Document:

Prepared and filed by St Ives Burrups

Exhibit 10.17

 

ANNEX V

QUOTA SHARE

ENDORSEMENT

TO

FACULTATIVE OBLIGATORY

QUOTA SHARE

RETROCESSIONAL AGREEMENT

(hereinafter referred to as the “Reinsurance Agreement”)

between

PXRE REINSURANCE COMPANY

(hereinafter referred to as the “Company”)

and

PXRE REINSURANCE LTD.

(hereinafter referred to as the “Reinsurer”)

 

Effective as of July 1, 2004,  subject to the approval of the Insurance Department of the State of  Connecticut, it is understood and agreed that with respect to risks assumed on  all Contracts written by the Company on or after July 1, 2004 that cessions to  the Reinsurance Agreement shall no longer be subject to per reinsurance program  sub-limits.

 

Signed in Hamilton, Bermuda, as  of July 1, 2004.

 

	
   

  	
  PXRE    REINSURANCE LTD.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ GUY    HENGESBAUGH

  
	
   

  	
   

  	
  

  
	
   

  	
  Name:

  	
  Guy D.    Hengesbaugh

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  PXRE    REINSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ JEFFREY    L. RADKE

  
	
   

  	
   

  	
  

  
	
   

  	
  Name:

  	
  Jeffrey L.    Radke

  
	
   

  	
  Title:

  	
  CEOPrepared and filed by St Ives Burrups

Exhibit 10.24

 

AMENDED AND RESTATED SEVERANCE PLAN
  FOR CERTAIN EXECUTIVES OF PXRE GROUP LTD.

 

1.          Establishment  of Plan

 

             This  Amended and Restated Severance Plan for Certain Executives (the “Plan”) is  established to provide severance benefits to certain executives of PXRE Group  Ltd. (the “Company”) and its subsidiaries.

 

2.          Purpose

 

             The  Company, on behalf of itself and its stockholders, desires to continue to  attract and retain well-qualified executives who are an integral part of the  management of the Company and its subsidiaries, such as the Designated  Employees (as hereinafter defined).  The  purpose of the Plan is to provide an incentive to the Designated Employees,  whose knowledge, expertise and level of performance are critical to the current  and future success of the Company and its subsidiaries, to remain in the employ  of the Company and/or its subsidiaries, notwithstanding the uncertainty and job  insecurity created by an actual or threatened Change in Control (as hereinafter  defined).

 

3.          Definitions

 

             Terms  not otherwise defined in the Plan shall have the meanings set forth in this Section 3.

 

             3.1          Change  in Control.  A “Change in Control”  of the Company shall be deemed to have occurred if:

 

                            (a)          any  “person” (as
    such term is used in Sections 13(d) and 14(d) of the Exchange Act) other
    than the Company becomes the “beneficial owner” (as determined
    for purposes of Regulation 13-D under the Exchange Act as currently in effect)
    other than, with respect to any holder of Series A, Series B or Series C
    Convertible Voting Preferred Shares, by reason of the receipt of share dividends,
    directly or indirectly, of securities of the Company representing 30% or
    more of the combined voting power of the Company’s then outstanding
     securities with respect to matters presented at the Company’s general
     meetings, other than the election of directors (“Voting Power”); provided,
     however, that
the  disposition by an original holder of either Series A, Series B or Series
     C Convertible Voting Preferred Shares (a “Preferred Shareholder”)
     of such preferred shares (or any securities into which such shares have
     ultimately been converted) to a person will not constitute a Change of Control
     under this clause (i) unless (x) such person, immediately following such
     acquisition from such Preferred Shareholder, holds securities representing
     at least 50% Voting Power, or (y) such person has acquired securities from
     more than one Preferred Shareholder in the same or related transactions,
     and immediately following the last of such transactions, holds securities
     representing at least 30% Voting Power; provided further, however, if, by
     reason of the preceding proviso, the acquisition by a person of at least
     30% but less than 50% Voting Power does not constitute a Change of Control
     under this clause (i), a Change of Control will be deemed to occur if such
     person thereafter becomes holder of at least 50% Voting Power, whether or
     not pursuant to a related transaction; or 

