Document:

exv4w52

 

Exhibit 4.52

TRANSACTION AGREEMENT

          This Transaction Agreement dated as of May 9, 2007 (the “Agreement”) is entered into by and
between SCOR S.A., a société anonyme organized and existing under the laws of the French Republic
(“SCOR” or the “Offeror”), and Converium Holding AG, an Aktiengesellschaft organized and existing
under the laws of Switzerland (“Converium” or the “Company” and, together with the Offeror, the
“Parties”). Capitalized terms not expressly defined herein shall have the meaning ascribed to them
in the Offer Prospectus (as defined below).

     WHEREAS, on April 5, 2007, the Offeror has published a public tender offer in Switzerland for
all the publicly held registered shares with a nominal value of CHF 5 each of Converium published
on April 5, 2007 (the “Offer”, the prospectus relating to the Offer being referred to as the “Offer
Prospectus”);

     WHEREAS, the Parties firmly believe that relations based on trust, mutual understanding and
respect are an essential element in the reinsurance industry;

     WHEREAS, the Offeror has agreed to modify the Offer pursuant to the terms set forth herein
(the “Modified Offer”) and to take certain other actions as set forth below;

     WHEREAS, the board of Directors of the Company (the “Company Board”) has agreed to recommend
and support acceptance of the Modified Offer and to take certain other actions as set forth below;

     NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and
agreements set forth herein, intending to be legally bound hereby, the Parties hereby agree as
follows:

ARTICLE I

MODIFIED OFFER

     Section 1.1 Offer Price. Subject to the terms and conditions set forth herein and in
the Offer Prospectus, SCOR hereby agrees (i) to increase the Offer Price, for each Converium Share
tendered, to (a) 0.5 New SCOR Shares with a nominal value of EUR 7.8769723 each and (b) CHF 5.50 in
cash and (ii) not to reduce the Offer Price by the proposed gross dividend of CHF 0.20 per
Converium Share. The other provisions of Section B.3 of the Offer Prospectus shall remain
unchanged.

     Section 1.2 Other Terms and Conditions of Modified Offer. The other terms and
conditions of the Offer, as set forth in the Offer Prospectus, shall remain unchanged.

     Section 1.3 Announcement of the Modified Offer. The Parties’ agreement on the
Modified Offer will be announced on May 10, 2007 at 7:00 a.m. CET by way of mutually agreed press
releases which shall inter alia make explicit reference to the Company Board’s unanimous approval
and recommendation as well as the support of the Company’s Global Executive Committee of such
Modified Offer.

     Section 1.4 Modified Offer Prospectus. Subject to Sections 2.1 and 5.2 below, the
Offeror shall publish a modified Prospectus reflecting the Modified Offer (the “Modified
Prospectus”) no later than two (2) SWX trading days following the approval of the Modified Offer by
the Swiss Takeover Board.

 

			
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ARTICLE II

RECOMMENDATION OF THE MODIFIED OFFER

     Section 2.1 Recommendation. The Company Board has unanimously resolved at its
meeting held on May [9], 2007, subject to a Superior Offer (as defined below) not having been made
or formally pre-announced in the meantime (subject to Section 4.2 below), (i) to recommend to the
Company’s shareholders to accept the Modified Offer and tender their Converium Shares into the
Modified Offer and (ii) to unanimously adopt and publish, as part of the Modified Prospectus, a
modified Company Board report prepared in accordance with Art. 29 para. 1 of the Swiss Federal Act
on Stock Exchanges and Securities Trading (“SESTA”) endorsing and recommending the Modified Offer
without reservation and recommending that the Company’s shareholders accept such Modified Offer
(the “Modified Company Report”). In this context, the Company will ensure that the Modified
Company Report be prepared as soon as reasonably practicable after the date hereof and that the
Modified Company Report will be filed with the Swiss Takeover Board for approval jointly with the
Modified Prospectus.

     Section 2.2 Actions of Company Board. As from the date hereof, (i) the Company Board
and the members of the Global Executive Committee shall, subject to a Superior Offer not having
been announced or pre-announced (subject to Section 4.2 below), publicly support the Modified
Offer and (ii) the Company shall abstain from taking any action or doing, or cause to abstain from
doing, any such thing that may (a) prevent or compromise the Modified Offer, its success or its
strategic or commercial value or rationale or (b) be otherwise detrimental to the Modified Offer.

ARTICLE III

OFFEROR COVENANTS

     Section 3.1 Swiss Presence. Subject to the settlement of the Modified Offer, the
Offeror agrees to (i) maintain a strong presence in Zurich and (ii) make Zurich one of the three
European key hubs of the combined Group, together with Paris and Cologne. The Zurich operating
entity shall become a strategic pillar of the combined Group.

     Section 3.2 Swiss Employees. Subject to the settlement of the Modified Offer, for a
period of twelve (12) months following the date of settlement of the Modified Offer, the Offeror
agrees to ensure that the Company and its Swiss subsidiaries do not serve notice to any of their
present employees or change the compensation plans for such employees. During such period, the
Company and its Swiss subsidiaries may, however, terminate employees for cause (wichtigem Grund ,
Art.337CO). The foregoing limitations to serve notice shall not be applicable to any present
employees of the Company and its Swiss subsidiaries who have a Change in Control clause in their
employment agreements and such employment agreements will continue to apply.

     Section 3.3 Specific Key Employees. Subject to the settlement of the Modified Offer,
the employment agreements of Ms. Inga Beale and Mr. Paolo De Martin shall be terminated with effect
as of December 31, 2007 by the termination agreements attached hereto as Exhibits 1a and 1b
respectively. The Company Board hereby confirms that it has obtained the approval of Ms. Inga
Beale and Mr. Paolo De Martin who have agreed to use, until December 31, 2007, their best efforts to ensure a smooth transition of the management of the
Company to the Offeror and to act in a loyal manner.

 

			
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     Section 3.4 SWX Secondary Listing. Upon settlement of the Modified Offer or as
soon as reasonably practicable thereafter, a secondary listing of the Offeror’s shares on the SWX
Exchange shall be implemented.

     Section 3.5 Protection of the Members of the Company Board. Subject to the settlement
of the Modified Offer, the Offeror agrees, subject to applicable laws and regulations, to release
and discharge, to the extent permitted in accordance with applicable laws and regulations, each of
the members of the Company Board from any and all claims and liabilities which the Company has or
may have against any member arising out of any matter, cause or event occurring on or before the
date of the EGM (as defined below), provided that the foregoing shall not apply in connection with
any willful or grossly negligent acts or omissions of a member. Furthermore, the Offeror shall
ensure that the Company maintains for six (6) years as of the date hereof tail insurance for the
present members of the Company Board and officers of the Company and its subsidiaries that is based
on the present D&O insurance of the Company and provides the same coverage as such insurance.

ARTICLE IV

COMPANY COVENANTS

     Section 4.1 Conduct of Business. To the extent permitted under applicable laws and
regulations, the Company shall, for the whole duration of this Agreement, (i) operate (and shall
procure that its affiliates operate) its business and the businesses of its affiliates in the
ordinary course of business consistent with past practice, (ii) abstain (and shall procure that its
affiliates and representatives abstain) from (a) taking any actions outside the ordinary course of
business consistent with past practice and (b) issuing any type of equity securities or debt
instrument of any nature whatsoever, and (iii) shall, and shall cause each of its affiliates to,
use all reasonable commercial efforts to preserve intact its material business organization and
relationships with third parties (including its relationships with ceding companies, suppliers,
employees, financial institutions and business partners) and to keep available the services of
their present officers and key employees. The Company shall in particular ensure that it or its
affiliates do not undertake any action that triggers the Offer Conditions (as defined in Section
5.2 below).

     Section 4.2 No Solicitation. The Company shall immediately cease and cause to be
terminated all existing discussions or negotiations with any party conducted heretofore with
respect to any Acquisition Proposal (as defined below) and not initiate or solicit in any way any
discussions or negotiations with respect to any Acquisition Proposal after the date hereof. The
Company shall promptly notify the Offeror (i) if it becomes aware that a third party has the
intention of announcing or pre-announcing an Acquisition Proposal and (ii) of any Acquisition
Proposal received after the date hereof, in each case, not later than twenty four (24) hours after
the knowledge or the receipt of such Acquisition Proposal. Except on a date that is not earlier
than the fourth (4th) business day following a Notice of a Superior Offer (as defined below), the
Company Board shall not (i) withdraw or modify in a manner adverse to the Offeror, or propose
publicly to withdraw or modify in a manner adverse to the Offeror, the approval or recommendation
by the Company Board set forth in the Modified Company Report, or (ii) approve or recommend, or
propose publicly to approve or recommend, any Superior Offer. The Company shall promptly (and in
any event within one (1) business day) notify the Offeror following any determination by the
Company Board with respect to an Acquisition Proposal, that such Acquisition Proposal is a Superior
Offer (“Notice of Superior Offer”). During the three (3) business day period after receipt of the
Notice of Superior Offer, the Offeror shall have reasonable opportunity to propose such
adjustments, modifications or amendments to the terms and conditions of this Agreement as the Offeror believes would enable the Company Board to
proceed with the transactions contemplated herein (provided, however, that the Offeror shall

 

			
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not have any obligation to propose any adjustment, modification or amendment to the terms and
conditions of this Agreement or the Modified Offer) and the Company shall negotiate with the
Offeror in good faith with respect thereto during such three (3) business day period.

     For purposes hereof, (1) “Acquisition Proposal” shall mean any proposal or offer from any
party other than the Offeror relating to any (i) tender or exchange offer involving Converium
Shares or other acquisition of Converium Shares, (ii) merger, consolidation or other business
combination involving the Company or any of its affiliates, (iii) direct or indirect acquisition or
purchase of a business or assets that constitutes a substantial part of the business or assets of
the Company or its affiliates, or a substantial amount of the equity securities of the Company or
any of its affiliates, (iv) recapitalization or restructuring of the Company, or (v) other
transaction similar to any of the foregoing with respect to the Company or any of its affiliates,
other than the transactions contemplated by this Agreement and (2) “Superior Offer” shall mean any
public offer (or an increase of an existing public offer) to all of the shareholders of the Company
to acquire all of the Converium Shares, on terms and conditions that the Company Board determines
in its good faith judgment, after due consideration of its fiduciary duties and based upon an
opinion of independent financial and legal experts, to be superior for the Company’s shareholders
when compared as a whole with the terms and conditions of the Modified Offer, provided such offer
is at a price or consideration that on a fully diluted basis is not lower than the Offer
Consideration and that the conditions to such offer are no more restrictive than the Offer
Conditions.

     Section 4.3 Shareholders’ Meetings. In the annual shareholders’ meeting of the
Company that has been convened for May 10 2007 (“AGM”), the Company and the Company Board shall (i)
(a) withdraw the proposal for a capital reduction for the purpose of a par value repayment to
shareholders of the Company (agenda item 3) and (b) propose against any third party proposal for
(x) such a capital reduction (or similar thereto) or (y) an increase of the proposed gross dividend
of CHF 0.20 per Converium Share (agenda item 2), (ii) provide the Offeror’s Chairman and CEO the
opportunity to address the Company’s shareholders and to explain the advantages of the combination
between Converium and SCOR and (iii) support the Modified Offer and the creation of the combined
Group. In addition, the Company shall procure that Mr. Derrell J. Hendrix shall not stand for
re-election as currently proposed under agenda item 5 of the AGM and the Company and the Company
Board shall instead announce Mr. Hendrix’ decision not to stand for re-election and propose to the
AGM to support a proposal by the Offeror to elect in lieu of Mr. Hendrix Mr. Gilles Meyer, Director
of Business Unit 1 of SCOR Global Life and member of the SCOR Group Executive Committee, to the
Company Board for a term of three (3) years. If the Offer is declared successful, the Company
Board shall immediately convene an extraordinary meeting of shareholders of the Company to be held
as soon as practicable with such agenda and proposals that shall have been submitted by the Offeror
(“EGM”).

     Section 4.4 Trading in Shares and Related Securities by the Company. From the date
hereof until the day of the six (6)-month anniversary of the additional acceptance period of the
Modified Offer (or any later period during which the Swiss best price rule may apply), the Company
shall abstain (and shall procure that its affiliates abstain) from (i) (a) acquiring or selling any
Converium Shares or (b) entering into any (x) agreement (either on or off exchange) relating to the
acquisition or sale of Converium Shares and/or (y) derivative transaction having Converium Shares
as underlying; (ii) amending the terms and/or conditions of existing employee stock options or
derivatives issued by the Company, its affiliates or representatives without the Offeror’s prior
written consent; (iii) tendering treasury shares held or acquired by the Company or its affiliates
(the “Treasury Shares”) for acceptance in the Modified Offer; and (iv) selling or agreeing to sell
any of the Treasury Shares to any third party (other than the delivery of Treasury Shares to
fulfill the share delivery obligations of the Company under the various employee participation plans in effect as of the date hereof).
The Offeror is hereby informed that all rights of the beneficiaries under the Company’s
currently

 

			
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existing stock options plan and stock purchase plan vest and become exercisable on the first
day of the extension period (art 14.para.5) of the Modified Offer. Due to the immediately preceding
restrictions, the Company may not have a sufficient number of shares to cover all its obligations
to deliver shares but will have to cover a proportion of the commitments under such stock options
plan and stock purchase plan by paying full cash compensation for the value of the shares to be
delivered to the beneficiaries of such plans, unless an exemption from the provisions of this
Section 4.4 is granted by the Offeror to the Company.

     Section 4.5 Rating Evaluation Service. The Company agrees to execute any and all
required documents upon execution of this Agreement to permit a Rating Evaluation Service to be
performed by Standard & Poors’ as soon as practicable.

     Section 4.6 US Litigation. Immediately following the execution of this Agreement, the
Company shall take all steps necessary to obtain dismissal with prejudice of the litigation it
commenced in the United States District Court for the Southern District of New York entitled
Converium Holding AG v SCOR S.A. and Patinex AG, No. 07 CV 3042 (GEL). The Company shall also, in
connection with the putative class action commenced in the United States District Court for the
Southern District of New York entitled Sclater-Booth v SCOR S.A. and Patinex AG, No. 07 CV 3476,
cooperate with the Offeror in the Offeror’s defense of that lawsuit, including by providing
documents and testimony should the Offeror reasonably deem documents from the Company necessary to
its defense of that lawsuit.

     Section 4.7 Other Actions. Immediately following the execution of this Agreement, the
Company shall take all steps necessary to withdraw all its filings and claims for relief (Anträge,
Rechtsbegehren) made to the Swiss Takeover Board and other Swiss governmental authorities
(including the FOPI) and file its approval with the Offer and the Modified Offer with the Swiss
Takeover Board and other competent Swiss governmental authorities. The Company shall not oppose any
filings of the Offeror with any governmental authority that aim at demonstrating that the Offeror’s
exclusion of the United States has been carried out in compliance with applicable laws and
regulations and cooperate with the Offeror in that regard.

     Section 4.8 Seamless Transfer of Managerial Control. The Company and the members of
the Company Board shall use their best effort to ensure a seamless and smooth transfer of the
managerial control over the Company to the Offeror immediately after the EGM of the Company
mentioned in Section 4.3 above has been held. To ensure its control over the Company the Offeror
will at such EGM propose and elect new board members of the Company and will, furthermore, replace
the current CEO and the current CFO of the Company. Furthermore, the Company and its key employees
shall use their best efforts to maintain the relationships with the Company’s current clients and
other stakeholders.

     Section 4.9 Company Board. Provided that the Modified Offer is successful and becomes
unconditional, all present members of the Company Board will resign with effect as of the EGM. The
Offeror will ensure that at such EGM new members of the Company Board are elected.

ARTICLE V

MUTUAL COVENANTS

     Section 5.1 Announcement. The timing and content of any announcement, press release,
or other public statement concerning this Agreement or any further agreement entered into between
the Offeror and the Company shall only occur upon, and be determined in advance by, mutual
agreement and consent of each of the Parties, unless required by applicable

 

			
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laws and regulations (in which case, the disclosing Party shall consult in advance with the
other Party concerning the reasons for, and content of, such disclosure). Notwithstanding the
foregoing, the Offeror shall be free to make filings to the Swiss Takeover Board and other
authorities in support of the Modified Offer and its approval as deemed appropriate by the Offeror.

          Section 5.2 Cooperation. From the date hereof and for the whole duration of this
Agreement, to the extent permitted under applicable laws and regulations, each of SCOR and
Converium shall, and Converium shall cause each of its affiliates to, coordinate, cooperate and use
commercially reasonable best efforts: (i) to immediately contact and jointly meet with each of the
Swiss Takeover Board and the Swiss Federal Office of Private Insurance (“FOPI”) to explain the
consequences of this Agreement from the Parties’ perspective; (ii) to duly publish the Modified
Prospectus, including the Modified Company Report, as set forth above; (iii) to take all actions
necessary or advisable to consummate and make effective the transactions contemplated by this
Agreement as promptly as practicable, including (1) the approval of the FOPI for exceeding each of
the 33% and the 50% thresholds of Converium’s share capital, (2) the fulfillment of the Offer
conditions set forth in Section B.9 of the Offer Prospectus (the “Offer Conditions”), (3) the due
settlement of the Modified Offer in accordance with its terms, and (4) to obtain all consents,
approvals, permits and authorizations required to be obtained from counterparties to agreements
which are material to the business of the Company or its affiliates, including the agreements
entered into with Zurich Financial Services Group, National Indemnity, GAUM and MDU.

          Section 5.3 Integration Committee. Upon execution of this Agreement, the Offeror and
the Company shall set up a joint committee the purpose of which will be to organize and anticipate
on all matters that will be necessary in order to ensure a smooth integration process (the
“Integration Committee”). The list of the members of such Integration Committee and its specific
functions and governance will be agreed upon by the Parties, being understood that each Party shall
have an identical representation on such Integration Committee.

          Section 5.4 Underwriting Committee. Upon execution of this Agreement, the Offeror and
the Company shall set up a joint committee the purpose of which will be to organize (i) the
combination of the Offeror’s “Dynamic Lift Plan” and the Company’s “Roadmap” and (ii) the 2008
underwriting plan (the “Underwriting Committee”). The list of the members of such Underwriting
Committee will be agreed upon by the Parties, being understood that each Party shall have an
identical representation on such Underwriting Committee.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

     Each of the Parties hereby represents and warrants to the other Party as follows:

     (a) Such Party has full corporate power and authority to execute and deliver this Agreement.
The execution, delivery and performance by such Party of this Agreement have been duly authorized
by such Party’s Board of Directors, and no other corporate action on the part of such Party is
necessary to authorize the execution and delivery by such Party of this Agreement.

     (b) This Agreement has been duly executed and delivered by such Party and, assuming due and
valid authorization, execution and delivery thereof by the other Party, this Agreement is a valid
and binding obligation of such Party enforceable against such Party in accordance with its terms, except as limited by applicable bankruptcy, insolvency and other
similar applicable laws and regulations affecting enforcement of creditors’ rights generally.

