Document:

Excess of Loss Retrocession Contract

 Exhibit 10.2 
  

 
 EXCESS OF LOSS RETROCESSION CONTRACT 

EFFECTIVE: JUNE 1, 2013 

ISSUED TO 
 CLADDAUGH
CASUALTY INSURANCE COMPANY, LTD. 
 BERMUDA 

Including any and/or all companies that are or may hereafter become affiliated therewith 

 
 

 

 

 
  

 EXCESS OF LOSS RETROCESSION CONTRACT 

TABLE OF CONTENTS 
  

					
	 ARTICLE 1
	  			
	 BUSINESS COVERED
	  	 	1	  
	 ARTICLE 2
	  			
	 TERM
	  	 	2	  
	 ARTICLE 3
	  			
	 TERRITORY
	  	 	2	  
	 ARTICLE 4
	  			
	 CONCURRENCY OF CONDITIONS
	  	 	2	  
	 ARTICLE 5
	  			
	 LIMIT AND RETENTION
	  	 	2	  
	 ARTICLE 6
	  			
	 REINSURANCE PREMIUM
	  	 	3	  
	 ARTICLE 7
	  			
	 LIMITED RECOURSE AND CAYMAN ISLANDS REGULATIONS
	  	 	3	  
	 ARTICLE 8
	  			
	 ACCESS TO RECORDS
	  	 	3	  
	 ARTICLE 9
	  			
	 AGENCY
	  	 	4	  
	 ARTICLE 10
	  			
	 ARBITRATION
	  	 	4	  
	 ARTICLE 11
	  			
	 COLLATERAL
	  	 	5	  
	 ARTICLE 12
	  			
	 COLLATERAL RELEASE
	  	 	6	  
	 ARTICLE 13
	  			
	 CONFIDENTIALITY
	  	 	6	  
	 ARTICLE 14
	  			
	 CURRENCY
	  	 	8	  
	 ARTICLE 15
	  			
	 ENTIRE AGREEMENT
	  	 	8	  
	 ARTICLE 16
	  			
	 ERRORS AND OMISSIONS
	  	 	8	  
	 ARTICLE 17
	  			
	 FEDERAL EXCISE TAX
	  	 	8	  
	 ARTICLE 18
	  			
	 GOVERNING LAW
	  	 	9	  

  
 

 

 

 
  

					
	 ARTICLE 19
	  			
	 INSOLVENCY
	  	 	9	  
	 ARTICLE 20
	  			
	 LATE PAYMENTS
	  	 	10	  
	 ARTICLE 21
	  			
	 NON WAIVER
	  	 	12	  
	 ARTICLE 22
	  			
	 NOTICES AND AGREEMENT EXECUTION
	  	 	12	  
	 ARTICLE 23
	  			
	 OFFSET
	  	 	13	  
	 ARTICLE 24
	  			
	 SERVICE OF SUIT
	  	 	13	  
	 ARTICLE 25
	  			
	 SEVERABILITY
	  	 	14	  
	 ARTICLE 26
	  			
	 TAXES
	  	 	14	  
	 ARTICLE 27
	  			
	 INTERMEDIARY
	  	 	14	  

  
 

 

 

 
  

 EXCESS OF LOSS RETROCESSION CONTRACT 

(hereinafter called the “Contract”) 

EFFECTIVE: JUNE 1, 2013 

issued to 
 CLADDAUGH CASUALTY
INSURANCE COMPANY, LTD. 
 BERMUDA 

Including any and/or all companies that are or may hereafter become affiliated therewith 

(hereinafter called the “Reinsured”) 

by 
 THE SUBSCRIBING
REINSURER(S) SPECIFIED IN THE INTERESTS AND LIABLITIES AGREEMENT 
 ATTACHED TO THIS CONTRACT 

(hereinafter called, with other participants, the “Reinsurers”) 

ARTICLE 1 
 BUSINESS COVERED

 By this Contract the Reinsurer agrees to reimburse the Reinsured for the Ultimate Net Loss arising from Loss Occurrences commencing during the
Term of this Contract in respect of the Reinsured’s liability under the provisions of the Homeowners Choice Property & Casualty Insurance Company Catastrophe Excess of Loss and Catastrophe Aggregate Excess of Loss Reinsurance
Contracts, effective June 1, 2013 (hereinafter referred to as the “Original Contracts”) as follows: 
  

	 	a.	22.0779% (4.25% part of 19.25%) of the Catastrophe Excess of Loss Reinsurance Contract 

  

	 	b.	18.1818% (4.00% part of 22.00%) of the Catastrophe Aggregate Excess of Loss Reinsurance Contract 

 The
liability of the Reinsurer shall follow that of the Reinsured in every case and shall be subject in all respects to all the general and specific stipulations, clauses, waivers, extensions, modifications and endorsements of the Original Contracts
subject to the exclusions set forth in the Exclusions Article, and the other terms and conditions of this Contract as set forth herein. 

  
 

 

 

 
  

 ARTICLE 2 

TERM 
  

	1.	This Contract shall become effective at 12:00:01 a.m., Local Standard Time June 1, 2013, with respect to the Ultimate Net Loss arising from Loss Occurrences payable by the Reinsured under the provisions of the
Original Contracts, and shall remain in force until 12:00:01 a.m., Local Standard Time, June 1, 2014. “Local Standard Time” as used herein shall mean local standard time at the location where the Loss Occurrence commences.

  

	2.	The obligations of the Reinsurer under this Contract shall continue for Loss Occurrences commencing during the Term of this Contract until the Reinsured has no further liability under the Original Contracts.

 ARTICLE 3 

TERRITORY 
 The territorial limits of this Contract
shall be identical with those of the Reinsured’s Policies of the Original Contracts issued in the State of Florida. 
 ARTICLE 4

 CONCURRENCY OF CONDITIONS 
  

	1.	It is agreed that this Contract will follow those terms, conditions, exclusions, definitions, warranties and settlements of the Reinsured under the Original Contracts, including any addenda thereto, which are not
inconsistent with the provisions of this Contract. 

  

	2.	The Reinsured shall advise the Reinsurer of any material changes in the Original Contracts which may affect the liability of the Reinsurer under this Contract. 

ARTICLE 5 
 LIMIT AND RETENTION

  

	1.	The Reinsurer shall be liable for the Ultimate Net Loss arising from Loss Occurrences deemed payable under the Original Contracts. 

  

	2.	As promptly as possible after calculation of the Ultimate Net Loss arising from Loss Occurrences due from the Reinsured under the Original Contracts as a result of a loss thereunder, or any subsequent recalculation
thereof, the Reinsured shall report the amount due from the Reinsurer hereunder. The amount, if any, shown to be due from the Reinsurer shall be paid by the Reinsurer as promptly as possible following receipt and verification of the Reinsured’s
request for payment. 

  
 

 

 

 
  

 ARTICLE 6 

REINSURANCE PREMIUM 
 The Reinsured shall pay the
Reinsurer a flat premium of $1,166,513. The annual deposit premium shall follow the payment schedule of the Original Contracts. If this Contract is terminated, no deposit premium shall be due after the effective date of termination. 

ARTICLE 7 
 LIMITED RECOURSE AND
CAYMAN ISLANDS REGULATIONS 
 The liability of the Reinsurer for the performance and discharge of all of its obligations, however they may arise, in
relation to this Contract (together “Obligations” for purposes of this Article), shall be limited to and payable solely from the proceeds of realization of the assets of the Reinsurance Trust and accordingly there shall be no recourse to
any other assets of the Reinsurer, whether or not allocated to any other segregated portfolio or the general account of the Reinsurer. In the event that the proceeds of realization of the assets of the Reinsurance Trust are insufficient to meet all
Obligations, any Obligations remaining after the application of such proceeds shall be extinguished, and the Reinsured undertakes in such circumstances to take no further action against the Reinsurer in respect of any such Obligations. In
particular, neither the Reinsured nor any party acting on its behalf shall petition or take any steps for the winding up or receivership of the Reinsurer. 

