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Exhibit 10.1 to Motorola, Inc.'s Form 10-Q
  for the period ended September 28, 2002    
  

Description of Future Compensation Arrangements between Motorola, Inc.

and Mike Zafirovski, President and Chief Operating Officer  

        The Company originally entered into compensation arrangements with Mr. Zafirovski in April 2000 as an incentive for him to join Motorola. Upon
Mr. Zafirovski's election as President and Chief Operating Officer of the Company on July 25, 2002, those arrangements were amended. The compensation arrangements, as amended, provide
for the following payments to be made in the future as described below: 

	•
	A
guaranteed minimum payment under the Company's Long Range Incentive Plan of $650,000 that will be payable in the year 2003

	•
	A
restricted stock grant effective July 29, 2002 of 500,000 shares of Motorola common stock; the restrictions on all of the restricted stock will
lapse on July 29, 2006

	•
	A
restricted stock grant with a face value of $4,000,000 in May 2003; the restrictions on all of the restricted stock will lapse in May 2007

	•
	A
restricted stock grant with a face value of $4,000,000 in May 2006 assuming continued good performance in future years; the restrictions on all of the
restricted stock would lapse in May 2010

	•
	The
replacement of Mr. Zafirovski's General Electric SERP benefit that was forfeited at the time of his employment with Motorola in the amount of
$4,000,000 as a deferred cash payment that will be payable to Mr. Zafirovski at age 60. The Company will also provide interest quarterly on this amount, at the rate of 7% per annum, from
Mr. Zafirovski's start date until he is age 60. In the event of Mr. Zafirovski's death before age 60, the amount credited to his account at the date of death plus any interest accrued
from the last day of the preceding calendar quarter to the date of payment, shall be payable to the person or persons that Mr. Zafirovski designates from time to time, or to his estate if no
such designation is made. In the event of any other termination of Mr. Zafirovski's employment or a change in control before Mr. Zafirovski reaches age 60, the balance of his account on
the date of
termination or change in control, plus any interest accrued from the last day of the preceding calendar quarter to the date of payment, will be paid to Mr. Zafirovski in a lump sum. 

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Exhibit 10.1 to Motorola, Inc.'s Form 10-Q for the period ended September 28, 2002QuickLinks
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Exhibit 10.2 to Motorola, Inc.'s Form 10-Q
  for the period ended September 28, 2002    
  

Description of Future Compensation Arrangements between Motorola, Inc.

and David Devonshire, Executive Vice President and Chief Financial Officer  

        The Company entered into compensation arrangements with Mr. Devonshire in March 2002 as an incentive for him to join Motorola. His compensation
arrangements provide for the following payments to be made in the future as described below: 

	•
	A
sign-on bonus of $575,000, half of which was paid within 30 days of Mr. Devonshire's employment and the other half of which will
be paid after completion of his first year of employment; if Mr. Devonshire voluntarily terminates his employment with Motorola or if he is terminated for cause within one year of his
commencement of employment with Motorola, the sign-on bonus will have to be repaid in full

	•
	A
stock option for 400,000 shares of Motorola common stock granted on March 18, 2002 with an option exercise of $14.00, the market price of Motorola
stock on the date of grant; the options will expire on March 18, 2012; 25% of the options will vest on each anniversary of the grant for the following four years; the options are subject to the
conditions of the Company's standard award agreement and stock option consideration agreement

	•
	A
grant of 20,000 restricted stock units effective on March 18, 2002; the restrictions on 50% of the restricted stock units will lapse on
March 18, 2005; the restrictions on an additional 25% of the restricted stock units will lapse on March 18, 2006; and the restrictions on the remaining restricted stock units will lapse
on March 18, 2007

	•
	A
guaranteed minimum payment under the Motorola Incentive Plan at the time bonuses for the year 2002 are payable under the plan in the amount of $244,375

	•
	A
stock option grant as part of the Company's annual stock option grants in 2003, with respect to not less than $4,000,000 of the Company's shares, subject
to Mr. Devonshire's continued employment with the Company through the grant date; when granted, the stock options will vest in four equal annual installments beginning one year after the date
of grant and are subject to the conditions of the Company's standard award agreement and stock option consideration agreement

	•
	If
Mr. Devonshire is terminated without cause, Motorola agrees to pay him severance equal to one year's base salary plus his targeted incentive
payout. 

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Exhibit 10.2 to Motorola, Inc.'s Form 10-Q for the period ended September 28, 2002QuickLinks
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Exhibit 10.1    
  

AMENDMENT 2002-1

TO THE

HILTON HOTELS

EXECUTIVE DEFERRED COMPENSATION PLAN  

HILTON
HOTELS CORPORATION hereby adopts this Amendment No. 2002-1 to the Hilton Hotels Executive Deferred Compensation Plan (the "Plan"). This Amendment is adopted pursuant to the
provisions of Section 10.4 of the Plan. 

        1.    Section 6.9
of the Plan is amended by appending the following at the end thereof: 

"All
existing Compensation Deferral elections by any Participant electing to receive a distribution under this Section 6.9 shall be cancelled as soon as reasonably practicable, but no later
than the first payroll cut-off date following the date on which such election is made. Compensation Deferrals for any Participant making such an election shall be barred (a) with
respect to the remainder of the Plan Year in which such election was made, and (b) if such election is made after June 30 of a Plan Year, with respect to the next succeeding Plan Year." 

