Document:

EX-10.8

 Exhibit 10.8 
  

 
  

CONTINENTAL BUILDING PRODUCTS, INC. 

2014 STOCK INCENTIVE PLAN 
  

 
  

 CONTINENTAL BUILDING PRODUCTS, INC. 

2014 STOCK INCENTIVE PLAN 
  

	1.	Purpose 

 The purpose of the Continental Building Products, Inc. 2014 Stock Incentive Plan (the
“Plan”) is to promote and closely align the interests of employees, non-employee directors, consultants and advisors of Continental Building Products, Inc. (the “Company”) and its stockholders by providing stock-based
compensation and other performance-based compensation. The objectives of the Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Participants and to optimize the
profitability and growth of the Company through incentives that are consistent with the Company’s goals and that link the personal interests of Participants to those of the Company’s stockholders. 

The Plan provides for the grant of Options, Stock Appreciation Rights, Restricted Stock Units and Restricted Stock, any of which may be performance-based, and
for Incentive Bonuses, which may be paid in cash or stock or a combination thereof, as determined by the Committee. 
  

	2.	Definitions 

 As used in the Plan, the following terms shall have the meanings set forth below: 

(a) “Affiliate” means any entity in which the Company has a substantial direct or indirect equity interest, as determined by the Committee from time
to time. 
 (b) “Act” means the Securities Exchange Act of 1934, as amended, or any successor thereto. 

(c) “Award” means an Option, Stock Appreciation Right, Restricted Stock Unit, Restricted Stock or Incentive Bonus granted to a Participant pursuant
to the provisions of the Plan, any of which may be subject to performance conditions. 
 (d) “Award Agreement” means a written or electronic
agreement or other instrument as may be approved from time to time by the Committee and designated as such implementing the grant of each Award. An Award Agreement may be in the form of an agreement to be executed by both the Participant and the
Company (or an authorized representative of the Company) or certificates, notices or similar instruments as approved by the Committee and designated as such. 

(e) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Act. 

(f) “Board” means the board of directors of the Company. 

(g) “Cause” means a Participant’s Termination of Employment by the Company or an Affiliate by reason of the Participant’s
(i) material breach of his obligations under any agreement, including any employment agreement, that he has entered into with the Company or an Affiliate; (ii) intentional misconduct as an officer, employee, director, consultant or advisor
of the Company or a material violation by the Participant of written 

  
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policies of the Company; (iii) material breach of any fiduciary duty which the Participant owes to the Company; (iv) commission by the Participant of (A) a felony or
(B) fraud, embezzlement, dishonesty, or a crime involving moral turpitude; (v) the habitual use of illicit drugs or other illicit substances or the addiction to licit drugs or other substances; or (vi) unexplained absence from work or
service for more than ten (10) days in any twelve (12) month period (vacation, reasonable personal leave, reasonable sick leave and disability excepted). A Participant’s employment or service will be deemed to have been terminated for
Cause if it is determined subsequent to his or her termination of employment or service that grounds for termination of his or her employment or service for Cause existed at the time of his or her termination of employment or service. 

(h) “Change in Control” means the occurrence of any one of the following: 

(1) any Person, other than LSF8 Gypsum Holdings, L.P. or its Affiliates, is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person or any securities acquired directly from the Company or its Affiliates) representing 35% or more of the combined voting power of the Company’s then
outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph 3 below; or 

(2) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the
Effective Date (as defined below), constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent
solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least a majority of the
directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 

(3) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other
corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or
consolidation; or 
 (4) the implementation of a plan of complete liquidation or dissolution of the Company or there is consummated an
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to (A) an entity, at least
50% of the combined voting power of the voting securities of which is owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale, or (B) LSF8 Gypsum Holdings, L.P.
or its Affiliates. 

  
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 (i) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rulings and
regulations issues thereunder. 
 (j) “Committee” means the Compensation Committee of the Board (or any successor committee), or such other
committee as designated by the Board to administer the Plan under Section 6. 
 (k) “Common Stock” means the common stock of the Company, par
value $0.001 a share, or such other class or kind of shares or other securities as may be applicable under Section 15. 
 (l) “Company” means
Continental Building Products, Inc., a Delaware corporation, and except as utilized in the definition of Change in Control, any successor corporation. 

(m) “Dividend Equivalents” mean an amount payable in cash or Common Stock, as determined by the Committee, with respect to a Restricted Stock Unit
Award equal to what would have been received if the shares underlying the Award had been owned by the Participant. 
 (n) “Effective Date” means
the date on which the Plan takes effect, as defined pursuant to Section 4 of the Plan. 
 (o) “Eligible Person” any employee or non-employee
director the Company or any of its Subsidiaries; provided however that Incentive Stock Options may only be granted to employees. 
 (p) “Fair Market
Value” means as of any date, the value of the Common Stock determined as follows: (i) if the Common Stock is listed on any established stock exchange, system or market, its Fair Market Value shall be the closing price for the Common Stock
as quoted on such exchange, system or market as reported in the Wall Street Journal or such other source as the Committee deems reliable; and (ii) in the absence of an established market for the Common Stock, the Fair Market Value thereof shall
be determined in good faith by the Committee by the reasonable application of a reasonable valuation method, taking into account factors consistent with Treas. Reg. § 409A-1(b)(5)(iv)(B) as the Committee deems appropriate. 

(q) “Incentive Bonus” means a bonus opportunity awarded under Section 11 pursuant to which a Participant may become entitled to receive an
amount based on satisfaction of such performance criteria established for a specified performance period as specified in the Award Agreement. 
 (r)
“Incentive Stock Option” means a stock option that is designated as potentially eligible to qualify as an “incentive stock option” within the meaning of Section 422 of the Code. 

(s) “Nonqualified Stock Option” means a stock option that is not intended to qualify as an “incentive stock option” within the meaning of
Section 422 of the Code. 
 (t) “Option” means a right to purchase a number of shares of Common Stock at such exercise price, at such times
and on such other terms and conditions as are specified in or determined pursuant to an Award Agreement. Options granted pursuant to the Plan may be Incentive Stock Options or Nonqualified Stock Options. 

  
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 (u) “Participant” means any individual described in Section 3 to whom Awards have been granted
from time to time by the Committee and any authorized transferee of such individual. 
 (v) “Person” shall have the meaning given in
Section 3(a)(9) of the Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of the Company. 
 (w) “Plan” means the Continental Building Products,
Inc. 2014 Stock Incentive Plan as set forth herein and as amended from time to time. 
 (x) “Restricted Stock” means an Award or issuance of
Common Stock the grant, issuance, retention, vesting and/or transferability of which is subject during specified periods of time to such conditions (including continued employment or performance conditions) and terms as the Committee deems
appropriate. 
 (y) “Restricted Stock Unit” means an Award denominated in units of Common Stock under which the issuance of shares of Common Stock
(or cash payment in lieu thereof) is subject to such conditions (including continued employment or performance conditions) and terms as the Committee deems appropriate. 

(z) “Separation from Service” or “Separates from Service” means the termination of Participant’s employment with the Company and all
Subsidiaries that constitutes a “separation from service” within the meaning of Section 409A of the Code. 
 (aa) “Stock Appreciation
Right” means a right granted that entitles the Participant to receive, in cash or Common Stock or a combination thereof, as determined by the Committee, value equal to the excess of (i) the Fair Market Value of a specified number of shares
of Common Stock at the time of exercise over (ii) the exercise price of the right, as established by the Committee on the date of grant. 
 (bb)
“Subsidiary” means any business association (including a corporation or a partnership, other than the Company) in an unbroken chain of such associations beginning with the Company if each of the associations other than the last association
in the unbroken chain owns equity interests (including stock or partnership interests) possessing 50% or more of the total combined voting power of all classes of equity interests in one of the other associations in such chain. 

(cc) “Substitute Awards” means Awards granted or Common Stock issued by the Company in assumption of, or in substitution or exchange for, awards
previously granted, or the right or obligation to make future awards, by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines. 

  
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 (dd) “Termination of Employment” means ceasing to serve as an employee of the Company and its
Subsidiaries or, with respect to a non-employee director or other service provider, ceasing to serve as such for the Company, except that with respect to all or any Awards held by a Participant (i) the Committee may determine that a leave of
absence or employment on a less than full-time basis is considered a “Termination of Employment,” (ii) the Committee may determine that a transition of employment to service with a partnership, joint venture or corporation not meeting
the requirements of a Subsidiary in which the Company or a Subsidiary is a party is not considered a “Termination of Employment,” (iii) service as a member of the Board shall constitute continued employment with respect to Awards
granted to a Participant while he or she served as an employee and (iv) service as an employee of the Company or a Subsidiary shall constitute continued employment with respect to Awards granted to a Participant while he or she served as a
member of the Board or other service provider. The Committee shall determine whether any corporate transaction, such as a sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result in a Termination of
Employment with the Company and its Subsidiaries for purposes of any affected Participant’s Awards, and the Committee’s decision shall be final and binding. 
  

	3.	Eligibility 

 Any Eligible Person is eligible to receive an Award. 

 

	4.	Effective Date and Termination of Plan 

 This Plan became effective on
            , 2014 (the “Effective Date”). The Plan shall remain available for the grant of Awards until the tenth (10th) anniversary of the Effective Date. Notwithstanding
the foregoing, the Plan may be terminated at such earlier time as the Board may determine. Termination of the Plan will not affect the rights and obligations of the Participants and the Company arising under Awards theretofore granted. 

 

	5.	Shares Subject to the Plan and to Awards 

 (a) Aggregate Limits. The aggregate
number of shares of Common Stock issuable under the Plan shall be equal to One Million Six Hundred Fifteen Thousand Two Hundred (1,615,200). The aggregate number of shares of Common Stock available for grant under this Plan and the number of shares
of Common Stock subject to Awards outstanding at the time of any event described in Section 15 shall be subject to adjustment as provided in Section 15. The shares of Common Stock issued pursuant to Awards granted under this Plan may be
shares that are authorized and unissued or shares that were reacquired by the Company, including shares purchased in the open market. 
 (b) Issuance of
Shares. For purposes of Section 5(a), the aggregate number of shares of Common Stock issued under this Plan at any time shall equal only the number of shares of Common Stock actually issued upon exercise or settlement of an Award, and
shares of Common Stock subject to Awards that have been canceled, expired, forfeited or otherwise not issued under an Award and shares of Common Stock subject to Awards 

  
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settled in cash shall not count as shares of Common Stock issued under this Plan. The aggregate number of shares available for issuance under this Plan at any time shall not be reduced by
(i) shares subject to Awards that have been terminated, expired unexercised, forfeited or settled in cash, (ii) shares subject to Awards that have been retained or withheld by the Company in payment or satisfaction of the exercise price,
purchase price or tax withholding obligation of an Award, or (iii) shares subject to Awards that otherwise do not result in the issuance of shares in connection with payment or settlement thereof. In addition, shares that have been delivered
(either actually or by attestation) to the Company in payment or satisfaction of the exercise price, purchase price or tax withholding obligation of an Award shall be available for issuance under this Plan. 

(c) Tax Code Limits. The aggregate number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options granted
under this Plan shall be equal to One Million Six Hundred Fifteen Thousand Two Hundred (1,615,200), which number shall be calculated and adjusted pursuant to Section 15 only to the extent that such calculation or adjustment will not affect the
status of any option intended to qualify as an Incentive Stock Option under Section 422 of the Code. 
 (d) Substitute Awards. Substitute Awards
shall not reduce the shares of Common Stock authorized for issuance under the Plan or authorized for grant to a Participant in any calendar year. Additionally, in the event that a company acquired by the Company or any Subsidiary, or with which the
Company or any Subsidiary combines, has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such
pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of
the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the shares of Common Stock authorized for issuance under the Plan; provided that Awards using such available shares shall not be made
after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were employees of such acquired or combined company before such
acquisition or combination. 
  

	6.	Administration of the Plan 

 (a) Administrator of the Plan. The Plan shall be
administered by the Committee. The Board shall fill vacancies on, and from time to time may remove or add members to, the Committee. The Committee shall act pursuant to a majority vote or unanimous written consent. Any power of the Committee may
also be exercised by the Board, except to the extent that the grant or exercise of such authority would cause any Award or transaction to become subject to (or lose an exemption under) the short-swing profit recovery provisions of
Section 16 of the Securities Exchange Act of 1934 or cause an Award intended to qualify as performance-based compensation under Section 162(m) of the Code not to qualify for such treatment. To the extent that any permitted action taken by
the Board conflicts with action taken by the Committee, the Board action shall 

  
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control. To the maximum extent permissible under applicable law, the Committee (or any successor) may by resolution delegate any or all of its authority to one or more subcommittees composed of
one or more directors and/or officers, and any such subcommittee shall be treated as the Committee for all purposes under this Plan. Notwithstanding the foregoing, if the Board or the Committee (or any successor) delegates to a subcommittee
comprised of one or more officers of the Company (who are not also directors) the authority to grant Awards, the resolution so authorizing such subcommittee shall specify the total number of shares of Common Stock such subcommittee may award
pursuant to such delegated authority, and no such subcommittee shall designate any officer serving thereon or any executive officer or non-employee director of the Company as a recipient of any Awards granted under such delegated authority. The
Committee hereby delegates to and designates the senior human resources officer of the Company (or such other officer with similar authority), and to his or her delegates or designees, the authority to assist the Committee in the day-to-day
administration of the Plan and of Awards granted under the Plan, including without limitation those powers set forth in Section 6(b)(4) through (9) and to execute agreements evidencing Awards made under this Plan or other documents entered
into under this Plan on behalf of the Committee or the Company. The Committee may further designate and delegate to one or more additional officers or employees of the Company or any subsidiary, and/or one or more agents, authority to assist the
Committee in any or all aspects of the day-to-day administration of the Plan and/or of Awards granted under the Plan. 
 (b) Powers of Committee.
Subject to the express provisions of this Plan, the Committee shall be authorized and empowered to do all things that it determines to be necessary or appropriate in connection with the administration of this Plan, including, without limitation:

 (1) to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms not otherwise defined herein; 

(2) to determine which persons are Eligible Persons, to which of such Eligible Persons, if any, Awards shall be granted hereunder and the
timing of any such Awards; 
 (3) to prescribe and amend the terms of the Award Agreements, to grant Awards and determine the terms and
conditions thereof; 
 (4) to establish and verify the extent of satisfaction of any performance goals or other conditions applicable to the
grant, issuance, retention, vesting, exercisability or settlement of any Award; 
 (5) to prescribe and amend the terms of or form of any
document or notice required to be delivered to the Company by Participants under this Plan; 
 (6) to determine the extent to which
adjustments are required pursuant to Section 15; 
 (7) to interpret and construe this Plan, any rules and regulations under this Plan
and the terms and conditions of any Award granted hereunder, and to make exceptions to any such provisions if the Committee, in good faith, determines that it is appropriate to do so; 

  
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 (8) to approve corrections in the documentation or administration of any Award; and 

(9) to make all other determinations deemed necessary or advisable for the administration of this Plan. 

Notwithstanding anything in this Plan to the contrary, with respect to any Award that is “deferred compensation” under Section 409A of the
Code, the Committee shall exercise its discretion in a manner that causes such Awards to be compliant with or exempt from the requirements of such Code section. Without limiting the foregoing, unless expressly agreed to in writing by the Participant
holding such Award, the Committee shall not take any action with respect to any Award which constitutes (i) a modification of a stock right within the meaning of Treas. Reg. Section 1.409A-1(b)(5)(v)(B) so as to constitute the grant of a
new stock right, (ii) an extension of a stock right, including the addition of a feature for the deferral of compensation within the meaning of Treas. Reg. Section 1.409A-1(b)(5)(v)(C), or (iii) an impermissible acceleration of a
payment date or a subsequent deferral of a stock right subject to Section 409A of the Code within the meaning of Treas. Reg. Section 1.409A-1(b)(5)(v)(E). 

The Committee may, in its sole and absolute discretion, without amendment to the Plan but subject to the limitations otherwise set forth in Section 19,
waive or amend the operation of Plan provisions respecting exercise after termination of employment or service to the Company or an Affiliate. The Committee or any member thereof may, in its sole and absolute discretion and, except as otherwise
provided in Section 19, waive, settle or adjust any of the terms of any Award so as to avoid unanticipated consequences or address unanticipated events (including any temporary closure of an applicable stock exchange, disruption of
communications or natural catastrophe). 
 (c) Determinations by the Committee. All decisions, determinations and interpretations by the Committee
regarding the Plan, any rules and regulations under the Plan and the terms and conditions of or operation of any Award granted hereunder, shall be final and binding on all Participants, beneficiaries, heirs, assigns or other persons holding or
claiming rights under the Plan or any Award. The Committee shall consider such factors as it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations including, without limitation, the
recommendations or advice of any officer or other employee of the Company and such attorneys, consultants and accountants as it may select. Members of the Board and members of the Committee acting under the Plan shall be fully protected in relying
in good faith upon the advice of counsel and shall incur no liability except for gross negligence or willful misconduct in the performance of their duties. 

(d) Subsidiary Awards. In the case of a grant of an Award to any Participant employed by a Subsidiary, such grant may, if the Committee so directs, be
implemented by the Company issuing any subject shares of Common Stock to the Subsidiary, for such lawful consideration as the Committee may determine, upon the condition or understanding that the Subsidiary will transfer the shares of Common Stock
to the 

  
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Participant in accordance with the terms of the Award specified by the Committee pursuant to the provisions of the Plan. Notwithstanding any other provision hereof, such Award may be issued by
and in the name of the Subsidiary and shall be deemed granted on such date as the Committee shall determine. 
  

	7.	Plan Awards 

 (a) Terms Set Forth in Award Agreement. Awards may be granted at any time and from
time to time prior to the termination of the Plan to Eligible Persons as determined by the Committee. The terms and conditions of each Award shall be set forth in an Award Agreement in a form approved by the Committee for such Award, which Award
Agreement may contain such terms and conditions as specified from time to time by the Committee, provided such terms and conditions do not conflict with the Plan. The Award Agreement for any Award (other than Restricted Stock awards) shall include
the time or times at or within which and the consideration, if any, for which any shares of Common Stock may be acquired from the Company. The terms of Awards may vary among Participants, and the Plan does not impose upon the Committee any
requirement to make Awards subject to uniform terms. Accordingly, the terms of individual Award Agreements may vary. 
 (b) Separation from Service.
Subject to the express provisions of the Plan, the Committee shall specify before, at, or after the time of grant of an Award the provisions governing the effect(s) upon an Award of a Participant’s Separation from Service. 

(c) Rights of a Stockholder. A Participant shall have no rights as a stockholder with respect to shares of Common Stock covered by an Award (including
voting rights) until the date the Participant becomes the holder of record of such shares of Common Stock. No adjustment shall be made for dividends or other rights for which the record date is prior to such date, except as provided in
Section 10(b) or Section 15 of this Plan or as otherwise provided by the Committee. 
  

	8.	Options 

 (a) Grant, Term and Price. The grant, issuance, retention, vesting
and/or settlement of any Option shall occur at such time and be subject to such terms and conditions as determined by the Committee or under criteria established by the Committee, which may include conditions based on continued employment, passage
of time, attainment of age and/or service requirements, and/or satisfaction of performance conditions. The term of an Option shall in no event be greater than ten years; provided, however, the term of an Option (other than an Incentive Stock Option)
shall be automatically extended if, at the time of its scheduled expiration, the Participant holding such Option is prohibited by law or the Company’s insider trading policy from exercising the Option, which extension shall expire on the
thirtieth (30th) day following the date such prohibition no longer applies. The Committee will establish the price at which Common Stock may be purchased upon exercise of an Option, which, in no event will be less than the Fair Market Value of
such shares on the date of grant; provided, however, that the exercise price per share of Common Stock with respect to an Option that is granted as a Substitute Award may be less than the Fair Market Value of the shares of Common Stock on the date
such Option is granted if such exercise price is based on a 

  
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formula set forth in the terms of the options held by such optionees or in the terms of the agreement providing for such merger or other acquisition that satisfies the requirements of
(i) Section 409A of the Code, if such options held by such optionees are not intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code, and (ii) Section 424(a) of the Code, if
such options held by such optionees are intended to qualify as “incentive stock options” within the meaning of Section 422 of the Code. The exercise price of any Option may be paid in cash or such other method as determined by the
Committee, including an irrevocable commitment by a broker to pay over such amount from a sale of the Shares issuable under an Option, the delivery of previously owned shares of Common Stock or withholding of shares of Common Stock deliverable upon
exercise. 
 (b) No Repricing without Stockholder Approval. Other than in connection with a change in the Company’s capitalization (as described
in Section 15), the Committee shall not, without stockholder approval, reduce the exercise price of a previously awarded Option and, at any time when the exercise price of a previously awarded Option is above the Fair Market Value of a share of
Common Stock, the Committee shall not, without stockholder approval, cancel and re-grant or exchange such Option for cash or a new Award with a lower (or no) exercise price. 

(c) No Reload Grants. Options shall not be granted under the Plan in consideration for and shall not be conditioned upon the delivery of shares of
Common Stock to the Company in payment of the exercise price and/or tax withholding obligation under any other employee stock option. 
 (d) Incentive
Stock Options. Notwithstanding anything to the contrary in this Section 8, in the case of the grant of an Option intending to qualify as an Incentive Stock Option, if the Participant owns stock possessing more than 10 percent of the
combined voting power of all classes of stock of the Company (a “10% Stockholder”), the exercise price of such Option must be at least 110 percent of the Fair Market Value of the shares of Common Stock on the date of grant and the Option
must expire within a period of not more than five (5) years from the date of grant. Notwithstanding anything in this Section 8 to the contrary, options designated as Incentive Stock Options shall not be eligible for treatment under the
Code as Incentive Stock Options (and will be deemed to be Nonqualified Stock Options) to the extent that either (a) the aggregate Fair Market Value of shares of Common Stock (determined as of the time of grant) with respect to which
such Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Subsidiary) exceeds $100,000, taking Options into account in the order in which they were granted, or
(b) such Options otherwise remain exercisable but are not exercised within three (3) months (or such other period of time provided in Section 422 of the Code) of separation of service (as determined in accordance with
Section 3401(c) of the Code and the regulations promulgated thereunder). 
 (e) No Stockholder Rights. Participants shall have no voting
rights and will have no rights to receive dividends or Dividend Equivalents in respect of an Option or any shares of Common Stock subject to an Option until the Participant has become the holder of record of such shares. 

  
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	9.	Stock Appreciation Rights 

 (a) General Terms. The grant, issuance, retention, vesting and/or
settlement of any Stock Appreciation Right shall occur at such time and be subject to such terms and conditions as determined by the Committee or under criteria established by the Committee, which may include conditions based on continued
employment, passage of time, attainment of age and/or service requirements, and/or satisfaction of performance conditions. Stock Appreciation Rights may be granted to Participants from time to time either in tandem with or as a component of Options
granted under the Plan (“tandem SARs”) or not in conjunction with other Awards (“freestanding SARs”). Upon exercise of a tandem SAR as to some or all of the shares covered by the grant, the related Option shall be canceled
automatically to the extent of the number of shares covered by such exercise. Conversely, if the related Option is exercised as to some or all of the shares covered by the grant, the related tandem SAR, if any, shall be canceled automatically to the
extent of the number of shares covered by the Option exercise. Any Stock Appreciation Right granted in tandem with an Option may be granted at the same time such Option is granted or at any time thereafter before exercise or expiration of such
Option, provided that the Fair Market Value of Common Stock on the date of the SAR’s grant is not greater than the exercise price of the related Option. All freestanding SARs shall be granted subject to the same terms and conditions applicable
to Options as set forth in Section 8 and all tandem SARs shall have the same exercise price as the Option to which they relate. Subject to the provisions of Section 8 and the immediately preceding sentence, the Committee may impose such
other conditions or restrictions on any Stock Appreciation Right as it shall deem appropriate. Stock Appreciation Rights may be settled in Common Stock, cash, Restricted Stock or a combination thereof, as determined by the Committee and set forth in
the applicable Award Agreement. 
 (b) No Repricing without Stockholder Approval. Other than in connection with a change in the Company’s
capitalization (as described in Section 15), the Committee shall not, without stockholder approval, reduce the exercise price of a previously awarded Stock Appreciation Right and, at any time when the exercise price of a previously awarded
Stock Appreciation Right is above the Fair Market Value of a share of Common Stock, the Committee shall not, without stockholder approval, cancel and re-grant or exchange such Stock Appreciation Right for cash or a new Award with a lower (or no)
exercise price. 
 (c) No Stockholder Rights. Participants shall have no voting rights and will have no rights to receive dividends or Dividend
Equivalents in respect of an Award of Stock Appreciation Rights or any shares of Common Stock subject to an Award of Stock Appreciation Rights until the Participant has become the holder of record of such shares. 