Notwithstanding any matter referred to herein, the Reinsured understands and accepts that all corporate matters relating to the creation of the Reinsurer,
capacity of the Reinsurer, operation and liquidation of the Reinsurer and any matters relating to the Reinsurer thereof shall be governed by, and construed in accordance with, the laws of the Cayman Islands. The Reinsurer has had the opportunity to
take advice and to obtain all such additional information that it considers necessary to evaluate the terms, conditions and risks of entering into this Contract with the Reinsurer. 

ARTICLE 8 
 ACCESS TO RECORDS

 The Reinsurer or its designated representatives shall have access to the books and records of the Reinsured on matters relating to this
reinsurance at all reasonable times, and at the location where such books and records are maintained in the ordinary course of business, for the purpose of obtaining information concerning this Contract or the subject matter thereof. Notification of
a request for inspection of records shall be sent to the Reinsured by the 

  
 

 

 

 
  

 
Reinsurer in written form, and shall normally be given four weeks in advance. Notwithstanding the above, the Reinsurer shall not have any right of access to the records of the Reinsured if it is
not current in all undisputed payments due the Reinsured. “Undisputed” as used herein shall mean any amount that the Reinsurer has not contested in writing to the Reinsured specifying the reason(s) why the payments are disputed. 

ARTICLE 9 
 AGENCY 

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

ARTICLE 10 
 ARBITRATION

  

	1.	As a condition precedent to any right of action hereunder, in the event of any dispute or difference of opinion hereafter arising with respect to this Contract, it is hereby mutually agreed that such dispute or
difference of opinion shall be submitted to arbitration. One Arbiter shall be chosen by the Reinsured, the other by the Reinsurer, and an Umpire shall be chosen by the two Arbiters before they enter upon arbitration, all of whom shall be active or
retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s London Underwriters. In the event that either party should fail to choose an Arbiter within 30 days following a written request by the other party to do
so, the requesting party may choose two Arbiters who shall in turn choose an Umpire before entering upon arbitration. If the two Arbiters fail to agree upon the selection of an Umpire within 30 days following their appointment, each Arbiter shall
nominate three candidates within 10 days thereafter, two of whom the other shall decline, and the decision shall be made by drawing lots. Notwithstanding the above, in the event the dispute or difference of opinion involves a Runoff Reinsurer, the
Reinsured may, at its option, choose to forego arbitration and may bring action in any court of competent jurisdiction. 

  

	2.	Each party shall present its case to the Arbiters within 30 days following the date of appointment of the Umpire. The Arbiters shall consider this Contract as an honorable engagement rather than merely as a legal
obligation and they are relieved of all judicial formalities and may abstain from following the strict rules of law. The decision of the Arbiters shall be final and binding on both parties; but failing to agree, they shall call in the Umpire and the
decision of the majority shall be final and binding upon both parties. Judgment upon the final decision of the Arbiters may be entered in any court of competent jurisdiction. 

  
 

 

 

 
  

	3.	If more than one reinsurer is involved in the same dispute, all such reinsurers shall, at the option of the Reinsured, constitute and act as one party for purposes of this Article and communications shall be made by the
Reinsured to each of the reinsurers constituting 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 participating under the terms of this Contract from several to joint. 

  

	4.	Each party shall bear the expense of its own Arbiter, and shall jointly and equally bear with the other the expense of the Umpire and of the arbitration. In the event that the two Arbiters are chosen by one party, as
above provided, the expense of the Arbiters, the Umpire and the arbitration shall be equally divided between the two parties. 

  

	5.	Any arbitration proceedings shall take place at a location mutually agreed upon by the parties to this Contract. Notwithstanding the location of the arbitration, all proceedings pursuant hereto shall be governed by the
law of the State of Florida. 

 ARTICLE 11 

COLLATERAL 
  

	1.	As promptly as possible following execution of this Contract, the Reinsurer (as Grantor) shall enter into a Trust Agreement (the “Trust Agreement”) with the Reinsured (as Beneficiary) and the trustee, pursuant
to which the Reinsurer shall provide collateral in the form of eligible Assets deposited and held in a Trust Account, with such Assets having a market value greater than or equal to the limit of liability (the “Collateral”) less unpaid
premium (net of brokerage and applicable Federal Excise Tax). It is understood that deposit premium paid in accordance with the Rate and Premium Article shall be deposited into the Trust Account. 

 

	2.	The Reinsured agrees that if the Reinsurer makes payment(s) to the Reinsured under this Contract, the Reinsurer may withdraw Assets from the Trust Account, reducing the market value of Assets in the Trust Account to an
amount at least equal to the unused Reinsurance Limit, in accordance with the provisions of the Trust Agreement. 

  

	3.	The Trust Fund may be drawn upon by the Reinsured at any time and the Assets may be used at the Reinsured’s option in accordance with the provisions of the Trust Agreement. 

  
 

 

 

 
  

	4.	At any time prior to expiration or termination of this Contract, if the value of the Assets in the Trust Account is less than the Reinsurer’s Obligations hereunder, the Reinsurer shall promptly deposit the
difference into the Trust Account. 

  

	5.	Except as provided in the Collateral Release Article, the Reinsured agrees to release the Assets in the Trust Account required under this Article as promptly as provided in the Trust Agreement. 

ARTICLE 12 
 COLLATERAL RELEASE

  

	1.	At the expiration or termination of this Contract, if the Trust has not yet been terminated, the Reinsured shall calculate on a monthly basis, how much, if any, of the collateral shall be released from the Trust.

  

	2.	Notwithstanding the aforementioned, at December 31, 2014, the parties agree to consider the release of collateral. The intention is to release collateral for all limits for which there is essentially no possibility
of reinstatement premium protection from past or future events before the expiration of this Contract. All collateral securing what the parties agree are unreachable limits will be released within three business days. 

 

	3.	Thirty-six months following the expiration of this Contract, the Reinsurer shall have the option to commute this Contract by sending the Reinsured written notice thereof. In such event, the Reinsurer shall pay to the
Reinsured an amount equal to the reinstatement premium reserves hereunder, as estimated by the Reinsured, which would be recoverable hereunder. Upon the Reinsurer’s payment of such amount, both parties shall be completely released from all
liability under this Contract, whether known or unknown. 

 ARTICLE 13 

CONFIDENTIALITY 
  

	1.	The Reinsurer hereby acknowledges that the documents, information and data provided to it by the Reinsured, whether directly or through an authorized agent, in connection with the placement and execution of this
Contract (hereinafter referred to as “Confidential Information”) are proprietary and confidential to the Reinsured. Confidential Information shall not include documents, information or data that the Reinsurer can show: 

 

	 	a.	Are publicly available or have become publicly available through no unauthorized act of the Reinsurer; 

  
 

 

 

 
  

	 	b.	Have been rightfully received from a third person without obligation of confidentiality; or 

  

	 	c.	Were known by the Reinsurer prior to the placement of this Contract without an obligation of confidentiality. 

