Document:

<PAGE>

                                                                    EXHIBIT 10.3

                                ENDORSEMENT NO. 6

                         Attached to and made a part of
                            AGREEMENT OF REINSURANCE
                                    NO. 9034
                                     between
                         PHILADELPHIA INDEMNITY COMPANY
                         PHILADELPHIA INSURANCE COMPANY
               (herein collectively referred to as the "Company")
                                       and
                         GENERAL REINSURANCE CORPORATION
                     (herein referred to as the "Reinsurer")

IT IS MUTUALLY AGREED that, effective January 1, 2007, the following ARTICLE XIV
is hereby added to this Agreement:

"ARTICLE XIV - ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement between the parties with respect
to the business reinsured hereunder. Any change or modification to this
Agreement shall be made by written amendment to this Agreement and signed by the
parties hereto."

IT IS FURTHER AGREED that, as respects new and renewal policies of the Company
becoming effective at and after 12:01 A.M., January 1, 2007, and policies of the
Company in force at 12:01 A.M., January 1, 2007, with respect to claims and
losses resulting from Occurrences taking place at and after the aforesaid time
and date, EXHIBIT A to this Agreement is amended as follows:

     I - SECTION 3 is amended to read:

"SECTION 3 - LIABILITY OF THE REINSURER

The Reinsurer shall pay to the Company, with respect to each Risk of the
Company, the amount of Net Loss sustained by the Company in excess of the
Company Retention but not exceeding the Limits of Liability of the Reinsurer as
set forth in the Schedule of Reinsurance.

                             SCHEDULE OF REINSURANCE

<TABLE>
<CAPTION>
Class of Business   Company Retention   Limits of Liability of the Reinsurer
-----------------   -----------------   ------------------------------------
<S>                 <C>                 <C>
Property Business       $2,000,000      FIRST EXCESS COVER: The next
                                        $3,000,000 in excess of the first
                                        $2,000,000
</TABLE>

                         GENERAL REINSURANCE CORPORATION
                          A BERKSHIRE HATHAWAY COMPANY

<PAGE>

                       SCHEDULE OF REINSURANCE (CONTINUED)

<TABLE>
<CAPTION>
Class of Business   Company Retention   Limits of Liability of the Reinsurer
-----------------   -----------------   ------------------------------------
<S>                 <C>                 <C>
                                        SECOND EXCESS COVER: The next
                                        $5,000,000 in excess of the first
                                        $5,000,000

                                        THIRD EXCESS COVER: The next
                                        $5,000,000 in excess of the first
                                        $10,000,000
</TABLE>

The liability of the Reinsurer shall not exceed:

     (a)  $6,000,000 under the First Excess Cover nor $10,000,000 under the
          Second Excess Cover nor $10,000,000 under the Third Excess Cover with
          respect to all Net Loss on all Risks involved in one Occurrence.

     (b)  $15,000,000 under the Second Excess Cover nor $15,000,000 under the
          Third Excess Cover with respect to all Net Loss on all Risks involved
          in all Occurrences (including Extra Contractual Obligations) taking
          place during each Agreement Year. For purposes of this provision, upon
          a run off termination of this Exhibit the last completed Agreement
          Year shall be combined with the remaining period that reinsurance is
          afforded under this Exhibit to constitute a single Agreement Year.

All insurance written under one or more policies of the Company against the same
peril on the same Risk shall be combined, and the Company Retention and the
Limits of Liability of the Reinsurer shall be determined on the basis of the sum
of all insurance against the same peril and on the same Risk which is in force
at the time of a claim or loss."

     II - SECTION 7 is amended to read:

"SECTION 7 - REINSURANCE PREMIUM

The Company shall pay to the Reinsurer:

     (a)  For the First Excess Cover, 1.90% of the Company's Subject Earned
          Premium;

     (b)  For the Second Excess Cover, 0.88% of the Company's Subject Earned
          Premium;

     (c)  For the Third Excess Cover, 0.29% of the Company's Subject Earned
          Premium."

                         GENERAL REINSURANCE CORPORATION

                                       -2-

<PAGE>

     III - SECTION 9 is amended to read:

"SECTION 9 - AUTOMATIC REINSTATEMENT

The Limit of Liability of the Reinsurer with respect to each Occurrence shall be
reduced by an amount equal to the amount of liability paid by the Reinsurer, but
that part of the liability of the Reinsurer that is so reduced shall be
automatically reinstated from the date of the Occurrence for which payment is
made; however, the Limits of Liability of the Reinsurer under the Second and
Third Excess Covers with respect to all Occurrences taking place during each
Agreement Year shall not exceed the amounts set forth in the section entitled
LIABILITY OF THE REINSURER. In consideration of this automatic reinstatement:

     (a)  For each amount so reinstated in the First Excess Cover, there shall
          be no additional reinsurance premium;

     (b)  For first $5,000,000 so reinstated in the Second and Third Excess
          Covers, there shall be no additional reinsurance premium;

     (c)  For the next $5,000,000, so reinstated in the Second Excess Cover, the
          Company shall pay to the Reinsurer an additional reinsurance premium
          that shall be the product of 100% of the reinsurance premium set forth
          in sub-paragraph (b) of the section entitled REINSURANCE PREMIUM for
          the Agreement Year multiplied by the amount of the reinstated Limit of
          Liability of the Reinsurer divided by $5,000,000;

     (d)  For the next $5,000,000, so reinstated in the Third Excess Cover, the
          Company shall pay to the Reinsurer an additional reinsurance premium
          that shall be the product of 100% of the reinsurance premium set forth
          in sub-paragraph (c) of the section entitled REINSURANCE PREMIUM for
          the Agreement Year multiplied by the amount of the reinstated Limit of
          Liability of the Reinsurer divided by $5,000,000.

The reinsurance premium so developed for each amount reinstated shall be in
addition to the reinsurance premium set forth in the section entitled
REINSURANCE PREMIUM."

IT IS FURTHER AGREED that, as respects Terrorism Occurrences taking place at and
after 12:01 A.M., January 1, 2007, EXHIBIT B to this Agreement is hereby renewed
subject to all its terms, conditions and limitations, except as modified below,
for a period of one year. Accordingly:

     I - The first paragraph of SECTION 2 - TERM is amended to read:

"This Exhibit shall apply to new and renewal policies of the Company becoming
effective at and after 12:01 A.M., January 1, 2007, and to policies of the
Company in force at 12:01 A.M., January 1, 2007, with respect to claims and
losses resulting from Terrorism Occurrences taking place at and after the
aforesaid time and date, and prior to 12:01 A.M., January 1, 2008."

                         GENERAL REINSURANCE CORPORATION

                                       -3-

<PAGE>

     II - SECTION 3 is amended to read:

"SECTION 3 - LIABILITY OF THE REINSURER

The Reinsurer shall pay to the Company, with respect to each Risk of the
Company, the amount of Net Loss sustained by the Company in excess of the
Company Retention but not exceeding the Limits of Liability of the Reinsurer as
set forth in the Schedule of Reinsurance.

                             SCHEDULE OF REINSURANCE

<TABLE>
<CAPTION>
                                            Limits of Liability
                                              of the Reinsurer
                                        ---------------------------
                                            FIRST         SECOND
Class of Business   Company Retention   EXCESS COVER   EXCESS COVER
-----------------   -----------------   ------------   ------------
<S>                 <C>                 <C>            <C>
Property Business      $2,000,000        $8,000,000     $5,000,000
</TABLE>

The liability of the Reinsurer shall not exceed $8,000,000 under the First
Excess Cover nor $5,000,000 under the Second Excess Cover with respect to all
Net Loss arising out of all loss or damage directly or indirectly arising out
of, caused by, or resulting from all Terrorism Occurrences taking place during
each Agreement Year, regardless of any other cause or event contributing to such
loss or damage in any way or at any time, or whether such loss or damage is
accidental or intentional.

All insurance written under one or more policies of the Company against the same
peril on the same Risk shall be combined, and the Company Retention and the
Limits of Liability of the Reinsurer shall be determined on the basis of the sum
of all insurance against the same peril and on the same Risk which is in force
at the time of a claim or loss."

     II - SECTION 6 is amended to read:

"SECTION 6 - REINSURANCE PREMIUM

The Company shall pay to the Reinsurer:

     (a)  For the First Excess Cover, a flat reinsurance premium of $640,000 for
          the term of this Exhibit;

     (b)  For the Second Excess Cover, a flat reinsurance premium of $400,000
          for the term of this Exhibit."

IN WITNESS WHEREOF, the parties hereto have caused this Endorsement to be
executed

                         GENERAL REINSURANCE CORPORATION

                                       -4-

<PAGE>

in duplicate,

this 7th day of February 2007,

                                        PHILADELPHIA INDEMNITY COMPANY
                                        PHILADELPHIA INSURANCE COMPANY

                                        /s/ Christopher J. Maguire
                                        ----------------------------------------
                                        Executive VP & CUO

Attest: /s/ William A. McKenna
        -----------------------------

and this 15th day of January, 2007.