 

	10.	Restricted Stock and Restricted Stock Units 

 (a) Vesting and Performance Criteria. The grant,
issuance, retention, vesting and/or settlement of any Award of Restricted Stock or Restricted Stock Units shall occur at such time and be subject to such terms and conditions as determined by the Committee or under criteria established by the
Committee, which may include conditions based on continued employment, passage of time, attainment of age and/or service requirements, and /or satisfaction of performance conditions. In addition, the Committee shall have the

  
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right to grant Restricted Stock or Restricted Stock Unit Awards as the form of payment for grants or rights earned or due under other stockholder-approved compensation plans or arrangements of
the Company. 
 (b) Dividends and Distributions. Participants in whose name Restricted Stock is granted shall be entitled to receive
all dividends and other distributions paid with respect to those shares of Common Stock, unless determined otherwise by the Committee. The Committee will determine whether any such dividends or distributions will be automatically reinvested in
additional shares of Restricted Stock and/or subject to the same restrictions on transferability as the Restricted Stock with respect to which they were distributed or whether such dividends or distributions will be paid in cash. Shares underlying
Restricted Stock Units shall be entitled to dividends or distributions only to the extent provided by the Committee. Notwithstanding anything herein to the contrary, in no event will dividends or Dividend Equivalents be paid during the performance
period with respect to unearned Awards of Restricted Stock or Restricted Stock Units that are subject to performance-based vesting criteria. Dividends or Dividend Equivalents accrued on such shares shall become payable no earlier than the date the
performance-based vesting criteria have been achieved and the underlying shares or Restricted Stock Units have been earned. 
  

	11.	Incentive Bonuses 

 (a) Performance Criteria. The Committee shall establish the performance
criteria and level of achievement versus these criteria that shall determine the amount payable under an Incentive Bonus, which may include a target, threshold and/or maximum amount payable and any formula for determining such achievement, and which
criteria may be based on performance conditions. 
 (b) Timing and Form of Payment. The Committee shall determine the timing of payment of any
Incentive Bonus. Payment of the amount due under an Incentive Bonus may be made in cash or in Common Stock, as determined by the Committee. 
 (c)
Discretionary Adjustments. Notwithstanding satisfaction of any performance goals and, the amount paid under an Incentive Bonus on account of either financial performance or personal performance evaluations may be adjusted by the Committee on
the basis of such further considerations as the Committee shall determine. 
  

	12.	[Reserved] 

  

	13.	Deferral of Payment 

 The Committee may, in an Award Agreement or otherwise, provide for the deferred
delivery of Common Stock or cash upon settlement, vesting or other events with respect to Restricted Stock Units, or in payment or satisfaction of an Incentive Bonus. Notwithstanding anything herein to the contrary, in no event will any election to
defer the delivery of Common Stock or any other payment with respect to any Award be allowed if the Committee determines, in its sole discretion, that the deferral would result in the imposition of the additional tax under
Section 409A(a)(1)(B) of the Code. No Award shall provide for deferral of compensation that does not comply with Section 409A of the 

  
 12 

 
Code. The Company, the Board and the Committee shall have no liability to a Participant, or any other party, if an Award that is intended to be exempt from, or compliant with, Section 409A
of the Code is not so exempt or compliant or for any action taken by the Board or the Committee. 
  

	14.	Conditions and Restrictions Upon Securities Subject to Awards 

 The Committee may provide that the Common
Stock issued upon exercise of an Option or Stock Appreciation Right or otherwise subject to or issued under an Award shall be subject to such further agreements, restrictions, conditions or limitations as the Committee in its discretion may specify
prior to the exercise of such Option or Stock Appreciation Right or the grant, vesting or settlement of such Award, including without limitation, conditions on vesting or transferability, forfeiture or repurchase provisions and method of payment for
the Common Stock issued upon exercise, vesting or settlement of such Award (including the actual or constructive surrender of Common Stock already owned by the Participant) or payment of taxes arising in connection with an Award. Without
limiting the foregoing, such restrictions may address the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any shares of Common Stock issued under an Award, including without limitation
(i) restrictions under an insider trading policy or pursuant to applicable law, (ii) restrictions designed to delay and/or coordinate the timing and manner of sales by the Participant and holders of other Company equity compensation
arrangements, (iii) restrictions as to the use of a specified brokerage firm for such resales or other transfers and (iv) provisions requiring Common Stock be sold on the open market or to the Company in order to satisfy tax withholding or
other obligations. 
  

	15.	Adjustment of and Changes in the Stock 

 (a) The number and kind of shares of Common Stock available for
issuance under this Plan (including under any Awards then outstanding), and the number and kind of shares of Common Stock subject to the limits set forth in Section 5 of this Plan, shall be equitably adjusted by the Committee to reflect any
reorganization, reclassification, combination of shares, stock split, reverse stock split, spin-off, dividend or distribution of securities, property or cash (other than regular, quarterly cash dividends), or any other event or transaction that
affects the number or kind of shares of Common Stock outstanding. Such adjustment may be designed to comply with Section 424 of the Code or may be designed to treat the shares of Common Stock available under the Plan and subject to Awards as if
they were all outstanding on the record date for such event or transaction or to increase the number of such shares of Common Stock to reflect a deemed reinvestment in shares of Common Stock of the amount distributed to the Company’s
securityholders. The terms of any outstanding Award shall also be equitably adjusted by the Committee as to price, number or kind of shares of Common Stock subject to such Award, vesting, and other terms to reflect the foregoing events, which
adjustments need not be uniform as between different Awards or different types of Awards. No fractional shares of Common Stock shall be issued pursuant to such an adjustment. 

(b) In the event there shall be any other change in the number or kind of outstanding shares of Common Stock, or any stock or other securities into which such
Common Stock 

  
 13 

 
shall have been changed, or for which it shall have been exchanged, by reason of a Change in Control, other merger, consolidation or otherwise, then the Committee shall determine the appropriate
and equitable adjustment to be effected, which adjustments need not be uniform between different Awards or different types of Awards. In addition, in the event of such change described in this paragraph, the Committee may accelerate the time or
times at which any Award may be exercised, consistent with and as otherwise permitted under Section 409A of the Code, and may provide for cancellation of such accelerated Awards that are not exercised within a time prescribed by the Committee
in its sole discretion. 
 (c) Unless otherwise expressly provided in the Award Agreement or another contract, including an employment agreement, or under
the terms of a transaction constituting a Change in Control, the Committee may provide that any or all of the following shall occur upon a Participant’s Termination of Employment without Cause within twenty-four (24) months following a
Change in Control: (a) in the case of an Option or Stock Appreciation Right, the Participant shall have the ability to exercise any portion of the Option or Stock Appreciation Right not previously exercisable, (b) in the case of any Award
the vesting of which is in whole or in part subject to performance criteria or an Incentive Bonus, all conditions to the grant, issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award shall immediately
lapse and the Participant shall have the right to receive a payment based on performance through a date determined by the Committee, and (c) in the case of outstanding Restricted Stock and/or Restricted Stock Units (other than those referenced
in subsection (b)), all conditions to the grant, issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award shall immediately lapse. Notwithstanding anything herein to the contrary, in the event of a
Change in Control in which the acquiring or surviving company in the transaction does not assume or continue outstanding Awards upon the Change in Control, immediately prior to the Change in Control, all Awards that are not assumed or continued
shall be treated as follows effective immediately prior to the Change in Control: (a) in the case of an Option or Stock Appreciation Right, the Participant shall have the ability to exercise such Option or Stock Appreciation Right, including
any portion of the Option or Stock Appreciation Right not previously exercisable, (b) in the case of any Award the vesting of which is in whole or in part subject to performance criteria or an Incentive Bonus, all conditions to the grant,
issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award shall immediately lapse and the Participant shall have the right to receive a payment based on performance through a date determined by the
Committee, and (c) in the case of outstanding Restricted Stock and/or Restricted Stock Units (other than those referenced in subsection (b)), all conditions to the grant, issuance, retention, vesting or transferability of, or any other
restrictions applicable to, such Award shall immediately lapse. In no event shall any action be taken pursuant to this Section 15(c) that would change the payment or settlement date of an Award in a manner that would result in the imposition of
any additional taxes or penalties pursuant to Section 409A of the Code. 
 (d) Notwithstanding anything in this Section 15 to the contrary, in the
event of a Change in Control, the Committee may provide for the cancelation and cash settlement of all outstanding Awards upon such Change in Control. 

  
 14 

 (e) The Company shall notify Participants holding Awards subject to any adjustments pursuant to this
Section 15 of such adjustment, but (whether or not notice is given) such adjustment shall be effective and binding for all purposes of the Plan. 
 (f)
Notwithstanding anything in this Section 15 to the contrary, an adjustment to an Option or Stock Appreciation Right under this Section 15 shall be made in a manner that will not result in the grant of a new Option or Stock Appreciation
Right under Section 409A of the Code. 
  

	16.	Transferability 

 Each Award may not be sold, transferred for value, pledged, assigned, or otherwise
alienated or hypothecated by a Participant other than by will or the laws of descent and distribution, and each Option or Stock Appreciation Right shall be exercisable only by the Participant during his or her lifetime. Notwithstanding the
foregoing, outstanding Options may be exercised following the Participant’s death by the Participant’s beneficiaries or as permitted by the Committee. 
  

	17.	Compliance with Laws and Regulations 

 This Plan, the grant, issuance, vesting, exercise and settlement
of Awards thereunder, and the obligation of the Company to sell, issue or deliver shares of Common Stock under such Awards, shall be subject to all applicable foreign, federal, state and local laws, rules and regulations, stock exchange rules and
regulations, and to such approvals by any governmental or regulatory agency as may be required. The Company shall not be required to register in a Participant’s name or deliver Common Stock prior to the completion of any registration or
qualification of such shares under any foreign, federal, state or local law or any ruling or regulation of any government body which the Committee shall determine to be necessary or advisable. To the extent the Company is unable to or the Committee
deems it infeasible to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares of Common Stock hereunder, the Company and
its Subsidiaries shall be relieved of any liability with respect to the failure to issue or sell such shares of Common Stock as to which such requisite authority shall not have been obtained. No Option shall be exercisable and no Common Stock shall
be issued and/or transferable under any other Award unless a registration statement with respect to the Common Stock underlying such Option is effective and current or the Company has determined that such registration is unnecessary. 

In the event an Award is granted to or held by a Participant who is employed or providing services outside the United States, the Committee may, in its sole
discretion, modify the provisions of the Plan or of such Award as they pertain to such individual to comply with applicable foreign law or to recognize differences in local law, currency or tax policy. The Committee may also impose conditions on the
grant, issuance, exercise, vesting, settlement or retention of Awards in order to comply with such foreign law and/or to minimize the Company’s obligations with respect to tax equalization for Participants employed outside their home country.

  
 15 

	18.	Withholding 

 To the extent required by applicable federal, state, local or foreign law, the Committee
may and/or a Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise with respect to any Award, or the issuance or sale of any shares of Common Stock. The Company shall not
be required to recognize any Participant rights under an Award, to issue shares of Common Stock or to recognize the disposition of such shares of Common Stock until such obligations are satisfied. To the extent permitted or required by the
Committee, these obligations may or shall be satisfied by the Company withholding cash from any compensation otherwise payable to or for the benefit of a Participant, the Company withholding a portion of the shares of Common Stock that otherwise
would be issued to a Participant under such Award or any other award held by the Participant or by the Participant tendering to the Company cash or, if allowed by the Committee, shares of Common Stock. 

 

	19.	Amendment of the Plan or Awards 

 The Board may amend, alter or discontinue this Plan and the Committee
may amend, or alter any agreement or other document evidencing an Award made under this Plan but, except as provided pursuant to the provisions of Section 15, no such amendment shall, without the approval of the stockholders of the Company:

 (a) increase the maximum number of shares of Common Stock for which Awards may be granted under this Plan; 

(b) reduce the price at which Options may be granted below the price provided for in Section 8(a); 

(c) reprice outstanding Options or SARs as described in 8(b) and 9(b); 

(d) extend the term of this Plan; 
 (e) change the class of
persons eligible to be Participants; 
 (f) increase the individual maximum limits in Section 5(c); or 

(g) otherwise amend the Plan in any manner requiring stockholder approval by law or the rules of any stock exchange or market or quotation system on which the
Common Stock is traded, listed or quoted. 
 No amendment or alteration to the Plan or an Award or Award Agreement shall be made which would impair the
rights of the holder of an Award, without such holder’s consent, provided that no such consent shall be required if the Committee determines in its sole discretion and prior to the date of any Change in Control that such amendment or alteration
either (i) is required or advisable in order for the Company, the Plan or the Award to satisfy any law or regulation or to meet the requirements of or avoid adverse financial accounting consequences under any accounting standard, or
(ii) is not reasonably likely to significantly diminish the benefits provided under such Award, or that any such diminishment has been adequately compensated. 

  
 16 

	20.	No Liability of Company 

 The Company, any Subsidiary or Affiliate which is in existence or hereafter
comes into existence, the Board and the Committee shall not be liable to a Participant or any other person as to: (a) the non-issuance or sale of shares of Common Stock as to which the Company has been unable to obtain from any regulatory body
having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares of Common Stock hereunder; and (b) any tax consequence expected, but not realized, by any Participant or other
person due to the receipt, exercise or settlement of any Award granted hereunder. 
  

	21.	Non-Exclusivity of Plan 

 Neither the adoption of this Plan by the Board nor the submission of this Plan
to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable, including without limitation, the
granting of Restricted Stock or stock options otherwise than under this Plan or an arrangement not intended to qualify under Code Section 162(m), and such arrangements may be either generally applicable or applicable only in specific cases.

  

	22.	Governing Law 

 This Plan and any agreements or other documents hereunder shall be interpreted and
construed in accordance with the laws of the State of Delaware and applicable federal law. Any reference in this Plan or in the agreement or other document evidencing any Awards to a provision of law or to a rule or regulation shall be deemed to
include any successor law, rule or regulation of similar effect or applicability. 
  

	23.	No Right to Employment, Reelection or Continued Service 

 Nothing in this Plan or an Award Agreement
shall interfere with or limit in any way the right of the Company, its Subsidiaries and/or its Affiliates to terminate any Participant’s employment, service on the Board or service for the Company at any time or for any reason not prohibited by
law, nor shall this Plan or an Award itself confer upon any Participant any right to continue his or her employment or service for any specified period of time. Neither an Award nor any benefits arising under this Plan shall constitute an employment
contract with the Company, any Subsidiary and/or its Affiliates. Subject to Sections 4 and 19, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Board without giving rise to any
liability on the part of the Company, its Subsidiaries and/or its Affiliates. 
  

	24.	Specified Employee Delay 

 To the extent any payment under this Plan is considered deferred compensation
subject to the restrictions contained in Section 409A of the Code, such payment may not be made to a specified employee (as determined in accordance with a uniform policy adopted by the Company with respect to all arrangements subject to
Section 409A of the Code) upon Separation from Service before the date that is six months after the specified employee’s 

  
 17 

 
Separation form Service (or, if earlier, the specified employee’s death). Any payment that would otherwise be made during this period of delay shall be accumulated and paid on the sixth
month plus one day following the specified employee’s Separation from Service (or, if earlier, as soon as administratively practicable after the specified employee’s death). 

 

	25.	No Liability of Committee Members 

 No member of the Committee shall be personally liable by reason of
any contract or other instrument executed by such member or on his behalf in his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the Committee
and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability
(including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or willful bad faith; provided, however, that approval of the Board shall be
required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company’s Articles of Incorporation or By-laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

	26.	Severability 

 If any provision of the Plan or any Award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable
laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder
of the Plan and any such Award shall remain in full force and effect. 
  

	27.	Unfunded Plan 

 The Plan is intended to be an unfunded plan. Participants are and shall at all times be
general creditors of the Company with respect to their Awards. If the Committee or the Company chooses to set aside funds in a trust or otherwise for the payment of Awards under the Plan, such funds shall at all times be subject to the claims of the
creditors of the Company in the event of its bankruptcy or insolvency. 

  
 18EX-10.20

 Exhibit 10.20 

EXECUTION COPY 
 AMENDED AND
RESTATED 
 PERSONAL LINES 

STOCK AND ASSET PURCHASE AGREEMENT 

BETWEEN 
 ACP RE, LTD 

AND 
 NATIONAL GENERAL HOLDINGS
CORP. 
 EFFECTIVE AS OF JANUARY 3, 2014 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE I
	 	 DEFINITIONS
	  	 	2	  
			
	 Section 1.1
	 	 Definitions
	  	 	2	  
			
	 ARTICLE II
	 	 PURCHASE OF THE SHARES AND ASSETS
	  	 	8	  
			
	 Section 2.1
	 	 Purchase and Sale
	  	 	8	  
			
	 Section 2.2
	 	 Closing
	  	 	8	  
			
	 Section 2.3
	 	 Payment of Purchase Price and Delivery of Shares and Purchased Assets
	  	 	9	  
			
	 Section 2.4
	 	 Seller’s Transaction Closing Date Deliveries
	  	 	9	  
			
	 Section 2.5
	 	 Buyer’s Transaction Closing Date Deliveries
	  	 	9	  
			
	 Section 2.6
	 	 Estimated Closing Balance Sheet; Final Closing Balance Sheet
	  	 	9	  
			
	 Section 2.7
	 	 Adjustment to Purchase Price
	  	 	12	  
			
	 Section 2.8
	 	 Payment and Interest
	  	 	12	  
			
	 ARTICLE III
	 	 REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	12	  
			
	 Section 3.1
	 	 Organization, Standing and Corporate Power
	  	 	12	  
			
	 Section 3.2
	 	 Capital Structure; Certain Indebtedness
	  	 	12	  
			
	 Section 3.3
	 	 Authority
	  	 	13	  
			
	 Section 3.4
	 	 Noncontravention; Consents
	  	 	13	  
			
	 Section 3.5
	 	 Brokers
	  	 	14	  
			
	 Section 3.6
	 	 Litigation
	  	 	14	  
			
	 Section 3.7
	 	 No Other Representations and Warranties
	  	 	14	  
			
	 Section 3.8
	 	 Merger Agreement Representations, Warranties and Covenants
	  	 	14	  
			
	 ARTICLE IV
	 	 REPRESENTATIONS AND WARRANTIES OF BUYER
	  	 	15	  
			
	 Section 4.1
	 	 Organization, Standing and Corporate Power
	  	 	15	  
			
	 Section 4.2
	 	 Authority
	  	 	15	  
			
	 Section 4.3
	 	 Noncontravention; Consents
	  	 	15	  
			
	 Section 4.4
	 	 Purchase Not for Distribution
	  	 	16	  
			
	 Section 4.5
	 	 Litigation
	  	 	16	  
			
	 Section 4.6
	 	 Brokers
	  	 	16	  
			
	 ARTICLE V
	 	 COVENANTS
	  	 	16	  
			
	 Section 5.1
	 	 Commercially Reasonable Efforts
	  	 	16	  

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 5.2
	 	 Consents, Approvals and Filings
	  	 	16	  
			
	 Section 5.3
	 	 Public Announcements
	  	 	17	  
			
	 Section 5.4
	 	 Further Assurances
	  	 	17	  
			
	 Section 5.5
	 	 Notice of Events
	  	 	17	  
			
	 Section 5.6
	 	 Merger Agreement
	  	 	18	  
			
	 Section 5.7
	 	 Transition Services
	  	 	18	  
			
	 Section 5.8
	 	 Option to Acquire Assets
	  	 	19	  
			
	 Section 5.9
	 	 Option to Acquire Surplus Notes
	  	 	19	  
			
	 ARTICLE VI
	 	 EMPLOYEE MATTERS
	  	 	20	  
			
	 Section 6.1
	 	 Transferred Employees
	  	 	20	  
			
	 Section 6.2
	 	 No Third Party Beneficiary Rights
	  	 	20	  
			
	 ARTICLE VII
	 	 CONDITIONS PRECEDENT
	  	 	21	  
			
	 Section 7.1
	 	 Conditions to Each Party’s Obligations
	  	 	21	  
			
	 Section 7.2
	 	 Conditions to Obligations of Buyer
	  	 	21	  
			
	 Section 7.3
	 	 Conditions to Obligations of Seller
	  	 	22	  
			
	 Section 7.4
	 	 Frustration of Closing Conditions
	  	 	22	  
			
	 ARTICLE VIII
	 	 INDEMNIFICATION
	  	 	23	  
			
	 Section 8.1
	 	 Obligation to Indemnify
	  	 	23	  
			
	 Section 8.2
	 	 Indemnification Procedures
	  	 	23	  
			
	 Section 8.3
	 	 Tax Treatment; Tax Indemnification
	  	 	25	  
			
	 ARTICLE IX
	 	 TERMINATION PRIOR TO CLOSING
	  	 	25	  
			
	 Section 9.1
	 	 Termination of Agreement
	  	 	25	  
			
	 Section 9.2
	 	 Effect of Termination
	  	 	25	  
			
	 ARTICLE X
	 	 GENERAL PROVISIONS
	  	 	26	  
			
	 Section 10.1
	 	 No Survival of Representations, Warranties, Covenants and Agreements
	  	 	26	  
			
	 Section 10.2
	 	 Fees and Expenses
	  	 	26	  
			
	 Section 10.3
	 	 Notices
	  	 	26	  
			
	 Section 10.4
	 	 Interpretation
	  	 	27	  

  
 -ii- 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	 Section 10.5
	 	 Entire Agreement; Third-Party Beneficiaries
	  	 	28	  
			
	 Section 10.6
	 	 Governing Law
	  	 	28	  
			
	 Section 10.7
	 	 Assignment
	  	 	28	  
			
	 Section 10.8
	 	 Dispute Resolution; Enforcement
	  	 	28	  
			
	 Section 10.9
	 	 WAIVER OF JURY TRIAL
	  	 	29	  
			
	 Section 10.10
	 	 Severability; Amendment and Waiver
	  	 	29	  
			
	 Section 10.11
	 	 Counterparts
	  	 	29	  
			
	 Section 10.12
	 	 Commercially Reasonable Efforts
	  	 	29	  
			
	 Section 10.13
	 	 Specific Enforcement
	  	 	30	  

  
 -iii- 

			
	EXHIBITS	  	
		
	Exhibit A	  	List of Companies
	Exhibit B	  	Personal Lines Bill of Sale and General Assignment and Assumption Agreement
	Exhibit C	  	Personal Lines Reinsurance Agreement
	Exhibit D	  	Loss Portfolio Transfer Agreement
	
	DISCLOSURE SCHEDULE
		
	 Section
	  	 Description

		
	Section 3.2	  	Capital Structure; Certain Indebtedness
	Section 3.4	  	Noncontravention; Consents
	Section 4.3	  	Noncontravention; Consents
	Section 7.1(d)	  	Consents

 AMENDED AND RESTATED 

PERSONAL LINES 
 STOCK
AND ASSET PURCHASE AGREEMENT 
 This AMENDED AND RESTATED PERSONAL LINES STOCK AND ASSET PURCHASE AGREEMENT, dated as of
January 27, 2014 and effective as of January 3, 2014 (this “Agreement”), among ACP Re, Ltd (“Seller”), a Bermuda corporation, and National General Holdings Corp. (“Buyer”), a Delaware
corporation amends and restates in its entirety the Personal Lines Stock and Asset Purchase Agreement among the parties hereto dated as of January 3, 2014. 

WHEREAS, Seller, Buyer and AmTrust Financial Services, Inc., a Delaware corporation (“AmTrust”) are jointly entering into a
series of related agreements for the purpose of acquiring Tower Group International, Ltd. (“Tower”), a Bermuda insurance holding company which transacts commercial and personal lines insurance business in the United States through
fifteen (15) insurance company Subsidiaries, including the Companies which are the subject of this Agreement; 
 WHEREAS, pursuant to
their joint acquisition of Tower, Buyer is acquiring Tower’s Personal Lines Business, AmTrust is acquiring Tower’s Commercial Lines Business and Seller is acquiring the run-off of Tower’s pre-Cut-Through Business through this
Agreement, the Merger Agreement and Commercial Lines Purchase Agreement, each as described herein, which, in order to effectuate the joint acquisition of Tower, are conditioned on the execution, delivery and closing of each other agreement; 

WHEREAS, Seller, pursuant to that certain Merger Agreement among Seller, Merger Sub and Tower dated as of this date (the “Merger
Agreement”) is acquiring Tower and its Subsidiaries, including, indirectly, all of the issued and outstanding shares of capital stock or other equity interests of the companies as set forth on Exhibit A (the
“Companies”), through the merger of Merger Sub with and into Tower with Tower surviving such merger (the “Merger”) and Buyer and AmTrust are acquiring, respectively, the Personal Lines Business and Commercial Lines
Business of Tower and its Affiliates through this Agreement and the related Commercial Lines Purchase Agreement; 
 WHEREAS, following the
consummation of the Merger, certain of the Tower insurance Subsidiaries acquired by Seller will transfer to Seller (i) surplus notes of Mountain Valley Indemnity Company, an insurance company organized under the laws of New Hampshire
(“Mountain Valley”), in the aggregate principal amount of $70.7 million (the “Adirondack Surplus Note”) and (ii) surplus notes of NJ Skyland Insurance Company, an insurance company organized under the laws of
New Jersey (“NJ Skyland”), in the aggregate principal amount of $31.25 million (the “NJ Skyland Surplus Note”, together with the Adirondack Surplus Note, collectively, the “Surplus Notes” and,
individually, a “Surplus Note”); 
 WHEREAS, Adirondack AIF LLC, a New York limited liability company
(“AAIF”), is the Insurance Manager of Adirondack Insurance Exchange and Mountain Valley pursuant to an Insurance Management Service Agreement between AAIF and such exchange (as amended, the

 
“Adirondack Management Service Agreement”), and New Jersey Skylands Management, LLC, a Delaware limited liability company (“NJSM,” together with AAIF, the
“AIFs”), is the Insurance Manager of NJ Skyland Insurance Company, an insurance company organized under the laws of New Jersey (“NJSIC”), pursuant to an Insurance Management Service Agreement dated July 15,
2002 between NJSM and NJSIC (as amended, the “NJ Skylands Management Service Agreement,” together with the Adirondack Management Service Agreement, collectively, the “Management Service Agreements” and,
individually, a “Management Service Agreement”); 
 WHEREAS, in accordance with Buyer’s, Seller’s and
AmTrust’s joint acquisition of Tower, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller or its applicable Subsidiary, the Shares and the Purchased Assets pursuant to the Personal Lines Bill of Sale and General
Assignment and Assumption Agreement, on the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the
mutual representations, warranties, covenants and agreements contained in this Agreement, and of the mutual benefits to be derived from this Agreement, the parties agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.1 Definitions. For purposes of this Agreement, the following terms shall have the respective meanings
set forth below: 
 “AAIF” has the meaning set forth in the Recitals. 

