Document:

Insurance Management Agreement, dated as of May 10, 2001

 Exhibit 10.30 
  
  
 INSURANCE MANAGEMENT AGREEMENT 
 among 
 MAX RE MANAGERS LTD. 
 MAX RE CAPITAL LTD. 
 BAYERISCHE HYPO- UND VEREINSBANK AG 
 and 
 GRAND CENTRAL RE LIMITED 
 Dated as of May 10, 2001 
  
  

 TABLE OF CONTENTS 
  

					
	 ARTICLE I – DEFINITIONS AND INTERPRETATION
	  	1
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	Other Definition and Interpretation Provisions	  	4
		
	 ARTICLE II – APPOINTMENT AS MANAGER; ANNUAL BUSINESS PLAN; PERFORMANCE STANDARDS; BOARD SUPERVISION; DELEGATION

	  	5
			
	 Section 2.1
	  	Appointment as Manager	  	5
	 Section 2.2
	  	Annual Business Plan	  	8
	 Section 2.3
	  	Performance Standards	  	9
	 Section 2.4
	  	Board Supervision	  	9
	 Section 2.5
	  	Delegation of Authority	  	9
	 Section 2.6
	  	Intention of the Parties	  	10
		
	 ARTICLE III – REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	11
			
	 Section 3.1
	  	Representations of the Manager	  	11
	 Section 3.2
	  	Representations of the Company	  	11
	 Section 3.3
	  	Covenants of the Manager	  	12
	 Section 3.4
	  	Covenants of the Company	  	13
		
	 ARTICLE IV – BOOKS AND RECORDS
	  	13
			
	 Section 4.1
	  	Books and Records	  	13
	 Section 4.2
	  	Company Property	  	13
		
	 ARTICLE V – MANAGER COMPENSATION
	  	14
			
	 Section 5.1
	  	In General	  	14
	 Section 5.2
	  	Flat Fee	  	14
	 Section 5.3
	  	Reserve-based Fee	  	14
	 Section 5.4
	  	Fee for HVB Introduced Business	  	15
	 Section 5.5
	  	Fee Refund	  	15
	 Section 5.6
	  	Services Covered by Fees	  	15
	 Section 5.7
	  	Additional Direct Expenses Payable by the Company	  	16
		
	 ARTICLE VI – ACCESS TO EMPLOYEES; EXAMINATION; AUDIT
	  	16
			
	 Section 6.1
	  	Access to Employees and Books and Records	  	16

  

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	 Section 6.2
	  	Examination	  	16
	 Section 6.3
	  	Audit	  	16
		
	 ARTICLE VII – INDEMNIFICATION AND INSURANCE
	  	17
			
	 Section 7.1
	  	Indemnification by Max Re Parent and the Manager	  	17
	 Section 7.2
	  	Indemnification by the Company	  	17
	 Section 7.3
	  	Indemnification by HVB	  	18
	 Section 7.4
	  	Indemnification Procedures	  	18
	 Section 7.5
	  	Insurance Requirements	  	19
	 Section 7.6
	  	Certificates of Insurance	  	20
		
	 ARTICLE VIII – TERM AND TERMINATION
	  	20
			
	 Section 8.1
	  	Term	  	20
	 Section 8.2
	  	Termination On Notice	  	20
	 Section 8.3
	  	Termination by the Company For Cause	  	20
	 Section 8.4
	  	Termination by the Manager For Cause	  	21
	 Section 8.5
	  	Performance During Period of Notice	  	22
	 Section 8.6
	  	No Prejudice	  	22
		
	 ARTICLE IX – TRANSFER OF EXISTING COMPANY BUSINESS
	  	23
			
	 Section 9.1
	  	In General	  	23
	 Section 9.2
	  	Max Re Right to Bid	  	23
		
	 ARTICLE X – EFFECT OF TERMINATION
	  	23
			
	 Section 10.1
	  	Fees	  	23
	 Section 10.2
	  	Return of Books and Records	  	23
	 Section 10.3
	  	Survival	  	24
		
	 ARTICLE XI – CONFIDENTIALITY
	  	24
			
	 Section 11.1
	  	In General	  	24
	 Section 11.2
	  	Exceptions	  	25
		
	 ARTICLE XII – ARBITRATION
	  	25
			
	 Section 12.1
	  	Arbitration	  	25
	 Section 12.2
	  	Arbitrators	  	25
	 Section 12.3
	  	Qualification of Arbitrators	  	26
	 Section 12.4
	  	Procedure	  	26
	 Section 12.5
	  	Arbitration Award	  	26

  

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	 Section 12.6
	  	Consolidated Proceedings	  	26
		
	 ARTICLE XIII – GENERAL
	  	27
			
	 Section 13.1
	  	Relationship of the Parties	  	27
	 Section 13.2
	  	Notices	  	27
	 Section 13.3
	  	Governing Law	  	29
	 Section 13.4
	  	No Waiver	  	29
	 Section 13.5
	  	Offset	  	29
	 Section 13.6
	  	Counterparts	  	30
	 Section 13.7
	  	Severability	  	30
	 Section 13.8
	  	Assignment and Third Party Beneficiaries	  	30
	 Section 13.9
	  	Integration; Amendment; Reliance	  	30

  

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 INSURANCE MANAGEMENT AGREEMENT, dated as of May 10, 2001 between MAX RE MANAGERS LTD.,
a company incorporated under the laws of Bermuda (the “Manager”), MAX RE CAPITAL LTD., a company incorporated under the laws of Bermuda (“Max Re Parent”), BAYERISCHE HYPO- UND VEREINSBANK AG, a company incorporated
under the laws of Germany (“HVB”) and GRAND CENTRAL RE LIMITED, a company incorporated under the laws of Bermuda (the “Company”). 
 W I T N E S S E T H: 
 WHEREAS, the Company is authorized to transact various classes of insurance and reinsurance business in accordance with applicable law; 
 WHEREAS, the Manager carries on the business of administration in respect of insurance and reinsurance companies; and 
 WHEREAS, the Company desires to appoint the Manager to provide certain management services in respect of the Company’s Business.

 NOW, THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto agree as follows: 

ARTICLE I – DEFINITIONS AND INTERPRETATION 
 Section 1.1 Definitions. 
 As used herein for purposes of this
Agreement hereto, the following terms have the following respective meanings: 
 “Affiliate”: with respect to
any Person, a Person who, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. 
 “Agreement”: this Agreement and the Appendices and Schedules attached hereto. 
 “Agreement Quarter”: each 3 month period beginning January 1, April 1, July 1 and October 1. The first Agreement Quarter begins on the Effective Date.

 “Agreement Year”: the period beginning 12:01 A.M., New York time, January 1 of one year and ending on
12:01 A.M., New York time, January 1 of the immediately succeeding year. The first Agreement Year begins on the Effective Date. 
 “Annual Business Plan”: as defined in Section 2.3. 
  

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 “Asset/Surplus Ratio”: the ratio of (i) invested assets to
(ii) total capital and surplus of the Company. 
 “Books and Records”: all materials, books and records
and Data in whatever form or medium: 
 (i) furnished by the Company to the Manager in connection with the
performance by the Manager of its obligations under this Agreement; 
 (ii) generated by the Manager in
connection with the performance by the Manager of its obligations under this Agreement; or 
 (iii) that in any
way pertain to the performance of the obligations of the Manager under this Agreement 
 , including books of account, Insurance and Reinsurance
Contracts entered into by the Company and all correspondence related thereto, underwriting files, claim and reserving files, data on premium and claim payments and any and all materials, books and records and Data relating to Company’s
Business. “Books and Records” do not include Systems. 
 “Business Day”: a day on which banks
generally are open in the City of New York and Hamilton, Bermuda for the transaction of normal banking business (other than a Saturday or Sunday). 
 “Company”: as defined in the introductory paragraph of this Agreement. 
 “Company Business”: the insurance and reinsurance business of the Company. 
 “Confidential
Information”: as defined in Section 11.1. 
 “Data”: all data of the Company’s Business
which is processed by or stored on the System. 
 “Disclosing Party”: as defined in Section 11.1.

 “Effective Date”: January 1, 2001. 
 “Existing Company Business”: as defined in Section 9.2. 
 “Governmental Authority”: any nation or government, any state or other political subdivision thereof, and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of government. 
  

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 “Gross Premium Target Amounts”: for the one calendar year period ending
December 31, 2001, $100 million, for the two calendar year period ending December 31, 2002, $300 million, and for all calendar years ending thereafter, the gross premium targets for business of the Company as set forth in the Annual
Business Plan. 
 “HVB”: as defined in the introductory paragraph of this Agreement. 
 “HVB Introduced Business”: the insurance and reinsurance business introduced from time to time to the Company by HVB or its
Affiliates, including, without limitation, such as may consist of related party bank or corporate owned life insurance or other related-party business. 
 “Indemnified Party”: as defined in Section 7.3. 
 “Indemnifying Party”: as defined in Section 7.3. 
 “Insurance and Reinsurance
Contracts”: policies of insurance, contracts of reinsurance and slips, binders, endorsements, riders and other insurance or reinsurance documents. 
 “Liabilities, Actions and Damages”: all claims, liabilities, obligations, fines, penalties, demands, causes of action, suits, judgments, losses, injuries, damages, costs and expenses of
whatsoever kind and nature (including, without limitation, costs of investigation, defense, settlement and reasonable attorneys’ fees). 
 “Litigation”: any action, cause of action, claim, demand, suit, proceeding, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal, regulatory or otherwise,
in law or in equity, pending or threatened, by or before any court, tribunal, arbitrator or other Governmental Authority. 
 “Manager”: as defined in the introductory paragraph of this Agreement. 
 “Max Re”:
Max Re Ltd. 
 “Max Re Group”: as defined in Section 2.2. 
 “Max Re’s Own Originated Business”: as defined in Section 2.6. 
 “Max Re Parent”: as defined in the introductory paragraph of this Agreement. 
 “Max Re Parent Agreement”: the Stock Purchase and Subscription Agreement, dated as of April 17, 2001, between Max Re
Parent and HVB with respect to the purchase by HVB of shares of capital stock of Max Re Parent. 
  