 

 

                            (b)          the  shareholders of the Company approve (A) any merger or consolidation of the  Company with any other corporation, other than a merger or consolidation in  which the Company is the surviving entity or a merger or consolidation which  would result in the holders of the voting securities of the Company outstanding  immediately prior thereto holding immediately thereafter securities  representing more than 80% of the combined voting power of the voting  securities of the Company or such surviving entity outstanding immediately  after such merger or consolidation, or (B) any sale or other disposition (in  one transaction or a series of related transactions) of all, or substantially all,  of the assets of the Company; or

 

                            (c)          the  shareholders of the Company approve a plan or proposal for the liquidation or  dissolution of the Company; or

 

                            (d)          during  any period of two consecutive years (not including any period prior to May 30,  2002), individuals who at the beginning of such period constitute the entire  Board of Directors of the Company and any new director, whose election to the  Board or nomination for election to the Board by the Company’s shareholders was  approved by a vote of at least two-thirds (2/3) of the directors then still in  office who either were directors at the beginning of the period or whose  election or nomination for election was previously so approved, cease for any  reason to constitute a majority of the Board.

 

             3.2          Constructive  Discharge.  The term “Constructive  Discharge” means a termination of employment by a Designated Employee in the  event of any:

 

                            (a)          material  change by the Company or any of its subsidiaries after a Change in Control of  the Company (or within six (6) months prior to such Change in Control if  discussions concerning such Change in Control had commenced at or prior to such  material change) of the Designated Employee’s duties or responsibilities that  would cause the Designated Employee’s position with the Company and/or its  subsidiaries to become of less dignity, responsibility, importance or scope  from the position held by the Designated Employee immediately prior to such  material change, other than any such change primarily attributable to the fact  that the Company’s securities are no longer publicly traded or which is  effected with the
  Designated Employee’s prior expressed written consent;

 

                            (b)          reduction  in the Designated Employee’s base salary is in effect on the date such person  becomes a Designated Employee for purposes of the Plan as the same may be  increased from time to time, or a change in the method of calculating bonuses or incentive compensation awards  that would have the effect of materially reducing the Designated Employee’s  annual bonus or incentive compensation award;

 

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                            (c)          except
    as required by law, any failure by the Company or its subsidiaries to continue
    in effect without substantial change any compensation, incentive, welfare
    or benefit plan or arrangement, as well as any plan or arrangement whereby
    the Designated Employee may acquire securities of the Company, in which the
    Designated Employee is participating at the time of a Change in Control of
    the Company (or within six (6) months prior to such Change in Control if
    discussions concerning such Change in Control had commenced at or prior to
    such failure), or any other plans providing the Designated Employee with
    substantially similar benefits (hereinafter collectively the “Benefit
    Plans”)  or the taking of any action by the Company or its subsidiaries
    which would adversely affect the Designated Employee’s participation
    in or materially reduce the Designated Employee’s benefits under any
    such Benefit Plan or deprive the Designated Employee of specified benefits
    which otherwise would be accruing to him or her at such time, unless an equitable
    substitute arrangement (embodied in an ongoing substitute or alternative
    Benefit Plan) has been made for the benefit of the Designated Employee with
    respect to the Benefit Plan in question.  For purposes of the  foregoing,
    Benefit Plans shall include, but not be limited to, the Company’s  Retirement
    Plan, Defined Contribution Pension
Plan  401(k) Plan , Employee Stock Purchase Plan, 1992 Officer  Incentive
Plan, 2002 Officer Incentive Plan, the Incentive Bonus Compensation Plan, or
any other plan or arrangement to receive and exercise stock options or stock
appreciation rights, supplemental pension plan, insured medical reimbursement
plan, automobile benefits, executive financial planning, group life insurance,
personal catastrophe liability insurance, medical, dental, accident or disability
plan;

