Document:

exv10w28

Exhibit 10.28

WORKERS’ COMPENSATION EXCESS OF LOSS

REINSURANCE AGREEMENT

GIC-001/2007

(hereinafter referred to as the “Agreement” )

between

GUARANTEE INSURANCE COMPANY, NAIC #11398,

FORT LAUDERDALE, FLORIA

(hereinafter referred to as the “Reinsured”)

and

NATIONAL INDEMNITY INSURANCE COMPANY

(hereinafter referred to as the “Reinsurer”)

ARTICLE I — BUSINESS COVERED

All statutory benefits payable under Part One Section A Limit and Part Two Section B Limit of a
standard Workers’ Compensation Policy.

This Agreement is to indemnify the Reinsured as set forth herein in respect of the net excess
liability which may accrue to the Reinsured under all policies, Agreements, binders and other
evidences of insurance or reinsurance, whether oral or written (hereinafter called “policies”),
classified by the Reinsured as Alternative Market Workers’ Compensation in force at and becoming
effective on and after the inception date of this Agreement, including renewals.

ARTICLE II — EXCLUSIONS

	 	 	This Agreement excludes all Ultimate Net Loss arising from the following and further amplified
by Schedule 1 NCCI Class Code identifications:

	 	1.	 	Assumed reinsurance, except one hundred percent (100%) of business ceded by fronting
insurance companies.
	 
	 	2.	 	Liability of the Reinsured arising by Agreement, operation of law or otherwise from
its participation or membership, whether voluntary or involuntary, in any insolvency
fund. “Insolvency fund” includes any guarantee funds, insolvency fund, plan, pool,
association, fund or other arrangement, howsoever denominated, established or governed,
which provides for any assessment of or payment or assumption by the Reinsured of part or
all of any claim, debt, charge, fee or other obligation or an insurer or its successors
or assigns which has been declared by any competent authority to be insolvent or which is
otherwise deemed unable to meet any claim, debt, charge, fee or other obligation in whole
or in part.
	 
	 	3.	 	Business excluded by the attached Exhibit A, Nuclear Incident Exclusion Clause -
Liability-Reinsurance — U.S.A., No. 08-31-1.
	 
	 	4.	 	Pools, associations and syndicates, except that losses from assigned risk plans or
similar plans are not excluded.

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	 	5.	 	Actual or alleged loss, liability, damage, injury, defense
cost, cost or expense directly
or indirectly caused by, contributed to by, resulting from, arising out of or in connection
with any “acts of terrorism” as defined in the Terrorism
Risk Insurance Act of 2002 (the
“Act”), including acts of war, invasion, acts of foreign enemies, hostilities or warlike
operation (whether war be declared or not), civil war, rebellion, revolution, insurrection, or
civil commotion assuming the proportions of or amounting to an uprising, military or usurped
power, regardless of any other cause or event contributing concurrently or in any sequence to
the loss and regardless of the location of the loss, liability, damage, injury, defense, cost
or expense.
	 
	 	 	 	Also excluding actual or alleged loss, liability, damage, injury, defense cost or expense
directly or indirectly caused by, contributed to by, resulting from, arising out of or in
connection with any action taken in controlling, preventing, suppressing, retaliating
against, or responding to an act of terrorism as defined in the Act, regardless of the
location of the loss, liability, damage, injury, defense, cost or expense.
	 
	 	 	 	Notwithstanding the above and subject otherwise to the terms, conditions and limitations of
this Agreement, this Agreement will pay actual loss or damage caused by an act of terrorism
which does not meet the definition of “act of terrorism” as
defined in the Act but in no
event, will this agreement provide coverage for loss, damage, cost or expense directly or
indirectly caused by, contributed to by, resulting from, arising out of or in connection with
biological, chemical or nuclear explosion, pollution, contamination and/or fire following
there from.
	 
	 	 	 	In the event any portion of this exclusion is found to be invalid or unenforceable, the
remainder shall remain in full force and effect.
	 
	 	6.	 	Financial guarantee and insolvency.
	 
	 	7.	 	War Risks as defined and excluded by the North American War Exclusion Clause (Reinsurance)
BRMA 56A.
	 
	 	8.	 	Risks with known occupational disease exposures per NCCI D & E codes.
	 
	 	9.	 	Operations requiring coverage under the Defense Base Act, Admiralty Act or any other
Federal act including but not limited to the Jones Act, FELA or USL&H, except where
incidental. (“incidental” to be defined as less than 10% of an individual insurer’s
premium).
	 
	 	10.	 	Commercial airline crews.
	 
	 	11.	 	Risks involving known exposure to the following substances: Dioxin, Polychlorinated
biphenyls (PCB’s) and Asbestos.
	 
	 	12.	 	Mining either above or below ground.
	 
	 	13.	 	Construction of bridges, tunnel or dams.
	 
	 	14.	 	Fire fighters and police officers.
	 
	 	15.	 	Railroads, except scenic railways, and access lines and industrial aid owner operations when
written as an incidental part of an insured’s overall operations.
	 
	 	16.	 	No known wrecking or demolition of buildings of structures in excess of three stories.
	 
	 	17.	 	Manufacturing, packing, handling, shipping, storage or loading into containers of
explosives, substances intended for use as an explosive, ammunitions,
fuses, arms, magnesium,
propellant charges, detonating devices, fireworks, nitroglycerine,
celluloid, or pyroxylin;
however, this exclusion shall not apply to the incidental packing, handling, or storage
of same in connection with the sale or transportation by owner operators of such substance;
	 
	 	18.	 	Trucking hauling explosives or ammunition (local or long distance hauling) — all employees.

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	 	19.	 	Manufacturing, packing, handling, shipping
or storage of natural or artificial fuel gasses,
butane, propane, gasoline, or liquefied
petroleum gas; however, this exclusion shall not apply to the incidental packing,
handling or storage of same in connection with
the sale of such substances.
	 
	 	20.	 	Gas or oil burner installation NOC.
	 
	 	21.	 	Gasoline Service Stations tank installations.
	 
	 	22.	 	Blasting of rock.
	 
	 	23.	 	Sewer construction all operations.
	 
	 	24.	 	Gas main, steam main, or water main construction or connection construction.
	 
	 	25.	 	Boat manufacturing F classes.
	 
	 	26.	 	Banks and trust company employees of
contracting agencies in bank service: guards,
patrol, messengers or armored car crews.
	 
	 	27.	 	Detective agency.
	 
	 	28.	 	Patrol agency only in regard to armed guard services.
	 
	 	29.	 	Insolvency Fund.

ARTICLE III — PERIOD AND CANCELLATION

This Agreement shall be effective on a risks attaching basis for inforce new and renewal policies
of the
Reinsured attaching on or after 12:01 a.m., Local Standard Time, May 1, 2007
through July 31, 2008, both days inclusive. Polices limited to 12 months plus odd
time, not to exceed 18 months in total. For policies in force prior to May 1, 2007,
this contract only applies to losses occurring on or subsequent to
May 1, 2007. The
Reinsurer shall be liable for its share of the liability under all policies or
portions thereof in force as of the date of termination of this Agreement, up to the
natural expiration or prior termination date of said policies, not to exceed 12 months
plus odd time, not exceeding 18 months in all.

ARTICLE IV — AMOUNT OF COVER

The Reinsurer shall not be liable for any loss hereunder until the ultimate net loss
of the reinsured of the Reinsurer on Part Once Section A losses of a Standard Workers
Compensation policy exceeds $1,000,000 inclusive of underlying deductibles where
applicable, and then the Reinsurer shall be liable for 100% of the amount of the
ultimate net loss sustained by the reinsured on any one loss occurrence in excess of
$1,000,000, but the Reinsurer’s liability shall not exceed 100% of $4,000,000 any one
occurrence.

Furthermore in respect to losses Reinsured shall be liable for under Section B Part
Two limit of a Standard Workers Compensation viz. Employer’s Liability only, the
Reinsurer will be liable for 100% of difference between $1,000,000 ultimate net loss
any one loss occurrence sustained by the Reinsured and $100,000 bodily injury per
occurrence, $500,000 policy limit bodily injury per disease and $100,000 bodily injury
by disease per employee.

ARTICLE V — TERRITORY

Risks principally domiciled in the United States, Puerto Rico and US
territories and possessions.

ARTICLE VI — DEFINITIONS

	 	 	The term “Occurrence” shall mean any one accident, disaster or casualty or series
of accidents, disaster or casualties arising out of one event.
	 
	 	 	Occupational disease and cumulative trauma when from a sudden and accidental event
of 48 hours or less. For the purpose of this contract “Sudden and Accidental”
shall mean that the first and last

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	 	 	exposure to the causative agent to each and every individual contributing to the loss
shall fall within a single and continuous 48 hour period.
	 
	 	 	“Gross Net Written Premium” shall mean manual premium adjusted for experience
modification, State/NCCI Safety Credit, premium discount, deductible credits, expense
constants and policy fees, less returns and cancellations.
	 
	 	 	“Loss in excess of policy limits” shall mean 90% of any amount paid or payable by the
Reinsured in excess of its policy limits, but otherwise within the terms of its policy, as
a result of an action against it by its insured’s assignee to recover damages the insured
is legally obligated to pay to a third party claimant because of the Reinsured’s alleged
or actual negligence or bad faith in rejecting a settlement within policy limits, or in
discharging its duty to defend or prepare the defense in the trial of an action against
its insured, or in discharging its duty to prepare or prosecute an appeal consequent upon
such an action.
	 
	 	 	“Extra contractual obligations” shall mean 90% of
any punitive, exemplary, compensatory or
consequential damages, other than loss in excess of policy limits, paid or payable by the
Reinsured as a result of an action against it by its negligence or bad faith on the part
of the Reinsured in handling a claim under a policy subject to the Agreement. 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.
	 
	 	 	Notwithstanding anything stated herein, the Agreement shall not apply to any loss in
excess of policy limits or any extra contractual obligation incurred by the Reinsured as a
result of any fraudulent and/or criminal act by any officer or director of the Reinsured
acting individually or collectively or in collusion with any individual or corporation or
any organization or party involved in the presentation, defense or settlement of any claim
covered hereunder.
	 
	 	 	“Loss adjustment expense” as used herein shall mean expenses allocable to the
investigation, defense and/or settlement of specific claims, including litigation expenses
and post-judgment interest, but not including any legal expenses and cost incurred by the
Reinsured in connection with coverage questions and legal actions connected thereto, office
expenses or salaries of the Reinsured’s regular employees.

ARTICLE VII-ULTIMATE NET LOSS

The term “Ultimate Net Loss” as used in this Agreement shall mean the actual gross loss sustained
by the Reinsured, including structured settlements with claimants or outside insurers, such loss
to include all expenses incurred by the Reinsured in connection with the settlement of losses,
resistance to or negotiations concerning losses; excluding, however, any part of the office
expenses of the Reinsured and salaries of employees other than salary charges for staff adjuster,
fieldsmen, or other employees while actually engaged in the settlement of the losses.

