<PAGE>

                                                                    Exhibit 10.4
                             EMPLOYMENT AGREEMENT


          THIS EMPLOYMENT AGREEMENT is dated as of December 15, 1999 (the
"Effective Date"), and is entered into between Maximus Capital Holdings, Ltd.,
(the "Company") and Philip R. Kruse ("Executive").

          WHEREAS,  the Company desires to secure the employment of Executive in
accordance herewith; and

          WHEREAS,  Executive  is willing to be  employed  by the Company on the
terms and conditions set forth herein; and

          WHEREAS, the parties now desire to enter into this Agreement setting
forth the terms and conditions of the employment relationship of Executive with
the Company;

          NOW, THEREFORE, in consideration of the mutual premises, covenants and
agreements set forth below, it is hereby agreed as follows:

                                  ARTICLE I.

                    EMPLOYMENT, DUTIES AND RESPONSIBILITIES
                    ---------------------------------------

     1.1  Employment.
          ----------

               (a) The Company shall employ Executive as Executive
Vice-President, Annuity & Life Operations of the Company. Executive agrees to
devote his full business time, efforts and energies to the performance of his
duties hereunder. Executive's principal office location and the executive
offices of the Company shall be in Bermuda. Notwithstanding the foregoing, to
the extent the following do not materially interfere with the performance of
Executive's duties hereunder, Executive shall be permitted to (i) manage his
personal affairs; (ii) be involved with charitable and professional activities
and (iii) with the consent of the Board, serve on the board of directors of
non-charitable entities.

               (b) Executive agrees that, so long as he is employed by the
Company, he will not own, directly or indirectly, any controlling or substantial
stock or other beneficial interest in any business enterprise which is engaged
in, or competitive with, any business engaged in by the Company. Notwithstanding
the foregoing, Executive may own, directly or indirectly, up to three percent
(3%) of the outstanding capital stock or debt of any business having a class of
capital stock that is traded on any national stock exchange or on the
over-the-counter market and upon approval of the Board or as otherwise set forth
on Exhibit B attached hereto on the Effective Date, may be a passive investor in
investment entities so long as his interest therein is less than one percent
(1%).
<PAGE>

     1.2  Duties and  Responsibilities.  Executive  shall  have such  authority,
          -----------------------------
duties and responsibilities as are customary and consistent with his position
and such other duties and responsibilities as are determined from time to time
by the Company and commensurate with his position.

                                  ARTICLE II.

                                      TERM
                                      ----

     2.1  Term. The term of employment under this Agreement (the "Initial Term")
          ----
shall commence on December 15, 1999 (the "Commencement Date") and subject to
earlier termination under Section 5, continue for a period of four (4) years;
provided, that, commencing on the fourth anniversary of the Commencement Date,
--------  ----
the Initial Term shall automatically renew for successive one year periods (the
"Additional Term"), subject to earlier termination under Section 5, unless
either party provides written notice of non-renewal to the other at least ninety
(90) days prior to the end of the Initial Term or the then Additional Term. The
Initial Term and any Additional Term shall be referred to under this Agreement
as the "Term". Upon termination of the Term or as soon thereafter as possible,
howsoever terminated, Executive shall deliver to the Company and each affiliate
of Company, if applicable, letters of resignation from directorships,
officerships and any appointment as a representative. This obligation shall
survive termination of the Executive's employment.

                                  ARTICLE III.

                                  COMPENSATION
                                  ------------

     3.1  Salary,  Bonuses and Benefits.  As compensation and  consideration for
          -----------------------------
the performance by Executive of his obligations under this Agreement, Executive
shall be entitled to the following (subject, in each case, to the provisions of
Article V hereof):

               (a) The Company shall pay Executive a base salary during the
Term, payable in accordance with the normal payment procedures of the Company as
it may exist from time to time and subject to such withholdings and other normal
employee deductions as may be required by law, at the rate of $325,000 (U.S.)
per annum. The Company shall periodically review such compensation for increase
in its sole discretion. Once increased, the base salary shall not be reduced.
The base salary as increased from time to time shall be referred to herein as
"Base Salary".

               (b) Executive shall participate during the Term in such pension,
life insurance, health, disability and major medical insurance plans, and in
such other employee benefit plans and programs and fringes and perquisites, for
the benefit of the employees of the Company, as may be maintained from time to
time during the Term, in each case to the extent and in the manner available to
other senior executives or officers of the Company and subject to the terms and
provisions of such plans or programs. In addition Executive shall receive an
automobile allowance, the payment of one (1) country club initiation fee and
payment of dues not to exceed $3,000 (U.S.) annually, and the payment of a
housing allowance not to exceed $8,000 (U.S.) per month.

