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Exhibit 10.2    
    

GUY CARPENTER  

WORKERS' COMPENSATION TERRORISM CATASTROPHE EXCESS OF LOSS

REINSURANCE CONTRACT  

issued
to 

ZENITH
INSURANCE COMPANY

Woodland Hills, California

ZNAT INSURANCE COMPANY

Woodland Hills, California

ZENITH STAR INSURANCE COMPANY

Austin, Texas 

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SCHEDULE OF REINSURERS    
    

ZENITH INSURANCE COMPANY

ZNAT INSURANCE COMPANY

ZENITH STAR INSURANCE COMPANY

WORKERS' COMPENSATION TERRORISM CATASTROPHE

EXCESS OF LOSS REINSURANCE CONTRACT

EFFECTIVE:
January 1, 2004 

	Reinsurer
 
	 	FEIN #
	 	NAIC #
	 	1st Excess

Signed %
	 	2nd Excess

Signed %
	 	3rd Excess

Signed %
	 
	Willis Corroon Group Services Limited	 	 	 	 	 	 	 	 	 	 	 
	 	Lloyd's Underwriter Syndicate No. 0435 FDY	 	AA-1126435	 	 	 	0.00	%	1.25	%	1.167	%
	 	Lloyd's Underwriter Syndicate No. 0727 SAM	 	AA-1126727	 	 	 	10.00	%	5.00	%	0.000	%
	 	Lloyd's Underwriter Syndicate No. 2987 BRT	 	AA-1128987	 	 	 	10.00	%	5.00	%	9.333	%
	 	Aspen Insurance UK Limited	 	AA-1120337	 	 	 	0.00	%	3.75	%	7.000	%
	Ace Tempest Re USA Inc. o/b/o Ace P&C Ins Co	 	06-0237820	 	20699	 	25.00	%	10.00	%	0.000	%
	Ace Tempest Reinsurance Limited	 	AA-3190770	 	 	 	0.00	%	0.00	%	25.000	%
	Arch Reinsurance Company	 	06-1430254	 	10348	 	10.00	%	7.50	%	10.000	%
	AXIS Specialty Limited	 	AA-3194139	 	 	 	45.00	%	7.50	%	25.000	%
	Swiss Re U/W (US) o/b/o Swiss Re Amer. Corp	 	13-1675535	 	25364	 	0.00	%	10.00	%	22.500	%
	

TOTAL:	
 	

 	
 	

 	
 	

100.00	
%	

50.00	
%	

100.000	
%

2

 

GUY CARPENTER  

WORKERS' COMPENSATION TERRORISM CATASTROPHE EXCESS OF LOSS

REINSURANCE CONTRACT  

TABLE OF CONTENTS  

	Article
 
	 	 
	 	Page

	 	 	Preamble	 	4
	1	 	Business Reinsured	 	4
	2	 	Cover	 	4
	3	 	Term	 	5
	4	 	Territory	 	5
	5	 	Warranties	 	5
	6	 	Excess Recovery—Terrorism	 	6
	7	 	Exclusions	 	6
	8	 	Premium	 	8
	9	 	Reinstatement	 	8
	10	 	Definitions	 	9
	11	 	Net Retained Lines	 	10
	12	 	Liability of Reinsurer	 	10
	13	 	Currency	 	10
	14	 	Illegality	 	10
	15	 	Loss Reserve Funding	 	11
	16	 	Taxes	 	11
	17	 	Notice of Loss and Loss Settlements	 	12
	18	 	Offset	 	12
	19	 	Commutation	 	12
	20	 	Excess of Policy Limits	 	13
	21	 	Extra Contractual Obligations	 	13
	22	 	Delay, Omission or Error	 	14
	23	 	Access to Records	 	14
	24	 	Arbitration	 	14
	25	 	Service of Suit	 	15
	26	 	Insolvency	 	16
	27	 	Intermediary	 	16
	 	 	Company Signing Block	 	17

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   WORKERS' COMPENSATION TERRORISM CATASTROPHE EXCESS OF LOSS

REINSURANCE CONTRACT  

        This Contract is made and entered into by and between the ZENITH INSURANCE COMPANY and ZNAT INSURANCE COMPANY, both of Woodland Hills, California, and ZENITH STAR
INSURANCE COMPANY, Austin, Texas, and any and/or all of the subsidiary and/or affiliated companies which are or may hereafter be under the management of the Company (hereinafter together called the
"Company") and the Subscribing Reinsurer specifically identified in the Interests and Liabilities Agreement attached to and forming part of this Contract (hereinafter called the "Reinsurer"). 

        It
is understood and agreed that whenever the term "Company" is used in this Contract, such term shall be held to include any and/or all of the subsidiary and/or affiliated companies
which are or may hereafter be under the management of the Company provided, however, that prior notice be given to the Reinsurer of any such subsidiary and/or affiliated companies which may hereafter
come under the management of the Company prior to any risk attaching hereunder, with full particulars as to how such inclusion is likely to affect this Contract. In the event of either party
maintaining that such inclusion calls for alteration in existing terms, and an agreement not being arrived at, then the business of such included Company is covered only for a period of sixty days
after notice to the Company that the Reinsurer does not wish to cover the business so included. 

        It
is agreed that the rights and liabilities of the parties hereto shall be determined as though any existing internal pooling agreements or internal reinsurance arrangements among the
companies included within the definition of "Company," or as they may be amended from time to time, were non-existent. 

ARTICLE 1  

BUSINESS REINSURED  

        This Contract is to indemnify the Company in respect of the net excess liability as a result of any loss or losses which may occur during the term of this
Contract under any Policies covering business underwritten and classified by the Company as Workers' Compensation and/or Employer's Liability, and only for Acts of Terrorism as defined herein, in
force at the inception of this Contract, or written or renewed during the term of this Contract by or on behalf of the Company, subject to the terms and conditions herein contained. 