                                        GENERAL REINSURANCE CORPORATION

                                        /s/ Joan LaFrance
                                        ----------------------------------------
                                        Vice President

Attest: /s/ Diane B. Hyland
        -----------------------------

                                Endorsement No. 6
                               Agreement No. 9034
                         GENERAL REINSURANCE CORPORATION

                                       -5-<PAGE>

                                                                    EXHIBIT 10.4

                         PHILADELPHIA INSURANCE COMPANY
                            BALA CYNWYD, PENNSYLVANIA
                    PHILADELPHIA INDEMNITY INSURANCE COMPANY
                            BALA CYNWYD, PENNSYLVANIA

                     PROPERTY FOURTH PER RISK EXCESS OF LOSS
                              REINSURANCE AGREEMENT

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                                     PAGE
-------                                                                     ----
<S>                                                                         <C>
I      BUSINESS COVERED (WBUS5)                                               1
II     TERM                                                                   1
III    SPECIAL TERMINATION                                                    2
IV     DEFINITIONS                                                            4
          Building                                                            4
          Declaratory Judgment Expense (WDEF305)                              4
          Extra Contractual Obligations/Loss in Excess of Policy Limits
          (WDEF104)                                                           4
          Loss Adjustment Expense (WDEF307)                                   5
          Loss Occurrence (NMA 2244/BRMA 27A)                                 5
          Net Earned Premium                                                  6
          Policy or Policies                                                  6
          Risk                                                                7
          Terrorism                                                           7
          Ultimate Net Loss                                                   8
V      TERRITORY (BRMA 51A)                                                   8
VI     EXCLUSIONS                                                             8
VII    COVERAGE                                                              10
VIII   REINSTATEMENT                                                         11
IX     REINSURANCE PREMIUM                                                   11
X      NOTICE OF LOSS AND LOSS SETTLEMENTS                                   12
XI     AGENCY AGREEMENT (WAGE1)                                              12
XII    SALVAGE AND SUBROGATION (WSAL1)                                       13
XIII   ERRORS AND OMISSIONS (BRMA 14C)                                       13
XIV    OFFSET                                                                13
XV     CURRENCY (BRMA 12A)                                                   13
XVI    TAXES (BRMA 50C)                                                      14
XVII   FEDERAL EXCISE TAX (BRMA 17A)                                         14
XVIII  UNAUTHORIZED REINSURANCE (BRMA 55C)                                   14
XIX    NET RETAINED LINES (BRMA 32E)                                         16
XX     TRIA INUREMENT                                                        16
XXI    SPECIAL ACCEPTANCES                                                   17
XXII   MORTGAGEE REINSURANCE ENDORSEMENTS                                    17
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
XXIII  THIRD PARTY RIGHTS (BRMA 52C MODIFIED)                                18
XXIV   SEVERABILITY (WSEV1)                                                  18
XXV    GOVERNING LAW (BRMA 71A)                                              18
XXVI   ACCESS TO RECORDS (BRMA 1E)                                           19
XXVII  INSOLVENCY                                                            19
XXVIII ARBITRATION (WARB1)                                                   20
XXIX   SERVICE OF SUIT (WSOS4)                                               21
XXX    MODE OF EXECUTION (WMOE1)                                             22
XXXI   INTERMEDIARY (WINT8)                                                  23
       Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance
       - U.S.A.
       War Exclusion
</TABLE>

<PAGE>

                     PROPERTY FOURTH PER RISK EXCESS OF LOSS
                              REINSURANCE AGREEMENT
                                (the "Contract")

                                     between

                         PHILADELPHIA INSURANCE COMPANY
                    PHILADELPHIA INDEMNITY INSURANCE COMPANY
                            BALA CYNWYD, PENNSYLVANIA
        And any additional company established or acquired by the Company
                                 (the "Company")

                                       and

                   THE SUBSCRIBING REINSURER(S) EXECUTING THE
                     INTERESTS AND LIABILITIES AGREEMENT(S)
                                 ATTACHED HERETO
                                (the "Reinsurer")

                                    ARTICLE I

BUSINESS COVERED (WBUS5)

By this Contract the Reinsurer agrees to reinsure the excess liability of the
Company under its Policies in force at the effective time and date hereof or
issued or renewed at or after that time and date, and classified by the Company
as Property business which is defined as insurance which is classified in the
NAIC Annual Statement as fire, allied lines, inland marine, commercial multiple
peril (property coverages), automobile physical damage (comprehensive and
collision) when written on a garage or open lot basis, and insurance that is
classified by the Company as crime and fidelity (property coverages) when
written as part of a package policy, subject to the terms, conditions and
limitations hereafter set forth.

                                   ARTICLE II

TERM

A.   This Contract shall become effective at 12:01 a.m., Eastern Standard Time,
     January 1, 2007 as respects losses occurring at or after that time and
     date, and shall continue in effect until 12:01 a.m., Eastern Standard Time,
     January 1, 2008.

                                     Page 1

<PAGE>

B.   Upon termination of this Contract, the entire liability of the Reinsurer
     for losses occurring subsequent to the date of termination shall cease
     concurrently with the date of termination of this Contract.

C.   Notwithstanding the above, the Company shall have the option to elect
     run-off coverage for Policies in force at the expiration of this Contract.
     If the Company chooses to run off liability, the Company will notify the
     Reinsurer prior to January 31, 2008. If run-off of liability is chosen, the
     Reinsurer shall continue to be liable for Ultimate Net Loss incurred by the
     Company under all Policies in force at the time and date of expiration
     until each Policy's next anniversary, renewal or expiration, but in no
     event shall the Reinsurer's liability continue for more than 12 months
     after the expiration date plus odd time, not to exceed a total of 18
     months. The premium for the run-off coverage shall be the premium rate
     stated in paragraph A of the REINSURANCE PREMIUM ARTICLE times its Net
     Earned Premium for the run-off period for the Policies in force as of
     December 31, 2007.

D.   If this Contract expires while a Loss Occurrence covered hereunder is in
     progress, the Reinsurer's liability hereunder shall, subject to the other
     terms and conditions of this Contract, be determined as if the entire Loss
     Occurrence had occurred prior to the expiration of this Contract, provided
     that no part of such Loss Occurrence is claimed against any renewal or
     replacement of this Contract.

                                   ARTICLE III

SPECIAL TERMINATION

A.   The Company may terminate this Contract at any time by the giving of 10
     days' notice in writing to the Reinsurer upon the happening of any one of
     the following circumstances:

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

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

     3.   The Reinsurer's policyholders' surplus has been reduced by whichever
          is greater, either 25% of the amount of surplus at the inception of
          this Contract or 25% of the amount at the latest anniversary, or has
          lost any part of, or has reduced its paid in capital; or

     4.   The Reinsurer has become merged with, acquired or controlled by any
          company, corporation or individual(s) not controlling the party's
          operations at the inception of this Contract; or

                                     Page 2
<PAGE>

     5.   The Reinsurer has reinsured its entire liability under this Contract
          without the terminating party's prior written consent; or

     6.   The Reinsurer ceases writing new or renewal business.

     7.   The Reinsurer has been assigned an A.M. Best's rating of less than
          "A-" or a Standard & Poor's Insurer Financial Strength Rating of less
          than "A-".

B.   Notwithstanding any other termination provision of this Contract, if this
     Contract is terminated under the provisions of this Article, the Company
     shall have the right to terminate liability for losses occurring subsequent
     to termination of this Contract. In such event, the Reinsurer shall return
     the unearned portion, if any, less any commission allowed thereon, of
     premiums paid hereunder and the minimum premium provisions, if any, shall
     be waived.

C.   Additionally, the Company, at its sole discretion, may elect to commute the
     Reinsurer's liabilities for loss and Loss Adjustment Expenses, whether
     known and unknown, on Policies covered under this Contract. In the event
     the Company and the Reinsurer cannot agree on the capitalized value of the
     Reinsurer's liabilities on the Policies covered under this Contract, the
     two parties shall mutually appoint an actuary to resolve the matter of
     valuation. If the two parties cannot agree on the appointment of an
     actuary, a selection process based on the ARBITRATION ARTICLE will be
     employed. Payment by the Reinsurer of the amount ascertained will
     constitute full and final release of the Reinsurer's liabilities hereunder.

D.   The Company may request special funding for any Reinsurer's participation
     if this Contract is terminated for reasons set forth in subparagraph A.1-7
     above. If the Company elects to exercise its special funding option, said
     Reinsurer will, within 30 calendar days of the date of the Company's
     request to do so, provide the Company with a cash advance, trust agreement,
     escrow account for the benefit of the Company, letter of credit, or a
     combination thereof acceptable to the Company to fund the Reinsurer's share
     of the reserves hereunder for losses (including loss and loss expense paid
     by the Company but not recovered from the Reinsurer, loss and loss expense
     reported and outstanding, loss and loss expenses incurred but not reported)
     and unearned premium, as if it were an unauthorized Reinsurer and subject
     to the UNAUTHORIZED REINSURANCE ARTICLE. This paragraph D shall not apply
     to Reinsurers who, at the inception of this Contract, have been assigned an
     A.M. Best's Financial Strength Rating of A+ or higher or a Standard &
     Poor's rating of A+ or higher or to Underwriting Members of Lloyd's,
     London.

