<PAGE>

                                                                   Exhibit 10.18


                                 TRUST AGREEMENT

                                  by and among

                            ROYAL INDEMNITY COMPANY,

                     ROYAL SURPLUS LINES INSURANCE COMPANY,

                                       and

                       LANDMARK AMERICAN INSURANCE COMPANY

           (hereinafter referred to collectively as the "Beneficiary")

                                       and

                        UNDERWRITERS REINSURANCE COMPANY

                   (hereinafter referred to as the "Grantor")

                                       and

                        LASALLE BANK NATIONAL ASSOCIATION

                   (hereinafter referred to as the "Trustee")
<PAGE>
                                    PREAMBLE

            This TRUST AGREEMENT (the "Trust Agreement") is made and entered
into on July 1, 2003 by and among Royal Indemnity Company, a Delaware property
and casualty insurance company ("RIC"), Royal Surplus Lines Insurance Company, a
Delaware property and casualty insurance company ("RSLIC") and Landmark American
Insurance Company, an Oklahoma property and casualty insurance company
("Landmark," and together with RIC, RSLIC and their respective successors and
assigns, the "Beneficiary"), and Underwriters Reinsurance Company, a New
Hampshire property and casualty insurance company (together with its successors
and assigns, the "Grantor"), and LaSalle Bank National Association, a national
banking association (hereinafter referred to as "Trustee"), in connection with
those certain Quota Share Reinsurance Agreements, effective July 1, 2003, by and
between the Grantor, as Reinsurer, and RIC, RSLIC and Landmark, as cedents (the
"Quota Share Reinsurance Agreements"); and

            WHEREAS, any amounts deposited in the Trust Account by the Grantor,
the Beneficiary and Royal Specialty Underwriting, Inc., a Georgia company and an
agent of the Beneficiary under certain administrative services agreements
("RSUI"), hereunder are collateral for any amounts due and unpaid to the
Beneficiary as cedents under the Quota Share Reinsurance Agreements.

            NOW THEREFORE, the Grantor, the Beneficiary and the Trustee, in
consideration of the mutual covenants contained herein and for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
upon the terms and conditions hereinafter set forth, agree as follows:

ARTICLE I

                                  DEFINED TERMS

            Section 1.1 Definitions. The following terms, when used in this
Trust Agreement, shall have the meanings set forth herein:

            (a)   "Acceptable Investments" mean investments prescribed or
                  permitted under the investment provisions of the insurance
                  laws of Delaware and New Hampshire and under the URC
                  Investment Guidelines.

            (b)   "Assets" shall have the meaning ascribed to such term in
                  Section 2.1.
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            (c)   "Beneficiary" shall have the meaning ascribed to such term in
                  the Preamble.

            (d)   "Business Day" means a Monday, Tuesday, Wednesday, Thursday or
                  Friday on which banking institutions in the State of Illinois
                  are not authorized or obligated by Applicable Law to close.

            (e)   "Cat Cover Reinsurance Recoverables" shall have the meaning
                  ascribed to such term in the Quota Share Reinsurance
                  Agreements.

            (f)   "Closing Date" means July 1, 2003.

            (g)   "Grantor" shall have the meaning ascribed to such term in the
                  Preamble.

            (h)   "Net Premium Receivables" shall have the meaning ascribed to
                  such term in the Quota Share Reinsurance Agreements.

            (i)   "Quota Share Reinsurance Agreements" shall have the meaning
                  ascribed to such term in the Preamble.

            (j)   "Reinsurance Recoverables" shall have the meaning ascribed to
                  such term in the Quota Share Reinsurance Agreements.

