Document:

Employment Agreement between Borland Software & Brian Elloy

 EXHIBIT 10.36 
  
 February 23, 2004 
  
 Brian “Boz” Elloy 
 8 Cragmont Court 
 San Mateo, CA 94403 
  

	 	RE:	Revised Employment Offer 

  
 Dear Boz: 
  
 On behalf of Borland
Software Corporation (“Borland”), I am pleased to confirm in writing your assumption of the position of Senior Vice President of Software Products, which you assumed in August 2003. This letter sets out the terms of your employment as the
Senior Vice President of Software Products. 
  
 In consideration
for your service to Borland, you are being paid a base salary of $9,615.38 every two weeks (which equals $250,000 per year), less applicable taxes and other withholdings in accordance with Borland’s standard payroll practices. You are eligible
for the Incentive Compensation Program (ICP) specific to your position. In addition, you are eligible to participate in various Borland fringe benefit plans, including: Group Health Insurance, Flexible Spending Accounts, 401(k) Savings Plan,
Employee Stock Purchase Plan, Tuition Reimbursement and the vacation program. Borland reserves the right to modify employee benefit plans and policies, as it deems necessary. 
  
 Following the assumption of your new responsibilities, in November 2003, you were granted an option to purchase an
additional 50,000 shares of Borland common stock under Borland’s Stock Option Plans at an exercise price equal to the fair market value of that stock on your option grant date. Your option will vest over a period of four years, and will be
subject to the terms and conditions of the related Borland Stock Option Plan and related standard form of stock option agreement, which you will be required to sign as a condition of receiving the option. 
  
 Your employment with Borland is “at will”; it is for no specified
term, and may be terminated by you or Borland at any time, with or without cause or advance notice. Any contrary representations that may have been made to you are superceded by this offer. This is the full and complete agreement between you and
Borland on this term. Although your job duties, title, compensation and benefits, as well as Borland’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an
express written agreement signed by you and Borland’s General Counsel. 
  

 To ensure the timely and economical resolution of disputes that arise in connection with your employment
with Borland, you and Borland agree that any and all disputes, claims (including, but not limited to, any claims for compensation, benefits, stock or stock options, fraud or age, sex, race, disability or other discrimination or harassment), or
causes of action arising from or relating to the enforcement, breach, performance or interpretation of this Agreement, your employment, or the termination of your employment, shall be resolved to the fullest extent permitted by law by final, binding
and confidential arbitration, by a single arbitrator, in Santa Clara County, California, conducted by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) under the applicable JAMS employment rules. By agreeing to this arbitration
procedure, both you and Borland waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute
and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to
award any or all remedies that you or Borland would be entitled to seek in a court of law. Borland shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required if the dispute were decided in a court of law.
Nothing in this Agreement is intended to prevent either you or Borland from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, you and Borland each have the
right to resolve any issue or dispute over intellectual property rights by Court action instead of arbitration. 
  
 This agreement and the other agreements referred to above constitute the entire agreement between you and Borland regarding the terms and conditions of
your employment, and they supersede all prior negotiations, representations or agreements, whether oral or written, between you and Borland. This agreement may only be modified by a document signed by you and the General Counsel of Borland.

  

			
	 Sincerely,

	
	 Borland Software Corporation

		
	By:	 	/s/    TIMOTHY J. STEVENS
	 	 	

	 	 	 Timothy J. Stevens,
 Sr. Vice President and General Counsel

  
 I have read the
terms outlined above and confirm that it outlines the terms and conditions of my employment with Borland. 
  

					
			
	 Date: 2/24, 2004 
	 	 	 	/s/    BRIAN ELLOY
	 	 	 	 	

	 	 	 	 	 Brian ElloyExtension of the Open Tools License Agreement

 EXHIBIT 10.66 
  

			
	 Microsoft Corporation
	  	 Tel 425 882 8080

	 One Microsoft Way
	  	 Fax 425 936 7329

	 Redmond, WA 98052-6399
	  	 http://www.microsoft.com/

  

			
	 February 11, 2004
	  	 
	 	  	[GRAPHIC]
	 Patricia Montalvo Timm
	  	 
	 VP, Corporate Governance and
	  	 
	 Assistant Corporate Secretary
	  	 
	 Borland Software Corporation
	  	 
	 100 Enterprise Way
	  	 
	 Scotts Valley, CA 95066-3249
	  	 

  
 Re: Extension of the Microsoft
Corporation Open Tools License Agreement 
  
 Dear Patricia, 
  
 Microsoft Corporation (“Microsoft”) and Borland Software
Corporation (then Inprise Corporation) (“Borland”) entered into the Microsoft Corporation Open Tools License Agreement effective as of March 2, 1999 as amended on June 2, 1999 (“Agreement”). The Agreement is scheduled to expire
on March 2, 2004. 
  
 Pursuant to this letter agreement, Microsoft
and Borland agree to extend the term of the Agreement until May 2, 2004. Neither party will be obligated to make any payments to the other party as a result of this extension, and neither Microsoft nor Borland shall have any obligation to extend the
term of the Agreement beyond May 2, 2004. 
  
 Please signify
Borland’s agreement to the terms of this letter by countersigning where indicated below. 
  

	
	 Best Regards,

	
	/s/ David Treadwell
	

	 David Treadwell
 General Manager
 .NET Developer Platform

  

			
	 ACKNOWLEDGED AND AGREED TO BY BORLAND:

	
	/s/ Patricia Montalvo Timm
	

	By:	 	 
		
	 	 	 Patricia Montalvo Timm

	Name:	 	 
		
	 	 	 VP, Corporate Governance

	Title:	 	 
		
	 	 	 2/6/04

	Date:	 	 

  
 Microsoft Corporation is an equal opportunity employer.Form of Reinsurance between MONY and Centre Life

 EXHIBIT NO. 10.49 
  
 AGREEMENT made this 31st day of December, 1997 between The Mutual Life Insurance Company of New York (the “Company”) and Centre Life Reinsurance Limited (the “Reinsurer”). 
  
 WHEREAS, a reinsurance agreement (the “Original Agreement”) dated March 23, 1992, and amended December 31, 1992, was entered into
between the Company and Atlantic International Reinsurance Company, Ltd., London Life International Reinsurance Corporation and National Indemnity Company (together the “Original Reinsurers”) whereby the Original Reinsurers agreed to
reinsure a sixty percent (60%) quota share of the Company’s portfolio of individual disability income insurance policies under the terms and conditions more fully identified in the Original Agreement; and 
  
 WHEREAS, the Original Reinsurers were released and discharged from the obligations contained
in the Original Agreement by the Company and the Reinsurer agreed to perform and be bound by the terms of the Original Agreement pursuant to a Novation Agreement between the Company, the Original Reinsurers and the Reinsurer with an effective date
of December 31, 1997. 
  
