EXCESS OF LOSS 
 REINSURANCE CONTRACT 

(the “Contract”) 
 issued
to 
 AMERICAN INTERSTATE INSURANCE COMPANY 

DeRidder, Louisiana 
 and

 AMERICAN INTERSTATE INSURANCE COMPANY OF TEXAS 

Austin, Texas 
 and

 SILVER OAK CASUALTY, INC. 

DeRidder, Louisiana 
 and

 any other insurance companies which are now or hereafter come under the ownership, 

control or management of Amerisafe Insurance Group 

(collectively the “Company”) 
 The
Subscribing Reinsurer shall have a 10.00% share in the interests and liabilities of the “Reinsurer” as set forth in the Contract attached hereto and executed by the Company. 

This Agreement shall commence at 12:01 a.m., Standard Time, January 1, 2014 and shall continue in force until 12:01 a.m., Standard Time, January 1,
2015. 
 The share of the Subscribing Reinsurer in the interests and liabilities of the “Reinsurer” shall be several and not joint with the share
of any other subscribing reinsurer. In no event shall the Subscribing Reinsurer participate in the interests and liabilities of the other subscribing reinsurers. 

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized representative has executed this Agreement as of the date specified below: 

Signed this 13th day of January, 2014. 

 

			
	HOUSTON CASUALTY COMPANY
		
	By	 	 /s/ Stephen Kempton

	Print Name	 	Stephen Kempton
	Title	 	Accident and Health Underwriter

  

					
	 American Interstate Insurance Company

93948003-14 (Eff: 1-1-14)
 Casualty Catastrophe XOL -
I&L
	  		  	12-31-13

 

 
  

			
	UMR
 Reinsured
 Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

					
	Reinsurer and Reference:	 	

			
	Written line(s):	 	12 1⁄2%	 	Ref. 1131360114FY
		
	Final signed line(s):	 	 10%

		
	Line Condition(s):	 	

  

					
	Signed in 	  	

	  	this 27th day of December 2013

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 

 
  

	UMR	: B080110074N14 

	Reinsured	: American Interstate Insurance Company 

	Type	: Casualty Catastrophe Excess of Loss 

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

					
	Reinsurer and Reference:	  	

  

					
	Written line(s):	  	20%	  	Ref.: 51331714AA

  

					
	Final signed line(s):	  	10%	  	

 Line Condition(s): 
  

					
	Signed in	 	

	  	this 27th day of December 2013

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 

 
  

	UMR	: B080110074N14 

	Reinsured	: American Interstate Insurance Company 

	Type	: Casualty Catastrophe Excess of Loss 

  

B.I.P.A.R. Statement 
 In a
co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 
 Reinsurers may not
seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 
  

					
	Reinsurer and Reference:	 	

	 	

		 	Markel at Lloyd’s – Zurich Branch	 	
		 	Branch of Alterra UK Underwriting Services Ltd
		 	for and on behalf of Lloyd’s Syndicate 3000

  

					
	Written line(s):	 	 20%
	 	 Ref.: CA7542A14T2A

			
	Final signed line(s):	 	 10%
	 	
			
	Line Condition(s):	 		 	

  

					
	Signed in	 	

	  	this 27 day of December 2013

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

					
		  		  	

	UMR	  	: B080110074N14	  	
	Reinsured	  	: American Interstate Insurance Company	  	
	Type	  	: Casualty Catastrophe Excess of Loss	  	

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favorable as those which others subsequently achieve during the placements. 

 

					
	Reinsurer and Reference:	 	

  

					
	Written line(s):	 	7.5%	  	Ref.: 000028011400

  

					
	Final signed line(s):	 	7.5%	  	

  

					
	Line Condition(s):	 		  	

  

					
	Signed at	 	

	 	this 27th day of December 2013

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 

 
  

			
	UMR
 Reinsured
 Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

 B.I.P.A.R. Statement 

In a co-reinsurance placement, following reinsurers may, but are not obliged to, follow the premium charged by the lead reinsurer. 