  

	2.	Absent the written consent of the Reinsured, the Reinsurer shall not disclose any Confidential Information to any third parties, including any affiliated companies (except to the extent necessary to enable affiliated
companies or third parties engaged by the Reinsurer to perform services related to this Contract on behalf of the Reinsurer), except: 

  

	 	a.	When required by regulators performing an audit of the Reinsurer’s records and/or financial condition; 

  

	 	b.	When required by external auditors performing an audit of the Reinsurer’s records in the normal course of business; 

  

	 	c.	When required by attorneys in connection with an actual or potential dispute hereunder; or 

  

	 	d.	When required for the Reinsurer’s internal operations directly related to carrying out the terms and conditions of this Contract. 

Further, the Reinsurer agrees not to use any Confidential Information for any purpose not related to the performance of its obligations or
enforcement of its rights under this Contract. 
  

	3.	Notwithstanding the above, in the event that the Reinsurer is required by court order, other legal process or any regulatory authority to release or disclose any or all of the Confidential Information, the Reinsurer
agrees to provide the Reinsured with written notice of same at least 10 days prior to such release or disclosure and to use its best efforts to assist the Reinsured in maintaining the confidentiality provided in this Article. 

 

	4.	The provisions of this Article shall extend to the officers, directors, shareholders and employees of the Reinsurer and its affiliates, and shall be binding upon their successors and assigns. 

  
 

 

 

 
  

 ARTICLE 14 

CURRENCY 
  

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

  

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

 ARTICLE 15 

ENTIRE AGREEMENT 
 This Contract shall constitute
the entire agreement between the parties hereto with respect to the business being reinsured hereunder, and there are no understandings between the parties hereto other than as expressed in this Contract. Any change or modification to this Contract
shall be null and void unless made by amendment to this Contract and signed by the parties hereto. 
 ARTICLE 16 

ERRORS AND OMISSIONS 
 Inadvertent delays, errors
or omissions made in connection with this Contract or any transaction hereunder shall not relieve either party from any liability which would have attached had such delay, error or omission not occurred, provided always that such error or omission
is rectified as soon as possible after discovery. 
 ARTICLE 17 

FEDERAL EXCISE TAX 
  

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

  
 

 

 

 
  

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

 ARTICLE 18 

GOVERNING LAW 
 This Contract shall be governed by
and construed in accordance with the laws of the State of Florida. 
 ARTICLE 19 

INSOLVENCY 
  

	1.	If more than one reinsured company is included within the definition of “Reinsured” hereunder, this Article shall apply individually to each such company. 

 

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

  

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

  
 

 

 

 
  

	4.	It is further understood and agreed that, in the event of the insolvency of one or more of the Reinsured’s companies, the reinsurance under this Contract shall be payable directly by the Reinsurer to the Reinsured
or to its liquidator, receiver or statutory successor, except as provided by Section 4118(a) of the New York Insurance Law or except (1) where this Contract specifically provides another payee of such reinsurance in the event of the
insolvency of the Reinsured or (2) where the Reinsurer with the consent of the direct insured or insureds has assumed such policy obligations of the Reinsured as direct obligations of the Reinsurer to the payees under such policies and in
substitution for the obligations of the Reinsured to such payees. However, the exceptions provided in (1) and (2) above shall apply only to the extent that applicable statutes or regulations specifically permit such exceptions.

 ARTICLE 20 
 LATE
PAYMENTS 
  

	1.	The provisions of this Article shall not be implemented unless specifically invoked, in writing, by one of the parties to this Contract. 

 

	2.	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: 

  

	 	a.	The number of full days which have expired since the due date or the last monthly calculation, whichever the lesser; times 

  

	 	b.	1/365ths of the sum of 1.0% and the U.S. prime rate as quoted in The Wall Street Journal on the first business day of the month for which the calculation is made; times 

 

	 	c.	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. 
 Notwithstanding the provisions of
subparagraph (b) above and the immediately preceding sentence, the interest rate for a Runoff Reinsurer will increase by 1.0% for every month that payment of the claim is past due, subject to a maximum annual interest rate of 12.0%. 

  
 

 

 

 
  

	3.	If the interest rate provided under this Article exceeds the maximum interest rate allowed by any applicable law or is held unenforceable by an arbitrator or a court of competent jurisdiction, such interest rate shall
be modified to the highest rate permitted by the applicable law, and all remaining provisions of this Article and Contract shall remain in full force and effect without being impaired or invalidated in any way. 

 

	4.	The establishment of the due date shall, for purposes of this Article, be determined as follows: 

  

	 	a.	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 30 days after the date of transmittal by the Intermediary of the initial billing for each such payment. 

  

	 	b.	Any claim or loss payment due the Reinsured hereunder shall be deemed due 30 days after the proof of loss or demand for payment is transmitted to the Reinsurer. If such loss or claim payment is not received within the
30 days, interest will accrue on the payment amount overdue in accordance with paragraphs (2) and (3) above, from the date the proof of loss or demand for payment was transmitted to the Reinsurer. 

 

	 	c.	As respects any payment, adjustment or return due either party not otherwise provided for in subparagraphs (a) and (b) of this paragraph, 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 30 days following transmittal 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. 

 

	5.	Nothing herein shall be construed as limiting or prohibiting a Reinsurer from contesting the validity of any claim, or from participating in the defense of any claim or suit, or prohibiting 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, then 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. 

  
 

 

 

 
  

	6.	Interest penalties arising out of the application of this Article that are $1,000 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
any 12-month period. 

 ARTICLE 21 

NON WAIVER 
 The failure of the Reinsured or the
Reinsurer to insist on compliance with this Contract or to exercise any right or remedy hereunder shall not constitute a waiver of any rights contained herein nor prevent either party from thereafter demanding full and complete compliance nor
prevent either party from exercising such remedy in the future. 
 ARTICLE 22 

NOTICES AND AGREEMENT EXECUTION 
  

	1.	Whenever a notice, statement, report or any other written communication is required by this Contract, unless otherwise specified, such notice, statement, report or other written communication may be transmitted by
certified or registered mail, nationally or internationally recognized express delivery service, personal delivery, electronic mail, or facsimile. With the exception of notices of termination, first class mail is also acceptable 

 

	2.	The use of any of the following shall constitute a valid execution of this Contract or any amendments thereto: 

  

	 	a.	Paper documents with an original; 

  

	 	b.	Facsimile or electronic copies of paper documents showing an original ink signature; and/or 

  

	 	c.	Electronic records with an electronic signature made via an electronic agent. For the purposes of this Contract, the terms “electronic record”, “electronic signature” and “electronic agent”
shall have the meanings set forth in the Electronic Signatures in Global and National Commerce Act of 2000 or any amendments thereto. 

  

	3.	This Contract may be executed in one or more counterparts, each of which, when duly executed, shall be deemed an original. 

  
 

 

 

 
  

 ARTICLE 23 

OFFSET 
  

	1.	The Reinsured and the Reinsurer shall have the right to offset any balance or amounts due from one party to the other under the terms of this Contract. The party asserting the right of offset may exercise such right any
time whether the balances due are on account of premiums or losses or otherwise. 

  

	2.	Notwithstanding the provisions of paragraph (1) above, a Runoff Reinsurer shall not offset balances as outlined above without the prior consent of the Reinsured. 

ARTICLE 24 
 SERVICE OF SUIT

 (Applicable if the Reinsurer is not domiciled in the United States of America, and/or is not authorized in any State, Territory or District of the
United States where authorization is required by insurance regulatory authorities.) 
  

	1.	This Article will not be read to conflict with or override the obligations of the parties to arbitrate their disputes as provided for in the Arbitration Article. This Article is intended as an aid to compelling
arbitration or enforcing such arbitration or arbitral award, not as an alternative to the Arbitration Article for resolving disputes arising out of this Contract. 

