Paragraph 3

The prescribed surplus of a member of Lloyd’s shall be the amount of the margin of solvency which the member would be required to maintain under section 32 of the Act if the member were a UK company (within the meaning of section 5 of the Act) and the required margin of solvency were determined in accordance with regulation 17 of, and Schedules 3 and 4 to, the Insurance Companies Regulations 1994 (the “1994 Regulations”) as modified by paragraphs 5 to 13 below.