PHILADELPHIA CONSOLIDATED HOLDING CORP
EXHIBIT 10.3
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>w71474exv10w3.htm
<DESCRIPTION>EXHIBIT 10.3
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT
10.3</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PHILADELPHIA INDEMNITY<BR>
INSURANCE COMPANY<BR>
PHILADELPHIA INSURANCE COMPANY</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Agreement No.&nbsp;P304</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GENERAL REINSURANCE CORPORATION</B><BR>
<B><I>A Berkshire Hathaway Company</I></B>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">to<BR><BR>
<B>PROPERTY FACULTATIVE AGREEMENT OF REINSURANCE<BR>
NO. P304</B><BR>
between<BR>
<B>PHILADELPHIA INDEMNITY INSURANCE COMPANY<BR>
PHILADELPHIA INSURANCE COMPANY</B><BR>
and<BR>
<B>GENERAL REINSURANCE CORPORATION</B>

</DIV>
<DIV align="center">
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<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Article</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Page #</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;I</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SCOPE OF AGREEMENT </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;II</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PARTIES TO THE AGREEMENT </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;III</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>COMMENCEMENT AND TERMINATION </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;IV</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BUSINESS SUBJECT TO THIS AGREEMENT </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;V</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>LIABILITY OF THE REINSURER </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VI</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ALLOCATION OF ADJUSTMENT EXPENSE </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DEFINITIONS </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VIII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>EXCLUSIONS </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;IX</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>OTHER REINSURANCE </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;X</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REINSURANCE PREMIUM </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XI</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>RISK REPORTS AND REMITTANCES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>REPORTS AND CLAIM REMITTANCES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XIII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ERRORS AND OMISSIONS </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XIV</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SPECIAL ACCEPTANCES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XV</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>MANAGEMENT OF CLAIMS AND LOSSES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XVI</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>RECOVERIES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XVII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>TRIA EXCESS RECOVERY </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XVIII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>RESERVES AND TAXES </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XIX</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>OFFSET </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XX</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>INSPECTION OF RECORDS </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XXI</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ARBITRATION </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XXII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>INSOLVENCY OF THE COMPANY </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;XXIII</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>&#151;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ENTIRE AGREEMENT </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Attachments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Appendix&nbsp;A<BR>
Nuclear Incident Exclusion Clause &#151; Physical Damage

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPERTY FACULTATIVE AGREEMENT OF REINSURANCE<BR>
NO. P304</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">between

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PHILADELPHIA INDEMNITY INSURANCE COMPANY<BR>
PHILADELPHIA INSURANCE COMPANY</B><BR>
One Bala Plaza, Suite&nbsp;100<BR>
Bala Cynwyd, Pennsylvania 19004<BR>
(herein collectively referred to as the &#147;Company&#148;)

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>GENERAL REINSURANCE CORPORATION</B><BR>
a Delaware corporation<BR>
having its principal offices at<BR>
Financial Centre<BR>
695 East Main Street P.O. Box 10350<BR>
Stamford, Connecticut 06904-2350<BR>
(herein referred to as the &#147;Reinsurer&#148;)

