Document:

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               SUBORDINATED NOTE OF WILMINGTON TRUST CORPORATION
                       TO CEDE & CO. DATED APRIL 4, 2003

                                 EXHIBIT 10.37
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                                SUBORDINATED NOTE

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC") TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS
IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE.

THESE SECURITIES ARE NOT SAVINGS OR DEPOSIT ACCOUNTS OR OTHER OBLIGATIONS OF ANY
BANK OR NONBANK SUBSIDIARY OF WILMINGTON TRUST CORPORATION AND ARE NOT INSURED
BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE BANK INSURANCE FUND OR ANY
OTHER GOVERNMENTAL AGENCY.

                          WILMINGTON TRUST CORPORATION
                   4.875% SUBORDINATED NOTE DUE APRIL 15, 2013

                                                                 CUSIP 971807AC6

NO. 1

      WILMINGTON TRUST CORPORATION, a Delaware corporation (herein called the
"Company," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to

                                   CEDE & CO.

or registered assigns, the principal sum of TWO HUNDRED FORTY-NINE MILLION EIGHT
HUNDRED FIFTY THOUSAND DOLLARS ($249,850,000.00) on April 15, 2013 (the
"Maturity Date"), and to pay interest on said principal sum semiannually on
October 15 and April 15 in each year (individually referred to as an "Interest
Payment Date" and collectively as the "Interest Payment Dates"), commencing
October 15, 2003 at the rate of 4.875% per annum, computed on the basis of a
360-day year consisting of twelve 30-day months, from April 4,
<PAGE>
2003, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, until the principal hereof is paid or made available
for payment. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Notes) is registered
at the close of business on the Regular Record Date for such interest, which
shall be October l or April l (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date, provided that interest payable on
the Maturity Date shall be payable to the Person to whom the principal hereof is
payable. In the event any Interest Payment Date is not a Business Day, interest
will be paid on the next succeeding Business Day. Any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Note (or one or more Predecessor Notes) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to the Holder of this
Note not less than 10 days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange upon which the Notes of the series shown above may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in such Indenture. Payment of the principal of and interest on
this Note due on the Maturity Date will be made in immediately available funds
upon presentation of this Note. For the purposes of this Note, "Business Day"
means any day, other than a Saturday or Sunday, on which banking institutions in
the City of Wilmington, Delaware are open for business. Payment of the principal
of and interest on this Note will be made at the office or agency of the Company
maintained for that purpose in Wilmington, Delaware, in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that, at the option of
the Company, payment of interest (other than interest payable on the Maturity
Date) may be paid by check mailed to the address of the Person entitled thereto
as such address shall appear in the Note Register at the close of business on
the Regular Record Date or by wire transfer to an account designated by such
Person in writing; and provided further that any interest payments made on this
Note while it is a Global Security shall be paid by wire transfer to an account
designated by the Depositary.

      This Note is one of a duly authorized issue of subordinated notes of the
series designated above of the Company (herein called the "Notes"), issued and
to be issued under an indenture dated as of May 4, 1998 (the "Indenture") ,
between the Company and Norwest Bank Minnesota, National Association (now Wells
Fargo Bank Minnesota, National Association), as trustee (the "Trustee" ) , to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
and of the terms upon which the Notes are, and are to be, authenticated and
delivered. This Note is one of the series designated above, limited (except as
provided in the Indenture) in aggregate principal amount to $249,850,000.00.

      The Notes of this series are not redeemable prior to maturity and will not
be subject to any sinking fund.

      The indebtedness of the Company evidenced by the Notes of this series,
including the principal hereof and interest hereon, is, to the extent and in the
manner set forth in the Indenture, subordinate and junior in right of payment to
its obligations to holders of Senior Indebtedness and creditors in respect of
General Obligations, and each Holder of Notes of this series, by the acceptance
thereof, agrees to and shall be bound by such provisions of the Indenture.

