EXHIBIT 10.1
RETROCEDENT: PXRE Reinsurance Ltd., Hamilton, Bermuda
RETROCESSIONAIRE: Select Reinsurance Ltd., Hamilton, Bermuda
PERIOD: January 1st 2004 (the "Effective Date") to
December 31st, 2004, both days inclusive.
TYPE: Specific Retrocessional Quota Share
CLASS: To indemnify the Retrocedent for 53% of all
losses under the Amlin Syndicate #2001,
2004 Excess of Loss Reinsurance Transaction
("Business Covered") entered into between
Amlin Syndicate 2001 and PXRE Reinsurance
Ltd.
TERRITORIAL SCOPE: Worldwide
AGGREGATE LIMIT: 53% of the Aggregate Limit assumed by the
Retrocedent under the Business Covered.
RETROCESSIONAL PREMIUM: 53% of the premium due to the Retrocedent,
which is expected to approximate $2.63
million. The Retrocedent shall pay four
quarterly deposit premiums to the
Retrocessionaire as follows:
$660,000 payable at February 15th, 2004
$660,000 payable at April 1st, 2004
$660,000 payable at July 1st, 2004
$660,000 payable at October 1st, 2004
Such deposit premiums shall be remitted net
of the Ceding Commission.
CEDING COMMISSION: 22% of Retrocessional Premium.
WORDING: To be mutually agreed by the Retrocedent
and Retrocessionaire.
COLLATERAL: The Retrocessionaire shall provide to the
Retrocedent collateral in the form of
either a) cash, b) investment grade bonds
which have a minimum rating of not less
than AA by S&P or Aa by Moody's, or c)
hedge funds meeting the applicable 2002
Patriot Trust investment guidelines, the
combined total of which shall have an
Adjusted Collateral Value of USD $10.9
million. The determination of the Adjusted
Collateral Value shall be the actual market
value of the cash, investment grade bonds
or hedge funds multiplied by the following
factors:
1) For cash, 100%;
2) For investment grade bonds, 100%;
3) For hedge funds, 80%
Such collateral (the "Pre-Loss Collateral")
shall be deposited by the Retrocessionaire
in the 2002 Patriot Trust upon execution of
this Contract or completion of the
revisions to the Patriot Trust and the
change of Trustee, whichever is later but
in no event later than May 1, 2004.
Retrocedent acknowledges that is has
reviewed the revisions to the Patriot Trust
contemplated by Retrocessionaire, that they
are acceptable in principle and that
Retrocedent does not contemplate offering
any other revisions. Both parties
acknowledge that additional changes may be
required by the new Trustee. Should the
Adjusted Collateral Value fall below $10.9
million as of any calendar month end, the
Retrocessionaire shall be required to
deposit additional collateral with an
Adjusted Collateral Value equivalent to the
amount of the deficiency into The 2002
Patriot Trust within 5 business days of the
date the Retrocessionaire becomes aware of
such deficiency, but in no case later than
20 days after the end of the calendar month
in which the deficiency exists.
The Patriot Trust Agreement shall contain
other provisions governing the collateral
hereunder, including the right of
Retrocessionaire to substitute collateral.
PXRE Reinsurance Ltd
Hamilton, Bermuda
/s/ Robert P. Myron February 24, 2004
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Signature Date
Chief Financial Officer
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Title
Select Reinsurance Ltd.
Hamilton, Bermuda
/s/ Brant L. Kizer February 24, 2004
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Signature Date
Vice President
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Title