            (k)   "Required Balance" shall mean an amount equal to Grantor's
                  aggregate obligations to the Beneficiary under the Quota Share
                  Reinsurance Agreements, net of (i) collectible Reinsurance
                  Recoverables (as such term is defined in the respective Quota
                  Share Reinsurance Agreements), (ii) collectible Net Premium
                  Receivables (as such term is defined in the respective Quota
                  Share Reinsurance Agreements) and (iii) the amount of Royal
                  Indemnity Company's aggregate obligations to Landmark American
                  Insurance Company under the RIC (Landmark) Quota Share
                  Reinsurance Agreement to be entered into by and between Royal
                  Indemnity Company, as cedent, and Landmark American Insurance
                  Company, as reinsurer, subsequent to the date hereof.

            (l)   "RSUI" shall have the meaning ascribed to such term in the
                  Preamble.

            (m)   "Securities Intermediary" shall mean LaSalle Bank National
                  Association.


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            (n)   "Trust Account" shall have the meaning ascribed to such term
                  in Section 2.1.

            (o)   "Trust Agreement" shall have the meaning ascribed to such term
                  in the Preamble.

            (p)   "Trustee" shall have the meaning ascribed to such term in the
                  Preamble.

            (q)   "URC Investment Guidelines" shall have the meaning ascribed to
                  such term in the Quota Share Reinsurance Agreements.

            Section 1.2 Interpretation. When a reference is made in this Trust
Agreement to a Section or Article, such reference shall be to a section or
article of this Trust Agreement unless otherwise clearly indicated to the
contrary. Whenever the words "include", "includes" or "including" are used in
this Trust Agreement, they shall be deemed to be followed by the words "without
limitation." The words "hereof," "herein" and "herewith" and words of similar
import shall, unless otherwise stated, be construed to refer to this Trust
Agreement as a whole and not to any particular provision of this Trust
Agreement. The meaning assigned to each term used in this Trust Agreement shall
be equally applicable to both the singular and the plural forms of such term.
Where a word or phrase is defined herein, each of its other grammatical forms
shall have a corresponding meaning.

                                   ARTICLE II
                            CREATION OF TRUST ACCOUNT

            Section 2.1 Obligation of the Grantor. On or prior to the date
hereof, the Grantor shall procure with the Trustee, in the name of the Grantor
but for the sole benefit of the Beneficiary, an account with number 03-9253000
(ref. account name: Underwriters Reinsurance Company, Grantor) (which in its
totality shall be hereinafter referred to as the "Trust Account"). The Grantor
shall maintain in such Trust Account assets consisting of cash and/ or
Acceptable Investments (hereinafter collectively referred to as the "Assets") in
an amount equal to the Required Balance.

            Section 2.2 Purpose of Trust. (a) The Assets in the Trust Account
shall be held by the Trustee for the purposes set forth herein. The Grantor
grants to the Trustee all trust powers necessary and reasonable in the
performance of its duties hereunder.

            (b) The Grantor agrees that, for United States federal income tax
purposes, (i) the Trust shall be formed and operated in a manner that ensures
that the



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Trust constitutes a "grantor trust" and, (ii) any and all income or gain derived
from the Assets held in the Trust shall constitute income or gain of the Grantor
as the owner of the Assets.

            Section 2.3 Designation of Agents. Except as otherwise expressly
provided in this Trust Agreement, any statement, certificate, notice, request,
consent, approval, or other instrument to be delivered or furnished by Grantor
and/or Beneficiary shall be sufficiently executed if executed in the name of
Grantor and/or Beneficiary by such officer or officers of Grantor and/or
Beneficiary or by such other agent or agents of Grantor and/or Beneficiary as
may be designated in a resolution or letter of advice by Grantor and/or
Beneficiary. Written notice of such designation by Grantor and/or Beneficiary
shall be filed with the Trustee. The Trustee shall be protected in acting upon
any written statement or other instrument made by such officer or agent of
Grantor and/or Beneficiary with respect to the authority conferred on him.

