Common use of REPORTS AND REMITTANCES Clause in Contracts

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 60 days of the end of each calendar quarter, the Company shall provide the Reinsurer Retrocessionaire with a report, segregated by Underwriting Year underwriting year of the following in respect of the PoliciesCeded Contracts: (a) Policies Ceded Contracts written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case written premium less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the CompanyOriginal acquisition expenses for Ceded Contracts; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee Ceding Commission as provided hereunder; (ge) Paid Loss, Loss Adjustment Expense and Extra Contractual Extracontractual Obligations; (hf) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligationsloss – if any; (ig) Subrogation, salvage or other recoveries; (jh) Any applicable premium or other similar taxestaxes (including but not limited to United States Federal Excise Tax if applicable); and (ki) Inuring Reinsurance procured Retrocessionaire’s Obligations. Within 75 days of the end of each calendar quarter, the Company shall calculate in respect of the Ceded Contracts: (a) Premium collected during the quarter (which shall include any funds held pursuant to a Ceded Contract); plus (b) Subrogation, salvage or other recoveries received during the quarter; less (c) Original acquisition expenses paid during the quarter; (d) The Ceding Commission as provided hereunder; and (e) Paid Loss, Loss Adjustment Expense and Extracontractual Obligations; Any balance due to the Retrocessionaire shall be remitted by the Company along with the quarterly report. For the avoidance of doubt, premiums retained by the cedents on the Ceded Contracts as funds withheld shall not be payable by the Company to the Retrocessionaire until actually received by the Company. Any balance due to the Company shall be remitted by the Reinsurer Retrocessionaire within 30 days ofreceipt of receipt of the quarterly report. Should payment due from the Reinsurer Retrocessionaire exceed $100,000 (or equivalent in original currency of the relevant Ceded Contract(s)) as respects any one loss eventLoss, the Reinsurer Retrocessionaire shall within 5 business days pay its share of such Loss upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiumsdocumentation. Any special remittance made pursuant to this provision shall be credited to the Reinsurer Retrocessionaire in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a PolicyCeded Contract, the Reinsurer Retrocessionaire shall indemnify the Company for its proportionate share Ceded Percentage of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer Retrocessionaire with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Losses, including Loss Adjustment Expenses, and any other information which the Reinsurer Retrocessionaire may require for its annual financial statements.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. Inc. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's ' s election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 60 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Reinsurer shall be remitted by the Company along with the quarterly report. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of receipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer Reinsurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 30 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 A. Within 45 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of following the end of each calendar quarter, the Company shall provide furnish to the Reinsurer a report with a report, segregated by Underwriting Year the following information: 1. Ceded unearned premium income as of the following in respect end of the Policies:quarter; (a) Policies written 2. Ceded Net Subject Written Premium Income accounted for during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums3. The provisional ceding commission allowed on subparagraph A.2. above; (c) Gross Written Premiums and Net Written Premiums collected by the Company4. The Reinsurer’s Margin of 3.5% on subparagraph A.2. above; (d) Operating Expenses (including an itemization of each constitutent element)5. Ceded losses paid during the quarter; (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) 6. Subrogation, salvage or other recoveriesrecoveries received during the quarter on subject losses; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter7. Any balance due Interest to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer Fund, as provided in paragraph C. of the account in which Funds Withheld Account and Interest Credit Article; 8. Ceded outstanding loss as of the paid Loss appearsend of the quarter, 9. If Outstanding case and incurred but not reported as of the end of the quarter; 10. The Funds Withheld Account balance. B. The Company is required to fund a claim or loss fund pursuant shall remit to the terms Reinsurer the amount shown in subparagraph A.4. above with its report. C. All remittances of loss payments shall be made first by reduction to the Funds Withheld Account balance until such time as such Funds Withheld Account balance is exhausted, such exhaustion to be a Policycondition precedent to any other settlement of any loss by the Reinsurer under this Contract. Then, if any excess amount is due subsequent to the exhaustion of the Funds Withheld Account balance, the Reinsurer shall indemnify the Company for its proportionate Reinsurer’s share of such fund. Within 60 days following amounts shall be paid in cash to the end of each fiscal yearCompany by the Reinsurer on the Settlement Date that such payment is due. D. Annually, the Company shall furnish to the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsconvention statement which is reasonably available to the Company; provided, however, that (i) the Company shall only be required to provide such information in its current format as held on the Company’s information technology systems; (ii) the Reinsurer shall provide the Company with at least 45 days’ advance written notice of such requirements; and (iii) that the provision of such information shall not be a condition precedent for the payment of any amount to the Company from the Reinsurer. E. Should the amount recoverable under this Contract exceed $500,000 as respects any one loss, or Loss Occurrence, the Company may give the Reinsurer notice of payment made or its intention to make payment on a certain date. If the company has paid the loss, payment shall be made by the Reinsurer immediately. If the Company intends to pay the loss by a certain date and has submitted a proof of loss or similar document, payment shall be due from the Reinsurer twenty-four (24) hours prior to that date, provided the Reinsurer has a period of fifteen (15) days after receipt of said notice to dispatch the payment. Cash loss amounts specifically remitted by the Reinsurer as set forth herein shall be credited to the next quarterly account.

REPORTS AND REMITTANCES. (a) The Company (Parties shall conduct monthly settlements based upon monthly bordereaux to be provided by or Arch Underwriters Ltd. on behalf of the CompanyCeding Companies evidencing the amount due or to be due in a form, and containing such detail, as is agreed to by the Parties. Each Party shall pay or credit in cash or its equivalent to the other all net amounts for which it may be liable under the terms and conditions of this Agreement within ten (10) shall notify days after receipt of each Premium Bordereaux and Inuring Reinsurance report. In connection with such monthly settlement the Ceding Companies shall: (i) With regard to the Insurance Contracts and Cut-Through Endorsements, furnish to Reinsurer, in an electronic format the following: (1) The Ceding Companies will prepare and submit to the Reinsurer in writing as soon as possible but in any event a detailed and itemized monthly statement (the “Premium Bordereaux”) of (a) all Premiums written and Premium adjustments (whether additional or returned), (b) Premiums collected by the Ceding Company, (c) based on information provided by Reinsurer no later than 30 days from the earlier 10th day of each month (a “Premiums Collection Report”), Premiums collected by Reinsurer, and (c) Ceding Commissions payable, Ceding Commission adjustments and Ceding Commissions paid or collected by the Ceding Companies with respect to all business and transactions effective in that month no later than the 15th day of the inception date or date of binding of any Policy subsequent month; provided that if reasonably required by Reinsurer, Ceding Companies shall provide the information described above and the accounts receivable aging described in subsection (ii) more frequently than monthly to the extent it is commercially practicable for them to do so. (2) The Ceding Companies will provide a monthly account current report (the “Account Current”) to the Company no later than the 15th day of the material terms subsequent month. The Account Current will include the following information on a per Policy basis as of such Policy. Within 15 days the end of such notice, the Reinsurer shall notify given month: a) Policy Number; b) Insured; c) Policy Effective Date; d) Expiration Date; e) Transaction Type; f) Written Premium for the Company month; g) Commission respective of confirmation that it elects a the written Premium noted above and payable to agents and producers unaffiliated with the Ceding Percentage of 50% or that it elects a Companies; h) Policy fee payable to persons unaffiliated with the Ceding Percentage lower than 50%, but no lower than 15%, in respect Companies (if applicable); i) Claims paid; j) Loss Adjustment Expenses paid; k) Surcharges/Tax (if applicable); l) Net Amount Due to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply ; m) Outstanding balance owed to all Policies that are part of such Programthe Ceding Companies; provided further that where there is a Side-by-Side Policy, and n) Installment plan and premium billed (if applicable) (ii) Based upon the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth abovePremium Bordereaux delivered each month, the Ceding Percentage shall Companies will provide the Reinsurer with a monthly accounts receivable aging by Policy with such report to be 50%. In addition, received by Reinsurer within 75 thirty (30) days of the end of each calendar quarter, the Company month for which the report has been prepared. (iii) The Ceding Companies will provide Reinsurer a monthly report of underwriting activity. Such report shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policiesinclude: (a1) Total Premium Written; (2) Policies issued by named insured, including premium; (3) Cut-Through Endorsements issued by named insured and policy number; (4) A pricing report split by new and renewal business, including all pricing information; and (iv) The Ceding Companies will prepare and submit to the Reinsurer a detailed and itemized monthly statement (the “Claims Bordereaux”) of all required Claims statistical information including, but not limited to, Claims and Loss Adjustment Expenses paid and outstanding reserves no later than the 15th day of the subsequent month. (v) The Ceding Companies will prepare and submit to the Reinsurer a detailed and itemized monthly statement of premiums ceded pursuant to Inuring Reinsurance, outstanding obligations to pay such ceded premium and such ceded premium paid in each case by assuming reinsurer and treaty or agreement relating to the Inuring Reinsurance, including, if Reinsurer shall provide such information to the Ceding Companies on or before the 10th day of the month, any ceded premium paid by the Reinsurer. From time-to-time upon reasonable written during notice by Reinsurer to the quarter;Ceding Companies, Reinsurer may replace, modify or amend the procedures and reporting requirements set forth in (i) through (iv) above in good faith in order to facilitate efficient performance by the Parties of their respective obligations under this Agreement. (b) Gross Written Premiums The Ceding Companies and Net Written Premiumsthe Reinsurer shall furnish each other with such records, in each case less cancellations reports and return premiums;information with respect to the Unearned Premium Reserve, the Actual UPR Transfer Amount, Loss Adjustment Expenses, Losses, Claims and the reinsurance contemplated hereby as may be reasonably required by the other Party to comply with any internal reporting requirements or reporting requirements of any Governmental Authority, to prepare and complete such Party’s quarterly and annual financial statements or to calculate the final Actual UPR Transfer Amount and any UPR Adjustment. (c) Gross Written Premiums If any Ceding Company or the Reinsurer receives notice of, or otherwise becomes aware of, any inquiry, investigation, proceeding, from or at the direction of a Governmental Authority, or is served or threatened with a demand for litigation, arbitration, mediation or any other similar proceeding relating to the Insurance Contracts, such Ceding Company or the Reinsurer, as applicable, shall promptly notify the other party thereof, whereupon the parties shall cooperate in good faith and Net Written Premiums collected by use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner in light of all the Company;relevant business, regulatory and legal facts and circumstances. (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid LossEach Party shall have the right, Loss Adjustment Expense through authorized representatives and Extra Contractual Obligations; (h) Outstanding Lossupon reasonable advance notice during normal business hours, Loss Adjustment Expense to periodically audit and Extra Contractual Obligations; (i) Subrogationinspect all books, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt records, and papers of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due other Party solely in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of connection with (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss Insurance Contracts and Loss Adjustment Expense during such month over any reinsurance hereunder or claims in connection therewith, (ii) 70% the performance of the sum for all Policies claims, underwriting and other administration services pursuant to Article 4, and (iii) the determination of the applicable Ceded Percentages of that month's Gross Written PremiumsActual UPR Transfer Amount and the UPR Adjustment. If All such audits or inspections conducted by Reinsurer through its authorized representatives shall include claim systems and imaged document access, both on-site and remote. Reinsurer may appoint any Person it deems necessary to conduct such audits or inspections. Each Party shall treat the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during other Party’s books, records, and papers in confidence. A Party shall be permitted to conduct such month, the Company may request that the Re insurer advance payment for the excess of audits relating to subsections (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsabove no more frequently than semi-annually.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 have 60 days from the earlier later of the inception date or date of binding of any Policy of Underlying Contract to elect to cede such contract hereunder (provided that such contract is within the material terms Underwriting Guidelines) and to provide written notice to the Retrocessionaire of such Policy. Within 15 days election (“Cession Notice”) identifying the effective date of such noticeUnderlying Contract, the Reinsurer shall notify Underlying Cedent and the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice")applicable Ceded Percentage; provided, however, that in respect of Programsno later than the date that the Company authorizes its share at finalized market terms on a specific contract, the Company will provide notice and the Reinsurer's election of shall determine a provisional Ceded Percentage will apply to all Policies that are part of by written entry in its books and records (which may be reviewed by the Retrocessionaire as provided in Article 17), and within such Program; provided further that where there is a Side60-by-Side Policy, day period the provisional Ceded Percentage may be between zero and 50% as determined by Reinsurer in reduced (whether based on signing down due to oversubscription or otherwise) at the Cession Notice, except that if the participation discretion of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% Company (and subject to written notice of the sum applicable Ceded Percentage to the Retrocessionaire within such period as provided above) or may, with the written authorization of the participations Chief Executive Officer or Chief Risk Officer of the Reinsurer Affiliate and the CompanyRetrocessionaire, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%increased . In addition, within 75 60 days of the end of each calendar quarter, the Company shall provide the Reinsurer Retrocessionaire with a report, segregated by Underwriting Year underwriting year of the following in respect of the PoliciesCeded Contracts: (a) Policies Ceded Contracts written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case written premium less cancellations and return premiums; (c) Earned Gross Written Premiums and Net Written Premiums collected premiums received by the Company; (d) Operating Expenses (including an itemization of each constitutent element)Original acquisition expenses for Ceded Contracts; (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee Ceding Commission as provided hereunder; (gf) Paid Loss, Loss Adjustment Expense and Extra Contractual Extracontractual Obligations; (hg) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligationsloss – if any; (ih) Subrogation, salvage or other recoveries; (ji) Any applicable premium or other similar taxestaxes (including but not limited to United States Federal Excise Tax if applicable); and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.