                                     Page 3

<PAGE>

                                   ARTICLE IV

DEFINITIONS

A.   Building

     "Building" as used herein shall mean such structure enclosed within
     exterior walls. Exterior walls are defined as walls constructed on the
     perimeter foundation, regardless of the number of additional structures or
     roofs placed upon this perimeter foundation.

B.   Declaratory Judgment Expense (WDEF305)

     "Declaratory Judgment Expense" as used herein shall mean all expenses
     incurred by the Company in connection with a declaratory judgment action
     brought to determine the Company's defense and/or indemnification
     obligations that are allocable to a specific claim subject to this
     Contract. Declaratory Judgment Expense shall be deemed to have been
     incurred on the date of the original loss (if any) giving rise to the
     declaratory judgment action.

C.   Extra Contractual Obligations/Loss in Excess of Policy Limits (WDEF104)

     1.   Extra Contractual Obligations

          This Contract shall protect the Company for any "Extra Contractual
          Obligations" which as used herein shall mean any punitive, exemplary,
          compensatory or consequential damages, other than Loss in Excess of
          Policy Limits, paid or payable by the Company as a result of an action
          against it by its insured, its insured's assignee or a third party
          claimant, by reason of alleged or actual negligence, fraud or bad
          faith on the part of the Company in handling a claim under a Policy
          subject to this Contract.

          An Extra Contractual Obligation shall be deemed to have occurred on
          the same date as the loss covered or alleged to be covered under the
          Policy.

     2.   Loss in Excess of Policy Limits

          This Contract shall protect the Company for any "Loss in Excess of
          Policy Limits" which as used herein shall mean an amount that the
          Company would have been contractually liable to pay had it not been
          for the limit of the original Policy as a result of an action against
          it by its insured or its insured's assignee or a third party claimant.
          Such loss in excess of the limit shall have been incurred because of
          failure by the Company to settle within the Policy limit, or by reason
          of alleged or actual negligence, fraud, or bad faith in rejecting an
          offer of settlement or in the preparation of the defense or in the
          trial of any action against its insured or in the preparation or
          prosecution of an appeal consequent upon such action.

     3.   This paragraph C shall not apply where an Extra Contractual Obligation
          and/or Loss in Excess of Policy Limits has been incurred due to the
          fraud committed by a member

                                     Page 4

<PAGE>

          of the Board of Directors or a corporate officer of the Company acting
          individually or collectively or in collusion with a member of the
          Board of Directors or a corporate officer or a partner of any other
          corporation or partnership.

     4.   Recoveries from any form of insurance or reinsurance which protects
          the Company against claims which are the subject matter of this
          paragraph C shall inure to the benefit of this Contract.

D.   Loss Adjustment Expense (WDEF307)

     "Loss Adjustment Expense" as used herein shall mean all costs and expenses
     allocable to a specific claim that are incurred by the Company in the
     investigation, appraisal, adjustment, settlement, litigation, defense or
     appeal of a specific claim, including court costs and costs of supersedeas
     and appeal bonds, and including 1) pre-judgment interest, unless included
     as part of the award or judgment; 2) post-judgment interest; 3) legal
     expenses and costs incurred in connection with coverage questions and legal
     actions connected thereto, including Declaratory Judgment Expense; and 4) a
     pro rata share of salaries and expenses of Company field employees, and
     expenses of other Company employees who have been temporarily diverted from
     their normal and customary duties and assigned to the field adjustment of
     losses covered by this Contract. Loss Adjustment Expense does not include
     unallocated loss adjustment expense. Unallocated loss adjustment expense
     includes, but is not limited to, salaries and expenses of employees, other
     than (4) above, and office and other overhead expenses.

E.   Loss Occurrence (NMA 2244/BRMA 27A)

     1.   The term "Loss Occurrence" shall mean the sum of all individual losses
          directly occasioned by any one disaster, accident or loss or series of
          disasters, accidents or losses arising out of one event which occurs
          within the area of one state of the United States or province of
          Canada and states or provinces contiguous thereto and to one another.
          However, the duration and extent of any one "Loss Occurrence" shall be
          limited to all individual losses sustained by the Company occurring
          during any period of 168 consecutive hours arising out of and directly
          occasioned by the same event except that the term "Loss Occurrence"
          shall be further defined as follows:

          a.   As regards windstorm, hail, tornado, hurricane, cyclone,
               including ensuing collapse and water damage, all individual
               losses sustained by the Company occurring during any period of 72
               consecutive hours arising out of and directly occasioned by the
               same event. However, the event need not be limited to one state
               or province or states or provinces contiguous thereto.

          b.   As regards riot, riot attending a strike, civil commotion,
               vandalism and malicious mischief, all individual losses sustained
               by the Company occurring during any period of 72 consecutive
               hours within the area of one municipality or county and the
               municipalities or counties contiguous thereto arising out of and
               directly occasioned by the same event. The maximum duration of 72
               consecutive hours may be extended in respect of individual losses
               which

                                     Page 5

<PAGE>

               occur beyond such 72 consecutive hours during the continued
               occupation of an assured's premises by strikers, provided such
               occupation commenced during the aforesaid period.

          c.   As regards earthquake (the epicenter of which need not
               necessarily be within the territorial confines referred to in the
               introductory portion of subparagraph 1) and fire following
               directly occasioned by the earthquake, only those individual fire
               losses which commence during the period of 168 consecutive hours
               may be included in the Company's "Loss Occurrence."

          d.   As regards "freeze," only individual losses directly occasioned
               by collapse, breakage of glass and water damage (caused by
               bursting of frozen pipes and tanks) may be included in the
               Company's "Loss Occurrence."

     2.   Except for those "Loss Occurrences" referred to in subparagraphs a and
          b above, the Company may choose the date and time when any such period
          of consecutive hours commences provided that it is not earlier than
          the date and time of the occurrence of the first recorded individual
          loss sustained by the Company arising out of that disaster, accident
          or loss and provided that only one such period of 168 consecutive
          hours shall apply with respect to one event.

     3.   However, as respects those "Loss Occurrences" referred to in
          subparagraphs a and b above, if the disaster, accident or loss
          occasioned by the event is of greater duration than 72 consecutive
          hours, then the Company may divide that disaster, accident or loss
          into two or more "Loss Occurrences" provided no two periods overlap
          and no individual loss is included in more than one such period and
          provided that no period commences earlier than the date and time of
          the occurrence of the first recorded individual loss sustained by the
          Company arising out of that disaster, accident or loss.

     4.   No individual losses occasioned by an event that would be covered by
          72 hours clauses may be included in any "Loss Occurrence" claimed
          under the 168 hours provision.

F.   Net Earned Premium

     "Net Earned Premium" as used herein is defined as gross earned premium of
     the Company during the term of the Contract for the classes of business
     reinsured hereunder, less the earned portion of premiums ceded by the
     Company for reinsurance which inures to the benefit of this Contract.

G.   Policy or Policies

     "Policy" or "Policies" as used herein shall mean the Company's binders,
     policies and contracts providing insurance and reinsurance on the classes
     of business covered under this Contract.

                                     Page 6

<PAGE>

H.   Risk

     "Risk" as used herein shall mean what constitutes one Risk as established
     by the Company at the time of acceptance, provided:

     1.   A building and its contents, regardless of the number of insureds or
          Policies involved, including time element coverages, shall never be
          considered more than one Risk.

     2.   When two or more Buildings and their contents are situated at the same
          general location, the Company shall identify on its records at the
          time of acceptance by the Company those individual Buildings and their
          contents that are considered to constitute each Risk; if such
          identification is not made, all of the Buildings and their contents
          situated at the same general location shall be considered one Risk.

     3.   When there are known and named extensions of coverage involving other
          risk locations (including but not limited to suppliers extensions,
          customer extensions and interdependencies and whether triggered by
          physical loss at the risk location or another location) that are
          included and formally recorded on the Company's records at the time of
          acceptance of the Risk, all such known and named extensions of
          coverage shall be included in calculation of the one Risk.

I.   Terrorism

     "Terrorism" as used herein shall mean:

     1.   An activity, including the threat of an activity or any preparation
          for an activity, that (a) causes either (i) damage to property or (ii)
          injury to persons and (b) appears to be intended to: (i) intimidate or
          coerce a civilian population or (ii) disrupt any segment of an economy
          or (iii) influence the policy of a government by intimidation or
          coercion or (iv) affect the conduct of a government by destruction,
          assassination, kidnapping or hostage-taking or (v) advance a
          political, religious or ideological cause; provided, however, that an
          act of Terrorism for purposes of this definition shall not include any
          act or threat as described above perpetrated by an official, employee
          or agent of a foreign state acting for or on behalf of such state.

