Document:

EX-10.1

 Exhibit 10.1 

Brokerage Multi-Line Reinsurance Agreement 
  

			
	REINSURED:	  	Tower Insurance Company of New York
		  	 a New York corporation

		  	 (doing business as Tower Select Insurance Company in the State of California)

		  	Tower National Insurance Company
		  	 a Massachusetts corporation

		  	Preserver Insurance Company
		  	 a New Jersey corporation

		  	Mountain Valley Indemnity Company
		  	 a New Hampshire corporation

		  	North East Insurance Company
		  	 a Maine corporation

		  	CastlePoint Insurance Company
		  	 a New York corporation

		  	Hermitage Insurance Company
		  	 a New York corporation

		  	Kodiak Insurance Company
		  	 a New Jersey corporation

		  	CastlePoint Florida Insurance Company
		  	 a Florida corporation

		  	CastlePoint National Insurance Company
		  	 an Illinois corporation

		  	Massachusetts Homeland Insurance Company
		  	 a Massachusetts corporation

		  	York Insurance Company of Maine
		  	 a Maine corporation

		
	REINSURER:	  	Arch Reinsurance Ltd.

 WHEREAS Tower Insurance Company of New York is the Pool Manager for the following companies: Tower National Insurance Company,
a Massachusetts corporation (for its own direct business and the business it assumes from Massachusetts Homeland Insurance Company, a Massachusetts corporation), Preserver Insurance Company, a New Jersey corporation (for its own direct business and
the business it assumes from Kodiak Insurance Company, a New Jersey corporation), North East Insurance Company, a Maine corporation (for its own direct business and the business it assumes from York Insurance Company of Maine, a Maine corporation),
CastlePoint Insurance Company, a New York 

 
corporation (for its own direct business and the business it assumes from CastlePoint Florida Insurance Company, a Florida corporation), Hermitage Insurance Company, a New York corporation, and
CastlePoint National Insurance Company, an Illinois corporation; 
 NOW, THEREFORE, intending to be legally bound hereby, the Company and the Reinsurer
agree as follows: 
 BUSINESS COVERED 
 By this
Contract, the Reinsurer agrees to reinsure the Quota Share Percentage of the Company’s liability under its Policies classified by the Company as: 
  

	 	1.	Brokerage Commercial Auto Liability, 

  

	 	2.	Brokerage Commercial Multi-Peril Property, 

  

	 	3.	Brokerage Commercial Multi-Peril Liability, 

  

	 	4.	Brokerage Other Liability (Monoline Liability). 

 TERM 

 

	A.	This Contract shall apply to all Loss Occurrences with a date of loss on or after July 1, 2013, on Policies in-force as at June 30, 2013 and Policies written or renewed with an effective date during the period
from July 1, 2013 to December 31, 2013 (both dates inclusive) unless the Contract is terminated earlier in accordance with the provisions of the SPECIAL TERMINATION ARTICLE. 

For Claims-Made Policies, only original Losses occurring at or after July 1, 2013 shall be covered hereunder (irrespective of claim-made
dates). 
  

	B.	Upon expiration or termination of this Contract, the Reinsurer shall remain liable under Policies in force as at December 31, 2013 as respects Loss Occurrences with dates of loss up the first anniversary date,
termination, or natural expiration date of such Policies, not to exceed 18 months in all from the effective date of the Policies. 

  

	C.	Notwithstanding the expiration or termination of this Contract as hereinabove provided, the provisions of this Contract will continue to apply to all obligations and liabilities of the parties incurred hereunder prior
to such expiration or termination. 

  
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 SPECIAL TERMINATION 
  

	A.	Either party may terminate this Contract at any time by providing written notice by certified mail to the other party at least 30 days in advance of the effective date of termination, upon the happening of any one of
the following circumstances: 

  

	 	1.	A State Insurance Department or other legal authority orders the other party to cease writing business; 

  

	 	2.	The other party has voluntarily ceased assuming new and renewal reinsurance business; 

  

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

 

	 	4.	For any period not exceeding 12 months which commences no earlier than 12 months prior to the inception of this Contract, the other party’s policyholders’ surplus, as reported in the financial statements of
such party has been reduced by whichever is greater, either 25% of the amount of surplus at the inception of this Contract or 25% of the amount at the latest anniversary; 

 

	 	5.	The other party has become merged with, acquired or controlled by any company, corporation, or individual(s) not controlling such party’s operations previously. However, this provision shall not apply where, as of
the effective date hereof, the acquiring or surviving company or corporation has a Standard and Poor’s and A.M. Best’s rating and Financial Size Category equal to or greater than the rating held by such party before the merger, acquisition
or change of control; 

  

	 	6.	The other party’s A.M. Best Financial Strength Rating has been assigned or downgraded below A-. 

  

	B.	In the event of such termination, the Company shall have the right, by giving the Reinsurer prior notice in its termination notice, to relieve the Reinsurer of liability for Loss Occurrences subsequent to the effective
date of termination. Upon such termination, the Reinsurer shall refund to the Company the portfolio of ceded unearned premium reserve, less any ceding commission previously allowed thereon, with respect to Policies in force as of the date of
termination. 

 DEFINITIONS 
 In
addition to the terms defined elsewhere in this Contract, the terms set forth below, wherever they appear in this Contract and regardless of whether they appear in a singular or plural form, shall have the meanings given herein: 

 

	A.	Declaratory Judgment Expense 

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

  
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	B.	Loss 

 “Loss” as used herein shall mean the actual loss, including any pre-judgment
interest which is included as part of an award or judgment and defense costs when part of the original Policy, paid or to be paid by the Company on its liability under the Policies and includes Extra Contractual Obligations, Excess of Policy Limits
liability, and Loss Adjustment Expense. All recoveries, salvages, and subrogations, which are actually recovered, and reinsurance inuring to the benefit of this Contract, whether collectible or not, shall be deducted from the amount of Loss. 

 

	C.	Loss Adjustment Expense 

 “Allocated Loss Adjustment Expenses” as used in this
Agreement shall mean all costs and expenses that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and costs of supersedeas and appeal bonds
and including a) pre-judgment interest, unless included as part of the award or judgment; b) post- judgment interest and c) legal expenses and costs incurred in connection with coverage questions and legal actions connected thereto, including
Declaratory Judgment Expenses. 
 Allocated Loss Adjustment Expenses shall include defense attorneys, and other claims and legal personnel of
Tower Insurance Company of New York/Tower Risk Management and other costs allocated to the defense and adjustment of a specific claim. Allocated Loss Adjustment Expense shall also include expenses of independent third parties, including but not
limited to coverage attorneys and appraisers, retained, assigned and/or employed by the Company in the settlement of claims. 
 Allocated
Loss Adjustment Expense shall not include Unallocated Loss Adjustment Expenses. For purposes of this definition, “Unallocated Loss Adjustment Expenses” shall mean the salaries and overhead of the Company’s employed claims adjusting
staff other than the in-house legal staff assigned to the defense of specific claims which are covered under Allocated Loss Adjustment Expense. 

For purposes of this Agreement, Allocated Loss Adjustment Expense and Unallocated Loss Adjustment Expense shall be treated in accordance with
the definitions herein, regardless of how the Company classifies Allocated Loss Adjustment Expense and Unallocated Loss Adjustment Expense in their claims systems. 

  
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	D.	Losses Incurred 

 “Losses Incurred” as used herein shall mean ceded Loss paid as of
the effective date of calculation, plus the ceded reserves for Loss outstanding and IBNR as carried by the Company as of the same date. 
  

	E.	Loss Occurrence 

 “Loss Occurrence” as used herein shall mean any Loss(es) and/or
series of Loss(es) arising out of a single event and/or original cause. 
  

	F.	Loss Ratio 

 “Loss Ratio” as used herein shall mean ceded Losses Incurred divided by
Ceded Reinsurance Premium, all as respects and arising from Policies under this Contract. 
  

	G.	Net Written Premium 

 “Net Written Premium” as used herein shall mean the gross
written premium of the Company for the Policies reinsured, less cancellations and return premiums, and less premiums ceded by the Company for reinsurance, if any, which inures to the benefit of this Contract. 

 

	H.	Policy 

 “Policy” as used herein shall mean the Company’s binders, policies,
endorsements and contracts providing insurance or reinsurance on the classes of business covered as described in the BUSINESS COVERED ARTICLE under this Contract. 
  

	I.	Quota Share Percentage 

 “Quota Share Percentage” as used herein shall mean 17.5%.

  

	J.	Risk 

 “Risk” as used herein shall follow the internal guidelines of the Company. 

 

	K.	Brokerage Business 

 “Brokerage Business” as used in this Agreement shall mean all
classes of business that are underwritten on an individual Policy basis by the Company’s underwriting staff through wholesale and retail agents and most or all of the services are provided by the Company as part of the overall product offering
that are Business Covered hereunder. 

  
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 TERRITORY 

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

EXTRA CONTRACTUAL OBLIGATIONS AND LOSS IN EXCESS OF POLICY LIMITS 
  

	A.	Extra Contractual Obligations 

 This Contract shall cover, within the limits hereof, Extra
Contractual Obligations. The term “Extra Contractual Obligations” means any punitive, exemplary, compensatory or consequential damages, other than Loss in Excess of Policy Limits, paid or payable by the Company as a result of any action or
proceeding against it by its insured, its insured’s assignee or a third party claimant, by reason of alleged or actual negligence, fraud or bad faith on the part of the Company in handling a claim under a Policy subject to this Contract. 

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 collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

 

	B.	Loss in Excess of Policy Limits 

 This Contract shall cover, within the limits hereof, Loss in
Excess of Policy Limits. The term “Loss in Excess of Policy Limits” means an amount that the Company would have been contractually liable to pay had it not been for the limit of the original Policy as a result of any action or proceeding
against it by its insured, its insured’s assignee or a third party claimant. Such Loss in Excess of Policy Limits shall have been incurred because of failure by the Company to settle within the Policy limit, or by reason of alleged or actual
negligence, fraud, or bad faith in rejecting an offer of settlement or in the preparation of the defense or in the trial of any action against its insured or in the preparation or prosecution of an appeal consequent upon such action. 

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 collusion with any individual or corporation or any other organization or party involved in the presentation, defense or settlement of any claim covered hereunder. 

  
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 EXCLUSIONS 

This Contract shall not apply to and specifically excludes the following: 
  

	1.	Liability as a member, subscriber or reinsurer of any pool, syndicate or association, but this exclusion shall not apply to Assigned Risk Plans or similar plans. 

 

	2.	Surety. 

  

	3.	Credit and Financial Guarantee. 

  

	4.	Treaty reinsurance assumed by the Company from other carriers, but this exclusion shall not apply to inter-company pooling; reinsurance of policies, contracts, and binders issued by another carrier, for the convenience
of the Company, in a state in which the Company is not licensed or surplus lines eligible; nor shall this exclusion apply to reinsurance assumed from an affiliated company, or facultative reinsurance of a captive. 

 

	5.	Life, Accident, and Health Insurance. 

  

	6.	Security and Exchange Commission (SEC) Liability. 

  

	7.	Kidnap and Ransom Insurance. 

  

	8.	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. 

  

	9.	Loss or liability excluded by the Nuclear Incident Exclusion Clauses - Liability - Reinsurance - U.S.A. and Canada; and Nuclear Energy Risks Exclusion Clause (Reinsurance) (1994) worldwide excluding U.S.A. and
Canada, attached hereto. 

  

	10.	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, contamination and/or fire
following thereon. 

  
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	11.	War as excluded in the Policies reinsured hereunder. This exclusion, however, will not be construed to apply to riots, strikes, civil commotion, vandalism, malicious damage including acts committed by the agent of any
government, party, or faction engaged in war, hostilities, or other war-like operation, providing such agent is acting secretly and not in connection with any operations of military or naval armed forces in the country where the interest insured is
situated. 

  

	12.	Loss Portfolio Transfers. 

  

	13.	Professional Liability of any kind including but not limited to Medical Malpractice, Fiduciary Liability, Directors and Officers Liability, Crime and Fidelity Liability, Lawyers Liability and Architects and Engineers
Liability, Employment Practices Liability. 

  

	14.	Workers’ Compensation Insurance. 

  

	15.	Boiler and Machinery. 

  

	16.	Aviation, Aerospace and Satellite. 

  

	17.	Residual Value Insurance. 

  

	18.	Product Recall. 

  

	19.	Political Risk Insurance. 

  

	20.	Marine insurance. 

  

	21.	Pure Financial Loss. 

  

	22.	Asbestos. 

  

	23.	Pollution and/or Seepage and/or Contamination. 

  

	24.	Tobacco/tobacco products. 

  

	25.	Cyber Risk. 

  

	26.	Any transmission and distribution lines being a meshwork of wire used by an Electric Public Utility or Telephone Public Utility or Cable Public Utility including supporting structures other than those within 1000 feet
of insured premises. 

  

	27.	Policies written through Insurance or Reinsurance Pools, Binders, Lineslip, Managing General Agents or any other automatic facilities arrangements. 

  
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	28.	Any Loss arising from New York Labor Law Section 240(1). 

  

	29.	Ex gratia payments. 

 SPECIAL ACCEPTANCE 

The Company may submit in writing to the Reinsurer, for special acceptance hereunder, business not covered by this Contract. If said business is accepted by
the Reinsurer in writing, it will be subject to the terms of this Contract, except as such terms are modified by such acceptance. 
 COVERAGE

  

	A	The Company shall cede and the Reinsurer shall accept as reinsurance its Quota Share Percentage of Loss arising from business covered hereunder as described under the BUSINESS COVERED ARTICLE and in accordance with the
terms, conditions and limitations of this Contract. 

  

	B.	The Reinsurer’s liability inclusive of Extra Contractual Liability, Loss in Excess of Policy Limits, Loss Adjustment Expense and Declaratory Judgment Expense for each and every Loss Occurrence involving two or more
Risks shall be limited to its share of $25,000,000 or 6.0% of the ultimate Ceded Reinsurance Premium, whichever is less; furthermore, the Reinsurer’s total liability inclusive of Extra Contractual Liability, Loss in Excess of Policy Limits,
Loss Adjustment Expense and Declaratory Judgment Expense in the aggregate for this Contract for all Loss Occurrences involving two or more Risks will be limited to its share of $25,000,000 or 6.0% of the ultimate Ceded Reinsurance Premium, whichever
is less. 

  

	C.	Declaratory Judgment Expense will be limited to an additional 90% of the applicable Policy limit, each Loss Occurrence, each Risk. 

  

	D.	Extra Contractual Obligations and Loss in Excess of Policy Limits will be limited to an additional 90% of the applicable Policy limit, each Loss Occurrence, each Risk. 

  
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 LOSS RATIO CAP 
  

	A.	The Reinsurer’s total liability for ceded Losses under this Contract will not exceed 120% of the Ceded Reinsurance Premium. 

  

	B.	Within 60 days after 12 months following the termination or expiration of this Contract, and annually thereafter until all Loss subject hereto has been finally settled, the Company shall report to the Reinsurer the Loss
Ratio for the term of this Contract. If the Reinsurer has previously paid Loss in excess of the Loss Ratio Cap out in paragraph A above, the Company shall return any such excess payments to the Reinsurer with its report. 

REINSURANCE PREMIUM 
 The Company will transfer to
the Reinsurer by October 15, 2013, the Reinsurer’s Quota Share Percentage of unearned Net Written Premium for Policies in force at June 30, 2013. Additionally, the Company will cede to the Reinsurer its Quota Share Percentage of the
Net Written Premium on all Policies written or renewed with an effective date on or after July 1, 2013 (together, the “Ceded Reinsurance Premium”). The estimated unearned Net Written Premium is $227,000,000 (for 100% basis). The exact
amount shall be confirmed by the Company and agreed by the Reinsurer at binding. 
 The payment of the initial transfer of unearned Net Written Premium is a
condition precedent to the liability of the Reinsurer under this Contract. 
 COMMISSION 

 

	A.	The Reinsurer shall allow the Company a 27.50% provisional commission on all Ceded Reinsurance Premium to be reported in accordance with the REPORTS AND REMITTANCES ARTICLE. The Company shall allow the Reinsurer return
commission on return premiums at the same rate. 

  

	B.	The commission shall be adjusted by reference to the Loss Ratio (as defined herein) and shall be calculated in accordance with a sliding scale which decreases on a linear scale from a maximum of 31.50% commission at a
Loss Ratio of 61.00% or less, to a minimum of 25.00% at a Loss Ratio of 69.00% or greater, calculated to 2 decimal places. 

  

	C.	The first calculation of the commission shall be on the account as at December 31, 2015 and as at quarterly intervals thereafter. The Company shall first calculate and report the adjusted commission within 30 days
of December 31, 2015 and within 30 days of each quarter-end thereafter. If the adjusted commission as of the date of adjustment is greater than commissions previously allowed by Reinsurer, Reinsurer shall remit the difference to Company within
10 calendar days after receipt and verification of Company’s report. If the adjusted commission as of the date of adjustment is less than the commissions previously allowed by Reinsurer, the Company shall remit the difference to the Reinsurer
with the Company’s report. 

  

	D.	It is expressly agreed that the commission allowed the Company includes provision for all dividends, commissions, taxes, assessments, and all other expenses of whatever nature, except Loss Adjustment Expense.

  
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 REPORTS AND REMITTANCES 
  

	A.	Within 30 days following the end of each quarter, the Company shall render a report to the Reinsurer showing the following for the quarter: 

 

	 	1.	Gross Written Premium and ceded Net Written Premium; 

  

	 	2.	Ceded Earned Premium and ceded Net Earned Premium; 

  

	 	3.	Ceding commission on (2) above; 

  

	 	4.	Paid Loss and Loss Adjustment Expense (net of any “cash call” amounts recovered under the provisions of the LOSS SETTLEMENTS ARTICLE); 

 

	 	5.	Reserves for outstanding Loss; 

  

	 	6.	Reserves for outstanding Loss Adjustment Expense; 

  

	 	7.	Reserves for unearned premium 

  

	 	8.	Reserves for IBNR. 

 The positive balance of subparagraph 2 less subparagraph 3 less
subparagraph 4 shall be remitted by the Company within 45 days of the quarter end. Any balance shown to be due the Company shall be remitted by the Reinsurer to the Company within 15 days of receipt of said report. 