REPORTS AND REMITTANCES. A. The first statement of account shall be due to the Reinsurer from the Company (or Arch Underwriters Ltd. on behalf the anniversary of the Company) Closing Date. The first statement only shall notify include a charge for interest on any Uncollectible Reinsurance Recoverables due from the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date statement date. Such interest charge shall be equal to the rate of interest announced by Citibank, N.A. as its prime or date of binding of any Policy base rate as of the material terms statement date, calculated on the basis of such Policythe actual number of days elapsed since the Uncollectible Reinsurance Recoverables accrued or the Closing Date, whichever is less, divided by three-hundred-and-sixty-five (365) days. Within 15 days Such interest charge shall be included in the Per Company Sub-Limit of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of ProgramsLiability set forth on Schedule A. B. Thereafter, the Company will provide notice and the Reinsurer's election shall submit quarterly statements of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Sideaccount ("quarterly reports") within forty-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 five (45) days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, the Company . C. Such quarterly reports shall provide the Reinsurer with a report, segregated be sent by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums both facsimile transmission and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected United States Postal Service or any other delivery service used by the Company;. (d) Operating Expenses (including an itemization of D. Such quarterly reports shall include information showing, as applicable with respect to each constitutent element);company listed on Schedule A, Uncollected Reinsurance, Settlement Concessions, Advances received, Advances due, Refunds due, and unpaid amounts outstanding. (e) Origination Expenses for Policies (including an itemization of each constituent element);E. Remittances shall be on a "Net Basis," defined as amounts owed between the Parties under this Agreement. (f) The ceding fee as provided hereunder; (g) Paid LossF. Remittances, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance whether due to the Company from the Reinsurer or to the Reinsurer from the Company, shall be remitted due within forty-five (45) days from the date of receipt of the facsimile transmission of each quarterly report. G. Failure by the Reinsurer within 30 days ofreceipt or the Company to pay amounts owed when due under this Agreement shall result in imposition of an interest penalty equal to the rate of interest announced by Citibank, N.A. as its prime or base rate as of the quarterly report. Should due date of any remittance, calculated on the basis of the actual number of days elapsed past the due date of any remittance divided by three-hundred-and-sixty-five (365) days and payment due from the Reinsurer exceed $100,000 as respects any one loss eventof other losses, the Reinsurer upon written request costs, and expenses accrued or incurred by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% or Reinsurer as a result of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that monthother Party's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementslate payment.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf 5.01 In lieu of the Company) shall notify Company furnishing the Reinsurer in writing as soon as possible but in any event no later than 30 days from with bordereaux showing the earlier particulars of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such noticeall reinsurances ceded hereunder, the Reinsurer shall notify furnish or cause to be furnished to the Company Company, within forty-five (45) days after the close of confirmation that it elects a Ceding Percentage each of 50% or that it elects a Ceding Percentage lower than 50%the respective periods indicated below (on forms agreeable to the Parties) with monthly, but no lower than 15%, quarterly and annual reports showing the following statistical data in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policiesbusiness reinsured hereunder: (a) Policies written Monthly, with the data segregated by major classes. (i) Net and ceded premiums written. (ii) Net and ceded unearned premiums. (iii) Net and ceded losses paid. (iv) Net and ceded adjustment expenses paid during this month. (v) Ceded adjustment expenses paid during this month. (vi) Losses outstanding. (vii) Ceding commission due the Company. (viii) Commission due the General Agent. (b) Annually, with the data segregated by major classes. (i) Annual summaries of net premiums written, net losses paid, net adjusting expenses paid during the quarteryear in such form so as to enable the Company to record such data in its annual convention statement. Such information is to be furnished not later than February 15th of the following year. In force and unearned premium segregated as to advance premiums, premiums running twelve (12) months or less from inception date of policy, and premiums running more than twelve (12) months from inception date of policy in such form as to enable the Company to record such data in its convention annual statement. (ii) If applicable, annual summaries of net premiums written by geographical location in such form as to enable the Company to record such premiums in its annual report to the Texas Catastrophe Property Insurance Association. (c) Periodic, with data segregated by major lines. Statistical or other data as may be requested from time to time by regulatory authorities. 5.02 In order to facilitate the handling of the business reinsured under this Agreement, the Reinsurer agrees to furnish the Company with any additional reports necessary to provide the information needed by the Company to prepare its monthly, quarterly and annual statements to regulatory authorities. 5.03 Within 60 days after the end of each month, the General Agent shall remit to the Reinsurer the following: (a) Reinsurance Premium as collected in accordance with Section 7.06, less; (b) Gross Written Premiums ceded portion of Net Paid losses and Net Written Premiumsloss adjustment expenses paid, provided such losses and loss adjustment expenses have not been deducted on behalf of the Company in each case any previous monthly report. The positive balance of (a) less cancellations and return premiums; (cb) Gross Written Premiums and Net Written Premiums collected shall be remitted by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarterGeneral Agent with its report. Any balance shown to be due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt as promptly as possible after receipt and verification of the quarterly General Agent's report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater but no later than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following after the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsmonth.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. Inc. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 IS days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%50010, as set forth above, the Ceding Percentage shall be 50%50010. In addition, within 75 60 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent constituent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Reinsurer shall be remitted by the Company along with the quarterly report. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of receipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 \00,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 S business days. If the aggregate amount of claims paid by the Company during any one anyone month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer Reinsurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 30 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.