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 “Person”: includes an individual, firm, corporation, partnership, limited
liability Company, trust, association, unincorporated association, Governmental Authority or other entity or body of persons. 
 “Receiving Party”: as defined in Section 11.1. 
 “Representatives”: as defined
in Section 11.1. 
 “Reserves”: as defined in Section 5.3. 
 “Shareholders”: the shareholders of the Company. 
 “Stock Purchase and Subscription Agreement”: the Stock Purchase and Subscription Agreement among HVB, Max Re Parent, Max Re
and the Manager, dated as of April 17, 2001 with respect to the organization of, and subscription for shares of, the Company. 
 “System”: any system created or utilized by the Manager in the performance of its obligations under this Agreement, which systems include computer programs, computer equipment, formats, risk data report formats, procedures,
documentation and internal reports. 
 “Term”: the period from the 12:01 A.M., New York time on the Effective
Date to 11:59 P.M. on the effective date of termination of this Agreement in accordance with Article VIII. 
 Section 1.2
Other Definition and Interpretation Provisions. 
 (a) The headings of the sections of this Agreement are
solely for convenience of reference and shall not affect the meaning, construction or effect of this Agreement. 
 (b) All terms defined in this Agreement shall have the defined meaning when used in any schedule, certificate or other documents attached hereto or made or delivered pursuant hereto unless otherwise defined therein. 
 (c) The term “including” means “including but not limited to.” 
 (d) Any reference herein to any statute, agreement or document, or any section thereof, shall, unless otherwise expressly
provided, be a reference to such statute, agreement, document or section as amended, modified, supplemented or re-enacted (including any successor section) and in effect from time to time. 
  

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 (e) Words denoting the singular number include the plural and vice versa.

 (f) Whenever used in this Agreement, the masculine gender shall include the feminine and neutral genders.

 (g) This Agreement shall be interpreted and enforced in accordance with the provisions hereof without the aid
of any canon, custom or rule of law requiring or suggesting constitution against the party causing the drafting of the provision in question. 
 ARTICLE II – APPOINTMENT AS MANAGER; ANNUAL BUSINESS PLAN; 
 PERFORMANCE STANDARDS; BOARD SUPERVISION; DELEGATION 
 Section 2.1 Appointment as Manager.

 The Company appoints and authorizes the Manager during the Term of this Agreement to provide the day-to-day management and
administration of the Company and the day-to-day carrying on of the Company Business, including: 
 (a) acting as
Principal Representative of the Company in accordance with the provisions of the Insurance Act 1978 and regulations promulgated thereunder; 
 (b) maintaining a principal office in Bermuda on behalf of the Company; 
 (c) preparing the Annual Business Plan, incorporating investment elements from the Investment Manager, for presentation and approval by the Board of Directors of the Company; 
 (d) sourcing appropriate Insurance and Reinsurance Contracts in accordance with the Annual Business Plan for the Company to
undertake; 
 (e) providing all necessary financial, underwriting and actuarial analysis of any potential
Insurance and Reinsurance Contracts; 
 (f) maintaining and servicing Insurance and Reinsurance Contracts related
to the Company’s Business, including issuing, countersigning, endorsing, and terminating or canceling such contracts and issuing notices of cancellation under such contracts; 
 (g) investigating, adjusting and settling claims under Insurance and Reinsurance Contracts entered into by the Company,
including defending losses under such contracts and negotiating and executing commutations of Insurance and Reinsurance Contracts entered into by the Company; 
  

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 (h) in conjunction with the Company auditors and attorneys, monitoring and
advising the directors and officers of the Company regarding legal and regulatory requirements applicable to the Company and assisting the Company in complying with such requirements; 
 (i) billing, receiving, and rendering receipts for and processing such premium and loss funds on Insurance and Reinsurance
Contracts entered into by the Company as may be required; 
 (j) preparing and executing forms of Insurance and
Reinsurance Contracts to be issued by the Company; 
 (k) maintaining such records, ledgers and books of account,
with respect to the Company and the Company’s Business as will constitute a complete and current record of the financial condition of the Company in accordance with established accounting principles applicable to the business of insurance and
reinsurance, as directed by the Company’s directors and officers; 
 (1) preparing comprehensive monthly
financial statements including profit and loss and balance sheet statements, cash flow statements, statistical reports and information (including information on outstanding loss reserves, reserves for incurred but not reported losses and expenses)
with respect to the Company and the Company’s Business as may be required by law or requested by the Company; 
 (m) preparing and filing all Bermuda government insurance reports and returns on behalf of the Company and the Company’s Business; 
 (n) preparing, filing and paying all required tax reports and returns relating to the Company’s Business; 
 (o) planning, coordinating and attending meetings of the Company’s Board of Directors; 
 (p) planning and testing annually disaster recovery operations; 
 (q) planning, coordinating and attending the Company’s annual general meeting; 
 (r) negotiating
with third parties for the provision of such other services to the Company that the Company specifically requests; 
  

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 (s) making withdrawals from time to time in accordance with written
authorization procedures established by the Company from any bank account or accounts established by the Company in order to pay in a timely manner, the necessary, reasonable and proper expenses of the Company (it being understood that any interest
that accrues on funds in such account or accounts shall be the sole property of the Company). Such expenses shall include: 
 (i) claim payments under Insurance and Reinsurance Contracts entered into by the Company; 
 (ii) management fees to be paid, provided that payment of such management fees have first been approved by the Board of Directors of the Company; 
 (iii) banking service fees; 
 (iv) fees of the Secretary of the Company; 
 (v) fees of the firm
of auditors or chartered accountants of the Company; 
 (vi) fees and taxes to appropriate regulatory authorities
of Bermuda; 
 (vii) fees of Bermuda directors of the Company; 
 (viii) communication costs; 
 (ix) travel and entertainment costs incurred by officers of the Company; and 
 (x) other necessary expenses, as may be determined by the Company. 
 (t) depositing all premiums and other sums collected or received on the Company’s behalf by the Manager directly and
immediately in an account or accounts established by the Company, in the Company’s name and for the Company’s benefit, it being understood that in no event and for no period of time may any such premiums or other sums be deposited in an
account in the name or for the benefit of any Person other than the Company; 
 (u) coordinating and cooperating
with representatives, including auditors, of the Company and HVB, providing such access to Max Re’s books and records and personnel as may be reasonably necessary or desirable for HVB to monitor its investment in the Company, evaluate the
risks, systems and business of the Company and develop the capability of employees of the Company to carry out such functions; 
  

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 (v) undertaking the maintenance of the general ledger of the Company,
including the movement of cash in and out of the bank accounts and/or the movement of securities in unregistered form; 
 (w) providing HVB, in its capacity as investment manager of the Company, with cash demand forecasts so that HVB has time to arrange the liquidation of sufficient investments to meet the Company’s needs; 
 (x) undertaking the negotiation of all trust agreements needed in connection with the collateralization of Insurance and
Reinsurance Contracts and their analysis as to the use of trust or other type of vehicle which may be appropriate in the circumstances; and 
 (y) annually engaging an independent actuary or accountant to conduct an audit to confirm that the insurance and reinsurance business (including life and annuity, property/casualty and other lines of
insurance business) generated by Max Re Group for the Company reflects the percentage and type of insurance and reinsurance business set forth in the Annual Business Plan and written by Max Re for its own account, subject to the Gross Premium Target
Amounts. 
 Section 2.2 Annual Business Plan. 
 (a) Manager to Propose Annual Business Plan. 
 On an annual basis, the Manager will propose for the Shareholders’ review and majority approval an annual business plan for the Company for the following financial year which will detail the
anticipated business of the Company for such year, including: 
 (i) the percentage (not being less than 15%,
unless a majority of the Board of Directors of the Company decide on a lesser percentage due to the leverage of the Company) and type of insurance and reinsurance business (including underwriting guidelines, risk profiles and risk objectives) which
will be sourced by Max Re or Max Re Parent or its Affiliates (collectively the “Max Re Group”) and allocated to the Company, relative to the total insurance liabilities of Max Re Group; 
 (ii) the investment guidelines and objectives for the management of the assets of the Company, as provided by HVB;

  

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 (iii) the total leverage which the Company will employ (both in relation to
premium volume and total liabilities) in the execution of its insurance business; and 
 (iv) all other material
operational matters affecting the Company. 
 (b) Annual Business Plan Defined. 
 The first annual business plan and each subsequent annual business plan proposed by the Manager pursuant to this Section 2.2 and
approved by the Shareholders shall be referred to herein as an “Annual Business Plan”. 
 Section 2.3
Performance Standards. 
 During the Term of this Agreement, the Manager shall be subject to the following performance
standards: 
 (a) The Manager shall perform all of its obligations under this Agreement: 
 (i) to the best of its professional ability; 
 (ii) in accordance with the standard of care of a professional insurance manager; and 
 (iii) with that degree of knowledge, skill and judgment which is exercised by it with respect to its own business and the
business of its parent and insurance and reinsurance Affiliates. 
 (b) The Manager shall comply with all
applicable laws, rules and regulations in respect of all activities conducted by it under this Agreement. 
 Section 2.4
Board Supervision. 
 The Manager shall be subject to the general supervision and specific directions of the Board of
Directors of the Company or their designees. 
 Section 2.5 Delegation of Authority. 
 (a) The Manager shall not delegate or subcontract any of its obligations to be performed hereunder to any other entity or
individual without the prior consent of the Company. 
  

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 (b) Notwithstanding the prohibition set forth in Section 2.5(a), the
Manager may delegate from time to time its obligations to be performed hereunder to one or more professional independent advisors, including, without limitation, independent actuaries, accountants, claims adjusters and attorneys, provided
that the Manager shall remain responsible for performance of the obligations so delegated. 
 Section 2.6 Intention of
the Parties. 
 (a) Without prejudice to the terms of this Agreement, the Stock Purchase and Subscription
Agreement or the terms of the Ancillary Agreements (as defined in the Stock Purchase and Subscription Agreement), it is the intent of the parties that: 
 (i) Max Re will participate pro rata with the Company on the same terms and conditions on all transactions that the Manager sources for the Company, to further ensure an alignment of interests of Max Re
and the Company. 
 (ii) The total insurance liabilities sourced by the Manager and allocated to the Company will
be 15% or more of the total insurance liabilities of the Max Re Group, as set out and agreed in the Annual Business Plan. 
 (iii) Subject to item (i) of this Subsection, at least 50% of the total insurance liabilities sourced by the Manager on behalf of the Company will be insurance or reinsurance written directly by the
Company and/or insurance or reinsurance fronted by Max Re and retroceded to the Company on certain transactions where the Company is deemed not to be an acceptable counterparty. 
 (iv) Subject to Item (i) of this Subsection, the remainder of the total insurance liabilities sourced by the Manager on
behalf of the Company will be a quota share retrocession from Max Re on insurance or reinsurance that Max Re would have written solely for its own account, in the absence of this Agreement (“Max Re’s Own Originated
Business”). 
 (b) In light of Subsection (a) of this Section: 
 (i) the retrocession of Max Re’s Own Originated Business is likely to represent less than 50% of the Company’s
total insurance liabilities and less than 8% of Max Re’s Own Originated Business; and

  

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 (ii) total cessions from Max Re to the Company, inclusive of fronted
insurance and reinsurance transactions, is likely to represent 12% or less of Max Re’s total insurance liabilities. 
 ARTICLE III – REPRESENTATIONS, WARRANTIES AND COVENANTS 
 Section 3.1 Representations of the
Manager. 
 The Manager represents and warrants as of the date hereof as follows: 
 (a) The Manager is a company duly incorporated, validly existing and in good standing under the laws of Bermuda. 