It is acknowledged that for reporting purposes, “quarterly” reporting periods may not, in accordance with the Company’s
customary accounting and reporting practices, coincide with the calendar periods, in which case, subsequent reports may include days omitted from the prior periods 
  

	B.	The Company will issue individual loss reports for claims with gross reserves of $1,000,000 and greater. 

LOSS SETTLEMENTS 
  

	A.	 All loss settlements made by the Company that are within the terms and conditions of the Policy or by way of compromise, except as otherwise provided
in this 

  
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Contract, shall be binding upon the Reinsurer. The Reinsurer agrees to pay or allow, as the case may be, its share of each such settlement in accordance with this Contract. 

 

	B.	Should there be a gross loss in excess of or equal to $1,000,000, the Company may give the Reinsurer notice of payment made or its intention to make payment on a certain date. If the Company has paid the loss, payment
will be made by the Reinsurer immediately. If the Company intends to pay the loss by a certain date and has submitted proof of loss or similar document, payment will be due from the Reinsurer 24 hours prior to that date, provided the Reinsurer has a
period of five working days after receipt of said notice to dispatch the payment. Cash loss amounts specifically remitted by the Reinsurer as set forth herein will be credited to the next quarterly account. 

WARRANTY 
 The Company hereby represents to the
Reinsurer that the information provided to the Reinsurer set forth in Exhibit A is accurate and complete in all material respects. 
 TERRORISM EXCESS
RECOVERY 
 To the extent the Company makes recoveries under the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance
Extension Act of 2005 and the Terrorism Risk Insurance Program Reauthorization Act of 2007, and any other replacements, extensions or amendments thereto (the “Act”), that relate to specific claims under this Contract, a proportionate
amount of such recovery from the Act will be used to reduce the Loss hereunder. 
 SALVAGE AND SUBROGATION 

 

	A.	The Reinsurer shall be credited with its proportionate share of salvage or subrogation recoveries (i.e., reimbursement obtained or recovery made by the Company, less the Reinsurer’s proportionate share of Loss
Adjustment Expense incurred in obtaining such reimbursement or making such recovery) on account of claims and settlements involving reinsurance hereunder. The Company will enforce its rights to subrogation relating to any Loss, a part of which Loss
was sustained by the Reinsurer, and prosecute all claims arising out of such rights. 

  

	B.	In the event that there are no recoveries or the expenses exceed the amount of recovery, subrogation or other related expenses shall be treated and paid by the Reinsurer as part of Loss. 

  
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 RIGHT TO ASSOCIATE 

When so requested in writing by the Reinsurer, the Company shall afford the Reinsurer or the Reinsurer’s representatives the opportunity to associate with
the Company at the Reinsurer’s expense in the defense of any claim, suit, or proceeding, and the Company and Reinsurer shall cooperate in every respect in the defense of such claim, suit, or proceeding. 

DELAYS. ERRORS AND OMISSIONS 
 Any inadvertent
delay, omission or error shall not be held to relieve either party hereto from any liability which would attach to it hereunder if such delay, omission or error had not been made, provided such delay, omission or error is rectified upon discovery.

 OFFSET 
 The Company and the Reinsurer shall
have the right to offset any balance or amounts due from one party to the other under the terms of this Contract or any other contract heretofore or hereafter entered into between the Company and the Reinsurer, whether acting as assuming reinsurer
or ceding company. 
 TAXES 
 In consideration of
the terms under which this Contract is issued, the Company will not claim a deduction in respect of the premium hereon when making tax returns, other than income or profits tax returns, to any state or territory of the United States of America, the
District of Columbia or Canada. 
 FEDERAL EXCISE TAX 
  

	A.	The Reinsurer has agreed to allow for the purpose of paying the Federal Excise Tax the applicable percentage of the premium payable hereon (as imposed under Section 4371 et seq. of the U.S. Internal Revenue Code of
1986, as amended, and all related IRS Rulings) to the extent such premium is subject to the Federal Excise Tax. 

  

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

  

	C.	As respects premiums ceded to Reinsurers under this Contract, the Reinsurer agrees to indemnify the Company for any liability, expense, interest or penalty it may incur by reason of the Reinsurer’s breach of this
Article. 

  
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 RESERVES AND FUNDING 
  

	A.	The Reinsurer shall provide funding under the terms of this Article only if the Company shall be denied statutory credit for reinsurance ceded to that Reinsurer pursuant to the credit for reinsurance law or regulations
of any regulatory authority having jurisdiction over the Company’s reserves. In the event any of the provisions of this Article conflict with or otherwise fail to satisfy the requirements of the appropriate credit for reinsurance statute or
regulation, this Article shall be deemed amended to conform to the appropriate statute or regulation. 

  

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

  

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

  

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

  

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

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

 

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

  

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

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

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

  

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

  

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

  

	 	2.	If, however, the statement shows that the Reinsurer’s obligations are less than the balance of credit as of the statement date, the Company shall, within 30 days after receipt of written request from the 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. 

INURING REINSURANCE: NET RETAINED LINES 
  

	A.	 This Contract applies only to that portion of any Policy which the Company retains net for its own account (prior to deduction of any reinsurance that
inures solely to the benefit of the Company) and in calculating the amount of any Loss hereunder, only Loss in respect of that portion of any Policy which the Company retains net for

  
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its own account shall be included. This Contract shall have the benefit of inuring reinsurance contracts as per the schedule attached, on the same terms and conditions obtained by the Company.
These reinsurance contracts shall be deemed in place and renewed at the same terms. The Reinsurer shall bear its share of the cost of premium and reinstatement premium (but only provided such reinstatement premiums correspond to an inuring recovery
hereunder). The Reinsurer’s share of the cost shall be calculated, for each reinsurance contract, using the applicable premium adjusting rate to the applicable premium for business reinsured hereunder. For purposes of this Article,
inter-company reinsurance shall be entirely disregarded. 

  

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

  

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

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

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

 

	A.	This Contract constitutes the entire agreement between the parties with respect to the business reinsured by this Contract. 

  

	B.	This Contract may be altered or amended in any of its terms and conditions by mutual consent of the Company and the Reinsurer either by addenda hereto or (as respects special acceptances only) by exchange of letters (to
include electronic mail); such addenda or letters will then constitute a part of this Contract. 

  

	C.	This Article shall not be construed as limiting in any way the admissibility of evidence regarding the formation, interpretation, purpose, or intent of this Contract. 

  
 16 

 SEVERABILITY 

If any provision of this Contract shall be rendered illegal or unenforceable by the laws or regulations of any state or applicable regulatory jurisdiction,
such provision shall be considered void in such state or applicable regulatory jurisdiction, but this shall not affect the validity or enforceability of any other provision of this Contract or the enforceability of such provision in any other
jurisdiction. 
 GOVERNING LAW 
 This Contract
shall be construed in accordance with the laws of the State of New York without regard to its conflict of laws principles. 
 ACCESS TO RECORDS

 The Reinsurer or its designated representatives shall have access to the books and records of the Company on matters relating to this reinsurance
at all reasonable times for the purpose of obtaining information concerning this Contract or the subject matter hereof. 
 CONFIDENTIALITY

 The Reinsurer, except with the express prior written consent of the Company, shall not directly or indirectly, communicate, disclose or divulge to
any third party, any knowledge or information that may be acquired either directly or indirectly as a result of its participation in this Contract. The restrictions as outlined in this Article shall not apply to communication or disclosures that the
Reinsurer is required to make to auditors, both internal and external, affiliates, outside actuaries, consultants, retrocessionaires, legal counsel, arbitrators involved in any arbitration procedures under this Contract or disclosures required upon
subpoena or other duly-issued order of a court or other governmental agency or regulatory authority; however, such third parties are to be informed of these confidentiality restrictions by the Reinsurer. The Reinsurer shall not share, communicate or
otherwise disseminate the Company’s confidential information obtained by virtue of its subscription to this Contract with any employees (either of the Reinsurer or any affiliate) associated with its direct insurance operations. 

INSOLVENCY 
  

	A.	 In the event of the insolvency of the Company, this reinsurance shall be payable directly to the Company or to its liquidator, receiver, conservator
or statutory successor, with reasonable provision for verification, on the basis of the liability of the Company without diminution because of the insolvency of the Company or because the liquidator, receiver, conservator or statutory successor of
the Company has failed to pay all or a portion of any claim. It is agreed, however, that the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurer of the pendency of a claim against the
Company indicating the Policy or bond reinsured which claim would involve a possible liability on the part of the Reinsurer within a reasonable time after such 

  
 17 

	 	
claim is filed in the conservation or liquidation proceeding or in the receivership, and that during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own
expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurer shall be
chargeable, subject to the approval of the Court, against the Company as part of the expense of conservation or liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense
undertaken by the Reinsurer. 

  

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

  

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

  

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

ARBITRATION 
  

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

  

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

  

	C.	 The two arbitrators shall, before instituting the hearing, appoint an impartial third arbitrator who shall preside at the hearing. If the two
arbitrators are unable to 

  
 18 

	 	
agree upon the third arbitrator within 30 days of their appointment, the parties shall appoint the Umpire pursuant to the AIDA Reinsurance and Insurance Arbitration Society - U.S. (ARIAS) Umpire
Selection Procedure. If ARIAS fails to appoint the third arbitrator within 30 days of being requested to do so, either party may request a district court judge of the federal district court having jurisdiction over the geographical area in which the
arbitration is to take place, or if the federal court declines to act, the state court having general jurisdiction in such area to select the third arbitrator from a list of six individuals (three named by each arbitrator previously appointed). All
arbitrators shall be neutral and disinterested active or former senior executives of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 

  

	D.	Within 30 days after notice of appointment of all arbitrators, the panel shall meet and determine timely periods for briefs, discovery procedures and schedules for hearings. Unless the panel agrees otherwise,
arbitration shall take place in New York City, New York, but the venue may be changed when deemed by the panel to be in the best interest of the arbitration proceeding. 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. 

  

	E.	The panel shall be relieved of all judicial formality and may abstain from following the strict rules of law, procedure and evidence. The purposes of this Contract are not to be defeated by a narrow, technical
construction of its provisions; it will be considered an honorable undertaking and will be subject to liberal construction for the purpose of giving effect to the real intentions of the parties hereto. The panel shall not be obligated to follow any
one state’s law, and instead shall make its decision considering the custom and practice of the applicable insurance and reinsurance business as promptly as possible following the termination of the hearings. Judgment upon the award may be
entered in any court having jurisdiction thereof. 

  

	F.	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 attorney’s fees, to the extent permitted by law. 

SERVICE OF SUIT 
 (This Article is not intended to
conflict with or override the obligation of the parties to arbitrate their disputes in accordance with the ARBITRATION ARTICLE and is intended solely for the purpose of effectuating arbitration, including the enforcement of any award entered in any
such arbitration) 
  

	A	 In the event of the failure of the Reinsurer to pay any amount claimed to be due hereunder, the Reinsurer, at the request of the Company, shall submit
to the 

  
 19 

	 	
jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to
commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in
the United States. The Reinsurer, once the appropriate court is selected, whether such court is the one originally chosen by the Company and accepted by Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, shall
comply with all requirements necessary to give said court jurisdiction and, in any suit instituted against it upon this Contract, shall abide by the final decision of such court or of any appellate court in the event of an appeal. The validity
and/or enforceability of any arbitration award or judgment obtained in the United States shall not be contested by the Reinsurer in any jurisdiction outside of the United States. 

 

	B.	It is further agreed that service of process in such suit may be made upon Cahill Gordon & Reindel, LLP, 80 Pine Street, NY, NY 10005, and that in any suit instituted, 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 is 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. 

  

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

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

  
 20 

 INTERMEDIARY 

Guy Carpenter is hereby recognized as the intermediary negotiating this Contract and through whom all communications relating thereto shall be transmitted to
the Company or the Reinsurer. 
 Brokerage hereunder is 1.0% of the Ceded Reinsurance Premium. 

[signature page follows] 

  
 21 

 IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Contract as of the
date specified below: 
  

			
	COMPANY
	
	Tower Insurance Company of New York
		
	By	 	 /s/ Marina Contiero

		
	Print Name	 	 Marina Contiero

		
	Title	 	 Managing VP

		
	Date	 	 9/27/13

	
	REINSURER
		
	By	 	 /s/ Jerome Halgan

		
	Print Name	 	 Jerome Halgan

		
	Title	 	 Chief Underwriting Officer

		
	Date	 	 9/26/13

  
 22 

 SCHEDULE OF INURING REINSURANCES 

 

																	
	Description	  	Basis	  	Limit	 	  	Retention	 	  	Relnst.	  	Placed	 
						
	 Casualty Clash XOL
	  	LOD	  	 	5,000,000	  	  	 	5,000,000	  	  	1 @ 100%	  	 	100	% 
	 1st Property XOL
	  	RAD	  	 	5,000,000	  	  	 	5,000,000	  	  	2 @ 100%	  	 	100	% 
	 2nd Property XOL
	  	RAD	  	 	20,000,000	  	  	 	10,000,000	  	  	1 @ 100%	  	 	100	% 
	 Property Auto Fac
	  	RAD	  	 	40,000,000	  	  	 	30,000,000	  	  	Unlimited Free	  	 	100	% 

  
 23 

 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - 

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

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

  

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

  

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

 

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

  

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

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

  
 24 

 (3) Except for those classes of policies specified in Clause II of paragraph (2) and without
in any way restricting the operation of paragraph (1) of this Clause, it is understood and agreed that for all purposes of this reinsurance the original liability policies of the Reassured (new, renewal and replacement) affording the following
coverages: 
 Owners, Landlords and Tenants Liability, Contractual Liability, Elevator Liability, Owners or Contractors (including railroad)

 Protective Liability, Manufacturers and Contractors Liability, Product Liability, Professional and Malpractice Liability, Storekeepers

 Liability, Garage Liability, Automobile Liability (including Massachusetts Motor Vehicle or Garage Liability) 

shall be deemed to include, with respect to such coverages, from the time specified in Clause V of this paragraph (3), the following provision
(specified as the Broad Exclusion Provision): 
 It is agreed that the policy does not apply: 

Broad Exclusion Provision.* 
  

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

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

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

	II.	Under any Medical Payments Coverage, or under any Supplementary Payments Provision relating to (immediate medical or surgical relief, (first aid, to expenses incurred with respect to (bodily injury, sickness,
disease or death (bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. 

  
 25 

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

(a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been
discharged or dispersed therefrom; 
 (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,
processed, stored, transported or disposed of by or on behalf of an insured; or 
 (c) the (injury, sickness, disease, death or
destruction (bodily injury or property damages arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if
such facility is located within the United States of America, its territories, or possessions or Canada, this exclusion (c) applies only to (injury to or destruction of property at such nuclear facility (property damage to such nuclear
facility and any property thereat. 
  

	IV.	As used in this endorsement: 

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

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

  
 26 

 (With respect to injury to or destruction of property, the word “injury” or
“destruction” (“property damage” includes all forms of radioactive contamination of property (includes all forms of radioactive contamination of property. 

 

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

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

 

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

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

 BRMA 35A 

  
 27 

 NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - 

CANADA 
  

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

  

	2.	Without in any way restricting the operation of paragraph 1 of this clause it is agreed that for all purposes of this Contract all the original liability contracts of the Reinsured, whether new, renewal or replacement,
of the following classes, namely, 

 Personal Liability. Farmers’ Liability. Storekeepers’ Liability. 

which become effective on or after 31st December 1984, shall be deemed to include, from their inception dates and thereafter, the
following provision: 
 Limited Exclusion Provision. 

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

	3.	Without in any way restricting the operation of paragraph 1 of this clause it is agreed that for all purposes of this Contract all the original liability contracts of the Company, whether new, renewal or replacement, of
any class whatsoever (other than Personal Liability, Farmers’ Liability, Storekeepers’ Liability or Automobile Liability contracts), which become effective on or after 31st December 1984, shall be deemed to include, from their
inception dates and thereafter, the following provision: 

 Broad Exclusion Provision. 

It is agreed that this Policy does not apply: 
  

	 	(a)	to liability imposed by or arising under The Nuclear Liability Act; nor 

  

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

  
 28 

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

  

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

  

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

 

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

As used in this Policy: 
  

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

 

	2.	The term “radioactive material” means uranium, thorium, plutonium, neptunium, their respective derivatives and compounds, radioactive isotopes of other elements and any other substances that the Atomic Energy
Control Board may, by regulation, designate as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic energy; 

 

	3.	The term “nuclear facility” means: 

  

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

 

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

  

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

  
 29 

	 	(d)	any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste radioactive material; and includes the site on which any of the foregoing is located, together with all
operations conducted thereon and all premises used for such operations. 

  

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

 

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

 N.M.A. 1979a

 01/04/96 

  
 30 

 NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994) (WORLDWIDE EXCLUDING
U.S.A. & CANADA) 
 This Contract shall exclude Nuclear Energy Risks whether such risks are written directly and/or by way of reinsurance
and/or via Pools and/or Associations. 
 For all purposes of this Contract Nuclear Energy Risks shall mean all first party and/or third party insurances
or reinsurances (other than Workers’ Compensation and Employers’ Liability) in respect of: 
  

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

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

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

 

	 	(a)	The generation of nuclear energy; or 

  

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

  

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

 

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

 Except as undernoted, Nuclear Energy Risks shall not include: 
  

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

  

	(ii)	Any Machinery Breakdown or other Engineering insurance or reinsurance not coming within the scope of (I) above; Provided always that such insurance or reinsurance shall exclude the perils or irradiation and
contamination by Nuclear Material. 

 However, the above exception shall not extend to: 

 

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

  

	 	(a)	Nuclear Material; 

  

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

  
 31 

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

  

	 	•	 	Fire, lightning, explosion; 

  

	 	•	 	Earthquake; 

  

	 	•	 	Aircraft and other aerial devices or articles dropped therefrom; 

  

	 	•	 	Irradiation and radioactive contamination; 

  

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

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

Definitions 
 Nuclear Material” means:

  

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

  

	 	(ii)	Radioactive Products or Waste. 

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

 

	(i)	Any Nuclear Reactor; 

  

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

  

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

  
 32 

 “Nuclear Reactor” means any structure containing nuclear fuel in such an arrangement that a
self-sustaining chain process of nuclear fission can occur therein without an additional source of neutrons. 
 “Production, Use or Storage of
Nuclear Material” means the production, manufacture, enrichment, conditioning, processing, reprocessing, use, storage, handling and disposal of Nuclear Material. 