REPORTS AND REMITTANCES. The 1. Net Premiums to be paid by the Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify to the Reinsurer in writing as soon as possible but in any event shall be due and payable no later than 30 thirty (30) days after the end of each calendar month. 2. All Ultimate Net Loss Payments under this Agreement shall be settled by the Company through a revolving fund (the “Claims Revolving Fund”) provided by the Reinsurer, which on the Inception Date of this Agreement shall be an amount to be mutually agreed and from which all Ultimate Net Loss Payments shall be paid on a quarterly basis. The amount of the Claims Revolving Fund shall be determined from time to time by the parties and shall be adjusted based on the average Ultimate Net Loss Payments paid through the Claims Revolving Fund during the preceding two quarters. The amount in the Claims Revolving Fund shall be maintained at the agreed level and any payments made shall be restored to the Claims Revolving Fund by the Company withholding from the earlier quarterly remittance of Net Premiums to the inception date or date Reinsured at the end of binding each quarter, the amount by which the agreed amount exceeds the actual amount in the Claims Revolving Fund at the end of any Policy of each quarter. In the material terms of such Policy. Within 15 days of such noticeevent that the premiums due the Reinsurer are insufficient to restore the Claims Revolving Fund, the Reinsurer shall notify remit by wire transfer to the Company Claims Revolving Fund the amount of confirmation that it elects any deficiency. In the event of a Ceding Percentage large loss or series of 50% or that it elects a Ceding Percentage lower than 50%losses, but no lower than 15%due to be paid by the Company, and due to be paid by the Reinsurer during the following quarter(s) and the amount in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programsthe Claims Revolving Fund is insufficient, the Company will provide notice may request and the Reinsurer's election Reinsurer shall provide payment by an agreed settlement separate from the quarterly account. The Company shall credit the Reinsurer quarterly with the interest earned on the Claims Revolving Fund which shall be invested in short term instruments and such interest shall be included in the account. 3. The Renewal Expense Allowance to be paid by the Reinsurer to the Company shall be due and payable forty-five (45) days after the end of each calendar month. 4. The Profit Share Amount to be paid by the Reinsurer to the Company shall be due and payable thirty (30) days after the later of (i) each Profit Share Date or (ii) the date that the Profit Share Amount can be calculated. 5. Any payments to either party received more than fifteen (15) days after the date due shall be deemed late payments. Any late payments by either party shall accrue interest at a Ceded Percentage will apply rate equal to all Policies that are part the greater of 1% per month, compounded semi-annually or the Yield on the one year United States Treasury Bxxx existent on each January 1 plus 250 basis points (such Program; interest being a “Late Fee”). 6. A report shall be provided further that where there is a Side-by-Side Policyby the Company to the Reinsurer on the Inception Date providing the information necessary to calculate the Initial Premium, the Ceded Percentage may be between zero and 50% as determined in accordance with Article VI, Reinsurance Premium (the “Initial Report”). If a Third Party Administrator has been appointed by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage obligation to provide the reports in paragraphs 7,8,9 and 12 shall be no less than 15 - 85A/C where A is the percentage participation obligation of the Reinsurer Affiliate on the Side-by-Side Policy such Third Party Administrator and C is the percentage participation of not the Company. 7. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 Within thirty (30) days of the end of each calendar quarter, month the Company shall provide supply the Reinsurer with a report, segregated by Underwriting Year report (the “Monthly Report”) that shall provide the following data for the monthly period and cumulatively from the In Force Date to the end of the following in respect of the Policiescalendar month for such Monthly Report: (a) Policies written during the quarter; (b) Gross Written Net Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected received by the Company; (db) Operating Expenses (including an itemization the Company’s share of each constitutent element)the Administrative Expense Allowance; (ec) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Ultimate Net Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.Company; and

REPORTS AND REMITTANCES. Within 45 days following the expiration each calendar quarter, the Company will furnish the Reinsurer with a report of the paid, payable and incurred Ultimate Net Loss amounts in respect of all losses hereunder and/or which contribute to erosion or exhaustion of any applicable Attachment Point or the Aggregate Retention Amount or which constitute Ultimate Net Loss in- demnifiable hereunder. If during the interim between such reports the Company in good faith estimates that Ultimate Net Loss ceded hereunder not previously indemnified exceeds $25,000,000, the Company in its discretion may submit an interim report of the paid, payable and incurred Ultimate Net Loss amounts in respect of all losses hereunder and/or which contribute to erosion or exhaustion of any applicable Attachment Point or Aggregate Retention Amount or which constitute Ultimate Net Loss indemnifiable hereunder. The Company (will submit a copy of each such quarterly or Arch Underwriters Ltd. on behalf interim report to the Trustee together with a duly executed notice in the form attached as Exhibit C to the Trust Agreement, specifying the amount then due and owing to the Company under this Agreement. Any balance shown to be due to the Company in any such quarterly or interim report and related notice will be paid by the Trustee in immediately available funds from assets available for such purpose in the Trust Account as directed by the Company within 20 Business Days following receipt of the Company) shall notify report by the Reinsurer in writing as soon as possible but in any event no later than 30 days from and related notice by the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice")Trustee; provided, however, that all payments of Ultimate Net Loss hereunder shall be in respect whole number multiples of Programs$10 million, the Company will provide notice and the Reinsurer's election excess, if any, of a Ceded Percentage will apply to all Policies that are part of any Ultimate Net Loss otherwise due hereunder over the largest such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy multiple which is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage such amount shall be no less than 15 - 85A/C where A is carried forward to the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy next calendar quarter (and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%thereafter, as set forth above, the Ceding Percentage shall be 50%if applicable). In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with event there is net favorable development as respects a report, segregated by Underwriting Year of the following Loss Occurrence prior to commutation in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiumsperiod in which such Loss Occurrence took place, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall no amount will be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss eventCompany at such time, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the but such amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid offset from Ultimate Net Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementssubsequently due hereunder.

REPORTS AND REMITTANCES. The A. At inception the Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify cede to the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation share of the Reinsurer Affiliate on unearned premium (less provisional commission) applicable to subject business in force at the Side-by-Side Policy is effective date of this Contract, but said amount less than 154.0% of the sum ceded unearned premium may be withheld from payment by the Company and deposited in a funds withheld account. The Company shall remit 4.0% of the participations of ceded unearned premium to the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 at inception. B. Within 30 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, the Company shall provide report to the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the PoliciesReinsurer: (a) Policies 1. Cumulative ceded net written during premium collected from the inception of this Contract to the end of the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums2. Cumulative gross written premium from the inception of this Contract to end of the quarter; 3. Provisional commission on (c1) Gross Written Premiums and Net Written Premiums collected by the Companyabove plus any ceding commission adjustments for prior quarters; (d) Operating Expenses (including an itemization 4. Cumulative ceded loss and loss adjustment expense paid from the inception of each constitutent element)this Contract to the end of the quarter; (e) Origination Expenses for Policies (including an itemization 5. Ceded unearned premium as of each constituent element)the end of the quarter; (f) The ceding fee 6. Ceded outstanding losses and loss adjustment expense as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during of the end of the quarter. The positive balance of (1) less (3) less (4) shall be due the Reinsurer, but the Company may withhold from payment such amount less a Reinsurer's expense allowance on (1) above, and the Company shall pay the Reinsurer the Reinsurer's expense allowance on (1) above with its report. The balance of (1) less (3) less Reinsurer's expense allowance shall be credited to the funds withheld account in the middle of the respective quarter being reported upon. Ceded loss and loss adjustment expense paid shall be debited to the funds withheld account at the latter of the middle of the respective quarter or 75 days prior to the report date. Any negative balance due shall be first released to the Company from the funds withheld account, and any remaining amount shall be remitted by the Reinsurer within 30 days ofreceipt after receipt and verification of the quarterly Company's report. Should payment due from the Reinsurer exceed $100,000 . C. Net written premium collected" as respects any one loss event, the Reinsurer upon used herein is defined as gross written request premium collected by the Company accompanied by supporting documentation shall pay for the amount due in respect thereof within 5 classes of business days. If the aggregate amount of claims paid reinsured hereunder, less cancellations and return premiums, and less premiums ceded by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited reinsurance which inures to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms benefit of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsthis Contract.

REPORTS AND REMITTANCES. 1. The Company Reinsured shall furnish to the Reinsurer within fifteen (or Arch Underwriters Ltd. on behalf 15) days prior to the close of the Company) calendar quarter an estimate of the amount of Ultimate Net Loss ceded under this Agreement as of the close of that calendar quarter, including a separate estimate of the amount of Ultimate Net Loss incurred from Clash losses. 2. The Reinsured shall notify furnish to the Reinsurer in writing as soon as possible but in any event no later than 30 within thirty (30) days from after the earlier close of each calendar quarter: (a) quarterly account of Subject Earned Premium segregated by line of business (and for the inception date or date total of binding all lines). (b) quarterly accounts of any Policy paid and unpaid Ultimate Net Loss segregated by line of business (and for the material terms total of such Policyall lines of business). (c) recent preceding calendar quarter. 3. Within 15 days of such notice, The Reinsured shall furnish to the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy within thirty ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 30) days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, quarterly accounts of paid Ultimate Net Loss ceded under this Agreement which are due to be paid by the Company Reinsurer to the Reinsured. As respects the Funds Withheld Balance, Ultimate Net Loss amounts shall provide be deemed to be paid as of the date the Reinsurer agrees to the amount to be paid and such agreement shall be made within sixty (60) days after receipt of this account. 4. The Reinsured shall furnish to the Reinsurer within one hundred twenty (120) days after the close of each calendar year annual paid projections of Ultimate Net Loss, including Allocated Loss Adjustment Expense, segregated by line of business. 5. The Reinsurer shall furnish to the Reinsured within thirty (30) days after the close of each quarter a reconciliation of the Experience Account from inception to the close of the most recent preceding calendar quarter. 6. All amounts due and payable under this Agreement shall be remitted directly by wire transfer between the Reinsured and the Reinsurer with a reportnotice to the Intermediary, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected unless such amounts are withheld by the Company;Reinsured in accordance with the Funds Withheld provision of this Agreement. (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter7. Any balance due late payments by either party shall accrue interest at a rate equal to the Company shall be remitted by the Reinsurer within 30 days ofreceipt greater of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 701% of the Gross Written Premiums during such per month, compounded semi-annually, or the Company may request that yield on the Re insurer advance payment for one year United States Treasury Bill xxxstent on the excess of (i) first business day after the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such monthprevious January 1, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer as published in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a PolicyWall Street Journal, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsplus 250 basis points.