      If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture. There is no right of
acceleration of the payment of principal of the

                                       2
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Notes upon a default in the payment of interest on the Notes or in the
performance of any covenant of the Company in the Indenture or the Notes.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series under the
Indenture to be affected at any time by the Company with the consent of the
Holders of a majority in principal amount of the Notes at the time Outstanding
of each series to be affected. The Indenture also contains provisions permitting
the Holders of a majority in principal amount of the Notes of each series at the
time Outstanding, on behalf of the Holders of all Notes of such series, to waive
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Note.

      No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company which is
absolute and unconditional to pay the principal of and interest on this Note at
the times, places and rate, and in the coin or currency herein and in the
Indenture prescribed.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registerable in the Securities Register
of the Company, upon surrender of this Note for registration of transfer at the
office or agency of the Company in any place where the principal of and interest
on this Note are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Note
Registrar duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes of the same series of authorized
denominations and for the same aggregate principal amount will be issued to the
designated transferee or transferees.

      The Notes are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Notes of this
series are exchangeable for a like aggregate principal amount of Notes of this
series of a different authorized denomination, as requested by the Holder
surrendering the same.

      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

      This Note shall be construed in accordance with and governed by the laws
of the State of New York.

      All terms not defined herein shall have the respective meanings ascribed
to them in the Indenture referred to herein.

      Unless the certificate of authentication hereon has been manually executed
by or on behalf of the Trustee under such Indenture, this Note shall not be
entitled to any benefits under such Indenture or be valid or obligatory for any
purpose.

                                        3
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      IN WITNESS WHEREOF, the Company has caused this Note to be duly executed
under its corporate seal.

                                        WILMINGTON TRUST CORPORATION
Dated:  September 17, 2003

                                        By  /s/ David R. Gibson
                                            ------------------------------------
                                            Title:  Executive Vice President and
                                                    Chief Financial Officer

                                        ATTEST:

                                        By  /s/ Gerard A. Chamberlain
                                            ------------------------------------
                                            Title:  Assistant Secretary

                          CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated herein issued under the
within-mentioned Indenture.

Wells Fargo Bank Minnesota, National Association,
as Trustee

By  /s/ Michael G. Slade
    ------------------------------------
    Authorized Officer

                                       4
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                                  ABBREVIATIONS

      The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

            TEN COM -- as tenants in common

            TEN ENT -- as tenants by the entireties

            JT ENT -- as joint tenants and not as tenants in common

            UNIF GIFT MIN ACT                          Custodian
                                                         (Cust)
                                            under Uniform Gift to Minors Act

                                        ----------------------------------------
                                                         (State)

Additional abbreviations may be used though not in the above list.

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

--------------------------------------------------------------------------------
Name and address of assignee, including zip code, must be printed or typewritten

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the within Note, and all rights thereunder, hereby irrevocably constituting and
appointing

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Attorney to transfer said Note on the books of the within Company, with full
power of substitution in the premises.

Dated:
        ---------------------           ----------------------------------------

                                        ----------------------------------------

      NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within Note in every particular, without alteration
or enlargement or any change whatever and must be guaranteed by a commercial
bank or trust company having its principal office or a correspondent in The City
of New York or by a member of the New York Stock Exchange.<PAGE>

                                                                   EXHIBIT 10.77

                        REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JULY 1, 2004

                                    issued to

                         philadelphia insurance company
                            bala cynwyd, pennsylvania
                    philadelphia indemnity insurance company
                            bala cynwyd, pennsylvania
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                        philadelphia insurance companies
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE                                                                     PAGE
<S>                                                                         <C>
    I         Coverage                                                       1

