Document:

exv10w60

	 	 	 	 	 

EXHIBIT 10.60

MANAGEMENT SERVICES AGREEMENT

This Management Services Agreement (the “Agreement”) is made and entered into this 15th day of
December, 2001 by and between Liberty Mutual Insurance Company (“Liberty Mutual”), a Massachusetts
mutual insurance company and The Midwestern Indemnity Company (“Midwest”), an Ohio insurance
corporation.

	I.	 	Performance of Services. Liberty Mutual agrees, to the extent requested by Midwest, to
perform such services (collectively, “services”) for Midwest as Midwest determines to be
reasonably necessary or desirable in the conduct of its operations; provided, however, that
Liberty Mutual may, in its sole discretion, decline to provide any of the services
contemplated in this Agreement if providing the requested services would interfere with
Liberty Mutual’s ability to meet its obligations to its policyholders or would otherwise
adversely affect Liberty Mutual. All services provided under this Agreement shall comply with
all applicable state laws and regulations governing Midwest, including all laws and
regulations relating to review of Midwest’s books and records. As may be necessary for the
performance of Liberty Mutual’s services under this Agreement, Liberty Mutual shall have the
authority to negotiate or conclude contracts on behalf of Midwest or bind Midwest to any such
contracts.
	 
	 	 	The listing of the following services to be performed under this Agreement is not intended to
limit the performance of other services that may be provided by Liberty Mutual to or on behalf
of Midwest, as may be agreed to by the parties from time to time:

	 	A.	 	Accounting, financial, tax and auditing. Subject to the direction and control of
Midwest’s Board of Directors and responsible officers, Liberty Mutual shall provide
Midwest with such financial and accounting services as may be desirable, including:

	 	1.	 	Preparation and maintenance of annual and quarterly financial statements
and other reports providing information required by the state of domicile and other
states in which Midwest is transacting business, the maintenance of necessary and
proper records and books of account with respect to the business of Midwest, and the
maintenance and compilation of all data required for the preparation of tax returns.
	 
	 	2.	 	Assistance to Midwest in connection with the examination or audit of the
books, records, affairs and activities of Midwest by governmental, insurance or
taxing authorities having regulatory or taxing authority with respect to the
operations of Midwest, or by any firm of certified public accountants appointed by
Midwest to audit its books, records and accounts.
	 
	 	3.	 	Assistance to Midwest with treasury and accounts payable functions as may
be determined between the parties. Midwest shall certify to Liberty Mutual the names
and specimen signatures of all officers or employees of Midwest who are authorized to
sign instructions on its behalf. Liberty Mutual shall have the right to require that
all instructions made in connection with this Agreement meet its satisfaction as to
content, form and authenticity.

 

 

	 	 	 	Nothing in this Agreement shall be construed to alter the fact that Midwest’s books, records
and accounts are owned by Midwest; and Midwest shall have the right to inspect, or authorize
others to inspect, its books, records and accounts.
	 
	 	B.	 	Purchasing, payroll and employee benefits. Subject to the direction and control of
Midwest’s Board of Directors and responsible officers, Liberty Mutual shall provide
Midwest with such services involving purchasing (including access to group purchasing
contracts and fleet management services), payroll processing, and employee relations
and/or benefits as may be desirable.
	 
	 	C.	 	Information Technology and Support. Subject to the direction and control of Midwest’s
Board of Directors and responsible officers, Liberty Mutual shall provide the technology
infrastructure, information technology systems, software, data center management, network
management services, monitoring, management/oversight, and support services to Midwest and
shall provide trouble-shooting functions on behalf of Midwest.
	 
	 	D.	 	Policy Administration and Production. Subject to the direction and control of
Midwest’s Board of Directors and responsible officers, Liberty Mutual may perform all
policy production, print and mail activities on Midwest’s behalf for all the states in
which Midwest currently operates and in which it may operate in the future.
	 