        It
is understood and agreed that the indemnity afforded by this Contract shall apply to each and every Loss Occurrence, regardless of the number of Policies under which such loss is
payable or the number of different interests insured. 

ARTICLE 2  

COVER  

        The Reinsurer shall be liable in respect of each and every Loss Occurrence, for 100% of the Ultimate Net Loss over and above the initial Ultimate Net Loss
Retention(s) as set forth in the 

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schedule
below, for each and every Loss Occurrence, subject to a limit of liability to the Reinsurer as set forth in the schedule below, for each and every Loss Occurrence: 

	Layer
 
	 	Retention

Ultimate Net Loss in respect of each

and every Loss Occurrence
	 	Reinsurer's Limits of Liability

In respect of each and every

Loss Occurrence

	First Excess	 	$	10,000,000	 	$	10,000,000
	Second Excess	 	$	20,000,000	 	$	20,000,000
	Third Excess	 	$	40,000,000	 	$	38,000,000

        The
Company shall retain net for its own account the first $10,000,000 Ultimate Net Loss in respect of each Loss Occurrence. Nevertheless, the Company is permitted to carry underlying
reinsurance of an automatic nature in respect of its net retention; the cost of such reinsurance shall be borne solely by the Company, and recoveries thereunder shall inure to its sole benefit. 

        As
respects the Second and Third Excess Layers of this Contract, recoveries from underlying layers will not be deducted when establishing Ultimate Net Loss for successive layers for
purposes of this Article. 

ARTICLE 3  

TERM  

        This Contract shall become effective at 12:01 a.m., Pacific Standard Time, January 1, 2004, and shall remain in full force and effect for one year,
expiring 12:01 a.m., Pacific Standard Time, January 1, 2005. 

        If
coverage under this Contract expires while a loss covered hereunder is in progress, it is agreed that, subject to the other conditions of this Contract, the Reinsurer shall be liable
for its proportion of the entire loss resulting from such occurrence for which the Company is liable up to the limit of this Contract. 

        Reinsurance
hereunder shall apply only to those losses occurring during the term of this Contract and which are reported to the Reinsurer prior to January 1, 2012. 

ARTICLE 4  

TERRITORY  

        This Contract will cover wherever the Company's Policies cover. 

ARTICLE 5  

WARRANTIES  

        It is warranted for purposes of this Contract that: 

	A.
	The
maximum amount which any one claimant can contribute to the Ultimate Net Loss from any one Loss Occurrence resulting from an Act of Terrorism is $3,000,000, or so deemed. The
maximum any one life is to be calculated from the "ground up;" not within the layer(s).

	B.
	As
respects Employer's Liability, the Company's maximum Policy limit shall be $2,000,000, or so deemed. 

5

 
ARTICLE 6  

EXCESS RECOVERY—TERRORISM  

	A.
	A
pro rata share of the amount, if any, by which financial assistance paid to the Insurer under the Terrorism Risk Insurance Act of 2002 ("TRIA") for Acts of Terrorism occurring during
any one Program Year, combined with the Insurer's total private-sector reinsurance recoveries for such Acts of Terrorism, exceeds the amount of Insured Losses paid by the Insurer for such Acts of
Terrorism, shall be reimbursed by the Company to the Reinsurer. Such pro rata share shall be calculated by dividing:

	1.
	the
Reinsurer's payment under this Contract of Insured Losses for the Program Year; by

	2.
	the
Insurer's total private-sector reinsurance recoveries arising from all Act(s) of Terrorism covered under TRIA during the Program Year.

	B.
	Payment
shall be made as promptly as possible after the Company's receipt of any recovery in excess of its Insured Losses. The Company shall provide the Reinsurer with all necessary
data respecting the transactions covered under this Article.

	C.
	Such
payment to the Reinsurer shall apply unless disallowed by the U.S. Department of the Treasury.

	D.
	"Insurer"
means the insurance group of which the Company is a subsidiary or affiliate for purposes of TRIA. "Act of Terrorism," "Insured Losses" and "Program Year" shall follow the
definitions provided in TRIA. 

ARTICLE 7  

EXCLUSIONS  

        This Contract does not cover: 

	1.
	Excess
insurance.

	2.
	Assumed
Reinsurance.

	3.
	Occupational
Disease losses, unless such losses arise out of a sudden and accidental event not exceeding 48 hours in duration, which event also involves traumatic injuries
and/or death.

	4.
	In
respect of any Policy issued or reinsured by the Company to cover the following occupations or employments, except when such occupations or employments are incidental to and
form a minor part of the usual occupation or employment of the insured:

	a.
	Working
and navigation of any vessel, other than light craft on inland waterways and dredging.

	b.
	Manufacture,
storage, filling, breaking down, or transport of

	(i)
	.   Fireworks,
ammunition, fuse, cartridges, powder, nitroglycerine or any explosive.

	(ii)
	.  Gasses
and/or air under pressure in containers (but this Exclusion shall not apply to the storage or distribution of liquid petroleum gas by wholesale or retail dealers).

	c.
	Underground
coal mines.

	d.
	Manufacture
of celluloid and pyroxylin.

	e.
	Erection
of structural iron and/or steel works, unless in conjunction with ordinary construction of buildings. However, this Exclusion shall not apply to insureds engaged in steel work
where such steel work erection is not beyond twelve stories in height. 

6

 

	f.
	Contractors
doing building wrecking exclusively.

	g.
	Tunneling.

	h.
	Tower,
steeple and chimney shaft work.

	i.
	Operation
of dry docks, docks, quays, and wharves. Longshore and Harbor Workers' Compensation Act exposures are deemed to be incidental so long as Longshore and Harbor Workers'
Compensation Act Gross Net Earned Premium Income does not exceed 10% of the Company's total subject Gross Net Earned Premium Income.

	j.
	Construction
and maintenance of coffer dams.

	k.
	Subaqueous
construction and/or other subaqueous work.

	l.
	Oil
tanks and/or refining works.

	m.
	Aviation
risks involving flying risks, commercial airlines and/or airline crews. This exclusion does not apply to any "ground" personnel.

	n.
	Operations
involving atomic energy and nuclear fission.

	o.
	Operations
of a carrier by rail. 