 

	2.	In the event the Reinsurer fails to pay any amount claimed to be due hereunder or fails to otherwise perform its obligations hereunder, the Reinsurer, at the request of the Reinsured, will submit to the jurisdiction of
a court of competent jurisdiction within the United States. Nothing in this Article constitutes or should be understood to constitute a waiver of the Reinsurer’s rights to commence an action in any court of competent jurisdiction in the United
States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. The Reinsurer, once the appropriate court is accepted
by the Reinsurer or is determined by removal, transfer, or otherwise, as provided for above, will comply with all requirements necessary to give said court jurisdiction and, in any suit instituted against any of the Reinsurers upon this Contract,
will abide by the final decision of such court or of any Appellate Court in the event of an appeal. 

  

	3.	 Further, pursuant to any statute of any state, territory or district of the United States that makes provision therefore, the Reinsurer hereby
designates the party named in its Interests and Liabilities Agreement, or if no party is named therein, the Superintendent, 

  
 

 

 

 
  

	 	
Commissioner or Director of Insurance, or other officer specified for that purpose in the statute, or his successor or successors in office, as its true and lawful attorney upon whom may be
served any lawful process in any action, suit or proceeding instituted by or on behalf of the Reinsured or any beneficiary hereunder arising out of this Contract. 

ARTICLE 25 
 SEVERABILITY

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

ARTICLE 26 
 TAXES 

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

ARTICLE 27 
 INTERMEDIARY

 Advocate Reinsurance Partners, LLC, is hereby recognized as the Intermediary negotiating this Contract for all business hereunder. All
communications (including but not limited to notices, statements, premium, return premium, commissions, taxes, losses, Loss Adjustment Expense, salvages and loss settlements) relating to this Contract will be transmitted to the Reinsured or the
Reinsurer through Advocate Reinsurance Partners, LLC, 2501 North Harwood Street, Suite 1250, Dallas, Texas 75201. Payments by the Reinsured to the Intermediary will be deemed payment to the Reinsurers. Payments by the Reinsurers to the Intermediary
will be deemed payment to the Reinsured only to the extent that such payments are actually received by the Reinsured. 

  
 

 

 

 
 INTERESTS AND LIABILITIES AGREEMENT 

attaching to, and forming part of, the 

EXCESS OF LOSS RETROCESSION CONTRACT 

(hereinafter called the “Contract”) 

EFFECTIVE: JUNE 1, 2013 

issued to 
 CLADDAUGH CASUALTY
INSURANCE COMPANY, LTD. 
 BERMUDA 

(hereinafter called the “Reinsured”) 

by 
 OXBRIDGE REINSURANCE LIMITED

 (hereinafter called, with other participants, the “Reinsurers”) 

Under the terms of this Contract the above Reinsurer agrees to assume severally and not jointly with other participants 

Participation 
 100% 

of the liability in the layer(s) described in the attached Contract including the same corresponding proportional participation of the Reinsurers’
additional obligations set forth within the layer(s) upon which the Reinsurer participates described above. 
 Brokerage 

10.00% of Ceded Reinsurance Premium 

Signed in CAYMAN ISLANDS, on this 28 day of June 2013 
  

			
	OXBRIDGE REINSURANCE LIMITED
		
	BY:	 	

 SANJAY MADHU
	TITLE:	 	CFO Director

 Signed in Tampa FI ,on this 19th day of June, 2013 

 

			
	 CLADDAUGH CASUALTY INSURANCE COMPANY, LTD.

BERMUDA

		
	BY:	 	Richard R Allen
	TITLE:	 	CFO DirectorExecutive Employment Agreement

 Exhibit 10.3 

EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS AGREEMENT,
dated July 18, 2013, is by and between Oxbridge Re Holdings Limited (the “Company”), a Cayman corporation having its principal place of business at Landmark Sq, 1st Floor, 64 Earth Close, Grand Cayman, KY1-9006, and Sanjay Madhu (the
“Executive”). 
 BACKGROUND STATEMENT 

The Company, through its Affiliates (as defined in this Agreement), is principally engaged in the business of providing homeowners
insurance. An integral part of its insurance business is the investment of surplus and reserve funds. The Company contemplates that it may engage in other insurance lines of business and other business activities as well. (All such business and
investment activities, present and future, whether engaged in by the Company or an Affiliate are referred to in this Agreement as the “Business”). The Company has developed and expects to develop trade secrets, methods of
doing business, business plans, computer software and other items, all of which are worthy of protection. The Company considers it to be in its best interests to have the benefit of the Executive’s services as provided in this Agreement and the
Executive is willing to render such services to the Company in accordance with the provisions of this Agreement. 
 NOW THEREFORE, in
consideration of and reliance upon the foregoing background statement and the representations and warranties contained in this Agreement, the Company and the Executive agree to the following terms and conditions: 

TERMS AND CONDITIONS 
 1.
Employment and Title. Commencing July 18, 2013, the Company agrees to employ the Executive, and the Executive agrees to serve, as the Company’s president and chief executive officer, upon the terms and conditions set forth in this
Agreement. 
 2. Duties, Responsibilities and Authority. During the term of his employment under this Agreement, the Executive will
have the duties, responsibilities and authorities assigned to him by the Company’s board of directors, which duties, responsibilities and authorities will not be inconsistent with the Executive’s role as the Company’s president and
chief executive officer. The Executive will report solely to the Company’s board of directors. The Executive agrees to devote his best efforts and substantially all of his full business time, energies and abilities, diligently and in good
faith, to perform his duties, fulfill his responsibilities, and exercise his authority hereunder for the exclusive benefit of the Company. This provision will not be construed as preventing the Executive from participating in charitable and
community affairs, managing his investment, investing in or engaging in other ventures, or maintaining a directorship related to First Home Bank, provided such activities do not interfere with the 

 
performance of his duties under this Agreement and are not inconsistent with his role as the Company’s president and chief executive officer. The Executive agrees to serve on the
Company’s board of directors, if elected. In promoting the interests of the Company and without additional compensation, the Executive will serve any of the Company’s Affiliates, including subsidiary corporations, partnerships,
limited liability corporations and joint ventures, in such capacities as the Company’s board of directors may from time to time direct. The Executive will read and abide by any policy, code or practice the Company has or may hereafter adopt
that is applicable to executives or executive officers in general, including policies and rules contained in the Company’s employee handbook and code of conduct. 

3. Board Elections. During the Executive’s term of employment under this Agreement, the Company will use its best efforts to cause
the Executive to be elected to the Board of Directors of Company (or its successor in interest), and to nominate the Executive as a member of the management slate at each annual meeting of shareholders at which the Executive’s director class
comes up for election. 
 4. Location. The Executive’s principal place of employment will be: Landmark Sq, 1st Floor, 64 Earth
Close, Grand Cayman, KY1-9006 or such other place to which the parties agree. 
 5. Term. The initial term of the Executive’s
employment hereunder will commence on July 18, 2013 and continue for a period of three years, unless earlier terminated pursuant to the terms of this Agreement. The Executive’s employment hereunder will continue and automatically renew for
additional one-year terms unless either party delivers written notice of non-renewal at least 90 days before expiration of the initial term or any renewal term. The initial term and any renewal term are hereinafter collectively referred to as the
“Term.” 
 6. Compensation. 

6.1. Base Salary. As compensation for the services to be rendered by the Executive hereunder, the Company will pay the Executive,
during the Term, an annual base salary of $200,000, which base salary will accrue and be paid in accordance with the Company’s standard payroll practices. 