                                  ARTICLE III
                            MAINTENANCE OF THE TRUST

            Section 3.1 Funding of Trust Account. On the Closing Date, (i) the
Beneficiary shall place Assets in the Trust Account in an amount equal to
$173,383,109.00, representing the amount required to be placed in the Trust
Account on the Closing Date by the Beneficiary pursuant to Section 9.2(a)(i) of
the Quota Share Reinsurance Agreements; (ii) the Grantor shall place Assets in
the Trust Account in an amount equal to $47,703,000.00, representing the amount
required to be placed in the Trust Account on the Closing Date by the Grantor
pursuant to Section 9.2(a)(iii) of the Quota Share Reinsurance Agreements; (iii)
the Grantor shall execute and deliver the Assignment of Reinsurance Recoverables
attached hereto as EXHIBIT A; and (iv) the Beneficiary shall execute and deliver
the Assignment of Net Premium Receivables attached hereto as EXHIBIT B.

            Section 3.2 Substitution of Trust Account Assets. The Grantor may at
any time substitute or exchange Assets contained in the Trust Account, provided
(i) such assets so substituted or exchanged are cash and/or Acceptable
Investments and (ii) the aggregate fair market value of the Assets is not
decreased below an amount equal to the Required Balance as of the prior month
end. Upon any substitution or exchange as provided for herein, the Grantor shall
certify to the Trustee that such substitution or exchange meets the requirements
of this Section 3.2.

            Section 3.3 Books and Records. The Trustee shall keep full and
complete records of the administration of the Trust Account. The Grantor and the
Beneficiary may examine such records at any time during business hours through
any person or persons duly authorized in writing by Grantor or the Beneficiary.


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            Section 3.4 Conversion to Regulation 114 Trust. In the event that
RIC, RSLIC or Landmark is unable to take financial statement credit for the
reinsurance provided under the Quota Share Reinsurance Agreement to which it is
a party, the parties hereto shall agree to either (i) convert this Trust
Agreement to a trust agreement in form and substance satisfactory to the
parties, in compliance with New York Insurance Regulation 114 or (ii) remove
RIC, RSLIC or Landmark, as the case may be, as a party to this Trust Agreement
(with a corresponding adjustment to the Required Balance hereunder), with the
Grantor providing RIC, RSLIC or Landmark, as the case may be, a trust, in form
and substance satisfactory to such party and the Grantor, in compliance with New
York Insurance Regulation 114 in order to permit such party to take full
financial statement credit for the reinsurance provided under the Quota Share
Reinsurance Agreement to which it is a party and the transfer to such trust of
Assets in an amount equal to the portion of the Required Balance related to the
obligations to such party.

                                   ARTICLE IV
                 RELEASE AND ADJUSTMENT OF TRUST ACCOUNT ASSETS

            Section 4.1 Change in Required Balance. If as of any month end there
is a reduction or increase in the amount of the Required Balance, the
Beneficiary shall (i) certify in writing to the Trustee as to the amount of such
reduction or increase and (ii) provide the Grantor a copy of the written
certification transmitted to the Trustee.

            Section 4.2 Adjustment of Trust Account Assets. (a) If the fair
market value of the Assets maintained in the Trust Account is greater than the
Required Balance as of any month end, then within five (5) Business Days of such
determination, the Trustee shall, upon written signed direction from the
Grantor, withdraw from the Trust Account and transfer to the Grantor Assets
having a fair market value equal to such excess.

            (b) If the fair market value of the Assets maintained in the Trust
Account is less than the Required Balance as of such month end, then within five
(5) Business Days of such determination, the Grantor shall cause to be placed
into the Trust Account such additional assets as are necessary to ensure that
the fair market value of the Assets maintained in the Trust Account is no less
than the Required Balance.

            Section 4.3 Limitation on Release of Trust Account Assets. EXCEPT AS
PROVIDED IN SECTION 4.4 OR ARTICLE VI HEREOF, IN NO EVENT SHALL THE TRUSTEE BE
INSTRUCTED TO RELEASE ASSETS FROM THE TRUST ACCOUNT WHICH WOULD CAUSE THE
AGGREGATE FAIR MARKET VALUE OF THE ASSETS HELD IN THE TRUST ACCOUNT TO BE
DECREASED BELOW



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THE AGGREGATE AMOUNT OF THE REQUIRED BALANCE AS OF THE MONTH END PRECEDING THE
RELEASE OF SUCH ASSETS.