Reinsurers may not seek to guarantee for themselves terms as favourable as those which others subsequently achieve during the placement. 

 

					
	Reinsurer and Reference:	 	

  

					
	Written line(s):	 	12.5%	 	Ref.:
			
	Final signed line(s):	 	10%	 	
			
	Line Condition(s):	 		 	

 Signed in London this 27th day of December 2013 

  
 Willis Limited,
Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 
 Registered office: 51 Lime Street, London EC3M 7DQ.
Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 INFORMATION 

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

					
	 ESTIMATED

PREMIUM
 INCOME:
	  	USD 330,095,955	  	

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 SECURITY DETAILS 

 

			
	 REINSURERS

LIABILITY:
	  	Reinsurers Liability Clause LMA3333
		  	  
 Reinsurer’s liability several not joint.

		  	  
 The liability of a Reinsurer under this contract is several and not
joint with other Reinsurers party to this contract. A Reinsurer is liable only for the proportion of liability it has underwritten. A Reinsurer is not jointly liable for the proportion of liability underwritten by any other Reinsurer. Nor is a
Reinsurer otherwise responsible for any liability of any other Reinsurer that may underwrite this contract.
  

The proportion of liability under this contract underwritten by a Reinsurer (or, in the case of a Lloyd’s syndicate, the total of the proportions
underwritten by all the members of the syndicate taken together) is shown next to its stamp. This is subject always to the provision concerning “signing” below.
  

In the case of a Lloyd’s syndicate, each member of the syndicate (rather than the syndicate itself) is a Reinsurer. Each member has underwritten a
proportion of the total shown for the syndicate (that total itself being the total of the proportions underwritten by all the members of the syndicate taken together). The liability of each member of the syndicate is several and not joint with other
members. A member is liable only for that member’s proportion. A member is not jointly liable for any other member’s proportion. Nor is any member otherwise responsible for any liability of any other Reinsurer that may underwrite this
contract. The business address of each member is Lloyd’s, One Lime Street, London EC3M 7HA. The identity of each member of a Lloyd’s syndicate and their respective proportion may be obtained by writing to Market Services, Lloyd’s, at
the above address.
  
 Proportion of liability

 
 Unless there is “signing” (see below), the proportion of liability under this
contract underwritten by each Reinsurer (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of the syndicate taken together) is shown next to its stamp and is referred to as its “written
line”.
  
 Where this contract permits, written lines, or certain written lines, may
be adjusted (“signed”). In that case a schedule is to be appended to this contract to show the definitive proportion of liability under this contract underwritten by each Reinsurer (or, in the case of a Lloyd’s syndicate, the total of
the proportions underwritten by all the members of the syndicate taken together). A definitive proportion (or, in the case of a Lloyd’s syndicate, the total of the proportions underwritten by all the members of a

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 SECURITY DETAILS 

 

			
		  	 Lloyd’s syndicate taken together) is referred to as a “signed line”. The signed lines shown in the schedule will prevail over
the written lines unless a proven error in calculation has occurred.
  
 Although
reference is made at various points in this clause to “this contract” in the singular, where the circumstances so require this should be read as a reference to contracts in the plural.

		
	ORDER HEREON:	  	47.50%
		
	BASIS OF WRITTEN LINES:	  	Percentage of Whole
		
	SIGNING PROVISIONS:	  	 In the event that the placement of this Reinsurance is not completed by the commencement date of the period of Reinsurance then all lines
written by that date, at the Reinsured’s option, may be signed in full. If such written lines hereon exceed 100% of the order, all lines written will be signed down in equal proportions so that the aggregate signed lines are equal to 100% of
the order.
  
 Whether before or after inception of the period of Reinsurance, the
Reinsured may elect for the disproportionate signing of Reinsurer’s lines without further specific agreement of Reinsurers.