REPORTS AND REMITTANCES. (a) The Company (Parties shall conduct monthly settlements based upon monthly bordereaux to be provided by or Arch Underwriters Ltd. on behalf of the CompanyCeding Companies evidencing the amount due or to be due in a form, and containing such detail, as is agreed to by the Parties. Each Party shall pay or credit in cash or its equivalent to the other all net amounts for which it may be liable under the terms and conditions of this Agreement within ten (10) shall notify days after receipt of each Premium Bordereaux and Inuring Reinsurance report. In connection with such monthly settlement the Ceding Companies shall: (i) With regard to the Insurance Contracts and Cut-Through Endorsements, furnish to Reinsurer, in an electronic format the following: (1) The Ceding Companies will prepare and submit to the Reinsurer in writing as soon as possible but in any event a detailed and itemized monthly statement (the “Premium Bordereaux”) of (a) all Premiums written and Premium adjustments (whether additional or returned), (b) Premiums collected by the Ceding Company, (c) based on information provided by Reinsurer no later than 30 days from the earlier 10th day of each month (a “Premiums Collection Report”), Premiums collected by Reinsurer, and (c) Ceding Commissions payable, Ceding Commission adjustments and Ceding Commissions paid or collected by the Ceding Companies with respect to all business and transactions effective in that month no later than the 15th day of the inception date or date of binding of any Policy subsequent month; provided that if reasonably required by Reinsurer, Ceding Companies shall provide the information described above and the accounts receivable aging described in subsection (ii) more frequently than monthly to the extent it is commercially practicable for them to do so. (2) The Ceding Companies will provide a monthly account current report (the “Account Current”) to the Company no later than the 15th day of the material terms subsequent month. The Account Current will include the following information on a per Policy basis as of such Policy. Within 15 days the end of such notice, the Reinsurer shall notify given month: a) Policy Number; b) Insured; c) Policy Effective Date; d) Expiration Date; e) Transaction Type; f) Written Premium for the Company month; g) Commission respective of confirmation that it elects a the written Premium noted above and payable to agents and producers unaffiliated with the Ceding Percentage of 50% or that it elects a Companies; h) Policy fee payable to persons unaffiliated with the Ceding Percentage lower than 50%, but no lower than 15%, in respect Companies (if applicable); i) Claims paid; j) Loss Adjustment Expenses paid; k) Surcharges/Tax (if applicable); l) Net Amount Due to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply ; m) Outstanding balance owed to all Policies that are part of such Programthe Ceding Companies; provided further that where there is a Side-by-Side Policy, and n) Installment plan and premium billed (if applicable) (ii) Based upon the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth abovePremium Bordereaux delivered each month, the Ceding Percentage shall Companies will provide the Reinsurer with a monthly accounts receivable aging by Policy with such report to be 50%. In addition, received by Reinsurer within 75 thirty (30) days of the end of each calendar quarter, the Company month for which the report has been prepared. (iii) The Ceding Companies will provide Reinsurer a monthly report of underwriting activity. Such report shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policiesinclude: (a1) Total Premium Written; (2) Policies issued by named insured, including premium; (3) Cut-Through Endorsements issued by named insured and policy number; (4) A pricing report split by new and renewal business, including all pricing information; and (iv) The Ceding Companies will prepare and submit to the Reinsurer a detailed and itemized monthly statement (the “Claims Bordereaux”) of all required Claims statistical information including, but not limited to, Claims and Loss Adjustment Expenses paid and outstanding reserves no later than the 15th day of the subsequent month. (v) The Ceding Companies will prepare and submit to the Reinsurer a detailed and itemized monthly statement of premiums ceded pursuant to Inuring Reinsurance, outstanding obligations to pay such ceded premium and such ceded premium paid in each case by assuming reinsurer and treaty or agreement relating to the Inuring Reinsurance, including, if Reinsurer shall provide such information to the Ceding Companies on or before the 10th day of the month, any ceded premium paid by the Reinsurer . From time-to-time upon reasonable written during notice by Reinsurer to the quarter;Ceding Companies, Reinsurer may replace, modify or amend the procedures and reporting requirements set forth in (i) through (iv) above in good faith in order to facilitate efficient performance by the Parties of their respective obligations under this Agreement . (b) Gross Written Premiums The Ceding Companies and Net Written Premiumsthe Reinsurer shall furnish each other with such records, in each case less cancellations reports and return premiums;information with respect to the Unearned Premium Reserve, the Actual UPR Transfer Amount, Loss Adjustment Expenses, Losses, Claims and the reinsurance contemplated hereby as may be reasonably required by the other Party to comply with any internal reporting requirements or reporting requirements of any Governmental Authority, to prepare and complete such Party’s quarterly and annual financial statements or to calculate the final Actual UPR Transfer Amount and any UPR Adjustment. (c) Gross Written Premiums If any Ceding Company or the Reinsurer receives notice of, or otherwise becomes aware of, any inquiry, investigation, proceeding, from or at the direction of a Governmental Authority, or is served or threatened with a demand for litigation, arbitration, mediation or any other similar proceeding relating to the Insurance Contracts, such Ceding Company or the Reinsurer, as applicable, shall promptly notify the other party thereof, whereupon the parties shall cooperate in good faith and Net Written Premiums collected by use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner in light of all the Company;relevant business, regulatory and legal facts and circumstances. (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid LossEach Party shall have the right, Loss Adjustment Expense through authorized representatives and Extra Contractual Obligations; (h) Outstanding Lossupon reasonable advance notice during normal business hours, Loss Adjustment Expense to periodically audit and Extra Contractual Obligations; (i) Subrogationinspect all books, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt records, and papers of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due other Party solely in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of connection with (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss Insurance Contracts and Loss Adjustment Expense during such month over any reinsurance hereunder or claims in connection therewith, (ii) 70% the performance of the sum for all Policies claims, underwriting and other administration services pursuant to Article 4, and (iii) the determination of the applicable Ceded Percentages of that month's Gross Written PremiumsActual UPR Transfer Amount and the UPR Adjustment. If All such audits or inspections conducted by Reinsurer through its authorized representatives shall include claim systems and imaged document access, both on-site and remote. Reinsurer may appoint any Person it deems necessary to conduct such audits or inspections. Each Party shall treat the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during other Party’s books, records, and papers in confidence. A Party shall be permitted to conduct such month, the Company may request that the Re insurer advance payment for the excess of audits relating to subsections (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsabove no more frequently than semi-annually.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than A. Within 30 calendar days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of following the end of each calendar quarter, the Company or its representatives shall provide report to the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the PoliciesReinsurer: (a) Policies written 1. Net Premium Written accounted for during the quarter; ; 2. the ceding commission applicable to the above as provided for in this Agreement; 3. Losses and Loss Expenses paid during the quarter, less inuring reinsurance; 4. subrogation, salvage, or other recoveries credited during the quarter; 5. outstanding loss reserves. The positive balance of (b1) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c2) Gross Written Premiums and Net Written Premiums collected less (3) plus (4) shall be remitted by the Company; (d) Operating Expenses (including an itemization Company to the Reinsurer within 60 calendar days after the close of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the said calendar quarter. Any balance shown to be due to the Company Company, shall be remitted by the Reinsurer within 30 60 calendar days ofreceipt after receipt and verification of the quarterly Company's report. Should payment due from . B. Annually the Company or its representatives shall furnish the Reinsurer exceed $100,000 with such information as the Reinsurer may require to complete its Annual Convention Statement. C. This paragraph C shall apply only as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% Policies covered under parts (a) and (c) of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess business covered under Article 1 of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fundAgreement. Within 60 30 calendar days following the end of each fiscal yearcalendar quarter, the Company or its representatives shall furnish a report to the Reinsurer indicating the Loss and Loss adjustment expense reserves, including but not limited to reserves for Losses incurred but not reported and unallocated loss adjustment expenses, as of the end of that calendar quarter as respects premiums earned on the Effective Date on those Policies (the "Reserves") and indicating the cumulative Losses and Loss adjustment expenses (including unallocated loss adjustment expenses) paid by or due from the Reinsurer under this Agreement through that calendar quarter as respects premiums 147 earned on the Effective Date on those Policies (the "Cumulative Paid Losses"). If the Reserves plus the Cumulative Paid Losses exceed $Y (which equals the total amount for Loss and Loss adjustment expense reserves paid to the Reinsurer pursuant to paragraph A of the Premium Article of this Agreement) then the Company will pay the Reinsurer the amount, if any, by which the Reserves plus the Cumulative Losses at the end of that calendar quarter exceed the greater of: (a) $Y, and (b) the Reserves plus the Cumulative Paid Losses indicated on the report for the immediate preceding calendar quarter. Any debit or credit amount resulting from a previous quarter's calculation shall be a debit or credit when calculating the subsequent quarter's report. Any payment by the Company under this paragraph C will be remitted with the accompanying quarterly report. If so requested by the Reinsurer, the Company shall furnish compute the Reinsurer with above calculation earlier than the next calendar quarter. If as a statement showing result of said calculation payment is due the Unearned PremiumReinsurer, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which Company will remit same with its report within five business days of the Reinsurer may require for its annual financial statementsReinsurer's request.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. A. Within 15 days after the effective date of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programsthis Contract, the Company will provide notice and shall remit the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation ’s share of the Reinsurer Affiliate on unearned premium (less commission thereon) applicable to subject business in force at the Side-by-Side Policy is less than 15% effective date of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 this Contract. B. Within 30 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, the Company shall provide report to the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies:Reinsurer (a) Policies 1. Ceded net written during premium for the quarter; (b) Gross Written Premiums and 2. Ceded Net Written Premiums, in each case less cancellations and return premiumsEarned Premium for the quarter; 3. Commission on (c1) Gross Written Premiums and Net Written Premiums collected by the Companyabove; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss4. Ceded losses, Loss Adjustment Expense and Extra Contractual Obligations; losses arising from any Loss Occurrence paid during the quarter (h) Outstanding Loss, net of any recoveries during the quarter under the “cash call” provisions of the Claims and Loss Adjustment Expense and Extra Contractual ObligationsArticle); (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during 5. Ceded unearned premiums and ceded outstanding loss reserves as of the end of the quarter. The positive balance of (1) less (3) less (4) shall be remitted by the Company with its report. Any balance shown to be due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt after receipt and verification of the quarterly Company’s report. Should payment due from the Reinsurer exceed $100,000 Furthermore, as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such monthsubparagraph 4 above, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss shall identify losses and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such monthFCS catastrophe number, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. where applicable. C. Within 60 30 days following after the end of each fiscal yearContract Year, the Company shall report to the Reinsurer all necessary data required in accordance with the provisions of the Material Adverse Change Article. D. Within 90 days after September 30 of each Contract Year, the Company shall report to the Reinsurer 1. The Risk Management Solution RiskLink Version 11 EDM and RDM data as of September 30 of the Contract Year; 2. The Homeowners portion of the Company’s cost for the Catastrophe Excess of Loss reinsurance for the Contract Year calculated as the percentage of Homeowners average annual loss compared to the overall property average annual loss, as determined by Risk Management Solution RiskLink Version 11, applied to the total catastrophe premium paid by the Company; and E. Annually, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other such information which as the Reinsurer may require for to complete its annual financial statementsAnnual Convention Statement.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy1. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of following the end of each calendar quartermonth, the Company States Title shall provide furnish the Reinsurer with a report, segregated by Underwriting Year Agreement Year, containing: 1.1 Gross Net Written Premium as of the following in respect end of the Policies: (a) Policies written during the quartermonth; (b) 1.2 A cumulative Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiumsPremium as of the end of the month; 1.3 Ceding Commission (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent elementas defined in Article 13 – CEDING COMMISSION AND PROFIT COMMISSION); (e) Origination Expenses for Policies 1.4 Paid Loss and Allocated Loss Adjustment Expense (including an itemization any Extra Contractual Obligations or Excess of each constituent elementPolicy Limits judgements or Ex-Gratia Settlements); (f) The ceding fee as provided hereunder1.5 Subrogation, salvage, or other recoveries on Losses occurring during the Term of this Contract; (g) Paid Loss, 1.6 Reserves for outstanding Loss and Allocated Loss Adjustment Expense and (including reserves for outstanding Extra Contractual Obligations; Obligations or Excess of Policy Limits judgements). The positive balances of (h1.1) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; less (i1.3) Subrogation, salvage or other recoveries; less (j1.4) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during will be remitted by the quarterApplicable Company with its report. Any negative balance of (1.1) less (1.3) less (1.4) shall be due to the Applicable Company and shall be remitted by the Reinsurer to the Applicable Company within 30 days ofreceipt 10 Business Days after receipt of said report. 2. At the written request of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss eventReinsurer, the Reinsurer upon written request parties agree to meet on a quarterly basis to review the claims information provided by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited States Title to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim Reinsurer, or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fundas requested by Xxxxxxxxx. 3. Within 60 15 days following the end of each fiscal yearquarter or as otherwise may be agreed, the Company States Title shall furnish the Reinsurer with a statement showing full written summary of any changes undertaken and/or planned to their underwriting model(s). 4. The Companies undertake to deal openly and co-operatively with any regulator in relation to the Unearned Premium, operation of this Contract and the total reserves for outstanding Loss Reinsurer’s exposures and Loss Adjustment Expenses, liabilities under it and will permit any other information which regulatory body with jurisdiction over the Reinsurer may require for to have access to any of its annual financial statementsbusiness premises where the Companies carry on business subject to this Contract to inspect and audit the records, statistical information, accounts and business processes relating to the operation of this Contract and the Reinsurer’s exposures and liabilities under it. The Companies shall, unless prohibited by law, inform the Reinsurer promptly and in writing in the event that any regulatory or supervisory body exercises or seeks to exercise any right to inspect or audit the records held by the Companies in relation to this Contract.