(b) The execution, delivery and performance by the Manager of this Agreement are within the Manager’s corporate
powers, have been duly authorized by all necessary corporate action, do not contravene 
 (i) the Manager’s
memorandum of association or bye-laws; or 
 (ii) law or any regulation or contractual restriction binding on or
affecting the Manager. 
 (c) No authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority is required for the due execution, delivery and performance by the Manager of this Agreement except for such filings with, and approvals of such Governmental Authorities as will have been made and obtained prior to the
Effective Date. 
 (d) This Agreement is the legal, valid and binding obligation of the Manager enforceable
against the Manager in accordance with its terms. 
 (e) The Manager is registered as an Insurance Manager under
the Insurance Act 1978 and the regulations promulgated thereunder. 
 Section 3.2 Representations of the Company.

 The Company represents and warrants as of the date hereof as follows: 
 (a) The Company is a company duly incorporated, validly existing and in good standing under the laws of Bermuda; 

(b) The execution, delivery and performance by the Company of this Agreement are within the Company’s corporate
powers, have been duly authorized by all necessary corporate action, do not contravene; 
  

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 (i) the Company’s memorandum of association or bye-laws; or 

(ii) law or any regulation or contractual restriction binding on or affecting the Company. 
 (c) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required
for the due execution, delivery and performance by the Company of this Agreement except for such filings with, and approvals of such Governmental Authorities as will have been made and obtained prior to the Effective Date; 
 (d) This Agreement is the legal, valid and binding obligation of the Company enforceable against the Company in accordance
with its terms. 
 Section 3.3 Covenants of the Manager. 
 The Manager covenants that, during the Term of this Agreement: 
 (a) the Manager shall within three (3) months after accepting a risk on behalf of the Company, present such risk to the
Company’s Board of Directors together with detailed analyses regarding the risk exposure insured by the Company; 
 (b) unless otherwise approved by the Board of Directors of the Company, the Manager shall apply the same reserving policy to each Insurance and Reinsurance Contract entered into by the Company as Max Re applies to Max Re and insurance and
reinsurance Affiliates of Max Re Parent; 
 (c) notwithstanding the Gross Premium Target Amounts, the Manager
shall use commercially reasonable efforts in the conduct of the business of the Company (unless the contrary is set forth in the applicable Annual Business Plan or approved by the Company’s Board of Directors) to achieve as a target a
Asset/Surplus Ratio of no greater than three-to-one (3:1) based on the capital and surplus shown in the most recently available quarterly financial statements of the Company; and 
 (d) it has or will at the time of performance have the necessary knowledge, skills, facilities, licenses and authorizations
to perform its obligations to the Company under this Agreement. 
  

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 Section 3.4 Covenants of the Company. 
 The Company covenants that, during the Term of this Agreement: 
 (a) it shall keep the Manager informed or cause to be kept informed of all material developments relating to the
Company’s Business; 
 (b) it shall comply promptly with any reasonable request for instructions or
information which the Manager may make in order to perform its obligations under this Agreement in an efficient manner and in compliance with applicable Bermuda law; 
 (c) it shall promptly furnish the Manager with a copy of all minutes of the meetings of and the resolutions adopted by the
Board of Directors of the Company and the committees thereof, but only to the extent that the Manager was not present at any such meeting; and 
 (d) in the event that a ceding company does not accept the Company as a direct reinsurer and Max Re Parent causes Max Re to accept the entire risk for Max Re’s own account and causes Max Re to
retrocede to the Company the percentage of insurance and reinsurance business set forth in the Annual Business Plan, then the Company shall provide back-to-back letter of credit or trust arrangements in accordance with market standards for the
liabilities retroceded from Max Re to the Company. 
 ARTICLE IV – BOOKS AND RECORDS 
 Section 4.1 Books and Records. 
 (a) The Manager shall keep, in a manner and form approved by or acceptable to the Company, true and complete Books and Records of all the Company’s Business conducted under and pursuant to this
Agreement; 
 (b) The Manager shall maintain all records with regard to the Company’s Business separately
from the records of its other businesses, provided that the Company may use identical computer and other systems so long as information with regard to the Company is maintained separately and in an identifiable manner. 
 Section 4.2 Company Property. 
 All Books and Records kept by the Manager in connection with the Company’s Business managed by the Manager shall be and remain the sole property of the Company and will remain the property of the
Company following termination of this Agreement. 
  

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 ARTICLE V – MANAGER COMPENSATION 
 Section 5.1 In General. 
 As consideration for the Manager performing its obligations under this Agreement, the Company will pay the Manager the fees set forth in this Article V, subject to a maximum amount of $10 million per
Agreement Year. 
 Section 5.2 Flat Fee. 
 The Company shall pay the Manager each Agreement Quarter, within 15 business days of the end thereof, a pro-rata portion of a flat fee of $2
million per Agreement Year, provided that the Manager in all material respects performs its obligations pursuant to this Agreement and reaches certain Gross Premium Target Amounts as to the amount of premium written during that Agreement
Year. 
 Section 5.3 Reserve-based Fee. 
 (a) The Company shall pay the Manager each Agreement Quarter, within 15 business days of the end thereof, a fee based on:

 (i) the sliding scale set out in subsection (b) of this Section of the weighted averaged Reserves
(averaged over the preceding three (3) month period ending that Agreement Quarter), less 
 (ii)
amounts attributable to HVB Introduced Business, less 
 (iii) any increases in Reserves on business
(other than HVB Introduced Business) over Reserves initially established for such business. 
 (b) The sliding
scale is as follows: 
 (i) 1.50% per annum of the first $300 million of Reserves; 
 (ii) 1.00% per annum of the next $300 million of Reserves; 
 (iii) 0.50% per annum of the next $300 million of Reserves; and 
 (iv) 0.25% per annum of all amounts above $900 million. 
  

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 (c) For the purposes of this Section 5.3, “Reserves”
shall include the periodic accretion of loss reserve discount and shall be construed as follows: 
 (i) in
relation to the life and annuity business and retrospective property/casualty business of the Company, the reserves established for such business; and 
 (ii) in relation to the other lines of insurance business and prospective property/casualty business of the Company, the present value of unpaid loss reserves for such business up to a loss ratio of 100
percent. 
 Section 5.4 Fee for HVB Introduced Business. 
 The Company shall pay the Manager each Agreement Quarter, within 15 business days of the end thereof, a one time fee of: 
 (a) 0.25% of net written premium attributable to HVB Introduced Business for the first $300 million of such premium during
the Term of this Agreement; and 
 (b) 0.50% of net written premium attributable to HVB Introduced Business for
all such premium over $300 million during the Term of this Agreement. 
 Section 5.5 Fee Refund. 
 In the event that at the end of each Agreement Year the Gross Premium Target Amounts are not met, the Manager or, failing that, Max Re
Parent shall, within 15 business days, refund to the Company, $1 million for that Agreement Year, provided that such refund shall not apply if the failure to meet the Gross Premium Target Amounts is directly due to the acceptance by the
Company of any HVB Introduced Business. In the event that the Company and/or Max Re Parent has made a prior refund to the Company for the first Agreement Year, and the Gross Written Premium Target by the end of the second Agreement Year, excluding
the HVB Introduced Business, is exceeded and, provided that HVB has suffered no adverse tax or other regulatory consequences, the Company shall rebate the refunded amounts (without interest) to the Manager and/or Max Re Parent, as the case
may be, after the end of the second Agreement Year. 
 Section 5.6 Services Covered by Fees. 
 Day-to-day operational costs will be covered by the fees set forth in Section 5.2, Section 5.3, Section 5.4 and
Section 5.5, which will cover all costs and responsibilities set out in this Agreement, including the secondment of three (3) staff to the Company, rental space (including without limitation, four dedicated fully equipped work-stations and
shared use of conference rooms), the use and management of the Max Re Parent general ledger system, current and future telephone and information technology platforms and relevant links to HVB and other related costs. 
  

 15 

 Section 5.7 Additional Direct Expenses Payable by the Company. 
 The Company will pay the Manager directly only the following expenses and such other expenses that the Company agrees to in advance from
time to time: 
 (a) the following corporate expenses: annual audit, corporate legal expenses, Board of
Director’s expenses and director’s and officer liability insurance premiums; 
 (b) the following
direct transactional expenses: brokerage, taxes, reinsurance letter of credit and reinsurance trust fees; and 
 (c) counsel fees related to litigation involving claims under Insurance and Reinsurance Contracts entered into by the Company. 
 ARTICLE VI – ACCESS TO EMPLOYEES; EXAMINATION; AUDIT 
 Section 6.1 Access to Employees and Books
and Records. 
 The Manager shall provide the Company and HVB (and its regulators or auditor) access to employees of the
Manager and the Books and Records of the Company. In addition, the Manager shall permit employees of HVB to observe and inspect the operations of the Manager as they relate to the risks insured by the Company. 
 Section 6.2 Examination. 
 The Company or its representatives shall have the right to examine and inspect at any reasonable time any and all of the Manager’s books and records relating to the Company’s Business. At the
Company’s option, in lieu of the Company or its representatives examining such books and records at the Manager’s place or places of business where such books and records are maintained by the Manager, the Manager agrees to promptly
provide copies of such books and records to the Company on receipt of a written request from the Company. The Manager shall cooperate fully with any such examination and provide all such books and records requested by the Company or its
representatives, subject to the confidentiality provisions set forth in Article XI. 
 Section 6.3 Audit.

 The Manager shall permit the Books and Records of the Company maintained by it to be audited by an auditor appointed by the
Company at any time upon notice from the Company. 
  

