Document:

EX 10.3

    EXHIBIT
      10.3

    

    TAX
      ALLOCATION AGREEMENT

    

    This
      Tax
      Allocation Agreement, dated June 1, 2006, between AmTrust Financial Services,
      Inc. (“AmTrust”), a Delaware corporation, and Wesco Insurance Company (“Wesco”),
      a Delaware corporation.

    

    WITNESSETH

    

    WHEREAS,
      AmTrust and Wesco are affiliates;

    

    WHEREAS,
      AmTrust and Wesco are part of a consolidated tax filing group (the “Group”) in
      accordance with the relevant Internal Revenue Service regulations;
      and

    

    WHEREAS,
      AmTrust is the agent of Wesco for the purpose of filing the consolidated tax
      return on behalf of the Group; and

    

    WHEREAS,
      AmTrust and Wesco wish to set forth their obligations to each other as members
      of the Group in accordance with Delaware’s insurance laws and
      regulations.

    

    NOW,
      THEREFORE, AmTrust and Wescp agree as follows:

    

    A.    Determination
      of Tax Liability

    

    Wesco’s
      liability for federal income tax payments or entitlement to federal income
      tax
      refunds shall be based on the amount of its tax liability or entitlement to
      a
      refund calculated on a separate return basis.

    

    B.    Tax
      Payments

    

    Wesco
      shall remit to AmTrust any amounts determined to be due in accordance with
      Section A of this Agreement at such time that the Group is legally obligated
      to
      make estimated or final tax payments.

    

    C.    Tax
      Refunds

    

    Upon
      receipt, AmTrust shall remit to Wesco that part of any tax refund received
      by
      the Group that results from tax savings to the Group generated by foreign
      credits, investment credits, losses or any loss carry overs available to
      Wesco.

    

    D.    Scope

    

    This
      Agreement shall apply only to the parties’ federal tax liability.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
      date set forth above.

    

    

    AMTRUST
      FINANCIAL SERVICES, INC.

    

    

    

    By:_________________________________

    Barry
      D.
      Zyskind, President

    

    

    

    WESCO
      INSURANCE COMPANY

    

    

    

    By:_________________________________

    Barry
      D.
      Zyskind, President

     

     

    
      
         

      

        -2-EX 10.4

    EXHIBIT
      10.4

    

    TAX
      ALLOCATION AGREEMENT

    

    This
      agreement is made for 1998 and future calendar years by and among AmTrust
      Financial Services, Inc. (AmTrust), a Delaware corporation and Technology
      Insurance Company (TIC), a New Hampshire corporation.

    

    WITNESSETH

    

    Whereas,
      AmTrust owns all the issued and outstanding shares of voting common stock of
      TIC.

    

    Whereas,
      AmTrust and TIC may have taxable income in this and future years calendar years
      and would be liable for federal income tax if their incomes would be computed
      as
      though they would file separate returns.

    

    Whereas,
      AmTrust shall file a consolidated tax return on behalf of itself and its
      subsidiaries, including TIC (AmTrust and its subsidiaries, including TIC, shall
      be referred to collectively as the “Group”).

    

    Now,
      therefore, AmTrust and TIC agree as follows, each intending to be legally bound
      hereby:

    

    	1.    	
            AmTrust
              will file a consolidated tax return for this and future calendar years
              for
              the Group. TIC, for itself, agrees to file such consents, elections
              and
              other documents and take such other actions as may be necessary, or
              appropriate to effectuate the filing of such return as provided by
              the
              Internal Revenue Service Regulations, Section 1.1502-1(a) and
              1.1502.33(d)(2)

          

    	2.    	
            The
              Group may have consolidated federal income tax liability for this and
              future calendar years. TIC agrees that, with respect to this and future
              calendar years, TIC shall remit to AmTrust such estimated and final
              tax
              payments as are legally required to be made in an amount equal to the
              federal income liability of TIC if its taxable income were computed
              as
              though it would file a separate return for each calendar
              year

          

    

    Notwithstanding
      anything to the contrary contained herein, AmTrust and TIC specifically agree
      that this Allocation Agreement shall apply only with respect to federal tax
      liability.