6.2. Bonus Compensation. The Executive will be entitled to any additional compensation provided for by resolution of the Company’s
board of directors or applicable committee of the board of directors. 
 6.3. Benefits. During the Term, the Executive will be
entitled to (i) medical, dental, life, disability and retirement benefits, if any, upon substantially the same terms and conditions generally applicable to all of the Company’s executives; and (ii) three weeks paid vacation plus other
paid time generally available to the other executive officers of the Company. 

  
 2 

 6.4. Reimbursement of Expenses. The Company will reimburse the Executive for all
reasonable travel and other business expenses incurred by the Executive in the performance of the Executive’s duties hereunder, subject to, and in accordance with, any expense reimbursement policies and expense documentation requirements of the
Company that may be in effect from time to time. 
 7. Working Facilities. The Company will provide the Executive with an office at
the Executive’s principal work location or at such other location as agreed to by the Executive and the Company, and other working facilities and secretarial and other assistance suitable to his position and reasonably required for the
performance of his duties hereunder. 
 8. Incapacity. 

8.1 Right to Terminate. Notwithstanding anything else to the contrary contained in this Agreement, except as provided by this
Section 8 the Company will have no right to terminate the Executive’s employment while the Executive suffers Incapacity (as defined below). If the Executive suffers Incapacity for a period exceeding six consecutive
months then the Company will have the right to terminate the Executive’s employment hereunder 30 days after delivery of written notice of termination. A termination of employment under this Section 8 will be deemed a termination
without “Good Cause” as described in Section 9.4 hereof. 
 8.2 Right to Replace. If the
Executive suffers Incapacity for 30 or more consecutive days, the Company will have the right to designate a person to temporarily perform the Executive’s duties. 

8.3 Rights Prior to Termination. During a period of Incapacity the Executive will be entitled to his full base salary under
Section 6.1 hereof and full benefits under Section 6.3 hereof until employment is terminated as described in Section 8.1. The Executive will be entitled to reasonable accommodations from the Company so that the
Executive is not prevented from performing his duties by illness or injury. 
 8.4 Incapacity Defined. For purposes of this
Section 8, the term “Incapacity” means the Executive’s inability to perform his duties hereunder substantially on a full-time basis because of physical or mental illness or physical injury as determined by the
Company’s board of directors, in its reasonable discretion, based upon competent medical evidence. Upon the Company’s written request, the Executive will submit to reasonable medical and other examinations to provide the evidence required
hereunder. 
 9. Termination of Employment. 

9.1 Termination by the Company. The Company may terminate the Executive’s employment under this Agreement without Good
Cause anytime not fewer than 30 days nor more than 45 days after delivering written notice of termination to the Executive. The Company may terminate the Executive’s employment hereunder for Good Cause anytime by delivery of written
notice of termination. Termination will be effective upon the date set forth in the notice of termination. Good Cause will be limited to any of the following circumstances: 

  
 3 

 (i) The Executive commits any fraud, dishonesty, misappropriation or similar act against the
Company or others; 
 (ii) The Executive materially defaults in the performance of his obligations, services or duties hereunder; 

(iii) The Executive commits any public or private act that the Company’s board of directors finds, in good faith, to be materially
inimical to the best interests of the Company or would tend to discredit, dishonor, embarrass, reflect adversely upon or in any manner injure the reputation of the Company, an Affiliate or the products or services of the Company or an
Affiliate, or subject the Company or an Affiliate to potential material liability; 
 (iv) The Executive is grossly negligent
or commits willful misconduct in the performance of his duties hereunder; or 
 (v) The Executive has been adjudicated guilty by, or enters
a plea of guilty or no contest before, a court of competent jurisdiction of illegal activities or found by a court of competent jurisdiction to have engaged in other wrongful conduct and such illegal activities or wrongful conduct, individually or
in the aggregate, has (or could be reasonably expected to have) a material adverse effect on the Company, its prospects, earnings or financial condition. 

9.2 Effect of Termination for Good Cause. If the Executive’s employment is terminated by the Company for Good Cause—

 (i) the Executive will be entitled to accrued base salary under Section 6.1 and accrued vacation pay and other paid time
off, each through the date of termination; and 
 (ii) the Executive will be entitled to reimbursement for expenses accrued through the
date of termination in accordance with the provisions of Section 6.4 hereof. 
 9.3 Effect of Termination without Good
Cause. If the Company terminates the Executive’s employment without Good Cause— 

  
 4 

 (i) the Executive will be entitled to accrued base salary under Section 6.1 and
accrued vacation pay and other time off, each through the date of termination; 
 (ii) the Executive will be entitled to reimbursement for
expenses accrued through the date of termination in accordance with the provisions of Section 6.4 hereof; 
 (iii) the
Executive will be entitled to receive all amounts of base salary that would have been payable under Section 6.1 (provided that the Executive will receive not less than 12 months of base salary) through the Term (excluding future
automatic renewals) if employment had not been terminated, which amounts will be paid, subject to Section 15(b), following the Executive’s Separation from Service as and when such base salary would have been paid; 

(iv) if the termination is within three years following a Change of Control (as defined herein), then the Executive will be entitled
to receive, in lieu of the amount described in clause (iii), an amount equal to 2.9 times the total amount of the annual base salary payable under the terms of Section 6.1 of this Agreement, payable as follows : 

(x) if the Executive’s Separation from Service (as defined in this Agreement) occurs within two years following a Change of
Control that also satisfies the requirements to be a change of control within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”), then the entire amount shall be paid in aone-time,
lump sum severance payment upon Separation from Service (except as provided in Section 15(b) ) ; or 
 (y) in any other circumstance,
the entire amount shall be payable through the Term (excluding future automatic renewals) as if employment had not been terminated, which amounts will be paid, subject to Section 15(b), following Executive’s Separation from Service
according to the regular payroll practices of the Company; and 
 (vii) The provisions of Section 13 will no longer apply to
the Executive on and after the date of such termination. 
 9.4 Deemed Termination without Good Cause. The Executive’s death
will be deemed a termination without Good Cause as of the date of death. Termination by reason of the Executive’s Incapacity as set forth in Section 8.1 will be deemed a termination without Good Cause.
The Executive’s termination of employment upon expiration of the Term after the Company delivers written notice of non-renewal as described in Section 5 will be deemed a termination without Good Cause. In addition,
after the occurrence of any of the following events, the Executive, at his sole option, may declare by 30 days written notice to the Company that his employment hereunder has been terminated by the Company, and such termination will for all purposes
of this Agreement be deemed a termination by the Company without Good Cause: 
 (i) The Company materially changes the
Executive’s reporting requirements; 

  
 5 

 (ii) The Executive is removed from or fails to win election to the Company’s board of
directors; 
 (iii) The Company fails to afford the Executive the power and authority generally commensurate with the position of a
president and chief executive officer; or 
 (iv) The Company breaches any material provision of this Agreement. 

9.5 Termination by Executive. The Executive may terminate his employment hereunder by delivery of not less than 30 days written notice
to the Company. 
 9.6 Effect of Termination by Executive. If the Executive terminates his employment pursuant to
Section 9.5 hereof — 
 (i) the Executive will be entitled to accrued base salary under Section 6.1 and
accrued vacation pay and other paid time off, each through the date of termination; and 
 (ii) the Executive will be entitled to
reimbursement for expenses accrued through the date of termination in accordance with the provisions of Section 6.4 hereof. 