        2.    The
amendments made by this instrument shall be effective September 30, 2002. 

IN
WITNESS WHEREOF, and as evidence of the adoption of this Amendment 2002-1, Hilton Hotels Corporation has caused the same to be executed by its duly authorized officers and its corporate
seal to be affixed hereto this 26th day of September, 2002. 

	Attest:	 	HILTON HOTELS CORPORATION
	

/s/  RITA BAXENDALE      
Witness	
 	

By:	
 	

/s/  MOLLY MCKENZIE-SWARTS      

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Exhibit 10.1    
  

 
 

QUOTA SHARE REINSURANCE AGREEMENT (J-98-R1)    
  

	 
	 	ARTICLE
	 	PAGE

	COVERAGE	 	I	 	2
	

TERM AND CANCELLATION	
 	

II	
 	

2
	

TERRITORY	
 	

III	
 	

4
	

EXCLUSIONS	
 	

IV	
 	

4
	

DEFINITIONS	
 	

V	
 	

5
	

REINSURANCE PREMIUM AND CEDING COMMISSION	
 	

VI	
 	

6
	

OTHER REINSURANCE	
 	

VII	
 	

6
	

REPORTS AND REMITTANCES	
 	

VIII	
 	

6
	

RESERVES AND FUNDING	
 	

IX	
 	

7
	

OFFSET AND SECURITY	
 	

X	
 	

8
	

ERRORS AND OMISSIONS	
 	

XI	
 	

9
	

AMENDMENTS	
 	

XII	
 	

9
	

INSOLVENCY	
 	

XIII	
 	

9
	

ARBITRATION	
 	

XIV	
 	

10
	

TAXES	
 	

XV	
 	

11
	

CURRENCY	
 	

XVI	
 	

11

1

  

 
 

QUOTA SHARE REINSURANCE AGREEMENT (J-98-R1)    
  

        THIS AGREEMENT is made and entered into by and between SCOTTSDALE INSURANCE COMPANY, an Ohio corporation having its principal place of business at Scottsdale,
Arizona (hereinafter called the "Company") of the one part, and Veterinary Pet Insurance Company (hereinafter called the "Reinsurer") of the other part. 

        This
agreement, J-98-R1, as presently constituted has been rewritten effective October 15, 1999 and replaces in its entirety and from inception the prior
agreement, J-98, originally effective January 1, 1998. This agreement has been rewritten in order to bring it into full compliance with California Department of Insurance
regulations. 

        WITNESSETH:

        That
in consideration of the mutual covenants hereinafter contained and upon the terms and conditions hereinbelow set forth, the parties hereto agree as follows: 

 
 

ARTICLE I    
    

 COVERAGE  

        The Company will cede to the Reinsurer and the Reinsurer will accept an 80% quota share participation in respect to all policies written or renewed with an
effective date on or after January 1, 1998 and policies in force at the time of the inception of this Agreement produced by DVM Insurance Agency, Inc. 

        All
reinsurance for which the Reinsurer will be obligated by virtue of this Agreement will be subject to the same terms, rates, conditions, interpretations, waivers, modifications, and
alterations as the
respective policies of the Company to which this reinsurance applies. Nothing herein will in any manner create any obligations or establish any rights against the Reinsurer in favor of any third
parties or any persons not parties to this Agreement except as provided in the Insolvency Article. 

 
 

ARTICLE II    
    

 TERM AND CANCELLATION  

        This Agreement will apply to all losses occurring on or after January 1, 1998, 12:01 a.m. standard time (as defined in the Company's original
policies) on policies written or renewed with an effective date on or after January 1, 1998, and all policies in force at the time of the inception of this Agreement and will remain in full
force and effect until canceled as hereinafter provided. 

        This
Agreement may be canceled any January 1 by either party giving at least 90 days prior notice by certified or registered mail to the other party. 

        In
the event this Agreement is canceled in accordance with the aforementioned procedure, the Reinsurer will remain liable for all losses under policies in force until their expiration or
renewal dates, whichever come first, but in no event will the Reinsurer's liability extend for a run-off period longer than 12 months plus extensions and odd time not to exceed
18 months in all from the date of cancellation. The Reinsurer will return immediately, on a pro rata basis as of the date its liability ceases, the unearned reinsurance premium on those
policies that remain in force beyond the run-off period less ceding commission, if any. 

        Alternatively,
the Company may elect to cancel the Reinsurer's liability on a cut-off basis as of the date of cancellation, and the Reinsurer will not be liable for any
losses occurring on or after the cancellation date and will return immediately to the Company the unearned reinsurance premium less ceding commission as of that date computed on a monthly pro rata
basis. The Reinsurer will also remain liable with respect to policies having aggregate limits. 