REPORTS AND REMITTANCES. A. The first statement of account shall be due to the Indemnitor from the Company (or Arch Underwriters Ltd. on behalf the anniversary of the Company) Closing Date. The first statement only shall notify the Reinsurer in writing as soon as possible but in include a charge for interest on any event no later than 30 days Uncollectible Reinsurance Recoverables due from the earlier Indemnitor as of the inception date statement date. Such interest charge shall be equal to the rate of interest announced by Citibank, N.A. as its prime or date of binding of any Policy base rate as of the material terms statement date, calculated on the basis of such Policythe actual number of days elapsed since the Uncollectible Reinsurance Recoverables accrued or the Closing Date, whichever is less, divided by three-hundred-and-sixty-five (365) days. Within 15 days Such interest charge shall be included in the Per Company Sub-Limit of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of ProgramsLiability set forth on Schedule A. B. Thereafter, the Company will provide notice and the Reinsurer's election shall submit quarterly statements of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Sideaccount ("quarterly reports") within forty-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 five (45) days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, the Company . C. Such quarterly reports shall provide the Reinsurer with a report, segregated be sent by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums both facsimile transmission and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected United States Postal Service or any other delivery service used by the Company;. (d) Operating Expenses (including an itemization of D. Such quarterly reports shall include information showing, as applicable with respect to each constitutent element);company listed on Schedule A, Uncollected Reinsurance, Settlement Concessions, Advances received, Advances due, Refunds due, and unpaid amounts outstanding. (e) Origination Expenses for Policies (including an itemization of each constituent element);E. Remittances shall be on a "Net Basis," defined as amounts owed between the Parties under this Agreement. (f) The ceding fee as provided hereunder; (g) Paid LossF. Remittances, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance whether due to the Company from the Indemnitor or to the Indemnitor from the Company, shall be remitted due within forty-five (45) days from the date of receipt of the facsimile transmission of each quarterly report. G. Failure by the Reinsurer within 30 days ofreceipt Indemnitor or the Company to pay amounts owed when due under this Agreement shall result in imposition of an interest penalty equal to the rate of interest announced by Citibank, N.A. as its prime or base rate as of the quarterly report. Should due date of any remittance, calculated on the basis of the actual number of days elapsed past the due date of any remittance divided by three-hundred-and-sixty-five (365) days and payment due from the Reinsurer exceed $100,000 as respects any one loss eventof other losses, the Reinsurer upon written request costs, and expenses accrued or incurred by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% or Indemnitor as a result of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that monthother Party's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementslate payment.

REPORTS AND REMITTANCES. The Exposures Reimbursement Premium Subparagraphs 1. and 2. do not apply if the state regulator, receiver, or rehabilitator provides a letter of assurance to the FHCF stating that the Company (will have the resources and will pay the full Reimbursement Premium for the Coverage Level selected through the execution of this Contract. When control or Arch Underwriters Ltd. on behalf oversight has been transferred, in whole or in part, through a legal or regulatory action, the controlling management of the Company) Company shall notify the Reinsurer in writing specify by August 1 or as soon thereafter as possible (but not to exceed two weeks after any regulatory or legal action) in any event a letter to the FHCF as to the Company’s intentions to either pay the full FHCF Reimbursement Premium as specified in subparagraph 1., to default to the 45 percent Coverage Level being deemed as specified in subparagraph 2., or to provide the assurances as specified in subparagraph 3. A New Participant that first begins writing Covered Policies on or after June 1 but prior to December 1 of the Contract Year shall pay the FHCF a provisional Reimbursement Premium of $1,000 no later than 30 days from the earlier date the New Participant began writing Covered Policies. The Administrator shall calculate the Company's actual Reimbursement Premium for the period based on its actual exposure as of November 30 of the inception date Contract Year, as reported on or date of binding of any Policy before February 1 of the material terms of such PolicyContract Year. Within 15 days of such noticeTo recognize that New Participants have limited exposure during this period, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% actual Reimbursement Premium as determined by Reinsurer processing the Company's exposure data shall then be divided in half, the Cession Noticeprovisional Reimbursement Premium shall be credited, except that if and the participation resulting amount shall be the total Reimbursement Premium due for the Company for the remainder of the Reinsurer Affiliate on the Side-by-Side Policy Contract Year. However, if that amount is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company$1,000, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of the end of each calendar quarter, then the Company shall provide the Reinsurer with a report, segregated by Underwriting Year pay $1,000. The Reimbursement Premium payment is due no later than April 1 of the following in respect Contract Year. The Company’s Retention and coverage will be determined based on the total Reimbursement Premium due as calculated above. A New Participant that first begins writing Covered Policies on or after December 1 through and including May 31 of the Contract Year shall pay the FHCF a Reimbursement Premium of $1,000 no later than 30 days from the date the New Participant began writing Covered Policies: (a) Policies written during . The requirement that the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by Reimbursement Premium is due on a certain date means that the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company Reimbursement Premium shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation wire transfer or ACH and shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be have been credited to the Reinsurer FHCF’s account, as set out on the invoice sent to the Company, on the due date applicable to the particular installment. Except as required by Section 215.555(7)(c), Florida Statutes, or as described in the account following sentence, Reimbursement Premiums, together with earnings thereon, received in which a given Contract Year will be used only to pay for Losses attributable to Covered Events occurring in that Contract Year or for Losses attributable to Covered Events in subsequent Contract Years and will not be used to pay for past Losses or for debt service on post-event revenue bonds issued pursuant to Section 215.555(6)(a)1., Florida Statutes. Reimbursement Premiums and earnings thereon may be used for payments relating to such revenue bonds in the paid Loss appearsevent emergency assessments are insufficient. If Reimbursement Premiums or earnings thereon are used for debt service on post-event revenue bonds, then the Company is required to fund a claim amount of the Reimbursement Premiums or loss fund pursuant earnings thereon so used shall be returned, without interest, to the terms of a Policy, Fund when emergency assessments or other legally available funds remain available after making payment relating to the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, post-event revenue bonds and any other information purposes for which the Reinsurer may require for its annual financial statementsemergency assessments were levied.