Salvages and recoveries, whether recovered or received prior or subsequent to loss settlement
under this Agreement, but not including amounts recoverable under all facultative reinsurances,
shall be applied as if recovered or received prior to the aforesaid settlement and shall be first
deducted from the actual loss sustained to arrive at the amount of Ultimate Net Loss. Nothing,
however, in this Article shall be construed to mean losses are not recoverable hereunder until the
Ultimate Net Loss to the Reinsured has been ascertained.

ARTICLE VIII- RATE AND PREMIUM

The
Reinsured shall pay a deposit premium of $4,200,000 in four equal installments in advance
within 30 days of each of the following:

	 	 	 	 	 
	May 1, 2007
	 	$	1,050,000	 
	August 1, 2007
	 	$	1,050,000	 
	November 1, 2007
	 	$	1,050,000	 
	February 1, 2008
	 	$	1,050,000	 

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There will be a minimum premium of $3,360,000.

Reinsurance premiums are calculated as follows:

	 	 	Section A: 6.7% applying to both Gross Net Written Premium Income for business incepting
during the period and Gross Unearned Premium Income on inforce policies at inception.
	 
	 	 	Section B: 1.7% applying to both Gross Net Written Premium Income for business
incepting during the period and Gross Unearned Premium Income on inforce policies at
inception.

Within 90 days after the expiration of this agreement and each subsequent twelve months
thereafter, the Reinsured shall provide a report to the Reinsurer setting forth the premium due
hereunder computed in accordance with the adjustable rate, and if the premium so computed is
greater than the previously paid minimum and deposit premiums and adjustments, the balance shall
be remitted by the Reinsured with this report.

ARTICLE IX — REINSTATEMENT PREMIUM-SECTION A ONLY

In the event of the whole or any portion of the liability under Section A of this Contract, being
exhausted by loss, the amount so exhausted shall be automatically reinstated from the time of the
occurrence of the loss; and the Reinsured agrees to pay to the Reinsurer for each amount so
reinstated an additional premium.

	 	(a)	 	For the first $4,000,000 reinstated, the product of the percentage of the face amount
of this Contract so reinstated calculated at a rate of twenty five percent of the
composite reinsurance rate.
	 
	 	(b)	 	For the second $4,000,000 reinstated, the percentage of the face amount of this
Contract so reinstated calculated at a rate of fifty percent of the composite reinsurance
rate.
	 
	 	(c)	 	The third $4,000,000 reinstated will be at no charge.

Nevertheless, the Reinsurer’s liability hereunder shall never exceed $4,000,000 for any one
occurrence and $16,000,000 for all losses during the term of this contract.

Reinstatement additional premium is to include interest calculated at the one year US Treasury
bill rate for time between inception of reinsurance agreement and dates of additional premium
calculations. Reinstatement calculations are to be based on no lesser than then the full treaty
composite Deposit Premium ($4,200,000) or adjustable composite reinsurance premium. Reinstatements
are automatic without the consent of either party.

ARTICLE X — MAXIMUM AMOUNT OF RECOVERY-SECTION B ONLY

In respect to Section B the maximum amount of recovery is $3,000,000 for the contract
period.

ARTICLE XI-PROFIT COMMISSION

Anytime after 24 months from expiration and prior to 72 months from expiration the company may
request payment of a 25% profit commission on the basis of a loss commutation with full release of
all current and future liabilities of the Reinsurer under the terms of the agreement.

The profit commission will be calculated on the basis of gross ceded reinsurance premium earned
less incurred losses including mutually agreed incurred but not reported losses.

ARTICLE XII — LOSS NOTICES AND SETTLEMENTS

The Reinsured shall advise the Reinsurer of all events that in its opinion may result in a claim
under this Agreement for which the Reinsured has reserves in excess of fifty percent (50%) of its
retention under this Agreement, and of all subsequent developments thereto that may affect the
position of the Reinsurer. Inadvertent omission or oversight in dispatching advice of notice shall
not affect the liability of the Reinsurer; however, this exception shall not apply with respect to
conditions as provided for in the Sunset Article of this Agreement.

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Subject always to the terms and conditions of this Agreement, the reinsurance provided under this
Agreement shall be subject to the written terms, limits, and conditions of the original policies
that represent, as set forth in Article I, the Business Covered and to all interpretations,
modifications, waivers, and alterations thereon. All loss settlements made by the Reinsured,
whether under the original policy terms and conditions or by way of compromise, excluding ex
gratia payments, shall be binding upon the Reinsurer, and the Reinsurer shall allow or pay, as the
case may be, its proportion of each such settlement in accordance with the terms of this
Agreement. It is the true intent of this Agreement the Reinsurer will follow settlements of the
Reinsured in all respects.

The Reinsured will advise the Reinsurer promptly of all losses and any subsequent developments
pertaining thereto, which may in its opinion develop into losses involving reinsurance hereunder
and/or incurred amount penetrates 50% of retention. Inadvertent omission or oversight in
dispatching such advises shall in no way affect the liability of the Reinsurer under this
Agreement, but the Reinsured shall inform the Reinsurer of such omission or oversight upon
discovery.

ARTICLE XIII — CLAIMS AND MONETARY CRITERIA

The Reinsured shall promptly advise the Reinsurer in full detail of all bodily injury claims or
losses involving any of the following:

	 	A)	 	Any claim or loss reserved at 50% or more of the Reinsured’s retention under this Agreement.
	 
	 	B)	 	Any claim involving any of the following injuries:

	 	1)	 	Fatality.
	 
	 	2)	 	Spinal Cord Injuries (e.g., quadriplegia, paraplegia).
	 
	 	3)	 	Brain Damage (e.g., seizure, coma or physical/mental impairment).
	 
	 	4)	 	Severe burns injuries resulting in disfigurement or scarring.
	 
	 	5)	 	Total or partial blindness in one or both eyes.
	 
	 	6)	 	Major organ, (e.g., heart, lungs).
	 
	 	7)	 	Amputation of a limb or multiple fractures.
	 
	 	8)	 	Environmentally related damage or injury (e.g., pollution, waste site
or common cause claims, such as Agent Orange, asbestos or DES).
	 
	 	9)	 	Occupational disease or other disability relating to working
conditions or job related factors.

ARTICLE XIIV — TAXES CLAUSE

In consideration of the terms under which this Agreement is issued, the Reinsured undertakes not
to claim any deduction of the premium hereon when making tax returns, other than income or profits
tax returns, to any state or territory of the United States of America or to the District of
Columbia.

ARTICLE XV — CURRENCY

All retentions and limits hereunder are expressed in United States Dollars, and all premium and
loss payments shall be made in United States Currency.

ARTICLE XVI — ACCESS TO RECORDS

The Reinsurer or its duly authorized representative shall have the right at any reasonable time
upon five (5) working days prior notice during or at any time after the expiration of this
Agreement, and as frequently as deemed necessary by the Reinsurer, to visit the office of the
Reinsured (or of any affiliate or representative of the Reinsured involved with the Business
Covered under this Agreement) to inspect, examine, audit, and verify any of the policy or claim
files, accounts, documents, books reports, or work papers
(“records”) relating to the business
reinsured under this Agreement whether or not those records are co-mingled with any unrelated
business records. Reinsurer or its representative shall have the right to make copies, at its own
expense, or extracts of any records related specifically to the Business Covered under this
agreement only.

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ARTICLE XVII — OFFSET

All amounts due either the Reinsured or the Reinsurer, whether by reason of reinsurance premium
Ultimate Net Loss, or any other amount due under this Agreement shall be subject to the right of
recoupment and offset and upon the exercise of the same, only the net balance shall be due. All
claims for amounts of reinsurance premium, Ultimate Net Loss, or any other amount due under this
Agreement, whether or not fixed in amount at the time of the insolvency of any party to this
Agreement, arising from coverage placed in effect under this Agreement prior to the insolvency of
any party to this Agreement shall be deemed pre-liquidation debts and subject to this Article. In
the event of insolvency of the Reinsured, offset shall be in accordance with applicable law.

ARTICLE XVIII — ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising out of the
interpretation, performance or breach of this Agreement, including the formation or validity
thereof, shall be submitted for decision to a panel of three arbitrators. Notice requesting
arbitration will be in writing and sent certified or registered mail, return receipt requested.

One arbitrator shall be chosen by each party and the two arbitrators shall, before instituting
the hearing, choose an impartial third arbitrator who shall preside at the hearing. 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 or registered mail of its intention to do
so, may appoint the second arbitrator.

If the two arbitrators are unable to agree upon the third arbitrator within 30 days of their
appointment, the third arbitrator shall be selected by the American Arbitration Association.

All arbitrators shall be disinterested active or former executives of insurance or reinsurance
companies or Underwriters at Lloyd’s, London, with expertise or experience in the area being
arbitrated.

Within 45 days after notice of appointment of all arbitrators, the panel shall meet and determine
timely periods for briefs, discovery periods 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
South Carolina, 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 South Carolina. The decision of any two arbitrators when rendered
in writing shall be final and binding. The panel is empowered to grant interim relief, as it may
deem appropriate.

The panel shall make its decision considering the custom and practice of the applicable insurance
and reinsurance business within 60 days following the termination of the hearings. Judgment upon
the award may be entered in any court having jurisdiction thereof.

If more than one 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 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 reinsurers constituting the one party; provided, however, that nothing
herein shall impair the rights of such reinsurers to assert several, rather than joint defenses or
claims, nor be construed as changing the liability of the reinsurers under the terms of this
Agreement from several to joint (if applicable).

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.

ARTICLE XIX — INSOLVENCY

In the event of the insolvency of the Reinsured or the Reinsurer (the “Insolvent Party”),
premiums and losses shall be payable directly to the Insolvent Party or its liquidator, receiver,
conservator or statutory successor on the basis of the liability of the Insolvent Party without
diminution because of the insolvency of

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the Insolvent Party. The liquidator, receiver, conservator or statutory successor of the Insolvent
Party shall give written notice to the other party hereto of the pendency of a claim against the
Insolvent Party, indicating the Policy reinsured which claim would involve a possible liability on
the part of the other party hereto within reasonable time after such claim is filed in the
conservation, liquidation, or receivership proceedings, and that during the pendency of such claim
the other party hereto 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 Insolvent Party or its liquidator, receiver, conservator or statutory successor.
The expense thus incurred by the other party shall be chargeable, subject to he approval of the
court, against the Insolvent Party as part of the expense of conservation, liquidation or
receivership to the extent of a pro rata share of the benefit which may accrue to the Insolvent
Party solely as a result of the defense undertaken by the other party.

ARTICLE XX — INSOLVENCY FUND EXCLUSION

It is agreed that this Agreement excludes all liability of the Reinsured arising by contract,
operation of law, or otherwise, from its participation or membership, whether voluntary or
involuntary, in any insolvency fund. “Insolvency Fund” includes any guaranty fund, insolvency fund,
plan, pool, association, fund or other arrangement, however denominated, established or governed,
which provides for any assessment of or payment or assumption by the Reinsured of part or all of
any claim, debt, charge, fee or other obligations of an insurer, or its successors or assigns,
which has been declared by any competent authority to be insolvent, or which is otherwise deemed
unable to meet any claim, debt, charge, fee or other obligation in whole or in part.