2

 

        Notwithstanding
the other provisions in this Article, in the event the Company's original policies are written in a jurisdiction where cancellation, renewal, or nonrenewal is regulated
by the insurance authorities, and the Company is bound by such regulations and statutes of said jurisdiction or by a judicial decision, the Reinsurer will remain liable on any such policies in force
at cancellation date of this Agreement (and will receive the premium therefor) until the date each expires or until the first renewal date when the Company can lawfully nonrenew said policies,
whichever occurs first. If,
however, the Company intends to hold the business net and for its own account, or has other reinsurance agreements that would apply to such business, the Reinsurer will not be liable for longer than
the run-off period set forth above. 

        The
Company may terminate the Reinsurer's participation hereon at any time on a cut-off basis by giving 30 days notice in writing by certified or registered mail to
said Reinsurer upon the happening of any one of the following circumstances: 

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

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

        C.    The
Reinsurer's surplus has been reduced by whichever is greater, either 20% of the amount of surplus at the inception of this Agreement or 20% of the amount at the
latest anniversary, or has lost any part of, or has reduced its paid-up capital; 

        D.    The
Reinsurer has merged with or has become acquired or controlled by any company, corporation, or individual(s) not controlling the Reinsurer's operations previously; or 

        E.    The
Reinsurer has reinsured its entire liability under this Agreement without the Company's prior written consent. 

        If
said Reinsurer's participation is so canceled, it will immediately return the unearned portion of any premium paid hereunder, less ceding commission, if any. 

        Additionally,
if said Reinsurer's participation is canceled pursuant to subparagraphs A through E above, then the Company, at its sole discretion, may elect to commute the Reinsurer's
liability for losses, including loss expense, whether known or unknown, on policies covered under this Agreement. In the event the Company and the Reinsurer cannot agree upon the capitalized value of
the Reinsurer's liability on such policies, the two parties will mutually appoint an actuary within 30 days to resolve the matter of valuation and will share equally in any expense associated
with such appointment in a manner agreed upon at the time of the appointment. The appointed actuary will not be under the control of either party and will be a Fellow of the Casualty Actuarial
Society. The value determined by said actuary will be set forth in a sworn statement expressing the actuary's professional opinion that
said value is fair for the complete release of all liabilities being commuted. Payment by the Reinsurer of the amount of liability ascertained will constitute a complete and final release of the
Reinsurer with respect to its liability for all losses, including loss expense, whether known or unknown, on policies covered under this Agreement. 

        Alternatively,
if said Reinsurer's participation is canceled pursuant to subparagraphs A and B above, then the Company, at its sole discretion, may require the Reinsurer to return all
premium paid by the Company to the Reinsurer under this Agreement, less paid losses and ceding commission, if any. The Reinsurer then will be released completely from any and all liability for all
losses, including loss expense, whether known or unknown, on policies covered under this Agreement. 

3

 

 
 

ARTICLE III    
    

 TERRITORY  

        The Reinsurer's territorial liability will follow that of the Company's policies and anywhere in the world. 

 
 

ARTICLE IV    
    

 EXCLUSIONS  

        No reinsurance indemnity will be afforded under this Agreement for: 

        A.    Liability
assumed by the Company under any form of treaty reinsurance; however, local agency reinsurance accepted in the normal course of business and/or policies written
by another carrier (including companies within the Nationwide Insurance Group) at the Company's request and reinsured 100% by the Company will not be excluded hereunder. 

        B.    Loss
or damage caused directly or indirectly by: 

        1.    Hostile
or warlike action in time of peace or war, including action in hindering, combating, or defending against an actual, impending, or expected attack by: 

	a.
	Military,
naval, or air forces.

	b.
	Any
government or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval, or air forces.

	c.
	An
agent of any such government, power, authority, or forces. 

Any
discharge, explosion, or use of any weapon of war employing atomic fission, fusion, or radioactive force will be conclusively presumed to be such a hostile or warlike action by such government,
power, authority, or forces. 

        2.    Insurrection,
rebellion, revolution, civil war, usurped power, or action taken by a governmental authority in hindering, combating, or defending against such occurrence. 

This
Exclusion will not apply, however, provided such loss or damage is insured under policies that contain a standard war exclusion clause. 

        C.    Loss
or liability excluded by the Insolvency Funds Exclusions Clause attached to this Agreement. 

        D.    Loss
or physical damage excluded by the "Nuclear Incident Exclusion Clauses—Physical Damage—Reinsurance (USA)" and the "Nuclear Incident Exclusion
Clause—Physical Damage—Reinsurance (Canada)" attached to this Agreement, or as may be revised hereafter by the Lloyd's Underwriters' Non-Marine Association. 

        E.    Injury
or illness manifested prior to effective date of coverage. 

        F.    Injury
due to intentional act of owner. 

        G.    Breeding
or disorders related to pregnancy unless underwritten and endorsed on the policy and a premium charged therefor. 