    

    In
      Witness Whereof, the parties hereto have caused this agreement to be executed
      on
      the date first above written.

    

    

    AmTrust
      Financial Services, Inc.

    

    By:

    

    Title:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Technology
      Insurance Company

    

    By:

    

    Title:EX 10.5

    EXHIBIT
      10.5

    

    TAX
      ALLOCATION AGREEMENT

    

    This
      Agreement, dated July 1, 2002, is made for 2002 and future calendar years
      between AmTrust Financial Services, Inc. (“AmTrust”), a Delaware corporation,
      and Rochdale Insurance Company (“Rochdale”), a New York
      corporation.

    

    WITNESSETH

    

    WHEREAS,
      AmTrust and Rochdale are affiliates;

    

    WHEREAS,
      AmTrust and Rochdale are part of a consolidated tax filing group (the “Group”)
      in accordance with the relevant Internal Revenue Service regulations;
      and

    

    WHEREAS,
      AmTrust is the agent of Rochdale for the purpose of filing the consolidated
      tax
      return on behalf of the Group; and

    

    WHEREAS,
      AmTrust and Rochdale wish to set forth their obligations to each other as
      members of the Group in accordance with New York’s insurance laws and
      regulations.

    

    NOW,
      THEREFORE, AmTrust and Rochdale agree as follows:

    

    A.    Determination
      of Tax Liability

    

    Rochdale’s
      liability for federal income tax payments or entitlement to federal income
      tax
      refunds shall be based on the amount of its tax liability or entitlement to
      a
      refund calculated on a separate return basis.

    

    B.    Tax
      Payments

    

    Rochdale
      shall remit to AmTrust any amounts determined to be due in accordance with
      Section A of this Agreement at such time that the Group is legally obligated
      to
      make estimated or final tax payments.

    

    C.    Credits

    

    
      	
            	1.	
              AmTrust
                shall pay Rochdale an amount equal to the amount of tax savings to
                the
                Group generated by foreign credits, investment credits, losses or
                any loss
                carry overs (“Credits”) available to Rochdale. Rochdale shall record any
                such payment as contributed
                surplus.

            

    

     

    
      	
            	2.	
              Once
                Rochdale receives payment from AmTrust for Credits, Rochdale cannot
                utilize such Credits in the calculation of its tax liabilities under
                Section A of this Agreement.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    D.    Escrow

    

    In
      the
      event that amounts paid by Rochdale to AmTrust for its tax liability determined
      in accordance with Section A exceeds the amount that AmTrust pays to the
      Internal Revenue Service, AmTrust shall establish and maintain an escrow account
      or accounts for Rochdale’s benefit in an amount equal to Rochdale’s excess
      payment or payments, as the case may be, funded by assets eligible as an
      investment under the New York insurance law. The purpose of the escrow accounts
      shall be to permit Rochdale to recoup federal income taxes in the event of
      future net losses. Escrow assets may be released to AmTrust from such escrow
      accounts at such time as the permissible period for loss carrybacks has
      expired.

    

    E.    Tax
      Refunds

    

    Upon
      receipt, AmTrust shall remit to Rochdale that part of any tax refund received
      by
      the Group that results from Credits generated by Rochdale for which Rochdale
      has
      not received payment pursuant to Section C.

    

    F.    Scope

    

    This
      Agreement shall apply only to the parties’ federal tax liability.

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
      date set forth above.

    

    

    AMTRUST
      FINANCIAL SERVICES, INC.