 NOW, THEREFORE, in consideration of the mutual promises
contained herein, the parties agree as follows: 
  
 It is
understood and agreed that with effect from December 31, 1997 the Original Agreement is amended, restated and superseded in its entirety by the Reinsurance Agreement dated as of December 31, 1997 between the Company and the Reinsurer as follows:

 Reinsurance Agreement 
  
 (hereinafter referred to as the “Agreement”) 
  
 dated as of December 31, 1997 
  
 by and between 
  
 The Mutual Life Insurance Company of New York 
  
 of New York, New York 
  
 (hereinafter referred to as the “Company”) 
  
 And 
  
 Centre Life Reinsurance Limited 
  
 of Hamilton, Bermuda 
  
 (hereinafter referred to as the “Reinsurer”) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	ARTICLE I	  	REINSURED POLICIES	  	1
			
	ARTICLE II	  	TERRITORY	  	1
			
	ARTICLE III	  	COVERAGE	  	1
			
	ARTICLE IV	  	ULTIMATE NET LOSS	  	2
			
	ARTICLE V	  	TERMINATION	  	2
			
	ARTICLE VI	  	REINSURANCE PREMIUM	  	3
			
	ARTICLE VII	  	EXPENSE ALLOWANCES	  	4
			
	ARTICLE VIII	  	REINSURER’S EXPENSES	  	4
			
	ARTICLE IX	  	DIVIDENDS	  	6
			
	ARTICLE X	  	PROFIT SHARE	  	6
			
	ARTICLE XI	  	NON-PAYMENT OF PREMIUMS	  	8
			
	ARTICLE XII	  	COMMUTATION (RECAPTURE)	  	8
			
	ARTICLE XIII	  	SECURITY / RESERVES	  	8
			
	ARTICLE XIV	  	POLICY AND CLAIMS ADMINISTRATION	  	9
			
	ARTICLE XV	  	APPOINTMENT OF THIRD PARTY ADMINISTRATOR	  	9
			
	ARTICLE XVI	  	OFFSET	  	10
			
	ARTICLE XVII	  	NO ASSIGNMENT	  	10
			
	ARTICLE XVIII	  	REPORTS AND REMITTANCES	  	11
			
	ARTICLE XIX	  	GOVERNING LAW	  	13
			
	ARTICLE XX	  	ACCESS TO RECORDS	  	13
			
	ARTICLE XXI	  	NO THIRD PARTY RIGHTS	  	13
			
	ARTICLE XXII	  	AMENDMENTS AND ALTERATIONS	  	13
			
	ARTICLE XXIII	  	CURRENCY	  	14
			
	ARTICLE XXIV	  	INSOLVENCY	  	14
			
	ARTICLE XXV	  	CLAIM SETTLEMENTS	  	15
			
	ARTICLE XXVI	  	ARBITRATION	  	15
			
	ARTICLE XXVII	  	SERVICE OF SUIT	  	16
			
	ARTICLE XXVIII	  	TAXES	  	16
			
	ARTICLE XXIX	  	ERRORS AND OMISSIONS	  	17
			
	ARTICLE XXX	  	INTEGRATION	  	17

					
			
	ARTICLE XXXI	  	NO WAIVER	  	17
			
	ARTICLE XXXII	  	INSOLVENCY FUNDS EXCLUSION	  	17
			
	ARTICLE XXXIII	  	MISCELLANEOUS PROVISIONS	  	18
			
	ARTICLE XXXIV	  	DAC TAX	  	19
			
	ARTICLE XXXV	  	PROGRAM OF INTERNAL REPLACEMENT	  	19
			
	ARTICLE XXXVI	  	REINSURANCE	  	20
			
	ARTICLE XXXVII	  	WAR EXCLUSION	  	20

  
 SCHEDULES

  

							
				
	SCHEDULE A	  	—  	  	DESCRIPTION OF REINSURED POLICIES	  	22
				
	SCHEDULE B	  	—  	  	PREMIUM EXPENSE RATIO	  	28
				
	SCHEDULE C	  	—  	  	LETTER OF CREDIT REQUIREMENTS	  	29
				
	SCHEDULE D	  	—  	  	TRUST REQUIREMENTS	  	30
				
	SCHEDULE E	  	—  	  	INDEX OF DEFINED TERMS	  	32

 ARTICLE I 
 REINSURED POLICIES 
  
 This
Agreement shall cover all Policies written by the Company that meet the following conditions (collectively, hereinafter referred to as “Reinsured Policies”): 
  

	 	A)	were in force on January 1, 1997 (the “In Force Date”) or in force before the In Force Date and reinstated thereafter, or issued after the In Force Date and prior to
December 31, 1998, and 

  

	 	B)	are classified by the Company as U.S. Individual Disability Income business, such business being defined in New York Insurance Law Section 1113(a)(3)(ii) and which are included
among the policy forms listed in the attached Schedule A. 

  
 “Policies” or “Policy” shall include any insurance policy, reinstatement or renewal thereof, supplementary benefit and rider. All reinsurance for which the Reinsurer will be obligated by virtue of this Agreement shall be
subject to the same terms, conditions, waivers, modifications, alterations, and cancellations as contained in the Reinsured Policies. No voluntary material changes, if made on or after the In Force Date, in the terms and conditions in the Reinsured
Policies shall be covered hereunder without the prior written approval of such changes by the Reinsurer. This Agreement will cover Ultimate Net Loss arising from such Reinsured Policies as if the non-approved changes were not made. 
  
 If the Company’s liability under any of the Reinsured Policies is increased or decreased
because of a misstatement of age or sex or any other material fact, the Reinsurer’s liability will accordingly be increased or decreased. If a Reinsured Policy that was reduced, terminated, or lapsed subsequent to the Inception Date is
reinstated while this Agreement is in force, the reinsurance for such Reinsured Policy shall be reinstated automatically to the reinstated amount. The Company will pay to the Reinsurer all amounts received or charged by the Company in connection
with such reinstatement or change. 
  
 ARTICLE II

 TERRITORY 
  
 The territorial limits of this Agreement shall be identical to those of the Reinsured Policies. 
  
 ARTICLE III 
 COVERAGE 
  
 Subject to the terms, conditions and limits of
this Agreement, the Reinsurer shall indemnify the Company for all Ultimate Net Loss incurred by the Company under the Reinsured Policies and paid on or after 11:59 p.m. Eastern Standard Time on December 31, 1997 (the “Inception Date”).