        H.    Congenital
defects or disease. 

        I.    Cosmetic
surgeries, including but not limited to tail docking, dewclaws, ear cropping. 

        J.    Boarding
or travel expenses. 

        K.    Special
diets, pet foods, vitamins, mineral supplements. 

4

 

        L.    Diseases
preventable by vaccination (unless appropriate vaccines were administered by a licensed veterinarian). 

        The
Company may submit to the Reinsurer, for special acceptance hereunder, business not covered by this Agreement. If said business is accepted by the Reinsurer, it will be subject to
the terms of this Agreement, except as such terms are modified by such acceptance. Any special acceptance business covered under any reinsurance agreement being replaced by this Agreement will be
covered hereunder automatically. Further, should reinsurer become a party to this Agreement subsequent to the acceptance of any business not covered hereunder normally, it will accept same as being a
part of this Agreement automatically. 

 
 

ARTICLE V    
    

 DEFINITIONS  

        "Agreement year" as used in this Agreement will mean a period of 12 consecutive months, commencing with the inception of this Agreement or any anniversary
thereof. 

        "Loss"
as used in this Agreement will mean the amount of any settlement, award, or judgment paid by the Company or for which the Company has become liable to pay (including interest
accrued prior to final judgment if included as part of loss on reinsured policies, and any claims-related extra contractual obligations and/or excess limits liability) after deduction of all
recoveries, salvages, and subrogations, and inuring reinsurance whether recovered or not. Loss will not include loss expense, unless loss expense is included within the limit of liability of the
policies reinsured hereunder. 

        "Loss
expense" as used in this Agreement will mean all expenses incurred by the Company in the investigation, appraisal, adjustment, litigation and/or defense of claims under policies
reinsured hereunder, including court costs, interest accrued prior to final judgment if included as part of expense on reinsured policies, and interest accrued after final judgment, but excluding
internal office expenses, salaries, per diem, and other remuneration of regular Company employees and unallocated loss adjustment expenses. Such loss expense, where incurred in connection with claims
involving this reinsurance, and not included within the limit of liability of the reinsured policies, will be apportioned between the Company and the Reinsurer in proportion to their respective
interests as finally determined in addition to the retention and limit of this Agreement. However, in the event a verdict or judgment is reduced by an appeal or a settlement, subsequent to the entry
of the judgment, resulting in an ultimate saving on such verdict or judgment, or a judgment is reversed outright, the loss expense incurred in securing such final reduction or reversal will be
prorated between the Reinsurer and the Company in the proportion that each benefits from such reduction or reversal, and the expenses incurred up to the time of the original verdict or judgment will
be (a) prorated in proportion to each party's interest in such verdict or judgment, or (b) added to the Company's loss when the terms and conditions of the Company's policies reinsured
hereunder include expense as part of the policy limit. 

        "Claim"
as used in this Agreement, unless defined otherwise in the policies reinsured hereunder, will mean accidental injury or illness as shown in the policy benefits schedule. 

        "Policies"
as used in this Agreement will mean all policies, binders, contracts, or agreements of insurance whether written or oral. 

        "Net
written premium" as used in this Agreement will mean the gross written premium of the Company for the business reinsured hereunder, less returned premium for cancellations and
reductions, and less premium for reinsurance as set forth in the Other Reinsurance Article. 

5

 

 
 

ARTICLE VI    
    

 REINSURANCE PREMIUM AND CEDING COMMISSION  

        The Company will cede to the Reinsurer its proportionate share of the net written premium on all policies written or renewed with an effective date on or after
the inception of this Agreement, plus its proportionate share of unearned premium reserve on policies in force at the inception of this Agreement, less ceding commission as set forth below. 

        The
Reinsurer will allow the Company a flat ceding commission based on the net written premium plus, for the first year of this agreement only, the unearned premium reserve as agreed,
both prior to any reinsurance cession hereunder, produced by DVM Insurance Agency, Inc. and written through the Company for the prior twelve (12) month period. Said commission to be as
follows: 

	Direct Written Premium
 
	 	Commission Rate
	 
	Up to $8,000,000	 	38.5	%
	

$8,000,001 to $15,000,000	
 	

37.5	
%
	

$15,000,001 to $25,000,000	
 	

36.5	
%
	

$25,000,001 and over	
 	

36.0	
%

This
table shall be applied to the business written in each calendar year commencing at January 1 and ending December 31, and shall be adjusted to the appropriate commission rate each
January 1 for the subsequent year. The commission will include taxes of all kinds, local board assessments, and all other expenses and charges whatsoever based on the premium for business ceded
under this Agreement. 

 
 

ARTICLE VII    
    

 OTHER REINSURANCE  

        The Company is permitted to have other treaty reinsurance. The premium for any such reinsurance that inures to the benefit of this Agreement will be deducted from
the gross subject premium hereunder. Additionally, the Company may purchase facultative reinsurance on any subject risk it deems advisable, and the premium for that portion of the Company's policy
reinsured elsewhere will be deducted from the gross subject premium hereunder. The Company is also permitted to have excess of loss treaty reinsurance on its quota share retention hereunder,
recoveries under which will inure to the sole benefit of the Company. 

 
 

ARTICLE VIII    
    

 REPORTS AND REMITTANCES  

        The Reinsurer shall furnish to the Company, in the manner set forth below, the following reports: 

        Monthly:

        1.    Monthly
account showing written premium, by state, in respect of cessions made during the month, less ceding commission at the rate specified in the Reinsurance Premium
and Ceding Commission Article; 

        2.    Unearned
premium; 

        3.    Paid
losses, by state, segregated by loss year; and 

        4.    Outstanding
losses; 

6

 

        Annually:

        1.    Commission
calculation as set forth in the Reinsurance Premium and Ceding Commission Article. 

Monthly
reports are due within 30 days of the close of each month. Remittance of balances due either party shall be paid within 90 days of the close of the month being accounted for. 