    

    

    

    By:_________________________________

    Barry
      D.
      Zyskind, President

    

    

    

    ROCHDALE
      INSURANCE COMPANY

    

    

    

    By:_________________________________

    Barry
      D.
      Zyskind, President

     

     

    
      
         

      

        -2-EX 10.6

    EXHIBIT
      10.6

    

    AMTRUST
      INTERCOMPANY REINSURANCE AGREEMENT

    

    among

    

    (1) Technology
      Insurance Company, Inc.;

    

    (2) Rochdale
      Insurance Company;

    

    (3) Wesco
      Insurance Company; and

    

    (4) AmTrust
      International Insurance Limited 

    

    Effective
      June 1, 2006

    

    WHEREAS,
      each of the parties hereto is, directly or indirectly, a wholly-owned subsidiary
      of AmTrust Financial Services, Inc. (“AmTrust”); and

    

    WHEREAS,
      AmTrust wishes the parties to enter into this Agreement to allocate retained
      premiums and losses within the Group in a manner consistent with applicable
      laws
      and regulations.

    

    NOW,
      THEREFORE, in consideration of the mutual covenants, terms and conditions set
      forth herein, the Parties agree as follows:

    

    ARTICLE
      I. TERM:

    

    This
      Agreement shall be effective June 1, 2006, subject to all required regulatory
      approvals, with respect to Business subject hereto, and shall continue in effect
      until terminated in accordance with Article XVIII.

    

    ARTICLE
      II. TERRITORY:

    

    This
      Agreement provides reinsurance for Business in all territories in which the
      Companies issue Policies and/or insure risks thereunder.

    

    ARTICLE
      III. BUSINESS REINSURED

    

    All
      Policies issued by the Companies.

    

    ARTICLE
      IV. DEFINITIONS

    

    A.    “Business”
      means all Policies issued by the Companies.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    B.    “Company”
      or “Companies” means each Technology Insurance Company, Inc. and Rochdale
      Insurance Company when issuing Policies and Wesco Insurance Company and all
      of
      them, collectively.

    

    C.    “Gross
      Earned Premium” means Gross Written Premium plus the Companies’ Unearned Premium
      Reserves as of the commencement of the Term less the Companies’ Unearned Premium
      Reserves as of the Termination Date.

    

    D.    “Gross
      Written Premium” means any and all amounts charged to a policyholder or other
      person on or with respect to a Policy less any such amounts returned for
      cancellation of any such Policy.

    

    E.    “IBNR”
      means the Companies’ reserves for liability for Losses which have occurred, but
      have not yet been reported to the Companies, including expected development
      of
      Outstanding Loss Reserves.

    

    F.    “Incurred
      Losses” means the sum of Losses Paid, Loss Adjustment Expenses Paid, Outstanding
      Loss Reserves, and IBNR.

    

    G.    “Loss”
      means a claim for coverage under a Policy.

    

    H.    “Losses
      Paid” means payment made for Losses under Policies less related salvage and
      subrogation recoveries.

    

    I.    “Loss
      Adjustment Expenses” means all costs and expenses that are incurred by a Company
      in the investigation, defense or appeal of a specific claim covered under a
      Policy, including declaratory judgment expenses arising out of a coverage
      question under a Policy.

    

    J.    “Net
      Earned Premium” means Gross Earned Premium less all original acquisition and
      administrative expenses, the cost of inuring reinsurance, Federal Excise Tax,
      ceding commission, etc.

    

    K.    “Net
      Retained Liability” means each Company’s gross liability on each Loss reinsured
      hereunder after deducting recoveries from all inuring reinsurance, other than
      the reinsurance provided hereunder.

    

    L.    “Net
      Written Premium” means Gross Written Premium less all original acquisition and
      administrative expenses, the cost of inuring reinsurance, Federal Excise Tax,
      ceding commission, etc.

    

    M.    “Obligations”
      mean:

    

    (i)    Losses
      and Loss Adjustment Expenses paid by the Companies, but not recovered from
      the
      Reinsurers;

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (ii)    Outstanding
      Loss Reserves;

    

    (iii)    IBNR;

    

    (iv)    Loss
      Adjustment Expense Reserves; and

    

    (v)    Any
      amount that the Companies deem necessary to fully secure the Companies as
      required by Article X.

    

    N.    “Outstanding
      Loss Reserves” means, as of a specified date, losses reported to the Companies,
      which have been reserved, but not yet paid.