 16 

 ARTICLE VII – INDEMNIFICATION AND INSURANCE 
 Section 7.1 Indemnification by Max Re Parent and the Manager. 
 (a) Max Re Parent and the Manager, jointly and severally, shall indemnify and hold harmless the Company (and its directors,
officers, employees and agents) from and against any and all Liabilities, Actions and Damages resulting from, arising out of or directly relating to: 
 (i) any willful misconduct or gross negligence on the part of the Manager; or 
 (ii) the breach by the Manager or any of its employees of any representation, warranty, agreement or covenant made under this Agreement. 
 (b) Notwithstanding the provisions of subsection (a) of this Section, neither Max Re Parent nor the Manager shall be
liable for Liabilities, Actions and Damages resulting from, arising out of or directly relating to: 
 (i)
non-material breaches by the Manager of the performance standards under Section 2.3; 
 (ii) failure of any
HVB Introduced Business to meet the underwriting criteria of the Company as set out in the Annual Business Plan in effect at the time such HVB Introduced Business first becomes insured or reinsured by the Company; or 
 (iii) failure of the Manager to comply with the covenant set forth in Section 3.3(c) due to the kinds of invested assets
of the Company or performance of invested assets of the Company which are outside the control of the Manager. 
 Section 7.2 Indemnification by the Company. 
 The Company shall indemnify and hold harmless the Manager
(and its directors, officers, employees and agents) from and against all Liabilities, Actions and Damages brought or incurred by third parties to this Agreement (other than any Affiliates of the Manager) resulting from, arising out of or directly
relating to: 
 (a) any error, omission, tort or any other negligence on the part of the Manager, other than
gross negligence, willful misconduct, fraud or dishonesty of the Manager; or 
  

 17 

 (b) the Manager’s performance of its obligations under this Agreement
to the extent such Liabilities, Actions and Damages are not caused by any gross negligence, willful misconduct, fraud or dishonesty of the Manager. 
 Section 7.3 Indemnification by HVB. 
 (a) HVB shall
indemnify and hold harmless the Manager (and its directors, officers, employees and agents) from and against all Liabilities, Actions and Damages resulting from, arising out of or directly relating to any claims in relation to any failure of any HVB
Introduced Business to meet the underwriting criteria of the Company as set forth in the Annual Business Plan in effect at the time such HVB Introduced Business first becomes insured or reinsured by the Company. 
 (b) Notwithstanding the provisions of subsection (a) of this Section, HVB shall not be liable for Liabilities, Actions
and Damages resulting from, arising out of or directly relating to: 
 (i) any claim made against the Manager (by
or its directors, officers, employees or agents) which is brought by or on behalf of Max Re Parent or its Affiliates (or their directors, officers, employees or agents); 
 (ii) any single claim for an amount that is less than $10,000; 
 (iii) any failure to meet applicable Annual Business Plan underwriting criteria that is subsequently approved or ratified by
the Board of Directors of the Company (including the consent of both Max Re Parent and HVB); or 
 (iv) any gross
negligence or willful misconduct, fraud or dishonesty of the Manager. 
 Section 7.4 Indemnification Procedures.

 (a) In the case of any claim asserted by a third party against a party entitled to indemnification under
Article VII (the “Indemnified Party”), notice shall be given by the Indemnified Party to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual
knowledge of any claim as to which indemnity may be sought, and the Indemnified Party shall permit the Indemnifying Party (at the expense of such Indemnifying Party) to assume the defense of any claim or any Litigation resulting therefrom,
provided that: 
 (i) counsel for the Indemnifying Party who shall conduct the defense of such claim or
Litigation shall be satisfactory to the Indemnified Party, and the Indemnified Party may participate in such defense at such Indemnified Party’s expense; and 
  

 18 

 (ii) the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except to the extent that such failure results in a lack of actual notice to the Indemnifying Party or such Indemnifying Party is materially prejudiced
by way of any forfeiture of rights or defenses or otherwise as a result of such failure to give notice. 
 (b)
Except with the prior written consent of the Indemnified Party, no Indemnifying Party, in the defense of any such claim or Litigation, shall consent to entry of any judgment or enter into any settlement that provides for injunctive or other
nonmonetary relief affecting the Indemnified Party or that does not include as an unconditional term thereof the giving by each claimant or plaintiff to such Indemnified Party of a release from all liability with respect to such claim or Litigation.
The parties shall cooperate in the defense of any claim or Litigation subject to this Article VII and the records of each shall be available to the other with respect to such defense. 
 Section 7.5 Insurance Requirements. 
 During the Term of this Agreement and for so long as the Manager has any obligations hereunder, the Manager will maintain the following kinds of insurance with one or more reputable insurers that are
satisfactory to the Company: 
 (a) Liability insurance that covers errors and omissions arising out of the
Manager’s obligations under this Agreement which shall, at a minimum, have the following features: 
 (i) a
per occurrence limit of liability of at least $5 million; 
 (ii) an annual aggregate limit of liability of
at least $5 million; 
 (iii) a deductible or self-insured retention of no greater than $250,000; 
 (iv) a provision providing at least 30 days’ notice to the Company and HVB of: 
 1. cancellation; 
  

 19 

 2. nonrenewal; 
 3. reduction of coverage limits; 
 4. increased deductible and self-insured retention; or 
 5. additional exclusions; and 
 (v) a provision adding the Company as an additional named insured thereunder. 
 (b) Insurance coverage, in a form reasonably acceptable to the Company, providing general liability insurance, automobile liability insurance, workers’ compensation and employers liability insurance
and fidelity (bond) coverage adequate and suitable for its business and on such terms, covering such risks, containing such deductibles and retentions and in such amounts as insurance coverage customarily carried by the Max Re Group. 
 Section 7.6 Certificates of Insurance. 
 Upon execution of this Agreement and thereafter upon renewal, the Manager will provide the Company with one or more certificates of insurance evidencing the existence of the amounts and forms of insurance
coverages described in Section 7.5 These certificates of insurance must expressly evidence the provisions mandated in Section 7.5. 
 ARTICLE VIII – TERM AND TERMINATION 
 Section 8.1 Term.

 This Agreement shall commence on the Effective Date and terminate as provided in this Article VIII. 
 Section 8.2 Termination On Notice. 
 This Agreement may be terminated by the Company or the Manager with at least one year’s prior written notice of termination, provided that termination under this action 8.2 shall be effective
no earlier than the end of the third Agreement Year. 
 Section 8.3 Termination by the Company For Cause.

 This Agreement may be terminated by the Company immediately by notice served on the Manager if at any time: 
 (a) the Manager or Max Re Parent, as the case may be, commits a material breach of its obligations under this Agreement or
Max Re Parent or Max Re commits a material breach of the Stock Purchase and Subscription Agreement or any other Ancillary Agreement (as defined in the Stock Purchase and Subscription Agreement) and, in the case of a breach capable of remedy, fails
to remedy such breach within 7 days of being specially required in writing to do so by the Company or HVB; 
  

 20 

 (b) Max Re, the Manager, Max Re Parent or any principal of any thereof
engages in fraud or dishonesty or any act involving moral turpitude; 
 (c) Max Re loses its authority to carry
on an insurance or reinsurance business in Bermuda or the Manager loses its ability to carry on an insurance management business in Bermuda; 
 (d) a distress, execution, sequestration or other process is levied or enforced upon or sued out against the property of Max Re Parent, Max Re or the Manager which is not discharged within 10 days;

 (e) Max Re Parent, Max Re or the Manager is unable to pay its debts in the normal course of business;

 (f) Max Re Parent, Max Re or the Manager ceases or threatens to cease, wholly or substantially, to carry on
its business; 
 (g) an encumbrancer takes procession of or a receiver or trustee is appointed over the whole or
any part of the undertaking, property or assets of Max Re Parent, Max Re or the Manager; 
 (h) an order is made
or a resolution is passed for the winding-up of Max Re Parent, Max Re or the Manager; or 
 (i) Max Re Parent
ceases to own the controlling interest in, or ceases to exercise effective day-to-day management control over or permits the sale, transfer or other disposition of all or substantially all of the assets of, Max Re or Manager. 
 Section 8.4 Termination by the Manager For Cause. 
 This Agreement may be terminated by the Manager immediately by notice served on the Company if at any time: 
 (a) the Company commits a material breach of its obligations under the Stock Purchase and Subscription Agreement, this Agreement or any other Ancillary Agreement (as defined in the Stock Purchase and
Subscription Agreement) or HVB commits a material breach of the Stock Purchase and Subscription Agreement and, in the case of a breach capable of remedy, fails to remedy such breach within 7 days of being specially required in writing to do so by
the Manager; 
  

 21 

 (b) the Company engages in fraud or dishonesty or any act involving moral
turpitude, provided that such fraud, dishonesty or act does not, directly or indirectly, result from, arise out of or directly relate to any act or failure to act by the Manager; 
 (c) the Company loses its authority to carry on an insurance or reinsurance business in Bermuda, provided that such
loss does not, directly or indirectly, result from, arise out of or directly relate to any act or failure to act by the Manager; 
 (d) a distress, execution, sequestration or other process is levied or enforced upon or sued out against the property of HVB or the Company which is not discharged within 10 days; 
 (e) HVB or the Company is unable to pay its debts in the normal course of business; 
 (f) HVB or the Company ceases or threatens to cease, wholly or substantially, to carry on its business; 
 (g) an encumbrancer takes procession of or a receiver or trustee is appointed over the whole or any part of the undertaking,
property or assets of HVB or the Company; or 
 (h) an order is made or a resolution is passed for the winding-up
of HVB or the Company. 
 Section 8.5 Performance During Period of Notice. 
 During any period of notice of termination, both the Manager and the Company shall continue to perform their respective obligations in
accordance with the terms of this Agreement. 
 Section 8.6 No Prejudice. 
 Termination in accordance with the above provisions, or howsoever effected, shall take effect without prejudice to the rights and
obligations of the parties which have accrued at the date of termination or which may subsequently accrue. 
  

 22 

 ARTICLE IX – TRANSFER OF EXISTING COMPANY BUSINESS 
 Section 9.1 In General. 
 In the event of: 
 (i) the winding-up of the Company; 

(ii) a reduction of capital or other restructuring of the Company; 
 (iii) the Company exiting of a particular type of reinsurance business; 
 then the Manager or, failing that, Max Re Parent shall use its best efforts to retrocede to Max Re (and Max Re shall have the first right of refusal to) the
applicable book of Insurance and Reinsurance Contracts of the Company (the “Existing Company Business”) at the relevant time at market rates. If due to sound business reasons, Max Re is unable to accept a retrocession of the
Existing Company Business, in whole or in part, then the Company or (failing whom) Max Re Parent shall use its best efforts to retrocede the whole or (as the case may be) part of the Existing Company Business to a third party at market rates.