     2.   Any act authorized by a governmental authority for the purpose of
          preventing, terminating, countering or responding to any act or threat
          of terrorism or for the purpose of preventing or minimizing the
          consequences of any act or threat of Terrorism.

     3.   An activity that involves the use, release or escape of nuclear
          materials, or directly or indirectly results in nuclear reaction or
          radiation or radioactive contamination, and it appears that one
          purpose of the terrorism was to release such materials.

     4.   An activity that is carried out by means of the dispersal or
          application of pathogenic or poisonous biological or chemical
          materials or an activity where pathogenic or poisonous biological or
          chemical materials are released, and it appears that one purpose of
          the terrorism was to release such materials.

                                     Page 7
<PAGE>

J.   Ultimate Net Loss

     The term "Ultimate Net Loss" shall mean the actual loss, including any
     pre-judgment interest which is included as part of the award or judgment,
     Loss Adjustment Expense, 100% of Loss in Excess of Policy Limits, and 100%
     of Extra Contractual Obligations, paid or to be paid by the Company on its
     net retained liability after making deductions for all recoveries,
     salvages, subrogations and all claims on inuring reinsurance, whether
     collectible or not; provided, however, that in the event of the insolvency
     of the Company, payment by the Reinsurer shall be made in accordance with
     the provisions of the INSOLVENCY ARTICLE. Nothing herein shall be construed
     to mean that losses under this Contract are not recoverable until the
     Company's Ultimate Net Loss has been ascertained.

                                    ARTICLE V

TERRITORY (BRMA 51A)

The territorial limits of this Contract shall be identical with those of the
Company's Policies.

                                   ARTICLE VI

EXCLUSIONS

This Contract shall not apply to and specifically excludes the following:

A.   Reinsurance assumed by the Company other than reinsurance of primary
     business assumed from affiliated companies;

B.   Nuclear incident per the Nuclear Incident Exclusion Clause - Physical
     Damage - Reinsurance attached hereto;

C.   Self-insurance or self-insured obligations, howsoever styled, of the
     Company, its affiliates or subsidiaries, or any insurance wherein the
     Company, its affiliates or subsidiaries are named as the insured party,
     either alone or jointly with some other party, notwithstanding that no
     legal liability may arise in respect thereof by reason of the fact that the
     Company, its affiliates or subsidiaries, may not be obligated by law to pay
     a claim to itself, its affiliates or subsidiaries;

D.   Any loss or liability accruing to the Company directly or indirectly from
     any insurance written by or through any pool or association including pools
     or associations in which membership by the Company is required under any
     statutes or regulations;

E.   Any liability of the Company arising from its participation or membership
     in any insolvency fund;

F.   War per the attached "War Exclusion" attached hereto;

                                     Page 8

<PAGE>

G.   Risks written on a layered basis, whether primary or excess of loss, or
     policies written with a deductible or franchise of more than $500,000;
     however, this exclusion shall not apply to policies which provide a
     percentage deductible or franchise in connection with windstorm, earthquake
     or flood;

H.   Pollution to the extent excluded in the Company's policies. Nevertheless,
     if the insured elects to purchase any "buy back" or additional coverage
     options, such options shall not be covered hereunder; however, this
     exclusion shall not apply:

     1.   When a judicial entity having legal jurisdiction invalidates the
          Company's Pollution exclusion, thereby obligating the Company for
          liability when such liability for Pollution was intended to be
          excluded by the Company's exclusion.

     2.   In respect of any Policy written in a state whose insurance regulatory
          authorities have prohibited the Company from including a Pollution
          liability exclusion in its Policies.

I.   Insurance against earthquake, except when written in conjunction with fire
     and otherwise eligible perils;

J.   Insurance on growing crops;

K.   Insurance against flood, waves, tidal waves, overflow of any body of water,
     or their spray, all whether driven by wind or not, except when written in
     conjunction with fire and otherwise eligible perils;

L.   Business classified as fidelity, however this exclusion shall not apply to
     crime and fidelity with limits no greater than $2,000,000 when written as
     part of a package policy;

M.   Credit insurance;

N.   Business classified as boiler and machinery;

O.   Mortgage impairment insurance and similar kinds of insurance, howsoever
     styled, providing coverage to an insured with respect to its mortgagee
     interest in property or its owner interest in foreclosed property;

P.   Difference in conditions insurance and similar kinds of insurance,
     howsoever styled;

Q.   Any incident that involves the use, release or escape of pathogenic or
     poisonous biological or chemical materials or of nuclear materials, or to
     any incident that directly or indirectly results in nuclear reaction or
     radiation or radioactive contamination. However, this exclusion does not
     apply to the Terrorism Annual Aggregate Limit for the excess layer as
     stated in paragraph B of the COVERAGE ARTICLE.

R.   Losses with respect to overhead transmission and distribution lines and
     their supporting structures, other than those on or within 1,000 feet of
     the insured premises. However, public utilities extension and/or suppliers'
     extension and/or contingent business

                                     Page 9

<PAGE>

     interruption coverage are not subject to this exclusion, provided these are
     not part of a transmitters' or distributors' policy.

S.   Offshore property Risks;

T.   Inland marine business with respect to the following:

     1.   Cargo insurance when written as such with respect to ocean vessels;

     2.   Faulty Film, tape, processing and editing insurance and cast
          insurance;

     3.   Drilling rigs for natural fuels;

     4.   Furriers' customers policies;

     5.   Insurance on livestock under so-called "mortality policies";

     6.   Mining equipment while underground;

     7.   Registered mail and armored car insurance;

U.   Loss of, damage to, or failure of, or consequential loss resulting
     therewith (including but not limited to earnings and extra expense) of
     satellites, spacecraft, and launch vehicles, including cargo and freight
     carried therein, in all phases of operation (including but not limited to
     pre-launch, launch, and in-orbit).

V.   Mobile homes unless written as part of a commercial multiple peril policy.

W.   Watercraft, other than watercraft insured under a standard homeowners
     policy or when written as part of contents coverage under a commercial
     multiple peril policy.

If the Company is bound without knowledge of or contrary to the instructions of
the Company's supervisory underwriting personnel, or any business falling within
the scope of one or more of the exclusions set forth in this section, these
exclusions, except A, B, C, D, E, F, H, J, L, M, O, shall suspend with respect
to such business until 60 days after an underwriting supervisor of the Company
acquires knowledge of such business.

Should any judicial or regulatory entity having jurisdiction invalidate any
exclusion in the Company's Policy that is also the subject of one or more of the
exclusions herein, then a loss for which the Company is liable because of such
invalidation shall not be excluded hereunder.

                                   ARTICLE VII

COVERAGE

A.   The Reinsurer shall be liable for the amount of Ultimate Net Loss in excess
     of the Company's retention, being $15,000,000 each risk, each loss, subject
     to a limit of liability to the Reinsurer of $35,000,000 each risk, each
     loss, and further subject to a limit of

                                    Page 10

<PAGE>

     liability to the Reinsurer of $35,000,000 each Loss Occurrence. The
     Reinsurer's limit of liability in respect to all risks, all losses shall
     not exceed $70,000,000.

B.   The Reinsurer's liability in respect to Terrorism losses shall not exceed
     $35,000,000.

C.   The Company shall maintain in force other reinsurance, recoveries under
     which shall inure to the benefit of this Contract.

D.   The Company shall be permitted to carry underlying reinsurance, recoveries
     under which shall inure solely to the benefit of the Company and be
     entirely disregarded in applying all of the provisions of this Contract.

                                  ARTICLE VIII

REINSTATEMENT

A.   Should all or any part of the Reinsurer's limit of liability be exhausted
     as a result of a loss, the sum so exhausted shall be reinstated from the
     date the loss commenced.

B.   For each amount so reinstated, the Company agrees to pay an additional
     premium at the time of the Reinsurer's payment of the loss calculated in
     accordance with the following formula:

     1.   The amount of limit exhausted for each risk, each loss divided by
          $35,000,000.

     2.   The reinsurance premium paid or payable for the term of this Contract.

     The dollar amount resulting from the multiplication of subparagraphs 1 and
     2 above shall equal the reinstatement premium. If at the time of the
     Reinsurer's payment of a loss hereon, the reinsurance premium as calculated
     under this Contract is unknown, the calculation of the reinstatement
     premium shall be based upon the deposit premium subject to adjustment when
     the reinsurance premium is finally established.

C.   Nevertheless, the Reinsurer's liability hereunder shall not exceed
     $35,000,000 in respect of each risk, each loss in respect of any one loss,
     and shall be further limited to $35,000,000 each Loss Occurrence, and shall
     be further limited to $70,000,000 in respect of all risks, all losses
     occurring during the term of this Contract.

                                   ARTICLE IX

REINSURANCE PREMIUM

A.   As premium for the reinsurance provided hereunder, the Company shall pay
     the Reinsurer 0.635% of its Net Earned Premium during the term of this
     Contract, subject to a minimum premium of $2,362,500.