                                        2
<PAGE>

               (c) For each calendar year that begins during the Term (the
"Bonus Year"), the Company shall pay a bonus to Executive based on
pre-established performance goals established by the Board with a target bonus
of 75% of Base Salary and a range from 0% to 200% of Base Salary (the "Bonus");
provided, that, for the 1999 calendar year, such Bonus shall be at least equal
--------  ----
to $50,000 (U.S.).  Such  performance  criteria shall be weighted 70% on Company
performance and 30% on Executive's performance.

               (d) Executive shall be entitled to four weeks of paid vacation in
accordance with the Company policy as it may exist from time to time (but not
necessarily consecutive vacation weeks) during each year of the Term.

               (e) Executive shall be reimbursed for up to four (4) business
class airline tickets per year each of Executive and his immediate family to
return to the United States.

               (f) (i) Upon the closing (or as soon as administratively feasible
thereafter) of the financing of the Company currently contemplated by the
private placement (the "Private Placement"), the Company shall issue to
Executive warrants to purchase 100,000 shares of the Company's class A common
stock (the "Common Stock"), consistent with the terms set forth in this
paragraph (f). The term of the warrants shall be the same as that of Moore
Holdings II, L.L.C. and Capital Z Investments, L.P. (the "Investors"). The
warrant shall vest 20% on the date of grant and an additional 20% on each of the
first, second, third and fourth anniversaries of the date of grant; provided,
                                                                    --------
that, Executive is then employed. The exercise price per share shall be equal to
----
the per share price paid by the  Original  Investors  (as defined  below) in the
Private Placement.

               (ii) In the event Executive's employment is terminated by the
Company with Cause or by Executive without Good Reason (both as defined below),
all unvested warrants shall immediately terminate and any vested warrants shall
remain exercisable for thirty (30) days following such termination; provided,
                                                                    --------
that,  Executive  shall have at least thirty (30)  business  days  following any
----
underwriter's lock-up period imposed prior to or during such thirty (30) day
period to exercise his vested warrants, but in no event beyond the term.

               (iii) In the event of Executive's death, or if Executive's
employment under this Agreement is terminated by the Company for Disability (as
defined below), or without Cause or by Executive for Good Reason or the Company
fails to renew Executive's work permit in Bermuda and his employment terminates
pursuant to Section 5.7 hereof, all of the warrants that would have vested
within twelve (12) months of such termination shall immediately become vested,
and all other unvested warrants shall immediately terminate.

                                        3
<PAGE>

               If a termination of employment under this subparagraph (iii)
occurs prior to an Initial Public Offering (as defined below), vested warrants
shall remain exercisable for two (2) years following such termination; provided,
                                                                       --------
that, if an Initial Public  Offering  should occur  following such  termination,
----
then such warrants shall remain exercisable for the lessor of six (6) months
(one (1) year in the event of death or Disability) following such Initial Public
Offering or the remaining exercise period, but in no event beyond the term of
the warrants.

               If a termination of employment under this subparagraph (iii)
occurs after an Initial Public Offering, all vested warrants shall remain
exercisable for six (6) months (one (1) year in the event of death or
Disability) following such termination, but in no event beyond the term of the
warrant. In the event of any termination of employment under this subparagraph
(iii), Executive shall have at least thirty (30) business days following any
underwriter's lock-up period imposed prior to or during any warrant exercise
period to exercise his vested warrants.

               (iv) In the event of a Change in Control (as defined below), all
unvested warrants shall become immediately vested.

               For purposes of this Agreement, prior to an Initial Public
Offering, a Change in Control shall mean (i) a sale, assignment, transfer or
other disposition of securities in one or more related transactions where the
Investors and other shareholders of the Company as of the Closing (together with
the Investors, the "Original Investors") cease to beneficially own 51% or more
of the total combined voting power of the Company's outstanding securities; (ii)
a merger, consolidation, reorganization or similar corporate event in which the
Original Investors cease to beneficially own 51% or more of the total combined
voting power of the Company's outstanding securities or 51% or more of the total
combined voting power of the resultant corporation or entity if the Company does
not survive such transaction; (iii) the sale, transfer, assignment or other
disposition of all or substantially all of the Company's property, assets or
business to one or more unrelated parties. Notwithstanding the foregoing, no
Change in Control shall be deemed to occur as a result of an Initial Public
Offering of the Company or any necessary actions taken, as determined by the
Board, in order to effectuate such Initial Public Offering.