    

    O.    “Policies”
      mean any and all binders, certificates, policies, contracts of insurance,
      accepted, held or covered, provisionally or otherwise.

    

    P.    “Reinsurer”
      or “Reinsurers” means AmTrust International Insurance Limited and Technology
      Insurance Company, Inc. and Rochdale Insurance Company, when acting as
      reinsurers hereunder.

    

    Q.    “Ultimate
      Net Loss” means (i) with respect to each Loss within the Companies Net Retained
      Liability, Losses and Loss Adjustment Expenses Paid less salvage and subrogation
      recoveries; and (ii) each Companies liability for bad debt resulting from unpaid
      premium or premium audits, whether actual or statutory. All salvage, subrogation
      or other recoveries made or received subsequent to Loss settlement hereunder
      shall be applied as if made or recovered prior to such settlement, and all
      necessary adjustments shall be made by the subject Parties. Nothing herein
      shall
      be construed to mean that losses are not recoverable hereunder until Ultimate
      Net Loss has been ascertained.

    

    R.    “Unearned
      Premium Reserve” means, as of a specified date, the pro rata portion of premium
      represented by the unexpired portion of in-force Policies.

    

    ARTICLE
      V. INSURING CLAUSE

    

    The
      Companies shall cede to the Reinsurers and the Reinsurers shall assume from
      the
      Companies, the Companies’ Ultimate Net Loss as follows:

    

    A.    Technology
      Insurance Company, Inc., as a Company, shall (i) cede to AmTrust International
      Insurance Limited and AmTrust International Insurance shall assume 70% of its
      Ultimate Net Loss; and (ii) cede to Rochdale Insurance Company and Rochdale
      Insurance Company shall assume 10% of its Ultimate Net Loss;

    

    B.    Rochdale
      Insurance Company, as a Company, shall(i) cede to AmTrust International
      Insurance Limited and AmTrust International Insurance Limited shall assume
      70%
      of its Ultimate Net Loss; and (ii) cede to Technology Insurance Company,
Inc.
      and
      Technology Insurance Company, Inc. shall assume 20% of its Ultimate Net
      Loss];

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    C.    Wesco
      Insurance Company shall (i) cede to AmTrust International Insurance Limited
      and
      AmTrust International Insurance Limited shall assume 70% of its Ultimate Net
      Loss; and
      (ii)
      cede to Technology Insurance Company, Inc. and Technology Insurance Company,
      Inc. shall assume 20% of its Ultimate Net Loss;

    

    D.    The
      Companies shall cede to AmTrust International Insurance Limited and AmTrust
      International Insurance Limited shall assume 100% of the Companies Ultimate
      Net
      Loss resulting from the Companies’ memberships in or reinsurance of any assigned
      risk or similar plans.

    

    ARTICLE
      VI. PREMIUM

    

    For
      the
      reinsurance provided hereunder, the Companies shall cede and the Reinsurers
      shall assume premiums as follows:

    

    A.    Technology
      Insurance Company, Inc., as a Company, shall (i) cede to AmTrust International
      Insurance Limited and AmTrust International Insurance shall assume 70% of Net
      Written Premium and (ii) cede to Rochdale Insurance Company and Rochdale
      Insurance Company shall assume 10% of Net Written Premium;

    

    B.    Rochdale
      Insurance Company, as a Company, shall(i) cede to AmTrust International
      Insurance Limited and AmTrust International Insurance Limited shall assume
      70%
      of Net Written Premium; and (ii) cede to Technology Insurance Company, Inc.
      and
      Technology Insurance Company, Inc. shall assume 20% of Net Written Premium;
      and

    

    C.    Wesco
      Insurance Company shall (i) cede to AmTrust International Insurance Limited
      and
      AmTrust International Insurance Limited shall assume 70% of Net Written Premium;
      and (ii) cede to Technology Insurance Company, Inc. and Technology Insurance
      Company, Inc. shall assume 20% of Net Written Premium.