REPORTS AND REMITTANCES. 1. The Company Reinsured shall furnish to the Reinsurer within fifteen (or Arch Underwriters Ltd. on behalf 15) days prior to the close of the Company) calendar quarter an estimate of the amount of Ultimate Net Loss ceded under this Agreement as of the close of that calendar quarter broken out between loss and Allocated Loss Adjustment Expense. 2. The Reinsured shall notify furnish to the Reinsurer in writing as soon as possible but in any event no later than 30 within thirty (30) days from after the earlier close of each calendar quarter: (a) quarterly account of Subject Earned Premium segregated by line of business (and for the total of all lines). (b) quarterly accounts of paid and unpaid Ultimate Net Loss segregated by line of business (and for the total of all lines of business) and broken out between Y2K Loss and non-Y2K loss (loss, Allocated Loss Adjustment Expense, ECO and XPL). (c) a reconciliation of the Funds Withheld Balance from inception date or date of binding of any Policy to the close of the material terms of such Policymost recent preceding calendar quarter. 3. Within 15 days of such notice, The Reinsured shall furnish to the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy within thirty ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 30) days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, quarterly accounts of paid Ultimate Net Loss ceded under this Agreement broken out between Y2K Loss and non-Y2K loss (loss, Allocated Loss Adjustment Expense, ECO and XPL) which are due to be paid by the Company Reinsurer to the Reinsured. As respects the Funds Withheld Balance, Ultimate Net Loss amounts shall provide be deemed to be paid as of the date the Reinsurer agrees to the amount to be paid and such agreement shall be made within sixty (60) days after receipt of this account. 4. The Reinsured shall furnish to the Reinsurer within one hundred twenty (120) days after the close of each calendar year annual paid projections of Ultimate Net Loss, broken out between Y2K Loss and non-Y2K loss (loss, Allocated Loss Adjustment Expense, ECO and XPL), and segregated by line of business. 5. The Reinsurer shall furnish to the Reinsured within thirty (30) days after the close of each quarter a reconciliation of the Experience Account from inception to the close of the most recent preceding calendar quarter. 6. All amounts due and payable under this Agreement shall be remitted directly by wire transfer between the Reinsured and the Reinsurer with a reportnotice to the Intermediary, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected unless such amounts are withheld by the Company;Reinsured in accordance with the Funds Withheld provision of this Agreement. (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter7. Any balance due late payments by either party shall accrue interest at a rate equal to the Company shall be remitted by the Reinsurer within 30 days ofreceipt greater of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 701% of the Gross Written Premiums during such per month, compounded semi-annually, or the Company may request that yield on the Re insurer advance payment for one year United States Treasury Xxxx existent on the excess of (i) first business day after the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such monthprevious January 1, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer as published in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a PolicyWall Street Journal, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsplus 250 basis points.

REPORTS AND REMITTANCES. The 1. Net Premiums to be paid by the Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify to the Reinsurer in writing as soon as possible but in any event shall be due and payable no later than 30 thirty (30) days after the end of each calendar month. 2. All Ultimate Net Loss Payments under this Agreement shall be settled by the Company through a revolving fund (the “Claims Revolving Fund”) provided by the Reinsurer, which on the Inception Date of this Agreement shall be an amount to be mutually agreed and from which all Ultimate Net Loss Payments shall be paid on a quarterly basis. The amount of the Claims Revolving Fund shall be determined from time to time by the parties and shall be adjusted based on the average Ultimate Net Loss Payments paid through the Claims Revolving Fund during the preceding two quarters. The amount in the Claims Revolving Fund shall be maintained at the agreed level and any payments made shall be restored to the Claims Revolving Fund by the Company withholding from the earlier quarterly remittance of Net Premiums to the inception date or date Reinsured at the end of binding each quarter, the amount by which the agreed amount exceeds the actual amount in the Claims Revolving Fund at the end of any Policy of each quarter. In the material terms of such Policy. Within 15 days of such noticeevent that the premiums due the Reinsurer are insufficient to restore the Claims Revolving Fund, the Reinsurer shall notify remit by wire transfer to the Company Claims Revolving Fund the amount of confirmation that it elects any deficiency. In the event of a Ceding Percentage large loss or series of 50% or that it elects a Ceding Percentage lower than 50%losses, but no lower than 15%due to be paid by the Company, and due to be paid by the Reinsurer during the following quarter(s) and the amount in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programsthe Claims Revolving Fund is insufficient, the Company will provide notice may request and the Reinsurer's election Reinsurer shall provide payment by an agreed settlement separate from the quarterly account. The Company shall credit the Reinsurer quarterly with the interest earned on the Claims Revolving Fund which shall be invested in short term instruments and such interest shall be included in the account. 3. The Renewal Expense Allowance to be paid by the Reinsurer to the Company shall be due and payable forty-five (45) days after the end of each calendar month. 4. The Profit Share Amount to be paid by the Reinsurer to the Company shall be due and payable thirty (30) days after the later of (i) each Profit Share Date or (ii) the date that the Profit Share Amount can be calculated. 5. Any payments to either party received more than fifteen (15) days after the date due shall be deemed late payments. Any late payments by either party shall accrue interest at a Ceded Percentage will apply rate equal to all Policies that are part the greater of 1% per month, compounded semi-annually or the Yield on the one year United States Treasury Xxxx existent on each January 1 plus 250 basis points (such Program; interest being a “Late Fee”). 6. A report shall be provided further that where there is a Side-by-Side Policyby the Company to the Reinsurer on the Inception Date providing the information necessary to calculate the Initial Premium, the Ceded Percentage may be between zero and 50% as determined in accordance with Article VI, Reinsurance Premium (the “Initial Report”). If a Third Party Administrator has been appointed by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage obligation to provide the reports in paragraphs 7,8,9 and 12 shall be no less than 15 - 85A/C where A is the percentage participation obligation of the Reinsurer Affiliate on the Side-by-Side Policy such Third Party Administrator and C is the percentage participation of not the Company. 7. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 Within thirty (30) days of the end of each calendar quarter, month the Company shall provide supply the Reinsurer with a report, segregated by Underwriting Year report (the “Monthly Report”) that shall provide the following data for the monthly period and cumulatively from the In Force Date to the end of the following in respect of the Policiescalendar month for such Monthly Report: (a) Policies written during the quarter; (b) Gross Written Net Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected received by the Company; (db) Operating Expenses (including an itemization the Company’s share of each constitutent element)the Administrative Expense Allowance; (ec) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Ultimate Net Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.Company; and

REPORTS AND REMITTANCES. The Company Within sixty (or Arch Underwriters Ltd. on behalf of the Company60) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following report in respect of the PoliciesSubject Business. The specific content and format of this report shall be mutually agreed within ninety (90) days of the Effective Date. At a minimum, the report shall include the following quarterly information with respect to the Subject Business: (a) Policies written during the quarter; (b) Gross Written Premiums x. Xxxxx and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid net paid Loss, Allocated Loss Adjustment Expense and Extra Contractual ObligationsULAE; x. Xxxxx and net outstanding (hcase and IBNR) Outstanding Loss, Allocated Loss Adjustment Expense and Extra Contractual ObligationsULAE; (i) Subrogationc. Applicable reinsurance, subrogation, salvage or other recoveries; (j) d. Any applicable premium or other similar taxesadditional premium; e. The Company’s cumulative net paid for the Subject Business since April 1, 2017; f. Any reserves ceded by the Company in excess of the Retention; g. Any Ultimate Net Loss in excess of the Retention; and (k) Inuring Reinsurance procured during h. Any amounts withdrawn by the quarterReinsured Group from the Trust Account. Any balance due to the Reinsurer shall be remitted by the Company along with the quarterly report. Any balance due to the Company shall be remitted by the Reinsurer within 30 forty-five (45) days ofreceipt of receipt of the quarterly report. Should payment due from For the Reinsurer exceed $100,000 as respects any one loss eventavoidance of doubt, the Reinsurer upon written request Reinsurer’s liability hereunder may be satisfied by withdrawals by the Company accompanied by supporting documentation shall pay from the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid Trust Account as permitted by the Company during any one month is greater than 70% of the Gross Written Premiums during such monthTrust Agreement, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify have no obligation to pay settlements hereunder to the extent of amounts so withdrawn. Notwithstanding any other provision of this Agreement, but without limiting the obligation of the Reinsurer to provide collateral as set forth in Article 15, in no event shall the Reinsurer be obligated to settle balances due hereunder directly with the Company for its proportionate share of such funduntil the Trust Account is fully depleted, and in no event shall the Reinsurer be obligated to pay any amounts to the Company or otherwise until Ultimate Net Loss exceeds the Retention. Within 60 forty-five (45) days following the end of each fiscal calendar year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total net paids and reserves outstanding for outstanding Loss and Loss Adjustment ExpensesExpenses and Unallocated Loss Adjustment with respect to the Covered Business, and any other information reasonably available to any member of the Reinsured Group which the Reinsurer may require for its annual financial statements. All accounts rendered, payments made and monetary limits expressed hereunder shall be in United States Dollars.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. Inc. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 60 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent constituent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Reinsurer shall be remitted by the Company along with the quarterly report. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of receipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 \00,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 S business days. If the aggregate amount of claims paid by the Company during any one anyone month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer Reinsurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 30 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statements.