In
connection with those occupations or employments enumerated under Item 4. above, if the Company, without the knowledge of and contrary to the instructions of its head office, is bound or is
unknowingly exposed on a risk falling otherwise within one of the Exclusions set forth, such risk is covered until the Company's head office receives knowledge thereof and, pending cancellation of
such risk by the Company, for a further period of thirty days after receipt of such knowledge by the head office of the Company. 

Where
Policies are issued by the Company through its membership of or participation in an assigned risk plan or similar facility which involves occupations or employments prohibited under Item 4.
above, such Policies are not excluded under this Contract. 

	5.
	Notwithstanding
the above and subject otherwise to the terms, conditions and limitations of this Contract, this Contract will not pay actual loss or damage caused by any act of
terrorism which does not meet the definition of "Act of Terrorism" set forth in the Terrorism Risk Insurance Act of 2002. 

In
no event will this Contract provide coverage for loss, damage, cost or expense directly or indirectly caused by, contributed to by, resulting from, or arising out of or in connection with
biological, chemical, or nuclear explosion, pollution, and contamination. 

	6.
	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, howsoever 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.

	7.
	War.

	8.
	Nuclear
Incidents.

	9.
	Professional
Sports Teams.

	10.
	Federal
Employers' Liability Act (FELA), except incidental. 

7

 
	11.
	Jones
Act, except incidental. 

ARTICLE 8  

PREMIUM  

	A.
	The
premium to be paid to the Reinsurer shall be calculated at the rates set out below multiplied by the Gross Net Earned Premium Income (as defined herein) of the Company for the term
of this Contract, subject to the annual minimum and deposit premiums stated hereunder: 

PREMIUM SCHEDULE  

	Layer
 
	 	Rate
	 	Deposit

Premium
	 	Minimum

Premium

	First Excess	 	0.14	%	$	1,400,000	 	$	1,120,000
	Second Excess	 	0.20	%	$	2,000,000	 	$	1,600,000
	Third Excess	 	0.23	%	$	2,280,000	 	$	1,824,000

        The
annual deposit premiums shall be payable to the Reinsurer by the Company in installments as follows: 

INSTALLMENT SCHEDULE  

	Layer
 
	 	January 1, 2004
	 	April 1, 2004
	 	July 1, 2004
	 	October 1, 2004

	First Excess	 	$	350,000	 	$	350,000	 	$	350,000	 	$	350,000
	Second Excess	 	$	500,000	 	$	500,000	 	$	500,000	 	$	500,000
	Third Excess	 	$	570,000	 	$	570,000	 	$	570,000	 	$	570,000

	B.
	As
soon as practicable following the expiration of this Contract, the Company shall forward to the Reinsurer a statement of its Gross Net Earned Premium Income for the term of the
Contract. The earned premium due to the Reinsurer shall be calculated for each Layer by multiplying the rates specified in the Premium Schedule above by the Company's Gross Net Earned Premium Income. 

Should
the premium so calculated exceed the deposit premium paid in accordance with Paragraph A. above, the Company will immediately pay the Reinsurer the difference. Should the premium so
calculated be less than the deposit premium paid in accordance with Paragraph A. above, the Reinsurer will immediately refund to the Company the difference, subject to the minimum premium
specified in the Premium Schedule. 

The
term "Gross Net Earned Premium Income" as used in this Contract shall mean the gross earned premium income of the Company for the business covered by this Contract, less premiums paid for
reinsurances, recoveries under which would inure to the benefit of this Contract. 

ARTICLE 9  

REINSTATEMENT  

        Loss payments under this Contract will reduce the limit of coverage afforded by the amounts paid, but the limit of coverage will be reinstated from the time of
the occurrence of the loss, and for each amount so reinstated, the Company agrees to pay, simultaneously with the Reinsurer's loss payment, an additional premium calculated at pro rata of the
Reinsurer's premium for the term of this Contract, being pro rata only as to the fraction of the face value of this Contract (i.e., the fraction of the Reinsurer's limit of liability outlined in the
COVER ARTICLE) so reinstated. Nevertheless, the 

8

 

Reinsurer's
liability hereunder shall never exceed the Reinsurer's limit of liability outlined in the COVER ARTICLE in respect of any one Loss Occurrence and, subject to the limit in respect of any
one Loss Occurrence, shall be further limited to the following amount(s) during the term of the Contract by reason of any and all claims arising hereunder: 

	Layer
 
	 	Reinsurer's limits of liability in respect of

any and all claims arising hereunder

	First Excess	 	$	20,000,000
	Second Excess	 	$	40,000,000
	Third Excess	 	$	76,000,000

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

ARTICLE 10  

DEFINITIONS  

	A.
	The
term "Loss Occurrence" as used in this Contract shall mean all loss, damage, costs or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting
from or arising out of or in connection with any "Act of Terrorism" as defined in the Terrorism Risk Insurance Act of 2002 (the "Act"), regardless of any other cause or event contributing concurrently
or in any other sequence to the loss.

	B.
	The
term "Ultimate Net Loss" as used in this Contract shall mean the actual loss paid by the Company or for which the Company becomes liable to pay, such loss to include 90% of any
Extra Contractual Obligation (and expense) as defined in the EXTRA CONTRACTUAL OBLIGATIONS ARTICLE, 90% of any Excess of Policy Limit as defined in the EXCESS OF POLICY LIMITS ARTICLE, expenses of
litigation and interest, claim-specific declaratory judgment expenses, and all other loss expense of the Company including subrogation, salvage, and recovery expenses (office expenses and salaries of
officials and employees not classified as loss adjusters are not chargeable as expenses for purposes of this paragraph), but salvages and all recoveries, including recoveries under all reinsurances
which inure to the benefit of this Contract (whether recovered or not), shall be first deducted from such loss to arrive at the amount of liability attaching hereunder. 