               Following an Initial Public Offering, the term Change in Control
shall mean (i) a sale, assignment, transfer or other disposition of securities
in one or more related transactions where the shareholders immediately prior to
such transaction cease to beneficially own 51% or more of the total combined
voting power of the Company's outstanding securities; (ii) a merger,
consolidation, reorganization or similar corporate event in which the
shareholders immediately prior to such transaction cease to beneficially own 51%
or more of the total combined voting power of the Company's outstanding
securities or 51% or more of the total combined voting power of the resultant
corporation or entity if the Company does not survive such transaction; or (iii)
the sale, transfer, assignment or other disposition of all or substantially all
of the Company's property, assets or business to one or more unrelated parties.

                                        4
<PAGE>

               The term Initial Public Offering shall mean an initial public
offering of the Company's Common Stock pursuant to a registration statement
(other than on Form S-8 or successor forms) filed with, and declared effective
by, the Securities and Exchange Commission.

               (v) Upon an Initial Public Offering and provided Executive is
then employed, Executive may receive an additional warrant at the discretion of
the Compensation Committee of the Board of Directors of the Company; provided,
                                                                     --------
that,  such award shall be equal to at least 10,000 shares of Common Stock to be
----
sold in the Initial Public Offering of the Company upon completion of the
Initial Public Offering. The exercise price of such warrants shall be the same
as the exercise price for the Investors. The warrants shall have terms and
conditions consistent with those set forth above in subparagraphs (i) through
(iv), above.

               (g) The Company shall pay Executive a signing bonus (the "Signing
Bonus") of $50,000 on the Commencement Date and an additional $200,000 upon the
later of (i) December 22, 1999 or (ii) the closing of the Private Placement (the
"Closing").

               (h) Upon the Closing, and provided Executive is then employed,
the Company shall make available to Executive, a loan not to exceed $750,000
(U.S.), to be used to purchase shares of Company Common Stock ("Purchased
Shares") in the Private Placement at the Closing, with a price per share paid by
the President and CEO of the Company in the Private Placement at the Closing,
such loan to be governed by the terms and conditions as outlined in additional
documentation and not inconsistent with the terms hereof (the "Loan").

               The Loan shall be five years with no amortization. The interest
rate on each Loan shall be the applicable federal rate (as defined in Section
1274(d) of the Internal Revenue Code of 1986, as amended (the "Code")) (the
"AFR") in effect on the date of each Loan, accrued and payable annually. The
Loan shall be 100% fully recourse against Executive and shall be fully secured
by the Purchased Shares. Following an Initial Public Offering and except as
provided below, upon Executive's termination of employment for any reason, the
Loan shall become due and payable within sixty (60) days (one (1) year in the
event of death or Disability) following such termination. If terminated prior to
an Initial Public Offering, the Loan shall be repaid upon the earlier of (i)
disposition of the Purchased Shares or (ii) one (1) year from the date of
termination. Notwithstanding the foregoing, in the event Executive's employment
is terminated by the Company with Cause or Executive terminates his employment
without Good Reason, the Loan must be repaid within thirty (30) days following
any such termination. If Executive disposes of any of the Purchased Shares (if
permitted), upon repayment of the Loan relating to such shares, the Company
shall release such shares from its security interest.

     3.2  Expenses.   The  Company  will  reimburse   Executive  for  reasonable
          --------
business-related expenses incurred by him in connection with the performance of
his duties hereunder during the Term in accordance with the Company's policies
relating to business-related expenses as in effect from time to time during the
Term.

                                        5
<PAGE>

     3.3  Put; Registration Rights and Transfer Restrictions. (a) If prior to an
          --------------------------------------------------
Initial Public Offering, Executive may require the Company to purchase any or
all shares of Common Stock owned by Executive for at least six (6) months (by
purchase or pursuant to the exercise of warrants) for book value (as calculated
under generally accepted accounting principles by the Company's auditors) within
one (1) year of termination of employment for any reason (other than a
termination by the Company for Cause or by Executive without Good Reason) (the
"Put"). Such Put shall automatically expire upon an Initial Public Offering
whether or not Executive is then employed. Payment of the purchase price in
connection with any such Put shall be in the form of cash and shall be made
within forty-five (45) days following Executive's exercise of such Put.

               (b) Executive shall have the same registration and transfer
rights and restrictions as the Investors, including, but not limited to,
drag-along and tag-along rights; provided, that, registration rights will be
                                 --------  ----
subject to any underwriter's cut-back.

     3.4  Relocation  Expenses.  The Company shall  reimburse  Executive for his
          --------------------
relocation expenses in accordance with Exhibit B attached hereto.


