# Memorandum of Facultative Reinsurance Agreement

**Date:** 6-26-86

**To:** Excess Treaty Management, 90 John St, New York, NY 10038  
**Attn:** M Feldman

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

**This confirms your authorization for 90 days from 5-21-86 to 7-24-87.**

**Original Insured:** IBM  
**Coverage Provided:** Excess Lab. /7903

**Original Limit(s) Provided:** $10M X5 80M X5 Prim/SIR

**Companies Net and Treaty Retention:** SMAA PLO LUNAM X5 SCHAA X5 P/SIR

**Your Participation:**
- Casualty: PLO 10M X5 SCHAA X5 P/SIR
- Deductions from Premiums Ceded: 22.5%

**Premium Gross:** $85,000  
**Your Premium:** $8500

**Remarks:**
- Per telex of 6-23-86.
- Exclude: Error, CCC, Asbestos, Pollution (Absolute), E&O, Patient Infirmity, Products Recall, OH/EL, Aircraft Products & Grounding, D&O, Penitute, Discrimination, Follow Form: Personal Injury, Contractual, Foreign, Liquor, Incidental Medical Malp. Attach: Jt Ut Credit, Uninsured Ogg.
- Retained Amount: 2 Policy Bags, Claim-Made / Disc option 1 yr. at 125%
- Retro Inception

**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 of 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:** Michael Feld  
**On behalf of (Name of Assuming Company):** St. Paul Reinsurance Management Corporation

**Please sign and return to sender.**