exhibit 10. 2 addendum no. 1 to master agreement ( hereinafter “ agreement ” ) dated the 4th day of april, 2006 by and between tower group, inc., a delaware corporation ( “ tgi ” ), tower insurance company of new york ( “ ticny ” ), a new york corporation, and tower national insurance company ( “ tnic ” ) a massachusetts corporation, ( collectively “ tower ” ) and castlepoint holdings, ltd. ( “ cph ” ), a bermuda exempted corporation, and castlepoint management corp., ( “ cpm ” ), a delaware corporation ( collectively “ castlepoint ” ). together tgi and cph are referred to as the “ parties ”. recitals whereas, tgi and cph have concluded that it is in their best interests to prepare an addendum number 1 ( “ addendum ” ) to the agreement to provide : a. a revision to each of the applicable existing and proposed intercompany agreements to make ticny the sole tgi owned company that is a participant to the various pooling and reinsurance agreements, in view of tower ’ s planned acquisition of additional operating companies ; and b. clarification on the parties ’ intentions regarding mutual annual termination provisions added, at the recommendation of the new york insurance department, to the three quota share reinsurance agreements between ticny, tnic and castlepoint reinsurance company, ltd. ( “ cpre ” ) after the agreement was executed april 4, 2006 ; and c. an adjustment to the amount ceded under the brokerage business quota share reinsurance agreement, and revised procedures surrounding how the amount reinsured under this agreement is adjusted ; and d. adjustments to the traditional program business quota share reinsurance agreement to eliminate the provision for a sliding ceding commission based on loss ratio and replace it with a sharing of expenses and losses, revise the amount of business that may be ceded and the amount of business that will be ceded by tower to cpre, and revise procedures surrounding how the amount reinsured under this agreement is adjusted and allow for the termination of the traditional program business quota share reinsurance agreement when the traditional program business pool is operational ; and e. an acknowledgement that the three pooling agreements initially contemplated by the agreement will, at the recommendation of the new york insurance department, be separated and reconstituted as ( i ) three pooling agreements and ( ii ) three pool