		
	LINE CONDITIONS:	  	None unless specified individually by Reinsurers hereon under their written participations.

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

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:	  	

	BASIS OF AGREEMENT TO CONTRACT CHANGES:	  	 Reinsurers hereon authorise the Slip Leader to be the sole judge in determining whether any future alterations to this Reinsurance
Agreement should be agreed by the Slip Leader only and copied to other Reinsurers, or agreed by all Reinsurers other than risks accepted pursuant to Special Acceptance Provision (if any).

		
		  	Subject to the foregoing:
		  	  
 A.  In respect of
each Reinsurer which at any time has the ability to send and receive ACORD messages:
  

i.  Any contract change will be submitted by Willis Limited for agreement via an ‘ACORD
message’;
  
 ii. any contract change
which requires notification will be notified by Willis Limited via an ‘ACORD message,;
  

iii. It is understood and agreed that whilst any contract change may be negotiated and agreed in any legally
effective manner (and will be binding at that stage), such agreement of any contract change will be confirmed by each such Reinsurer via an appropriate ‘ACORD message’. For the avoidance of any doubt, no further duty of disclosure arises
in relation to any such confirmation.
  

B.  In respect of each Reinsurer who does not have the ability to send and receive ACORD messages:

 
 i.  It is understood and agreed that
whilst any contract change may be negotiated and agreed in any legally effective manner (and will be binding at that stage), any such contract change will be submitted/notified by Willis Limited electronically via email or other electronic
means;

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

SUBSCRIPTION AGREEMENT 
  

			
		  	  
 ii. Such binding agreement
of any contract change will be confirmed by each such Reinsurer via email or other electronic means. For the avoidance of any doubt, no further duty of disclosure arises in relation to any such confirmation.

		
	 BASIS OF CLAIMS

AGREEMENT:
	  	  
 Claims review, as required by Slip Leader for the benefit of and at the
cost to current Reinsurers hereon. Settlement of fees will be by the parties authorising the claims review. In the event of cancellation of the Treaty, fees to be borne by final contract year.

 
 Lloyd’s Reinsurers:

 
 Claims to be managed in accordance with The Lloyd’s Claims Scheme (Combined), or as
amended or any successor thereto
  
 IUA Company Reinsurers:

 
 Claims to be managed in accordance with IUA (or successor organisations) Claims Agreement
practices.
  
 Lloyd’s Reinsurers / IUA Company Reinsurers:

 
 In respect of any Bureau claims settlements hereunder, Reinsurers who made their
acceptance under the Bureau schemes agree to claims on a projected payment basis on the agreement of the respective Bureau Leading Reinsurer only. Any further payments under this provision shall be agreed by the respective Bureau Leading Underwriter
only. This will be binding on all following Lloyds and IUA Reinsurers and Xchanging Inssure Services (XIS) (or successor organisations).
  

Non-Bureaux Reinsurers:
  

All claims shall be agreed by each Reinsurer according to their own practices.
  

Reinsurers agree to arrange simultaneous settlement by money transfer to broker account three days before date Reinsured specifies they will settle, given
seven days advance notice of same.

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

SUBSCRIPTION AGREEMENT 
  

					
	CLAIMS AGREEMENT PARTIES:	  	 Lloyd’s Reinsurers:
  

The Leading Lloyd’s syndicate and, where required by the applicable Claims Scheme, the second Lloyd’s syndicate and/or the Scheme Service
Provider.

		  	Lloyd’s Leader:	  	

		  	The second Lloyd’s syndicate is:	  	CSL 1084
		  	  
 IUA Company Reinsurers:

 
 Those companies acting in accordance with the IUA (or successor organisations) claims
agreement practices.
  
 Non-Bureaux Reinsurers:

 
 All claims shall be agreed by each Reinsurer in respect of their own participation.