REPORTS AND REMITTANCES. The Company COMPANY shall render a monthly bordereau account within thirty (or Arch Underwriters Ltd. on behalf of 30) days after each calendar month end. This account shall summarize premiums, return premiums, allowances for commissions, losses paid, and loss adjustment expenses paid and salvage recovered. The account shall also reflect the Companynet balance due by either party. The net balance due by either party shall be paid by the debtor party within thirty (30) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier date of the inception date report. Reinsurer acknowledges that the Company and Ranger Insurance Company ("Ranger"), an affiliated company of Reinsurer, have entered or date will enter into a producer agreement ("Producer Agreement") pursuant to which Ranger will provide agency services to North River for the public entity business reinsured by this Agreement. Reinsurer agrees that the monthly bordereau discussed above will net both the premiums, commission, paid loss and loss adjustment expenses, under the Producer Agreement and the reinsurance bordereau pursuant to this Agreement. A single accounting statement will be provided to Reinsurer. ARTICLE FOURTEEN -- ARBITRATION Any and all disputes arising out of binding of any Policy or relating to this Agreement shall be submitted for resolution to an independent arbitrator mutually agreed to by the COMPANY and the REINSURER, upon the written request of the material terms COMPANY or the REINSURER. If the parties are unable to mutually agree upon an arbitrator within ten (10) calendar days after delivery of such Policy. Within 15 days of such noticea written request for arbitration, the COMPANY and the Reinsurer shall notify each nominate three (3) individuals who have never been affiliated with any of the Company parties and who are present or former executive officers of confirmation that it elects an insurance or reinsurance company and decline two (2) of the three (3) individuals nominated by the other, and the list of the remaining nominees shall be submitted to a Ceding Percentage court of 50% competent jurisdiction and the court shall select the arbitrator from among the names submitted. If a party fails to nominate three (3) individuals within thirty (30) calendar days after being requested to do so, the other party shall also appoint the second arbitrator and the two arbitrators shall select the third arbitrator. If the two arbitrators fail to agree upon the appointment of a third arbitrator within thirty (30) calendar days after their nominations, the third arbitrator shall be chosen by the manager of the American Arbitration Association and such third arbitrator shall be a person who is an active or that it elects retired disinterested officer of an insurance or reinsurance company. Each party shall submit its case to the arbitrator(s) within thirty (30) calendar days after the date of appointment of the arbitrator(s). The arbitrator(s) shall make its determination with regard to the custom and usage of the insurance and reinsurance business and render a Ceding Percentage lower than 50%, but no lower than 15%, written decision solely as to the issue presented in respect to the notice of arbitration within sixty (60) calendar days after such Policy ("Cession Notice")submission. The majority decision of the arbitrators shall be final and binding in all respects upon all parties hereto. Judgment upon any award may only be entered in a Federal court of competent jurisdiction located in the State of New Jersey; provided, however, that if such judgment cannot be entered in respect such a Federal court expeditiously, such judgment only then may be entered in a state court of Programscompetent jurisdiction located in the State of New Jersey. Arbitration hereunder shall take place in New Jersey unless the COMPANY and the REINSURER agree otherwise. Except as otherwise provided herein, the Company will provide notice COMPANY and the Reinsurer's election REINSURER shall jointly and equally bear the costs, fees, disbursements and other expenses of the arbitrator. It is agreed that the jurisdiction of the arbitrators to make or render any decision or award shall be limited by the limit of liability expressly herein before set forth, and that the arbitrators shall have no jurisdiction to make any decision or render any award exceeding such expressly stated limit of liability of the REINSURER, nor do 3 they have the jurisdiction to authorize any punitive, exemplary or consequential damage awards between the parties hereto. ARTICLE FIFTEEN -- INSOLVENCY In the event of the insolvency, liquidation or rehabilitation of the COMPANY or the appointment of a Ceded Percentage will apply conservator, receiver, liquidator or statutory successor of the COMPANY, an allocable portion of the reinsurance coverage provided hereunder shall be payable by the REINSURER directly to all Policies that are part the COMPANY or to its conservator, receiver, liquidator or statutory successor, on the basis of the liability of the COMPANY without diminution because of such Program; provided further that where there is insolvency, liquidation, rehabilitation or appointment or because such conservator, liquidator or statutory successor has failed to pay all or a Side-by-Side Policyportion of any claims. In any such event, the Ceded Percentage may such reinsurance coverage shall be between zero and 50% as determined by Reinsurer in the Cession Noticepayable immediately upon demand, except that if the participation of the Reinsurer Affiliate with reasonable provision for verification, on the Side-by-Side Policy is less than 15% basis of claims allowed against the sum COMPANY by any court of the participations of the Reinsurer Affiliate and the Companycompetent jurisdiction or by any conservator, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%receiver, as set forth above, the Ceding Percentage shall be 50%liquidator or statutory successor. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss such event, the Reinsurer upon conservator, receiver, liquidator or statutory successor of the COMPANY shall give written request notice to the REINSURER of the pendency of each claim against the COMPANY on the Policies within a reasonable time after each such claim is filed in the insolvency, liquidation or rehabilitation proceeding. During the pendency of any such claim, the REINSURER may, at its own expense, investigate such claim and interpose in the proceeding in which such claim is to be adjudicated any defense or defenses which the REINSURER may reasonably deem available to the COMPANY or its conservator, receiver, liquidator or statutory successor. The expenses incurred in connection therewith by the Company accompanied REINSURER shall be chargeable, subject to court approval, against the COMPANY as part of the expense of such insolvency, liquidation or rehabilitation to the extent of any benefit which accrues to the COMPANY solely as a result of the defense or defenses undertaken by supporting documentation shall pay the REINSURER. ARTICLE SIXTEEN -- OFFSET The COMPANY and the REINSURER may offset any balance or amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any from one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited party to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to other under the terms of a Policythis Agreement. The party asserting the right of offset may exercise such right at any time with written approval from the COMPANY, whether the balances due are related to premiums or losses. In the event of insolvency of either party, the Reinsurer right of offset shall indemnify only be allowed in accordance with the Company for its proportionate share provisions of such fundthe controlling insurance law. Within 60 days following ARTICLE SEVENTEEN -- CURRENCY Whenever the end of each fiscal yearword "dollar" or the "$" sign appears in this Agreement, the Company they shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss be construed to mean United States Dollars and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsall transactions under this Agreement shall be in United States Dollars.

REPORTS AND REMITTANCES. (i) Promptly following the execution and delivery of this Agreement by the Reinsured and the Reinsurer, the Reinsured shall deliver to the Reinsurer (with a copy to the Underwriting Manager), a written notice (the "Initial Three Month Net Liability Notice"), setting forth the Reinsured's estimate of the amount of Net Liability (the "Estimated Net Liability Amount") for the three month period commencing on the Effective Date and ending three months after the Effective Date. The Company Reinsurer shall, within five (or Arch Underwriters Ltd. 5) business days after receipt from the Reinsured of the Initial Three Month Net Liability Notice, pay the Estimated Net Liability Amount by wire transfer into the Claims Fiduciary Account established pursuant to the Claims Services Agreement and maintained by the TPA in the name and on behalf of the CompanyReinsured. (ii) Periodically during the term of this Agreement (but no more frequently than monthly), the Reinsured shall notify have the right to deliver to the Reinsurer in writing as soon as possible but in any event no later than 30 days from (with a copy to the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such noticeUnderwriting Manager), the Reinsurer shall notify the Company of confirmation that it elects written notice (each a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Revised Three Month Net Liability Notice"); provided, howeversetting forth the Reinsured's revised estimate of the amount of Net Liability (the "Revised Estimated Net Liability Amount") for the three month period commencing on the date of such Revised Three Month Net Liability Notice and ending three months thereafter. The Reinsurer shall, that in respect within five (5) business days after receipt from the Reinsured of Programsthe Revised Three Month Net Liability Notice, pay by wire transfer into the Claims Fiduciary Account, the Company will provide notice and amount (if a positive number) equal to: (A) the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part Revised Estimated Net Liability Amount, minus (B) the balance in the Claims Fiduciary Account on the date of such Program; provided further that where there is a Side-by-Side PolicyRevised Three Month Net Liability Notice. 2. If, at any time or times during the term of this Agreement, the Ceded Percentage may be between zero and Reinsured has paid, or intends to pay, Net Liability ceded under this Agreement in an amount that exceeds (or will exceed) Fifty Percent (50% as determined by %) of the then-current balance of the Claims Fiduciary Account, then the Reinsurer in shall, within five (5) business days after receipt from the Cession Reinsured of the Cash Call Notice, except that if pay the participation Cash Call Amount by wire transfer into the Claims Fiduciary Account. The term "Cash Call Amount" shall mean the amount by which any such payments (or intended payments) by the Reinsured exceeds (or will exceed) Fifty Percent (50%) of the Reinsurer Affiliate on the Sidethen-by-Side Policy is less than 15% current balance of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage Claims Fiduciary Account. The term "Cash Call Notice" shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies mean written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due notice from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited Reinsured to the Reinsurer in setting forth the account in which the paid Loss appears. If the Company is required to fund a claim Cash Call Amount and accompanied by reasonably satisfactory proof of loss or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementssimilar documentation.

REPORTS AND REMITTANCES. A. As promptly as possible after the effective date of this Contract, the Company shall provide the Reinsurer an electronic listing of policies in force at the effective date of this Contract and the unearned premium on such policies. The Company (or Arch Underwriters Ltd. on behalf shall remit, as promptly as possible, the Reinsurer's share of the Companyunearned premium (less ceding commission thereon) shall notify applicable to subject business in force at the Reinsurer in writing as soon as possible but in any effective date of this Contract. In the event no later than the Company fails to remit such unearned premium within 30 days from the earlier of the inception date or date of after binding of any Policy of the material terms of such Policy. Within 15 days of such noticethis coverage, the Reinsurer shall notify have the Company option to terminate this Contract retroactively to inception. Unearned premium paid more than 30 days after binding this coverage, and premiums paid more than 60 days after the end of confirmation that it elects each calendar quarter shall accrue interest at a Ceding Percentage compound rate of 500.4% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 per month. B. Within 30 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of after the end of each calendar quarter, the Company shall provide report to the Reinsurer with a report, segregated by Underwriting Year of Reinsurer: -------------------------------------------------------------------------------- [BENFIELD BLANCH LOGO] Xxxx 0 -------------------------------------------------------------------------------- 1. Ceded net written premium for the following in respect of the Policies: (a) Policies written during the calendar quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums2. Commission thereon; (c) Gross Written Premiums 3. Ceded losses and Net Written Premiums collected by allocated loss adjustment expense paid during the Companycalendar quarter; (d) Operating Expenses (including an itemization 4. Ceded losses and allocated loss adjustment expense known outstanding as of each constitutent element)the end of the calendar quarter; (e) Origination Expenses for Policies (including an itemization 5. Ceded incurred but not reported loss reserves outstanding as of each constituent element)the end of the calendar quarter; (f) The ceding fee as provided hereunder6. Open and closed claims counts; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable 7. Ceded unearned premium or other similar taxes; and (k) Inuring Reinsurance procured during reserves as of the end of the quarter. The positive balance of (1) less (2) less (3) shall be remitted by the Company within 30 days of its report. Any balance shown to be due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt after receipt and verification of the quarterly Company's report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year. C. Annually, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other such information which as the Reinsurer may require for to complete its annual financial statementsAnnual Convention Statement.