  

 1 

 ARTICLE IV 
 ULTIMATE NET LOSS 
  
 “Ultimate
Net Loss” shall mean the sum of 
  

	 	(i)	the actual benefit payments or claim settlements paid by the Company on its net retained liability (net after deduction of reinsurance other than the reinsurance ceded under this
Agreement, whether collectible or not) after making deductions for all recoveries, subrogations and inuring reinsurance, whether or not collectible (excluding, in all events, attorneys’ fees and all other expenses incurred in conjunction with
the payment of benefits or losses), plus 

  

	 	(ii)	waived premiums, plus 

  

	 	(iii)	policyholder dividends paid or payable by the Company in accordance with Article IX, Dividends, of this Agreement. 

  
 Ultimate Net Loss shall not include any amount paid by the Company for any extra-contractual
obligations (including but not limited to punitive damages, bad faith damages or compensatory damages) which may arise from the acts or omissions of the Company in its conduct with its own insured or policyholder, the beneficiary or assignee of any
policy or any other person. Notwithstanding the foregoing, Ultimate Net Loss will include an equitable proportion of extra-contractual obligations where, and only where, the Reinsurer, Disability Management Services, Inc., or a Third Party
Administrator acting upon the direction of the Reinsurer, is an active party and directs, consents to, or ratifies the act, omission, or course of conduct that ultimately results in assessment of such extra-contractual obligations. Payment of
Ultimate Net Loss by the Reinsurer shall not, in and of itself, mean that the Reinsurer has been an active party or directed, consented to, or ratified the act, omission, or course of conduct that ultimately resulted in assessment of such
extra-contractual obligations. 
  
 All recoveries or payments received by the
Company subsequent to a benefit payment or claim settlement under this Agreement shall be applied as if recovered or received prior to the aforesaid settlement and all necessary adjustments shall be made by the parties hereto, provided that nothing
in this Article shall be construed to mean that losses under this Agreement are not recoverable until the Company’s loss has been ascertained. 
  
 ARTICLE V 
 TERMINATION

  
 The Reinsurer’s liability with respect to the Reinsured Policies will
terminate on the earlier of: 
  

	 	1)	the date the Reinsured Policies are recaptured in accordance with Article XII, Commutation (Recapture), and 

  

	 	2)	the date the Company’s liability with respect to the Reinsured Policies is extinguished. 

  

 2 

 ARTICLE VI 
 REINSURANCE PREMIUM 
  
 The Company
shall pay to the Reinsurer premiums (the “Reinsurance Premiums”) equal to the following: 
  

	 	1)	the Initial Premium (due and payable on the Inception Date), plus 

  

	 	2)	all Net Premiums received (or deemed received in the case of waived premiums) by the Company on or after the Inception Date in connection with the Reinsured Policies (payable to the
Reinsurer in accordance with Article XVIII, Reports and Remittances). 

  
 “Initial Premium” shall mean an amount equal to the sum of the following: 
  

	 	a)	the Company’s statutory reserves as of December 31, 1996 (equal to $343,054,000), less 

  

	 	b)	$38.5 million as of December 31, 1996 (the “Initial Expense Allowance”), plus 

  

	 	c)	the Market Value Adjustment (as defined below) as of December 31, 1996, plus 

  

	 	d)	100% of the Net Subject Premiums (as defined below) received by the Company on or after the In Force Date and prior to the Inception Date, less 

  

	 	e)	100% of the Ultimate Net Loss paid by the Company on or after the In Force Date and prior to the Inception Date, plus 

  

	 	f)	an investment credit, which shall be equal to {[a) less b) plus c)] multiplied by the Market Value Rate (as defined below)} plus {[d) less e)] multiplied by (the Market Value Rate
divided by two)}. 

  
 “Market Value Adjustment” shall mean
an amount equal to the Market Value Factor multiplied by $304,554,000 (being a) less b) above). 
  
 “Market Value Factor” shall mean an amount equal to {[1.065/(1+ the Market Value Rate)]12 - 1} 
  
 “Market Value Rate” shall mean an amount equal
to the yield on the United States Government Strip, cusip number 912833GD6 maturing on November 15, 2008 as quoted by the Bloomberg Financial Markets Information Service at the close of the day that the Initial Premium is paid by the Company to the
Reinsurer. 
  
 “Discount Rate” shall mean an amount equal to the Market
Value Rate less fifty (50) basis points. 
  
 “Net Subject Premiums”
shall mean, for the Reinsured Policies, Net Premiums less the Renewal Expense Allowances (as defined in Article VII, Expense Allowances). 
  
 “Net Premiums” shall mean, for the Reinsured Policies, direct and assumed premiums (including waived premiums on all claims regardless of when they were
incurred) less return premiums (not 
  

 3 

 including any payments to policyholders under a premium refund rider), less premiums for reinsurance which would inure to
the benefit of the Reinsurer under this Agreement, plus any expense allowances received by the Company under such other reinsurance. 
  
 ARTICLE VII 
 EXPENSE
ALLOWANCES 
  
 The Reinsurer shall pay to the Company or on behalf of the
Company additional expense allowances (the “Renewal Expense Allowances”) equal to: 
  

	 	i)	P(t) of direct renewal premiums and first-year commissions due to the Reinsurer according to the calculation in Schedule B attached hereto (the “Premium Related Expense
Allowance”), plus 

  

	 	ii)	such other amounts to reimburse the Company for the expenses it incurs in connection with the administration of the Reinsured Policies (including the administration of policyholder
dividends paid, if any, by the Company on Reinsured Policies) and the administration of Ultimate Net Loss arising under the Reinsured Policies (the “Administration Expense Allowance”). It is further agreed that the Administration Expense
Allowance may, by joint agreement of the Company and the Reinsurer, be paid directly to a Third Party Administrator appointed by the Company in accordance with Article XIV, Policy and Claims Administration. For the purpose of calculating Net Subject
Premiums only, these amounts shall be included in the calculation of the Administration Expense Allowance whether they are paid to the Company or directly to the Third Party Administrator on behalf of the Company. 

  
 P(t) shall mean the Premium Expense Ratio for calendar year “t” as shown in
Schedule B attached hereto. It is expressly agreed that the Premium Related Expense Allowances are deemed to reimburse the Company for any and all premium taxes, licenses, fees, commissions, and other comparable expenses incurred by the Company on
the Reinsured Policies. Except as included therein, the Reinsurer will not reimburse the Company for any other such expenses. 
  
