Document:

Exhibit 10.1

 

EMPLOYMENT
AGREEMENT TERMINATION

AND RELEASE
AGREEMENT

 

Dated
as of December 30, 2018

 

This Employment Agreement
Termination and Release Agreement (this “Agreement”) is entered into between Avadel Management Corporation,
a Delaware corporation (the “Employer”), and Avadel Pharmaceuticals plc, an Irish public limited company and
the parent of the Employer (the “Parent” and, together with the Employer, the “Companies”),
on the one hand, and Michael S. Anderson, an individual resident of the State of South Carolina (the “Executive”),
on the other hand. The Employer, the Parent and the Executive may be referred to herein individually as a “Party”
and collectively as the “Parties.” This Agreement will become effective on the day following the seven-day Revocation
Period described in Section 6 hereof (the “Effective Date”), provided that the Executive does not revoke
the Agreement within the Revocation Period.

 

WHEREAS, the Employer and the Executive
are parties to that certain Employment Agreement dated as of August 15, 2017 (the “Employment Agreement”); and
the Parties wish to set forth their mutual agreement to terminate the Employment Agreement and the Executive’s employment
thereunder on the terms set forth herein.

 

NOW THEREFORE, in consideration of the premises,
mutual promises, and agreements of the Parties set forth in this Agreement, and other good and valuable consideration, the receipt
and sufficiency of which the Parties hereby acknowledge, the Parties agree to the following:

 

1. Termination. Except as expressly
provided in this Agreement, the Parties acknowledge and agree that:

 

(i) the Employment Agreement and
the Executive’s employment thereunder are hereby terminated effective as of the date the Executive executes this Agreement
(the “Termination Date”) notwithstanding any provisions hereof to the contrary and whether or not this Agreement
becomes effective, except that the Executive shall continue to be subject to and bound by Section 4 of the Employment Agreement,
and Sections 2.3, 2.5(c), 3, 4 and 5 of the Employment Agreement shall also remain in full force and effect following the execution
and delivery of this Agreement and the Effective Date and the termination of the Executive’s employment;

 

(ii) from and after the Termination
Date, the Executive shall have no further privileges with or duties or obligations to the Parent, the Employer or any of the Parent’s
other direct or indirect subsidiaries (such subsidiaries, together with the Parent and the Employer, collectively, the “Group”),
and shall not represent himself as being an employee, officer, director, agent or representative of any member of the Group for
any purpose; and

 

(iii) the Executive resigns as
a member of the Board of Directors of the Parent and any member of the Group as of the Termination Date.

 

     

     

    

 

For the avoidance of doubt, the Executive
acknowledges that he is no longer the Chief Executive Officer of the Parent.

 

2. Return
of Property. The Executive represents and warrants that he has returned to the Employer all property of any member of
the Group, including identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones,
hand-held electronic devices, credit cards, electronically stored documents or files, physical files, and any other Group property
in the Executive’s possession (other than documents pertaining to the Executive’s own compensation and benefits). Such
property also includes, without limitation, any originals, copies, and abstracts containing any Restricted Information (as defined
in the Employment Agreement) in the Executive’s possession or control.

 

3. Executive
Representation. The Executive hereby represents and warrants to the Companies that the Executive has not engaged in
any unlawful conduct relating to the business of the Group.

 

4. Separation
Benefits.

 

(a) Provided that the Executive executes
this Agreement and returns it to the Companies as described in Section 6 hereof within twenty-one (21) days after December
21, 2018 (the date this Agreement was presented to him) and does not revoke this Agreement within the Revocation Period described
in Section 6 hereof, the Employer shall pay or provide (as applicable) to the Executive the following benefits (collectively,
the “Separation Benefits”):

 

(i) A cash payment of $899,106.00, representing
1.5 times the Executive’s final annual base salary, which shall be paid to the Executive (less required withholdings) in
eighteen (18) consecutive, equal monthly installments in accordance with the Employer’s normal payroll practices, with such
installments to be no less frequently than monthly, commencing on the first payroll date following the Termination Date provided,
however, that any installments that the Executive would otherwise be entitled to receive under this Section 4(a)(i)
prior to the Effective Date shall be accumulated and paid in a lump sum on the first monthly payroll date occurring after the Effective
Date.

