Document:

Managing General Agency Agreement

 Exhibit 10.31 
 MANAGING GENERAL AGENCY AGREEMENT 
 Between 
 AMERICAN PHYSICIANS INSURANCE AGENCY, INC. 
 (hereinafter called “AGENT”)

 and 
 AMERICAN PHYSICIANS
INSURANCE EXCHANGE 
 (hereinafter called “COMPANY”) 
 Effective Date: May 29, 1996 
 Section 1.     AGENCY
APPOINTMENT 
  

	a.	COMPANY hereby appoints AGENT as its agent to perform the duties set forth herein and vests in AGENT full authority to accomplish, effect and execute such duties upon the terms and
conditions set forth below. The authority of AGENT shall be limited to the territory and the kinds of insurance specified in Addendum A. 

  

	b.	Term. This Agreement shall remain in effect unless terminated as provided by Section 6 of this Agreement. 

 Section 2.    AGENT’S RELATIONSHIP TO COMPANY 
 This Agreement is not a contract of employment and nothing herein contained shall be construed to create the relationship of employer and employee
between COMPANY and AGENT. AGENT is an independent contractor and shall be free to exercise judgment and discretion with regard to the conduct of business as agent for COMPANY. 
 Section 3.    AUTHORITY AND DUTIES OF AGENT 
  

	a.	Appointment of Producers. Subject to requirements imposed by law and the terms of this Agreement, AGENT has authority to have supervisory responsibility for local agency and
field operations of COMPANY in Texas including the appointment, termination and direction of local recording agents within Texas as well as determination of commissions.] 

  

	b.	Legal Compliance. AGENT shall comply in all respects with all applicable laws. 

  

	c.	Maintenance of Records. AGENT shall keep complete records and accounts of all transactions pertaining to agents appointed or terminated under this Agreement. Such records
shall be kept current and shall be readily identifiable. 

  

	d.	 Advertising. AGENT shall enter Agreements with local recording agents that provides that agents shall not insert any advertisement referring to COMPANY or
issue or cause to have issued any letter, circular, pamphlet or other publication or statement referring to 

	 	 
COMPANY, without the prior written consent of COMPANY. Such consent shall not be construed as any agreement by COMPANY to bear any part of the expense of
advertisement. 

  

	e.	Ownership of Printed Matter. It is expressly understood that any policies, forms and other supplies furnished to AGENT by COMPANY shall remain the property of COMPANY and
shall be returned to COMPANY promptly upon demand. It is expressly understood that any policies, forms and other supplies furnished to COMPANY by AGENT shall remain the property of AGENT and shall be returned to AGENT promptly on demand.

  

	f.	Expenses. COMPANY shall pay all marketing expenses in respect to the performance of AGENT’s duties under this Agreement, including but not limited to rentals,
transportation facilities, clerical expense, postage, advertising, or personal local license fees. AGENT shall be responsible for commissions to local recording agents. Unless otherwise specified in writing in advance by COMPANY, AGENT shall not
charge or commit COMPANY to any expense, agreement, payment, debt, or obligation other than the insurance expressly described herein which AGENT is authorized to write. 

 Section 4.    COMPENSATION 
 As full compensation for services rendered under this Agreement, AGENT agrees to accept and COMPANY agrees that agent is entitled to the amounts specified in Addendum B. 
 Section 5.    SUSPENSION OF AGENTS AUTHORITY 
 If AGENT is delinquent either in accounting for or payment of any funds due to COMPANY, or is otherwise in default under this Agreement, COMPANY may, by written notice to AGENT, suspend or otherwise limit AGENT’s
authority in whole or in part or may condition the exercise of such authority on any appropriate condition. 
 For the purposes of this Section, AGENT is not
delinquent because of routine differences in the accounting records of the AGENT and the COMPANY which are minor in amount and do not involve funds willfully withheld by the AGENT. 
 Upon the occurrence of any of the events described in Section 6(a), AGENT’S authority under this Agreement, including such authority and duties described in Section 3 shall automatically be suspended
and shall be terminated upon termination of this Agreement. 
 Section 6.    TERMINATION

  

	a.	Termination. The term of this Agreement shall expire and this Agreement shall terminate in accordance with subsection b. of this section upon the occurrence of any of the
following events: 

  

	 	1)	Upon the effective date of the suspension, revocation or termination of either party’s license by appropriate authority and after exhausting any appeals to which either party
is entitled. 