“Property” shall mean all land, buildings, structures, plant, equipment, vehicles, contents (including but not limited to liquids and gases)
and all materials of whatever description whether fixed or not. 
 “High Radioactivity Zone or Area” means: 

 

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

  

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

N.M.A. 1975a 

  
 33 

 Exhibit A 
  

			
	   1.0
	  	

Overview
		
	   1.1
	  	

2012 Annual Report
		
	   1.2
	  	

2013renewalsubmission12102012.xlsx
		
	   1.3
	  	

CA WC history (4)
		
	   1.4
	  	

Management Bios
		
	   1.5
	  	

Overview
		
	   1.6
	  	

Acquisitions
		
	   1.7
	  	

Historical development by year
		
	   2.0
	  	

Premium and Exposure Data
		
	   2.1
	  	

California WC June 2013
		
	   2.2
	  	

RYG - With Hazard grades (updated 100111).pdf
		
	   2.3
	  	

WC All States June 2013
		
	   3.0
	  	

Rate Information
		
	   3.1
	  	

Policy Details 2012 California
		
	   3.2
	  	

2013renewalsubmission12102012.xlsx
		
	   3.3
	  	

CA Rate History - All Companies 2010 to 2013
		
	   3.4
	  	

CA WC Rate Changes
		
	   3.5
	  	

Brokerage WC Price Monitoring May 2013
		
	   3.6
	  	

WC Price Monitoring May 2013 NBIS and EE Hall
		
	   3.7
	  	

NSM Temp Staffing Policy Details CA Only
		
	   3.8
	  	

NSM All Comp Policy Details CA Only
		
	   3.9
	  	

California WC

  
 34 

 Exhibit A (continued) 

 

			
	   3.10
	  	

RTH PEO renewal policy detail 2013
		
	   3.11
	  	

2013 Renewal - Summary of Policy Prem Changes
		
	   4.0
	  	

Experience Data
		
	   4.1
	  	

CA WC Claims
		
	   4.2
	  	

Claims Guidelines and Authority Levels
		
	   4.2.1
	  	

Tower Group Companies - WC Medical Only Best Practices
		
	   4.2.2
	  	

Tower Group Companies - WC Indemnity Claim Best Practices 081512
		
	   4.2.3
	  	

Audit Protocol Manual final 12-2012
		
	   4.3
	  	

WC CA Programs 2Q2013
		
	   4.4
	  	

WC CA Brokerage Triangle 2Q2013
		
	   4.5
	  	

Data Scope Documentation
		
	   4.6
	  	

Program Data - SRS
		
	   4.6.1
	  	

Buffer Layer Only SRS Indicated IBNR 2Q2013 using 0531 data
		
	   5.0
	  	

Reinsurance
		
	   5.1
	  	

2011 EXCESS SUBMISSION
		
	   5.2
	  	

2012renewalsubmission
		
	   5.3
	  	

Tower Group 2010 Reinsurance Proposal
		
	   5.4
	  	

2013 Tower Group - Sum of Excess Terms
		
	   5.5
	  	

Tower Group Inuring RI 2013
		
	   6.0
	  	

Reserve Analysis - WC Only
		
	   6.1
	  	

Analysis_Brokerage_2Q2013_WC_(e)
		
	   6.2
	  	

Brokerage Claim Count WC only (e)

  
 35 

 Exhibit A (continued) 

 

			
	   6.3
	  	

Brokerage and Program WC ULR 5 31 2013 (e)
		
	   6.4
	  	

Programs Analysis 2Q13 8 5 2013 WC only (e)
		
	   6.5
	  	

Specific Program Historical Triangle
		
	   6.5.1
	  	

AEQ AL Historical Data
		
	   6.5.2
	  	

AEQ WC Historical Data
		
	   6.5.3
	  	

CareWest Historical Data
		
	   6.5.4
	  	

CNIC Runoff Historical data
		
	   6.5.5
	  	

EE Hall Historical Data
		
	   6.5.6
	  	

Midwest Historical Data
		
	   6.5.7
	  	

NSM Historical Data
		
	   6.5.8
	  	

RTH Historical Data
		
	   6.5.9
	  	

WCNW Historical Data
		
	   7.0
	  	

Reserve Analysis Other Lines of Business
		
	   7.1
	  	

Analysis_Brokerage_2Q2013_Products_(e)
		
	   7.2
	  	

Analysis_Brokerage_2Q2013_AL_(e)
		
	   7.3
	  	

Analysis_Brokerage_2Q2013_CMPL_(e)
		
	   7.4
	  	

Analysis_Brokerage_2Q2013_OL_(e)
		
	   7.5
	  	

Brokerage Claim Counts as of 2013 2Q All other LOB Ex WC (e)
		
	   7.6
	  	

Programs Analysis 2Q13 8 5 2013 Non WC LOBs (e)
		
	   7.7
	  	

Commercial_Lines_Mix_as_of_Q2_2013_-_for_release_4
		
	   7.8
	  	

Commercial_Memo_v2_rev_
		
	   7.9
	  	

Plan 2H 2013 v3

  
 36 

 Exhibit A (continued) 

 

			
	   7.10
	  	

Pricing_and_Business_Mix_for_Specialty_v10_release
		
	   7.11
	  	

Specialty_Memo
		
	   7.12
	  	

Subject Premium Plan 2H 2013 v2 ALAE Split
		
	   7.13
	  	

Analysis_Brokerage_2Q2013_CMPP_(e)
		
	   7.14
	  	

Subject Premium Plan 2H 2013 v3 Liab CMPP
		
	   7.15
	  	

Non WC Class Distribution June 2013.xlsx
		
	   8.0
	  	

Financial Statements
		
	   8.1
	  	

GAAP
		
	   8.1.1
	  	

2010 10K-A
		
	   8.1.2
	  	

2011 10K-A
		
	   8.1.3
	  	

2012 10K-A
		
	   8.1.4
	  	

Q1 2012 10Q - A
		
	   8.1.5
	  	

Q1 2013 10Q
		
	   8.1.6
	  	

Q2 2012 10Q - A
		
	   8.1.7
	  	

Q3 2012 10Q - A
		
	   8.2
	  	

Statutory
		
	   8.2.1
	  	

annual statement
		
	   8.2.1.1
	  	

Tower Group Companies 2010 Annual Statement
		
	   8.2.1.2
	  	

Tower Group Companies Annual statement 2011
		
	   8.2.1.3
	  	

Tower Group Companies Annual Statement 2012
		
	   8.2.2
	  	

combined annual statement
		
	   8.2.2.1
	  	

00046_38_P_2010_O_C_1_00_NA_P

  
 37 

 Exhibit A (continued) 

 

			
	   8.2.2.2
	  	

00046_38_P_2011_O_C_1_00_NA_P
		
	   8.2.2.3
	  	

00046_38_P_2012_O_C_1_00_NA_P
		
	   8.2.2.4
	  	

00089_38_P_2011_O_C_1_00_NA_P
		
	   8.2.2.5
	  	

00411_38_P_2012_O_C_1_00_NA_P
		
	   8.2.2.6
	  	

AMENDED 2010 TOWER COMBINED 7-1-11 bar code
		
	   8.2.2.7
	  	

TICNY Combined Amended 2012 Annual Statement for printer
		
	   8.2.3
	  	

quarterly statement
		
	   8.2.3.1
	  	

Tower Group Companies 1Q12
		
	   8.2.3.2
	  	

Tower Group Companies 1Q2013
		
	   8.2.3.3
	  	

Tower Group Companies 2Q12
		
	   8.2.3.4
	  	

Tower Group Companies 3Q12 statements
		
	   8.3
	  	

Proxy
		
	   8.3.1
	  	

2010 Proxy
		
	   8.3.2
	  	

2011 Proxy
		
	   8.3.3
	  	

2012 Proxy
		
	   8.4
	  	

Annual Reports
		
	   8.4.1
	  	

Annual Report - Romance Copy - 2010
		
	   8.4.2
	  	

Annual Report - Romance Copy - 2011
		
	   8.4.3
	  	

Annual Report - Romance Copy - 2012
		
	   9.0
	  	

Rating Agency Presentations
		
	   9.1
	  	

AMB 2013 Final (exhibits)
		
	   9.2
	  	

AMB 2013 Final (presentation)

  
 38 

 Exhibit A (continued) 

 

			
	   9.3
	  	

Fitch Presentation Draft 2012-12-17
		
	 10.0
	  	

Pending Litigations
		
	 10.1
	  	

12727_1_CaseID12727 COMPLAINT1 (2)
		
	 10.2
	  	

12731_1_Feighay v Tower Group COMPLAINT1

  
 39EX-10.2

 Exhibit 10.2 

TOWER INSURANCE COMPANY OF NEW YORK 

TOWER NATIONAL INSURANCE COMPANY 

PRESERVER INSURANCE COMPANY 

NORTH EAST INSURANCE COMPANY 

CASTLEPOINT INSURANCE COMPANY 

HERMITAGE INSURANCE COMPANY 

KODIAK INSURANCE COMPANY 

CASTLEPOINT FLORIDA INSURANCE COMPANY 

CASTLEPOINT NATIONAL INSURANCE COMPANY 

QUOTA SHARE REINSURANCE AGREEMENT 

EFFECTIVE JULY 1, 2013 

INDEX 
  

							
	 ARTICLE 1
	 	 BUSINESS COVERED
	  	 	1	  
	 ARTICLE 2
	 	 FOLLOW THE FORTUNES
	  	 	1	  
	 ARTICLE 3
	 	 COMMENCEMENT AND TERMINATION
	  	 	2	  
	 ARTICLE 4
	 	 TERRITORY
	  	 	2	  
	 ARTICLE 5
	 	 EXCLUSIONS
	  	 	2	  
	 ARTICLE 6
	 	 REINSURANCE COVERAGE, LIMITS AND AGGREGATE LIMIT
	  	 	3	  
	 ARTICLE 7
	 	 DEFINITIONS
	  	 	4	  
	 ARTICLE 8
	 	 NET RETAINED LINES
	  	 	7	  
	 ARTICLE 9
	 	 REINSURANCE PREMIUM AND REINSURERS’ MARGIN
	  	 	8	  
	 ARTICLE 10
	 	 CEDING COMMISSION
	  	 	9	  
	 ARTICLE 11
	 	 FUND HELD ACCOUNT AND INTEREST CREDIT
	  	 	10	  
	 ARTICLE 12
	 	 TRUST ACCOUNT
	  	 	11	  
	 ARTICLE 13
	 	 ACCOUNTS, REMITTANCES AND ULTIMATE NET LOSS SETTLEMENTS
	  	 	13	  
	 ARTICLE 14
	 	 SPECIAL TERMINATION
	  	 	14	  
	 ARTICLE 15
	 	 COMMUTATION
	  	 	17	  
	 ARTICLE 16
	 	 CURRENCY
	  	 	17	  
	 ARTICLE 17
	 	 FEDERAL EXCISE TAX AND OTHER TAXES
	  	 	17	  
	 ARTICLE 18
	 	 RESERVES
	  	 	18	  
	 ARTICLE 19
	 	 EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS
	  	 	20	  
	 ARTICLE 20
	 	 OFFSET
	  	 	21	  
	 ARTICLE 21
	 	 ERRORS AND OMISSIONS
	  	 	21	  
	 ARTICLE 22
	 	 ACCESS TO RECORDS
	  	 	22	  
	 ARTICLE 23
	 	 INSOLVENCY
	  	 	23	  
	 ARTICLE 24
	 	 CONFIDENTIALITY AND PRIVACY AND PROTECTION OF DATA
	  	 	23	  
	 ARTICLE 25
	 	 ARBITRATION
	  	 	25	  
	 ARTICLE 26
	 	 SERVICE OF SUIT
	  	 	27	  
	 ARTICLE 27
	 	 LATE PAYMENTS
	  	 	28	  
	 ARTICLE 28
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	29	  
	 ARTICLE 29
	 	 MODE OF EXECUTION
	  	 	30	  
	 ARTICLE 30
	 	 VARIOUS OTHER TERMS
	  	 	30	  
	 ARTICLE 31    
	 	 INTERMEDIARY
	  	 	31	  

 ATTACHMENTS: 
 NUCLEAR
INCIDENT EXCLUSION CLAUSE – LIABILITY – REINSURANCE – U.S.A. 
 NUCLEAR INCIDENT EXCLUSION CLAUSE – LIABILITY – REINSURANCE –
CANADA 
 NUCLEAR INCIDENT EXCLUSION CLAUSE – PHYSICAL DAMAGE – REINSURANCE – (BRMA35B) 

NUCLEAR, BIOLOGICAL AND CHEMICAL EXCLUSION 
 WAR RISK EXCLUSION
CLAUSE (REINSURANCE) 
 INSOLVENCY FUND EXCLUSION CLAUSE 

POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE 

 TOWER INSURANCE COMPANY OF NEW YORK 

TOWER NATIONAL INSURANCE COMPANY 

PRESERVER INSURANCE COMPANY 

NORTH EAST INSURANCE COMPANY 

CASTLEPOINT INSURANCE COMPANY 

HERMITAGE INSURANCE COMPANY 

KODIAK INSURANCE COMPANY 

CASTLEPOINT FLORIDA INSURANCE COMPANY 

CASTLEPOINT NATIONAL INSURANCE COMPANY 

(hereinafter, collectively the “Company”) 

QUOTA SHARE REINSURANCE AGREEMENT 

EFFECTIVE JULY 1, 2013 

(hereinafter the “Agreement”) 

WHEREAS the Tower Insurance Company of New York is the Pool Manager for the following companies: Tower National Insurance Company, a
Massachusetts corporation (for its own direct business and the business it assumes from Massachusetts Homeland Insurance Company, a Massachusetts corporation), Preserver Insurance Company, a New Jersey corporation, (for its own direct business and
the business it assumes from Kodiak Insurance Company, a New Jersey corporation), North East Insurance Company, a Maine corporation, (for its own direct business and the business it assumes from York Insurance Company of Maine, a Maine corporation),
CastlePoint Insurance Company, a New York corporation, (for its own direct business and the business it assumes from CastlePoint Florida Insurance Company, a Florida corporation), Hermitage Insurance Company, a New York corporation, and CastlePoint
National Insurance Company, an Illinois corporation; 
 NOW, THEREFORE, intending to be legally bound hereby, the Company and the Reinsurer
agrees as follows: 
 ARTICLE 1 

BUSINESS COVERED 
 This Agreement
shall apply to all Policies written directly by the Company and classified by the Company as Brokerage Business only in respect of Business Automobile Liability, Commercial Multiple Peril Liability (both property and casualty), Other Liability, and
Workers’ Compensation lines of business all subject to the terms, conditions and exclusions of this Agreement. “Brokerage Business” shall have the meaning defined in the Article entitled DEFINITIONS. 

ARTICLE 2 
 FOLLOW THE FORTUNES

 The Reinsurers’ liability shall attach simultaneously with that of the Company and shall be subject in all respects to the
same risks, terms, conditions, interpretations, and to the same modifications, alterations, and cancellations as the respective Policies issued by the Company, the true intent of this Agreement being that the Reinsurers shall, in every case to which
this Agreement applies, follow the underwriting fortunes of the Company, subject always to the limits, terms, conditions and exclusions set forth in this Agreement. 

  
 1. 

 ARTICLE 3 

COMMENCEMENT AND TERMINATION 
 A. This Agreement
shall take effect 12:00:01 a.m., Eastern Standard Time, July 1, 2013 (the “Effective Date”) and shall apply to all losses occurring on or after the Effective Date in respect of all (i) Policies that are Business Covered and in
force at that time and (ii) all new and renewal Policies written with Policy period effective dates on and after the Effective Date, and shall remain in force until 11:59:59 p.m., Eastern Standard Time, December 31, 2013 (the
“Term”). 
 B. Upon expiration or termination of the Agreement, as applicable, the Reinsurers shall be liable for all losses occurring on and
after in respect of all in force Policies until the earlier of the expiration or the anniversary date of the Company’s Policies, but not to exceed a period of twelve (12) months plus odd time (maximum eighteen (18) months in total)
from the date the policy incepted. In the event that any Policy is required by statute or regulation or order to be continued in force, the Reinsurers will continue to remain liable with respect to each such Policy until the Company may legally
cancel, non-renew or otherwise eliminate liability under such Policy, but not to exceed twelve (12) months plus odd time (maximum eighteen (18) months in total) from the date the policy incepted. 

ARTICLE 4 
 TERRITORY 

This Agreement shall cover wheresoever the Company’s original Policies cover within the United States of America. 

ARTICLE 5 
 EXCLUSIONS 

A. This Agreement shall not cover Ultimate Net Loss in respect of the following: 
  

	 	1.	Liability arising out of all aircraft and airport risks including ownership, maintenance or use of any aircraft or flight operations; 

 

	 	2.	Professional Liability, when written as such; 

  

	 	3.	Insolvency and Financial Guarantee; 

  

	 	4.	Asbestos liabilities of any nature; 

  

	 	5.	Pollution liabilities of any nature; 

  

	 	6.	Assumed reinsurance with the exception of inter-affiliate reinsurance; 

  

	 	7.	Ex gratia payments; 

  

	 	8.	Credit and warranty business; 

  

	 	9.	Liability arising from Lead Paint; 

  

	 	10.	Liability arising from drywall manufactured in Asia; 

  

	 	11.	Any acquisitions of companies or books of business without the prior written consent of the Reinsurers hereon. 

  
 2. 

 B. The following Exclusion Clauses are attached hereto and form part of this Agreement: 

 

	 	1.	Nuclear Incident Exclusion Clause – Liability – Reinsurance – U.S.A. – NMA 1590; 

  

	 	2.	Nuclear Incident Exclusion Clause – Liability – Reinsurance – Canada – NMA 1979; 

  

	 	3.	Nuclear Incident Exclusion Clause – Physical Damage – Reinsurance – (BRMA 35B); 

  

	 	4.	Nuclear, Biological, and Chemical Risks in accordance with the Nuclear, Biological and Chemical Exclusion attached hereto; 

  

	 	5.	War Risks, in accordance with the War Risks Exclusion Clause attached hereto; 

  

	 	6.	Insolvency, in accordance with the Insolvency Funds Exclusion Clause attached hereto; 

  

	 	7.	Liability assumed by the Company as a member of any pool, association or syndicate, in accordance with the Pools, Associations and Syndicates Exclusion Clause attached hereto. 