 

	 CLAIMS ADMINISTRATION:
	  	  
 Lloyd’s Reinsurers:

 
 Willis Limited and Reinsurers agree that any claims hereunder (including any claims
related costs/fees) that are in scope and supported by Electronic Claims File (ECF) may be notified and administered via the Electronic Claims File (ECF) system with any payment(s) processed via CLASS.

 
 Lloyd’s Reinsurers authorise Xchanging Claims Services to waive the deferred
settlement system in the event of presentation of settlement request with first advice.
  

IUA Company Reinsurers:
  

All IUA Company Reinsurers agree to respond to claims via CLASS (unless otherwise specified here).

 
 Willis Limited and Reinsurers agree that any claims hereunder (including any claims
related costs/fees) that are in scope and supported by Electronic Claims File (ECF) may be notified and administered via the Electronic Claims File (ECF) system with any payment(s) processed via CLASS.

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

SUBSCRIPTION AGREEMENT 
  

			
		  	 Non-Bureaux Reinsurers:
  

Each Reinsurer agrees to receive all claims via Broker visit, email, repositories, facsimile or letter.

		
	RULES AND EXTENT OF ANY OTHER DELEGATED CLAIMS AUTHORITY:	  	None, unless otherwise specified
		
	SETTLEMENT DUE DATE:	  	28 February 2014
		
	 INSTALMENT
 PREMIUM PERIOD
OF CREDIT:
	  	30 days.
		
	ADJUSTMENT PREMIUM PERIOD OF CREDIT:	  	120 days.
		
		  	
		
	BUREAUX ARRANGEMENTS:	  	 Processing Documents:
  

Xchanging Ins-sure Services (XIS) are authorised to accept Additional Premium, Return Premium, Premium Adjustment and Profit Commission figures, where
applicable, without certification or production of letters or other documents and enter in accordance with the figures shown thereon, without Reinsurers agreement.
  

Reinsurers agree to the use of a copy (including a photocopy) or duplicate of the applicable Slip or Wording for the collection and taking down of Additional
Premium(s), Return Premium(s), Premium Adjustment(s) and Profit Commission(s).

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

SUBSCRIPTION AGREEMENT 
  

			
		  	 Presentation of premium documentation to XIS by the Settlement Due Date(s) is deemed to be in compliance with the payment provisions.

 
 Reinsurers agree that Willis Limited may pay de-linked premiums for this Agreement at
different times.
  
 Premium Processing Clause—LSW 3003 (14/12/09)

 
 Where the premium is to be paid through Xchanging Ins-sure Services (XIS), payment to
Reinsurers will be deemed to occur on the day that a delinked premium is released for settlement by the Appointed Broker or in the case of non-delinked premiums, on the day that the error-free Premium Advice Note (PAN) is submitted to XIS.

 
 Where premiums are to be paid by instalments under the Deferred Account Scheme, and the
Appointed Broker does not receive the premium in time to comply with the agreed settlement date for the second or subsequent instalment, the Appointed Broker, if electing to suspend the automatic debiting of the relevant deferred instalment, shall
advise the Slip Leader in writing and instruct XIS accordingly. XIS shall then notify Reinsurers. Payment to any entity within the same group of companies as the Appointed Broker will be deemed to be payment to the Appointed Broker.

 
 Nothing in this clause shall be construed to override the terms of any Premium Payment
Warranty or Clause or any Termination or Cancellation provision contained in this contract. Furthermore, any amendment to the Settlement Due Date of a premium instalment as a result of the operation of this Premium Processing Clause shall not amend
the date that such instalment is deemed to be due for the purposes of such Premium Payment Warranty or Clause or Termination or Cancellation provision unless (Re) Insurers expressly agree otherwise.

 
 Appointed Broker: Willis Limited

LSW 3003 14/12/09
  

If the Settlement Due Date falls on a Saturday, a Sunday or a Bank Holiday, it is agreed that the Settlement Due Date shall be changed to the first following
working day.
  
