Document:

Exhibit
10.53

 

 

 

COMMUTATION AND RELEASE AGREEMENT

 

This Commutation and
Release Agreement (this “Agreement”), dated as of April  __, 2004, as made by and between WESTCHESTER
FIRE INSURANCE COMPANY (the “Company”) and ASSURED GUARANTY RE OVERSEAS
LTD. (formerly ACE Capital Re Overseas Ltd.) (the “Reinsurer”).

 

WHEREAS, the parties
hereto have entered into that that certain (i) Reinsurance Agreement, effective
as of January 1, 2001, between the Company and the Reinsurer and attached
hereto as Exhibit A and (ii) Facultative Certificate (No. 2001-1) evidencing an
Intercompany Facultative Reinsurance pursuant to Reinsurance Agreement,
effective as of January 1, 2001, between the Company and the Reinsurer and
attached hereto as Exhibit B (collectively, the “Reinsurance Agreement”);

 

WHEREAS, the parties
hereto desire fully and finally to settle and commute all of their respective
past, present and future right, title, interest and obligations in, to and
under the Reinsurer Agreement.

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

 

Section
1.  Commutation Payment.   The Reinsurer shall (i) transfer to the
Company, in accordance with the written instructions of the Company, the assets
identified on Schedule 1 hereto, which have a fair market value as of the date
immediately preceding the date of transfer of $[         ] and (ii) pay to the Company, in accordance with the
written instructions of the Company, an amount equal to $[         ], in each case, no later than the date
of the closing of the initial public offering of shares of Assured Guaranty
Ltd.

 

Section
2.  Mutual Release.               (a)           Upon payment by the Reinsurer of the amount specified in
Section 1 hereof and effective as of April 1, 2004, the Company hereby
irrevocably and fully and finally releases the Reinsurer (and its predecessors,
parents, affiliates, agents, officers, directors, shareholders, successors and
assigns) from any and all of its past, present and future right, title,
interest and obligations in, to and under the Reinsurance Agreement (of any
nature whatsoever, whether now existing, hereafter arising or contingent or
whether known or unknown), it being the intention of the parties that this
release operate as a full and final settlement of any and all current and
future obligations and liabilities of 
the Reinsurer to the Company under the Reinsurance Agreement.

 

(b)           Subject to the release by the Company
of the Reinsurer as provided in Section 2(a) above and effective as of April 1,
2004, the Reinsurer hereby irrevocably and fully and finally releases the
Company (and its predecessors, parents, affiliates, agents, officers, directors,
shareholders, successors and assigns) from any and all of its past, present and
future right, title, interest and obligations in, to and under the

 

 

Reinsurance Agreement (of any nature whatsoever,
whether now existing, hereafter arising or contingent or whether known or
unknown), it being the intention of the parties that this release operate as a
full and final settlement of any and all current and future obligations and
liabilities of the Company under the Reinsurer Agreement.

 

Section
3.  Successors and Assigns.               The rights, duties and
obligations set forth herein shall inure to the benefit of and be binding upon
any and all predecessors, successors, affiliates, officers, directors,
employees, parents, subsidiaries, stockholders, liquidators, receivers and
assigns of the parties hereto.

 

Section
4.  Representations.              Each of the parties hereto
represents and warrants that: (a) it is a corporation in good standing in its
place of domicile; (b) the execution of this Agreement by it is fully
authorized; (c) the person executing this Agreement on behalf of it has the
necessary and appropriate authority to do so; (d) there are no pending
agreements, transactions or negotiations to which it is a party that would
render this Agreement or any part hereof void, voidable or unenforceable; and
(e) no authorization, consent or approval of any government entity or any third
party is required to make this Agreement valid and binding on it.

 

Section
5.  Entire Agreement.            This Agreement contains the entire
agreement between the parties respecting the subject matter hereof and
supersedes all oral statements and prior writings with respect thereto.

 

Section
6.  Further Assurances.        Each party hereto shall, at any time and
from time to time after the first date written above, upon request of any other
party hereto, do, execute, acknowledge and deliver, or cause to be done,
executed, acknowledged and delivered, all such further acts, instruments,
assignments and assurances as may be reasonably required in order to carry out the
intent of this Agreement.

 

Section
7.  Governing Law.                This Agreement shall be governed by New York law,
without regard to its conflict of laws doctrine.

 

Section
8.  Amendment; Waiver.      This Agreement may be terminated, modified
or amended only by a writing signed by each of the parties.  Any term of this Agreement may be waived by
the party that is entitled to the benefit thereof.  Any waiver shall be in writing and shall be executed by an
executive officer of the party granting the waiver.

 

Section
9.  Counterparts.    This Agreement may be executed in any number or counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

 

 

[The next page is the signature page.]

 

2

 

IN WITNESS WHEREOF, this
Agreement has been executed by a duly authorized officer of each of the parties
as of the date first above written.

 

 

	
  ASSURED GUARANTY RE OVERSEAS LTD.

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  WESTCHESTER FIRE INSURANCE COMPANY

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

 

EXHIBIT A

 

[Attach Reinsurance
Agreement]

 

 

EXHIBIT B

 

[Attach Facultative
Certificate]

 

SCHEDULE
1

 

[Assets to be transferred
and market value thereof]Exhibit 10.55

 

ACE DRAFT 04/16/04

 

ASSIGNMENT AND TERMINATION AGREEMENT

 

This
Assignment and Termination Agreement, dated as of April 1, 2004 (this “Agreement”),
is made by and among Assured Guaranty Re International Ltd., formerly known as
ACE Capital Re International Ltd. (“AGRI”), ACE Bermuda Insurance Ltd.
(“ACE Bermuda”) and ACE Capital Title Reinsurance Company (“ACTRC”).