“AIFs” has the meaning set forth in the Recitals. 

“Adirondack Management Service Agreement” has the meaning set forth in the Recitals. 

“Adirondack Surplus Note” has the meaning set forth in the Recitals. 

“Affiliate” of any Person means another Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with, such first Person. For purposes of this definition, “control” (including its correlative meanings “controlled by” and “under common control
with”) shall mean possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership or securities or partnership or other ownership interests, by contract or otherwise). 

“Aggregate Surplus” means the total aggregate Surplus of the Companies on the Transaction Closing Date. 

“Agreement” has the meaning set forth in the introductory paragraph of this Agreement. 

  
 2 

 “AmTrust” has the meaning set forth in the Recitals. 

“Applicable Law” means any domestic or foreign federal, state or local statute, law, ordinance or code, or any
written rules, regulations or administrative interpretations issued by any Governmental Entity pursuant to any of the foregoing, and any order, writ, injunction, directive, judgment or decree of a court of competent jurisdiction applicable to the
parties hereto. 
 “Applicable Rate” means the prime rate of interest reported from time to time in The Wall
Street Journal. 
 “Personal Lines Bill of Sale and General Assignment and Assumption Agreement” means the
Personal Lines Bill of Sale and General Assignment and Assumption Agreement dated as of the Transaction Closing Date among the Seller, Affiliates of Tower acquired by Seller and the Buyer in the form annexed as Exhibit B. 

“Books and Records” means all customer lists, policy information, contracts, administrative manuals, sales
records, underwriting records, financial records, compliance records prepared for or filed with regulators of Tower or its Affiliates, tax records and all other documents and information related to the operation of the Personal Lines Business, each
in the possession or control of the Seller or its Affiliates, whether or not stored in hardcopy form or on electronic, magnetic or optical media (to the extent not subject to licensing restrictions). Books and Records shall not include Seller’s
organizational documents, minute books, stock ledgers, tax returns (including working papers with respect to the Seller). 

“Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions in New
York are required or authorized by law or executive order to be closed. 
 “Buyer” has the meaning set forth
in the introductory paragraph of this Agreement. 
 “Buyer Transition Service” has the meaning set forth in
Section 5.7(b). 
 “Commercial Lines Business” has the meaning set forth in the Commercial Lines
Purchase Agreement. 
 “Commercial Lines Companies” means the Subsidiaries of Tower acquired by AmTrust
pursuant to the Commercial Lines Purchase Agreement. 
 “Commercial Lines Cut-Through QSA” means that
certain Commercial Lines Cut-Through Quota Share Reinsurance Agreement dated as of the date hereof among Technology Insurance Company, Inc. and certain Tower Affiliates, whereby Technology Insurance Company, Inc. is reinsuring certain commercial
lines new policies relating to the Commercial Lines Business. 

  
 3 

 “Commercial Lines Purchase Agreement” means that certain
Commercial Lines Stock Purchase Agreement dated of even date herewith by and between ACP Re and AmTrust, whereby AmTrust is purchasing all of the capital stock of certain Subsidiaries of Tower and the renewal rights and certain other assets related
to the Commercial Lines Business of the Companies. 
 “Company” or “Companies” has the
meaning set forth in the Recitals. 
 “Company Material Adverse Effect” means any Material Adverse Effect
(as defined in the Merger Agreement). 
 “Cut-Through Business” means the Commercial Lines Business and
Personal Lines Business reinsured by, respectively, Affiliates of Buyer and Affiliates of AmTrust pursuant to the Commercial Lines Cut-Through QSA and Personal Lines Cut-Through QSA between Tower and Affiliates of Seller and Tower and Affiliates of
AmTrust. 
 “Disclosure Schedule” means the Disclosure Schedule delivered in connection with, and
constituting a part of, this Agreement. 
 “Effective Time” has the meaning set forth in Section 2.2.

 “Estimated Closing Balance Sheet” has the meaning set forth in Section 2.6(a). 

“Estimated Purchase Price” shall mean the estimated Aggregate Surplus as of the Transaction Closing Date. 

“Final Closing Balance Sheet” has the meaning set forth in Section 2.6(c). 

“Governmental Entity” has the meaning set forth in Section 3.4. 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and
regulations promulgated thereunder. 
 “Indemnified Party” has the meaning set forth in Section 8.2(a).

 “Indemnifying Party” has the meaning set forth in Section 8.2(a). 

“Insurance Regulators” means all Governmental Entities regulating the business of insurance under Applicable
Laws. 
 “Liens” has the meaning set forth in Section 3.2. 

“Losses” means any and all liabilities, claims, obligations, losses, costs, disbursements, penalties, fines,
expenses (including reasonable attorneys’, accountants’ and other out-of-pocket professional fees and expenses incurred in the investigation, collection, prosecution or defense or any claims, whether or not involving any third party) and
damages, but excluding lost profits or any punitive, exemplary, consequential 

  
 4 

 
or similar damages (other than lost profits or any punitive, exemplary, consequential or similar damages actually paid to a third party in a Third Party Claim). 

“LPT Agreement” means that certain Loss Portfolio Transfer Agreement dated as of the Transaction Closing Date
between CastlePoint Reinsurance Company, Ltd. Or Tower Reinsurance, Ltd., as agreed to by the parties, and Affiliates of Tower in the form of Exhibit D attached hereto whereby CastlePoint Reinsurance Company, Ltd. or Tower Reinsurance, Ltd.
will reinsure the loss reserves of the Companies as of the Transaction Closing Date, but not unearned premium reserves of the of the Companies. 

“Management Service Agreements” has the meaning set forth in the Recitals. 

“Merger Agreement” has the meaning set forth in the Recitals. 

“Merger Sub” means the subsidiary of ACP Re that will merge with Tower pursuant to the Merger Agreement. 

“Mountain Valley” has the meaning set forth in the Recitals. 

“NJ Skyland” has the meaning set forth in the Recitals. 

“NJ Skyland Surplus Note” has the meaning set forth in the Recitals. 

“NJ Skylands Management Service Agreement” has the meaning set forth in the Recitals. 

“NJSIC” has the meaning set forth in the Recitals. 

“NJSM” has the meaning set forth in the Recitals. 

“Note Purchase Price” has the meaning set forth in Section 5.9. 

“Outside Accountants” has the meaning set forth in Section 2.6(d)(i). 

“Parent Material Adverse Effect” means any Parent Material Adverse Effect (as defined in the Merger
Agreement). 
 “Permitted Liens” means (a) Liens for Taxes or assessments and similar charges, which
either are (i) not delinquent or (ii) being contested in good faith and by any appropriate action or proceeding, and adequate reserves (as determined in accordance with SAP) have been established on the Seller’s books with respect
thereto, (b) Liens to secure, landlords, sublandlords, licensors, sublicensors or licensees under real estate leases, licenses or other rental or lease agreements, (c) deposits or pledges made in connection with, or to secure payment of,
utilities or similar services, workers’ compensation, unemployment insurance, pension or other social security, governmental insurance and governmental benefits mandated under Applicable Laws, or to secure the performance of tenders, statutory
obligations, surety and appeal bonds, bids, leases, government contracts, performance and return of money bonds and similar obligations, 

  
 5 

 
(d) mechanics’, materialmen’s or contractors’ Liens or any similar statutory Lien for amounts not yet due and payable and incurred in the ordinary course of business,
(e) zoning, entitlement, building and other similar restrictions which are not violated by the current conduct of the Personal Lines Business, (f) purchase money Liens in any property acquired by the Companies in the ordinary course of
business and (g) easements, covenants, rights of way or other encumbrances or restrictions, if any, that do not impair the use of the assets to which they relate. 

“Person” means an individual, corporation, partnership (limited or general), joint venture, limited liability
company, association, trust, unincorporated organization or other entity. 
 “Personal Lines Business” means
all insurance contracts, policies, certificates, binders, slips, covers or other agreements of insurance, including all supplements, riders, endorsements, renewals and extensions for personal automobile liability and personal physical damage,
homeowners, personal excess and personal umbrella coverage issued by the Companies. 
 “Personal Lines Cut-Through
QSA” means that certain Personal Lines Cut-Through Quota Share Reinsurance Agreement dated as of the date hereof among Integon National Insurance Company and certain Tower Affiliates, whereby Integon National Insurance Company is reinsuring
certain personal lines new policies relating to the Personal Lines Business. 
 “Personal Lines Reinsurance
Agreement” means that certain Personal Lines Quota Share Reinsurance Agreement dated as of the Transaction Closing Date among Integon National Insurance Company and the Commercial Lines Companies in the form of Exhibit C attached
hereto. 
 “Pre-Closing Month End” means the last day of the last full month ending prior to the Transaction
Closing Date. 
 “Post-Closing Purchased Assets” has the meaning set forth in Section 5.8 

“Preliminary Closing Balance Sheet” has the meaning set forth in Section 2.6(b). 

“Purchased Assets” means the Renewal Rights and assets listed on Exhibit A to the Personal Lines Bill of Sale
and General Assignment and Assumption Agreement. 
 “Purchase Price” has the meaning set forth in
Section 2.1. 
 “Purchase Price Calculations” has the meaning set forth in Section 2.6(b). 

“Regulatory Approvals” means all approvals, consents and authorizations of the transactions contemplated by
this Agreement required under applicable state insurance or insurance holding company laws, including without limitation all approvals, consents and authorizations required by the New York Department of Financial Services, the New Hampshire
Department of Insurance, the Massachusetts Division of Insurance, the New 

  
 6 

 
Jersey Department of Banking and Insurance, the Maine Bureau of Insurance and any other state insurance regulator whose approval is required to consummate any of the transactions contemplated by
this Agreement. 
 “Renewal Rights” means the right from and after the Transaction Closing to renew or
replace all insurance contracts issued by Tower or its Affiliates (other than the Companies) as part of the Personal Lines Business prior to the Closing Date, including all of (i) Tower or its Affiliates’ (other than the Companies) right
to produce such insurance contracts with respect to policyholders, if any, (ii) the expiration data relating to such insurance contracts, (iii) all Books and Records pertaining to such insurance contracts and policyholders, (iv) the
policyholder and producer lists owned or used by Tower or the Affiliates of Tower (other than the Companies) in the conduct of the Personal Lines Business, and (v) the relationships that Tower or the Affiliates of Tower (other than the
Companies) enjoy with each of the producers. For the avoidance of doubt, the Buyer acknowledges and agrees that the Seller does not have the power or ability to require any policyholder or producer to write or renew any policies following the
Transaction Closing Date, upon expiration or otherwise. 
 “SAP” means, with respect to any Company or
Subsidiary, the applicable statutory accounting principles (or local equivalents in the applicable jurisdiction) prescribed by the applicable Insurance Regulator under Applicable Law. 

“Securities Act” has the meaning set forth in Section 4.4. 

“Seller” has the meaning set forth in the introductory paragraph of this Agreement. 

“Seller Transition Service” has the meaning set forth in Section 5.7(a). 

“Shares” means the outstanding shares of capital stock or other outstanding equity interests of the Companies.

 “Subsidiary” of any Person means another Person 50% or more of the total combined voting power of all
classes of capital stock or other voting interests of which, or 50% or more of the equity securities of which, is owned directly or indirectly by such first Person. 

“Surplus” means as of any date the surplus of each of the Companies determined in accordance with SAP (in the
manner reflected in line 36 of the “Liabilities, Surplus and Other Funds” page of each of the Companies’ unaudited statutory Quarterly Statement); provided that the Surplus as of the Closing Date shall be determined after giving
effect to the transactions contemplated by the LPT Agreement and the final determination of the loss reserves transferred thereunder. 

“Surplus Notes” has the meaning set forth in the Recitals. 

“Taxes” means all federal, state, local and foreign taxes of any kind, including those on or measured by or
referred to as income, gross receipts, sales, use, ad valorem, 

  
 7 

 
franchise, profits, value added, property or windfall profits taxes, or similar fees, assessments or charges of any kind whatsoever (whether payable directly or by withholding and whether or not
requiring the filing of a tax return), together with any interest and any penalties, additions to tax or additional amounts imposed thereon by any Taxing Authority, domestic or foreign. 

“Taxing Authority” means any Governmental Entity or other Person responsible for and having jurisdiction over,
the administration of Taxes. 
 “Third Party Claim” has the meaning set forth in Section 8.2(a). 

“Tower” has the meaning set forth in the Recitals. 

“Transaction Closing” has the meaning set forth in Section 2.2. 

“Transaction Closing Date” has the meaning set forth in Section 2.2. 

“Transaction Documents” means this Agreement, the Personal Lines Bill of Sale and General Assignment and
Assumption Agreement, the LPT Agreement and the Personal Lines Reinsurance Agreement. 
 “Transition Services
Agreement” has the meaning set forth in Section 5.7(c) . 
 “Unresolved Changes” has the
meaning set forth in Section 2.6(d)(i). 
 “Wire Transfer” means a payment in immediately available
funds by wire transfer in lawful money of the United States of America to such account or accounts as shall have been designated by notice to the paying party. 

ARTICLE II 
 PURCHASE OF
THE SHARES AND ASSETS 
 Section 2.1 Purchase and Sale. Upon the terms and subject to the conditions of this
Agreement, at the Transaction Closing, Seller shall cause all its applicable Subsidiaries directly owning the Shares to sell all of the Shares to Buyer and all its applicable Subsidiaries directly owning the Purchased Assets to sell, transfer,
assign, convey and deliver to Buyer the Purchased Assets, and Buyer shall purchase all of the Shares and Purchased Assets from Seller or such Subsidiaries, free and clear of all Liens, except for Permitted Liens only with respect to the Purchased
Assets, for an amount (the “Purchase Price”) equal to (a) the Aggregate Surplus, plus (b) $7,500,000. The Aggregate Surplus portion of the Purchase Price shall be allocated among the Shares pro rata based upon the Surplus
of the respective Company and $7,500,000 shall be allocated to the AIFs. 
 Section 2.2 Closing. Unless this Agreement
shall have been terminated pursuant to Section 9.1, and subject to the satisfaction or waiver of each of the conditions set forth in Article VII, the closing of the purchase and sale of the Shares and Purchased Assets (the “Transaction
Closing”) shall take place at 10:00 a.m. on the “Closing Date” (as defined in the Merger 

  
 8 

 
Agreement), at the same location as the “Closing” (as defined in the Merger Agreement). The effective date and time of the Transaction Closing are herein referred to as the
“Transaction Closing Date.” All of the contemplated transactions under this Agreement shall be deemed to be consummated as of 11:59:59 p.m. Eastern Time on the Transaction Closing Date (the “Effective Time”) and all
actions taken at Transaction Closing shall be deemed to have occurred simultaneously and shall be deemed effective as of the dates and times specified in this Agreement. 

Section 2.3 Payment of Purchase Price and Delivery of Shares and Purchased Assets. At the Transaction Closing: 

(a) Buyer shall pay to Seller the Estimated Purchase Price by Wire Transfer; and 

(b) Seller shall cause its Subsidiaries directly owning the Shares to deliver to Buyer the Shares, duly endorsed in blank or with stock
powers or other proper instruments of assignment duly endorsed in blank, in proper form for transfer, with all appropriate stock transfer tax stamps affixed. 

Section 2.4 Seller’s Transaction Closing Date Deliveries. Subject to fulfillment or waiver (where permissible) of the
conditions set forth in Article VII, at the Transaction Closing, Seller shall deliver to Buyer all of the following: 
 (a) FIRPTA
Certificate. Unless the Seller is a foreign person, a certification from Seller and signed by a responsible officer of Seller, as contemplated under Section 1.1445-2(b)(2) of the Treasury Regulations, certifying that Seller is not a foreign
person. 
 (b) Stock Certificates. The stock certificates representing the Shares, accompanied by stock powers duly executed in
blank, or other proper instruments of assignment duly endorsed in blank, by Seller’s Subsidiaries directly owning such Shares in respect of the Shares of each Company. 

(c) Transaction Documents. A copy of each Transaction Document (other than this Agreement) executed by Seller and any of its
Affiliates prior to giving effect to this Agreement and the Commercial Lines Purchase Agreement. 
 Section 2.5 Buyer’s
Transaction Closing Date Deliveries. Subject to fulfillment or waiver (where permissible) of the conditions set forth in Article VII, at the Transaction Closing, Buyer shall deliver to Seller all of the following: 

(a) Transaction Documents. A copy of each Transaction Document (other than this Agreement) executed by Buyer. 

(b) Purchase Price. Payment by Wire Transfer for the of the Estimated Purchase Price. 

Section 2.6 Estimated Closing Balance Sheet; Final Closing Balance Sheet. 

  
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 (a) At least five (5) Business Days prior to the Transaction Closing Date, Seller shall
deliver to Buyer a pro forma balance sheet of the Companies as of the Pre-Closing Month End determined on a combined basis in accordance with SAP that shall include a calculation of the Estimated Purchase Price (the “Estimated Closing
Balance Sheet”). 
 (b) Not later than ninety (90) days after the Transaction Closing Date, Buyer shall cause the combined
balance sheet of the Companies to be prepared as of the close of business on the Transaction Closing Date in accordance with SAP, and shall deliver such balance sheet to Seller (the “Preliminary Closing Balance Sheet”), which
balance sheet shall include Buyer’s calculation of the Aggregate Surplus as of the Transaction Closing Date (the “Purchase Price Calculations”). 

(c) If, within sixty (60) days following its receipt of the Preliminary Closing Balance Sheet, Seller does not dispute the Preliminary
Closing Balance Sheet or the Purchase Price Calculations, the Preliminary Closing Balance Sheet shall be deemed to be the combined balance sheet of the Companies as of the close of business on the Transaction Closing Date (the “Final Closing
Balance Sheet”) and the final Purchase Price shall equal the Aggregate Surplus set forth in the Purchase Price Calculations. 

(d) In the event Seller has any dispute with regard to the Preliminary Closing Balance Sheet or the Purchase Price Calculations, such dispute
shall be resolved in the manner described in this Section 2.6. Seller shall notify Buyer in writing of such dispute within sixty (60) days after Seller’s receipt of the Preliminary Closing Balance Sheet, which notice shall specify in
reasonable detail the nature of the dispute. 
  

	 	(i)	During the forty-five (45) day period following Buyer’s receipt of such notice, Buyer and Seller shall attempt to resolve such dispute and to determine the final calculation of the Purchase Price.

  

	 	(ii)	 If, at the end of the forty-five (45) day period specified in subsection (d)(i) above, Buyer and Seller shall have failed to reach a written
agreement with respect to all or a portion of such dispute (those items that remain in dispute at the end of such period referred to as the “Unresolved Changes”), the matter shall be referred to a nationally recognized accounting
firm (the “Outside Accountants”) jointly selected by Seller and Buyer for review and resolution of any and all matters (but only such matters) which remain in dispute. Buyer and Seller shall instruct their respective accountants to
select the Outside Accountants in good faith within ten (10) days. If Buyer’s and Seller’s accountants shall not have agreed upon the Outside Accountants within such ten (10) day period, within an additional five (5) days,
they shall each designate an Outside Accountant who has not performed work in the last two (2) years for either Seller or Buyer and with experience in the property and casualty insurance business and the Outside Accountants shall be selected by
lot from those two accounting firms. If only one of Seller’s or Buyer’s accountants shall so 

  
 10 

	 	
designate a name of an accounting firm for selection by lot, such accounting firm so designated shall be the Outside Accountants. 

 

	 	(iii)	Each party hereto agrees to execute, if requested by the Outside Accountants, a reasonable engagement letter. All fees and expenses relating to the work, if any, to be performed by the Outside Accountants shall be borne
pro rata by Seller and Buyer in inverse proportion to the allocation of the dollar amount of the Unresolved Changes, in the aggregate, between Buyer and Seller made by the Outside Accountants such that the party with whom the Outside
Accountants agree more closely pays a lesser proportion of the fees and expenses. The Outside Accountants shall act as an arbitrator to determine, based solely on the provisions of this Agreement and the presentations by Seller and Buyer, or
representatives thereof, and not by independent review, only the resolution of the Unresolved Changes. The Outside Accountants’ resolution of the Unresolved Changes, which for each of the Unresolved Changes shall be within the range of values
of the amount claimed by either party as to any of the Unresolved Changes, shall be made within sixty (60) days of the submission of the Unresolved Changes to the Outside Accountants and shall be set forth in a written statement delivered to
Seller and Buyer and shall be deemed to be mutually agreed upon by Buyer and Seller for all purposes of this Agreement. Any changes to the Preliminary Closing Balance Sheet resulting from such resolution of the Unresolved Changes shall be made, and
such Preliminary Closing Balance Sheet, as so changed, shall be the Final Closing Balance Sheet and the final Purchase Price as of the close of business on the Transaction Closing Date shall be the Aggregate Surplus recalculated to reflect the Final
Closing Balance Sheet. 

 (e) At all times prior to the determination of the Final Closing Balance Sheet, the final Purchase
Price, Buyer shall, and shall cause the Companies to, cooperate fully with Seller and Seller’s authorized representatives, including providing, on a timely basis, all information necessary or useful in reviewing the Preliminary Closing Balance
Sheet, and require Company employees who remain employees of the Companies following the Transaction Closing Date to assist Seller and Seller’s authorized representatives in the review of the Preliminary Closing Balance Sheet and the Purchase
Price Calculations. 
 (f) Notwithstanding anything to the contrary contained herein: 

 

	 	(i)	The accounting principles for determining (A) the Preliminary Closing Balance Sheet and the Final Closing Balance Sheet, or (B) the Purchase Price Calculations, shall be the same SAP principles applied in such
Companies’ past practices; and 

  
 11 

	 	(ii)	In the event the Transaction Closing Date shall not be the end of a fiscal quarter end, the reserves of each Company as of the Transaction Closing Date reflected in the Final Closing Balance Sheet shall be calculated
and determined using the reserving practices and procedures applicable to the preparation of the balance sheet of such Company as of such fiscal quarter end. 

Section 2.7 Adjustment to Purchase Price. If, the Estimated Purchase Price shall exceed the final Purchase Price determined
pursuant to Section 2.6, the Seller shall pay to Buyer, as an adjustment to the Purchase Price, in a manner and with interest as provided in Section 2.8, the amount of such excess. If, the Estimated Purchase Price is less than the final
Purchase Price determined pursuant to Section 2.6, Buyer shall pay to Seller, as an adjustment to the Purchase Price, in a manner and with interest as provided in Section 2.8, the amount of such deficiency. 

Section 2.8 Payment and Interest. 

(a) Any payment pursuant to Section 2.7 shall be made by the party obligated to make such payment within five (5) Business Days
after the Purchase Price has been finally determined, by wire transfer to the party entitled to receive such payment of immediately available funds to an account designated by such recipient. 

(b) The amount of any payment pursuant to Section 2.7 shall bear interest from and including the Transaction Closing Date but excluding
the date of payment at the Applicable Rate. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

OF SELLER 
 Subject to the
exceptions and qualifications set forth in the Disclosure Schedule, Seller represents and warrants to Buyer as follows: 

Section 3.1 Organization, Standing and Corporate Power. The Seller is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction in which it is organized and has the requisite corporate power and authority to carry on its business as now being conducted. 