 

(ii) A cash payment of $48,495.50 in
exchange for the Executive’s cooperation as set forth in Section 7(a) hereof, to be paid to the Executive (less required
withholdings) on the first monthly payroll date occurring after the one-month anniversary of the Effective Date.

 

(iii) The Parent will waive the post-termination
limitation on the exercise period under any of the Executive’s vested options under equity incentive plans relating to the
Parent’s equity securities but the Executive will still be bound by the original, ten-year expiration date of the options;
provided, however, that, for the avoidance of doubt, all awards and options with respect to the Parent’s equity
securities under any such incentive plans that have not vested as of the Termination Date shall no longer be subject to further
vesting and shall be cancelled effective as of the Termination Date.

 

    2 

     

    

 

(iv) The Employer shall provide the
Executive an automobile allowance of $1,000.00 per month for eighteen (18) months, which shall be paid to the Executive in one
lump sum of $18,000.00 (less required withholdings) on the first monthly payroll date after the one-month anniversary of the Effective
Date.

 

(v) If the Executive and/or his spouse
timely and properly elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
the Employer shall pay the COBRA premiums on a monthly basis on behalf of the Executive and his spouse (at coverage levels in effect
immediately prior to the Termination Date) until the earlier of: (i) eighteen (18) months following the Termination Date and (ii)
when the Executive (and/or his spouse, as applicable) becomes covered under another employer’s health plan or otherwise become
ineligible for COBRA.

 

(b) The Executive understands, acknowledges,
and agrees that the Separation Benefits exceed what the Executive is otherwise entitled to receive upon a termination of the Employment
Agreement and any related separation from or termination of employment. Nothing in this Agreement shall be deemed or construed
as an express or implied policy or practice of the Group to provide these or other benefits to any individuals other than the Executive
and his spouse.

 

(c) Notwithstanding any other provision
of this Agreement, the Executive shall be entitled to receive (i) the Executive’s annual base salary through the Termination
Date which remains unpaid, (ii) any accrued but unpaid bonuses for any completed fiscal year of either Company due to the Executive
under any Company benefit plan, (iii) any reimbursements for expenses incurred but not yet paid, (iv) any accrued but unpaid vacation
pay due to the Executive and (v) any benefits which pursuant to the terms of any plans, policies or programs have been earned by
or become payable to the Executive, but which have not yet been paid to the Executive. The foregoing amounts will be paid to the
Executive in a lump sum (less withholdings) as soon as administratively practicable (and no later than forty-five (45) days) after
the Termination Date, except that any benefits owed to the Executive under the terms of any Company benefit plans, policies or
programs shall be paid in accordance with the terms of such Company benefit plans, policies or programs. Notwithstanding the foregoing,
the Executive shall not be entitled to receive, and hereby agrees to forfeit, any severance benefits that the Executive otherwise
might be eligible to receive under any other Company benefit plans, policies or programs.

 

5.
Release; Waiver and Covenant Not to Sue.

 

(a) Release and Waiver of Claims by the
Executive. The Executive, on behalf of himself and his heirs, executors, representatives, agents, insurers, administrators,
successors, and assigns (collectively, the “Releasors”), except only as may be expressly provided in this Agreement
(including but not limited to in Section 5(d) hereof), irrevocably and unconditionally fully and forever releases, waives,
and discharges the Parent, the Employer and each other member of the Group, their respective affiliates, predecessors, successors,
and assigns, and their respective officers, directors, employees, shareholders, trustees and partners, in their corporate and individual
capacities (collectively, the “Releasees”), from any and all claims, demands, actions, causes of actions, obligations,
judgments, rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys’ fees) of any kind
whatsoever (collectively, “Claims”), whether known or unknown, from the beginning of time through the Effective
Date, including, without limitation, any claims under any federal, state, local or foreign law, that Releasors may have, have ever
had, or may in the future have arising out of, or in any way related to the Executive’s hiring, salary or other compensation,
benefits, employment, termination or separation from employment with or service to the Parent, the Employer and each other member
of the Group (including termination of the Employment Agreement) and any actual or alleged act, omission, transaction, practice,
conduct, occurrence, or other matter, including, but not limited to:

 

    3 

     

    

 

(i) any and all claims under Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Family and Medical Leave Act (with respect to existing
but not prospective claims), the Equal Pay Act, the Executive Retirement Income Security Act, (with respect to unvested benefits),
the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Worker Adjustment and Retraining Notification Act, the National
Labor Relations Act, the Age Discrimination in Employment Act, the Uniform Services Employment and Reemployment Rights Act, the
Genetic Information Nondiscrimination Act, and any other federal, state, local, or foreign law (statutory, regulatory, or otherwise)
that may be legally waived and released;

 

(ii) any and all claims for compensation
of any type whatsoever, including but not limited to claims for salary, wages, bonuses, commissions, incentive compensation, vacation,
and severance that may be legally waived and released, including, but not limited to, any amounts owed to the Executive under the
Employment Agreement;

 

(iii) any and all claims arising under
tort, contract, and quasi-contract law, including but not limited to claims of breach of an expressed or implied contract, tortious
interference with contract or prospective business advantage, breach of the covenant of good faith and fair dealing, promissory
estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm, wrongful
or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, and negligent or intentional infliction of emotional
distress; and

 

(iv) any and all claims for monetary
or equitable relief, including but not limited to attorneys' fees, back pay, front pay, reinstatement, experts’ fees, medical
fees or expenses, costs, and disbursements.

 

By referencing the laws above, the
Companies do not admit to coverage of the Group or the Releasees under any of these laws. The Executive represents that the Executive
has not assigned or transferred, or purported to assign or transfer, any of the claims released in this Section 5(a) or
any portion thereof or interest therein to any third party prior to the Effective Date.

 

    4 

     

    

 

(b) Release and Waiver of Claims by the
Company. In exchange for the agreement of the Executive as set forth herein, the Company and the Group, irrevocably and unconditionally
fully and forever release, waive, and discharge the Executive from any and all Claims, whether known or unknown, from the beginning
of time through the Effective Date, without limitation, any claims under any federal, state, local or foreign law, that the Company
or the Group may have, have ever had, or may in the future have against Executive arising out of, or in any way related to the
Executive’s employment with or service to the Company and the Parent, except as provided in Section 5(e) hereof.

 

(c) Settlement, Accord, Satisfaction
and Covenant Not to Sue. The Executive acknowledges that this Agreement constitutes a full settlement, accord and satisfaction
of all Claims covered by the provisions of Section 5(a) hereof. The Executive covenants and agrees not to sue or file any
Claim against any of the Releasees in any court of law with respect to any Claim released by Section 5(a) hereof. The Executive
also agrees to waive the right to receive future monetary recovery directly from the Companies or Releasees, including payments
by any member of the Group that result from any complaints or charges that the Executive files with any governmental agency (including
the Equal Employment Opportunity Commission) or that are filed on the Executive’s behalf.

 

(d) Claims Not Released by the Executive.
Notwithstanding the foregoing, it is understood by the Parties that the Executive is not releasing any claims that may arise under
the terms of this Agreement or that may arise out of events occurring after the Effective Date or that may not be released as a
matter of law. The Executive also is not releasing claims to any benefits that the Executive already is entitled to receive under
any of the employee benefit plans of the Group, or any right the Executive has to benefits under workers’ compensation laws,
unemployment compensation laws or COBRA. However, the Executive understands and acknowledges that nothing herein is intended to,
nor shall it be construed to, require any member of the Group to institute or continue in effect any particular plan or benefit
sponsored by the Employer or the Parent. The Companies hereby reserve the right to amend or terminate any compensation or benefit
programs of any member of the Group at any time in accordance with the procedures set forth in such plans or programs.