            Section 4.4 Release of Trust Account Assets to the Beneficiary. (a)
Except as provided in Section 4.4(b), the Beneficiary may not withdraw Assets
from the Trust Account without the prior written consent of the Grantor, a copy
of which shall be provided by the Grantor to the Trustee.

            (b) In the event that the Grantor fails to make a payment of any
amount when due to the Beneficiary pursuant to Section 3.2 of the Quota Share
Reinsurance Agreements, the Beneficiary, without notice to the Grantor, shall be
entitled to withdraw such amount on the first Business Day following the due
date. In the event that the Grantor attempts to terminate the Trust Account
without the written approval of the Beneficiary, the Beneficiary shall be
entitled to withdraw the Assets maintained in the Trust Account prior to the
date of termination and hold such assets in trust as collateral for the
performance of the Reinsurer's obligations under the Quota Share Reinsurance
Agreements.

                                   ARTICLE V
                              DUTIES OF THE TRUSTEE

            Section 5.1 Acceptance of Assets by the Trustee. The Trustee shall
accept for deposit into the Trust Account any asset provided such assets are
cash or Acceptable Investments. Notwithstanding anything herein to the contrary,
the Trustee shall not at any time be under any duty or responsibility to
determine whether any assets constitute Acceptable Investments.

            The Trustee and its lawfully appointed successors is and are
authorized and shall have the power to receive such securities and other
property as Grantor from time to time may transfer or remit to the Trust Account
and to hold and dispose of the same for the uses and purposes and in the manner
and according to the provisions herein set forth. All such trusteed assets at
all times shall be maintained as a trust account, separate and distinct from all
other assets on the books and records of the Trustee, and shall be continuously
kept in a safe place within the United States.

            Section 5.2 Collection of Interest and Dividends; Voting Rights. The
Trustee is hereby authorized, without prior notice to the Grantor or the
Beneficiary, to demand payment of and collect all interest or dividends on the
Assets comprising the Trust Account if any, and the Trustee shall deposit all of
such interest or dividends collected to the principal of the Trust Account. The
Grantor shall have the full and unqualified right to vote and execute consents
with respect to any shares of stock comprising the Trust Account.


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            Section 5.3 Obligations of the Trustee. The Trustee agrees to hold
and disburse the various Assets of the Trust Account in accordance with the
provisions expressed herein.

            Section 5.4 Responsibilities of Trustee. The Trustee, in the
administration of this Trust Account, is to be bound solely by the express
provisions herein, and such further written and signed directions and
certifications as the appropriate party or parties may, under the conditions
herein provided, deliver to the Trustee. The Trustee shall be under no
obligation to enforce the Grantor's obligations under this Agreement, except as
otherwise expressly provided or directed pursuant hereto; the Trustee's
responsibilities shall be limited to the safe holding of the Assets comprising
the Trust Account, and the Trustee shall be liable only for its own negligence,
willful misconduct, lack of good faith or breach of fiduciary duty. The Trustee
further agrees to forward upon request to the Beneficiary and upon request to
the Grantor, a certified list and valuation of all Assets held under this Trust
Agreement.

            Section 5.5 Monthly Reports. The Trustee agrees to provide copies of
activity reports to the Beneficiary and the Grantor upon inception and within
five (5) days following the end of each calendar month, which reports shall show
all deposits, withdrawals and substitutions; a listing of securities held; and
cash and cash equivalent balances, in the Trust Account as of the end of such
month. The Trustee agrees to provide written notification to the Grantor and the
Beneficiary within five (5) days of any deposits to or withdrawals from the
Trust Account.