	 	E.	 	Real Estate Management. Subject to the direction and control of Midwest’s Board of
Directors and responsible officers, Liberty Mutual may handle all matters and issues
relating to Midwest’s real estate purchases, sales, leases and lease-backs.
	 
	 	F.	 	Legal. Subject to the direction and control of Midwest’s Board of Directors and
responsible officers, Liberty Mutual may provide legal services, including litigation
management services, to or on behalf of Midwest.
	 
	 	G.	 	General Administration. Providing all personnel, equipment, data processing programs,
materials and supplies necessary or desirable for the performance of the services
contemplated in this Agreement.
	 
	 	H.	 	Miscellaneous. Subject to the direction and control of Midwest’s Board of Directors
and responsible officers, Liberty Mutual may perform such other services on behalf of
Midwest as it may desire, and as may be mutually agreed to between Liberty Mutual and
Midwest.

	II.	 	Charges. Midwest shall reimburse Liberty Mutual for the reasonable
cost of performing any of the services provided pursuant to this
Agreement. Charges for such services shall include direct expenses
and directly allocable expenses allocated to Midwest by Liberty
Mutual in conformity with customary insurance accounting practices
consistently applied. The method of expense allocations under this
Agreement shall be consistent with the principles stated in the
Statement of Statutory Accounting Principles No. 70, “Allocation of
Expenses.”
	 
	III.	 	Accounts and Disbursements. Amounts owing between the parties shall
be settled between the parties on a monthly basis, unless otherwise
agreed to between the parties, provided, however, that the parties
shall settle all amounts owing on at least a calendar quarterly
basis.
	 
	IV.	 	Confidentiality. Liberty Mutual and Midwest are prohibited from
disclosing or communicating to any other person, not a party to this
Agreement, any confidential or

 

 

	 	 	proprietary information or trade secrets relating to the parties’ respective business or
relating to any affiliate or agency of any party to this Agreement, including business methods
and techniques, research data, marketing and sales information, customer lists, know-how and
any other information concerning the business operations of any party of this Agreement, or any
such party’s affiliates and subsidiaries, unless the disclosure of communication of such
information has been consented to in writing by the party whose confidential and propriety
information or trade secrets is to be released. Confidential and proprietary information shall
not include (a) information generally known to the public, (b) information known to Liberty
Mutual or Midwest to be non-confidential from other, third party, sources prior to the
execution of this Amendment, and (c) information required to be disclosed by law or a state or
federal governmental agency having authority over the business of Liberty Mutual or Midwest,
but only for the limited purpose of such disclosure.
	 
	V.	 	Standards for Performance of Delegated Administrative and Management Functions.

	 	A.	 	At all times during the term of the Agreement, Liberty Mutual shall perform all
delegated administrative and management functions at a level that is at least equal to its
standards for performing such functions on behalf of its own insurance operations. In
addition, all delegated administrative and management functions shall be performed in
accordance with, and subject to, at all times, the relevant and applicable state (or
federal) insurance laws and regulations to which Midwest’s insurance operations are, or
may be, subject.
	 
	 	B.	 	In the event that Liberty Mutual receives a notice from any governmental agency,
board, bureau, commission or public authority of any type, of any alleged violation of any
state or federal insurance law, such notice shall immediately be forwarded to Midwest.
Liberty Mutual shall cooperate in responding to any such governmental notice as such
notice relates to its rendering of services under the Agreement.

	VI.	 	Term and Termination.

	 	A.	 	Term. This Agreement shall be effective as of the 15th day of December, 2001 and
shall continue in full force and effect until terminated in accordance with subsection B,
below. In the event that this Agreement is required to be approved by any state Department
of Insurance, any request for such approval shall seek an effective date that mirrors the
date expressed above.
	 
	 	B.	 	Termination.
	 
	 	1.	 	Termination without Cause. This Agreement may be terminated, in whole or in relevant
part, as appropriate, by Midwest or Liberty Mutual, without cause, upon ninety (90) days
prior written notice. The terminating party shall provide the applicable state
Department(s) of Insurance with written notification of any whole or partial termination
of this Agreement, as may be appropriate, in accordance with state law requirements.
	 