 ARTICLE VIII 
 REINSURER’S
EXPENSES  
  
 The “Reinsurer’s Expenses” shall mean an
amount equal to the sum of: 
  

	 	1)	$7.5 million (the “Reinsurer’s Initial Margin”), plus 

  

	 	2)	an amount (the “1997 Reinsurer’s Margin”) equal to the product of 

  

	 	a)	60 basis points, multiplied by 

  

	 	b)	the sum of (i) the Average Agreement Loss Reserves in calendar year 1997 plus (ii) the Average Agreement Expense Reserves in calendar year 1997. 

  

 4 

	 	3)	a quarterly amount (the “Reinsurer’s Renewal Margin”) equal to the product of 

  

	 	a)	15 basis points, multiplied by 

  

	 	b)	the sum of (i) the Average Agreement Loss Reserves in that calendar quarter, plus (ii) the Average Agreement Expense Reserves in that calendar quarter. 

  
 It is expressly agreed that the Reinsurer’s Expenses are deemed to cover, inter alia,
the actual expenses incurred by the Reinsurer (excluding those included in the Expense Allowances) in policy administration, payment or settlement of benefits paid on the Reinsured Policies, or any other expenses incurred by the Reinsurer to
appropriately fulfill the Company’s obligations under the Reinsured Policies assumed by the Reinsurer under this Agreement; provided, however, that the Company shall be responsible to pay for the costs of Security in accordance with Article
XIII, Security/Reserves. 
  
 The “Agreement Loss Reserves,” as of any
date, shall mean an amount computed in a manner similar to that which would be used to calculate statutory reserves for the Reinsured Policies in the Company’s Statutory Annual Statement had this Agreement not been in force. 
  
 The “Agreement Expense Reserves,” as of any date, shall be equal to X% of the
Agreement Loss Reserves at that point in time, where X% shall be equal to: 
  

	 	•	4% if the Profit Share Date (as defined in Article X, Profit Share, of this Agreement) is prior to or including December 31, 2005; 

  

	 	•	3% if the Profit Share Date is after December 31, 2005 and prior to or including December 31, 2015; and 

  

	 	•	2% if the Profit Share Date is after December 31, 2015. 

  
 The “Average Agreement Loss Reserves,” for any period, shall mean an amount equal to (the sum of the Agreement Loss Reserves at the beginning of the period plus
the Agreement Loss Reserves at the end of the period) divided by two (2). 
  
 The
“Average Agreement Expense Reserves,” for any period, shall mean an amount equal to (the sum of the Agreement Expense Reserves at the beginning of the period plus the Agreement Expense Reserves at the end of the period) divided by two (2).

  

 5 

 ARTICLE IX 
 DIVIDENDS 
  
 Pursuant to the terms
and conditions of this Agreement, the Reinsurer shall reimburse the Company for dividends declared in the normal course of business on the Reinsured Policies; provided, however, that the Reinsurer shall not be required to reimburse the Company for
any dividend payments, credits granted, or any other amount or portion thereof paid or distributed solely in connection with any demutualization of the Company. 
  

ARTICLE X 
 PROFIT SHARE

  
 A notional profit account (the “Profit Account”) shall be
calculated by the Reinsurer at the Inception Date of this Agreement and maintained until all obligations of the Reinsurer hereunder have been satisfied or discharged in full. 
  
 The Profit Account balance as of any date shall be defined as: 
  

	 	1)	the Initial Premium, plus 

  

	 	2)	100% of the Net Subject Premiums received by the Reinsurer on or after the Inception Date, less 

  

	 	3)	100% of cumulative Ultimate Net Loss paid by the Reinsurer on or after the Inception Date, plus 

  

	 	4)	(a) dividends in excess of an aggregate amount (since the Inception Date) of $4 million paid by the Reinsurer included in item 3 above, plus (b) 50% of the first $4 million of
dividends (since the Inception Date) paid by the Reinsurer included in item 3 above, less 

  

	 	5)	the Reinsurer’s Expenses, less 

  

	 	6)	the Agreement Loss Reserves as of that date, less 

  

	 	7)	the Agreement Expense Reserves as of that date. 

  
 All actual cash payments in items 1) through 4) are credited to or debited from the Profit Account at the exact time when such amounts are received or paid by the
Reinsurer, as the case may be. With respect to item 5), the Reinsurer’s Initial Margin is deemed to be paid on the In Force Date, the 1997 Reinsurer’s Margin is deemed to be paid on July 1, 1997, and the Reinsurer’s Renewal Margins
are deemed to be paid on the 15th day of the middle month of each calendar quarter. Items 6) and 7) are deemed to be
“paid” on the date in question. 
  
 Each payment or deemed payment of
items 1) through 7) above shall be discounted to the In Force Date at the Discount Rate. The total of such discounted amounts shall be defined as the “Profit Amount.” 
  

 6 

 The Company’s share of the Profit Amount (the “Company’s Share of the Profit Amount”) shall be:

  

					
	 First
	 	$45 million:	 	0%
	 Next
	 	$32 million:	 	25%
	 Excess of
	 	$77.0 million:	 	50%

  
 As of any Profit Share Date, the
“Eligible Profit Amount” shall mean an amount equal to the Company’s Share of the Profit Amount times the following percentages: 
  

			
	 First Profit Share Date:
	 	25%
	 Next Profit Share Date:
	 	35%
	 Next Profit Share Date:
	 	45%
	 Next Profit Share Date:
	 	55%
	 Next Profit Share Date:
	 	65%
	 Next Profit Share Date:
	 	75%
	 Next Profit Share Date:
	 	85%
	 Next Profit Share Date
And thereafter:
	 	100%

  
 The first Profit Share Date shall be
December 31, 2003. The subsequent Profit Share Dates shall be each December 31 thereafter. 
  
 The “Profit Share Amount” shall mean an amount equal to: 
  

	 	A)	the Eligible Profit Amount plus interest at the Discount Rate accrued from the In Force Date to the Profit Share Date, less 

  

	 	B)	any policyholder dividends paid or payable by the Company in excess of an aggregate amount (since the Inception Date) of $4 million plus interest at the Discount Rate accrued from
the date when such amounts are paid by the Reinsurer to the Profit Share Date, less 

  

	 	C)	50% of the first $4 million of any policyholder dividends paid or payable by the Company (since the Inception Date) plus interest at the Discount Rate accrued from the date when
such amounts are paid by the Reinsurer to the Profit Share Date, less 

  

	 	D)	any Profit Share Amount(s) previously paid by the Reinsurer to the Company plus interest at the Discount Rate accrued from the date(s) of such payment(s) to the Profit Share Date in
question. 

  
 The Profit Share Amount shall be paid by the Reinsurer
to the Company in accordance with Article XVIII, Reports and Remittances. 
  