    

    D.    Ceding
      Commission. AmTrust International Insurance Limited shall allow the Companies
      a
      five percent ceding commission to cover deferred acquisition costs.

    

    ARTICLE
      VII. EXCLUSIONS

    

    None.

    

    ARTICLE
      VIII. CLAIMS

    

    The
      Reinsurers agree to abide by the Loss settlements made by the Companies;
      provided, that when so requested, the Companies, or any one of them, will afford
      the Reinsurers the opportunity,
      at the Reinsurers’ expense, to be associated in the defense of any claim, suit
      or proceeding involving this reinsurance.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

    ARTICLE
      IX. REPORTS AND REMITTANCES

    

    Within
      30
      days of the end of each month, the Companies shall render to the Reinsurers
      an
      account current showing the Net Cede, which is the sum of the ceded Net Written
      Premium less Losses Paid and Loss Adjustment Expenses, and, if applicable,
      funds
      withheld and adjustments thereto, for the subject month. Within 30 days of
      the
      end of each calendar quarter, all net balances due shall be settled by the
      parties.

    

    ARTICLE
      X. RESERVE DEPOSIT (NON-ADMITTED REINSURERS)

    

    With
      respect to premium received with respect to an insured risk located in any
      jurisdiction in which a Reinsurer is non-admitted, the Companies or any of
      them
      may require that such Reinsurer secure an amount equal to the Reinsurers’
Obligations (the “Secured Amount”) through one or more of the following: (i) a
      Letter of Credit which meets the requirements of the NAIC and applicable state
      insurance laws and regulations; (ii) assets held in trust pursuant to
      reinsurance trust agreement, which meets the requirements of the NAIC and
      applicable state insurance laws and regulations (a “Reinsurance Trust”); or
      (iii) cash.

    

    The
      Secured Amount shall be equal the Reinsurer’s Obligation, and shall be adjusted
      quarterly. Upon default by any Reinsurer of sums due and owing to a Company,
      the
      Company, as provided in this Article X, may appropriate as much of the Letter
      of
      Credit, Reinsurance Trust Assets and/or cash as necessary to eliminate the
      default. The Company may, however, at its discretion, require payment of any
      sum
      in default, and it shall be no defense to any such claim that the Company might
      have had recourse to the Letter of Credit, Reinsurance Trust assets and/or
      cash.

    

    Each
      of
      the Companies and the Reinsurers hereby agree that the Letter of Credit,
      Reinsurance Trust and/or cash, provided pursuant to this Agreement may be drawn
      upon at any time, notwithstanding any other provisions herein contained. The
      Letter of Credit, Reinsurance Trust and/or cash may be utilized by Company
      or
      any successor by operation of law, including, without limitation, any
      liquidator, rehabilitator, receiver or conservator of the Company for any of
      the
      following reasons: 

    

    
      	 	
              (i)

            	
              To
                reimburse the Company for the Reinsurer’s share of unearned premiums
                returned to the holders of Policy(ies) reinsured hereunder due to
                cancellations of said Policy(ies); 

            

    

    

    
      	 	
              (ii)

            	
              To
                reimburse the Company for the Reinsurer’ share of Losses Paid by the
                Company under the terms and provisions of the Policy(ies) reinsured
                hereunder; 

            

    

    

    
      	 	
              (iii)

            	
              To
                fund an account in an amount at least equal to the deduction from
                the
                Company’s liabilities for reinsurance ceded hereunder. Such account shall
                include, but not be limited to, amounts for Losses Paid, Outstanding
                Loss
                Reserves, IBNR and reserves for Loss Adjustment Expenses); and
                

            

    

     

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    
      	 	
              (iv)

            	
              To
                pay any other amounts due to the Company under this Agreement.
                

            

    

    

    All
      of
      the foregoing apply without diminution because of the insolvency of the Company
      or the Reinsurers. 