ARTICLE XXI — ERRORS AND OMISSIONS

Except for the conditions as provided for in the Sunset Article of this Agreement, any isolated
and inadvertent administrative act, neglect, delay, omission, or error by either party to this
Agreement, will not be held to relieve either party to this Agreement from any liability that
would attach to it under this Agreement if that act, neglect, delay, omission, or error had not
been made, providing that such act, neglect, delay, omission, or error is not prejudicial to the
other party and is rectified immediately upon discovery without prejudice to the other party.

ARTICLE XXII — SUNSET CLAUSE

Notwithstanding the provisions of the Errors and Omissions Article of this Agreement, coverage
hereunder shall apply only to Event(s) notified by Reinsured to Reinsurer, with full particulars,
within eighty four (84) months from the commencement of the Term of this Agreement. Notice of an
Event shall include:

	 	1.	 	The approximate time and location of the Event.
	 
	 	2.	 	The date of loss as established under this Agreement.
	 
	 	3.	 	The names of any original insureds that have been identified by Reinsured, at the
time of notice, as being involved in the Event.
	 
	 	4.	 	The current indemnity, medical and expense reserves delineated by original insured.
	 
	 	5.	 	The total payments made by the Reinsured, delineated by original insured.

ARTICLE XXIII — MANDATORY COMMUTATION CLAUSE

Not later than eighty-four (84) months after the commencement of the Term of this Agreement,
Reinsured shall advise Reinsurer of the amount of all Ultimate Net Loss for all claims from
Business Covered from any Event, both reported and unreported, both paid and not finally settled,
that is the subject of this Agreement Reinsured and Reinsurer or their respective representatives
shall, within sixty (60) days thereafter by mutual agreement, determine and capitalize (i.e. reduce
to a net present value) the total of such Ultimate Net Loss for each Event.

If the mutually agreed capitalized value of the Ultimate Net Loss for any Event is in excess of
Reinsured’s retention for that Event, Reinsurer shall pay Reinsured the amount, subject to the
coverage provided under this Agreement, of capitalized Ultimate Net Loss in excess of Reinsured’s
retention for that Event less any amounts of Ultimate Loss previously paid by Reinsurer to
Reinsured for that Event.

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If mutual agreement cannot be reached, then any difference shall be settled by an appraisal made by
a panel of three actuaries, one to be chosen by each party and the third by the two so chosen. If
either party refuses or neglects to appoint an actuary within thirty (30) days of a written request
from the other party to appoint an actuary, the other party may appoint two actuaries. If the two
actuaries fail to agree on the selection of a third actuary within thirty (30) days of their
appointment, each of them shall name two, of whom the other shall decline one and the decision
shall be made by drawing lots.

All the actuaries shall be regularly engaged in the valuation of Workers’ Compensation claims and
shall be Fellows of the Casualty Actuarial Society or Members of the American Academy of
Actuaries. None of the actuaries shall be under the control of either party to this Agreement.

Each party shall submit its case to its chosen actuary within thirty (30) days of the appointment
of the third actuary. The decision in writing of any two appointed actuaries, when filed with the
parties hereto, shall be final and binding on all parties participating in the appraisal and
judgment may be entered hereon in any court of competent jurisdiction.

The expense of the actuaries and of their appraisal shall be equally divided between the Reinsured
and the Reinsurer. The appraisal shall take place in New York City unless some other place is
mutually agreed upon by Reinsured and Reinsurer.

Payment by Reinsurer of the amount of capitalized Ultimate Net Loss in excess of Reinsured’s
retention for any Event less any amounts of Ultimate Net Loss previously paid by Reinsurer to
Reinsured for that Event, whether determined by mutual agreement or by the appraisal procedure set
forth above, shall constitute a complete and final release of Reinsurer of all claims by Reinsured
for Ultimate Net Loss, both reported and unreported, paid and incurred, for that Event. If the
capitalized Ultimate Net Loss for any Event is determined to be below the retention, whether by
mutual agreement or the appraisal procedure set forth above, such determination shall constitute a
complete and final release of Reinsurer for all claims by Reinsured for Ultimate Net Loss, both
reported and unreported, paid and incurred, for that Event.

ARTICLE XXIV — NET RETAINED LINES

This Agreement applies only to that portion of any insurance or reinsurance which the Reinsured
and/or its agents retains net for its own account, inclusive of underlying insurance or
reinsurance. In calculating the amount of any loss hereunder, and also in computing the amount or
amounts in excess of which this Agreement attaches, only loss or losses in respect of that portion
of any insurance or reinsurance which the Reinsured retains net for its own account, inclusive of
underlying insurance or reinsurance, shall be included.

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 Reinsured to collect from any other reinsurers,
whether specific or general, any amount which may have become due from them, whether such
inability arise from the insolvency of such other reinsurers or otherwise.

ARTICLE
XXV — SALVAGE AND SUBROGATION

Reinsurer shall be credited with subrogation (i.e. reimbursement obtained or recoveries made by
Reinsured, less the actual cost, excluding salaries of officers and employees of the Reinsured and
sums paid to attorneys as retainer, of obtaining such reimbursement or making such recoveries) on
any claims or settlements involving this Agreement. Subrogation and salvage shall always be used
to reimburse the excess Reinsurers in the reverse order of their priority according to their
participation in the Ultimate Net Loss before being used in any way to reimburse Reinsured for its
portion of the Ultimate Net Loss under its retention. Reinsured will reasonably enforce its rights
to subrogation and salvage and will reasonably prosecute all claims arising out of those rights.
In the event Reinsured shall refuse or neglect to enforce its rights to salvage or subrogation,
Reinsurer is authorized and empowered to bring any appropriate action in the name of Reinsured or
its policyholder or otherwise to enforce those rights and Reinsured shall cooperate fully with
Reinsurer enforcing those rights. Reinsured and Reinsurer shall share in the cost and expense of
any unsuccessful subrogation efforts in the same proportion that Reinsured and Reinsurer shared
the Ultimate Net Loss giving rise to those subrogation efforts.

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Contract Wording

July 24, 2007D

Page 9 of 15 

 

ARTICLE
XXVI — TERMINATION DURING LOSS

Should the liability of the Reinsurer under this Agreement terminate while a loss giving
rise to a claim hereunder is in progress, the Reinsurer shall be liable as if the whole loss
had occurred during the term of this Agreement.

ARTICLE XXVII — ENTIRE AGREEMENT

The entire agreement between the Reinsured and the Reinsurer is contained in this Agreement,
including the Reinsuring agreements, exclusions and conditions.

ARTICLE
XXVIII—CHANGE IN ADMINSTRATIVE PRACTICES

The Reinsured undertakes not to introduce any change in its established acceptance and
underwriting policy in respect of the business covered hereunder without prior approval of
the Reinsurers.

ARTICLE
XXIX—NON—WAIVER

The failure of the Reinsured to insist on compliance with this Contract or to exercise any
right or remedy hereunder shall not constitute a waiver of any rights or remedy contained
herein nor stop either party from thereafter demanding full and complete compliance nor
prevent either party from exercising such rights or remedy in the future.

ARTICLE XXX—SPECIAL CONDITION

Classes related to roofing and long-haul trucking shall have a maximum combined subject
premium of the lesser of 15% of total GNWPI or $10,000,000 unless specifically agreed by
Reinsurer.

ARTICLE XXXI—INTERMEDIARY CLAUSE

Patriot Re International, Inc., 400 Northampton St., Easton, PA 18042 is hereby recognized
as the Intermediary negotiating this Agreement for all business hereunder. All communications
(including, but not limited to, notices, statements, premium reports, return salvages and loss settlements)
relating hereto shall
be transmitted to the Company or the Reinsurer through Patriot Re International, Inc.
Payments of Premium
and Losses will be on a direct settlement basis between Company and Reinsurer.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals this
8th day of Nov, 2007.

	 	 	 	 	 
	Signed in Fort Lauderdale, Florida
	 	 	 	 
	This
8th day of Nov, 2007
	 	 	 	 
	 
	 	 	 	 
	ATTEST:	 	GUARANTEE INSURANCE COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ [ILLEGIBLE]
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	     President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Reference:	 	 
	 

	 	 	 	 
	And signed in Stanford, CT
	 	 	 	 
	This 19th day of Dec, 2007
	 	 	 	 
	 
	 	 	 	 
	ATTEST:	 	NATIONAL INDEMNITY COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	     /s/
Peter [Illegible]
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	     ACTUARY
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Reference:	 	 
	 

	 	 	 	 

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Contract Wording

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Page 10 of 15 

 

EXHIBIT A

(Nuclear Risk Exclusion)

This Agreement does not apply to “Ultimate Net Loss” arising from, whether directly or indirectly,
whether proximate or remote:

	 	a)	 	Any Nuclear Facility, Nuclear Hazard or Nuclear Reactor;
	 
	 	b)	 	Any Nuclear Material, Radioactive Material, Nuclear Reaction, Nuclear
Radiation or radioactive contamination, all whether controlled or
uncontrolled; or
	 
	 	c)	 	Any Nuclear Material, Radioactive Material, Nuclear Reaction, Nuclear
Radiation or radioactive contamination, all whether controlled or
uncontrolled, caused directly or indirectly by, contributed to or
aggravated by an Event;
	 
	 	d)	 	Any Spent Fuel or Waste;
	 
	 	e)	 	Any Fissionable Substance; or
	 
	 	f)	 	Any nuclear device or bomb.

     As used in this Exclusion:

     “Fissionable Substance” means;

any prescribe substance that is, or from which can be obtained, a substance capable of
releasing atomic energy by nuclear fission.

     “Nuclear Facility” means;

any Nuclear Reactor,

any apparatus designed or used to sustain nuclear fission in a self-supporting chain
reaction or to contain a critical mass of plutonium, thorium and uranium or any one or
more of them;

any equipment or device designed or used for (i) separating the isotopes of plutonium,
thorium and uranium or any one or more of them, (ii) processing or utilizing spent fuel,
or (iii) handling, processing or packaging Waste;

any equipment or device used for the processing, fabricating or alloying of Special
Nuclear Material if at any time the total amount of such material in the custody of the
insured at the premises where such equipment or device is located consists of or contains
more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than
250 grams of uranium 235,

any equipment or device used for the processing, fabricating or alloying of
plutonium, thorium or uranium enriched in the isotope uranium 233 or in the isotope
uranium 235, or nay one or more of them if at any time the total amount of such material
in the custody of the Insured at the premised where such equipment or device is located
consists of or contains more than 25 grams of plutonium or uranium 233 or any
combination thereof, or more than 250 grams of uranium 235;

any structure, basin, excavation, premises or place prepared or used for the storage or
disposal of Waste or Radioactive Material, and includes the site on which any of the
foregoing is located, all operations conducts on such site and all premises used for
such operations;

“Nuclear Hazard” means: the radioactive, toxic, explosive or other hazardous properties of
Radioactive
Material or Nuclear Material.

“Nuclear Material” means Source Material, Special Nuclear Material or Byproduct Material.