 

			
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     (c) Except as regards the U.S. litigation matters referred to in Section 4.6 above, there
is no suit, action, proceeding or arbitration pending against or, to the knowledge of such Party,
threatened against or affecting such Party or its affiliates by any third party nor is there any
order outstanding against such Party or any of its affiliates that (i) seeks to restrain or enjoin
the consummation of any of the transactions contemplated by this Agreement, or (ii) could
reasonably be expected to negatively impair the ability of such Party to consummate any of the
transactions contemplated by this Agreement.

ARTICLE VII

TERMINATION

     Section 7.1 Termination. This Agreement may be terminated: (i) by mutual written
consent of the Parties; or (ii) by any Party, if the Modified Offer is unsuccessful or is otherwise
withdrawn, upon public announcement by the Offeror of the Modified Offer’s lack of success or
withdrawal; or (iii) by the Offeror, if the Company materially breaches its representations,
warranties or covenants under this Agreement; or (iv) by the Offeror, if the Company Board
withdraws or fails to make its recommendation of the Offer, solely in a manner expressly permitted
under this Agreement; or (v) by the Company, if the Company Board withdraws or fails to make its
recommendation of the modified Offer, solely in a manner expressly permitted under this Agreement;
or (vi) by any Party, if a competing public tender offer has an acceptance rate of 50% or more of
all voting rights and is declared successful (subject to conditions subsequent by the relevant
offeror).

     Section 7.2 Liability. If the obligations under this Agreement are terminated
according to Section 7.1 above, such termination shall be without liability of any Party to the
other Party; provided, however, that if such termination shall result from the breach by any Party
of its representations, warranties or covenants under this Agreement, such Party shall be fully
liable for all damages suffered by the other Party as a result of such breach.

ARTICLE VIII

MISCELLANEOUS

     Section 8.1 Fees and Expenses. All fees and expenses incurred in connection with this
Agreement and the consummation of the transactions contemplated herein shall be borne by the Party
incurring such fees or expenses.

     Section 8.2 Consents to References. The Offeror and the Company shall be entitled to
include in filings under applicable rules and regulations, including the SESTA, the General
Regulation of the Autorite des marches financiers, the U.S. Securities Act of 1933, as amended and
the U.S. Securities Exchange Act of 1934, as amended, information in connection with this Agreement
and the transactions contemplated herein.

     Section 8.3 Entire Agreement; No Third Party Beneficiaries. This Agreement and the
Exhibits hereto constitute the entire agreement and supersede all prior agreements and
understandings, both written and oral, between the Parties with respect to the subject matter
hereof and thereof. With the exception of Sections 3.3 and 3.5 hereof which confer rights to the
third parties expressly referred to in such Sections, this Agreement is not

 

			
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intended to, and does not, confer upon any person other than the Parties hereto any rights or
remedies hereunder.

          Section 8.4 Amendments and Waivers. This Agreement may be amended, superseded,
cancelled, renewed or extended, only by a written instrument signed by each of the Offeror and the
Company or, in the case of a waiver, only by a written instrument signed by the Party waiving
compliance. No delay on the part of any Party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any
such right, power or privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other such right, power or
privilege.

          Section 8.5 Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the sole benefit of the Parties hereto and their respective successors, heirs, permitted
assigns and legal representatives and it shall not be construed as conferring any rights or
remedies on any Person other than the Parties and their respective successors and permitted
assigns. Pending settlement of the Modified Offer, neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either Party (whether by operation of law
or otherwise) without the prior written consent of the other Party. Following settlement of the
Modified Offer, the Offeror shall have the right to assign any or all of its rights and obligations
to any Affiliate of the Offeror. Any attempted assignment not permitted under this Section 8.5
shall be null and void.

          Section 8.6 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been given (i) on the date of delivery if delivered personally
or by courier service, (ii) on the date of confirmation of receipt (or the first business day
following such receipt if the date is not a business day) if sent via facsimile (receipt
confirmed), or (iii) on the date of confirmation of receipt (or the first business day following
such receipt if the date is not a business day) if delivered by an internationally recognized
courier service. All notices hereunder shall be delivered to the Parties at the following
addresses or facsimile numbers:

	(i)		 	If to the Offeror, to:

SCOR S.A.

1, Avenue du Général de Gaulle

92074 Paris — La Défense Cedex

France

Fax: +33.1.46.98.78.39

Attention: Emmanuelle Rousseau — Group General Counsel

with a copy to (which shall not constitute notice to the Offeror):

Skadden, Arps, Slate, Meagher & Flom LLP

68, rue du Faubourg Saint Honoré

75008 Paris

Fax: + 33.1.55.27.21.95

Attention: Armand W. Grumberg

and to

Homburger

Weinbergstrasse 56/58

8006 Zürich

Fax : +41 43 222 15 00

Attention : Dieter Gericke

 

			
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	(ii)		 	If to the Company, to:

Converium AG

General Guisan-Quai 26

8002 Zurich

Switzerland

Fax: + 41.44.639.90.90

Attention: Christian Felderer — General Counsel

with a copy to (which shall not constitute notice to the Company):

Baker & McKenzie

Zollikerstrasse 225

8034 Zurich

Switzerland

Fax: + 41.44.384.12.84

Attention: Urs Schenker

or to such other address as the Party to whom notice is given may have previously furnished to the
other Party in writing in the manner set forth above (provided that notice of any change of address
shall be effective only upon receipt thereof).

          Section 8.7 Severability. If any provision of this Agreement is held to be invalid or
unenforceable for any reason, such provision shall be ineffective to the extent of such invalidity
or unenforceability; provided, however, that the remaining provisions shall continue in full force
without being impaired or invalidated in any way. The Parties agree to replace any invalid or
unenforceable provision with a valid provision which most closely approximates the intent and
economic effect of the invalid or unenforceable provision.

          Section 8.8 Governing Law. This Agreement shall be exclusively governed by and
construed in accordance with the substantive laws of Switzerland, without regard to the principles
of conflicts of laws thereof.

          Section 8.9 Jurisdiction. Any disputes arising out of or in connection with this
Agreement shall be submitted to the Commercial Court of Zurich, Zurich 1.

          Section 8.10 Specific Performance. The Parties hereto agree that irreparable damages
would occur in the event that any provision of this Agreement was not performed in accordance with
the terms hereof and that the Parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy at law that may be available, and the Parties waive and
shall waive in such proceedings the posting of any bond or security in connection with any
proceedings related thereto.

 

			
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     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	SCOR S.A.
	 
	 	 	 	 
	By:
	 	/s/ Denis Kessler	 	 
	 
	 	 

		
	Name:
	 	Denis Kessler	 	 
	Title:
	 	Chairman and CEO 	 	 
	 
	 	 	 	 
	
	 		 	 
	CONVERIUM HOLDING AG
	 
	 	 	 	 
	By:
	 	/s/ Markus Dennler 	 	 
	

	 	 

	 	 
	Name:
	 	Markus Dennler	 	 
	Title:
	 	Chairman of the Board 	 	 
	 
	 	 	 	 
	By:
	 	/s/ Inga Beale 	 	 
	

	 	 

	 	 
	Name:
	 	Inga Beale	 	 
	Title:
	 	CEO 	 	 

 

			
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EXHIBIT 1A/B

TERMINATION AGREEMENT

regarding employment agreement

between

[Employee], [Address], Switzerland

Employee

and

Converium AG, General Guisan-Quai 26, 8002 Zurich, Switzerland

Employer

Employee and Employer entered into an employment agreement on [l] (such agreement, as amended, the
“Employment Agreement”). Employee and Employer wish to terminate such Employment Agreement.
Therefore, the Parties agree as follows:

	1.	 	The Employment Agreement shall terminate as of 31 December 2007. At such date at the latest,
the Employee shall also resign from any corporate or other functions it may have within the
Employer, Converium Holding AG, any of their direct or indirect subsidiaries, any Converium
pension funds and/or any other Converium affiliated entity, joint venture or similar
organization (together the “Converium Group”). The Employee hereby expressly confirms that
except for the Employment Agreement with the Employer it is not, and has not been, an employee
of, or adviser to, any member of the Converium Group. For a period of five (5) years as of
January 1, 2008 (unless a longer period is required by applicable law), the Employee shall
continue to comply with the confidentiality provisions of [article 13 (Inga Beale) / article
14 (Paolo De Martin)] of the Employment Agreement and article 7 of Annex 1 thereto.
Furthermore, for a period of one (1) year as of January 1, 2008, the Employee shall not
solicit, induce, or attempt to induce employees of the Converium Group to terminate employment
with, or otherwise cease their relationship with the Converium Group or solicit or hire any
employee of the Converium Group to work for or to provide services to any third party.
	 
	 	 	Notwithstanding any provision to the contrary set forth in the Employment Agreement, at
termination, the Employee shall return all property, access codes, computers, client files
and lists and other documents or information of, or relating to, Converium Group to
Converium Group and not keep or use in any way any copies of such access codes, files and/or
other documents or information.

 

 

	2.	 	The Employer shall make a gross lump-sum payment as per 31 December 2007 of CHF [4.2 Mio. for
Inga Beale and 2.5 Mio. for Paolo de Martin] (“Lump Sum Payment”). The Lump Sum Payment shall
be in full settlement and discharge of any rights of any nature whatsoever, known or unknown,
actual or contingent, that the Employee may have or will have on 31 December 2007 or
thereafter as an employee, adviser, director, officer or other corporate body within or on
behalf of any member of the Converium Group against any member of the Converium Group and any
of their current or former directors, officers, employees, representatives and agents. The
Lump Sum Payment also covers, without limitation, any claims for accrued vacation, over-hours
or over-time, severance payments, change of control payments and unexercised or unvested stock
options, stock appreciation rights or employee shares. The Employer shall make all applicable
deductions such as social security contributions or source taxes from the Lump Sum Payment.
Payment shall be made on February 1, 2008 against valid delivery on such date of a waiver and
release in the form attached as Annex A hereto.
	 
	3.	 	During the date hereof and 31 December 2007, (i) the Employment Agreement shall remain in
full force and effect, except that the Employer shall not be obligated to maintain or assign
particular tasks, functions, titles or powers of the Employee within the Converium Group and
the Employee shall resign from such functions upon request by the Employer (and retransfer any
qualifying shares, if any) and (ii) the Employee shall use its best efforts to ensure a smooth
transition of the management of the Converium Group to SCOR S.A. and act in a loyal manner.

	 	 	 	 	 	 	 	 	 	 	 
	Place, Date:	 	 	 	 	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Employee:

	 	 	 	 	 	 	 	Employer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Converium AG	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

2

 

Annex A

Statement of Waiver and Release

After due and considerate negotiations, Converium AG (“Company”) and I entered a Termination
Agreement dated        (the “Termination Agreement”). I hereby expressly confirm that upon receipt
of the Lump Sum Payment (as defined in the Termination Agreement), I knowingly and voluntarily
release and forever discharge the Company and any other member of the Converium Group (as defined
in the Termination Agreement), any of their current and former employees, officers, directors,
representatives and agents, as well as all otherwise affiliated or related entities or persons of
and from any and all claims of any nature whatsoever, known or unknown, actual or contingent, I
have or may have now or in the future against them in connection with my activity within or on
behalf of the Converium Group.

	 	 	 	 	 	 	 	 	 
	Place, date:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:exv4w53

 

Exhibit 4.53

THIS FRONTING AND ADMINISTRATION AGREEMENT is made on the 25 day of April 2007

between:

	(1)	 	CONVERIUM AG, a company incorporated in Switzerland whose registered office is at General
Guisan-Quai 26, 8022 Zürich, Switzerland (Converium);

	(2)	 	MÜNCHENER RÜCKVERSICHERUNGS-GESELLSCHAFT AKTIENGESELLSCHAFT IN MÜNCHEN, whose registered
office is at Königinstraße, 107, 80802 München, Germany (Munich Re);

	(3)	 	NATIONAL INDEMNITY COMPANY, a company incorporated in Nebraska, United States of America,
whose registered office is at 3024 Harney Street, Omaha, Nebraska, USA 68131 (National
Indemnity);

	(4)	 	GLOBAL AEROSPACE UNDERWRITING MANAGERS LIMITED (registered number 2512067) whose registered
office is at Fitzwilliam House, 10 St. Mary Axe, London EC3A 8EQ (Global); and

Whereas:

(A) An aviation and aerospace underwriting pool (the Pool) has been established between certain
insurance and reinsurance companies including Converium, Munich Re, National Indemnity and Global
in respect of risks written after the date of the Pool Members’ Agreement (as hereinafter defined)
and attaching on or after 1 January 2003, and in respect of which inter alia Converium appoints
Global as its agent for writing insurance and reinsurance in respect of certain risks and to
provide administration and management services in respect of the Pool.

(B) Converium intends to appoint National Indemnity and Munich Re (or members of their Groups) to
provide fronting insurance for Converium in respect of Relevant Risks which incept in the Period
(all terms as hereinafter defined). The intention is that, unless otherwise stated, in respect of
each risk which would be written in the name of Converium under the terms of the Pool Members’
Agreement, National Indemnity or a member of its Group will front 50 per cent. of such risk and
Munich Re or a member of its Group will front 50 per cent. of such risk. In certain jurisdictions
where there is currently fronting in place in respect of National Indemnity’s or Munich Re’s
participation in the Pool, the fronter (being those persons listed in column 4 of Part II if any of
Schedule 2 and Schedule 3) has agreed to extend the fronting that is currently in place so that it
covers (in each case) 50 per cent of each risk in such jurisdiction which would be written in the
name of Converium under the Pool Members’ Agreement.

(C) Accordingly, this Agreement constitutes a Fronting Arrangement for the purposes of the Pool
Members’ Agreement and sets out the basis on which (1) National Indemnity and Munich Re or members
of their Groups set out in Part I of Schedule 2 or Part I of Schedule 3 will appoint Global to
underwrite, administer and

 

 

manage such Relevant Risks and (2) all business written in the name of National Indemnity and
Munich Re or members of their Groups set out in Part I of Schedule 2 or Part I of Schedule 3 under
this Agreement will be fully reinsured by Converium.

Now it is hereby agreed as follows:

1. Definitions

1.1 Unless otherwise defined in this Agreement and unless the context otherwise requires, all
words and phrases shall have the meaning ascribed to them in the Pool Members’ Agreement.

Agent means Global as the context requires;

Agreement means this Agreement as amended from time to time;

Business means the business of writing Fronting Insurance Contracts as agent for National
Indemnity, Munich Re or members of their Groups set out in Part I of Schedule 2 or Part I of
Schedule 3 in their capacity as fronting insurers for Converium and managing such business on
behalf of National Indemnity, Munich Re or members of their Groups set out in Part I of Schedule 2
or Part I of Schedule 3 and doing such other things ancillary or incidental thereto in any such
case as may from time to time be permitted or required by or pursuant to this Agreement and for the
avoidance of doubt, Business excludes that portion of any risk reflecting the participation of
National Indemnity, Munich Re or members of their Groups set out in Part I of Schedule 2 or Part I
of Schedule 3 under the Pool Members’ Agreement and that portion of any risk which is written on
behalf of Munich Re or National Indemnity by the persons set out in column 4 of Part II if any of
Schedule 2 or Schedule 3 respectively;

Business Day means any day (not being a Saturday or Sunday) on which banks are open for the
transaction of general banking business in London;

Confidential Information means:

	(a)	 	all information obtained by a party as a result of negotiating and entering into this
Agreement;

	(b)	 	all financial or other information received by a party pursuant to this Agreement in respect
of Global;

	(c)	 	all financial or other information received by a party pursuant to this Agreement in respect
of Converium;

	(d)	 	all financial or other information received by a party pursuant to this Agreement in respect
of National Indemnity or Munich Re; and

	(e)	 	information as to the terms of this Agreement or of any agreement referred to in it and
information relating to the performance by any party of its obligations under this Agreement
or any agreement referred to in it;

Page 2 

 

Claim means, in relation to any Reinsured Risk, the notification, by the insured (or as
applicable reinsured) of an actual or potential claim under such Reinsured Risk and, for the
avoidance of doubt, a Claim shall be deemed to have been made where there is a settlement,
compromise, commutation and/or policy buy back entered into by or on behalf of National Indemnity,
Munich Re or members of their Groups set out in Part I of Schedule 2 or Part I of Schedule 3 in
relation to the Reinsured Risks (or any of them);

Claims-Related Extra Contractual Obligation means any liability on the part of National
Indemnity, Munich Re or members of their Groups set out in Part I of Schedule 2 or Part I of
Schedule 3 (or amount agreed to be paid by or on behalf of National Indemnity, Munich Re or members
of their Groups set out in Part I of Schedule 2 or Part I of Schedule 3 in respect of potential or
alleged liability on the part of National Indemnity, Munich Re or members of their Groups set out
in Part I of Schedule 2 or Part I of Schedule 3) which has arisen in connection with or which
relates in any way to the conduct of a claim and/or the conduct of the Business where such
liability (or potential or alleged liability) has arisen because of or relates in any way to any
Reinsured Risk in respect of which a Fronting Insurance Contract has been written in such person’s
name save to the extent that any Claims-Related Extra Contractual Obligation results from fraud of
National Indemnity or a member of its Group, or Munich Re or a member of its Group;

duly authorised means:

	(a)	 	in the United Kingdom, duly authorised to carry on general insurance business under the
Financial Services and Markets Act 2000; and

	(b)	 	in any other jurisdiction, duly authorised, licensed or otherwise approved or permitted,
under the laws of the applicable jurisdiction, to underwrite or carry on general insurance
business covering Specified Risks in accordance with the relevant laws or regulations of such
jurisdiction;

Due means with respect to any sum or amount of money that such sum or amount has been
demanded by or from the Agent and Due Premium means that amount of written premium that has been
demanded by the Agent from an Original Insured, being the insured party to any relevant Fronting
Insurance Contract, for and on behalf of Munich Re and /or National Indemnity, as appropriate, by
way of bill, invoice or other enforceable demand, and in respect of which the Agent has assigned a
date by when such Original Insured must actually pay the amount of premium demanded (Due Date) and
calculated in all cases as at the relevant Due Date(s).

Fronting Insurance Contract means a contract of insurance and/or reinsurance which is written
by Global pursuant to this Agreement on behalf of National Indemnity or Munich Re or the relevant
member of such person’s Group (solely in its capacity as fronting insurer for Converium) in respect
of the proportion of the Relevant Risks set out in Clause 2.3(b) attaching during the Period
provided that Fronting Insurance

Page 3 

 

Contracts shall not relate to the percentage of each policy issued under the Pool Members’
Agreement representing Munich Re’s or National Indemnity’s interest under the Pool Members’
Agreement;

GAI means GLOBAL AEROSPACE, INC. (formerly known as ASSOCIATED AVIATION UNDERWRITERS, INC.) a
Delaware corporation.