	 	2)	The insolvency of either party, the inability to pay debts as they mature, the making of an assignment for the benefit of creditors, the dissolution of either party, the appointment
of a receiver or liquidator for either party or for a substantial part of either party’s property, or the institution of bankruptcy, reorganization, arrangement, insolvency or similar proceedings by or against either party under the laws of any
jurisdiction. 

  

	 	3)	Misappropriation of funds or property of COMPANY or funds received for it by AGENT; the failure of AGENT to remit to COMPANY the funds due promptly upon demand; the commission by
AGENT of any fraud against COMPANY or any conduct injurious to COMPANY’s standing or good name. 

  

	 	4)	Misappropriation of funds or property of AGENT or funds received for it by COMPANY; the failure of COMPANY to remit to AGENT the funds due promptly upon demand; the commission by
COMPANY of any fraud against AGENT or any conduct injurious to AGENT’s standing or good name. 

  

	 	5)	Either party may terminate this Agreement at any time upon giving one hundred eighty (180) days written notice prior to the effective date of such termination.

 Section 7.    INDEMNIFICATION 
  

	a.	COMPANY agrees to indemnify, defend and hold AGENT harmless from and against any and all claims, suits, actions, liability, expense, losses as a result of AGENT acting in the course
and scope of its authority and responsibilities to COMPANY, provided such liability does not arise because of the gross negligence, bad faith, fraudulent intent or willful misfeasance of the AGENT or any of its employees. 

Section 8.    GENERAL PROVISIONS 
  

	a.	Assignment. Neither party shall assign, delegate, transfer, encumber or otherwise dispose of this Agreement, any interest therein, or any rights or obligations hereunder
without the prior written consent of the other party and any purported assignment, transfer, encumbrance or other disposition without such consent shall be void. Except that, the merger, consolidation or other corporate reorganization of COMPANY, or
the assignment, or other transfer of this Agreement to a subsidiary or affiliate of the COMPANY, shall not be deemed a violation of this subsection a. 

  

	b.	No Waiver. The failure of COMPANY or AGENT to insist on strict compliance with this Agreement, or to exercise any right or remedy hereunder, shall not constitute a waiver of
any rights contained herein nor estop the parties from thereafter demanding full and complete compliance therewith nor prevent the parties from exercising such remedy in the future. 

  

	c.	Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed duly given if delivered personally, by registered or
certified mail or by telefax to the party for whom it is intended at the following address or such other address as the recipient may designate from time to time. 

	d.	Full Agreement. This Agreement supersedes and makes null and void any and all previous agency agreements, whether written or oral, between COMPANY and AGENT with respect to
the type of business to be serviced hereunder and constitutes the full agreement between the parties. No amendment to this Agreement shall be valid unless in writing and signed by the parties. 

  

	e.	Severability. If any provision of this Agreement should be invalid under or in conflict with the laws of any state, this Agreement shall be deemed amended to comply with the
minimum requirements of such laws without affecting the remaining provisions of this Agreement; provided, however, if either party believes that the voiding of any provision hereof materially affects the whole Agreement, such party by written
notice, may terminate this Agreement forthwith. 

  

	f.	Choice of Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Texas. 

  

	g.	Third Parties. The provisions of this Agreement are for the sole benefit of the parties and shall not be enforceable for the benefit of any one who is not a party to this
Agreement, except as expressly provided herein. 

 IN WITNESS WHEREOF, the parties intending to be bound have caused this Agreement to be
effective this 29th day of May, 1996. 
  

									
	For AGENT:	 	 AMERICAN PHYSICIANS INSURANCE
                         AGENCY, INC.