			
	 	 	 
	 
	 	4 xs 1 2007

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July 24, 2007D

Page 11 of 15

 

“Nuclear Reactor” means any apparatus designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a critical mass of fissionable material.

“Radioactive Material” means uranium, thorium, plutonium, neptunium, their respective derivatives
and compounds, radioactive isotopes of other elements and any other substances that the Atomic
Energy Control Board may, by regulation designate as being prescribed substances capable of
releasing atomic energy, or as being requisite for the production, use or application of atomic
energy.

“Source Material,” “Special Nuclear Material”, and “Byproduct Material” have the meanings given
them in the Atomic Energy Act of 1954 or in any law amendatory thereof.

“Spent Fuel” means any fuel element or fuel component, solid or liquid, which has been sued or
exposed to radiation in the Nuclear Reactor.

“Waste” means any waste material (i) containing Byproduct Material and (ii) resulting from the
operation by any person or organization of any Nuclear Facility.

			
	 	 	 
	 
	 	4 xs 1 2007

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Page 12 of 15

 

	 	 	 
	SCHEDULE 1
	 	2007

SPECIFIC BUSINESS OPERATIONS EXCLUSIONS

These exclusions apply based on the activities performed by a business and therefore will not
always be
identified by a class code.

The related class codes are those with known operations to be excluded — They are not meant to be
all
inclusive.They DO NOT include State specific codes which must be identified through the Scopes
Manual.

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	Airline and Aircraft Operations-Commerical Airline Crews
	 	7403   - Aircraft or Helicopter Air Carrier - Ground Crews
	 
	 	7405   - Aircraft or Helicopter Air Carrier - Flying Crews
	 
	 	7409* - Aircraft or Helicopter: Aerial Application
	 
	 	7420* - Aircraft or Helicopter: Public Exhibition
	 
	 	7421   - Aircraft or Helicopter: Transportation - Crew
	 
	 	7422* - Aircraft or Helicopter: NOC, not Helicopters
	 
	 	7423   - Aircraft or Helicopter Operation: Commuter
	 
	 	7425* - Aircraft Operation - Helicopters NOC
	 
	 	7431* - Aircraft or Helicopter - Commuter - Crew
	 
	 	9088* - Rocket or missile testing or Launching
	 
	 	 
	Asbestos Operations
	 	1852   - Asbestos Goods Manufacturing
	 
	 	5472   - Asbestos Removal Operation: Contractor
	 
	 	5473   - Asbestos Removal Operation: Contractor NOC
	 
	 	 
	Banks & Trust Companies: Employees of Contracting
	 	7720   - With this specific language (CR)
	Agencies in Bank Service: Guards, Patrols, Messengers
	 	 
	or Armored Car Crews
	 	 
	 
	 	 
	Blasting Rock
	 	6217   - Blasting Rock - Specialist Contractor (CR)
	 
	 	 
	Boat Building and Ship Building
	 	 
	 
	 	6854* - Ship Building - Iron or Steel - NOC
	 
	 	All related “F” Classes Separately Identified**
	 
	 	6843* - Ship Building Iron or Steel
	 
	 	6872* - Ship Repair or Marine Railway
	 
	 	6882* - Ship Repair Conversion
	 
	 	8709* - Stevedoring: Talliers, Inspectors
	 
	 	7016* - Vessels NOC - Program 1
	 
	 	7024* - Vessels NOC - Program 2 State Act
	 
	 	7038* - Boat Livery - Boats under 15 Tons - Program 1
	 
	 	7046* - Vessels - Not Self-Propelled - Program 1
	 
	 	7047* - Vessels - NOC - Program 2 USL Act
	 
	 	7050* - Boat Livery - Boats under
15 Tons-Program 2 USL Act
	 
	 	 
	 
	 	7090* - Boat Livery-Boats under 15 Tons-Program 2 State Act
	 
	 	 
	 
	 	7098* - Vessels - Not Self-Propelled-Program 2 State Act
	 
	 	7099* - Vessels - Not Self-Propelled-Program 2 USL Act

			
	 	 	 
	 
	 	4 xs 1 2007

Contract Wording

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Page 13 of 15

 

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	 
	 	7309* - Stevedoring NOC
	 
	 	7313* - Ore or Coal Dock Operation
	 
	 	7317* - Stevedoring by Hand or Truck
	 
	 	7323* - Stevedoring Explosive Materials
	 
	 	7327* - Stevedoring Containerized Freight
	 
	 	7333* - Dredging - All Types - Program 1
	 
	 	7335* - Dredging - All Types - Program 2 State Act
	 
	 	7337* - Dredging - All Types - Program 2 USL Act
	 
	 	7350* - Freight Handling & Stevedoring
	 
	 	 
	Construction, operation, repair or maintenance of:
	 	2702 - Dam or Lock Construction (CR)
	Bridges
	 	5037* - Painting Metal Structure Over Two Stories
	Dams or Locks
	 	5040* - Iron or Steel Erection - Frame Structures
	Dikes or Revetments
	 	5059* - Iron or Steel; Erection - Frame Structures
	Subways
	 	               Less Than Two Stories
	Sub-Aqueous Works Under Pressure
	 	5222* - Concrete Const. In Connection w/Bridges
	Tunnels
	 	5403 - Construction: Wooden Bridges (Desc)
	 
	 	6003 - Wood Bridge Construction (Desc)
	 
	 	6005 - Dike or Revetment Construction (CR)
	 
	 	6017 - Dam or Lock Construction: Concrete Work
	 
	 	6018 - Dam or Lock Construction: Earthmoving
	 
	 	6251* - Tunneling - Not Pneumatic
	 
	 	6252* - Shaft Sinking
	 
	 	6260* - Tunneling - Pneumatic
	 
	 	7133 - Subway Operation (Desc)
	 
	 	7538* - Electric Light or Power Line Construction
	 
	 	7540* - Electric Light or Power Co-op;REA Project only
	 
	 	9019 - Bridge or Vehicular Tunnel Operation
	 
	 	 
	Demolition or Wrecking of:
	 	5022 - Wrecking Bldgs or Structures - Masonry (CR)
	Bridges
	 	5057* - Wrecking Bldgs/Structures - Iron or Steel (CR)
	Buildings
	 	5213 - Wrecking Bldgs or Structures - Concrete (CR)
	Maritime Structures
	 	5403 - Wrecking Bldgs or Structures - Wooden (CR)
	Demolition or Wrecking of:
	 	6003 - Wrecking of Piers or Wharfs (Desc)
	Vessels
	 	7394*, 7395* & 7398* - Marine Wrecking (CR)
	 
	 	 
	Detective or Patrol Agencies
	 	7720 - Detective or Patrol Agencies (CR). Not applicable
	 
	 	to unarmed patrol personnel.
	Firefighters
	 	7704 - Firefighters
	 
	 	 
	Gas Main, Steam Main or Water Main Construction
	 	6319 - Gas Main or Connection Construction
	Or Connection Construction
	 	6206* - Oil or Gas Well-Cementing
	 
	 	7515* - All Oil or Gas Pipeline Operation
	 
	 	 
	Manufacturing, transportation, packing, handling,
	 	3574 - Arms Mfg-Small & Cartridge Mfg (CR)
	shipping, storage or loading into containers:
	 	3632 - Projectile or Shell Mfg (CR)
	Explosives (incl substance intended for use as)
	 	4771* - Explosives or Ammunition Manufacturing
	Ammunitions, fuses or arms
	 	4777 - Explosives Distributors
	Propellant charges
	 	7228 - Hauling Explosives or Ammo - Local (CR)
	Detonating devices
	 	7229 - Hauling Explosives or Ammo - Long Dist (CR)

			
	 	 	 
	 
	 	4 xs 1 2007

Contract Wording

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Page 14 of 15

 

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	Fireworks
	 	7360 - Packing/Handling/Shipping Expl or Ammo (CR)
	Celluloid, magnesium, nitroglycerine or pyroxylin
	 	
	 
	 	 
	Mfg, packing, handling, shipping or storage of:
	 	4635* - Oxygen or Hydrogen Manufacturing
	Natural or artificial fuel gases
	 	4740 - Oil Refining - Petroleum
	Butane or propane
	 	8350 - Gasoline Dealer
	Gasoline or liquefied petroleum gas (LPG)
	 	 
	 
	 	 
	Mining of All Types Including:
	 	1005* - Coal Mining - Surface
	Underground
	 	1016 - Coal Mining NOC
	Surface
	 	1164* - Mining NOC - Not Coal - Underground
	Quarrying
	 	1165 - Mining NOC - Not Coal - Surface
	 
	 	1624 - Quarry NOC
	 
	 	1654 - Quarry - Cement Rock-Surface
	 
	 	1655 - Quarry - Limestone - Surface (CR)
	 
	 	1710 - Stone Crushing - Included by SIC
	 
	 	1741* - Flint or Spar Grinding
	 
	 	1803* - Stone Cutting or Polishing NOC
	 
	 	4000 - Sand or Gravel Digging - Included by SIC
	 
	 	 
	Oil or Gas Burner Installation
	 	3724 - Oil or Gas Burner Installation-Commercial (CR)
	 
	 	3726* - Boiler Installation or Repair
	 
	 	5183 - Oil or Gas Burner Installation - Domestic (CR)
	 
	 	 
	Police Officers
	 	7720 - Police Officers
	 
	 	 
	Railroads
	 	6702, 6703 & 6704 - RR Construction - State & Federal
	Except-scenic railways and access lines
	 	7133 - Railroad Operations NOC
	industrial aid owner operations if incidental
	 	   7151, 7152 & 7153 - RR Operations - State & Federal
	 
	 	7382 - Scheduled RR Operations (CR)
	 
	 	7855 - RR Construction: Laying or Relaying of Tracks
	 
	 	8734, 8737, 8738 - Sales for RR ops - State & Fed
	 
	 	8805, 8814 & 8815 - Clerical for RR ops - State &Fed
	 
	 	 
	Sewer Construction — All Operations
	 	6306 - Sewer Construction
	 
	 	3620 - Pressure Vessel Manufacturing (Desc)
	 
	 	 
	Tank Installation: Gasoline Service Stations
	 	3724 - Tank Installation - Gas Stations (CR)

			
	 	 	 
	 
	 	4 xs 1 2007

Contract Wording

July 24, 2007D

Page 15 of 15exv10w29

Exhibit 10.29

WORKERS’ COMPENSATION EXCESS OF LOSS

REINSURANCE AGREEMENT

GIC-002/2007

(hereinafter referred to as the “Agreement” )

between

GUARANTEE INSURANCE COMPANY, NAIC #11398,

FORT LAUDERDALE, FLORIDA

(hereinafter referred to as the “Reinsured”)

and

THE SUBSCRIBING REINSURERS SPECIFIED

IN THE INTERESTS AND LIABILITIES AGREEMENT

ATTACHED TO THIS AGREEMENT

(hereinafter referred to as the “Reinsurer”)

ARTICLE I — BUSINESS COVERED

All statutory benefits payable under Part One Section A Limit and Part Two Section B Limit
of a Standard Workers’ Compensation Policy.