                                  ARTICLE IV.

                                EXCLUSIVITY, ETC.
                                ----------------

     4.1  Restrictive Covenants.
          ---------------------

               (a)  Return of Property and  Nondisclosure.  Upon  termination or
                    -------------------------------------
expiration of his employment, Executive will promptly deliver to the Company all
data, lists, information, memoranda, documents and all other property belonging
to the Company or containing "Confidential Information" (as defined below),
including, among other things, that which relates to services performed by
Executive for the Company or any affiliate, or was created or obtained by
Executive while performing services for the Company or any affiliate or by
virtue of Executive's relationship with the Company or any affiliate, except
that Executive shall have no obligation to deliver to the Company his rolodex,
calendars and any documents containing Executive's personal contacts or
information. Except (i) as required in order to perform his obligations under
this Agreement, (ii) as may otherwise be required by law or any legal process,
or (iii) as is necessary in connection with any adversarial proceeding against
the Company (in which case Executive shall use his reasonable best efforts in
cooperating with the Company in obtaining a protective order against disclosure
by a court of competent jurisdiction), Executive shall not, without the express
prior written consent of the Company, disclose or divulge to any other person or
entity, or use or modify for use, directly or indirectly, in any way, for any
person or entity any of the Company's or any affiliate's Confidential
Information at any time (during or after Executive's employment). For purposes
of this Agreement, "Confidential Information" of the Company shall mean any
valuable, competitively sensitive data and information related to the Company's
or any affiliate's business including, without limitation Trade Secrets (as
defined below) that are not generally known by or readily available to the
Company's or any affiliate's competitors or any affiliate's other than as a
result of an improper disclosure directly or indirectly by Executive. "Trade
Secrets" shall mean information or data of the Company or any affiliate's
including, but not limited to, technical or non-technical data, financial
information, programs, devices, methods, techniques, drawings, processes,
financial plans, product plans, or lists of actual or potential customers or
suppliers, that: (A) derive economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from their disclosure or use; and
(B) are the subject of efforts that are reasonable under the circumstances to
maintain their secrecy.

                                        6
<PAGE>

               (b)  Post-Employment Property.  Executive agrees that any and all
                    ------------------------
intellectual property that Executive invents, discovers, originates, makes,
conceives, creates or authors either solely or jointly with others and that is
the result of or is substantially derived from Confidential Information shall be
the sole and exclusive property of the Company unless in the public domain.
Executive shall promptly and fully disclose all such property to the Company,
shall provide the Company with any information that it may reasonably request
about such property and shall execute such agreements, assignments or other
instruments as may be reasonably requested by the Company to reflect such
ownership by the Company.

               (c)  Protection of the Business; Nonsolicitation. During the Term
                    -------------------------------------------
and until the second anniversary of Executive's Date of Termination (as defined
below) for any reason (the "Restricted Period") (other than upon expiration of
the Term in which case the Restricted Period shall be until the first
anniversary of Executive's Date of Termination), Executive will not anywhere
within the geographical areas in which the Company or any subsidiary (the
"Designated Entities") are conducting their business operations or providing
services as of the Date of Termination, pursue any Company or subsidiary project
known to Executive and which the Designated Entities are actively pursuing,
developing or attempting to develop as of the Date of Termination (or within six
(6) months prior to the Date of Termination) while the Company is (or is
contemplating actively) pursuing such project directly or indirectly, alone, in
association with or as a shareholder, principal, agent, partner, officer,
director, employee or consultant of any other organization. During the
Restricted Period, Executive shall not solicit any officer, employee (other than
secretarial staff) or consultant of any of the Designated Entities to leave the
employ of any of the Designated Entities.

               (d)  Non-Disparage.  The parties  acknowledge and agree that they
                    -------------
will not defame or publicly criticize the services, business, integrity,
veracity or personal or professional reputation of the other party, and in the
case of the Company, its officers, directors, partners, employees, affiliates,
or agents thereof in either a professional or personal manner, except that the
foregoing shall not limit normal competitive activities.

               (e)  Blue Pencil. If, at any time, the provisions of this Section
                    -----------
4.1 shall be determined to be invalid or unenforceable under any applicable law,
by reason of being vague or unreasonable as to area, duration or scope of
activity, this Section 4.1 shall be considered divisible and shall become and be
immediately amended to only such area, duration and scope of activity as shall
be determined to be reasonable and enforceable by the court or other body having
jurisdiction over the matter; and Executive and the Company agree that this
Section 4.1 as so amended shall be valid and binding as though any invalid or
unenforceable provision had not been included herein.