ARTICLE 6 
 REINSURANCE COVERAGE,
LIMITS AND AGGREGATE LIMIT 
 A. Reinsurance Coverage – The Reinsurers shall indemnify and reinsure the Company for the Cession
Percentage of the Company’s net retained liability for all Ultimate Net Loss on the Business Covered, subject to the terms, conditions, and exclusions of this Agreement. The Reinsurers shall only be obligated to indemnify and reinsure the
Company for underlying Policies where the Reinsurers have been paid, or deemed paid via credit to the Funds Held Account, respective premiums for such underlying Policies by the Company. 

B. Terrorism Occurrence Limit – The maximum contribution to Ultimate Net Loss in respect of Ultimate Net Loss arising from Terrorism shall be
limited to two (2) Ultimate Net Loss Ratio points from any one Loss Occurrence and two (2) Ultimate Net Loss Ratio points for all Loss Occurrences combined during the Term of this Agreement. 

C. PCS Catastrophe Occurrence Limit – In no event shall the Reinsurers’ aggregate limit of liability for Ultimate Net Loss from a PCS
Catastrophe Occurrence exceed ten million dollars ($10,000,000) per PCS Catastrophe Occurrence for Business Covered hereunder and ten million dollars ($10,000,000) in the aggregate for all PCS Catastrophe Occurrences combined for Business Covered
hereunder. 
 D. Per Risk, Per Loss Occurrence Limits – In no event shall the Reinsurers’ aggregate limit of liability for Ultimate Net
Loss exceed the following limitations: 
  

	 	1)	five million dollars ($5,000,000) per Loss Occurrence in respect of Business Automobile Liability, Commercial Multiple Peril Liability and Other Liability Business Covered; 

  
 3. 

	 	2)	two million dollars ($2,000,000) per Loss Occurrence in respect of Workers’ Compensation Business Covered; and 

  

	 	3)	five million dollars ($5,000,000) per risk and ten million dollars ($10,000,000) per Loss Occurrence in respect of Commercial Multiple Peril Property. 

E. Allocated Loss Adjustment Expense Limit – The maximum contribution to Ultimate Net Loss arising from Allocated Loss Adjustment Expense shall be
limited as follows: 
  

					
	 Line of Business
	  	Percentage of Net Earned Premium	 
		
	 Auto Liability
	  	 	6.75	% 
	 Commercial Multiple Peril Liability
	  	 	11,00	% 
	 Other Liability
	  	 	11.12	% 
	 Workers’ Compensation
	  	 	11.50	% 

 F. Extra Contractual Obligations, Loss Excess of Policy Limits and Mass Tort Limits – The maximum aggregate
contribution to Ultimate Net Loss arising from the combination of Extra Contractual Obligations and Loss Excess of Policy Limits, as defined under the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS, and
Mass Tort claims, as defined below, shall be limited to five (5) Ultimate Net Loss Ratio points for the Term of this Agreement. 
 For
purposes herein, “Mass Tort” shall mean an event or product or series of related events or products which injure a number of people or their property and cause one or more claims, arbitrations, lawsuits or legal proceedings asserting
personal injury or property damage. 
 G. Aggregate Limit – In no event shall the Reinsurers’ maximum limit of liability under this
Agreement exceed one hundred ten percent (110%) Ultimate Net Loss Ratio for the Term of this Agreement. 
 ARTICLE 7 

DEFINITIONS 
 A. “Allocated Loss Adjustment
Expenses” as used in this Agreement shall mean all costs and expenses that are incurred by the Company in the investigation, appraisal, adjustment, settlement, litigation, defense or appeal of a specific claim, including court costs and
costs of supersedeas and appeal bonds and including a) pre-judgment interest, unless included as part of the award or judgment; b) post-judgment interest and c) legal expenses and costs incurred in connection with coverage questions and legal
actions connected thereto, including Declaratory Judgment Expenses. 
 Allocated Loss Adjustment Expenses shall include defense attorneys,
and other claims and legal personnel of Tower Insurance Company of New York/Tower Risk Management and other costs allocated to the defense and adjustment of a specific claim. Allocated Loss Adjustment Expense shall also include expenses of
independent third parties, including but not limited to coverage attorneys and appraisers, retained, assigned and/or employed by the Company in the settlement of claims. 

Allocated Loss Adjustment Expense shall not include Unallocated Loss Adjustment Expenses. For purposes of this definition, “Unallocated
Loss Adjustment Expenses” shall mean the salaries and overhead of the Company’s employed claims adjusting staff other than the in-house legal staff assigned to the defense of specific claims which are covered under Allocated Loss
Adjustment Expense.

  
 4. 

 For purposes of this Agreement, Allocated Loss Adjustment Expense and Unallocated Loss Adjustment
Expense shall be treated in accordance with the definitions herein, regardless of how the Company classifies Allocated Loss Adjustment Expense and Unallocated Loss Adjustment Expense in their claims systems. 

B. “Brokerage Business” as used in this Agreement shall mean all classes of business that are underwritten on an individual Policy basis by
the Company’s underwriting staff through wholesale and retail agents and most or all of the services are provided by the Company as part of the overall product offering that are Business Covered hereunder. 

C. “Cession Percentage” as used in this Agreement shall be a rate of fourteen percent (14%) for both (i) the Unearned Premium
Reserve and (ii) new and renewal Business Covered written during the Term of this Agreement. 
 It shall be deemed for purposes of this
Agreement that the Company shall retain net and unreinsured at least twenty five percent (25%) of Business Covered hereunder. 
 D.
“Company” as used in this Agreement shall mean Tower Insurance Company of New York (operating as Tower Select Insurance Company in California), Tower National Insurance Company, Preserver Insurance Company, North East
Insurance Company, CastlePoint Insurance Company, Hermitage Insurance Company, Kodiak Insurance Company, CastlePoint Florida Insurance Company, and CastlePoint National Insurance Company (formerly known as SUA Insurance Company) (each company
individually referred to as a “reinsured company”). Any affiliated insurance companies which may hereafter come under the management of the Tower Group Companies shall only be covered hereunder with mutual written consent of the Company
and the Reinsurers. 
 For purposes of this Agreement, including sending and receiving notices and payments required by this Agreement,
other than in respect of the Service of Suit and Reserves articles herein, Tower Insurance Company of New York is deemed and authorized to be the agent of all other reinsured companies referenced herein. In no event, however, shall any
reinsured company be deemed the agent of another with respect to the terms of the Insolvency article. The retention of the Company and the liability of the Reinsurers and all other benefits accruing to the Company as provided in this Agreement or
any amendments hereto, shall apply to the reinsured companies comprising the Company as a group and not separately to each of the reinsured companies. 
 E.
“Declaratory Judgment Expenses” as used in this Agreement shall mean legal expenses paid by the Company in the investigation, analysis, evaluation or litigation of a coverage action between the Company and any other party to
determine if there is coverage under a Policy or Policies issued by the Company in respect of Business Covered under this Agreement or which would be reinsured under this Agreement had the Company not been successful in the coverage action. 

F. “Effective Date” as used in this Agreement shall mean 12:00:01 a.m., Eastern Standard Time, July 1, 2013. 

G. “Ex-gratia Payments” as used in this Agreement shall mean all settlements of losses not covered under the express terms of the Policies.
Ex-gratia Payments will not include settlement of losses which (i) arise from court decisions or other judicial acts or orders nor (ii) settlements made to avoid costs that could be incurred in connection with potential or actual
litigation relating to coverage issues arising under the Policies. 
 H. “Gross Written Premium” as used in this Agreement shall mean the
subject gross premium on Policies written by the Company that are Business Covered hereunder. 

  
 5. 

 I. “Loss Occurrence” as used in this Agreement shall mean any one accident, disaster, casualty
or happening, or series of accidents, disasters, casualties or happenings arising out of or following on one event, regardless of the number of interests insured or the number of Policies responding. 

Except where specifically provided otherwise in this Agreement, each Loss Occurrence shall be deemed to take place as of the earliest date of
loss as determined by any original Policy responding to the Loss Occurrence. 
 As respects liability losses (bodily injury and property
damage), “Loss Occurrence” shall mean the sum of all damages sustained by each insured (i) arising or resulting from the same event or (ii) arising out of a continuous or repeated injurious exposure to substantially the same
general conditions. For purposes of this Agreement, the date of loss shall be deemed to be the inception or renewal date of the original Policy of insurance to which payment is charged. 

J. “Net Earned Premium” as used in this Agreement shall mean the Net Written Premium of the Company’s Business Covered less the unearned
premium reserve as calculated as at the respective date of calculation. 
 K. “Net Written Premium” as used in this Agreement shall mean
gross premium of the Company on the Business Covered less cancellations and returns and less premium paid for all treaty and facultative inuring reinsurances. 

Net Written Premium (“NWP”) for the Term of this Agreement is estimated to be five hundred thirty five million, nine hundred sixty
thousand dollars ($535,960,000), of which two hundred eighty four million, six hundred forty five thousand dollars ($284,645,000) is estimated in respect of the Unearned Premium Reserve and two hundred fifty one million, three hundred fifteen
thousand dollars ($251,315,000) is estimated in respect of new and renewal Business Covered hereunder. 
 In no event shall the ultimate
ceded Net Written Premium exceed five hundred fifty million dollars ($550,000,000) for the Term of this Agreement. 
 L. “Policy” or
“Policies” as used in this Agreement shall mean all policies, binders, contracts, certificates, or other obligations of insurance or reinsurance that are Business Covered hereunder. 

M. “PCS Catastrophe Occurrence” as used in this Agreement shall mean a loss that has been assigned a catastrophic code number by the Property
Claim Services division of American Insurance Services Group, Inc. (PCS) or by the organization responsible for assigning such designation for the geographic area in which the loss event occurred. Such loss amount shall include the sum of all
individual losses (net of original Policy deductibles) directly occasioned by any one disaster, accident or loss or series of disasters, accidents or losses arising out of one event which occurs within the area of one state of the United States and
states contiguous thereto and to one another. However, the duration and extent of any one Loss Occurrence shall be limited to all individual losses sustained by the Company occurring during any period of one hundred sixty eight
(168) consecutive hours arising out of and directly occasioned by the same event. 
 N. “Reinsurer” or “Reinsurers” as used
in this Agreement shall mean each reinsurer subscribing to its respective signing pages attached to and forming part of this Agreement. Each Reinsurer shall participate severally and not jointly in this Agreement and participation of each Reinsurer
in this Agreement shall be deemed a separate agreement between the Company and that Reinsurer. In the event of any failure or default by any Reinsurer to perform any of its obligations hereunder, no other Reinsurer shall have any obligation with
respect to such failure or default. 

  
 6. 

 O. “Terrorism” as used in this Agreement shall mean any act, or preparation in respect of
action, or threat of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of political, religious, ideological, or similar purposes to intimidate the public or a section of
the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s) or government(s) de jure or de facto, and which: 

 

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

  

	 	(ii)	involves damage to property; or 

  

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

  

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

  

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

 Loss, damage, cost or
expense arising out of or in connection with any action in controlling, preventing, suppressing, retaliating against, or responding to any act of terrorism shall be considered part of terrorism Ultimate Net Loss. 

Notwithstanding the above, this Agreement shall not cover loss, damage, cost or expense arising out of or in connection with nuclear,
biological or chemical contamination due to an act of Terrorism. 
 P. “Term” as used in this Agreement shall mean the period incepting
12:00:01 a.m., Eastern Standard Time, July 1, 2013 and expiring 11:59:59 p.m., Eastern Standard Time, December 31, 2013. 
 Q. “Ultimate
Net Loss” as used in this Agreement shall mean, subject to all limitations in this Agreement, actual loss or losses arising out of Business Covered hereunder sustained by the Company in respect of Business Covered under this Agreement,
including Allocated Loss Adjustment Expense and eighty percent (80%) of Extra Contractual Obligations and eighty percent (80%) of Excess Policy Limits, in accordance with the Article entitled EXTRA CONTRACTUAL OBLIGATIONS/LOSS EXCESS
OF POLICY LIMITS, subject to all other terms and conditions in this Agreement, after making deductions for all recoveries and salvages and inuring excess of loss treaty and facultative reinsurance, whether collectible or not. 

R. “Ultimate Net Loss Ratio” as used in this Agreement shall mean the ratio of aggregate Ultimate Net Loss incurred divided by Net Earned
Premium as of the date of calculation. 
 S. “Unearned Premium Reserve” as used in this Agreement shall mean the Net Written Premium, as
defined in this Article, on Policies that are Business Covered and in force as of the Effective Date of this Agreement, that is unearned as of the Effective Date. 

ARTICLE 8 
 NET RETAINED LINES

 A. This Agreement applies only to that portion of any Policy which the Company retains net for its own account, and in calculating the amount of
any Ultimate Net Loss hereunder and also in computing the amounts in the Article entitled REINSURANCE COVERAGE, LIMITS AND AGGREGATE LIMIT, to which this Agreement applies, only Ultimate Net Loss in respect of that portion of any
Policy which the Company retains net for its own account shall be included. 

  
 7. 

 B. Recoveries from any form of insurance or reinsurance that protects the Company against claims which are
Business Covered hereunder shall inure to the benefit of the Reinsurers and shall be deducted to arrive at the amount of the Company’s Ultimate Net Loss. 

C. The cost of Inuring reinsurance shall be limited to a maximum of three percent (3%) of Gross Written Premium in the aggregate for all Business Covered
hereunder Net Written Premium under this Agreement shall be reduced by one hundred percent (100%) of the reinsurance premium for such inuring reinsurance (regardless of the percentage actually purchased by the Company). 

D. Inter-company reinsurance among the reinsured companies shall be entirely disregarded for all purposes of this Agreement. 

E. The amount of the Reinsurers’ liability hereunder in respect of any Ultimate Net Loss shall not be increased by reason of the inability of the Company
to collect from any other reinsurer, whether specific or general, any amounts which may have become due from such reinsurer, whether such inability arises from the insolvency of such reinsurer or otherwise. 

ARTICLE 9 
 REINSURANCE PREMIUM AND
REINSURERS’ MARGIN 
 A. Reinsurance Premium – The Company shall pay to the Reinsurers, Reinsurance Premium equal to the following:

 1. the Cession Percentage of the Unearned Premium Reserve calculated by the Company and due as of the Effective Date of this Agreement,
deemed credited to the Funds Held Account at the Effective Date for Interest Credit purposes; plus 
 2. the Cession Percentage of the
Credited Portion of cumulative Net Written Premium for new and renewal business effective during the Term of this Agreement, paid via credit to or debit from the Funds Held Account. The Company shall determine and report the Cession Percentage of
the Credited Portion of cumulative Net Written Premium for new and renewal business on a quarterly basis forty five (45) days in arrears of each quarter end, in accordance with the table below. Reinsurance Premium, as determined above, less the
cumulative Reinsurance Premium previously paid, shall be deemed credited to or debited from the Funds Held Account, as applicable, sixty (60) days in arrears of each respective quarter end. 

The Credited Portion to be Applied to Cumulative NWP over four quarters for each Respective Calendar Quarter of Coverage to Determine
Reinsurance Premium 
  

																			
	1st Quarter	 	 	2nd Quarter	 	 	3rd Quarter	 	 	4th Quarter	 	 	Total Credit	 
	 	40	% 	 	 	75	% 	 	 	90	% 	 	 	100	% 	 	 	100	% 

 The Cession Percentage of Cumulative Net Written Premium (“NWP”) for each calendar quarter of
coverage will be paid, via debit or credit to the Funds Held Account, as applicable, in four installments over four quarters, i.e., for the coverage period 7/1/13 – 09/30/13, 40% of cumulative NWP for the coverage period will be paid for the
quarter ending 9/30/13; 75% of cumulative NWP for the coverage period (less amounts previously paid for this coverage period) will be paid for the quarter ending 12/31/13; 90% of cumulative NWP for the coverage period (less amounts previously paid
for this coverage period) will be paid for the quarter ending 3/31/14; and 100% of cumulative NWP for the coverage period (less amounts previously paid for this coverage period) will be paid for the quarter ending 6/30/14. 

  
 8. 

 For example: 

Within forty five (45) days of 9/30/13, the Company will provide a report in accordance with this Article, and within fifteen
(15) days thereafter will credit or debit the Funds Held Account, as applicable, Reinsurance Premium to the Reinsurer in the amount of: 

1) the Cession Percentage * (40% Credited Portion of cumulative NWP for the coverage period 07/01/13 – 09/30/13). 

Within forty five (45) days of 12/31/13, the Company will provide a report in accordance with this Article, and within fifteen
(15) days thereafter will credit or debit to the Funds Held Account, as applicable, Reinsurance Premium to the Reinsurer in the amount of: 

1) the Cession Percentage * (75% Credited Portion of cumulative NWP for the calendar quarter of coverage 7/1/13 – 09/30/13); less 

2) Reinsurance Premium previously paid for the calendar quarter of coverage 7/1/13 – 9/30/13; plus 

3) the Cession Percentage * (40% Credited Portion of cumulative NWP for the calendar quarter of coverage 10/1/13 – 12/31/13). 

Future Reinsurance Premium calculations will be made accordingly. 

B. Reinsurers’ Margin – The Company shall pay to the Reinsurers an initial Reinsurers’ Margin equal to six percent (6%) of the
ceded Reinsurance Premium (“Initial Reinsurers’ Margin”) in cash via wire transfer at the time Reinsurance Premium is credited to or debited from the Funds Held Account, as applicable. Initial Reinsurers’ Margin is deemed part of
Reinsurance Premium and not in addition to Reinsurance Premium. 
 Notwithstanding the above, Initial Reinsurers’ Margin in respect of
the Unearned Premium Reserve shall be paid to the Reinsurers on September 30, 2013. 
 The ultimate Reinsurers’ Margin under this
Agreement shall be based upon the Ultimate Net Loss Ratio and Ceding Commission paid by the Reinsurers and the actual investment income credited to the Funds Held Account and earned by the Reinsurers on withdrawals, if any, and not the Initial
Reinsurers’ Margin paid hereunder. 
 ARTICLE 10 

CEDING COMMISSION 
 A. The Reinsurers shall allow
the Company a provisional and maximum Ceding Commission equal to thirty point six percent (30.6%) of the Reinsurance Premium ceded hereon. The provisional Ceding Commission shall be credited to or debited from the Funds Held Account, as
applicable, as Reinsurance Premiums are credited to or debited from the Funds Held Account and adjusted as the Ultimate Net Loss Ratio is re-determined quarterly. 

