ADDENDUM No. 1 to the REINSURANCE AGREEMENT between NORTH POINTE INSURANCE COMPANY (“Company”) and MIDFIELD INSURANCE COMPANY (“Reinsurer”) Effective: January 1, 2007.

Exhibit 10.40

ADDENDUM No. 1
to the
REINSURANCE AGREEMENT
between
NORTH POINTE INSURANCE COMPANY
(“Company”)
and
MIDFIELD INSURANCE COMPANY
(“Reinsurer”)
Effective: January 1, 2007.

Effective 12:01 a.m., Eastern Standard Time, January 1, 2007, the following shall be added to the REINSURANCE AGREEMENT:

Section 19. Exclusions shall be added as follows:

THIS AGREEMENT DOES NOT COVER THE FOLLOWING INSURANCE COVERAGES;

	1.		Glass.
	2.		Crime.
	3.		Fidelity.
	4.		Forgery.

All other terms and conditions of the Agreement shall remain unchanged.

IN WITNESS HEREOF, the parties hereto have caused this Addendum No. 1 to be executed this the ___ day of February, in the year of 2007.

NORTH POINTE INSURANCE COMPANY

Company

By:

Title:

MIDFIELD INSURANCE COMPANY

Reinsurer

By:

Title:

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