This Agreement is to indemnify the Reinsured as set forth herein in respect of the net
excess liability which may accrue to the Reinsured under all policies, Agreements, binders
and other evidences of insurance or reinsurance, whether oral or written (hereinafter
called “policies”), classified by the Reinsured as Traditional Workers’ Compensation
becoming effective on and after the inception date of this Agreement, including renewals.

ARTICLE
II — EXCLUSIONS

This Agreement excludes all Ultimate Net Loss arising from the following and further
amplified by Schedule 1 NCCI Class Code identifications:

	 	1.	 	Assumed reinsurance, except one hundred percent (100%) of business ceded by
fronting insurance companies.
	 
	 	2.	 	Liability of the Reinsured arising by Agreement, operation of law or otherwise
from its participation or membership, whether voluntary or involuntary, in any
insolvency fund. “Insolvency fund” includes any guarantee funds, insolvency fund,
plan, pool, association, fund or other arrangement, howsoever denominated,
established or governed, which provides for any assessment of or payment or
assumption by the Reinsured of part or all of any claim, debt, charge, fee or other
obligation or an insurer or its successors or assigns which has been declared by
any competent authority to be insolvent or which is otherwise deemed unable to meet
any claim, debt, charge, fee or other obligation in whole or in part.
	 
	 	3.	 	Business excluded by the attached Exhibit A, Nuclear Incident Exclusion Clause
 — Liability- Reinsurance — U.S.A., No, 08-31-1.
	 
	 	4.	 	Pools, associations and syndicates, except that losses from assigned risk plans
or similar plans are not excluded.
	 
	 	5.	 	Full Terrorism as per attached.
	 
	 	6.	 	Financial guarantee and insolvency.
	 
	 	7.	 	War Risks as defined and excluded by the North American War Exclusion Clause
(Reinsurance) BRMA 56A.

$4,000,000 xs $1,000,000

Midwest Contract Wording

July 27, 2007

Page 1 of 17

 

	 	8.	 	Risks with known occupational disease exposures per NCCI D & E codes.
	 
	 	9.	 	Operations requiring coverage under the Defense Base Act, Admiralty Act or any other Federal
act including but not limited to the Jones Act, FELA are totally excluded. USL&H is excluded
except where incidental. (“incidental” to be defined as less than 10% of an individual
insured’s payroll.)
	 
	 	10.	 	Aircraft owned or leased by the insured.
	 
	 	11.	 	Risks involving known exposure to the following substances: Dioxin, Polychlorinated biphenyls
(PCB’s) and Asbestos.
	 
	 	12.	 	Mining either above or below ground.

	 
	 	13.	 	Construction of bridges, tunnel or dams.

	 
	 	14.	 	Fire fighters and police officers.
	 
	 	15.	 	Railroads, except scenic railways, and access lines and industrial aid owner operations when
written as an incidental part of an insured’s overall operations.
	 
	 	16.	 	No known wrecking or demolition of buildings of structures in excess of three stories.
	 
	 	17.	 	Manufacturing, packing, handling, shipping, storage or loading into containers of explosives,
substances intended for use as an explosive, ammunitions, fuses, arms, magnesium, propellant
charges, detonating devices, fireworks, nitroglycerine, celluloid, or pyroxylin; however, this
exclusion shall not apply to the incidental packing, handling, or storage of same in
connection with the sale or transportation by owner operators of such substance;
	 
	 	18.	 	Trucking hauling explosives or ammunition (local or long distance hauling) — all employees.
	 
	 	19.	 	Manufacturing, packing, handling, shipping or storage of natural or artificial fuel gasses,
butane, propane, gasoline, or liquefied petroleum gas; however, this exclusion shall not apply
to the incidental packing, handling or storage of same in connection with the sale of such
substances.
	 
	 	20.	 	Gas or oil burner installation NOC.
	 
	 	21.	 	Gasoline Service Stations tank installations.
	 
	 	22.	 	Blasting of rock.
	 
	 	23.	 	Sewer construction all operations.
	 
	 	24.	 	Gas main, steam main, or water main construction or connection construction.
	 
	 	25.	 	Boat manufacturing F classes.
	 
	 	26.	 	Banks and trust company employees of contracting agencies in bank service: guards, patrol,
messengers or armored car crews.
	 
	 	27.	 	Detective agency.
	 
	 	28.	 	Patrol agency only in regard to armed guard services.
	 
	 	29.	 	Alternative Market business including PEO’s.

	 	 	Should the Company be involved on a risk excluded by the foregoing exclusions either by an
existing insured extending its operations or by an inadvertent acceptance by an agent or
otherwise, this Contract will attach in respect of such risk, but only until discovery by the
Underwriting Department of the Company and for not exceeding the greater of 30 days thereafter or
time required by state statute and/or regulation to retire from such risks, unless specifically
agreed by the Reinsure.

$4,000,000 xs $1,000,000

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Page 2 of 17

 

ARTICLE III — PERIOD AND CANCELLATION

This Agreement shall be effective on a risks attaching basis for new and renewal policies of the
Reinsured attaching on or after 12:01 a.m., Local Standard Time, July 1, 2007 through June 30,
2008, both days inclusive. Polices limited to 12 months plus odd time, not to exceed 18 months in
total.

The Reinsurer shall be liable for its share of the liability under all policies or portions thereof
in force as of the date of termination of this Agreement, up to the natural expiration or prior
termination date of said policies, not to exceed 12 months plus odd time, not exceeding 18 months
in all.

ARTICLE IV — AMOUNT OF COVER

No claim will be made hereunder unless the Reinsured has first sustained, by reason of any one
loss occurrence, an ultimate net loss in excess of $1,000,000 as respects workers compensation
business, Part One, Section A. Then the Reinsurer shall be liable for 100% occurrence in excess of
$1,000,000, but the Reinsurer’s liability shall not exceed 100% of $4,000,000 any one occurrence.”

In respect to Section B, Part Two limit of Standard Workers Compensation policy viz Employer’s
Liability only, the Reinsurer shall not be liable for any loss hereunder until the Ultimate Net
Loss of the Reinsured exceeds $750,000 inclusive of underlying deductibles where applicable, and
then the Reinsurer shall be liable for 100% of the amount of the Ultimate Net Loss sustained by
the Reinsured on any one loss occurrence in excess of $750,000, but the Reinsurers liability shall
not exceed 100% of $1,250,000 any one occurrence and $4,250,000 any one occurrence for risks
domiciled in New York only.

ARTICLE V — TERRITORY

Risks principally domiciled in the United States, Puerto Rico and US territories and
possessions.

ARTICLE VI — DEFINITIONS

The term “Occurrence” shall mean any one accident, disaster or casualty or series of accidents,
disasters or casualties arising out of one event.

Occupational disease and cumulative trauma when from a sudden and accidental event of 48 hours or
less. For the purpose of this contract “Sudden and Accidental” shall mean that the first and last
exposure to the causative agent to each and every individual contributing to the loss shall fall
within a single and continuous 48 hour period.

Gross Written Premium shall mean manual premium adjusted for experience modification, State/NCCI
Safety Credit, premium discount, deductible credits, expense constants and policy fees, less
returns and cancellations.

“Loss in excess of policy limits” shall mean 90% of any amount paid or payable by the Reinsured in
excess of its policy limits, but otherwise within the terms of its policy, as a result of an
action against it by its insured’s assignee to recover damages the insured is legally obligated to
pay to a third party claimant because of the Reinsured’s alleged or actual negligence or bad faith
in rejecting a settlement within policy limits, or in discharging its duty to defend or prepare
the defense in the trial of an action against its insured, or in discharging its duty to prepare
or prosecute an appeal consequent upon such an action.

“Extra contractual obligations” shall mean 90% of any punitive, exemplary, compensatory or
consequential damages, other than loss in excess of policy limits, paid or payable by the
Reinsured as a result of an action against it by its negligence or bad faith on the part of the
Reinsured in handling a claim under a policy subject to the Agreement. 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.

Notwithstanding anything stated herein, the Agreement shall not apply to any loss in excess of
policy limits or any extra contractual obligation incurred by the Reinsured as a result of any
fraudulent and/or criminal act by any officer or director of the Reinsured acting individually or
collectively or in collusion with any

$4,000,000 xs $1,000,000

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Page 3 of 17

 

individual or corporation or any organization or party involved in the presentation, defense or
settlement of any claim covered hereunder.

“Loss adjustment expense” as used herein shall mean expenses allocable to the investigation,
defense and/or settlement of specific claims, including litigation expenses and post-judgment
interest, but not including any legal expenses and cost incurred by the Reinsured in connection
with coverage questions and legal actions connected thereto, office expenses or salaries of the
Reinsured’s regular employees.

ARTICLE VII — ULTIMATE NET LOSS

The term “Ultimate Net Loss” as used in this Agreement shall mean the actual gross loss sustained
by the Reinsured, including structured settlements with claimants or outside insurers, such loss
to include all expenses incurred by the Reinsured in connection with the settlement of losses,
resistance to or negotiations concerning losses; excluding, however, any part of the office
expenses of the Reinsured and salaries of employees other than salary charges for staff adjuster,
fieldsmen, or other employees while actually engaged in the settlement of the losses.

Salvages and recoveries, whether recovered or received prior or subsequent to loss settlement
under this Agreement, but not including amounts recoverable under all facultative reinsurances,
shall be applied as if recovered or received prior to the aforesaid settlement and shall be first
deducted from the actual loss sustained to arrive at the amount of Ultimate Net Loss. Nothing,
however, in this Article shall be construed to mean losses are not recoverable hereunder until the
Ultimate Net Loss to the Reinsured has been ascertained.

ARTICLE VIII — RATE AND PREMIUM

The Reinsured shall pay a deposit premium of $1,624,500 in four equal installments based on a rate
of 4.75% of Gross Net Written Premium income as follows:

	 	 	 	 	 
	July 1, 2007
	 	$	406,125	 
	October 1, 2007
	 	$	406,125	 
	January 1, 2008
	 	$	406,125	 
	April 1, 2008
	 	$	406,125	 

Within 90 days after the expiration of this agreement and each subsequent twelve months
thereafter, the Reinsured shall provide a report to the Reinsurer setting forth the premium due
hereunder computed in accordance with the adjustable rate, and if the premium so computed is
greater than the previously paid deposit premiums and adjustments, the balance shall be remitted by
the Reinsured with this report. The contract shall have a minimum premium of $1,444,020. If
adjusted premium is less than the deposit premium, the Reinsurer shall return the difference
between the deposit premium and the adjusted premium, subject to the aforementioned minimum
premium.

ARTICLE IX — REINSTATEMENTS

Free and unlimited.

ARTICLE
X — NOTICE OF LOSS AND LOSS SETTLEMENTS

	 	1.	 	The Reinsured shall advise the Reinsurers promptly of all losses which, in the
opinion of the Reinsured, may result in a claim hereunder and of all subsequent
developments thereto which, in the opinion of the Reinsured, may materially affect the
position of the Reinsurers. Inadvertent omission or oversight in giving such notices shall
in no way affect the liability of the Reinsurers, However, the Reinsuers shall be informed
of such omission or oversight promptly upon its discovery.
	 