9.7 Change of Control. For purposes of Section 9.3 of this Agreement, a “Change of Control” will be deemed
to have occurred in the event of— 
 (i) The acquisition by any person or entity, or group thereof acting in concert, of
“beneficial” ownership (as such term is defined in Securities and Exchange Commission (“SEC”) Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), of securities of the
Company which, together with securities previously owned, confer upon such person, entity or group the voting power, on any matters brought to a vote of shareholders, of 30% or more of the then outstanding shares of capital stock of the Company;

 (ii) The sale, assignment or transfer of assets of the Company in a transaction or series of transactions, if the aggregate
consideration received or to be received by the Company in connection with such sale, assignment or transfer is greater than 50% of the book value, determined by the Company in accordance with generally accepted accounting principles, of the
Company’s assets determined on a consolidated basis immediately before such transaction or the first of such transactions; 

  
 6 

 (iii) The merger, consolidation, share exchange or reorganization of the Company as a result of
which the holders of all of the shares of capital stock of the Company as a group would receive less than 50% of the voting power of the capital stock or other interests of the surviving or resulting corporation or entity; 

(iv) The adoption of a plan of liquidation or the approval of the dissolution of the Company; 

(v) A determination by the Company’s board of directors, in view of then current circumstances or impending events, that a Change of
Control has occurred or is imminent, which determination will be made for the specific purpose of triggering the operative provisions of this Agreement; or 

(vi) The Company’s board of directors is not comprised of a majority of directors who were either directors as of the date of this
Agreement (the “Initial Directors”) or whose nomination or election was approved by at least a majority of the Initial Directors or by a majority of directors whose nomination or election was approved by the Initial
Directors. 
 9.8 Certain Additional Payments by the Company. 

(a) If it will be determined that any payment, distribution or benefit received or to be received by the Executive from the Company
(“Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”), then the Executive will be entitled to receive an additional payment (the “Excise
Tax Gross-Up Payment”) from the Company in an amount such that the net amount retained by the Executive, after the calculation and deduction of any Excise Tax on the Payments and any federal, state and local income taxes and
excise tax on the Excise Tax Gross-Up Payment provided for in this Section 9.8, will be equal to the Payments. In determining this amount, the amount of the Excise Tax Gross-Up Payment attributable to federal income
taxes will be reduced by the maximum reduction in federal income taxes that could be obtained by the deduction of the portion of the Excise Tax Gross-Up Payment attributable to state and local income taxes. Finally, the Excise Tax Gross-Up
Payment will be reduced by income or excise tax withholding payments made by the Company or any Affiliate to any federal, state or local taxing authority with respect to the Excise Tax Gross-Up Payment that was not deducted from
compensation payable to the Executive. 
 (b) All determinations required to be made under this Section 9.8, including whether
and when an Excise Tax Gross-Up Payment is required and the amount of such Excise Tax Gross-Up Payment and the assumptions to be utilized in arriving at such determination, except as specified in Section 9.8(a) above, will
be made by the independent tax or accounting selected by the Company (the “Accounting Firm”), which will provide detailed supporting calculations both to the Company and the Executive within 15 business days after the Executive
provides the Company with notice that a Payment has been or will be made or such earlier time as may be required by the Company. The determination of tax liability made by the Accounting Firm will be subject to review by the

  
 7 

 
Executive’s tax advisors and, if the Executive’s tax advisors do not agree with the determination reached by the Accounting Firm, then the Accounting Firm and the
Executive’s tax advisor will jointly designate a nationally recognized public accounting firm, which will make the determination. All fees and expenses of the accountants and tax advisors retained by either the Executive or the Company will be
borne by the Company. Any Excise Tax Gross-Up Payment, as determined pursuant to this Section 9.8, with respect to a Payment will be paid by the Company to the Executive at such time as the Executive is entitled to receive
the Payment. Any determination by a jointly designated public accounting firm will be binding upon the Company and the Executive. 

(c) As a result of the uncertainty in the application of Section 4999 of the Internal Revenue Code at the time of the initial
determination hereunder, it is possible that Excise Tax Gross-Up Payments will not have been made by the Company that should have been made consistent with the calculations required to be made hereunder (“Underpayment”). In
the event that the Executive thereafter is required to make a payment of any Excise Tax, any such Underpayment calculated in accordance with and in the same manner as the Excise Tax Gross-Up Payment in Section 9.8(a)
above will be promptly paid by the Company to or for the benefit of the Executive. In the event that the Excise Tax Gross-Up Payment exceeds the amount subsequently determined to be due, such excess will be treated as an overpayment made by
the Company to the Executive and the Executive must repay such amount to the Company on the fifth day after demand by the Company (together with interest at the rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code). 

10. Certain Board Actions. The Executive will not vote on any matter involving the Executive’s own compensation, matters involving
Incapacity under Section 8 hereof or any motion involving termination of the Executive’s employment under this Agreement. Notwithstanding the foregoing sentence the Executive may vote on compensation-related plans involving
officers, directors or employees as a group, including bonus, stock, and option plans, unless such vote would be prohibited by the rules of any national securities exchange or market on which the Company’s shares are then traded or such vote
would impair the Company’s ability to deduct compensation under Section 162(m) of the Internal Revenue Code. 
 11. Trade
Secrets. 
 11.1. Confidential Information. For the purposes of this Agreement, “Confidential Information” means
information or materials that, in the Company’s view, provide advantage to the Company (or an Affiliate) over others not having such information or materials and includes (i) customer information, supplier information, sales channel
and distributor information, material terms of any contracts, marketing philosophies, strategies, techniques and objectives (including service roll-out dates and volume estimates), legal and regulatory positions and strategies, advertising and
promotional copy, competitive advantages and disadvantages, non-published financial data, network configurations, product or service plans, designs, costs, prices and names, inventions, discoveries, improvements, technological developments,
know-how, software 

  
 8 

 
code, business opportunities (including planned or proposed financings, mergers, acquisitions, ventures and partnerships) and methodologies and processes (including the look and feel of computer
screens and reports) for customer assistance, order acceptance and tracking, repairs, and commissions; (ii) information designated in writing or conspicuously marked as “confidential” or “proprietary” or likewise designated
or marked with words of similar import; (iii) information for which the Company has an obligation of confidentiality so long as such obligation is known to the Executive; and (iv) information that by its nature or the circumstances of its
delivery or disclosure a reasonable person would conclude that it is confidential or proprietary. The Executive is specifically aware of the legal obligations of confidentiality afforded to customers of financial institutions, including obligations
to insurance policyholders. 
 11.2. Confidentiality. The Executive will hold Confidential Information in confidence and trust and
limit disclosure of Confidential Information strictly to persons who have a need to know such Confidential Information in connection with the Business. The Executive will not disclose, use, or permit the use or disclosure of
Confidential Information, except in satisfying his obligations under this Agreement. The Executive will use reasonable care to protect Confidential Information from inappropriate disclosure, whether inadvertent or intentional. The
Executive understands that the misappropriation of a trade secret is a criminal offense under state and federal laws. Notwithstanding the foregoing, the Executive may disclose Confidential Information if such disclosure is required by a court
order or an order of a similar judicial or administrative body; provided, however, that the Executive notifies the Company of such requirement immediately and in writing, and cooperates reasonably with the Company in obtaining a
protective or similar order with respect thereto. 
 11.3. Notification of Third Party Disclosure Requests. If the Executive receives
any written or oral third party request, order, instruction or solicitation for the disclosure of Confidential Information not in conformance with this Agreement or if the Executive becomes aware of any attempt by a third party to improperly
gain Confidential Information, the Executive will immediately notify the Company’s general counsel and the Company’s board of directors of such request, order, instruction or solicitation or of such attempt and fully disclose the
details surrounding such request, order, instruction or solicitation or such attempt. 
 11.4. Non-Removal of Records. All documents,
files, records, data, papers, materials, notes, books, correspondence, drawings and other written, graphic or electronic records of the Business and all computer software of the Company which the Executive will prepare or use, or come into
contact with, will be and remain the exclusive property of the Company, in its discretion, and will not be physically, electronically, telephonically or otherwise removed from the Company’s premises without the Company’s prior written
consent. 

