Exhibit 10.7(ii)
Service Agreement Amendment
Agreement effective March 1, 1996, 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 January 1, 1996 (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 Exhibit A of the Service Agreement is amended to
read in its entirety as set forth on Exhibit A attached hereto and incorporated
herein by reference.
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/ Xxxxxx X. Xxxx BY: /s/ Xxx X. Xxxxxxxx
-------------------------- ------------------------------
Exhibit A
Penn-Independent Employees:
Percent of Annual Total Annual
Annual Salary Charged to Salary Charged
Name Salary PAG to PAG
Xxxxx Xxxxxxxx $256,000 25% $64,000
Xxxxx Xxxxxx 80,000 7% 6,000
Xxxxxx X. Xxxx 194,000 7% 14,000
Executive Support 34,000 9% 3,000
Human Resources 209,000 35% 73,000
Mail & Supplies 58,000 35% 20,000
Maintenance 130,000 42% 55,000
-----------
$235,000
Penn Independent Allocated Overhead and Administrative Support:
Total Annual
Percent of Annual Cost Charged to
Description Annual Cost Cost Charged to PAG PAG
Office $10,000 20% $2,000
Professional 25,000 20% 5,000
Telephone 20,000 20% 4,000
Insurance 11,000 18% 2,000
Travel & Entertain. 10,000 20% 2,000
Rent 100,000 20% 20,000
Miscellaneous 10,000 20% 2,000
------------
$37,000
Retirement Packages: $53,000
============
Total Annualized Charges to PAG $325,000
Monthly Charges to PAG $27,083
Service Agreement Amendment
Agreement effective January 1, 1996, 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 January 1, 1995 (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 Exhibit A of the Service Agreement is amended to
read in its entirety as set forth on Exhibit A attached hereto and incorporated
herein by reference.
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/ Xxxxxx X. Xxxx BY: /s/ Xxxxxxxx Xxxxxxx
------------------------ --------------------
Exhibit A
Penn-Independent Employees:
Percent of Annual Total
Annual Salary Charged to Annual Salary
Name Salary PAG Charged to PAG
Xxxxx Xxxxxxxx $256,000 64% $164,000
Xxxxx Xxxxxx 80,000 7% 6,000
Xxxxxx X. Xxxx 194,000 7% 14,000
Executive Support 34,000 22.5% 8,000
Human Resources 209,000 35% 73,000
Mail & Supplies 58,000 35% 20,000
Maintenance 130,000 42% 55,000
----------
$340,000
Penn Independent Allocated Overhead and Administrative Support:
Percent of Annual Total Annual
Cost Charged Cost Charged to
Description Annual Cost to PAG PAG
Office $10,000 20% $2,000
Professional 25,000 20% 5,000
Telephone 20,000 20% 4,000
Insurance 11,000 18% 2,000
Travel & Entertain. 10,000 20% 2,000
Rent 100,000 20% 20,000
Miscellaneous 10,000 20% 2,000
---------
$37,000
Retirement Packages: $53,000
=========
Total Annualized Charges to PAG $430,000
Monthly Charges to PAG $35,833