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

The
Company is permitted to carry underlying quota share and excess of loss reinsurance, recoveries under which shall inure to the Company's sole benefit and shall be disregarded for all purposes
hereof. 

For
purposes of this definition, the phrase "becomes liable to pay" shall mean the existence of a judgment which the Company does not intend to appeal, or a release has been obtained by the Company,
or the Company has accepted a proof of loss. 

The
phrase "claim-specific declaratory judgment expenses," as used in this Contract will mean all expenses incurred by the Company in connection with declaratory judgment actions brought to determine
the Company's defense and/or indemnification obligations that are allocable to specific Policies and claims subject to this Contract. Declaratory judgment expenses will be deemed to have 

9

 

been
incurred by the Company on the date of the original loss (if any) giving rise to the declaratory judgment action. 

Nothing
in this clause shall be construed to mean that losses are not recoverable hereunder until the Company's Ultimate Net Loss has been ascertained. 

	C.
	The
term "Policy" as used in this Contract shall mean any binder, Policy, or contract of insurance issued, accepted or held covered provisionally or otherwise, by or on behalf of the
Company. 

ARTICLE 11  

NET RETAINED LINES  

        This Contract applies only to that portion of any insurance which the Company retains net for its own account and in calculating the amount of any loss hereunder
and also in computing the amount or amounts excess of which this Contract attaches, only loss or losses in respect of that portion of any insurance which the Company retains net for its own account
shall be included. 

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

ARTICLE 12  

LIABILITY OF REINSURER  

        The liability of the Reinsurer shall follow that of the Company in every case and shall be subject in all respects to all the general and special stipulations,
clauses, waivers and modifications of the Company's Policy or Policies and any endorsements thereon. 

        The
Company shall be the sole judge as to what shall constitute a claim or loss covered under the Company's original Policy and as to the Company's liability thereunder and as to the
amount or amounts which it shall be proper for the Company to pay thereunder; and the Reinsurer shall be bound by the judgment of the Company as to the liability and obligation of the Company under
its original Policies. 

        Nothing
herein shall in any manner create any obligations or establish any rights against the Reinsurer in favor of any third parties or any persons not parties to this Contract. 

ARTICLE 13  

CURRENCY  

        The currency to be used for all purposes of this Contract shall be United States of America currency. 

ARTICLE 14  

ILLEGALITY  

        If any law or regulation of the Federal or State or Local Government of any jurisdiction in which the Company is doing business shall render illegal the
arrangements made in this Contract, the Contract can be terminated immediately, insofar as it applies to such jurisdiction, by the Company giving notice to the Reinsurer to such effect. 

10

 

ARTICLE 15  

LOSS RESERVE FUNDING  

        This clause is only applicable to those Reinsurers who cannot qualify for credit by the State having jurisdiction over the Company's loss reserves. 

        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 department or set up on its
books reserves for losses covered hereunder which it shall be required to set up by law it will forward to the Reinsurer a statement showing the proportion of such loss reserves which is applicable to
them. 

        The
Reinsurer hereby agrees that it will apply for and secure delivery to the Company a clean irrevocable and unconditional Letter of Credit issued by a bank chosen by the Reinsurer and
acceptable to the appropriate insurance authorities, in an amount equal to the Reinsurer's proportion of the loss reserves in respect of known outstanding losses that have been reported to the
Reinsurer, allocated loss expenses relating thereto and Incurred But Not Reported loss and loss expense as shown in the statement prepared by the Company. 

        The
Letter of Credit shall be "Evergreen" and 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 thirty (30) days prior to any expiration date, the bank shall notify the Company by certified or registered mail that it elects not to consider the Letter of
Credit extended for any additional period. 

        The
bank chosen for the issuance of the Letter of Credit 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. 

        At
annual intervals, or more frequently as agreed but never more frequently than semiannually, the Company shall prepare a specific statement, for the sole purpose of amending the Letter
of Credit, of the Reinsurer's share of known and reported outstanding losses and allocated expenses relating thereto. If the statement shows that the Reinsurer's share of such losses and allocated
loss expenses, and Incurred But Not Reported loss and loss expense, exceeds the balance of credit as of the statement date, the Reinsurer shall, within thirty (30) days after receipt of notice
of such excess, secure delivery to the Company of an amendment of the Letter of Credit increasing the amount of credit by the amount of such difference. If, however, the statement shows that the
Reinsurer's share of known and reported outstanding losses plus allocated loss expenses, and Incurred But Not Reported loss and loss expense, relating thereto is less than the balance of credit as of
the statement date, the Company shall, within thirty (30) days after receipt of written request from the 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. 

ARTICLE 16  

TAXES  

        The Company will be liable for taxes (except Federal Excise Tax) on premiums reported to the Reinsurer hereunder. 

        Federal
Excise Tax applies only to those Reinsurers, excepting Underwriters at Lloyd's, London and other Reinsurers exempt from the Federal Excise Tax, who are domiciled outside the
United States of America. 

11

 

        The
Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax 1% of the premium payable hereon to the extent such premium is subject to Federal Excise Tax. 

        In
the event of any return of premium becoming due hereunder, the Reinsurer will deduct 1% from the amount of the return, and the Company or its agent should take steps to recover the
Tax from the U.S. Government. 

ARTICLE 17  

NOTICE OF LOSS AND LOSS SETTLEMENTS  

        The Company will advise the Reinsurer promptly of all claims which in the opinion of the Company may involve the Reinsurer and of all subsequent developments on
these claims which may materially affect the position of the Reinsurer. 