 
 

ARTICLE IX    
    

 RESERVES AND FUNDING  

        (This Article is only applicable if the Reinsurer cannot qualify for credit by each governmental authority having jurisdiction over the Company's reserves.) 

        As
regards policies issued by the Company coming within the scope of this Agreement, the Company agrees that, when it files with the Insurance Department or sets up on its books reserves
for losses (including loss and loss expense paid by the Company but not recovered from the Reinsurer, loss and loss expense reported and outstanding, and an allowance for IBNR as determined by the
Company) covered hereunder and/or unearned premium, which it is required by law to set up, it will forward to the Reinsurer a statement showing the proportion of such reserves applicable to it. The
Reinsurer hereby agrees that they will fund such reserves by cash advances, Trust Agreements, escrow accounts for the benefit of the Company, Letters of Credit, or a combination thereof. The Reinsurer
will have the option of determining the method of funding referred to above, provided it is acceptable to the Company and the applicable regulatory authorities. 

        If
the Reinsurer's choice of funding is or includes a Letter of Credit, it will apply for and secure delivery to the Company a clean, irrevocable, unconditional Letter of Credit, dated
on or before December 31 of the year in which the request is made, issued by Citibank, N.A. (or another member of the Federal Reserve System) or any bank approved for use by the NAIC Securities
Valuation Office, 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. The Letter of Credit will be issued for a period of not less than one year, and will be automatically extended for one year from its date of expiration or any future expiration date unless
30 days prior to any expiration date the issuing bank notifies the Company by registered mail that it elects not to consider the Letter of Credit extended for any additional period. An issuing
bank, not a member of the Federal Reserve System or not chartered in the state of domicile of the Company, will provide 60 days notice to the Company prior to any expiration in the event of
nonextension. 

        Notwithstanding
any other provisions of this Agreement, the Company or its successors in interest may draw upon the cash advances, Trust Agreements, escrow accounts and/or Letters or
Credit at any time without diminution because of the insolvency of the Reinsurer for one or more of the following purposes only: 

        A.    To
reimburse the Company for the Reinsurer's share of unearned premium on policies reinsured hereunder on account of cancellations of such policies. 

        B.    To
pay the Reinsurer's share or to reimburse the Company for the Reinsurer's share of any loss reinsured by this Agreement. 

        C.    To
make refund of any sum in excess of the actual amount required to pay the Reinsurer's share of any liability reinsured by this Agreement. 

        D.    In
the event of nonextension of the Letter of Credit as provided for above, to establish deposit of the Reinsurer's share of reserves for losses and/or unearned premium
under this Agreement. 

        E.    To
pay any other amounts the Company claims are due under this Agreement. 

7

  

        The issuing bank will 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. 

        Semi-annually,
the Company will prepare and forward to the Reinsurer's, their share of reserves for losses and/or unearned premium. If the statement shows that Reinsurer's
share of such reserves exceeds the balance available through cash advances, Trust Agreements, escrow accounts and/or Letters of Credit as of the statement date, then the Reinsurer will, within
30 days after receipt of notice of such excess, make an adjustment to increase the amount available. If, however, the statement shows that the Reinsurer's share of such reserves is less than
the balance available through the chosen method of funding as of the statement date, the Company will, within 30 days after receipt of written request from the Reinsurer, release such excess by
making the appropriate adjustment. 

 
 

ARTICLE X    
    

 OFFSET AND SECURITY  

        Each party hereto has and may exercise at any time the right to offset any amounts (whether on account of premiums, losses, or otherwise) due from such party to
another party, whether under this Agreement or under any other reinsurance agreement heretofore or hereafter entered into between it, against any amounts (whether on account of premiums, losses, or
otherwise) due from the latter party to the former party. The party asserting the right of offset may exercise this right, whether as assuming or ceding insurer or in both roles, in the relevant
agreement or agreements. 

        Each
party hereby assigns and pledges to the other party (or to each other party, if more than one) all of its rights under this Agreement to receive premium or loss payments
(hereinafter called the "collateral') at any time from such other party, in order to secure its premium or loss obligations (hereinafter called the "secured obligations') to such other party at any
time under this Agreement and any other reinsurance agreement heretofore or hereinafter entered into by and between them. If at any time a party is in default under any secured obligation, each other
party will be entitled in its discretion to apply, or to withhold for the purpose of applying in due course, any collateral assigned and pledged to it by the former party and otherwise to realize upon
such collateral as security for such secured obligations. Premium or loss obligations not realized, recovered, or satisfied in full by resorting to such
collateral will remain entirely collectible and recoverable, and the secured party will reserve all rights to future means and measures of recovery, waiving none. 

        The
security interest described herein and the collateral will apply to all payments and other proceeds in respect of the rights assigned and pledged. A party's security interest in
collateral will be deemed evidenced only by the counterpart of this Agreement delivered to such party. 