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In consideration of the promises set forth in this Agreement, the parties agree as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;I &#151; SCOPE OF AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As a condition precedent to the Reinsurer&#146;s obligations under this Agreement, the Company shall
cede to the Reinsurer, subject to the terms of the article entitled RISK REPORTS AND REMITTANCES,
the business described in the article entitled BUSINESS SUBJECT TO THIS AGREEMENT, and the
Reinsurer shall accept such business as reinsurance from the Company. The terms of this Agreement
shall determine the rights and obligations of the parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;II &#151; PARTIES TO THE AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement is solely between the Company and the Reinsurer. When more than one Company is
named as a party to this Agreement, the first Company named shall be the agent of the other
companies as to all matters pertaining to this. Agreement. Performance of the obligations of each
party under this Agreement shall be rendered solely to the other party. However, if the Company
becomes insolvent, the liability of the Reinsurer shall be modified to the extent set forth in the
article entitled INSOLVENCY OF THE COMPANY. In no instance shall any insured of the Company or any
claimant against an insured of the Company have any rights under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;III
</B>&#151; <B>COMMENCEMENT AND TERMINATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement shall apply to claims and losses insured under new and renewal policies of the
Company becoming effective at and after 12:01&nbsp;A.M., January&nbsp;1, 2008 and shall continue in force
until terminated.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B><BR>
<B><I>A Berkshire Hathaway Company</I></B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Either party may terminate this Agreement by sending to the other, by certified mail to its
principal office, notice stating the time and date when, not less than 90&nbsp;days after the date of
mailing of such notice, termination shall be effective. Upon termination of this Agreement, the
Reinsurer shall continue to be liable, with respect to policies in force at the time and date of
termination, for claims and losses resulting from Occurrences taking place until the expiration,
cancellation, or next anniversary date, not to exceed one year, of each such policy of the
Company, whichever occurs first.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When all reinsurance is expired or terminated, the Reinsurer shall return to the Company the
reinsurance premium unearned, if any, calculated on the monthly pro rata basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;IV &#151; BUSINESS SUBJECT TO THIS AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject to the terms of the article entitled RISK REPORTS AND REMITTANCES, this Agreement shall
apply to Property Business written by the Company, which is defined as insurance which is
classified in the NAIC form of annual statement as fire, allied lines, inland marine, commercial
multiple peril (property coverages), homeowners multiple peril (property coverages) or automobile
physical damage (comprehensive and collision), except those lines specifically excluded in the
section entitled EXCLUSIONS, on Risks wherever located in the 50 states of the United States of
America including the District of Columbia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The business subject to this Agreement shall be defined further as Property Business as written on
the Company&#146;s policy forms on file with the Reinsurer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;V &#151; LIABILITY OF THE REINSURER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reinsurer shall pay to the Company, with respect to each Risk of the Company ceded hereunder,
the amount of Net Loss sustained by the Company in excess of the Company Retention but not
exceeding the Limits of Liability of the Reinsurer as set forth in the Schedule of Reinsurance or
the amount of reinsurance ceded to the Reinsurer on the monthly bordereau report, whichever is
less. However, in no event shall Net Loss include payments made by the Company under &#147;unlimited&#148; or
&#147;non ceded&#148; coverages unless specific limits of liability have been included in the total amount of
insurance reported and ceded on the monthly bordereau reports.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE OF REINSURANCE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Limits of Liability</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Class of Business</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Company Retention</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">of the Reinsurer</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD colspan="9" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Risks located in Florida, Hawaii
or Harris County, Texas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">30,000,000</TD>
    <TD>&nbsp;</TD>
</TR><TR valign="bottom"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">All other Risks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">75,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">50,000,000</TD>
    <TD>&nbsp;</TD>
</TR><TR valign="bottom"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Wood Frame Builders Risks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">25,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The liability of the Reinsurer shall not exceed $50,000,000 under this Agreement and all
individual facultative certificates issued by the Reinsurer to the Company during each Agreement
Year that this Agreement is in effect with respect to all Net Loss and Adjustment Expenses
combined arising out of all loss or damage directly or indirectly arising out of, caused by, or
resulting from all Terrorism Occurrences taking place during each Agreement, Year regardless of
any other cause or event contributing to such loss or damage in any way or at any time, or whether
such loss or damage is accidental or intentional.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;VI &#151; ALLOCATION OF ADJUSTMENT EXPENSE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to payments for its share of Net Loss, the Reinsurer shall pay to the Company a share
of Adjustment Expenses proportionate to the Reinsurer&#146;s share of Net Loss.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;VII &#151; DEFINITIONS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Company Retention</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean the amount the Company and its treaty reinsurers shall
retain for their own account; however, this requirement shall be satisfied if
this amount is retained by the Company or its affiliated companies under
common management or common ownership.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Recoveries from catastrophe reinsurance shall be deemed not to reduce the
amount required with respect to the Company Retention.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Net Loss</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean all payments by the Company within the terms and limits
of its policies in settlement of claims or losses after deduction of salvage
and other recoveries and after deduction of amounts due from all other
reinsurance, except catastrophe reinsurance and except treaty reinsurance
within the Company Retention, whether collectible or not. This term shall not
include Adjustment Expense. If the Company becomes insolvent, this definition
shall be modified to the extent set forth in the article entitled INSOLVENCY
OF THE COMPANY.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Adjustment Expense</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean expenditures by the Company within the terms of its
policies in the direct defense of claims and as allocated to an individual
claim or loss (other than for office expenses and for the salaries and
expenses of employees of the Company or of any subsidiary or related or wholly
owned company of the Company) made in connection with the disposition of a
claim, loss, or legal proceeding including investigation, negotiation, and
legal expenses; court costs; prejudgment interest; and postjudgment interest.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Risk</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company shall establish what constitutes one Risk provided:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Building and its contents, including time element coverages, shall never
be considered more than one Risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When two or more Buildings and their contents are situated at the same
general location, the Company shall identify on its records at the time of
acceptance by the Company those individual Buildings and their contents that are
considered to constitute each Risk; if such identification is not made, each
Building and its contents shall be considered to be a separate Risk;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Multiple general locations shall never be combined and considered one Risk.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Building</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean each separately roofed structure enclosed within exterior walls.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Total Insured Value</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean the sum total of property values for the Risk ceded according to the
policy form written.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Terrorism Occurrence</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An Act of Terrorism means an activity, including the threat of an
activity or any preparation for an activity, that (a)&nbsp;causes either (i)&nbsp;damage to
property, or (ii)&nbsp;injury to persons; and (b)&nbsp;appears to be intended to: (i)
intimidate or coerce a civilian population, or (ii)&nbsp;disrupt any segment of an
economy, or (iii)&nbsp;influence the policy of a government by intimidation or
coercion, or (iv)&nbsp;affect the conduct of a government by destruction,
assassination, kidnapping or hostage-taking, or (v)&nbsp;advance a political,
religious or ideological cause; provided, however, that an Act of Terrorism for
purposes of this definition shall not include any act or threat as described
above perpetrated by an official, employee or agent of a foreign state acting for
or on behalf of such state.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An Act of Terrorism is also deemed to include any act authorized by a
governmental authority for the purpose of preventing, terminating, countering or
responding to any act or threat of terrorism or for the purpose of preventing or
minimizing the consequences of any act or threat of terrorism.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Agreement Year</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This term shall mean each twelve month period commencing on January 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>