                                    Page 11

<PAGE>

B.   The Company shall pay the Reinsurer a deposit premium of $2,625,000 in four
     equal installments of $656,250 on April 1; July 1; October 1, 2007; and
     January 1, 2008.

C.   Within 90 days after the expiration of this Contract, the Company shall
     provide a report to the Reinsurer setting forth the premium due hereunder,
     computed in accordance with paragraph A, and any additional premium due the
     Reinsurer or return premium due the Company shall be remitted promptly.

                                    ARTICLE X

NOTICE OF LOSS AND LOSS SETTLEMENTS

A.   The Company shall advise the Reinsurer promptly of all losses which, in the
     opinion of the Company, may result in a claim hereunder and of all
     subsequent developments thereto which, in the opinion of the Company, may
     materially affect the position of the Reinsurer.

B.   When so requested in writing, the Company shall afford the Reinsurer or its
     representatives an opportunity to be associated with the Company, at the
     expense of the Reinsurer, in the defense of any claim, suit or proceeding
     involving this reinsurance, and the Company and the Reinsurer shall
     cooperate in every respect in the defense of such claim, suit or
     proceeding.

C.   All loss settlements made by the Company that are within the terms and
     conditions of the Policy or by way of compromise, and except as otherwise
     provided in this Contract, shall be binding upon the Reinsurer. Upon
     receipt of satisfactory proof of loss and within no more than 25 days of
     receipt of the proof of loss, the Reinsurer agrees to pay or allow, as the
     case may be, its share of each such settlement in accordance with this
     Contract.

D.   Ex-gratia payments shall be recoverable hereunder only where the Company,
     through written communication prior to settlement, counsels with the
     Reinsurer and the Reinsurer concurs, in writing, with the settlement
     proposed by the Company.

                                   ARTICLE XI

AGENCY AGREEMENT (WAGE1)

If more than one reinsured company is named as a party to this Contract, the
first named company will be deemed the agent of the other reinsured companies
for purposes of sending or receiving notices required by the terms and
conditions of this Contract and for purposes of remitting or receiving any
monies due any party.

                                    Page 12

<PAGE>

                                   ARTICLE XII

SALVAGE AND SUBROGATION (WSAL1)

The Reinsurer shall be credited with salvage or subrogation recoveries (i.e.,
reimbursement obtained or recovery made by the Company, less Loss Adjustment
Expense incurred in obtaining such reimbursement or making such recovery) on
account of claims and settlements involving reinsurance hereunder. Salvage and
subrogation recoveries thereon shall always be used to reimburse the excess
carriers in the reverse order of their priority according to their participation
before being used in any way to reimburse the Company for its primary loss. The
Company hereby agrees to enforce its rights to salvage or subrogation relating
to any loss, a part of which loss was sustained by the Reinsurer, and to
prosecute all claims arising out of such rights.

                                  ARTICLE XIII

ERRORS AND OMISSIONS (BRMA 14C)

Any inadvertent delay, omission or error shall not be held to relieve either
party hereto from any liability which would attach to it hereunder if such
delay, omission or error had not been made, provided such omission or error is
rectified upon discovery.

                                   ARTICLE XIV

OFFSET

The Company and the Reinsurer may offset any balance, whether on account of
premium, commission, claims or losses, Loss Adjustment Expense, salvage, or
otherwise, due from one party to the other under the terms of this Contract or
under any other agreement heretofore or hereafter entered into between the
Company and the Reinsurer.

                                   ARTICLE XV

CURRENCY (BRMA 12A)

A.   Whenever the word "Dollars" or the "$" sign appears in this Contract, they
     shall be construed to mean United States Dollars and all transactions under
     this Contract shall be in United States Dollars.

B.   Amounts paid or received by the Company in any other currency shall be
     converted to United States Dollars at the rate of exchange at the date such
     transaction is entered on the books of the Company.

                                    Page 13

<PAGE>

                                   ARTICLE XVI

TAXES (BRMA 50C)

In consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America, the District of Columbia or Canada.

                                  ARTICLE XVII

FEDERAL EXCISE TAX (BRMA 17A)

(Applicable to those subscribing reinsurers, excepting Underwriters at Lloyd's
London and other subscribing reinsurers exempt from Federal Excise Tax, who are
domiciled outside the United States of America.)

A.   The subscribing reinsurer has agreed to allow, for the purpose of paying
     the Federal Excise Tax, the applicable percentage of the premium payable
     hereon (as imposed under Section 4371 of the Internal Revenue Code) to the
     extent such premium is subject to the Federal Excise Tax.

B.   In the event of any return of premium becoming due hereunder, the
     subscribing reinsurer will deduct the applicable percentage from the return
     premium payable hereon, and the Company or its agent should take steps to
     recover the tax from the United States Government.

                                  ARTICLE XVIII

UNAUTHORIZED REINSURANCE (BRMA 55C)

(Applies only to a subscribing reinsurer who does not qualify for full credit
with any insurance regulatory authority having jurisdiction over the Company's
reserves.)

A.   As regards Policies or bonds issued by the Company coming within the scope
     of this Contract, the Company agrees that when it shall file with the
     insurance regulatory authority or set up on its books reserves for losses
     covered hereunder which it shall be required by law to set up, it will
     forward to the subscribing reinsurer a statement showing the proportion of
     such reserves which is applicable to the subscribing reinsurer. The
     subscribing reinsurer hereby agrees to fund such reserves in respect of
     known outstanding losses that have been reported to the subscribing
     reinsurer and allocated Loss Adjustment Expense relating thereto, losses
     and allocated Loss Adjustment Expense paid by the Company but not recovered
     from the subscribing reinsurer, plus reserves for losses incurred but not
     reported, as shown in the statement prepared by the Company (hereinafter
     referred to as "subscribing reinsurer's obligations") by funds withheld,
     cash advances or a Letter of Credit. The subscribing reinsurer shall have
     the option of determining the method

                                    Page 14

<PAGE>

     of funding provided it is acceptable to the insurance regulatory
     authorities having jurisdiction over the Company's reserves.

B.   When funding by a Letter of Credit, the subscribing reinsurer agrees to
     apply for and secure timely delivery to the Company of a clean, irrevocable
     and unconditional Letter of Credit issued by a bank and containing
     provisions acceptable to the insurance regulatory authorities having
     jurisdiction over the Company's reserves in an amount equal to the
     subscribing reinsurer's proportion of said reserves. Such Letter of Credit
     shall be issued for a period of not less than one year, and shall be
     automatically extended for one year from its date of expiration or any
     future expiration date unless 30 days (60 days where required by insurance
     regulatory authorities) prior to any expiration date the issuing bank shall
     notify the Company by certified or registered mail that the issuing bank
     elects not to consider the Letter of Credit extended for any additional
     period.

C.   The subscribing reinsurer and Company agree that the Letters of Credit
     provided by the subscribing reinsurer pursuant to the provisions of this
     Contract may be drawn upon at any time, notwithstanding any other provision
     of this Contract, and be utilized by the Company or any successor, by
     operation of law, of the Company including, without limitation, any
     liquidator, rehabilitator, receiver or conservator of the Company for the
     following purposes, unless otherwise provided for in a separate Trust
     Agreement:

     1.   To reimburse the Company for the subscribing reinsurer's obligations,
          the payment of which is due under the terms of this Contract and which
          has not been otherwise paid;

     2.   To make refund of any sum which is in excess of the actual amount
          required to pay the subscribing reinsurer's obligations under this
          Contract;

     3.   To fund an account with the Company for the subscribing reinsurer's
          obligations. Such cash deposit shall be held in an interest bearing
          account separate from the Company's other assets, and interest thereon
          not in excess of the prime rate shall accrue to the benefit of the
          subscribing reinsurer;

     4.   To pay the subscribing reinsurer's share of any other amounts the
          Company claims are due under this Contract.

     In the event the amount drawn by the Company on any Letter of Credit is in
     excess of the actual amount required for subparagraph 1 or 3, or in the
     case of subparagraph 4, the actual amount determined to be due, the Company
     shall promptly return to the subscribing reinsurer the excess amount so
     drawn. All of the foregoing shall be applied without diminution because of
     insolvency on the part of the Company or the subscribing reinsurer.

D.   The issuing bank shall have no responsibility whatsoever in connection with
     the propriety of withdrawals made by the Company or the disposition of
     funds withdrawn, except to ensure that withdrawals are made only upon the
     order of properly authorized representatives of the Company.

                                    Page 15

<PAGE>

E.   At annual intervals, or more frequently as agreed but never more frequently
     than quarterly, the Company shall prepare a specific statement of the
     subscribing reinsurer's obligations, for the sole purpose of amending the
     Letter of Credit, in the following manner:

     1.   If the statement shows that the subscribing reinsurer's obligations
          exceed the balance of credit as of the statement date, the subscribing
          reinsurer shall, within 30 days after receipt of notice of such
          excess, secure delivery to the Company of an amendment to the Letter
          of Credit increasing the amount of credit by the amount of such
          difference.

