Although it is not a requirement to be a shareholder in Everen Specialty Ltd. energy companies seeking to be a shareholder of Everen Specialty Ltd. must be an “Energy Company” and meet the eligibility guidelines. To qualify as an “Energy Company”, either more than 50% of the company’s annual gross revenues or more than 50% of the company’s “Gross Assets” must be derived from “Energy Operations”.

“Gross Assets” are defined as property, plant and equipment, before deducting depreciation expense, plus inventory, materials and supplies.

“Energy Operations” are broadly defined to include the activities usual to energy companies, i.e. exploration, production, transportation, distribution, refining, storage and marketing of crude oil, natural gas and chemical products, as well as, the generation, storage, transmission and distribution of energy, and the mining of mineral deposits or ores. Services conducted principally for the benefit or account of others such as drilling, marine transportation and independent contractor business are not considered as Energy Operations.

Once a company is approved, its worldwide subsidiaries and affiliates are covered (unless otherwise agreed), and other types of operations are insured whether or not they are energy industry related.