 7 

 ARTICLE XI 
 NON-PAYMENT OF PREMIUMS 
  
 In the
event that the Company fails to pay a Reinsurance Premium within fifteen (15) days of the date such premium is due, the Reinsurer shall notify the Company in writing via registered or certified mail of the overdue premium. In the event that the
Company does not remit the overdue premium to the Reinsurer within thirty (30) days of receiving such notification from the Reinsurer, the Reinsurer shall have the right to immediately cancel this Agreement by mailing the Company a written notice of
cancellation, and the Reinsurer’s remaining liability, notwithstanding any provision to the contrary contained herein, shall be immediately reduced to an amount equal to the greater of zero ($0) and the Profit Share Amount. The mailing of the
Reinsurer’s cancellation notice shall be sufficient notice and the effective date of cancellation shall be the date the notice of cancellation was posted (the “Cancellation Date”). 
  
 ARTICLE XII 
 COMMUTATION (RECAPTURE) 
  
 By mutual agreement, the Company and the Reinsurer may commute this Agreement at any December 31, beginning December 31, 2007. In the event of such commutation, the Reinsurer’s sole liability shall be to pay to
the Company an amount to be mutually agreed by the Company and the Reinsurer. If the Company and the Reinsurer cannot mutually agree on such amount, this Agreement will not be commuted. Commutation by the Company and the payment of the agreed amount
by the Reinsurer shall constitute a complete and final release of the Reinsurer in respect of any and all known and unknown obligations or liability of any nature to the Company under or related to this Agreement. Upon commutation, any amounts due
shall be payable by the Reinsurer to the Company within 30 days following the effective date of commutation. 
  
 ARTICLE XIII 
 SECURITY/RESERVES 
  
 The Reinsurer shall establish and maintain adequate reserves with respect to the Reinsured
Policies as are necessary to enable the Company to take full credit for the reinsurance provided by this Agreement on its statutory balance sheet filed with the insurance departments of all states in which the Company files its annual statement,
including, but not limited to, establishing and maintaining reserves to enable the Company to comply with § 125.5(b) of the New York Insurance Regulations. 
  

The Reinsurer agrees to provide the Company with either an irrevocable letter of credit and/or trust fund issued by a mutually agreed bank, of which the Company shall
be the beneficiary which shall secure in full all liabilities of the Reinsurer to the Company with respect to this Agreement as shown on the reports required under Article XVIII, Reports and Remittances. The Reinsurer shall have the choice, at its
sole discretion, of the type of security so provided. The specific requirements of any letter of credit or trust fund are set forth in Schedule C and D, respectively attached hereto. 
  
 Any such letter of credit or trust fund shall be established under the laws of the state of New York, as appropriate, and shall meet all
requirements of the state regulatory authorities 
  

 8 

 responsible for the Company so as to allow the Company to take full statutory credit for the reinsurance herein.

  
 The Company shall be responsible for all reasonable and customary bank charges
associated with issuing and providing the letter of credit or administering and acting as trustee for a trust fund. 
  
 ARTICLE XIV 
 POLICY AND CLAIMS ADMINISTRATION 
  
 The Company shall administer the Reinsured Policies, perform all accounting procedures and
settle all claims arising under the Reinsured Policies. The Reinsurer agrees, the foregoing notwithstanding, that the Company may hire, appoint or otherwise delegate such duties to a third party administrator (the “Third Party
Administrator”) acceptable to the Reinsurer, such acceptance shall not be unreasonably withheld. In the event that a replacement Third Party Administrator needs to be appointed, the Reinsurer shall take all reasonable steps to assist the
Company in identifying and appointing such replacement. 
  
 The Company, directly
or through the Third Party Administrator, shall maintain its underwriting and accounting (including the determination of dividends payable under the Reinsured Policies) procedures in accordance with the Company’s practices in place on the
Inception Date and its claims handling procedures and practices in accordance with the customary and prevailing standards accepted by professional claims management administrators and personnel with respect to all claims by claimants. Except as
required by changes in applicable laws and regulations, the Company agrees, directly or through the Third Party Administrator, not to change its underwriting, accounting or claims handling procedures and practices in any manner from those in effect
at the inception of this Agreement that would materially adversely affect this Agreement or the obligations of the Reinsurer hereunder unless the Company has received the prior written approval of the Reinsurer to such changes; provided,
however, that in no event shall a breach of this covenant by the Company or the Third Party Administrator give the Reinsurer the right to terminate this Agreement. 
  
 ARTICLE XV 
 APPOINTMENT OF THIRD PARTY ADMINISTRATOR 
  
 As of the
inception of this Agreement, the Company has appointed Disability Management Services, Inc. (“DMS”) with its principal business address at 1391 Main Street, Springfield, Massachusetts as the Third Party Administrator and the Reinsurer has
consented to such appointment. 
  

 9 

 So long as DMS is the Third Party Administrator, the Company shall not be responsible for the following duties or the
consequences of the actions described herein: 
  

	 	1)	late payment charges or submission of reports in accordance with the provisions of Article XVIII, Reports and Remittances, of this Agreement; and 

  

	 	2)	non-payment of premiums in accordance with the provisions of Article XI, Non-Payment of Premiums, of this Agreement, so long as the Company agrees that DMS shall remit premiums
directly to the Reinsurer. 

  
 The Company expressly agrees that the
Reinsurer may pay DMS its fees directly. 
  
 If the Company is unsatisfied with
the performance of DMS, the Company will notify the Reinsurer in writing as soon as possible. The Reinsurer will use its reasonable best efforts to remedy the situation. If, however, the Company in its reasonable determination concludes that DMS
should be removed, it will be free to remove DMS, and the Reinsurer shall reimburse the Company for damages caused by such removal in an amount to be mutually agreed upon by the Reinsurer and the Company. In addition, the Reinsurer agrees that the
Company shall not be responsible for the duties set forth in item 1) above until such time as an acceptable replacement for DMS is appointed or the Company reassumes such duties. The Company shall undertake all reasonable steps to find an acceptable
replacement as soon as possible. 
  
 ARTICLE XVI 

OFFSET 
  
 Any debts or credits, matured or unmatured, liquidated or unliquidated, regardless of when they arose or were incurred, in favor of or against either the Company or the
Reinsurer with respect to this Agreement are deemed mutual debts or credits, as the case may be, and shall be set off, and only the net balance shall be allowed or paid. 
  
 This provision shall not be affected by the insolvency of either party to this Agreement. 
  
 ARTICLE XVII 
 NO ASSIGNMENT 
  
 This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, assigns and legal representatives. Neither this Agreement, nor any right hereunder, may be assigned by any party (except by
the Reinsurer to a member of the Zurich Group with equal or higher claims paying ratings as that of the Reinsurer provided that, the guarantee of Centre Reinsurance Holdings Limited remains in effect) without the written consent of the other
party hereto. 
  

