BAICO: Letter to Plan Members – Dec 28th 2009

BRITISH-AMERICAN INSURANCE COMPANY LIMITED

(In Judicial Management)

P.O. Box N-123
Montague Sterling Centre
East Bay Street Nassau, Bahamas

Tel: 242-393-2007
Fax:242-393-1772

December 28, 2009

Dear BAICO Employee Pension Plan Participant,

British-American Insurance Company Limited (“BAICO”) Employee Pension Plan

You are receiving this letter because BAICO’s management in your location have identified that you may be a participant in BAICO’s Employee Pension Plan (“The Plan”). I am writing to you as the Judicial Manager (“JM”) of BAICO, appointed by The Supreme Court of The Commonwealth of The Bahamas (the “Court”).

The information that I have reviewed to date indicates that BAICO is insolvent. It is also my understanding that the BAICO Employee Pension Plan (“The Plan”) has a significant shortfall in assets to meet its liabilities. A copy of the BAICO Pension Plan document which was recorded in the Bahamas registry of records in volume 9476 pages 443 to 484, can be obtained from management at BAICO’s offices in your country.

Based on my analysis of The Plan completed to date, it appears that certain of the contributions made by participants and certain of The Plan’s assets are pooled with the assets of BAICO and its subsidiaries as opposed to being placed in a segregated trust. As a result, The Plan’s beneficiaries/pensioners have been paid from the funds of BAICO and the individual subsidiaries. I have filed a detailed report dated November 27, 2009 (the “Report”) with the Court relating to my findings up to that date in connection with the judicial management of BAICO. The Report includes a section on the results of my preliminary findings relating to The Plan. A copy of the employee pension plan section of the Report can also be obtained from management at BAICO’s offices in your country.

Because of the above matters and other reasons, by Order of the Court dated December 17, 2009, I, as JM of BAICO, was ordered to investigate the assets and liabilities of The Plan. Until such time as the investigation is complete and the true financial position of The Plan is known and in order to protect your rights under The Plan, it is recommended that you continue making your contributions to The Plan. Please, therefore, on receipt of this notification confirm to BAICO’s management in your location with a copy to me, your consent to continue your contributions or otherwise. Failure to respond will be interpreted to mean that you do not wish to make any changes to the current arrangements. Should you elect to continue your contributions, I have instructed BAICO’s management in your location to set these funds aside in a separate bank account.

If you have any questions on the above, the contact details for my colleagues and I are shown below:

Yours very truly

British-American Insurance Company Limited

J.M. Lopez
Judicial Manager

Note: The affairs, business and management of British-American Insurance Company Limited are under the control of the Judicial Manager pursuant to an Order of the Supreme Court of The Commonwealth of The Bahamas dated 8th September, 2009.