EXHIBIT 10.7
[LETTERHEAD OF PLATINUN(TM)]
June 30, 2003
The St. Xxxx Companies, Inc.
000 Xxxxxxxxxx Xxxxxx
Xx. Xxxx, XX 00000
Attention: Xx. Xxxx Xxxxxxx
RE: MASTER SERVICES AGREEMENT - LETTER AGREEMENT
Gentlemen:
Reference is made to the Master Services Agreement, dated as of November 1,
2002, (the "Agreement") between The St. Xxxx Companies, Inc. ("St. Xxxx") and
Platinum Underwriters Holdings, Ltd. ("Platinum"). Capitalized terms used but
not defined herein have the meanings specified in the Agreement.
This letter confirms the agreement between St. Xxxx and Platinum to modify the
Agreement by (i) extending the Maximum Service Period for the Services provided
by St. Xxxx or its Post-closing Subsidiaries from June 30, 2003 until June 30,
2004; and (ii) revising the schedule of Services to be provided by St. Xxxx or
its Post-closing Subsidiaries.
The Agreement shall expire June 30, 2004, subject to the provisions of Section
1(c) of the Agreement. In addition, St. Xxxx or its Post-closing Subsidiaries
shall provide to Platinum or its Post-closing Subsidiaries each of the Services
specified on Schedule A (Revised) hereto, subject to the provisions of Section
1(f) of the Agreement. All other terms and conditions of the Agreement will
remain in full force and effect.
Sincerely,
PLATINUM UNDERWRITERS HOLDINGS, LTD.
By: /s/ Xxxxxxx X.X. Xxxxxxxx
-------------------------------------
Xxxxxxx X.X. Xxxxxxxx
President and Chief Executive Officer
ACKNOWLEDGED, ACCEPTED AND AGREED:
THE ST. XXXX COMPANIES, INC.
By: /s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx
Senior Vice President
SCHEDULE A (Revised)
1. Claim processing and payment for all business written on St.
Xxxx xxxxx and subject to the Quota Share Retrocession
Agreements (as such term is defined in the Formation and
Separation Agreement).
2. Billing and collection services for balances due to/from from
brokers and cedants for all business written on St. Xxxx xxxxx
and subject to the Quota Share Retrocession Agreements.
3. Processing, billing and collection services for all
retrocessional premium and loss inuring to the benefit of
Platinum for all business written on St. Xxxx xxxxx subject to
the Quota Share Retrocession Agreements.
4. Provision of historical underwriting data with respect to the
experience of the St. Xxxx Re division of St. Xxxx in format
to be prescribed by Platinum.
5. Provision of ongoing underwriting data with respect to the
business ceded to Platinum under the Quota Share Retrocession
Agreements.
6. Access to or the actual reserving triangles at a reserving
class level.
7. Accounting guidance for Non-traditional accounts before a
commitment is made by Platinum to write the business.