B. The first adjustment of Actual Ceding Commission shall be calculated at December 31, 2014. Thereafter the Actual Ceding Commission shall be
recalculated annually at each December 31st and based upon the Ultimate Net Loss Ratio, including incurred but not reported amounts as recorded by the Company in its financial statements, re-determined each year, in accordance with the
following table: 
  

													
	 	  	Ceding Commission Rate	 	 	 	 	  	Ultimate Net Loss Ratio	 
				
	 Provisional/Maximum
	  	 	30.6	% 	 				  	 	62.0% or less	  
		  				 	 	.8 for 1	  	  			
	 Minimum
	  	 	25.0	% 	 				  	 	69.0% or greater	  

  
 9. 

 If the Ultimate Net Loss Ratio is greater than sixty two point zero percent (62.0%), the Ceding
Commission shall be decreased by zero point eight percent (0.8%) and any portion thereof for each one percent (1%) and any portion thereof that the Ultimate Net Loss Ratio is greater than sixty two point zero percent (62.0%), down to a minimum
Ceding Commission of twenty five point zero percent (25.0%) at an Ultimate Net Loss Ratio of sixty nine point zero percent (69.0%) or greater. 

Adjustments to Ceding Commission shall be credited to or debited from the Funds Held Account at the end of the respective calendar year for
which the calculation is made. In the event the Funds Held Account becomes depleted, the Reinsurers shall pay any adjustments to Ceding Commission out of other funds of the Reinsurers. Any adjustment to Ceding Commission shall result in a special
interest credit calculation from the time of adjustment back to December 31, 2014 at an annual effective interest rate of three percent (3%). Such special interest credit shall be paid by the debtor party to the creditor party at the time of
the calculation. 
 ARTICLE 11 

FUND HELD ACCOUNT AND INTEREST CREDIT 
 A. Funds
Held Account – For purposes of this Agreement, the Company shall establish on its books and maintain a cumulative Funds Held Account comprised of the following: 

1. The Funds Held Account at June 30, 2013 shall be equal to zero dollars ($0); 

2. The Funds Held Account at each subsequent quarter end shall be comprised of the following cumulative amounts: 

 

	 	a)	The Funds Held Account at the end of the prior quarter; plus 

  

	 	b)	Reinsurance Premium ceded for such quarter; less 

  

	 	c)	Ceding Commission and adjustments to Ceding Commission for such quarter; less 

  

	 	d)	Initial Reinsurers’ Margin for such quarter; less 

  

	 	e)	Ceded Ultimate Net Losses paid for such quarter; plus 

  

	 	f)	Interest Credit for such quarter; less 

  

	 	g)	Interest Credit Payments paid to the Reinsurers for such quarter, if applicable, in accordance with section B. below. 

The Company shall determine and report the balance and activity of the Funds Held Account quarterly within forty five (45) days of the
quarter end. 
 B. Interest Credit – The Funds Held Account shall be credited quarterly, as of the end of each calendar quarter, with an
Interest Credit rate multiplied by the average daily balance of the 

  
 10. 

 
Funds Held Account for the respective quarter. The Interest Credit rate shall be equal to zero point seven four one seven one percent (0.74171%) of the average daily balance of the Funds Held
Account for the respective quarter, to achieve an annual effective yield of three point zero percent (3.0%). 
 Interest Credit shall
continue even in the event of the Company’s insolvency. 
 Beginning December 31, 2015 and quarterly thereafter, the Reinsurers
may request that the Company transfer all or a portion of the accumulated Interest Credit credited to the Funds Held Account to the Reinsurers (“Interest Credit Payment”), subject to two such requests per calendar year. Payment shall be
made at the end of the respective calendar quarter of such request, and debited from the Funds Held Account at the end of the respective calendar quarter of such request as per subsection g. of Section A. 2. of this Article. 

In the event a Reinsurer suffers any of the circumstances under section A. of ARTICLE 14, SPECIAL TERMINATION
(except, for purposes of this Article only, in respect of circumstance A.4., the U.S. Reinsurer’s A.M. Best’s rating is less than “A” or non-U.S. Reinsurer’s S&P Rating is less than “AA”), then any
further requests for Interest Credit Payment must be approved by the Company. In no event shall this affect the economic position of the Reinsurers under this Agreement. 

ARTICLE 12 
 TRUST ACCOUNT

 A. The Company shall establish a segregated account (“Segregated Account”) and maintain assets with a market value equal to the Funds
Held Account balance. The Company shall deposit Reinsurance Premium less provisional Ceding Commission less Initial Reinsurers’ Margin into the Segregated Account and shall be permitted to pay from the Segregated Account Ceding Commission
adjustments, ceded paid portion of Ultimate Net Loss and Interest Credit Payment(s) (In accordance with section B. of the Article entitled FUNDS HELD ACCOUNT AND INTEREST CREDIT) when amounts are contractually due from the Reinsurers.

 B. If the market value of the assets in the Segregated Account at any calendar quarter end is less than the balance of the Funds Held Account at such
quarter end, then the Company shall deposit assets to achieve the required Funds Held Account balance at such quarter end. In the event of any excess funding, such excess amount shall remain in the Segregated Account. 

The Company alone shall bear all expenses related to the Segregated Account, including trustee’s fees. 

C. If the Company experiences a Triggering Event, as defined below, then the Reinsurers may request that the Company transfer all assets from the Segregated
Account into a Trust Account (“Trust Account”) established by the Reinsurers in accordance with the provisions of section E. of this Article below. The Company and the Reinsurers shall mutually agree the type of investments to be
deposited. 
 If the market value of the assets in the Trust Account at any calendar quarter end is less than the balance of the Funds Held
Account at such quarter end, then the Company is required to deposit additional assets into the Trust Account to equal the balance of the Funds Held Account at such quarter end. If the market value of the assets in the Trust Account at any calendar
quarter end is greater than the balance of the Funds Held Account at such quarter end, then such excess amount shall remain in the Trust Account. If the Company fails to deposit additional assets into the Trust Account to equal the balance of the
Funds Held Account, then paid Ultimate Net Loss due from the Reinsurers will be reduced by the amount of such under-funding. 

  
 11. 

 The Company shall be solely responsible for all expenses related to the Trust Account, including
trustee’s fees. 
 A “Triggering Event” is any one of the following: 

1. a downgrade of the A.M. Best’s rating of any reinsured company below “A-”, or the rating is withdrawn; 

2. a reduction of more than twenty five percent (25%) of the Company’s statutory surplus from the Company’s statutory surplus
level at the calendar quarter end preceding the Effective Date of the Agreement; 
 3. the Company has: a) become insolvent, b) been placed
under supervision (voluntarily or involuntarily), c) been placed into liquidation or receivership, or d) had instituted against it proceedings for the appointment of a supervisor, receiver, liquidator, rehabilitator, conservator or trustee in
bankruptcy, or other agent known by whatever name, to take possession of its assets or control of its operations. 
 D. The parties shall execute, within
sixty (60) days of request by either party, a mutually acceptable trust agreement in respect of the Segregated Account and, if applicable, upon transfer of funds, a trust agreement in respect of the Trust Account. 

E. In the event of a cash transfer of the Funds Held Account or Segregated Account to the Reinsurers due to a Triggering Event by the Company, as defined in
section C. of this Article, the Reinsurers shall provide a letter of credit or trust account, in a manner and form described below, for the benefit of the Company, equal to the cumulative balance of the sum of (i) ninety four percent
(94%) of Reinsurance Premium received less (ii) one hundred percent (100%) Ceding Commission paid less (iii) one hundred percent (100%) Ultimate Net Loss (including Allocated Loss Adjustment Expenses) paid (the
“cumulative balance”). Such letter of credit or trust fund shall be increased or decreased, as applicable, on a quarterly basis until the final expiration of liability under this Agreement. 

The Reinsurers shall provide either (i) a clean, irrevocable, and unconditional evergreen letter(s) of credit issued by a qualified
United States financial institution as defined under the Insurance Law of the Company’s domiciliary state and acceptable to the Company or (ii) in respect of an admitted Reinsurer, a trust account mutually acceptable to the Company and the
Reinsurer; or in respect of a non-admitted Reinsurer, a New York Regulation 114 Credit for Reinsurance compliant trust account. For purposes herein, an “admitted Reinsurer” shall mean any Reinsurer which under applicable law qualifies for
the Company to receive full credit with the insurance regulatory authority having jurisdiction over the Company’s reserves. In the event of a trust account, the Company and the Reinsurer agree (i) to execute a mutually acceptable trust
agreement and (ii) that the Reinsurer shall manage the assets in the trust account in consultation with the Company. 
 The Company may
drawdown on the letter of credit or the trust account to reimburse the Company for amounts due from the Reinsurer that have not been disputed by the Reinsurer and have not been paid by the Reinsurer within sixty (60) days of a non-disputed
claim being submitted by the Company to the Reinsurer, and the Reinsurer is the subject of an insolvency, liquidation, or conservation proceeding, or has ceased underwriting operations or has lost more than fifty percent (50%) of its
policyholders’ surplus or has made a general assignment of its assets for the benefit of creditors. 

  
 12. 

 Any interest earned on the balance of the trust account shall be paid to the Reinsurer. 

ARTICLE 13 
 ACCOUNTS, REMITTANCES
AND ULTIMATE NET LOSS SETTLEMENTS 
 A. Within forty five (45) days following the end of each quarter, the Company shall report to the
Reinsurers the amount of the following with regards to such quarter and on a cumulative basis: 
  

	 	1.	Gross Written Premium, Net Written Premium and ceded Net Written Premium by line of business; 

  

	 	2.	Gross Earned Premium, Net Earned Premium and ceded Net Earned Premium by line of business; 

  

	 	3.	Ceding Commission paid and unpaid; 

  

	 	4.	Ultimate Net Loss and Ceded Ultimate Net Loss paid by line of business; 

  

	 	5.	Ultimate Net Loss and Ceded Ultimate Net Loss outstanding, including incurred but not reported amounts, by line of business; 

  

	 	6.	Ultimate Net Loss and Ceded Ultimate Net Loss in respect of the Terrorism Occurrence Limit, PCS Catastrophe Occurrence Limit, Allocated Loss Adjustment Expense Limit and Extra Contractual Obligations, Loss Excess of
Policy Limits and Mass Tort Limits; 

  

	 	7.	Salvage recovered and ceded Salvage recovered by line of business; 

  

	 	8.	Premium amounts calculated in accordance with the Article entitled REINSURANCE PREMIUM AND REINSURERS’ MARGIN; 

  

	 	9.	Ceded Unearned Premium Reserve; 

  

	 	10.	Funds Held Account balance. 

 In addition to the above, if the Company experiences any of the
Triggering Events under section C. of Article 12, the Company shall immediately notify the Reinsurers in writing. 
 Reports shall continue
until the final settlement of all Ultimate Net Loss hereunder. 
 B. Ultimate Net Loss settlements by the Reinsurers to the Company shall be made within
fifteen (15) days following the Reinsurers’ receipt of the Company’s quarterly report or sixty (60) days in arrears of the respective quarter end, whichever is later. 

C. Ultimate Net Loss recoverable hereunder shall be first settled by debit to the Funds Held Account. However, in the event the Funds Held Account becomes
depleted through payment of amounts contractually due from the Reinsurers in accordance with this Agreement only and not a positive amount, the Reinsurers shall remit to the Company Ultimate Net Loss recoverable hereunder from other funds of the
Reinsurer. However, in no event shall the Reinsurer be liable for amounts exceeding the Reinsurers’ maximum limits of liability as set forth in the Article entitled REINSURANCE COVERAGE, LIMITS AND AGGREGATE LIMIT. 

In the event of the diminution of the Funds Held Account for any reason other than in accordance with this Agreement, including insolvency of
the Company, or by the Company’s failure to establish and/or maintain the Funds Held Account, the liability of the Reinsurers shall be reduced by an amount equal to such reduction in the Funds Held Account. 

  
 13. 

 D. Notwithstanding the above, the Company shall advise the Reinsurer promptly (but no later than thirty [30])
days from the date the Company determines that a loss may result in a claim hereunder or may materially affect the position of the Reinsurers) of all Ultimate Net Losses, which, in the opinion of the Company, may result in a claim hereunder and of
all subsequent developments thereto which, in the opinion of the Company, may materially affect the position of the Reinsurers. Inadvertent omission or oversight in dispatching such advises shall in no way affect the liability of the Reinsurer.
However, the Company shall notify the Reinsurers of such omission or oversight promptly upon its discovery. 
 E. All Ultimate Net Loss settlements made by
the Company on Business Covered, whether under Policy terms and conditions or by way of compromise, shall be in the sole discretion of the Company and shall be unconditionally binding on the Reinsurers, subject always to the terms conditions and
exclusions of this Agreement. Upon reasonable evidence of the amount due, the Reinsurers shall pay or allow, as applicable, their proportional share of each such settlement in accordance with this Agreement. Reasonable evidence of the amount due
shall consist of a certification by the Company, accompanied by proof of loss documentation the Company customarily presents with its claims payment requests, that the amount requested to be paid and submitted by the certification is, upon
information and belief, due and payable to the Company by the Reinsurers under the terms and conditions of this Agreement. 
 F. When so requested in
writing, the Company shall afford the Reinsurers or their representatives an opportunity to be associated with the Company, at the expense of the Reinsurers, in the defense of any claim, suit or proceeding involving this Agreement, and the Company
and the Reinsurers shall cooperate in every respect in the defense of such claim, suit or proceeding, provided that the Company shall have the right to make any decision in the event of disagreement over any matter of defense or settlement. 

ARTICLE 14 
 SPECIAL TERMINATION

 A. The Company may terminate this Agreement upon the happening of any one of the following circumstances at any time by the giving of thirty
(30) days prior written notice to the subscribing Reinsurer and may also commute this Agreement in accordance with section C. below: 

1. The Reinsurer ceases active underwriting operations or a State Insurance Department or other legal authority orders the Reinsurer to cease
writing business in all jurisdictions. Or 
 2. The Reinsurer has filed a plan to enter into a Scheme of Arrangement or similar procedure.
“Scheme of Arrangement” is defined as a legislative or regulatory process that provides a solvent Reinsurer the opportunity to settle its obligations with the Company either (i) without the Company’s unrestrained consent or
(ii) prior to the Company having the ability to determine, with exact certainty, the actual amount of the obligations still outstanding and ultimately due to the Company. Or 

3. The Reinsurer has: a) become insolvent, b) been placed under supervision (voluntarily or involuntarily), c) been placed into liquidation or
receivership, or d) had instituted against it proceedings for the appointment of a supervisor, receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or
control of its operations. Or 

  
 14. 

 4. A reduction in the Reinsurer’s surplus, or financial strength rating occurs: 

a. As respects Reinsurers domiciled in the United States of America, (i) the Reinsurer’s policyholders’ surplus
(“PHS”) has been reduced by, whichever is greater, twenty five percent (25%) of the amount of PHS at the inception of this Agreement or twenty five percent (25%) of the amount of PHS stated in its last filed quarterly or annual
statutory statement with its state of domicile; notwithstanding, this provision shall not apply should the Reinsurer’s remaining PHS be greater than one billion dollars ($1,000,000,000); or (ii) the Reinsurer’s A.M. Best’s
insurer financial strength rating becomes less than “A-”. 
 b. As respects Reinsurers
domiciled outside the United States of America, other than Lloyd’s Syndicates (i) the Reinsurer’s Capital & Surplus (“C&S”) has been reduced by, whichever is greater, twenty five percent (25%) of the
published currency amount of C&S at the inception of this Agreement or twenty five percent (25%) of the published currency amount of C&S stated in its last filed financial statement with its local regulatory authority; or (ii) as
respects Lloyd’s Syndicates, the Syndicate’s total stamp capacity has been reduced by more than twenty five percent (25%) of the amount of total stamp capacity which stood at the inception of this Agreement. (This provision does not
apply to any Lloyd’s Syndicate that voluntarily reduces its total stamp capacity.) or (iii) the Reinsurer’s A.M. Best’s insurer financial strength rating becomes less than “A-” or the Reinsurer’s
Standard & Poor’s Insurance Rating becomes less than “A”. Or 
 5. The Reinsurer has entered into a definitive
agreement to (a) become merged with, acquired or controlled by any company, corporation or individual(s) not controlling or affiliated with the party’s operations previously; or (b) directly or indirectly assign all or essentially all
of its entire liability for Obligations under this Agreement to another party, other than with affiliated companies with substantially the same or greater net worth, without the Company’s prior written consent. Or 

6. There is a severance or obstruction of free and unfettered communication and/or normal commercial or financial intercourse between the
United States of America and the country in which the Reinsurer is incorporated or has its principal office as a result of war, currency regulations or any circumstances arising out of political, financial or economic uncertainty. 

In the event that notice of termination is given by reason of an event described in A4 above (the “Termination Notice”) and prior to
the effective date of the termination (the “Termination Date”), the Chief Financial Officer of the Reinsurer represents and certifies in writing to the Company that (i) the deterioration of the Reinsurer’s financial condition is
the direct and sole result of a recent major property catastrophe(s) or the result of an Act(s) of Terrorism (either the “Event”) and (ii) that it is actively seeking and has a high probability of successfully obtaining additional
capital to substantially replace the capital loss because of the Event (the “Extension Notice”), the Termination Date shall be extended an additional thirty (30) days from the Termination Date (the “Extended Termination
Date”). If prior to the Extended Termination Date, the Chief Financial Officer of the Reinsurer represents and certifies in writing to the Company that (a) it has raised sufficient capital so as to return its PHS or C&S to within ten
percent (10%) of the Reinsurer’s PHS or C&S last filed with its domiciliary regulatory authorities prior to the Event, (b) obtained reinstatement of its AM Best rating of “A-” or higher and (c) as respects
Reinsurers domiciled in the United States of America, raised its adjusted capital to at least two hundred fifty percent (250%) of its authorized control level risk-based capital, the Termination Notice shall be null and void. Otherwise, this
Agreement shall terminate on the Extended Termination Date in the manner described in the Termination Notice. 

