Amendment No. 3 to Amended and Restated Brokerage Business Quota Share Reinsurance Agreement among Tower Insurance Companies and CastlePoint Reinsurers

Summary

This amendment updates a reinsurance agreement between several Tower insurance companies and CastlePoint reinsurance entities. Effective April 1, 2007, it changes the parties and the percentage shares of liability for each reinsurer. CastlePoint Insurance Company will cover 9% and CastlePoint Reinsurance Company, Ltd. will cover 40% of the reinsured business, with each share being separate and not joint. All other terms of the original agreement remain unchanged. The amendment is effective for business written or renewed on or after April 1, 2007.

EX-10.3 5 a5546013ex10-3.txt EXHIBIT 10.3 EXHIBIT 10.3 Amendment No.3 To Amended and Restated Brokerage Business Quota Share Reinsurance Agreement Effective April 1, 2006 (Hereinafter referred to as the "Original Agreement") Between TOWER INSURANCE COMPANY OF NEW YORK TOWER NATIONAL INSURANCE COMPANY (Hereinafter referred to as the "Company") And CASTLEPOINT REINSURANCE COMPANY LTD. (Hereinafter referred to as the "Reinsurer") WHEREAS, the Reinsurer and the Company are parties to the Original Agreement. NOW THEREFORE, the parties hereby agree to amend the Original Agreement as follows: Effective April 1, 2007, item 4 of Amendment No. 2 shall be deleted and the Preamble of the Original Agreement is hereby amended to read as follows: Amended and Restated Brokerage Business Quota Share Reinsurance Agreement Effective April 1, 2006 (Hereinafter referred to as the "Original Agreement") Between THE INSURANCE COMPANIES THAT ARE SIGNATORIES TO THIS AGREEMENT (Hereinafter referred to as the "Company") And THE SUBSCRIBING REISURERS AS PER ATTACHED INTEREST AND LIABILITIES AGREEMENTS All other terms and conditions will remain unchanged. INTEREST & LIABILITIES AGREEMENT Attaching to and Forming Part of Amended and Restated Brokerage Business Quota Share Reinsurance Agreement Effective April 1, 2006 (Hereinafter referred to as the "Original Agreement") Between THE INSURANCE COMPANIES THAT ARE SIGNATORIES TO THIS AGREEMENT (Hereinafter referred to as the "Company") And CASTLEPOINT INSURANCE COMPANY (Hereinafter referred to as the "Subscribing Reinsurer") It is hereby mutually understood and agreed by and between the Company and the Subscribing Reinsurer that, as respects business written or renewed with effective dates on or after April 1, 2007, the Subscribing Reinsurer's share in the interest and liabilities of the Reinsurers will be 9% The share of the Subscribing Reinsurer will be separate and apart from the shares of the other Reinsurers and will not be joint with those of the other Reinsurers, and the Subscribing Reinsurer will in no event participate in the interest and liabilities of other Reinsurers. It is further mutually understood and agreed by and between the Company and the Subscribing Reinsurer that Addendum No. 3 attaches to and forms part of the captioned Agreement and prior amendments thereto, the terms of which are incorporated herein by reference.. This Agreement may be executed in two or more counterparts, each of which, when duly executed will be deemed an original, but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, the Company and the Reinsurer have caused this Agreement to be executed by their duly authorized representatives. In New York, New York, this 7th of August 2007 on behalf of the Company. For participation effective April 1, 2007: TOWER INSURANCE COMPANY OF NEW YORK By: /s/ Francis M Colalucci ------------------------------ Name: Francis m Colalucci Title: Sr VP, CFO & Treasurer TOWER NATIONAL INSURANCE COMPANY By: /s/ Francis M Colalucci ------------------------------ Name: Francis m Colalucci Title: Sr VP, CFO & Treasurer For participation effective April 10, 2007: PRESERVER INSURANCE COMPANY By: /s/ Michael C. Haines ------------------------------ Name: Michael C. Haines Title: Sr VP, CFO & Treasurer MOUNTAIN VALLEY INDEMNITY COMPANY By: /s/ Michael C. Haines ---------------------------- Name: Michael C. Haines Title: Sr VP, CFO & Treasurer NORTH EAST INSURANCE COMPANY By: /s/ Michael C. Haines ------------------------------ Name: Michael C. Haines Title: Sr VP, CFO & Treasurer For participation effective April 1, 2007: CASTLEPOINT INSURANCE COMPANY By: /s/ Roger A. Brown ------------------------------ Name: Roger A Brown Title: Secretary INTEREST & LIABILITIES AGREEMENT Attaching to and Forming Part of Amended and Restated Brokerage Business Quota Share Reinsurance Agreement Effective April 1, 2006 (Hereinafter referred to as the "Original Agreement") Between THE INSURANCE COMPANIES THAT ARE SIGNATORIES TO THIS AGREEMENT (Hereinafter referred to as the "Company") And CASTLEPOINT REINSURANCE COMPANY, LTD. (Hereinafter referred to as the "Subscribing Reinsurer") It is hereby mutually understood and agreed by and between the Company and the Subscribing Reinsurer that, as respects business written or renewed with effective dates on or after April 1, 2007, the Subscribing Reinsurer's share in the interest and liabilities of the Reinsurers will be 40%. The share of the Subscribing Reinsurer will be separate and apart from the shares of the other Reinsurers and will not be joint with those of the other Reinsurers, and the Subscribing Reinsurer will in no event participate in the interest and liabilities of other Reinsurers. It is further mutually understood and agreed by and between the Company and the Subscribing Reinsurer that Addendum No. 3 attaches to and forms part of the captioned Agreement and prior amendments thereto, the terms of which are incorporated herein by reference.. This Agreement may be executed in two or more counterparts, each of which, when duly executed will be deemed an original, but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, the Company and the Reinsurer have caused this Agreement to be executed by their duly authorized representatives. In New York, New York, this 9th day of August,2007 on behalf of the Company: For participation effective April 1, 2007: TOWER INSURANCE COMPANY OF NEW YORK By: /s/ Francis M Colalucci ------------------------------ Name: Francis m Colalucci Title: Sr VP, CFO & Treasurer TOWER NATIONAL INSURANCE COMPANY By: /s/ Francis M Colalucci ------------------------------ Name: Francis m Colalucci Title: Sr VP, CFO & Treasurer For participation effective April 10, 2007: PRESERVER INSURANCE COMPANY By: /s/ Michael C. Haines ------------------------------ Name: Michael C. Haines Title: Sr VP, CFO & Treasurer MOUNTAIN VALLEY INDEMNITY COMPANY By: /s/ Michael C. Haines ------------------------------ Name: Michael C. Haines Title: Sr VP, CFO & Treasurer NORTH EAST INSURANCE COMPANY By: /s/ Michael C. Haines ------------------------------ Name: Michael C. Haines Title: Sr VP, CFO & Treasurer In Hamilton, Bermuda, this 7th day of August, 2007 on behalf of the Reinsurer: For participation effective April 1, 2007: CASTLEPOINT REINSURANCE COMPANY, LTD. By: /s/ John S. Barada ------------------------------ Name: John S. Barada Title: VP of Underwriting