 Section 9.2 Max Re Right to Bid. 
 If, after this Agreement has been terminated, the Company is seeking to retrocede any of the Existing Company Business (excluding the HVB Introduced Business) then the Company will, as long as it does not
disadvantage the Company, allow Max Re to bid at market rates on such business. 
 ARTICLE X – EFFECT OF TERMINATION 

 Section 10.1 Fees. 
 If this Agreement is terminated, then any fees under Article V with respect to the performance of the Manager under this Agreement will be prorated to the effective date of termination. 
 Section 10.2 Return of Books and Records. 
 (a) On or as of the termination of this Agreement, the Company shall be entitled to require the Manager to carry out one or
more of the following: 
 (i) deliver to the Company or its designee, in a mutually agreeable format, all the
Books and Records, however generated, relating to the Company’s Business including any off-line storage and security copies of the Data; 
  

 23 

 (ii) store on magnetic, optical or other media all or any of the information
then stored on-line relating the Company’s Business and to deliver such media, in a mutually agreeable format, to the Company or its designee; and 
 (iii) make and deliver to the Company or its designee such printouts of information relating to the Company’s Business as the Company may reasonably require. 
 (b) The Manager shall cooperate fully with the Company or its designee in performing its obligations under this
Section 10.2. 
 Section 10.3 Survival. 
 The following provisions of this Agreement will survive the termination of this Agreement: Articles I, IV, V, VII, X, XI and XII and
Sections 9.2,13.2 and 13.3. 
 ARTICLE XI – CONFIDENTIALITY 
 Section 11.1 In General. 
 Each of the Company and the Manager shall keep confidential and not use or disclose any information previously or hereafter obtained by it pursuant to this Agreement (the party receiving such information
is hereinafter referred to as the “Receiving Party”) with respect to the other or such other’s parents, subsidiaries, Affiliates or other related entities (the party, or such party’s parents, subsidiaries, Affiliates or
other related entities, with respect to which the information relates is hereinafter referred to as the “Disclosing Party”) in connection with this Agreement and the negotiations preceding this Agreement (such information is
hereinafter referred to as the “Confidential Information”), and the Receiving Party will use such Confidential Information solely in connection with the transactions contemplated by this Agreement, and if the transactions
contemplated hereby are not consummated for any reason, the Receiving Party shall either return to the Disclosing Party, without retaining a copy thereof, or destroy, any schedules, documents or other written or electronically stored information
constituting Confidential Information (or prepared based upon such Confidential Information) in connection with this Agreement and the transactions contemplated hereby and the negotiations preceding this Agreement. Without limiting the generality of
the foregoing, the Receiving Party shall be permitted to disclose any Confidential Information to such of its Affiliates, officers, directors, employees, agents,

  

 24 

 
lenders and representatives (collectively, “Representatives”) as have a need to know such Confidential Information, provided such Representatives shall be informed that
disclosure of such Confidential Information by such Representatives would be in contravention hereof and the Receiving Party shall be responsible for any disclosure prohibited hereby by any of its Representatives. 
 Section 11.2 Exceptions. 
 Notwithstanding Section 11.1, the Receiving Party shall not be required to keep confidential or return any information which: 
 (a) is known or available through other lawful sources, not bound by a confidentiality agreement with the Disclosing Party;

 (b) is or becomes publicly known other than as a result of the disclosure by the Receiving Party or its
Representatives; 
 (c) is required to be disclosed pursuant to an order or request of a judicial or governmental
authority, an arbitrator or arbitration panel or a self-regulatory body or pursuant to any law or regulation in any jurisdiction (provided that the Disclosing Party, to the extent permitted by law, is given reasonable prior written notice);
or 
 (d) is developed by the Receiving Party independently of, and is not based upon, the Confidential
Information. 
 ARTICLE XII – ARBITRATION 
 Section 12.1 Arbitration. 
 All disputes, controversies or claims arising out of, relating to, or in connection with, this Agreement, or the breach, termination or validity hereof, shall be finally settled by arbitration. The
arbitration shall be conducted in accordance with the Bermuda International Conciliation and Arbitration Act 1993, except as same may be modified herein or by mutual agreement of the parties. The seat of the arbitration shall be Bermuda, and it
shall be conducted in the English language. 
 Section 12.2 Arbitrators. 
 Unless the parties otherwise agree, the arbitration shall be conducted by three arbitrators. Each party shall nominate one arbitrator by
written notice to the other party and the two arbitrators shall appoint the third arbitrator who shall act as chairperson. Such nominations of the party-nominated arbitrators shall be made within 14 days of the service of a written demand for
arbitration by either party. In the event that a party does

  

 25 

 
not nominate an arbitrator within such 14-day period or the two arbitrators are unable to agree on the third arbitrator within 14 days after appointment of the party-appointed arbitrator or if
the third arbitrator declines to act, the appointment of the remaining
 arbitrator(s) shall be made by the London Court of International Arbitration at the request of either party. 
 Section 12.3 Qualification of Arbitrators. 
 The arbitrators nominated or appointed shall be impartial and, unless the parties otherwise agree, either attorneys with specialist knowledge of the reinsurance and insurance industry of at least 10 years
admission to the bar, or reinsurance and insurance industry professionals of at least 10 years standing. Any objection to the qualifications of any arbitrator must be made, if at all, within 10 days of notice of the nomination or appointment of such
arbitrator. 
 Section 12.4 Procedure. 
 The arbitral tribunal shall decide the procedure and time periods for the arbitral proceedings so as to resolve the dispute, controversy or
claim as soon as practicable. 
 Section 12.5 Arbitration Award. 
 The arbitral award shall be in writing, shall state reasons for the award, and be final and binding on the parties. The award may include an
award of costs, including reasonable attorneys’ fees and disbursements. Judgment on the award may be entered by any court having jurisdiction thereof or having jurisdiction over the parties or their assets. 
 Section 12.6 Consolidated Proceedings. 
 In order to facilitate the comprehensive resolution of related disputes, and upon request of any party to the arbitration proceeding, the arbitration tribunal may, within 90 days of its appointment,
consolidate the arbitration proceeding with any other arbitration proceeding involving any of the parties hereto relating to this Agreement, the Stock Purchase and Subscription Agreement, the Max Re Parent Agreement or the other Ancillary Agreements
(as defined in the Stock Purchase and Subscription Agreement). The arbitrators shall not consolidate such arbitrations unless they determine that (i) there are issues of fact or law common to the two proceedings so that a consolidated
proceeding would be more efficient than separate proceedings, and (ii) no party hereto would be prejudiced as a result of such consolidation through undue delay or otherwise. In the event of different rulings on this question by the arbitration
tribunal constituted hereunder and the tribunal constituted under Stock Purchase and Subscription Agreement, the ruling of the panel appointed under the Stock Purchase and Subscription Agreement shall control. In the case of a consolidated
proceeding, the arbitrators in that proceeding shall be named as provided in the Stock Purchase and Subscription Agreement. 
  

 26 

 ARTICLE XIII – GENERAL 
 Section 13.1 Relationship of the Parties. 
 The Company and the Manager are independent of one another. Nothing in this Agreement shall be deemed to create: 
 (a) a joint venture or partnership between the parties; 
 (b) a relationship of employer and employee; 
 (c) a relationship of principal and agent; 
 (d) or any relationship other than independent parties contracting with each other solely for the purpose of carrying out the
provisions of this Agreement 
 Section 13.2 Notices. 
 (a) Any notice or other communication required or permitted to be given under this Agreement shall be in writing and (unless
some other method of giving the same is specified or accepted in writing by the recipient) shall be effective: 
 (i) when personally delivered during normal business hours to the addressee at the address designated for such delivery; 
 (ii) on the date of receipt specified in any return receipt if it shall have been deposited in the mails, certified or registered with return receipt requested and postage thereon fully prepaid, or sent
by Federal Express or other recognized domestic courier service, addressed to the addressee at such address; or 
 (iii) on the day it shall have been given by telex (with appropriate answerback received) or facsimile transmission if such facsimile is followed within two Business Days by a written notice mailed in accordance with clause (ii) above
to the addressee at such address, whichever of the foregoing shall first occur. 
  

 27 

 (b) Until otherwise specified by written notice, the addresses for any such
notice or other communication shall be as follows: 
  

	 	(i)	If to the Manager: 

  

	 	    	Max Re Managers Ltd. 

	 	    	Ascot House 

	 	    	28 Queen Street 

	 	    	Hamilton HM 11 

	 	    	Bermuda 

	 	    	Attn: Chief Financial Officer 

	 	    	Tel: 441-296-8800 

	 	    	Fax: 441-296-8811 

  

	 	(ii)	If to the Company: 

  

	 	    	Grand Central Re Limited 

	 	    	Ascot House 

	 	    	28 Queen Street 

	 	    	Hamilton HM 11 

	 	    	Bermuda 

	 	    	Attn: President 

	 	    	Tel: 441-296-8800 

	 	    	Fax: 441-296-8811 

  

	 	    	with copies to: 

  

	 	    	Bayerische Hypo- und Vereinsbank AG 

	 	    	c/o HVB America Inc. 

	 	    	 150 East 42nd Street 

	 	    	New York, New York 10017-4679 

	 	    	Attention: Thomas Glynn 

	 	    	Tel: 212-672-6013 

	 	    	Fax: 212-672-5522 

  

	 	    	and 

  

	 	    	Bayerische Hypo- und Vereinsbank AG 

	 	    	c/o HVB America Inc. 

	 	    	150 East 42nd Street 

	 	    	New York, New York 10017-4679 

	 	    	Attention: General Counsel 

	 	    	Tel: 212-672-5393 

	 	    	Fax: 212-672-5531 

  

 28 

	 	(iii) 	If to Max Re Parent: 

  

	 	    	Max Re Capital Ltd. 

	 	    	Ascot House 

	 	    	28 Queen Street 

	 	    	Hamilton HM 11 

	 	    	Bermuda 

	 	    	Attn: Chief Financial Officer 

	 	    	Tel: 441-296-8800 

	 	    	Fax: 441-296-8811 

  

	 	(iv)	If to HVB: 

  

	 	    	Bayerische Hypo- und Vereinsbank AG 

	 	    	c/o HVB America Inc. 

	 	    	150 East 42nd Street 

	 	    	New York, New York 10017-4679 

	 	    	Attention: Thomas Glynn 

	 	    	Tel: 212-672-6013 

	 	    	Fax: 212-672-5522 

  

	 	    	with a copy to: 

  

	 	    	Bayerische Hypo- und Vereinsbank AG 

	 	    	c/o HVB America Inc. 

	 	    	150 East 42nd Street 

	 	    	New York, New York 10017-4679 

	 	    	Attention: General Counsel 

	 	    	Tel: 212-672-5393 

	 	    	Fax: 212-672-5531 

 Section 13.3 Governing Law. 
 This Agreement shall be governed by and construed according to the laws of
the Bermuda. 
 Section 13.4 No Waiver. 
 Failure of any party to enforce any provision of this Agreement shall not constitute a course of conduct or waiver in the future of the
right to enforce the same or any other provision. 
 Section 13.5 Offset. 
 The Company and the Manager may offset any balance due to it from the other under this Agreement. 
  