					
		 		 		 	By:	 	 /s/ Jay R. Tidey

		 		 		 	Title:	 	 Treasurer

		
	For COMPANY:	 	AMERICAN PHYSICIANS INSURANCE EXCHANGE
					
		 		 		 	By:	 	 /s/ Duane Boyd

		 		 		 	Title:	 	 President

 ADDENDUM A 
 TO MANAGING GENERAL AGENCY AGREEMENT 
 Between 
 AMERICAN PHYSICIANS INSURANCE AGENCY, INC. 
 (“AGENT”) 
 and 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE

 (“COMPANY”) 
 Effective Date: May 29, 1996 
 The parties agree that: 
 The AGENT is authorized to be the managing agent for COMPANY for the following kind(s) of business: 
 All standard Medical Malpractice Professional Liability insurance for Texas health care providers and such other policies authorized in writing by the
COMPANY from time to time in any state where AGENT is properly licensed. 

 ADDENDUM B 
 TO MANAGING GENERAL AGENCY AGREEMENT 
 Between 
 AMERICAN PHYSICIANS INSURANCE AGENCY, INC., as AGENT 
 and 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE 
 (“COMPANY”) 
 Effective Date: May 29, 1996 
  

	1.	The parties agree that, for business described in Addendum A, AGENT shall be entitled a commission equal to 100% of the amounts of commissions paid to local recording agents,
solicitors, or producing agents appointed by AGENT. 

  

	2.	Commissions on any other business shall be determined on a case-by-case basis. 

 ADDENDUM C 
 TO MANAGING GENERAL AGENCY AGREEMENT 
 Between 
 AMERICAN PHYSICIANS INSURANCE AGENCY, INC. 
 (“AGENT”) 
 and 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE

 (“COMPANY”) 
 Dated
November 15, 1999 
 The parties agree that: 
 Section 6. TERMINATION is amended as follows: 
  

	 	a.	Termination. The term of this Agreement shall expire and this Agreement shall terminate upon the occurrence of any of the following events: 

  

	 	1)	Upon the effective date of the suspension, revocation or termination of either party’s license by appropriate authority and after exhausting any appeals to which either party
is entitled. 

  

	 	2)	The insolvency of either party, the inability to pay debts as they mature, the making of an assignment for the benefit of creditors, the dissolution of either party, the appointment
of a receiver or liquidator for either party or for a substantial part of either party’s property, or the institution of bankruptcy, reorganization, arrangement, insolvency or similar proceedings by or against either party under the laws of any
jurisdiction. 

  

	 	3)	Misappropriation of funds or property of COMPANY or funds received for it by AGENT; the failure of AGENT to remit to COMPANY the funds due promptly upon demand; the commission by
AGENT of any fraud against COMPANY or any conduct injurious to COMPANY’s standing or good name. 

  

	 	4)	Misappropriation of funds or property of AGENT or funds received for it by COMPANY; the failure of COMPANY to remit to AGENT the funds due promptly upon demand; the commission by
COMPANY of any fraud against AGENT or any conduct injurious to AGENT’s standing or good name. 

	 	5)	Either party may terminate this Agreement at any time upon giving one hundred eighty (180) days written notice prior to the effective date of such termination.

 MEMORANDUM 
 OF 
 AGREEMENT 
 This Agreement is by and between American Physicians Insurance Exchange (“API”) and American Physicians Insurance Agency, Inc. (“Agency”). 
 WHEREAS, API has a Reinsurance Agreement with Florida Physicians Insurance Company, Inc. (“FPIC”) whereby API in effect is responsible for
certain expenses incurred by FPIC since API receives a net premium; and 
 WHEREAS APS Facilities Management, Inc. (“APSFMI”), the
attorney-in-fact for API, has agreed to be responsible for 50% of all commissions paid to producers representing API; and 
 WHEREAS, Agency
receives commissions from FPIC for business reinsured by API; and 
 WHEREAS, the parties desire to clarify and continue the business
relationship between API and the Agency; 
 NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements contained
herein, API and Agency agree as follows: 
  

	 	1.	Agency will reimburse API on an annual basis an amount equal to the lesser of the following: 

  

	 	(a)	50% of the amount of commissions paid by Agency to producers relating to business reinsured by API from FPIC. 