 

                            (d)          assignment  or reassignment by the Company or its subsidiaries of the Designated Employee  to another place of employment more than 50 miles from the Designated  Employee’s place of employment at the time of the Change in Control of the  Company (or within six (6) months prior to such Change in Control if  discussions concerning such Change in Control had commenced at or prior to such  action), except for required travel by the Designated Employee on the Company’s  business to an extent substantially consistent with the Designated Employee’s  prior business travel obligations;

 

                            (e)          liquidation,  dissolution, consolidation or merger of the Company, or transfer of all or  substantially all of its assets, other than a transaction in which a successor  corporation with a net worth at least equal to that of the Company assumes  administration of the Plan and all obligations and undertakings of the Company  hereunder; or

 

                            (f)          any  material breach by the Company of any provision of the Plan or of any  employment agreement between the Company or any of its subsidiaries and the  Designated Employee;

 

by  written notice to the Company, specifying the event relied upon for such  termination, which event is not corrected by the Company within ten (10) days  following receipt of such notice.

 

             3.3          Designated  Employee(s).  The terms “Designated  Employees” and “Designated Employee” shall mean all duly appointed officers of  the Company or its subsidiaries other than the Chief Executive Officer of the  Company or any other officer subject to an employment agreement that  specifically excludes such officer from participating under this Plan.  Designated Employees are excluded from  participating in the Amended and Restated Severance Plan for Employees of PXRE  Group Ltd.

 

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             3.4          Termination
      for Cause.  The term “Termination  for Cause” means
      a termination of the Designated Employee’s employment by the  Company
      or any of its subsidiaries due to the Designated Employee’s (a) willful
      and continued failure to substantially perform his or her employment duties
      (other than any failure resulting from an illness or other similar incapacity
      or disability) or (b) willful misconduct which is materially injurious
      to the Company, monetarily or otherwise.  For purposes  of the Plan,
      no act, or failure to act, on the Designated Employee’s part shall
      be deemed “willful” unless done, or omitted to be done, by the
      Designated Employee not in good faith and without reasonable belief that
      such action or omission was in the best interest of the Company and its
      subsidiaries.  During the original or any extended term of  the Plan,
      the definition of “Termination for Cause” contained herein shall
      supersede, for purposes of the Plan, any definition of such term contained
      in any employment agreement with any Designated Employee.  In each
      instance of a Termination for Cause of a Designated Employee, the Board
      of Directors of the Company shall give written notice to the Designated
      Employee specifying the event relied upon for such termination, and the
      Designated  Employee shall have thirty (30) days within which to correct
      the event or conduct so specified in the notice before any Termination
      for Cause shall be effective. 

 

4.          Beneficiaries

             Each  Designated Employee may designate a beneficiary or beneficiaries who are to  receive any payments due to him or her under the Plan if he or she should not be living.  If the Designated Employee fails to  designate a beneficiary or such person fails to survive the Designated  Employee, any payments due to the Designated Employee shall be made to his or  her executor or administrator of his or her estate.

 

5.          Termination  Following a Change in Control

 

                            (a)          If  a Change in Control of the Company shall occur and within twelve (12) months  after such Change in Control (or within six (6)  months prior to such Change in Control if discussions concerning such Change in  Control had commenced at or prior to either of the events described in clauses  (i) and (ii) below):

 

                                          (i)          the  Designated Employee’s employment is terminated by the Company or any of its  subsidiaries for any reason other than a Termination for Cause or the  Designated Employee’s death, Disability (as hereinafter defined) or Retirement  (as hereinafter defined); or

 

                                          (ii)         the  Designated Employee terminates his or her employment because of a Constructive  Discharge; 

then the  Company shall pay to the Designated Employee, and provide the Designated  Employee and the Designated Employee’s dependents with, the following:

 

                                                        (A)          within  ten (10) business days of the Effective Date (as hereinafter defined) of the  termination (or of the date of the Change in Control if the termination occurs  during the six (6) month period prior thereto), a lump sum cash amount equal to  the sum of:

 

                                                                         (1)          the  Designated Employee’s annual base salary; 

 

                                                                         (2)          the  Designated Employee’s Target Bonus under the Incentive Bonus 

                                                                                        Compensation Plan;

 

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                                                                         (3)          the  present lump sum value of --

 

                                                                                        (a)          the  additional matching contributions which the Company would have made to the  Company’s 401 (k) Plan  and  Defined Contribution Pension Plan (the “Savings  and Investment Plans”) on account of the Designated Employee’s additional  period of participation (as provided in (a), above) computed as if the  Designated Employee’s period of
participation in the Plan consisted of his or  her actual period of participation in the Plan as of his or her actual  termination of employment (or earlier termination of the Plan) plus his or her  additional period of participation, his or her annual rate of compensation for  purposes of the Plan during such additional period was the annual base salary  in (1) above, his or her contributions to the Plan during such additional  period for purposes of determining matching contributions were computed under  the elections in effect for the Designated Employee as of his or her actual termination  of employment (or earlier termination of the Plan), the Company’s matching  contributions allocable to the Designated Employee were based on the greater of  (x) the highest ratio of the Company’s matching contribution allocated to a  participant to the participant’s contribution subject to match under the Plan  for the plan year immediately preceding the plan year in which the Designated
Employee’s employment terminates (or earlier termination of the Plan) or (y)  the highest such ratio for the plan year in which the Change of Control occurs,  and the Company made such additional matching contributions to the Plan as of  the end of each month in such additional period; and

 

                                                                         (4)          an  amount equal to the total of all amounts held in accounts for the Designated  Employee under the  Pension Plan and  Savings and Investment Plans (consisting of employer contributions, forfeitures  and earnings thereon) which are forfeited under the terms of either of those  Plans on his or her termination of employment;

provided, however, that the amount due under the foregoing shall  be reduced by the present lump sum value of the amounts, if any, payable to the  Designated Employee by reason of the termination of his or her employment under  an employment agreement with the Company, Company policy other than this Plan  or applicable statute.  For the purposes  of determining a present lump sum value under this proviso, the discount rate  shall be equal to 120% of the applicable Federal rate (determined under Section  1274(d) of the Code and the applicable regulations in effect on the date as of  which the present value is to be determined) compounded semi-annually.

 

                                                        (B)          For  a period of one (1) year, disability, accident, health and life insurance  substantially similar to those insurance benefits which the Designated Employee  received immediately prior to the date of the Notice of Termination; provided,  however, benefits otherwise receivable by the Designated Employee  pursuant to this Section 5(a)(B) shall be reduced to the extent comparable  benefits are actually received by the Designated Employee during such specified  period following his or her termination (or such shorter period elected by the  Designated Employee),
and any such benefits actually received by the Designated  Employee shall be reported by him or her to the Company.  If and to the extent that the benefits  specified herein shall not be payable or provided under plans then in effect,  the Company shall pay or provide such benefits on an individual basis.

 

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                                                        (C)            Upon proof of  expenditure of the same, all reasonable legal fees and expenses incurred in  connection with the enforcement by a Designated Employee of his or her rights  under the Plan.

 

                            (b)          Any  purported termination of the Designated Employee’s employment by the Company  and its subsidiaries or by the Designated Employee under this Section 5 shall  be communicated by a Notice of Termination to the other party.  For purposes of this Plan, a “Notice of  Termination” shall mean a written notice which shall indicate those specific  termination provisions in the Plan relied upon and which sets forth in  reasonable detail the facts and circumstances claimed to provide a basis for  termination of the Designated Employee’s employment under the provision so  indicated.