 
 

ARTICLE XI    
    

 ERRORS AND OMISSIONS  

        The Company will not be prejudiced in any way by any omission, through clerical error, accident, or oversight, to cede to the Reinsurer any reinsurance correctly
falling to its share under the terms of this Agreement. Neither will the Company be prejudiced by erroneous cancellation (either partial or total) of any cession, by omission to report or erroneously
reporting any losses, or by any other error or omission. Further, errors and omissions inadvertently made will not invalidate the liability of the Reinsurer. Any such error or omission, however, will
be corrected immediately upon discovery. 

8

 

 
 

ARTICLE XII    
    

 AMENDMENTS  

        By mutual consent of the Company and the Reinsurer, any of the terms or conditions of this Agreement may be altered or amended by addendum and/or by exchange of
letters. Each such addendum and/or exchange of letters will then constitute a part of this Agreement. 

 
 

ARTICLE XIII    
    

 INSOLVENCY  

        In the event of insolvency and the appointment of a conservator, liquidator, or statutory successor of the ceding company, the portion of any risk or obligation
assumed by the reinsurer 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. Payments by the reinsurer as set forth in this article shall be made directly to the ceding insurer or to its conservator,
liquidator, or statutory successor, except where the contract of insurance or reinsurance specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer. 

        The
conservator, liquidator, or statutory successor of a ceding insurer shall give written notice of the pendency of a claim against the ceding insurer indicating the policy or bond
reinsured, within a reasonable time after such claim is filed and the reinsurer may interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses
which it may deem available to the ceding insurer or its conservator, liquidator, or statutory successor. The expense thus incurred by the reinsurer shall be payable subject to court approval out of
the estate of the insolvent ceding insurer as part of the expense of conservation or liquidation to the extent of a proportionate share of the benefit which may accrue to the ceding insurer in
conservation or liquidation, solely as a result of the defense undertaken by the reinsurer. 

 
 

ARTICLE XIV    
    

 ARBITRATION  

        As a condition precedent to any right of action under this Agreement, any dispute arising out of or in connection with this Agreement between the Company and the
Reinsurer hereon, other than as to its actual validity, during or after expiration or termination of this Agreement will be submitted to the decision of a board of arbitration composed of two
arbitrators and an umpire meeting at a site in Scottsdale, Arizona. 

        A
notice requesting arbitration or any other notice made in connection therewith will be in writing and sent certified or registered mail, return receipt requested. The notice requesting
arbitration will state in particulars all issues to be resolved in the view of the claimant, will appoint the arbitrator selected by the claimant, and will set a date for the hearing, which date will
be no sooner than 90 days and no later
than 150 days from the date that the notice requesting arbitration is mailed. Within 30 days of receipt of the claimant's notice, the respondent will notify the claimant of any
additional issues to be resolved in the arbitration and of the name of its appointed arbitrator. 

        The
members of the board of arbitration will be impartial and disinterested active or former executive officers of insurance or reinsurance companies or Underwriters at Lloyd's, London.
The Company and the Reinsurer as aforesaid will each appoint an arbitrator and the two arbitrators will choose an umpire before instituting the hearing. If the respondent fails to appoint its
arbitrator within 

9

 

30 days after having received the claimant's written request for arbitration, the claimant is authorized to and will appoint the second arbitrator. If the two arbitrators fail to agree upon
the appointment of an umpire within 30 days after notification of the appointment of the second arbitrator, within 10 days thereof, the claimant will petition the United States District
Court having geographical jurisdiction over the site of arbitration to select the umpire. The selection of the umpire will be within the exercise of sound discretion by the court. The umpire will
promptly notify in writing all parties to the arbitration of his selection. 

        The
claimant and respondent will each submit initial briefs to the board of arbitration outlining the issues in dispute and the basis and reasons for their respective positions within
30 days of the date of notice of appointment of the umpire. The claimant and the respondent may submit reply briefs within 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 10 days prior to the date of commencement of the arbitration. Reasonable responses will be allowed at the
arbitration to new material contained in any amendments filed to the briefs but not previously responded to. 

        The
board will make its award with regard to this Agreement and the custom and usage of the property-casualty insurance and reinsurance business. The award will be in writing and will be
based upon a hearing in which evidence will be allowed and in which the formal rules of evidence will not apply but in which cross examination and rebuttal will be allowed. At its own election or at
the request of the board, either party may submit a post-hearing brief for consideration of the board in its decision within 20 days of the close of the hearing. The board will make
its award within 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. A decision by
the majority of the members of the board will be final and binding upon all parties to the proceeding. Either party may apply to the United States District Court in the Company's state of domicile for
an order confirming the award; a judgment of such court will thereupon be entered on the award. If such an order is issued, the attorney's fees of the party so applying and court costs will be paid by
the party against whom confirmation is sought. 

        Each
party will bear the expense of the one arbitrator to be selected by it and will jointly and equally bear with the other party(ies) the expense of any stenographer requested, and of
the umpire. The remaining costs of the arbitration proceedings will be finally allocated by the board. The board may, at its discretion, award such further costs and expenses as it considers
appropriate, to the extent permitted by law. 