Section 3.2 Capital Structure; Certain Indebtedness. Section 3.2 of the Disclosure Schedule sets forth, as of the date
of this Agreement, the name and jurisdiction of organization of each the Companies. Except as set forth in Section 3.2 of the Disclosure Schedule, all of the issued and outstanding shares of capital stock of, or other equity or voting interests
in, each of the Companies (except for directors’ qualifying shares) are owned directly or indirectly, beneficially and of record, by Seller free and clear of all pledges, restrictions, claims, liens, charges, encumbrances and security interests
of any kind (collectively, “Liens”) and material transfer restrictions, except for such Liens and transfer restrictions of general applicability as may be created under the Securities Act or other securities Applicable Laws. Each issued
and outstanding share of capital stock of each of the Companies is duly authorized, validly issued, 

  
 12 

 
fully paid, nonassessable and free of preemptive rights, and there are no subscriptions, options, warrants, rights, calls, contracts or other commitments, understandings, restrictions or
arrangements relating to the issuance, acquisition, redemption, repurchase or sale of any shares of capital stock or other equity or voting interests of any of the Companies, including any right of conversion or exchange under any outstanding
security, instrument or agreement, any agreements granting any preemptive rights, subscription rights, anti-dilutive rights, rights of first refusal or similar rights with respect to any securities of any of the Companies. None of the Companies has
any outstanding equity compensation or similar plans relating to the capital stock of, or other equity or voting interests in, any of the Companies. Neither the Seller nor any of the Companies has any obligation to make any payments based on the
price or value of any securities of any of the Companies or dividends paid thereon. 
 Section 3.3 Authority. Seller has
the requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Seller and the consummation by Seller of the transactions
contemplated hereby have been duly authorized by all necessary corporate action on the part of Seller and no other corporate action or proceeding on the part of Seller or any Affiliate of Seller is necessary (including any shareholder vote). This
Agreement has been duly executed and delivered by Seller and, assuming this Agreement constitutes the valid, legal and binding agreement of Buyer, constitutes a valid, legal and binding obligation of Seller, enforceable against Seller in accordance
with its terms, except that (i) such enforcement may be subject to applicable bankruptcy, insolvency or other similar laws, now or hereafter in effect, affecting creditors’ rights generally and (ii) the remedy of specific performance
and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. 

Section 3.4 Noncontravention; Consents. Neither the execution and delivery of this Agreement by Seller, nor the
consummation by Seller of the transactions contemplated by this Agreement, nor performance or compliance by Seller with any of the terms or provisions hereof, will (i) conflict with or violate any provision of the certificate or articles of
incorporation, code of regulations, by-laws or other comparable charter or organizational documents of Seller or (ii) assuming (A) that the actions described in Section 4.02(a) of the Merger Agreement have been completed,
(B) that the authorizations, consents and approvals referred to in this Section 3.4 are obtained and (C) that the filings referred to in this Section 3.4 are made and any waiting periods thereunder have terminated or expired, in
the case of each of clauses (A) through (C), prior to the Effective Time, (x) conflict with, contravene or violate any Law, judgment, writ or injunction of any Governmental Entity applicable to Seller or the Companies or (y) conflict
with, contravene or violate or constitute a default or breach under any of the terms, conditions or provisions of any Contract to which Seller or any of the Companies is a party or accelerate Seller’s or any of the Companies’, if
applicable, obligations under any such Contract, except, in the case of clause (ii), as would not reasonably be expected to have a Parent Material Adverse Effect. Except for (a) compliance with the applicable requirements of the Exchange Act,
(b) compliance with the rules and regulations of the NASDAQ Stock Market, (c) the filing of appropriate documents with the relevant authorities of other jurisdictions in which any of the Companies is qualified to do business,
(d) filings required under, and compliance with other applicable requirements of, the HSR Act, and such other consents, approvals, filings, authorizations, declarations or registrations as are required to be made or obtained under any non-U.S.
Antitrust Laws, in each case as set 

  
 13 

 
forth in Section 3.4 of the Disclosure Schedule, (e) compliance with any applicable state securities or blue sky laws and (f) the Regulatory Approvals as set forth in
Section 3.4 of the Disclosure Schedule, no consent or approval of, action by or in respect of, or filing, license, permit or authorization, declaration or registration with, any court or governmental or regulatory authority or agency, domestic
or foreign (a “Governmental Entity”), the performance by the Company of its obligations hereunder and the consummation by the Company of the transactions contemplated hereunder, other than such other consents, approvals, filings,
licenses, permits or authorizations, declarations or registrations that, if not obtained, made or given, would not reasonably be expected to have a Material Adverse Effect. 

Section 3.5 Brokers. No broker, investment banker, financial advisor or other Person is entitled to any broker’s,
finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller or the Companies. 

Section 3.6 Litigation. There is no suit, action, proceeding or arbitration pending or threatened, to the knowledge of
Seller, in writing against or affecting Seller or any Affiliate of Seller that (i) seeks to restrain or enjoin the consummation of any of the transactions contemplated by this Agreement or (ii) would reasonably be expected to impair the
ability of Seller to consummate any of the transactions contemplated by this Agreement. 
 Section 3.7 No Other
Representations and Warranties. Except for the representations and warranties contained in this Article III (including the related portions of the Disclosure Schedules), none of Seller or any other Person has made or makes any other express or
implied representation or warranty, either written or oral, on behalf of Seller, including any representation or warranty as to the accuracy or completeness of any information regarding the Companies furnished or made available to Buyer and its
representatives. 
 Section 3.8 Merger Agreement Representations, Warranties and Covenants. 

(a) To Seller’s knowledge, the representations and warranties set forth in the Merger Agreement are true and correct as of the date
hereof and shall be true and correct as of the Closing Date (as defined in the Merger Agreement). For the avoidance of doubt, all qualifiers as to materiality, material adverse effect and all other qualifiers contained in such representations and
warranties in the Merger Agreement shall be given effect in the determination of the accuracy of such representations and warranties pursuant to this Section 3.8(a). 

(b) To Seller’s knowledge, there has been (i) no breach by Tower of any of its representations and warranties set forth in the
Merger Agreement; (ii) no material failure on Tower’s part to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it under the Merger Agreement; or (iii) the occurrence or non-occurrence of
any event or the existence of any fact or condition that would cause or constitute a breach of any of Tower’s representations or warranties under the Merger Agreement, which in any case or in the aggregate would reasonably be expected to cause
any condition to the consummation of the Merger to fail to be satisfied. 

  
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 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF BUYER 

Subject to the exceptions and qualifications set forth in the Disclosure Schedule, Buyer represents and warrants to Seller as follows: 

Section 4.1 Organization, Standing and Corporate Power. Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction in which it is organized and has the requisite corporate power and authority to carry on its business as now being conducted. 

Section 4.2 Authority. Buyer has the requisite corporate power and authority to enter into this Agreement and to consummate
the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Buyer and the consummation by Buyer of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action on
the part of Buyer. No action by the stockholders of Buyer is necessary to authorize the execution and delivery by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated hereby. This Agreement has been duly executed
and delivered by Buyer and, assuming this Agreement constitutes the valid, legal and binding agreement of Seller, constitutes a valid, legal and binding obligation of Buyer, enforceable against Buyer in accordance with its terms except that
(i) such enforcement may be subject to applicable bankruptcy, insolvency or other similar laws, now or hereafter in effect, affecting creditors’ rights generally and (ii) the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. 

Section 4.3 Noncontravention; Consents. The execution and delivery of this Agreement do not, and except as disclosed in
Section 4.3 of the Disclosure Schedule, the consummation of the transactions contemplated by this Agreement will not, (i) conflict with, be prohibited by, or require any approval that has not already been obtained under, any of the
provisions of the certificate of incorporation or the by-laws of Buyer or the comparable organizational documents of any of its Subsidiaries, (ii) subject to the matters referred to in the next sentence, conflict with, result in a breach of or
default (with or without notice or lapse of time, or both) under, be prohibited by, require approval or consent under, give rise to a right of termination under, or result in the creation of any Lien (other than a Permitted Lien) on any property or
asset of Buyer or any of its Affiliates under, any agreement, permit, franchise, license or instrument to which Buyer or any of its Subsidiaries is a party or (iii) subject to the matters referred to in the next sentence, contravene, be
prohibited by, or require approval or consent under, any Applicable Law, judgment, injunction or award applicable to Buyer or any of its Subsidiaries, which, in the case of clauses (ii) and (iii) above, would materially impair the ability
of Buyer to consummate any of the transactions contemplated hereby. No consent, approval or authorization of, or declaration or filing with, or notice to, any Governmental Entity is required by or with respect to Buyer or any of its Subsidiaries in
connection with the execution and delivery of this Agreement by Buyer or the consummation by Buyer of any of the transactions contemplated hereby, except for (i) if required, the filing of pre-merger notification and report forms under the HSR
Act, (ii) the approvals, filings and notices required under the insurance 

  
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laws of the jurisdictions set forth in Section 4.3 of the Disclosure Schedule, (iii) such other consents, approvals, authorizations, declarations, filings or notices as are set forth in
Section 4.3 of the Disclosure Schedule and (iv) such other consents, approvals, authorizations, declarations, filings or notices that are not required to be set forth pursuant to clauses (ii) and (iii) the failure to obtain or
make which, in the aggregate, would not materially impair the ability of Buyer to consummate any of the transactions contemplated hereby. 

Section 4.4 Purchase Not for Distribution. The Shares to be acquired under the terms of this Agreement will be acquired by
Buyer for its own account and not with a view to distribution. Buyer is an “accredited investor” as defined in Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended (the
“Securities Act”). Buyer acknowledges that it is informed as to the risks of the transactions contemplated hereby and of ownership of the Shares. Buyer acknowledges that the Shares have not been registered under the Securities Act
or any state or foreign securities laws and that the Shares may not be sold, transferred, offered for sale, assigned, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition
is pursuant to the terms of an effective registration statement under the Securities Act and the Shares are registered under any applicable state or foreign securities laws or sold pursuant to an exemption from registration under the Securities Act
and any applicable state or foreign securities laws. 
 Section 4.5 Litigation. There is no suit, action, proceeding or
arbitration pending or threatened in writing against or affecting Buyer or any Affiliate of Buyer that (i) seeks to restrain or enjoin the consummation of any of the transactions contemplated by this Agreement or (ii) would reasonably be
expected to impair the ability of Buyer to consummate any of the transactions contemplated by this Agreement. 
 Section 4.6
Brokers. No broker, investment banker, financial advisor or other person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of Buyer or any Affiliate. 
 ARTICLE V 

COVENANTS 

Section 5.1 Commercially Reasonable Efforts. Upon the terms and subject to the conditions and other agreements set forth in
this Agreement, each of the parties agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary,
proper or advisable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement. 

Section 5.2 Consents, Approvals and Filings. Seller and Buyer shall each use their commercially reasonable efforts, and
shall cooperate fully with each other (i) to comply as promptly as practicable with all governmental requirements applicable to the transactions contemplated by this Agreement and (ii) to obtain as promptly as practicable all necessary

  
 16 

 
permits, orders or other consents, approvals or authorizations of Governmental Entities and consents or waivers of all third parties necessary in connection with the consummation of the
transactions contemplated by this Agreement. In connection therewith, Seller and Buyer shall make and cause their respective Affiliates to make all legally required filings as promptly as practicable in order to facilitate prompt consummation of the
transactions contemplated by this Agreement, and shall provide and shall cause their respective Affiliates to provide such information and communications to Governmental Entities as such Governmental Entities may request. The parties hereto shall
not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of all necessary permits, orders or other consents, approvals or authorizations of Governmental Entities and consents or waivers of all third
parties necessary in connection with the consummation of the transactions contemplated by this Agreement. 
 Section 5.3
Public Announcements. Until the Transaction Closing Date, the parties hereto shall consult with each other before issuing, and give each other the opportunity to review and comment upon, any press release or other public statements with
respect to the transactions contemplated hereunder, and shall not issue any such press release or make any such public statement prior to such consultation and joint approval of Buyer and Seller, except as may be required by Applicable Law, court
process or the rules and regulations of any national securities exchange or national securities quotation system provided that, to the extent possible under the circumstances, the party making such disclosure consults with the other party, and
considers in good faith the views of the other party, before doing so. 
 Section 5.4 Further Assurances. Seller and
Buyer agree, and Seller, prior to the Transaction Closing, and Buyer, after the Transaction Closing, agree to cause the Companies and each of their Subsidiaries, to execute and deliver such other documents, certificates, agreements and other
writings and to take such other actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement. 

Section 5.5 Notice of Events. 

(a) Buyer shall promptly notify Seller, and Seller shall promptly notify Buyer, in writing, upon (1) becoming aware of any order or
decree or any complaint praying for an order or decree restraining or enjoining the execution of this Agreement or the consummation of the transactions contemplated by this Agreement, or (2) receiving any notice from any Governmental Entity of
its intention to (i) institute a suit or proceeding to restrain or enjoin the execution of this Agreement or the consummation of the transactions contemplated by this Agreement or (ii) nullify or render ineffective this Agreement or such
transactions if consummated. 
 (b) During the period from the date hereof to the Transaction Closing Date or the earlier termination of
this Agreement, Buyer shall promptly notify the Seller in writing if Buyer becomes aware of: (i) the occurrence or non-occurrence of any event or the existence of any fact or condition that would cause or constitute a breach of any of its
representations or warranties had any such representation or warranty been made as of the time of the Buyer’s discovery of such event, fact or condition; (ii) any material failure on its part or the Seller’s or

  
 17 

 
the Companies’ part to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; or (iii) the occurrence or non-occurrence of any
event or the existence of any fact or condition that would cause or constitute a breach of any of Seller’s representations or warranties hereunder. 

(c) During the period from the date hereof to the Transaction Closing Date or the earlier termination of this Agreement, Seller shall
promptly notify the Buyer in writing if Seller becomes aware of: (i) the occurrence or non-occurrence of any event or the existence of any fact or condition that would cause or constitute a breach of any of its representations or warranties had
any such representation or warranty been made as of the time of the Seller’s discovery of such event, fact or condition; (ii) any material failure on its part or the Buyer’s part to comply with or satisfy any covenant, condition or
agreement to be complied with or satisfied by it hereunder; or (iii) the occurrence or non-occurrence of any event or the existence of any fact or condition that would cause or constitute a breach of any of Buyer’s representations or
warranties hereunder. 
 Section 5.6 Merger Agreement. During the period from the date hereof to the Transaction Closing
Date or the earlier termination of this Agreement, Seller shall promptly notify the Buyer in writing if Seller becomes aware of: (i) the occurrence or non-occurrence of any event or the existence of any fact or condition that would cause or
constitute a material breach of any of Tower’s representations or warranties set forth in the Merger Agreement had any such representation or warranty been made as of the time of the Seller’s discovery of such event, fact or condition;
(ii) any material failure on Tower’s part to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it under the Merger Agreement; or (iii) the occurrence or non-occurrence of any event or the
existence of any fact or condition that would cause or constitute a material breach of any of Tower’s representations or warranties under the Merger Agreement. Seller hereby agrees that without Buyer’s written consent that it shall not
waive: (i) any material breach by Tower of any of its representation or warranty set forth in the Merger Agreement; or (ii) any material failure by Tower to comply with any covenants or conditions to closing contained in the Merger
Agreement. 
 Section 5.7 Transition Services. 

(a) From and after the Transaction Closing until the Transition Services Agreement shall be executed, Seller or its Affiliates shall provide
to Buyer and the Companies all usual and customary services and customarily prepared data and information relating to the Personal Lines Business that is reasonably necessary to renew and replace the insurance contracts (the “Seller
Transition Service”) at no cost to Buyer; provided that Buyer shall reimburse Seller for its reasonable out-of-pocket costs and expenses in providing the Seller Transition Services paid to Persons not affiliated with Seller who customarily
provided such services relating to renewal or replacement of insurance contracts and provided further that Seller and its Affiliates shall not be obligated to provide Seller Transition Services to the extent Seller and its Affiliates are unable to
provide such services, data or information because Buyer has employed the Transferred Employees or acquired the assets necessary to provide same. 

(b) From and after the Transaction Closing until the Transition Services Agreement shall be executed, Buyer and the Companies shall provide
to the Commercial Lines 

  
 18 

 
Companies any usual and customary services and customarily prepared data and information relating to the Commercial Lines Business that is reasonably necessary to renew and replace the insurance
contracts under the Commercial Lines Business (the “Buyer Transition Service”) at no cost to the Commercial Lines Companies to the extent Seller and its Affiliates are unable to provide such services, data or information because
Buyer has employed the Transferred Employees or acquired the assets necessary to provide same. In consideration of the provision of the Buyer Transition Services, the Commercial Lines Companies shall reimburse Buyer and the Companies for their
reasonable out-of-pocket costs and expenses in providing the Buyer Transition Services paid to Persons not affiliated with Buyer who customarily provided such services relating to renewal or replacement of insurance contracts relating to the
Commercial Lines Business. 
 (c) Seller and Buyer shall negotiate with AmTrust in good faith a Transition Services Agreement to take
effect following the Transaction Closing Date that among other matters will provide for (i) any Seller Transition Services, Buyer Transition Services or any other services provided by AmTrust or the Commercial Lines Companies to Seller, its
Affiliates, the Buyer or the Companies with respect to the renewal or replacement of insurance contracts relating to the Commercial Lines Business or Personal Lines Business and (ii) any services to be provided by AmTrust, the Commercial Lines
Companies, Seller, its Affiliates, the Buyer or the Companies that relate to the administration of business in-force as of the Transaction Closing Date (the “Transition Services Agreement”). 

Section 5.8 Option to Acquire Assets. By written notice delivered to the Seller and AmTrust within ninety (90) days
following the Transaction Closing Date, the Buyer may elect to acquire any assets acquired in the Merger of the Seller or the Affiliates of Tower that are reasonably required to conduct the Personal Lines Business not included among the Companies
that have not previously been transferred to AmTrust or the Commercial Lines Companies (the “Post-Closing Purchased Assets”) for no additional consideration. If within ten (10) days following AmTrust’s and Seller’s
receipt of such notice, neither AmTrust or Seller has objected to the acquisition of all or any of such Post-Closing Purchased Assets, Seller shall transfer the Post-Closing Purchased Assets as to which no objection shall have been made to Buyer. If
AmTrust or Seller provides such written objection, Seller, AmTrust and Buyer shall negotiate in good faith to coordinate the transfer or retention of such Post-Closing Purchased Assets among themselves. If an agreement as to the transfer or
retention of any of such Post-Closing Purchased Assets is reached, Seller shall transfer such Post- Closing Purchased Assets in accordance with such agreement. If within thirty (30) days of the delivery of any such objection, Seller, AmTrust
and Buyer shall have failed to reach an agreement with respect to the transfer or retention of any of such Post-Closing Purchased Assets to which such objection is related, Seller, Buyer and AmTrust shall enter mediation. In the event pursuant to
such mediation the Seller, AmTrust and Buyer shall reach an agreement as the transfer or retention of such Post-Closing Purchased Assets, Seller shall transfer such Post- Closing Purchased Assets in accordance with such agreement. 

Section 5.9 Option to Acquire Surplus Notes. By written notice delivered to the Seller within one (1) year following
the Transaction Closing Date, the Buyer may elect to acquire the Surplus Notes from Seller for a purchase price equal to the admitted statutory surplus amount of the Surplus Notes, less accrued but unpaid interest (the “Note Purchase
Price”). The closing of 

  
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the purchase of the Surplus Notes shall occur within ninety (90) days following the delivery of such written notice or such earlier time as Seller and Buyer may agree. At such closing,
Seller shall sell the Surplus Notes free and clear of all Liens and, in consideration for the payment of the Note Purchase Price to the Seller in immediately available funds, shall deliver to the Buyer one or more original promissory notes
representing all of the Surplus Notes, duly endorsed in blank. 
 ARTICLE VI 

EMPLOYEE MATTERS 

Section 6.1 Transferred Employees. 

(a) From time to time on or after the Transaction Closing Date, upon ten (10) days written notice to Seller and AmTrust (a
“Transferred Employee Offer Notice”), subject to subsection (b) below, the Buyer may, or may cause an Affiliate to, offer employment to employees of Tower or its Affiliates that Buyer reasonably determines are necessary for the
Commercial Lines Business under terms and conditions satisfying the obligations of the Seller under the Merger Agreement with respect to such employees (the employees who accept such offer of employment shall be referred to as the “Transferred
Employees”). 
 (b) If within ten (10) days following a Transferred Employee Offer Notice, neither National General or Seller has
objected to the making of offers of employment to the employees indicated in such Transferred Employee Offer Notice, Buyer may make an offer of employment to such employees. If AmTrust or Seller provides such written objection, Seller, AmTrust and
Buyer shall negotiate in good faith to coordinate the employment or retention of such employees among themselves. If an agreement as to the employment or retention of such employees is reached, Buyer may make offers to such employees pursuant to
such agreement. If within thirty (30) days of the delivery of any such objection, Seller, AmTrust and Buyer shall have failed to reach an agreement with respect to the employment or retention of such employees, Seller, Buyer and AmTrust shall
enter mediation. In the event pursuant to such mediation the Seller, AmTrust and Buyer shall reach an agreement as the employment or retention of such employees, Buyer may make offers of employment to the employees designated in such agreement. 

Section 6.2 No Third Party Beneficiary Rights. Nothing contained in this Agreement shall confer upon any employee of Tower
or any of its Affiliates any right with respect to continued employment by Buyer or any of its Affiliates. No provision of this Agreement shall create any third-party rights in any such employee, or any beneficiary or dependent thereof, with respect
to the compensation, terms and conditions of employment and benefits that may be provided to such employee by Buyer or any of its Affiliates or under any benefit plan that Buyer or any of its Affiliates may maintain. 

  
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 ARTICLE VII 

CONDITIONS PRECEDENT 

Section 7.1 Conditions to Each Party’s Obligations. The respective obligations of each party to effect the purchase
and sale of the Shares and the other actions to be taken at the Transaction Closing are subject to the satisfaction or waiver on or prior to the Transaction Closing Date of the following conditions: 

(a) Governmental Consents. All filings required to be made prior to the Transaction Closing Date with, and all consents, approvals,
permits and authorizations required to be obtained prior thereto from, Governmental Entities in connection with the consummation of the transactions contemplated hereby by Seller and Buyer set forth in Section 3.4 and Section 4.3 of the
Disclosure Schedule shall have been made or obtained. 
 (b) HSR Act. If premerger notification and report forms are filed under the
HSR Act, the waiting period (and any extension thereof) applicable to the transactions contemplated hereby under the HSR Act shall have been terminated or shall have otherwise expired. 

(c) No Injunctions or Restraints. No temporary restraining order, preliminary or permanent injunction or other order issued by any
court of competent jurisdiction and no Applicable Law of any Governmental Entity preventing the consummation of the purchase and sale of the Shares or any of the other transactions contemplated hereby shall be in effect; provided,
however, that the party invoking this condition shall have used all reasonable efforts to have any such order or injunction vacated, and no Governmental Entity shall have instituted any proceeding that is pending seeking any such order,
preliminary or permanent injunction or other order to prohibit consummation of the purchase and sale of the Shares or any of the other transactions contemplated hereby. 

(d) Consents. All consents, waivers, clearances, approvals and authorizations from third parties under the contracts and agreements
set forth on Section 7.1(d) of the Disclosure Schedule as being required to be obtained prior to Transaction Closing shall have been retained. 

(e) Merger Agreement. The Closing (as defined in the Merger Agreement) of the Merger (as defined in the Merger Agreement) contemplated
by the Merger Agreement shall have occurred. 
 (f) LPT Agreement. The LPT Agreement shall have been entered into. 

(g) Personal Lines Acquisition. The transactions contemplated by the Personal Lines Purchase Agreement to be effected as of the
“Transaction Closing” (as defined in the Personal Lines Purchase Agreement) shall occur contemporaneous with the transactions contemplated herein. 

Section 7.2 Conditions to Obligations of Buyer. The obligations of Buyer to effect the purchase and sale of the Shares and
the other actions to be taken at the Transaction Closing are 

  
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further subject to the satisfaction or waiver by Buyer on or prior to the Transaction Closing Date of the following conditions: 

(a) Representations and Warranties. The representations and warranties of Seller in this Agreement shall be true and correct in all
material respects, in each case as of the date of this Agreement and as of the Transaction Closing Date as though made on and as of the Transaction Closing Date, (except as to any representation or warranty which specifically relates to another
date); provided that this condition shall be deemed to be satisfied unless any failure of any such representation or warranty to be true and correct has a Company Material Adverse Effect, either alone or when taken in the aggregate with other
breaches of any such representations and warranties. 
 (b) Performance of Obligations of Seller. Seller shall have performed in all
material respects all obligations required to be performed by it under this Agreement on or prior to the Transaction Closing Date. 
 (c)
Closing Deliveries. Seller shall have delivered to Buyer each of the items described in Section 2.4. 
 Section 7.3
Conditions to Obligations of Seller. The obligations of Seller to effect the purchase and sale of the Shares and the other actions to be taken at the Transaction Closing are further subject to the satisfaction or waiver by Seller on or prior
to the Transaction Closing Date of the following conditions: 
 (a) Representations and Warranties. The representations and
warranties of Buyer set forth in this Agreement shall be true and correct in all material respects, in each case as of the date of this Agreement and as of the Transaction Closing Date as though made on and as of the Transaction Closing Date (except
as to any representation or warranty which specifically relates to another date); provided that this condition shall be deemed to be satisfied unless any failure of any such representation or warranty to be true and correct has a material adverse
effect, either alone or when taken in the aggregate with other breaches of any such representations and warranties. 
 (b) Performance
of Obligations of Buyer. Buyer shall have performed in all material respects all obligations required to be performed by it under this Agreement on or prior to the Transaction Closing Date. 