            Section 5.6 Resignation or Removal of the Trustee. The Trustee may
at any time resign from, and terminate its capacity hereunder by delivery of
written notice or resignation, effective not less than ninety (90) days after
receipt by both the Beneficiary and the Grantor. The Trustee may be removed by
the Grantor by (i) delivery to the Trustee and the Beneficiary of a written
notice of removal, effective not less than ninety (90) days after receipt by the
Trustee and the Beneficiary of the notice and (ii) receipt of Beneficiary's
consent to such action, which consent shall not be unreasonably withheld.
However, no such resignation by the Trustee or removal by the Grantor shall be
effective until a successor to the Trustee shall have been duly appointed as
provided in this Agreement and all the securities and other Assets in the Trust
Account have been duly transferred to such successor. The Grantor, upon receipt
of such notice, shall undertake to obtain the agreement of a qualified,
successor depository, agreeable to the Beneficiary, to act in accordance with
all agreements of the Trustee herein. The Beneficiary agrees not to unreasonably
withhold approval of such Trustee. Upon the Trustee's delivery of the Assets to
the qualified, successor depository, along with a closing statement showing all
activities from the last monthly report, the Trustee shall be discharged of
further responsibilities hereunder.


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<PAGE>
            Section 5.7 Release of Information. The Trustee shall respond to any
and all reasonable requests for information concerning the Trust Account or the
Assets held therein by either of the parties to this Agreement.

            Section 5.8 Indemnification of the Trustee. Whenever an action by
the Trustee is authorized by written signed direction pursuant to the provisions
of this Agreement and such action is taken strictly in accordance with such
written and signed direction by the appropriate party or parties, the party or
parties authorizing such action hereby agree to indemnify the Trustee against
all losses, damages, costs and expenses, including reasonable attorney's fee,
resulting from any action so taken by the Trustee.

            Section 5.9 Charges of the Trustee. The Grantor agrees to pay all
costs or fees charged by the Trustee for acting as the Trustee pursuant to this
Agreement, as agreed between the Grantor and the Trustee, including fees
incurred by the Trustee for legal services deemed necessary by the Trustee as a
result of the Trustee's so acting; provided, however, that no such costs, fees
or expenses shall be paid out of the Assets.

            Section 5.10 Limitations of Trustee. The Trustee shall in no way be
responsible for determining the amount of securities required to be deposited;
or to monitor whether or not the securities held within such Trust Account
conform to the investment requirements contained herein. The Trustee shall be
under no liability for any release of Assets made by it to the Grantor pursuant
to Article IV.

                                   ARTICLE VI
                          TERMINATION OF TRUST ACCOUNT

            Section 6.1 Termination with the Beneficiary's Written Consent. Upon
receipt of the Beneficiary's written consent, the Grantor shall terminate this
Agreement by:

               (a) giving thirty five (35) days' advance written notice to the
Trustee and the Trustee giving thirty (30) days' advance written notice of such
termination via certified mail to the Beneficiary; and

               (b) providing the Beneficiary with alternative security
acceptable to the Beneficiary, in its sole discretion, prior to the effective
date of termination.

            Upon such termination, the Trustee shall release Assets held and
deposited under this Agreement to the Beneficiary and shall take any and all
steps necessary to transfer absolutely and unequivocally all right, title and
interest in such Assets and to deliver physical custody, if applicable, in such
Assets to the Beneficiary or as otherwise directed by the Beneficiary.


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<PAGE>
                                  ARTICLE VII
                      SECURITY INTEREST IN THE TRUST ASSETS

            Section 7.1 Security Interest. The parties intend that the Trust
Account is and at all times shall be the lawful owner of the Assets. However, to
the extent that the Trust is not valid, the transfer of the Assets by the
Grantor to the Trust Account is not effective, or the Transfer of the Assets by
the Grantor may be characterized as a pledge rather than a lawful conveyance to
the Trust, the Grantor hereby grants and transfers to RIC, as agent for the
benefit of the Beneficiary, for the purposes set forth herein a first priority
perfected security interest in all of the Grantor's right, title and interest
in, to and under the Trust Account, all Assets credited to the Trust Account and
any security entitlements arising with respect thereto to secure Grantor's
obligations hereunder to the Beneficiary and this Trust Agreement shall
constitute a security agreement under applicable law. In addition, the Grantor
shall execute and deliver such UCC financing statements with respect to Trust
Account that are reasonably deemed necessary by the Beneficiary in order to
perfect such security interest in the Assets.