Group means in relation to a company, that company and any company which is a holding company
of that company or a subsidiary of that company or of such holding company;

holding company has the meaning ascribed thereto by Section 736 of the Companies Act 1985;

Incurred Position means, in relation to Converium, such amount as may be determined in
accordance with Clause 15 as being the greater of:

	(a)	 	Due Premium (in relation to the relevant Reinsured Risks less any (i) due reinsurance
premiums ceded in respect of reinsurance taken out in accordance with the Pool Business Plan
(as defined in the Pool Members’ Agreement) as amended from time to time or otherwise taken
out by the Agents on behalf of the Members of the Pool as a whole; (ii) original commissions
in relation to such Reinsured Risks; and (iii) taxes on the premiums relating to such
Reinsured Risks, ((a) less each of (i), (ii) and (iii) being the Net Premiums) multiplied by
150 per cent;

	(b)	 	120 per cent. of outstanding claims amounts attributable to relevant Reinsured Risks
(including reserves for claims incurred but not reported maintained by National Indemnity or
Munich Re or the relevant member of such person’s Group (as the case may be) in respect of
relevant Reinsured Risks) written in the name of National Indemnity or Munich Re or the
relevant member of such person’s Group less amounts recoverable in respect of reinsurance
taken out in accordance with the Pool Business Plan (as defined in the Pool Members’
Agreement) as amended from time to time or otherwise taken out by the Agents on behalf of the
Members of the Pool as a whole ; or

	(c)	 	$12,900,000.00 plus the Net Premiums in relation to the relevant Reinsured Risks;

provided that:

	 	(i)	 	if in relation to Converium, it has its financial strength rating
upgraded to A- or above by S&P or if such rating is not available, above such
comparable rating as may be reasonably agreed between the parties the references
to “150” and “120” above shall be read as “100” save that nothing in this
proviso shall be construed to reduce the Incurred Position below the minimum
percentage which is required to allow Munich Re, National Indemnity or the
relevant member of its Group to

Page 4 

 

	 	 	 	receive credit for the Reinsurance to which the security relates under the laws of
the jurisdiction in which such person is domiciled; and
	 
	 	(ii)	 	proviso (i) above shall only apply during such periods as
Standard & Poor’s financial strength rating of Converium is A- or above (or if
such rating is not available, such comparable rating as may be reasonably agreed
between Converium, Munich Re and National Indemnity). Converium shall make such
additional deposits to and or increase any relevant LOC(s) in the MR Fund, as
appropriate, and the NICO Fund in the event that Standard & Poor’s financial
strength rating of Converium falls below A- subsequent to termination of this
Agreement under Clause 10.1 so as to comply with the requirements of Clause 13
or Clause 14 (as appropriate) without regard to proviso (i) above;

The Incurred Position shall be calculated by the Agent within 20 business days of the end of
each quarter, one quarter in arrears or upon written request by any of the parties hereto, within
25 business days of the receipt of such written request.

Letter of Credit (“LOC”) means a clean, unconditional and irrevocable Letter of Credit issued
on behalf of Converium by a bank with a credit rating by Standard and Poors of AA or above (or if
such rating is not available, such other comparable rating as may be reasonably agreed between the
person in whose favour such Letter of Credit is written and Converium) for the benefit of National
Indemnity or Munich Re (or the applicable member of such person’s Group) (as the case may be) in an
amount to be determined from time to time in accordance with Clause 13 or Clause 14 (as
appropriate) provided that the bank issuing any Letter of Credit must be one that would permit (a)
National Indemnity or the relevant member of its Group to receive credit for the Reinsurance to
which that Letter of Credit relates under the laws of the jurisdiction in which such person is
domiciled; or (b) Munich Re or the relevant member of its Group to receive credit for the
Reinsurance to which that Letter of Credit relates under the laws of Germany;

Letter of Credit Notice means a notice issued by National Indemnity or Munich Re (as the case
may be) from time to time requiring Converium to either: (a) arrange or cause to be arranged the
issue and/or delivery of a Letter of Credit and/or to increase the amount of any such Letter of
Credit; or (b) deposit additional funds in the MR Fund or the NICO Fund;

Net Premiums has the meaning given to it in the definition of Incurred Position;

Overriding Commission means the overriding commission payable in accordance with Clause 6, the
amount of which shall be calculated in accordance with Schedule 1;

Period means the period beginning at 12:01 am BST on 1 July 2007 and ending at 12.01 a.m. BST
on 1 January 2008;

Page 5 

 

Pool Members’ Agreement means the Agreement between GAI, Global and various insurance
companies and reinsurance companies including National Indemnity, Munich Re and Converium dated 27
November 2002 for the formation of an aviation and aerospace underwriting pool under the management
of Global and GAI;

Premium shall have the meaning given to it in Clause 5.1;

profit shall mean, subject to the provisions of Schedule 4 or Schedule 5, for the purposes of
Clauses 13.5, 13.12 to 13.14, 14.5 and 14.12 to 14.14:

	(a)	 	the Due Premiums in respect of the relevant Reinsured Risks;
	 
	 	 	LESS
	 
	(b)	 	paid claims in respect of the relevant Reinsured Risks as at 31 December 2010;
	 
	 	 	LESS
	 
	(c)	 	outstanding claims which have been notified to Global or any of its subsidiaries in relation
to relevant Reinsured Risks as at 31 December 2010;
	 
	 	 	LESS
	 
	(d)	 	the reserves held for incurred but not reported claims in respect of relevant Reinsured Risks
as at 31 December 2010 by Munich Re or National Indemnity or a relevant number of such
person’s group, calculated by Munich Re or National Indemnity (or such person’s respective
appointee) (as appropriate) in accordance with actuarial best practice and guidance produced
by relevant actuarial bodies in the relevant country (and subject to the dispute resolution
mechanism in Clause 6),

in the case of (a) to (c) as produced by Global’s computer systems;

Regulatory Action means:

	(a)	 	any order of a court of competent jurisdiction;
	 
	(b)	 	any order made, decision given or final view expressed by a competent national,
supranational, governmental or regulatory authority or agency; or
	 
	(c)	 	any enactment of a legislative body;
	 
	(i)	 	which prohibits or restricts to a material extent the carrying on of the Business or the
arrangements contemplated by this Agreement; or
	 
	(ii)	 	in consequence of which any of the parties would incur fines or a liability in damages
were this Agreement to be performed in accordance with its terms;

Reinsurance has the meaning given to it in Clause 3;

Page 6 

 

Reinsured Risks means that percentage of any and all contracts of insurance, reinsurance or
retrocession written by either Agent in the name of Munich Re, National Indemnity (or members of
their Groups set out in Part I of Schedule 2 or Part I of Schedule 3) solely in its capacity as
fronting insurer for Converium under, pursuant to or in connection with (or purportedly under,
pursuant to or in connection with) this Agreement (as such contracts may be amended from time to
time) and irrespective of whether the acceptance of such contract was within the scope of the
authority granted to the Agent by Munich Re or National Indemnity or members of their Groups set
out in Part I of Schedule 2 or Part I of Schedule 3 under the terms of this Agreement or within the
scope of (or in accordance with the terms of) the Pool Members’ Agreement and Reinsured Risk shall
be construed accordingly. For the avoidance of doubt, Reinsured Risks shall not include the
percentage of each policy issued under the Pool Members’ Agreement representing Munich Re’s or
National Indemnity’s interest under the Pool Members’ Agreement;

Relevant Risks means Specified Risks relating to those countries set out in Part I of Schedule
2 in the case of Munich Re and the members of its Group and Part I of Schedule 3 in the case of
National Indemnity and the members of its Group, which are insurance or reinsurance risks;

Respective Proportion has the meaning given to it in the Pool Members’ Agreement;

Specified Risks means aerospace, aviation and all related and incidental insurance and
reinsurance risks;

subsidiary and wholly-owned subsidiary shall have the meanings given thereto in Section 736 of
the Companies Act 1985; and

Taxation means all forms of taxation and statutory, governmental, state, provincial, local
governmental or municipal impositions, duties, contribution and levies and all penalties, charges,
costs and interest relating thereto.

1.2 References to Recitals, Clauses, Schedules and parties are, except where otherwise
provided, to Recitals, Clauses, Schedules or parties to this Agreement. The Schedules form
part of this Agreement and have the same force and effect as if set out in the body of this
Agreement.

1.3 References to a statutory provision include such provision and any regulations made in
pursuance thereof as from time to time modified or re-enacted whether before or after the date
of this Agreement so far as such modification or re-enactment applies or is capable of applying
to any transactions entered into pursuant to this Agreement or to which this Agreement relates
and (so far as the same may be relevant) shall include any statutory provisions or regulations
which such provisions or regulations have directly or indirectly replaced.

1.4 The headings and index hereto are inserted for convenience only and shall not affect the
construction of this Agreement.

Page 7 

 

1.5 References to Converium, Munich Re (and any member of its Group), National Indemnity (and
any member of its Group) or to the Agents or any of them mean and include their respective
successors in title and permitted assigns.

1.6 Where the context so admits, references to the singular shall be deemed to include the
plural and vice versa.

1.7 References to Schedule 2 or Schedule 3 shall be to that Schedule as amended in accordance
with the terms of Schedule 2 or Schedule 3 (respectively) at the relevant time.

	2.	 	Appointment of Global and GAI to write Fronting Insurance

2.1 Each of Munich Re and National Indemnity (for itself and as agent for each member of its
Group set out in Part I of Schedule 2 or Part I of Schedule 3 respectively) hereby severally
appoints Global to act as agent for it or such member of its Group as is set out in Part I of
Schedule 2 or Part I of Schedule 3 in the relevant jurisdiction indicated in those Schedules
(which appointment Global hereby accepts and acknowledges):

	 	(a)	 	to underwrite and/or bind and/or effect Fronting Insurance
Contracts in the name of each of such persons in accordance with the terms of
this Agreement; and
	 
	 	(b)	 	to administer the Fronting Insurance Contracts and any
reinsurance of them including (without limitation) providing those services
specified in paragraphs 1.2 and 2 of Schedule 3 of the Pool Members’ Agreement
in relation to the Fronting Insurance Contracts

2.2 The Agent in performing its services under this Agreement shall act as agent (and describe
itself as acting as agent) for Munich Re or the relevant member of its Group when acting
pursuant to its appointment by Munich Re or a member of its Group or National Indemnity or the
relevant member of its Group when acting pursuant to its appointment by National Indemnity or a
member of its Group.

2.3 The appointment by each of Munich Re and National Indemnity and the relevant members of
their Groups of Global to act as its agent to underwrite and/or bind and/or effect Fronting
Insurance Contracts in the name of Munich Re or National Indemnity or the relevant member of
its Group is limited to the negotiation and/or underwriting and/or binding and/or effecting of
Fronting Insurance Contracts:

	 	(a)	 	in those countries set out against such person’s name in Part I
of Schedule 2 or Part I of Schedule 3;
	 
	 	(b)	 	in respect of the percentage set out against such person’s name
in Part I of Schedule 2 or Part I of Schedule 3 of Converium’s Respective
Proportion of the Relevant Risk;

Page 8 

 

	 	(c)	 	which are bound and/or effected prior to the expiration of the
Period;
	 
	 	(d)	 	which incept in the Period (provided that where a policy relating
to a Relevant Risk was written prior to the Period and is cancelled but
re-written on the same terms save for the fact that Converium is replaced as an
underwriter by Munich Re and National Indemnity for the Period, such policy
shall be deemed to incept in the Period);
	 
	 	(e)	 	the period of which does not, in any case, exceed 12 months plus
odd time not exceeding 15 months in all;
	 
	 	(f)	 	the terms of which, where written on a risks attaching basis, do
not allow for any risks to attach where the period of such risks exceeds 12
months plus odd time not exceeding 15 months in all;
	 
	 	(g)	 	which are in respect of Relevant Risks; and
	 
	 	(h)	 	which are within the scope of the insurance and reinsurance
contracts the Agents are authorised to write under the Pool Members’ Agreement.

2.4 Global shall not have any entitlement whatsoever to remuneration from Munich Re, National
Indemnity or the members of their Groups and none of Munich Re, National Indemnity or the
members of their Groups shall have any obligation whatsoever to remunerate the Agents in
respect of the assumption and performance of the Agents’ obligations under this Agreement.

2.5 Either Agent may (subject to prior notification of Converium, Munich Re and National
Indemnity) appoint a wholly-owned subsidiary of Global, which has been appointed pursuant to
Clause 10 of the Pool Members’ Agreement, for the purposes of providing all or some of the
services under this Agreement in relation to such part of the Business as the board of
directors of the relevant Agent may determine and shall give prior notice of such appointment
to each of Converium, Munich Re and National Indemnity. Such subsidiary shall, as soon as
reasonably practicable, become a party to this Agreement by executing a Deed of Adherence in
the form (or substantially in the form) set out in Annexure 1.

2.6 The appointment by Munich Re, National Indemnity or the relevant member of their Group of
the relevant Agent as its agent under Clause 2.1 shall be extended to the subsidiary, as if
references to Global were references to such subsidiary, in each case in relation only to such
services and/or to such parts of the Business as is determined by the board of directors of the
relevant Agent.

2.7 Any appointment of a subsidiary under Clause 2.5 shall terminate upon such subsidiary
ceasing to be a wholly-owned subsidiary of Global.

	2A.	 	Extension of
National Indemnity and Munich Re Fronting Lines

Page 9 

 

2A.1 Munich Re’s Respective Proportion of Specified Risks written in the jurisdictions set out in
Part II if any of Schedule 2 is fronted by the company set out opposite such jurisdiction in Part
II if any of Schedule 2 (together the MR Fronters). Munich Re agrees to use its reasonable
endeavours to amend its agreements with the MR Fronters so that each MR Fronter also writes fifty
per cent (50%) of Converium’s Respective Proportion of Specified Risks in the jurisdiction set out
opposite it in Part II if any of Schedule 2 (the MR Converium Risks), which shall then be 100%
quota share reinsured by Munich Re.

2A.2 Converium agrees that to the extent MR Converium Risks are written by the MR Fronters on terms
previously agreed with Converium in writing and provided that Munich Re and each member of its
Group pays to Converium all amounts received by it from the MR Fronters in relation to them
fronting Converium Risks it will:

(a) pay overriding commissions previously notified to and agreed by Converium in writing due to the
MR Fronters in respect of the Converium Risks;

(b) provide any security previously notified to and agreed by Converium in writing required by the
MR Fronters in relation to the Converium Risks (which security shall be provided from the MR Fund
pro rata to the applicable exposure); and

(c) reinsure Munich Re’s reinsurance of the MR Converium Risks on an equivalent basis to that set
out in Clause 3.

2A.3 Converium shall pay Munich Re commission (the MR Fronted Commission) for reinsuring the
Converium Risks on the basis set out in Clauses 2A.4 to 2A.6.

2A.4 The amount of MR Fronted Commission payable by Converium shall be calculated by reference to
the total gross premium income written by the Agents in the period in question in respect of each
MR Converium Risk after deduction of (i) any original commission or taxes on premiums payable
thereunder but before the deduction of amounts, if any, payable to the Agents under the terms of
the Pool Members’ Agreement and (ii) any premiums payable by the Agents for reinsurance in relation
to the Pool (such amount being referred to as the MR Relevant Net Premium Income).

2A.5 The amount of MR Fronted Commission payable by Converium to Munich Re shall be calculated by
multiplying the MR Relevant Net Premium Income attributable to MR Converium Risks covered by
policies written by MR Fronters by 1 per cent. (or by such percentage as may be agreed from time to
time between Munich Re and Converium in writing).

2A.6 The amount of MR Fronted Commission attributable to any calendar quarter shall be due and
payable on (i) the last business day of the immediately following calendar quarter, or (ii) the
date on which a cash distribution is paid by the Agents to Converium under the Pool Members’
Agreement with respect to business written in such calendar quarter, whichever is earlier and shall
be deducted by Munich Re from the MR Fund on that date.

Page 10 

 

2A.7 National Indemnity’s Respective Proportion of Specified Risks written in the jurisdictions set
out in Part II if any of Schedule 3 is fronted by the company set out opposite such jurisdiction in
Part II if any of Schedule 3 (together the NIC Fronters). National Indemnity agrees to use its
reasonable endeavours to amend its agreements with the NIC Fronters so that each NIC Fronter also
writes fifty per cent (50%) of Converium’s Respective Proportion of Specified Risks in the
jurisdiction set out opposite it in Part II if any of Schedule 3 (the NIC Converium Risks), which
shall then be reinsured by National Indemnity.

2A.8 Converium agrees that to the extent the NIC Converium Risks are written by the NIC Fronters on
terms previously agreed with Converium in writing and provided that National Indemnity and each
member of its Group pays to Converium all amounts received by it from the NIC Fronters in relation
to them fronting NIC Converium Risks it will:

(a) pay overriding commissions previously notified to and agreed by Converium in writing due to the
NIC Fronters in respect of the NIC Converium Risks;

(b) provide any security previously notified to and agreed by Converium in writing required by the
NIC Fronters in relation to the NIC Converium Risks (which security shall be provided from the NIC
Fund pro rata to the applicable exposure); and

(c) reinsure National Indemnity’s reinsurance of the NIC Converium Risks on an equivalent basis to
that set out in Clause 3.

2A.9 Converium shall pay National Indemnity commission (the NIC Fronted Commission) for reinsuring
the NIC Converium Risks on the basis set out in Clauses 2A.10 to 2A.12.

2A.10 The amount of NIC Fronted Commission payable by Converium shall be calculated by reference to
the total gross premium income written by the Agents in the period in question in respect of each
NIC Converium Risk after deduction of (i) any original commission or taxes on premiums payable
thereunder but before the deduction of amounts, if any, payable to the Agents under the terms of
the Pool Members’ Agreement and (ii) any premiums payable by the Agents for reinsurance in relation
to the Pool (such amount being referred to as the NIC Relevant Net Premium Income).

2A.11 The amount of NIC Fronted Commission payable by Converium to National Indemnity shall be
calculated by multiplying the NIC Relevant Net Premium Income attributable to NIC Converium Risks
covered by policies written by NIC Fronters by 1 per cent. (or by such percentage as may be agreed
from time to time between National Indemnity and Converium in writing).

2A.12 The amount of NIC Fronted Commission attributable to any calendar quarter shall be due and
payable on (i) the last business day of the immediately following calendar quarter, or (ii) the
date on which a cash distribution is paid by the Agents to Converium under the Pool Members’
Agreement with respect to business written in

Page 11 

 

such calendar quarter, whichever is earlier and shall be deducted by National Indemnity from the
NICO Fund on that date.

	3.	 	Converium’s Reinsurance and Indemnity Obligations

3.1 Immediately upon, and with effect from, the acceptance and/or binding of a Reinsured Risk
by the Agents (or either of them), Munich Re or the relevant member of its Group and National
Indemnity or the relevant member of its Group shall cede to Converium and Converium agrees to
accept by way of reinsurance the quota share percentage set out against such person’s name in
Part I of Schedule 2 or Part I of Schedule 3 of Converium’s Respective Proportion of the
Relevant Risk (the total amount ceded pursuant to this Clause 3.1 shall be the Reinsurance and
the amount ceded in relation to a particular Reinsured Risk by a particular entity shall be the
Reinsurance relating to that Reinsured Risk). Such cession and acceptance shall be effected
immediately and automatically on, and with effect from, the acceptance and/or binding of the
Reinsured Risk in question.