   II         Term                                                           1

  III         Concurrency of Conditions                                      2

   IV         Premium                                                        2

    V         Loss Notices and Settlements                                   2

   VI         Late Payments                                                  2

  VII         Offset (BRMA 36D)                                              4

 VIII         Access to Records (BRMA 1D)                                    4

   IX         Errors And Omissions (BRMA 14F)                                4

    X         Currency (BRMA 12A)                                            4

   XI         Taxes (BRMA 50C)                                               4

  XII         Federal Excise Tax (BRMA 17A)                                  5

 XIII         Unauthorized Reinsurers                                        5

  XIV         Insolvency                                                     6

   XV         Arbitration                                                    7

  XVI         Service of Suit                                                8

 XVII         Agency Agreement                                               8

XVIII         Governing Law                                                  9

  XIX         Confidentiality                                                9

   XX         Severability                                                   9

  XXI         Intermediary (BRMA 23A)                                        9

              Schedule A
</TABLE>

<PAGE>

                        REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JULY 1, 2004

                                    issued to

                         Philadelphia insurance company
                            bala cynwyd, pennsylvania
                    philadelphia indemnity insurance company
                            bala cynwyd, pennsylvania
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                        philadelphia insurance companies
             (hereinafter referred to collectively as the "company")

                                       by

                   the subscribing reinsurer(s) executing the
                     interests and liabilities agreement(s)
                                 attached hereto
                  (hereinafter referred to as the "Reinsurer")

ARTICLE I - COVERAGE

By this Contract the Reinsurer agrees to indemnify the Company for 100% of any
reinstatement premium which the Company pays or becomes liable to pay as a
result of loss occurrences commencing during the term of this Contract under the
provisions of the Company's Underlying Excess Catastrophe Reinsurance Contract,
effective July 1, 2004 and Excess Catastrophe Reinsurance Contract, effective
June 1, 2004 (hereinafter referred to as the "Underlying Contracts" and
described in Schedule A attached to and forming part of this Contract), subject
to the terms and conditions set forth herein. However, the liability of the
Reinsurer shall not exceed $9,165,000 during the term of this Contract.

ARTICLE II - TERM

A.    This Contract shall become effective on July 1, 2004, with respect to
      reinstatement premium payable by the Company under the provisions of the
      Underlying Contracts as a result of losses arising out of loss occurrences
      commencing on or after that date, and shall remain in force until May 31,
      2005, both days inclusive.

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

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ARTICLE III - CONCURRENCY OF CONDITIONS

A.    It is agreed that this Contract will follow the terms, conditions,
      exclusions, definitions, warranties and settlements of the Company under
      the Underlying Contracts which are not inconsistent with the provisions of
      this Contract.

B.    The Company shall advise the Reinsurer of any material changes in the
      Underlying Contracts which may affect the liability of the Reinsurer under
      this Contract.

ARTICLE IV - PREMIUM

A.    As premium for the reinsurance provided hereunder, the Company shall pay
      the Reinsurer the following:

      1.    As respects the Underlying Excess Catastrophe Reinsurance Contract,
            effective July 1, 2004, $319,410; and

      2.    As respects the Excess Catastrophe Reinsurance Contract, effective
            June 1, 2004, $420,000 for the first excess layer, $331,250 for the
            second excess layer, $133,000 for the third excess layer and
            $103,000 for the Fourth layer.

B.    The Company shall pay the Reinsurer the sum of the amounts set forth in
      subparagraphs 1 and 2 of paragraph A above in four equal installments of
      $326,665 on July 1, September 1 and December 1 of 2004 and March 1, 2005.

ARTICLE V - LOSS NOTICES AND SETTLEMENTS

A.    Whenever reinstatement premium settlements made by the Company under the
      Underlying Contracts appear likely to result in a claim hereunder, the
      Company shall notify the Reinsurer. The Company will advise the Reinsurer
      of all subsequent developments relating to such claims that, in the
      opinion of the Company, may materially affect the position of the
      Reinsurer.

B.    All reinstatement premium settlements made by the Company under the
      Underlying Contracts, provided they are within the terms of the Underlying
      Contracts and within the terms of this Contract, shall be binding upon the
      Reinsurer, and the Reinsurer agrees to pay all amounts for which it may be
      liable upon receipt of reasonable evidence of the amount paid (or
      scheduled to be paid) by the Company.

