Document:

exv10w32

Exhibit
10.32

QUOTA SHARE REINSURANCE AGREEMENT

(hereinafter referred to as the “Agreement”)

GIC-005/2007

between

GUARANTEE INSURANCE COMPANY

(hereinafter referred to as the “Company”)

and

NATIONAL INDEMNITY INSURANCE COMPANY

(hereinafter referred to as the “Reinsurer”)

ARTICLE I-BUSINESS COVERED

All statutory benefits payable under Part One Section A Limit and Part Two Section B Limit of a
Standard Workers’ Compensation Policy.

This Agreement is to indemnify the Reinsured as set forth herein in respect of the net excess
liability which may accrue to the Reinsured under all policies, Agreements, binders and other
evidences of insurance or reinsurance, whether oral or written (hereinafter called “policies”),
classified by the Reinsured as Traditional Workers’ Compensation becoming effective on and after
the inception date of this Agreement, including renewals.

ARTICLE II -EXCLUSIONS

This Agreement excludes all Ultimate Net Loss arising from the following and further amplified
by Schedule 1 NCCI Class Code identifications:

	 	1.	 	Assumed reinsurance, except one hundred percent
(100%) of business ceded by
fronting insurance companies.
	 
	 	2.	 	Liability of the Reinsured arising by Agreement,
operation of law or otherwise
from its participation or membership, whether voluntary or involuntary, in
any
insolvency fund. “Insolvency fund” includes any guarantee funds, 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 Reinsured of part or all of any claim, debt,
charge, fee or other obligation or 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.
	 
	 	3.	 	Business excluded by the attached Exhibit A, Nuclear
Incident Exclusion Clause — Liability- Reinsurance — U.S.A., No, 08-31-1.

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	 	4.	 	Pools, associations and syndicates, except that losses from assigned risk plans or
similar plans are not excluded.
	 
	 	5.	 	Actual or alleged loss, liability, damage, injury, defense cost, cost or expense
directly or indirectly caused by, contributed to, by, resulting from, arising out of
or in connection with any “acts of terrorism” as defined in the Terrorism Risk
Insurance Act of 2002 (the “Act”), including acts of war, invasion, acts of
foreign enemies, hostilities or warlike operation (whether war be declared or
not), civil war, rebellion, revolution, insurrection, or civil commotion assuming
the proportions of or amounting to an uprising, military or usurped power,
regardless of any other cause or event contributing concurrently or in any
sequence to the loss and regardless of the location of the loss, liability, damage,
injury, defense, cost or expense.

Also excluding actual or alleged loss, liability, damage, injury, defense cost or expense directly
or indirectly caused by, contributed to by, resulting from, arising out of or in connection with
any action taken in controlling, preventing, suppressing, retaliating against, or responding to an
act of terrorism as defined in the Act, regardless of the location of the loss, liability, damage,
injury, defense, cost or expense.

Notwithstanding the above and subject otherwise to the terms, conditions and limitations of this
Agreement, this Agreement will pay actual loss or damage caused by an act of terrorism which does
not meet the definition of “act of terrorism” as defined in the Act but in no event, will this
agreement provide coverage for loss, damage, cost or expense directly or indirectly caused by,
contributed to by, resulting from, arising out of or in connection with biological, chemical or
nuclear explosion, pollution, contamination and/or fire following therefrom.

In the event any portion of this exclusion is found to be invalid or unenforceable, the remainder
shall remain in full force and effect.

	 	6.	 	Financial guarantee and insolvency.
	 
	 	7.	 	War Risks as defined and excluded by the North American War Exclusion
Clause (Reinsurance) BRMA 56A.
	 
	 	8.	 	Risks with known occupational disease exposures per NCCI D & E codes.
	 
	 	9.	 	Operations requiring coverage under the Defense Base Act, Admiralty Act or
any other Federal act including but not limited to the Jones Act, FELA or
USL&H, except where incidental. (“incidental” to be defined as less than 10%
of an individual insurer’s premium).
	 
	 	10.	 	Commercial airline crews.
	 
	 	11.	 	Risks involving known exposure to the following substances: Dioxin,
Polychlorinated biphenyls (PCB’s) and Asbestos.
	 
	 	12.	 	Mining either above or below ground.
	 
	 	13.	 	Construction of bridges, tunnel or dams.

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	 	14.	 	Fire fighters and police officers.
	 
	 	15.	 	Railroads, except scenic railways, and access lines
and industrial aid owner
operations when written as an incidental part of an insured’s overall
operations.
	 
	 	16.	 	No known wrecking or demolition of buildings of
structures in excess of three
stories.
	 
	 	17.	 	Manufacturing, packing, handling, shipping, storage
or loading into containers
of explosives, substances intended for use as an explosive, ammunitions,
fuses,
arms, magnesium, propellant charges, detonating devices,
fireworks,
nitroglycerine, celluloid, or pyroxylin; however, this exclusion shall not
apply to
the incidental packing, handling, or storage of same in connection with the
sale
or transportation by owner operators of such substance;
	 
	 	18.	 	Trucking hauling explosives or ammunition (local or
long distance hauling) — all
employees.
	 
	 	19.	 	Manufacturing, packing, handling, shipping or storage
of natural or artificial
fuel gasses, butane, propane, gasoline, or liquefied petroleum gas;
however, this
exclusion shall not apply to the incidental packing, handling or storage of
same
in connection with the sale of such substances.
	 
	 	20.	 	Gas or oil burner installation NOC.
	 
	 	21.	 	Gasoline Service Stations tank installations.
	 
	 	22.	 	Blasting of rock.
	 
	 	23.	 	Sewer construction all operations.
	 
	 	24.	 	Gas main, steam main, or water main construction or connection
construction.
	 
	 	25.	 	Boat manufacturing F classes.
	 
	 	26.	 	Banks and trust company employees of contracting
agencies in bank service:
guards, patrol, messengers or armored car crews.
	 
	 	27.	 	Detective agency.
	 
	 	28.	 	Patrol agency only in regard to armed guard services.
	 
	 	29.	 	Alternative Market business including PEO’s.
	 
	 	30.	 	Risks principally domiciled in the states of Georgia, South Carolina and
Indiana.

ARTICLE III — PERIOD AND CANCELLATION

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This Agreement shall be effective effective July 1, 2007, for new and renewal policies of the
Company attaching on or after 12:01 a.m. Local Standard Time,
July 1, 2007 through June 30, 2008,
both days inclusive.

Termination on a run-off basis until the natural expiration of all policies subject to this
Agreement. Run-off not to exceed 12 months from the termination of this Agreement plus odd time not
to exceed 18 months in all.

ARTICLE IV — AMOUNT OF COVER

50% Quota Share of the first $500,000 Ultimate Net Loss each and every Loss Occurrence, inclusive
of original deductibles regardless of the number of policies or programs involved. Allocated Loss
Adjustment Expense included in Ultimate Net Loss.