  
 9 

 11.5. Return or Destruction of Confidential Information. Confidential Information gained,
received or developed by the Executive or in which the Executive participated in developing will remain the exclusive property of the Company, in its sole discretion. The Executive will promptly return to the Company or destroy or erase all records,
books, documents or any other materials whatsoever (including all copies thereof) containing such Confidential Information in his possession or control upon the earlier of (i) the receipt of a written request from the Company for return
or destruction of Confidential Information or (ii) the termination of the Executive’s employment hereunder. 
 11.6.
Trade Secrets of Others. In the course of his employment hereunder the Executive will not use any information or materials that belong to any former employer or any other person or entity and for which he has a duty of confidentiality; nor
will the Executive use or allow the use of any illegally obtained confidential or secret information or materials. 
 12. Intellectual
Property. All Confidential Information, computer software, video and sound recordings, scripts, creations, inventions, improvements, designs and discoveries conceived, created, invented, authored, developed, produced or discovered by the
Executive while employed by the Company, whether alone or with others, whether during or after regular work hours, whether before or during the term of employment under this Agreement, are and will be the Company’s property exclusively, in its
sole discretion. All such items were and will be produced as “work for hire.” The Executive hereby assigns to the Company all copyrights, trademarks and other rights of authorship or ownership he may have with respect to such items.
Moreover, at any time, without additional consideration, the Executive will execute and deliver any documents or instruments that the Company may request in order to effectively convey and transfer good title and right to, and put the Company in
possession of, such items. 
 13. Restrictions on Competition and Solicitation. 

13.1. Noncompetition. The Executive agrees that during the course of his employment with the Company and for a period of one year after
termination of that employment, the Executive will not, directly or indirectly, as an executive, agent, independent contractor, consultant, partner, joint venturer or otherwise, within any state in the United States within which the Company or an
Affiliate has conducted the Business within the 12 months preceding the date of the termination of the Executive’s employment with the Company, enter into, engage in, be employed by or consult with (or solicit to enter into, engage in,
be employed by or consult with) any business which competes with the Company or an Affiliate by providing products or services of the same nature or type as those provided by the Company or an Affiliate within the 12 month period
preceding the termination of the Executive’s employment with the Company, including (a) participating as an officer, director, stockholder, member, employee, agent, independent contractor, consultant, representative or partner of, or
having any direct or indirect financial interest (including the interest of a creditor) in, any such competitor or (b) assisting any other individual or business entity, of whatever type or description, in providing any such competing services.
The provisions of this section will not apply to the ownership by the Executive of less than 5% of any publicly traded corporation or other business entity solely as an investor and under circumstances in which the

  
 10 

 
Executive neither provides services nor assists anyone else to provide any services to or on behalf of any such entity. The Executive further agrees that upon a violation of this section of this
Agreement, the period during which the Executive’s covenants in this section apply will be extended by the number of days equal to the period of such violation. 

13.2. Non-Solicitation/Non-Acceptance. The Executive agrees, during the course of his employment with the Company and for a
period of one year after termination of that employment, the Executive will refrain from and will not, directly or indirectly, as employee, agent, independent contractor, consultant, partner, joint venturer or otherwise (a) solicit or counsel
any third person, partnership, joint venture, company, corporation, association, or other organization that is or was a current or prospective customer of the Company or an Affiliate within the 12 months preceding the termination of the
Executive’s employment with the Company and with which the Executive had a substantial relationship within such preceding 12 month period, regardless of such person’s or entity’s location, to terminate any existing or prospective
business relationship with the Company or an Affiliate or commence a similar business relationship with any other individual or business entity; (b) accept, with or without solicitation, any business from any third person, partnership,
joint venture, company, corporation, association or other organization that is or was a current or prospective customer of the Company or an Affiliate with which the Executive had a substantial relationship within the preceding 12 month
period, regardless of such person’s or entity’s location; or (c) solicit any of the employees, agents, independent contractors or consultants of the Company or an Affiliate, regardless of such person’s or entity’s
location, to terminate any business relationship with the Company or an Affiliate. The Executive further agrees that upon a violation of this section of this Agreement, the period during which the Executive’s covenants in this section
apply will be extended by the number of days equal to the period of such violation. 
 13.3. No Circumvention. The Executive will not
make any attempt, or use any artifice, scheme or device, including the use of any agent, representative, associate, advisor, relative or business entity, to circumvent the purposes of the restrictive covenants contained in Section 13. 

13.4. Acknowledgements. The Executive acknowledges that the foregoing restrictive covenants are reasonable and necessary in light of
the circumstances, including the Company’s interest in protecting the Confidential Information to which he has been exposed and the business relationships with the customers, partners, and others he has helped develop. The Executive
further acknowledges that the foregoing restrictive covenants are a material inducement for the Company to enter into this Agreement, and that the covenants are given as an integral part of this Agreement. 

13.5. Counterclaims. The existence of any claim or cause of action the Executive may have against the Company will not at any time
constitute a defense to the enforcement by the Company of the restrictions or rights provided by this Section 13. 

  
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 14. Equitable Remedies. The Executive and the Company agree that the services to be
rendered by the Executive pursuant to this Agreement, and the rights and interests granted and the obligations to be performed by the Executive to the Company pursuant to this Agreement, are of a special, unique, extraordinary and intellectual
character, which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated in damages in any action at law, and that a breach by the Executive of any of the terms of this Agreement will cause the Company great and
irreparable injury and damage. The Executive hereby expressly recognizes and agrees that the Company has the right to seek entry of a temporary restraining order, preliminary injunction and permanent injunction, and that such orders and injunctions
may be issued against the Executive, to prevent or address a breach of Sections 11 through 13 of this Agreement. The existence of any claim or cause of action the Executive may have against the Company will not at any time constitute a
defense to the request for such relief. 
 15. Code Section 409A. 

(a) For purposes hereof, the Executive will be presumed to have experienced a “Separation from Service” on the date that the Company
and the Executive reasonably anticipate that no further services will be performed by the Executive for the Company and its affiliates within the meaning of Code Section 409A (“409A Affiliates”) or that the level of bona fide
services the Executive will perform as an employee of the Company and its 409A Affiliates will permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed by the Executive (whether as an
employee or independent contractor) for the Company and its 409A Affiliates over the immediately preceding 36-month period (or such lesser period of services). Whether the Executive has experienced a Separation from Service shall be determined by
the Company in good faith and consistent with Code Section 409A. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of military leave, sick leave or other bona fide reason, the Executive will not be deemed to
have experienced a Separation from Service for the first six (6) months of the leave of absence, or if longer, for so long as the Executive’s right to reemployment is provided either by statute or by contract, including this Agreement;
provided that if the leave of absence is due to a medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than six (6) months, where such impairment causes
the Executive to be unable to perform the duties of his position of employment or any substantially similar position of employment, the leave may be extended by the Company for up to twenty-nine (29) months without causing a Separation from
Service. If the Executive continues to provide services to the Company or its 409A Affiliates following his date of termination of employment, the Executive’s Separation from Service date may be delayed to the date the Executive ceases to
provide services to the extent required by Code Section 409A. 
 (b) Notwithstanding any other Section of this Agreement, if the
Executive is a “specified employee” as defined in Code Section 409A and the regulations promulgated thereunder at the time of the Executive’s Separation from Service, then any payments due

  
 12 

 
hereunder that would have been paid to the Executive within six (6) months following such Separation from Service shall be deferred and paid on the first day of the seventh month following
the month in which the Executive’s Separation from Service occurs, to the extent required to avoid an additional tax on such payments under Code Section 409A. All deferred payments shall be paid in a lump sum without interest thereon. For
purposes of applying Code Section 409A, each payment due hereunder shall be treated as a separate payment. 
 16. Compliance with
Other Agreements. The Executive represents and warrants to the Company that he is free to enter this Agreement and that the execution of this Agreement and the performance of the obligations under this Agreement will not, as of the date of this
Agreement or with the passage of time, conflict with, cause a breach of or constitute a default under any agreement to which the Executive is a party or by which he may be bound. 

