Item 8.01. Other Events.
On
On
Under the terms of the Tax Memorandum, the Company, ACIC and the DFS as receiver of UPC have reached the following agreement:
1.The parties agree to cooperate with one another to achieve realization of the deferred tax assets;
2.The parties agree to deposit the funds that are or may be due to UPC pursuant to the Tax Allocation Agreement into a segregated account held by ACIC that will serve as collateral for any amount payable from or to UPC;
3.The parties agree that the Federal Income Tax Allocation Agreement entered into prior to UPC's receivership is ratified and accepted by all parties;
4.The parties agree to an annual "true up" of the allocation of the disputed recoveries to the extent that such recoveries were not allocated correctly according to the Reinsurance Allocation Agreement; and
5.In the event that the benefit received by the Company is greater than the disputed recoveries, the difference shall be paid to DFS as receiver of UPC.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNITED INSURANCE HOLDINGS CORP.
B. Bradford Martz , Chief Financial Officer and President (principal financial officer and principal accounting officer)
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