FIRST AMENDMENT TO
FACULTATIVE OBLIGATORY QUOTA
SHARE RETROCESSIONAL AGREEMENT
This FIRST AMENDMENT TO FACULTATIVE OBLIGATORY QUOTA SHARE
RETROCESSIONAL AGREEMENT, dated as of December 1, 2000 and effective as of
October 1, 1999 (this "First Amendment"), is made in respect of the Facultative
Obligatory Quota Share Retrocessional Agreement, dated as of October 6, 1999 and
effective as of October 1, 1999 (as amended hereby, the "Quota Share
Agreement"), between PXRE REINSURANCE LTD., a Bermuda company (the
"Reinsurer"), and PXRE REINSURANCE COMPANY, a Connecticut company (the
"Company"). Capitalized terms used herein but not otherwise defined shall have
the meanings given to such terms in the Quota Share Agreement.
RECITALS
WHEREAS, the parties desire to amend certain provisions in the Quota
Share Agreement relating to the calculation of the cession of losses thereunder
with respect to certain backup third loss Contracts ceded by the Company to the
Reinsurer due to the inception of the Quota Share Agreement during the fourth
calendar quarter of 1999;
NOW THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged, it is hereby mutually agreed by the parties as follows:
ARTICLE I
AMENDMENT
The third paragraph of Article II of the Quota Share Agreement is hereby
amended and restated as follows:
Subject to the conditions of the following paragraph, the term "Net
Retained Line" shall mean the amount of liability which the Company
maintains per reinsurance program after deduction of liability ceded,
if any, to any general or specific retrocessions to protect the Company
and its quota share reinsurers (including, without limitation, the
Reinsurer), provided, however, that in respect of the Contracts listed
on Schedule No. 1 hereto, the Company's Net Retained Line shall be net
of the full amount of any aggregate deductibles under such Contracts
and such aggregate deductibles shall not be impaired by any losses
incurred prior to October 1, 1999.
Schedule No. 1 attached to this Amendment is hereby incorporated in and
made part of the Agreement.
This Amendment shall be retroactively effective to October 1, 1999 and
all losses ceded under the Quota Share Agreement shall be recalculated to
reflect this Amendment.
ARTICLE II
MISCELLANEOUS
This Amendment and the Quota Share Agreement shall be construed and
enforced in accordance with, and governed by, the laws of the State of
Connecticut (other than any conflict of law rule which might result in the
application of the law of any other jurisdiction) and the parties hereby agree
that the reference to "laws of the State of New York" in the third paragraph of
Article XXIII of the Quota Share Agreement is hereby replaced by "laws of the
State of Connecticut".
This Amendment may not be modified or amended or any term or provision
hereof waived or discharged except in writing signed by the party against whom
such amendment, modification, waiver or discharge is sought to be enforced.
This Amendment may be executed in any number of counterparts, each such
counterpart being deemed to be an original instrument, and all such
counterparts shall together constitute the same Amendment.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
signed by their duly authorized officers in Hamilton, Bermuda as of the date
first written above.
PXRE REINSURANCE LTD.
By Xxxxxxx Xxxxx
------------------------------------
Name: Xxxxxxx Xxxxx
Title: President
PXRE REINSURANCE COMPANY
By Xxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Chairman and Chief Executive Officer
SCHEDULE NO. 1 TO THE FIRST AMENDMENT TO
FACULTATIVE OBLIGATORY QUOTA
SHARE RETROCESSIONAL AGREEMENT
Cedent Treaty Number
------ -------------
C.N.A. 3622
REAC 3857
Xxxxxxxxx 4991
C.N.A. 3621
Ace 4750
QBE 4758
Venton 3199
Europa Re 3233
Grant 4448
REAC 3856
Terra Nova 4539
Ashley / Bradstock 3368
Grant 4447
Dendy 4739
REAC 3858
Xxxxxxxxxxx 2410
Rivington 4596
Terra Nova 4546
Bowring 4522
Xxxxx 4084
Xxxxxxxxxxx 2411
Xxxxxxxxxxx 4523
Copenhagen Re 4493
Xxxxxxxxx 4990
Jago 3207
Xxxxx 2100
Odyssey 4652
Warrington 4632
Xxxxxxxxxx 0000
Xxxxxxxxxx 4856
Xxxxxxxx 4595
Ace 4736
Ace 4748
Bowring 4238
Bowring 4500
Copenhagen Re 4492
Copenhagen Re 4493
Hiscox 4486
Jago 2037
Kiln 3124
Mumford 4032
Odyssey 4229
Terra Nova 4546
Venton 4081
Xxxxxxxxxx 4741
ANNEX II
QUOTA SHARE
ENDORSEMENT
TO
FACULTATIVE OBLIGATORY
QUOTA SHARE
RETROCESSIONAL AGREEMENT
(hereinafter referred to as the "Reinsurance Agreement")
between
PXRE REINSURANCE COMPANY
(hereinafter referred to as the "Company")
and
PXRE REINSURANCE LTD.
(hereinafter referred to as the "Reinsurer")
It is understood and agreed that for the Period commencing January 1, 2001:
(i) the applicable quota share for purposes of the Reinsurance
Agreement for all Contracts written by the Company after
December 31, 2000 shall be thirty-five percent (35%); and
(ii) cessions to the Reinsurance Agreement shall not exceed
$3,000,000 per reinsurance program.
IN WITNESS WHEREOF, the undersigned have executed this Annex II as of
the date indicated below in one or more counterparts, each of which shall be
deemed an original but all of which counterparts shall constitute one and the
same instrument, and all signatures need not appear on any one counterpart.
February 14, 2001 PXRE REINSURANCE LTD.
In Xxxxxxxx, Bermuda By: Xxxxxxx X. Xxxxx
-----------------------------------
Xxxxxxx X. Xxxxx, President
In Edison, New Jersey PXRE REINSURANCE COMPANY
By: Xxxxx X. Xxxx
-----------------------------------
Xxxxx X. Xxxx, Executive Vice
President and Chief Financial
Officer