(c) Consideration. Seller shall have received the Purchase Price as provided in Section 2.1. 

(d) Closing Deliveries. Buyer shall have delivered to Seller each of the items described in Section 2.5. 

Section 7.4 Frustration of Closing Conditions. No party to this Agreement may rely on the failure of any condition set
forth in this Article VII to be satisfied if such failure was caused by such party’s failure to use reasonable best efforts to cause the Transaction Closing to occur, as required by Section 5.1 hereof. 

  
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 ARTICLE VIII 

INDEMNIFICATION 

Section 8.1 Obligation to Indemnify. 

(a) Seller agrees to indemnify, defend and hold harmless Buyer and its Affiliates and their respective representatives from and against all
Losses to the extent arising from or related to (i) any material breach of any of the covenants and agreements of Seller, except any breach of or inaccuracy in any representation or warranty set forth in Article III, contained in this
Agreement, or (ii) any liability not reflected on the Final Closing Balance Sheet as determined in accordance with Section 2.6. 

(b) Buyer agrees to indemnify, defend and hold harmless Seller and its Affiliates and their respective representatives from and against all
Losses to the extent arising from or related to any breach of any of the covenants and agreements of Buyer, except any breach of or inaccuracy in any representation or warranty set forth in Article IV, contained in this Agreement. 

Section 8.2 Indemnification Procedures. 

(a) In order for a party (the “Indemnified Party”) to be entitled to any indemnification provided for under this Agreement
in respect of, arising out of or involving a claim or demand made by, or an action, proceeding or investigation instituted by, any Person not a party to this Agreement (a “Third Party Claim”), such Indemnified Party must notify the
other party (the “Indemnifying Party”) in writing, and in reasonable detail, of the Third Party Claim promptly, and in any event within thirty (30) days, after such Indemnified Party learns of the Third Party Claim; provided,
however, that any delay or failure to give such notification shall not affect the indemnification provided hereunder except and only to the extent that the Indemnifying Party forfeits rights or defenses as a result of such failure. Thereafter, the
Indemnified Party shall deliver to the Indemnifying Party, within ten (10) days after the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the Indemnified Party relating to the
Third Party Claim. 
 (b) If a Third Party Claim is made against an Indemnified Party, the Indemnifying Party will be entitled to
participate in the defense thereof and, if it so chooses, to assume the defense thereof at its own expense with counsel selected by the Indemnifying Party. Should the Indemnifying Party so elect to assume the defense of a Third Party Claim, the
Indemnifying Party will not as long as it conducts such defense be liable to the Indemnified Party for legal expenses subsequently incurred by the Indemnified Party in connection with the defense thereof, except as otherwise set forth herein. If the
Indemnifying Party assumes such defense, the Indemnified Party shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood
that the Indemnifying Party shall control such defense; provided, however, that if in the reasonable opinion of counsel to the Indemnified Party, (i) there are legal defenses available to an Indemnified Party that are different from or
additional to those available to the Indemnifying Party or (ii) there exists a conflict of interest between the Indemnifying Party and 

  
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the Indemnified Party, the Indemnifying Party shall be liable for the reasonable fees and expenses of one law firm to represent the Indemnified Party and, if applicable, local counsel in the
jurisdiction in which an action is held. The Indemnifying Party shall be liable for the fees and expenses of counsel employed by the Indemnified Party for any period during which the Indemnifying Party has not assumed the defense thereof. If the
Indemnifying Party chooses to defend or prosecute any Third Party Claim, all of the parties hereto shall cooperate in the defense or prosecution thereof in all reasonable respects. Such cooperation shall include the retention and (upon the
Indemnifying Party’s request) the provision to the Indemnifying Party of records and information which are relevant to such Third Party Claim (subject, in each case, to the Indemnifying Party entering into a confidentiality agreement with
respect to such records and information in a form reasonably acceptable to the Indemnified Party), and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. If
the Indemnifying Party shall have assumed the defense of a Third Party Claim, the Indemnified Party shall not admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnifying Party’s prior
written consent, which consent shall not be unreasonably withheld. The Indemnifying Party shall not settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any action giving rise to a Third Party Claim unless the
Indemnifying Party obtains the prior written consent of the Indemnified Party or such settlement, compromise, consent or termination (i) includes an express, unconditional release of such Indemnified Party in form and substance satisfactory to
such Indemnified Party from any and all liability relating to such action, (ii) does not include any statement as to or any admission of fault, culpability or failure to act by or on behalf of any Indemnified Party and (iii) does not
create any financial or other obligation on the part of the Indemnified Party. 
 (c) After the Transaction Closing, the indemnities
provided in Section 8.1 shall be the sole and exclusive remedy at law for any breach of covenant or agreement (other than those covenants and agreements which survive the Transaction Closing) or other claim arising out of this Agreement except
for claims based on actual fraud, criminal activity or willful misconduct. 
 (d) The amount of any Losses for which indemnification is
provided under this Agreement shall be (i) net of any amounts actually received by the Indemnified Party from insurers or other third parties with respect to such Losses (less any related costs and expenses, including the aggregate cost of
pursuing any insurance claims paid by the Indemnified Party, but not any premiums or charges paid by the Indemnified Party), (ii) net of any amounts taken into account as a reserve, accrual or expense in the calculation of Aggregate Surplus
with respect to the facts, circumstances or matters giving rise to such Losses, and (iii) reduced to take account of any Tax benefit realized by the Indemnified Party arising from the incurrence or payment of any such Losses. 

(e) Notwithstanding anything contained herein to the contrary, no Indemnifying Party shall be liable for lost profits or any punitive,
exemplary, consequential (but not incidental) or similar damages, except for lost profits or punitive, exemplary, consequential or similar damages actually paid to a third party in a Third Party Claim by an Indemnified Party. 

  
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 (f) In accordance with Applicable Law, the Indemnified Party shall take, and shall cause its
Affiliates to take, all commercially reasonable steps to mitigate any Losses upon and after becoming aware of any facts, matters, failures or circumstances that would reasonably be expected to result in any Losses that are indemnifiable hereunder.

 (g) In the event of payment by or on behalf of any Indemnifying Party to any Indemnified Party (including pursuant to this Article VIII)
in connection with any claim or demand by any Person other than the parties hereto or their respective Affiliates, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnified Party as to any events or
circumstances in respect of which such Indemnified Party may have any right, defense or claim relating to such claim or demand against any claimant or plaintiff asserting such claim or demand. Such Indemnified Party shall cooperate with such
Indemnifying Party in a reasonable manner, and at the cost of such Indemnifying Party, in presenting any subrogated right, defense or claim. 

Section 8.3 Tax Treatment; Tax Indemnification. Except to the extent otherwise required by Applicable Law, any indemnity
payment made pursuant to this Article VIII hereof will be treated as an adjustment to the Purchase Price for all Tax purposes. 
 ARTICLE
IX 
 TERMINATION PRIOR TO CLOSING 

Section 9.1 Termination of Agreement. This Agreement may be terminated at any time prior to the Transaction Closing: 

(a) by the written agreement of the Buyer and the Seller; 

(b) by either the Seller or the Buyer in writing, if there shall be any order, injunction or decree of any Governmental Entity which
prohibits or restrains any party from consummating the transactions contemplated hereby, and such order, injunction or decree shall have become final and nonappealable; 

(c) by either the Seller or the Buyer in writing, if a Governmental Entity shall have disapproved a Regulatory Approval; 

(d) unless the Seller or the Buyer otherwise agree in writing, upon the withdrawal of filings submitted in connection with any Regulatory
Approvals; or 
 (e) Automatically following the termination of the Merger Agreement. 

Section 9.2 Effect of Termination. In the event of termination pursuant to Section 9.1, this Agreement shall become
null and void and have no effect, (other than Section 5.3 (Public Announcements), this Section 9.2 and Article X (General Provisions), all of which shall survive termination of this Agreement), and there shall be no liability on the part
of Seller, the Companies or Buyer or their respective directors, officers and Affiliates, except (a) as liability may exist pursuant to the sections specified in the immediately preceding parenthetical that

  
 25 

 
survive such termination and (b) that no such termination shall relieve any party from liability for any willful and material breach by such party of any representation, warranty, covenant
or agreement set forth in this Agreement or fraud. For purposes hereof, “willful and material breach” means a material breach by a party of the applicable provision of this Agreement as a result of an action or failure to act by such
Person that it knew would result in a breach of this Agreement. 
 ARTICLE X 

GENERAL PROVISIONS 

Section 10.1 No Survival of Representations, Warranties, Covenants and Agreements. This Article X, Article VIII and the
agreements of the Seller and Buyer contained in Article II, Article V and Article VI shall survive the Effective Time. No other representations, warranties, covenants or agreements in this Agreement shall survive the Effective Time. 

Section 10.2 Fees and Expenses. Whether or not the purchase and sale of the Shares is consummated, each party hereto shall
pay its own fees and expenses incident to preparing for, entering into and carrying out this Agreement and the consummation of the transactions contemplated hereby. For the avoidance of doubt, Seller shall be solely responsible for the payment of
all of the transaction expenses incurred by or on behalf of Seller or the Companies incident to the transaction which is the subject of this Agreement, including investment banking fees, accounting fees and legal fees. 

Section 10.3 Notices. All notices, requests, claims, demands and other communications under this Agreement shall be in
writing and shall be deemed given if delivered personally, by facsimile (which is confirmed as provided below) or sent by overnight courier (providing proof of delivery) to the parties at the following addresses (or at such other address for a party
as shall be specified by like notice): 
 if to Buyer, to 

c/o National General Holdings Corp. 

59 Maiden Lane, 38th Floor 

New York, NY 10038 

(212) 380-9479 

Facsimile: (212) 380-9498 

Attention: Jeffrey Weissmann, Esq. 

  
 26 

 if to Seller, to 

c/o ACP Re, Ltd 

59 Maiden Lane, 38th Floor 

New York, NY 10038 

(212) 380-9479 

Facsimile: (212) 380-9498 

Attention: Jeffrey Weissmann, Esq. 

Notice given by personal delivery or overnight courier shall be effective upon actual receipt. Notice given by facsimile shall be confirmed by
appropriate answer back and shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next Business Day if not received during the recipient’s normal
business hours. All notices by facsimile shall be confirmed promptly after transmission in writing by personal delivery or overnight courier. 

Section 10.4 Interpretation. When a reference is made in this Agreement to a section, exhibit or schedule, such reference
shall be to a section of, or an exhibit or schedule to, this Agreement unless otherwise indicated. The inclusion of any information in the Disclosure Schedule will not be deemed an admission or acknowledgment, in and of itself and solely by virtue
of the inclusion of such information in the Disclosure Schedule, that such information is required to be listed in the Disclosure Schedule or that such items are material to the Companies. The specification of any dollar amount in the Disclosure
Schedule is not intended to imply that such amount, or higher or lower amounts is or is not material for purposes of this Agreement and no party shall use the fact of the setting forth of such amount in any dispute or controversy between the parties
as to whether any obligation, item or matter not described therein is or is not material for purposes of this Agreement. Unless the Agreement specifically provides otherwise, neither the specification of any item or matter in any representation or
warranty contained in this Agreement nor the inclusion of any specific item in the Disclosure Schedule is intended to imply that such item or matter, or other items or matters, are or are not in the ordinary course of business (except as expressly
provided herein), and no party shall use the fact of the setting forth or the inclusion of any such item or matter in any dispute or controversy among the parties as to whether any obligation, item or matter not described in this Agreement or
included in any Disclosure Schedule is or is not in the ordinary course of business for purposes of this Agreement (except as expressly provided herein). The disclosure of an item in one section of the Disclosure Schedule as an exception to a
particular covenant, representation or warranty will be deemed adequately disclosed as an exception with respect to all other covenants, representations or warranties to the extent that the relevance of such item to such other covenants,
representations or warranties is reasonably apparent on the face of such item, notwithstanding the presence or absence of an appropriate section of the Disclosure Schedule with respect to such other covenants, representations or warranties or an
appropriate cross-reference thereto. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words
“include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” Whenever the singular is used herein, the same shall include the plural,
and whenever the plural is used herein, the same shall include the singular, where appropriate. 

  
 27 

 Section 10.5 Entire Agreement; Third-Party Beneficiaries. This Agreement
(including all exhibits and schedules hereto) constitutes the entire agreement, and supersede all prior agreements, understandings, representations and warranties, both written and oral, among the parties with respect to the subject matter of this
Agreement. Buyer has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its purchase of the Shares and the other transactions contemplated hereby and is capable of bearing
the economic risks thereof. Except as expressly provided herein, this Agreement is not intended to confer upon any Person other than the parties hereto any rights or remedies. 

Section 10.6 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
New York applicable to contracts executed in and to be performed entirely within that State, regardless of the laws that might otherwise govern under any applicable conflict of laws principles, except to the extent the provisions of the laws of
Bermuda are mandatorily applicable to the Merger. 
 Section 10.7 Assignment. Neither this Agreement nor any of the
rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties, and any such assignment that is not
consented to shall be null and void. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

Section 10.8 Dispute Resolution; Enforcement. 

(a) In the event of any dispute arising under this Agreement, prior to the commencement of litigation, a senior officer of Buyer and a senior
officer of Seller shall attempt in good faith to resolve the dispute consistent with the terms of this Agreement. If they are unable to resolve the dispute in this manner within a reasonable period of time, the parties may pursue judicial remedies
with respect to such dispute. This section shall not apply to any application to obtain emergency judicial intervention. 
 (b) All actions
and proceedings arising out of or relating to the interpretation and enforcement of the provisions of this Agreement and in respect of the transactions contemplated by this Agreement (except to the extent any such proceeding mandatorily must be
brought in Bermuda) shall be heard and determined in the United States District Court for the Southern District of New York and any Federal appellate court therefrom (or, if United States federal jurisdiction is unavailable over a particular matter,
the Supreme Court of the State of New York, New York County) and the parties hereto hereby irrevocably submit to the exclusive jurisdiction and venue of such courts in any such action or proceeding and irrevocably waive the defense of an
inconvenient forum or lack of jurisdiction to the maintenance of any such action or proceeding. The consents to jurisdiction and venue set forth in this Section 10.8(b) shall not constitute general consents to service of process in the State of
New York and shall have no effect for any purpose except as provided in this paragraph and shall not be deemed to confer rights on any Person other than the parties hereto. Each party hereto agrees that service of process upon such party in any
action or proceeding arising out of or relating to this Agreement shall be effective if notice is given by overnight courier at the address set forth in Section 10.3 of this Agreement. The parties hereto agree that a final judgment in any such
action or proceeding 

  
 28 

 
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law; provided, that nothing in the foregoing shall
restrict any party’s rights to seek any post-judgment relief regarding, or any appeal from, a final trial court judgment. 

Section 10.9 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON, ARISING OUT OF, RELATED TO OR CONNECTED WITH THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 

Section 10.10 Severability; Amendment and Waiver. 

(a) Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and
valid under Applicable Law, but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any Applicable Law or rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion
of any provision had never been contained herein. 
 (b) This Agreement may be amended, and the terms hereof may be waived, only by a
written instrument signed by each of the parties or, in the case of a waiver, by the party waiving compliance. 
 (c) No delay on the part
of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege, nor any single or partial exercise of any such right, power or
privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege. 
 Section 10.11
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. 

Section 10.12 Commercially Reasonable Efforts. Buyer and Seller acknowledge and agree that any reference made to
commercially reasonable efforts in this Agreement shall not 

  
 29 

 
include any obligation to commence or continue any contested arbitration or litigation other than the filing of a proof of claim or similar filing requirement necessary to preserve a claim
against any insolvent or otherwise financially impaired debtor. 
 Section 10.13 Specific Enforcement. The parties hereto
agree that irreparable damage for which monetary relief, even if available, would not be an adequate remedy, would occur in the event that any provision of this Agreement is not performed in accordance with its specific terms or is otherwise
breached, including if the parties hereto fail to take any action required of them hereunder to consummate this Agreement. The parties acknowledge and agree that (a) the parties shall be entitled to an injunction or injunctions, specific
performance or other equitable relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in the courts described in Section 10.8(b) without proof of damages or otherwise, this being in addition to
any other remedy to which they are entitled under this Agreement and (b) the right of specific enforcement is an integral part of the transactions contemplated hereunder and without that right, neither Buyer nor Seller would have entered into
this Agreement. The parties hereto agree not to assert that a remedy of specific enforcement is unenforceable, invalid, contrary to Applicable Law or inequitable for any reason, and not to assert that a remedy of monetary damages would provide an
adequate remedy or that the parties otherwise have an adequate remedy at law. The parties hereto acknowledge and agree that any party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms
and provisions of this Agreement in accordance with this Section 10.13 shall not be required to provide any bond or other security in connection with any such order or injunction. 

[Signature Page Follows] 

  
 30 

 IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be signed by their respective
officers thereunto duly authorized, all as of the date first written above. 
  

					
	ACP RE, LTD
		
	By	 	 /s/ Mike Weiner

		 	Name:	 	 Mike Weiner

		 	Title:	 	 CFO

	
	NATIONAL GENERAL HOLDINGS CORP.
		
	By	 	 /s/ Jeffrey Weissmann

		 	Name:	 	 Jeffrey Weissmann

		 	Title:	 	 General Counsel

 Personal Lines SPA Signature Page 

 EXHIBIT A 

List of Companies 
 York Insurance Company
of Maine 
 Massachusetts Homeland Insurance Company 

Adirondack AIF LLC 
 New Jersey Skylands Management, LLC 

 EXHIBIT B 

Personal Lines Bill of Sale and General Assignment and Assumption Agreement 

 Execution Copy 

PERSONAL LINES BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT 

This PERSONAL LINES BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT is made and entered into as of
[            ], 2014, by and among ACP Re, Ltd., a Bermuda corporation (“ACP Re”), the Acquired Affiliates (as defined below), who are signatories hereto as Sellers
(collectively with ACP Re, the “Sellers” and each one, individually, a “Seller”) and National General Holdings Corporation, a Delaware corporation (the “Purchaser”). 

WITNESSETH: 

WHEREAS, ACP Re, the Purchaser and AmTrust Financial Services, Inc., a Delaware corporation (“AmTrust”), are jointly
entering into a series of related agreements for the purpose of acquiring Tower Group International, Ltd. (“Tower”), a Bermuda insurance holding company which transacts commercial and personal lines insurance business in the United
States through 15 insurance company Subsidiaries and other non-insurance company Subsidiaries (collectively the “Acquired Affiliates”), including the Subsidiaries of ACP Re that are parties hereto; 

WHEREAS, pursuant to that certain Personal Lines Stock and Asset Purchase Agreement, dated as of January [    ],
2014, by and between ACP Re and the Purchaser (the “Agreement”), Purchaser is acquiring the assets listed on Exhibit A attached hereto (the “Purchased Assets”); and 

WHEREAS, from and after the date hereof, Purchaser is assuming all liabilities and obligations described on Exhibit A (the
“Assumed Liabilities”). 
 NOW, THEREFORE, for good and valuable consideration paid by Purchaser to Sellers as of
the date of this Bill of Sale and Assignment and Assumption Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

Sellers by this Bill of Sale and Assignment and Assumption Agreement do hereby convey, grant, bargain, sell, transfer, set over, assign,
alienate, remise, release, deliver and confirm unto Purchaser, its successors and assigns, forever, all of Sellers’ right, title, interest in and to the Purchased Assets as of the close of business on the date hereof. 

TO HAVE AND TO HOLD all and singular the Purchased Assets unto Purchaser, its successors and assigns, to its and their own use and enjoyment forever.

 THE PARTIES FURTHER COVENANT AND AGREE AS FOLLOWS: 
  

	 	A.	For value received, Sellers hereby assign, and Purchaser hereby assumes and agrees to perform and discharge all rights under the Assumed Liabilities on and after the Transaction Closing Date (as defined in the
Agreement). 

	 	B.	This Bill of Sale and Assignment and Assumption Agreement shall not constitute an assignment in whole or in part of any Purchased Asset or Assumed Liability if an attempted assignment of such Purchased Asset or Assumed
Liability without the consent of any other party thereto or with an interest therein would constitute a breach thereof or in any way affect the rights of Sellers or Purchaser thereunder or be contrary to applicable law. If any such consent is not
obtained with respect to any such Purchased Asset or Assumed Liability, then the Sellers or Purchaser and their successors and assigns, as applicable, shall act as Purchaser’s agent or Sellers’ agent, as applicable, in order to obtain for
Purchaser or Sellers and their successors and assigns, as applicable, the benefits thereunder. 

  

	 	C.	This Bill of Sale and Assignment and Assumption Agreement is given pursuant to the provisions of the Agreement, and, except as herein otherwise provided, the transfer of the Purchased Assets hereunder is made subject to
the terms and provisions of the Agreement. 

  

	 	D.	This Bill of Sale and Assignment and Assumption Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall not be relied upon, or inure to the
benefit of, any other party. 

  

	 	E.	Any notice, request or other document to be given hereunder or in connection herewith to any party hereto shall be given in the manner described in the Agreement. 

 

	 	F.	This Bill of Sale and Assignment and Assumption Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 

[Signature Page Follows] 

  
 2 

 IN WITNESS WHEREOF, each of the parties by their respective duly authorized officers has
caused this Bill of Sale and Assignment and Assumption Agreement to be executed as of the date first above written. 
  

			
	NATIONAL GENERAL HOLDINGS CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Sellers:
	
	ACP RE, LTD.
		
	By:	 	  

		 	Name:
		 	Title:
	
	TOWER INSURANCE COMPANY OF NEW YORK
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CASTLE POINT NATIONAL INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	TOWER NATIONAL INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

 Signature Page to Bill of Sale and Assignment and Assumption Agreement 

 
			
	HERMITAGE INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CASTLE POINT FLORIDA INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	KODIAK INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	NORTH EAST INSURANCE COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

 Acknowledged and agreed to: 
  

			
	AMTRUST FINANCIAL SERVICES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Signature Page to Bill of
Sale and Assignment and Assumption Agreement 

 Exhibit A 

Purchased Assets and Assumed Liabilities 

Purchased Assets: 
 Renewal Rights (as defined in the
Agreement) 
 [List others] 
 Assumed Liabilities: 

[Describe any obligations under contracts being assigned to Purchaser] 

 EXHIBIT C 

Personal Lines Reinsurance Agreement 

 Execution Copy 

PERSONAL LINES 
 QUOTA
SHARE REINSURANCE AGREEMENT 
 BY AND BETWEEN 

TOWER INSURANCE COMPANY OF NEW YORK, 

CASTLE POINT NATIONAL INSURANCE COMPANY, 

TOWER NATIONAL INSURANCE COMPANY, 

HERMITAGE INSURANCE COMPANY, 

CASTLE POINT FLORIDA INSURANCE COMPANY, 

KODIAK INSURANCE COMPANY, 

NORTH EAST INSURANCE COMPANY, 

AND 
 INTEGON NATIONAL
INSURANCE COMPANY 

 TABLE OF CONTENTS 

 

							
	 Article 1 DEFINITIONS
	  	 	1	  
	 Section 1.1
	  	 Defined Terms
	  	 	1	  
		
	 Article 2 BASIS OF REINSURANCE AND BUSINESS REINSURED
	  	 	4	  
	 Section 2.1
	  	 Fronted Business
	  	 	4	  
		
	 Article 3 PAYMENTS, OFFSET, AND SECURITY
	  	 	5	  
	 Section 3.1
	  	 Premium
	  	 	5	  
	 Section 3.2
	  	 Offset Rights
	  	 	5	  
	 Section 3.3
	  	 Premiums for Fronted Policies
	  	 	6	  
	 Section 3.4
	  	 Reports and Remittances
	  	 	6	  
	 Section 3.5
	  	 Collection of Premiums
	  	 	7	  
	 Section 3.6
	  	 Collateral for Ceded Losses
	  	 	7	  
		
	 Article 4 CLAIMS, UNDERWRITING AND OTHER ADMINISTRATION
	  	 	7	  
		
	 Article 5 REGULATORY MATTERS
	  	 	9	  
		
	 Article 6 DUTY OF COOPERATION & INDEMNITY; REINSURANCE
	  	 	9	  
	 Section 6.1
	  	 Cooperation
	  	 	9	  
	 Section 6.2
	  	 Reinsurance
	  	 	9	  
		
	 Article 7 INSOLVENCY
	  	 	9	  
		
	 Article 8 REGULATORY APPROVALS
	  	 	10	  
		
	 Article 9 DURATION
	  	 	10	  
		
	 Article 10 FOLLOW THE FORTUNES
	  	 	10	  
		
	 Article 11 INDEMNIFICATION
	  	 	11	  
	 Section 11.1
	  	 Indemnification
	  	 	11	  
		
	 Article 12 MISCELLANEOUS
	  	 	11	  
	 Section 12.1
	  	 Notices
	  	 	11	  
	 Section 12.2
	  	 Assignment; Parties in Interest
	  	 	12	  
	 Section 12.3
	  	 Waivers and Amendments; Preservation of Remedies
	  	 	12	  
	 Section 12.4
	  	 Governing Law; Venue
	  	 	12	  
	 Section 12.5
	  	 Counterparts
	  	 	13	  
	 Section 12.6
	  	 Entire Agreement; Merger
	  	 	13	  
	 Section 12.7
	  	 Exhibits and Schedules
	  	 	13	  
	 Section 12.8
	  	 Headings
	  	 	13	  
	 Section 12.9
	  	 Severability
	  	 	13	  
	 Section 12.10
	  	 Expenses
	  	 	14	  
	 Section 12.11
	  	 Currency
	  	 	14	  

  
 i 

 PERSONAL LINES QUOTA SHARE REINSURANCE AGREEMENT 

THIS PERSONAL LINES QUOTA SHARE REINSURANCE AGREEMENT (this “Agreement”) is entered into as of
[            ], 2014 by and among TOWER INSURANCE COMPANY OF NEW YORK, an insurance company organized under the laws of New York, CASTLE POINT NATIONAL INSURANCE COMPANY, an insurance
company organized under the laws of Illinois, TOWER NATIONAL INSURANCE COMPANY, an insurance company organized under the laws of Massachusetts, HERMITAGE INSURANCE COMPANY, an insurance company organized under the laws of New York, CASTLE POINT
FLORIDA INSURANCE COMPANY, an insurance company organized under the laws of Florida, KODIAK INSURANCE COMPANY, an insurance company organized under the laws of New Jersey, NORTH EAST INSURANCE COMPANY, an insurance company organized under the laws
of Maine, (the “Companies” and, each a “Company”), and INTEGON NATIONAL INSURANCE COMPANY, an insurance company organized under the laws of North Carolina (the “Reinsurer”) (collectively, the
“Parties”). 
 WHEREAS, ACP Re. Ltd. (“ACP Re”), has entered into that certain Agreement and Plan
of Merger of even date herewith by and between Tower Group International, Ltd. (“Tower”), ACP Re and Merger Sub (the “Merger Agreement”) whereby Merger Sub is merging with and into Tower with Tower surviving such
merger (the “Merger”); 
 WHEREAS, (i) AmTrust Financial Services, Inc. (“AmTrust”) has
entered into that certain Stock Purchase Agreement dated January 3, 2013 by and between AmTrust and ACP Re (the “Commercial Lines SPA”), pursuant to which AmTrust is purchasing all of the capital stock of certain subsidiaries
of Tower (the “Purchased Commercial Lines Companies”) and renewal rights to all of Commercial Lines Business (as defined herein) of the Purchased Personal Lines Companies and (ii) National General Holdings Corporation
(“National General”) has entered into that certain Stock Purchase Agreement dated January 3, 2013 by and between ACP Re and National General (the “Personal Lines SPA”), whereby National General is purchasing
all of the capital stock of certain subsidiaries of Tower (the “Purchased Personal Lines Companies”) and the renewal rights to all of Personal Lines Business (as defined herein) of the Purchased Commercial Lines Companies; and 

WHEREAS, as more particularly set forth herein, the Companies and the Reinsurer wish to enter into a quota share arrangement pursuant
to which the Reinsurer will reinsure all Losses with respect to the Fronted Policies (as defined herein) written by the Companies in accordance with the terms hereof following the Effective Time. 