 10 

 ARTICLE XVIII 
 REPORTS AND REMITTANCES 
  

	1.	Net Premiums to be paid by the Company to the Reinsurer shall be due and payable no later than thirty (30) days after the end of each calendar month. 

  

	2.	All Ultimate Net Loss Payments under this Agreement shall be settled by the Company through a revolving fund (the “Claims Revolving Fund”) provided by the Reinsurer, which
on the Inception Date of this Agreement shall be an amount to be mutually agreed and from which all Ultimate Net Loss Payments shall be paid on a quarterly basis. The amount of the Claims Revolving Fund shall be determined from time to time by the
parties and shall be adjusted based on the average Ultimate Net Loss Payments paid through the Claims Revolving Fund during the preceding two quarters. The amount in the Claims Revolving Fund shall be maintained at the agreed level and any payments
made shall be restored to the Claims Revolving Fund by the Company withholding from the quarterly remittance of Net Premiums to the Reinsured at the end of each quarter, the amount by which the agreed amount exceeds the actual amount in the Claims
Revolving Fund at the end of each quarter. In the event that the premiums due the Reinsurer are insufficient to restore the Claims Revolving Fund, the Reinsurer shall remit by wire transfer to the Claims Revolving Fund the amount of any deficiency.

  
 In the event of a large loss or series of
losses, due to be paid by the Company, and due to be paid by the Reinsurer during the following quarter(s) and the amount in the Claims Revolving Fund is insufficient, the Company may request and the Reinsurer shall provide payment by an agreed
settlement separate from the quarterly account. 
  
 The Company
shall credit the Reinsurer quarterly with the interest earned on the Claims Revolving Fund which shall be invested in short term instruments and such interest shall be included in the account. 
  

	3.	The Renewal Expense Allowance to be paid by the Reinsurer to the Company shall be due and payable forty-five (45) days after the end of each calendar month.

  

	4.	The Profit Share Amount to be paid by the Reinsurer to the Company shall be due and payable thirty (30) days after the later of (i) each Profit Share Date or (ii) the date that the
Profit Share Amount can be calculated. 

  

	5.	Any payments to either party received more than fifteen (15) days after the date due shall be deemed late payments. Any late payments by either party shall accrue interest at a rate
equal to the greater of 1% per month, compounded semi-annually or the Yield on the one year United States Treasury Bill existent on each January 1 plus 250 basis points (such interest being a “Late Fee”). 

  

 11 

	6.	A report shall be provided by the Company to the Reinsurer on the Inception Date providing the information necessary to calculate the Initial Premium, as determined in accordance
with Article VI, Reinsurance Premium (the “Initial Report”). 

  
 If a Third Party Administrator has been appointed by the Company, the obligation to provide the reports in paragraphs 7,8,9 and 12 shall be the obligation of such Third Party Administrator and not the Company. 
  

	7.	Within thirty (30) days of the end of each calendar month the Company shall supply the Reinsurer with a report (the “Monthly Report”) that shall provide the following data
for the monthly period and cumulatively from the In Force Date to the end of the calendar month for such Monthly Report: 

  

	 	a)	Net Premiums received by the Company; 

  

	 	b)	the Company’s share of the Administrative Expense Allowance; 

  

	 	c)	Ultimate Net Loss paid by the Company; and 

  

	 	d)	the Agreement Loss Reserves. 

  

	8.	Within forty-five (45) days after the end of each calendar year, the Company shall supply the Reinsurer with a report (the “Annual Report”) that shall provide data, as
respects the Reinsured Policies, in detail sufficient for the Reinsurer to prepare its annual financial statements and for the Reinsurer’s actuary to sign an statement of actuarial opinion with respect to the reserves carried in such financial
statements. 

  

	9.	The Company shall furnish to the Reinsurer within fifteen (15) days prior to the close of the calendar quarter a reasonable estimate of the Reinsurer’s obligations under this
Agreement as of such date in order for the Reinsurer to determine the amount of security to be provided in accordance with Article XIII, Security/Reserves. 

  

	10.	The Reinsurer shall furnish to the Company within thirty (30) days after the end of each calendar year a report indicating the calculation of the Profit Share Amount.

  

	11.	In preparing all reports required in this Agreement, including, without limitation, the Initial Report, the Company or the Reinsurer, as applicable, shall use its best efforts to
supply the actual data. If the actual data cannot be supplied with the appropriate report, the Company or the Reinsurer, as applicable, shall produce best estimates and make any required payments based on such estimates Amended reports based on
actual data shall be provided by the Company or the Reinsurer, as applicable, no more than ten (10) business days after the actual data becomes available, and any required payments based on such actual data shall be made by the appropriate part so
that the parties are placed in the same economic position they would have been if the payments had been based on the actual data in the first instance. 

  

 12 

	12.	The Company shall also periodically update and furnish to the Reinsurer such other reports or information as may reasonably be required by the Reinsurer and reasonably available to
the Company. 

  
 ARTICLE XIX 
 GOVERNING LAW 
  
 This Agreement shall be interpreted and governed by the laws of the State of New York without regard to its rules with respect to conflicts of law. 
  
 ARTICLE XX 
 ACCESS TO RECORDS 
  
 The Reinsurer or its duly appointed representatives shall have free access to the books, records and papers of the Company, the Third Party Administrator, if any, or its agents at all reasonable times during the continuance of this
Agreement or any liability hereunder, for the purpose of obtaining information concerning this Agreement or the subject matter thereof. 
  
 The Reinsurer shall use its reasonable best efforts to cause the Third Party Administrator to provide to the Company or its duly appointed representatives free access to
the books, records and papers of any Third Party Administrator at all reasonable times during the continuance of this Agreement or any liability hereunder, for the purpose of obtaining information concerning this Agreement or the subject matter
thereof. 
  
 ARTICLE XXI 
 NO THIRD PARTY RIGHTS 
  
 This Agreement is solely between the Company and the Reinsurer, and in no instance shall any other party have any rights under this Agreement except as expressly provided
otherwise in Article XXIV, Insolvency. 
  
 ARTICLE XXII

 AMENDMENTS AND ALTERATIONS 
  
 This Agreement may be changed, altered or amended as the parties may agree, provided such change, alteration or amendment is evidenced in writing executed by the Company
and the Reinsurer. If the New York State Insurance Department (the “Department”) raises an objection to any provision of this Agreement, which will lead it to refuse to approve the Agreement, the parties shall use their best efforts to
agree upon an alternative provision acceptable to the Department, with the intent to maintain the relevant economics of the parties hereto. 
  