                                        7
<PAGE>

     4.2  Remedies.  Executive acknowledges that the Company's remedy at law for
          --------
a breach by him of the provisions of this Article IV will be inadequate.
Accordingly, in the event of a breach or threatened breach by Executive of any
provision of this Article IV, the Company shall be entitled to seek injunctive
relief in Bermuda or elsewhere in addition to any other remedy it may have. If
any of the provisions of, or covenants contained in, this Article IV are
hereafter construed to be invalid or unenforceable in any jurisdiction, the same
shall not affect the remainder of the provisions or the enforceability thereof
in any other jurisdiction, which shall be given full effect, without regard to
the invalidity or unenforceability in such other jurisdiction. If any of the
provisions of, or covenants contained in, this Article IV are held to be
unenforceable in any jurisdiction because of the duration or geographical scope
thereof, the parties agree that the court making such determination shall have
the power to reduce the duration or geographical scope of such provision or
covenant and, in its reduced form, such provision or covenant shall be
enforceable; provided, however, that the determination of such court shall not
             --------- -------
affect the  enforceability  of this  Article IV in any other jurisdiction.

                                   ARTICLE V.

                                   TERMINATION
                                   -----------

     5.1  Termination  by the  Company  with Cause.  The Company  shall have the
          ----------------------------------------
right to terminate Executive's employment at any time with "Cause" by providing
a Notice of Termination to Executive not more than ninety (90) days after the
Board's actual knowledge of the Cause event, and such termination shall not be
deemed to be a breach of this Agreement. For purposes of this Agreement, "Cause"
shall mean (i) habitual drug or alcohol use which impairs the ability of
Executive to perform his duties hereunder; (ii) Executive's conviction during
the Term by a court of competent jurisdiction, or a pleading of "no contest" or
guilty to a felony or the equivalent if outside the United States; (iii)
Executive's engaging in fraud, embezzlement or any other illegal conduct with
respect to the Company which acts are materially harmful to, either financially,
or to the business reputation of, the Company; (iv) Executive's willful
violation of Article IV hereof; (v) Executive's willful failure or refusal to
perform his duties hereunder (other than such failure caused by Executive's
Disability or while on vacation), after a written demand for performance is
delivered to Executive by the Board that specifically identifies the manner in
which the Board believes that Executive has failed or refused to perform his
duties, or (vi) Executive otherwise breaches any material provision this
Agreement which is not cured, if curable, within 30 days after written notice
thereof.

                                        8
<PAGE>

     5.2  Death.  In the event  Executive  dies during the Term,  his employment
          -----
shall automatically terminate effective on the date of his death and such
termination shall not be deemed to be a breach of this Agreement.

     5.3  Disability.  In the  event  that  Executive  shall  suffer a mental or
          ----------
physical disability which shall have prevented him from performing his material
duties hereunder for a period of at least one hundred twenty (120) consecutive
days or one-hundred eighty (180) non-consecutive days within any 365 day period,
the Company shall have the right to terminate Executive's employment for
"Disability," such termination to be effective upon the giving of notice thereof
to Executive in accordance with Section 6.3 hereof and such termination shall
not be deemed to be a breach of this Agreement. In such event, Executive's
employment hereunder shall terminate effective on the 30th day after receipt of
such notice by the Executive (the "Disability Effective Date"); provided, that,
the Executive shall not have returned to full-time performance of his duties
hereunder within thirty (30) days following receipt of such notice.

     5.4  Good Reason.  Executive may terminate his employment  with the Company
          -----------
for "Good Reason" within thirty (30) days after Executive has knowledge of the
occurrence, without Executive's written consent, of one of the following events
that has not been cured, if curable, within thirty (30) days after a Notice of
Termination has been given by Executive to the Company and such termination
shall not be deemed to be a breach of this Agreement. For purposes of this
Agreement, "Good Reason" shall mean: (i) any material and adverse change to
Executive's duties or authority which are inconsistent with his title and
position set forth herein, (ii) a material diminution of Executive's title or
position; (iii) the relocation of Executive's office outside of Bermuda; (iv) a
reduction of Executive's Base Salary; (v) a material reduction of Executive's
benefits provided under Section 3.1 other than a reduction permitted under terms
and conditions of the applicable Company policy or benefit plan; or (vi) a
willful failure by the Company to comply with any other material provisions of
this Agreement.

     5.5  Without Good Reason.  Executive may terminate his employment  with the
          -------------------
Company without Good Reason by giving written notice to the Company as provided
in Section 6.3. Such notice must be provided to the Company at least thirty (30)
days prior to such termination. Such termination shall not be deemed to be a
breach of this Agreement.