 

(e) Claims Not Released by the Company.
Notwithstanding the foregoing, it is understood by the Parties that the Company is not releasing any claims that may arise under
the terms of this Agreement or that may arise out of events occurring after the Effective Date or that may not be released as a
matter of law. The Company also is not releasing claims against Executive associated with any criminal action or willful misconduct
by and of the Executive.

 

6. Consideration
Period and Right to Revoke. The Parties acknowledge and agree that the Executive has been given at least twenty-one
(21) calendar days to consider the terms of this Agreement (although the Executive may execute this Agreement at any time within
the 21-day period). The Executive understands that he may revoke the Agreement by notifying the Companies in writing of such revocation
within seven (7) calendar days following execution thereof (the “Revocation Period”). If the Executive chooses
to revoke this Agreement, the Executive must provide written notification of the revocation to Phillandas T. Thompson at the Employer
by email/fax/overnight delivery (in accordance with the notices provision set forth in Section 9(j) hereof) before the end
of the Revocation Period and such notice must be received by the close of business on the seventh day following the date the Executive
signed this Agreement to be effective. If the Executive revokes this Agreement within the Revocation Period, this Agreement shall
not become effective and the Executive will not receive the Separation Benefits described in Section 4 of this Agreement.
If the Executive does not revoke the Agreement within the Revocation Period, the Agreement will be binding upon the Executive on
the Effective Date (as defined in the initial paragraph of this Agreement) and will be irrevocable.

 

    5 

     

    

 

7. Cooperation.

 

(a) The Group may desire to consult with
the Executive for a limited time following the date hereof with respect to the transition of his duties and certain other matters.
Accordingly, for thirty (30) days following the Termination Date, to the extent reasonably requested by the Employer, the Executive
shall consult with and cooperate with the Group in connection with such matters as the Group may request which relate to the Executive’s
prior service to the Group. The Parties agree that (i) any services the Executive may provide shall not result in the extension
of the Executive’s employment beyond the Termination Date and (ii) in no event will the level of services that the Executive
will provide after the Termination Date exceed twenty percent (20%) of the level of services that the Executive has provided over
the immediately-preceding thirty-six (36) month period.

 

(b) The Executive agrees that the Executive
shall, to the extent reasonably requested in writing, cooperate with the Group in any pending or future litigation in which any
member of the Group is a party, and regarding which the Executive, by virtue of his relationship with the Group, has factual knowledge
or information relevant to said litigation. The Executive further agrees that in any such litigation, the Executive shall, without
the necessity for subpoena, provide, in any jurisdiction in which the member of the Group requests, truthful testimony relevant
to said litigation.

 

(c)
The Employer shall reimburse the Executive for reasonable expenses (including attorney fees) incurred in connection with
the cooperation described in this Section 7. Any expenses incurred with this cooperation shall be paid within sixty (60)
days after the Executive submits such expenses to the Employer.

 

8. Remedies.
If the Executive fails to comply with any of the terms of this Agreement or Sections 4.1, 4.2, 4.3, or 4.4 of the Employment Agreement,
the Employer may, in addition to any other remedies it may have, reclaim the gross amount (before withholding taxes) of any Separation
Benefits paid to or on behalf of the Executive under the provisions of this Agreement or terminate any Separation Benefits that
are later due under this Agreement, without waiving the releases provided in it.

 

    6 

     

    

 

9.
Miscellaneous.

 

(a) Assignment. The Companies may
assign their rights under this Agreement to any entity that assumes the Companies’ obligations hereunder in connection with
a merger, consolidation or sale or transfer of all or substantially all of the Companies’ assets to such entity. This Agreement
shall inure to the benefit of the Group and its successors and assigns. The Executive may not assign this Agreement in whole or
in part. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment.