  
 15. 

 B. In the event the Company elects to terminate this Agreement, the Company shall, with the notice of
termination, specify that termination will be on a cut-off basis, in which event the Company shall relieve the Reinsurer for losses occurring subsequent to the specified termination date, and the Reinsurer shall return to the Company the
Reinsurer’s portion of the unearned premium reserve for all in force Policies less previously paid Ceding Commission on such unearned premium reserve. 

C. The Company may elect to commute this Agreement, in accordance with sections B. C. and D. of the Article entitled COMMUTATION, if the
Reinsurer has suffered one of the circumstances listed in section A. above and if the present value commutation payment, as calculated in accordance with subsection 1 of section B of the Article entitled COMMUTATION, is less than or
equal to the sum of (i) ninety four percent (94%) of Reinsurance Premium received less (ii) one hundred percent (100%) Ceding Commission paid on such Reinsurance Premium less (iii) one hundred percent (100%) ceded paid
Ultimate Net Loss. Otherwise, the Company may only commute under this Special Termination Article with mutual agreement of the Reinsurer. 
 D. The
Reinsurers may terminate this Agreement upon the happening of any one of the following circumstances at any time by the giving of thirty (30) days prior written notice to the Company: 

1. The Company ceases active underwriting operations or a State Insurance Department or other legal authority orders the Company to cease
writing business in all jurisdictions. Or 
 2. The Company has: a) become insolvent, b) been placed under supervision (voluntarily or
involuntarily), c) been placed into liquidation or receivership, or d) had instituted against it proceedings for the appointment of a supervisor, receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy, or other agent known by
whatever name, to take possession of its assets or control of its operations. Or 
 3. The financial strength rating of any reinsured company
hereunder becomes less than “A-” or is no longer rated by A.M. Best. Or 
 4. The Company’s statutory policyholders’
surplus (“PHS”) has been reduced by, whichever is greater, twenty-five percent (25%) of the amount of statutory PHS at the Effective Date of this Agreement or twenty-five percent (25%) of the amount of statutory PHS stated in its
last filed quarterly or annual statutory statement with its state of domicile; however, this event shall not trigger termination if the reduction in statutory PHS is due to a capital management reorganization of the Company. Or 

5. The Company fails to pay Initial Reinsurers’ Margin or Interest Credit Payment to the Reinsurers within thirty (30) days of the
Reinsurers’ written request to pay such Initial Reinsurers’ Margin or Interest Credit Payment that is past due hereunder. 
 In
the event the Reinsurers elect to terminate, the Reinsurers shall, with the notice of termination, terminate this Agreement on a run-off basis. The Reinsurers shall be liable for all losses occurring in respect of all in force Policies until the
earlier of the expiration or the anniversary date of the Company’s Policies, but not to exceed twelve (12) months plus odd time. In the event that any Policy is required by statute or regulation or order to be continued in force, the
Reinsurers will continue to remain liable with respect to each such Policy until the Company may legally cancel, non-renew or otherwise eliminate liability under such Policy but not to exceed (12) months plus odd time. 

  
 16. 

 ARTICLE 15 

COMMUTATION 
 A. This Agreement shall be commuted
at one hundred twenty (120) months from the expiration or termination of this Agreement, or earlier as mutually agreed by the Company and the Reinsurers (the “Commutation Date”). 

B. Upon the Commutation Date, 
 1. the Reinsurers
shall pay to the Company the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled
CEDING COMMISSION as of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 
 2. the
Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a
Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount
remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Company. 

C. If the Reinsurers and the Company are not able to agree on such present value determination, such calculation shall be performed by an independent
actuarial firm as mutually agreed by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firm, each party shall nominate one firm and the decision shall be made by drawing lots. The cost of such actuarial
firm will be split evenly between the Company and the Reinsurers. 
 D. Upon Commutation, the Company and the Reinsurers shall receive a full and final
release of all current and future liability under this Agreement. 
 ARTICLE 16 

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

B. Amounts paid or received by the Company in any other currency shall be converted to United States Dollars at the rate of exchange at the date such
transaction is entered on the books of the Company. 
 ARTICLE 17 

FEDERAL EXCISE TAX AND OTHER TAXES 
 A. To the
extent that any portion of the Reinsurance Premium for this Agreement is subject to the Federal Excise Tax (as imposed under Section 4371 of the Internal Revenue Code) and a subscribing Reinsurer is not exempt therefrom, such Reinsurer shall
allow for the purpose of paying the Federal Excise Tax, a deduction by the Company of the applicable percentage of the Reinsurance Premium payable hereon. In the event of any return of Reinsurance Premium

  
 17. 

 
becoming due hereunder, the Reinsurer shall deduct the same applicable percentage from the return Reinsurance Premium payable hereon and the Company or its agent should take steps to recover the
tax from the United States Government. In the event of any uncertainty, upon the written request of the Company, the Reinsurer will immediately file a certificate signed by a senior corporate officer of the Reinsurer certifying to its entitlement to
the exemption from the Federal Excise Tax with respect to one or more transactions. 
 B. In consideration of the terms under which this Agreement is
issued, the Company undertakes not to claim any deduction of the Reinsurance Premium hereon when making Canadian tax returns 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 18 

RESERVES 
 (This Article shall apply to any
Reinsurer who does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves). 
 A. If, at
any time during the period of this Agreement and thereafter the reinsurance provided by a Reinsurer participating in this Agreement does not qualify for full statutory accounting credit for reinsurance by regulatory authorities having jurisdiction
over the Company (whether by reason of lack of license, accreditation or otherwise) such that a financial penalty to the Company would result on any statutory statement or report the Company is required to make or file with insurance regulatory
authorities (or a court of law in the event of insolvency), the Reinsurer shall secure the Reinsurer’s share of Obligations for which such full statutory credit is not granted by those authorities in a manner, form, and amount described in B.2.
below acceptable to all applicable insurance regulatory authorities in accordance with this Article. 
 B. The Reinsurer shall secure such obligations,
within thirty (30) days after the receipt of the Company’s written request regarding the Reinsurer’s share of obligations under this Agreement (but not later than December 31) of each year by either: 

1. Clean, irrevocable, and unconditional evergreen letter(s) of credit issued and confirmed, if confirmation is required by the applicable
insurance regulatory authorities, by a qualified United States financial institution as defined under the Insurance Law of the Company’s domiciliary state and acceptable to the Company and to insurance regulatory authorities; 

2. A trust account meeting at least the standards of New York’s Insurance Regulation 114 and the Insurance Law of the Company’s
domiciliary state; or 
 3. Cash advances or funds withheld or a combination of both, which will be under the exclusive control of the
Company (“Funds Deposit”). 
 C. The “Obligations” referred to herein means, subject to the preceding paragraphs, the then current (as
of the end of each calendar quarter) sum of any: 
 1. amount of the ceded unearned premium reserve for which the Reinsurer is responsible to
the Company; 
 2. amount of Ultimate Net Loss and other amounts paid by the Company for which the Reinsurer is responsible to the Company
but has not yet paid; 
 3. amount of ceded reserves (including incurred but not reported) for Ultimate Net Loss for which the Reinsurer is
responsible to the Company; 
 4. amount of return and refund premiums paid by the Company for which the Reinsurer is responsible to the
Company but has not yet paid. 

  
 18. 

 D. The Company, or its successors in interest, may draw, at any time and from time to time, upon the: 

1. Established letter of credit (or subsequent cash deposit); 

2. Established trust account (or subsequent cash deposit); or 

3. Funds Deposit; 
 without
diminution or restriction because of the insolvency of either the Company or the Reinsurer for one or more of the following purposes set forth below. 
 E.
Draws shall be made only for the following purposes: 
 1. To make payment to and reimburse the Company for the Reinsurer’s share of
Ultimate Net Loss and other amounts paid by the Company under its Policies and for which the Reinsurer is responsible under this Agreement that is due to the Company but unpaid by the Reinsurer including but not limited to the Reinsurer’s share
of premium refunds and returns; and 
 2. To obtain a cash advance of the entire amount of the remaining balance under any letter of credit
in the event that the Company: 
 a) has received notice of non-renewal or expiration of the letter of credit or trust account; 

b) has not received assurances satisfactory to the Company of any required increase in the amount of the letter of credit or trust account, or
its replacement or other continuation of the letter of credit or trust account at least thirty (30) days before its stated expiration date; 

c) has been made aware that others may attempt to attach or otherwise place in jeopardy the security represented by the letter of credit or
trust account; or 
 d) has concluded that the trustee or issuing (or confirming) bank’s financial condition is such that the value of
the security represented by the letter of credit or trust account may be in jeopardy; 
 e) and under any of those circumstances where the
Reinsurer’s entire Obligations, or part thereof, under this Agreement remain un-liquidated and un-discharged at least thirty (30) days prior to the stated expiration date or at the time the Company learns of the possible jeopardy to the
security represented by the letter of credit or trust account. 
 F. If the Company draws on the letter of credit or trust account to obtain a cash advance,
the Company will hold the amount of the cash advance so obtained in the name of the Company in any qualified United States financial institution as defined under the Insurance Law of the Company’s domiciliary state in trust solely to secure the
Obligations referred to above and for the use and purposes enumerated above and to return any balance thereof to the Reinsurer: 
 1. Upon
the complete and final liquidation and discharge of all of the Reinsurer’s Obligations to the Company under this Agreement; or 
 2. In
the event the Reinsurer subsequently provides alternate or replacement security consistent with the terms hereof and acceptable to the Company. 

  
 19. 

 G. The Company will prepare and forward at annual intervals or more frequently as determined by the Company, but
not more frequently than quarterly to the Reinsurer a statement for the purposes of this Article, showing the Reinsurer’s share of Obligations as set forth above. If the Reinsurer’s share thereof exceeds the then existing balance of the
security provided, the Reinsurer will, within fifteen (15) days of receipt of the Company’s statement, but never later than December 31 of any year, increase the amount of the letter of credit, (or subsequent cash deposit), trust
account or Funds Deposit to the required amount of the Reinsurer’s share of Obligations set forth in the Company’s statement, but never later than December 31 of any year. If the Reinsurer’s share thereof is less than the then
existing balance of the security provided, the Company will release the excess thereof to the Reinsurer upon the Reinsurer’s written request. The Reinsurer will not attempt to prevent the Company from holding the cash advance or Funds Deposit
so long as the Company is acting in accordance with this Article. The Company shall pay interest earned on the deposited amounts to the Reinsurer as the parties shall have agreed. 

H. Any assets deposited to a trust account will be valued according to their current fair market value and will consist only of cash (U.S. legal tender),
certificates of deposit issued by a qualified United States financial institution as defined under the Insurance Law of the Company’s domiciliary state and payable in cash, and investments of the types no less conservative than those specified
in Section 1404 (a)(1)(2)(3)(8) and (10) of the New York Insurance Law and which are admitted assets under the Insurance Law of the Company’s domiciliary state. Investments issued by the parent, subsidiary, or affiliate of either the
Company or the Reinsurer will not be eligible investments. All assets so deposited will be accompanied by all necessary assignments, endorsements in blank, or transfer of legal title to the trustee in order that the Company may negotiate any such
assets without the requirement of consent or signature from the Reinsurer or any other entity. 
 I. All settlements of account between the Company and the
Reinsurer will be made in cash or its equivalent. All income earned and received by the amount held in an established trust account will be added to the principal. 

J. The Company’s “successors in interest” will include those by operation of law, including without limitation, any liquidator, rehabilitator,
receiver, or conservator. 
 K. The Reinsurer will take any other reasonable steps that may be required for the Company to take full credit on its statutory
financial statements for the reinsurance provided by this Agreement. 
 L. The Company shall reimburse the Reinsurer for all actual annual costs arising out
of the requirement to provide such collateral as outlined above. The annual security costs will not be deducted from the Funds Held Account. 

ARTICLE 19 
 EXTRA CONTRACTUAL
OBLIGATIONS/LOSS EXCESS OF POLICY LIMITS 
 A. “Extra-Contractual Obligations” means those liabilities not covered under any other
provision of this Agreement, other than Loss Excess of Policy Limits, including but not limited to compensatory, consequential, punitive, or exemplary damages together with any legal costs and expenses incurred in connection therewith, paid as
damages or in settlement by the Company arising from an allegation or claim of its insured, its insured’s assignee, or other third party, which alleges negligence, gross negligence, bad faith or other tortious conduct on the part of the Company
in the handling, adjustment, rejection, defense or settlement of a claim under a Policy that is Business Covered hereunder. 

  
 20. 

 “Loss Excess of Policy Limits” means any amount of loss, together with any legal costs
and expenses incurred in connection therewith, paid as damages or in settlement by the Company in excess of its Policy Limits, but otherwise within the coverage terms of the Policy, arising from an allegation or claim of its insured, its
insured’s assignee, or other third party, which alleges negligence, gross negligence, bad faith or other tortious conduct on the part of the Company in the handling of a claim under a Policy or bond that is Business Covered hereunder, in
rejecting a settlement within the Policy Limits, in discharging a duty to defend or prepare the defense in the trial of an action against its insured, or in discharging its duty to prepare or prosecute an appeal consequent upon such an action. For
the avoidance of doubt, the decision by the Company to settle a claim for an amount within the coverage of the Policy but not within the Policy Limit when the Company has reasonable basis to believe that it may have liability to its insured or
assignee or other third party on the claim will be deemed a Loss Excess of Policy Limits. A reasonable basis shall mean the opinion of counsel assigned to defend the insured or otherwise retained by the Company that a verdict excess of the Policy
Limits would more likely than not result if the case should go to trial. If time allows, the Company will endeavor to provide Reinsurers an explanation relating to the Company’s motivation for settlement and obtain the Reinsurers’ prior
counsel and concurrence in the Company’s action. 
 B. An Extra-Contractual Obligation or a Loss Excess of Policy Limits shall be deemed to have
occurred on the same date as the loss covered under the Company’s original Policy and shall be considered part of the original loss (subject to other terms of this Agreement.) 

C. Neither an Extra-Contractual Obligation nor a Loss Excess of Policy Limits shall include a loss incurred by the Company as the result of any fraudulent or
criminal act directed against the Company by any officer or director of the Company acting individually or collectively or in collusion with any other organization or party involved in the presentation, defense, or settlement of any claim under this
Agreement. 
 D. The Company shall be indemnified in accordance with this Article to the extent permitted by applicable law. 

ARTICLE 20 
 OFFSET 

The Company and the Reinsurers shall have the right to offset any balance or amounts due from one party to the other under the terms of this
Agreement. The party asserting the right of offset may exercise such right any time whether the balances due are on account of Reinsurance Premiums, Ceding Commission, return Ceding Commission, Ultimate Net Loss, or any other balances due or owed
between the Company and the Reinsurers and immediately inform the Intermediary. In the event of insolvency of either party to this Agreement, then offsets shall be as permitted by applicable law and must not be contrary to Sections 1308 and 7427 of
the New York Insurance Law. 
 ARTICLE 21 

ERRORS AND OMISSIONS 
 Inadvertent
delays, errors or omissions made by either party in connection with this Agreement (including the reporting of claims) shall not relieve the other party from any liability which would have attached had such error or omission not occurred, provided
always that such error or omission shall be rectified as soon as possible, that the liability of the Reinsurers shall 

  
 21. 

 
not extend beyond the coverage provided by this Agreement nor extend coverage to Policies that are not Business Covered hereunder. This Article shall not apply to a sunset provision, if any, in
this Agreement, nor to a commutation made in connection with this Agreement. 
 ARTICLE 22 

ACCESS TO RECORDS 
 A. The Company shall place at
the disposal of the Reinsurers at all reasonable times, and the Reinsurers shall have the right to inspect (and make reasonable copies at the Reinsurers’ expense), with prior written notice to the Company of not less than five (5) business
days, through their designated representatives, during the Term of this Agreement and thereafter, all non-privileged books, records and papers of the Company directly related to any reinsurance hereunder, or the subject matter hereof, provided that
if a Reinsurer has ceased active market operations, this right of access shall be subject to that Reinsurer being current in all payments owed the Company that are not currently the subject of a dispute. For the purposes of this Article,
“non-privileged” refers to books, records and papers that are not subject to the Attorney-client privilege and Attorney-work product doctrine. The term “dispute” shall be as defined consistent with the NAIC Annual Statement
Instructions. 
 B. “Attorney-client privilege” and “Attorney-work product” shall have the meanings ascribed to each by statute and/or
the court of final adjudication in the jurisdiction whose laws govern the substantive law of a claim arising under a Policy reinsured under this Agreement. 

C. Notwithstanding anything to the contrary in this Agreement, for any claim or loss under a Policy reinsured under this Agreement, should the Reinsurer
assert, pursuant to the Common Interest Doctrine (“Doctrine”), that it has the right to examine any document that the Company alleges is subject to the Attorney-client privilege or Attorney-work product privilege, upon the Reinsurer
providing to the Company substantiation of any law which reasonably supports the basis for the Reinsurer’s conclusion that the Doctrine applies and the Doctrine will be upheld as applying between the Company and the Reinsurer as against third
parties pursuant to the substantive law(s) which govern the claim or loss, the Company shall give the Reinsurer access to such document. 
 D.
Notwithstanding the foregoing, the Company shall permit and not object to the Reinsurer’s access to privileged documents in connection with the underlying claim reinsured hereunder following final settlement or final adjudication of the case or
cases involving such claim; provided that the Company may defer release of such privileged documents if there are subrogation, contribution, or other third party actions with respect to that claim or case, which might jeopardize the Company’s
defense by release of such privileged documents. In the event the Company shall seek to defer such release of such privileged documents, it will, in consultation with the Reinsurer, take other steps as reasonably necessary to provide the Reinsurer
with the information it reasonably requires to evaluate exposure, establish reserves or indemnify the Company without causing a loss of such privileges. The Reinsurer, however, shall not have access to privileged documents relating to any dispute
between the Company and the Reinsurer. Furthermore, in the event the Reinsurer demonstrates a need for information contained in the privileged documents prior to the resolution of the underlying claim, the Company agrees it will endeavor to
undertake steps as reasonably necessary to provide the Reinsurer with the information it reasonably requires to indemnify the Company without causing a loss of such privilege. 