 

                            (c)          In  the event of any termination of employment of a Designated Employee for any  reason other than a Disability or Termination for Cause, the effective date of  such termination (the “Effective Date”) shall be the date specified in the  Notice of Termination.  The Effective  Date of any termination of employment of a Designated Employee due to a  Disability shall be the date which is thirty (30) days after the date on which  a Notice of Termination is given by the Company to the Designated Employee (provided  that the Designated Employee shall not have returned to the full-time  performance of his or her duties during such thirty (30) day period).

 

                            (d)          For  purposes of the Plan, “Disability” shall mean the inability of the Designated  Employee, due to illness or incapacity, to substantially perform for a  continuous period of at least three (3) months the duties attendant to the  position held by the Designated Employee in the Company or any of its  subsidiaries.  For purposes of the Plan,  “Retirement” shall mean a Designated Employee’s voluntary termination of  employment in accordance with the Company’s retirement policy (excluding early  retirement) generally applicable to its salaried employees or in accordance  with any retirement arrangement established with the Designated Employee’s  consent with respect to him or her.

 

6.          Indemnification  for Excise Tax; Preparation of Tax Return; Cooperation

 

                            (a)          The
    Company agrees that it will promptly pay or cause to be paid to a Designated
    Employee an additional amount in cash (“Additional Amount”) which
    net of Attributable Taxes equals the amount of federal excise taxes, including
    interest and penalties, payable under Section 4999 of the Internal Revenue
    Code of 1986, as amended (the “Code”) with respect to the benefits
    received by the Designated Employee pursuant to Section 5 of the Plan and
    the Company’s 2002  Officer Incentive Plan and 1992 Officer Incentive
    Plan.  “Attributable Taxes” shall mean all taxes,  interest
    and penalties, including any federal, state and local income taxes and any
    federal excise taxes under Section 4999 of the  Code, which become payable
    by the Designated Employee as a result of the receipt of the Additional Amount.   It
    is intended that no Designated Employee shall suffer any loss or expense
    resulting from the assessment of any such excise tax and the Company’s
    reimbursement of said Designated Employee for payment of any such excise
    tax.

 

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                            (b)          The
    Company, at its sole expense, agrees to supply any Designated Employee with
    advice from competent tax counsel as to whether such Designated Employee
    must reflect and pay an excise tax under Sections 280G and 4999 of the Code
    on the filing of any federal income tax return of the Designated Employee
    relating to the period or periods in which the Designated Employee received
    payments or benefits under the Plan which may result in the imposition of
    such an excise tax.  If such tax counsel advises that  such excise tax
    must be reflected and paid on such tax return, the Designated Employee agrees
    to so reflect and pay such tax at which time the Company will reimburse the
    Designated Employee in accordance with Section 6(a) above.  If such
    tax counsel advises that such excise tax need not be reflected and paid on
    such tax return, the Designated Employee agrees to prepare and file his tax
    return in accordance with such advice.  In either case the Company shall
    indemnify each Designated Employee in accordance with Section 6(a) of the
    Plan for any subsequent assessment of excise taxes made  by the Internal
    Revenue Service (“IRS”) under Section 4999 of the Code with respect
    to the benefits received by the Designated Employee under Section 5 of the
    Plan.

 

                            (c)          Each  Designated Employee promptly shall notify the Company in the event of any audit  by the IRS in which the IRS asserts that any excise tax should be assessed  against such Designated Employee, and further agrees to cooperate with the  Company in contesting (at the Company’s sole expense) any such proposed  assessment.  Each Designated Employee  agrees not to settle or compromise any such assessment without the Company’s  consent.  If a Designated Employee’s  failure to settle a proposed assessment with respect to such excise tax  (“Proposed Assessment”) is at the direction of the Company and becomes the  reason his overall audit cannot be finally resolved, then such Designated  Employee may
demand that the Company consent to settle the Proposed  Assessment.  If the Company does not,  within sixty (60) days after such demand, settle or consent to allow the  Designated Employee to settle, the Proposed Assessment, the Company shall indemnify  and hold harmless such Designated Employee from any additional interest or  penalties resulting from the delay in finally resolving the audit.