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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;VIII &#151; EXCLUSIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement shall not apply to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business assumed by the Company other than reinsurance assumed from
affiliated companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nuclear incident per the Nuclear Incident Exclusion &#151; Physical Damage -
Reinsurance attached hereto;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any loss or liability accruing to the Company directly or indirectly from
any insurance written by or through any pool or association including pools or
associations in which membership by the Company is required under any statutes or
regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any liability of the Company arising from its participation or membership in
any insolvency fund;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any loss or damage directly or indirectly arising out of, caused by, or
resulting from war, including undeclared or civil war; warlike action by a military
force, including action in hindering or defending against an actual or expected
attack, by any government, sovereign or other authority using military personnel or
other agents; or insurrection, rebellion, revolution, usurped power or action taken
by governmental authority in hindering or defending against any of these. War
includes any activity that would be included as an Act of Terrorism, but for the fact
that such activity was perpetrated by an official, employee or agent of a foreign
state acting for or on behalf of such state. Such loss or damage is excluded
regardless of (i)&nbsp;any other cause or event contributing to such loss or damage in any
way or at any time, or (ii)&nbsp;whether such loss or damage is accidental or intentional.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business written on a layered basis, whether primary or excess of loss and
business written on a co-indemnity, co-insurance or shared basis;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business not written 100% by the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risks or policies written with a deductible or franchise of more than
$100,000; however, this exclusion shall not apply to Risks or policies which provide
a percentage deductible or franchise in connection with windstorm;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Wood Frame Builders Risks which have a Total Insured Value of more than
$50,000,000 and all other Risks which have a Total Insured Value of more than
$200,000,000, unless submitted to the Reinsurer for special acceptance and accepted
by the Reinsurer in accordance with the provisions of the article entitled SPECIAL
ACCEPTANCES;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance against:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any earth movement (other than sinkhole collapse), such as
earthquake, landslide, mine subsidence or earth sinking, rising</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL
REINSURANCE CORPORATION</B>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->-5-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>or shifting; however, this exclusion shall not apply to ensuing loss by fire or
explosion not otherwise excluded;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Volcanic eruption, explosion or effusion; however, this exclusion shall not
apply to ensuing loss by fire or volcanic action not otherwise excluded.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Except for Risks located in the State of California, this exclusion shall not apply to the
coverages of accounts receivable, fine arts, valuable papers or electronic data processing
equipment, media and extra expense when the perils set forth in (1)&nbsp;and (2)&nbsp;above are
written in conjunction with otherwise eligible perils;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance against flood, surface water, waves, tidal waves, overflow of any body of water,
or their spray, all whether driven by wind or not;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(I)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Difference in conditions insurance and similar kinds of insurance, howsoever styled;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance against earthquake sprinkler leakage;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loss, damage, costs or expenses arising out of the release, discharge, dispersal, or escape
of pollutants; the extraction, removal, clean up, containment, monitoring, or detoxification
of pollutants; or the removal, restoration, or replacement of polluted land or water, but this
exclusion does not preclude coverage for loss, damage, costs, or expenses which are covered
under Insurance Services Office basic wordings promulgated on or after April&nbsp;1, 1986. However,
this exclusion does not apply to any Risk located in a jurisdiction which has not approved the
Insurance Services Office wordings or where other regulatory constraints prohibit the Company
from implementing such wordings. If the Company elects to file an endorsement independent of
ISO, such endorsement will be deemed a suitable substitute provided the Company has submitted
the wording to the Reinsurer and received the Reinsurer&#146;s prior approval. Nevertheless, if the
insured elects to purchase any &#147;buy back&#148; or additional coverage options, such options shall
not be covered hereunder even if such options are provided by or covered under ISO wordings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any loss or damage caused by or resulting from:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Explosion of steam boilers, steam pipes, steam engines or steam turbines
owned by, leased by or operated under the control of the insured; however, this
exclusion shall not apply to loss or damage resulting from fire or combustion
explosion, nor to loss or damage caused by or resulting from the explosion of
gases or fuel within the furnace of any fired vessel or within the flues or
passages through which the gases of combustion pass;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Artificially generated electric current, including electric arcing, that
disturbs electrical devices, appliances or wires; however,</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL
REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-6-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this exclusion shall not apply to ensuing loss by fire not otherwise excluded;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mechanical breakdown, including rupture or bursting caused by centrifugal
force; however, this exclusion shall not apply to any resulting loss or damage
caused by elevator collision;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Vacant or unoccupied properties;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Losses with respect to overhead transmission and distribution lines (including those used by
cable operators and telecommunications providers) and their supporting structures, other than
those on or within 1,000 feet of the insured premises. However, public utilities extension
and/or suppliers extension and/or contingent business interruption coverage are not subject
to this exclusion, provided these are not part of a transmitters&#146; or distributors&#146; policy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Petrochemical Risks, including oil refining and processing, petrochemical operations,
pipelines, tank farms, gas processing, and any hydrocarbon processing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(s)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Railroad property;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(t)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Offshore property Risks;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(u)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mobile homes unless written as part of a commercial multiple peril policy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Watercraft, other than watercraft insured under a standard homeowners policy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(w)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance on growing crops;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Inland marine business with respect to the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All bridges, dams, tunnels, piers and wharves;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cargo insurance when written as such with respect to ocean, lake, or inland