  
 22. 

 ARTICLE 23 

INSOLVENCY 
 (This Article shall be deemed to read
as required to meet the statutory insolvency clause requirements of the Company.) 
 A. In the event of insolvency or the appointment of a conservator,
liquidator, or statutory successor of the Company, the portion of any risk or obligation assumed by the Reinsurers shall be payable to the conservator, liquidator, or statutory successor 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 that insolvency, or because the conservator, liquidator, or
statutory successor has failed to pay all or a portion of any claims. 
 B. Payments by the Reinsurers as above set forth shall be made directly to the
Company or to its conservator, liquidator, or statutory successor, except where this Agreement of reinsurance specifically provides another payee of such reinsurance or except as provided by applicable law and regulation (such as subsection
(a) of section 4118 of the New York Insurance laws) in the event of the insolvency of the Company. 
 C. In the event of the insolvency of the Company,
the liquidator, receiver, conservator or statutory successor of the Company shall give written notice to the Reinsurers 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 during the pendency of such claim any Reinsurers may investigate such claim and interpose, at their own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it
may deem available to the Company or its liquidator, receiver, conservator or statutory successor. The expense thus incurred by the Reinsurers 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 Reinsurers. 

D. Where two (2) 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 Agreement as though such expense had been incurred by the Company. 
 ARTICLE 24

 CONFIDENTIALITY AND PRIVACY AND PROTECTION OF DATA 

A. Confidentiality – The information, data, statements, representations and other materials provided by the Company or the Reinsurers to the other
arising from consideration and participation in this Agreement whether contained in the reinsurance submission, this Agreement, or in materials or discussions arising from or related to this Agreement, may contain confidential or proprietary
information as expressly indicated by the disclosing party (“Disclosing Party”) in writing from time to time to the other party of the respective parties (“Confidential Information”). This Confidential Information is intended for
the sole use of the parties to this Agreement (and their affiliates and any third party services providers providing services related to this Agreement or involved in management or operation of assumed reinsurance business, retrocessionaires,
prospective retrocessionaires, intermediaries involved in such placements, respective auditors and legal counsel) as may be necessary in analyzing and/or accepting a participation in and/or executing their respective responsibilities under or
related to this Agreement. Disclosing or using Confidential Information relating to this Agreement, without the prior written consent of the Disclosing Party, for any purpose beyond (i) the scope of this

  
 23. 

 
Agreement, (ii) the reasonable extent necessary to perform rights and responsibilities expressly provided for under this Agreement, (iii) the reasonable extent necessary to administer,
report to and effect recoveries from retrocessional reinsurers, (iv) internal reinsurance operations, (v) the reporting to regulatory or other governmental authorities as may be legally required or (vi) persons with a need to know the
information, (all of the preceding persons or entities who are legally obligated by either written agreement or otherwise to maintain the confidentiality of the Confidential Information) is expressly forbidden. Copying, duplicating, disclosing, or
using Confidential Information for any purpose beyond this expressed purpose is forbidden without the prior written consent of the Disclosing Party. 
 B.
Should a party (“Receiving Party”) receive a third party demand pursuant to subpoena, summons, or court or governmental order, to disclose Confidential Information that has been provided by another party to this Agreement, the Receiving
Party shall, unless prohibited by law, provide the Disclosing Party with written notice of any subpoena, summons, or court or governmental order, at least ten (10) days prior to such release or disclosure, provided response to the subpoena,
summons or court or governmental order is not required before the end of the ten (10) day notice. Unless the Disclosing Party has given its prior permission to release or disclose the Confidential Information, the Receiving Party shall not
comply with the subpoena prior to the actual date required by the subpoena. If a protective order or appropriate remedy is not obtained, the Receiving Party may disclose only that portion of the Confidential Information that it is legally obligated
to disclose. However, notwithstanding anything to the contrary in this Agreement, in no event, to the extent permitted by law, shall this Article require the Receiving Party not to comply with the subpoena, summons, or court or governmental order.

 C. Privacy and Protection of Data – Communication of all required underwriting, accounting, claims and related data (including but not
limited to notices, statements, Reinsurance Premium, Ceding Commissions, Taxes, Ultimate Net Losses, salvages and Ultimate Net Loss settlements) shall be transmitted to the Company or the Reinsurers through the Intermediary. 

D. The Company and the Reinsurers represent that they are aware of and in compliance with their responsibilities and obligations under applicable laws and
regulations pertaining to Non-Public Personal Information and Protected Health Information (hereinafter “NPPI” and PHI”, respectively). Data conveyed through the Intermediary may include NPPI and/or PHI that is protected under
applicable laws and regulations and shall be used only in the performance of rights, obligations and duties in connection with this Agreement For the purpose of this Agreement, “Non-Public Personal Information” and “Protected Health
Information” shall mean financial or health information that identifies an individual, including claimants under Policies reinsured under this Agreement, and which information is not otherwise available to the public. 

E. The Intermediary is authorized to receive and convey NPPI and PHI data that it has received from the parties to this Agreement or others for the sole
purpose of carrying out the respective obligations of the parties under this Agreement. To the extent that this Agreement is placed in conjunction with one or more corresponding Intermediaries other than Towers Perrin, the parties hereby authorize
the transmission of the relevant data through the corresponding Intermediaries whether located in the United States or any other country. The parties agree to use any NPPI and PHI data received from another party or the Intermediary only as may be
necessary to satisfy their respective obligations under this Agreement. Furthermore, the parties shall maintain appropriate safeguards to protect any data received from accidental loss or unauthorized access, use or disclosure. 

The Intermediary shall have no obligation to take steps to verify the accuracy of the data a party has conveyed to the other relating to this
Agreement or to ensure that the data being provided by a party to this Agreement is current. The Intermediary will maintain all relevant data it has received and forwarded in conjunction with this Agreement for the period required by law, which in
no event shall be less than ten (10) years. 

  
 24. 

 ARTICLE 25 

ARBITRATION 
 A. Any and all disputes between the
Company and the Reinsurers arising out of, relating to, or concerning this Agreement, whether sounding in contract or tort and whether arising during or after termination of this Agreement, shall be submitted to the decision of a board of
arbitration composed of two (2) arbitrators and an umpire (“Board”) meeting at a site in the city of New York, New York. The arbitration shall be conducted under the Federal Arbitration Act and shall proceed as set forth below. 

B. A notice requesting arbitration, or any other notice made in connection therewith, shall be in writing and be sent certified or registered mail, return
receipt requested to the affected parties. The notice requesting arbitration shall state in particulars all issues to be resolved in the view of the claimant, shall appoint the arbitrator selected by the claimant and shall set a tentative date for
the hearing, which date shall be no sooner than ninety (90) days and no later than one hundred fifty (150) days from the date that the notice requesting arbitration is mailed. Within thirty (30) days of receipt of claimant’s
notice, the respondent shall notify claimant of any additional issues to be resolved in the arbitration and of the name of its appointed arbitrator. 
 C.
The members of the Board shall be impartial, disinterested and not currently representing any party participating in the arbitration, and shall be current or former senior officers of insurance or reinsurance concerns, experienced in the line(s) of
business that are the subject of this Agreement. The Company and the Reinsurer as aforesaid shall each appoint an arbitrator and the two (2) arbitrators shall choose an umpire before instituting the hearing. As time is of the essence, if the
respondent fails to appoint its arbitrator within thirty (30) days after having received claimant’s written request for arbitration, the claimant is authorized to and shall appoint the second arbitrator. If the two (2) arbitrators
fail to agree upon the appointment of an umpire within thirty (30) days after notification of the appointment of the second arbitrator, within ten (10) days thereof, the two (2) arbitrators shall request ARIAS U.S. (“ARIAS”)
to apply its procedures to appoint an umpire for the arbitration with the qualifications set forth above in this Article. If the use of ARIAS procedures fails to name an umpire, either party may apply to a court of competent jurisdiction to appoint
an umpire with the above required qualifications. The umpire shall promptly notify in writing all parties to the arbitration of his selection and of the scheduled date for the hearing. Upon resignation or death of any member of the Board, a
replacement shall be appointed in the same fashion as the resigning or deceased member was appointed. 
 D. The claimant and respondent shall each submit
initial briefs to the Board outlining the facts, the issues in dispute and the basis, authority, and reasons for their respective positions within thirty (30) days of the date of notice of appointment of the umpire. The claimant and the
respondent may submit a reply brief to the Board within ten (10) days after filing of the initial brief(s). Initial and reply briefs may be amended by the submitting party at any time, but not later than ten (10) days prior to the date of
commencement of the arbitration hearing. Reasonable responses shall be allowed at the arbitration hearing to new material contained in any amendments filed to the briefs but not previously responded to. 

E. The Board shall consider this Agreement as an honorable engagement and make a decision and award with regard to the terms expressed in this Agreement, the
original intentions of the parties to the extent reasonably ascertainable, and the custom and usage of the insurance and reinsurance business that is the subject of this Agreement. Notwithstanding any other provision of this Agreement, the Board
shall have the right and obligation to consider Underwriting and submission-related documents in any dispute between the parties. 

  
 25. 

 F. The Board shall be relieved of all judicial formalities and the decision and award shall be based upon a
hearing in which evidence shall be allowed though the formal rules of evidence shall not strictly apply. Cross examination and rebuttal shall be allowed. The Board may request a post-hearing brief to be submitted within twenty (20) days of the
close of the hearing. 
 G. The Board shall render its decision and award in writing within thirty (30) days following the close of the hearing or the
submission of post-hearing briefs, whichever is later, unless the parties consent to an extension. Every decision by the Board shall be by a majority of the members of the Board and each decision and award by the majority of the members of the Board
shall be final and binding upon all parties to the proceeding. Such decision shall be a condition precedent to any right of legal action arising out of the arbitrated dispute which either party may have against the other. However, the Board is not
authorized to award punitive, exemplary or enhanced compensatory damages. 
 H. The Board may award (i) interest at a rate not in excess of that set
forth in the Article entitled LATE PAYMENTS, calculated from the date the Board determines that any amounts due the prevailing party should have been paid to the prevailing party and (ii) applicable Attorneys’ fees and costs.

 I. Either party may apply to a court of competent jurisdiction for an order confirming any decision and the award; a judgment of that Court shall
thereupon be entered on any decision or award. Each party shall bear the expense of its own attorney. 
 J. Except in the event of a consolidated
arbitration, each party shall bear the expense of the one arbitrator appointed by or for it and shall jointly and equally bear with the other party the expense of any stenographer requested, and of the umpire. The remaining costs of the arbitration
proceedings shall be finally allocated by the Board. 
 K. Subject to customary and recognized legal rules of privilege, each party participating in the
arbitration shall have the obligation to produce those documents and as witnesses at the arbitration those of its employees, and those of its affiliates as any other participating party reasonably requests, providing always that the same witnesses
and documents be obtainable and relevant to the issues before the arbitration and not be unduly burdensome or excessive in the opinion of the Board. 
 L.
The parties may mutually agree to pre-hearing discovery prior to the arbitration hearing and in the absence of agreement, upon the request of any party, pre-hearing discovery may be conducted as the Board shall determine in its sole discretion to be
in the interest of fairness, full disclosure, and in furtherance of a prompt hearing, decision and award by the Board. 
 M. The Board shall be the final
judge of the composition of the Board, the procedures of the Board, the conduct of the arbitration, of the rules of evidence, the rules of privilege, discovery and production and of excessiveness and relevancy of any witnesses and documents upon the
petition of any participating party. To the extent permitted by law, the Board shall have the authority to issue subpoenas and other orders to enforce their decisions. The Board shall also have the authority to issue interim decisions or awards in
the interest of fairness, full disclosure, and a prompt and orderly hearing and decision and award by the Board. 
 N. Upon request made to the Board not
later than ten (10) days after the umpire’s appointment, the Board may order a consolidated hearing as respects common issues between the Company and all affected Reinsurers participating in this Agreement if the Board is satisfied in its
discretion that the issues in dispute affect more than one Reinsurer and a consolidated hearing would be in the interest of fairness, and a prompt and cost effective resolution of the issues in dispute. 

  
 26. 

 O. If the parties mutually agree to or the Board orders a consolidated hearing, all other affected participating
Reinsurers shall join and participate in the arbitration under time frames established by the Board and will be bound by the Board’s decision and award unless excused by the Board in its discretion. A consolidated hearing shall not result in
any change or modification of any Reinsurer’s liability for its participation, that is several, but not joint shall remain the same. 
 P. Any
Reinsurer may decline to actively participate in a consolidated arbitration if in advance of the hearing, that Reinsurer shall file with the Board a written agreement in form satisfactory to the Board to be bound by the decision and award of the
Board in the same fashion and to the same degree as if it actively participated in the arbitration. 
 Q. In the event of an order of consolidation by the
Board, the arbitrator appointed by the original Reinsurer shall be subject to being, and may be, replaced within thirty (30) days of the decision to have a consolidated arbitration by an arbitrator named collectively by the Reinsurers or in the
absence of agreement, by the Lead Reinsurer, or if there is no Lead Reinsurer involved in the dispute, the Reinsurer with the largest participation in this Contract affected by the dispute. In the event two (2) or more Reinsurers affected by
the dispute each have the same largest participation, they shall agree among themselves as to the replacement arbitrator, if any, to be appointed. The umpire shall be the final determiner in the event of any dispute over replacement of that
arbitrator. All other aspects of the arbitration shall be conducted as provided for in this Article provided that (1) each party actively participating in the consolidated arbitration will have the right to its own attorney, position, and
related claims and defenses; (2) each party will not, in presenting its position, be prevented from presenting its position by the position set forth by any other party; and (3) the cost and expense of the arbitration, exclusive of
Attorneys’ fees (which will be borne exclusively by the respective retaining party unless otherwise determined by the Board) but including the expense of any stenographer by each party actively participating in the consolidated arbitration or
as the Board shall determine to be fair and appropriate under the circumstances. 
 R. Nothing in this Article shall preclude any of the parties engaged in
an arbitration from settling the dispute and withdrawing from an arbitration established to resolve that dispute. 
 ARTICLE 26 

SERVICE OF SUIT 
 A. This Article only applies to a
Reinsurer domiciled outside of the United States and/or unauthorized in any state, territory or district of the United States having jurisdiction over the Company. Furthermore, this Article will not be read to conflict with or override any
obligations of the parties to arbitrate their disputes under this Agreement. This Article is intended as an aid to compelling arbitration if called for by this Agreement or enforcing any such arbitration or arbitral award, not as an alternative to
any arbitration provision in this Agreement that is applicable for resolving disputes arising out of this Agreement. 
 B. In the event of any dispute, the
Reinsurer, at the request of the Company, shall submit to the jurisdiction of a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of any obligation to
arbitrate disputes arising from this agreement or 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. 
 C. The Reinsurer, once the appropriate court is
selected, whether such court is the one originally chosen by the Company and accepted by the Reinsurer or is determined by removal, transfer or otherwise, as provided above, will comply with all requirements necessary to give said court jurisdiction
and, in any suit instituted against any of them upon this Agreement, will abide by the final decision of such court or any Appellate Court in the event of an appeal. 

  
 27. 

 D. Service of process in any such suit against the Reinsurer may be made upon Mendes and Mount, 750 Seventh
Avenue, New York, New York 10019-6829 (the “Firm”), or in substitution thereto, the firm identified by the Reinsurer on the Reinsurer’s signature page attaching to this Agreement – and that in any suit instituted, the Reinsurers
shall abide by the final decision of such court or of any Appellate Court in the event of an appeal. 
 E. The Firm is 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 shall enter a general appearance upon the Reinsurer’s behalf in the event such a suit
shall be instituted. 
 F. Further, as required by and pursuant to any statute of any state, territory or district of the United States which makes
provision therefore, the Reinsurer hereby designates the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney
upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Company or any beneficiary hereunder arising out of this Agreement, and hereby designates the above-named as the person to whom the said
officer is authorized to mail such process or a true copy thereof. 
 ARTICLE 27 

LATE PAYMENTS 
 A. Payments from the Reinsurers to
the Company for coverage hereunder shall have as a due date the date on which the proof of loss or demand for payment is received by the Reinsurers. Payment not received within sixty (60) days of the due date shall be deemed overdue. Payment
due from the Reinsurers to the Company will not be considered overdue if the Reinsurers request, in writing, that such payment be made by drawing on a letter of credit or trust fund established for this Agreement, if applicable, provided that there
is an adequate balance in place, and further provided that such advice to draw is received by the Company within the sixty (60) day deadline set forth above. 

The Company will provide the Reinsurers with a reasonable proof of loss or any other reasonable evidence of indemnification. If subsequent to
receipt of this evidence, the information contained therein is unreasonably insufficient or not in substantial accordance with the contractual conditions of this Agreement, then the payment due date as specified above will be deemed to be the date
upon which the Reinsurers received the additional information necessary to approve payment of the claim and the claim is presented in a reasonably acceptable manner. This paragraph is only for the purpose of establishing when a claim payment is
overdue, and will not alter the provisions of the Article entitled ACCOUNTS, REMITTANCES AND ULTIMATE NET LOSS SETTLEMENTS or other pertinent contractual stipulations of this Agreement. 

B. Payments from the Company to the Reinsurers will have a due date as the date specified in this Agreement and will be overdue sixty (60) days
thereafter. 
 C. Interest shall accrue annually on overdue amounts at the annual United States Treasury Bill rate effective on the first business day of
the year plus one hundred (100) basis points, not to exceed the highest rate allowed by law, from the date of the demand for payment until the date payment is received. 

  
 28. 

 The validity of any claim or payment may be contested under the provisions of this Agreement. If
the debtor party prevails in an arbitration or any other proceeding, there shall be no interest penalty due herein. Otherwise, any interest will be calculated and due as outlined in the paragraph above. 

D. Waiver 
 Any interest due under this Article
may be waived by the party to which it is owed. Any waiver of such amounts, however, shall not affect the waiving party’s rights under this Article with respect to any other failure by the other party to make payments when due under this
Article. 
 ARTICLE 28 

REPRESENTATIONS AND WARRANTIES 
 A. The Company
represents that it is a duly organized and validly existing insurer under the laws of the jurisdiction of its organization. 
 B. The Company represents
that it has not received and is not relying upon any legal, tax, regulatory, accounting or other advice (whether written, oral, implied or assumed) of the Reinsurers regarding this Agreement. 

