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                                                                  EXHIBIT: 10.20


                        INVESTMENT MANAGEMENT AGREEMENT

TO: HAMBLIN WATSA INVESTMENT COUNSEL LTD.
    95 Wellington Street West
    Suite 802
    Toronto, Ontario
    M5J 2N7

                                          DATE: February 16, 2001

     1).  We authorize you to manage on a continuous basis investment accounts
(the "Accounts") on our behalf on the terms and conditions set out in this
agreement.

     2).  You shall manage the Accounts in accordance with the investment
objectives and guidelines attached as Schedule A which we may amend from time to
time.

     3).  Subject to Section 2 above, you shall manage the Accounts in our name
and you are hereby authorized to take such action for the Accounts as you, in
your sole discretion, may consider appropriate for the operation of the Accounts
including, without limitation, the power to buy, sell and exchange and otherwise
deal in all securities which may at any time form part of the Account and to
invest, in securities selected by you, all funds contained in, paid to or
derived from the operation of, the Accounts, except to the extent that you are
otherwise instructed in writing by us.

     4).  The securities and funds of the Account have been deposited with and
shall be held by CITIBANK [the "Custodian(s)"] pursuant to an agreement which we
have entered into with the Custodian. We have instructed the Custodian to
promptly follow your directions at all times and to provide you with all such
information concerning the Accounts as you may from time to time require in
connection with your management of the Accounts, including without limitation,
copies of relevant monthly statements.

     5).  Provided you have used reasonable care and diligence you shall not be
responsible for any damage, loss, cost or other expense sustained in the
operation of the Accounts or relating in any manner to the carrying out of your
duties under this agreement. We agree that you shall be entitled to assume that
any information communicated by us or the Custodian to you is accurate and
complete, and that in making investment decisions you shall be entitled to rely
on publicly available information or on information which you believe to have
been provided to you in good faith, in both cases barring actual knowledge by
you to the contrary.

     6).  You shall be entitled to such fees, payable quarterly in arrears, for
your management of the Accounts as you may specify from time to time. We
acknowledge receipt of a copy of your current fee schedule, attached as Schedule
B, and you agree to give us thirty (30) days prior written notice of any change
in such schedule.

     7).  The nature and timing of your reporting to us on the status of the
Accounts shall be as mutually agreed from time to time.

     8).  We acknowledge receipt of a copy of policies that you have established
to ensure that investment opportunities are allocated fairly among your
discretionary investment accounts and we confirm that these policies, until
revised by you, will apply to the account.

     9).  Either party hereto may terminate this agreement without penalty by
giving the other party at least thirty (30) days advance written notice of its
desire to terminate the same. In the event that the day upon which this
agreement is so terminated is a day other than the first day of a calendar
quarter, the fees payable in accordance with paragraph 6 for such quarter shall
be pro-rated and shall be determined having regard to the market value of the
Accounts based upon the most recent financial report which has been delivered to
you by the Custodian.

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     10).  All notices and communications to either party to this agreement
shall be in writing and shall be deemed to have been sufficiently given if
signed by or on behalf of the party giving the notice and either delivered
personally or sent by prepaid registered mail addressed to such party at the
address of such party indicated herein. Any such notice or communication shall
be deemed to have been received by any such party if delivered, on the date of
delivery, or if sent by prepaid registered mail on the fourth business day
following mailing thereof to the party to whom addressed. For such purpose, no
day during which there shall be a strike or other occurrence interfering with
normal mail service shall be considered a business day.

     11).  This agreement shall enure to the benefit of and shall be binding
upon the parties hereto and our respective successors. This agreement may not be
assigned by you.

     12).  This agreement, when executed, shall replace all earlier agreements
between us in connection with your management of our managed investment account
on a discretionary basis, without prejudice to any action taken under any such
agreements. We acknowledge that we have read and understood this agreement and
that we have received a copy of the same.

     13).  This agreement shall be governed by English Law.