waterways vessels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Faulty film, tape, processing and editing insurance and cast insurance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Drilling rigs for natural fuels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Furriers&#146; customers policies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Garment contractors policies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Insurance on livestock under so-called &#147;mortality policies&#148;;<BR></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Jewelers&#146; block policies and furriers&#146; block policies;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-7-<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mining equipment while underground;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Radio, television, telephone towers or other towers used
in communications;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Registered mail and armored car insurance;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(y)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risks that involve the manufacture or fabrication of chips and or
integrated circuits that operate in a clean room environment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(z)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risks which have an insurable value of $5,000,000 or more on any of
the following coverages:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Accounts receivable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Valuable papers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fine arts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Electronic data processing equipment, media,
and extra expense;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(aa)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Business classified as fidelity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(bb)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Credit insurance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(cc)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mortgage impairment insurance and similar kinds of insurance,
howsoever styled, providing coverage to an insured with respect to its
mortgagee interest in property or its owner interest in foreclosed property;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(dd)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Contingent business interruption insurance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ee)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risks located on the keys and islands listed in Appendix&nbsp;A attached
hereto;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ff)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risks located within 1,000 feet of tidal waters in Hawaii and Risks
located within one mile of tidal water including the Intracoastal Waterway, as
respects the Gulf of Mexico from Brownsville, Texas to Key West, Florida and
the Atlantic Ocean from Key West, Florida through Cape Cod, Massachusetts and
Risks excluded by the Company&#146;s &#147;2008 Property Guidelines-Florida&#148; edition
1-2008 and the Company&#146;s &#147;Windstorm Underwriting Guidelines&#148; edition 11-2007.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;IX &#151; OTHER REINSURANCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The obligations of the Company to reinsure business falling within the scope of this Agreement and
of the Reinsurer to accept such reinsurance are mandatory and no other reinsurance (either
facultative or treaty) is permitted, except treaty reinsurance within the Company
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL
REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-8-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Retention. In no event, however, shall the amount required with respect to the Company Retention
be reduced.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;X
&#151; REINSURANCE PREMIUM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall pay to the Reinsurer, with respect to each Risk reinsured hereunder, a
reinsurance premium calculated per the &#147;Extranet Tool&#148; provided to the Company by the Reinsurer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XI &#151; RISK REPORTS AND REMITTANCES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Risks subject to this Agreement shall be reported by the Company to the Reinsurer no later than
185&nbsp;days after the close of the month in which the Company&#146;s liability attaches, increases, or
renews.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the Company fails to notify the Reinsurer within 185&nbsp;days after the close of the month in which
the Company&#146;s liability attaches, increases, or renews, of an otherwise eligible Risk, the Risk
may be specially accepted in accordance with the article entitled SPECIAL ACCEPTANCES.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The bordereau report provided through the &#147;Extranet Tool&#148; shall include for each Risk ceded:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Name(s) of insured(s);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Location(s);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Policy number(s);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Transaction description (new, renewal, endorsement);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reinsurance term (multi year policies must be ceded annually to this
Agreement);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total Insured Value;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Construction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sprinklered or non sprinklered;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ISO protection class;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Risk occupancy;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Company Retention;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reinsurance limit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pro rata ceded premium.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-9-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The amount due the Reinsurer shall be remitted within 45&nbsp;days after the close of the month.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XII &#151; REPORTS AND CLAIM REMITTANCES</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Claims and Losses</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company shall report promptly to the Reinsurer, but within no more than 25
days, each claim or loss which, in the Company&#146;s opinion, may involve the
reinsurance afforded by this Agreement. The Company shall advise the Reinsurer
of the estimated amount of Net Loss and Adjustment Expense in connection with
each such claim or loss and of any subsequent changes in such estimates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly upon receipt of a definitive statement of Net Loss and Adjustment
Expense from the Company, but within no more than 25&nbsp;days, the Reinsurer shall
promptly pay to the Company the Reinsurer&#146;s portion of Net Loss and the
Reinsurer&#146;s portion of Adjustment Expense, if any. Any subsequent changes in
the amount of Net Loss and/or Adjustment Expense shall be reported by the
Company to the Reinsurer and the amount due either party shall be remitted
promptly, but within no more than 25&nbsp;days.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>P.C.S. Catastrophe Bulletins</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company shall furnish to the Reinsurer, upon request, the following
information with respect to each catastrophe set forth in the Catastrophe
Bulletins published by the Property Claim Services:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The preliminary estimates of the amount recoverable
from the Reinsurer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Reinsurer&#146;s portion of claims, losses and
Adjustment Expenses paid less salvage recovered during each calendar
quarter;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Reinsurer&#146;s portion of reserves for claims,
losses, and Adjustment Expenses at the end of each calendar quarter.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the reports required by (a)&nbsp;and (b)&nbsp;above, the Company shall
furnish such other information as may be required by the Reinsurer for the
completion of the Reinsurer&#146;s quarterly and annual statements and internal
records.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All reports shall be rendered on forms or in format acceptable to the Company
and the Reinsurer.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B></DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-10-<!-- /Folio -->
</DIV>




