[LOGO] The Corner House, 20 Parliament Street,
4th Floor, Hamilton HM 12, Bermuda
Tel: (441) 296-8453 Fax: (441) 296-8459
Mailing Address:
Suite #794 48 Par-La-Ville Road,
SELECT REINSURANCE LTD. Hamilton HM 11, Bermuda
November 1, 1999
Mr. Gerald Radke
PXRE Corporation
399 Thornall Street - 14 Floor
Edison, New Jersey 8837
U.S.A.
Tel. 1-732-906-6700
Dear Jerry:
This will confirm our agreement with respect to the following matters:
1. In reference to PXRE's letter dated September 1, 1998 concerning the
"20% undertaking", this agreement has been extended by one year to
now end in 2003. PXRE Reinsurance and its affiliates will use
reasonable efforts to offer to Select Re business with aggregate
premiums of not less than 20% of Select Re's shareholders' equity
derived from Class B, C, D, E and F common shares (at December 31,
1998 - $106.2 million).
2. Effective June 30, 1999 PXRE will cancel the Security Agreement
between PXRE and Select Re.
PXRE Agreement
November 1, 1999
Page 2
If the foregoing correctly reflects our agreement, please sign and return to
the undersigned the enclosed copy of this letter.
Sincerely,
Select Reinsurance Ltd.
By /s/ Jeffrey L. Radke
---------------------------
Jeffrey L. Radke
President
Accepted and Agreed:
PXRE Reinsurance Company
By /s/ Gerald L. Radke
---------------------------
Gerald L. Radke
President
ENDORSEMENT
TO
FACULTATIVE OBLIGATORY RETROCESSIONAL AGREEMENT
(hereinafter referred to as "Agreement")
between
PXRE REINSURANCE COMPANY
(hereinafter referred to as the "Company")
and
SELECT REINSURANCE COMPANY
(hereinafter referred to as the "Reinsurer")
It is understood and agreed that effective January 1, 2000, the participation of
the Reinsurer is amended to 15.00%.
Under terms of the Agreement, the Reinsurer agrees to assume severally and not
jointly with other participants a 15.00% share (being $3,000,000 per program) of
the liability described in the attached Agreement, and as consideration of the
above, the Reinsurer shall receive 15.00% of the premium named therein for
cession made on or after 12:01 a.m., January 1, 2000, local time, for business
incepting or renewing after that date.
Signed in Hamilton Branch this 31st day of January, 2000.
SELECT REINSURANCE LTD.
BY: /s/ Robert P. Myron
--------------------------
TITLE: Vice President
And in Edison, New Jersey this 1st day of February, 2000.
PXRE REINSURANCE COMPANY
PXRE REINSURANCE COMPANY
BY: /s/ Gordon Forsyth III
--------------------------
TITLE: Gordon Forsyth III
Executive Vice President