            Section 7.2 Appointment as Agent. Solely for the purpose of
effectuating the grant set forth in Section 7.1, RSLIC and Landmark hereby
appoint RIC as agent, and RIC hereby accepts the appointment.

            Section 7.3 "Financial Assets" Election. The Securities Intermediary
hereby agrees that each Asset credited to the Trust Account shall be treated as
a "financial asset" within the meaning of Section 8-102(a)(9) of the UCC. For
purposes of this Trust Agreement, "UCC" shall mean the Uniform Commercial Code
as in effect on the date hereof in the State of New York.

            Section 7.4 UCC Securities Account.

            The Securities Intermediary hereby confirms and agrees to the
following:

               (a) The Trust Account is a "securities account" as such term is
defined in UCC Section 8-501(b). For purposes of this Article VII, the
Securities Intermediary shall be acting solely in its capacity as securities
intermediary for the benefit of the Beneficiary under Article 8 of the Uniform
Commercial Code.

               (b) The Securities Intermediary has established for the Trust
Account account number 03-9253000 in the name "Underwriters Reinsurance Company,
Grantor" and the Trustee shall not change the name or account number of the
Trust Account without the prior written consent of the Beneficiary. All Assets
delivered to the Trustee pursuant to this Trust Agreement will be promptly
credited to the Trust Account.


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<PAGE>
            Section 7.5 Entitlement Orders. If at any time the Securities
Intermediary shall receive any order from the Beneficiary directing transfer or
redemption of any Asset (an "Entitlement Order"), the Securities Intermediary
shall comply with such Entitlement Order without further consent by the Grantor
or any other person. If the Grantor is otherwise entitled to issue Entitlement
Orders and such orders conflict with any Entitlement Order issued by the
Beneficiary, the Securities Intermediary shall follow the orders issued by the
Beneficiary.

            Section 7.6 Subordination of Lien; Waiver of Set-Off. In the event
that the Securities Intermediary has or subsequently obtains by agreement, by
operation of law or otherwise a security interest in the Trust Account or any
security entitlement credited thereto in any capacity other than as Trustee of
the Trust Account for the benefit of the Beneficiary, the Securities
Intermediary hereby agrees that such security interest shall be subordinate to
the security interest created hereunder. The Assets deposited to the Trust
Account will not be subject to deduction, set-off, banker's lien, or any other
right in favor of any person other than the Beneficiary (except that the
Securities Intermediary may set off (i) all amounts due to the Securities
Intermediary in respect of customary fees and expenses for the routine
maintenance and operation of the Trust Account and (ii) the face amount of any
checks which have been credited to the Trust Account but are subsequently
returned unpaid because of uncollected or insufficient funds).

            Section 7.7 Choice of Law. Both this Trust Agreement and the Trust
Account shall be governed by the laws of the State of New York. Regardless of
any provision in any other agreement, for purposes of the UCC, New York shall be
deemed to be the Securities Intermediary's jurisdiction and the Trust Account
(as well as the securities entitlements related thereto) shall be governed by
the laws of the State of New York.

            Section 7.8 Conflict with Other Agreements.

