EXHIBIT (99-10)
Directors and Officers (Ninth) Liability Binder of Insurance
[MAX RE LOGO]
Jonathan Evans
Professional Liability
T 441.294.2263 F 441.298.8811
[email protected]
July 7, 2003
Re: The Procter & Gamble Company
Max Re Ltd is pleased to bind the following for the above referenced client.
Coverage Information
Type: Binder
Client Information
Name: The Procter & Gamble Company
Address: One Procter & Gamble Plaza
Cincinnati, OH 45202
Policy Information
Policy Form: Max Re Ltd Professional Liability Follow Form Excess
Policy Number: 1322-80-UMB-2003
Policy Period: June 30th, 2003 - June 30th, 2004
Limit of Liability: $10,000,000 In the aggregate for the policy period.
Policy Attachment: $190,000,000 excess of the following schedule of
underlying Insurance:
CODA $25M Primary
XL $25.0M $25.0M
ACE $25.0M $50.0M
AWAC $25.0M $75.0M
Arch $25.0M $100.0M
Starr $25.0M $125.0M
TBA $25.0M $150.0M
Insured's Retention: $50,000,000 each and every claim
Followed Policy: CODA (with restrictions)
PREMIUM INFORMATION
Premium: $244,000
Commission: 12%
Payment Terms: Premium payment is due in full within 10 days of binding.
Payment Instructions: Federal Reserve Bank of Boston
ABA: 011-001-234/BOS SAFE DEP
DDA# 162299
For: Insurance Operating Account (Max Re Ltd)
Account Number: MRL F 0070232
SPECIAL CONDITIONS
1. Coverage disputes are referred to mandatory arbitration in London.
2. Policy follows most restrictive underlying coverage.
3. This policy does not follow form of sublimited coverages, but shall
recognize erosion.
SUBJECTIVITIES:
1. Receipt of net funds of $214,750 on or before July 14, 2003. In the event
net funds are not received by this date, this binder is void ab initio.
ENDORSEMENTS:
1. Endorsement backdated prior and pending dates.
GENERAL CONDITIONS:
1. Any and all taxes or fees incurred in the placement of the proposed
insurance are the sole and exclusive responsibility of the Insured, and it
is acknowledged that Max Re has no payment or filling responsibilities of
any kind relating to such any taxes or fees.
2. All amounts are in United States Dollars unless otherwise indicated.
3. The proposal is conditioned upon no material change between the date of
this letter and the inception date of the proposed policy, including any
claims or notices of circumstances to any prior insurer. In the event of
such a change of risk, Max Re has the sole option to modify or withdraw
this proposal at its discretion.
4. All subjectivities must be provided within 30 days (unless a different date
is provided in the subjectivity) of the date of this letter. If such
subjectivities are not cleared by that time, then any policy bound may be
cancelled ab inito by the insurer.
5. All changes, modifications and extensions of this proposal shall be made
only in writing by the underwriter.
Page 2 of 3 MAX RE MANAGERS LTD. 2 FRONT STREET,
P.O. BOX HM 2585
T 441.296.6800 F 441.296.8811
E [email protected] www.maxre.bm
Thank you for considering Max Re Ltd for this placement. Please contact me if
you have any questions.
Yours truly,
/s/ JONATHAN EVANS
Jonathan Evans
Professional Liability
T 441 294 2263
F 441 296 8811
E [email protected]
Page 3 of 3 MAX RE MANAGERS LTD. 2 FRONT STREET,
P.O. BOX HM 2585
T 441.296.6800 F 441.296.8811
E [email protected] www.maxre.bm