# Memorandum of Facultative Reinsurance Agreement

**Date:** 6-26-86

**To:** Trans Reco (9th Floor)
**AFTN:** J Sullivan

**From:** Lexington Insurance Co.
**Address:** 100 Summer Street, Boston, Mass. 02110
**Underwriter:** Tom Gardello

**Reinsurance in favor of:** Lexington Insurance Company or any other affiliated company which may be substituted therefor when the policy is issued.

**Original Insured:** IBM

**Coverage Provided:** Excess Liab.

**Original Limit(s) Provided:** 10,000 XS 80,000 XS Prim/SIR

**Companies Net and Treaty Retention:** 5,000 P/LO 10,000 XS 80,000 XS P/SIR

**Your Participation:**
- Pro Rata: 500,000 P/LO 10,000 XS 80,000 XS P/SIR
- Excess: 4,250

**Premium Guess:** $5,000
**Your:** 4,250

**Deductions from Premiums Ceded:** 22.5%

**Remarks:** per telex of 6-23-86

**Receive:** Jun 27 1986

**Cancellation Provisions:**
It is hereby understood and agreed that any other terms or provisions of Assuming Company regarding cancellation of its above described reinsurance to the contrary notwithstanding, said reinsurance may not be cancelled by Assuming Company unless it gives Ceding Company written notice for a period at least equal to the cancellation notice requirement of Ceding Company in its policy or contract or as required by Ceding Company by any applicable statute or regulation, plus thirty (30) days, stating when thereafter such reinsurance cancellation is to be effective. Provided, however, in the event of cancellation by Assuming Company for non-payment of premium, the aforesaid additional thirty (30) day period shall be ten (10) days.

**Signed and Accepted by:** [Signature]
**Date:** 7/1/86
**On Behalf of (Name of Assuming Company):** Transatlantic Re