17. Severability. Every provision of this Agreement is intended to be severable. If any provision or portion of a provision is illegal,
invalid or unenforceable, including as to geographic or temporal scope, then the remainder of this Agreement will not be affected. Moreover, any provision or portion of a provision of this Agreement which is determined to be unreasonable, arbitrary
or against public policy, including as to geographic or temporal scope, will be modified by a court or arbitrator as appropriate so that it is not unreasonable, arbitrary or against public policy. 

18. Rights and Remedies Preserved. Nothing in this Agreement will limit any right or remedy the Company or the Executive may have under
this Agreement or pursuant to law for any breach of this Agreement by the other party. The rights granted to the parties herein are cumulative, and the election of one will not constitute a waiver of such party’s right to assert all other legal
remedies available under the circumstances. 
 19. Waiver. No failure or delay on the of part either party to this Agreement in the
exercise of any right, power or remedy the party may have will operate as a waiver, nor will any single or partial exercise of any right, power or remedy by either party preclude any other or further exercise of that right, power or remedy or the
exercise of any other right, power or remedy. No express waiver or assent by any party to any breach of or default in any term or condition of this Agreement will constitute a waiver of or assent to any succeeding breach of or default in the same or
any other term or conditions of this Agreement. 
 20. Notices. Any notices or deliveries permitted or required by this Agreement
will be deemed given (i) when delivered in person or by messenger, if a receipt is obtained for delivery, (ii) when delivered by Federal Express, United Parcel Service, Airborne Express, U.S. Express Mail or similar nationally recognized
overnight delivery service, if a confirmation of delivery is obtained, or (iii) five days after mailing, if mailed via certified or registered U.S. mail, return receipt requested, provided the notice is delivered or mailed to the party’s
address as set forth below: 

  
 13 

 If to the Company: 

Oxbridge Re Holdings Limited 

Landmark Sq, 1st Floor, 64 Earth Close, Grand Cayman, KY1-9006ATT: 

General Counsel 
 If to the Executive: 

The Executive’s most recent address on file with the Company. 

The parties may change addresses to which notices are to be delivered by giving notice of the change of address in the manner set forth above; except,
however, that notwithstanding the foregoing provision, notice of a change of address will be deemed made upon actual receipt of the notice by the other party. Notices deemed given or delivered as set forth above on a Saturday, Sunday, or legal
holiday will instead be deemed given or delivered on the next succeeding day which is not a Saturday, Sunday or legal holiday. 
 21.
Successors and Assigns. The rights and obligations of the Company under this Agreement will inure to the benefit of and be binding upon the successors and assigns of the Company, including the survivor upon any merger, consolidation, share
exchange or combination of the Company. The Executive will not have the right to assign this Agreement or to assign, delegate or otherwise transfer any duty or obligation to be performed by him hereunder. 

22. Entire Agreement. With respect to its subject matter, this Agreement contains all the understandings and agreements of the parties
and supersedes all previous and all contemporaneous agreements, understandings, discussions and negotiations between the parties, whether written or oral. The parties agree that no previous drafts of this Agreement will be admissible as evidence
(whether in any arbitration or court of law) in any proceeding which involves the interpretation of any provisions of this Agreement. 
 23.
Amendments. Except as otherwise provided herein as to terms that are unreasonable, arbitrary or against public policy, this Agreement will not be modified or amended except by an instrument in writing signed by the parties. 

24. Governing Law. This Agreement will be governed by and construed in accordance with the internal laws of the State of Florida
without reference to conflicts of law principles. 
 25. Further Assurances. Each party hereto will cooperate and will take such
further action and will execute and deliver such further documents as may be reasonably requested by the other party in order to carry out the provisions and purposes of this Agreement. 

  
 14 

 26. Construction. This Agreement was negotiated at arm’s-length, with each party
having the assistance of independent legal counsel. No court, arbitrator or finder of fact should construe this Agreement more strongly against either party on the basis of which party was responsible for the Agreement’s preparation. Wherever
from the context it appears appropriate, each term stated in either the singular or the plural will include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender will include the other genders. The words
“Agreement,” “hereof,” “herein” and “hereunder” and words of similar import referring to this Agreement refer to this Agreement as a whole, including Exhibits, and not to any particular provision of this
Agreement. Whenever the word “include,” “includes” or “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.” The various headings contained in this Agreement
are inserted only as a matter of convenience and in no way define, limit or extend the scope or intent of any of the provisions of this Agreement. 

27. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together will be deemed one original.

 28. Affiliate. For the purposes of this Agreement, the capitalized term “Affiliate” means (i) any
association or entity directly or indirectly controlling the Company and (ii) any association or entity controlled by or under common control with the Company. 

29. Confidential Arbitration. The parties hereto agree that any dispute concerning or arising out of the provisions of this Agreement,
the Executive’s employment or the termination of the Executive’s employment will be resolved by confidential arbitration in accordance with the rules of the American Arbitration Association. Such confidential arbitration will be held in
Tampa, Florida and the decision of the arbitrator or arbitrators will be conclusive and binding on the parties and will be enforceable in any court of competent jurisdiction. In rendering a decision, the arbitrator will have the discretion to award
attorneys fees and costs. Notwithstanding the foregoing, if any dispute arises hereunder as to which a party desires to exercise any equitable rights or remedies under this Agreement, such party may, in its discretion, in lieu of submitting the
matter to arbitration, bring an action thereon in any court of competent jurisdiction in Florida, which court may grant any and all relief available in equity or at law for any and all claims made by such party based on or arising from the
provisions of this Agreement. In any such action, the prevailing party will be entitled to reasonable attorneys’ fees and costs as may be awarded by the court. 

30. Survival. The warranties and representations in this Agreement will survive the execution of this Agreement and continue without
limitation. The Executive has incurred the obligations set forth in Sections 11 through 13 solely in consideration of the Company’s execution of this Agreement and such obligations and this Section 30 will survive and
continue notwithstanding the termination, rescission or expiration of this Agreement or any provision of this Agreement. 
 31.
Exhibits. All exhibits, schedules and other attachments to this Agreement are hereby incorporated by this reference as integral parts of this Agreement. 

  
 15 

 32. Saturday, Sunday or Legal Holiday. When the last day of a period during which an act
may be performed under this Agreement falls on a Saturday, Sunday, or legal holiday that period will be deemed to end on the next succeeding day which is not a Saturday, Sunday or legal holiday. 

33. Electronic Signatures. Signed copies of this Agreement, addenda, attachments and exhibits delivered electronically via Internet
(e-mail) or telephone (fax) will legally bind the parties to the same extent as original documents. 
 IN WITNESS WHEREOF, the parties have
executed this Agreement effective as of the date first set forth above. 
  

			
		 	EXECUTIVE
		
		 	/s/ Sanjay Madhu August 20, 2013
		 	Sanjay Madhu
		
		 	Oxbridge Re Holdings Limited
		
	By:	 	/s/ Wrendon Timothy August 20, 2013
		 	Wrendon Timothy
		
	Its:	 	Financial Controller & Company
		 	Secretary
		 	

  
 16

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