        The
Reinsurer agrees to abide by the loss settlements of the Company, provided that retroactive extension of Policy terms or coverages made voluntarily by the Company and not in response
to court decisions (whether such court decision is against the Company or other companies affording the same or similar coverages) will not be covered under this Contract. 

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

        The
Reinsurer will pay its share of loss settlements immediately upon receipt of proof of loss from the Company. 

ARTICLE 18  

OFFSET  

        Each party hereto shall have, and may exercise at any time and from time to time, the right to offset any balance or balances under this Contract, whether on
account of premiums or on account of losses or otherwise, due from each party to the other (or, if more than one, any other) party hereto. However, that in the event of the insolvency of a party
hereto, offsets shall only be allowed in accordance with the provisions of Section 7427 of the Insurance Law of the State of New York and the Insurance Law of the State of California. 

ARTICLE 19  

COMMUTATION  

	A.
	Either
the Reinsurer or the Company may request commutation of that portion of any excess loss hereunder represented by any outstanding claim or claims after 84 months from the
date of an occurrence. If both parties desire to commute a claim or claims, then within sixty (60) days after such agreement, the Company shall submit a statement of valuation of the
outstanding claim or claims showing the elements considered reasonable to establish the Ultimate Net Loss and the Reinsurer shall pay the amount requested.

	B.
	If
agreement, as outlined in the paragraph above, cannot be reached, the effort can be abandoned or alternatively the Company and the Reinsurer may mutually appoint an actuary or
appraiser to investigate, determine and capitalize such claim or claims. If both parties then agree, the Reinsurer shall pay its proportion of the amount so determined to be the capitalized value of
such claim or claims. 

12

 
	C.
	If
the parties, as outlined in the paragraphs above, fail to agree, they may abandon the effort or they may 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 of the American Academy of
Actuaries. None of the actuaries shall be under the control of either party to this Contract.

	D.
	Each
party shall submit its case to its actuary within 30 days of the appointment of the third actuary. The decision in writing of any two actuaries, when filed with the parties
hereto, shall be final and binding on both parties. The expense of the actuaries and of the commutation shall be equally divided between the two parties. Said commutation shall take place in Woodland
Hills, California, unless some other place is mutually agreed upon by the Company and the Reinsurer. 

ARTICLE 20  

EXCESS OF POLICY LIMITS  

        In the event the Ultimate Net Loss includes an amount in excess of the Company's Policy limit, when loss in excess of the limit has been incurred because of, but
not limited to its failure 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, such amount, as provided for in the definition of Ultimate Net Loss, in
excess of the Company's Policy limit shall be added to the amount of the Company's Policy limit, and the sum thereof shall be covered hereunder, subject to the Reinsurer's limit of liability appearing
in the COVER ARTICLE of this Contract. 

        However,
this Article shall not apply where the loss has been incurred due to the fraud of a member of the Board of Directors or a corporate officer of the Company acting individually or
collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

        For
the purpose of this Article, the word "loss" shall mean any amounts for which the Company would have been contractually liable to pay had it not been for the limit of the original
Policy. 

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

ARTICLE 21  

EXTRA CONTRACTUAL OBLIGATIONS  

        This Contract shall protect the Company, subject to the Reinsurer's limit of liability appearing in the COVER ARTICLE of this Contract, where the Loss Occurrence
includes any Extra Contractual Obligations as provided for in the definition of Ultimate Net Loss. "Extra Contractual Obligations" are defined as those liabilities not covered under any other
provision of this Contract and which arise from handling of any claim on business covered hereunder, such liabilities arising because of, but not limited to, the following: 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. 

13

 

        The
date on which any Extra Contractual Obligation is incurred by the Company shall be deemed, in all circumstances, to be the date of the original Loss Occurrence. 

        However,
this Article shall not apply where the Loss Occurrence has been incurred due to the fraud of a member of the Board of Directors or a corporate officer of the Company acting
individually or collectively or in collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

        For
the purposes of Extra Contractual Obligations coverage, there shall also be recovery hereunder as respects all liability of the Company arising from the handling of any claim under
Workers' Compensation and/or Employer's Liability policies issued to itself or any of the Company's subsidiary and/or affiliated companies, or other insurance or reinsurance companies. 

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

ARTICLE 22  

DELAY, OMISSION OR ERROR  

        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, providing such delay, omission or error is rectified upon discovery. 

        In
the case of exposures not within the terms and conditions hereof, the obligation of the Reinsurer shall be limited to return of any premium paid hereon for such exposure. 

        Nevertheless,
this Article shall not apply with respect to loss reports rendered to the Reinsurer beyond the period required to afford coverage in accordance with the TERM ARTICLE. 

ARTICLE 23  

ACCESS TO RECORDS  

        Provided that the Reinsurer shall give prior written notice of their desire to obtain information, the Company shall place at the disposal of the Reinsurer, and
the Reinsurer, or its authorized representative, shall have the right to inspect, at all reasonable times during the currency of this Contract and thereafter, the books, records and papers of the
Company pertaining to the reinsurance provided hereunder. 

ARTICLE 24  

ARBITRATION  

        As a precedent to any right of action hereunder, if any dispute shall arise between the Company and the Reinsurer with reference to the interpretation of this
Contract including its formation and validity or their rights with respect to any transaction involved, whether such dispute arises before or after termination of this Contract, such dispute, upon the
written request of either party, shall be submitted to three arbitrators, one to be chosen by each party, and the third by the two so chosen. If either party refuses or neglects to appoint an
arbitrator within thirty days after the receipt of written notice from the other party requesting it to do so, the requesting party may appoint two arbitrators. If the two arbitrators fail to agree in
the selection of a third arbitrator within thirty days of their appointment, each of them shall name two, of whom the other shall decline one and the decision shall 

14

 

be
made by drawing lots. All arbitrators shall be executive officers of insurance or reinsurance companies or Underwriters at Lloyd's, London not under the control of either party to this Contract. 

