exv10w1w47



 






EXHIBIT 10.1.47




THIRD AMENDMENT

TO THE SECURITIES PURCHASE AGREEMENT



This amendment (“Amendment”) is made and entered into as of the 21st day of October, 2005
(“Effective Date”) by and between Specialty Risk Solutions, LLC (“SRS”) and Specialty
Underwriters’ Alliance, Inc., and amends the SECURITIES PURCHASE AGREEMENT(“Agreement”) entered
into by the parties on May 11, 2005 as amended. Any terms defined in the Agreement and used herein
shall have the same meaning in this Amendment as in the Agreement. In the event that any provision
of this Amendment and any provision of the Agreement are inconsistent or conflicting, the
inconsistent or conflicting provision of this Amendment shall be and constitute an amendment of the
Agreement and shall control, but only to the extent that such provision is inconsistent or
conflicting with the Agreement. Any capitalized terms not defined herein shall be defined as in
the Agreement.



NOW, THEREFORE, and in consideration of the mutual agreements and covenants set forth, the parties
wish to amend the Agreement as follows:



Subsection (ii) of (c) of Section 1: Sale and Purchase of Securities; Closing, shall be
deleted in its entirety and replaced with the following:





(ii) thereafter, on thirtieth day following the end of each quarter, 3% of the Gross
Written Premium subject to Commissions owed to Purchaser by the Company, as defined in the
Partner Agent Agreement dated May 11, 2005.


The following shall be inserted at the end of subsection (c) of Section 1: Sale and Purchase of
Securities; Closing,:





Notwithstanding the foregoing, with respect to any Installment Date, the Company shall not
issue, and the Purchaser shall not be required to make Payment for, any Shares if the
issuance of such Shares would result in (i) the aggregate number of all Shares issued
pursuant to this Agreement being greater than 19.9% of the number of shares of the Company’s
Common Stock issued and outstanding on the date hereof (exclusive of any shares held by
affiliates of the Company) or (ii) the Company being in violation of any listing
requirements, corporate governance rules or any other rules and regulations of the NASD or
the Nasdaq National Market or any other market or exchange on which the Company’s Common
Stock is then listed or quoted; in which case the Company and the Purchaser will, if legally
permissible, adjust the amount of the Payment due, and the number of Shares to be issued, so
that the conditions specified in sub-clauses (i) and (ii) would be satisfied.


The notice address for the Company, as listed in Subsection (e) of Section 9:
Miscellaneous, shall be deleted and replaced with the following:




	 
	Specialty Underwriters’ Alliance, Inc.

	222 South Riverside Plaza

	Chicago, Illinois 60606

	Facsimile: 312-277-1800







 









 







Attention: General Counsel


Subsection (m) of Section 9: Miscellaneous shall be deleted in its entirety and replaced
with the following:





(m) Approval. The Purchaser acknowledges that (i) the Company has not sought, or
received, stockholder approval as may be required under the rules and regulations of the
NASD or Nasdaq National Market in respect of transactions that may result in, among other
things, a change of control or the issuance of more than 20% of a company’s outstanding
common stock, (ii) all of the Company’s representations and warranties contained herein are
deemed modified by the disclosures in this Section 9(m), (iii) the restrictions on the
issuance of Shares set forth in the last sentence of Section 1(c) are intended to ensure
that the Company does not violate any rules, regulations or listing requirements of the NASD
or the Nasdaq National Market, and (iv) if the Company ever needs to seek shareholder
approval with respect to such matters, the Purchaser shall not be entitled to vote on such
matters.


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on their behalf by
their duly authorized officers as of the day, month and year above written.




	 	 	 
	SPECIALTY UNDERWRITERS’ ALLIANCE, INC.
	 
	 	 
	By:

	 	/s/ COURTNEY C. SMITH
	 

	 	 
	Name: Courtney C. Smith
	Title: President and CEO
	 
	 	 
	SPECIALTY RISK SOLUTIONS, LLC
	 
	 	 
	By:

	 	/s/ SCOTT H. KELLER
	 

	 	 
	Name: Scott H. Keller
	Title: Managing Director