Exhibit 10.3

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of June 22, 2012 (this
“Amendment”), amends the Amended and Restated Credit Agreement, entered into as
of February 15, 2012, among Tower Group, Inc., a Delaware corporation (the
“Borrower”), each lender from time to time party thereto (collectively, the
“Lenders” and individually, a “Lender”), and Bank of America, N.A., as
Administrative Agent, Fronting Bank and L/C Administrator (the “Credit
Agreement”). Terms defined in the Credit Agreement are, unless otherwise defined
herein or the context otherwise requires, used herein as defined therein.

WHEREAS, the parties hereto have entered into the Credit Agreement, which
provides for the Lenders to extend certain credit facilities to the Borrower
from time to time;

WHEREAS, the Borrower has requested the Lenders to amend the Credit Agreement to
permit a unsecured and secured letter of credit facility; and

WHEREAS, the parties hereto desire to amend the Credit Agreement in certain
respects as hereinafter set forth; and

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto agree as follows:

1. AMENDMENT. Subject to Section 2 hereof, Section 7.02(g) of the Credit
Agreement is amended in its entirety to read as follows:

“(g) Indebtedness not to exceed $126,200,000 at any time for letters of credit
(including letters of credit issued to secure reinsurance policies issued to, or
issued to a reinsurer of, a Lloyd’s syndicate or another Subsidiary and letters
of credit issued for general corporate insurance purposes) provided that no more
than $25,000,000 of such letters of credit may be unsecured.”

2. CONDITIONS PRECEDENT. This Amendment shall become effective when each of the
conditions precedent set forth in this Section 2 shall have been satisfied, and
notice thereof shall have been given by the Administrative Agent to the Borrower
and the Lenders.

2.1 Receipt of Documents. The Administrative Agent shall have received this
Amendment duly executed by the Borrower, the Administrative Agent and the
Required Lenders.

--------------------------------------------------------------------------------

2.2 Compliance with Warranties, No Default, etc. After giving effect to this
Amendment, the following statements by the Borrower shall be true and correct
(and the Borrower, by its execution of this Amendment, hereby represents and
warrants to the Administrative Agent and each Lender that such statements are
true and correct as at such times):

(a) the representations and warranties set forth in Article V of the Credit
Agreement shall be true and correct with the same effect as if then made (unless
stated to relate solely to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date);

(b) no Default or Event of Default shall have then occurred and be continuing.

3. REPRESENTATIONS AND WARRANTIES. To induce the Lenders and the Administrative
Agent to enter into this Amendment, the Borrower represents and warrants to the
Administrative Agent and each Lender as follows:

3.1 Due Authorization, Non-Contravention, etc. The execution, delivery and
performance of this Amendment by the Borrower are within its powers, have been
duly authorized by all necessary action, and do not

(a) contravene its Organization Documents;

(b) contravene any contractual restriction, law or governmental regulation or
court decree or order binding on or affecting the Borrower or any of its
Subsidiaries; or

(c) result in, or require the creation or imposition of, any Lien on any of the
properties of the Borrower or any of its Subsidiaries.

3.2 Government Approval, Regulation, etc. No authorization or approval or other
action by, and no notice to or filing with, any governmental authority or
regulatory body or other Person is required for the due execution, delivery or
performance by the Borrower and its Subsidiaries of this Amendment.

3.3 Validity, etc. This Amendment constitutes the legal, valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms.

4. MISCELLANEOUS.

4.1 Continuing Effectiveness, etc. This Amendment shall be deemed to be an
amendment to the Credit Agreement, and the Credit Agreement, as amended hereby,
shall remain in full force and effect and is hereby ratified, approved and
confirmed in each and every respect. After the effectiveness of this Amendment
in accordance with its terms, all references to the Credit Agreement in the Loan
Documents or in any other document, instrument, agreement or writing shall be
deemed to refer to the Credit Agreement as amended hereby. Each other Loan
Document is hereby ratified, approved and confirmed in each and every respect.

4.2 Payment of Costs and Expenses. The Borrower agrees to pay on demand all
reasonable expenses of the Administrative Agent (including the reasonable fees
and out-of-pocket expenses of counsel to the Administrative Agent) in connection
with the negotiation, preparation, execution and delivery of this Amendment.

 

2

--------------------------------------------------------------------------------

4.3 Severability. Any provision of this Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such provision and such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment
or affecting the validity or enforceability of such provision in any other
jurisdiction.

4.4 Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this
Amendment or any provisions hereof.

4.5 Execution in Counterparts. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

4.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

4.7 Successors and Assigns. This Amendment shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and
assigns.

[Signature Pages Follow]

 

3

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

 

TOWER GROUP, INC. By:  

/s/ Vito A. Nigro

Name:  

Vito A. Nigro

Title:  

MVP, Finance

By:  

/s/ Craig A. Nyman

Name:  

Craig A. Nyman

Title:  

VP and Treasurer

Tower First Amendment Signature Page

 

S-1

--------------------------------------------------------------------------------

BANK OF AMERICA, N.A., as Administrative Agent, L/C Administrator, Fronting Bank
and Lender By:  

/s/ Tiffany Burgess

Name:   Tiffany Burgess Title:   Vice President

Tower First Amendment Signature Page

 

S-2

--------------------------------------------------------------------------------

JPMORGAN CHASE BANK, N.A. By:  

/s/ Thomas A. Kiepura

Name:  

Thomas A. Kiepura

Title:  

Vice President

Tower First Amendment Signature Page

 

S-3

--------------------------------------------------------------------------------

KEYBANK NATIONAL ASSOCIATION By:  

/s/ Thomas J. Purcell

Name:   Thomas J. Purcell Title:   Senior Vice President

Tower First Amendment Signature Page

 

S-4

--------------------------------------------------------------------------------

PNC BANK, NATIONAL ASSOCIATION By:  

/s/ Gustavus A. Bahr

Name:  

Gustavus A. Bahr

Title:  

Senior Vice President

Tower First Amendment Signature Page

 

S-5

--------------------------------------------------------------------------------

WELLS FARGO BANK, N.A. By:  

/s/ Robert P. Callahan, Jr

Name:  

Robert P. Callahan, Jr

Title:  

VP

Tower First Amendment Signature Page

 

S-6

--------------------------------------------------------------------------------

THE NORTHERN TRUST COMPANY By:  

/s/ Chris McKean

Name:  

Chris McKean

Title:  

S.V.P.

Tower First Amendment Signature Page

 

S-7