        The
arbitrators shall interpret this Contract as an honorable engagement and not as merely a legal obligation; they are relieved of all judicial formalities and may abstain from
following the strict rules of law, and they shall make their award with a view to effecting the general purpose of this Contract in a reasonable manner rather than in accordance with a literal
interpretation of the language. Each party shall submit its case to its arbitrator within thirty days of the appointment of the third arbitrator. 

        The
decision in writing of any two arbitrators, when filed with the parties hereto, shall be final and binding on both parties. Judgment may be entered upon the final decision of the
arbitrators in any
court having jurisdiction. Each party shall bear the expense of its own arbitrator and shall jointly and equally bear with the other party the expense of the third arbitrator and of the arbitration.
Said arbitration shall take place in the city in which the Company's head office is located unless some other place is mutually agreed upon by the Company and the Reinsurer. 

ARTICLE 25  

SERVICE OF SUIT  

        This Clause applies if the 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. 

        It
is agreed that in the event of the failure of the Reinsurer hereon to pay any amount claimed to be due hereunder, the Reinsurer hereon, at the request of the Company, will submit to
the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Clause constitutes or should be understood to constitute a waiver of the 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. 

        It
is further agreed that service of process in such suit may be made upon Messrs. Mendes & Mount, 725 South Figueroa Street, Los Angeles, California 90017 or in the event
the suit is instituted in New York State, Messrs. Mendes & Mount, 750 Seventh Avenue, New York, New York 10019-6829 and that in any suit instituted against the Reinsurer upon
this Contract, the Reinsurer will abide by the final decision of such court or of any appellate court in the event of an appeal. 

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

        Further,
pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereon 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 proceeding 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. 

15

 

ARTICLE 26  

INSOLVENCY  

        In the event of the insolvency of any company or companies included in the designation of "Company," this Article will apply only to the insolvent company or
companies. 

        In
the event of the insolvency and the appointment of a conservator, liquidator or statutory successor of the Company, reinsurance under this Contract shall be payable to such
conservator, liquidator or statutory successor immediately upon demand, with reasonable provision for verification, on the basis of claims allowed against the insolvent Company by any court of
competent jurisdiction or by any conservator, liquidator or statutory successor of the Company having authority to allow such claims, without diminution because of such insolvency or because such
conservator, liquidator or statutory successor has failed to pay all or portion of any claims. Such payments by the Reinsurer shall be made directly to the Company or its conservator, liquidator or
statutory successor except as provided by Section 4118(a) of the New York Insurance Law or except when the Contract specifically provides another payee of such reinsurance in the event of the
insolvency of the Company and when 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
payees under such Policies and in substitution for the obligations of the Company to such payees. 

        It
is agreed, however, that the conservator, liquidator or statutory successor of the insolvent Company shall give written notice to the Reinsurer of the pendency of a claim against the
insolvent Company on the Policy or Policies reinsured within a reasonable time after such claim is filed in the insolvency proceeding and that during the pendency of such claim, the Reinsurer may
investigate such claim and interpose, at its own expense, in the proceeding when such claim is to be adjudicated, any defense or defenses which it may deem available to the Company or its conservator
or liquidator or statutory
successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of liquidation to the extent of a
proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. 

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

ARTICLE 27  

INTERMEDIARY  

        Guy Carpenter & Company, Inc. is hereby recognized as the Intermediary negotiating this Contract for all business hereunder. All communications,
including notices, premiums, return premiums, commissions, taxes, losses, loss adjustment expenses, salvages and loss settlements relating thereto shall be transmitted to the Reinsurer or the Company
through Guy Carpenter & Company, Inc., One Convention Place, 701 Pike Street, Suite 2000, Seattle, Washington 98101. Payments by the Company to the Intermediary shall be deemed to
constitute payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed only to constitute payment to the Company to the extent that such payments are actually received by
the Company. 

16

 

        IN WITNESS WHEREOF, the Company has caused this Contract to be executed by its duly authorized representative(s) this 7th day of April , in the year of 2004.  

 ZENITH INSURANCE COMPANY

ZNAT INSURANCE COMPANY

ZENITH STAR INSURANCE COMPANY  

        
/s/ John J. Tickner

WORKERS' COMPENSATION TERRORISM CATASTROPHE EXCESS OF LOSS REINSURANCE CONTRACT  

17

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Exhibit 4.1  

 
 

Settlement Agreement for Third Omnibus Claims Objection
  ETS Payphones, Inc. and UPO    
    

        This agreement entered into as of the 28th day of February, 2003, by and between ETS Payphones, Inc., the reorganized debtor in Case
No. 00-3570 (KJC) pending in the United States Bankruptcy Court for the District of Delaware ("Debtor"), and United Payphone Owners (RES) LLP ("UPO") and the individual members
thereof (the "Member(s)") (the "Settlement Agreement") shall fully and finally resolve the issues raised in the Third Objection (as hereinafter defined) and the numerous responses filed thereto by UPO
and the Members. The parties hereto agree to the following: 

        1.     The
claims listed on Exhibit A to the Reorganized Debtor's Third Omnibus (Substantive) Objection to Claims (Disallowance of Waived Claims) (Docket
No. 2678)(the "Third Objection") and any other claims filed by or on behalf of ZBI, Inc. ("ZBI") shall be disallowed in their entirety. 