     This agreement may only be amended by written agreement signed by the
parties and may not be assigned by either party.
                                          Newline Underwriting Management
                                          Limited
                                          NAME (Please Print)

                                          ADDRESS
                                          BY: /s/ J.R. Micklem
                                            ------------------------------------
                                              AUTHORIZED SIGNATURE
                                                        J.R. Micklem
                                                NAME OF AUTHORIZED SIGNATORY

We accept the Account and the foregoing.
DATED AT TORONTO, as of the 16th

DAY OF February, 2001

HAMBLIN WATSA INVESTMENT COUNSEL LTD.
BY: /s/ Brian Bradstreet
    --------------------------------------------------------
AUTHORIZED OFFICER
Brian Bradstreet
---------------------------------------------------------
NAME OF AUTHORIZED OFFICER

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February 16, 2001

                     HAMBLIN WATSA INVESTMENT COUNSEL LTD.
                 ALLOCATION OF INVESTMENT OPPORTUNITIES POLICY

     In the interest of fairness to all our investment management clients, and
in accordance with the subsection 115(1) of the Regulation under the Securities
Act (Ontario), Hamblin Watsa Investment Counsel Ltd. shall ensure that all
investment opportunities are allocated fairly among all our clients.

     In general, this will be accomplished by allocating purchase and sale
opportunities on a basis proportionate to the size of each client's investment
portfolio, giving full regard to present positions held, special requirements,
and any guidelines or constraints imposed by individual clients.

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                                   SCHEDULE A

INVESTMENT OBJECTIVES

1.   Invest for the long term always providing sufficient liquidity for the
     payment of claims and other policy obligations.

2.   Ensure preservation of invested capital for policy holder protection.

3.   Invest in accordance with insurance regulatory guidelines.

INVESTMENT GUIDELINES

1.   APPROACH

     All investments are to be made using the value approach by investing in
     companies at prices below their underlying long term values to protect
     capital from loss and earn income over time and provide operating income as
     needed.

     With regard to equities, no attempt is made to forecast the economy or the
     stock market. The manager will attempt to identify financially sound
     companies with good potential profitability which are selling at large
     discounts to their intrinsic value. Appropriate measures of low prices may
     consist of some or all of the following characteristics: low price earnings
     ratios, high dividend yields, significant discounts to book value, and free
     cash flow. Downside protection is obtained by seeking a margin of safety in
     terms of a sound financial position and a low price in relation to
     intrinsic value. Appropriate measures of financial integrity which are
     regularly monitored, include debt/equity ratios, financial leverage, asset
     turnover, profit margin, return on equity, and interest coverage.

     As a result of this bargain hunting approach, it is anticipated that
     purchases will be made when economic and issue-specific conditions are less
     than ideal and sentiment is uncertain or negative. Conversely, it is
     expected that gains will be realized when issue-specific factors are
     positive and sentiment is buoyant. The investment time horizon is one
     business cycle (approximately 3-5 years).

     As regards bonds, the approach is similar. No attempt is made to forecast
     the economy or interest rates. The manager will attempt to purchase
     attractively priced bonds offering yields better than Treasury bonds with
     maturities of 10 years or less that are of sound quality, i.e. whose
     obligations are expected to be fully met as they come due. We do not regard
     rating services as being unimpeachable sources for assessing credit quality
     any more than we would regard a broker's recommendation on a stock as being
     necessarily correct. In any form of investment research and evaluation,
     there is no substitute for the reasoned judgement of the investment
     committee and its managers.

2.   LIQUIDITY

     An adequate cash flow shall be maintained to ensure that claims and
     operating expenses are paid on a timely basis. An operating cash position
     is to be maintained at appropriate levels and will be managed by the
     insurance operating company in accordance with the approved list for
     investments as determined from time to time by the Investment Committee.
     These securities will be managed by Newline Underwriting Management Limited
     as part of the Treasury function and currently are restricted primarily to
     Treasury and Agency securities of the U.S. government.

3.   REGULATORY

     Insurance regulations will be complied with.

4.   DIVERSIFICATION

     The portfolio is to be invested in a wide range of securities of different
     issuers operating in different industries and jurisdictions in order to
     minimize risk.

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5.   PRUDENT PERSON RULE

     Prudent investment standards are considered in the overall context of an
     investment portfolio and how a prudent person would invest another person's
     money without undue risk of loss or impairment and with a reasonable
     expectation of fair return.

STRATEGY

1.   MAINTAIN ADEQUATE LIQUIDITY

     A detailed review of portfolio liquidity is undertaken on a monthly basis.
     This liquidity analysis determines how much of each portfolio can be
     converted to cash in a given time period. Each company determines its
     liquidity requirements and the liquidity of the portfolio must match the
     requirement.