    

    ARTICLE
      XI: INDEMNIFICATION AND ERRORS AND OMISSIONS: 

    

    The
      Reinsurers are reinsuring to the extent of the amount herein provided, the
      obligations of the Companies under the Policies. The Company shall be the sole
      judge as to what constitutes a claim or loss covered under a Policy and the
      Reinsurers shall be bound by the judgment of the Company as to its liability
      under Policies. 

    

    Any
      inadvertent delay, error or omission in connection with this Agreement shall
      not
      relieve any party from any liability that would attach to it if such delay,
      error or omission had not been made; provided that such delay, error or omission
      is rectified as soon as possible. 

    

    ARTICLE
      XII. TAXES: 

    

    The
      Company will be liable for taxes (except Federal Excise Tax) on premiums
      reported to the Reinsurers hereunder. Federal Excise Tax applies only to those
      Reinsurers which are not exempt from Federal Excise Tax. 

    

    The
      Reinsurers have agreed to allow for the purpose of paying the Federal Excise
      Tax
      (if applicable) One Percent (1%) of the subject premium referenced in Article
      VII, or such other rate that may be in effect from time to time, to the extent
      such premium is subject to Federal Excise Tax. 

    

    ARTICLE
      XIII. INSPECTION: 

    

    Each
      Company shall place at the disposal of the Reinsurers, and the Reinsurers shall
      have the right to inspect, at all reasonable times, through its authorized
      representatives, all books, records and papers of each Company in connection
      with the reinsurance hereunder or any claims in connection herewith.

    

    ARTICLE
      XIV. FOLLOW THE FORTUNES CLAUSE: 

    

    The
      Reinsurers’ liability shall attach simultaneously with that of the Company and
      all reinsurance for which the Reinsurers shall be liable by virtue of this
      Agreement shall be subject in all respects to the same risks, terms, rates,
      conditions, interpretations, assessments, waivers, and to the same
      modifications, alterations and cancellations, as the respective Policies of
      each
      of the Companies to which this Agreement relates. 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    This
      Agreement shall further protect the Company in connection with any Loss for
      which the Company may be legally liable to pay in excess of the Policy limit(s)
      or extra contractual
      obligations which have been incurred because of failure by the Company to settle
      within said limits or by reason of alleged negligence or bad faith in rejecting
      an offer of settlement or in the preparation of the defense or in the trial
      of
      any action against its Insured or in the preparation or prosecution of any
      appeal consequent upon such action. 

    

    The
      true
      intent of this Agreement being that the Reinsurers shall, in every case to
      which
      this Agreement applies and in the proportions specified herein, follow the
      fortunes of the Company. 

    

    Notwithstanding
      anything to the contrary herein, this Agreement shall not apply to any Loss
      in
      excess of Policy limits or extra contractual obligations incurred by a Company
      as a result of any fraudulent or criminal act by any officer of director of
      such
      Company, acting individually or collectively, or in collusion with any
      individual, corporation or any other organization or party involved in the
      presentation, defense or settlement of any claim covered hereunder.

    

    ARTICLE
      XV. INSOLVENCY 

    

    In
      the
      event of the insolvency of a Company, reinsurance under this Agreement shall
      be
      payable by the Reinsurers (on the basis of the liability of said Company under
      Policies reinsured hereunder without diminution because of the insolvency of
      the
      Company) to the Company or its liquidator, receiver, or statutory successor,
      except as provided by the applicable provisions of New Hampshire, New York
      or
      Delaware insurance laws. 

    

    It
      is
      agreed, however, that the liquidator or receiver or statutory successor of
      the
      insolvent Company shall give written notice to the Reinsurers of the pendency
      of
      a claim against the insolvent Company on the contract or contracts reinsured
      within a reasonable time after such claim is filed in the insolvency proceeding
      and that, during the pendency of such claim, the Reinsurers may investigate
      such
      claim and interpose at their own expense in the proceeding where such claim
      is
      to be adjudicated, any defenses which they may deem available to the Company
      or
      its liquidator to the extent of a proportionate share of the benefit which
      may
      accrue to the Company solely as a result of the defense undertaken by the
      Reinsurers. 