ARTICLE V — TERRITORY

Losses arising out of Policies written and issued in the U.S.A., its territories and possessions,
excluding losses arising out of policies written and issued in the States of Georgia, South
Carolina or Indiana.

ARTICLE VI — CEDING COMMISSION:

Ceding Commission shall be 25% of Gross Subject Written Premium collected by the Company and
ceded to Reinsurers.

ARTICLE VII — PREMIUM:

The Company shall cede and pay to the Reinsurer its proportionate share of the Gross Subject
Written Premium collected by the Company and ceded to Reinsurers on business subject to this
Agreement. When so requested, the Company will afford the Reinsurer an opportunity to be
associated with Company, at the expense of the Reinsurer, in the collection of premiums; and the
Company and the Reinsurer shall co-operate in every respect in the collection of premiums.

ARTICLE VIII — OTHER REINSURANCE:

The Company shall be permitted to deduct 100% of the cost of excess reinsurance from the Gross
Subject Written Premium ceded hereunder. The cost of reinsurance is deemed to be 10% for the
duration of this Agreement.

ARTICLE
IX — REPORTS AND REMITTANCES:

Within 30 days after the end of each month, the Company shall provide the following information to
the Reinsurer with reports being provided at the insurance policy level.

	 	1.	 	Gross Subject Written Premium;

	 
	 	2.	 	Gross Subject Written Premium Collected.
	 
	 	3.	 	Ceding commission on Gross Subject Written Premium collected and other reinsurance
charge
allocable to Gross Subject Written Premium collected.
	 
	 	4.	 	Paid loss and paid Allocated Loss Adjustment Expense;

	 
	 	5.	 	Outstanding losses and outstanding Allocated Loss Adjustment Expense;

The Company shall remit the positive balance of (2) less (3) less (4), 45 days after the end of
each month.

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Negative balances shall be remitted by the Reinsurer as promptly as possible after receipt and
verification of the Company’s report.

ARTICLE X — DEFINITIONS

	A.	 	“Policy” as used in this Agreement shall mean any binder, policy or contract of insurance
issued,
accepted or held covered provisionally or otherwise, by or on behalf of the Company.
	 
	B.	 	“Gross Subject Written Premium” is Written Manual Premium adjusted for experience and
schedule credit/debit modification, State/NCCI safety credit, and other allowable credits,
premium
discount, deductible credits, expense constants and policy fees, less returns and
cancellations for
policies covered by this agreement.
	 
	C.	 	“Loss adjustment expense” as used herein shall mean expenses allocable to the investigation,
defense and/or settlement of specific claims, including litigation expenses and
post-judgment
interest, but not including any legal expense and cost incurred by the Reinsured in
connection with
coverage questions and legal actions connected thereto, office expense or salaries of the
Reinsured’s regular employees.
	 
	D.	 	Except for losses arising from Occupational Disease or Cumulative Trauma (as defined below),
“Loss Occurrence” as used in this Agreement shall mean any one accident, disaster, casualty
or
loss or series of accidents, disasters, casualties or losses arising out of or caused by
one event.
	 
	 	 	

With respect to Occupational Disease or Cumulative Trauma, all losses arising from each
employee shall be deemed a separate “Loss Occurrence”. The date of loss for each Loss
Occurrence shall be the date when the compensable disability of the employee commences, or
if there is no such disability, when the medical treatment commences. All Occupational
Disease or Cumulative Trauma losses of one specific kind or class suffered by more than
one employee of the same employer shall be added together and deemed a separate Loss
Occurrence. The date of loss for each Loss Occurrence shall be the date the first claim is
made to the Company. There shall only be one date of loss for all Occupational Disease or
Cumulative Trauma losses of one specific kind or class suffered by more than one employee
of the same employer, regardless of the number of employees, claims or policies involved.
	 
	 	 	“OCCUPATIONAL DISEASE” is any abnormal condition that fulfills all of the
following conditions:

	 	1.	 	It is not traceable to a definite compensable accident
occurring during the
employee’s past or present employment.
	 
	 	2.	 	It has been caused by exposure to a disease producing agent
or agents present in
the workers occupational environment.
	 
	 	3.	 	It has resulted in disability or death.

	 	 	“CUMULATIVE TRAUMA” is an injury that fulfills all of the following conditions:

	 	1.	 	It is not traceable to a definite compensable accident
occurring during the
employee’s past or present employment.
	 
	 	2.	 	It has occurred from and has been aggravated by a repetitive
employment related
activity.
	 
	 	3.	 	It has resulted in a disability or death. “Loss Occurrence”
as used in this
Agreement shall mean any one accident, disaster, or casualty or series of
accidents, disasters, or casualties arising out of one event.

	E.	 	“Collected Premium” Gross Subject Written Premium collected by the Company pursuant to
premium payment plans wherein policy premiums are paid to the Company on a less-than-annual

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	 	 	basis; however, in no event shall the Reinsurer be liable for policy premiums that are
uncollectible from original insureds, regardless of the reason for uncollectibility, and
all such uncollectible amounts shall be deemed collected by the Company when due to the
Company or its agents, whichever occurs first in time, and accordingly remitted to the
Reinsurer.
	 
	F.	 	The term “Insured” means the named insured in any of the Policies.

ARTICLE XI — ULTIMATE NET LOSS

“Ultimate Net Loss” as used in this Agreement 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
Obligations amount as defined in the Extra Contractual Obligations Clause, and all Loss Adjustment
Expense of the Company including subrogation, salvage, and recovery expenses. Salvages and all
recoveries, including recoveries under all reinsurances which inure to the benefit of this
Agreement (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.

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

ARTICLE
XII — LOSS NOTICES AND SETTLEMENTS

The Company will advise the Reinsurer promptly of all losses and any subsequent developments
pertaining thereto, which may in its opinion develop into losses involving reinsurance hereunder.

The liability of the Reinsurer shall follow that of the Company’s in every case, except as
specifically noted herein, and shall be subject in all respects to all the general and special
stipulations, clauses, good faith waivers, and modifications of the Company’s policies. All good
faith loss settlements made by the Company, provided they are within the terms of this Agreement,
shall be unconditionally binding upon the Reinsurer and the Reinsurer’s share shall be payable
upon receipt and verification of reasonable evidence given by the Company.

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

ARTICLE XIII — TAXES

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

ARTICLE XIV — CURRENCY

All retentions and limits hereunder are expressed in United States Dollars, and all premium and
loss payments shall be made in United States Currency.

ARTICLE
XV — ACCESS TO RECORDS

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The Reinsurers, or their duly accredited representatives, shall have the right to inspect and copy
at its own expense the books and records of the Company at all reasonable times for the purpose of
obtaining information concerning this Agreement of the subject matter thereof.