               (a) In the event of any conflict between this Trust Agreement (or
any portion thereof) and any other agreement now existing or hereafter entered
into, the terms of this Trust Agreement shall prevail;

               (b) The Securities Intermediary hereby confirms and agrees that:

                  (i) There are no other agreements entered into between the
        Securities Intermediary and the Grantor with respect to the Trust
        Account;

                  (ii) It has not entered into, and until the termination of the
        this Trust Agreement will not enter into, any agreement



                                       10
<PAGE>
        with any other person relating to the Trust Account and/or any Assets
        credited thereto pursuant to which it has agreed to comply with
        Entitlement Orders of any person other than the Beneficiary; and

                  (iii) It has not entered into, and until the termination of
        this Trust Agreement will not enter into, any agreement with the Grantor
        or the Beneficiary purporting to limit or condition the obligation of
        the Trustee to comply with Entitlement Orders as set forth in Section
        7.4 hereof.

               Section 7.9 Adverse Claims. Except for the claims and interest of
the Beneficiary and of the Grantor in the Trust Account, the Securities
Intermediary does not know of any claim to, or interest in, the Trust Account or
in any Asset credited thereto. If any person asserts any lien, encumbrance or
adverse claim (including any writ, garnishment, judgment, warrant of attachment,
execution or similar process) against the Trust Account or in any Asset carried
therein, the Securities Intermediary will promptly notify the Beneficiary and
the Grantor thereof.

                                  ARTICLE VIII
                               GENERAL PROVISIONS

               Section 8.1 Failure to Act. The Beneficiary's failure at any time
to exercise any of the rights or powers conferred upon it herein shall
constitute neither a waiver of its right to exercise, nor stop it from
exercising, any rights at any subsequent time, nor shall such failure reduce in
any degree any liability or obligation for which the Grantor is bound hereunder.

               Section 8.2 Disputes. Any dispute arising out of, including the
formation or validity thereof, or otherwise relating to, this Trust Agreement
shall be subject to the provisions of Article XIV of the Quota Share Reinsurance
Agreements.

               Section 8.3 Amendments. This Trust Agreement may be altered,
amended or terminated at any time by written agreement executed by each party
hereto and, in the case of Grantor's and Beneficiary's written agreement,
delivered to the Trustee.

               Section 8.4 Assignment. This Agreement may not be assigned
without the consent of the parties hereto and, subject to the receipt of such
consent, shall be binding upon and inure to the benefit of the parties hereto,
their successor and assigns.


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<PAGE>
               Section 8.5 Counterparts. This Agreement may be executed in any
number of counterparts or by attached documents, all of which shall constitute
one and the same original.

               Section 8.6 Notices. Unless otherwise specifically provided
herein, every notice required or permitted to be given under this Agreement
shall be given in writing by personal delivery to the party to whom it is
directed at the following addresses:

                  Trustee:     Robert K. Thompson
                               Senior Vice President
                               LaSalle Bank National Association
                               135 South LaSalle,
                               Suite 1827
                               Chicago, Illinois  60603
                               Telephone No.:  (312) 904-6549
                               Facsimile No.:  (312) 904-0990

                  Grantor:     Robert M. Hart, Esq.
                               General Counsel
                               Alleghany Corporation
                               375 Park Avenue
                               Suite 3201
                               New York, New York 10152
                               Telephone No.:  (212) 752-1356
                               Facsimile No.:  (212) 759-8149


               with a copy to (which shall not constitute notice to Grantor for
purposes of this Section 8.6):

                               Aileen C. Meehan, Esq.
                               William W. Rosenblatt, Esq.
                               Dewey Ballantine LLP
                               1301 Avenue of the Americas
                               New York, New York 10019
                               Telephone No.:  (212) 259-8000
                               Facsimile No.:  (212) 259-6333


                  Beneficiary: Laura S. Lawrence, Esq.
                               General Counsel
                               Royal Indemnity Company


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<PAGE>
                               9300 Arrowpoint Blvd.
                               Charlotte, North Carolina 28273
                               Telephone No.:  (704) 522-2851
                               Facsimile No.:  (704) 522-2313

               with a copy to (which shall not constitute notice to Beneficiary
for purposes of this Section 8.6):

                               Robert J. Sullivan, Esq.
                               Skadden, Arps, Slate, Meagher & Flom LLP
                               Four Times Square
                               New York, New York 10036
                               Telephone No.:  212-735-2930
                               Facsimile No.:  212-735-2000

               Section 8.7 Severability. In the event any provision of this
Trust Agreement shall be held invalid or unenforceable for any reason, such
invalidity or unenforceability shall not affect the remaining provisions of this
Trust Agreement.