     5.6  Without  Cause.   The  Company  shall  have  the  right  to  terminate
          --------------
Executive's employment hereunder without Cause by providing Executive with a
notice of termination, and such termination shall not in and of itself be, nor
shall it be deemed to be, a breach of this Agreement.

     5.7  Expiration of the Term.  Executive's  employment  shall terminate upon
          ----------------------
the expiration of the Term, including expiration resulting from the Company or
Executive giving the notice contemplated by Section 2.1 hereof, and such
termination shall not in and of itself be, nor shall it be deemed to be, a
breach of this Agreement. For all purposes of this Agreement, if the Company
cannot renew Executive's work permit in Bermuda and Executive is no longer able
to provide services for the Company as a result thereof, the Agreement shall be
deemed to expire as of such date and such expiration shall be deemed to be the
result of the Company providing Executive with a notice of non-renewal.

                                        9
<PAGE>

     5.8  Notice of Termination.  Any  termination of Executive's  employment by
          ---------------------
the Company for Cause, or by Executive for Good Reason, shall be communicated by
Notice of Termination to the other party hereto given in accordance with Section
6.3 of this Agreement. For purposes of this Agreement, a "Notice of Termination"
means a written notice which (i) indicates the specific termination provision in
this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated and (iii)
if the Date of Termination (as defined below) is other than the date of receipt
of such notice, specifies the termination date. The failure by Executive or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
Executive or the Company, respectively, hereunder or preclude Executive or the
Company, respectively, from asserting such fact or circumstance in enforcing
Executive's or the Company's rights hereunder.

     5.9  Date of  Termination.  "Date of  Termination  means (i) if Executive's
          --------------------
employment is terminated by the Company for Cause or by Executive for Good
Reason, the date of receipt of the Notice of Termination or any later date
specified therein (but not more than thirty (30) days), as the case may be
(although such Date of Termination shall retroactively cease to apply if the
circumstances providing the basis of termination for Cause or Good Reason are
cured in accordance with Section 5.1 or 5.4 of this Agreement, respectively),
(ii) if Executive's employment is terminated by the Company other than for Cause
or Disability, the Date of Termination shall be the date set forth in the Notice
of Termination (iii) if Executive's employment is terminated by Executive
without Good Reason, the Date of Termination shall be the date set forth in the
Notice of Termination, but no sooner than thirty (30) days after such Notice of
Termination is received by the Company and (iv) if Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of Executive's death or the Disability Effective Date, as the case may
be.

     5.10 Compensation  upon  Termination.  In the event of the  termination  of
          -------------------------------
Executive's employment during or at the end of the Term, the Company shall
provide Executive with the payments and benefits set forth below. Executive
acknowledges and agrees that the payments set forth in this Section 5.10 and
Section 5.11 constitute liquidated damages for any claim of breach of contract
under this Agreement as it relates to termination of his employment during the
Term. Notwithstanding the foregoing, if Executive is entitled to the payments
set forth in Section 5.10(b), Section 5.10(c), Section 5.10(d) or Section 5.11
of this Agreement, Executive shall execute and agree to be bound by an agreement
relating to the waiver and general release of any and all claims (other than
claims for the compensation and benefits payable under Section 5.10(b), Section
5.10(c), Section 5.10(d) or Section 5.11, as the case may be) arising out of or
relating to Executive's employment and termination of employment (the
"Release"). Such Release shall be made substantially in the form attached hereto
as Exhibit A, subject to such changes as may be required to preserve the intent
thereof for changes in applicable law.

                                       10
<PAGE>

               (a) In the event of termination of Executive's employment by the
Company for Cause or by Executive without Good Reason, or by reason of
expiration of the Term due to Executive providing the notice not to renew the
Term as contemplated by Section 2.1 hereof, the Company shall pay Executive his
accrued, but unpaid Base Salary and unpaid business expenses through Date of
Termination. To the extent required by law or as otherwise provided by Company
policy, Executive shall also be paid his accrued, but unpaid vacation pay
through the Date of Termination.

               (b) In the event of Executive's death or the termination of his
employment due to Disability, the Company shall pay to Executive (or his
beneficiary(ies) or estate, as the case may be) an amount equal to the sum of
(i) his accrued, but unpaid Base Salary through the date of termination of
employment, (ii) earned, but unpaid Bonus for the year prior to the year of
termination, (iii) a pro-rata portion of his Bonus for the year of death or
termination for Disability, as determined in the good faith opinion on the Board
based on the relative achievement of performance targets through the Date of
Termination and (iv) accrued vacation pay through the Date of Termination (the
sum of the amounts in clauses (i) through (iv) hereof referred to as "Accrued
Amounts"), as soon as practicable following the Date of Termination. Executive
shall be entitled to any other rights, compensation and/or benefits as may be
due to Executive in accordance with the terms and provisions of any agreements,
plans or programs of the Company.

