Service Agreement Amendment
Agreement effective January 1, 1999, by and between Penn Independent
Corporation, 000 X. Xxxx Xxxx, Xxxxxxx, Xxxxxxxxxxxx, 00000 ("PIC") and
Penn-America Group, Inc., 000 X. Xxxx Xxxx, Xxxxxxx, Xxxxxxxxxxxx, 00000
("PAG").
WHEREAS, the parties hereto are parties to a Service Agreement dated
August 20, 1993, as most recently amended effective March 1, 1998 (the "Service
Agreement"), and
WHEREAS, the parties wish to amend the Service Agreement effective as
of the effective date of this Agreement.
NOW, THEREFORE, in consideration of the foregoing, and of the mutual
covenants and agreements contained herein, and intending to be legally bound,
the parties hereto agree that PAGI will pay to PIC a "monthly expense estimate",
as follows:
(1) Effective January 1, 1999 through Effective January 1, 1999 through
February 28, 1999, PAGI will pay to PIC: $225,000 per annum, or $18,750 per
month;
(2) Effective March 1, 1999 through September 30, 1999, PAGI will pay to PIC:
$200,000 per annum, or $16,700 (approx.) per month;
In accordance with paragraph 3 of the original Service Agreement dated
August 20, 1993, the parties agree to meet prior to September 30, 1999 to
conduct any review and make any adjustment necessary to the fee referenced in
paragraph 2 above. In the event of any disagreement between PIC and PAGI, the
parties shall in good faith attempt to resolve any dispute arising out of the
interpretation or implementation of the agreement and this Amendment.
The parties agree that the "monthly expense estimate" is based on: (a)
telephone, insurance and building rental; and, (b) expenses for the salaries of
Xxxxx Xxxxxxxx, Human Resources and office services and facilities management
expenses, as more fully set forth in the attachments hereto, which are
incorporated herein as though fully set forth at length.
IN WITNESS WHEREOF, the parties have entered into this Agreement as of
the date first above written.
PENN INDEPENDENT CORPORATION PENN-AMERICA GROUP, INC.
BY: /s/ Xxxxx X. Xxxxxxx BY: /s/ Xxxxxxxx Xxxxxxx
Xxxxx X. Xxxxxxx Xxxxxxxx Xxxxxxx