3.2 In consideration of Munich Re and National Indemnity agreeing to enter into this Agreement,
Converium agrees to reinsure and indemnify Munich Re, National Indemnity or the relevant member
of its Group, without limit in time or amount, in respect of the Ultimate Net Loss of Munich
Re, National Indemnity or the relevant member of its Group in respect of, or relating to, each
Reinsured Risk in respect of which a Fronting Insurance Contract is written in such person’s
name. This Agreement shall only apply to the portion of a risk reflecting Converium’s
participation in the Pool Members’ Agreement and in respect of Munich Re, National Indemnity
and each member of such person’s Group shall only apply to the portion of such risk actually
fronted by such person.

3.3 The term Ultimate Net Loss, as used herein, shall mean all amounts paid or agreed to be
paid (including by way of set-off, release or any other form of consideration) by Munich Re,
National Indemnity or the relevant member of such person’s Group listed in Part I of Schedule 2
or Part I of Schedule 3 (or the Agent(s) on behalf of Munich Re, National Indemnity or the
relevant member of such person’s Group listed in Part I of Schedule 2 or Part I of Schedule 3)
in respect of or in relation to Claims and/or Claims-Related Extra Contractual Obligations
relating, in any way, to a Reinsured Risk (or any or all Reinsured Risks) and shall include,
without limit, all adjustment expenses arising from the evaluation, assessment, investigation
and/or settlement of claims other than the salaries of employees and office expenses of Munich
Re or any member of its Group (in the case of Ultimate Net Losses relating to Munich Re or any
member of its Group) or National Indemnity or any member of its Group (in the case of Ultimate
Net Losses relating to National Indemnity or any member of its Group) provided that Converium
shall be entitled to all amounts physically received by way of recoveries/salvages. It is
further understood and agreed that:

	 	(a)	 	any of Munich Re, National Indemnity or the relevant member of
such person’s Group listed in Part I of Schedule 2 or Part I of Schedule 3 shall
be entitled to recover any part of its Ultimate Net

Page 12 

 

	 	 	 	Loss once that has been ascertained without having to wait until its total
Ultimate Net Loss has been ascertained; and
	 
	 	(b)	 	for the avoidance of doubt, notwithstanding any other provision
of this Agreement, it is understood and agreed that neither Munich Re, National
Indemnity nor the relevant member of such person’s Group listed in Part I of
Schedule 2 or Part I of Schedule 3 shall be required to actually pay (in the
sense of making a physical disbursement of money or monies worth) any amounts in
respect of which indemnity is claimed in order to trigger Converium’s indemnity
obligations hereunder.

3.4 If the terms of any reinsurance taken out by the Agents for the benefit of Munich Re,
National Indemnity or a member of such person’s Group in relation to the Pool (a Pool
Reinsurance) cover part or all of any Relevant Risk, the Reinsurance provided for in this
Clause 3 shall not extend to such part of that Relevant Risk provided that to the extent the
Agents are not able to recover under the Pool Reinsurance the Ultimate Net Loss in respect of
such Relevant Risk for any reason other than as a result of a negligent or fraudulent act by
Munich Re, National Indemnity or a member of such person’s Group (provided that for the
avoidance of doubt a negligent or fraudulent act by the Agent or any person appointed by the
Agent to act as agent of Munich Re or National Indemnity shall not be deemed a negligent or
fraudulent act by Munich Re, National Indemnity or a member of such person’s Group for the
purposes of this clause unless the Agent was instructed to undertake such act by Munich Re or
National Indemnity or a member of such person’s Group (other than by instruction approved by
Converium), Converium shall reinsure such Ultimate Net Loss pursuant to this Clause 3.

3.5 The Agents, Munich Re and National Indemnity shall (and shall procure that each relevant
member of such person’s Group shall) take such reasonable action as is necessary to allow the
Agents to make a successful claim under any relevant Pool Reinsurance.

3.6 Converium shall, in all respects, follow the fortunes of Munich Re or National Indemnity or
the member of such person’s group in whose name the relevant Fronting Insurance Contract is
written in relation to all matters falling within the scope of the Reinsurance and the
Reinsurance shall be construed in such a way as to give effect to the parties’ intention that,
to the greatest extent permissible by law:

	 	(a)	 	Munich Re, National Indemnity and the members of their Groups
should retain no economic interest in the Reinsured Risks after the application
of this Reinsurance; and
	 
	 	(b)	 	the economic fortunes of Converium in relation to the Reinsured
Risks should exactly mirror those of Munich Re or National Indemnity or the
member of such person’s Group in whose name the relevant Fronting Insurance
Contract is written.

Page 13 

 

3.7 Accordingly, and without prejudice to the generality of Clause 3.6, Converium shall be
unconditionally bound to follow all settlements, compromises, commutations, policy buy-backs or
other agreements of any nature whatsoever entered into, or agreed, on behalf of Munich Re,
National Indemnity or the members of their Groups by the Agents in relation to the Fronting
Insurance Contracts including any and all ex gratia payments without regard to the question of
whether Munich Re, National Indemnity or the members of their Groups had any liability
whatsoever (whether arguable or otherwise) in respect of such settlements, compromises, etc.

3.8 The parties acknowledge and agree that the obligations of Converium to indemnify:

	 	(a)	 	Munich Re or a member of its Group in whose name the relevant
Fronting Insurance Contract is written under this Agreement shall not in any way
be affected by any actual or alleged breaches by the Agents or National
Indemnity of the terms of this Agreement, the Pool Members’ Agreement or of any
duties (whether in contract tort or equity) owed by the Agents or National
Indemnity to Converium or Munich Re or the members of their Groups.
	 
	 	(b)	 	National Indemnity or a member of its Group in whose name the
relevant Fronting Insurance Contract is written under this Agreement shall not
in any way be affected by any actual or alleged breaches by the Agents or Munich
Re of the terms of this Agreement, the Pool Members’ Agreement or of any duties
(whether in contract tort or equity) owed by the Agents or Munich Re to
Converium or National Indemnity or the members of their Groups.

	4.	 	Duties & Waivers

4.1 Converium acknowledges and agrees that this Agreement is being entered into by the parties
solely as a Fronting Arrangement for the purposes of the Pool Members’ Agreement in order to
facilitate the participation by Converium in the underwriting of risks pursuant to the Pool
Members’ Agreement and that Converium would in any event have participated directly in such
risks pursuant to the terms of the Pool Members’ Agreement. Accordingly, subject to Clause
4.3, Converium agrees:

	 	(a)	 	that it has been afforded the opportunity to conduct its own
investigations and due diligence in relation to all matters relevant and/or
material to this Agreement and the Pool Members’ Agreement (including the
Reinsurance and the Reinsured Risks);
	 
	 	(b)	 	that neither Munich Re, National Indemnity nor the member of such
person’s Group in whose name a Fronting Insurance Contract is written nor its
agents nor any person acting on its behalf assumes, shall accept, and owe, any
duty of care, whether in contract or in tort, nor fiduciary duties to Converium
in relation

Page 14 

 

	 	 	 	to any matters falling within the scope of this Agreement or the Reinsurance
and none of Munich Re, National Indemnity or the member of such person’s
Group in whose name a Fronting Insurance Contract is written shall accept,
or have, any vicarious liability for any acts or omissions of the Agents in
relation thereto;
	 
	 	(c)	 	to waive any duty of disclosure on the part of Munich Re,
National Indemnity or any member of such person’s Group in whose name a relevant
Fronting Insurance Contract is written and/or its agents and/or any other person
acting on behalf of Munich Re, National Indemnity or the member of such person’s
Group in whose name the relevant Fronting Insurance Contract is written in
relation to the Reinsurance and/or the subject-matter of this Agreement
(including, but not limited to, each and every Reinsured Risk and/or the cession
thereof);
	 
	 	(d)	 	to acknowledge and accept the validity of each Fronting Insurance
Contract underwritten by an Agent on behalf of Munich Re, National Indemnity or
the members of their Groups set out in Part I of Schedule 2 and Part I of
Schedule 3 for the benefit of Converium pursuant to (or in purported pursuance
of) this Agreement;
	 
	 	(e)	 	to waive and/or otherwise exclude any right (or remedy) that it
might have, whether now or in the future, to seek or otherwise claim damages in
respect of, or to avoid, rescind or otherwise challenge the validity of any
Fronting Insurance Contract and/or the Reinsurance and/or the cession of, any
Reinsured Risk on any grounds including:

	 	(i)	 	misrepresentation and/or non-disclosure of material facts
(whether innocent, or negligent); and/or
	 
	 	(ii)	 	any breach (or alleged breach) of any duty of utmost good faith
by Munich Re, National Indemnity or the members of their Groups set out in Part
I of Schedule 2 and Part I of Schedule 3 (or any person acting on behalf of
Munich Re, National Indemnity or the members of their Groups set out in Schedule
2 or Schedule 3); and

	 	(f)	 	save to the extent otherwise provided for in this Agreement,
Converium shall indemnify and keep indemnified Munich Re, National Indemnity or
the members of their Groups set out in Part I of Schedule 2 and Part I of
Schedule 3 in respect of any claim, loss or liability of any kind (including
without limitation any liability to the Agents (or either of them) under the
Pool Members’ Agreement) in respect of or in connection with the conduct (or
purported conduct) of the Business.

Page 15 

 

4.2 Unless the contrary is expressly stated, no terms of this Agreement and/or Reinsurance
which are expressed to be warranties (or which might be otherwise have been construed as
warranties but for this Clause 4.2) shall take effect as warranties within the meaning of the
Marine Insurance Act 1906 (which for the purposes of information only provides, in general
circumstances, for the discharge of liability should a warranty be breached) but shall,
instead, be construed and take effect as innominate terms.

4.3 For the avoidance of doubt, however, nothing in this Clause 4 is intended to affect and/or
waive and/or otherwise exclude any rights or remedies which Converium might have, whether now
or in the future, arising out of, or relating to, fraud on the part of any of Munich Re,
National Indemnity or the members of their Groups set out in Part I of Schedule 2 and Part I of
Schedule 3 themselves (as opposed to fraud of the Agents, or either of them, on behalf of
Munich Re, National Indemnity or the members of their Groups set out in Part I of Schedule 2
and Part I of Schedule 3), provided that the parties agree that no fraud on the part of:

	 	(a)	 	National Indemnity or a member of its Group shall impact the
obligations of Converium to Munich Re or a member of its Group; and
	 
	 	(b)	 	Munich Re or a member of its Group shall impact the obligations
of Converium to National Indemnity.

	5.	 	Premiums and Pool Payments

5.1 Subject to Clause 6, each of Munich Re and National Indemnity agrees for itself and as
agent for each member of its Group set out in Part I of Schedule 2 and Part I of Schedule 3
respectively that Converium shall be entitled to all amounts actually received by the Agents
(or either of them) in respect of premiums payable under the terms and conditions of the
Reinsured Risks including, for the avoidance of doubt, any and all adjustment and/or
reinstatement premiums but after the deduction of any commissions or brokerage or other
deductions payable or to be deducted therefrom (Premiums) provided that all amounts payable to
Converium pursuant to Clause 7 of the Pool Members’ Agreement less all amounts payable by
Converium under Clause 7.5 of the Pool Members’ Agreement (and less all amounts due to National
Indemnity or Munich Re, respectively, under Clause 6 as Overriding Commission) shall be paid:

	 	(a)	 	as to fifty per cent directly to National Indemnity (or such
member of its Group listed in Part I of Schedule 3 as National Indemnity shall
advise Converium and the Agents) in relation to Reinsurance Risks covered by
Fronting Insurance Contracts written in the name of National Indemnity or any
member of its Group set out in Part I of Schedule 3 to be held as set out in
Clause 14.2.

5.2 The Agents shall hold such proportion of the Premiums that is equivalent to any Overriding
Commission payable (or potentially payable) by Converium to:

Page 16 

 

	 	(a)	 	Munich Re or any member of its Group and shall pay such amount to
Munich Re in accordance with Clause 6 and shall only pay to Converium the
remaining amount;
	 
	 	(b)	 	National Indemnity or any member of its Group and shall pay such
amount to National Indemnity (or such member of its Group listed in Part I of
Schedule 3 as National Indemnity shall advise Converium and the Agents in
writing prior to such payment being made) in accordance with Clause 6 and shall
only pay the remaining amount as specified in Clause 5.1(a).

5.3 All amounts payable by Converium to the Agents pursuant to Clause 7 of the Pool Members’
Agreement shall, except in the case where the MR Fund contains sufficient monies, when the
amounts shall be paid as to fifty per cent from the MR Fund, be paid by Converium as to fifty
per cent directly to the Agents and as to fifty per cent from the NIC Fund, provided that
National Indemnity shall not be obligated to make any payment described in Clauses 14.17(b) or
(c) which would cause the NIC Fund to be reduced below $ 12,900,000.00 (or, if lower and
Clause 14.8 applies, the amount required to be held in the NIC Fund pursuant to Clause 14.8).
Any shortfall in amounts payable by Converium to the Agents pursuant to Clause 7 of the Pool
Members’ Agreement by reason of either of the foregoing provisos shall be paid by Converium.

	6.	 	Overriding Commission

6.1 In consideration of Munich Re and the members of its Group set out in Part I of Schedule 2
agreeing to front for Converium in respect of the Reinsured Risks, Converium agrees to pay
commission to Munich Re for itself and as agent for such member of its Group (Munich Re
Overriding Commission) in respect of each Reinsured Risk covered by Fronting Insurance
Contracts written by such persons.

6.2 In consideration of National Indemnity and the members of its Group set out in Part I of
Schedule 3 agreeing to front for Converium in respect of the Reinsured Risks, Converium agrees
to pay commission to National Indemnity (or such member of National Indemnity’s Group listed in
Part I of Schedule 3 as National Indemnity shall advise Converium and the Agents) for itself
and as agent for such members of its Group (NIC Overriding Commission and together with Munich
Re Overriding Commission, Overriding Commission) in respect of each Reinsured Risk covered by
Fronting Insurance Contracts written by such persons.

6.3 Subject always to Clause 6.4, the relevant Agent shall calculate the amount of Overriding
Commission payable in respect of all Premiums written in respect of the relevant Reinsured
Risks and shall:

	 	(a)	 	deduct and withhold such amounts from the Premiums payable as set
out in Clause 5.1; and

Page 17 

 

	 	(b)	 	account for, and pay, such amounts to Munich Re or National
Indemnity (or such member of its Group listed in Part I of Schedule 3 as
National Indemnity shall advise Converium and the Agents in writing prior to
such payment being made) in accordance with Schedule 1.

6.4 Converium’s obligation to pay Overriding Commission to Munich Re or National Indemnity
shall be discharged only by the actual receipt by Munich Re or National Indemnity (or such
member of National Indemnity’s Group listed in Part I of Schedule 3 as National Indemnity shall
advise Converium and the Agents) of the amounts due and not by the deduction or withholding by
the Agents (or any of them) of amounts calculated to be due in respect of Overriding Commission
provided that such payment obligation shall be discharged to the extent that the Overriding
Commission (or part thereof) payable to Munich Re or National Indemnity is set-off against
monies due and payable by Munich Re or National Indemnity to the relevant Agent in connection
with the Pool. The receipt of Overriding Commission by Munich Re or National Indemnity in
respect of Fronting Insurance Contracts written by members of such person’s Group shall
discharge Converium’s obligations in respect thereof and Converium shall not be concerned as to
the application of such amounts.

	7.	 	Claims

7.1 The Agents shall manage and perform the administration of the Reinsured Risks and the
negotiation and settlement of Claims thereunder and, in doing so, shall act as agent of Munich
Re, National Indemnity (and the members of their Groups set out in Part I of Schedule 2 and
Part I of Schedule 3) and Converium.

7.2 Without prejudice to the generality of Clause 7.1, all decisions made by the Agents in
relation to the administration of the Reinsured Risks and the negotiation and/or settlement of
Claims thereunder shall be made as agents for Munich Re, National Indemnity (and the members of
their Groups set out in Part I of Schedule 2 and Part I of Schedule 3) and Converium and shall
be deemed to be in the knowledge of all of them (to the greatest extent permitted or allowable
by law).

7.3 As between Converium and any of Munich Re, National Indemnity and the members of their
Groups set out in Part I of Schedule 2 and Part I of Schedule 3, Munich Re, National Indemnity
and the members of their Groups set out in Part I of Schedule 2 and Part I of Schedule 3 shall
have no obligation to provide or disburse funds in respect of any obligations arising under or
in relation to Reinsured Risks. Such funds shall be provided by Converium and, accordingly,
Converium shall ensure that, at all times, sufficient funds are provided to the Agents to
enable all obligations under or in relation to each Reinsured Risk to be met as and when they
fall due.

7.4 Any and all funds provided by Converium pursuant to Clause 7.3 shall, until physically
disbursed to the relevant insured or reinsured under the relevant Reinsured Risk or claimant
against such insured, be held by the Agents as agent for Converium and payment of such funds by
Converium to the Agents shall not

Page 18 

 

constitute a discharge of, or operate to discharge, the obligations of Converium to Munich Re,
National Indemnity or any members of their Groups set out in Part I of Schedule 2 and Part I of
Schedule 3 under the terms of the Reinsurance, which obligations shall be discharged only by
(and to the extent of):

	 	(a)	 	physical disbursements of relevant amounts to insureds and/or
reinsureds under the Reinsured Risks or claimant against such insured; and/or
	 
	 	(b)	 	physical disbursement to Munich Re, National Indemnity or any
members of their Groups set out in Part I of Schedule 2 and Part I of Schedule 3
of amounts due under the Reinsurance to Munich Re, National Indemnity or any
members of their Groups set out in Part I of Schedule 2 and Part I of Schedule
3.

	8.	 	Accounts and Information

8.1 Each Agent agrees to provide accounting and other information to Munich Re, National
Indemnity or Converium in the form and in the manner that may be reasonably required by Munich
Re, National Indemnity or Converium from time to time by giving notice as provided for in
Clause 03.

8.2 Each of the Agents shall keep, in such forms as may be agreed from time to time with (a)
Munich Re and Converium in relation to Relevant Risks for which Munich Re or a member of its
Group provides Fronting Insurance Contracts or (b) National Indemnity and Converium in relation
to Relevant Risks for which National Indemnity or a member of its Group provides Fronting
Insurance Contracts, books, records, underwriting statistics and accounts of all transactions
under this Agreement.

8.3 Munich Re, National Indemnity or Converium may, subject to any confidentiality obligations
of either Agent, at all reasonable times and on reasonable notice appoint its officers,
employees agents, or auditors to inspect, examine and verify at the offices of either Agent
(and to take copies of such books and records) all such accounts, records, books, vouchers,
correspondence and papers relating to any of the functions performed by the relevant Agent
under this Agreement insofar as they relate to the affairs of Munich Re or the members of its
Group set out in Part I of Schedule 2 or National Indemnity or the members of its Group set out
in Part I of Schedule 3 or Converium or a member of its Group respectively, including without
limitation the application of any money belonging to them paid or received by the relevant
Agent and the operation of bank accounts of such persons by the relevant Agent pursuant to this
Agreement, and each of the Agents shall whenever reasonably required at any time during normal
business hours give such officers, employees, servants or agents access to its offices for such
purposes.

