Document:

exv10w6

Exhibit
10.6

SECOND AMENDMENT

TO THE

AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT

     This amendment (“Amendment”) is made and entered into as of June 10, 2009 by and between Risk
Transfer Holdings, Inc. (“RTH”) and Specialty Underwriters’ Alliance, Inc. and its wholly owned
property and casualty insurance subsidiary, SUA Insurance Company (collectively, the “Company”),
and amends the AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT (“Agreement”) entered into by the
parties on JUNE 10, 2005. Any terms defined in the Agreement and used herein shall have the same
meaning in this Amendment as in the Agreement. In the event that any provision of this Amendment
and any provision of the Agreement are inconsistent or conflicting, the inconsistent or conflicting
provision of this Amendment shall be and constitute an amendment of the Agreement and shall
control, but only to the extent that such provision is inconsistent or conflicting with the
Agreement. Any capitalized terms not defined herein shall be defined as in the Agreement.

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

Section 7 shall be deleted in its entirety and replaced with the following:

“Unless otherwise agreed to by the parties in writing, the Purchaser shall not sell,
assign, transfer, pledge, hypothecate, mortgage or dispose of, by gift or otherwise, or in
any way encumber, any shares of Class B Stock owned by the Purchaser, except for exchanges
and repurchases in compliance with Section 4.”

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

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

	 	 
	 
	By:  	/s/ Daniel A. Cacchione
 
	Name:  	Daniel A. Cacchione 
	Title:  	Senior Vice President, Chief Underwriting Officer 
	 

RISK TRANSFER HOLDINGS, INC.

	 	 
	 
	By:  	/s/ Paul R. Hughes
 
	Name:  	Paul R. Hughes 
	Title:  	Chief Executive Officerexv10w7

Exhibit 10.7

Partner Agent

Assignment and Assumption Agreement

     This Partner Agent Assignment and Assumption Agreement (the “Agreement”) is made and entered
into as of June 10, 2009 by and between Risk Transfer Holdings, Inc., to include all related
entities, affiliates and subsidiaries contemplated within the Amended and Restated SUA Insurance
Company Partner Agent Program Agreement (collectively, “RTH”), Risk Transfer Programs, LLC (“RTP”)
and SUA Insurance Company (the “Company”).

     WHEREAS, RTH wishes to transfer to RTP the rights, authority and obligations as Partner
Agent, as defined by the Amended and Restated SUA Insurance Company Partner Agent Program
Agreement (the “Partner Agent Agreement”) dated June 10, 2009 and entered into by the Company and
RTH;

     NOW, THEREFORE, in consideration of the mutual agreements and covenants set forth herein and
in accordance with Section IX.D. of the Partner Agent Agreement, the parties hereto, intending to
be legally bound hereby, agree as follows:

1.   RTH hereby transfers and assigns all the rights, authority, duties and obligations set forth and contained within the Partner Agent Agreement to RTP.

2.   RTP hereby assumes all the rights, authority, duties and obligations as Partner
Agent under the Partner Agent Agreement, and also agrees to be fully bound by the terms
and conditions set forth within the Partner Agent Agreement.

3.   The Company hereby agrees to the terms of this Agreement, recognizes and
approves this assignment, pursuant to the terms and conditions of the Partner Agent
Agreement, and hereby relieves and fully releases and discharges RTH of and from any
and all duties or obligations contemplated within or arising from the Partner Agent
Agreement.

[Remainder of
page left intentionally blank]

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized representatives of the parties hereto as of the date written above.

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

	 	 
	 
	By:  	/s/ Daniel A. Cacchione
 	 
	Name:  	Daniel A. Cacchione  
	Title:  	Senior Vice President, Chief Underwriting Officer 
	 

RISK TRANSFER HOLDINGS, INC.

	 	 
	 
	By:  	/s/ Paul R. Hughes
 
	Name:  	Paul R. Hughes  
	Title:  	Chief Executive Officer 
	 

Risk Transfer Programs, LLC

	 	 
	 
	By:  	/s/ Paul R. Hughes
 
	Name:  	Paul R. Hughes  
	Title:  	Chief Executive Officerexv10w8

Exhibit 10.8

Securities Purchase

Assignment and Assumption Agreement

     This Securities Purchase Assignment and Assumption Agreement (the “Agreement”) is made and
entered into as of June 10, 2009 by and between Risk Transfer Holdings, Inc. (“RTH”), Risk Transfer
Programs, LLC (“RTP”) and Specialty Underwriters’ Alliance, Inc. (the “Company”).

