Document:

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                                                                    Exhibit 10.9

                   DEFERRED COMPENSATION PLAN FOR MICHAEL LEE

Plan of Deferred Compensation adopted by Tower Risk Management, Inc. (the
"Company") in favor of Michael Lee, the Company's President.

                                   WITNESSETH

WHEREAS, the Company deems it desirable to implement and adopt a nonqualified
deferred compensation plan (the "Plan") for the purpose of providing deferred
compensation awards to Michael Lee, as the Board of Directors shall determine;
and

WHEREAS, the Plan shall constitute an unfunded arrangement whereby awards will
be made but not payable to Mr. Lee until his Payment Date; and

WHEREAS, the amounts so declared as Deferred Compensation under the Plan shall
at all times until payment be fully subject to the claims of the Company's
creditors; and

NOW THEREFORE in consideration of the premises and the mutual covenants provided
for herein, the Plan is hereby adopted and shall have the terms hereinafter
provided.

1.    From time to time, the Company's Board of Directors shall meet and
      determine whether and to what extent non-qualified deferred compensation
      amounts shall be awarded (an "Award") to Michael Lee. In making each Award
      the Board shall specify the period of services for which the award is made
      and each Award shall be for services to be performed after the date of the
      Award.

2.    Any Awards so made shall not be payable until the April 1, 2008, or upon
      the earlier death of Mr. Lee, except upon such earlier death the amount to
      be paid shall be prorated over the period specified when the Award was
      made. So if the award was for calendar year 2001 services, and Mr. Lee
      dies on June 30, 2001, only 50% of that Award will be payable.

3.    The Award shall be forfeited, if, before the payment date, the Executive
      involved ceases to be employed by the Company because he voluntarily
      leaves the employ of the Company or his employment is terminated by the
      Company for Cause.

4.    Any Awards made shall continue to be fully subject to claims of the
      Company's creditors until payment is made. All Awards shall bear interest
      from the date of grant until payment at an annual rate of seven percent
      (7%.). The Plan shall be an unfunded arrangement, with all awards being
      subject to the Company's creditors until payment, and there is no
      requirement to set aside or otherwise segregate any Award prior to the
      payment date.

5.    The total amount of Awards to be made under this Plan, exclusive of
      interest, shall not exceed one million dollars ($1,000,000).
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6.    It is the intent and purpose of the Plan that awards made hereunder shall
      be neither taxable to Mr. Lee nor deductible by the Company until payment
      of the particular Award to Mr. Lee. This plan shall in all events be
      interpreted consistent with the foregoing sentence.

7.    This Plan is being promulgated pursuant to the resolution adopted by the
      Company's Board of Directors at its meeting held on the date hereof.

IN WITNESS WFIEREOF the Plan has been duly adopted effective upon the date set
forth below.

                                               /s/ Steven G. Fauth
                                              ------------------------------
                                                      Secretary

Dated: March 14, 2000<PAGE>

                                                                   EXHIBIT 10.24

                      AMENDED AND RESTATED PROMISSORY NOTE

New York, NY                                                     August 2, 2004

         FOR VALUE RECEIVED, the undersigned, (the "Maker"), promises to pay to
the order of Tower Risk Management, Inc. ("Holder"), the principal sum as
determined below, together with interest at the rate of four (4%) percent,
compounded annually (or such greater amount as may be necessary at the time of
each draw-down to avoid imputation of interest under applicable internal Revenue
Code provision), in lawful money of the United States, which shall be legal
tender in payment of all debts, public and private, at the time of payment, in
the manner hereinafter provided. This Amended and Restated Note replaces the
promissory note executed on March 14, 2000.

         1. The undersigned has taken draw downs and shall be entitled to take
draw downs from time to time up unto thirty days before the Maturity Date (as
hereinafter defined) and Holder agrees to supply such draw downs. Each draw down
shall bear interest commencing on the date of such draw down as set forth above,
and shall, with such interest, be due and payable on the earlier of (i) the
consummation of the sale by the Maker of shares of common stock of Tower Group,
Inc. following the registration by Tower Group Inc. of its shares of common
stock under the Securities Act of 1933 or (ii) March 14, 2007 (the "Maturity
Date"). Each draw-down shall be recorded upon the attached schedule and the
total of all draw downs shall not exceed $1 million.