REPORTS AND REMITTANCES. The Company MICCA shall promptly notify the REINSURER of any event, development, accident, occurrence or "disaster" which might result in a claim against the REINSURER for which MICCA has established reserves in the amount of or in excess of two hundred fifty thousand dollars ($250,000). In addition, claims involving the following injuries or Arch Underwriters Ltd. on behalf issues shall be reported to the REINSURER immediately, regardless of any question of liability or coverage under the policy: (1) fatalities; (2) paraplegia and quadriplegia; (3) serious burnx; (0) alleged brain damages or injuries; (5) amputation of an extremity; (6) loss of hearing, sight, taste or smell; (7) loss of use of or loss of function of vital organs; (8) multiple fractures; (9) cosmetic deformities; (10) birth injuries; (11) all suits against MICCA alleging EXTRA CONTRACTUAL OBLIGATION or EXCESS OF POLICY LIMITS exposure. MICCA shall furnish to the REINSURER within 15 days after the end of each annual quarter the following information: 1. Current accounts of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 days Gross and Net LOSSES PAID and Outstanding LOSSES, including separately ALE. 2. A current statement of account indicating ULTIMATE NET LOSS due from the earlier REINSURER. MICCA shall also periodically update and furnish to the REINSURER such other reports or information as may reasonably be required by the REINSURER and reasonably available to MICCA. The REINSURER shall directly remit to MICCA amounts due for ULTIMATE NET LOSS, within thirty business days after receiving the statement of account. The reporting obligations under this section shall terminate at such date on which the inception date parties mutually agree that all losses under the POLICIES reinsured hereunder have been paid or date otherwise adjusted and closed, and there is no further possibility that any future claims may arise (all applicable statutes of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"limitation have expired); provided, however, that in respect of Programsif thereafter any claim under the reinsured POLICIES should be newly asserted or reopened, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage obligations under this section shall be no less than 15 - 85A/C where A is reactivated by the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy parties and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall continue to apply until such newly asserted or reopened claim(s) shall be 50%. In addition, within 75 days of the end of each calendar quarter, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quarter. Any balance due to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of the quarterly report. Should payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal year, the Company shall furnish the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsfinally adjudicated.

REPORTS AND REMITTANCES. The Company (or Arch Underwriters Ltd. on behalf of the Company) shall notify the Reinsurer in writing as soon as possible but in any event no later than 30 A. Within 45 days from the earlier of the inception date or date of binding of any Policy of the material terms of such Policy. Within 15 days of such notice, the Reinsurer shall notify the Company of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Company. If the Reinsurer does not notify the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 days of following the end of each calendar quarter, the Company shall provide furnish to the Reinsurer a report with a report, segregated by Underwriting Year the following information: 1. Ceded unearned premium income as of the following in respect end of the Policies:quarter; (a) Policies written 2. Ceded Net Subject Written Premium Income accounted for during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums3. The ceding commission allowed on subparagraph A.2. above; (c) Gross Written Premiums and Net Written Premiums collected by the Company4. The provisional Reinsurer’s Margin of [***]% on subparagraph A.2. above; (d) Operating Expenses (including an itemization of each constitutent element)5. Ceded losses paid during the quarter; (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) 6. Subrogation, salvage or other recoveriesrecoveries received during the quarter on subject losses; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during 7. Ceded outstanding loss as of the end of the quarter, 8. Any Outstanding case and incurred but not reported as of the end of the quarter; 9. The Funds Withheld Account balance. B. The Company shall remit to the Reinsurer the amount shown in subparagraph A.4. above with its report. C. All remittances of loss payments shall be made first by reduction to the Funds Withheld Account balance until such time as such Funds Withheld Account balance is exhausted, such exhaustion to be a condition precedent to any other settlement of any loss by the Reinsurer under this Contract. Then, if any excess amount is due subsequent to the exhaustion of the Funds Withheld Account balance, the Reinsurer’s share of such amounts shall be paid in cash to the Company shall be remitted by the Reinsurer within 30 days ofreceipt of on the quarterly report. Should Settlement Date that such payment due from the Reinsurer exceed $100,000 as respects any one loss event, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a Policy, the Reinsurer shall indemnify the Company for its proportionate share of such fund. Within 60 days following the end of each fiscal yeardue. D. Annually, the Company shall furnish to the Reinsurer with a statement showing the Unearned Premium, the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementsconvention statement which is reasonably available to the Company; provided, however, that (i) the Company shall only be required to provide such information in its current format as held on the Company’s information technology systems; (ii) the Reinsurer shall provide the Company with at least 45 days’ advance written notice of such requirements; and (iii) that the provision of such information shall not be a condition precedent for the payment of any amount to the Company from the Reinsurer. E. Should the amount recoverable under this Contract exceed $[***] as respects any one loss, or Loss Occurrence, the Company may give the Reinsurer notice of payment made or its intention to make payment on a certain date. If the company has paid the loss, payment shall be made by the Reinsurer immediately. If the Company intends to pay the loss by a certain date and has submitted a proof of loss or similar document, payment shall be due from the Reinsurer twenty-four (24) hours prior to that date, provided the Reinsurer has a period of fifteen (15) days after receipt of said notice to dispatch the payment. Cash loss amounts specifically remitted by the Reinsurer as set forth herein shall be credited to the next quarterly account. F. It is further understood that the provisional Reinsurer’s Margin of [***]% shall first be adjusted 12 months from the effective date of this Contract and each subsequent quarter (3) month period thereafter aligning to the provisions of Article 11. Should the adjusted commission rate as calculated in Article 11 paragraphs C and D differ from the maximum and provisional [***]% ceding commission, then the Reinsurer’s Margin, shall be reduced to equal [***]% less the adjusted commission rate less the ratio of Losses Incurred to Premiums Earned, as of the Adjustment Period.

REPORTS AND REMITTANCES. The A. Within 12 months from Contract expiration, the Company (or Arch Underwriters Ltd. on behalf shall furnish the Reinsurer with a report of reinsurance premium due it for that period. Such report shall show and properly segregate the Company) shall notify 's premium to which the reinsurance rate applies as well as contain such other information as may be required by the Reinsurer in writing as soon as possible but in any event no later than 30 days from the earlier for completion of the inception date or date of binding of any Policy of the material terms of such Policyits NAIC interim and/or annual statements. Within 15 days of such notice, The premium due the Reinsurer shall notify be balanced against the Company minimum and deposit premiums set forth in paragraph (A) of confirmation that it elects a Ceding Percentage of 50% or that it elects a Ceding Percentage lower than 50%Article X, but no lower than 15%, in respect to such Policy ("Cession Notice"); provided, however, that in respect of Programs, the Company will provide notice and the Reinsurer's election of a Ceded Percentage will apply Premium and Ceding Commission, and any balance shown to all Policies that are part of such Program; provided further that where there is a Side-by-Side Policy, the Ceded Percentage may be between zero and 50% as determined by Reinsurer in the Cession Notice, except that if the participation of due the Reinsurer Affiliate on the Side-by-Side Policy is less than 15% of the sum of the participations of the Reinsurer Affiliate and the Company, the Ceded Percentage shall be no less than 15 - 85A/C where A is the percentage participation of the Reinsurer Affiliate on the Side-by-Side Policy and C is the percentage participation of the Companyremitted with said annual report. If the Reinsurer does not notify Any premium amount shown to be due the Company within 5 days that it elects a Ceding Percentage lower than 50%, as set forth above, the Ceding Percentage shall be 50%. In addition, within 75 withdrawn from the Trust Account. B. Within 60 days of after the end of each calendar quartermonth, the Company shall provide the Reinsurer with a report, segregated by Underwriting Year of loss bordereau including ceded paid and outstanding losses and loss adjustment expense for the following in respect of the Policies: (a) Policies written during the quarter; (b) Gross Written Premiums and Net Written Premiums, in each case less cancellations and return premiums; (c) Gross Written Premiums and Net Written Premiums collected by the Company; (d) Operating Expenses (including an itemization of each constitutent element); (e) Origination Expenses for Policies (including an itemization of each constituent element); (f) The ceding fee as provided hereunder; (g) Paid Loss, Loss Adjustment Expense and Extra Contractual Obligations; (h) Outstanding Loss, Loss Adjustment Expense and Extra Contractual Obligations; (i) Subrogation, salvage or other recoveries; (j) Any applicable premium or other similar taxes; and (k) Inuring Reinsurance procured during the quartermonth. Any balance amount shown to be due to the Company shall be remitted by withdrawn from the Trust account. In the event the Trust account balance is zero and the Reinsurer within 30 days ofreceipt has not reached its limit of the quarterly report. Should payment due from the Reinsurer exceed $100,000 liability as respects any one loss eventoutlined in Article V, the Reinsurer upon written request by the Company accompanied by supporting documentation shall pay the amount due in respect thereof within 5 business days. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss Retention and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. If the aggregate amount of claims paid by the Company during any one month is greater than 70% of the Gross Written Premiums during such month, the Company may request that the Re insurer advance payment for the excess of (i) the sum for all Policies of the applicable Ceded Percentages of paid Loss and Loss Adjustment Expense during such month over (ii) 70% of the sum for all Policies of the applicable Ceded Percentages of that month's Gross Written Premiums. Any special remittance made pursuant to this provision shall be credited to the Reinsurer in the account in which the paid Loss appears. If the Company is required to fund a claim or loss fund pursuant to the terms of a PolicyLimit, the Reinsurer shall indemnify remit said amount due directly to the Company for its proportionate share within 30 days of such fundreceipt of bordereau. C. 1. Within 60 days After each quarter the Reinsurer shall calculate and report to the Company the following as promptly as possible: a. Cumulative premium received by the Reinsurer from the effective date of this Contract through the end of each fiscal yearcalendar quarter under consideration; b. Ceding commission allowed on (a) above at 5%; c. Reinsurer's margin as calculated in paragraph (B) of Article X, Reinsurer's Premium and Ceding Commission; d. Cumulative case losses and loss adjustment expense incurred hereunder (excluding incurred but not reported losses) from the Company shall furnish effective date of this Contract through the Reinsurer with a statement showing end of the Unearned Premiumcalendar quarter under consideration; e. The balance of (a) less (b) less (c) less the paid portion of(d) above; f. Cumulative investment income on the amount, if any, of the total reserves for outstanding Loss and Loss Adjustment Expenses, and any other information which the Reinsurer may require for its annual financial statementspositive balance in (e) above.