ARTICLE XVI — OFFSET CLAUSE

The Company and the Reinsurer, each at its option, may offset any balance or balances, whether on
account of premiums, claims and losses, loss expenses or salvages due from one party to the other
under this Contract; provided, however, that in the event of the insolvency of a party hereto,
offsets shall only be allowed in accordance with applicable statutes and regulations.

ARTICLE XVII — ARBITRATION

	A.	 	As a condition precedent to any right of action hereunder, any dispute arising out of the
interpretation,
performance or breach of this Agreement, including the formation or validity thereof, shall be
submitted for decision to a panel of three arbitrators. Notice requesting arbitration will be
in writing
and sent certified or registered mail, return receipt requested.
	 
	B.	 	One arbitrator shall be chosen by each party and the two arbitrators shall, before
instituting the hearing,
choose an impartial third arbitrator who shall preside at the hearing. 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 or registered mail of its intention to do so, may appoint the second
arbitrator.
	 
	C.	 	If the two arbitrators are unable to agree upon the third arbitrator within 30 days of their
appointment,
the third arbitrator shall be selected by the American Arbitration Association.
	 
	D.	 	All arbitrators shall be disinterested active or former executives of insurance or
reinsurance companies
or Underwriters at Lloyd’s, London, with expertise or experience in the area being arbitrated.
	 
	E.	 	Within 45 days after notice of appointment of all arbitrators, the panel shall meet and
determine timely
periods for briefs, discovery periods and schedules for hearings.
	 
	F.	 	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
Florida, 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 Florida. The decision of any two arbitrators when rendered in writing shall be final
and
binding. The panel is empowered to grant interim relief, as it may deem appropriate.
	 
	G.	 	The panel shall make its decision considering the custom and practice of the applicable
insurance and
reinsurance business within 60 days following the termination of the hearings. Judgment upon
the
award may be entered in any court having jurisdiction thereof.
	 
	H.	 	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.

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ARTICLE XVIII — INSOLVENCY

In the event of the insolvency of the Company or the Reinsurer (the “Insolvent Party”), premiums
and losses shall be payable directly to the Insolvent Party or its liquidator, receiver,
conservator or statutory successor on the basis of the liability of the Insolvent Party without
diminution because of the insolvency of the Insolvent Party or because the liquidator, receiver,
conservator or statutory successor of the Insolvent Party shall give written notice to the other
party hereto of the pendency of a claim against the Insolvent Party, indicating the Policy
reinsured which claim would involve a possible liability on the part
of the other party hereto with
a reasonable time after such a claim is filed in the conservation, liquidation, or receivership
proceedings, and that during the pendency of such claim the other party hereto may investigate such
claim and interpose, as its own expense, in the proceeding where such claim is to be adjudicated
any defense or defenses that it may deem available to the Insolvent Party or its liquidator,
receiver, conservator or statutory successor. The expense thus incurred by the other party shall be
chargeable, subject to the approval of the court, against the Insolvent Party as part of the
expense of conservation, liquidation or receivership to the extent of a pro rata share of the
benefit which may accrue to the Insolvent Party solely as a result of the defense undertaken by the
other party.

ARTICLE XIX — TERMINATION DURING LOSS

Should the liability of the Reinsurer under this Agreement terminate while a loss giving rise to a
claim hereunder is in progress, the Reinsurer shall be liable as if the whole loss had occurred
during the term of this Agreement.

ARTICLE XX — ERRORS AND OMISSIONS

Any inadvertent error or omission on the part of either the Company or the Reinsurers shall not
relieve the other party from any liability which would have attached hereunder, provided that such
error or omission is rectified immediately upon discovery, and shall not impose any greater
liability on the Reinsurers than would have attached hereunder if the error or omission had not
occurred. This article is not intended to conflict or override the terms and conditions contained
in Article XXVIII “Sunset Clause.”

ARTICLE XXI — NET RETAINED LINES

This Agreement applies only to that portion of any insurance or reinsurance which the Company
retains net for its own account, inclusive of underlying reinsurance. In calculating the amount of
any loss hereunder, only loss or losses in respect of that portion of any insurance or reinsurance
which the Company retains net for its own account, inclusive of underlying reinsurance, shall be
included.

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

ARTICLE XXII — SALVAGE AND SUBROGATION:

The Reinsurer shall be credited with its proportionate share of salvage and subrogation recoveries
(i.e., reimbursement obtained or recovery made by the Company, less the actual cost, excluding
salaries of officials and employees of the Company, of obtaining such reimbursement or making such
recovery) on account of claims and settlements involving reinsurance hereunder.

ARTICLE XXIII — CHANGE IN ADMINISTRATIVE PRACTICES

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The Company undertakes not to introduce any material change in its administrative practices,
corporate structure, domicile or established acceptance and underwriting policy in respect of
the business covered hereunder without prior approval of the Reinsurers.

ARTICLE XXIV — EXTRA CONTRACTUAL OBLIGATIONS

This contract shall protect the Company within the limits hereof, where the ultimate not loss
includes any Extra Contractual Obligations. The term “Extra Contractual Obligations” is defined as
those liabilities not covered under any other provision of this Contract and which arise from the
handling of any claim on business covered hereunder, such liabilities arising because of, but not
limited to, the following: failure by the 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 reinsured or in the
preparation of prosecution of an appeal consequent upon such action.

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 disaster and/or casualty.

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

ARTICLE XXV — NON-WAIVER CLAUSE

The failure of the Company or the Reinsurer to insist on compliance with this Agreement or to
exercise any right or remedy hereunder shall not constitute a waiver of any rights or remedy
contained herein nor stop either party from thereafter demanding full and complete compliance nor
prevent either party from exercising such rights or remedy in the future.

ARTICLE XXVI — INSOLVENCY FUND EXCLUSION

It is agreed that this Contract excludes 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 guarantee fund, insolvency
fund, plan, pool, association, fund or other arrangement, howsoever denominated, established or
governed, which provides for any 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.

ARTICLE
XXVII — MANDITORY COMMUTATION CLAUSE

Not later than eighty-four (84) months after the commencement of the Term of this Agreement,
Company shall advise Reinsurer of the amount of all Ultimate Net Loss for all claims from Business
Covered from any Loss Occurrence, both reported and unreported, both paid and not finally settled,
that is the subject of this Agreement. Company and Reinsurer or their respective representatives
shall, within sixty (60) days thereafter by mutual agreement, determine and capitalize (i.e.
reduce to a net present value) the total of such Ultimate Net Loss for each Loss Occurrence.

Once the mutually agreed capitalized value of the Ultimate Net Loss for each Loss Occurrence
is agreed, the Reinsurer shall pay the Company its proportionate share of each Loss Occurrence,
subject to the coverage provided under this Agreement.

If mutual agreement cannot be reached, then any difference shall be settled by an appraisal made
by a panel of three actuaries, one to be chosen by each party and the third by the two so chosen.
If either party refuses

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or neglects to appoint an actuary within thirty (30) days of a written request from the other party
to appoint an actuary, the other party may appoint two actuaries. If the two actuaries fail to
agree on the selection of a third actuary within thirty (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. None of the actuaries shall be under the control of either party to this Agreement.