     WHEREAS, RTH wishes to transfer to RTP the rights, authority and obligations as Partner
Agent, as defined by the Amended and Restated SUA Insurance Company Partner Agent Program
Agreement (the “Partner Agent Agreement”) dated June 10, 2009 and entered into by the Company and
RTH;

     WHEREAS, in connection with the Partner Agent Agreement, RTH entered into an Amended and
Restated Securities Purchase Agreement with SUA Insurance Company dated June 10, 2005, as amended
(the “Securities Purchase Agreement”), pursuant to which RTH purchased 131,014 shares of Class B
common stock, par value $0.01 per share (the “Class B Shares”), for $1 million;

     WHEREAS, it is the policy of the Company to require each of its Partner Agents to have an
equity investment in the Company;

     NOW, THEREFORE, RTH intends to transfer to RTP 131,014 Class B Shares, and in consideration
of the mutual agreements and covenants set forth herein and in accordance with Section 9(b) of the
Securities Purchase Agreement, the parties hereto, intending to be legally bound hereby, agree as
follows:

1.   RTH hereby transfers and assigns all its rights, authority and obligations as

Purchaser as set forth and contained in the Securities Purchase Agreement.

2.   RTP hereby assumes all the rights, authority and obligations of RTH under the
Securities Purchase Agreement as if RTP was the Purchaser as such term is defined in the
Securities Purchase Agreement, and also agrees to be fully bound by the terms and
conditions set forth in the Securities Purchase Agreement.

3.   The Company hereby acknowledges and agrees pursuant to Section 7 of the
Securities Purchase Agreement to the transfer of 131,014 Class B Shares from RTH to
RTP.

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     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
duly authorized representatives of the parties hereto as of the date written above.

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

	 	 
	 
	By:  	/s/ Daniel A. Cacchione
 
	Name:  	Daniel A. Cacchione  
	Title:  	Senior Vice President, Chief Underwriting Officer 
	 

RISK TRANSFER HOLDINGS, INC.

	 	 
	 
	By:  	/s/ Paul R. Hughes
 
	Name:  	Paul R. Hughes  
	Title:  	Chief Executive Officer 
	 

RISK TRANSFER PROGRAMS, LLC

	 	 
	 
	By:  	/s/ Paul R. Hughes
 
	Name:  	Paul R. Hughes  
	Title:  	Chief Executive Officerexv10w9

Exhibit 10.9

AMENDMENT NO. 2

TO THE

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

PARTNER AGENT PROGRAM AGREEMENT

     This amendment (“Amendment”) is made and entered into as of June 11, 2009 by and between
Specialty Risk Solutions, LLC (“Partner Agent”) and Specialty Underwriters’ Alliance, Inc. and its
wholly owned subsidiary SUA Insurance Company (collectively, the “Company”), and amends the Partner
Agent Program Agreement (“Agreement”) entered into by the parties on May 11, 2005, as amended. Any
terms defined in the Agreement and used herein shall have the same meaning in this Amendment as in
the Agreement. In the event that any provision of this Amendment and any provision of the Agreement
are inconsistent or conflicting, the inconsistent or conflicting provision of this Amendment shall
be and constitute an amendment of the Agreement and shall control, but only to the extent that such
provision is inconsistent or conflicting with the Agreement. Any capitalized terms not defined
herein shall be defined as in the Agreement.

     Now, therefore, in accordance with Section IX.D. of the Agreement and in consideration of the
mutual agreements and covenants hereinafter set forth, the parties wish to amend the Agreement as
follows:

	1.	 	Lines five through seven, beginning with “The parties” and ending with “as follows:,” shall be
deleted in their entirety and replaced with the following:

The parties hereto agree to develop and administer an insurance program (the
“Program”) as described in Exhibit A attached hereto, as well as the Company
Guidelines (as defined below). This Agreement pertains only to that Program business,
with the Company and the Partner Agent agreeing as follows:

	2.	 	Section I. A. shall be deleted in its entirety, leaving Section I.A.1 through I.A.6 unaltered,
and replaced with the following:

Partner Agent’s authority is subject to the terms of this Agreement and Company’s
Program description, underwriting guidelines, system templates, service standards,
form and rate and other filings, and authority limits provided by Company to Partner
Agent (“Company Guidelines”). Company appoints Partner Agent as exclusive
Partner Agent for ten (10) years for the Program from the Effective Date within the
territory specified in the Company Guidelines solely for the following purposes:

	3.	 	Section II. B. shall be deleted in its entirety and replaced with the following:

The Program will be mutually exclusive unless otherwise stated in this Agreement.
Partner Agent will be allowed to complete existing obligations under insurance
policies with other insurance carriers for the Program. Unless otherwise specifically
stated in this Agreement, Company will not accept business encompassed within the
Program from any entity other than Partner Agent during the term of this Agreement.
Partner Agent shall exclusively represent Company and shall not represent any other
insurance company or similar entity in relation to the Program; provided, however,
that Partner Agent may write business for other insurance carriers if Partner Agent
notifies Company of a particular insured’s unwillingness to bind a policy with
Company, requests permission from Company to place the insurance with another carrier
and Company provides approval, which shall not be unreasonably withheld, to Partner
Agent to write such insurance. In the event that a conflict exists as to whether
Partner Agent is authorized to represent an existing or prospective policyholder,
Company may honor the policyholder’s written producer of record designation signed by
the policyholder. Notwithstanding the foregoing, Company shall be under no obligation
to honor a written producer of record designation from a policyholder before accepting
business from a designated Partner Agent, and Company’s determination of which agent
of Company represents Company with regard to a particular policyholder shall be final
and binding.

	4.	 	Partner Agent’s mailing address for notice pursuant to Section VIII.F. shall be deleted and
replaced with the following:

Specialty Risk Solutions, LLC

20 North Wacker Drive, Suite 3000

Chicago, IL 60606

Attention: Scott H. Keller, Managing Member

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	5.	 	The following provision shall be added under Section IX. General Provisions as Section IX.L.:

Partner Agent shall not undergo a Change in Control, unless Partner Agent provides
Company sixty (60) days notice of such Change in Control. “Change in Control” shall
mean (i) any sale, lease, exchange or other transfer of all or substantially all of
the property and assets of the Partner Agent to a non-affiliated third party; (ii) any
merger or consolidation with a non-affiliated third party to which the Partner Agent
is a party and as a result of which the holders of the voting securities of the
Partner Agent immediately prior thereto own less than a majority of the outstanding
voting securities of the surviving entity immediately following such transaction; or
(iii) any instance when any person, other than the current owner of 50% or more of the
voting securities, shall beneficially own securities of the Partner Agent representing
50% or more of the combined voting power of the voting securities of the Partner Agent
then outstanding. For purposes of this section, “voting securities” shall mean
securities, the holders of which are ordinarily, in the absence of contingencies,
entitled to elect the corporate directors (or persons performing similar functions).

	6.	 	Exhibit A shall be deleted in its entirety and replaced with Exhibit A-2, as attached.

	7.	 	Exhibit B shall be deleted in its entirety and replaced with Exhibit B-2, as attached.
Exhibit B-2 shall be used for all profit sharing calculations beginning May 11, 2010.

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

	 	 	 	 
	SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

SUA INSURANCE COMPANY

 	 
	By:  	/s/ Daniel A. Cacchione
 	 
	 	Name:  	Daniel A. Cacchione  	 
	 	Title:  	Senior Vice President and
Chief Underwriting Officer 	 
	 

	 	 	 	 
	SPECIALTY RISK SOLUTIONS, LLC

 	 
	By:  	/s/ Scott Keller
 	 
	 	Name:  	Scott Keller 	 
	 	Title:  	Managing Member 	 

2

 

	 	 	 	 	 

EXHIBIT A-2

COMMISSION SCHEDULE

	A.	 	Except as otherwise provided in this Commission Schedule, Partner Agent’s Commission shall be
as follows:

	 	 	 	 	 	 	 
	Program Description	 	Line of Business	 	Target Rate of Commission
	Public Entity for Educational

Institutions and Municipalities

including Non-Profit and

Pooled Entities

	 	All Casualty lines of

business including Liability,

Auto, Workers’ Compensation,

Wrongful Acts

	 	 	15
	%

	B.	 	The rates of Commission provided in this Schedule do not relate to the following types of
business:

	 	1.	 	Business which Company determines is specially rated, specially classified,
or specially
reinsured;

	 	2.	 	Business written subject to a participating plan;

	 	3.	 	Business placed through assigned risks, fair plans, pools, or
other risk-sharing associations.

Commission rates for all such business shall be negotiated on an individual policy basis
and agreed by Company in writing.

	C.	 	Commissions different than provided herein may be agreed to in writing between Partner
Agent and Company, and such agreement shall supercede this Commission Schedule.