2.   ASSET ALLOCATION

     The asset allocation will be determined by the Portfolio Manager and will
     include short term investments that will generate appropriate cash flows
     and long term investments in stocks, bonds, debentures and money market
     investments, both domestic and foreign. The allocation will be in
     compliance with regulatory guidelines and should meet policy liabilities.

3.   FOREIGN EXCHANGE RISK

     Any foreign currency investments and exposures would normally be hedged via
     the use of forward foreign exchange contracts and/or currency options or
     preferably by a natural hedge with foreign pay liabilities of the Insurance
     Company. Unhedged foreign investments will be limited to 10% of invested
     assets at cost. Unhedged exposure above this amount must be approved by the
     Investment Committee.

4.   INTEREST RATE RISK

     Interest rate risk will be minimized primarily through investment in fixed
     income securities with maturities less than ten years. While there are no
     specific duration/maturity limits for convertible securities, these issues
     are included in the total fixed income duration/term measure. Maximum fixed
     income portfolio duration is limited to the equivalent of a ten year term
     to maturity Treasury security.

INVESTMENT POLICY MIX

     The Investment Committee has established the following exposure ranges for
various asset mix classes:

<TABLE>
<CAPTION>
                                                                 RANGE
                                                                --------
<S>                                                             <C>
Equities....................................................       0-25%
Fixed Income................................................      0-100%
Cash........................................................    Residual
Total.......................................................        100%
                                                                ========
</TABLE>

     Within the Fixed Income portfolio, the Taxable/Tax Exempt mix will be
determined relative to the consolidated tax position of Newline Underwriting
Management Limited and the relative investment attractiveness of available tax
exempt securities.

     The Investment Committee will control the total asset mix and will give
performance objectives to the Investment Manager regarding the assets managed.

     No investments in equities shall be made without the prior approval of the
Investment Committee.

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RETURN EXPECTATIONS

     Total asset mix policy is expected on an annual basis to result in returns
better than the Consumer Price Index plus 3% over a ten year period before the
disbursement of investment management fees. However, in any one year the annual
return may be significantly above or below this expectation.

INVESTMENT OBJECTIVES OF THE FUND MANAGER

     The Manager, subject to regulatory and company imposed constraints
mentioned elsewhere, expects to provide additional returns to those returns that
would be earned by the alternative of passively managing a surrogate market
index.

     Performance of the Fund Manager is expected to result in the following
returns:

<TABLE>
<S>                                <C>
All Equities                       S&P 500 + 1% point
Fixed Income:
  Taxable Bonds                    Merrill Lynch Intermediate Treasury Index +
                                   0.25%
  Tax-Advantaged Bonds             Lehman Brothers 3 & 5 Year State GO Indexes
</TABLE>

     Measured over four (4) year moving periods.

AGGREGATE INVESTMENT LIMITS, PERMITTED INVESTMENT CATEGORIES AND
INDIVIDUAL INVESTMENT LIMITS

PERMITTED INVESTMENT CATEGORIES WITHIN ASSET CLASSES

<TABLE>
<S>                                <C>
Cash:                              Cash on hand, demand deposits, treasury bills, short-term
                                   notes and bankers' acceptances, term deposits and guaranteed
                                   investment certificates.
Equity:                            Common shares, rights and warrants.
Fixed Income:                      Bonds, debentures, preferred shares, including those
                                   convertible into common shares.
</TABLE>

     All of the above may be either U.S. domestic, Canadian, or other foreign
investments.

     Convertible preferred securities will be classified as equities if the
preferred dividend is not being paid.

     Private placement issues in public companies are allowed.

INVESTMENT CONSTRAINTS

     All investments will be made in accordance with all applicable legislation
including all applicable Lloyds rules.

     No investments shall be made in securities of Fairfax or related parties of
Fairfax without the prior approval of the Investment Committee.

INDIVIDUAL INVESTMENT LIMITS

     Any combination of investments in any one corporate issuer will be limited
to a maximum of 5% of admitted assets. Exposure beyond 5% will require approval
of the Investment Committee.