 XIS are authorised to:

 

•       sign policies in multiple copies

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 CONTRACT ADMINISTRATION AND ADVISORY SECTIONS 

FISCAL AND REGULATORY 
  

			
	TAXES PAYABLE BY REINSURER(S):	  	As stated under the heading “Taxes payable by Reinsurer(s) and Administered by the Reinsured or their Agent”.
		
	COUNTRY OF ORIGIN	  	USA
		
	OVERSEAS BROKER	  	 Willis Re. Inc.
 15305 North Dallas
Parkway
 Suite 1100
 Collonnade III

Addison
 Texas

75001
 USA

		
	 U.S.

CLASSIFICATION
	  	U.S Reinsurance
		
	NAIC CODES:	  	NAIC number: 12228; 31895; 26869
		
	ALLOCATION OF PREMIUM TO CODING:	  	

		
	REGULATORY CLIENT CLASSIFICATION:	  	Reinsurance.

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and Wales 

 

 
  

			
	 UMR
 Reinsured

Type
	  	 : B080110074N14
 : American Interstate Insurance
Company
 : Casualty Catastrophe Excess of Loss

  

 BROKER REMUNERATION AND DEDUCTIONS 

 

			
	FEE PAYABLE BY	  	No
	 REINSURED / CLIENT?
  

TOTAL BROKERAGE:
	  	15%
		
	OTHER DEDUCTIONS FROM PREMIUM:	  	None.

  
 SB / 27-12-13 

Willis Limited, Lloyd’s broker, authorised and regulated by the Financial Conduct Authority. 

Registered office: 51 Lime Street, London EC3M 7DQ. Registered number 181116 England and WalesEX-10.1

 EXHIBIT 10.1 

EXECUTION VERSION 
 Amendment
No. 1 (this “Amendment”) dated as of April 30, 2014, among CLAIRE’S, INC., a Delaware corporation (“Holdings”), CLAIRE’S STORES, INC., a Florida corporation (the “Borrower”), the
LENDERS party hereto and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH as administrative agent (the “Administrative Agent”) and as Issuing Bank under the Amended and Restated Credit Agreement, dated as of September 20, 2012, among
Holdings, the Borrower, the Administrative Agent, the Lenders party thereto from time to time and the agents, arrangers and bookrunners party thereto, as in effect on the date hereof (the “Credit Agreement”). Capitalized terms used
but not defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
 WHEREAS, Section 9.08 of the Credit
Agreement provides that Holdings, the Borrower, the Required Lenders and the Issuing Bank may enter into this Amendment; 
 WHEREAS,
Holdings, the Borrower and the Required Lenders desire to amend the Credit Agreement on the terms set forth herein 
 SECTION 1.
Amendments to Credit Agreement. Effective as of the Amendment No. 1 Effective Date (as defined below), the Credit Agreement is hereby amended as follows: 

(a) The definition of “Letter of Credit Sublimit” is amended by inserting the words “or such lesser amount as may be mutually
agreed in writing from time to time by the Borrower and the Administrative Agent” immediately following the parenthetical appearing in such definition. 

(b) Section 6.11 of the Credit Agreement is hereby deleted in its entirety and replaced with the following: 

“SECTION 6.11 Total Net Secured Leverage Ratio. Permit the Total Net Secured Leverage Ratio to exceed 6.00 to 1.00 as of (i) the last day
of any fiscal quarter when the Revolving Facility Credit Exposure outstanding exceeds $15 million as of such day, and (ii) on the date of any Borrowing or issuance, amendment, extension or renewal of a Letter of Credit (each such date hereinafter
being referred to as an “Interim Testing Date“) if, after giving effect thereto the Revolving Facility Credit Exposure outstanding shall exceed $15 million; provided, however, that in the case of clause (ii), the Total Net Secured Leverage
Ratio shall be calculated as of the last day of the most recent fiscal quarter for which financial statements have been or were required to be delivered pursuant to Section 5.04(a) or (b) on or prior to such Interim Testing Date but for purposes of
such calculation the amount of Senior Secured Debt as of the last day of such fiscal quarter shall be adjusted by removing all Revolving Facility Credit Exposure outstanding at such last day of such fiscal quarter (to the extent otherwise included
in 