3

 

EXHIBIT B-2

PROFIT SHARING SCHEDULE

     The Profit Sharing Due to Partner Agent will be calculated using the following Tables:

Table I

Annual Profit Share

Profit Sharing Year [ ]

	 	 	 	 	 	 	 
	Premium
	 	 	 	 	 	 
	1.
	 	Eligible Earned Premium before write off for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	2.
	 	Premium Written Off	 	$	 	 
	 
	 	 	 	 	 
	3.
	 	Eligible Earned Premium 
(Line 1 minus Line 2)	 	$	 	 
	 
	 	 	 	 	 
	Expenses
	 	 	 	 	 	 
	4.
	 	Losses and ALAE Incurred for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	5.
	 	TPA Claims Fee for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	6.
	 	Claims Charge for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	7.
	 	IBNR Charge for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	8.
	 	Commissions Incurred for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	9.
	 	Taxes, Licenses and Fees for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	10.
	 	Operating Charge	 	$	 	 
	 
	 	 	 	 	 
	11.
	 	Dividends Incurred for Profit Sharing Year	 	$	 	 
	 
	 	 	 	 	 
	12.
	 	Expense Total (Sum of Lines 4, 5, 6, 7, 8, 9, 10 and 11)	 	$	 	 
	 
	 	 	 	 	 
	Profit Sharing Year Result	 	 	 	 
	13.
	 	Profit Sharing Year Result

(Line 3 minus line 12) 
(Can be negative)	 	$	 	 
	 
	 	 	 	 	 
	14.
	 	Profit Sharing Factor	 	 	 	%
	 
	 	 	 	 	 
	15.
	 	Profit to be Shared (Line 13 times Line 14)	 	$	 	 
	 
	 	 	 	 	 
	16.
	 	Payout Factor	 	 	 	%
	 
	 	 	 	 	 
	17.
	 	Result (Line 15 times Line 16)

(Can be Negative)	 	$	 	 
	 
	 	 	 	 	 

Based
on this Table, the Partner Agent’s Combined Ratio is
    % (line 12 divided by line 3). The
maximum Profit Sharing due the Partner Agent will be limited to 5% of Eligible Earned Premium per
Profit Sharing Year.

     The sum of Commission and Profit Share due shall not exceed twenty-two percent (22%) for any
Profit Sharing Year.

4

 

LEGEND

Table
I

	 	 	 
	Line 1.

	 	Eligible Earned Premium shall mean direct premium earned for Profit Sharing Year which
relates to Eligible Business less premium ceded (less ceding commission received) for
reinsurance.
	 
	 	 
	Line 2.

	 	Premium Written Off shall include any premium due Company which Company has charged off as
uncollectible for the Profit Sharing Year.
	 
	 	 
	Line 4.

	 	Losses and ALAE Incurred shall be direct losses and expenses incurred (paid plus case
reserves) by Company on claims reported for the Profit Sharing Year relating to Eligible
Business, excluding unallocated loss adjustment expense, plus any extra contractual or bad
faith payments relating to Eligible Business less recoveries from Ceded Treaty and
Facultative Reinsurance specifically related to eligible business.
	 
	 	 
	Line 5.

	 	TPA Claims Fee shall be actual fees incurred by the Company on behalf of the Partner
Agent for the current Profit Sharing Year.
	 
	 	 
	Line 6.

	 	Claims Charge shall be a designated percentage determined by Company based on unallocated
loss adjustment expense for the current Profit Sharing Year times Net Eligible Earned
Premium.
	 
	 	 
	Line 7.

	 	IBNR Charge shall be determined solely by the Company and shall include a provision for
the reserve for Losses and ALAE Incurred but not reported during the Profit Sharing Year,
which reserve shall include development on losses and ALAE already reported to Company. The
IBNR calculation will take into consideration the specific lines and classes of business
written by the Program Agent.
	 
	 	 
	Line 8.

	 	Commissions shall include the direct commissions and policy fees (if included in Eligible
Earned Premium) incurred by Company for the Profit Sharing Year, relating to Eligible
Business. Additionally, Company shall add to such total any amounts or expenses of Partner
Agent which Company agrees to reimburse, assume, or share.
	 
	 	 
	Line 9.

	 	Taxes and Assessments shall include any loss based or premium based assessments and any
expenses relating thereto, and premium taxes, boards, bureaus, and any miscellaneous taxes
including insurance department licenses and fees, relating to Eligible Business allocated by
Company to Eligible Earned Premium including but not limited to residual market, fair plan or
guaranty association assessments.
	 
	 	 
	Line 10.