 

(b) Governing
Law: Jurisdiction and Venue. This Agreement and all matters arising out of or relating to this Agreement, whether sounding
in contract, tort, or statute, for all purposes shall be governed by and construed in accordance with the laws of the State of
Missouri (including its statutes of limitations) without regard to any conflicts of laws principles that would require the laws
of any other jurisdiction to apply.

 

(c) Entire
Agreement. This Agreement contains all of the understandings and representations between the Companies and the Executive
relating to the subject matter hereof and supersedes all prior and contemporaneous understandings, discussions, agreements, representations,
and warranties, both written and oral, regarding such subject matter, including, without limitation, the Employment Agreement which
shall be deemed terminated as of the Effective Date, except Sections 2.3, 2.5(c), 3, 4, and 5 of the Employment Agreement. For
the avoidance of doubt, it is expressly agreed and understood that the Parties shall continue to be bound by the provisions of
Sections 2.5(c) and 4.2 of the Employment Agreement. In the event of any inconsistency between this Agreement and any other agreement
between the Executive and the Companies, the statements in this Agreement shall control.

 

(d) Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed
to in writing and signed by the Executive and by the Companies. No waiver by either Party of any breach by the other Party of any
condition or provision of this Agreement to be performed by the other Party shall be deemed a waiver of any similar or dissimilar
provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by any of the Parties in
exercising any right, power, or privilege under this Agreement operate as a waiver thereof to preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

 

(e) Severability
and Modification.
If any of the provisions of this Agreement are determined by any court with jurisdiction over the matter to be unreasonable or
unenforceable, in whole or in part, as written, the Parties hereby consent to and affirmatively request that such court reform
the provision so as to be reasonable and enforceable and that such court enforce the provision as reformed. If any provision of
this Agreement (except for the Release provision found in Section 5) is found by that court to be overbroad or otherwise
unenforceable and not capable of modification, it shall be severed and the remaining provisions of the Agreement enforced in accordance
with the tenor of this Agreement.

 

    7 

     

    

 

(f) Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

(g) Counterparts. The Parties may
execute this Agreement in counterparts, each of which shall be deemed an original, and all of which taken together shall constitute
one and the same instrument. Delivery of an executed counterpart of this Agreement by facsimile, email in portable document format
(.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document has the
same effect as delivery of an executed original of this Agreement.

 

(h) Non-admission.
Nothing in this Agreement shall be construed as an admission by the Group of any wrongdoing, liability, or noncompliance under
or with any federal, state, city, or local rule, ordinance, statute, common law, or other legal obligation.

 

(i)
Publicity. The Companies agree to permit the Executive to review and comment on any press release or public announcement
regarding the termination of the Executive’s Employment Agreement or employment with the Employer.

 

(j) Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (A) when delivered by hand (with written confirmation of receipt); (B) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (C) on the date sent by facsimile or e-mail of a
PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business
day if sent after normal business hours of the recipient; or (D) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective Parties at the following addresses
(or at such other address for a Party as shall be specified in a notice given in accordance with this Section 9(j)):

 

	If to the Parent or the Employer:	
        Avadel Pharmaceuticals plc

        16640 Chesterfield Grove Road, Suite 200

        Chesterfield, Missouri 63017

        E-mail: pthompson@avadel.com

        Attention: Phillandas T. Thompson, Senior Vice President,
General Counsel and Corporate Secretary 

	 	 
	If to the Executive:	2870 Brownell Avenue

Sullivans Island, SC  29482

 

(k) Acknowledgment
of Full Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS FULLY READ, UNDERSTANDS, AND VOLUNTARILY
ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE EXECUTIVE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND
CONSULT WITH AN ATTORNEY OF THE EXECUTIVE’S CHOICE BEFORE SIGNING THIS AGREEMENT. THE EXECUTIVE FURTHER ACKNOWLEDGES THAT
THE EXECUTIVE’S SIGNATURE BELOW IS AN AGREEMENT TO RELEASE THE RELEASEES FROM ANY AND ALL CLAIMS THAT CAN BE RELEASED AS
A MATTER OF LAW.