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<DIV style="font-family: Helvetica,Arial,sansserif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XIII &#151; ERRORS AND OMISSIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reinsurer shall not be relieved of liability because of an error or accidental omission, that
is transcriptional in nature, of the Company, in reporting any claim or loss or any business
reinsured under this Agreement, provided that the Risk(s) involving such error or accidental
omission is (are)&nbsp;reported to the Reinsurer in accordance with the article entitled RISK REPORTS
AND REMITTANCES and provided that such error or accidental omission is rectified immediately
after discovery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reinsurer shall be obligated only for the return of the premium paid for business reported
but not reinsured under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XIV &#151;  SPECIAL ACCEPTANCES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Business not within the terms of this Agreement may be submitted to the Reinsurer for special
acceptance and, if accepted by the Reinsurer, shall be subject to all of the terms of this
Agreement except as modified by the special acceptance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XV &#151;  MANAGEMENT OF CLAIMS AND LOSSES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall investigate and settle or defend all claims and losses. When requested by the
Reinsurer, the Company shall permit the Reinsurer, at the expense of the Reinsurer, to be
associated with the Company in the defense or control of any claim, loss, or legal proceeding
which involves or is likely to involve the Reinsurer. All payments of claims or losses by the
Company within the terms and limits of its policies which are within the limits set forth in this
Agreement shall be binding on the Reinsurer, subject to the terms of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XVI &#151;  RECOVERIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall pay to or credit the Reinsurer with the Reinsurer&#146;s portion of any recovery
obtained from salvage, subrogation, or other insurance. Adjustment Expense for recoveries shall be
deducted from the amount recovered. However, if the Adjustment Expense incurred in obtaining
recoveries exceeds the amount recovered, if any, the excess Adjustment Expense shall be
apportioned between the parties in proportion to the liability of each party for the loss before
the recovery was obtained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reinsurer shall be subrogated to the rights of the Company to the extent of its loss payments
to the Company. The Company agrees to enforce its rights of salvage, subrogation, and its rights
against insurers or to assign these rights to the Reinsurer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Recoveries shall be distributed to the parties in an order inverse to that in which their
liabilities accrued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XVII &#151;  TRIA EXCESS RECOVERY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As respects any &#147;Insured Loss&#148;, as defined in the Terrorism Risk Insurance Act of 2002 as
subsequently amended (the &#147;Act&#148;), for which the Reinsurer makes a payment to the Company under this
Agreement, the following provisions shall apply:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-11-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sansserif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>These provisions shall apply separately to each &#147;Program Year&#148; (as defined in the Act).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The term &#147;Affiliated Companies&#148; shall mean the Company named in this Agreement and all of its
affiliates (as &#147;affiliate&#148; is defined under the Act).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the sum of:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial assistance provided under the Act to the Affiliated
Companies with respect to all Insured Loss that applies to the Program Year;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts recovered by or credited to the Affiliated Companies under
all reinsurance which the Affiliated Companies purchase, including but not
limited to this reinsurance, all other treaty reinsurance and all
facultative, in respect of any of the Affiliated Companies&#146; Insured Loss that
applies to the Program Year,</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">exceeds the amount of the Affiliated Companies&#146; gross Insured Loss that applies to the
Program Year, this excess shall be the &#147;Excess Amount&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Reinsurer&#146;s proportion of the Excess Amount shall be in the ratio that the Reinsurer&#146;s
part of Insured Loss payable under this Agreement bears to the sum of the Affiliated
Companies&#146; total collectable reinsurance recoverables for all Insured Loss.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Upon receipt of payment under the Act by Affiliated Companies, the Company shall pay to or
credit the Reinsurer under this Agreement with its share of the Excess Amount as set forth
in the preceding paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XVIII &#151;  RESERVES AND TAXES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reinsurer shall maintain the required reserves as to the Reinsurer&#146;s portion of unearned
premium, claims, losses, and Adjustment Expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall be liable for all premium taxes on premium ceded to the Reinsurer under this
Agreement. If the Reinsurer is obligated to pay any premium taxes on this premium, the Company
shall reimburse the Reinsurer; however, the Company shall not be required to pay taxes twice on
the same premium.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XIX &#151;  OFFSET</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company or the Reinsurer may offset any balance, whether on account of premium, commission,
claims or losses, adjustment expense, salvage, or otherwise, due from one party to the other under
this Agreement or under any other agreement heretofore or hereafter entered into between the