 13 

 ARTICLE XXIII 
 CURRENCY 
  
 Whenever the word
“Dollars” or the “$” sign appear in this Agreement, they shall be construed to mean United States Dollars, and all transactions under this Agreement shall be in United States Dollars. 
  
 ARTICLE XXIV 
 INSOLVENCY 
  
 In the event of the insolvency of the Company all reinsurance made, ceded, renewed or otherwise becoming effective under this Agreement shall be payable by the Reinsurer directly to the Company or to its liquidator, receiver, or statutory
successor on the basis of the liability of the Company under the contract or contracts reinsured without diminution because of the insolvency of the Company. It is understood, however, that in the event of the insolvency of the Company, the
liquidator or receiver or statutory successor of the insolvent Company shall give written notice of the pendency of a claim against the insolvent Company on the policy reinsured within a reasonable time after such claim is filed in the insolvency
proceeding, and that during the pendency of such claim the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated any defense or defenses which it may deem available to the
Company or its liquidator or receiver or statutory successor. 
  
 It is agreed,
however, that the liquidator or receiver or statutory successor of the insolvent Company shall give written notice to the Reinsurer of the pendency of a claim against the insolvent Company on the Reinsured Policies within a reasonable time after
such claim is filed in the insolvency proceeding and that during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding when such claim is to be adjudicated, any defense or defenses
which it may deem available to the Company or its liquidator or receiver or statutory successor. The expense thus incurred by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as part of the expense of
liquidation to the extent of a proportionate share of the benefit which may accrue to the Company solely as a result of the defense undertaken by the Reinsurer. 
  

When two or more reinsurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in
accordance with the terms of this Agreement as though such expense had been incurred by the insolvent Company. Should any party hereto be placed in rehabilitation or liquidation or should a rehabilitator, liquidator, receiver, conservator or other
person or entity of similar capacity be appointed as respects such party, all amounts due any of the parties hereto whether by reason of premiums, losses or otherwise under this Agreement shall at all times be subject to the right of offset at any
time and from time to time, and upon the exercise of same, only the net balance shall be due and payable in accordance with Section 7427 of the Insurance Law of the State of New York. 
  

 14 

 ARTICLE XXV 
 CLAIM SETTLEMENTS 
  
 All benefit
payments or claim settlements made by the Company, directly or through the Third Party Administrator, if any, shall be binding upon the Reinsurer, provided, however, that such benefit payments or claim settlements are within the terms, conditions
and limitations of the Reinsured Policies and within the terms, conditions and limitations of this Agreement. 
  
 ARTICLE XXVI 
 ARBITRATION 
  
 It is the intention of the parties that disputes arising out of the provisions of this
Agreement or concerning its interpretation or validity, and whether arising before or after termination of this Agreement, be settled by negotiation between the parties. If a dispute has not been settled through negotiation, both parties agree to
try in good faith to settle such dispute by non-binding mediation before resorting to arbitration. 
  
 Any dispute not resolved under the above paragraph shall be submitted for decision to a panel of three arbitrators. Notice requesting arbitration must be in writing and sent certified or registered mail, return
receipt requested. One arbitrator shall be chosen by each party and the two arbitrators shall, before instituting the hearing, choose an impartial third arbitrator (the “Umpire”) who shall preside at the hearing. If either party fails to
appoint its arbitrator within thirty (30) days after being requested to do so by the other party, the latter, after ten (10) days notice by certified or registered mail of its intention to do so, may appoint the second arbitrator. If the two
arbitrators are unable to agree upon the Umpire within thirty (30) days of their appointment, the two arbitrators shall request the United States Federal Court for the Southern District of New York to appoint an Umpire with those qualifications, or
if the Federal Court declines to act, the State Court having general jurisdiction in such area. The Umpire shall promptly notify in writing all parties to the arbitration of his selection. Unless the parties otherwise agree all arbitrators shall be
disinterested active or former executive officers of insurance or reinsurance companies or Underwriters at Lloyd’s, London. 
  
 Within thirty (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. The panel shall be relieved of all judicial formality and shall not be bound by the strict rules of procedure and evidence. Unless the panel agrees otherwise, arbitration shall take place in New York, New York, but the venue may be
changed when deemed by the panel to be in the best interest of the arbitration proceeding. Insofar as the arbitration panel looks to substantive law, it shall consider the law of the State of New York. 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 but shall not be empowered to award any punitive or exemplary damages. To the extent, and only to the extent, that the
provisions of this Agreement are ambiguous or unclear, the panel shall make its decision considering the custom and practice of the applicable insurance and reinsurance business. The panel shall render its decision within sixty (60) days following
the termination of hearings, which decision shall be in writing, stating the reasons thereof. 
  

 15 

 Judgement upon the award may be entered in any court having jurisdiction thereof. Each party shall bear the expense of
its own arbitrator and shall jointly and equally bear with other party the cost of the third arbitrator. The remaining costs of the arbitration shall be allocated by the panel. The panel may, at its discretion, award such further costs and expenses
as it considers appropriate, including but not limited to attorneys fees, to the extent permitted by law. 
  
 ARTICLE XXVII 
 SERVICE OF SUIT 
  
 It is agreed that in the event of the failure of the Reinsurer to pay any amount claimed to
be due hereunder or to perform any other obligation under the Agreement, the Reinsurer, at the request of the Company, will 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 the Reinsurer’s rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case
to another court as permitted by the laws of the United States or of any state in the United States. It is further agreed that service of process in such suit may be made upon Willkie Farr and Gallagher, One Citicorp Center, 153 East 53rd Street, 46th Floor, New York, New York, 10022, 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 are authorized and
directed to accept service of process on behalf of the Reinsurer in any such suit and/or upon the request of the Company to give a written undertaking to the Company that they will enter a general appearance upon the Reinsurer’s behalf in the
event such a suit shall be instituted. Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Reinsurer hereby designates the Superintendent, Commissioner or Director of
Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf
of the Company or any beneficiary hereunder arising out of this Agreement of reinsurance, 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 XXVIII 
 TAXES 
  
 Other
than as specified herein, the Company shall pay all taxes of any nature associated with this Agreement and undertakes not to claim any deduction 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 or the District of Columbia. Provided, however, that this Article shall not impose any liability on the Company for any income, capital gains, profits or other similar taxes payable by the Reinsurer in
respect of its operations or this Agreement. 
  

 16 

 ARTICLE XXIX 
 ERRORS AND OMISSIONS 
  
 If any
delay, omission, error or failure to pay amounts due or to perform any other act required by this Agreement is unintentional and caused by misunderstanding or oversight, the Company and the Reinsurer will adjust the situation to what it would have
been had the misunderstanding or oversight not occurred. The party first discovering such misunderstanding or oversight, or an act resulting from such misunderstanding or oversight, will notify the other party in writing promptly upon discovery
thereof, and the parties shall act to correct such misunderstanding or oversight within twenty (20) business days of such other party’s receipt of such notice. However, this Article shall not be construed as a waiver by either party of its
right to enforce strictly the terms of this Agreement. 
  