        2.     The
claims listed on Exhibit B to the Third Objection filed by ZBI, Inc. or United Payphone Owners or any of the Members or any other Members of UPO
(collectively, "UPO") shall be allowed at eighty percent (80%) of the amount listed in the "Claim Amount" column in Exhibit B to the Third Objection (or 80% of the amount listed in Debtor's
books and records if the member's claim is not listed on Exhibit B to the Third Objection), unless such claimant has (i) successfully obtained a refund of its capital contribution,
"Restart" or "Rescue Me" deposit or other funds paid to ZBI, UPO, its general partner(s) or managing member(s),Old Mission Assessment Company or Financial World Companies, Inc. and
(ii) effectively rescinded its membership in UPO prior to January 1, 2003. If the claimant obtained a refund and rescinded its membership in UPO prior to January 1, 2003 as set
forth herein, then such claimant shall have its claim allowed in the amount listed in the "Claim Amount" column on Exhibit B to the Third Objection (or the amount listed for such claimant in
the Debtor's books and records if such claimant is not listed on Exhibit B to the Third Objection). All such claims referred to herein shall receive distribution from Debtor in accordance with
the treatment for Class 4 Payphone Investor Claims in the First Amended Joint Plan of Reorganization confirmed on November 14, 2001 (Docket No. 1754). 

        3.     The
Members will not, by the mere fact of UPO accepting this settlement, lose any right to seek the rescission of their capital contribution, "Restart" or "Rescue Me"
deposit, or any other remaining interests that the Members may have against UPO or its general partner(s) or managing member(s), Old Mission Assessment Corp. or Financial World Companies, Inc.
This settlement does not prevent UPO from asserting that such settlement conferred a benefit to such Members or a distribution to such Members. 

        4.     UPO
consents to the direct distribution by Debtor pursuant to the Joint Plan to the claimants as listed in Exhibit "B" to the Third Objection. UPO shall also
immediately modify or amend any applicable document of UPO which allows either of those entities to control such claims, be that control by virtue of the contribution of such interest to one of the
entities as being the basis for an ownership interest in such entity or by virtue of a power of attorney or other similar document granting authority to act for the underlying Member. Any and all such
power shall revert to the Member individually. The modification or amendment shall remove, in full any right of UPO to sell, transfer, vote, pledge or otherwise affect such interests in Debtor. The
direct distribution to the Member will be treated as a distribution to the Members of UPO in accordance with applicable tax and otherwise applicable state law. 

        5.     Upon
receipt of their distribution pursuant to the Joint Plan for Class 4 Payphone Investor Claims (the "Reorganized ETS Stock"), the Members who receive
Reorganized ETS Stock shall be prohibited and restricted from selling or transferring Reorganized ETS Stock for a period of six (6) months from the date of distribution thereof. If, after the
initial six (6) month period elapses, a Member desires to sell or transfer any portion or all of the Reorganized ETS Stock, only twenty-five percent (25%) of any individual Member's
shares may be sold during any subsequent fiscal quarter 

until
the second anniversary of the distribution date of the stock. Upon the expiration of the second anniversary of the distribution date of the stock, the Reorganized ETS Stock may be sold without
the aforementioned restriction. Debtor shall have a right of first refusal to purchase in whole or in part any portion of the Reorganized ETS Stock distributed to claimants that is proposed to be sold
or transferred to any person other than a Permitted Transferee (as defined hereinafter) for two (2) years from the distribution date thereof, which right shall be exercisable on or before the
fourteenth (14) day upon receipt of written notification of the proposed sale or transfer by the Member. UPO or OMAC shall pay to Debtor any costs of the transfer agent, if any, associated with
implementing the quarterly sale restriction on the individual claimants during the initial two (2) year period. 

        6.     In
addition to any legends required by applicable securities laws, all certificates representing any shares of Reorganized ETS Stock that are subject to the provisions of
this Settlement Agreement shall have endorsed thereon legends substantially as follows: 

The
securities represented by this certificate are subject to the terms of a certain Settlement Agreement, dated February 28, 2003, to which the registered holder, or his or its predecessor in
interest, is a party, which agreement provides for certain obligations of sale and purchase. Such agreement is on
file at the principal office of this corporation and affects the transferability of the shares represented by this certificate. 

        7.     Before
effecting any proposed transfer of Reorganized ETS Stock, the Members shall give written notice describing fully the proposed transfer, including the number of
shares of Reorganized ETS Stock proposed to be transferred, the name and address of the proposed transferee(s) and the proposed transfer price, and the fair market value of any proposed
non-cash consideration (the "Transfer Notice"). The Transfer Notice shall have attached thereto a copy of the proposed transferee(s)' offer, if written, and otherwise shall contain an
accurate summary of the offer of the proposed transferee(s), which must be a bona fide offer. At any time within the fourteen (14)-day
period immediately following the receipt of the Transfer Notice, Debtor may elect to purchase, in whole or in part, the shares of Reorganized ETS Stock subject to the Transfer Notice at the price per
share set forth therein. If Debtor and the purchasers fail to exercise this right of first refusal in a timely manner upon the terms set forth in the Transfer Notice, or if they elect to purchase all
such subject shares, but fail to close the purchases thereof within the period specified herein, then the selling shareholder may, not later than one hundred twenty (120) days following
delivery of the Transfer Notice, transfer that portion of the subject shares not purchased by Debtor and/or the purchasers on the terms and conditions described in such Transfer Notice. Any proposed
transfer on terms and conditions materially different from those described in the Transfer Notice, as well as any proposed transfer by the selling shareholder after the expiration of such
120-day period, shall again be subject to the right of first refusal and shall require compliance by the selling shareholder with the procedure described in this section. 

        8.     This
right of first refusal shall not apply to (i) any pledge of shares of Reorganized ETS Stock made pursuant to a bona
fide loan transaction that creates a mere security interest; (ii) any transfer of shares of Reorganized ETS Stock by gift or bequest or through inheritance to, or for
the benefit of, any ancestor, descendant or the spouse of existing shareholder; or (iii) any transfer of shares of Reorganized ETS Stock to a trust for the benefit of any person described in
clause (ii) (persons to whom or which the transfers described in this section are made being referred to herein as "Permitted Transferees"); provided,
however, that each Permitted Transferee shall be subject to the terms of this section. Except as limited by this Settlement Agreement, all rights, remedies and entitlement of
the shareholders hereunder may be assigned in full or in part to any Permitted Transferee together with the securities being assigned. All Permitted Transferees shall be required as a condition of
such transfer to agree in writing that they will receive and hold such shares of Reorganized ETS Stock or interest therein subject to the provisions of this Settlement Agreement, including the right
of first refusal. Any sale or transfer of any such shares shall be void unless the provisions of this section are met. 