    

    ARTICLE
      XVI. ARBITRATION CLAUSE: 

    

    All
      disputes or differences arising out of the interpretation of this Agreement
      except as covered by Article XIX—Service of Suit, shall be submitted to the
      decision of two (2) disinterested and independent Arbitrators, one to be chosen
      by each party, and in the event the Arbitrators fail to agree, to the decision
      of an disinterested and independent Umpire to be chosen by the Arbitrators
      before they enter upon arbitration. The Arbitrators and Umpire shall be current
      or former executive officials of property/casualty insurance or reinsurance
      companies or otherwise certified by ARIAS-US. If either of the parties fails
      to
      appoint an Arbitrator within one (1) month after being required by the other
      party in writing to do so, the requesting party may choose two arbitrators
      who
      shall in
      turn
      choose an Umpire before they enter upon arbitration. If the Arbitrators fail
      to
      appoint an Umpire, within one (1) month of appointment, each Arbitrator shall
      nominate three candidates within 10 days thereafter, two of whom the other
      shall
      decline and the decision shall be made by drawing lots.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    The
      Arbitration proceedings shall take place at New York, New York, unless otherwise
      agreed by the Parties. The applicant shall submit its case within one (1) month
      after the appointment of the Umpire, and the respondent shall submit his reply
      within one (1) month after receipt of a claim. The Arbitrators and Umpire are
      relieved from all judicial formality and may abstain from following the strict
      rule of law. They shall settle any dispute under this Agreement according to
      an
      equitable rather than a strictly legal interpretation of its terms and their
      decision shall be final and not subject to appeal. Judgment may be entered
      in
      any court of competent jurisdiction. 

    

    Each
      party shall bear the expenses of its Arbitrators and shall jointly and equally
      share with the other the expenses of the Umpire and of the Arbitration. This
      Article shall survive the termination of this Agreement. 

    

    ARTICLE
      XVII. RESERVES: 

    

    The
      Reinsurers will maintain legal reserves with respect to Outstanding Losses
      and
      Loss Expense Paid. 

    

    ARTICLE
      XVIII. TERMINATION: 

    

    A.    Any
      party
      shall have the right to terminate this Agreement upon sixty (60) days written
      notice to the other parties, as provided herein.

    

    B.    Any
      party
      shall have the right to terminate this Agreement immediately by giving the
      other
      parties written notice: 

    

    
      	 	
              1.

            	
              If
                the performance of the whole or any part of this Agreement be prohibited
                or rendered impossible de jure or de facto in particular and without
                prejudice to the generality of the preceding words in consequence
                of any
                law or regulation which is or shall be in force in any country or
                territory or if any law or regulation shall prevent directly or indirectly
                the remittance of any or all or any part of the balance or payments
                due to
                or from either party. 

            

    

    

    
      	 	
              2.

            	
              If
                another party at any time shall: 

            

    

    

    (i) Become
      insolvent, or 

    (ii) Suffer
      any impairment of capital, or 

    (iii) File
      a
      petition in bankruptcy, or 

    (iv) Go
      into
      liquidation or rehabilitation, or 

    (v) Have
      a
      receiver appointed, or 

    (vi) Be
      acquired or controlled by any other insurance company or
      organization

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

    C.    All
      notices of termination in accordance with any of the provisions of this
      paragraph shall be by certified mail return receipt requested or by overnight
      delivery by a recognized courier service and shall be deemed to be served upon
      dispatch. All notices of termination in accordance with any of the provisions
      of
      this Article shall be addressed to the party concerned at its head office or
      at
      any other address previously designated by that party. 

    

    D.    In
      the
      event of this Agreement being terminated at any date other than at an annual
      anniversary date then the Net Written Premium due to the Reinsurers shall be
      calculated up to date of termination. The rights and obligations of both parties
      to this Agreement shall remain in full force until the effective date of
      termination.

    

    E.    As
      respects coverage hereunder, it is understood and agreed that upon termination
      of this Agreement, coverage will continue hereunder beyond such termination
      date
      until the natural expiration date, the cancellation date, or the date which
      the
      Company, as a matter of law, may terminate coverage with respect to Policies
      reinsured hereunder.