 ARTICLE XXX 
 INTEGRATION 
  
 This Agreement and attached schedules constitute the entire agreement between the parties hereto relating to the subject matter hereof and
supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no general or specific warranties, representations or other agreements by or among the parties
in connection with the entering into of this Agreement or the subject matter hereof except as specifically set forth herein. 
  
 ARTICLE XXXI 
 NO WAIVER

  
 No consent or waiver, express or implied, by any party to or of any breach
or default by any other party in the performance by such other party of its obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance of obligations hereunder by such other
party hereunder. Failure on the part of any party to complain of any act or failure to act of any other party or to declare any other party in default, irrespective of how long such failure continues, shall not constitute a waiver by such first
party of its rights hereunder. 
  
 ARTICLE XXXII 

INSOLVENCY FUNDS EXCLUSION 
  
 This Agreement excludes all liability arising by contract, operation of law, or otherwise from the Company’s participation or membership, whether voluntary or
involuntary in any Insolvency Fund. For the purpose of this Agreement “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 Company of part or all of any claim, debt, charge, fee or other obligation of an insurer or reinsurer, 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. 
  

 17 

 ARTICLE XXXIII 
 MISCELLANEOUS PROVISIONS 
  
 Headings used herein are not a part of this Agreement and shall not affect the terms hereof. The attached Schedules A, B, C, D and E are a part of this Agreement. 
  
 This Agreement may be executed by the parties hereto in any number of counterparts, and by each of the parties hereto in separate
counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 All notices and communications hereunder shall be in writing and shall become effective when
received. Any written notice shall be by either certified or registered mail, return receipt requested, or overnight delivery service (providing for delivery receipt) or delivered by hand. All notices or communications under this Agreement shall be
addressed as follows: 
  
 If to the Company: 
  
 The Mutual Life Insurance Company of New York 
 1740 Broadway 
 New York, NY 10019 
  
 Attention: Chief
Actuary 
  
 with a copy to: 
  
 The Mutual Life Insurance Company of New York 
 1740 Broadway 
 New York, NY 10019 
  
 Attention: General
Counsel 
  
 If to the Reinsurer: 
  
 Centre Life Reinsurance Limited 
 Cumberland House 
 One Victoria Street 
 Hamilton, HM 11 
 Bermuda 
  
 Attention: President 
  
  

 18 

 ARTICLE XXXIV 
 DAC TAX 
  
 The Company and the
Reinsurer hereby agree to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulation issued December 1992, under Section 848 of the Internal Revenue Code of 1986, as amended (the “Code”). This election shall be effective
for 1997 and for all subsequent taxable years for which this Agreement remains in effect: 
  

	1.	The term “party” will refer to either the Company or the Reinsurer as appropriate. 

  

	2.	The terms used in this Article are defined by reference to Regulation 1.848-2 in effect December 1992. 

  

	3.	The party with the net positive consideration for this Agreement for each taxable year will capitalize specified policy acquisition expenses with respect to this Agreement without
regard to the general deductions limitation of Section 848(c)(1) of the Code. 

  

	4.	Both parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year to ensure consistency or as otherwise required by the
Internal Revenue Service. 

  

	5.	The Reinsurer will submit a schedule to the Company by April 1, of each year of its calculation of the net consideration for the preceding calendar year. This schedule of
calculations will be accompanied by a statement stating that the Reinsurer will report such net consideration in its tax return for the preceding calendar year. 

  

	6.	The Company may contest such calculation by providing an alternative calculation to the Reinsurer by May 1 of the year following the end of the taxable year. If the Company does not
notify the Reinsurer by May 1, the net considerations reported in the respective tax returns will be the value as defined in item 5 above. 

  

	7.	If the Company contests the Reinsurer calculation of the net consideration, the parties will act in good faith to reach an agreement on the correct amount within thirty (30) days of
the date the Company submits its alternative calculation. If the Company and the Reinsurer reach agreement on an amount of the net consideration, each party shall report such amount in their respective tax returns for the previous calendar year.

  
 ARTICLE XXXV 
 PROGRAM OF INTERNAL REPLACEMENT 
  
 Should the Company, its affiliates, successors or assigns, initiate a Program of Internal Replacement, as defined below, that would include any of the Reinsured Policies
hereunder, the Company will immediately notify the Reinsurer. For each Reinsured Policy hereunder that has been replaced under a Program of Internal Replacement, the Reinsurer shall have the option, at its sole discretion, of either treating the
Reinsured Policies as recaptured or continuing reinsurance on the new policy under this Agreement. 
  
 The term “Program of Internal Replacement” shall mean any program offered to a class of policy owners in which a policy is exchanged for another policy, not reinsured under this Agreement, which is written
by the Company, its affiliates, successors or assigns. For purposes of this paragraph, a Program of Internal Replacement includes new policies made or issued either: 
  

	 	(a)	in compliance with the terms of the original policy or 

  

	 	(b)	without the same new underwriting information that the Company would obtain in the absence of the original policy, without a suicide exclusion period or contestable period of equal
duration as those contained in new issues by the Company, or without the payment of the same commissions in the first policy year that the Company would have paid in the absence of the original policy. 

  

 19 

 ARTICLE XXXVI 
 REINSURANCE 
  
 Subsequent to the
Inception Date, the Company shall not change, alter or amend any reinsurance arrangements that were in place on the Inception Date with respect to the Reinsured Policies without the prior written consent of the Reinsurer provided, however that the
Company shall be permitted to make such changes or amendments which would not increase the financial exposure or liability of the Reinsurer under this Agreement, without obtaining the prior written consent of the Reinsurer. 
  
 Notwithstanding the foregoing, subsequent to the Inception Date, the Company shall not enter
into any reinsurance arrangements or commute any reinsurance arrangements that were in place on the Inception Date with respect to the Reinsured Policies without the prior written consent of the Reinsurer. 
  
 ARTICLE XXXVII 
 WAR EXCLUSION 
  
 No liability shall attach hereto in respect of any Ultimate Net Loss 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. 
  
 Nevertheless, this Article
shall not be construed to apply to Ultimate Net Loss 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. 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, in duplicate, 
  
 Executed this
             day of             , 1997 
  

			
	 The Mutual Life Insurance Company of New York

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 Executed this
             day of             , 1997 
  

			
	 Centre Life Reinsurance Limited

		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 21

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