Project Size Range Division Category I One Half to Fifteen Million Category II Fifteen to Thirty Million Category III Thirty to Fifty Million
LUDGER LIMITED APPLICATION AND PROJECT SYNOPSIS
WHAT NOT TO SUBMIT
Do not send packages, documents, photos, projections, etc. which you may wish to have returned by Ludger. Please understand that Ludger is unable to return applications or informational packages submitted for the project evaluation process. Any such application, package or document submitted for this purpose will become the property of Ludger upon receipt, with Ludger having the sole right to retain or dispose of such material as we see fit, within the letter and intent of the confidential relationship agreement by and between Ludger and and current or prospective client.
STEP #1 APPLICATION AND SYNOPSIS
All clients will provide Ludger with the information required for project evaluation, consideration and, hopefully, approval and execution by completing the following documentation.
It is important that each of the items in the Program Evaluation and Project Synopsis be addressed completely and that special attention be given to the folowing key issues;
1. Detailed outline of your group or organizations aggregate, indemnity and/or catastrophe exposure. Size of your group or association, scope of operation (regional, national or international), date of initial inception and for what purpose.
2. Corporate or company financial statements, as current as possible, but no older than the end of the operating quarter preceding the date of the submission to Ludger.
a) Personal statements of all principals.
b) Most recent annual and quarterly business statements plus applicable 10k and 10q filings with the SEC.
3. Current biographical resumes of all principals.
4. Other documentation of a miscellaneous nature which adds significant credibility, clarity and support to the insurance program concept your organization is interested in implementing.
STEP #2 INITIAL PROJECT REVIEW
Upon receipt of the APPLICATION, INSURANCE PROGRAM CONCEPT SYNOPSIS, the principals of Ludger will arrange an initial interview with the designated members of your group or organization in either Ludger's offices or via conference call. During this initial interview, agreement will be reached by and between the client and Ludger, as to whether or not the project is, in Ludger's opinion, feasable.
If your concept is not accepted, all previously submitted materials will be returned and the program concept submission file will be closed. If the concept is accepted, Ludger begins to immedately review and analyze all of the material submitted.
STEP #3 INITIAL ANALYSIS
Immediately following acceptance of a submission by Ludger, the material is assigned to one of our staff analyst. The analyst reviews the client's input and packages it for submission to the appropriate underwriting entity. If the proposed program meets the requisite criteria, conditional terms and conditions will be provided (RWA).
STEP #4 CONDITIONAL APPROVAL
The individuals conducting an underwriting review provide conditional approval to the insurance program concept or rejects it. In either case Ludger notifies the client, in writing, of the underwriting facilities decision in this regard.
Ludger provides a Conditional RWA on all accepted projects, specifying acceptable terms and conditions of the insurance program development agreement and stating that acceptance is subject to successful due diligence and project packaging by Ludger.
Ludger then notifies the client and arranges a project consulting agreement meeting to be held in either Ludger's Office or at the location of the client, which ever is more convenient, to review the Conditional RWA and to reach a formal agreement that covers the activities required of both parties for the successful completion of the program concept.
STEP #5 PROJECT FINALIZATION
At the meeting indicated under Step #4, Ludger will specify the conditions, timing schedules and applicable fees for the activities required for Ludger to complete the due diligence and the packaging of the insurance program development project.
If an agreement cannot be achieved, the project file is closed. If an agreement is achieved, the following will take place:
1. A formal contractual agreement is prepared.
2. The contractual agreement is executed.
3. The client pays a retainer, as agreed in the contractual agreement to Ludger.
4. Ludger immediately begins to fulfill its responsibilities under the terms and conditions of the project commitment agreement.
STEP #6 POST CLOSING SERVICES
In some transactions the underwriter will require Ludger to preform on-going services, such services to be paid for by the client, as specified in the contractual agreement or required by the underwriting facility.
Ludger's experience has proven that strict adherence to the policies and procedures listed in this section greatly increase the probability of success of each insurance program development project and contributes to the achievement of above average project success in the shortest possible time frame.
REFERRALS, REFERRING PARTIES & DISCLOSURE
AGENTS/BROKERS, FINANCIAL INSTITUTIONS, ATTORNEYS, CPA's, etc, referring clients to Ludger are protected.
Any referral to Ludger by a broker or other agent, wherein a fee has already been paid by the referred client, must specify, in writing, that any such fee is non-refundable relative to expenses and/or consulting services. Furthermore, the clients broker and the client must hold Ludger harmless and agree to indemnify Ludger in regard to any such fees.
Full disclosure on the part of any referring broker, agent, consultant, client and any other involved parties is a condition precedent to the establishment of a client relationship or the rendering of any services by Ludger.
On international insurance program development projects, a minimum retainer of twenty five hundred USD ($2,500) is charged to each Ludger client and is payable in advance at the time the contractual agreement is executed. On projects that take place in the United States, the retainer fee is negotiable.
FEE SCHEDULE FOR SERVICES CHARGED AGAINST THE RETAINER DEPOSIT ACCOUNT
1. All consulting time is billed at the following hourly rates for telephone calls, research, underwriting, packaging, lender discussions, discussions with other collateral providers and any other work done on behalf of the client.
Secretarial/Clerical Time $44.00 per hr
Professional Time $275.00 per hr
Executive Review $400.00 per hr
2. All travel, outside consultants or other extraneous expenses will be billed separately in advance and with the client's approval.
3. A ten percent (10%) surcharge is added to chargeable expenses and to each billed hour to cover facsimile transmissions, postage, express transmissions, materials, supplies and all other general, non-allocated expenses.