 29 

 Section 13.6 Counterparts. 
 This Agreement may be signed in multiple counterparts. Each counterpart shall be considered an original instrument, but all of them in the
aggregate shall constitute one agreement. 
 Section 13.7 Severability. 
 In the event that any word, sentence, paragraph provision or article of this Agreement is found to be void or voidable, the remainder of
this Agreement shall nevertheless be legal and binding with the same force and effect as though the void or voidable parts were deleted. 
 Section 13.8 Assignment and Third Party Beneficiaries. 
 This
Agreement is entered into for the benefit of the parties hereto and their respective successors, legal representatives and assigns. No other person or entity shall obtain an interest herein or be deemed to be a beneficiary of the provisions
contained herein except as specifically set forth herein. This Agreement may not be assigned by any party without the written consent of the other parties. 
 Section 13.9 Integration; Amendment; Reliance. 
 (a)
This Agreement and the Side Letter (as defined in the Stock Purchase and Subscription Agreement) sets out the entire understanding of the parties with respect to the matters with which it deals and may be amended or modified only by written
instrument duly executed by each party. 
 (b) Each party acknowledges that it has not relied upon or been
induced to enter into this Agreement by any representation other than a representation expressly set out in this Agreement and neither party shall be liable to the other in equity, contract, tort or in any other way for any representation not
expressly set out in this Agreement. 
  

 30 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above
written. 
  

			
	MAX RE MANAGERS LTD.
		
	By: 	 	/s/ Keith Hynes
		 	 Name: Keith Hynes
 Title:
  President

	
	MAX RE CAPITAL LTD.
		
	By: 	 	/s/ Robert J. Cooney
		 	 Name: Robert J. Cooney
 Title:   President

	
	BAYERISCHE HYPO- UND VEREINSBANK AG
		
	By: 	 	/s/ Thomas J. Glynn
		 	 Name: Thomas J. Glynn
 Title:   Managing Director

	
		
	By: 	 	/s/ Jon D. Karnofsky
		 	 Name: Jon D. Karnofsky
 Title:   Director

	
	GRAND CENTRAL RE LIMITED
		
	By: 	 	/s/ Stephan Bub
		 	 Name: Stephan Bub
 Title:
  Chairman of the Board

	
		
	By: 	 	/s/ Thomas J. Glynn
		 	 Name: Thomas J. Glynn
 Title:   Deputy Chairman

  

 31 

 Max Re Ltd. 
 Max Re Managers Ltd. 
 Ascot House 
 28 Queen Street 
 Hamilton HM 11 
 Bermuda 
 10 May, 2001                             
 Grand Central Re Limited 
 Ascot House 

28 Queen Street 
 Hamilton HM 11 
 Bermuda 
 Bayerische Hypo- und Vereinsbank AG

 c/o HVB America Inc. 
 150 East 42nd
Street 
 New York, NY 10017 
 Gentlemen: 
 Reference is hereby made to the Insurance Management Agreement among Max Re Managers Ltd. (the
“Manager”), Max Re Capital Ltd., Bayerische Hypo- und Vereinsbank AG and Grand Central Re Limited (the “Company”), dated as of the date hereof (the “Insurance Management Agreement”) and
the Quota Share Retrocession Agreement by and between Max Re Ltd. and Grand Central Re Limited dated as of the date hereof (the “Quota Share Retrocession Agreement”). Defined terms used in this letter agreement (the “Side
Letter”) and not defined herein shall have the meanings ascribed thereto in the Quota Share Retrocession Agreement. 
 1. Quota Share Retrocession Agreement – Initial Premium Settlement 
 In connection with the Quota Share
Retrocession Agreement, we hereby agree with you that the first settlement under the Quota Share Retrocession Agreement shall be made on the date of the Closing (as defined in the Stock Purchase and Subscription Agreement) or as soon as possible
thereafter and any amount owed by the Reinsurer to the Company under a Policy ceded as part of such settlement shall be agreed between the parties and paid as follows: 
 The amount paid for the fixed income component shall be equal to: 
  

	 	•	 	 the pro-rata potion of the premium collected applicable to the fixed income portion of each transaction, 

	 	•	 	 adjusted by the change in the present value of the liability cash flows discounted using the swap curve (Bloomberg US Mid Close –
“USSWAP”) as of: 

 1. Binding date of each individual transaction, and 

2. Close of business the night prior to transfer of funds in fulfillment of this Agreement. 
  

	 	•	 	 In the case of the ALEA transaction, an adjustment will be made to the final cash flow based upon the changes in five year rates.

 The amount paid for the alternative component shall be equal to: 
  

	 	•	 	 the pro-rata portion of the premium collected applicable to the profit sharing portion of each transaction, 

  

	 	•	 	 adjusted by the change for actual performance of the alternative portfolio, as of: 

 1. Binding date of each individual transaction, and 
 2. Close of business the night prior to transfer of funds in fulfillment of this Agreement. 
 Examples of the calculation and the cash flows to be utilized in the calculation are annexed to this side letter as Annexure 1. 

2. Insurance Management Agreement – Initial Fee Settlement 
 Pursuant to the terms of the Insurance Management Agreement and this Side Letter, the Company hereby agrees that on the Closing the Company
shall pay to the Manager all accrued and unpaid compensation to the Manager as of the date of Closing (assuming the Insurance Management Agreement became effective January 1, 2001) as if each Insurance and Reinsurance Contract (as defined in
the Insurance Management Agreement) sourced by the Manager in accordance with the Insurance Management Agreement had been ceded by the Reinsurer to the Company under the Quota Share Retrocession Agreement from the date (not to be earlier than
January 1, 2001) the premium or reinsurance premium was paid to the Reinsurer under such Insurance and Reinsurance Contract. 
  

 2 

 3. Insurance Management Agreement – Reserve-based Fee 
 (a) For the purposes of this Section 3, the following terms shall have the respective meanings set forth in the
Insurance Management Agreement: Agreement Quarter, Agreement Year, Company’s Business, Loss, Insurance and Reinsurance Contract and Reserves. 
 (b) For purposes of calculating the reserve-based fee payable by the Company to the Manager under Section 5.3 of the Insurance Management Agreement, the Company and the Manager agree that, for any
Insurance and Reinsurance Contract related to the Company’s Business, the Reserves for such Insurance and Reinsurance Contract for an Agreement Year (the “Subject Agreement Year”) shall be no greater than the sum of:

 1. the premium or reinsurance premium due for payment during the Subject Agreement Year in respect of such
Insurance and Reinsurance Contract or the premium or reinsurance premium allocated by the Manager to the Subject Agreement Year (but not due for payment during the Subject Agreement Year) for such Insurance and Reinsurance Contract in accordance
with Statutory Accounting Practices (as defined in the Stock Purchase and Subscription Agreement) (collectively, the “Subject Premium”), provided that the Subject Premium is actually received by the Company within 90 days following
the Subject Agreement Year (the “Premium Due Date”); and 
 2. the sum of the prior year’s
Reserves (less all Loss payments and current Reserves adjustments) for such Insurance and Reinsurance Contract established for each Agreement Year preceding the Subject Agreement Year as determined in accordance with Section 3(b)(1) and as
further adjusted by Section 3(c). 
 (c) As of the end of the first calendar quarter following the Subject
Agreement Year, the Manager shall recalculate the fee payable under Section 5.3 of the Insurance Management Agreement for the Subject Agreement Year and submit such recalculation to the Company. For purposes of this recalculation: 

1. if the Subject Premium is not actually received by Company prior to Premium Due Date, then the Subject Premium shall be
deemed due for payment in or allocable to the Agreement Year in which it is actually received for purposes of Section 3(b)(1); and 
 2. if, as a result of adjustments to the Subject Premium permitted under the terms of the Insurance and Reinsurance Contract, the premium or reinsurance premium actually received by the Company prior to
the Premium Due Date exceeds the Subject Premium initially due for payment in or allocated to the Subject Agreement Year under Section 3(b)(1), then such additional amounts shall be deemed paid in the Subject Agreement Year. 
  

 3 

 (d) If the difference between: 
 1. (i) the fee paid under Section 5.3 of the Insurance Management Agreement for the four Agreement Quarters of the
Subject Agreement Year, and (ii) the fee recalculated under Section 3(c) for the Subject Agreement Year is positive, the Manager shall pay such amount to the Company. 
 2. (i) the fee paid under Section 5.3 of the Insurance Management Agreement for the 4 Agreement Quarters of the Subject
Agreement Year, and (ii) the fee recalculated under Section 3(c) for the Subject Agreement Year is negative, the Company shall pay the absolute value of such amount to the Manager. 
 (e) If payment under Section 3(d) is due, such payment shall be made forthwith but in no event no later than by the end
of the Agreement Quarter following the recalculation. 
 (f) This Section 3 shall remain in effect during
the term of the Insurance Management Agreement. 
 4. Governing Law; Arbitration 
 (a) This Side Letter shall be governed by and construed and enforced in accordance with the laws of Bermuda. 
 (b) All disputes, controversies or claims arising out of, relating to, or in connection with, this Side Letter, or the
breach, termination or validity hereof, shall be finally settled by arbitration. The arbitration shall be conducted in accordance with the Bermuda International Conciliation and Arbitration Act 1993, except as same may be modified herein or by
mutual agreement of the parties. The seat of the arbitration shall be Bermuda, and it shall be conducted in the English language. 
 (c) Unless the parties otherwise agree, the arbitration shall be conducted by three arbitrators. Each party shall nominate one arbitrator by written notice to the other party and the two arbitrators shall
appoint the third arbitrator who shall act as chairperson. Such nominations of the party-nominated arbitrators shall be made within 14 days of the service of a written demand for arbitration by either party. In the event that a party does not
nominate an arbitrator within such 14-day period or the two arbitrators are unable to agree on the third arbitrator within 14 days after appointment of the party-appointed arbitrator or if the third arbitrator declines to act, the appointment of the
remaining arbitrator(s) shall be made by the London Court of International Arbitration at the request of either party. The arbitrators nominated or appointed shall be

  

 4 

 
impartial and, unless the parties otherwise agree, either attorneys with specialist knowledge of the reinsurance and insurance industry of at least 10 years admission to the bar, or reinsurance
and insurance industry professionals of at least 10 years standing. Any objection to the qualifications of any arbitrator must be made, if at all, within 10 days of notice of the nomination or appointment of such arbitrator. 
 (d) The arbitral tribunal shall decide the procedure and time periods for the arbitral proceedings so as to resolve the
dispute, controversy or claim as soon as practicable. 
 (e) The arbitral award shall be in writing, shall state
reasons for the award, and be final and binding on the parties. The award may include an award of costs, including reasonable attorneys’ fees and disbursements. Judgment on the award may be entered by any court having jurisdiction thereof or
having jurisdiction over the parties or their assets. 
 (f) In order to facilitate the comprehensive resolution
of related disputes, and upon request of any party to the arbitration proceeding, the arbitration tribunal may, within 90 days of its appointment, consolidate the arbitration proceeding with any other arbitration proceeding involving any of the
parties hereto relating to this Side Letter, the Stock Purchase and Subscription Agreement, the Max Re Parent Agreement and the other Ancillary Agreements (as defined in the Stock Purchase and Subscription Agreement). The arbitrators shall not
consolidated such arbitrations unless they determine that (i) there are issues of fact or law common to the two proceedings so that a consolidated proceeding would be more efficient than separate proceedings, and (ii) no party hereto would
be prejudiced as a result of such consolidation through undue delay or otherwise. In the event of different rulings on this question by the arbitration tribunal constituted hereunder and the tribunal constituted under the Stock Purchase and
Subscription Agreement, the ruling of the panel appointed under the Stock Purchase and Subscription Agreement shall control. In the case of a consolidated proceeding, the arbitrators in that proceeding shall be named as provided in the Stock
Purchase and Subscription Agreement. 
  