        Subject
to customary and recognized legal rules of privilege, each party participating in the arbitration will have the obligation to produce as witnesses to the arbitration such of its
employees or those of its affiliate as any other participating party may request, providing always that the same witnesses and documents be relevant to the issues before the arbitration and provided
further that the parties may mutually agree as to further discovery prior to the arbitration. The umpire will be the final judge of rules of privilege and as to relevancy of any witnesses and
documents upon the petition of any participating party. 

 
 

ARTICLE XV    
    

 TAXES  

        The Company will pay all taxes on premiums reported to the Reinsurer on this Agreement. 

 
 

ARTICLE XVI    
    

 CURRENCY  

        The use of the sign "$" in this Agreement is in reference to United States of America Dollars. 

10

 

************************************************

        In
witness whereof, the parties hereto have caused this Agreement to be executed in duplicate by their duly authorized representatives. 

SCOTTSDALE INSURANCE COMPANY 

        Signed
at Scottsdale, AZ on this 18th day of October 1999. 

	

Signature:	

/s/  MICHAEL D. MILLER      
	
 	

Attest:	

Laurie G. Lowe

	Title:	Vice President Finance/Information Systems Services & Treasurer
	 	 	 

VETERINARY PET INSURANCE COMPANY 

        Signed
at Anaheim, CA on this 19th day of October 1999. 

	

Signature:	

/s/  JACK L. STEPHENS      
	
 	

Attest:	

Andrea Gale

	Title:	President
	 	 	 

11

 
 

ADDENDUM 1    
  

attaching
to and forming a part of

QUOTA SHARE REINSURANCE J-98-R1

BETWEEN 

SCOTTSDALE
INSURANCE COMPANY

(hereinafter called the "Company") 

and

VETERINARY
PET INSURANCE COMPANY

(hereinafter call the "Reinsurer") 

        It
is hereby mutually understood and agreed that, as respects business written or renewed with an effective date on or after 12:01 a.m. January 1, 2000, the following
changes will be made to the captioned Agreement: 

	a)
	Article VI—Reinsurance Premium and Ceding Commission will be deleted in its entirety and replaced by the following: 

        The
Company will cede to the Reinsurer its proportionate share of the net written premium on all policies written or renewed with an effective date on or after January 1, 2000,
plus its proportionate share of unearned premium reserve on policies in force at January 1, 2000, less ceding commission as set forth below. 

        The
Reinsurer will allow the Company a flat ceding commission of 32% based on the net written premium ceded. The commission shall be applied to the business written each calendar year
commencing at January 1 and ending December 31, inclusive of both days. The commission will include
taxes of all kinds, local board, assessments, and all other expenses and charges whatsoever based on the premium for business ceded under this Agreement. 

	b)
	The
last paragraph of Article VIII—Reports and Remittances is hereby amended to read as follows: 

        Monthly
reports are due within 30 days of the close of each month. Remittance of balances due either party shall be paid within 45 days of the close of the month being
accounted for. All remittances from Reinsurer shall be on a cash as received basis. 

	c)
	Article X—Offset and Security will be deleted in its entirety and replaced by the following: 

        Each
party hereto has and may exercise at any time the right to offset any amounts (whether on account of premium, commission, claims or losses, loss expense, salvage, or otherwise) due
from one party to the other under this agreement. The party asserting the right of offset may exercise this right, whether as assuming or ceding insurer or in both roles under this agreement. 

	d)
	Article XVII—Production Incentive is added: 

        The
Company shall allow the Reinsurer a production incentive equal to a percentage of the direct premium to this Agreement, less cancellations and return premiums, according to the
following schedule: 

	Applicable Agreement Year
 
	 	Percentage of Incentive

	2000	 	2.6
	2001	 	3.3
	2002	 	1.0
	2003	 	1.0
	2004 and Subsequent	 	0.0

        The
percentage is based on the premium written on National Casualty Company paper only. The calculation shall be made quarterly and balance due shall be paid
30 - 45 days following the end of the quarter. 

	e)
	Article XVIII—Access to Records is added: 

        All
parties associated with the agreement and the appropriate regulatory and insurance authorities shall have access to all records associated to the agreement during normal business
hours upon reasonable notice. 

Scottsdale Insurance Company 

        Signed
at Scottsdale, AZ on this 30th day of November, 2001. 

	

Signature:	

/s/  LORENZ C. LANG      
	
 	

Attest:	

/s/  CINDY L. BONNIN      

	Title:	Director of Reinsurance
	 	 	 

VETERINARY PET INSURANCE COMPANY 

        Signed
at Brea, CA on this 31st day of December, 2001. 