  

	 	(b)	$375,000 less amounts due to API from APSFMI relating to commissions under paragraph III of the Management Agreement between API and APSFMI. 

 All amounts paid herein shall not be considered as commissions, but an amount to reflect the proper allocation of costs for continuation of the
relationship between the parties. 
  

	 	2.	This agreement shall remain in effect so long as the Managing General Agency Agreement between API, FPIC and Agency is effective and also as long as the Management Agreement between
API and APSFMI is in effect. 

 EXECUTED ON THE     [12th]     DAY OF NOVEMBER, 1998. 
  

									
	 AMERICAN PHYSICIANS
 INSURANCE AGENCY, INC.
	 		 	 AMERICAN PHYSICIANS
 INSURANCE EXCHANGE

					
	By:	 	 /s/ Duane Boyd
	 		 	 By:
	 	 /s/ Norris C. Knight, Jr., M.D.

									
	Title:	 	 President
	 		 	 Title:
	 	 Chairman – Board of DirectorsManagement Agreement of Attorney-in-Fact

 Exhibit 10.32 
 MANAGEMENT AGREEMENT OF ATTORNEY-IN-FACT 
 for 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE 
 THIS AGREEMENT entered into by and between
AMERICAN PHYSICIANS SERVICE CORPORATION (the “Attorney-in-Fact”) and AMERICAN PHYSICIANS INSURANCE EXCHANGE (the “Exchange”), with its principal place of business in Dallas, Dallas County, Texas; 
 W I T N E S S E T H: 
 WHEREAS,
AMERICAN PHYSICIANS INSURANCE EXCHANGE is a reciprocal insurance association organized pursuant to Chapter 19 of the Insurance Code of Texas of 1951, as amended, and is comprised of Subscribers who have entered into a “Subscribers Agreement and
Power of Attorney” with the Attorney-in-Fact; and 
 WHEREAS, the Attorney-in-Fact is a corporation incorporated under the laws of the
State of Texas; and 
 WHEREAS, the Attorney-in-Fact has filed an application for a Certificate of Authority for the AMERICAN PHYSICIANS
INSURANCE EXCHANGE with the Commissioner of Insurance of Texas; and 
 WHEREAS, AMERICAN PHYSICIANS INSURANCE EXCHANGE and the
Attorney-in-Fact desire to enter into this Agreement respecting the management of the Exchange; 
 NOW, THEREFORE, it is agreed by and
between the parties; 

 I 
 AUTHORITY OF ATTORNEY-IN-FACT 
 The Attorney-in-Fact is responsible for the general operation of the Exchange and is specifically
authorized to: 
 1) Solicit and receive applications and issue policies of insurance within the scope and nature authorized by the Board of
Directors of the Exchange. 
 2) Collect and receipt for premiums and maintain bank accounts for the deposit of funds for the Exchange.

 3) Provide all underwriting services for the issuance of policies of the Exchange. 
 4) Supervise appraisals of risks and engage, where necessary, independent appraisal services for such purposes. 
 5) Handle all insurance claims, including the payment, compromise of and denial thereof. Such handling shall also include supervision of adjustment of
claims, investigation of claims not requiring arbitration by the Board and supervision of the defense in the event of any lawsuit growing out of a claim. 
 6) Provide the required accounting and reporting services for the Exchange (including the annual reports to the State Board of Insurance); provide investment counseling to the Exchange. 
 7) Maintain an office in Dallas, Texas, and such other place or places as the Attorney-in-Fact may deem necessary for the operation of the business of
the Exchange. 
 II 
 ATTORNEY-IN-FACT’S OBLIGATIONS TO THE EXCHANGE 
 The Attorney-in-Fact shall carry out the authorities given it by the
Subscribers in a reasonable and prudent manner; and shall follow the instructions of the Board of Directors when 