Each party shall submit its case to its chosen actuary within thirty (30) days of the appointment
of the third actuary. The decision in writing of any two appointed actuaries, when filed with the
parties hereto, shall be final and binding on all parties participating in the appraisal and
judgment may be entered hereon in any court of competent jurisdiction.

The expense of the actuaries and of their appraisal shall be equally divided between the Company
and the Reinsurer. The appraisal shall take place in South Carolina unless some other place is
mutually agreed upon by Company and Reinsurer.

Any payment by the Reinsurer under this Article shall constitute a complete release of the
Reinsurer for its liability as respect any such Loss Occurrence.

ARTICLE XXVIII — SUNSET CLAUSE

Notwithstanding the provisions of the Errors and Omissions Article of this Agreement, coverage
hereunder shall apply only to Loss 

Occurence(s) notified by Company to Reinsurer, with full
particulars, within eighty four (84) months from the commencement of the Term of this Agreement.
Notice of a Loss Occurrence shall include:

	 	1.	 	The approximate time and location of the Loss Occurrence.

	 
	 	2.	 	The date of loss as established under this Agreement.
	 
	 	3.	 	The names of any original insureds that have been identified by Company, at the time
of notice, as
being involved in the Loss Occurrence.
	 
	 	4.	 	The current indemnity, medical and expense reserves delineated by original insured.

	 
	 	5.	 	The total payments made by the Company, delineated by original insured.

ARTICLE XXIX — ENTIRE AGREEMENT CLAUSE

The entire agreement between the Company and the Reinsurer is contained in this Agreement,
including the Reinsuring agreements, exclusions and conditions.

ARTICLE XXX — INTERMEDIARY

Patriot Re International, Inc., 400 Northampton St., Easton, PA 18042 is hereby recognized as the
Intermediary negotiating this Agreement for all business hereunder. All communications (including,
but not limited to, notices, statements, premium reports, return salvages and loss settlements)
relating hereto shall be transmitted to the Company or the Reinsurer through Patriot Re
International, Inc. Payments of Premium and Losses will be on a direct settlement basis between
Company and Reinsurer.

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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed in duplicate
by their duly authorized representative.

	 	 	 	 	 
	Signed in Fort Lauderdale, Florida
	 	 	 	 
	This                      day of                      , 2007
	 	 	 	 
	 
	 	 	 	 
	ATTEST:	 	GUARANTEE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President
	 
	 	 	 	 
	 

	 	Reference:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	And signed in Stamford, CT
	 	 	 	 
	This
2 day of August , 2007
	 	 	 	 
	 
	 	 	 	 
	ATTEST:	 	NATIONAL INDEMNITY COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Peter [Illegible]
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	ACTUARY
	 
	 	 	 	 
	 

	 	Reference:
	 	RA-2606

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	 	SCHEDULE 1
	 	 	2007	 

SPECIFIC BUSINESS OPERATIONS EXCLUSIONS

These exclusions apply based on the activities performed by a business and therefore will not always be
identified by a class code.

The related class codes are those with known operations to be excluded — They are not meant to be all
inclusive. They DO NOT include State specific codes which must be identified through the Scopes Manual.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	Reinsurance Description of Operations to be Excluded

	 	 	 
	 	 	Related Class Codes & Descriptions	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 
	Airline and Aircraft Operations-Commerical Airline Crews

	 	7403   — Aircraft or Helicopter Air Carrier — Ground Crew
	 

	 	7405   — Aircraft or Helicopter Air Carrier — Flying Crew
	 

	 	7409* — Aircraft or Helicopter: Aerial Application
	 

	 	7420* — Aircraft or Helicopter: Public Exhibition
	 

	 	7421   — Aircraft or Helicopter: Transportation — Crew
	 

	 	7422* — Aircraft or Helicopter: NOC, not Helicopters
	 

	 	7423   — Aircraft or Helicopter Operation: Commuter
	 

	 	7425* — Aircraft Operation — Helicopters NOC
	 

	 	7431* — Aircraft or Helicopter — Commuter — Crew
	 

	 	9088* — Rocket or missile testing or Launching
	 
	 	 
	Asbestos Operations

	 	1852   — Asbestos Goods Manufacturing
	 

	 	5472   — Asbestos Removal Operation: Contractor
	 

	 	5473   — Asbestos Removal Operation: Contractor NOC
	 
	 	 
	Banks & Trust Companies: Employees of Contracting
Agencies in Bank Service: Guards, Patrols, Messengers
or Armored Car Crews

	 	7720   — With this specific language (CR)
	 
	 	 
	Blasting Rock

	 	6217   — Blasting Rock — Specialist Contractor (CR)
	 
	 	 
	Boat Building and Ship Building

	 	6854* — Ship Building — Iron or Steel — NOC

Quota Share

Contract Wording

July 11, 2007D

Page 12 of 15

 

	 	 	 
	 

	 	All related “F” Classes Separately Identified**
	 

	 	6843* — Ship Building Iron or Steel
	 

	 	6872* — Ship Repair or Marine Railway
	 

	 	6882* — Ship Repair Conversion
	 

	 	8709* — Stevedoring: Talliers, Inspectors
	 

	 	7016* — Vessels NOC — Program 1
	 

	 	7024* — Vessels NOC — Program 2 State Act
	 

	 	7038* — Boat Livery — Boats under 15 Tons — Program 1
	 

	 	7046* — Vessels — Not Self-Propelled — Program 1
	 

	 	7047* — Vessels — NOC — Program 2 USL Act
	 

	 	7050* — Boat Livery — Boats under 15 Tons-Program 2
USL Act
	 
	 	 
	 

	 	7090* — Boat Livery-Boats under 15 Tons-Program 2
State Act
	 

	 	7098* — Vessels — Not Self-Propelled-Program 2 State Act
	 

	 	7099* — Vessels-Not Self-Propelled-Program 2 USL Act
	 

	 	7309* — Stevedoring NOC
	 

	 	7313* — Ore or Coal Dock Operation
	 

	 	7317* — Stevedoring by Hand or Truck
	 

	 	7323* — Stevedoring Explosive Materials
	 

	 	7327* — Stevedoring Containerized Freight
	 

	 	7333* — Dredging — All Types — Program 1
	 

	 	7335* — Dredging — All Types — Program 2 State Act
	 

	 	7337* — Dredging — All Types — Program 2 USL Act
	 

	 	7350* — Freight Handling & Stevedoring
	 
	 	 
	Construction, operation, repair or maintenance of:

	 	2702   — Dam or Lock Construction (CR)
	     Bridges

	 	5037* — Painting Metal Structure Over Two Stories
	     Dams or Locks

	 	5040* — Iron or Steel Erection — Frame Structures
	     Dikes or Revetments

	 	5059* — Iron or Steel; Erection — Frame Structures
	     Subways

	 	                              Less Than Two Stories
	     Sub-Aqueous Works Under Pressure

	 	5222* — Concrete Const. In Connection w/Bridges
	     Tunnels

	 	5403   — Construction: Wooden Bridges (Desc)
	 

	 	6003   — Wood Bridge Construction (Desc)
	 

	 	6005   — Dike or Revetment Construction (CR)
	 

	 	6017   — Dam or Lock Construction: Concrete Work
	 

	 	6018   — Dam or Lock Construction: Earthmoving
	 

	 	6251* — Tunneling — Not Pneumatic
	 

	 	6252* — Shaft Sinking
	 

	 	6260* — Tunneling — Pneumatic
	 

	 	7133   — Subway Operation (Desc)
	 

	 	7538* — Electric Light or Power Line Construction
	 

	 	7540* — Electric Light or Power Co-op;REA Project only
	 

	 	9019   — Bridge or Vehicular Tunnel Operation

Quota Share

Contract Wording

July 11, 2007D

Page 13 of 15

 

	 	 	 
	Demolition or Wrecking of:

	 	5022   — Wrecking Bldgs or Structures — Masonry (CR)
	      Bridges

	 	5057* — Wrecking Bldgs/Structures — Iron or Steel (CR)
	      Buildings

	 	5213   — Wrecking Bldgs or Structures — Concrete (CR)
	      Maritime Structures

	 	5403   — Wrecking Bldgs or Structures — Wooden (CR)
	Demolition or Wrecking of:

	 	6003   — Wrecking of Piers or Wharfs (Desc)
	     Vessels

	 	7394*, 7395* & 7398* — Marine Wrecking (CR)
	 
	 	 
	Detective or Patrol Agencies

	 	7720   — Detective or Patrol Agencies (CR). Not applicable
to unarmed patrol personnel.
	Firefighters

	 	7704   — Firefighters
	 
	Gas Main, Steam Main or Water Main Construction

	 	6319   — Gas Main or Connection Construction
	     Or Connection Construction

	 	6206* — Oil or Gas Well-Cementing
	 

	 	7515* — All Oil or Gas Pipeline Operation
	 
	 	 
	Manufacturing, transportation, packing, handling,

	 	3574   — Arms Mfg-Small & Cartridge Mfg (CR)
	shipping, storage or loading into containers:

	 	3632   — Projectile or Shell Mfg (CR)
	     Explosives (incl substance intended for use as)

	 	4771* — Explosives or Ammunition Manufacturing
	     Ammunitions, fuses or arms

	 	4777   — Explosives Distributors
	     Propellant charges

	 	7228   — Hauling Explosives or Ammo — Local (CR)
	     Detonating devices

	 	7229   — Hauling Explosives or Ammo — Long Dist (CR)
	     Fireworks

	 	7360   — Packing/Handling/Shipping Expl or Ammo (CR)
	     Celluloid, magnesium, nitroglycerine or pyroxylin
	 	 
	 
	 	 
	Mfg, packing, handling, shipping or storage of:

	 	4635* — Oxygen or Hydrogen Manufacturing
	     Natural or artificial fuel gases

	 	4740   — Oil Refining — Petroleum
	     Butane or propane

	 	8350   — Gasoline Dealer
	     Gasoline or liquefied petroleum gas (LPG)
	 	 
	 
	 	 
	Mining of All Types Including:

	 	1005* — Coal Mining — Surface
	     Underground

	 	1016   — Coal Mining NOC
	     Surface

	 	1164* — Mining NOC — Not Coal — Underground
	     Quarrying

	 	1165   — Mining NOC — Not Coal — Surface
	 

	 	1624   — Quarry NOC
	 

	 	1654   — Quarry — Cement Rock-Surface
	 

	 	1655   — Quarry — Limestone — Surface (CR)
	 

	 	1710   — Stone Crushing — Included by SIC
	 

	 	1741* — Flint or Spar Grinding
	 

	 	1803* — Stone Cutting or Polishing NOC
	 

	 	4000   — Sand or Gravel Digging — Included by SIC
	 
	 	 
	Oil or Gas Burner Installation

	 	3724   — Oil or Gas Burner Installation-Commercial (CR)
	 

	 	3726* — Boiler Installation or Repair
	 

	 	5183   — Oil or Gas Burner Installation — Domestic (CR)
	 
	 	 
	Police Officers

	 	7720   — Police Officers

Quota Share

Contract Wording

July 11, 2007D

Page 14 of 15

 

	 	 	 
	Railroads

	 	6702, 6703 & 6704 — RR Construction — State & Federal
	Except — scenic railways and access lines

	 	7133 — Railroad Operations NOC
	               industrial aid owner operations if incidental

	 	7151 , 7152 & 7153 — RR Operations — State & Federal
	 

	 	7382 — Scheduled RR Operations (CR)
	 

	 	7855 — RR Construction: Laying or Relaying of Tracks
	 

	 	8734, 8737, 8738 — Sales for RR ops — State & Fed
	 

	 	8805, 8814 & 8815 — Clerical for RR ops — State & Fed
	 
	 	 
	Sewer Construction — All Operations

	 	6306 — Sewer Construction
	 

	 	3620 — Pressure Vessel Manufacturing (Desc)
	 
	 	 
	Tank Installation: Gasoline Service Stations

	 	3724 — Tank Installation — Gas Stations (CR)

Quota Share

Contract Wording

July 11, 2007D

Page 15 of 15exv10w33

Exhibit 10.33

COLLATERAL CARRY FORWARD AGREEMENT

FOR OWNER OF SEGREGATED PORTFOLIO

IN CALEDONIAN REINSURANCE SPC

THIS COLLATERAL CARRY FORWARD AGREEMENT, dated as of the 16th day of August, 2005
(referred to herein as the “Agreement”), is entered into by
and between WESTWIND HOLDING COMPANY,
LLC, a Florida limited liability corporation (referred to herein as “Shareholder”), PROGRESSIVE
EMPLOYER SERVICES III, L.L.C., (referred to herein as the “Insured”), and GUARANTEE INSURANCE
COMPANY, a South Carolina corporation (referred to herein as “GIC”).