               (c) Subject to Section 5.11 of this Agreement, in the event
Executive's employment is terminated pursuant to Section 5.4 or Section 5.6, the
Company shall pay Executive, the Accrued Amounts and continue to pay Executive
his Base Salary for twenty-four months following such termination (the
"Severance Amount"). Notwithstanding the foregoing, if such termination should
occur following a Change in Control, in lieu of the Severance Amount, Executive
shall receive a lump sum payment equal to two times his then current Base Salary
and last paid Bonus, if any.

               (d) Subject to Section 5.11 of this Agreement, in the event
Executive's employment is terminated by the expiration of the Term because the
Company has failed to renew Executive's work permit or has provided Executive
the notice contemplated by Section 2.1 hereof, the Company shall pay Executive
the Accrued Amounts and continue to pay Executive his Base Salary for twelve
(12) months following such termination; provided that, the Company's obligations
                                        -------- ----
under this clause (d) shall cease if Executive finds other employment during
such twelve (12) month period.

               (e) Except as provided in this Agreement, Executive's rights upon
termination of employment with respect to incentive awards and stock options
shall be governed by the terms and conditions of the plan and any agreements or
as established by the Company with respect to such awards.

                                       11
<PAGE>

               (f) Except as provided in this Section 5.10 or Section 5.11,
Executive shall not be entitled to compensation as a result of any termination
of his employment with the Company.

     5.11 Non-Capitalization  Severance.  Notwithstanding any other provision of
          -----------------------------
this Agreement to the contrary, including, but not limited to Section 5.10(c) or
Section 5.10(d), in the event the Company fails to have the Closing on December
22, 1999 or such later date as the Board determines (the "Capitalization Date"),
the Company may elect within thirty (30) days following such Capitalization Date
to terminate this Agreement and Executive's employment hereunder, and upon the
election of the Company within thirty (30) days following such Capitalization
Date to terminate this Agreement and Executive's employment hereunder, the
Company shall continue to pay Executive his Base Salary for twelve (12) months
following such termination; provided, that, if Executive finds other employment
                             --------  ----
during such period, the Company's obligations hereunder shall cease. Upon such
election, Executive's rights under this Agreement and the Company's obligations
hereunder shall be solely governed by this Section 5.11 (other than Article IV
(excluding Section 4.1(b) thereof) of this Agreement which shall survive such
termination) and the Company shall have no further obligation to Executive under
this Agreement.


                                   ARTICLE VI.

                                  MISCELLANEOUS
                                  -------------

     6.1  Mitigation;   Offset.   Except  as  specifically  provided  hereunder,
          --------------------
Executive shall not be required to mitigate damages resulting from his
termination of employment and the amounts payable to Executive pursuant to this
Agreement shall not be offset or reduced by any other compensation earned by
Executive except as otherwise necessary to secure repayment of the Loan.

     6.2  Benefit of Agreement; Assignment; Beneficiary.
          ---------------------------------------------

               (a) This Agreement shall inure to the benefit of and be binding
upon the Company and its successors, including, without limitation, any
assignment to a corporation or person which may acquire all or substantially all
of the Company's assets or business, or with or into which the Company may be
consolidated or merged. This Agreement shall also inure to the benefit of, and
be enforceable by, Executive and his personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If Executive should die while any amount would still be payable to
Executive hereunder if he had continued to live, all such amounts shall be paid
in accordance with the terms of this Agreement to Executive's beneficiary,
devisee, legatee or other designee, or if there is no such designee, to
Executive's estate.

               (b) The Company shall require any successor (whether direct or
indirect, by operation of law, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place.

                                    12
<PAGE>

     6.3  Notices.  Any  notice  required  or  permitted  hereunder  shall be in
          -------
writing and shall be  sufficiently  given if personally  delivered or if sent by
telegram or telex or by  registered or certified  mail,  postage  prepaid,  with
return  receipt  requested,  addressed:  (a) in the case of the  Company  to its
principal executive offices,  Attention:  Corporate Secretary,  or to such other
                                          -------------------
address and/or to the attention of such other person as the Company shall
designate by written notice to Executive; and (b) in the case of Executive, to
the Company's address or to such other address as Executive shall designate by
written notice to the Company. Any notice given hereunder shall be deemed to
have been given at the time of receipt thereof by the person to whom such notice
is given, if in person, or two (2) days following depositing such notice in the
mail or its equivalent.