 
the Board is acting within the powers given it under the By-Laws and shall give due consideration to the advices and wishes of the Board of Directors in
connection with the operational procedures of the Exchange, subject, however, to the uncertainties of the market, regulation by governmental agencies and all other risks and mistakes of judgment incident to managing and operating a business
enterprise. 
 III 
 LIABILITY OF
ATTORNEY-IN-FACT 
 The Attorney-in-Fact will be liable and responsible for the payment of administrative costs and expenses in connection
with the operation of the insurance business of the Exchange including the payment of rents and utilities for offices; the payment of salaries for all employees and officers of the Attorney-in-Fact; payment of expenses for telephone, postage,
supplies, books, stationery and advertising matter; and the payment of any acquisition of business costs incurred by the Attorney-in-Fact. 
 IV 
 LIABILITY OF THE EXCHANGE 
 The Exchange shall be responsible and obligated for all of the following: 
 1) All losses arising out of the policies of the
Exchange or amounts for which the Attorney-in-Fact has settled and compromised for any loss; any judgments against the Exchange arising out of the policies of the Exchange; any liabilities or judgments against the Exchange or the Attorney-in-Fact as
a result of the Attorney-in-Fact acting in the course and scope of its authority and responsibilities to the Exchange and subscribers provided such liability does not arise because of the gross negligence, bad faith, fraudulent intent or willful
misfeasance of the Attorney-in-Fact or any of its employees, all costs of adjustment for any losses arising or alleged to be arising under insurance 

 
written by the Exchange, including all costs of independent adjusters, appraisers, investigators, and attorneys, whether or not suit has been filed, as well
as any court costs in connection with any suit arising out of insurance coverage afforded or alleged to have been afforded by the Exchange; 
 2) All costs of printing policies, endorsements, and claim forms. 
 3) All audit, legal and filing fees and expenses. 

4) Taxes, fees or charges levied or assessed by any governmental agency by virtue of premiums earned or for any other reason on the insurance business
conducted by the Attorney-in-Fact on behalf of the Exchange; 
 5) All appraisal costs or the costs of investigation or analysis conducted by
independent parties with respect to the underwriting or related aspects of insurance business of the Exchange. (It is understood that the Exchange through a peer review committee selected by the chairman from among the Subscribers will customarily
conduct underwriting studies; however, the Attorney-in-Fact may, in its discretion, obtain an independent investigating agency to provide it with information with respect to a risk). 
 V 
 COMPENSATION OF ATTORNEY-IN-FACT 
 The Attorney-in-Fact shall be entitled to receive a management fee of twenty-two and one-half percent (22-1/2%) of the net earned premiums received on
the insurance business of the Exchange. Net earned premiums shall mean gross premiums earned less returns for cancellations or return premium endorsements without the deduction of any of the liabilities of the Exchange as described in Paragraph IV
above. The Attorney-in-Fact may withhold 20% of the net earned premiums. The balance of the management fee shall be reserved by the Exchange as an advance to the Exchange by the Attorney-in-Fact. 

 VI 
 REPAYMENT OF ADVANCES 
 The Exchange is liable for and shall repay to the Attorney-in-Fact any advances made or caused to be made
by the Attorney-in-Fact to the Exchange. Repayment of advances withheld from management fees shall commence on a month to month basis after accumulating to $50,000 and thereafter as funds become available after the Exchange has made provision for
capital and surplus, expenses and reserves as required by the Texas Insurance Code. The Exchange will repay to the Attorney-in-Fact the cost of attorney fees and any other reasonable expenses incurred in organizing the Exchange. 
 VII 
 TERM 
 This Agreement shall commence on the 1st day of October, 1975, or the date of the receipt by the Attorney-in-Fact of a Certificate of Authority for the Exchange, if sooner, and shall be renewed automatically from year to year unless cancelled by terms and
conditions set out herein. The Attorney-in-Fact may elect to terminate this Agreement by sixty (60) days written notice to the members of the Board of Directors of the Exchange, which termination shall take effect upon the selection and
qualification of a successor Attorney-in-Fact pursuant to the By-Laws of the Exchange, which selection and qualification shall be pursued and brought about as soon as possible. A majority of the Subscribers of the Exchange may terminate this
Agreement upon immediate written notice to the Attorney-in-Fact solely by reason of the Attorney-in-Fact having been adjudged in any suit, action or proceeding liable for its own gross negligence, bad faith, fraudulent intent or willful misfeasance.
In the event the Subscribers terminate this Agreement, the Subscribers agree that all management fees then due the Attorney-in-Fact, whether reserved by the Exchange or not, shall become fully earned by the Attorney-in-Fact and 