ARTICLE VI - LATE PAYMENTS

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

B.    In the event any premium, loss or other payment due either party is not
      received by the intermediary named in Article XXI (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

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      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.    1/365ths of the six-month United States Treasury Bill Rate as
              quoted in The Wall Street Journal on the first business day of the
              month for which the calculation is made; 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 purposes of this 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 30
              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 Company hereunder shall be
              deemed due 10 business 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 10 days, interest will accrue
              on the payment or amount overdue in accordance with paragraph B
              above, from the date the proof of loss or demand for payment was
              transmitted to the Reinsurer.

        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 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 10
              business 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.

D.    Nothing herein shall be construed as limiting or prohibiting a Subscribing
      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

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<PAGE>

      party shall reimburse the debtor party for any such excess payment made
      plus interest on the excess amount calculated in accordance with this
      Article.

E.    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 any
      12-month period.

ARTICLE VII - OFFSET (BRMA 36D)

The Company and the Reinsurer, each at its option, may offset any balance or
balances, whether on account of premiums, claims and losses, loss expenses or
salvages due from one party to the other under this Contract; provided, however,
that in the event of the insolvency of a party hereto, offsets shall only be
allowed in accordance with applicable statutes and regulations.

ARTICLE VIII - ACCESS TO RECORDS (BRMA 1D)

The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.

ARTICLE IX - ERRORS AND OMISSIONS (BRMA 14F)

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 X - CURRENCY (BRMA 12A)

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

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

ARTICLE XI - TAXES (BRMA 50C)

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

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<PAGE>

ARTICLE XII - FEDERAL EXCISE TAX (BRMA 17A)

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

A.    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.

B.    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 Company or its agent should take steps to recover the tax
      from the United States Government.

ARTICLE XIII - UNAUTHORIZED REINSURERS

A.    If the Reinsurer is unauthorized in any state of the United States of
      America or the District of Columbia, the Reinsurer agrees to fund, on or
      before December 31, 2004, its share of the Company's ceded United States
      outstanding loss reserves (being the sum of all reinstatement premiums
      paid by the Company under the Underlying Contracts but not yet recovered
      from the Reinsurer, plus the Company's reserves for reinstatement premiums
      due under the Underlying Contracts, if any) by:

        1.    Clean, irrevocable and unconditional letters of credit issued and
              confirmed, if confirmation is required by the insurance regulatory
              authorities involved, by a bank or banks meeting the NAIC
              Securities Valuation Office credit standards for issuers of
              letters of credit and acceptable to said insurance regulatory
              authorities; and/or

        2.    Escrow accounts for the benefit of the Company; and/or

        3.    Cash advances;

      if, without such funding, a penalty would accrue to the Company on any
      financial statement it is required to file with the insurance regulatory
      authorities involved. The Reinsurer, at its sole option, may fund in other
      than cash if its method and form of funding are acceptable to the
      insurance regulatory authorities involved.

B.    If the Reinsurer is unauthorized in any province or jurisdiction of
      Canada, the Reinsurer agrees to fund, on or before December 31, 2004, 115%
      of its share of the Company's ceded Canadian outstanding loss reserves
      (being the sum of all reinstatement premiums paid by the Company under the
      Underlying Contracts but not yet recovered from the Reinsurer, plus the
      Company's reserves for reinstatement premiums due under the Underlying
      Contracts, if any) by:

        1.    A clean, irrevocable and unconditional letter of credit issued and
              confirmed, if confirmation is required by the insurance regulatory
              authorities involved, by a Canadian bank or banks meeting the NAIC
              Securities Valuation Office credit standards for issuers of
              letters of credit and acceptable to said insurance regulatory
              authorities, for no more than 15/115ths of the total funding
              required; and/or

        2.    Cash advances for the remaining balance of the funding required;

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<PAGE>

      if, without such funding, a penalty would accrue to the Company on any
      financial statement it is required to file with the insurance regulatory
      authorities involved.