8.4 Each of National Indemnity and Munich Re undertakes to agree to supply, to the extent
permissible under any applicable law or regulatory requirements, such information as either
Agent shall reasonably request from time to time in order to facilitate the management of the
Business or the arrangements referred to

Page 19 

 

in Clause 2A (but shall not be obliged to provide any information relating to any business of
each of National Indemnity and Munich Re or any member of its Group to the extent it does not
relate to the Business or the arrangements referred to in Clause 2A).

	9.	 	Relationship between the Parties

9.1 Nothing in this Agreement shall create or constitute a partnership between the parties
hereto or any of them nor, save as expressly provided herein, constitute any one the agent of
another and no party shall do or suffer anything to be done whereby it shall or may be
represented that it is the partner or agent of any other party hereto (save as aforesaid)
unless such party is appointed partner or agent of another party subject to the consent in
writing of every other party to this Agreement.

9.2 The relationship between the parties to this Agreement is as described in this Agreement.
Neither that relationship nor the services to be provided by Global nor any other matter shall
give rise to any fiduciary or equitable obligations which would hinder Global from acting as
contemplated under the terms of this Agreement.

	10.	 	Termination

10.1 For the purposes of this Clause 10, a Trigger Event shall be deemed to have occurred in
relation to a party if:

	 	(a)	 	it ceases to be duly authorised (or has any suspension,
restriction or other limitation imposed in respect of its authority, licence,
approval or permission) in respect of Specified Risks in the jurisdiction in
which it is incorporated or has its principal place of business (home
jurisdiction);
	 
	 	(b)	 	it goes into liquidation whether compulsorily or voluntarily
(otherwise than a voluntary and solvent liquidation for the purpose of
reconstruction or amalgamation pursuant to a scheme previously agreed between
the parties);
	 
	 	(c)	 	it enters into any composition with its creditors generally or
suffers any similar action in consequence of default by it in its obligations in
respect of any indebtedness for borrowed moneys;
	 
	 	(d)	 	an administration order shall be made in respect of such party;
	 
	 	(e)	 	it stops or threatens to stop payment or ceases or threatens to
cease to carry on its business (otherwise than in connection with or in
pursuance of a winding-up for the purpose of a reconstruction or amalgamation
pursuant to a scheme previously agreed between the parties) or is deemed for the
purpose of Section 123 of the Insolvency Act 1986 to be unable to pay its debts;

Page 20 

 

	 	(f)	 	it has an administrative receiver or other receiver or other
similar official appointed over all (or substantially all) of its undertaking
and assets;
	 
	 	(g)	 	it suffers any action similar to any of the events described in
Clauses 10.1(a) to (f) under the laws of any competent jurisdiction;
	 
	 	(h)	 	it has its financial strength rating downgraded below BBB+ (or in
the case of Converium BBB) by Standard & Poor’s Rating Service (S&P) or if such
rating is not available, below such comparable rating as may be reasonably
agreed between the parties, or it requests or agrees that S&P should cease to
rate it;
	 
	 	(i)	 	Converium is subject to a change of control as defined in Clause
15.2 (f) of the Pool Members’ Agreement.

10.2 In the event that a Trigger Event occurs in relation to any of Munich Re or a member of
its Group set out in Part I of Schedule 2 or National Indemnity or a member of its Group set
out in Part I of Schedule 3, the Agents or either of them may suspend entirely with immediate
effect the appointment by the relevant person (the defaulter) pursuant to Clause 2.1(a), in
which case the parties shall seek to agree a basis upon which such suspension might be lifted
and the appointment reinstated. From the time of any such suspension until the time such
agreement is reached, Clause 10.3 shall apply.

10.3 If this Clause 10.3 applies (by reason of Clause 10.2 or 10.7), neither of the Agents
shall (nor shall they have any authority to):

	 	(a)	 	accept Fronting Insurance Contracts in the name of the defaulter
or the person invoking this Clause 10.3 pursuant to Clause 10.7 (as
appropriate);
	 
	 	(b)	 	provide quotations or enter into (or continue) any negotiations
relating to the possible acceptance of, Fronting Insurance Contracts in the name
of the defaulter or the person invoking this Clause 10.3 pursuant to Clause 10.7
(as appropriate); or
	 
	 	(c)	 	agree any amendments to the terms of or otherwise agree any
endorsements to any Fronting Insurance Contract which would, or would be
reasonably likely to, increase materially the gross exposure of the defaulter
under the Fronting Insurance Contract in question.

10.4 In the event that any of Munich Re, National Indemnity or a member of such person’s Group
set out in Part I of Schedule 2 or Part I of Schedule 3 ceases to be duly authorised (or has
any suspension, restriction or other limitation imposed in respect of its authority, licence,
approval or permission) in respect of any Relevant Risk in a jurisdiction set out against such
person’s name in Part I of Schedule 2 or Part I of Schedule 3 (an Applicable Territory) in
circumstances

Page 21 

 

where Clause 10.1(a) does not apply to such person (a Non-Authorisation Event), then the
appointment by such person (the non-authorised person) pursuant to Clause 2.1(a) in relation to
any relevant Applicable Territory shall be suspended with immediate effect, in which case the
parties shall seek to agree the basis upon which such suspension might be lifted and the
relevant part of the appointment reinstated. From the time of any such suspension until the
time such agreement is reached, Clause 10.6 shall apply.

10.5 If Clause 10.4 applies, as an alternative to suspension pursuant to Clause 10.4, Munich Re
or National Indemnity shall have the right to appoint an alternate member of its respective
Group meeting the requirements of the Pool Members’ Agreement to replace a non-authorized
person by notice to Converium and Agents. If Munich Re or National Indemnity appoint an
alternative pursuant to this Clause 10.5, Munich Re or National Indemnity shall procure that
the alternative member of its Group shall enter into an agreement by which it agrees to be
bound by this Agreement as if it were the entity it replaces.

10.6 If this Clause 10.6 applies (by reason of Clause 10.4), neither of the Agents shall (nor
shall they have any authority to):

	 	(a)	 	accept Fronting Insurance Contracts in the name of the
non-authorised person in or relating to the Applicable Territory in question;
	 
	 	(b)	 	provide quotations for, or enter into (or continue) any
negotiations relating to the possible acceptance of, Fronting Insurance
Contracts in the name of the non-authorised person relating to the Applicable
Territory in question; or
	 
	 	(c)	 	agree any amendments to the terms of or otherwise agree any
endorsements to any Fronting Insurance Contract in the name of the
non-authorised person previously written (and which relates to the Applicable
Territory in question) which would, or would be reasonably likely to, increase
materially the gross exposure of the non-authorised person under the Fronting
Insurance Contract in question.

10.7 In the event that:

	 	(a)	 	Converium ceases lawfully to be able to reinsure any Fronting
Insurance Contracts;
	 
	 	(b)	 	Converium’s participation in the arrangements established by the
Pool Members’ Agreement is terminated; or
	 
	 	(c)	 	a Trigger Event occurs in relation to Converium,

then any person making an appointment pursuant to Clause 2.1(a) shall be able to suspend all
appointments or, Converium or either Agent shall be entitled, by written notice to the other
parties, to suspend all appointments pursuant to Clause 2.1(a) in

Page 22 

 

which case the parties shall seek to agree the basis upon which such suspension might be lifted and
the relevant part of the appointment reinstated. From the time of any such suspension until the
time such agreement is reached, Clause 10.3 shall apply.

10.8 For the avoidance of doubt, the Agents’ administrative obligations under Clause 2.1(b) and
their duties of management and administration of the Reinsured Risks and the negotiation and
settlement of Claims under Clause 7 shall not cease by reason of the suspension or termination,
in whole or in part, of an appointment pursuant to Clause 2.1(a) (except to the extent that
continuing to perform the administrative obligations would be inconsistent with such suspension
or termination or that the parties so agree).

10.9 Each party shall notify the other parties upon becoming aware of a Trigger Event in
relation to any of Munich Re, National Indemnity or the members of their Groups set out in Part
I of Schedule 2 or Part I of Schedule 3 or Converium at any time.

10.10 Each of Munich Re and National Indemnity shall notify the other parties upon becoming
aware that the Non-Authorisation Event under Clause 10.4 applies to it or any member of its
Group set out in Part I of Schedule 2 or Part I of Schedule 3 at any time.

10.11 Converium shall notify the other parties upon becoming aware that Clause 10.7(a), (b) or
(c) applies to it, at any time.

10.12 Suspension and/or termination of the appointment pursuant to Clause 2.1(a) in whatever
manner shall in no way affect or limit any accrued rights which any party to this Agreement may
have against the others pursuant to this Agreement or any rights expressly stated to survive
termination of this Agreement.

10.13 Except to the extent that any of (a) Munich Re or (b) National Indemnity, and Converium
agree otherwise (such agreement to be in writing and notified to the Agents), neither the
Reinsurance, nor the obligations of any of Munich Re, National Indemnity or the members of
their Groups set out in Part I of Schedule 2 or Part I of Schedule 3 or Converium, shall
terminate if this Agreement or any part of it is terminated or suspended.

10.14 The appointment of the Agents (or either of them) pursuant to Clause 2.1(a) shall
terminate automatically at any time when a termination of the appointment of the Agent(s) to
provide services under the Pool Members’ Agreement takes effect. Neither Munich Re nor any
member of its Group, National Indemnity or any member of its Group nor Converium shall be
required to make any payment to the Agents (or either of them) in the event of such a
termination save as provided for in the Pool Members’ Agreement.

10.15 The appointment pursuant to Clause 2.1 may not be terminated save as expressly provided
for in this Agreement.

Page 23 

 

10.16 For the avoidance of doubt, the occurrence of a Trigger Event or a Non-Authorisation
Event shall not constitute a breach of this Agreement and, save in the case of fraud, a person
to which a Trigger Event applies shall have no liability pursuant to this Agreement, whether in
damages or otherwise, arising from or in connection with any such event, apart from any loss
suffered by the Agents and/or Converium (excluding indirect, special or consequential loss or
loss of profit, goodwill or business opportunity) directly resulting from a failure by a person
to which a Trigger Event applies to notify Global that such an event applies to it in
accordance with Clause 10.8 or 10.9 (as the case may be) and the Agents continue to write
insurance business on behalf of such person under this Agreement.

	11.	 	Confidentiality

11.1 Every party hereto shall hold in confidence and shall not divulge to any other party or
any third party any Confidential Information nor make any public or press announcement
regarding this Agreement or matters connected herewith except as provided in Clause 11.2, 11.3,
11.4 or (as the case may be) Clause 11.5.

11.2 Notwithstanding the provisions of Clause 11.1, any party may disclose Confidential
Information:

	 	(a)	 	in respect of any party to any other party with the prior written
consent of the first party;
	 
	 	(b)	 	with the consent of the other parties (such consent not to be
unreasonably withheld or delayed);
	 
	 	(c)	 	if and to the extent required by law or for the purpose of any
judicial proceedings;
	 
	 	(d)	 	if and to the extent required or permitted by this Agreement;
	 
	 	(e)	 	if and to the extent required by any securities exchange or
regulatory or governmental body or tax authority to which that party or a member
of its Group is subject, wherever situated;
	 
	 	(f)	 	to any member of its Group and to its officers and employees or
those of such member, in any such case to the extent that such person needs to
know such information in order to manage or monitor its business or in the
performance of his or its duties;
	 
	 	(g)	 	to its professional advisers, auditors and bankers; or
	 
	 	(h)	 	if and to the extent the information has come into the public
domain through no fault of that party.

Page 24 

 

11.3 Notwithstanding Clause 11.1:

	 	(a)	 	each Agent shall, be entitled to provide extracts of this
Agreement to such banks, reinsurers and brokers and other managing agents of
reinsurers in the ordinary course of business as it reasonably deems necessary
for the purpose of carrying out the Business;
	 
	 	(b)	 	any party may give a copy of this Agreement, or a summary of it,
to any insurance company which is a member of any insurance pool constituted by
the Pool Members’ Agreement but not a party hereto.

11.4 Each party shall procure that any person to whom Confidential Information is disclosed
pursuant to Clauses 11.2(f) or (g) complies with the restrictions set out in this Clause 11 as
if such person were a party to this Agreement.

11.5 The provisions of this Clause 11 shall remain in full force and effect notwithstanding the
termination of this Agreement and each party shall remain bound by the provisions of this
Clause 11 for only a period of five years following cessation by both Agents of the provision
of any services to Munich Re or National Indemnity (or any member of such person’s Group)
pursuant to this Agreement.

11.6 Neither Global nor GAI shall be obliged to disclose to any other party or, in making any
decision or taking any action in relation to the Business or the management thereof, to take
into consideration information the disclosure of which by Global or (as the case may be) by GAI
to any other party would or might be a breach of duty or confidence to any other person
excluding the details of any cover written and any other information which another party
requires to be in compliance with applicable law.

	12.	 	Undertakings

12.1 Global shall use all reasonable care and skill in the performance of their respective
obligations under this Agreement and shall comply with all applicable laws relating thereto.

12.2 Each of Munich Re and National Indemnity severally agrees, warrants and undertakes to each
of the Agents and Converium that (i) it and each member of its Group listed in Part I of
Schedule 2 or Part I of Schedule 3 (respectively) has (and so long as the appointment of the
relevant Agent remains in force under this Agreement shall continue to have) power to employ
each of the Agents; (ii) it and each member of its Group listed in Part I of Schedule 2 or Part
I of Schedule 3 (respectively) has and will have all necessary consents, powers and authorities
to authorise each of the Agents to act as its agent as contemplated by this Agreement; (iii) it
has all necessary consents, powers and authorities to enter into this Agreement in accordance
with its terms; and (iv) it has been validly appointed by each member of its Group listed in
Part I of Schedule 2 or Part I of Schedule 3 (respectively) as agent for the purposes of making
the appointment on behalf of

Page 25 

 

such person in Clause 2.1 and any other purpose necessary pursuant to this Agreement.

12.3 Converium agrees, warrants and undertakes to the Agent, Munich Re and National Indemnity
that it has (and so long as the appointment of the Agent remains in force under the Pool
Members’ Agreement shall continue to have) power to employ the Agent and has and will have all
necessary consents, powers and authorities: (i) to enter into this Agreement in accordance
with its terms (including, without limitation, the Reinsurance); and (ii) to authorise the
Agent to act as its agent as contemplated by this Agreement.

12.4 Subject to Munich Re or National Indemnity being fully reimbursed or indemnified (under
Clause 3 or otherwise) by Converium for any loss or liability it may incur, Munich Re or
National Indemnity hereby undertakes to ratify (and to procure that any relevant member of its
Group ratifies) every act performed or thing done by each of the Agents which shall hereafter
be performed or done in exercise or purported exercise of the powers conferred or to be
conferred upon the Agent by this Agreement provided only that such acts are in accordance with
the terms of this Agreement and within the scope of the authority granted to the Agent
hereunder.

12.5 Each of Munich Re and National Indemnity represents and warrants to the Agents and
National Indemnity that those members of its Group marked * in Part I of Schedule 2 or Part I
of Schedule 3 is duly authorised to write all Relevant Risks in the United Kingdom and
undertakes to take all reasonable steps to ensure such authorisations are maintained during the
duration of this Agreement.

12.6 Each of Munich Re and National Indemnity undertakes to notify the Agent and Converium in
writing as soon as reasonably practicable of any changes as to the authorisations (whether in
relation to any Applicable Territory or the United Kingdom) which it or the members of its
Group listed in Part I of Schedule 2 or Part I of Schedule 3 has, or expects to obtain, from
time to time.

	13.	 	Munich Re Security

13.1 Converium shall on or before the 2nd July 2007 (or such later date as Munich Re
may specify) pay to Munich Re the sum of $ 12,900,000.00 , or arrange or cause to be arranged
the issue and delivery to Munich Re of a LOC in the same sum, to be held on the basis set out
in Clause 13.3.

13.2 Any amounts paid or LOC’s issued and delivered pursuant to Clauses , 13.1, 13.4, 13.6 or
13.9 (or because of the definition of Incurred Position) shall be paid to the account of Munich
Re notified to Converium in writing by Munich Re from time to time.

13.3 The amounts held pursuant to Clause 13.2 shall be known as the MR Fund. Such amounts
shall be held by Munich Re as trustee for Converium provided that Munich Re shall be entitled
to make payments from such account and /or LOC(s), as the case may be, in order to pay amounts
which are due:

Page 26 

 

	 	(a)	 	or claimed to be due under Reinsured Risks in respect of which
Fronting Insurance Contracts have been written by it or members of its Group;
	 
	 	(b)	 	to it or members of its Group from Converium under the terms of
the Reinsurance;
	 
	 	(c)	 	to it or members of its Group from Converium in respect of
Overriding Commission; and/or
	 
	 	(d)	 	pursuant to Clause 2A.

13.4 At any time prior to 31 December 2010 that the MR Fund (together with the amount of any
claims paid by the Agents or Munich Re in relation to the Reinsured Risks) is less than the
fifty per cent (50%) of the Incurred Position, within ten Business Days of receiving notice
from Munich Re or the Agents (or, if later, the date on which the Incurred Position is
determined in accordance with Schedule 6), Converium shall pay to Munich Re such additional
amount, or arrange or cause to be arranged the issue and delivery to Munich Re of a LOC in such
amount, or increase or cause to be increased any existing LOC in the MR Fund by such additional
amount as shall be required for the MR Fund to equal fifty per cent (50%) of the Incurred
Position.

13.5 Munich Re shall pay to Converium within ten Business Days of 31 March 2011 (or, if later,
the date on which the profit is determined in accordance with Schedule 4), the profit arising
on any Fronting Insurance Contracts written by Munich Re or any member of its Group calculated
on the basis set out in Clause 13.12, or allow any LOC or LOC’s that has or have been issued
and delivered to Munich Re in accordance with Clauses, 13.1, 13.4, 13.6 or 13.9 (or because of
the definition of Incurred Position) to be reduced, in the aggregate, by an amount equivalent
to such profit. Nothing in this Clause 13.5 shall be construed to require Munich Re to pay any
amount or reduce the LOC’s delivered to Munich Re in accordance with and pursuant to
Converium’s obligations under this Agreement that would cause the MR Fund to be less than the
greater of (a) and (b) below:

	 	(a)	 	the sum of:

	 	(i)	 	100 per cent. of outstanding claims reserves, including reserves
for claims incurred but not reported, maintained by Munich Re or the relevant
member of its Group in accordance with applicable law or regulation in respect
of relevant Reinsured Risks written in the name of such person (the MR
Reserves); plus
	 
	 	(ii)	 	the greater of:

	 	(A)	 	$12,900,000.00 ; and
	 
	 	(B)	 	20% of the MR Reserves; or

Page 27 

 

	 	(b)	 	the minimum amount which is required to allow Munich Re or such
member of its Group to receive credit for the Reinsurance of the Fronting
Insurance Contracts written by it under the laws of the jurisdiction in which
such person is domiciled.

The greater of (a) or (b) above shall be referred to as the Post Profit Incurred Position.