     6.4  Entire  Agreement;  Amendment.  This  Agreement  contains  the  entire
          -----------------------------
agreement of the parties hereto with respect to the terms and conditions of
Executive's employment during the term and supersedes any and all prior
agreements and understandings, whether written or oral, between the parties
hereto with respect to compensation due for services rendered hereunder. This
Agreement may not be changed or modified except by an instrument in writing
signed by both of the parties hereto.

     6.5  Waiver.  The waiver by either  party of a breach of any  provision  of
          ------
this Agreement shall not operate or be construed as a continuing waiver or as a
consent to or waiver of any subsequent breach hereof.

     6.6  Headings.  The Article and Section headings herein are for convenience
          --------
of reference only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof.

     6.7  Governing Law. This Agreement  shall be governed by, and construed and
          -------------
interpreted in accordance with, the laws of the State of New York without
reference to the principles of conflict of laws. Notwithstanding the foregoing,
to the extent that Bermuda law restricts the ability of the Company to fully
comply with the express terms of this Agreement, the Company may modify this
Agreement to the extent necessary to comply with such law and such modification
shall not be deemed to be a breach of this Agreement by the Company.

     6.8  Agreement to Take Actions. Each party hereto shall execute and deliver
          -------------------------
such documents, certificates, agreements and other instruments, and shall take
such other actions, as may be reasonably necessary or desirable in order to
perform his or its obligations under this Agreement or to effectuate the
purposes hereof.

     6.9  Survivorship.  The  respective  rights and  obligations of the parties
          ------------
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations,
including, but not limited to, Article IV.

                                       13
<PAGE>

     6.10 Validity.  The  invalidity  or  unenforceability  of any  provision or
          --------
provisions of this Agreement shall not affect the validity or enforceability of
any other provision or provisions of this Agreement which shall remain in full
force and effect.

     6.11 Counterparts.   This   Agreement  may  be  executed  in  one  or  more
          ------------
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     6.12 Indemnification.   The  Company  will  indemnify  and  hold  Executive
          ---------------
harmless both during and after the Term to the fullest extent permitted by law
with regard to actions or inactions in relation to the Executive's duties as an
officer of the Company and will, during and after the Term, maintain adequate
directors and officers insurance for Executive to cover any such liability (but
in no event less than that maintained for other officer of the Company).

     6.13 Arbitration.  Except  as  otherwise  provided  in  Article  IV of this
          -----------
Agreement, if any contest or dispute arises between the parties with respect to
this Agreement, such contest or dispute shall be submitted to binding
arbitration for resolution in Bermuda in accordance with the rules and
procedures of the American Arbitration Association then in effect. The decision
of the arbitrator shall be final and binding on both parties, and any court of
competent jurisdiction may enter judgment upon the award. Each party shall pay
its own legal fees and expenses incurred in connection therewith regardless of
outcome.

     6.14 Withholding.  All payments  hereunder shall be subject to any required
          -----------
withholding of Federal,  state and local taxes pursuant to any applicable law or
regulation.

     6.15 Representation.  Executive represents and warrants to the Company that
          --------------
neither the execution and delivery of this Agreement nor the performance of his
duties hereunder violates or will violate the provisions of any other agreement
to which he is a party or by which he is bound.

                                       14
<PAGE>

          IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement effective as of the date first above written.

                                    MAXIMUS CAPITAL HOLDINGS, LTD.

                                    By: /s/ Robert J. Cooney
                                        ----------------------------------------
                                        Name:  Robert J. Cooney
                                        Title: CEO



                                        /s/ Philip R. Kruse
                                        ----------------------------------------
                                        Executive


                                       15
<PAGE>

                                   Schedule B

                               Relocation Expenses

          The Company shall pay and/or reimburse Executive for the following
relocations expenses for up to 24 months following the Commencement Date.

          o   Customary expenses (other than points) associated with selling
Executive's house in Denver, CO.

          o   Moving expenses associated with transferring Executive's
belongings from Denver, CO to Bermuda and the costs to insure such belongings at
replacement cost during the move.

          o   Up to $16,250 of additional incurred miscellaneous relocation
expenses upon documentation thereof.

          o   The reasonable cost of two trips to Bermuda for the purpose of
finding a new residence.

          o   The reasonable cost of travel associated with Executive and his
immediately family moving to Bermuda.


                                       16