 

    8 

     

    

 

(l)
Section 409A. It is intended that any payment or benefit which is provided pursuant to or in connection with this
Agreement which is considered to be deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”) shall be paid and provided in a manner, and at such time and form, as complies with the applicable requirements
of Section 409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Because the Executive
is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, any payments to be made or benefits
to be delivered in connection with Executive’s “Separation from Service” (as determined for purposes of Section
409A of the Code) that constitute deferred compensation subject to Section 409A of the Code would not be made until the earlier
of (i) the Executive’s death or (ii) six months after the Executive’s Separation from Service (the “409A Deferral
Period”) as required by Section 409A of the Code. The Executive will incur a separation from service within the meaning
of Section 409A of the Code as of the Termination Date. However, because (i) all rights to payments and benefits are to be treated
as rights to receive a series of separate payments and benefits to the fullest extent permitted by Section 409A of the Code and
(ii) under the Employment Agreement, the payments under this Agreement are to be bifurcated and treated as exempt from Section
409A of the Code under the short-term deferral or separation pay exceptions, to the extent permitted under Section 409A of the
Code (with the earliest amounts payable to be first treated as exempt to the extent such exceptions are available), none of the
amounts payable to the Executive under this Agreement are subject to the 409A Deferral Period. Notwithstanding any other provision
of this Agreement, neither the Companies nor any other member of the Group shall be liable to the Executive if any payment or
benefit which is to be provided pursuant to this Agreement and which is considered deferred compensation subject to Section 409A
of the Code otherwise fails to comply with, or be exempt from, the requirements of Section 409A of the Code.

 

[Remainder of Page Intentionally
Left Blank; Signature Page Follows]

 

    9 

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first set forth above.

 

	 	COMPANIES:
	 	 	 
	 	AVADEL MANAGEMENT CORPORATION
	 	 	 
	 	By:	/s/ Phillandas T. Thompson
	 	Name:	Phillandas T. Thompson
	 	Title:	Secretary
	 	 	 
	 	 	 
	 	AVADEL PHARMACEUTICALS, PLC
	 	 	 
	 	By:	/s/ Phillandas T. Thompson
	 	Name:	Phillandas T. Thompson
	 	Title:	Senior Vice President, General Counsel and Corporate Secretary
	 	 	 
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Michael S. Anderson
	 	Michael S. AndersonExhibit

Exhibit 10.1

PARTIAL TERMINATION ENDORSEMENT

to the

AMENDED AND RESTATED
QUOTA SHARE REINSURANCE AGREEMENT
(hereinafter referred to as the “Agreement”)

between

AMTRUST INTERNATIONAL INSURANCE, LTD.
Hamilton, Bermuda
(hereinafter referred to as the “Company”)

and

MAIDEN REINSURANCE LTD.
Hamilton, Bermuda
(hereinafter referred to as the “Reinsurer”)

IT IS HEREBY AGREED that, effective as of 12:01 a.m., Eastern Standard Time, January 1, 2019 (the “Effective Time”), the Agreement shall terminate on a cut-off basis solely with respect to the lines of business set forth below.

		
	A.
	Terminated Lines of Business

		
	1.
	The following lines of business in the Company’s Small Commercial Business and Extended Warranty and Specialty Risk Segments shall terminate on a cut-off basis (the “Terminated Business”):

Small Commercial Business Workers’ compensation;
Small Commercial Business General Liability;
Small Commercial Business Umbrella Liability;
Small Commercial Business Professional Liability, including Cyber Liability; and
U.S. Extended Warranty and Specialty Risk

		
	2.
	The Company shall provide the Reinsurer with all reasonably requested documentation necessary to confirm that the lines of business included by the Company within Terminated Business is Terminated Business.  The Reinsurer acknowledges that any business ceded by the Company to Swiss Reinsurance America Corporation pursuant to the U.S. Commercial Lines Quota Share Reinsurance Contract effective January 1, 2019 among the Company, its affiliates and Swiss Reinsurance America Corporation is included in Terminated Business.