13.6 At any time after 31 December 2010 but prior to 31 December 2014 that the MR Fund is less
than the Post Profit Incurred Position, within ten Business Days of receiving notice from
Munich Re or Agents (or, if later, the date on which the Post Profit Incurred Position is
determined in accordance with Schedule 6), Converium shall pay to Munich Re such additional
amount as shall be required for the MR Fund to equal the Post Profit Incurred Position.

13.7 Munich Re shall pay to Converium, or allow any LOC or LOC’s that has or have been issued
and delivered to Munich Re in accordance with clauses, 13.1, 13.4, 13.6 or 13.9 (or because of
the definition of Incurred Position) to be reduced, in the aggregate, by an equivalent amount,
within ten Business Days of 31 March 2015 (or, if later, within ten Business Days of the date
on which the MR Reserves are determined in accordance with Schedule 6 for that date), the
amount required to reduce the MR Fund to the greater of:

	 	(a)	 	the MR Reserves; or

(b) the minimum amount which is required to allow Munich Re or such member
of its Group to receive credit for the Reinsurance of the Fronting Insurance
Contracts written by it under the laws of the jurisdiction in which such
person is domiciled.

13.8 At any time after 31 March 2015 that the MR Fund is less than the greater of:

	 	(a)	 	the MR Reserves; or
	 
	 	(b)	 	the minimum amount required to allow Munich Re or such member of
its Group to receive credit for the Reinsurance of the Fronting Insurance
Contracts written by it under the laws of the jurisdiction in which such person
is domiciled,

Munich Re may serve a Letter of Credit Notice which shall state the amount of additional security
required to increase the MR Fund to the greater of (a) and (b) above.

13.9 Within ten Business Days of receipt of notice pursuant to Clause 13.8 (or, if later, the
date on which the MR Reserves are determined in accordance with Schedule 6), Converium may
either:

Page 28 

 

	 	(a)	 	arrange or cause to be arranged the issue and delivery to Munich
Re of a Letter of Credit in the amount set out in the Letter of Credit Notice
for the benefit of Munich Re; or
	 
	 	(b)	 	deposit the required additional funds in the MR Fund.

If Converium elects to provide a Letter of Credit in response to the Letter of Credit Notice,
Converium shall, if practicable and if agreed by Munich Re, be entitled to provide the necessary
security by increasing, or causing to be increased, the amount of any existing Letter of Credit by
the amount of the Letter of Credit Notice rather than by issuing and delivering, or causing to be
issued and delivered, a new Letter of Credit). For the avoidance of doubt, nothing in this Clause
shall be construed as limiting the number of Letter of Credit Notices that may be served from time
to time by Munich Re.

13.10 Within ten Business Days of the end of each quarter following 31 December 2014, Munich Re
shall pay to Converium the amount, if any, by which the MR Fund exceeds the greater of:

	 	(a)	 	the MR Reserves; and
	 
	 	(b)	 	the amount required to allow Munich Re or such member of its
Group to receive credit for the Reinsurance of the fronting Insurance Contracts
written by it under the laws of the jurisdiction in which such person is
domiciled.

13.11 In applying Clauses 13.8, 13.9 and 13.10, all currencies shall be converted to US$ at the
relevant exchange rate used by (or to be used by) the Agents for the purpose of the audited
accounts produced for the Pool for the year most recently ended. Clauses 13.4 through 13.10
may be terminated by the agreement Munich Re and Converium without the consent of the other
parties.

13.12 Global shall, by no later than 31 March 2011 deliver to Munich Re and Converium its
calculation of the profit attributable to the Fronting Insurance Contracts written by Munich Re
and the members of its Group calculated on a basis consistent with that used for the purposes
of the audited accounts produced for the Pool in the year ended on 31 December 2010 (the MR
Statement). The MR Statement shall be accompanied by sufficient information to allow Munich Re
and Converium to understand how the profit set out in the MR Statement has been calculated and
the basis upon which it has been calculated (including without limitation the calculation of
the MR IBNR). The process in Clause 15.1 and Schedule 4 shall apply in relation to the MR
Statement.

13.13 In determining profit, Global shall:

	 	(a)	 	calculate each of the items in (a) to (d) inclusive of the
definition of profit using each of US$, Canadian $, € and GBP by allocating
all relevant premiums, claims and reserves to one only of such currencies in
accordance with Global’s current practice, for the

Page 29 

 

	 	 	 	avoidance of doubt profit shall be paid out in each of the four currencies;
and
	 
	 	(b)	 	use the incurred but not reported reserves as reported by Munich
Re and applicable members of its Group for the Reinsured Risks (the MR IBNR).

13.14 If the calculation of profit in any of the four currencies shows a loss, then Global
shall calculate the total profit attributable to the Fronting Insurance Contracts in US$ by
converting to US$ at the relevant exchange rate used by the Agents for the purpose of the
audited accounts produced for the Pool for the year ended 31 December 2010 (the Exchange Rate)
(such amount being the Total $ Distribution).

13.15 If Clause 13.14 applies, the amount of any distribution pursuant to Clause 13.5 (using
the Exchange Rate to calculate the amount of the distribution) shall be limited to the Total $
Distribution and the distribution in one or more of the currencies not in deficit shall be
reduced to ensure that the Total $ Distribution is not exceeded (the distribution of currencies
in which there was a profit shall be reduced by an equal percentage so that the distribution
equals the Total $ Distribution at the Exchange Rate).

13.16 Global shall, by no later than 31 March 2015 deliver to Munich Re and Converium its
calculation of outstanding reserves on claims reported on Reinsured Risks and Munich Re’s
calculation of outstanding reserves on incurred but not reported claims on Reinsured Risks as
of the prior 31 December together with the actuarial calculation of those reserves and
sufficient information to allow Converium, and Munich Re to understand how the reserves were
set. This process shall be repeated within 90 days of the end of each calendar quarter so long
as Clause 13.10 remains in effect.

13.17 The amounts required to be held in the MR Fund shall be reduced by:

	 	(a)	 	fifty per cent of the amount of any Letter of Credit established
by Converium pursuant to Clause 15.5(c)(iii) (or, with the consent of Munich Re
Clause 15.5(c)(iv)) of the Pool Members’ Agreement which relates to the
Reinsured Risks;
	 
	 	(b)	 	fifty per cent of any amount paid by (or on behalf of) Converium
towards the fund held by the Agents on behalf of the Pool in relation claims on
business written during the Period; and
	 
	 	(c)	 	fifty per cent of the amount of any reinsurance premiums paid by
(or on behalf of) Converium in relation to reinsurance taken out by the Agents
in relation to the business of the Pool written during the Period,

provided that the MR Fund shall not be reduced below $12,900,000.00 (or, if lower and Clause 13.8
applies, the amount required to be held in the MR Fund pursuant to Clause 13.8) as a result of the
operation of Clauses 13.17(b) or (c).

Page 30 

 

13.18 To the extent that the MR Fund consists of monies Munich Re shall pay to Converium an
amount equal to the interest which is deemed to have accrued on that part of the MR Fund in the
quarter to 31 March, 30 June, 30 September and 31 December in each year within two Business
Days of such date. The amount of such interest shall be calculated on a daily basis. Interest
shall accrue on the amounts in the MR Fund in each quarter at a rate equal to the “yield on the
one year US Treasury Notes” on the first Business Day after the 31 March, 30 June, 30 September
or 31 December ending the previous quarter as shown in the Wall Street Journal for the close of
that first Business Day of the calendar quarter. For the purposes of the foregoing sentence,
the “one year US Treasury Yield” shall mean the annual yield on the U. S. Treasury Bond or Note
maturing on the day nearest the first anniversary of that first Business Day of that calendar
quarter. If there are two bonds or notes that are equally near the third anniversary, the
annual yield of the instruments will be averaged. No interest shall be paid by Munich Re to
Converium in respect of any LOC issued and delivered to Munich Re in accordance with and
pursuant to Converium’s obligations under this Agreement.

13.19 References in this Clause 13 to reserves for claims incurred but not reported shall mean
the amount of such reserves required to be kept in accordance with actuarial best practice in
the relevant jurisdiction and the guidance produced by relevant actuarial bodies. Converium
shall be provided with sufficient information at all times to understand how such reserves have
been calculated and the basis on which they have been calculated. Converium may challenge the
calculation of any such reserve as set out in Schedule 6 and until such dispute is resolved in
accordance with Schedule 6, the provision of this Clause 13 for which the reserves were
provided shall have no effect.

14. National Indemnity Security

14.1 Converium shall on or before 2nd July 2007 (or such later date as National Indemnity may
specify) pay to National Indemnity the sum of $12,900,000.00 to be held on the basis set out
in Clause 14.3.

14.2 Any amounts paid pursuant to Clauses 5.1(a), 14.1, 14.4, 14.6 or 14.9 or because of the
definition of Incurred Position, shall be paid to the account of National Indemnity notified to
Converium in writing by National Indemnity from time to time.

14.3 The amounts held pursuant to Clause 14.2 shall be known as the NICO Fund. Such amounts
shall be held by National Indemnity as trustee for Converium provided that National Indemnity
shall be entitled to make payments from such account in order to pay amounts which are due:

	 	(a)	 	or claimed to be due under Reinsured Risks in respect of which
Fronting Insurance Contracts have been written by it or members of its Group;
	 
	 	(b)	 	to it or members of its Group from Converium under the terms of
the Reinsurance;

Page 31 

 

	 	(c)	 	to it or members of its Group from Converium in respect of
Overriding Commission; and/or
	 
	 	(d)	 	pursuant to Clause 2A.

14.4 At any time prior to 31 December 2010 that the NICO Fund together with the amount of any
claims paid by the Agents or National Indemnity in relation to the Reinsured Risks is less than
fifty per cent (50%) of the Incurred Position, within ten Business Days of receiving notice
from National Indemnity or the Agents (or, if later, the date on which the Incurred Position is
determined in accordance with Schedule 6), Converium shall pay to National Indemnity such
additional amount as shall be required for the NICO Fund to equal fifty per cent (50%) of the
Incurred Position.

14.5 National Indemnity shall pay to Converium within ten Business Days of 31 March 2011 (or,
if later, the date on which the profit is determined in accordance with Schedule 5), the profit
arising on any Fronting Insurance Contracts written by National Indemnity or any member of its
Group calculated on the basis set out in Clause 14.12. Nothing in this clause shall be
construed to require National Indemnity to pay any amount which would cause the NICO Fund to be
less than the greater of (a) and (b) below:

	 	(a)	 	the sum of:

	 	(i)	 	100 per cent. of outstanding claims reserves, including reserves
for claims incurred but not reported maintained by National Indemnity or the
relevant member of its Group in accordance with applicable laws in respect of
relevant Reinsured Risks written in the name of the relevant person (the NIC
Reserves); plus
	 
	 	(ii)	 	the greater of:

	 	(A)	 	$12,900,000.00 ; and
	 
	 	(B)	 	20% of the NIC Reserves; and

	 	(b)	 	the minimum amount which is required to allow National Indemnity
or such member of its Group to receive credit for the Reinsurance of the
Fronting Insurance Contracts written by it under the laws of the jurisdiction in
which each person is domiciled.

The greater of (a) or (b) above shall be referred to as the NIC Post Profit Incurred Position.

14.6 At any time after 31 December 2010 but prior to 31 December 2014 that the NICO Fund is
less than the NIC Post Profit Incurred Position, within ten Business Days of receiving notice
from National Indemnity or Agents (or, if later, the date on which the Post Profit Incurred
Position is determined in accordance with Schedule 6), Converium shall pay to National
Indemnity such additional

Page 32 

 

amount as shall be required for the NICO Fund to equal the Post Profit Incurred Position.

14.7 National Indemnity shall pay to Converium within ten Business Days of 31 March 2015 (or,
if later, within ten Business Days of the date on which the NIC Reserves are determined in
accordance with Schedule 6 for that date), an amount as shall be required to reduce the NIC
Fund to the greater of:

	 	(a)	 	the NIC Reserves; or
	 
	 	(b)	 	the minimum amount which is required to allow National Indemnity
or such member of its Group to receive credit for the Reinsurance of the
Fronting Insurance Contracts written by it under the laws of the jurisdiction in
which such person is domiciled.

14.8 At any time after 31 March 2015 that the NICO Fund is less than the greater of:

	 	(a)	 	the NIC Reserves; or

	 	(b)	 	the minimum amount required to allow National Indemnity or such
member of its Group to receive credit for the Reinsurance of the Fronting
Insurance Contracts written by it under the laws of the jurisdiction in which
such person is domiciled,

National Indemnity may serve a Letter of Credit Notice which shall state the amount of additional
security required to increase the NICO Fund to the greater of (a) and (b) above.

14.9 Within ten Business Days of receipt of a notice pursuant to Clause 14.8 (or, if later, the
date on which the NIC Reserves are determined in accordance with Schedule 6), Converium may
either:

	 	(a)	 	arrange or cause to be arranged the issue and delivery to
National Indemnity of a Letter of Credit in the amount set out in the Letter of
Credit Notice for the benefit of National Indemnity; or
	 
	 	(b)	 	deposit the required additional funds in the NICO Fund.

If Converium elects to provide a Letter of Credit in response to the Letter of Credit Notice,
Converium shall, if practicable and if agreed by NICO, be entitled to provide the necessary
security by increasing, or causing to be increased, the amount of any existing Letter of Credit by
the amount of the Letter of Credit Notice rather than by issuing and delivering, or causing to be
issued and delivered, a new Letter of Credit). For the avoidance of doubt, nothing in this Clause
shall be construed as limiting the number of Letter of Credit Notices that may be served from time
to time by NICO.

Page 33 

 

14.10 Within ten Business Days of the end of each quarter following 31 December 2014, National
Indemnity shall pay to Converium the amount, if any, by which the NICO Fund exceeds the greater
of:

	 	(a)	 	the NIC Reserves; and
	 
	 	(b)	 	the amount required to allow National Indemnity or such member of
its Group to receive credit for the Reinsurance of the Fronting Insurance
Contracts written by it under the laws of the jurisdiction in which such person
is domiciled.

14.11 In applying Clauses 14.8, 14.9 and 14.10, all currencies shall be converted to US$ at the
relevant exchange rate used by (or to be used by) the Agents for the purpose of the audited
accounts produced for the Pool for the year most recently ended. Clauses 14.4 through 14.10 may
be terminated by National Indemnity and Converium without the consent of the other parties.

14.12 Global shall, by no later than 31 March 2011 deliver to National Indemnity and Converium
its calculation of the profit attributable to the Fronting Insurance Contracts written by
National Indemnity and the members of its Group calculated on a basis consistent with that used
for the purposes of the audited accounts produced for the Pool in the three years ended on 31
December 2010 (the NIC Statement). The National Indemnity Statement shall be accompanied by
sufficient information to allow National Indemnity and Converium to understand how the profit
set out in the NIC Statement has been calculated and the basis upon which it has been
calculated (including without limitation the calculation of the NIC IBNR). The process in
Clause 15.2 and Schedule 5 shall apply in relation to the NIC Statement.

14.13 In determining profit, Global shall:

	 	(a)	 	calculate each of the items in (a) to (d) inclusive of the
definition of profit using each of US$, Canadian $, € and GBP by allocating
all relevant premiums, claims and reserves to one only of such currencies in
accordance with Global’s current practice, for the avoidance of doubt profit
shall be paid out in each of the four currencies; and
	 
	 	(b)	 	use the incurred but not reported reserves as reported by
National Indemnity and applicable members of its Group for the Reinsured Risks
(the NIC IBNR).

14.14 If the calculation of profit in any of the four currencies shows a loss, then Global
shall calculate the total profit attributable to the Fronting Insurance Contracts in US$ by
converting to US$ at the relevant exchange rate used by the Agents for the purpose of the
audited accounts produced for the Pool for the year ended 31 December 2010 (the Exchange Rate)
(such amount being the Total $ Distribution).

Page 34 

 

14.15 If Clause 14.14 applies, the amount of any distribution pursuant to Clause 14.5 (using
the Exchange Rate to calculate the amount of the distribution) shall be limited to the Total $
Distribution and the distribution in one or more of the currencies not in deficit shall be
reduced to ensure that the Total $ Distribution is not exceeded (the distribution of currencies
in which there was a profit shall be reduced by an equal percentage so that the distribution
equals the Total $ Distribution at the Exchange Rate).

14.16 Global shall, by no later than 31 March 2015 deliver to National Indemnity and Converium
its calculation of outstanding reserves on claims reported on Reinsured Risks and National
Indemnity’s calculation of outstanding reserves on incurred but not reported claims on
Reinsured Risks as of the prior 31 December together with the actuarial calculation of those
reserves and sufficient information to allow Converium, and National Indemnity to understand
how the reserves were set. This process shall be repeated within 90 days of the end of each
calendar quarter so long as Clause 14.10 remains in effect.

14.17 The amounts required to be held in the NIC Fund shall be reduced by:

	 	(a)	 	fifty percent of the amount of the Letter of Credit established
by Converium pursuant to Clause 15.5(c)(iii) (or, with the consent of NIC Clause
15.5(c)(iv)) of the Pool Members’ Agreement which relates to the Reinsured
Risks;
	 
	 	(b)	 	fifty per cent of any amount paid by (or on behalf of) Converium
towards the fund held by the [Agents on behalf of the] Pool in relation claims
on business written during the Period; and
	 
	 	(c)	 	fifty per cent of the amount of any reinsurance premiums paid by
(or on behalf of) Converium in relation to reinsurance taken out by the Agents
in relation to the business of the Pool written during the Period

provided that the NIC Fund shall not be reduced below $12,900,000.00 (or if lower and Clause 14.8
applies, the amount required to be held in the NIC Fund pursuant to Clause 14.8) as a result of the
operation of Clauses 14.17(b) or (c).

14.18 National Indemnity shall pay to Converium an amount equal to the interest which is deemed
to have accrued on the NIC Fund in the quarter to 31 March, 30 June, 30 September and 31
December in each year within two Business Days of such date. The amount of such interest shall
be calculated on a daily basis. Interest shall accrue on the amounts in the NIC Fund in each
quarter at a rate equal to the “yield on the one year US Treasury Notes” on the first Business
Day after the 31 March, 30 June, 30 September or 31 December ending the previous quarter as
shown in the Wall Street Journal for the close of that first Business Day of the calendar
quarter. For the purposes of the foregoing sentence, the “one year US Treasury Yield” shall
mean the annual yield on the U.S. Treasury Bond or Note maturing on the day nearest the first
anniversary of that first Business Day of that calendar quarter. If there are two bonds or
notes that are equally near the third anniversary, the annual yield of the instruments will be
averaged.

Page 35 

 

14.19 References in this Clause 14 to reserves for claims incurred but not reported shall mean
the amount of such reserves required to be kept in accordance with actuarial best practice in
the relevant jurisdiction and guidance produced by relevant actuarial bodies in the
jurisdiction. Converium shall be provided with sufficient information at all times to
understand how such reserves have been calculated and the basis on which they have been
calculated. Converium may challenge the calculation of any such reserve as set out in Schedule
6 and until such dispute is resolved in accordance with Schedule 6, the provision of this
Clause 14 for which the reserves were provided shall have no effect.