C. The Company represents that it has the capacity to evaluate (internally or through independent advice) this Agreement and has consulted its own tax,
accounting and legal advisors in connection with this Agreement. 
 D. The execution, delivery and performance of this Agreement does not violate or
conflict with any law or order of government or agency applicable to it. 
 E. The Company warrants that the split of Business Covered hereunder shall not
be less than nor more than two (2) points different than the percentages shown below of the total Net Written Premium under this Agreement. 
  

					
	 Line of Business
	  	Percentage of Net Written Premium	 
		
	 Business Automobile Liability
	  	 	12.30	% 
	 Commercial Multiple Peril Liability
	  	 	22.33	% 
	 Commercial Multiple Peril Property
	  	 	34.61	% 
	 Other Liability
	  	 	10.16	% 
	 Workers’ Compensation
	  	 	20.60	% 
		  	  
	  
	 
		  	 	100.00	% 

 F. The Company undertakes not to introduce, without the prior approval of the Reinsurers, any changes in its established
administrative practices in respect of Business Covered hereunder to which this Agreement applies. 
 G. The Company undertakes not to introduce any
material change in its established acceptance or underwriting policy which are less restrictive than those currently in place or any increases in the underlying policy limits in respect of the Business Covered hereunder to which this Agreement
applies without prior approval of the Reinsurers 
 H. The Company warrants the rate changes filed to date and that the Company shall not file any overall
rate decreases for each line of Business Covered hereunder during the Term of this Agreement without the prior approval of the Reinsurer for any business written during the Term of this Agreement. 

  
 29. 

 ARTICLE 29 

MODE OF EXECUTION 
 A. This Agreement may be
executed by: 
 1. written ink signature of paper documents; 

2. exchange of facsimile copies showing the written ink signature of paper documents; 

3. electronic signature technology employing computer software and a digital signature or digitizer pen pad to capture a person’s
handwritten signature in such a manner that: 
 (a) the signature is unique to the person signing; 

(b) is under the sole control of the person signing; 

(c) is capable of verification to authenticate the signature; and 

(d) is linked to the document signed in such a manner that if the document is changed, such signature is invalidated. 

B. The use of any one or a combination of the above methods of execution shall constitute a legally binding and valid signing of this Agreement. This
Agreement may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 
 ARTICLE 30

 VARIOUS OTHER TERMS 
 A. This Agreement
shall be binding upon and inure to the benefit of the Company and Reinsurers and their respective successors and assigns provided, however, that this Agreement may not be assigned by either party without the prior written consent of the other which
consent may be withheld by either party in its sole unfettered discretion. This provision shall not be construed to preclude the assignment by the Company of reinsurance recoverables to another party for collection. 

B. Except as may be provided in the Arbitration Article, this Agreement shall be governed by and construed according to the laws of the State of New York.

 C. The headings preceding the text of the Articles and paragraphs of this Agreement are intended and inserted solely for the convenience of reference and
shall not affect the meaning, interpretation, construction or effect of this Agreement. 
 D. This Agreement is solely between the Company and the
Reinsurers, and in no instance shall any insured, claimant or other third party have any rights under this Agreement unless expressly provided by an endorsement to this Agreement signed by the Reinsurers. 

E. In the event any provision of this Agreement is rendered illegal or unenforceable in any jurisdiction, such provision will be considered void as respects
that jurisdiction only, and such a consideration will not affect the validity or enforceability of any provision of this Agreement in any other jurisdiction. 

  
 30. 

 F. The failure of the Company or Reinsurers to insist on strict compliance with this Agreement or to exercise any
right or remedy shall not constitute a waiver of any rights contained in this Agreement nor estop the parties from thereafter demanding full and complete compliance nor prevent the parties from exercising any remedy. 

G. Each party shall be excused for any reasonable failure or delay in performing any of its respective obligations under this Agreement, if such failure or
delay is caused by Force Majeure. “Force Majeure” shall mean any act of God, strike, lockout, act of public enemy, any accident, explosion, fire, storm, earthquake, flood, drought, peril of sea, riot, embargo, war or foreign, federal,
state or municipal order or directive issued by a court or other authorized official, seizure, requisition or allocation, any failure or delay of transportation, shortage of or inability to obtain supplies, equipment, fuel or labor or any other
circumstance or event beyond the reasonable control of the party relying upon such circumstance or event; provided, however, that no such Force Majeure circumstance or event shall excuse any failure or delay beyond a period exceeding ten
(10) days from the date such performance would have been due but for such circumstance or event. 
 H. All Articles of this Agreement shall survive the
termination of this Agreement until all obligations between the parties have been finally settled. 
 I. Whenever the content of this Agreement requires,
the gender of all words shall include the masculine, feminine and neuter, and the number of all words shall include the singular and the plural. 
 J. As
required by the NAIC Property and Casualty Statement of Statutory Accounting Principles 62(8)(d), the Company shall furnish the Reinsurers a periodic statement showing reporting of premiums and losses and such other information that relate to the
Business Covered in this Agreement as may be needed for Reinsurer’s completion of financial statements to regulatory authorities. 
 K. This Agreement
constitutes the entire agreement between the parties with respect to the Business Covered hereunder. There are no understandings between the parties other than as expressed in this Agreement. Any change or modification to this Agreement will be made
by written amendment to this Agreement and signed by the parties hereto. The proceeding notwithstanding, nothing in this Agreement shall be construed to limit the admissibility of evidence regarding the formation, interpretation, purpose or intent
of this Agreement. 
 L. This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing
this Agreement to be drafted. 
 ARTICLE 31 

INTERMEDIARY 
 A. Towers Watson Pennsylvania Inc.
d/b/a Towers Watson Pennsylvania Insurance Services (“Towers Watson”) (California License #0108583) is hereby recognized as the Intermediary negotiating this Agreement for all business hereunder. All communications (including but not
limited to notices, statements, Reinsurance Premium, return Reinsurance Premium, Ceding Commission, taxes, Ultimate Net Loss, salvage and reports) shall be transmitted to the Company or the Reinsurers through Towers Watson. Payments by the Company
to the Intermediary shall be deemed to constitute payment to the Reinsurers. Payments by the Reinsurers to the Intermediary shall be deemed to constitute payment to the Company only to the extent such payments are actually received by the Company.
In acting as Intermediary for this Agreement, the Intermediary shall comply with all aspects of New York Regulation 98 and shall be entitled to withdraw funds in accordance with section 32(a)(3) of that Regulation including commissions, excise tax
and interest received on its premium and loss accounts. 

  
 31. 

 B. Whenever notice is required within this Agreement, such notice may be given by certified mail, registered
mail, or overnight express mail. Notice shall be deemed to be given on the date received by the receiving party. 

  
 32. 

 In Witness Whereof, the Company, by its duly authorized representative, has executed this
Agreement in confirmation of the terms, conditions and Reinsurers hereon: 
  

			
	For and on behalf of TOWER INSURANCE COMPANY OF NEW YORK, TOWER NATIONAL INSURANCE COMPANY, PRESERVER INSURANCE COMPANY, NORTH EAST INSURANCE COMPANY, CASTLEPOINT INSURANCE COMPANY, HERMITAGE INSURANCE COMPANY, KODIAK
INSURANCE COMPANY, CASTLEPOINT FLORIDA INSURANCE COMPANY, AND CASTLEPOINT NATIONAL INSURANCE COMPANY
		
	By:	 	 /s/ Marina Contiero

		
	Title:	 	 Managing VP

		
	Date:	 	 September 26, 2013

  
 33. 

 NUCLEAR INCIDENT EXCLUSION CLAUSE 

LIABILITY – REINSURANCE – U.S.A. 
  

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

  

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

 Limited Exclusion Provision* 
  

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

 (injury,
sickness, disease, death or destruction 
 (bodily injury or property damage 

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

 

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

  

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

 

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

  

	 	(b)	become effective before that date and contain the Limited Exclusion Provision set out above; provided this paragraph (2) shall not be applicable to Family Automobile Policies, Special Automobile Policies or
Policies or combination Policies of a similar nature, issued by the Cedent on New York risks, until 90 days following approval of the Limited Exclusion Provision by the Governmental Authority having jurisdiction thereof. 

 

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

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

  
 34. 

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

It is agreed that the Policy does not apply: 
  

	 	I.	Under any Liability Coverage, to 

 (injury, sickness, disease, death or destruction 

(bodily injury or property damage 
  

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

  

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

  

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

(immediate medical or surgical relief, 

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

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

	 	III.	Under any Liability Coverage, to 

 (injury, sickness, disease, death or destruction 

(bodily injury or property damage 

resulting from the hazardous properties of nuclear material if 
  

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

 

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

 

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

 (the bodily injury or property
damage 
 arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning,
construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its 

  
 35. 

 
territories, or possessions or Canada, this exclusion (c) applies only to 

(injury to or destruction of property at such nuclear facility 

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

 

	 	IV.	As used in this endorsement: 

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

	 	(a)	any nuclear reactor, 

  

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

 

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

  

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

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

(with respect to injury to or destruction of property, the word “injury” or “destruction” 

(“property damage” includes all forms of radioactive contamination of property. 

(includes all forms of radioactive contamination of property. 
  

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

  

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

  

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

  
 36. 

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

  
  

 

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

  
 37. 

 NUCLEAR INCIDENT EXCLUSION CLAUSE 

LIABILITY – REINSURANCE – CANADA 

1. This Agreement does not cover any loss or liability accruing to the Company as a member of, or subscriber to, any association of insurers or reinsurers
formed for the purpose of covering nuclear energy risks or as a direct or indirect reinsurer of any such member, subscriber, or association. 
 2. Without
in any way restricting the operation of paragraph 1 of this Clause it is agreed that for all purposes of this Agreement all the original liability contracts of the Company, whether new, renewal or replacement, of the following classes, namely, 

Personal Liability, 
 Farmers
Liability 
 Storekeepers Liability, 
 which
become effective on or after 31st December 1984, shall be deemed to include, from their inception dates and thereafter, the following provision: — 

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

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

3. Without in any way restricting the operation of paragraph 1 of this Clause it is agreed that for all purposes of this Agreement all the original liability
contracts of the Company, whether new, renewal or replacement, of any class whatsoever (other than Personal Liability, Farmers Liability, Storekeepers Liability or Automobile Liability contracts), which become effective on or after
31st December 1984, shall be deemed to include, from their inception dates and thereafter, the following provision: — 
 Broad
Exclusion Provision 
 It is agreed that this Policy does not apply: 

 

	 	(a)	to liability imposed by or arising under the Nuclear Liability Act; or 

  

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

  
 38. 

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

  

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

  

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

 

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

As used in this Policy: 
  

	 	(I)	The term “nuclear energy hazard” means the radioactive, toxic, explosive or other hazardous properties of radioactive material: 

 

	 	(II)	The term “radioactive material” means uranium, thorium, plutonium, neptunium, their respective derivatives and compounds, radioactive isotopes of other elements and any other substances that the Atomic Energy
Control Board may, by regulation, designate as being prescribed substances capable of releasing atomic energy, or as being requisite for the production, use or application of atomic energy; 

 

	 	(III)	The term “nuclear facility” means: 

  

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

 

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

  

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

  

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

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

	 	(IV)	the term “fissionable substance” means any prescribed substance that is, or from which can be obtained, a substance capable of releasing atomic energy by nuclear fission. 

 

	 	(V)	with respect to property, loss of use of such property shall be deemed to be property damage. 

  
 39. 

 NUCLEAR INCIDENT EXCLUSION CLAUSE – PHYSICAL DAMAGE – REINSURANCE (BRMA 35B) 

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

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

 

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

  

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

 

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

  

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

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

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

  

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

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

5. It is understood and agreed that this Clause shall not extend to risks using radioactive isotopes in any form where the nuclear exposure is not considered
by the Reassured to be the primary hazard. 
 6. The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act of
1954 or by any law amendatory thereof. 

  
 40. 

 7.Reassured to be sole judge of what constitutes: 

 

	 	(a)	substantial quantities, and 

  

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

  

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

  

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

  

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

  
 41. 

 NUCLEAR, BIOLOGICAL AND CHEMICAL EXCLUSION 

This Agreement excludes all actual or threatened loss, damage, cost and expense (including all consequential loss, damage, cost or expense of
any type) caused by, arising or resulting from, or in connection with: 
 1. any actual, alleged or threatened exposure, release,
dissemination, spreading by contagion, inhalation or absorption (referred to collectively as “dissemination”), of biological and/or chemical substances, and/or 

2. any actual, alleged or threatened nuclear reaction, explosion, radiation, radioactive exposure release or contamination. 

Notwithstanding the above, this exclusion shall not apply to loss as a result of a workplace injury determined to be compensable under the
jurisdictional laws in which the Company conducts business. 

 WAR RISK EXCLUSION CLAUSE (REINSURANCE) 

As regards interests which at time of loss or damage are on shore, no liability shall attach hereto in respect of any loss or damage which is
occasioned by war, invasion, hostilities, acts of foreign enemies, civil war, rebellion, insurrection, military or usurped power, or martial law or confiscation by order of any government or public authority. 

This War Exclusion Clause shall not, however, apply to interest which at time of loss or damage are within the territorial limits of the
United States of America (comprising the fifty States of the Union and the District of Columbia, its territories and possessions, including the Commonwealth of Puerto Rico and including Bridges between the United States of America and Mexico
provided they are under United States ownership), Canada, St. Pierre and Miquelon, provided such interests are insured under original Policies, endorsements or binders containing a standard war or hostilities or warlike operations exclusion clause.

 Nevertheless, this clause shall not be construed to apply to loss or damage occasioned by riots, strikes, civil commotion, vandalism,
malicious damage, including acts committed by agents of any government, party or faction engaged in war, hostilities or other warlike operation, provided such agents are acting secretly and not in connection with any operations of military or naval
armed forces in the country where the interests insured are situated. 

 INSOLVENCY FUND EXCLUSION CLAUSE 

This Agreement excludes all liability of the Ceding 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
assessment of or payment or assumption by the Ceding 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. 

 POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE 

Section A: 
 Excluding: 

 

	 	(a)	All business derived directly or indirectly from any Pool, Association, or Syndicate which maintains its own reinsurance facilities. 

 

	 	(b)	Any Pool or Scheme (whether voluntary or mandatory) formed after March 1, 1968 for the purpose of insurance property whether on a country-wide basis or in respect of designated areas. This exclusion shall not apply
to so-called Automobile Insurance Plans or other Pools formed to provide coverage for Automobile Physical Damage. 

 Section B: 

It is agreed that business written by the Company for the same perils, which is known at the time to be insured by, or in excess of underlying amounts placed
in the following Pools, Associations or Syndicates, whether by way of insurance or reinsurance, is excluded hereunder: 
 Industrial Risk
Insurers, 
 Associated Factory Mutuals Improved Risk Mutuals 

Any Pool, Association or Syndicate formed for the purpose of writing 

Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs, 

United States Aircraft Insurance Group, Canadian Aircraft Insurance Group, 

Associated Aviation Underwriters, American Aviation Underwriters 

Section B does not apply: 
  

	 	(a)	Where the Total Insured Value over all interests of the risk in question is less than $250,000,000. 

  

	 	(b)	To interests traditionally underwritten as Inland Marine or stock and/or contents written on a blanket basis. 

  

	 	(c)	To Contingent Business Interruption, except when the Company is aware that the key location is known at the time to be insured in any Pool, Association, or Syndicate named above other than as provided for under Section
B(a). 

  

	 	(d)	To risks as follows: 

 Offices, Hotels, Apartments, Hospitals, Educational Establishments,
Public Utilities, (other than railroad schedules) and builder’s risks on the classes of risks specified in this subsection (d) only. Where this clause attaches to Catastrophe Excesses, the following Section C is added: 

Section C: 
 Nevertheless the Reinsurer specifically agrees that
liability accruing to the Company from its participation in: 
  

	 	(1)	The following so-called “Coastal Pools”: 

 Alabama Insurance Underwriting Association 

Florida Windstorm Underwriting Association 

Louisiana Insurance Underwriting Association 

Mississippi Windstorm Underwriting Association 

North Carolina Insurance Underwriting Association 

South Carolina Windstorm and Hail Underwriting Association 

Texas Catastrophe Property Insurance Association 

AND 
  

	 	(2)	All “Fair Plan” and “Rural Risk Plan” business for all perils otherwise protected hereunder shall not be excluded, except, however, that this reinsurance does not include any increase in such
liability resulting from: 

  

	 	(i)	The inability of any other participant in such “Coastal Pool” and/or “Fair Plan” and/or “Rural Risk Plan” to meet its liability. 

 

	 	(ii)	Any claim against such “Coastal Pool” and/or “Fair Plan” and/or “Rural Risk Plan” or any participant therein, including the Company, whether by way of subrogation or otherwise, brought by
or on behalf of any insolvency fund (as defined in the Insolvency Fund Exclusion Clause incorporated in this Agreement). 

 

 
 QUOTA SHARE REINSURANCE AGREEMENT EFFECTIVE: 
JULY
1. 2013 Issued to 
TOWER INSURANCE COMPANY OF NEW YORK TOWER NATIONAL INSURANCE COMPANY PRESERVER INSURANCE COMPANY NORTH EAST INSURANCE COMPANY CASTLE POINT
INSURANCE COMPANY HERMITAGE INS ‘UANCE COMPANY KOIDIAK INSURANCE COMPANY CASTLEPOINT FLORIDA INSURANCE COMPANY CASTLEPOINT NATIONAL INSURANCE COMPANY (hereinafter collectively called, the “Company”) by 
HANNOVER RE (IRELAND) PLC AIIN Reference: 1780023 
(hereinafter called, with other
participants, the “Reinsurers”) Under the terms of this Agreement, the above Reinsurer agrees to assume severally and not jointly with other participants

a 100% (one hundred percent) share 
of the liability described in the attached
Agreement, and as consideration, the Reinsurer shall receive a 100% (one hundred percent) share of the premium named therein. 
Signed in Dublin, Ireland on this
26th day of September, 2013, HANNOVER RE (IRELAND) PLC 
BY Scherff 
Tiitle
Kathrin Scherff 
Managing Director 
By (Ross PALTRIDGE) 
TITLE Deputy Underwriter 
TOWERS WATSON 
TW No PA27633.13 
FINAL

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