**COVERAGE APPLIES, SUBJECT TO THE TERMS AND CONDITIONS AND EXCLUSIONS OF THE POLICY, ONLY TO OCCURRENCES THAT FIRST COMMENCE DURING THE POLICY PERIOD. THE DATE AN OCCURRENCE FIRST COMMENCES IS THE DATE FOR DETERMINATION OF THE APPLICABLE LIMITS, RETENTIONS, TERMS, CONDITIONS AND EXCLUSIONS OF THE POLICY.**

PLEASE READ THE ENTIRE POLICY CAREFULLY.

**FOLLOWING FORM EXCESS LIABILITY INSURANCE POLICY (OCCURRENCE COVERAGE) INSURING AGREEMENTS**

Arch Reinsurance Ltd. (the “Company”) hereby agrees as follows.

### I. COVERAGE

This Policy is subject to the same warranties, terms, definitions, conditions and exclusions as are contained in the Followed Policy attached hereto (except as regards the amount of premium, limits of liability, retention, arbitration, law of construction and interpretation, and as otherwise provided, or inconsistent with any provision, herein) and as are contained in the Attached Endorsements (which Attached Endorsements shall supersede the provisions of the Followed Policy and this Policy form in the event of any inconsistency) for the Policy Period and, if applicable, any discovery period; provided, however, no amendment, addition or modification to the Followed Policy by any primary, underlying or any other insurer shall operate to alter the warranties, terms, definitions, conditions or exclusions of this Policy, except as set forth by written endorsement hereto. It is a condition of this Policy that the policies constituting the Primary and Underlying Excess Insurance shall be maintained in full effect during the Policy Period, except for any reduction of the aggregate limits contained therein by reason of payment of Ultimate Net Loss in respect of claims thereunder (as provided for in Article II, section (a) below). Failure of the Named Insured to satisfy this condition shall not invalidate this Policy, but in the event of such failure, the Company shall only be liable to the same extent as it would have been had the Named Insured complied with this condition.

### II. LIMIT OF LIABILITY

(a) Subject to all the other provisions hereof, including, without limitation, the definition of Ultimate Net Loss, and regardless of the number of Insureds under this Policy, for each layer of coverage as set forth in Item 5(a) of the Declarations the Company shall be liable only for that amount of Ultimate Net Loss for each Occurrence covered pursuant to Article I hereof in excess of the attachment point, which is the greater of either:

OCXS 001 Edition June 2003