         2. This Note may be prepaid in full, or in part, at any time without
premium or penalty, but with accrued interest on the amount so prepaid.

         3. In no event shall the amount of interest due or payable hereunder
exceed the maximum rate of interest allowed by applicable law, and in the event
any such payment is inadvertently paid by the Maker or inadvertently received by
the Holder, then such excess sum shall be credited as a payment of principal. It
is the express intent hereof that the Maker not pay and the Holder not receive,
directly or indirectly, in any manner whatsoever, interest in excess of that
which may be legally paid by the Maker under applicable law.

         4. Maker, for itself and its successors and assigns, expressly waives
presentment, demand, protest, notice of dishonor, notice of nonpayment, notice
of maturity, and notice of protest. Maker shall also be responsible for and
shall pay to Holder any collection costs, including, without limitation, any
reasonable attorneys fees.

         5. Each payment when paid shall be applied first to the costs of
collection, if any, then to the payment of any interest accrued under this Note
and the remaining amount thereof shall be credited against the principal balance
due hereunder.

         6. The indebtedness and obligations evidenced by this Note shall be
governed and construed in accordance with the laws of the State of New York.
This Note shall inure to the benefit of Holder and its successors and assigns
and the term Holder shall be deemed to include such successors and assigns.

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         IN WITNESS WHEREOF, Maker has caused this Note to be executed on the
day and year first above written.

                                       /s/ Michael H. Lee
                                       -----------------------------
                                       Michael Lee

Accepted and Agreed
Tower Risk Management, Inc.

By:  /s/ Steven G. Fauth
    -----------------------<PAGE>

                                                                   Exhibit 10.31

                                 ADDENDUM NO. 1

                                     TO THE

                                   QUOTA SHARE
                              REINSURANCE AGREEMENT
                            EFFECTIVE JANUARY 1, 2004

              (HEREINAFTER REFERRED TO AS THE "ORIGINAL AGREEMENT")

                                     BETWEEN

                       TOWER INSURANCE COMPANY OF NEW YORK

                   (HEREINAFTER REFERRED TO AS THE "COMPANY")

                                       AND

                   CONVERIUM REINSURANCE (NORTH AMERICA) INC.

                  (HEREINAFTER REFERRED TO AS THE "REINSURER")

WHEREAS, the Reinsurers and the Company are parties to the Original Agreement.

NOW THEREFORE, effective July 1, 2004, the parties hereto hereby agree to amend
the Original Agreement as follows:

         ARTICLE 7, DEFINITIONS - Definition A shall be deleted in its entirety
         and replaced with the following revised Definition A:

         "A.      "Cession Percentage" as used in this Agreement shall be 60%
                  (sixty percent) for the new and renewal Business Covered
                  written during the period January 1, 2004 through December 31,
                  2004, both days inclusive. However, if the Company has
                  increased its December 31, 2003 Statutory Surplus by more than
                  20% (twenty percent) on or before December 31, 2004, the
                  Company may elect to change the Cession Percentage, effective
                  as of October 1, 2004, to any amount that is not less than the
                  minimum cession percentage of 25% (twenty-five percent) and
                  not greater than 60% (sixty percent) by providing the
                  Reinsurer with written notice of the Company's election of
                  such new Cession Percentage amount by no later than
                  December 31, 2004."

All other terms and conditions of the Original Agreement remain unchanged.

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In Witness Whereof, the parties hereto have caused this Addendum No.1 to be
executed by their duly authorized representatives.

Signed for and on behalf of Tower Insurance Company of New York:

By:               /s/ Marina Contiero
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Title:            Vice President
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Date:             September 14, 2004
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Signed for and on behalf of Converium Reinsurance (North America) Inc. for its
33.333% (thirty three point three three three percent) participation of the
terms and conditions of the Original Agreement

By:               /s/ Raymond Dowling
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Title:            Senior Vice President
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Date:             September 14, 2004
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