 
shall, be paid to the Attorney-in-Fact as soon as practicable but in any event within one year from the date of termination. This Agreement may be cancelled
by mutual consent of the parties hereto. 
 In the event the Exchange does not select a new and successor Attorney-in-Fact at the conclusion
of the term of this Agreement and in the further event that a new management agreement is not agreed upon by and between the Exchange and the new Attorney-in-Fact, it is agreed that this management agreement, in all of its terms and conditions,
shall be deemed renewed on a year to year basis thereafter until a successor Attorney-in-Fact is selected and qualified to assume the role of the Attorney-in-Fact for this Exchange at the end of any such annual renewal of this management agreement.

 VIII 
 ACCESS TO RECORDS

 The Attorney-in-Fact shall afford the Board of Directors an opportunity to inspect at any reasonable times all records of the
Attorney-in-Fact insofar as they relate to the business of the Exchange. 
 EXECUTED this the 13th day of August, 1975. 
  

	
	 TEMPORARY BOARD OF DIRECTORS OF
 AMERICAN PHYSICIANS
INSURANCE EXCHANGE

	
	 /s/ Kenneth G. Burton, M.D.

	
	 /s/ Jack R. Chandler, M.D.

	
	 /s/ Charles S. Arnold, M. D.

	
	 /s/ David Berchelmann, M. D.

			
	
	   /s/ William Peche, M. D.

	
	   /s/ D. T. McMahon, Jr. M. D.

	
	  
	
	 AMERICAN PHYSICIANS SERVICE CORPORATION

		
	 By
	 	 /s/ Jack Murphy, President

		 	

 RATIFIED AND ACCEPTED as being the Management Agreement agreed upon and acquiesced in by all
Subscribers hereto on the date hereof. 
  

					
		 		 	 FIRST PERMANENT BOARD OF
 DIRECTORS OF AMERICAN PHYSICIANS
 INSURANCE EXCHANGE

			
	   /s/ Kenneth G. Burton, M. D.
	 		 	   /s/ D. T. McMahon, Jr. M. D.

			
	   /s/ H. A. Wiebelhaus
	 		 	   /s/ David Berchelmann, M. D.

			
	   	 		 	   /s/ Bernard M. Barrett, Jr., M.D.

			
	   	 		 	   /s/ Frank S. Martin, Jr.

			
	   	 		 	   /s/ J Royston Brown

			
	 	 		 	   /s/ Jack R. Chandler

			
	 	 		 	   /s/ Charles S. Arnold, M. D.

 ADDENDUM TO AGREEMENT 
 This Addendum is entered into as of the 21st day of October, 1983 between American Physicians Insurance Exchange, a reciprocal insurance company (the “Company”), and APS Facilities Management, Inc., a Texas
Corporation (“APSFM”), and specifically amends that certain Agreement entered into as of October 1, 1975 between the parties in the following particulars: 
 (1) All reference made to American Physicians Service Corporation shall be amended to APS Facilities Management, Inc., and all reference made to APSC shall be amended to APSFM. 
 This Addendum is executed to amend the above mentioned and its intention is to modify the said original Agreement in the manner indicated herein, but to otherwise
continue the Agreement, as so amended, in full force and effect. 
  

			
	Dated:	 	October 21, 1983
	
	 AMERICAN PHYSICIANS INSURANCE EXCHANGE

		
	By:	 	 /s/ Jack R. Chandler, M.D.
  

		 	 Jack R. Chandler, M.D., Chairman of the Board

	
	
	 APS FACILITIES MANAGEMENT, INC.