Company and the Reinsurer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XX  &#151; INSPECTION OF RECORDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall allow the Reinsurer to inspect, at reasonable times, the records of the Company
relevant to the business reinsured under this Agreement, including Company files
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-12-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sansserif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">concerning claims, losses, or legal proceedings which involve or are likely to involve the
Reinsurer. The Reinsurer&#146;s right of inspection shall continue after the termination of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XXI
&#151; ARBITRATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All unresolved differences of opinion between the Company and the Reinsurer relating to this
Agreement, including its formation and validity, shall be submitted to arbitration consisting of
one arbitrator chosen by the Company, one arbitrator chosen by the Reinsurer, and a third
arbitrator chosen by the first two arbitrators.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The party demanding arbitration shall communicate its demand for arbitration to the other party by
registered or certified mail, identifying the nature of the dispute and the name of its
arbitrator, and the other party shall then be bound to name its arbitrator within 30&nbsp;days after
receipt of the demand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Failure or refusal of the other party to so name its arbitrator shall empower the demanding party
to name the second arbitrator. If the first two arbitrators are unable to agree upon a third
arbitrator after the second arbitrator is named, each arbitrator shall name three candidates, two
of whom shall be declined by the other arbitrator, and the choice shall be made between the two
remaining candidates by drawing lots. The arbitrators shall be disinterested and shall be active
or retired officers of property or casualty insurance or reinsurance companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The arbitrators shall adopt their own rules and procedures and are relieved from judicial
formalities. In addition to considering the rules of law and the customs and practices of the
insurance and reinsurance business, the arbitrators shall make their award with a view to
effecting the intent of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The decision of the majority of the arbitrators shall be in writing and shall be final and binding
upon the parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each party shall bear the cost of its own arbitrator and shall jointly and equally bear with the
other party the expense of the third arbitrator and other costs of the arbitration. In the event
both arbitrators are chosen by one party, the fees of all arbitrators shall be equally divided
between the parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The arbitration shall be held at the times and places agreed upon by the arbitrators.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XXII
&#151;  INSOLVENCY OF THE COMPANY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event of the insolvency of the Company, the reinsurance proceeds will be paid to the Company
or the liquidator, with reasonable provision for verification, on the basis of the claim allowed in
the insolvency proceeding without diminution by reason of the inability of the Company to pay all
or part of the claim, except as otherwise specified in the statutes of any state having
jurisdiction of the insolvency proceedings or except where the Agreement, or other written
agreement, specifically provides another payee of such reinsurance in the event of insolvency.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION
</B></DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-13-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sansserif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The
Reinsurer shall be given written notice of the pendency of each claim against the Company on
the policy(ies) reinsured hereunder within a reasonable time after such claim is filed in the
insolvency proceedings. The Reinsurer shall have the right to investigate each such claim and to
interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any
defenses which it may deem available to the Company or its liquidator. The expense thus incurred
by the Reinsurer shall be chargeable, subject to court approval, against the insolvent Company as
part of the expense of liquidation 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 Reinsurer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Article&nbsp;XXIII
&#151;  ENTIRE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement constitutes the entire Agreement between the parties with respect to the business
reinsured hereunder. Any change or modification to this Agreement shall be made by written
amendment to this Agreement and signed by the parties hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>IN WITNESS WHEREOF, </B>the parties hereto have caused this Agreement to be executed in duplicate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">this 1<SUP style="font-size: 85%; vertical-align: text-top">ST</SUP> day of August, 2008.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="center"><B>PHILADELPHIA INDEMNITY INSURANCE<BR>
COMPANY<BR>
PHILADELPHIA INSURANCE COMPANY</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/
Christopher J. Maguire
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">EVP &#038; COO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="center">Title&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attest:
<U>/s/  William A. McKenna&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and this 28&nbsp;day of July, 2008.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>GENERAL REINSURANCE CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Andrew Castro&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="center">Title&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attest:
<U>/s/ Lavren McDermott&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Agreement No.&nbsp;P304<BR>
<B>GENERAL REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-14-<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sansserif">