C.    With regard to funding in whole or in part by letters of credit, it is
      agreed that each letter of credit will be in a form acceptable to
      insurance regulatory authorities involved, will be issued for a term of at
      least one year and will include an "evergreen clause," which automatically
      extends the term for at least one additional year at each expiration date
      unless written notice of non-renewal is given to the Company not less than
      30 days prior to said expiration date or longer where required by
      insurance regulatory authorities. The Company and the Reinsurer further
      agree, notwithstanding anything to the contrary in this Contract, that
      said letters of credit may be drawn upon by the Company or its successors
      in interest at any time, without diminution because of the insolvency of
      the Company or the Reinsurer, but only for one or more of the following
      purposes:

        1.    To reimburse itself for the Reinsurer's share of reinstatement
              premiums paid by the Company under the terms of the Underlying
              Contracts, unless paid in cash by the Reinsurer;

        2.    To reimburse itself for the Reinsurer's share of any other amounts
              claimed to be due hereunder, unless paid in cash by the Reinsurer;

        3.    To fund a cash account in an amount equal to the Reinsurer's share
              of any ceded outstanding loss reserves funded by means of a letter
              of credit which is under non-renewal notice, if said letter of
              credit has not been renewed or replaced by the Reinsurer 10 days
              prior to its expiration date;

        4.    To refund to the Reinsurer any sum in excess of the actual amount
              required to fund the Reinsurer's share of the Company's ceded
              outstanding loss reserves, if so requested by the Reinsurer.

      In the event the amount drawn by the Company on any letter of credit is in
      excess of the actual amount required for C(1) or C(3), or in the case of
      C(2), the actual amount determined to be due, the Company shall promptly
      return to the Reinsurer the excess amount so drawn.

ARTICLE XIV - INSOLVENCY

A.    In the event of the insolvency of one or more of the reinsured companies,
      this reinsurance shall be payable directly to the company or to its
      liquidator, receiver, conservator or statutory successor on the basis of
      the liability of the company without diminution because of the insolvency
      of the company or because the liquidator, receiver, conservator or
      statutory successor of the company has failed to pay all or a portion of
      any claim. It is agreed, however, that the liquidator, receiver,
      conservator or statutory successor of the company shall give written
      notice to the Reinsurer of the pendency of a claim against the company
      indicating the policy or bond reinsured which claim would involve a
      possible liability on the part of the Reinsurer within a reasonable time
      after such claim is filed in the conservation or liquidation proceeding or
      in the receivership, and that during the pendency of such claim, the
      Reinsurer may investigate such claim and interpose, at its own expense, in
      the proceeding where such claim is to be adjudicated, any defense or
      defenses that it may deem available to the company or its liquidator,
      receiver, conservator or statutory

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<PAGE>

      successor. The expense thus incurred by the Reinsurer shall be chargeable,
      subject to the approval of the Court, against the company as part of the
      expense of conservation or liquidation to the extent of a pro rata share
      of the benefit which may accrue to the company solely as a result of the
      defense undertaken by the Reinsurer.

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

C.    It is further understood and agreed that, in the event of the insolvency
      of one or more of the reinsured companies, the reinsurance under this
      Contract shall be payable directly by the Reinsurer to the company 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 company or (2) where the Reinsurer with the
      consent of the direct insured or insureds has assumed such policy
      obligations of the company as direct obligations of the Reinsurer to the
      payees under such policies and in substitution for the obligations of the
      company to such payees.

ARTICLE XV - ARBITRATION

A.    As a condition precedent to any right of action hereunder, any dispute or
      difference between the Company and any Reinsurer relating to the
      interpretation or performance of this Contract, including its formation or
      validity, or any transaction under this Contract, whether arising before
      or after termination, shall be submitted to arbitration.