WITNESSETH:

WHEREAS, the Insured is an affiliate or subsidiary of Shareholder; and

WHEREAS, the Insured is insured for certain workers’ compensation risks by GIC; and

WHEREAS, GIC additionally issues separate insurance policies to the Insured’s staffing accounts;
and

WHEREAS, upon full and open discussion with GIC and such other parties as it may have deemed
appropriate, Shareholder has chosen to participate in the reinsurance results of the Insured’s
business insured with GIC, as a result of which Shareholder opted to establish and
invest, pursuant to Cayman Islands law, in Segregated Portfolio 110 (referred to herein as “SP
110”) within CALEDONIAN REINSURANCE SPC, a Cayman Islands corporation (referred to herein as
“Caledonian”), into which certain of the Insured’s insured risks will be reinsured. Pursuant to
GIC’s reinsurance agreements with Caledonian and GIC’s understanding with Shareholder and the
Insured, SP110 will participate in 90% of such reinsurance results, and GIC shall participate in
10% of the reinsurance results, subject to certain aggregate limits; and

WHEREAS, a requirement of said arrangement is that Shareholder or the Insured provide and maintain,
on account with GIC, a certain amount of collateral during the time that the GIC policies are in
effect, (referred to herein as the “Collateral Account”). The funds required to be maintained in
the Collateral Account are to be determined in accordance with that certain initial Participation
Agreement entered into by and between Shareholder and SP110 on or about August 16, 2004, as it may
be amended, modified or renewed from time to time, (referred to herein as the “Participation
Agreement”), as well as the provisions of this Agreement; and

WHEREAS, the Collateral Account may be comprised of cash, letters of credit or other financial
instruments as GIC shall determine to be acceptable; and

WHEREAS, it is possible that, at any time while the policy is in effect, the Collateral Account
shall have collateral that is more than the amount necessary to secure the Insured’s risks paid

1

 

and incurred during the time while the policies covered by this Agreement are in effect (referred
to herein as the “Overage” as further defined below); and

WHEREAS, it is also possible that, at any time while the policy is in effect, GIC may similarly
determine that there are not sufficient funds in the Collateral Account during the time while the
policies covered by this Agreement are in effect and therefore not sufficient to satisfy its
collateral needs (referred to herein as the “Deficit” as further defined below); and

WHEREAS, in the event that GIC determines that there is an Overage, the Insured may carry over the
Overage to have it credited and applied to the amount of collateral that GIC requires in the
Collateral Account in connection with subsequent insurance coverages granted to the Insured;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, Shareholder, the Insured and GIC agree as
follows:

Section 1.
Premium and Collateral. The Insured has paid or shall pay to GIC the premium,
(referred to herein as the “Premium”), relating to the policies issued herewith and of even date
herewith (referred to herein as the “the Policies”) for insurance against certain workers’
compensation risks during the policy year commencing August 16, 2005, and concluding August 15,
2006 (referred to herein as the “Current Policy Year”), which Premium is subject to adjustment over
the course of the Current Policy Year depending on changes in employee enrollment at the Insured
and which Premium is estimated to be $7,960,902.

For both the Prior Policy Year and the Current Policy Year, GIC has required and the Shareholder or
the Insured has provided or shall provide maximum cash collateral (the “Cash Collateral”) equal to
twenty percent (20%) of the Premium for each Policy Year (referred to herein as the “Overall
Aggregate Limit”). The Cash Collateral for the Current Policy Year is estimated to be
$1,592,180.00. Shareholder and/or the Insured agree to maintain the Cash Collateral initially in
the Collateral Account at the amounts indicated below, subject to replenishment of any Deficits (as
hereinafter defined) by the Shareholder and/or the Insured. The Premium has been or shall be paid
in cash. The Collateral Account has been or shall be comprised of cash, letters of credit and such
other financial instruments or liquid assets as shall be acceptable in kind and amount to GIC.
Shareholder and/or the Insured agree to initially fund the Collateral Account as follows:

     A. Claims Under $75,000. The insurance policies for the Current Policy Year to be
issued by GIC to the Insured and its affiliates and client companies will contain a $75,000.00
deductible per occurrence (the “Within the Deductible Claims”). Shareholder and/or the Insured
shall pay GIC $500,000.00 in collateral to be applied by GIC to the Within the Deductible Claims,
(the “Deductible Claims Collateral”), each of which claim shall not total more than $75,000.00.
Said $500,000.00 shall be paid to GIC in five (5) equal monthly installments in accordance with the
following schedule and amounts:

2

 

	 	 	 	 	 
	August 16, 2005
	 	$	100,000.00	 
	September 16, 2005
	 	$	100,000.00	 
	October 16, 2005
	 	$	100,000.00	 
	November 16, 2005
	 	$	100,000.00	 
	December 16, 2005
	 	$	100,000.00	 
	 
	 	 	 
	Total:
	 	$	500,000.00	 
	 
	 	 	 

GIC shall credit the Insured with interest on the Deductible Claims Collateral on a monthly basis
(on the first day of each month) based on the Federal Reserve overnight money market rates as
quoted in The Wall Street Journal from time to time during the interim that these funds
shall be held by GIC.

Every thirty (30) days, GIC shall bill the Insured for claims paid within the deductible during the
immediately completed preceding month. Should the Insured fail to pay such billing within the
thirty (30) days following the date of GIC’s billing, GIC shall have the right to cancel and
terminate the coverage in accordance with the requirements of the state in which Insured is
domiciled. Furthermore, GIC will have the right to offset any other funds of the Insured’s,
Shareholder’s or SP 110’s, including but limited to collateral, SP 110 profits, or any other funds
available to fulfill such obligations as necessary under this Agreement.

The parties agree and acknowledge that the monies discussed in this Section 1(A) shall not
constitute part of the Cash Collateral spelled out and required under the Reinsurance Agreement
applicable to the current policy issued to the Insured.

     B. Claims $75,000 or Higher. Shareholder or the Insured shall pay SP 110 $200,000.00
in collateral to be applied to any and all claims totaling or exceeding $75,000.01 (the “Excess
Claims”), the pro rata portion of which shall have been sent to SP 110 by GIC in accordance with
that certain Reinsurance Agreement between Shareholder and GIC, for which portion SP 110 is
responsible to GIC in accordance with said Reinsurance Agreement. Shareholder or the Insured shall
pay said $200,000.00 to SP 110 in five (5) equal monthly installments in accordance with the
following schedule and amounts:

	 	 	 	 	 
	August 16, 2005
	 	$	40,000.00	 
	September 16, 2005
	 	$	40,000.00	 
	October 16, 2005
	 	$	40,000.00	 
	November 16, 2005
	 	$	40,000.00	 
	December 16, 2005
	 	$	40,000.00	 
	 
	 	 	 
	Total:
	 	$	200,000.00	 
	 
	 	 	 

3

 

In addition, Shareholder and/or the Insured shall pay GIC, within ten (10) business days of GIC’s
notification to them, any Deficit in the Collateral Account resulting from the application of
development factors set forth in Section 3(B) of this Agreement.

The
parties agree and acknowledge that the $200,000.00 shall constitute part of the Cash
Collateral for the Current Policy Year and shall be credited to the Collateral Account immediately
upon being paid by Shareholder or the Insured.

Section 2.
SP 110. GIC shall cede reinsurance to SP110 as set forth the Reinsurance
Agreement entered into by and between GIC and SP 110 in connection herewith.