  
 -1- 

 
Senior Secured Debt as of the last day of such fiscal quarter) and adding in the Revolving Facility Credit Exposure outstanding on such Interim Testing Date (after giving effect to any Borrowing
on such Interim Testing Date) to the extent such Revolving Facility Credit Exposure would otherwise be included in Senior Secured Debt as of such date. For the avoidance of doubt, in the case of clause (ii), the Secured Leverage Ratio shall be
calculated without including any proceeds of any Borrowing on the applicable Interim Testing Date in Unrestricted Cash. 
 SECTION 2.
Representations and Warranties. Holdings and the Borrower, jointly and severally represent that, both immediately before and immediately after giving effect to Amendment: 

(a) The representations and warranties set forth in the Loan Documents are true and correct in all material respects, with the same effect as
though made on and as of such times, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such
earlier date); and 
 (b) no Default or Event of Default exists. 

SECTION 3. Conditions. The amendments set forth in Section 1 shall become effective on the date (“Amendment No. 1
Effective Date”) when 
 (a) the Administrative Agent (or its counsel) shall have received from the Administrative Agent, Holdings,
the Borrower, the Issuing Bank and Lenders constituting the Required Lenders either (i) a counterpart of this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include
telecopy or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Amendment; and 

(b) the Administrative Agent shall have received, for the account of each Lender that has consented to this Amendment prior to noon, New York
City time, on April 30, 2014 a fee equal to 0.15% of the aggregate principal amount of such Lender’s Revolving Facility Commitment. 

SECTION 4. Certain Consequences of Effectiveness. On and after the Amendment No. 1 Effective Date, references in the Credit
Agreement to this “Agreement” and references in the Loan Documents to the “Credit Agreement” shall refer to the Credit Agreement as amended by Amendment. Except as expressly set forth herein, this Amendment shall not constitute
an amendment or waiver of any provision of the Credit Agreement or any other Loan Document all of which shall remain in full force and effect. 

SECTION 5. Applicable Law; Waiver of Jury Trial. This Amendment shall constitute a “Loan Document” for purposes of the Credit
Agreement. The provisions of Section 9.07, 9.11 and 9.15 of the Credit Agreement are incorporated herein mutatis mutandis. 

[signature pages follow] 
  

  
 -2- 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
respective authorized officers as of the day and year first written above. 
  

			
	CLAIRE’S, INC.
		
	By:	 	/s/ J. Per Brodin
		 	Name: J. Per Brodin
		 	Title: EVP/CFO
		
		 	
	CLAIRE’S STORES, INC.
		
	By:	 	/s/ J. Per Brodin
		 	Name: J. Per Brodin
		 	Title: EVP/CFO
		 	

  
  
  

 
			
	 CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH, as Administrative Agent, Issuing Bank

and a Lender

		
	By:	 	/s/ Michael Spaight
		 	Name: Michael Spaight
		 	Title: Authorized Signatory
		
		 	
	
		
	By:	 	/s/ Whitney Gaston
		 	Name: Whitney Gaston
		 	Title: Authorized Signatory
		
		 	

  
  
  

 
			
	GOLDMAN SACHS BANK USA, as a Lender
		
	By:	 	/s/ Michelle Latzoni
		 	 Name: Michelle Latzoni
 Title: Authorized
Signatory

  

 
			
	ROYAL BANK OF CANADA, as a Lender
		
	By:	 	/s/ Lez Vowell
		 	 Name: Lez Vowell
 Title: Authorized
Signatory

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	/s/ Charles K. Holmes
		 	 Name: Charles K. Holmes
 Title: Executive
Director

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