        9.     The
right of first refusal provided in paragraph 7 of this Settlement Agreement shall not apply to offers or sales of permitted amounts (not more than 25% per
fiscal quarter) of Reorganized ETS 

Stock
that are traded over the OTC Bulletin Board or its successor market, the Bulletin Board Exchange (together, the "OTCBB"); provided that the following conditions (the "OTCBB Conditions") are
satisfied prior to any listing or trading: (i) shares of Reorganized ETS Stock shall have been listed and traded on the OTCBB for not less than sixty (60) immediately preceding
consecutive days, (ii) there shall be not less than three (3) OTCBB participating market makers regularly and actively engaged in quoting bid and ask prices on the OTCBB,
(iii) there shall be trading volume of not less than one million (1,000,000) shares traded within the five (5) immediately preceding days. Prior to engaging in any listing or
trading activities on the OTCBB, any holder of Reorganized ETS Stock subject to this Agreement desirous of selling its shares on the OTCBB shall send the required Transfer Notice and list OTCBB as the
proposed purchaser and the average closing bid and ask prices for the aggregate five (5) immediately preceding day period instead of the proposed transfer price. 

        10.   UPO
agrees to provide Debtor a complete list of its Members and or those individuals on whose authority it is authorized to act within seven (7) days of the
execution of executing this Settlement Agreement. In addition, UPO agrees to provide Debtor a complete list and such other information as may be reasonably requested by Debtor (including but not
limited to copies of canceled checks) to demonstrate those Members who effectively rescinded their membership in UPO as set forth herein prior to January 1, 2003. 

        11.   Notwithstanding
anything contained herein to the contrary, no individual involved in ownership or management of OMAC (save and except for Frank Hooper and/or Financial
World Companies Inc, and then only with regard to the claim held as to Lease numbers 11511 and 10437 for $113,460 and $111,820 respectively, which shall be treated as any other Member who has
not rescinded their membership) shall be entitled to receive or purchase any Reorganized ETS Stock. UPO and its managing member OMAC shall provide to Debtor a comprehensive list of the individuals
involved in ownership or management of OMAC within seven (7) days of the execution of this agreement. If any Reorganized ETS Stock is inadvertently distributed to any individual involved in
ownership or management of OMAC, such individual shall be deemed to hold such shares in trust for the benefit of Debtor and shall immediately surrender such shares to Debtor. 

        12.   UPO
has obtained, or shall have obtained prior to the approval of this Settlement Agreement by the Bankruptcy Court, all material consents, authorizations or approvals
of any third parties and limited partners required to be obtained in connection with the execution, delivery and performance of this Settlement Agreement. Any notice, demand or request required or
permitted to be given under the provisions of this Settlement Agreement (a) shall be in writing; (b) shall be delivered personally, including by means of facsimile, overnight express
delivery, or mailed by registered or certified mail, postage prepaid and return receipt requested; (c) shall be deemed given on the date of personal delivery or on the date set forth on the
return receipt; and (d) shall be delivered or mailed to the addresses or facsimile numbers set forth below or to such other address as any party may from time to time direct in writing in
accordance with this section (telephone numbers are provided to assist in coordination, but telephone conversations do not constitute notice): 

If to the UPO:  

	(a)
	Frank
Hooper

United Payphone Owners, LLP

8936 East Sun Lakes Boulevard, South

Sun Lakes, Arizona 85248

Telephone: (480) 883-8509

	(b)
	Ian
Herman

Old Mission Assessment Corp.

3908 South Ocean Boulevard, #1

Highland Beach, Florida 33487 

with copies to:

Brian
A. Sullivan

Werb & Sullivan

300 Delaware, Ave., 10th Floor

P.O. Box 25046

Wilmington, Delaware 19899

Telephone: (302) 652-1100

Facsimile: (302) 652-1111 

and

E.
Paul Keiffer

Hance Scarborough Wright Ginsburg & Brusilow

1401 Elm Street, Suite 4750

Dallas, Texas 75202

Telephone: (214) 651-6500

Facsimile: (214) 744-2615 

If to Debtor:  

Guy
A. Longobardo, CEO

ETS Payphones, Inc.

Suite G, 1490 Westfork Drive

Lithia Springs, Georgia 30122

Telephone: (770) 819-1600

Facsimile: (770) 819-1682 

with copies to:

Shannon
Lowry Nagle

Powell Goldstein, Frazer & Murphy LLP

191 Peachtree Street, 16th Floor

Atlanta, GA 30303

Telephone: (404) 572-6600

Facsimile No.: 404-572-6999 

        IN
WITNESS WHEREOF, the parties have executed this Settlement Agreement as of this 28th day of February 2003. 

	 	 	UNITED PAYPHONE OWNERS, LLP
	

 	
 	

BY:	
 	

 
	

 	
 	

FINANCIAL WORLD COMPANIES, INC., General Partner
	

 	
 	

By:	
 	

 
	 	 	Name:	 	    

	 	 	Title:	 	    

	

 	
 	
ETS PAYPHONES, INC.
	

 	
 	

By:	
 	

 
	 	 	Name:	 	    

	 	 	Title:	 	    

	

Agreed to for purposes of Paragraph 11 only by:

Old Mission Assessment Corp.
	

    
 Name:  Ian Herman

Title:    Chairman	
 	

 	
 	

 

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Settlement Agreement for Third Omnibus Claims Objection ETS Payphones, Inc. and UPO

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