     2.   If, however, the statement shows that the subscribing reinsurer's
          obligations are less than the balance of credit as of the statement
          date, the Company shall, within 30 days after receipt of written
          request from the subscribing reinsurer, release such excess credit by
          agreeing to secure an amendment to the Letter of Credit reducing the
          amount of credit available by the amount of such excess credit.

                                   ARTICLE XIX

NET RETAINED LINES (BRMA 32E)

A.   This Contract applies only to that portion of any Policy which the Company
     retains net for its own account (prior to deduction of any underlying
     reinsurance specifically permitted in this Contract), and in calculating
     the amount of any loss hereunder and also in computing the amount or
     amounts in excess of which this Contract attaches, only loss or losses in
     respect of that portion of any Policy which the Company retains net for its
     own account shall be included.

B.   The amount of the Reinsurer's liability hereunder in respect of any loss or
     losses shall not be increased by reason of the inability of the Company to
     collect from any other reinsurer(s), whether specific or general, any
     amounts which may have become due from such reinsurer(s), whether such
     inability arises from the insolvency of such other reinsurer(s) or
     otherwise.

                                   ARTICLE XX

TRIA INUREMENT

A.   As respects any "insured loss," as defined in the Terrorism Risk Insurance
     Act of 2002, including the Terrorism Risk Insurance Extension Act of 2005,
     and any other extensions or amendments thereto ("TRIA"), for which the
     Reinsurer makes a payment to the Company under this Contract, the following
     provisions shall apply.

B.   If the sum of

     1.   Financial assistance provided under TRIA to the Company and its
          affiliates, if any, (as "affiliate" is defined in TRIA) with respect
          to all "insured loss" that applies to each "program year," as defined
          in TRIA and

                                    Page 16

<PAGE>

     2.   Amounts due from all reinsurance which the Company and its affiliates,
          if any, purchase, including but not limited to this reinsurance, all
          other treaty reinsurance and all facultative reinsurance, and whether
          collectible or not, under which there is a recoverable for any such
          "insured loss"

     exceeds the amount of the Company's and its affiliates', if any, gross
     "insured loss," the excess amount shall be allocated to the Reinsurer in
     the ratio that the Reinsurer's liability for the "insured loss" under this
     Contract bears to the total collectible reinsurance recoverables for the
     "insured loss" under 2 above.

C.   Upon receipt of payment under TRIA by the Company and its affiliates, if
     any, the Company shall pay to or credit the Reinsurer under this Contract
     with the Reinsurer's share of such excess amount determined in accordance
     with the preceding paragraph.

                                   ARTICLE XXI

SPECIAL ACCEPTANCES

A.   Business not within the terms of this Contract may be submitted to the
     Reinsurer for special acceptance and, if accepted by the Reinsurer, shall
     be subject to all of the terms of this Contract, except as modified by the
     Special Acceptance.

B.   Renewal of Policies, which have previously received a Special Acceptance
     under prior Contracts, are deemed to be covered hereunder.

C.   Further, should a reinsurer become party to this Contract subsequent to the
     acceptance of any business not normally covered hereunder, that reinsurer
     will automatically accept the special acceptances as being part of this
     Contract.

                                  ARTICLE XXII

MORTGAGEE REINSURANCE ENDORSEMENTS

A.   To induce a mortgagee named in a policy of the Company to accept such
     policy, the Company and the Reinsurer may agree to name such mortgagee as a
     third party beneficiary in a Mortgagee Reinsurance Endorsement made a part
     of this Contract. For each such mortgagee Reinsurance Endorsement so
     issued, the Company shall indemnify the Reinsurer for any and all
     liability, loss, cost, or expense the Reinsurer may sustain or incur in
     excess of its obligations under this Contract by reason of the issuance of
     such Mortgagee Reinsurance Endorsement.

B.   If the Reinsurer becomes liable to a mortgagee under any Mortgagee
     Reinsurance Endorsement, the Reinsurer shall, to the extent of its
     liability:

     1.   Benefit pro-rata in reductions of the Company's loss by salvage,
          subrogation, compromise, or otherwise.

                                    Page 17

<PAGE>

     2.   Be automatically subrogated to all of the mortgagee's rights against
          the Company under the policy.

     3.   Be completely discharged from its obligation to make any payment to
          the Company under this Contract and be entitled to set off against any
          amount due from the Reinsurer to the Company under this or any other
          agreement for any amounts for which the Reinsurer would not be liable
          except for the existence of such Mortgagee Reinsurance Endorsement.

C.   The Reinsurer shall have the right to cancel any Mortgagee Reinsurance
     Endorsement by notice to the mortgagee.

D.   Prior to the termination date, the Company shall advise the Reinsurer as to
     which of the above options shall apply.

                                  ARTICLE XXIII

THIRD PARTY RIGHTS (BRMA 52C MODIFIED)

Except for the provisions of the MORTGAGEE REINSURANCE ENDORSEMENTS ARTICLE,
this Contract is solely between the Company and the Reinsurer, and in no
instance shall any other party have any rights under this Contract except as
expressly provided otherwise in the INSOLVENCY ARTICLE.

                                  ARTICLE XXIV

SEVERABILITY (WSEV1)

If any provision of this Contract shall be rendered illegal or unenforceable by
the laws or regulations of any state, such provision shall be considered void in
such state, but this shall not affect the validity or enforceability of any
other provision of this Contract or the enforceability of such provision in any
other jurisdiction.

                                   ARTICLE XXV

GOVERNING LAW (BRMA 71A)

This Contract shall be governed as to performance, administration and
interpretation by the laws of the State of Pennsylvania, exclusive of that
state's rules with respect to conflicts of law, except as to rules with respect
to credit for reinsurance, in which case the applicable rules of all states
shall apply.

                                    Page 18

<PAGE>

                                  ARTICLE XXVI

ACCESS TO RECORDS (BRMA 1E)

The Reinsurer or its designated representatives shall have access to the books
and records of the Company on matters relating to this reinsurance at all
reasonable times for the purpose of obtaining information concerning this
Contract or the subject matter hereof.

                                  ARTICLE XXVII

INSOLVENCY

A.   In the event of the insolvency of the Company, this reinsurance shall be
     payable directly to the Company or to its liquidator, receiver, conservator
     or statutory successor, with reasonable provision for verification, on the
     basis of the liability of the Company without diminution because of the
     insolvency of the Company or because the liquidator, receiver, conservator
     or statutory successor of the Company has failed to pay all or a portion of
     any claim. It is agreed, however, that the liquidator, receiver,
     conservator or statutory successor of the Company shall give written notice
     to the Reinsurer of the pendency of a claim against the Company indicating
     the Policy or bond reinsured, which claim would involve a possible
     liability on the part of the Reinsurer, within a reasonable time after such
     claim is filed in the conservation or liquidation proceeding or in the
     receivership, and that during the pendency of such claim, the Reinsurer may
     investigate such claim and interpose, at its own expense, in the proceeding
     where such claim is to be adjudicated, any defense or defenses that it may
     deem available to the Company or its liquidator, receiver, conservator or
     statutory successor. The expense thus incurred by the Reinsurer shall be
     chargeable, subject to the approval of the Court, against the Company as
     part of the expense of conservation or liquidation to the extent of a
     proportionate share of the benefit which may accrue to the Company solely
     as a result of the defense undertaken by the Reinsurer.

B.   Where two or more subscribing reinsurers are involved in the same claim and
     a majority in interest elect to interpose defense to such claim, the
     expense shall be apportioned in accordance with the terms of this Contract
     as though such expense had been incurred by the Company.

C.   It is further agreed that, in the event of the insolvency of the Company,
     the reinsurance under this Contract shall be payable directly by the
     Reinsurer to the Company or its liquidator, receiver, conservator, or
     statutory successor, except as provided by Section 4118(a) of the New York
     Insurance Law or except (1) where this Contract specifically provides
     another payee of such reinsurance in the event of the insolvency of the
     Company or (2) where the Reinsurer with the consent of the direct insured
     or insureds has assumed such Policy obligations of the Company as direct
     obligations of the Reinsurer to the payees under such Policies and in
     substitution for the obligations of the Company to such payees.

                                    Page 19

<PAGE>

D.   In the event of the insolvency of any company or companies listed in the
     designation of "Company" under this Contract, this Article shall apply only
     to the insolvent company or companies.

                                 ARTICLE XXVIII

ARBITRATION (WARB1)

A.   As a condition precedent to any right of action hereunder, any
     irreconcilable dispute arising out of the interpretation, performance or
     breach of this Contract, including the formation or validity thereof,
     whether arising before or after the expiry or termination of the Contract,
     shall be submitted for decision to a panel of 3 arbitrators. Notice
     requesting arbitration will be in writing and sent by certified mail,
     return receipt requested, or such reputable courier service as is capable
     of returning proof of receipt of such notice by the recipient to the party
     demanding arbitration.