 

             6.2          Arbitration

 

             In  the event of any dispute or difference between the parties hereto concerning  their rights and duties hereunder, a Designated Employee may, by notice to the  Company, require such dispute or difference to be submitted to  arbitration.  The arbitrator or  arbitrators shall be selected by agreement of the parties of, if they cannot  agree on an arbitrator or arbitrators within thirty (30) days after the  Designated Employee shall have notified the Company of his or her desire to  have the question settled by arbitration, then the arbitrator or arbitrators  shall be selected by the American Arbitration Association (the “AAA”) in New  York, New York upon the application of either party.  The determination reached in such arbitration shall be final and  binding on both parties without any right of appeal or further dispute.  Execution of the determination by
such arbitrator(s)  may be sought in any court of competent jurisdiction.  The fees and expenses of any arbitrators and the AAA shall be  paid by the Company.  Unless otherwise  agreed by the parties, any such arbitration shall take place in New York, New  York and shall be conducted in accordance with the rules of the AAA.

 

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7.          No  Diminution of Rights

 

             The
    provisions of the Plan, and any payment provided for hereunder, shall not
    reduce any amounts otherwise payable, or in any way diminish the Designated
    Employee’s existing rights, or rights  which would accrue solely as
    a result of the passage of time, under any benefit plan, employment agreement
    or other contract, plan or arrangement.

 

8.          Term;  Amendments

 

                            (a)          The  Plan shall continue until and terminate five (5) years from the date hereof  unless the Board of Directors of the Company, by resolution duly adopted prior  to the end of the first five (5) year term or of any subsequent renewal term,  indicates that the Plan shall be renewed.   Further, if a Change in Control occurs during the original or any  extended term of the Plan, the Plan shall continue until the Company shall have  fully performed all of its obligations hereunder with respect to all Designated  Employees, with no future performance being possible.

 

                            (b)          The  Plan may not be amended in any manner which has a significant adverse effect on  any Designated Employee and his or her rights hereunder without the written  consent of such Designated Employee.   Notwithstanding the foregoing, upon the occurrence of a Change in  Control, the Plan may not be amended in any respect without the written consent  of each Designated Employee affected by such proposed amendment.  Notwithstanding any other provision hereof,  the Plan may be amended in order to obtain or maintain the status of (i) the  Company’s Pension Plan and its Savings and Investment Plans as qualified plans  under Section 401(a) of the Code and (ii) the Company’s 2002 Officer Incentive  Plan and 1992 Officer
Incentive Plan as qualified under Rule 16b-3 promulgated  pursuant to the Exchange Act.

 

9.          No  Effect on Employment Prior to Change in Control

 

             Nothing  in the Plan or any agreement entered into pursuant to the Plan shall confer  upon the Designated Employee any right to continue in the employ of the Company  or any of its subsidiaries or shall interfere with or restrict in any way the  rights of the Company and its subsidiaries, which are hereby expressly  reserved, to discharge the Designated Employee at any time for any reason  whatsoever, with or without cause.

 

10.         Notices

 

              For  the purpose of the Plan, notices and all other communications provided for in  the Plan shall be in writing and shall be deemed to have been duly given when  delivered or mailed by United States registered mail, return receipt requested,  postage prepaid, addressed, in the case of a Designated Employee, to his or her  last residence address on file with the Company, and in the case of the Company  to the attention of the President of the Company, c/o Morgan, Lewis &  Bockius LLP, 101 Park Avenue, New York, New York 10178, or to such other  address as such party may have furnished to the other in writing in accordance  herewith.  Notices and other  communications shall be effective when actually received by the addressee.

 

11.         Miscellaneous

 

              The  Plan shall in all respects be governed by, and construed in accordance with,  the internal laws of the State of New York without reference to the principles  of conflict of laws.  All references to  sections of the Code shall be deemed also to refer to any successor provisions  to such sections.  Any payments provided  for hereunder shall be paid net of any applicable withholding required under  federal, state or local law.

 

Dated:  May 5, 2004

 

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