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<PAGE>
                                   ARTICLE IX
                          EFFECTIVE DATE AND EXECUTION

                  IN WITNESS OF THE ABOVE, this Trust Agreement is executed in
triplicate by the parties' duly authorized officers on the dates indicated below
with an effective date of: July 1, 2003.

ROYAL INDEMNITY COMPANY

       /s/ Stephen M. Mulready
       -----------------------------------------------------
By:    Stephen M. Mulready
       -----------------------------------------------------
Title: President and Chief Executive Officer
       -----------------------------------------------------
DATE:
       -----------------------------------------------------


                                  Attest:  /s/ Judy S. Spitzer
                                           -------------------------------------
                                  By:      Judy S. Spitzer
                                           -------------------------------------
                                  Title:   Assistant Corporate Secretary
                                           -------------------------------------
                                  DATE:
                                           -------------------------------------


ROYAL SURPLUS LINES INSURANCE COMPANY

       /s/ Stephen M. Mulready
       -----------------------------------------------------
By:    Stephen M. Mulready
       -----------------------------------------------------
Title: President and Chief Executive Officer
       -----------------------------------------------------
DATE:
       -----------------------------------------------------

                                  Attest:  /s/ Judy S. Spitzer
                                           -------------------------------------
                                  By:      Judy S. Spitzer
                                           -------------------------------------
                                  Title:   Assistant Secretary
                                           -------------------------------------
                                  DATE:
                                           -------------------------------------


LANDMARK AMERICAN INSURANCE COMPANY

       /s/ Stephen M. Mulready
       -----------------------------------------------------
By:    Stephen M. Mulready
       -----------------------------------------------------
Title: President and Chief Executive Officer
       -----------------------------------------------------
DATE:
       -----------------------------------------------------
<PAGE>
                                  Attest:  /s/ Judy S. Spitzer
                                           -------------------------------------
                                  By:      Judy S. Spitzer
                                           -------------------------------------
                                  Title:   Assistant Corporate Secretary
                                           -------------------------------------
                                  DATE:
                                           -------------------------------------


UNDERWRITERS REINSURANCE COMPANY


By:    /s/ James P. Slattery
       -----------------------------------------------------
Title: President
       -----------------------------------------------------
DATE:  6/30/03
       -----------------------------------------------------


                                  Attest:  /s/ Peter R. Sismondo
                                           -------------------------------------
                                  Title:   Secretary
                                           -------------------------------------
                                  DATE:    6/30/03
                                           -------------------------------------


LASALLE BANK NATIONAL ASSOCIATION


By:    /s/ James M. Feldman
       -----------------------------------------------------
Title: Group SVP
       -----------------------------------------------------
DATE:  6/30/03
       -----------------------------------------------------


                                  Attest:  /s/ Ken Rakowski
                                           -------------------------------------
                                  Title:   FVP
                                           -------------------------------------
                                  DATE:    6/30/03
                                           -------------------------------------


LASALLE BANK NATIONAL ASSOCIATION


                                          (AS SECURITIES INTERMEDIARY UNDER
                                          ARTICLE VII OF THIS TRUST AGREEMENT)


By:    /s/ James M. Feldman
       -----------------------------------------------------
Title: Group SVP
       -----------------------------------------------------
DATE:  6/30/03
       -----------------------------------------------------


                                  Attest:  /s/ Ken Rakowski
                                           -------------------------------------
                                  Title:   FVP
                                           -------------------------------------
                                  DATE:    6/30/03
                                           -------------------------------------