	 	2.	 	Such advises outlined in paragraph 1 shall include any loss for which the reserve is
50% or more of the Reinsured’s retention and, irrespective of the reserve or any question
on liability or coverage, any loss falling within the following categories:

	 	a.	 	Fatalities

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	 	b.	 	Bodily injuries involving:

	 	i.	 	Brain injuries resulting in impairment of physical functions.
	 
	 	ii.	 	Spinal injuries resulting in partial or total paralysis of
upper or lower extremities;
	 
	 	iii.	 	Amputations or permanent loss of use of upper or lower
extremities;
	 
	 	iv.	 	Severe burn cases;
	 
	 	v.	 	All other injuries likely to result in a permanent disability rating of 50% or more.

	 	3.	 	The Reinsurers agree to abide by the loss settlements of the Reinsured, provided that
retroactive extension of Policy terms or coverages made by the Reinsured will be covered
under this Agreement only if made as a result of a court decision against the Reinsured,
or the existence of a clear legal precedent in the form of a court decision against other
companies affording the same or similar coverages.
	 
	 	4.	 	When so requested, the Reinsured will afford the Reinsurers an opportunity to be
associated with the Company, at the expense of the Reinsurers, in the defense of any claim
or suit or proceeding involving this reinsurance and the Reinsured will cooperate in every
respect in the defense of such claim, suit or proceeding.

ARTICLE XI — TAXES

In consideration of the terms under which this Agreement is issued, the Reinsured undertakes not
to claim any deduction of the premium hereon when making tax returns, other than income or profits
tax returns, to any state or territory of the United States of America or to the District of
Columbia.

ARTICLE XII — CURRENCY

All retentions and limits hereunder are expressed in United States Dollars, and all premium and
loss payments shall be made in United States currency.

ARTICLE XIII — ACCESS TO RECORDS

The Reinsurer or its duly authorized representative shall have the right at any reasonable time
upon five (5) working days prior notice during or at any time after the expiration of this
Agreement, and as frequently as deemed necessary by the Reinsurer, to visit the office of the
Reinsured (or of any affiliate or representative of the Reinsured involved with the Business
Covered under this Agreement) to inspect, examine, audit, and verify any of the policy or claim
files, accounts, documents, books, reports, or work papers (“records”) relating to the business
reinsured under this Agreement whether or not those records are co-mingled with any unrelated
business records. Reinsurer or its representative shall have the right to make copies, at its own
expense, or extracts of any records related specifically to the Business Covered under this
Agreement only.

ARTICLE XIV — OFFSET CLAUSE

All amounts due either the Reinsured or the Reinsurer, whether by reason of reinsurance premium,
Ultimate Net Loss, or any other amount due under this Agreement shall be subject to the right of
recoupment and offset and upon the exercise of the same, only the net balance shall be due. All
claims for amounts of reinsurance premium, Ultimate Net Loss, or any other amount due under this
Agreement, whether or not fixed in amount at the time of the
insolvency of any party to this
Agreement, arising from coverage placed in effect under this Agreement prior to the insolvency of
any party to this Agreement shall be deemed pre-liquidation debts and subject to this Article. In
the event of insolvency of the Reinsured, offset shall be in accordance with applicable law.

ARTICLE
XV — ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising out of the
interpretation, performance or breach of this Agreement, including the formation or validity
thereof, shall be submitted for

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decision to a panel of three arbitrators. Notice requesting arbitration will be in writing and
sent certified or registered mail, return receipt requested.

One arbitrator shall be chosen by each party and the two arbitrators shall, before instituting
the hearing, choose an impartial third arbitrator who shall preside at the hearing. 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 or registered mail of its intention to do
so, may appoint the second arbitrator.

If the two arbitrators are unable to agree upon the third arbitrator within 30 days of their
appointment, the third arbitrator shall be selected by the American Arbitration Association.

Al1 arbitrators shall be disinterested active or former executives of insurance or reinsurance
companies or underwriters at Lloyd’s, London, with expertise or experience in the area being
arbitrated.

Within 45 days after notice of appointment of all arbitrators, the panel shall meet and determine
timely periods for briefs, discovery periods 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
South Carolina, 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 South Carolina. The decision of any two arbitrators when rendered
in writing shall be final and binding. The panel is empowered to grant interim relief, as it may
deem appropriate.

The panel shall make its decision considering the custom and practice of the applicable insurance
and reinsurance business within 60 days following the termination of the hearings. Judgment upon
the award may be entered in any court having jurisdiction thereof.

If more than one 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 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 reinsurers constituting the one party; provided, however, that nothing
herein shall impair the rights of such reinsurers to assert several, rather than joint defenses or
claims, nor be construed as changing the liability of the reinsurers under the terms of this
Agreement from several to joint (if applicable).

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.

ARTICLE XVI — INSOLVENCY

In the event of the insolvency of the Reinsured or the Reinsurer (the “Insolvent Party”), premiums
and losses shall be payable directly to the Insolvent Party or its liquidator, receiver,
conservator or statutory successor on the basis of the liability of the Insolvent Party without
diminution because of the insolvency of the Insolvent Party. The liquidator, receiver, conservator
or statutory successor of the Insolvent Party shall give written notice to the other party hereto
of the pendency of a claim against the Insolvent Party, indicating the Policy reinsured which
claim would involve a possible liability on the part of the other party hereto within reasonable
time after such claim is filed in the conservation, liquidation, or receivership proceedings, and
that during the pendency of such claim the other party hereto 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 Insolvent Party or its liquidator, receiver,
conservator or statutory successor. The expense thus incurred by the other party shall be
chargeable, subject to he approval of the court, against the Insolvent Party as part of the
expense of conservation, liquidation or receivership to the extent of a pro rata share of the
benefit which may accrue to the Insolvent Party solely as a result of the defense undertaken by
the other party.

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ARTICLE XVII — INSOLVENCY FUND EXCLUSION

It is agreed that this Agreement excludes all liability of the Reinsured arising by contract,
operation of law, or otherwise, from its participation or membership, whether voluntary or
involuntary, in any insolvency fund. “Insolvency Fund” includes any guaranty fund, insolvency
fund, plan, pool, association, fund or other arrangement, however denominated, established or
governed, which provides for any assessment of or payment or assumption by the Reinsured of
part or all of any claim, debt, charge, fee or other obligations of an insurer, or its
successors or assigns, which has been declared by any competent authority to be insolvent, or
which is otherwise deemed unable to meet any claim, debt, charge, fee or other obligation in
whole or in part.

ARTICLE XVIII — ERRORS AND OMISSIONS

Except for the conditions as provided for in the Sunset Article of this Agreement, any
isolated and inadvertent administrative act, neglect, delay, omission, or error by either
party to this Agreement, will not be held to relieve either party to this Agreement from any
liability that would attach to it under this Agreement if that act, neglect, delay,
omission, or error had not been made, providing that such act, neglect, delay, omission, or
error is not prejudicial to the other party and is rectified immediately upon discovery
without prejudice to the other party.

ARTICLE XIX — SUNSET CLAUSE

Notwithstanding
the provisions of the Errors and Omissions Article of this Agreement,
coverage hereunder shall apply only to Event(s) notified by Reinsured to Reinsurer, with
full particulars, within eighty four (84) months from the commencement of the Term of this
Agreement Notice of an Event shall include:

	 	1.	 	The approximate time and location of the Event.
	 
	 	2.	 	The date of loss as established under this Agreement.
	 
	 	3.	 	The names of any original insureds that have been identified by Reinsured, at the time of notice, as
being involved in the Event.
	 
	 	4.	 	The current indemnity, medical and expense reserves delineated by original insured.
	 
	 	5.	 	The total payments made by the Reinsured, delineated by original insured.

ARTICLE XX— MANDATORY COMMUTATION CLAUSE

Not later than eighty-four (84) months after the commencement of the Term of this Agreement,
Reinsured shall advise Reinsurer of the amount of all Ultimate Net Loss for all claims from
Business Covered from any Event, both reported and unreported, both paid and not finally
settled, that is the subject of this Agreement. Reinsured and Reinsurer or their respective
representatives shall, within sixty (60) days thereafter by mutual agreement, determine and
capitalize (i.e. reduce to a net present value) the total of such Ultimate Net Loss for each
Event.

If the mutually agreed capitalized value of the Ultimate Net Loss for any Event is in excess
of Reinsured’s retention for that Event, Reinsurer shall pay Reinsured the amount, subject
to the coverage provided under this Agreement, of capitalized Ultimate Net Loss in excess of
Reinsured’s retention for that Event less any amounts of Ultimate Loss previously paid by
Reinsurer to Reinsured for that Event.

If mutual agreement cannot be reached, then any difference shall be settled by an appraisal
made by a panel of three actuaries, one to be chosen by each party and the third by the two
so chosen. If either party refuses or neglects to appoint an actuary within thirty (30) days
of a written request from the other party to appoint an actuary, the other party may appoint
two actuaries. If the two actuaries fail to agree on the selection of a third actuary within
thirty (30) days of their appointment, each of them shall name two, of whom the other shall
decline one and the decision shall be made by drawing lots.

All the actuaries shall be regularly engaged in the valuation of Workers’ Compensation
claims and shall be Fellows of the Casualty Actuarial Society or Members of the American
Academy of Actuaries. None of the actuaries shall be under the control of either party to
this Agreement.

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Each party shall submit its case to its chosen actuary within thirty (30) days of the appointment
of the third actuary. The decision in writing of any two appointed actuaries, when filed with the
parties hereto, shall be final and binding on all parties participating in the appraisal and
judgment may be entered hereon in any court of competent jurisdiction.

The expense of the actuaries and of their appraisal shall be equally divided between the Reinsured
and the Reinsurer. The appraisal shall take place in New York City unless some other place is
mutually agreed upon by Reinsured and Reinsurer.

Payment by Reinsurer of the amount of capitalized Ultimate Net Loss in excess of Reinsured’s
retention for any Event less any amounts of Ultimate Net Loss previously paid by Reinsurer to
Reinsured for that Event, whether determined by mutual agreement or by the appraisal procedure set
forth above, shall constitute a complete and final release of Reinsurer of all claims by Reinsured
for Ultimate Net Loss, both reported and unreported, paid and incurred, for that Event. If the
capitalized Ultimate Net Loss for any Event is determined to be below the retention, whether by
mutual agreement or the appraisal procedure set forth above, such determination shall constitute a
complete and final release of Reinsurer for all claims by Reinsured for Ultimate Net Loss, both
reported and unreported, paid and incurred, for that Event.

ARTICLE XXI — NET RETAINED LINES

This Agreement applies only to that portion of any insurance or reinsurance which the Reinsured
and/or its agents retains net for its own account, inclusive of underlying insurance or
reinsurance. In calculating the amount of any loss hereunder, and also in computing the amount or
amounts in excess of which this Agreement attaches, only loss or losses in respect of that portion
of any insurance or reinsurance which the Reinsured retains net for its own account, inclusive of
underlying insurance or reinsurance, shall be included.