Section 3.1.
Policy Renewal, Overage and Deficit. The Insured has renewed the
above-described coverage with GIC and Shareholder is continuing its participation in SP 110. The
Insured was previously covered and participated as indicated above during the policy year that
commenced August 16, 2004 and concluded August 15, 2005, (the “First Policy Year”). In that regard,
Shareholder and/or the Insured were similarly required to maintain a certain level of collateral in
the Collateral Account. GIC shall determine the level needed in the Collateral Account for the
Current Policy Year utilizing the following guidelines, it being understood and agreed that
references below to aggregate limits shall apply only to the Excess Claims and not in the case of
the Within the Deductible Claims:

     A. If at any time GIC determines that an Overage exists in the Collateral Account, that
Overage shall be carried over, applied and credited to the new amounts that Shareholder or the
Insured will be required to deposit in the Collateral Account in connection with the issuance of a
new policy or the continuation of an existing policy. If at any time GIC determines that a Deficit
exists, Shareholder or the Insured shall, within ten (10) business days of being so notified by
GIC, replenish the Collateral Account to the amount of the Deficit. GIC’s determination shall
consider the following:

	 	1.	 	Collateral Requirements. The Collateral Account has been established
for the purpose of paying the Insured’s quota share of the losses, (the “Insured’s
Quota Share Losses”), applicable to the policies which GIC has issued to the Insured”.
Subject to an aggregate limit of $1,000,000 per occurrence (the “Per Occurrence
Aggregate limit”) and the Insured and/or Shareholder shall be required to fund the
Collateral Account to pay the Insured’s Quota Share Losses, for both policy years,
which shall equal the sum of the following, multiplied by 90%:

	 	a.	 	With respect to the First Policy Year, claims and expenses (including,
but not limited to, so-called incurred but not reported claims and related
expenses) attributable to the policies which GIC has issued to the Insured, up to
the Per Occurrence Aggregate Limit or the Overall Aggregate Limit for the First
Policy Year, whichever is less.
	 
	 	b.	 	With respect to the Current Policy Year, claims and expenses
(including, but not limited to, so-called incurred but not reported claims and
related

4

 

	 	 	 	expenses) attributable to the policies which GIC has issued to the Insured that are
in excess of $75,000 per occurrence, but less than the Per Occurrence Aggregate
Limit, up to the Overall Aggregate Limit for the Current Policy Year, whichever is
less.

	 	2.	 	Calculation of “Net Ceded Premium”. “Net Ceded Premium” shall be
defined as 90% of the following amounts:

	 	a.	 	With respect to the First Policy Year, the amount paid as gross premium
by the Insured to GIC for the First Policy Year, less the portion thereof
attributable to fixed costs (“Fixed Costs), which shall be defined as policy taxes,
and GIC’s underwriting, fronting, claims handling, captive and reinsurance fees. As
agreed to by the Insured and GIC prior to commencement of the First Policy Year,
Fixed Costs for the First Policy Year constitute approximately 37% of gross premium
remitted by the Insured to GIC for the First Policy Year.
	 
	 	b.	 	With respect to the Current Policy Year, the Collateral Account will be
credited with the amount paid as gross premium by the Insured to GIC for the
Current Policy Year, less the portion thereof attributable to Fixed Costs. As
agreed to by the Insured and GIC contemporaneously herewith, Fixed Costs for the
Current Policy Year constitute approximately 38% of gross premium to be remitted by
the Insured to GIC for the Current Policy Year. Attached hereto and incorporated
herein is a premium rating algorithm for the Current Policy Year.

	 	3.	 	Balance of Collateral Account. The Collateral Account shall be credited
with Net Ceded Premium for the First Policy Year, Net Ceded Premium to be paid during
the Current Policy Year, and all investment income attributed to SP110. The Collateral
Account shall be debited with the amount of any dividends related to SP 110 that have
been paid to Shareholder, and with any funds withdrawn to pay the Insured’s Quota Share
Losses.
	 
	 	4.	 	Calculation of “Overage” or Deficit.” If the balance of the Collateral
Account for both policy years, plus funds previously withdrawn to pay the Insured’s
Quota Share Losses, exceeds the amount of the Insured’s Quota Share Losses attributable
to both policy years, the difference thereof shall be defined as an “Overage”. If the
balance of the Collateral Account for both policy years, plus funds previously
withdrawn to pay the Insured’s Quota Share Losses, is less than the amount of the
Insured’s Quota Share Losses attributable to both policy years, the difference thereof
shall be defined as a “Deficit”. If a Deficit exists, Shareholder or the Insured shall
be required to add to the Collateral Account adequate funds, as determined by GIC in
accordance herewith, to eliminate the Deficit. The calculation of whether an Overage

5

 

	 	 	 	or a Deficit exists may be made by GIC at any time, and Shareholder and/or the Insured
agree to fund the Collateral Account to eliminate any Deficit by funding the Collateral
Account within ten (10) business days after receiving such notification from GIC,
provided however, that at no time shall the Insured or Shareholder be obligated to make
any payment to the Collateral Account if such payment will result in the payment of Cash
Collateral in excess of the Overall Aggregate Limit. Likewise, in the event an Overage
exists, the Insured shall be entitled to a credit that may be applied against future
Cash Collateral requirements of the Insured.
	 
	 	5.	 	Application of Industry Standards. In all circumstances, incurred
losses and claim reserves shall be established and determined in accordance with
industry standards. Notwithstanding anything that may be contained herein to the
contrary, for purposes of determining the existence of Overages and Deficits as
defined by this Agreement, the Insured’s risks, paid and incurred, shall be calculated
and determined by taking the incurred losses of the Insured for each policy year to
which this Agreement applies, multiplied by the applicable incurred loss development
factors promulgated or approved by the National Council on Compensation Insurance,
(“NCCI”), for the State of Florida (or the applicable state to which the Insured’s
claims relate) for each respective policy year. If NCCI has not promulgated factors
for any applicable period, then extrapolated NCCI factors shall be applied.

     B. If, at any time after crediting the Overage to the Collateral Account, the Insured’s loss
and/or expense development subsequently deteriorates in cases attributable to past policies, or
actual losses or expenses subsequently occur that are attributable to past policies, GIC may
withdraw and apply the amount of the Overage and other funds and assets from the current Collateral
Account necessary to cover such loss and/or expense deterioration or actual losses and/or expenses.
Shareholder and the Insured acknowledge that, in such event, GIC may require Shareholder or the
Insured to replenish the Collateral Account to the level it stood before the requisite amount of
the Overage and, if applicable, other funds and assets, were withdrawn to cover the past loss
and/or expense deterioration or actual losses and/or expenses. Shareholder and the Insured
additionally acknowledge that, in the event of a Deficit that cannot be funded by the return of the
Overage, GIC may also require Shareholder and/or the Insured to fund the Collateral Account to
levels necessary to address the deterioration of losses and expenses. Shareholder and the Insured
agree to replenish such amount within the aforementioned ten (10) business days after receiving
notification from GIC. At all times, GIC shall make available to Insured and/or Shareholder all
related records for Shareholder’s or the Insured’s review. Further, GIC shall provide Shareholder
with accountings of the balance of the Collateral Account no less than monthly. Notwithstanding
anything contained herein to the contrary, at no time shall the Insured or Shareholder be obligated
to replenish any Deficit or pay any funds into the Collateral Account if such payment will result
in the payment of Cash Collateral in excess of the Overall Aggregate Limit.