B.   One arbitrator shall be appointed by each party. If either party fails to
     appoint its arbitrator within 30 days after being requested to do so by the
     other party, the latter, after 10 days notice by certified mail or
     reputable courier as provided above of its intention to do so, may appoint
     the second arbitrator.

C.   The two arbitrators shall, before instituting the hearing, appoint an
     impartial third arbitrator who shall preside at the hearing. If the 2
     arbitrators are unable to agree upon the third arbitrator within 30 days of
     their appointment, the Company shall petition the American Arbitration
     Association to appoint the third arbitrator. If the American Arbitration
     Association fails to appoint the third arbitrator within 30 days of being
     requested to do so, either party may request a district court judge of the
     federal district court having jurisdiction over the geographical area in
     which the arbitration is to take place, or if the federal court declines to
     act, the state court having general jurisdiction in such area to select the
     third arbitrator from a list of 6 individuals (3 named by each arbitrator
     previously appointed). All arbitrators shall be disinterested active or
     former senior executives of insurance or reinsurance companies or
     Underwriters at Lloyd's, London.

D.   Within 30 days after notice of appointment of all arbitrators, the panel
     shall meet and determine timely periods for briefs, discovery procedures
     and schedules for hearings. The panel shall be relieved of all judicial
     formality and shall not be bound by the strict rules of procedure and
     evidence. Unless the panel agrees otherwise, arbitration shall take place
     in Bala Cynwyd, Pennsylvania, but the venue may be changed when deemed by
     the panel to be in the best interest of the arbitration proceeding. Insofar
     as the arbitration panel looks to substantive law, it shall consider the
     law of the State of Pennsylvania. The decision of any 2 arbitrators when
     rendered in writing shall be final and binding. The panel is empowered to
     grant interim relief as it may deem appropriate.

E.   The panel shall make its decision considering the custom and practice of
     the applicable insurance and reinsurance business as promptly as possible
     following the termination of the hearings. Judgment upon the award may be
     entered in any court having jurisdiction thereof.

                                    Page 20

<PAGE>

F.   If more than one subscribing reinsurer is involved in arbitration where
     there are common questions of law or fact and a possibility of conflicting
     awards or inconsistent results, all such subscribing reinsurers shall
     constitute and act as one party for purposes of this Article and
     communications shall be made by the Company to each of the subscribing
     reinsurers constituting the one party; provided, however, that nothing
     therein shall impair the rights of such subscribing reinsurers to assert
     several, rather than joint defenses or claims, nor be construed as changing
     the liability of the subscribing reinsurers under the terms of this
     Contract from several to joint.

G.   Each party shall bear the expense of its own arbitrator and shall jointly
     and equally bear with the other party the cost of the third arbitrator. The
     remaining costs of the arbitration shall be allocated by the panel. The
     panel may, at its discretion, award such further costs and expenses as it
     considers appropriate, including but not limited to attorneys fees, to the
     extent permitted by law. However, the panel may not award any exemplary or
     punitive damages.

                                  ARTICLE XXIX

SERVICE OF SUIT (WSOS4)

(This Article is applicable if the subscribing reinsurer is not domiciled in the
United States of America and/or is not authorized in any State, Territory or
District of the United States where authorization is required by insurance
regulatory authorities. This Article is not intended to conflict with or
override the obligation of the parties to arbitrate their disputes in accordance
with the ARBITRATION ARTICLE.)

A.   In the event of the failure of the subscribing reinsurer to pay any amount
     claimed to be due hereunder, the subscribing reinsurer, at the request of
     the Company, shall submit to the jurisdiction of a court of competent
     jurisdiction within the United States. Nothing in this Article constitutes
     or should be understood to constitute a waiver of the subscribing
     reinsurer's rights to commence an action in any court of competent
     jurisdiction in the United States, to remove an action to a United States
     District Court, or to seek a transfer of a case to another court as
     permitted by the laws of the United States or of any state in the United
     States. The subscribing reinsurer, once the appropriate court is selected,
     whether such court is the one originally chosen by the Company and accepted
     by subscribing reinsurer or is determined by removal, transfer, or
     otherwise, as provided for above, shall comply with all requirements
     necessary to give said court jurisdiction and, in any suit instituted
     against it upon this Contract, shall abide by the final decision of such
     court or of any appellate court in the event of an appeal.

B.   Service of process in such suit may be made upon the agent for the service
     of process ("agent") named below, depending on the jurisdiction where the
     Company chooses to bring suit:

     1.   If the suit is brought in the State of California, the law firm of
          Mendes and Mount, 445 South Figueroa, 38th Floor, Los Angeles,
          California 90071 shall be authorized

                                    Page 21
<PAGE>

               and directed to accept service of process on behalf of the
               subscribing reinsurer in any such suit;

          2.   If the suit is brought in the State of New York, the law firm of
               Mendes and Mount, 750 Seventh Avenue, New York, New York 10019
               shall be authorized and directed to accept service of process on
               behalf of the subscribing reinsurer in any such suit;

          3.   If the suit is brought in any state other than California or New
               York, either of the agents described in subparagraphs 1 or 2
               above shall be authorized and directed to accept service of
               process on behalf of the subscribing reinsurer in any such suit;
               or

          4.   If the subscribing reinsurer has designated an agent in the
               subscribing reinsurer's Interests and Liabilities Agreement
               attached hereto, then that agent shall be authorized and directed
               to accept service of process on behalf of the subscribing
               reinsurer in any suit. However, if an agent is designated in the
               subscribing reinsurer's Interests and Liabilities Agreement and
               the agent is not located in California as respects a suit brought
               in California or New York as respects a suit brought in New York,
               in keeping with the laws of the states of California and New York
               which require that service be made on an agent located in the
               respective state if a suit is brought in that state, the
               applicable office of Mendes and Mount stipulated in subparagraphs
               1 and 2 above must be used for service of suit unless the
               provisions of paragraph C of this Article apply.

     C.   Further, pursuant to any statute of any state, territory or district
          of the United States that makes provision therefor, the subscribing
          reinsurer hereby designates the Superintendent, Commissioner or
          Director of Insurance, or other officer specified for that purpose in
          the statute, or his successor or successors in office, as its true and
          lawful attorney upon whom may be served any lawful process in any
          action, suit or proceedings instituted by or on behalf of the Company
          or any beneficiary hereunder arising out of this Contract, and hereby
          designates the above-named as the person to whom the said officer is
          authorized to mail such process or a true copy thereof.

                                   ARTICLE XXX

MODE OF EXECUTION (WMOE1)

This Contract may be executed either by an original written ink signature of
paper documents, by an exchange of facsimile copies showing the original written
ink signature of paper documents, or by electronic signature by either party
employing appropriate software technology as to satisfy the parties at the time
of execution that the version of the document agreed to by each party shall
always be capable of authentication and satisfy the same rules of evidence as
written signatures. The use of any one or a combination of these methods of
execution shall constitute a legally binding and valid signing of this Contract.
This Contract may be executed in one or more counterparts, each of which, when
duly executed, shall be deemed an original.

                                    Page 22

<PAGE>

                                  ARTICLE XXXI

INTERMEDIARY (WINT8)

Willis Re Inc., 1835 Market Street, Suite 2700, Philadelphia, Pennsylvania 19103
is hereby recognized as the intermediary negotiating this Contract and through
whom all communications relating thereto shall be transmitted to the Company or
the Reinsurer. However, all communications concerning accounts, claim
information, funds and inquiries related thereto shall be transmitted to the
Company or the Reinsurer through Willis Re Inc., 5420 Millstream Road, P.O. Box
3000, McLeansville, North Carolina 27301-3000. Payments by the Company to Willis
Re Inc. shall be deemed to constitute payment to the Reinsurer and payments by
the Reinsurer to Willis Re Inc. shall be deemed to constitute payment to the
Company only to the extent that such payments are actually received by the
Company.

IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Contract as of the date specified below:

Signed this 24th day of January, 2007.

PHILADELPHIA INSURANCE COMPANY
PHILADELPHIA INDEMNITY INSURANCE COMPANY

By /s/ Christopher J. Maguire
   ----------------------------------
   Christopher J. Maguire
   Executive VP & CUO

                                    Page 23

<PAGE>

              NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE -
                              REINSURANCE - U.S.A.

1)   This Agreement does not cover any loss or liability accruing to the
     Reinsured, directly or indirectly, and whether as Insurer or Reinsurer,
     from any Pool of Insurers or Reinsurers formed for the purpose of covering
     Atomic or Nuclear Energy risks.