	 	2.	 	Termination with Cause. This Agreement may be terminated immediately, in relevant
parts or in its entirety, as appropriate, for the following reasons:

	 	(a)	 	Material failure by Liberty Mutual to perform the services delegated in
accordance with the standards set forth in this Agreement; provided, however, that
upon notification by Midwest that the services so delegated are not being performed
in an appropriate or satisfactory manner, Liberty Mutual shall have thirty (30) days
in which to cure the deficiency. In the event the deficiency is not cured to the
satisfaction of Midwest, Midwest may immediately terminate this Agreement.

 

 

	 	(b)	 	nonpayment of costs by a delegating party to the party performing the services so
delegated.
	 
	 	(c)	 	The suspension, revocation or other restriction on the insurance license of
either Midwest or Liberty Mutual.
	 
	 	(d)	 	The insolvency, voluntary or involuntary bankruptcy, reorganization or
liquidation of either Midwest or Liberty Mutual.
	 
	 	(e)	 	In the event of (i) the acquisition of Midwest by a third party from
Liberty Mutual; or (ii) any other change in control which causes Liberty Mutual to no
longer maintain a majority on the Board of Directors of Midwest, then this Agreement
shall terminate with respect to Midwest as of the effective date of the change of
control.

	 	C.	 	Effect of Termination. In the event that this Agreement is terminated, with, or
without, cause, in whole or in part, as appropriate, the relevant services shall continue
to be provided by Liberty Mutual until alternate arrangements reasonably can be made by
Midwest (the “Transition Services”); provided, however, that the Transition Services shall
not be required to be provided for a period of time extending beyond ninety (90) days from
the effective date of termination, unless otherwise agreed to by the parties. In the event
that this Agreement is terminated, in whole or in part, as appropriate, for any reason
other than those relating to change of control as described in Section VI.B.2(e), above,
all such Transition Services shall continue to be compensated for on a cost basis. In the
event that this Agreement is terminated for reasons specified in Section VI.B.2(e), above,
all such Transition Services shall be compensated for at the then-prevailing market rate
for the provision of such services.

	VII.	 	Indemnification.

	 	A.	 	Liberty Mutual Indemnification of Midwest. Liberty Mutual shall indemnify, defend and
hold harmless Midwest from and against any expenses, damages, liability, actions, costs or
other claims, including but not limited to reasonable attorney’s fees and associated
costs, incurred by Midwest either (i) as a result of the failure of Liberty Mutual or any
subcontractor appointed by Liberty Mutual to comply with any law or administrative
regulation, only if such failure is the result of willful neglect or gross negligence, or
(ii) as a result of, or in connection with, Liberty Mutual’s breach of any duty or
obligation hereunder or the breach of any duty or obligation of any subcontractor
appointed by Liberty Mutual if such breach is the result of willful neglect or gross
negligence. Midwest may set off against any amount due Liberty Mutual any amount due to
Midwest, pursuant to this or any other agreement to which the parties to this
indemnification are also parties.
	 
	 	B.	 	Midwest’s Indemnification of Liberty Mutual. Midwest shall indemnify Liberty Mutual
and hold Liberty Mutual harmless from all actions, liabilities, costs and expenses arising
out of or in any way related to Liberty Mutual’s services under this Agreement, unless
directly related to Liberty Mutual’s willful neglect or gross negligence.

	VIII.	 	No Waiver. The parties hereto agree that no indulgence or acceptance of any delinquent or
partial payment or ratification after the fact of any violation or breach of any provision of
this Agreement by any party hereto shall be construed as a waiver of any party’s rights
hereunder.

 

 

	IX.	 	Notices. Any notice required to be given pursuant to any provision of this Agreement shall
be in writing and shall be sent to the parties at their respective last known address by first
class mail, postage prepaid, by overnight delivery service, or by confirmed facsimile
transmission.
	 