15. Dispute Resolution

15.1 Within thirty (30) days of receipt of Global’s calculations under Clause 13, either
Converium or Munich Re may challenge Global’s calculations under Clause 13. In that event, the
dispute shall be settled as provided in Schedule 6 or in the case of the calculation of profit,
Schedule 4.

15.2 Within thirty (30) days of receipt of Global’s calculations under Clause 14, either
Converium or National Indemnity may challenge Agents’ calculations under Clause 14. In that
event, the dispute shall be settled as provided in Schedule 6 or in the case of the calculation
of profit, Schedule 5.

16. Letters of Credit and Authority

16.1 Notwithstanding any other provision of this Agreement, National Indemnity or Munich Re
may, at any time, draw down upon any Letter of Credit provided by or on behalf Converium
pursuant to Clause 13 or Clause 14, in order to:

	 	(a)	 	fund the payment of amounts due or claimed to be due under
Reinsured Risks in respect of which Fronting Insurance Contracts have been
written by it or members of its Group;
	 
	 	(b)	 	pay any amounts which are due to it or any member of its Group
from Converium under the terms of the Reinsurance; and/or
	 
	 	(c)	 	pay any amounts which are due to it or any member of its Group
from Converium in respect of Overriding Commission.

16.2 Any bank issuing a Letter of Credit relating to this Agreement shall be unconditionally
obliged to accede to any request made by or on behalf of Munich Re or National Indemnity (as
appropriate) to draw down on such Letter of Credit provided only that such bank is satisfied
that such request is made by, or with the proper authority of, Munich Re or National Indemnity
(as appropriate) and/or its authorised representatives (who shall not include the Agent or any
replacements).

Each of Munich Re and National Indemnity hereby grants the Agent authority to act as their
respective agents in taking all necessary action on its behalf to exercise its

Page 36 

 

rights under Clauses 13 and 14, including (without limitation) the service of a Letter of Credit
Notice, but nothing herein shall be construed as granting the Agent any authority with respect to
disputes under Clauses 15.1 or 15.2 or Schedules 4, 5 or 6.

17. Change of Control

In the event that Converium undergoes a change of control, such that 50.1% or more of the voting
stock of Converium Holdings AG becomes owned by a single shareholder and the resulting merged
entity or group of entities has the same or a worse credit-rating issued to it by Standard and
Poor’s than A-, or the then equivalent, at any time after the said change of control, then the
parties hereto agree that the date of 31 December 2014 as set out in Articles 13.10 and 14.10
herein shall be changed forthwith to 31 December 2015 and the payments provided for shall be
effected in accordance with that amended date.

If the above provision has come into effect, then, if at any time after the said change of control
Converium or the merged entity or group of entities receives an improved credit rating from
Standard and Poor’s such that it has a credit rating of better than A- or the then equivalent, then
the provisions of the above-mentioned Articles 13.10 and 14.10 shall be revert immediately to
provide for payments, if any due, to made at the end of each quarter following 31 December 2014.

18. SET-OFF

18.1 National Indemnity may set off any amount due to it from Converium against any amount owed by
National Indemnity or any member of its Group to Converium under this Agreement.

18.2 Munich Re may set off any amount due to it from Converium against any amount owed by Munich Re
or any member of its Group to Converium under this Agreement.

19. Regulatory Matters

19.1 The parties shall co-operate with each other to ensure that all information necessary or
desirable for making (or responding to any requests for further information following) any
regulatory notification or filing made in respect of this Agreement, or any agreement, arrangement
or concerted practice of which it forms part, is supplied to the party dealing with such
notification or filing and that they are properly, accurately and promptly made.

19.2 The parties will each procure that any other registrations, filings and/or submissions
required under the laws or regulations of any jurisdiction in respect of the Agreement or any
Fronting Insurance Contract are made.

20. Waiver of Obligations

20.1 Waiver by any party of any default by any other party in the performance of any obligation of
such other party hereunder shall not affect such party’s rights in respect of any other default nor
any subsequent default of the same or of a different

Page 37 

 

kind nor shall any delay or omission of any party to exercise any right arising from any default
affect or prejudice that party’s rights as to the same or any future default. Waiver by one party
of any default by any other party shall not constitute a waiver of such default on the part of or
on behalf of any other party.

20.2 Subject to Clause 20.3, no claim shall be made by Converium against any officer, employee,
agent or sub-contractor of either Agent in respect of any matter arising in respect of this
Agreement, save in the case of criminal actions or omissions, fraud or wilful misconduct.

20.3 Clause 20.2 shall not preclude the Agents from making claims against any of its agents or
sub-contractors on behalf of Converium, National Indemnity or Munich Re or the members of their
Groups.

21. Amendment and Representations

21.1 Any amendment to any term of this Agreement shall be in writing and signed by the authorised
representatives of the parties hereto provided that rights and obligations between Converium and
(a) Munich Re or (b) National Indemnity may be amended by written agreement between Converium and
such person.

21.2 This Agreement sets out the entire agreement and understanding between the parties in relation
to the Business and the arrangements in Clause 2A. It is agreed that no party has entered into
this Agreement in reliance upon, or been induced to enter into this Agreement by, any
representation, warranty or undertaking of any other party hereto (whether express or implied and
whether pursuant to statute or otherwise) which is not set out in this Agreement and to the extent
that it may have done so, it hereby waives (on behalf of itself and the members of its Group) all
rights, remedies and claims it may have in respect thereto. A party may claim in contract for
breach of warranty under this Agreement but shall otherwise have no claim or remedy in respect of
misrepresentation (whether negligent or otherwise, and whether made prior to, and/or in, this
Agreement) or untrue statement made by any other party provided that this Clause 0 shall not
exclude any liability for, or remedy in respect of, any fraud including, without limitation,
fraudulent misrepresentation by any party (or (where relevant) any member of its Group).

22. Assignment

No party shall sell, transfer or encumber all or any of its rights or obligations under this
Agreement without the prior written consent of all the other parties.

23. Notices and Communications

23.1 Notices under this Agreement shall be sent to a party at its address and for the attention of
the individual set out in Clause 0 provided that a party may change its notice details on giving
notice to the other parties of the change in accordance with this Clause 03. That notice shall
only be effective on the date falling five clear Business Days after the notification has been
received or such later date as may be specified in the notice.

Page 38 

 

23.2 All notices or other communications required for the purposes of this Agreement shall be in
English and shall be given or sent by hand, facsimile, first class post or airmail to the parties
and shall be deemed to be received: (i) if given by hand, at the time of delivery; or (ii) if sent
by facsimile; at the time when the sender receives from the recipient facsimile machine or from the
addressee of the notice confirmation of receipt of the whole of the facsimile; or (iii) if sent by
first class post, 24 hours after posting; or (iv) if sent by airmail, 6 clear Business Days after
the date of posting.

23.3 Notices under this Agreement shall be sent to the following addresses or facsimile numbers for
the attention of the person indicated:

	 	 	 	 	 
	Party	 	Title of individual/address	 	Facsimile Number
	National Indemnity
(for itself or as
agent for any
member of its
Group)

	 	Attention: General Counsel

100 First Stamford Place

Stamford, CT,

USA 06092
	 	+1-203-363-5221
	 
	 	 	 	 
	Munich Re
(for itself or as
agent for any
member of its
Group)

	 	Attention: Doris Höpke
(Head of Aviation and Space)
Königinstraße 107
80802 München
Germany
	 	+49-89- 3891-4278
	 
	 	 	 	 
	Converium

	 	Attention: Chris Bell/Christian

Felderer

General Guisan – Quai 26

8022, Zurich

Switzerland
	 	+41-1-639-9066
	 
	 	 	 	 
	Global

	 	Attention: Company Secretary
Fitzwilliam House
10 St. Mary Axe
London EC3A 8EQ
	 	+44 20 7369 2840

23.4 Different persons may be authorised to give or receive instructions for different purposes,
and such persons may include officers of corporations other than the parties hereto, authorised in
that regard by the board of the relevant party. A certified copy of a resolution of the board of
Munich Re, National Indemnity or Converium or the relevant member of such person’s Group (or with
respect to National Indemnity and members of its Group, the Executive Committee of the board of
such entity) may be received and accepted by the Agent as conclusive evidence of the authority of
any person to act and may be considered in full force and effect until receipt of written notice to
the contrary.

Page 39 

 

24. Governing Law and Arbitration

24.1 This Agreement and the relationship between the parties shall be governed by and interpreted
in accordance with the law of England and Wales.

24.2 Save as set out in Schedules 4, 5 and 6 each party to this Agreement irrevocably agrees that
the courts of England are to have exclusive jurisdiction to settle any dispute (including claims
for set-off and counterclaims) which may arise in connection with the validity, effect,
interpretation or performance of, or the legal relationships established by, this Agreement or
otherwise in connection with this Agreement and for such purposes irrevocably submits to the
jurisdiction of such courts.

24.3 All parties agree that a final judgment or order of any court referred to in Clause 0 in
connection with this Agreement is conclusive and binding on it and may be entered against it in the
courts of any other jurisdiction.

25. Costs

25.1 Each party shall be responsible for the legal and other professional charges and expenses
(including Value Added Tax) incurred by it in connection with the preparation and negotiation of
this Agreement.

25.2 Any costs and expenses which arise pursuant to the terms of the Pool Members Agreement solely
as a result of the operation of this Agreement and which would not have arisen had the Pool Members
Agreement been effected on the basis existing prior to this Agreement shall be paid by Converium.

26. Enforceability

26.1 If any provision of this Agreement or any part thereof:

	 	(a)	 	purports to exclude or restrict or limit any liability and such
exclusion or restriction or limitation is prohibited or rendered void or
unenforceable by any legislation to which it is subject; or
	 
	 	(b)	 	is itself prohibited or rendered void or unenforceable by any
legislation to which it is subject,

then the exclusion, restriction or limitation or the provision or part thereof in question shall be
so prohibited or rendered void or unenforceable to the extent to which it is thus prohibited or
rendered void or unenforceable and no further and the validity or enforceability of any other part
of this Agreement shall not thereby be affected.

27. Relationship with pool members’ agreement

27.1 This Agreement shall constitute a Fronting Arrangement for the purposes of the Pool Members’
Agreement and save as set out in this Agreement Converium shall effect all payments under Clause
9.1(f) (subject to Clauses 9.1(g) and (h)) of the Pool Members’ Agreement as if it is a Nominating
Insurer.

Page 40 

 

27.2 Subject to Clause 0, as between Converium and the Agent, the terms of this Agreement are
without prejudice to their rights and obligations under the Pool Members’ Agreement.

27.3 Converium acknowledges that the terms of the Indemnity (as defined in Clause 20 of the Pool
Members’ Agreement) shall apply (mutatis mutandis) to any claims, losses, expenses and liabilities
properly made against or incurred by Indemnified Directors (as defined therein) in the purported
execution of and discharge of their duties with respect to the performance of services under this
Agreement.

27.4 Converium acknowledges that Clause 4.2 of the Pool Members’ Agreement shall apply to any
losses, liabilities or expenses of the Agent (or a wholly-owned subsidiary of Global appointed
pursuant to Clause 2.5) under this Agreement.

28. No Rights Under Contracts (Rights of Third Parties) Act 1999

A person who is not a party to this Agreement is not intended to have any right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any of its terms, save in respect of Clause 0
conferring the rights and benefits of indemnities on the Indemnified Directors and Clause 0
conferring rights and benefits on employees, agents or sub-contractors of either Agent (each such
party being for the purposes of this Clause 28 a Third Party), which shall be enforceable by such
persons by way of proceedings in the courts specified in Clause 04 subject to and in accordance
with the Contracts (Rights of Third Parties) Act 1999, and Clauses 0 and 20.2 and this Clause 28
shall not be varied by the parties to this Agreement without the consent of each relevant Third
Party. Any other provision of this Agreement may be varied or revoked without such consent.

29. Counterparts

This Agreement may be executed in any number of counterparts and by the parties to it on separate
counterparts, each of which is an original but all of which together constitute one and the same
instrument.

Page 41 

 

SCHEDULE 1

AMOUNT AND BASIS OF CALCULATION OF OVERRIDING

COMMISSION

1. Introductory

This Schedule sets out further terms and principles applicable to the calculation and payment of
Overriding Commission in accordance with Clause 6.

2. Procedure And Amounts

2.1 The amount of Overriding Commission payable by Converium shall be calculated by reference to
the total gross premium income written by the Agent in the period in question in respect of each
Reinsured Risk after deduction of any (i) original commission or taxes on premiums payable
thereunder but before the deduction of amounts, if any, payable to the Agent under the terms of the
Pool Members’ Agreement and (ii) any premiums payable for reinsurance in relation to the Pool by
the Agents (such amount being referred to as the Relevant Net Premium Income).

2.2 The amount of Overriding Commission payable by Converium to National Indemnity shall be
calculated by multiplying the Relevant Net Premium Income attributable to Reinsured Risks covered
by Fronting Insurance Contracts written by National Indemnity or members of its Group by 4 per
cent. (or by such percentage as may be agreed from time to time between National Indemnity and
Converium).

2.3 The amount of Overriding Commission payable by Converium to Munich Re shall be calculated by
multiplying the Relevant Net Premium Income attributable to Reinsured Risks covered by Fronting
Insurance Contracts written by Munich Re or members of its Group by 4 per cent. (or by such
percentage as may be agreed from time to time between Munich Re and Converium).

2.4 Subject to Clause 6.2, the amount of Overriding Commission attributable to any calendar quarter
shall be due and payable on (i) the last business day of the immediately following calendar
quarter, or (ii) the date on which a cash distribution is paid by the Agents to Converium under the
Pool Members’ Agreement with respect to business written in such calendar quarter, whichever is
earlier and shall be deducted by National Indemnity from the NICO Fund or by Munich Re from the MR
Fund on that date.

Page 42 

 

SCHEDULE 2

MUNICH RE GROUP FRONTING

Part I

Munich Re Group Fronters

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	4. Member of	 	 
	 	 	 	 	 	 	Munich Re	 	 
	 	 	 	 	 	 	Group in whose	 	5. Percentage
	 	 	 	 	 	 	name Fronting	 	of
	1. Agent	 	 	 	 	 	Insurance	 	Converium’s
	Accepting	 	 	 	 	 	Contracts should	 	Respective
	Business	 	2. Jurisdiction	 	3. Business	 	be written	 	Proportion
	Global
	 	Worldwide, subject to licensing	 	Business written in	 	 	 	 
	 
	 	regulations	 	the UK	 	GRLK	 	50

GR LK means Great Lakes Reinsurance (UK) plc

The companies, jurisdictions and business listed in columns 2-4 respectively of this may be amended
or added to with the written agreement (in such person’s absolute discretion) of Converium, Global
and Munich Re provided that the amendment would not result in a Trigger Event occurring, and that
all relevant Fronting Insurance Contracts written after the date of the agreement are written in
the name of the replacement companies, jurisdictions and business.

Page 43 

 

SCHEDULE 3

NATIONAL INDEMNITY GROUP FRONTING

Part I

National Indemnity Group Fronters

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	4. Member	 	 
	 	 	 	 	 	 	of National	 	 
	 	 	 	 	 	 	Indemnity	 	 
	 	 	 	 	 	 	Group in	 	 
	 	 	 	 	 	 	whose name	 	 
	 	 	 	 	 	 	Fronting	 	5. Percentage
	 	 	 	 	 	 	Insurance	 	of
	1. Agent	 	 	 	 	 	Contracts	 	Converium’s
	Accepting	 	 	 	 	 	should be	 	Respective
	Business	 	2. Jurisdiction	 	3. Business	 	written	 	Proportion
	Global

	 	Worldwide, subject
to licensing
restrictions
	 	Business written in

the UK
	 	BHII
	 	 	50	 

BHII means Berkshire Hathaway International Insurance Ltd.

The companies, jurisdictions and business listed in columns 2-4 respectively of this Schedule may
be amended or added to with the written agreement (in such person’s absolute discretion) of
Converium, Global and NIC provided that the amendment would not result in a Trigger Event
occurring, and that all relevant Fronting Insurance Contracts written after the date of the
agreement are written in the name of the replacement companies, jurisdictions and business.

Page 44 

 

Part II

Jurisdictions in which National Indemnity is fronted

	 	 	 	 	 	 	 
	1. Agent	 	 	 	 	 	 
	Accepting	 	 	 	 	 	4. Fronter for
	Business	 	2. Jurisdiction	 	3. Business	 	National Indemnity
	Global

	 	Colombia and
Venezuela written
in the UK
	 	Business written in

the UK
	 	Royal & Sun Alliance subject to
licensing
restrictions.
	 
	 	 	 	 	 	 
	Global

	 	US Surplus lines

(except where

written in BHII –

currently

California only)
	 	Business written in

the UK
	 	The Marine

Insurance Company

Limited

Page 45 

 

SCHEDULE 4

MR STATEMENT DISPUTE RESOLUTION MECHANISM

1. Each of Munich Re or Converium may request from the Agents such additional information as it
reasonably requires to confirm whether it agrees with the MR Statement and the Agents or Munich Re
shall provide such information, to the extent they have it or are entitled to it, promptly and in
any case within 5 Business Days of the request.

2. Munich Re or Converium may notify the Agents and Munich Re or Converium (as appropriate) in
writing (such notification being an Objection Notice) within thirty (30) days after receipt that is
disputes the MR Statement. Any notice indicating that Munich Re or Converium does not accept the
MR Statement shall only be valid for the purposes of this Agreement if it sets out the reasons why
the person serving the notice believes the MR Statement does not correctly state the profits
attributable to the Fronting Insurance Contracts written by Munich Re and the members of its Group
calculated in accordance with Clause 13 and specifies the adjustments which, in such person’s
opinion, should be made to the MR Statement. The validity of any such notice shall be a matter for
determination by the Independent Firm.

3. If an Objection Notice is served in accordance with 2 above, then Munich Re and Converium shall
use all reasonable endeavours (in conjunction with the Agents):

	(a)	 	to meet and discuss the objections in the Objection Notice; and
	 
	(b)	 	to reach agreement upon the adjustments (if any) required to be made to the MR Statement,
within a period of five (5) Business Days after receipt by the Agents of the Objection Notice.

4. If both Munich Re and Converium notify the Agents in writing that they are satisfied with the MR
Statement (either as originally submitted or after adjustments agreed between Munich Re and
Converium pursuant to 3 above) or if neither Munich Re or Converium gives a valid Objection Notice
within the thirty (30) day period referred to in 2 above, then the MR Statement (as so adjusted, if
applicable) shall be final and binding for the purposes of this agreement.