		
	By:	 	 /s/ Roger Detrich
  

		 	 Roger Detrich, President

 ADDENDUM NO. 2 
 MANAGEMENT AGREEMENT OF ATTORNEY-IN-FACT 
 FOR 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE 
 This Addendum
is entered into to be effective as of the 8th day of December, 1995, between American Physicians Insurance Exchange (“the Exchange”) and APS Facilities Management, Inc. (“APSFMI, the Attorney-in-Fact”) and specifically amends
that certain Management Agreement entered into as of October 1, 1975, and also as amended on October 21, 1983, in the following particulars: 
  

	1.	The principal place of business of the Exchange and the Attorney-in-Fact is in Austin, Travis County, Texas. 

  

	2.	Paragraph I (7) (AUTHORITY OF ATTORNEY-IN-FACT) is amended to read as follows: 

 “(7) Maintain a principal and home office in Texas and offices elsewhere, at such place or places as the Attorney-in-Fact deems necessary for the operation of the business of the Exchange.” 
  

	3.	Paragraph I (AUTHORITY OF ATTORNEY-IN-FACT) is amended by adding a new subsection (8) to read as follows: 

 “(8) All services relating to any reinsurance contracts for or by the Exchange including, but not limited to, selecting reinsurance carriers and
brokers; negotiating the terms and conditions of reinsurance contracts; negotiating the rates to be paid or received for any reinsurance; providing all underwriting, claims and other services required for the administration of any reinsurance;
determining if any renewals, commutation or other changes in the reinsurance for the Exchange is necessary; and, taking such action as the Attorney-in-Fact deems necessary to resolve or handle any disputes involving any contract of reinsurance. All
reinsurance agreements entered into by the Attorney-in-Fact shall be presented to and reviewed by the Board of Directors on an annual basis.” 
  

	4.	Paragraph I (AUTHORITY OF ATTORNEY-IN-FACT) is amended by adding a new subsection (9) to read as follows: 

 “(9) Perform all acts necessary for the appointment, termination and supervision, of any agents, including local recording agents, for the
Exchange.” 
  

	5.	Paragraph I (AUTHORITY OF ATTORNEY-IN-FACT) is amended by adding a new subsection (10) to read as follows: 

 “(10) The Attorney-in-Fact is authorized to provide all services relating to any joint marketing arrangements with other insurance carriers
including, but not 

 
limited to, arrangements when the Attorney-in-Fact or its affiliates are directly involved in marketing of insurance products for other carriers. Any
services relating to any joint marketing arrangements shall be approved in advance by the Board of Directors.” 
  

	6.	Paragraph III (LIABILITY OF ATTORNEY-IN-FACT) is amended to read as follows: 

 “The Attorney-in-Fact will be liable and responsible for the payment of administrative costs and expenses in connection with the operation of the insurance business of the Exchange including the payment of rents
and utilities for offices; the payment of salaries for all employees and officers of the Attorney-in-Fact; payment of expenses for telephone, postage, supplies, books, stationery and advertising matter; payment of 50% of commissions paid to agents
appointed for the Exchange; and the payment of any other non-commission acquisition of business costs incurred by the Attorney-in-Fact.” 
  

	7.	Paragraph IV (3) (LIABILITY OF THE EXCHANGE) is amended to read as follows: 

 “(3) All audit, legal, actuarial, investment, regulatory electronic data base and related expenses, reinsurance contract and related expenses; and any filing fees, expenses or other related expenses.”

  

	8.	Paragraph IV (LIABILITY OF THE EXCHANGE) is amended by adding a new subsection (6) to read as follows: 

  

	 	“(6)	The following additional costs and expenses: 

  

	 	(a)	50% of all commissions paid to agents relating to Exchange business; 

  

	 	(b)	Any salary benefits or other compensation and all other costs and expenses associated with the positions of Medical Director, Secretary to the Exchange Board, or other special
positions approved or created by the Exchange’s Board of Directors.” 