B.    If more than one reinsurer is involved in the same dispute, all such
      reinsurers shall constitute and act as one party for purposes of this
      Article provided that communication shall be made by the Company to each
      of the reinsurers constituting the one party, and provided, however, that
      nothing therein 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 Reinsurer under the terms of this Contract
      from several to joint.

C.    Upon written request of any party, each party shall choose an arbitrator
      and the two chosen shall select a third arbitrator. If either party
      refuses or neglects to appoint an arbitrator within 30 days after receipt
      of the written request for arbitration, the requesting party may appoint a
      second arbitrator. If the two arbitrators fail to agree on the selection
      of a third arbitrator within 30 days of their appointment, the Company
      shall petition the American Arbitration Association to appoint the third
      arbitrator. If the American Arbitration Association fails to appoint the
      third arbitrator within 30 days after it has been requested to do so,
      either party may request a justice of a court of general jurisdiction of
      the state in which the arbitration is to be held to appoint the third
      arbitrator. All arbitrators shall be active or retired officers of
      insurance or reinsurance companies, or Lloyd's London Underwriters, and
      disinterested in the outcome of the arbitration. Each party shall submit
      its case to the arbitrators within 30 days of the appointment of the third
      arbitrator.

D.    The parties hereby waive all objections to the method of selection of the
      arbitrators, it being the intention of both sides that all the arbitrators
      be chosen from those submitted by the parties.

Page 7

<PAGE>

E.    The arbitrators shall have the power to determine all procedural rules for
      the holding of the arbitration including but not limited to inspection of
      documents, examination of witnesses and any other matter relating to the
      conduct of the arbitration. The arbitrators shall interpret this Contract
      as an honorable engagement and not as merely a legal obligation; they are
      relieved of all judicial formalities and may abstain from following the
      strict rules of law. The arbitrators may award interest and costs. Each
      party shall bear the expense of its own arbitrator and shall share equally
      with the other party the expenses of the third arbitrator and of the
      arbitration.

F.    The decision in writing of the majority of the arbitrators shall be final
      and binding upon both parties. Judgment may be entered upon the final
      decision of the arbitrators in any court having jurisdiction. The
      arbitration shall take place in Bala Cynwyd, Pennsylvania, unless
      otherwise mutually agreed between the Company and the Reinsurer.

G.    This Article shall remain in full force and effect in the event any other
      provision of this Contract shall be found invalid or non-binding.

H.    All time limitations stated in this Article may be amended by mutual
      consent of the parties, and will be amended automatically to the extent
      made necessary by any circumstances beyond the control of the parties.

ARTICLE XVI - 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. This
Article is not intended to conflict with or override the parties' obligations to
arbitrate their disputes in accordance with Article XV).

A.    It is agreed that in the event the Reinsurer fails to pay any amount
      claimed to be due hereunder, the Reinsurer, at the request of the Company,
      will submit to the jurisdiction of any 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.

B.    Further, pursuant to any statute of any state, territory or district of
      the United States which 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 Company or any beneficiary
      hereunder arising out of this Contract.

ARTICLE XVII - AGENCY AGREEMENT

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

Page 8

<PAGE>

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 XVIII - GOVERNING LAW

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

ARTICLE XIX - CONFIDENTIALITY

The Reinsurer, except with the express prior written consent of the Company,
shall not directly or indirectly, communicate, disclose or divulge to any third
party, any knowledge or information that may be acquired either directly or
indirectly as a result of the inspection of the Company's books, records and
papers. The restrictions as outlined in this Article shall not apply to
communication or disclosures that the Reinsurer is required to make to its
statutory auditors, retrocessionaires, legal counsel, arbitrators involved in
any arbitration procedures under this Contract or disclosures required upon
subpoena or other dully-issued order of a court or other governmental agency or
regulatory authority.

ARTICLE XX - SEVERABILITY

If any provision of this Contract should be invalid under applicable laws, the
latter shall control but only to the extent of the conflict without affecting
the remaining provisions of this Contract.