	X.	 	Severability. If any provision of this Agreement is held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision, and the Agreement shall
be construed and enforced as if that provision had not been included.
	 
	XI.	 	Amendment. This Agreement may only be amended upon the written agreement of both parties hereto.
	 
	XII.	 	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but
all of which together, shall be considered one and the same.
	 
	XIII.	 	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Massachusetts (without application of the conflict of laws principles thereof).

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement under seal
as of the day and year first above written.

	 	 	 

	Liberty Mutual Insurance Company

	 	The Midwestern Indemnity Company
	 
	 	 
	/s/ J. Paul Condrin, III

	 	/s/ James F. Dore
	 

	 	 
	By: J. Paul Condrin, III

	 	By: James F. Dore
	Its: CFO

	 	Its: CFO and SVP

 

 

AMENDMENT NO. 1

(the “Amendment”)

TO

MANAGEMENT SERVICES AGREEMENT

(the “Agreement”)

by and between

LIBERTY MUTUAL INSURANCE COMPANY (“Manager”) and THE MIDWESTERN INDEMNITY COMPANY (“Company”);
(hereinafter together called the “Parties”).

WHEREAS, the Parties entered into the Agreement for Manager to provide various services effective
December 15, 2001.

WHEREAS, the Parties deem it necessary to amend certain provisions of the Agreement with respect to
settlement of amounts due between them.

NOW, THEREFORE, the Parties hereto agree to amend the Agreement, as follows:

1. Section III “Accounts and Disbursements” of the Agreement is amended and restated as follows:

III. Accounts and Disbursements. Amounts owing between the parties shall be settled
between the parties on a quarterly basis and payments of amounts owing shall be made
within 45 days after the end of the calendar quarter.

2. Section I “Performance of Services” is hereby amended to include a new subsection I.
“Maintenance and Property Rights of Records:”

I. Maintenance and Property Rights of Records. Manager shall maintain accurate and
complete records as related to this Agreement. Each of the Parties shall retain the
rights to access such records upon request.

3. Section XV. “Successors and Assigns” is hereby added to the Agreement.

XV. Successors and Assigns. No assignment of this Agreement, including by operation
of Law, may be made by any party to this Agreement without the prior written consent
of other party hereto. Notwithstanding the foregoing, the Manager has full discretion
to delegate any of its responsibilities, duties and authority set forth herein to, or
otherwise to utilize any of its affiliates to provide

 

 

services under this Agreement, provided that Manager will be fully accountable for
any acts or omissions of an affiliate pursuant to such an arrangement, as if such
acts or omissions were its own.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 to the Agreement, effective
as of the 31st day of December, 2007 to be executed by their respective duly authorized officers.

	 	 	 

	Liberty Mutual Insurance Company

	 	The Midwestern Indemnity Company
	 
	 	 
	/s/ John D. Doyle

	 	/s/ James F. Dore
	 

	 	 
	By: John D. Doyle

	 	By: James F. Dore
	Its: Vice President and Comptroller

	 	Its: Chief Financial Officer

 

 

The Midwestern Indemnity Company

6281 Tri-Ridge Boulevard

Loveland, OH 45140

October 13, 2005

RE: Letter Agreement Regarding Reinsurance Services

          This letter will confirm that, effective as of December 15, 2001, Liberty Mutual Insurance
Company’s performance of the following services for and on behalf of The Midwestern Indemnity
Company is encompassed by the terms of the Management Services Agreement dated as of December 15,
2001 between the parties:

          Reinsurance services: including, but not limited to (i) agreement to reinsurance policy and/or
contract wordings and endorsements to existing policies; (ii) processing of reinsurance policy
cancellations, nonrenewals and endorsements and other amendatory addenda; (iii) collection of
premiums due under reinsurance policies or contracts, audits and remittances; (iv) negotiation and
purchase of reinsurance coverage; (v) administration of letters of credit and other arrangements
for the provision of security; and (vi) administration of reinsurance contracts.