NOW, THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.1 Defined Terms. 

 The following terms shall have the respective meanings specified below throughout this
Agreement. 
 “ACP Re” has the meaning set forth in the Recitals. 

“Agreement” has the meaning set forth in the first paragraph. 

“Affiliate” (and, with a correlative meaning, “Affiliated”) means, with respect to any Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person. As used in this definition, “control” (including, with correlative meanings, “controlled
by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership
interests, by contract, as trustee or executor, or otherwise). 
 “Applicable Law” means any applicable order, law, statute,
regulation, rule, pronouncement, ordinance, bulletin, writ, injunction, directive, judgment, decree, principle of common law, constitution or treaty enacted, promulgated, issued, enforced or entered by any Governmental Authority applicable to the
parties hereto, or any of their respective businesses, properties or assets. 
 “Ceding Commission” means an amount equal to the
Fronting Acquisition Costs with respect to Fronted Policies, in each case subject to any applicable commission or brokerage adjustments, which adjustments shall be accounted for and settled up as between the Parties as part of the monthly reporting
pursuant to Section 3.4. 
 “Claim” and “Claims” means any and all claims, requests, demands or notices made by or
on behalf of Policyholders, beneficiaries or third party claimants for the payment of Losses and any other amounts due or alleged to be due under or in connection with the Fronted Policies. 

“Closing Date” means the date upon which the Merger is effected. 

“Commercial Lines Business” means all insurance contracts, policies, certificates, binders, slips, covers or other agreements of
insurance, including all supplements, riders, endorsements, renewals and extensions (other than Personal Lines Business) issued by a Company. 

“Commercial Lines SPA” has the meaning set forth the Recitals 

“Company(ies)” has the meaning set forth in the Recitals. 

“Damages” means all damages, losses, liabilities and expenses (including reasonable attorneys’ fees and reasonable expenses of
investigation in connection with any action, suit or proceeding). 
 “Effective Time” has the meaning set forth in the Merger
Agreement. 
 “Fronted Policies” has the meaning set forth in Section 2.1(a). 

  
 - 2 - 

 “Fronting Acquisition Costs” has the meaning set forth in Section 3.1. 

“Fronting Authority” means the authority conferred upon the Reinsurer and its designees under this Agreement to write Fronted
Policies. 
 “Fronting Period” has the meaning set forth in Section 2.1(a). 

“Governmental Authority” means any foreign, domestic, federal, territorial, state or local U.S. or non-U.S. governmental authority,
quasi-governmental authority, instrumentality, court or government, self-regulatory organization, commission, tribunal or organization or any political or other subdivision, department, branch or representative of any of the foregoing. 

“Insurance Contracts” means all insurance contracts, policies, certificates, binders, slips, covers or other agreements of
insurance, including all supplements, riders, endorsements, renewals and extensions as to the Personal Lines Business issued by the Companies or any Company on or after the Effective Time. 

“Losses” shall mean liabilities and obligations to make payments to Policyholders, beneficiaries and/or other third party claimants
under the Fronted Policies (including, without limitation, liabilities or assessments arising from a Company’s participation, if any, in any voluntary or involuntary pools, guaranty funds, or other types of government-sponsored or
government-organized insurance funds) and all loss adjustment expenses and defense costs, including, without limitation, (i) all expenses incurred by or on behalf of the a Company related to the investigation, appraisal, adjustment, litigation,
defense or appeal of claims under or covered by the Fronted Policies and/or coverage actions under or covered by the Fronted Policies, (ii) all liabilities for consequential, exemplary, punitive or similar extra contractual damages, or for
statutory or regulatory fines or penalties, or for any loss in excess of the limits arising under or covered by any Fronted Policy, and (iii) court costs accrued prior to final judgment, prejudgment interest or delayed damages and interest
accrued after final judgment. Notwithstanding the foregoing, “Losses” shall not include any liabilities or obligations incurred by or on behalf of a Company as a result of any willful, fraudulent and/or criminal act by a Company or any of
its Affiliates or any of their respective officers, directors, employees or agents following the Effective Time. 
 “Merger” has
the meaning set forth in the Recitals. 
 “Merger Agreement” has the meaning set forth in the Recitals. 

“Merger Sub” means the subsidiary of ACP Re that will merge with Tower pursuant to the Merger Agreement. 

“National General” has the meaning set forth in the Recitals. 

“Parties” has the meaning set forth in the first paragraph. 

“Person” shall mean any individual, corporation, partnership, firm, joint venture, association, joint-stock company, limited
liability company, trust, estate, unincorporated organization, Government Authority or other entity. 

  
 - 3 - 

 “Personal Lines SPA” has the meaning set forth in the Recitals. 

“Personal Lines Business” means all insurance contracts, policies, certificates, binders, slips, covers or other agreements of
insurance, including all supplements, riders, endorsements, renewals and extensions for personal automobile liability and physical damage, homeowners, personal excess and umbrella coverage issued by the Companies. 

“Policyholder” means policyholders and named insureds of the Insurance Contracts. 

“Premium(s)” means all gross written premium(s), considerations, deposits, premium adjustments, fees and similar amounts related to
the Fronted Policies, less cancellation and return premiums. 
 “Purchased Commercial Lines Companies” has the meaning set forth
in the Recitals. 
 “Purchased Personal Lines Companies” has the meaning set forth in the Recitals. 

“Reinsurer” has the meaning set forth in the first paragraph. 

“Taxes” (or “Tax” as the context may require) means all United States federal, state, county, local, foreign and other
taxes (including, without limitation, income taxes, payroll and employee withholding taxes, unemployment insurance, social security taxes, premium taxes, excise taxes, sales taxes, use taxes, gross receipts taxes, franchise taxes, ad valorem taxes,
severance taxes, capital property taxes and import duties), and includes interest, additions to tax and penalties with respect thereto, whether disputed or not. 

“Tower” has the meaning set forth in the Recitals. 

“Transaction Documents” means this Agreement, the Commercial Lines SPA, the Personal Lines SPA, the Commercial Lines Quota Share
Reinsurance Agreement of even date herewith to be entered into by an Affiliate of National General and certain Affiliates of AmTrust, and such other and further documents reasonably necessary to effectuate the Merger. 

Article 2 
 BASIS OF
REINSURANCE AND BUSINESS REINSURED 
 Section 2.1 Fronted Business. 

(a) From and until two (2) years after the Closing Date (the “Fronting Period”), the Companies, in their own name and
on their own behalf, or in the name and on behalf of any of their Affiliates will issue or cause to be issued insurance contracts, policies, certificates, binders, slips, covers or other agreements of insurance, including all supplements, riders,
endorsements, renewals and extensions for personal automobile liability and personal physical damage, homeowners, personal excess and personal umbrella coverage that are approved and requested by National General or its designee (the
“Fronted Policies”). Neither National General nor any of its Affiliates shall have any obligation to request Companies’ 

  
 - 4 - 

 
issuance of Fronted Policies. Any interest of the Companies in renewal rights and expirations relating to the Insurance Contracts shall be property of the Reinsurer. 

(b) During the Fronting Period, and as the sole consideration payable hereunder, Reinsurer shall pay the Companies the Ceding Commission in
connection with writing the Fronted Policies. Upon written request by the Companies to the Reinsurer, the Reinsurer will execute such additional documents or endorsements as are reasonably necessary to effectuate the issuance and administration of
Fronted Policies under this Agreement. 
 (c) From and after the Effective Time, each Company hereby cedes, and the Reinsurer hereby
assumes, one hundred percent (100%) of all Losses for which such Company is liable in respect of the Fronted Policies that are issued on or after the Effective Time. 

(d) In the event the Reinsurer makes an indemnity payment on behalf of a Company directly to any Policyholder, insured or third party
pursuant to any Fronted Policy that pays, in full, a Loss, cost or expense under such Fronted Policy, such payment satisfies and extinguishes any and all obligation of the Reinsurer hereunder to indemnify a Company for such Loss, cost or expense to
the extent of such payment. In no event shall the Reinsurer be obligated hereunder to indemnify with respect to any Loss, cost or expense under a Fronted Policy for an amount in excess of such Loss, cost or expense. 

ARTICLE 3 
 PAYMENTS,
OFFSET, AND SECURITY 
 Section 3.1 Premium. 

(a) As premium for the Fronted Policies ceded under this Agreement, each Company shall pay to the Reinsurer (to the extent the Reinsurer has
not retained such Premiums directly pursuant to Article 4) by wire transfers of immediately available funds one hundred percent (100%) of the collected Premiums attributable to the Fronted Policies, net of a ceding commission in an amount equal
to the actual out-of-pocket expenses incurred by such Company for amounts paid or payable by, or on behalf of, such Company to persons who are not Affiliates of such Company to acquire the Fronted Policies, including all brokerage commissions and
any adjustments thereto, and any Taxes, surcharges and other similar amounts on premiums required to be paid or collected by such Company or its producers or agents (the “Fronting Acquisition Costs”). 

(b) The Reinsurer shall pay to the Companies the Ceding Commission pursuant to the monthly settlement under Section 3.4. 

Section 3.2 Offset Rights. 

Except as otherwise expressly provided, each Party hereto shall have, and may exercise at any time and from time to time, the right to offset
any balance or balances due to the other Party arising under this Agreement, and regardless of whether on account of Premiums, Ceding Commissions, or Losses related to or arising under the Fronted Policies; provided, however, that

  
 - 5 - 

 
in the event of the insolvency of a Party hereto or any of its Affiliates, offsets shall only be allowed in accordance with the provisions of Applicable Law. 

Section 3.3 Premiums for Fronted Policies 

(a) The Reinsurer is authorized to collect Premiums for the Fronted Policies from Policyholders of a Company and may deposit such Premiums
directly into one or more accounts designated by, and issued in the name of, the Reinsurer. To the extent any Premiums are collected directly by a Company, such Company shall so advise the Reinsurer and shall promptly remit them to the Reinsurer,
net of any Ceding Commissions which shall be retained by such Company. The Reinsurer and the Companies agree to maintain accounting and operational records and books in adequate detail so as to identify the specific Fronted Policies and
Policyholders of the Companies with respect to all collected Premiums. 
 (b) The Reinsurer shall: (i) timely pay any return premium
coming due under the Fronted Policies payable on or after the Closing Date; or (ii) promptly reimburse a Company for any of the foregoing amounts that are instead paid by such Company. 

Section 3.4 Reports and Remittances. 

(a) The Parties shall conduct monthly settlements based upon monthly bordereaux to be provided by or on behalf of the Reinsurer evidencing
the amount due or to be due in a form, and containing such detail, as is agreed to by the Parties. Such settlements shall take into account and fully settle any profit commission, return commission, loss corridor payment, or other similar premium or
commission adjustments payable to or by the Companies pursuant to the terms of any Fronted Policy or any agent or broker contract that relates to the Fronted Policies, which adjustments, whether positive or negative, shall be credited to or charged
against the Reinsurer, as the case may be. Each Party shall pay or credit in cash or its equivalent to the other all net amounts for which it may be liable under the terms and conditions of this Agreement within thirty (30) days after receipt
of each monthly bordereau. 
 (b) The Companies and the Reinsurer shall furnish each other with such records, reports and information with
respect to the Losses, Claims and the reinsurance contemplated hereby as may be reasonably required by the other Party to comply with any internal reporting requirements or reporting requirements of any Governmental Authority or to prepare and
complete such Party’s quarterly and annual financial statements. 
 (c) If any Company or the Reinsurer receives notice of, or
otherwise becomes aware of, any inquiry, investigation, proceeding, from or at the direction of a Governmental Authority, or is served or threatened with a demand for litigation, arbitration, mediation or any other similar proceeding relating to the
Fronted Policies, such Company or the Reinsurer, as applicable, shall promptly notify the other party thereof, whereupon the parties shall cooperate in good faith and use their respective commercially reasonable efforts to resolve such matter in a
mutually satisfactory manner in light of all the relevant business, regulatory and legal facts and circumstances. 
 (d) Each Party shall
have the right, through authorized representatives and upon reasonable advance notice during normal business hours, to periodically audit and inspect 

  
 - 6 - 

 
all books, records, and papers of the other Party solely in connection with the Fronted Policies and any reinsurance hereunder or claims in connection therewith and the performance of the claims,
underwriting and other administration services pursuant to Article 4. Each Party shall treat the other Party’s books, records, and papers in confidence. A Party shall be permitted to conduct such audits no more frequently than semi-annually
except as is otherwise reasonably necessary in the day-to-day administration of the Fronted Policies including but not limited to Claims. 

Section 3.5 Collection of Premiums. 

Following the Closing Date and subject to Section 3.3(a), all Premiums collected by the Reinsurer or any of its Affiliates shall be
retained by the Reinsurer and all Premiums collected by a Company, net of the applicable Ceding Commission, shall be deposited directly into an account (or accounts) designated by, and issued in the name of, the Reinsurer. Any Premiums collected by
a Company pursuant to this Section 3.5 shall, net of any Ceding Commission, be the sole and exclusive property of the Reinsurer and, notwithstanding Section 3.2, shall not be subject to setoff in any form by a Company. 

Section 3.6 Collateral for Ceded Losses. 

Without limiting the Reinsurer’s other obligations under this Section 3.6, in the event pursuant to Applicable Law of any state of
the United States of America or the District of Columbia having jurisdiction over a Company, such Company is no longer able to take full reserve credit on its statutory financial statements for the reinsurance ceded to the Reinsurer without
qualifying collateral therefor, the Reinsurer shall promptly agree to modifications to this Agreement so that the Reinsurer shall provide collateral for its obligations hereunder in the amount and form necessary for such Company to take full reserve
credit on its statutory financial statements for the reinsurance provided hereunder on terms and conditions reasonably satisfactory to such Company and Reinsurer and in accordance with Applicable Law. 

ARTICLE 4 
 CLAIMS,
UNDERWRITING AND OTHER ADMINISTRATION 
 (a) On and after the Effective Time, each Company will provide prompt notice to the Reinsurer
or its designee of all Claims (but only to the extent such Claims are not otherwise known or reported to the Reinsurer or any of its Affiliates), and the Reinsurer or its designee will have the obligation to administer, investigate and defend, as
applicable, at its own expense, any Claim affecting this Agreement. At the request of the Reinsurer or such designee, the applicable Company will jointly associate with the Reinsurer, at the expense of the Reinsurer, in the defense or control of any
Claim, suit or proceeding involving this reinsurance, and such Company shall cooperate with the Reinsurer or such designee in every respect to procure the most favorable disposition of such claim, suit or proceeding. 

(b) Each Company grants to the Reinsurer or one or more of the Reinsurer’s Affiliates designated by the Reinsurer, as of the Effective
Time, authority in all matters relating to the administration of the Fronted Policies and any Claims thereunder, including but not limited to 

  
 - 7 - 

 
the authority (i) to pay and adjust Claims on behalf of such Company, (ii) to communicate directly with Policyholders and to collect on behalf of such Company unpaid Premiums that
relate solely to the Fronted Policies, and (iii) to handle the placement, production, underwriting, service and management of the Fronted Policies, including without limitation the authority to (A) solicit, accept and receive submissions
for Fronted Policies or renewals of Fronted Policies; (B) secure, at its own expense, reasonable underwriting information through reporting agencies or other appropriate sources relating to each submission; (C) issue, renew and countersign
Fronted Policies and endorsements related thereto; (D) collect and receipt for the premiums on Fronted Policies; (E) calculate and pay producer commissions, countersignature fees, inspection fees, loss prevention expenses, and all other
expenses directly related to the production, underwriting and administration of the business subject to this Agreement, (F) purchase facultative reinsurance as deemed appropriate by the Reinsurer, (G) adjust and settle claims under the
Fronted Policies; (H) set and establish loss reserves for the Fronted Policies; and (I) any and all other acts or duties that would otherwise be performed by such Company necessary and appropriate to the Fronted Policies, to the extent
such authority may be granted pursuant to Applicable Law and the Reinsurer, or one or more of the Reinsurer’s Affiliates designated by the Reinsurer, shall perform all such functions as outlined herein. In exercising such authorities, the
Reinsurer or any such Affiliate may delegate the performance of any duty described above to a third party; provided that no such delegation shall relieve the Reinsurer of its obligations hereunder. Subject to the forgoing limitation, effective as of
the Effective Time, each Company hereby appoints the Reinsurer as its attorney-in-fact with respect to the rights, duties and privileges and obligations of such Company in and to the Fronted Policies, with full power and authority to act in the
name, place and stead of such Company with respect to such contracts, including without limitation, the power to service such contracts, to adjust, defend, settle and to pay all Claims, to recover salvage and subrogation for any losses incurred and
to take such other and further actions as may be necessary or desirable to effect the transactions contemplated by this Agreement, provided, that the Reinsurer covenants to exercise such authority in a professional manner and to use the same level
of care as is used in administering the Reinsurer’s other insurance business. As part of the foregoing, each Company grants full authority to the Reinsurer to adjust, settle or compromise all Losses hereunder, and all such adjustments,
settlements and compromises shall be binding on such Company. Each Company agrees to cooperate fully with the Reinsurer in the transfer of such administration, and the Reinsurer agrees to be responsible for such administration. Notwithstanding the
foregoing, the Parties understand and acknowledge that all management services performed by the Reinsurer with respect to the Insurance Contracts issued by a Company shall be provided subject to the general supervision and control of such Company
and its officers and directors. For the avoidance of doubt, and notwithstanding the delegation of duties contained in this Agreement, each Company has and retains the ultimate control of and authority over the performance of all functions and
services delegated hereunder by it. 
 (c) Each Company agrees that such Company will not take action to prevent or limit the Reinsurer or
its designee from servicing or administering the Fronted Policies or the Claims as contemplated by this Agreement. If the Reinsurer fails to cure a material breach of its servicing or other obligations hereunder within thirty (30) days
following a Company’s written notice to Reinsurer of such breach, which notice shall in reasonable detail describe the nature of such breach or, if such breach shall not be reasonably susceptible to cure within such thirty (30) day period
such additional reasonable time not exceeding an additional sixty (60) days as shall 

  
 - 8 - 

 
be necessary to cure such breach, such Company shall have the right to exercise its remedies at law or in equity with respect to such breach. 

(d) The Reinsurer shall maintain sufficient resources and adequate staffing levels of personnel with appropriate experience to administer the
Fronted Policies in a professional manner and shall administer the Fronted Policies in accordance with all Applicable Laws. 
 ARTICLE 5
 
 REGULATORY MATTERS 

At all times during the term of this Agreement, the Companies and the Reinsurer shall hold and maintain all licenses and authorizations
required under Applicable Law and otherwise take all actions that may be necessary to perform its obligations hereunder. 
 ARTICLE 6

 DUTY OF COOPERATION & INDEMNITY; REINSURANCE 

Section 6.1 Cooperation. 

Each Party hereto shall cooperate fully with the other in all reasonable respects in order to accomplish the objectives of this Agreement.

 Section 6.2 Reinsurance 

Without written consent of the Reinsurer (which consent may be withheld at Reinsurer’s sole discretion), the Companies shall not enter
into any reinsurance agreements, treaties and contracts, including any renewals or extensions thereof, to the extent such reinsurance agreements, treaties and contracts provide reinsurance coverage for the Fronted Policies. 

ARTICLE 7  

INSOLVENCY 
 In the
event of the insolvency of a Company, this reinsurance as to Fronted Policies issued by such Company shall be payable directly to such Company or its liquidator, receiver, conservator or statutory successor on the basis of the amount of the claims
allowed in the insolvency proceeding without diminution because of the insolvency of such Company or because the liquidator, receiver, conservator or statutory successor of such Company has failed or is unable to pay all or a portion of a claim,
except where (a) this Agreement specifically provides another payee of such reinsurance in the event of such Company’s insolvency, provided that this exception shall only apply to the extent that the reinsurance proceeds due such payee are
actually paid by the Reinsurer, or (b) the Reinsurer, with the consent of the direct insured or insureds, has assumed such policy obligations of such Company as direct obligations of the Reinsurer to the payees under such policies and in full
and complete substitution for the obligations of such Company to such payees. It is agreed, however, that the liquidator, receiver, 

  
 - 9 - 

 
conservator or statutory successor shall give written notice to the Reinsurer of the pendency of a claim against such Company indicating the Fronted Policy which involves a possible liability on
the part of the Reinsurer within reasonable time after such claim is filed in the conservation or liquidation proceeding or in the receivership and that, during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at
its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may deem available to such Company or its liquidator, receiver, conservator or statutory successor. The expenses thus incurred by the Reinsurer
shall be chargeable, subject to the Court’s approval, against such Company as part of the expense of the conservation or liquidation to the extent of a pro rata share of the benefit that may accrue to such Company solely as a result of the
defense undertaken by the Reinsurer. 
 ARTICLE 8 

REGULATORY APPROVALS 

The Companies and the Reinsurer shall submit all necessary registrations, filings and notices with, and obtain all necessary consents,
approvals, qualifications and waivers from, all Governmental Authorities and other parties which may be required under Applicable Law as a result of the transactions contemplated by, or to perform its respective obligations under, this Agreement.
The Parties agree that where formal approval is required by any Governmental Authority, this Agreement shall not be effective as to any and all Fronted Policies to be reinsured hereunder in such jurisdiction until such approval is obtained. 

ARTICLE 9 

DURATION 
 Subject
to Section 2.1 above, this Agreement shall not be subject to termination by any Party except (i) by written agreement between Reinsurer and the respective Company on the date indicated by such agreement, after receipt of any required
approval from Government Authorities, or (ii) upon the termination or expiration of the Fronting Authority, the expiration of all liability on all Fronted Policies, and the complete performance by Reinsurer and the Companies of all obligations
and duties arising under this Agreement. 
 ARTICLE 10 

FOLLOW THE FORTUNES 

The Reinsurer’s liability shall attach simultaneously with that of each Company and shall be subject in all respects to the same risks,
original terms and conditions, interpretations, waivers, and to the same cancellation of the Fronted Policies as such Company is subject to, the true intent of this Agreement being that the Reinsurer shall, in every case to which this Agreement
applies, follow the fortunes and follow the settlements of such Company. 

  
 - 10 - 

 ARTICLE 11 

INDEMNIFICATION 

Section 11.1 Indemnification. 