2)   Without in any way restricting the operation of paragraph (1) of this
     Clause, this Agreement does not cover any loss or liability accruing to the
     Reinsured, directly or indirectly and whether as Insurer or Reinsurer, from
     any Insurance against Physical Damage (including business interruption or
     consequential loss arising out of such Physical Damage) to:

     I.   Nuclear reactor power plants including all auxiliary property on the
          site, or

     II.  Any other nuclear reactor installation, including laboratories
          handling radioactive materials in connection with reactor
          installations, and "critical facilities" as such, or

     III. Installations for fabricating complete fuel elements or for processing
          substantial quantities of "special nuclear material," and for
          reprocessing, salvaging, chemically separating, storing or disposing
          of "spent" nuclear fuel or waste materials, or

     IV.  Installations other than those listed in paragraph 2) III above using
          substantial quantities of radioactive isotopes or other products of
          nuclear fission.

3)   Without in any way restricting the operations of paragraphs 1) and 2)
     hereof, this Agreement does not cover any loss or liability by radioactive
     contamination accruing to the Reinsured, directly or indirectly, and
     whether as Insurer or Reinsurer, from any insurance on property which is on
     the same site as a nuclear reactor power plant or other nuclear
     installation and which normally would be insured therewith except that this
     paragraph 3) shall not operate

     a) where the Reinsured does not have knowledge of such nuclear reactor
power plant or nuclear installation, or

     b) where said insurance contains a provision excluding coverage for damage
to property caused by or resulting from radioactive contamination, however
caused. However, on and after 1st, January 1960, this sub-paragraph b) shall
only apply provided the said radioactive contamination exclusion provision has
been approved by the Government Authority having jurisdiction thereof.

4)   Without in any way restricting the operations of paragraphs 1), 2) and 3)
     hereof, this Agreement does not cover any loss or liability by radioactive
     contamination accruing to the Reinsured, directly or indirectly, and
     whether as Insurer or Reinsurer, when such radioactive contamination is a
     named hazard specifically insured against.

5)   It is understood and agreed that this Clause shall not extend to risks
     using radioactive isotopes in any form where the nuclear exposure is not
     considered by the Reinsured to be the primary hazard.

6)   The term "special nuclear material" shall have the meaning given it in the
     Atomic Energy Act of 1954, or by any law amendatory thereof.

7)   Reinsured to be sole judge of what constitutes:

     a) substantial quantities, and

     b) the extent of installation, plant or site.

NOTE: Without in any way restricting the operations of paragraph 1) hereof, it
is understood and agreed that:

     a) all policies issued by the Reinsured on or before 31st, December 1957,
shall be free from the application of the other provisions of this Clause until
expiry date or 31st, December 1960, whichever first occurs whereupon all the
provisions of this Clause shall apply,

     b) with respect to any risk located in Canada policies issued by the
Reinsured on or before 31st, December 1958, shall be free from the application
of the other provisions of this Clause until expiry date or 31st, December 1960,
whichever first occurs whereupon all the provisions of this Clause shall apply.

<PAGE>

                                  WAR EXCLUSION

As regards interests which at time of loss or damage are on shore, no liability
shall attach hereto in respect of any loss or damage which is occasioned by war,
invasion, hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law or confiscation by order
of any government or public authority.

This War Exclusion Clause shall not, however, apply to interests which at time
of loss or damage are within the territorial limits of the United States of
America (comprising the fifty States of the Union and the District of Columbia,
its territories and possessions, including the Commonwealth of Puerto Rico and
including Bridges between the United States of America and Mexico provided they
are under United States ownership), Canada, St. Pierre and Miquelon, provided
such interests are insured under original policies, endorsements or binders
containing a standard war or hostilities or warlike operations exclusion clause.

Nevertheless, this clause shall not be construed to apply to loss or damage
occasioned by riots, strikes, civil commotion, vandalism, malicious damage.

<PAGE>

                                                                   (WILLIS LOGO)

UMR:       B0576UMX4834
Reinsured: PHILADELPHIA INSURANCE COMPANY
Type:      Property 4th Excess of Loss Reinsurance Agreement

                                SECURITY DETAILS

PERIOD:    1 January 2007 to 1 January 2008
REINSURER: ________________________________

                         (AMLIN LOGO) (GRAPHIC) AML 2001
                                  RAB1662207CB
                                   NON-MARINE

WRITTEN LINE(S): 6.25%                 REF: _______________

FINAL SIGNED LINE(S): 6.16%

Signed this 2nd day of January 2007

   Willis Limited, a Lloyd's broker, authorised and regulated by the Financial
    Services Authority. Registered Office Ten Trinity Square, London ECJP 3AX
                   Registered number 181116 England and Wales

                                                                     Page 1 of 3

<PAGE>

                                                                   (WILLIS LOGO)

UMR:       B0576UMX4834
Reinsured: PHILADELPHIA INSURANCE COMPANY
Type:      Property 4th Excess of Loss Reinsurance Agreement

                                SECURITY DETAILS

PERIOD:    1 January 2007 to 1 January 2008
REINSURER: ________________________________

                    (BRIT INSURANCE LOGO) (GRAPHIC) BRT 2987
                                  FB022E07A000

WRITTEN LINE(S): 8.5%                  REF: FB0022307A000

FINAL SIGNED LINE(S): 8.38%

Signed this ___ day of ___________ 200_

   Willis Limited, a Lloyd's broker, authorized and regulated by the Financial
    Services Authority. Registered Office Ten Trinity Square, London ECJP 3AX
                    Registered number 18116 England and Wales

                                                                     Page 2 of 3

<PAGE>

                                                                   (WILLIS LOGO)

UMR:       B0576UMS4834
Reinsured: PHILADELPHIA INSURANCE COMPANY
Type:      Property 4th Excess of Loss Reinsurance Agreement

                                SECURITY DETAILS

PERIOD:    1 January 2007 to 1 January 2008
REINSURER: ________________________________

                               (GRAPHIC) RTH 1414
                                    RTH 1414
                             ______________________

WRITTEN LINE(S): 2 1/2%                REF: XR07CE495W2X

FINAL SIGNED LINE(S): 2.46%

Signed this 2nd day of January 2007

   Willis Limited, a Lloyd's broker, authorized and regulated by the Financial
    Services Authority. Registered Office Ten Trinity Square, London ECJP 3AX
                    Registered number 18116 England and Wales

                                                                     Page 3 of 3

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT
                                (the "Agreement")

                                       of

                          HANNOVER RUCKVERSICHERUNG AG
                          (the "Subscribing Reinsurer")

                               with respect to the

                     PROPERTY FOURTH PER RISK EXCESS OF LOSS
                              REINSURANCE AGREEMENT
                                (the "Contract")

                                    issued to

                         PHILADELPHIA INSURANCE COMPANY
                    PHILADELPHIA INDEMNITY INSURANCE COMPANY
                            BALA CYNWYD, PENNSYLVANIA
        AND ANY ADDITIONAL COMPANY ESTABLISHED OR ACQUIRED BY THE COMPANY
                                 (the "Company")

The Subscribing Reinsurer shall have a 5.00% share in the interests and
liabilities of the "Reinsurer" as set forth in the Contract attached hereto and
executed by the Company.

This Agreement shall commence at 12:01 a.m., Eastern Standard Time, January 1,
2007, and shall continue in force until 12:01 a.m., Eastern Standard Time,
January 1, 2008, unless earlier terminated in accordance with the attached
Contract.

The share of the Subscribing Reinsurer in the interests and liabilities of the
"Reinsurer" shall be several and not joint with the share of any other
subscribing reinsurer. In no event shall the Subscribing Reinsurer participate
in the interests and liabilities of the other subscribing reinsurers.

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date specified below:

Signed this 26th day of January, 2007 .

HANNOVER RUCKVERSICHERUNG AG

By /s/ Andreas Steinweg
   ----------------------------------------
   North American Property
   Department-TD 10

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT
                                (the "Agreement")

                                       of

                           QBE REINSURANCE CORPORATION
                          (the "Subscribing Reinsurer")

                               with respect to the

                     PROPERTY FOURTH PER RISK EXCESS OF LOSS
                              REINSURANCE AGREEMENT
                                (the "Contract")

                                    issued to

                         PHILADELPHIA INSURANCE COMPANY
                    PHILADELPHIA INDEMNITY INSURANCE COMPANY
                            BALA CYNWYD, PENNSYLVANIA
        AND ANY ADDITIONAL COMPANY ESTABLISHED OR ACQUIRED BY THE COMPANY
                                 (the "Company")

The Subscribing Reinsurer shall have a 3.00% share in the interests and
liabilities of the "Reinsurer" as set forth in the Contract attached hereto and
executed by the Company.

This Agreement shall commence at 12:01 a.m., Eastern Standard Time, January 1,
2007, and shall continue in force until 12:01 a.m., Eastern Standard Time,
January 1, 2008, unless earlier terminated in accordance with the attached
Contract.

The share of the Subscribing Reinsurer in the interests and liabilities of the
"Reinsurer" shall be several and not joint with the share of any other
subscribing reinsurer. In no event shall the Subscribing Reinsurer participate
in the interests and liabilities of the other subscribing reinsurers.

IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date specified below:

Signed this 6th day of February, 2007.

QBE REINSURANCE CORPORATION

By /s/ Gregory R. Cuilwik
   ----------------------------------

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