 

RECITALS

 

WHEREAS, AGRI
and ACTRC have entered into that certain Per Policy Excess of Loss Retrocession
Agreement, dated as of January 1, 2000 (the “Excess of Loss Retrocession
Agreement”), a copy of which is attached hereto as Annex A;

 

WHEREAS, AGRI and ACTRC have
terminated the Excess of Loss Retrocession Agreement on a run-off basis
pursuant to that certain Run-Off Termination Agreement, dated as of April [ ],
2004 (the “Termination Agreement”), by and between AGRI and ACTRC, a copy of
which is attached hereto as Annex B;

 

WHEREAS, AGRI
and ACE Bermuda have entered into that certain Quota Share Retrocession
Agreement, dated as April [  ], 2004
(the “Quota Share Retrocession Agreement”), a copy of which is attached
hereto as Annex C and pursuant to which (i) AGRI and ACE Bermuda have amended
and restated that certain Per Policy Excess of Loss Second Retrocession
Agreement, effective as of January 1, 2000, between AGRI and ACE Bermuda, (ii)
ACE Bermuda has agreed to indemnify AGRI for 100% of the liability of AGRI
under the Excess of Loss Retrocession Agreement and (iii) AGRI has paid ACE
Bermuda an amount equal to [$      ];

 

WHEREAS,
AGRI desires to assign, transfer and novate all of its past, present and future
right, title, interest and obligations in, to and under the Excess of Loss
Retrocession Agreement to ACE Bermuda as set forth in this Agreement;

 

WHEREAS,
ACE Bermuda desires to accept all of AGRI’s past, present and future right,
title, interest and obligations in, to and under the Excess of Loss
Retrocession Agreement as set forth in this Agreement;

 

WHEREAS,
AGRI and ACE Bermuda desire to terminate the Quota Share Retrocession
Agreement; and

 

WHEREAS,
ACTRC desires to consent to the assignment, transfer and novation referred to
above and to release AGRO from liability under the Excess of Loss Retrocession
Agreement.

 

 

NOW, THEREFORE, in
consideration of the premises and covenants contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

1.                                       Effective
as of the date hereof:

 

(i)                                     AGRI
hereby assigns, transfers and novates all of its past, present and future
right, title and interest in the Excess of Loss Retrocession Agreement to ACE
Bermuda;

 

(ii)                                  AGRI
hereby assigns, transfers and novates all of its past, present and future
obligations which arise out of, relate to, or are in any way connected with,
the Excess of Loss Retrocession Agreement to ACE Bermuda;

 

(iii)                               ACE
Bermuda hereby accepts each assignment, transfer and novation referred to in
the immediately preceding clauses (i) and (ii) and assumes all of the liabilities
and obligations (whether past, present or future) with respect to the
foregoing;

 

(iv)                              ACTRC
hereby acknowledges and consents to each assignment, transfer and novation
referred to in the preceding clauses (i) and (ii); and

 

(v)                                 AGRI
and ACE Bermuda hereby acknowledge and agree that the Quota Share Retrocession
Agreement is hereby terminated in all respects and all of the respective rights and obligations of AGRI and ACE Bermuda
thereunder are irrevocably and unconditionally cancelled and terminated, and
each of AGRI and ACE Bermuda fully and finally releases and discharges the
other party from any obligations, claims or liabilities (of any nature
whatsoever, whether now existing, hereafter arising or contingent and whether
known or unknown) of the other party arising out of and to be performed in
connection with such Quota Share Retrocession Agreement.

 

2.                                       In furtherance
of the foregoing, ACTRC hereby releases AGRI from any and all past, present or
future liabilities or obligations with respect to the Excess of Loss
Retrocession Agreement (as modified by the Termination Agreement), and ACE
Bermuda hereby agrees to indemnify and hold AGRI harmless against any and all
such liabilities and obligations.

 

3.                                       Each party
hereto shall, at any time and from time to time after the first date written
above, upon request of any other party hereto, do, execute, acknowledge and
deliver, or cause to be done, executed, acknowledged and delivered, all such
further acts, instruments, assignments and assurances as may be reasonably
required in order to carry out the intent of this Agreement.

 

2

 

4.                                       This
Agreement, together with the Quota Share Retrocession Agreement, the Excess of
Loss Retrocession Agreement and the Termination Agreement, contains the entire
agreement and understanding of the parties hereto with respect to the matters
herein and supersedes any other agreement, whether written or oral, with
respect to the subject matter of this Agreement.  In the event of any conflict between the provisions of this
Agreement and the provisions of the Quota Share Retrocession Agreement, the
Excess of Loss Retrocession Agreement or the Termination Agreement, the
provisions of this Agreement shall control.

 

5.                                       The
consideration for the transactions contemplated by this Agreement is included
in the consideration paid under the Quota Share Retrocession Agreement.

 

6.                                       This
Agreement may be executed in any number of counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.

 

7.                                       This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflicts of law rules thereof.

 

8.                                       Except
as expressly set forth herein and amended hereby, the Excess of Loss
Retrocession Agreement shall remain in full force and effect.

 

 

[The next page is the signature page.]

 

3

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the date first above written.

 

 

	
  ASSURED GUARANTY RE
  INTERNATIONAL LTD.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  ACE BERMUDA INSURANCE LTD.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  ACE CAPITAL TITLE REINSURANCE COMPANY

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

ANNEX A

 

[Attach AGRI/ACTRC
Excess of Loss Retrocession Agreement]

 

 

ANNEX B

 

[Attach AGRI/ACTRC
Run-Off Termination Agreement]

 

 

ANNEX C

 

[Attach AGRI/ACE
Bermuda Quota Share Retrocession Agreement]

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