(a) Each Company agrees to indemnify and hold the Reinsurer and its Affiliates, predecessors, successors and assigns (and their respective
officers, directors, employees and agents) harmless from and against and in respect of all Damages resulting from or relating to a breach by such Company of any covenant or agreement of such Company in this Agreement and to be performed
post-Closing. 
 (b) The Reinsurer agrees to indemnify and hold each Company and its Affiliates, predecessors, successors and assigns (and
their respective officers, directors, employees and agents) harmless from and against and in respect of all Damages, resulting from or relating to a breach by the Reinsurer of any covenant or agreement of the Reinsurer in this Agreement and to be
performed post-Closing or from any third party claim against a Company resulting from (i) the administration of Fronted Policies or Claims by Reinsurer or (ii) any action or failure to act of a Company pursuant to express written
instructions of the Reinsurer. 
 ARTICLE 12 

MISCELLANEOUS 

Section 12.1 Notices. All notices, requests, demands and other communications hereunder shall be given in writing and shall
be: (a) personally delivered; (b) sent by telecopier, facsimile transmission or other electronic means of transmitting written documents; or (c) sent to the Parties at their respective addresses indicated herein by registered or
certified U.S. mail, return receipt requested and postage prepaid, or by private overnight mail courier service. The respective addresses to be used for all such notices, demands or requests are as follows: 

(a) If to a Company, to: 

c/o AmTrust Financial Services, Inc. 

AmTrust North America, Inc. 

59 Maiden Lane, 43rd fl 

New York, NY 10038 

Attn: Stephen Ungar, Esq. 

Facsimile No.: (212) 220-7130 

E-mail: Steve.Ungar@amtrustgroup.com 

or to such other person or address as the Company shall furnish to the Reinsurer in writing. 

  
 - 11 - 

 (b) If to the Reinsurer, to: 

c/o National General Management Corp. 

59 Maiden Lane, 38th fl 

New York, NY 10038 

Attention: Jeffrey Weissmann, Esq. 

Facsimile: (212) 380-9499 

E-mail: jeffrey.weissmann@ngic.com 

or to such other person or address as the Reinsurer shall furnish to the Companies in writing. 

If personally delivered, such communication shall be deemed delivered upon actual receipt; if electronically transmitted pursuant to this
paragraph, such communication shall be deemed delivered the next business day after transmission (and sender shall bear the burden of proof of delivery); if sent by overnight courier pursuant to this paragraph, such communication shall be deemed
delivered upon receipt; and if sent by U.S. mail pursuant to this paragraph, such communication shall be deemed delivered as of the date of delivery indicated on the receipt issued by the relevant postal service, or, if the addressee fails or
refuses to accept delivery, as of the date of such failure or refusal. Any Party to this Agreement may change its address for the purposes of this Agreement by giving notice thereof in accordance with this Section. 

Section 12.2 Assignment; Parties in Interest. 

(a) Assignment. Except as expressly provided herein, the rights and obligations of a Party hereunder may not be assigned, transferred
or encumbered without the prior written consent of the other Party. 
 (b) Parties in Interest. This Agreement shall be binding
upon, inure to the benefit of, and be enforceable by the Parties and their respective successors and permitted assigns. Except as provided in Section 3.2, nothing contained herein shall be deemed to confer upon any other Person any right or
remedy under or by reason of this Agreement. 
 Section 12.3 Waivers and Amendments; Preservation of Remedies. This
Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by each of the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of
any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power, remedy or privilege, nor any single or partial exercise of any such right, power,
remedy or privilege, preclude any further exercise thereof or the exercise of any other such right, remedy, power or privilege. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any Party may
otherwise have under Applicable Law or in equity. 
 Section 12.4 Governing Law; Venue. This Agreement shall be
construed and interpreted according to the internal laws of the State of New York excluding any choice of law 

  
 - 12 - 

 
rules that may direct the application of the laws of another jurisdiction. The Parties hereby stipulate that any action or other legal proceeding arising under or in connection with this
Agreement may be commenced and prosecuted in its entirety in the federal or state courts sitting in New York, New York, each Party hereby submitting to the personal jurisdiction thereof, and the Parties agree not to raise the objection that such
courts are not a convenient forum. Process and pleadings mailed to a party at the address provided in Section 12.1 shall be deemed properly served and accepted for all purposes. 

Section 12.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 Section 12.6 Entire Agreement;
Merger. This Agreement, the Transaction Documents, and any exhibits, schedules and appendices attached hereto and thereto together constitute the final written integrated expression of all of the agreements among the Parties with respect to
the subject matter hereof and is a complete and exclusive statement of those terms, and supersede all prior or contemporaneous, written or oral, memoranda, arrangements, contracts and understandings between the Parties relating to the subject matter
hereof. Any representations, promises, warranties or statements made by any Party which differ in any way from the terms of this Agreement or any applicable provisions contained in the Ancillary Agreements shall be given no force or effect. The
Parties specifically represent, each to the other, that there are no additional or supplemental agreements or contracts between or among them related in any way to the matters herein contained unless specifically included or referred to in this
Agreement or any applicable provisions contained in the Transaction Documents. No addition to or modification of any provision of this Agreement or any applicable provisions of the Transaction Documents shall be binding upon either Party unless
embodied in a dated written instrument signed by both Parties. 
 Section 12.7 Exhibits and Schedules. All exhibits,
schedules and appendices are hereby incorporated by reference into this Agreement as if they were set forth at length in the text of this Agreement. 

Section 12.8 Headings. The headings in this Agreement are inserted for convenience only and shall not constitute a part
hereof. 
 Section 12.9 Severability. If any part of this Agreement is contrary to, prohibited by, or deemed invalid
under Applicable Law or regulations, that provision shall not apply and shall be omitted to the extent so contrary, prohibited, or invalid; but the remainder of this Agreement shall not be invalidated and shall be given full force and effect insofar
as possible. 

  
 - 13 - 

 Section 12.10 Expenses. Regardless of whether or not the transactions
contemplated in this Agreement are consummated, each of the Parties shall bear their own expenses and the expenses of its counsel and other agents in connection with the transactions contemplated hereby. 

Section 12.11 Currency. The currency of this Agreement and all transactions under this Agreement shall be in United States
Dollars. 
 (Signature Page Follows) 

  
 - 14 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first written above to be effective as of the Effective Time. 
  

			
	COMPANIES:
	
	TOWER INSURANCE COMPANY OF NEW YORK
		
	By	 	  

		
	Title	 	  

	
	CASTLE POINT NATIONAL INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	TOWER NATIONAL INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	HERMITAGE INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	CASTLE POINT FLORIDA INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

 
			
	KODIAK INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	NORTH EAST INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	REINSURER:
	
	INTEGON NATIONAL INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

 [Signature Page to Commercial Lines Reinsurance Agreement—Fronting] 

 EXHIBIT D 

Loss Portfolio Transfer Agreement 

 Execution Copy 

LOSS PORTFOLIO TRANSFER AGREEMENT 

BY AND AMONG 
 TOWER
INSURANCE COMPANY OF NEW YORK, 
 CASTLE POINT NATIONAL INSURANCE COMPANY, 

TOWER NATIONAL INSURANCE COMPANY, 

HERMITAGE INSURANCE COMPANY, 

CASTLE POINT FLORIDA INSURANCE COMPANY, 

KODIAK INSURANCE COMPANY, 

NORTH EAST INSURANCE COMPANY, 

YORK INSURANCE COMPANY OF MAINE, 

MASSACHUSETTS HOMELAND INSURANCE COMPANY, 

PRESERVER INSURANCE COMPANY 

AND 
 CASTLE POINT
INSURANCE COMPANY, AS THE COMPANIES 
 AND 

[CASTLEPOINT REINSURANCE COMPANY LTD.]/[TOWER REINSURANCE, LTD.] AS REINSURER 

 TABLE OF CONTENTS 

 

							
	 Article 1 DEFINITIONS
	  	 	2	  
	 Section 1.1
	  	 Defined Terms
	  	 	2	  
		
	 Article 2 BASIS OF REINSURANCE AND BUSINESS REINSURED
	  	 	5	  
	 Section 2.1
	  	 Existing Business
	  	 	5	  
	 Section 2.2
	  	 Transfer of Loss Reserves
	  	 	5	  
		
	 Article 3 PAYMENTS, OFFSET, AND SECURITY
	  	 	7	  
	 Section 3.1
	  	 Offset Rights
	  	 	7	  
	 Section 3.2
	  	 Reports and Remittances
	  	 	7	  
	 Section 3.3
	  	 Security
	  	 	8	  
		
	 Article 4 CLAIMS, UNDERWRITING AND OTHER ADMINISTRATION
	  	 	10	  
		
	 Article 5 REGULATORY MATTERS
	  	 	12	  
		
	 Article 6 DUTY OF COOPERATION & INDEMNITY
	  	 	12	  
	 Section 6.1
	  	 Cooperation
	  	 	12	  
	 Section 6.2
	  	 Indemnity
	  	 	12	  
		
	 Article 7 [INTENTIONALLY OMITTED]
	  	 	12	  
		
	 Article 8 INSOLVENCY
	  	 	12	  
		
	 Article 9 REGULATORY APPROVALS
	  	 	13	  
		
	 Article 10 DURATION
	  	 	13	  
		
	 Article 11 FOLLOW THE FORTUNES
	  	 	13	  
		
	 Article 12 SURVIVAL; INDEMNIFICATION
	  	 	14	  
	 Section 12.1
	  	 Indemnification
	  	 	14	  
		
	 Article 13 MISCELLANEOUS
	  	 	15	  
	 Section 13.1
	  	 Notices
	  	 	15	  
	 Section 13.2
	  	 Assignment; Parties in Interest
	  	 	16	  
	 Section 13.3
	  	 Waivers and Amendments; Preservation of Remedies
	  	 	16	  
	 Section 13.4
	  	 Governing Law; Venue
	  	 	16	  
	 Section 13.5
	  	 Counterparts
	  	 	16	  
	 Section 13.6
	  	 Entire Agreement; Merger
	  	 	17	  
	 Section 13.7
	  	 Exhibits and Schedules
	  	 	17	  
	 Section 13.8
	  	 Headings
	  	 	17	  
	 Section 13.9
	  	 Severability
	  	 	17	  
	 Section 13.10
	  	 Expenses
	  	 	17	  
	 Section 13.11
	  	 Currency
	  	 	17	  

 LOSS PORTFOLIO TRANSFER AGREEMENT 

THIS LOSS PORTFOLIO TRANSFER AGREEMENT (this “Agreement”) is entered into as of
[            ], 2014 by and among [TOWER INSURANCE COMPANY OF NEW YORK, an insurance company organized under the laws of New York]/[CASTLE POINT NATIONAL INSURANCE COMPANY, an insurance
company organized under the laws of Illinois,] TOWER NATIONAL INSURANCE COMPANY, an insurance company organized under the laws of Massachusetts, HERMITAGE INSURANCE COMPANY, an insurance company organized under the laws of New York, CASTLE POINT
FLORIDA INSURANCE COMPANY, an insurance company organized under the laws of Florida, KODIAK INSURANCE COMPANY, an insurance company organized under the laws of New Jersey, NORTH EAST INSURANCE COMPANY, an insurance company organized under the laws
of Maine, YORK INSURANCE COMPANY OF MAINE, an insurance company organized under the laws of Maine, MASSACHUSETTS HOMELAND INSURANCE COMPANY, an insurance company organized under the laws of Massachusetts, PRESERVER INSURANCE COMPANY, an insurance
company organized under the laws of New Jersey, and CASTLE POINT INSURANCE COMPANY, an insurance company organized under the laws of New York, as the Companies (collectively, the “Companies” and, individually, each a
“Company”), and either CastlePoint Reinsurance Company Ltd. or Tower Reinsurance, Ltd., as agreed to by the parties (the “Reinsurer”) (collectively, the “Parties”). 

WHEREAS, ACP Re, Ltd., a Bermuda corporation (the “Seller”), AmTrust Financial Services, Inc., a Delaware corporation
(“AmTrust”), and National General Holdings Corporation, a Delaware corporation (“National General”) are jointly entering into a series of related agreements for the purpose of acquiring Tower Group International,
Ltd. (“Tower”), a Bermuda insurance holding company, which transacts commercial and personal lines insurance business in the United States through 15 insurance company subsidiaries, including the Companies which are parties to this
Agreement; 
 WHEREAS, Seller, pursuant to that certain Merger Agreement among Seller, Merger Sub and Tower dated as of
January 3, 2014 (the “Merger Agreement”) is acquiring Tower and its subsidiaries, including, indirectly, all of the issued and outstanding shares of capital stock of the Companies, through the merger of Merger Sub with and into
Tower with Tower surviving such merger (the “Merger”); 
 WHEREAS, Technology Insurance Company, Inc. (the
“Commercial Lines Reinsurer”) and the Companies are parties to that certain Commercial Lines Cut-Through Quota Share Reinsurance Agreement, dated January 3, 2014 (the “Commercial Lines Cut-Through QSA”)
pursuant to which the Commercial Lines Reinsurer is reinsuring Subject Policies (as defined in the Commercial Lines Cut-Through QSA and herein called the “Commercial Lines New Policies”) relating to the Commercial Lines Business (as
defined in the Commercial Lines Cut-Through QSA); 
 WHEREAS, Integon National Insurance Company (the “Personal Lines
Reinsurer”) and the Companies are parties to that certain Personal Lines Cut-Through Quota Share Reinsurance Agreement dated as of January 3, 2014 (the “Personal Lines Cut-Through QSA”) pursuant to

 
which the Personal Lines Reinsurer is reinsuring Subject Policies (as defined in the Personal Lines Cut-Through QSA, and together with the Commercial Lines New Policies herein called the
“New Policies”) relating to the Personal Lines Business (as defined in the Personal Lines Cut-Through QSA); and 

WHEREAS, as more particularly set forth herein, the Companies and the Reinsurer wish to enter into a new reinsurance arrangement
pursuant to which the Reinsurer will reinsure all the business written by the Companies prior to the Effective Time. 
 NOW,
THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: 

ARTICLE 1 

DEFINITIONS 

Section 1.1 Defined Terms. 

The following terms shall have the respective meanings specified below throughout this Agreement. 

“Agreement” has the meaning set forth in the first paragraph. 

“Affiliate” (and, with a correlative meaning, “Affiliated”) means, with respect to any Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person. As used in this definition, “control” (including, with correlative meanings, “controlled
by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership
interests, by contract, as trustee or executor, or otherwise). 
 “Alternative Accountants” has the meaning set forth in
Section 2.2(c). 
 “AmTrust” has the meaning set forth in the Recitals. 

“Ancillary Agreements” shall mean the Merger Agreement, the Commercial Lines Cut-Through QSA, the Personal Lines Cut-Through QSA,
the Commercial Lines SPA and the Personal Lines SPA. 
 “Applicable Law” means any domestic or foreign federal, state or local
statute, law, ordinance or code, or any written rules, regulations or administrative interpretations issued by any Governmental Entity pursuant to any of the foregoing, and any order, writ, injunction, directive, judgment or decree of a court of
competent jurisdiction applicable to the parties hereto. 
 “Claim” and “Claims” means any and all claims, requests,
demands or notices made by or on behalf of policyholders, beneficiaries or third party claimants for the payment of Losses 

  
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and any other amounts due or alleged to be due under or in connection with the Insurance Contracts. 

“Closing Date” means the date upon which the Merger is effected. 

“Commercial Lines New Policies” has the meaning set forth in the Recitals. 

“Commercial Lines Reinsurer” has the meaning set forth in the Recitals. 

“Commercial Lines Cut-Through QSA” has the meaning set forth in the Recitals. 

“Commercial Lines SPA” means Commercial Lines Stock and Asset Purchase Agreement dated January 3, 2014 between the Seller and
AmTrust. 
 “Company” has the meaning set forth in the first paragraph. 

“Damages” means all damages, losses, liabilities and expenses (including reasonable attorneys’ fees and reasonable expenses of
investigation in connection with any action, suit or proceeding). 
 “Effective Time” means 12:01 a.m. Eastern Time on the Closing
Date. 
 “Governmental Entity” means any foreign, domestic, federal, territorial, state or local U.S. or non-U.S. governmental
authority, quasi-governmental authority, instrumentality, court or government, self-regulatory organization, commission, tribunal or organization or any political or other subdivision, department, branch or representative of any of the foregoing.

 “IBNR” has the meaning set forth in the definition for the term Loss Reserves. 

“Initial Loss Reserve Transfer Amount” has the meaning set forth in Section 2.2(a). 

“Insurance Contracts” means all insurance contracts, policies, certificates, binders, slips, covers or other agreements of
insurance, including all supplements, riders and endorsements issued or written in connection therewith and extensions thereto, whether or not in-force, issued, renewed, or written by or on behalf of any Company prior to the Effective Time (other
than the New Policies reinsured under the Commercial Lines QSA or the Personal Lines QSA). 
 “Inuring Reinsurance” means all
reinsurance agreements, treaties and contracts, including any renewals or extensions thereof, to the extent such reinsurance agreements, treaties and contracts provide reinsurance coverage for the Insurance Contracts. 

“Losses” shall mean liabilities and obligations to make payments to policyholders, beneficiaries and/or other third party claimants
under the Insurance Contracts (excluding liabilities or assessments arising from a Company’s participation, if any, in any voluntary or involuntary pools, guaranty funds, or other types of government-sponsored or government-organized insurance
funds) and all loss adjustment expenses and defense costs, including, without limitation, (i) all expenses incurred by or on behalf of a Company related to the investigation, appraisal, adjustment, litigation, defense or appeal of claims under
or covered by 

  
 - 3 - 

 
the Insurance Contracts and/or coverage actions under or covered by the Insurance Contracts, (ii) all liabilities for consequential, exemplary, punitive or similar extra contractual damages,
or for statutory or regulatory fines or penalties, or for any loss in excess of the limits arising under or covered by any Insurance Contract, and (iii) court costs accrued prior to final judgment, prejudgment interest or delayed damages and
interest accrued after final judgment. 
 “Loss Reserve True Up Report” has the meaning set forth in Section 2.2(b). 

“Loss Reserve Adjustment” has the meaning set forth in Section 2.2(d). 

“Loss Reserves” shall mean, with respect to a Company, as of any date the amount recorded on the books of such Company, net of
Inuring Reinsurance but without taking into account the reinsurance ceded to the Reinsurer hereunder, on account of its actual or potential obligations for unpaid Losses as of such date, including, without limitation, amounts for incurred but not
reported Losses (“IBNR”), calculated consistent with the established actuarial practices applied by such Company in respect of the Insurance Contracts, but in all cases consistent with the reserve requirements, statutory accounting
rules and actuarial principles applicable to such Company under Applicable Law as of the date at issue. For avoidance of doubt, such reserve requirements, statutory accounting rules and actuarial principles as of the date hereof shall be those in
effect prior to giving effect to the Merger but thereafter such reserve requirements, statutory accounting rules and actuarial principles shall be those then in effect. 

“Merger” has the meaning set forth in the Recitals. 

“Merger Agreement” has the meaning set forth in the Recitals. 

“Merger Sub” means the subsidiary of the Seller that will merge with Tower pursuant to the Merger. 

“National General” has the meaning set forth in the Recitals. 

“New Policies” has the meaning set forth in the Recitals. 

“Parties” has the meaning set forth in the first paragraph. 

“Person” shall mean any individual, corporation, partnership, firm, joint venture, association, joint-stock company, limited
liability company, trust, estate, unincorporated organization, Government Entity or other entity. 
 “Personal Lines Cut-Through
QSA” has the meaning set forth in the Recitals. 
 “Personal Lines Reinsurer” has the meaning set forth in the Recitals. 

“Personal Lines SPA” means that certain Personal Lines Stock Purchase Agreement dated January 3, 2014 between the Seller and
National General Holdings. 
 “Reinsurer” has the meaning set forth in the first paragraph. 

  
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 “Seller” has the meaning set forth in the Recitals. 

“Tower” has the meaning set forth in the Recitals. 

“Trust Account” has the meaning set forth in Section 3.3(b). 

“Trust Agreement(s)” has the meaning set forth in Section 3.3(b). 

“Trustee” has the meaning set forth in Section 3.3(b). 

Article 2 

BASIS OF REINSURANCE AND BUSINESS REINSURED 

Section 2.1 Existing Business. 

(a) Each Company hereby cedes, and the Reinsurer hereby assumes, one hundred percent (100%) of all Losses occurring on or prior to the
date hereof for which such Company is liable in respect of the Insurance Contracts (other than Losses assumed under the Commercial Lines Cut-Through QSA and the Personal Lines Cut-Through QSA). All Losses reinsured hereunder and any payments of
Claims with respect to such Losses by the Reinsurer shall be net Inuring Reinsurance paid and collected for the benefit of the applicable Company. 

(b) In the event the Reinsurer makes an indemnity payment on behalf of a Company directly to any policyholder, insured or third party
pursuant to any Insurance Contract that pays, in full or in part, a Loss, cost or expense under such Insurance Contract, such payment satisfies and extinguishes any and all obligation of the Reinsurer hereunder to indemnify such Company for such
Loss, cost or expense to the extent of such payment. In no event shall the Reinsurer be obligated hereunder to indemnify with respect to any Loss, cost or expense under an Insurance Contract for an amount in excess of such Loss, cost or expense.

 Section 2.2 Transfer of Loss Reserves. 

(a) On the Closing Date, the Companies shall convey to the Reinsurer one hundred percent (100%) of the aggregate Loss Reserves of the
Companies by wire transfer of immediately available funds in an amount equal to [        ] Dollars ($[        ]), which amount represents the estimate of the Loss
Reserves as of the Closing Date (the “Initial Loss Reserve Transfer Amount”). 
 (b) Within ninety (90) days
following the Closing Date, the Reinsurer shall perform a calculation of the aggregate Loss Reserves of the Companies as of the Closing Date, and, if different from the Initial Loss Reserve Transfer Amount, the Reinsurer shall send to the Companies
its computation of such aggregate Loss Reserve together with its work papers used to compute the same (the “Loss Reserve True Up Report”). Such aggregate Loss Reserves shall be calculated utilizing the established actuarial
practices as followed by the Companies in respect of the Insurance Contracts, as well as the reserve requirements, statutory accounting rules and actuarial principles applicable to the Companies as of the Effective Time. 

  
 - 5 - 

 (c) Within ten (10) days following the Companies’ receipt of the Loss Reserve True-Up
Report, the Parties shall confer in good faith with regard to any disputed calculations and an appropriate adjustment shall be made to the aggregate Loss Reserves as agreed upon by the Parties. If the Parties are unable to agree on an appropriate
adjustment within twenty (20) days of the Loss Reserve True Up Report, “Alternative Accountants,” whose decision on the matter shall be binding on the Parties, shall be designated by agreement between the Companies and the
Reinsurer. If the Parties fail to agree on the selection of the Alternative Accountants, the Alternative Accountants shall be selected by mutual agreement of each of the Companies’ and the Reinsurer’s outside independent auditors. The
Alternative Accountants shall conduct such analysis as they deem appropriate, during a period not to exceed thirty (30) days after they are selected, to determine the amounts which they conclude should have been reflected in the Loss Reserve
True Up Report and shall issue their decision (which shall be rendered in writing and shall specify the reasons for the decision) within fifteen (15) days after the conclusion of their analysis. The Alternative Accountants’ decision shall
include a determination of the aggregate Loss Reserve, the amounts which they have determined should be used for the Loss Reserve True Up Report and a determination of the Loss Reserve Adjustment (as that term is defined in Section 2.2(d)) due
to the Reinsurer or the Companies, as the case may be. Each Party shall make available to the other Party and the Alternative Accountants such work papers as may be reasonably necessary to calculate the aggregate Loss Reserves and Loss Reserve
Adjustment under this Section 2.2(c). No Party shall have any ex parte discussions or communications, directly or indirectly, with the Alternative Accountants regarding the subject matter of a dispute arising under this Section 2.2(c),
unless the Party seeking such discussions or communications first obtains the other Party’s written consent to such ex parte contact with the Alternative Accountants. For the avoidance of doubt, in the event of any dispute with respect to the
Loss True Up Report, such dispute shall be governed by this Section 2.2 and the procedures set forth herein. 
 (d) On the fifth
(5th) business day following the deemed acceptance of, the mutual written agreement of the Companies and the Reinsurer to, or the determination by the Alternative Accountants of, the aggregate Loss Reserves, if the aggregate Loss Reserves
exceeds the Initial Loss Reserve Transfer Amount, the Companies shall remit funds to the Reinsurer equal to the difference, and if the aggregate Loss Reserves are less than the Initial Loss Reserve Transfer Amount, the Companies shall be paid such
difference by the Reinsurer (the amount so transferred being herein called the “Loss Reserve Adjustment”). 
 (e) From and
after the Effective Time, the Reinsurer shall maintain as a liability on its statutory financial statements adequate reserves for all liabilities ceded under this Agreement. The Reinsurer shall provide the Companies with its periodic reports filed
with its insurance regulators and a copy of its audited financial statements along with the audit report thereon within fifteen (15) days of the Reinsurer’s filing of such statements and reports with the insurance regulator of its
jurisdiction of domicile. 
 Section 2.3 Inuring Reinsurance. 