<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>APPENDIX A</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Attached to and made a part of<BR>
<B>AGREEMENT NO. P304</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>EXCLUDED KEYS AND ISLANDS</B>

</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ALABAMA:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aux Herbes Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dauphin island

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>FLORIDA:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amelia Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anclote Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anna Marie Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Big Pine Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Big Torch Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bush Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cabbage Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Captiva Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caladesi Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Casey Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cayo Costa Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cedar Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Coquina Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crooked Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cudjoe Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elliott Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estero Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gasparilla Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hog Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Honeymoon Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hutchinson Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.N. Ding Darling NWR<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Johnston Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jupiter Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Key Biscayne<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Key Largo<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Key West<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Longboat Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lower Matecumbe Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marco Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merritt Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meed Keys<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mullet Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Name Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;North Captiva Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Old Rhodes Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oyster Keys<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Piney Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plantation Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. George Island

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St.
Vincent Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sand Keys<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Santa Rosa Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sanibel Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Siesta Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Snead Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Snipe Keys<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sugarloaf Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ten Thousands Islands<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasure Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upper Matecumbe Key<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vaca Key

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>GEORGIA:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumberland Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jekyll Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ossabaw Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Catherines Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Simons Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sapelo Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Skidaway Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tybee Island<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wassaw Island

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt;"><B>LOUISIANA:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-left: 2%; margin-top: 6pt">Breton Island<BR>
Chandeleur Island<BR>
Curlew Island<BR>
Freemason Island<BR>
Grand Gosier Island<BR>
Grand Isle<BR>
Grand Terre Island<BR>
Isle au Pitre<BR>
Marsh Island<BR>
North Island<BR>
Shell Keys

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>MISSISSIPPI:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-left: 2%;  margin-top: 6pt">Cat Island<BR>
Horn Island<BR>
Petit Bois Island<BR>
Ship Island