ARTICLE XXI - INTERMEDIARY (BRMA 23A)

Benfield, Inc. 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 thereto
shall be transmitted to the Company or the Reinsurer through Benfield, Inc.
Payments by the Company to the Intermediary shall be deemed to constitute
payment to the Reinsurer. Payments by the Reinsurer to the Intermediary shall be
deemed to constitute payment to the Company only to the extent that such
payments are actually received by the Company.

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

Bala Cynwyd, Pennsylvania,     this 13th day of October____in the year 2004.

      Christopher J. Maguire, Executive VP & Chief U/W Officer
      _____________________________________________________________________
      Philadelphia Insurance Companies (for and on behalf of the "Company")

Page 9

<PAGE>

                                   SCHEDULE A

                        REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JULY 1, 2004

                                    issued to

                         Philadelphia Insurance Company
                            Bala Cynwyd, Pennsylvania
                    Philadelphia Indemnity Insurance Company
                            Bala Cynwyd, Pennsylvania
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                        Philadelphia Insurance Companies

<TABLE>
<CAPTION>
                                             UNDERLYING           FIRST            SECOND            THIRD             FOURTH
                                               EXCESS            EXCESS            EXCESS            EXCESS            EXCESS
<S>                                         <C>               <C>               <C>               <C>               <C>
Company's Retention                         $  7,000,000      $ 10,000,000      $ 20,000,000      $ 40,000,000      $ 65,000,000

Reinsurer's Per Occurrence Limit            $  3,000,000      $ 10,000,000      $ 20,000,000      $ 25,000,000      $ 50,000,000

Reinsurer's Annual Limit                    $  6,000,000      $ 20,000,000      $ 40,000,000      $ 50,000,000      $100,000,000

Annual Minimum Premium                      $    702,000      $  1,680,000      $  2,000,000      $  1,350,000      $  1,600,000

Premium Rate                                       0.457%            1.000%            1.190%            0.810%            0.960%

Annual Deposit Premium                      $    877,500      $  2,100,000      $  2,500,000      $  1,687,500      $  2,000,000

Quarterly Deposit Premium                   $    219,375      $    525,000      $    625,000      $    421,875      $    500,000
</TABLE>

<PAGE>

                       INTERESTS AND LIABILITIES AGREEMENT

                                       of

                             Axis Specialty Limited
                                Pembroke, Bermuda
            (hereinafter referred to as the "Subscribing Reinsurer")

                               with respect to the

                        REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JULY 1, 2004

                         issued to and duly executed by

                         Philadelphia Insurance Company
                            Bala Cynwyd, Pennsylvania
                    Philadelphia Indemnity Insurance Company
                            Bala Cynwyd, Pennsylvania
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                        Philadelphia Insurance Companies

The Subscribing Reinsurer hereby accepts a 100% share in the interests and
liabilities of the "Reinsurer" as set forth in the attached Contract captioned
above.

This Agreement shall become effective on July 1, 2004, and shall continue in
force until May 31, 2005, both days inclusive.

The Subscribing Reinsurer's share in the attached Contract shall be separate and
apart from the shares of the other reinsurers, and shall not be joint with the
shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

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

Pembroke, Bermuda,   this_____28th____day of____October in the year____2004____.

                      ____Christian Dunleavy, Vice President____
                      Axis Specialty Limited

<PAGE>

                        REINSTATEMENT PREMIUM PROTECTION
                              REINSURANCE CONTRACT
                             EFFECTIVE: JULY 1, 2004

                                    issued to

                         Philadelphia Insurance Company
                            Bala Cynwyd, Pennsylvania
                    Philadelphia Indemnity Insurance Company
                            Bala Cynwyd, Pennsylvania
                                       and
                    any and all other companies which are now
                   or may hereafter become member companies of
                        Philadelphia Insurance Companies

<TABLE>
<CAPTION>
                         REINSURER            PARTICIPATION
<S>                                           <C>
Axis Specialty Limited                            100%

TOTAL                                             100%
</TABLE>

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