As additional consideration for the liabilities assumed by the Reinsurer pursuant to this Agreement, the parties hereby agree that all Inuring
Reinsurance shall inure to the benefit of the 

  
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Reinsurer and, accordingly, any recovery of funds under the Inuring Reinsurance shall be paid promptly to the Reinsurer. 

ARTICLE 3  

PAYMENTS, OFFSET, AND SECURITY 

Section 3.1 Offset Rights. 

Except as otherwise expressly provided, each Party hereto, and each of its respective Affiliates at the time an offset is asserted, shall
have, and may exercise at any time and from time to time, the right to offset any balance or balances due to the other Party under this Agreement at the time an offset is asserted; provided, however, that in the event of the insolvency
of a Party hereto or any of its Affiliates, offsets shall only be allowed in accordance with the provisions of Applicable Law. 

Section 3.2 Reports and Remittances. 

(a) The Parties shall conduct monthly settlements based upon monthly bordereaux to be provided by or on behalf of the Reinsurer evidencing
the amount due or to be due in a form, and containing such detail, as is agreed to by the Parties. Each Party shall pay or credit in cash or its equivalent to the other all gross amounts for which it may be liable under the terms and conditions of
this Agreement within thirty (30) days after receipt of each monthly bordereau. 
 (b) The Companies and the Reinsurer shall furnish
each other with such records, reports and information with respect to the Losses, Claims, Inuring Reinsurance, and the reinsurance contemplated hereby as may be reasonably required by the other Party to comply with any internal reporting
requirements or reporting requirements of any Governmental Entity or to prepare and complete such Party’s quarterly and annual financial statements. 

(c) If a Company or the Reinsurer receives notice of, or otherwise becomes aware of, any inquiry, investigation, proceeding, from or at the
direction of a Governmental Entity, or is served or threatened with a demand for litigation, arbitration, mediation or any other similar proceeding relating to the Insurance Contracts, such Company or the Reinsurer, as applicable, shall promptly
notify the other party thereof, whereupon the parties shall cooperate in good faith and use their respective commercially reasonable efforts to resolve such matter in a mutually satisfactory manner in light of all the relevant business, regulatory
and legal facts and circumstances. 
 (d) Each Party shall have the right, through authorized representatives and upon reasonable advance
notice during normal business hours, to periodically audit and inspect all books, records, and papers of the other Party solely in connection with the Insurance Contracts, the Inuring Reinsurance and any reinsurance hereunder or claims in connection
therewith. Each Party shall treat the other Party’s books, records, and papers in confidence. Each Party shall comply in all material respects with its privacy policies as to and all Privacy Laws with respect to Personal Information.
“Personal Information” means any information related to an identified or identifiable natural person and does not meet the definition of de-identified as 

  
 - 7 - 

 
defined by the Health Insurance Portability and Accountability Act of 1996. “Privacy Laws” shall mean any laws, statutes, rules, regulations, codes, orders, decrees, and rulings
thereunder of any federal, state, regional, county, city, municipal or local government of the United States that relate to privacy, data protection or data transfer issues. 

Section 3.3 Security. 

(a) As regards Insurance Contracts coming within the scope of this Agreement, each Ceding Company agrees that, when it files with the
applicable jurisdiction(s) or sets up on its books reserves for the Policies covered hereunder, which it is required by law to set up, it will forward to the Reinsurer a statement showing the proportion of such reserves applicable to it. For
purposes of this Article, “reserves” will consist of: 
 (i) Loss and loss adjustment expense paid by such Company
but not recovered from the Reinsurer; 
 (ii) Loss and loss adjustment expense reported and outstanding; and 

(iii) A reserve amount for incurred but not reported losses. 

(b) The Reinsurer hereby agrees that with respect to each Ceding Company, severally, it will fund an amount equal to the Reinsurer’s
proportion of such reserves by establishing a trust account pursuant to trust agreement (“Trust Account”) which may be combined with one or more of the following: 

(i) Cash advances or funds withheld; or 

(ii) Letters of credit 

(c) Except as otherwise provided herein, the Reinsurer will have the option of determining the method of funding referred to above, provided
it is reasonably acceptable to the applicable Ceding Company and, to the extent that funding is required for such Ceding Company to receive credit for the reinsurance under this Agreement, each applicable regulatory authority. Income on the amounts
funded as provided above shall accrue to the benefit of the Reinsurer. 
 (d) If a Reinsurer’s choice of funding is or includes a
letter of credit, it will apply for and secure delivery to the applicable Ceding Company of a clean, irrevocable, unconditional letter of credit, dated on or before December 31 of the year in which the request is made, issued by a member of the
Federal Reserve System or any other bank approved for use by the National Association of Insurance Commissioners’ Securities Valuation Office and such Ceding Company, containing provisions acceptable to the insurance regulatory authorities
having jurisdiction over such Ceding Company’s reserves in an amount equal to the Reinsurer’s proportion of such reserves as shown in the statement prepared by such Ceding Company. 

(e) Any letter of credit will be issued for a period of not less than one year, and will be automatically extended for one year from its date
of expiration or any future expiration date unless thirty (30) days prior to any expiration date the issuing bank notifies the Ceding Company that is the beneficiary of such letter of credit by registered mail that the issuing bank elects not
to consider the letter of credit extended for any additional period. An issuing 

  
 - 8 - 

 
bank, not a member of the Federal Reserve System or not chartered in the state of domicile of the Ceding Company that is the beneficiary of such letter of credit, will provide 60 days’
notice to such Ceding Company prior to any expiration in the event of nonextension. 
 (f) Notwithstanding any other provisions of this
Agreement, a Ceding Company or its court-appointed successor in interest may draw upon and apply any amounts which it may draw against such letter of credit or trust agreement (pursuant to the terms of the agreement under which the letter of credit
or trust agreement is held), or any other method of funding that may apply, at any time without diminution because of the insolvency of such Ceding Company or of Reinsurer for one or more of the following purposes only: 

(i) To reimburse such Ceding Company for the Reinsurer’s share of unearned premium (if applicable) on Insurance Contracts
reinsured hereunder on account of cancellations of such Insurance Contracts. 
 (ii) To pay the Reinsurer’s share or to
reimburse such Ceding Company for the Reinsurer’s share of any Loss reinsured by this Agreement, which has not been otherwise paid. 

(iii) To make refund of any sum in excess of 102% of the actual amount of the Reinsurer’s security requirement under this
Agreement. 
 (iv) In the event of nonextension of the letter of credit as provided for above, to establish deposit of the
Reinsurer’s security requirement under this Agreement. Such cash deposit will be held in an interest-bearing account separate from such Ceding Company’s other assets, and interest thereon will accrue to the benefit of the Reinsurer, except
that any such interest shall accrue to the benefit of such Ceding Company to the extent that the Reinsurer has not fully complied with its funding obligations hereunder. 

(v) In the event that the Reinsurer funds its obligations hereunder by use of a trust agreement, where such Ceding Company has
received notification of termination of the trust account established by the trust agreement to secure the Reinsurer’s obligations to such Ceding Company and where the Reinsurer’s entire obligations to such Ceding Company under the
Agreement remain unliquidated and undischarged ten (10) days prior to the termination date, to withdraw amounts equal to such Reinsurer’s obligations under the Agreement, including reserves for outstanding claims (including claims incurred
but not reported), reserves for loss adjustment expenses and reserves for unearned premium, if applicable, and deposit those amounts in a separate account, in the name of such Ceding Company in any qualified United States financial institution as
defined in relevant state insurance laws and regulations apart from its general assets, in trust for such uses and purposes specified above as may remain executory after such withdrawal and for any period after the termination date. 

  
 - 9 - 

 (vi) To pay the Reinsurer’s share of any other amounts such Ceding Company
claims are due under this Agreement. 
 (g) Monthly, each Ceding Company will prepare, for the sole purpose of determining the funding
required in this Article, a specific statement of the Reinsurer’s security requirement under this Agreement. If the statement shows that the Reinsurer’s security requirement exceeds the balance of funding as of the statement date, the
Reinsurer will, within fifteen (15) days after receipt of notice of such excess, make an adjustment increasing the amount of such funding by the amount of such difference. If, however, the statement shows that the Reinsurer’s security
requirement is less than the balance of funding as of the statement date, such Ceding Company will, within fifteen (15) days after receipt of written request from the Reinsurer release such excess by making the appropriate adjustment. 

ARTICLE 4 
 CLAIMS,
UNDERWRITING AND OTHER ADMINISTRATION 
 (a) On and after the Effective Time, each Company will provide prompt notice to the Reinsurer
or its designee of all Claims (but only to the extent such Claims are not otherwise known or reported to the Reinsurer or any of its Affiliates), and the Reinsurer or its designee will have the obligation to investigate and defend, as applicable, at
its own expense, any Claim affecting this Agreement and to administer the Insurance Contracts and the Claims thereunder. At the request of the Reinsurer or such designee, each Company will jointly associate with the Reinsurer, at the expense of the
Reinsurer, in the defense or control of any Claim, suit or proceeding involving this reinsurance, and such Company shall cooperate with the Reinsurer or such designee in every respect to procure the most favorable disposition of such claim, suit or
proceeding. 
 (b) Each Company grants to the Reinsurer, or one or more of the Reinsurer’s Affiliates designated by the Reinsurer, as
of the Effective Time authority in all matters relating to the administration of Inuring Reinsurance, the Insurance Contracts and any Claims thereunder, including the authority (i) to pay Claims on behalf of such Company, (ii) to
communicate directly with policyholders, (iii) to handle the service and management of the Insurance Contracts, including without limitation the authority to (A) adjust and settle claims under the Insurance Contracts; (B) set and
establish loss reserves for the Insurance Contracts; and (C) any and all other acts or duties that would otherwise be performed by such Company necessary and appropriate to the Insurance Contracts, to the extent such authority may be granted
pursuant to Applicable Law and the Reinsurer, or one or more of the Reinsurer’s Affiliates designated by the Reinsurer, shall perform all such functions as outlined herein, and (iv) to collect amounts payable to such Company under Inuring
Reinsurance, including intervening in any action to collect Inuring Reinsurance. In exercising such authorities, the Reinsurer or any such Affiliate may delegate the performance of any duty described above to a third party; provided that no such
delegation shall relieve the Reinsurer of its obligations hereunder. Subject to the forgoing limitation, effective as of the Effective Time, each Company hereby appoints the Reinsurer as its attorney-in-fact with respect to the rights, duties and
privileges and obligations of such Company in and to the Insurance Contracts, with full power and authority to act in the name, place and stead of such Company with respect to such contracts, including without limitation, the power to service such
contracts, to adjust, defend, settle and to pay all Claims, to recover salvage and subrogation for any losses 

  
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incurred and to take such other and further actions as may be necessary or desirable to effect the transactions contemplated by this Agreement, provided, that the Reinsurer covenants to exercise
such authority in a professional manner and to use the same level of care as is used in administering the Reinsurer’s other insurance business. As part of the foregoing, each Company grants full authority to the Reinsurer to adjust, settle or
compromise all Losses hereunder, and all such adjustments, settlements and compromises shall be binding on such Company. Each Company agrees to cooperate fully with the Reinsurer in the transfer of such administration, and the Reinsurer agrees to be
responsible for such administration. 
 (c) The Companies agrees that so long as (i) the Reinsurer is solvent, and (ii) the
Reinsurer or its designee shall not be in material breach of its obligations to service and administer the Insurance Contracts or the Claims under this Agreement, the Companies will not take action to prevent or limit the Reinsurer or its designee
from servicing or administering the Insurance Contracts or the Claims as contemplated by this Agreement. If the Reinsurer (i) becomes insolvent, makes an assignment for the benefit of its creditors, or becomes the subject of any voluntary or
involuntary supervision, conservation, rehabilitation, liquidation or other similar proceeding, the Reinsurer’s authority under this Article 4 shall be automatically revoked and the Companies shall handle, or retain a third-party administrator
to handle, the administration and runoff of the Insurance Contracts and all reasonable costs and expenses incurred by or on behalf of the Companies in taking back and administering the runoff of the Insurance Contracts shall constitute loss
adjustment expenses fully reinsured under this Agreement. In all other circumstances, if the Reinsurer fails to cure a material breach of its servicing or other obligations hereunder within thirty (30) days following the Companies’ written
notice to Reinsurer of such breach, which notice shall in reasonable detail describe the nature of such breach or, if such breach shall not be reasonably susceptible to cure within such thirty (30) day period such additional reasonable time not
exceeding an additional thirty (30) days as shall be necessary to cure such breach, the Companies shall have the right to exercise their remedy options set forth in the last sentence of this paragraph. The remedies available to the Companies,
without prejudice to any other remedies otherwise available, shall include: (1) the Companies shall have the option, at its sole discretion, (i) to revoke the Reinsurer’s authority hereunder and handle the administration and runoff of
the Insurance Contracts directly or through their designee, or (2) to provide the Reinsurer with a list of three third-party administrators acceptable to the Companies, and the Reinsurer shall, within thirty (30) days, contract (at the
Reinsurer’s expense) with one of such listed third-party administrator to perform all of the Reinsurer’s claim-handling duties and all duties under this Article 4, with the terms of such contract subject to the agreement of the Companies,
which agreement shall not be unreasonably withheld; or (3) should the Reinsurer fail to comply with the foregoing clause (2), the Companies shall have the option, at its sole discretion, to revoke all or a portion of the Reinsurer’s
authority pursuant to this Article 4, and to contract with one of the listed third-party administrators. In all cases, the reasonable expenses incurred by the Companies pursuant to this Section 4(c) shall be deemed to constitute loss adjustment
expenses fully reinsured under this Agreement. 
 (d) The Reinsurer shall maintain sufficient resources and adequate staffing levels of
personnel with appropriate experience to administer the Insurance Contracts in a professional manner and shall administer the Insurance Contracts in accordance with all Applicable Laws. 

  
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 (e) The Reinsurer shall use its own claims practices and procedures, loss control services and
other administrative practices and procedures in administering and managing the Claims. The Companies acknowledges that they have reviewed, or had the opportunity to review, all such practices and procedures as in effect at the inception of this
Agreement and approve of the same for the Reinsurer’s use in administration and management of the Claims. Notwithstanding the foregoing, the Parties understand and acknowledge that all management services performed by the Reinsurer with respect
to the Insurance Contracts issued by a Company shall be provided subject to the general supervision and control of such Company and its officers and directors. For the avoidance of doubt, and notwithstanding the delegation of duties contained in
this Agreement, each Company has and retains the ultimate control of and authority over the performance of all functions and services delegated hereunder by it. 

ARTICLE 5 

REGULATORY MATTERS 

At all times during the term of this Agreement, each Company and the Reinsurer shall hold and maintain all licenses and authorizations
required under Applicable Law and otherwise take all actions that may be necessary to perform its obligations hereunder. 
 ARTICLE 6

 DUTY OF COOPERATION & INDEMNITY 

Section 6.1 Cooperation. 

Each Party hereto shall cooperate fully with the other in all reasonable respects in order to accomplish the objectives of this Agreement.

 Section 6.2 Indemnity 

This Agreement is an agreement for indemnity reinsurance solely between the Companies and the Reinsurer and shall not create any legal
relationship whatsoever between the Reinsurer and any Person other than the Companies. 
 ARTICLE 7 

[INTENTIONALLY OMITTED] 

ARTICLE 8  

INSOLVENCY 
 In the
event of the insolvency of a Company, this reinsurance shall be payable directly to such Company or its liquidator, receiver, conservator or statutory successor on the basis of the amount of the claims allowed in the insolvency proceeding without
diminution because of the insolvency of such Company or because the liquidator, receiver, conservator or statutory successor of such Company has failed or is unable to pay all or a portion of a claim, except

  
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where (a) this Agreement specifically provides another payee of such reinsurance in the event of such Company’s insolvency, provided that this exception shall only apply to the extent
that the reinsurance proceeds due such payee are actually paid by the Reinsurer, or (b) the Reinsurer, with the consent of the direct insured or insureds, has assumed such policy obligations of such Company as direct obligations of the
Reinsurer to the payees under such policies and in full and complete substitution for the obligations of such Company to such payees. It is agreed, however, that the liquidator, receiver, conservator or statutory successor shall give written notice
to the Reinsurer of the pendency of a claim against such Company indicating the Insurance Contract which involves a possible liability on the part of the Reinsurer within reasonable time after such claim is filed in the conservation or liquidation
proceeding or in the receivership and that, during the pendency of such claim, the Reinsurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses that it may
deem available to such Company or its liquidator, receiver, conservator or statutory successor. The expenses thus incurred by the Reinsurer shall be chargeable, subject to the Court’s approval, against such Company as part of the expense of the
conservation or liquidation to the extent of a pro rata share of the benefit that may accrue to such Company solely as a result of the defense undertaken by the Reinsurer. 

ARTICLE 9  

REGULATORY APPROVALS 

The Companies and the Reinsurer shall submit all necessary registrations, filings and notices with, and obtain all necessary consents,
approvals, qualifications and waivers from, all Governmental Entities and other parties which may be required under Applicable Law as a result of the transactions contemplated by this Agreement. The Parties agree that where formal approval is
required by any Governmental Entity, this Agreement shall not be effective as to any and all Insurance Contracts to be reinsured hereunder in such jurisdiction until such approval is obtained. 

ARTICLE 10 
 DURATION

 This Agreement shall not be subject to termination by any Party except (i) by written agreement between Reinsurer and the
Companies on the date indicated by such agreement, after receipt of any required approval from Government Entities, or (ii) upon the expiration of all liability on all Insurance Contracts, and the complete performance by Reinsurer and the
Companies of all obligations and duties arising under this Agreement. 
 ARTICLE 11  

FOLLOW THE FORTUNES 

The Reinsurer’s liability shall attach simultaneously with that of the Companies and shall be subject in all respects to the same risks,
original terms and conditions, interpretations, waivers, and to the same cancellation of the Insurance Contracts as the Companies are subject to, 

  
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the true intent of this Agreement being that the Reinsurer shall, in every case to which this Agreement applies, follow the fortunes and follow the settlements of the Companies. 

ARTICLE 12  

SURVIVAL; INDEMNIFICATION 

Section 12.1 Indemnification. 

(a) The Reinsurer agrees to indemnify and hold the Companies and their Affiliates, predecessors, successors and assigns (and their respective
officers, directors, employees and agents) harmless from and against and in respect of all Damages resulting from or relating to a breach by the Reinsurer of any covenant or agreement of the Reinsurer in this Agreement and to be performed after the
date hereof. 

  
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 (b) Each Company agrees, severally and not jointly, to indemnify and hold the Reinsurer and its
Affiliates, predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against and in respect of all Damages, resulting from or relating to a breach by such Company of any covenant or
agreement of such Company in this Agreement and to be performed after the date hereof 
 ARTICLE 13 

MISCELLANEOUS 

Section 13.1 Notices. All notices, requests, demands and other communications hereunder shall be given in writing and
shall be: (a) personally delivered; (b) sent by telecopier, facsimile transmission or other electronic means of transmitting written documents; or (c) sent to the Parties at their respective addresses indicated herein by registered or
certified U.S. mail, return receipt requested and postage prepaid, or by private overnight mail courier service. The respective addresses to be used for all such notices, demands or requests are as follows: 

(a) If to any Company, to: 

National General Management Corp. 

59 Maiden Lane, 38th fl 
 New
York, NY 10038 
 Attention: Jeffrey Weissmann, Esq. 

Facsimile: (212) 380-9499 

E-mail: jeffrey.weissmann@ngic.com 

with copies to: 
 AmTrust
Financial Services, Inc. 
 59 Maiden Lane, 43rd fl 

New York, NY 10038 
 Attn:
Stephen Ungar, Esq. 
 Facsimile No.: (212) 220-7130 

E-mail: Steve.Ungar@amtrustgroup.com 
 or to
such other person or address as the Companies shall furnish to the Reinsurer in writing. 
 (b) If to the Reinsurer, to: 

ACP Re, Ltd. 
 59 Maiden Lane,
38th fl 
 New York, NY 10038 

Attention: Jeffrey Weissmann, Esq. 

Facsimile: (212) 380-9499 

E-mail: jeffrey.weissmann@ngic.com 
 or to such
other person or address as the Reinsurer shall furnish to the Companies in writing. 

  
 - 15 - 

 If personally delivered, such communication shall be deemed delivered upon actual receipt; if
electronically transmitted pursuant to this paragraph, such communication shall be deemed delivered the next business day after transmission (and sender shall bear the burden of proof of delivery); if sent by overnight courier pursuant to this
paragraph, such communication shall be deemed delivered upon receipt; and if sent by U.S. mail pursuant to this paragraph, such communication shall be deemed delivered as of the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the date of such failure or refusal. Any Party to this Agreement may change its address for the purposes of this Agreement by giving notice thereof in accordance with this
Section. 
 Section 13.2 Assignment; Parties in Interest. 

(a) Assignment. Except as expressly provided herein, the rights and obligations of a Party hereunder may not be assigned, transferred
or encumbered without the prior written consent of the other Party. 
 (b) Parties in Interest. This Agreement shall be binding
upon, inure to the benefit of, and be enforceable by the Parties and their respective successors and permitted assigns. Except as provided in Section 3.1, nothing contained herein shall be deemed to confer upon any other Person any right or
remedy under or by reason of this Agreement. 
 Section 13.3 Waivers and Amendments; Preservation of Remedies.
This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by each of the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the
part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right, power, remedy or privilege, nor any single or partial exercise of any such right,
power, remedy or privilege, preclude any further exercise thereof or the exercise of any other such right, remedy, power or privilege. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any
Party may otherwise have under Applicable Law or in equity. 
 Section 13.4 Governing Law; Venue. This Agreement shall be
construed and interpreted according to the internal laws of the State of New York excluding any choice of law rules that may direct the application of the laws of another jurisdiction. Subject to the provisions of Article 7, the Parties hereby
stipulate that any action or other legal proceeding arising under or in connection with this Agreement may be commenced and prosecuted in its entirety in the federal or state courts sitting in New York, New York, each Party hereby submitting to the
personal jurisdiction thereof, and the Parties agree not to raise the objection that such courts are not a convenient forum. Process and pleadings mailed to a party at the address provided in Section 13.1 shall be deemed properly served and
accepted for all purposes. 
 Section 13.5 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

  
 - 16 - 

 Section 13.6 Entire Agreement; Merger. This Agreement, the Ancillary
Agreements, and any exhibits, schedules and appendices attached hereto and thereto together constitute the final written integrated expression of all of the agreements among the Parties with respect to the subject matter hereof and is a complete and
exclusive statement of those terms, and supersede all prior or contemporaneous, written or oral, memoranda, arrangements, contracts and understandings between the Parties relating to the subject matter hereof. Any representations, promises,
warranties or statements made by any Party which differ in any way from the terms of this Agreement or any applicable provisions contained in the Ancillary Agreements shall be given no force or effect. The Parties specifically represent, each to the
other, that there are no additional or supplemental agreements or contracts between or among them related in any way to the matters herein contained unless specifically included or referred to in this Agreement or any applicable provisions contained
in the Ancillary Agreements. No addition to or modification of any provision of this Agreement or any applicable provisions of the Ancillary Agreements shall be binding upon either Party unless embodied in a dated written instrument signed by both
Parties. 
 Section 13.7 Exhibits and Schedules. All exhibits, schedules and appendices are hereby incorporated by
reference into this Agreement as if they were set forth at length in the text of this Agreement. 
 Section 13.8
Headings. The headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. 

Section 13.9 Severability. If any part of this Agreement is contrary to, prohibited by, or deemed invalid under Applicable
Law or regulations, that provision shall not apply and shall be omitted to the extent so contrary, prohibited, or invalid; but the remainder of this Agreement shall not be invalidated and shall be given full force and effect insofar as possible.

 Section 13.10 Expenses. Regardless of whether or not the transactions contemplated in this Agreement are consummated,
each of the Parties shall bear their own expenses and the expenses of its counsel and other agents in connection with the transactions contemplated hereby. 

Section 13.11 Currency. The currency of this Agreement and all transactions under this Agreement shall be in United States
Dollars. 

  
 - 17 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the day and year first written above to be effective as of the Effective Time. 
  

			
	[CASTLEPOINT REINSURANCE COMPANY LTD.]/[TOWER REINSURANCE, LTD.]
		
	By	 	  

		
	Title	 	  

	
	TOWER INSURANCE COMPANY OF NEW YORK
		
	By	 	  

		
	Title	 	  

	
	CASTLE POINT NATIONAL INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	TOWER NATIONAL INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	HERMITAGE INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

  
 [Signature Page to
LPT] 

 
			
	CASTLE POINT FLORIDA INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	KODIAK INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	NORTH EAST INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	YORK INSURANCE COMPANY OF MAINE,
		
	By	 	  

		
	Title	 	  

	
	MASSACHUSETTS HOMELAND INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

	
	PRESERVER INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

  
 [Signature Page to
LPT] 

 
			
	CASTLE POINT INSURANCE COMPANY
		
	By	 	  

		
	Title	 	  

  
 [Signature Page to
LPT]

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