	 	Operating Charge shall be a designated percentage for the current Profit Sharing Year
times Net Eligible Earned Premium. Operating Charge shall be determined solely at Company’s
discretion and shall be based on the operating expenses of Company not included in any of the
line items described herein.
	 
	 	 
	Line 11.

	 	Dividends Incurred shall include all dividends incurred (paid plus an estimate of accrued
but not paid) for the Profit Sharing Year by Company under Eligible Business.
	 
	 	 
	Line 15.

	 	Profit Sharing Factor shall be 50%. A minimum total Eligible Written Premium of twenty
million dollars ($20,000,000) and minimum program Eligible Written Premium of five million
dollars ($5,000,000) for each program must be achieved during the Profit Sharing Year to be
paid out under the profit sharing calculation. The profit sharing calculation will be
completed regardless of whether Partner Agent meets its minimum requirements.

5

 

	 	 	 
	Line 16.

	 	Payout Factor shall be calculated according to the following chart:

PROFIT SHARING AGREEMENT

PAYOUT FACTORS

	 	 	 	 	 
	 	 	5 Years	 
	1st Valuation
	 	 	10	%
	2nd Valuation
	 	 	25	%
	3rd Valuation
	 	 	45	%
	4th Valuation
	 	 	70	%
	5th Valuation
	 	 	100	%

6

 

Timing of Calculation of Profit Sharing Due

	 	 	 
	A.

	 	If Partner Agent meets the Minimum Eligible Written Premium requirements for a Profit Sharing
Year, Company shall calculate Profit Sharing Due to Partner Agent for the Profit Sharing
Period based on Company’s records. Such calculation shall be provided to Partner Agent sixty (60)
days after each Valuation Date.
	 
	 	 
	B.

	 	Each Profit Sharing Year’s calculation will include a separate re-calculation of each prior
Profit Sharing Year. Re-calculations for each prior Profit Sharing Year will be as of the current
Valuation Date, and will be made utilizing the formula set forth in Table I. A summary of
calculations made for each Profit Sharing Year will be entered on current Profit Sharing section of Table II.
	 
	 	 
	C.

	 	Provided that all premium or other amounts due Company shall have been received by Company, within sixty (60)
days after completion of the calculation of Profit Sharing Due, Company shall pay
the amount of Profit Sharing Due to Partner Agent for the Profit Sharing Period as shown in Table II.
	 
	 	 
	D.

	 	In the event of a deficit in a Profit Sharing Year, the deficit will offset past or future
surplus until fully absorbed up to and including the fifth Valuation Date of such deficit. In order of how deficits
will be applied and how payout will be determined, deficits offset the earliest surpluses first including subsequent development of those surpluses.

LEGEND

Other Defined Terms used in this Agreement

	 	 	 
	A.

	 	The Initial Profit Sharing Year of this Agreement shall be from January 1, 2005 to December
31, 2005.
	 
	 	 
	B.

	 	The Initial Profit Sharing Year of this Agreement shall be from the Effective Date to
December 31st following the Effective Date (“Initial December Date”). Notwithstanding the foregoing, the
Initial Profit Sharing Year of this Agreement shall be from the Effective Date to December 31st
following the Initial December Date if the Effective Date is between April 1 and December 31st.
Subsequent Profit Sharing Years, if any, shall be January 1st to December 31st.
	 
	 	 
	C.

	 	Valuation Date shall mean June 30th of each year. Except as otherwise set forth
below, Company shall continue providing calculations for each Profit Sharing Year through the June 30th of each
successive year following termination of this Agreement, the Final Profit Sharing Year, or until the
parties mutually agree in writing to close the calculations for a particular Profit Sharing Year or Profit Sharing Years.

Term and Termination

This profit sharing schedule will terminate upon the effective date of termination of this
Agreement. The Final Profit Sharing Year under this Agreement will be the Profit Sharing Period
ending as of the effective date of termination.

In the event this Agreement is terminated prior to the fifth anniversary of the Effective Date by
the Partner Agent, Company shall provide no further Profit Sharing calculations. In the event that
this Agreement is terminated prior to the fifth anniversary of the Effective Date by Company in
accordance with Section VIII (D), Company shall provide no further Profit Sharing calculations.

7

 

General

No charge, offset, credit, or deduction for any Profit Sharing which is or may be due Partner Agent
shall be made or claimed by Partner Agent in accounts submitted to Company under this Agreement or
any other agreement. Profit Sharing Due shall be payable only by Company’s check. Company may
combine or offset any amount owed to Partner Agent by Company hereunder against any amount owed to
Company by Partner Agent under any other agreement between the parties.

8

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