The Ceding Company shall
settle all losses, other than ex
gratia payments, and the
Reinsurer undertakes not to
contest such settlement. With
respect to ex gratia payments,
the Ceding company shall be
able to make such payment
without previously obtaining the
approval of the Reinsurer up to
an aggregate limit per occurrence
of CAD$ XXXXX (100% Quota
Share). However, it is understood
that for the portion of ex gratia
payments in excess of this
amount, the agreement of the
Reinsurer is required.”