 5 

 Please acknowledge your agreement to the foregoing in the space set forth below. 

 

			
	 Sincerely,
  
 Max Re Ltd.

		
	By:	 	/s/ Robert J. Cooney
	Name:	 	Robert J. Cooney
	Title:	 	President
	
	Max Re Managers Ltd.
		
	By:	 	/s/ Keith Hynes
	Name:	 	Keith Hynes
	Title:	 	President

  

			
	 ACCEPTED AND AGREED:
  
 Bayerische Hypo- und Vereinsbank AG

		
	By:	 	/s/ Thomas J. Glynn
	Name:	 	Thomas J. Glynn
	Title:	 	Managing Director
		
	By:	 	/s/ Jon D. Karnofsky
	Name:	 	Jon D. Karnofsky
	Title:	 	Managing Director
	
	Grand Central Re Limited
		
	By:	 	/s/ Stephan Bub
	Name:	 	Stephan Bub
	Title:	 	Chairman
		
	By:	 	/s/ Thomas J. Glynn
	Name:	 	Thomas J. Glynn
	Title:	 	Deputy Chairman

  

 6 

 INSURANCE MANAGEMENT AGREEMENT 
 AMENDMENT AGREEMENT NO. 1 
 This Amendment Agreement (this
“Agreement”) is entered into as of May 3, 2002, by and among Max Re Managers Ltd. (the “Manager”), Max Re Capital Ltd. (the “Max Re Parent”), Bayerische Hypo- Und Vereinsbank AG (“HVB”) and Grand Central
Re Limited (the “Company”). 
 RECITALS 
 WHEREAS, the Manager, Max Re Parent, HVB and the Company are parties to an Insurance Management Agreement, dated as of May 10, 2001, pursuant to which the Manager provides certain management services
in respect of the Company’s Business. 
 WHEREAS, the parties wish to amend the Insurance Management Agreement to make
clear that the delivery and performance of other agreements by the Manager will not violate certain provisions contained in the Insurance Management Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants of the parties, and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereby
agree as follows: 
  

	 	1.	Definitions. Section 1.1. The definition for Gross Premium Target Amounts, shall be $250 million for the calendar year 2002. 

  

	 	2.	Miscellaneous. 

  

	 	(a)	Successors. This Agreement shall be binding upon the parties hereto and their successors and permitted assigns. 

  

	 	(b)	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Bermuda. 

  

	 	(c)	The provisions of this Agreement shall, to the greatest extent possible, be interpreted in such a manner to comply with applicable law, but if any provision hereof is,
notwithstanding such interpretation, determined to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby but will remain in full force and effect and binding upon the parties hereto.

  

	 	(d)	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute the
same instrument. 

  

 IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the 16 day of
December, 2002. 
  

			
	MAX RE MANAGERS LTD.
		
	By:	 	 
		 	Name:  Keith Hynes
		 	Title:    President
	
	MAX RE CAPITAL LTD.
		
	By:	 	 
		 	Name:  Robert J. Cooney
		 	Title:    President
	
	 BAYERISCHE HYPO- UND
 VEREINSBANK AG

		
	By:	 	 
		 	Name:  Thomas J. Glynn
		 	Title:    Managing Director
		
	By:	 	 
		 	Name:  Christopher Wrenn
		 	Title:    Managing Director
	
	GRAND CENTRAL RE LIMITED
		
	By:	 	 
		 	Name:  W. Dave Brining
		 	Title:    Authorised Signatory
		
	By:	 	 
		 	 Name:  Nancy da Silva

		 	 Title:    Authorised Signatory

  
  

 GRAND CENTRAL RE LIMITED 
 Max Re House 
 2 Front Street 
 Hamilton HM 11 
 Bermuda 
 As of November 22, 2005 
 Mr. Keith Hynes 
 President 
 Max Re Managers Ltd, 
 Max Re House 
 2 Front Street 
 Hamilton HM 11 
 Bermuda 
 Dear Keith: 
 Reference is made to the Insurance Management Agreement dated as of May 10, 2001 executed by and among Max Re Managers Ltd., Max Re
Capital Ltd., Bayerische Hypo- und Vereinsbank AG and Grand Central Re Limited (“GCRe”), as subsequently amended by (a) Letter Agreement dated May 10, 2001 and (b) Amendment No. 1 dated as of December 18, 2002 (as
so amended, such agreement is hereinafter collectively referred to as the “Insurance Management Agreement” or the “IMA”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Insurance
Management Agreement. 
 In accordance with our discussions, it is hereby agreed by and between all of the parties to the IMA,
notwithstanding any provision contained therein to the contrary, that the term of the IMA is hereby extended for three months, commencing January 1, 2006 and ending March 31, 2006 and that any party to the IMA may, by written notice to the
other parties given at least thirty (30) days prior to the scheduled expiration of the term, either (a) extend the IMA for an additional three month term or (B) terminate the IMA, effective as of the end of the then-current three
month term. In the event that no party elects to renew or terminate the IMA prior to the end of a scheduled three month term, the IMA shall automatically renew for an additional three month term hereunder, subject to the terms of this letter
agreement. 
 All financial and related reporting by Max Re Managers Ltd. to Grand Central Re Limited under the IMA shall be
provided quarterly, within forty-five (45) days of the last business day of such quarter. In consideration of the premises contained herein, the total compensation payable by Grand Central Re Limited to Max Re Managers Ltd. for all

 
services rendered under the MA shall be Two Hundred Thousand Dollars ($200,000) for the initial three month extended term and for any subsequent three month extended term, if an extension is
effected hereunder (whether by notice or automatically, as provided herein) (the “IMA Fee”). In the event that Max Re Ltd. or any affiliate purchases, acquires, commutes or transfers to a third party during 2006 all of GCRe’s
(a) life and annuity policies or (b) property and casualty policies then in force without purchasing all such other GCRe policies then in force, GCRe shall not be obligated to pay Max Re Managers Ltd. the Additional Payment, as
defined below. 
 Notwithstanding the foregoing, the IMA Fee shall be reduced prospectively, pro rata, to $75,000 per
three month term or extension, as applicable (the “Reduced IMA Fee”), effective the date on which Max Re Ltd. or any affiliate purchases, acquires, commutes or transfers to a third party all of GCRe’s (a) life and annuity
policies and (b) property and casualty policies then in force. The Reduced IMA Fee shall thereafter apply until such time as GCRe no longer requires an insurance manager, the IMA is terminated hereunder or the parties agree otherwise in
writing. 
 In the event that GCRe rejects bona fide written offers delivered by Max Re Ltd. or any
affiliate in calendar 2006 to purchase, acquire, commute or transfer to a third party all of GCRe’s (a) life and annuity policies and (b) property and casualty policies then in force, GCRe shall pay to Max Re Managers Ltd., as
an additional one-time 2006 insurance management fee (the “Additional Payment”), the sum of $500,000 no late than February 15, 2007. In such event, the parties shall mutually agree in writing on any extension of the IMA beyond
December 31st, 2006. 
 Payment of the IMA Fee shall be made by GCRe to Max Re Managers Ltd. within forty-five (45) calendar days of the last business day of
each quarterly term, following receipt by GCRe of a written invoice respecting same. 
 With the exception of the provisions set
forth herein, the IMA shall in all respects remain unchanged and in full force and effect. 
 This letter agreement may be
executed in counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same instrument. 
  

 2 

 IN WITNESS WHEREOF, the undersigned parties have executed this letter agreement as of
the above-captioned date by their respective duly authorized representatives. 
  

			
	MAX RE MANAGERS LTD.
		
	By:	 	/s/ Keith Hynes
	Name:	 	Keith Hynes
	Title:	 	President

  

			
	MAX RE CAPITAL LTD.
		
	By:	 	/s/ Robert J. Cooney
	Name:	 	Robert J. Cooney
	Title:	 	President

  

			
	BAYERISCHE HYPO- UND VEREINSBANK AG
		
	By:	 	/s/ Jan Kupfer
	Name:	 	Jan Kupfer
	Title:	 	Managing Director
		
	By:	 	/s/ Matthew Dunn
	Name:	 	Matthew Dunn
	Title:	 	Managing Director

  

			
	GRAND CENTRAL RE LIMITED
		
	By:	 	/s/ Matthew Dunn
	Name:	 	Matthew Dunn
	Title:	 	Chairman
		
	By:	 	/s/ Juergen Wienes
	Name:	 	Juergen Wienes
	Title:	 	Deputy Chairman

  

 3Investment Management Agreement, dated as of June 26, 2003

 Exhibit 10.31 
 INVESTMENT MANAGEMENT AGREEMENT – FIXED INCOME 
 THIS
AGREEMENT, dated as of the 26 day of June, 2003, by and between Asset Allocation & Management Company, L.L.C, an Delaware limited liability company having its principal place of business at Thirty North LaSalle Street, 35th Floor, Chicago,
Illinois, 60602 (herein “AAM”), and Max Re Ltd., having its principal place of business at Max Re House, 2 Front Street, Hamilton, HM 11 Bermuda (herein “Client”). 
 In consideration of the promises set forth in this Agreement, AAM and Client agree as follows: 
  

	1.	Authorization As Investment Advisor. 

 Subject to the terms and conditions set forth herein, Client hereby designates and appoints AAM as investment adviser for the management of securities with regard to the cash and securities listed in
Exhibit A, which is attached hereto, and such other cash and securities (other than those identified as Unmanaged Assets, as defined below) as shall be subsequently contained in Client’s account by reason of purchases, sales, exchanges,
withdrawals, additions or otherwise. Assets placed in the Client’s account by the Client that are not managed by AAM are either separately identified on Schedule A or shall be identified subsequently (“Unmanaged Assets”). AAM shall
include Unmanaged Assets in its periodic reports to the Client, but will exclude their value in calculating AAM’s advisory fees. 
 AAM shall have full authority and discretion to supervise the management of said cash and securities (other than Unmanaged Assets), including, without limitation, authority and discretion to select, purchase and sell securities and to
determine timing and means of execution for such selection, sales or purchases, in accordance with the investment guidelines set forth on Exhibit B hereto (the “Investment Guidelines”). The Client may modify the Investment Guidelines from
time to time; provided, that, any such modification shall be effective only upon the provision of notice of such modification by the Client in accordance with the notice provisions herein. 
  