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL
REINSURANCE CORPORATION</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>NORTH CAROLINA:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Cedar Island<BR>
Durant Island<BR>
Harkers Island<BR>
Knotts Island<BR>
Mackay Island<BR>
Ocean Isle Island<BR>
Ocracoke Island<BR>
Pea Island<BR>
Roanoke Island (Nags Head)<BR>
Portsmounth Island<BR>
Smith Island
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>SOUTH CAROLINA:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Cape Island<BR>
Capers Island<BR>
Cedar Island<BR>
Daufuskie Island<BR>
Dewees Island<BR>
Edisto Island<BR>
Fripp Island<BR>
Folly Island<BR>
Hilton Head Island<BR>
Hunting Island<BR>
Isle of Palms<BR>
John Island<BR>
Kiawah Island<BR>
Morgan Island<BR>
Morris Island<BR>
Murphy Island<BR>
North Island<BR>
Pritchards Island<BR>
Seabrook Island<BR>
South Island<BR>
The Grand Strand
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>TEXAS:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Brazos Island<BR>
Galveston Island<BR>
High Island<BR>
Matagorda Island Mustang<BR>
Island<BR>
Padre Island<BR>
San Jose Island<BR>
South Padre Island
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>VIRGINIA:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Cedar Island<BR>
Cobb Island<BR>
Fishermans Island<BR>
Hog Island<BR>
Metomkin Island<BR>
Myrite Island<BR>
Parramore Island<BR>
Plum Tree Island<BR>
Ship Shoal Island<BR>
Tangier Island<BR>
Wallops Island<BR>
Wreck Island
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Appendix&nbsp;A<BR>
Agreement No.&nbsp;P304<BR>
<B>GENERAL REINSURANCE CORPORATION</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Page 2 of 2<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NUCLEAR INCIDENT EXCLUSION CLAUSE &#151; PHYSICAL DAMAGE &#151; REINSURANCE &#151; USA</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;This Agreement does not cover any loss or liability accruing to the Company directly or
indirectly and whether as Insurer or Reinsurer, from any Pool of Insurers or Reinsurers formed
for the purpose of covering Atomic or Nuclear Energy risks.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;Without in any way restricting the operation of paragraph (1)&nbsp;of this Clause, this
Agreement does not cover any loss or liability accruing to the Company, directly or indirectly
and whether as Insurer or Reinsurer, from any insurance against Physical Damage (including
business interruption or consequential loss arising out of such Physical Damage) to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nuclear reactor power plants including all auxiliary property on the site, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any other nuclear reactor installation, including laboratories
handling radioactive materials in connection with reactor installations, and
&#147;critical facilities&#148; as such, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Installations for fabricating complete fuel elements or for
processing substantial quantities of &#147;special nuclear material&#148;, and for
reprocessing, salvaging, chemically separating, storing or disposing of &#147;spent&#148;
nuclear fuel or waste materials, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Installations other than those listed in paragraph (2) (iii)&nbsp;above
using substantial quantities of radioactive isotopes or other products of nuclear
fission.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;Without in any way restricting the operations of paragraphs (1)&nbsp;and (2)&nbsp;hereof, this
Agreement
does not cover any loss or liability by radioactive contamination accruing to the Company,
directly or indirectly,
and whether as Insurer or Reinsurer, from any insurance on property which is on the same site
as a nuclear
reactor power plant or other nuclear installation and which normally would be insured
therewith except that this
paragraph (3)&nbsp;shall not operate:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where the Company does not have knowledge of such nuclear reactor
power plant or nuclear installation, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where said insurance contains a provision excluding coverage for
damage to property caused by or resulting from radioactive contamination, however
caused. However on and after 1st January&nbsp;1960 this sub-paragraph (b)&nbsp;shall only
apply provided the said radioactive contamination exclusion provision has been
approved by the Governmental Authority having jurisdiction thereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;Without in any way restricting the operations of paragraphs (1),(2) and (3)&nbsp;hereof, this
Agreement does not cover any loss or liability by radioactive contamination accruing to the
Company, directly or indirectly, and whether as Insurer or Reinsurer, when such radioactive
contamination is a named hazard specifically insured against.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;It is understood and agreed that this Clause shall not extend to risks using radioactive
isotopes in any form where the nuclear exposure is not considered by the Company to be the primary
hazard.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;The term &#147;special nuclear material&#148; shall have the meaning given it in the Atomic Energy
Act of 1954 or by any law amendatory thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;The Company to be sole judge of what constitutes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substantial quantities, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent of installation, plant or site.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Note: Without in any way restricting the operation of paragraph (1)&nbsp;hereof, it is understood
and agreed that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all policies issued by the Company on or before 31st December&nbsp;1957 shall be free
from the application of the other provisions of this Clause until expiry date or 31st
December&nbsp;1960 whichever first occurs whereupon all the provisions of this Clause shall
apply.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to any risk located in Canada policies issued by the Company on or
before 31st December&nbsp;1958 shall be free from the application of the other provisions of
this Clause until expiry date or 31st December&nbsp;1960 whichever first occurs whereupon all
the provisions of this Clause shall apply.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">N.M.A. 1119
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL REINSURANCE CORPORATION</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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