5. If Converium and Munich Re do not reach agreement within five (5) Business Days of receipt by
the Agents of the Objection Notice, then the matters in dispute may be referred (on the application
of either the Converium or Munich Re) for determination by such firm of actuaries of international
standing as shall be agreed by Converium and Munich Re or, failing agreement, appointed by the
President for the time being of the Institute of Actuaries in England and Wales on the application
of Converium or Munich Re (the Independent Firm). Converium and Munich Re shall use all reasonable
endeavours to agree with the Independent Firm the precise terms of reference to apply to its role
as soon as reasonably practicable following a referral to the Independent Firm. Converium and
Munich Re shall procure that the Agents

Page 46 

 

comply with any reasonable requests of the Independent Firm. The following general terms of
reference and procedure shall apply in any event:

	(a)	 	Converium and Munich Re shall each prepare a written statement within five (5) days of the
formal appointment of the Independent Firm on the matters in dispute which (together with the
relevant supporting documents) shall be submitted to the Independent Firm for determination.
The matters in dispute shall be limited to the matters specified in the Objection Notice;
	 
	(b)	 	following delivery of their respective submissions, Converium, and Munich Re shall each have
the opportunity to comment once only on the other’s submissions by written comment delivered
to the Independent Firm not later than ten (10) days after receipt of the other’s submissions;
	 
	(c)	 	any response to a subsequent request by the Independent Firm for information from Converium,
Munich Re or the Agents shall be copied to Converium and Munich Re at the same time and,
unless otherwise directed by the Independent Firm, each person receiving a copy of the
information may, within ten (10) days after it receives such information, comment once only on
that information;
	 
	(d)	 	in giving its determination, the Independent Firm shall state what adjustments (if any) are
necessary, solely for the purposes of this agreement, to the MR Statement in respect of the
matters in dispute in order to comply with the requirements of this agreement and to determine
finally the MR Statement;
	 
	(e)	 	the Independent Firm shall determine (using its own legal advice as appropriate) any question
of the legal construction of this agreement but only insofar as it is relevant to the
determination of the MR Statement;
	 
	(f)	 	the Independent Firm shall act as an expert (and not as an arbitrator) in making any such
determination and any such determination (including any determination of any fact which it has
found it necessary to determine for the purposes of its determination) shall, in the absence
of manifest error, be final and binding on the parties; and
	 
	(g)	 	without prejudice to any other rights which they may respectively have under this agreement,
the parties expressly waive, to the extent permitted by law, any rights of recourse to the
courts they may otherwise have to challenge the Independent Firm’s determination;

6. Converium and Munich Re shall each be responsible for their own costs in connection with the
preparation, review and agreement or determination of the MR Statement.

7. The fees and expenses of the Independent Firm and the Agents shall be shared equally between
Converium and Munich Re or in such other proportions as the Independent Firm shall determine.

Page 47 

 

SCHEDULE 5

NIC STATEMENT DISPUTE RESOLUTION MECHANISM

1. Each of National Indemnity or Converium may request from the Agents such additional information
as it reasonably requires to confirm whether it agrees with the NIC Statement and the Agents shall
provide such information, to the extent they have it or are entitled to it, promptly and in any
case within 5 Business Days of the request.

2. National Indemnity or Converium may notify the Agents and National Indemnity or Converium (as
appropriate) in writing (such notification being a NICO Objection Notice) within thirty (30) days
after receipt that it disputes the NIC Statement. Any notice indicating that National Indemnity or
Converium does not accept the NIC Statement shall only be valid for the purposes of this Agreement
if it sets out the reasons why the person serving the notice believes the NIC Statement does not
correctly state the profits attributable to the Fronting Insurance Contracts written by National
Indemnity and the members of its Group calculated in accordance with Clause 14 and specifies the
adjustments which, in such person’s opinion, should be made to the NIC Statement. The validity of
any such notice shall be a matter for determination by the Independent Firm.

3. If a NICO Objection Notice is served in accordance with 2 above, then National Indemnity and
Converium shall use all reasonable endeavours (in conjunction with the Agents):

	(a)	 	to meet and discuss the objections in the Objection Notice; and
	 
	(b)	 	to reach agreement upon the adjustments (if any) required to be made to the NIC Statement,
within a period of five (5) Business Days after receipt by the Agents of the Objection Notice.

4. If both National Indemnity and Converium notify the Agents in writing that they are satisfied
with the NIC Statement (either as originally submitted or after adjustments agreed between National
Indemnity and Converium pursuant to 3 above) or if neither National Indemnity or Converium gives a
valid Objection Notice within the thirty (30) day period referred to in 2 above, then the NIC
Statement (as so adjusted, if applicable) shall be final and binding for the purposes of this
agreement.

5. If Converium and National Indemnity do not reach agreement within five (5) Business Days of
receipt by the Agents of the Objection Notice, then the matters in dispute may be referred (on the
application of either the Converium or National Indemnity) for determination by such firm of
actuaries of international standing as shall be agreed by Converium and National Indemnity or,
failing agreement, appointed by the President for the time being of the Institute of Actuaries in
England and Wales on the application of Converium or National Indemnity (the Independent Firm).
Converium and National Indemnity shall use all reasonable endeavours to agree with the Independent
Firm the precise terms of reference to apply to its role as soon as reasonably practicable
following a referral to the Independent Firm. Converium and National Indemnity shall procure that
the Agents comply with any

Page 48 

 

reasonable requests of the Independent Firm. The following general terms of reference and
procedure shall apply in any event:

	(a)	 	Converium and National Indemnity shall each prepare a written statement within five (5) days
of the formal appointment of the Independent Firm on the matters in dispute which (together
with the relevant supporting documents) shall be submitted to the Independent Firm for
determination. The matters in dispute shall be limited to the matters specified in the
Objection Notice;

	(b)	 	following delivery of their respective submissions, Converium, and National Indemnity shall
each have the opportunity to comment once only on the other’s submissions by written comment
delivered to the Independent Firm not later than ten (10) days after receipt of the other’s
submissions;

	(c)	 	any response to a subsequent request by the Independent Firm for information from Converium,
National Indemnity or the Agents shall be copied to Converium and National Indemnity at the
same time and, unless otherwise directed by the Independent Firm, each person receiving a copy
of the information may, within ten (10) days after it receives such information, comment once
only on that information;

	(d)	 	in giving its determination, the Independent Firm shall state what adjustments (if any) are
necessary, solely for the purposes of this agreement, to the NIC Statement in respect of the
matters in dispute in order to comply with the requirements of this agreement and to determine
finally the NIC Statement;

	(e)	 	the Independent Firm shall determine (using its own legal advice as appropriate) any question
of the legal construction of this agreement but only insofar as it is relevant to the
determination of the NIC Statement;

	(f)	 	the Independent Firm shall act as an expert (and not as an arbitrator) in making any such
determination and any such determination (including any determination of any fact which it has
found it necessary to determine for the purposes of its determination) shall, in the absence
of manifest error, be final and binding on the parties; and

	(g)	 	without prejudice to any other rights which they may respectively have under this agreement,
the parties expressly waive, to the extent permitted by law, any rights of recourse to the
courts they may otherwise have to challenge the Independent Firm’s determination;

6. Converium and National Indemnity shall each be responsible for their own costs in connection
with the preparation, review and agreement or determination of the NIC Statement.

7. The fees and expenses of the Independent Firm and the Agents shall be shared equally between
Converium and National Indemnity or in such other proportions as the Independent Firm shall
determine.

Page 49 

 

SCHEDULE 6

DISPUTE MECHANISM IN RELATION TO RESERVE CALCULATIONS

1. Converium may dispute any calculation carried out by the Agents, Munich Re or National Indemnity
or any reserves figure provided by the Agents, Munich Re or National Indemnity and Munich Re or
National Indemnity may dispute any calculation carried out by the Agents as set out in this
Schedule.

2. The disputing party may request from the person providing the information in dispute or any
other party such additional information as it reasonably requires and such person shall provide
such information, to the extent they have it or are entitled to it, promptly and in any case within
5 Business Days of the request.

3. The disputing party may notify the person providing the information in dispute in writing (such
notification being an Objection Notice) within thirty (30) days after receipt that it disputes the
information. Any notice indicating that the disputing party does not accept the information shall
only be valid for the purposes of this Agreement if it sets out the reasons why the person serving
the notice believes the information has not been properly calculated in accordance with the
Agreement and specifies the adjustments which, in such person’s opinion, should be made to the
information. Ultimately, the validity of any such notice shall be a matter for determination by
the Independent Firm.

4. If an Objection Notice is served in accordance with paragraph 3 above, then the disputing party
and the disputer shall use all reasonable endeavours (in conjunction with the Agents):

	(a)	 	to meet and discuss the objections in the Objection Notice; and
	 
	(b)	 	to reach agreement upon the adjustments (if any) required to be made to the information,
within a period of five (5) Business Days after receipt of the Objection Notice.

5. If the disputing party and the disputer agree in writing that they are satisfied with the
information (either as originally submitted or after adjustments agreed between them above) then
the information (as so adjusted, if applicable) shall be final and binding for the purposes of this
agreement.

6. The disputing party and the disputer do not reach agreement within five (5) Business Days of
receipt of the Objection Notice, then the matters in dispute may be referred (on the application of
either of them) for determination by such other firm of actuaries of international standing as
shall be agreed by them or, failing agreement, appointed by the President for the time being of the
Institute of Actuaries in England and Wales on the application of either of them (the Independent
Firm). The disputing party and the disputer shall use all reasonable endeavours to agree with the
Independent Firm the precise terms of reference to apply to its role as soon as reasonably
practicable following a referral to the Independent Firm. The disputing party and the disputer
shall procure that the Agents comply with any reasonable

Page 50 

 

requests of the Independent Firm. The following general terms of reference and procedure shall
apply in any event:

	(a)	 	the disputing party and the disputer shall each prepare a written statement within five (5)
days of the formal appointment of the Independent Firm on the matters in dispute which
(together with the relevant supporting documents) shall be submitted to the Independent Firm
for determination. The matters in dispute shall be limited to the matters specified in the
Objection Notice;

	(b)	 	following delivery of their respective submissions, the disputing party and the disputer
shall each have the opportunity to comment once only on the other’s submissions by written
comment delivered to the Independent Firm not later than ten (10) days after receipt of the
other’s submissions;

	(c)	 	any response to a subsequent request by the Independent Firm for information from the
disputing party and the disputer shall be copied to the other at the same time and, unless
otherwise directed by the Independent Firm, each person receiving a copy of the information
may, within ten (10) days after it receives such information, comment once only on that
information;

	(d)	 	in giving its determination, the Independent Firm shall state what adjustments (if any) are
necessary, solely for the purposes of this agreement, to the information in respect of the
matters in dispute in order to comply with the requirements of this Agreement;

	(e)	 	the Independent Firm shall determine (using its own legal advice as appropriate) any question
of the legal construction of this Agreement;

	(f)	 	the Independent Firm shall act as an expert (and not as an arbitrator) in making any such
determination and any such determination (including any determination of any fact which it has
found it necessary to determine for the purposes of its determination) shall, in the absence
of manifest error, be final and binding on the parties; and

	(g)	 	without prejudice to any other rights which they may respectively have under this agreement,
the parties expressly waive, to the extent permitted by law, any rights of recourse to the
courts they may otherwise have to challenge the Independent Firm’s determination;

7. The disputing party and the disputer shall each be responsible for their own costs in connection
with the preparation, review and agreement or determination of the information.

8. The fees and expenses of the Independent Firm and the Agents shall be shared equally between the
disputing party and the disputer or in such other proportions as the Independent Firm shall
determine.

Page 51 

 

In witness whereof this Agreement has been signed by and on behalf of the parties on the
day and year first before written.

	 	 	 
	SIGNED by
	 	)
	 
	 	)
	for and on behalf of
	 	)
	GLOBAL AEROSPACE
	 	)
	UNDERWRITING MANAGERS
	 	)
	LIMITED
	 	)
	 
	 	 
	SIGNED by
	 	)
	 
	 	)
	for and on behalf of
	 	)
	GLOBAL AEROSPACE, INC.
	 	)
	 
	 	 
	SIGNED by
	 	)
	 
	 	)
	and
	 	)
	duly authorised representatives of
	 	)
	MÜNCHENER RÜCKVERSICHERUNGS-
	 	)
	GESELLSCHAFT
	 	)
	AKTIENGESELLSCHAFT
	 	)
	in MÜNCHEN
	 	)
	 
	 	 
	SIGNED by Forrest N. Krutter, Secretary
	 	)
	and
	 	)
	for and on behalf of
	 	)
	NATIONAL INDEMNITY COMPANY
	 	)

Page 52 

 

	 	 	 
	SIGNED by Christopher Bell
	 	)
	and Benjamin Gentsch
	 	)
	for and on
behalf of)
	 	 
	CONVERIUM AG
	 	 

Page 53 

 

ANNEXURE 1

FORM OF DEED OF ADHERENCE FOR USE BY SUBSIDIARIES OF

GLOBAL AND GAI

DEED OF ADHERENCE

THIS DEED is made the [       ] day of [       ], 20[ ] by

	(1)	 	[       ] (No.       ) whose registered office is at [     
] hereinafter called [New Subsidiary];
	 
	(2)	 	GLOBAL AEROSPACE UNDERWRITING MANAGERS LIMITED (registered number 2512067) whose registered
office is at Fitzwilliam House, 10 St. Mary Axe, London EC3 8EQ (Global);
	 
	(3)	 	GLOBAL AEROSPACE, INC. a Delaware company (GAI);
	 
	(4)	 	NATIONAL INDEMNITY COMPANY, a company incorporated in Nebraska, United States of America,
whose registered office is at 3024 Harney Street, Omaha, Nebraska, USA 68131 (National
Indemnity);
	 
	(5)	 	CONVERIUM AG, a company incorporated in Switzerland whose registered office is at General
Guisan-Quai 26, 8022 Zürich, Switzerland (Converium); and
	 
	(6)	 	MÜNCHENER RÜCKVERSICHERUNGS-GESELLSCHAFT AKTIENGESELLSCHAFT IN MÜNCHEN, whose registered
office is at Königinstraße, 107, 80802 München, Germany (Munich Re).

Whereas:

	(a)	 	[Global/GAI] has duly [incorporated] [acquired] [New Subsidiary] [to be] [as] its wholly
owned subsidiary in accordance with the provisions of the reinsurance fronting and
administration agreement made between Global, GAI, National Indemnity and Converium and Munich
Re dated • November 2004 as it may have been subsequently amended (the Agreement).

	(b)	 	Under the provisions of Clause 2.5 of the Agreement, [New Subsidiary] shall become a party to
the Agreement by executing a Deed of Adherence in the form (or substantially in the form) set
out in Annexure 1 to the Agreement and this Deed is in such form.

Now this deed witnesseth as follows:

1. Words and phrases defined in the Agreement shall, unless the context otherwise requires, have
the same meaning in this Deed.

Page 54 

 

2. [New Subsidiary] agrees and undertakes to be bound by and to have the benefit of the Agreement
as if it were named therein as a party in its capacity as and being a subsidiary of [Global/GAI].

3. [New Subsidiary], subject to and in accordance with Clause 2.5 of the Agreement, agrees to act
as agent for [XXX] on and in accordance with the terms of the Agreement including on and with
effect from [INSERT EFFECTIVE DATE].

4. This Deed and the relationship between the parties shall be governed by and interpreted in
accordance with English law. For the benefit of the other parties hereto, each party to this Deed
irrevocably agrees that the Courts of England are to have exclusive jurisdiction to settle any
dispute which may arise in connection with this Deed and for any such purposes irrevocably submits
to the jurisdiction of such Courts.

In witness whereof this document has been executed as a Deed the day and year first before
written.

Page 55 

 

DATED __            2007

GLOBAL AEROSPACE UNDERWRITING MANAGERS LIMITED

- and -

GLOBAL AEROSPACE, INC.

- and -

MÜNCHENER RÜCKVERSICHERUNGS- 

GESELLSCHAFT AKTIENGESELLSCHAFT

IN MÜNCHEN

- and -

NATIONAL INDEMNITY COMPANY

- and -

CONVERIUM AG

FRONTING AND ADMINISTRATION

AGREEMENT RELATING TO THE GLOBAL

AEROSPACE UNDERWRITERS POOL

 

 

CONTENTS

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	1.

	 	DEFINITIONS
	 	 	2	 
	2.

	 	APPOINTMENT OF GLOBAL AND GAI TO WRITE FRONTING INSURANCE
	 	 	8	 
	3.

	 	CONVERIUM’S REINSURANCE AND INDEMNITY OBLIGATIONS
	 	 	12	 
	4.

	 	DUTIES & WAIVERS
	 	 	14	 
	5.

	 	PREMIUMS AND POOL PAYMENTS
	 	 	16	 
	6.

	 	OVERRIDING COMMISSION
	 	 	17	 
	7.

	 	CLAIMS
	 	 	18	 
	8.

	 	ACCOUNTS AND INFORMATION
	 	 	19	 
	9.

	 	RELATIONSHIP BETWEEN THE PARTIES
	 	 	20	 
	10.

	 	TERMINATION
	 	 	20	 
	11.

	 	CONFIDENTIALITY
	 	 	24	 
	12.

	 	UNDERTAKINGS
	 	 	25	 
	13.

	 	MUNICH RE SECURITY
	 	 	26	 
	14.

	 	NATIONAL INDEMNITY SECURITY
	 	 	31	 
	15.

	 	DISPUTE RESOLUTION
	 	 	36	 
	16.

	 	LETTERS OF CREDIT AND AUTHORITY
	 	 	36	 
	17.

	 	CHANGE OF CONTROL
	 	 	37	 
	18.

	 	SET-OFF	 	 	37	 
	19.

	 	REGULATORY MATTERS
	 	 	37	 
	20.

	 	WAIVER OF OBLIGATIONS
	 	 	37	 
	21.

	 	AMENDMENT AND REPRESENTATIONS
	 	 	38	 
	22.

	 	ASSIGNMENT
	 	 	38	 
	23.

	 	NOTICES AND COMMUNICATIONS
	 	 	38	 
	24.

	 	GOVERNING LAW AND ARBITRATION
	 	 	40	 
	25.

	 	COSTS
	 	 	40	 
	26.

	 	ENFORCEABILITY
	 	 	40	 
	27.

	 	RELATIONSHIP WITH POOL MEMBERS’ AGREEMENT
	 	 	40	 
	28.

	 	NO RIGHTS UNDER CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 	 	41	 
	29.

	 	COUNTERPARTS
	 	 	41	 

Page I

 

 

	 	 	 	 	 	 	 
	SCHEDULE 1 AMOUNT AND BASIS OF CALCULATION OF 

   OVERRIDING COMMISSION	 	 	42	 
	SCHEDULE 2 MUNICH RE GROUP FRONTING	 	 	43	 
	SCHEDULE 3 NATIONAL INDEMNITY GROUP FRONTING	 	 	44	 
	SCHEDULE 4 MR STATEMENT DISPUTE RESOLUTION MECHANISM	 	 	46	 
	SCHEDULE 5 NIC STATEMENT DISPUTE RESOLUTION MECHANISM	 	 	48	 
	SCHEDULE 6 DISPUTE MECHANISM IN RELATION TO RESERVE 

   CALCULATIONS	 	 	50	 
	ANNEXURE 1 FORM OF DEED OF ADHERENCE FOR USE BY SUBSIDIARIES OF GLOBAL AND GAI	 	 	54	 
	 
	 	 	 	Page II

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]