	

Signature:	

/s/  JACK L. STEPHENS      
	
 	

Attest:	

/s/  MARK BURKE      

	Title:	President
	 	 	 

 
 

ADDENDUM 2    
  

attaching
to and forming a part of

QUOTA SHARE REINSURANCE J-98-R1

BETWEEN 

SCOTTSDALE
INSURANCE COMPANY

(hereinafter called the "Company") 

and

VETERINARY
PET INSURANCE COMPANY

(hereinafter call the "Reinsurer") 

        It
is hereby mutually understood and agreed that, as respects business in force, written or renewed with an effective date on or after 12:01 a.m. January 1, 2001, the
following changes will be made to the captioned Agreement: 

	a)
	The
first paragraph of Article I—Coverage is hereby deleted and replaced by the following: 

        The
Company will cede to the Reinsurer and the Reinsurer will accept a 50% quota share participation in respect to all policies in force, written or renewed with an effective date on or
after January 1, 2001 produced by DVM Insurance Agency, Inc. 

	b)
	Article VI—Reinsurance Premium and Ceding Commission, previously amended by Addendum 1, will be amended by the
addition of a third paragraph: 

        The
Reinsurer will return to the Company its proportionate share of unearned premium reserve on policies in force at January 1, 2001, less ceding commission. The Company will then
cede to the Reinsurer, in accordance to the Coverage Article as amended by Addendum 2, its proportionate share of the unearned premium reserve, less ceding commission. 

        All
other terms and conditions of this agreement shall remain unchanged. 

SCOTTSDALE INSURANCE COMPANY 

        Signed
at Scottsdale, AZ on this 30th day of November, 2001. 

	

Signature:	

/s/  LORENZ C. LANG      
	
 	

Attest:	

/s/  CINDY L. BONIN      

	Title:	Director of Reinsurance
	 	 	 

VETERINARY PET INSURANCE COMPANY 

        Signed
at Brea, CA on this 31st day of December, 2001. 

	

Signature:	

/s/  JACK L. STEPHENS      
	
 	

Attest:	

/s/  MARK BURKE      

	Title:	President
	 	 	 

 
 

PROPOSED
  ADDENDUM 3    
  

attaching
to and forming a part of

QUOTA SHARE REINSURANCE J-98-R1

BETWEEN 

SCOTTSDALE
INSURANCE COMPANY

(hereinafter called the "Company") 

and

VETERINARY
PET INSURANCE COMPANY

(hereinafter call the "Reinsurer") 

        It
is hereby mutually understood and agreed that, as respects business in force, written or renewed with an effective date on or after 12:01 a.m. January 1, 2003, the
following changes will be made to the captioned Agreement: 

	a)
	The
first paragraph of Article I—Coverage previously amended by Addendum 2 is hereby amended: 

        The
Company will cede to the Reinsurer and the Reinsurer will accept an 80% quota share participation in respect to all policies in force, written or renewed with an effective date on or
after January 1, 2003 produced by DVM Insurance Agency, Inc. 

	b)
	The
first paragraph of Article II—Term and Cancellation will be amended as follows: 

        This
Agreement will apply to all losses on policies in force,written or renewed with an effective date on or after 12:01 a.m. January 1, 2003, 12:01 a.m. standard
time (as defined in the Company's original policies). 

	c)
	Article VI—Reinsurance Premium and Ceding Commission previously amended by Addenda 1 & 2 will be replaced by
the following: 

        The
Company will cede to the Reinsurer its proportionate share of the net written premium on all policies written or renewed with an effective date on or after 12:01 a.m.
January 1, 2003, plus its proportionate share of unearned premium reserve on policies in force at 12:01 a.m. January 1, 2003, less ceding commission as set forth below. 

        The
Reinsurer will allow the Company a flat ceding commission of 33.5% based on the net written premium ceded. The commission shall be applied to the business written each calendar year
commencing at January 1 and ending December 31, inclusive of both days. The Company will be responsible to pay all premium taxes of all kinds, local board, assessments, and all other
expenses and charges whatsoever based on the premium for business ceded under this Agreement (the "Company's Taxes and Fees"). The parties agree that the ceding commission will not be subject to
adjustment until after December 31, 2005 unless prior to such date there is a change in the Company's Taxes and Fees, Material, for purposes of this Agreement, shall mean an increase in the
Company's Taxes and Fees greater than or equal to two-tenths of one percent. 

	d)
	Article XVII—Production Incentive added by Addendum 1 is hereby deleted in its entirety. 

        All
other terms and conditions of this agreement shall remain unchanged. 

SCOTTSDALE INSURANCE COMPANY 

        Signed
at Brea, California on this        day of                  , 2002. 

	

Signature:	

    
	
 	

Attest:	

    

	Title:	    
	 	 	 

VETERINARY PET INSURANCE COMPANY 

Signed
at Scottsdale, Arizona on this        day of                  , 2002. 

	

Signature:	

    
	
 	

Attest:	

    

QuickLinks

Exhibit 10.1

QUOTA SHARE REINSURANCE AGREEMENT (J-98-R1)

QUOTA SHARE REINSURANCE AGREEMENT (J-98-R1)

ARTICLE I

ARTICLE II

ARTICLE III

ARTICLE IV

ARTICLE V

ARTICLE VI

ARTICLE VII

ARTICLE VIII

ARTICLE IX

ARTICLE X

ARTICLE XI

ARTICLE XII

ARTICLE XIII

ARTICLE XIV

ARTICLE XV

ARTICLE XVI

ADDENDUM 1

ADDENDUM 2

PROPOSED ADDENDUM 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]