    

    F.    Should
      this Agreement terminate while a loss occurrence is in progress, the Reinsurers
      shall be liable to the extent of their interests, subject to the other
      conditions of this contract, for all losses resulting from such loss occurrence
      whether such losses arise before or after such termination. 

    

    ARTICLE
      XIX. SERVICE OF SUIT: 

    

    It
      is
      agreed that in the event of the failure of the Reinsurers herein to pay any
      amount claimed to be due hereunder or the breach of any other term or condition
      of this Agreement and for which the Companies or any Company, in their or its
      sole discretion, choses not to file for Arbitration under Article XVI, the
      Reinsurers herein, at the request of the Company, will submit to the
      jurisdiction of any court of competent jurisdiction within the United States
      and
      will comply with all requirements necessary to give such court jurisdiction
      and
      all matters arising hereunder shall be determined in accordance with the law
      and
      practice of such court. 

    

    It
      is
      further agreed that service of process involving AmTrust International Insurance
      Limited in such suit may be made upon Bott and Associates,________, Attention:
      Michael Bott and that in any suit instituted against any of them upon this
      contract, the Reinsurers will abide by the final decision of such court or
      of
      any appellate court in the event of an appeal. 

    

    The
      above-mentioned are authorized and directed to accept service of process on
      behalf of the Reinsurers in any such suit and/or upon the request of the Company
      to give a written
      undertaking to the Company that they will enter a general appearance upon
      Reinsurers’ behalf in the event such a suit shall be instituted. 

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    Further,
      pursuant to any statute of any state, territory, or district of the United
      States which makes provisions therefor, Reinsurers herein hereby designate
      the
      Superintendent, Commissioner or Director of Insurance or other officer specified
      for that purpose in the statute, or his successor or successors in office,
      as
      its true and lawful attorney upon whom may be served any lawful process in
      any
      action, suit or proceeding instituted by or on behalf of the Company or any
      beneficiary hereunder arising out of this Agreement of Reinsurance, and hereby
      designate the above named as the person to whom the said office is authorized
      to
      mail such process or a true copy thereof. 

    

    ARTICLE
      XX. FOREIGN EXCHANGE: 

    

    All
      premium and loss payments hereunder shall be in the United States currency.
      

    

    Premiums
      due hereunder in other than United States currency shall be paid by the Company
      in United States Dollars at the rates of exchange at which the original accounts
      were settled. Failing this the rate of exchange applied shall be that used
      by
      the Company in their own books of or in accordance with any subsequent
      adjustments thereto. 

    

    The
      amounts recoverable for losses in other than United States currency shall be
      converted into United States Dollars at the same rates of exchange as were
      applied in the settlement of the original losses. Failing this the rate of
      exchange applied shall be that used by the Company in their own books either
      at
      the time of the settlement or in accordance with any subsequent adjustments
      thereto. 

    

    ARTICLE
      XXI. OFFSET CLAUSE: 

    

    The
      Company and the Reinsurers shall have the right to offset any balance(s) due
      from one to the other under this Agreement. The party asserting the right of
      offset may exercise such right at any time whether the balance(s) due are on
      account of premiums or losses or otherwise. In the event of the insolvency
      of a
      party hereto, offsets shall only be allowed in accordance with the applicable
      sections of the insurance laws of the States of New Hampshire, New York and
      Delaware. 

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their duty authorized representatives. 

    

    Technology
      Insurance Company, Inc.

    

    By:_______________________________

    Barry
      D.
      Zyskind

    President

    

    Rochdale
      Insurance Company

    

    By:_______________________________

    Barry
      D.
      Zyskind

    President

    

    Wesco
      Insurance Company

    

    By:_______________________________

    Barry
      D.
      Zyskind

    

    AmTrust
      International Insurance Limited

    

    By:
      ______________________________

    Michael
      Bott

    Manager

     

    
      
         

      

        -11-

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