Exhibit 10.35 

Ref. No. 2003-015-01


ADDENDUM NO. 1

ATTACHED
TO AND FORMING A PART OF

THE REINSURANCE AGREEMENT


(hereinafter referred to as “Agreement”)


between


SAFETY INSURANCE COMPANY

SAFETY INDEMNITY INSURANCE COMPANY


(hereinafter referred to as the “Company”)


and


THE HARTFORD STEAM BOILER INSPECTION AND INSURANCE
COMPANY 

(hereinafter referred to as the “Reinsurer”)


IT IS UNDERSTOOD AND AGREED that, effective April     ,
2006, the following amendments are made to the Agreement to which this Addendum
attaches:


Article 4,  Forms, Rates and Rules,
is hereby amended to read as follows:


“ARTICLE 4 - FORMS, RATES AND RULES


Reinsurance will be provided only in accordance with forms, rates and
rules mutually acceptable to the Company and the Reinsurer. As respects
Businessowners and Commercial Package policies, the agreed forms shall be those
set forth in the Agreement, and the rates and rules shall be those set forth in
the “Binding Authority and Preferred Guidelines” effective 1/20/03 on file with
the Reinsurer. The “Binding Authority and Preferred Guidelines” may be amended
from time to time, as mutually agreed to by the Company and the Reinsurer.”


2.                          Paragraph
C., of Article 5,  Definitions, is hereby deleted.


3.                          Paragraphs
B., C. and D. of Article 7,  Other Provisions, are hereby deleted.


4.                          Article
11, Reinsurance Premium, is hereby amended to read as follows:


“ARTICLE 11 - REINSURANCE PREMIUM


A.                     For
Businessowners policies attaching on or after April 1, 2006, the Company shall
pay to the Reinsurer 4.05% of the Company’s Net Premiums Written. The term “Net
Premiums Written” as used herein means the Businessowners gross package
premiums, plus additional premiums less cancellations and return premiums.


B.                       For
Commercial Package policies attaching on or after April 1, 2006, the Company
shall pay to the Reinsurer 6.94% of the Company’s Net Premiums Written. The
term “Net Premiums Written” as used herein means the Commercial Package gross
property policy premiums, plus additional premiums less cancellations and
return premiums.



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Ref. No. 2003-015-01


C.                       In
the event Special Acceptances are covered hereunder as set forth in Article
16,  Special Acceptances, the Company shall pay to the Reinsurer the
reinsurance premium agreed upon for said Special Acceptances.”


5.                          Article
12, Ceding Commission, is hereby deleted.


6.                          Paragraph
A. of Article 13,  Reports and Remittances, is hereby amended to
read as follows:


“A.               Within
30 days after the close of each month, the Company shall report to the
Reinsurer the Net Premiums Written during that month and the Reinsurance
Premium as calculated in accordance with Article 11. Payment will be
immediately due and payable by the debtor party.”


7.                          “Exhibit
- Referral Guidelines” attached to the Agreement is hereby deleted.


All other terms and conditions of the Agreement to which this Addendum
attaches are unchanged and apply with full force and effect.


IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be
executed, in duplicate, in Boston, Massachusetts, this 10 day of August, 2006.


	
  

  	
   

  	
  SAFETY INSURANCE COMPANY

  SAFETY INDEMNITY INSURANCE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Illegible 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Illegible

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					



 


and in Hartford, Connecticut, this 10 day of August,
2006.


	
  

  	
  THE HARTFORD
  STEAM BOILER INSPECTION AND INSURANCE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  

  /s/ Michael A. Petruzzello

  	
   

  	
   

  	
  



  
	
   

  	
   

  	
  Michael A. Petruzzello, Executive Vice President and
  Chief Underwriting Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey P. Watt

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jeffrey P. Watt, Senior Vice President

  	
   

  	
   

  	
   

  



 



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