	 	 	 

	/s/ James R. Pugh

	 	/s/ James F. Dore
	 

	 	 
	James R. Pugh, Asst. Secretary

	 	James F. Dore, Chief Financial Officer
	Liberty Mutual Insurance Company

	 	The Midwestern Indemnity Companyexv10w61

EXHIBIT 10.61

MANAGEMENT SERVICES AGREEMENT

This Management Services Agreement (the “Agreement”) is made and entered into this 15th day of
December, 2001 by and between Liberty Mutual Insurance Company (“Liberty Mutual”), a Massachusetts
mutual insurance company and The Netherlands Insurance Company (“TNIC”), a New Hampshire insurance
corporation.

	I.	 	Performance of Services. Liberty Mutual agrees, to the extent requested by TNIC, to perform
such services (collectively, “services”) for TNIC as TNIC determines to be reasonably
necessary or desirable in the conduct of its operations; provided, however, that Liberty
Mutual may, in its sole discretion, decline to provide any of the services contemplated in
this Agreement if providing the requested services would interfere with Liberty Mutual’s
ability to meet its obligations to its policyholders or would otherwise adversely affect
Liberty Mutual. All services provided under this Agreement shall comply with all applicable
state laws and regulations governing TNIC, including all laws and regulations relating to
review of TNIC’s books and records. As may be necessary for the performance of Liberty
Mutual’s services under this Agreement, Liberty Mutual shall have the authority to negotiate
or conclude contracts on behalf of TNIC or bind TNIC to any such contracts.
	 
	 	 	The listing of the following services to be performed under this Agreement is not intended to
limit the performance of other services that may be provided by Liberty Mutual to or on behalf
of TNIC, as may be agreed to by the parties from time to time:

	 	A.	 	Accounting, financial, tax and auditing. Subject to the direction and control of
TNIC’s Board of Directors and responsible officers, Liberty Mutual shall provide TNIC with
such financial and accounting services as may be desirable, including:

	 	1.	 	Preparation and maintenance of annual and quarterly financial statements
and other reports providing information required by the state of domicile and other
states in which TNIC is transacting business, the maintenance of necessary and proper
records and books of account with respect to the business of TNIC, and the
maintenance and compilation of all data required for the preparation of tax returns.
	 
	 	2.	 	Assistance to TNIC in connection with the examination or audit of the
books, records, affairs and activities of TNIC by governmental, insurance or taxing
authorities having regulatory or taxing authority with respect to the operations of
TNIC, or by any firm of certified public accountants appointed by TNIC to audit its
books, records and accounts.
	 
	 	3.	 	Assistance to TNIC with treasury and accounts payable functions as may be
determined between the parties. TNIC shall certify to Liberty Mutual the names and
specimen signatures of all officers or employees of TNIC who are authorized to sign
instructions on its behalf. Liberty Mutual shall have the right to require that all
instructions made in connection with this Agreement meet its satisfaction as to
content, form and authenticity.

 

 

	 	 	Nothing in this Agreement shall be construed to alter the fact that TNIC’s books, records and
accounts are owned by TNIC; and TNIC shall have the right to inspect, or authorize others to
inspect, its books, records and accounts.

	 	B.	 	Purchasing, payroll and employee benefits. Subject to the direction and control of
TNIC’s Board of Directors and responsible officers, Liberty Mutual shall provide TNIC with
such services involving purchasing (including access to group purchasing contracts and
fleet management services), payroll processing, and employee relations and/or benefits as
may be desirable.
	 
	 	C.	 	Information Technology and Support. Subject to the direction and control of TNIC’s
Board of Directors and responsible officers, Liberty Mutual shall provide the technology
infrastructure, information technology systems, software, data center management, network
management services, monitoring, management/oversight, and support services to TNIC and
shall provide trouble-shooting functions on behalf of TNIC.
	 