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 Reinsured to collect from any other reinsurers,
whether specific or general, any amount which may have become due from them, whether such
inability arise from the insolvency of such other reinsurers or otherwise.

ARTICLE XXII — SUBROGATION

Reinsurer shall be credited with subrogation (i.e. reimbursement obtained or recoveries made by
Reinsured, less the actual cost, excluding salaries of officers and employees of the Reinsured and
sums paid to attorneys as retainer, of obtaining such reimbursement or making such recoveries) on
any claims or settlements involving this Agreement. Subrogation and salvage shall always be used
to reimburse the excess Reinsurers in the reverse order of their priority according to their
participation in the Ultimate Net Loss before being used in any way to reimburse Reinsured for its
portion of the Ultimate Net Loss under its retention. Reinsured will reasonably enforce its rights
to subrogation and salvage and will reasonably prosecute all claims arising out of those rights.
In the event Reinsured shall refuse or neglect to enforce its rights to salvage or subrogation,
Reinsurer is authorized and empowered to bring any appropriate action in the name of Reinsured or
its policyholder or otherwise to enforce those rights and Reinsured shall cooperate fully with
Reinsurer enforcing those rights. Reinsured and Reinsurer shall share in the cost and expense of
any unsuccessful subrogation efforts in the same proportion that Reinsured and Reinsurer shared
the Ultimate Net Loss giving rise to those subrogation efforts.

ARTICLE XXIII—TERMINATION DURING LOSS

Should the liability of the Reinsurer under this Agreement terminate while a loss giving rises to
a claim hereunder is in progress, the Reinsurer shall be liable as if the whole loss had occurred
during the currency of this Agreement.

ARTICLE XXIV — ENTIRE AGREEMENT CLAUSE

The entire agreement between the Reinsured and the Reinsurer is contained in this Agreement,
including the Reinsuring agreements, exclusions and conditions.

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ARTICLE XXV —EXCLUSIVE BENEFITS OF THE PARTIES

This Contract is solely between the Reinsured and the Reinsurer, upon who only are conferred all
the rights and benefits hereof. In no instance shall any person or entity other than the
Reinsured and the Reinsurer as identified in this Contract have any legally enforceable rights
or benefits hereunder.

ARTICLE XXVI —LATE PAYMENT CLAUSE

	 	A.	 	It is understood and agreed that the provisions of this Article shall not be
implemented unless
specifically invoked, in writing, by one of the parties of this Contract.
	 
	 	B.	 	In the event any premium, loss or other payment due either party is not received by the
Intermediary named in the Intermediary Article (hereinafter referred to as the
“Intermediary”) by
the payment due date, the party to whom payment is due may, by notifying the Intermediary in
writing, require the debtor party to pay, and the debtor party agrees to pay, an interest
penalty on
the amount past due calculated for each such payment on the last business day of each month
as
follows:

	 	1.	 	The number of full days which have expired since the due date or the
last monthly calculation, whichever the lesser; times
	 
	 	2.	 	1/365th of 1.5% penalty; times
	 
	 	3.	 	The amount past due, including accrued interest.

	 	 	 	It is agreed that interest shall accumulate until payment of the original amount due plus
interest penalties have been received by the Intermediary.
	 
	 	C.	 	The establishment of the due date shall, for purposed of the Article, be determined as
follows:

	 	1.	 	As respects the payment of routine deposits and premiums due
the Reinsurer, the due date shall be as provided for in the
applicable section of this Contract. In the event a due date
is not specifically stated for a given payment, it shall be
deemed due 45 days after the date of transmittal by the
Intermediary of the initial billing for each such payment.
	 
	 	2.	 	Any claim or loss payment due the Reinsured hereunder shall
be deemed due ten business days following receipt by the
applicable Subscribing Reinsurer constituting at least 66
2/3% of the interests and liabilities of all Subscribing
Reinsurers participating under this Contract, who are active
as of the due date; it being understood that said date shall
not be later than 75 days from the date of transmittal by
the Intermediary of the initial billing for each such
payment.
	 
	 	3.	 	As respects any payment, adjustment or return due either
party not otherwise provided for in subparagraphs 1 and 2 of
paragraph C above, the due date shall be deemed as 10
business days following receipt of written notification that
the provisions of this Article have been invoked.

	 	 	 	For purposes of interest calculations only, amounts due hereunder shall be deemed paid upon
receipt by the Intermediary.
	 
	 	D.	 	Nothing herein shall be construed as limited or prohibiting 1) a Subscribing
Reinsurer from contesting the validity of any claim, or from participating in the
defense of any claim or suit; or 2) either party from contesting the validity of any
payment, or from initiating any arbitration or other proceeding in accordance with the
provisions of this Contract. If the debtor party prevails in an arbitration or other
proceeding, than any interest penalties due hereunder on the amount in dispute shall be
null and void. If the debtor party loses in such proceeding, then the interest penalty
on the amount determined to be due hereunder shall be calculated in accordance with the
provisions set forth above unless otherwise determined by such proceedings. If a debtor
party advances payment of any amount it is contesting, and proves to be correct in its
contestation, either in whole or in part, the other party shall reimburse the debtor
party for any such excess payment made plus interest on the excess amount calculated in
accordance with this Article.

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	 	E.	 	As provided under this Article, it is understood and agreed
that the Reinsured shall
furnish the Reinsurer with usual and customary claim information and nothing herein shall be construed
as limiting or prohibiting a Subscribing Reinsurer from requesting additional information that
it may deem necessary.
	 
	 	F.	 	As respects subparagraph 2 of paragraph C above, a Subscribing Reinsurer shall be
deemed not to be active when it 1) ceases assuming new or renewal reinsurance business; 2) is declared
insolvent, or put in liquidation, conservatorship or rehabilitation by a competent
regulatory authority or court; 3) has a reduction in its statutory surplus of 50% or more from its
statutory surplus as of the effective date of this Contract.
	 
	 	G.	 	Interest penalties arising out of the application of this Article that are $100 or
less from any party shall be waived unless there is a pattern of late payments consisting of three or more
items over the course of a 12-month period.

ARTICLE XXVII-INTERMEDIARY CLAUSE

Patriot Re International, Inc., 400 Northampton St., Easton, PA 18042 is hereby recognized as the
Intermediary negotiating this Agreement for all business hereunder. All communications (including,
but not limited to, notices, statements, premiums, return salvages and loss settlements) relating
hereto shall be transmitted to the Company or the Reinsurer through Patriot Re International, Inc.

IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals this ___ day of
                     , 200___.

	 	 	 	 	 
	GUARANTEE INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 

     Name of Officer
	 	 
	 
	 	 	 	 
	Title:

	 	President	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	MIDWEST EMPLOYERS CASUALTY COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 

     Name of Officer
	 	 
	 
	 	 	 	 
	Title:

	 	Reinsurance Underwriting Manager	 	 
	 

	 	 

	 	 

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	 	E.	 	As provided under this article, it is understood and agreed that the Reinsured shall
furnish the Reinsurer with usual and customary claim information and nothing herein shall be construed
as limiting or prohibiting a Subscribing Reinsurer from requesting additional information that
it may deem necessary.
	 
	 	F.	 	As respects subparagraph 2 of paragraph C above, a Subscribing Reinsurer shall be
deemed not to be active when it 1) ceases assuming new or renewal reinsurance business; 2) is declared
insolvent, or put in liquidation, conservatorship or rehabilitation by a competent
regulatory authority or court; 3) has a reduction in its statutory surplus of 50% or more from its
statutory surplus as of the effective date of this Contract.
	 
	 	G.	 	Interest penalties arising out of the application of this Article that are $ 100 or
less from any party shall be waived unless there is a pattern of late payments consisting of three or more
items over the course of a 12-month period.

ARTICLE XXVII — INTERMEDIARY CLAUSE

Patriot Re International, Inc., 400 Northampton St., Easton, PA 18042 is hereby recognized as the
Intermediary negotiating this Agreement for all business hereunder. All communications (including,
but not limited to, notices, statements, premiums, return salvages and loss settlements) relating
hereto shall be transmitted to the Company or the Reinsurer through Patriot Re International, Inc.

IN
WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals this ___ day of
                    ,
200_____.

	 	 	 	 	 
	GUARANTEE INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]	 	 
	 

	 	 

     Name of Officer
	 	 
	 
	 	 	 	 
	Title:

	 	President	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	MIDWEST EMPLOYERS CASUALTY COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	/s/ [ILLEGIBLE] 

     Name of Officer
	 	 
	 
	 	 	 	 
	Title:

	 	Reinsurance Underwriting Manager	 	 
	 

	 	 

	 	 

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EXHIBT A

(Nuclear Risk Exclusion)

This Agreement does not apply to “Ultimate Net Loss” arising from, whether directly or indirectly,
whether proximate or remote:

	 	a)	 	Any Nuclear Facility, Nuclear Hazard or Nuclear Reactor;
	 
	 	b)	 	Any Nuclear Material, Radioactive Material, Nuclear Reaction, Nuclear Radiation or
radioactive contamination, all whether controlled or uncontrolled; or
	 
	 	c)	 	Any Nuclear Material, Radioactive Material, Nuclear Reaction, Nuclear Radiation
or radioactive contamination, all whether controlled or uncontrolled, caused directly or
indirectly by, contributed to or aggravated by an Event;
	 
	 	d)	 	Any Spent Fuel or Waste;
	 
	 	e)	 	Any Fissionable Substance; or
	 
	 	f)	 	Any nuclear device or bomb.

     As used in this Exclusion:

     “Fissionable Substance” means;

any prescribe substance that is, or from which can be obtained, a substance capable of
releasing atomic energy by nuclear fission.

     “Nuclear Facility” means;

any Nuclear Reactor,

any apparatus designed or used to sustain nuclear fission in a self-supporting chain
reaction or to contain a critical mass of plutonium, thorium and uranium or any one or
more of them;

any equipment or device designed or used for (i) separating the isotopes of plutonium,
thorium and uranium or any one or more of them, (ii) processing or utilizing spent fuel,
or (iii) handling, processing or packaging Waste;

any equipment or device used for the processing, fabricating or alloying of Special
Nuclear Material if at any time the total amount of such material in the custody of the
insured at the premises where such equipment or device is located consists of or contains
more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than
250 grams of uranium 235,

any equipment or device used for the processing, fabricating or alloying of plutonium,
thorium or uranium enriched in the isotope uranium 233 or in the isotope uranium 235, or
nay one or more of them if at any time the total amount of such material in the custody of
the Insured at the premised where such equipment or device is located consists of or
contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or
more than 250 grams of uranium 235;

any structure, basin, excavation, premises or place prepared or used for the storage or
disposal of Waste or Radioactive Material, and includes the site on which any of the
foregoing is located, all operations conducts on such site and all premises used for such
operations;

“Nuclear Hazard” means: the radioactive, toxic, explosive or other hazardous properties of
Radioactive
Material or Nuclear Material.

“Nuclear Material” means Source Material, Special Nuclear Material or Byproduct Material.

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“Nuclear Reactor” means any apparatus designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a critical mass of fissionable material.