	2.	Advisory Fees. 

 For its investment advisory services, AAM shall be compensated based on a percentage of the value, as determined below, of all assets in the Client’s account (excluding Unmanaged Assets) as of the last trading day of each calendar
month. The applicable percentages for calculating the advisory fee are set forth on the schedule of fees attached hereto. Upon sixty (60) days prior written notice to Client, AAM may amend or change the schedule of compensation. 
 AAM will value all of the securities in the portfolio on a monthly basis utilizing reputable industry standard pricing services or direct
dealer quotes. Where the market value of any security is not readily available from standard pricing sources, AAM will price the security through multiple direct dealer quotes. 

 Advisory fees will be payable quarterly in arrears within thirty (30) days after
receipt of AAM’s invoice by the Client. Any advisory fee payable for less than a full calendar quarter shall be pro-rated. Upon any termination of this Agreement other than at the end of a calendar quarter, the advisory fee shall be calculated
as of the termination date. 
  

	3.	Term of Agreement. 

 This Agreement shall be effective as of the date of this Agreement and shall continue in effect until terminated by either party upon thirty (30) days prior written notice. 
 In the event of termination of this Agreement, this Agreement, except for Section 4 (Limitation of Liability), Section 12
(Confidentiality), Section 14 (Arbitration), and this Section 3 (Term of Agreement), shall immediately become void and have no further force or effect. Section 9 (Confidentiality) shall survive for a one year period following the
termination date. Termination of this Agreement will not affect the Client’s obligation to pay advisory fees in accordance with Section 2 (Advisory Fees) through the date of termination. 
 Upon termination of this Agreement and upon specific written request, AAM shall within twenty (20) business days return to the Client
all books and records of the Client, and all other information relating to the Client’s account then in the possession of AAM, except for any software or other intellectual property that is proprietary to, or owned or licensed by, AAM or any of
its affiliates, which shall remain the property of AAM. 
  

	4.	Limitation of Liability. 

 AAM shall be liable to and indemnify the Client to the extent any loss, liability, or damage results from the negligence or bad faith of AAM, violation of applicable law by AAM or the reckless disregard by AAM of its obligations and duties
under this Agreement. 
 Except as set forth in the immediately preceding paragraph of this Section 4 (Limitation of
Liability), neither AAM nor any of its employees, stockholders, members, managers, or any officers, or directors shall be liable hereunder for any action performed or omitted to be performed or for any errors or judgments in connection with
AAM’s services rendered under this Agreement. The federal securities laws impose liabilities under certain circumstances on persons who act in good faith, and therefore, nothing herein shall in any way constitute a waiver or limitation of any
rights which Client may have under any federal securities laws. 
  

 2 

	5.	Selection of Brokers. 

 Where AAM places orders for the execution of transactions, AAM may select such brokers and dealers for execution on such markets and at such process or commission rates as AAM determines in its good faith judgment to be in the best
interests of Client. AAM may take into consideration in the selection of such brokers and dealers not only the available prices and rates of brokerage commissions, but also other relevant factors (such as, without limitation, execution capabilities
and the value of its ongoing relationship with such brokers and dealers) without having to demonstrate that such factors are of a direct benefit to Client. 
  

	6.	Custodianship of Cash and Securities. 

 Under no circumstances shall AAM act as custodian for or hold Client’s cash and securities. AAM may issue instructions to the client’s custodian as may be appropriate in connection with the
settlement of transactions initiated by AAM hereunder. 
  

	7.	Duties of AAM. 

 AAM shall manage the Client’s account in accordance with the Investment Guidelines; provided, however, that AAM will not be responsible for giving the Client investment advice or taking any other action with respect to Unmanaged
Assets. 
 At reasonable times and upon reasonable notice, AAM shall provide access to all books, records, accounts, facilities,
and personnel that relate specifically to the performance of its obligations to the Client under this Agreement to the internal and independent auditors and regulators of the Client. 
 Within six (6) days following the end of each month, AAM shall send to the Client monthly written reports showing the identity, cost and
current market value of the assets in the Client’s account and each transaction made for the Client’s account during the period covered by the report. 
 At the close of each business day, AAM shall provide to the Client an electronic trade blotter detailing the transaction that occurred during such business day, in a form reasonably agreed by the parties.

 AAM, a limited liability company, shall notify Client of any substantial change subsequent to the date of this Agreement in
the ownership of the limited liability company. Such notification shall be made in accordance with the notice provisions herein. 
  

	8.	No Assignment. 

 This Agreement and the rights and obligations hereunder shall not be subject to assignment by AAM except with the written consent of Client. 
  

 3 

	9.	Representations: 

 Each party hereto represents that (a) the execution of and performance contemplated under this Agreement do not and will not violate or abridge any obligation or duty of such party, (b) this Agreement has been authorized by
appropriate action and when executed and delivered will be binding upon such party in accordance with its terms, and (c) it will deliver to the other party such evidence of such authority as such other party may reasonably require, either by
way of a certified resolution or otherwise. 
 AAM represents, warrant and covenants to the Client that (i) it is, and will
remain during the term of this Agreement, a registered investment adviser under the Investment Advisers Act of 1940, as amended; and (ii) it currently has, and agrees that it will maintain, the skilled personnel, computer hardware and software,
and other facilities necessary to prepare the reports and perform the services required by this Agreement. 
  

	10.	Client Directions. 

 The names and specimen signatures of each individual who is authorized to give directions to AAM on the Client’s behalf under this Agreement are set forth on Exhibit C, as may be amended from time to time by the Client in accordance
with the notice provisions herein. Directions received by AAM from the Client must be signed by at least one such person. If AAM receives directions from the Client that are not signed by a person that AAM reasonably believes is authorized to do so,
the Client shall not be required to comply with such directions until it verifies that the directions are properly authorized by the Client. 
  

	11.	Employees of AAM. 

 Without the express prior written consent of AAM, Client shall not directly or indirectly employ or solicit for employment any employee of AAM, or its affiliates, during the term of this Agreement and for a period of 12 months after
termination of the Agreement; provided, however, that the foregoing provision will not prevent the Client from employing any such person if such person contacts the Client on his or her own initiative in response to a published general
solicitation not specifically targeted at such person. 
  

	12.	Confidentiality. 

 From time to time in the course of the performance of this Agreement, the Client and AAM will be providing each other with certain financial, strategic and other information. Except as required by law, regulation, stock exchange rule or
legal process and except as otherwise permitted by this Agreement, all such information of a non-public nature that is obtained by one party pursuant to this Agreement shall be held in confidence by such party and may not be disclosed to any other
person without the prior written consent of the other party. 
  

 4 

	13.	Notices. 

 All
notices and other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered as properly given or made if (i) sent by overnight delivery by a nationally recognized air courier
service, or (ii) mailed by registered or certified mail, return receipt requested, and if addressed to the respective address listed below: 
  

					
	A.	  	If to the Client, to:	  	Max Re Ltd.
		  		  	Max Re House, 2 Front Street
		  		  	Hamilton, BM HM KX
		  	Attention:	  	Keith S. Hynes
		  		  	Executive Vice President & CFO
			
	B.	  	If to AAM, to:	  	Asset Allocation & Management Company, L.L.C.
		  		  	Thirty North LaSalle Street, 35th Floor
		  		  	Chicago, IL 60602
			
		  	Attention:	  	[Randall K. Zeller
		  		  	President and Chief Executive Officer]

 All notices will be deemed effective upon receipt. Any party may change its address
for the receipt of notices by providing notice, in the manner provided in this Section 13, to each other party. 
  

	14.	Arbitration. 

 In
the event of any dispute, controversy or claim which relates to, arises out of, or is connected with this Agreement (including, without limitation, the creation, validity, interpretation, breach or termination of this Agreement), each party shall
designate an officer whose task it will be to meet and in good faith resolve the matter amicably. Any such matter which has not been mutually resolved by the parties shall, on the written demand be either party to the other party, be determined and
settled in Hamilton, Bermuda by a panel of three arbitrators in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The award entered by the arbitrators shall be final and binding on both parties. Such award
shall specify the factual and legal basis for the award, shall not include any multiple, punitive or exemplary damages, and shall remain confidential. The cost of the arbitration shall be borne equally by the Client and AAM; each party shall bear
its own expenses (including counsel fees) incurred in connection with the arbitration 
  

	15.	Complete Agreement. 

 This Agreement contains the full agreement between AAM and the Client and supersedes any and all agreements, oral or written, which may have been heretofore entered into between AAM and the Client. 
  

 5 

	16.	Amendment. 

 No
amendment to this Agreement will be effective unless in writing and signed by each of the parties and no waiver of compliance with any provision or condition, and no consent provided for in this Agreement, shall be effective unless in a writing duly
executed by the party sought to be charged with such waiver or consent; provided, however, that the Client may amend Exhibits A, B and C by providing notice to AAM in accordance with Section 13 herein. 
  

	17.	Governing Law. 

 This Agreement shall be construed and enforced in accordance with the laws of the State of New York, without reference to the choice of law rules thereof. 
  

	18.	Severability. 

 In
the event that any provision or condition in this Agreement shall be invalid, illegal, or unenforceable under applicable law of mandatory application, the validity, legality, and enforceability of that provision or condition in other instances and
of the remaining provisions and conditions shall not in any way be affected thereby. 
  

	19.	Headings. 

 Section
headings are for convenience of reference only and shall not affect the construction of this Agreement. 
  

	20.	Counterparts. 

 This Agreement may be executed in two or more counterparts, each of which when executed shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. 
  

 6 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the day, month, and year above written.

  

									
	AAM:	 		 	ASSET ALLOCATION & MANAGEMENT COMPANY, L.L.C.
					
		 		 		 	By:	 	 /s/ Randall K. Zeller

		 		 		 		 	Randall K. Zeller, President & Chief Executive Officer
			
	CLIENT:	 		 	MAX RE LTD.
					
		 		 		 	By:	 	 /s/ Peter A. Minton

		 		 		 		 	Peter A. Minton, Executive Vice President & Chief Risk Officer

  

 7

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