	 	D.	 	Policy Administration and Production. Subject to the direction and control of TNIC’s
Board of Directors and responsible officers, Liberty Mutual may perform all policy
production, print and mail activities on TNIC’s behalf for all the states in which TNIC
currently operates and in which it may operate in the future.
	 
	 	E.	 	Real Estate Management. Subject to the direction and control of TNIC’s Board of
Directors and responsible officers, Liberty Mutual may handle all matters and issues
relating to TNIC’s real estate purchases, sales, leases and lease-backs.
	 
	 	F.	 	Legal. Subject to the direction and control of TNIC’s Board of Directors and
responsible officers, Liberty Mutual may provide legal services, including litigation
management services, to or on behalf of TNIC.
	 
	 	G.	 	General Administration. Providing all personnel, equipment, data processing programs,
materials and supplies necessary or desirable for the performance of the services
contemplated in this Agreement.
	 
	 	H.	 	Miscellaneous. Subject to the direction and control of TNIC’s Board of Directors and
responsible officers, Liberty Mutual may perform such other services on behalf of TNIC as
it may desire, and as may be mutually agreed to between Liberty Mutual and TNIC.

	II.	 	Charges. TNIC shall reimburse Liberty Mutual for the reasonable cost
of performing any of the services provided pursuant to this
Agreement. Charges for such services shall include direct expenses
and directly allocable expenses allocated to TNIC by Liberty Mutual
in conformity with customary insurance accounting practices
consistently applied. The method of expense allocations under this
Agreement shall be consistent with the principles stated in the
Statement of Statutory Accounting Principles No. 70, “Allocation of
Expenses.”
	 
	III.	 	Accounts and Disbursements. Amounts owing between the parties shall
be settled between the parties on a monthly basis, unless otherwise
agreed to between the parties, provided, however, that the parties
shall settle all amounts owing on at least a calendar quarterly
basis.
	 
	IV.	 	Confidentiality. Liberty Mutual and TNIC are prohibited from
disclosing or communicating to any other person, not a party to this
Agreement, any confidential or proprietary information or trade
secrets relating to the parties’ respective business or relating to
any affiliate or agency of any party to this Agreement, including
business methods and

 

 

	 	 	techniques, research data, marketing and sales information, customer lists, know-how and any
other information concerning the business operations of any party of this Agreement, or any
such party’s affiliates and subsidiaries, unless the disclosure of communication of such
information has been consented to in writing by the party whose confidential and propriety
information or trade secrets is to be released. Confidential and proprietary information shall
not include (a) information generally known to the public, (b) information known to Liberty
Mutual or TNIC to be non-confidential from other, third party, sources prior to the execution
of this Amendment, and (c) information required to be disclosed by law or a state or federal
governmental agency having authority over the business of Liberty Mutual or TNIC, but only for
the limited purpose of such disclosure.
	 
	V.	 	Standards for Performance of Delegated Administrative and Management Functions.

	 	A.	 	At all times during the term of the Agreement, Liberty Mutual shall perform all
delegated administrative and management functions at a level that is at least equal to its
standards for performing such functions on behalf of its own insurance operations. In
addition, all delegated administrative and management functions shall be performed in
accordance with, and subject to, at all times, the relevant and applicable state (or
federal) insurance laws and regulations to which TNIC’s insurance operations are, or may
be, subject.
	 
	 	B.	 	In the event that Liberty Mutual receives a notice from any governmental agency,
board, bureau, commission or public authority of any type, of any alleged violation of any
state or federal insurance law, such notice shall immediately be forwarded to TNIC.
Liberty Mutual shall cooperate in responding to any such governmental notice as such
notice relates to its rendering of services under the Agreement.

	VI.	 	Term and Termination.

	 	A.	 	Term. This Agreement shall be effective as of the 15th day of December, 2001 and
shall continue in full force and effect until terminated in accordance with subsection B,
below. In the event that this Agreement is required to be approved by any state Department
of Insurance, any request for such approval shall seek an effective date that mirrors the
date expressed above.
	 