		
	3.
	The Reinsurer shall return the estimated unearned premium net of ceding commission and brokerage in the estimated amount of $480 million   (the “Estimated UEP”) to the Company on or before January 3, 2019.  The Company shall provide the Reinsurer a reasonably detailed statement showing the Company’s calculation of the Estimated UEP. 

		
	4.
	The Reinsurer and Company agree that the return of the Estimated UEP shall be effectuated by the transfer from the Reinsurer to the Company of certain of the Reinsurer’s assets in the amount of the Estimated UEP held by the Company in the Trust Account, as defined in Article XXIII of the Agreement, established pursuant to the Reinsurance Trust Agreement dated April 23, 2008 by the Company, as Grantor, Technology Insurance Company, Inc., as beneficiary and JP Morgan Chase Bank, N.A., as Trustee (the “Trust Account”).   The Company holds these assets pursuant to Reinsurance Trust Assets Collateral Agreement dated December 1, 2008 between the Reinsurer and the Company, the “Collateral Agreement”).  The Reinsurer shall execute any document reasonably required to effectuate the transfer of ownership from the Reinsurer to the Company of assets in the amount of the Estimated UEP which are held by the Company in the Trust Account subject to the Collateral Agreement.

		
	5.
	On or before May 30, 2019, the Company shall report (together with detailed documentation to support the calculation) to the Reinsurer the actual unearned premium applicable to the Terminated Business.  In the event that actual unearned premium exceeds the Estimated UEP, the Reinsurer shall return to the Company assets in an amount equal to the difference as set forth in Paragraph 4.  In the event that the Estimated UEP exceeds the actual unearned premium, the Company shall return the difference to the Reinsurer by designating assets in an amount equal to the difference as Collateral subject to the Collateral Agreement.

		
	6.
	In the event of a dispute between the Reinsurer and the Company regarding the actual unearned premium, Article XVI of the Agreement shall apply.

		
	7.
	The Reinsurer shall not be liable for Ultimate Net Loss incurred by the Company on or after the Effective Time with respect to the Terminated Business.  The Reinsurer and Company shall remain liable to each other with respect to the Terminated Business for all obligations under the Agreement incurred prior to the Effective Time.

		
	B.
	Other Covered Business

		
	1.
	ARTICLE I – BUSINESS REINSURED is deleted in its entirety and restated as follows:

The Reinsurer, subject to the terms and conditions hereunder and the exclusions set forth herein, agrees to indemnify the Company, as specified in Article V below, for its Ultimate Net Loss which accrues during the term of this Agreement under any and all binders, policies, or contracts of insurance issued by Affiliates (individually, a “Policy” and, collectively, “Policies”) pursuant to an Underlying Reinsurance Agreement to the extent covering the lines of business being ceded hereunder immediately prior to the Effective Time (excluding Terminated Business).  Covered Business shall not include any Policy to the extent that the ceding Affiliate’s retention exceeds $5,000,000.

		
	2.
	Paragraph C to ARTICLE VI – PREMIUM AND CEDING COMMISSION is amended as follows:

The ceding commission payable by Maiden for Covered Business immediately prior to the Effective Time shall increase by 5 percentage points with respect to in-force Covered Business (excluding Terminated Business) and related unearned Subject Premium as of the Effective Time, and Subject Premium related to Covered Business Policies issued or renewed following the Effective Time.

		
	3.
	All other terms and conditions remain in effect. 

IN WITNESS WHEREOF, the parties hereto, by their respective duly authorized officer, have executed this PARTIAL TERMINATION ENDORSEMENT as of the dates set forth below:

	
			
	AMTRUST INTERNATIONAL INSURANCE, LTD.
	 
	MAIDEN REINSURANCE LTD.

	 
	 
	 

	By: /s/ Adam Karkowsky    
	 
	By: /s/ Michael Tait    

	 
	 
	 

	Dated: 12/31/18    
	 
	Dated: 12/31/18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]