QUALITY CONSTRAINTS

     The Investment Manager may invest in the permitted investment categories
listed in the Investment Objectives and Policy Statement subject to the
following quality constraints:

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     Investments in money market instruments (less than or equal to 1 year term)
     will be limited to those included on the list approved by the Company. This
     list will include money market instruments of the U.S. Treasury, Agencies
     of the U.S. government, and as a minimum commercial paper rated A1 or
     higher by Moody's and rated P1 or higher by Standard & Poor's.

     Investments in bonds and preferreds will be limited by quality tier as
     follows:

LIMITS AS A % OF THE FIXED INCOME PORTFOLIO

<TABLE>
<CAPTION>
BOND RATING  % OF TOTAL   MIN./MAX.
-----------  ----------   ---------
<S>          <C>          <C>
A or better         65%        Min.
BBB                 35%        Max.
BB,B                10%        Max.
C,D                  0%
</TABLE>

     The above limits are subject to adjustment to conform with applicable
     regulatory requirements.

     Limits are determined on a cost basis and include convertible securities.

     Downgrades will be taken into account when making new investments but will
     not necessarily result in the sale of existing positions.

     Securities un-rated by the public rating agencies must be rated by the
     Investment Manager and included as part of the categories above for the
     purposes of determining overall exposure by quality tier.

     Any exceptions to the above must be approved by the Investment Committee.

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PROHIBITED INVESTMENTS

     No loans will be made in any of the investment portfolios.

     No Real Estate will be purchased without Investment Committee approval.

     No Mortgages on real estate will be purchased without Investment Committee
approval. The exceptions to this are obligations issued by an agency of the U.S.
Government, or by U.S. domiciled corporations that are issued as part of a
registered public offering that also meet the minimum quality tier requirements.

FOREIGN INVESTMENT LIMITS

     Foreign Securities may be purchased in compliance with established
regulatory guidelines and with the policy on foreign exchange risk outlined
herein.

     Foreign investments must be in the same kinds of securities and investments
as Newline Underwriting Management Limited is normally allowed.

OTHER

     Derivative securities may be purchased up to 2% of the portfolios cost at
book. Use of derivative investments is infrequent and only for hedging purposes.

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                             INVESTMENT MANAGEMENT
                                  FEE SCHEDULE

     Investment management fees are comprised of two parts:
                            (A). The Base Fee Amount
                                      and
                         (B). The Incentive Fee Amount

(A) THE BASE FEE AMOUNT

     1)    As described in Part 6 on the Investment Management Agreement, fees
           will be payable quarterly in arrears.

     2)    After the end of each calendar quarter, Hamblin Watsa Investment
           Counsel Ltd. shall submit its investment management charges in
           accordance with the schedule below.

     3)    The charges are on a calendar year basis. They will be calculated at
           the end of each calendar quarter based upon the average of the market
           value of the funds at the close of business for the three (3)
           preceding months.

<TABLE>
<CAPTION>
    4) MARKET VALUE                                                 CHARGE
    <S>                                                             <C>
          On Total Market Value                                      .10%
</TABLE>

(B) THE INCENTIVE FEE AMOUNT

     The incentive fee amount relates to the investment management of equity
     securities only.

<TABLE>
    <S>                                <C>
    Annual Base Fee:                   a) If performance equals or exceeds benchmark, base fee is
                                       unchanged from current fee.
                                       b) If performance is less than benchmark, base fee is 90% of
                                       current fee.
    Maximum Fee:                       1.75% (including base).
    Benchmark:                         S&P 500 + 200 basis points.
    Incentive Fee:                     Continuous rate of 10 basis point for every 100 basis points
                                       of outperforming the benchmark. (Incentive fee is in
                                       addition to base fee).
    Basis of Calculation:              Payable annually based on calendar year results. Not earned
                                       or paid unless results since inception (net of all fees)
                                       exceed benchmark return.
    Inception Date:                    , 2001
</TABLE>

(C) MAXIMUM INVESTMENT MANAGEMENT FEE

     Notwithstanding the foregoing, the maximum investment management fee
     payable in any calendar year will be .25% of the Total Market Value (as
     calculated in (A) 4) above); provided that any investment management fee
     not payable in any calendar year as a result of the restriction in the
     preceding sentence will be carried over to a succeeding calendar year, but
     the total investment management fee payable in any such calendar year,
     including any carry-over payment, shall be limited as provided by the
     preceding sentence.

                                       A-6