“Radioactive Material” means uranium, thorium, plutonium, neptunium, their respective derivatives
and compounds, radioactive isotopes of other elements and any other substances that the Atomic
Energy Control Board may, by regulation designate as being prescribed substances capable of
releasing atomic energy, or as being requisite for the production, use or application of atomic
energy.

“Source Material,” “Special Nuclear Material”, and “Byproduct Material” have the meanings given
them in the Atomic Energy Act of 1954 or in any law amendatory thereof.

“Spent Fuel” means any fuel element or fuel component, solid or liquid, which has been sued or
exposed to radiation in the Nuclear Reactor.

“Waste” means any waste material (i) containing Byproduct Material and (ii) resulting from the
operation by any person or organization of any Nuclear Facility.

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Terrorism Exclusion

Notwithstanding any provision to the contrary within this reinsurance or any endorsement thereto it
is agreed that this reinsurance excludes loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any act of terrorism
regardless of any other cause or even contributing concurrently or in any other sequence to the
loss.

For the purpose of this endorsement an act of terrorism means and act, including but not limited to
the use of force or violence and/or the threat thereof (or the use or release of any biological or
chemical material or weapons that may harm or endanger any person,
property, animals or the
environment) of any person or group(s) of persons, whether acting alone or on behalf of or in
connection with any organization(s) or government(s), committed for political, religious,
ideological or similar purposes including the intention to influence any government and/or to put
the public, or any section of the public, in fear.

This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or
indirectly caused by resulting from or in connection with any action taken in controlling,
preventing, suppressing or in any way relating to any act of terrorism.

In the even of any portion of this endorsement is found to be invalid or unenforceable, the
remainder shall remain in the full force and effect.

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Special Acceptance

It is hereby understood and agreed that the following risk is covered as a Special
Acceptance:

Arkansas Houseworks      Policy #GWGC10001309

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SCHEDULE 1                               2007

SPECIFIC BUSINESS OPERATIONS EXCLUSIONS

These exclusions apply based on the activities performed by a business and
therefore will not always be identified by a class code.

The related class codes are those with known operations to be excluded — They are
not meant to be all inclusive. They DO NOT include State specific codes which
must be identified through the Scopes Manual.

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	Airline and Aircraft
Operations-Commerical Airline Crews

	 	7403 — Aircraft or Helicopter Air Carrier
— Ground Crew
	 

	 	7405 — Aircraft or Helicopter Air Carrier — Flying Crew
	 

	 	7409* — Aircraft or Helicopter: Aerial Application
	 

	 	7420* — Aircraft or Helicopter: Public Exhibition
	 

	 	7421 — Aircraft or Helicopter: Transportation — Crew
	 

	 	7422* — Aircraft or Helicopter: NOC, not Helicopters
	 

	 	7423 — Aircraft or Helicopter Operation: Commuter
	 

	 	7425* — Aircraft Operation — Helicopters NOC
	 

	 	7431* — Aircraft or Helicopter — Commuter — Crew
	 

	 	9088* — Rocket or missile testing or Launching
	 
	 	 
	Asbestos Operations

	 	1852 — Asbestos Goods Manufacturing
	 

	 	5472 — Asbestos Removal Operation: Contractor
	 

	 	5473 — Asbestos Removal Operation: Contractor NOC
	 
	Banks & Trust Companies: Employees of Contracting

	 	7720 — With this specific language (CR)
	Agencies in Bank Service: Guards, Patrols, Messengers 

or Armored Car Crews
	 	 
	 
	 	 
	Blasting Rock

	 	6217 — Blasting Rock — Specialist Contractor (CR)
	 
	 	 
	Boat Building and Ship Building

	 	
	

	 	6854* — Ship Building — Iron or Steel — NOC
	 

	 	All related “F” Classes Separately Identified**
	 

	 	6843* — Ship Building Iron or Steel
	 

	 	6872* — Ship Repair or Marine Railway
	 

	 	6882* — Ship Repair Conversion
	 

	 	8709* — Stevedoring: Talliers, Inspectors
	 

	 	7016* — Vessels NOC — Program 1
	 

	 	7024* — Vessels NOC — Program 2 State Act
	 

	 	7038* — Boat Livery — Boats under 15 Tons-Program 1
	 

	 	7046* — Vessels — Not Self-Propelled — Program 1
	 

	 	7047* — Vessels — NOC — Program 2 USL Act
	 

	 	7050* — Boat Livery — Boats under 15 Tons-Program 2
	 

	 	USL Act
	 
	 	 
	 

	 	7090* — Boat Livery-Boats under 15 Tons-Program 2
	 

	 	State Act
	 

	 	7098* — Vessels — Not Self-Propelled-Program 2 State
Act
	 

	 	7099* — Vessels-Not Self-Propelled-Program 2 USL Act

$4,000,000 xs $1,000,000

Midwest Contract Wording

July 27, 2007

 Page 15 of 17

 

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	 

	 	7309* — Stevedoring NOC
	 

	 	7313* — Ore or Coal Dock Operation
	 

	 	7317* — Stevedoring by Hand or Truck
	 

	 	7323* — Stevedoring Explosive Materials
	 

	 	7327* — Stevedoring Containerized Freight
	 

	 	7333* — Dredging — All Types — Program 1
	 

	 	7335* — Dredging — All Types — Program 2 State Act
	 

	 	7337*— Dredging —All Types —Program 2 USL Act
	 

	 	7350* — Freight Handling & Stevedoring
	 
	 	 
	Construction, operation, repair or maintenance of:

	 	2702 — Dam or Lock Construction (CR)
	Bridges

	 	5037* — Painting Metal Structure Over Two Stories
	Dams or Locks

	 	5040* — Iron or Steel Erection — Frame Structures
	Dikes or Revetments

	 	5059* — Iron or Steel; Erection — Frame Structures
	Subways

	 	                    Less Than Two Stories
	Sub-Aqueous Works Under Pressure

	 	5222* — Concrete Const. In Connection w/Bridges
	Tunnels

	 	5403 — Construction: Wooden Bridges (Desc)
	 

	 	6003 — Wood Bridge Construction (Desc)
	 

	 	6005 — Dike or Revetment Construction (CR)
	 

	 	6017 — Dam or Lock Construction: Concrete Work
	 

	 	6018 — Dam or Lock Construction: Earthmoving
	 

	 	6251 * — Tunneling — Not Pneumatic
	 

	 	6252* — Shaft Sinking
	 

	 	6260* — Tunneling — Pneumatic
	 

	 	7133 — Subway Operation (Desc)
	 

	 	7538* — Electric Light or Power Line Construction
	 

	 	7540* — Electric Light or Power Co-op;REA Project only
	 

	 	9019 — Bridge or Vehicular Tunnel Operation
	 
	 	 
	Demolition or Wrecking of:

	 	5022 — Wrecking Bldgs or Structures — Masonry (CR)
	Bridges

	 	5057* — Wrecking Bldgs/Structures — Iron or Steel (CR)
	Buildings

	 	5213 — Wrecking Bldgs or Structures — Concrete (CR)
	Maritime Structures

	 	5403 — Wrecking Bldgs or Structures — Wooden (CR)
	Demolition or Wrecking of:

	 	6003 — Wrecking of Piers or Wharfs (Desc)
	Vessels

	 	7394*, 7395* & 7398* — Marine Wrecking (CR)
	 
	 	 
	Detective or Patrol Agencies

	 	7720 — Detective or Patrol Agencies (CR). Not
applicable to unarmed patrol personnel.
	Firefighters

	 	7704 — Firefighters
	 
	 	 
	Gas Main, Steam Main or Water Main Construction

	 	6319 — Gas Main or Connection Construction
	Or Connection Construction

	 	6206* — Oil or Gas Well-Cementing
	 

	 	7515* — All Oil or Gas Pipeline Operation
	 
	 	 
	Manufacturing, transportation, packing, handling,

	 	3574 — Arms Mfg-Small & Cartridge Mfg (CR)
	shipping, storage or loading into containers:

	 	3632 — Projectile or Shell Mfg (CR)
	Explosives (incl substance intended for use as)

	 	4771 * — Explosives or Ammunition Manufacturing
	Ammunitions, fuses or arms

	 	4777 — Explosives Distributors
	Propellant charges

	 	7228 — Hauling Explosives or Ammo — Local (CR)
	Detonating devices

	 	7229 — Hauling Explosives or Ammo — Long Dist (CR)

$4,000,000 xs $1,000,000

Midwest Contract Wording

July 27, 2007

 Page 16 of 17

 

	 	 	 
	Reinsurance Description of Operations to be Excluded	 	Related Class Codes & Descriptions
	Fireworks

	 	7360 — Packing/Handling/Shipping Expl or Ammo (CR)
	Celluloid, magnesium, nitroglycerine or pyroxylin
	 	 
	 
	 	 
	Mfg, packing, handling, shipping or storage of:

	 	4635* — Oxygen or Hydrogen Manufacturing
	Natural or artificial fuel gases

	 	4740 — Oil Refining — Petroleum
	Butane or propane

	 	8350 — Gasoline Dealer
	Gasoline or liquefied petroleum gas (LPG)
	 	 
	 
	 	 
	Mining of All Types Including:

	 	1005* — Coal Mining — Surface
	Underground

	 	1016 — Coal Mining NOC
	Surface

	 	1164* — Mining NOC — Not Coal — Underground
	Quarrying

	 	1165 — Mining NOC — Not Coal — Surface
	 

	 	1624 —Quarry NOC
	 

	 	1654 — Quarry — Cement Rock-Surface
	 

	 	1655 — Quarry — Limestone — Surface (CR)
	 

	 	1710 — Stone Crushing — Included by SIC
	 

	 	1741 * — Flint or Spar Grinding
	 

	 	1803* — Stone Cutting or Polishing NOC
	 

	 	4000 — Sand or Gravel Digging — Included by SIC
	 
	 	 
	Oil or Gas Burner Installation

	 	3724 — Oil or Gas Burner Installation-Commercial (CR)
	 

	 	3726* — Boiler Installation or Repair
	 

	 	5183 — Oil or Gas Burner Installation — Domestic (CR)
	 
	 	 
	Police Officers

	 	7720 — Police Officers
	 
	 	 
	Railroads

	 	6702, 6703 & 6704 — RR Construction — State & Federal
	Except — scenic railways and access lines

	 	7133 — Railroad Operations NOC
	industrial aid owner operations if incidental

	 	7151, 7152 & 7153 — RR Operations — State & Federal
	 

	 	7382 — Scheduled RR Operations (CR)
	 

	 	7855 — RR Construction: Laying or Relaying of Tracks
	 

	 	8734, 8737, 8738 — Sales for RR ops — State & Fed
	 

	 	8805, 8814 &8815 — Clerical for RR ops — State & Fed
	 
	 	 
	Sewer Construction — All Operations

	 	6306 — Sewer Construction
	 

	 	3620 — Pressure Vessel Manufacturing (Desc)
	 
	 	 
	Tank Installation: Gasoline Service Stations

	 	3724 — Tank Installation — Gas Stations (CR)

$4,000,000 xs $1,000,000

Midwest Contract Wording

July 27, 2007

 Page 17 of 17

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