6

 

C. As of six (6) months after the expiration or earlier termination of the policies for the
Current Policy Year, and as of every six (6) months thereafter, (the “Evaluation Dates”), GIC shall
calculate whether or not an Overage or Deficit exists. Within thirty (30) days after each
Evaluation Date, GIC shall provide the Insured and/or Shareholder with a detailed accounting, which
shall include a calculation of the amounts held in the Collateral Account and the amount of the
Insured’s Quota Share Losses as of the particular Evaluation Date. With respect to the Insured’s
Quota Share Losses, the accounting shall include a breakdown that itemizes the reserves, amounts
paid, amounts incurred and loss development factors applied. In the event an Overage exists, GIC
further agrees to use reasonable best efforts to assist shareholder in obtaining any dividends it
is entitled to from Caledonian in connection with SP110’s reinsurance results. To the extent, if
any, that Shareholder does not receive within sixty (60) days after each Evaluation Date any SP110
dividends that it is entitled to as a result of the Participation Agreement, GIC agrees that
Shareholder or the Insured shall have the right to have such dividends credited to any future sums
due to GIC until such dividends are paid.

Section 3.2. Deductible Claims Collateral. As of each Evaluation Date, and in addition to
the accounting required above, GIC shall also provide the Insured with an accounting of the then
existing balance of the Deductible Claims Collateral, plus earned interest, (the “Deductible
Collateral Account”), and a statement reflecting the amount of outstanding reserves within the
Insured’s deductible limits of $75,000 per occurrence, (the “Deductible Reserves”). The Deductible
Reserves shall be calculated by:

	 	A.	 	Taking the incurred amount of the Insured’s Quota Share Losses attributable to the
Current Policy Year, (the “Developed Loss Amount”), which is already inclusive of
increases due to the application of the then applicable NCCI loss development factors for
the particular Evaluation Date;
	 
	 	B.	 	Subtracting the portion of the Developed Loss Amount that is in excess of the
Insured’s deductible limits of $75,000 per occurrence; and
	 
	 	C.	 	Subtracting the amounts previously paid by the Insured to GIC for losses within the
Insured’s deductible limits of $75,000 per occurrence.

If the amount in the Deductible Collateral Account exceeds the amount of the Deductible Reserves as
of any Evaluation Date, then GIC shall return, release or otherwise credit to the Insured the
amount of such excess no later than forty-five (45) days after the Evaluation Date.

Section 4. Indemnification. Shareholder and the Insured acknowledge that, in the insurance
business, losses, expenses and reserves established to cover losses are best estimates as to what
those losses, expenses and reserves will be or should be. In this regard, Shareholder and the
Insured acknowledge that losses, expenses and reserves are final and definite only upon the full
and final settlement of the claim to which they pertain. As a result, Shareholder and the Insured
agree to jointly or severally indemnify and hold GIC harmless from and against any

7

 

such estimates and agree to be bound by, and respond with regard to, any additional premium or
collateral that GIC, in its best judgment, determines are necessary, as well as the loss, expense
or reserve amounts as they turn out to be on final settlement of the claim to which they pertain.

Section 5. Final Settlement. Once a policy has lapsed, run off and reached its end, the
parties hereto will, using the calculations referred to above, effect a final settlement with
regard to the coverage provided under the particular policy under consideration, as affected by the
terms and conditions of the Reinsurance Agreement. Such final settlement shall include a final
determination as to whether GIC is owed additional Premium or Cash Collateral, or whether
Shareholder is entitled to a dividend from SP 110.

Section 6. Term. This Agreement shall be for a term of one (1) year from August 16, 2005,
and shall run concurrently with such insurance and continue until such insurance is run off,
cancelled, lapsed or not renewed.

Section 7. Notices. All notices, requests, demands and other communications hereunder must
be in writing and shall be deemed to have been duly given when delivered by hand, mailed by first
class, certified mail, return receipt requested, postage and certificate fees prepaid, or by
overnight mail service, fees prepaid, and addressed as follows:

          A. If to Shareholder or the Insured:

Westwind Holding Company, LLC

7560 Commerce Court

Sarasota, FL 33243

Attn: Steven F. Herrig

          B. If to GIC:

Guarantee Insurance Company

1061 521 Corporate Center Drive

Fort Mill, SC 29715

Attn: Marvin J. Cashion

E.V.P. & Chief Legal Officer

Addresses may be changed by notice in writing signed by the addressee.

Section 8. Miscellaneous. This Agreement shall be construed and enforced in accordance with
and governed by the laws of the State of Florida without consideration of the State’s law on
conflicts or choice of laws. Neither this Agreement nor any terms hereof may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by the party against
which enforcement of such change, waiver, discharge or termination is sought. This Agreement

8

 

embodies the entire agreement and understanding between the parties hereto and supersedes all prior
agreements and understandings relating to the subject matter hereof and no party hereto has made
any representation, warranty or covenant in connection with the matters set forth herein except as
expressly stated herein or in any documents referred to herein. All the terms of this Agreement,
whether so expressed or not, shall be binding upon the respective personal representatives,
successors, heirs and assigns of the parties hereto and shall inure to the benefit of and be
enforceable by the parties hereto, their respective representatives, successors, heirs and assigns;
provided, however, that this Agreement may not be assigned by any party hereto without the prior
written consent of the other, provided however, that the rights of the Insured and Shareholder are
freely assignable to each other. In the event that any provision of this Agreement should be held
to be void, voidable or unenforceable, the remaining portions hereof shall remain in full force and
effect. The headings of this Agreement are for the purpose of reference only and shall not limit or
otherwise affect the meaning thereof. This Agreement may be executed simultaneously in several
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

IN WITNESS WHEREOF, Shareholder, the Insured and GIC have executed and entered into this Agreement
as of the date first above written.

	 	 	 	 	 
	 	WESTWIND HOLDING COMPANY, LLC:

 	 
	 	By:  	
 	 
	 	 	Title: CEO 	 
	 	 	 	 
	 
	 	PROGRESSIVE EMPLOYER SERVICESIII, LLC:

 	 
	 	By:  	
 	 
	 	 	Title: CEO 	 
	 	 	 	 
	 
	 	GUARANTEE INSURANCE COMPANY:

 	 
	 	By:  	
 	 
	 	 	Title: Chairman 	 
	 	 	 	 
	 

9

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