	 	B.	 	Termination.

	 	1.	 	Termination without Cause. This Agreement may be terminated, in whole or in
relevant part, as appropriate, by TNIC or Liberty Mutual, without cause, upon ninety
(90) days prior written notice. The terminating party shall provide the applicable
state Department(s) of Insurance with written notification of any whole or partial
termination of this Agreement, as may be appropriate, in accordance with state law
requirements.
	 
	 	2.	 	Termination with Cause. This Agreement may be terminated immediately, in
relevant parts or in its entirety, as appropriate, for the following reasons:

	 	(a)	 	Material failure by Liberty Mutual to perform the services
delegated in accordance with the standards set forth in this Agreement;
provided, however, that upon notification by TNIC that the services so delegated
are not being performed in an appropriate or satisfactory manner, Liberty Mutual
shall have thirty (30) days in which to cure the deficiency. In the event the
deficiency is not cured to the satisfaction of TNIC, TNIC may immediately
terminate this Agreement.
	 
	 	(b)	 	nonpayment of costs by a delegating party to the party performing
the services so delegated.

 

 

	 	(c)	 	The suspension, revocation or other restriction on the insurance license of
either TNIC or Liberty Mutual.
	 
	 	(d)	 	The insolvency, voluntary or involuntary bankruptcy,
reorganization or liquidation of either TNIC or Liberty Mutual.
	 
	 	(e)	 	In the event of (i) the acquisition of TNIC by a third party from
Liberty Mutual; or (ii) any other change in control which causes Liberty Mutual
to no longer maintain a majority on the Board of Directors of TNIC, then this
Agreement shall terminate with respect to TNIC as of the effective date of the
change of control.

	 	C.	 	Effect of Termination. In the event that this Agreement is terminated, with, or
without, cause, in whole or in part, as appropriate, the relevant services shall continue
to be provided by Liberty Mutual until alternate arrangements reasonably can be made by
TNIC (the “Transition Services”); provided, however, that the Transition Services shall
not be required to be provided for a period of time extending beyond ninety (90) days from
the effective date of termination, unless otherwise agreed to by the parties. In the event
that this Agreement is terminated, in whole or in part, as appropriate, for any reason
other than those relating to change of control as described in Section VI.B.2(e), above,
all such Transition Services shall continue to be compensated for on a cost basis. In the
event that this Agreement is terminated for reasons specified in Section VI.B.2(e), above,
all such Transition Services shall be compensated for at the then-prevailing market rate
for the provision of such services.

	VII.	 	Indemnification.

	 	A.	 	Liberty Mutual Indemnification of TNIC. Liberty Mutual shall indemnify, defend and
hold harmless TNIC from and against any expenses, damages, liability, actions, costs or
other claims, including but not limited to reasonable attorney’s fees and associated
costs, incurred by TNIC either (i) as a result of the failure of Liberty Mutual or any
subcontractor appointed by Liberty Mutual to comply with any law or administrative
regulation, only if such failure is the result of willful neglect or gross negligence, or
(ii) as a result of, or in connection with, Liberty Mutual’s breach of any duty or
obligation hereunder or the breach of any duty or obligation of any subcontractor
appointed by Liberty Mutual if such breach is the result of willful neglect or gross
negligence. TNIC may set off against any amount due Liberty Mutual any amount due to TNIC,
pursuant to this or any other agreement to which the parties to this indemnification are
also parties.
	 
	 	B.	 	TNIC’s Indemnification of Liberty Mutual. TNIC shall indemnify Liberty Mutual and
hold Liberty Mutual harmless from all actions, liabilities, costs and expenses arising out
of or in any way related to Liberty Mutual’s services under this Agreement, unless
directly related to Liberty Mutual’s willful neglect or gross negligence.