  

	9.	Paragraph V (COMPENSATION OF ATTORNEY-IN-FACT) is amended to read as follows: 

 V. 
 COMPENSATION OF ATTORNEY-IN-FACT 
 “The attorney-in-Fact shall be entitled to receive a management fee paid monthly equal to 13-1/2% of the net earned premium on the insurance
business of the Exchange plus a contingent amount equal to 50% of the Exchange’s statutory income before Federal income taxes and this contingent amount. The total management fees in a calendar year shall not exceed the greater of $5,400,000 or
16-1/2% of the net earned premium. Net earned premiums shall mean gross premiums earned less returns for cancellation or return 

 
premium endorsements without the deduction of any of the liabilities of the Exchange as directed in Paragraph IV above.” 
 EXECUTED this 8th day of December, 1995. 
  

			
	 AMERICAN PHYSICIANS INSURANCE EXCHANGE

	(The Exchange)
	
	/s/ John H. Meador, M.D.
	 By:
	 	 /s/ John H. Meador, M.D.

	 Title:
	 	 Chairman of the Board

	
	 APS FACILITIES MANAGEMENT, INC.
                     (Attorney-in-Fact)

	
	/s/ Duane K. Boyd, Jr.
	 By:
	 	 /s/ Duane K. Boyd, Jr.

	 Title:
	 	 President

 ADDENDUM NO. 3 
 MANAGEMENT AGREEMENT OF ATTORNEY-IN-FACT 
 FOR 
 AMERICAN PHYSICIANS INSURANCE EXCHANGE 
 This addendum
is entered into to be effective as of the 2nd day of March, 2001, between American Physicians Insurance Exchange
(“The Exchange”) and APS Facilities Management, Inc. (“APSFMI, Attorney-in-Fact”) and specifically amends that certain Management Agreement entered into as of October 1, 1975, and also as amended on October 21, 1983 and
December 8, 1995, in the following particulars: 
  

	1.	Paragraph VII (Term) is amended to read as follows: 

 This
Agreement shall commence on the 1st day of October, 1975, or the date of the receipt by the Attorney-in-Fact of a
Certificate of Authority for the Exchange, if sooner, and shall be renewed automatically from year to year unless cancelled by terms and conditions set out herein. The Attorney-in-Fact may elect to terminate this Agreement by eighteen
(18) months written notice to the members of the Board of Directors of the Exchange, which termination shall take effect upon the selection and qualification of a successor Attorney-in-Fact pursuant to the By-Laws of the Exchange, which
selection and qualification shall be pursued and brought about as soon as possible. A majority of the Subscribers of the Exchange may terminate this Agreement upon immediate written notice to the Attorney-in-Fact solely by reason of the
Attorney-in-Fact having been adjudged in any suit, action or proceeding liable for its own gross negligence, bad faith, fraudulent intent or willful misfeasance. In the event the Subscribers terminate this Agreement, the Subscribers agree that all
management fees then due the Attorney-in-Fact, whether reserved by the Exchange or not, shall become fully earned by the Attorney-in-Fact and shall be paid to the Attorney-in-Fact as soon as practicable but in any event within one year from the date
of termination. This Agreement may be cancelled by mutual consent of the parties hereto. 
 In the event the Exchange does not select a new
and successor Attorney-in-Fact at the conclusion of the term of this Agreement and in the further event that a new management agreement is not agreed upon by and between the Exchange and the new Attorney-in-Fact, it is agreed that this management
agreement, in all of its terms and conditions, shall be deemed renewed on a year to year basis thereafter until a successor Attorney-in-Fact is selected and qualified to assume the role of the Attorney-in-Fact for this Exchange at the end of any
such annual renewal of this management agreement. 

 Executed this 2nd day of March, 2001. 
  

			
	 AMERICAN PHYSICIANS INSURANCE EXCHANGE

	                             “The Exchange”

	
	 /s/ Norris C. Knight, Jr., M.D.

	 By:
	 	 Norris C. Knight, Jr., M.D.

	 Title:
	 	   Chairman of the Board

	
	 APS FACILITIES MANAGEMENT, INC.

	                     “Attorney-in-Fact”

	
	 /s/ Maury L. Magids

	 By:
	 	 Maury L. Magids

	 Title:
	 	   President & COO

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