Exhibit 10.20

 

Republic Underwriters Insurance Company / Texas General Agency

All Lines Quota Share Reinsurance Agreements

To Be Effective: January 1, 2006, 2007 and 2008

 

     Current Terms

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  Proposed Terms

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     2005

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  2006

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  2007

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  2008

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Republic Risk Position

                

Minimum

   40%   50%   40%   30%

Projected

   40%   60%   40%   30%

Maximum

   40%   75%   50%   30%

Sliding Scale Structure

                

Slide %

   [**]%   [**]%   [**]%   [**]%

Slide Ratio

   [**] : [**]   [**] : [**]   [**] : [**]   [**] : [**]

Minimum & Provisional Commission

   [**]%   [**]%   [**]%   [**]%

@

   @   @   @   @

Maximum Loss Ratio

   [**]%   [**]%   [**]%   [**]%

Maximum Commission

   [**]%   [**]%   [**]%   [**]%

@

   @   @   @   @

Minimum Loss Ratio

   [**]%   [**]%   [**]%   [**]%

Company Fees

   [**]%   [**]%   [**]%   [**]%

Boards Bureaus & Taxes

   Actual Incurred   Actual Incurred   Actual Incurred   Actual Incurred

 

Other Provisions:

 

Contract will include a non-compete clause prohibiting Republic from soliciting
TGA’s current wholesale agent base during the term of the contract, plus 18
months.

 

First profit share adjustment is due 24 months after the end of the treaty year
and is to be recalculated annually until all losses are settled.

 

If American Hallmark Insurance Company, or any other insurance company that
assumes this business, drops below an AM Best Rating of A-, then a irrevocable
letter of credit or trust funds must be supplied that is acceptable to Republic.
The funds or L.O.C. must be sufficient to cover all ceded balances.

 

[**] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.