	VIII.	 	No Waiver. The parties hereto agree that no indulgence or acceptance of any delinquent or
partial payment or ratification after the fact of any violation or breach of any provision of
this Agreement by any party hereto shall be construed as a waiver of any party’s rights
hereunder.
	 
	IX.	 	Notices. Any notice required to be given pursuant to any provision of this Agreement shall be
in writing and shall be sent to the parties at their respective last known address by first
class mail, postage prepaid, by overnight delivery service, or by confirmed facsimile
transmission.

 

 

	X.	 	Severability. If any provision of this Agreement is held invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision, and the Agreement shall
be construed and enforced as if that provision had not been included.
	 
	XI.	 	Amendment. This Agreement may only be amended upon the written agreement of both parties hereto.
	 
	XII.	 	Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but
all of which together, shall be considered one and the same.
	 
	XIII.	 	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Massachusetts (without application of the conflict of laws principles thereof).

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement under seal
as of the day and year first above written.

	 	 	 	 	 

	Liberty Mutual Insurance Company

	 	 	 	The Netherlands Insurance Company
	 
	 	 	 	 
	/s/ J. Paul Condrin, III

	 	 
	 	/s/ James F. Dore
	 

	 	 	 	 
	By: J. Paul Condrin, III

	 	 	 	By: James F. Dore
	Its: CFO

	 	 	 	Its: CFO and SVP

 

 

AMENDMENT NO. 1

(the “Amendment”)

TO

MANAGEMENT SERVICES AGREEMENT

(the “Agreement”)

by and between

LIBERTY MUTUAL INSURANCE COMPANY (“Manager”) and THE NETHERLANDS INSURANCE COMPANY (“Company”);
(hereinafter together called the “Parties”).

WHEREAS, the Parties entered into the Agreement for Manager to provide various services effective
December 15, 2001.

WHEREAS, the Parties deem it necessary to amend certain provisions of the Agreement with respect to
settlement of amounts due between them.

NOW, THEREFORE, the Parties hereto agree to amend the Agreement, as follows: Section III of the
Agreement is amended and restated as follows:

III. Accounts and Disbursements. Amounts owing between the parties shall be settled
between the parties on a quarterly basis and payments of amounts owing shall be made
within 45 days after the end of the calendar quarter.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 to the Agreement, effective
as of the 31st day of December, 2007 to be executed by their respective duly authorized officers.

	 	 	 	 	 

	Liberty Mutual Insurance Company

	 	 
	 	The Netherlands Insurance Company
	 
	 	 	 	 
	/s/ John D. Doyle

	 	 	 	/s/ James F. Dore
	 

	 	 	 	 
	By: John D. Doyle

	 	 	 	By: James F. Dore
	Its: Vice President and Comptroller

	 	 	 	Its: Chief Financial Officer

 

 

The Netherlands Insurance Company

62 Maple Avenue

Keene, NH 03431

October 13, 2005

RE: Letter Agreement Regarding Reinsurance Services

This letter will confirm that, effective as of December 15, 2001, Liberty Mutual Insurance
Company’s performance of the following services for and on behalf of The Netherlands Insurance
Company is encompassed by the terms of the Management Services Agreement dated as of December 15,
2001 between the parties:

          Reinsurance services: including, but not limited to (i) agreement to reinsurance policy and/or
contract wordings and endorsements to existing policies; (ii) processing of reinsurance policy
cancellations, nonrenewals and endorsements and other amendatory addenda; (iii) collection of
premiums due under reinsurance policies or contracts, audits and remittances; (iv) negotiation and
purchase of reinsurance coverage; (v) administration of letters of credit and other arrangements
for the provision of security; and (vi) administration of reinsurance contracts.

	 	 	 	 	 

	/s/ James R. Pugh

	 	 
	 	/s/ James F. Dore
	 

	 	 	 	 
	James R. Pugh, Asst. Secretary

	 	 	 	James F. Dore, Chief Financial Officer
	Liberty Mutual Insurance Company

	 	 	 	The Netherlands Insurance Company

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