In this task, you're given a passage that represents a legal contract or clause between multiple parties, followed by a question that needs to be answered. Based on the paragraph, you must write unambiguous answers to the questions and your answer must refer a specific phrase from the paragraph. If multiple answers seem to exist, write the answer that is the most plausible.
One example: Exhibit 10.16 SUPPLY CONTRACT Contract No: Date: The buyer/End-User: Shenzhen LOHAS Supply Chain Management Co., Ltd. ADD: Tel No. : Fax No. : The seller: ADD: The Contract is concluded and signed by the Buyer and Seller on , in Hong Kong. 1. General provisions 1.1 This is a framework agreement, the terms and conditions are applied to all purchase orders which signed by this agreement (hereinafter referred to as the  order ). 1.2 If the provisions of the agreement are inconsistent with the order, the order shall prevail. Not stated in order content will be subject to the provisions of agreement. Any modification, supplementary, give up should been written records, only to be valid by buyers and sellers authorized representative signature and confirmation, otherwise will be deemed invalid. 2. The agreement and order 2.1 During the validity term of this agreement, The buyer entrust SHENZHEN YICHANGTAI IMPORT AND EXPORT TRADE CO., LTD or SHENZHEN LEHEYUAN TRADING CO, LTD (hereinafter referred to as the  entrusted party  or  YICHANGTAI  or  LEHEYUAN ), to purchase the products specified in this agreement from the seller in the form of orders. 2.2 The seller shall be confirmed within three working days after receipt of order. If the seller finds order is not acceptable or need to modify, should note entrusted party in two working days after receipt of the order, If the seller did not confirm orders in time or notice not accept orders or modifications, the seller is deemed to have been accepted the order. The orders become effective once the seller accepts, any party shall not unilaterally cancel the order before the two sides agreed . 2.3 If the seller puts forward amendments or not accept orders, the seller shall be in the form of a written notice to entrusted party, entrusted party accept the modified by written consent, the modified orders to be taken effect. 2.4 Seller\'s note, only the buyer entrust the entrusted party issued orders, the product delivery and payment has the force of law.

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Source: LOHA CO. LTD., F-1, 12/9/2019





3. GOODS AND COUNTRY OF ORIGIN: 4. Specific order: The products quantity, unit price, specifications, delivery time and transportation, specific content shall be subject to the purchase order issued by entrusted party which is commissioned the buyer. 5. PACKING: To be packed in new strong wooden case(s) /carton(s), suitable for long distance transportation and for the change of climate, well protected against rough handling, moisture, rain, corrosion, shocks, rust, and freezing. The seller shall be liable for any damage and loss of the commodity, expenses incurred on account of improper packing, and any damage attributable to inadequate or improper protective measures taken by the seller in regard to the packing. One full set of technical All wooden material of shipping package must be treated as the requirements of Entry-Exit Inspection and Quarantine Bureau of China, by the agent whom is certified by the government where the goods is exported. And the goods must be marked with the IPPC stamps, which are certified by the government agent of Botanical-Inspection and Quarantine Bureau. 6. SHIPPING MARK: The Sellers shall mark on each package with fadeless paint the package number, gross weight, net weight, measurements and the wordings:  KEEP AWAY FROM MOISTURE , HANDLE WITH CARE   THIS SIDE UP  etc. and the shipping mark on each package with fadeless paint. 7. DATE OF SHIPMENT: According to specific order by YICHANGTAI or LEHEYUAN. 8. PORT OF SHIPMENT:

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Source: LOHA CO. LTD., F-1, 12/9/2019





9. PORT OF DESTINATION: SHENZHEN, GUANGDONG, CHINA 10. INSURANCE: To be covered by the Seller for 110% invoice value against All Risks and War Risk. 11. PAYMENT: Under Letter of Credit or T/T: Under the Letter of Credit: The Buyer shall open an irrevocable letter of credit with the bank within 30 days after signing the contract, in favor of the Seller, for 100% value of the total contract value. The letter of credit should state that partial shipments are allowed. The Buyer\'s agent agrees to pay for the goods in accordance with the actual amount of the goods shipped. 80% of the system value being shipped will be paid against the documents stipulated in Clause 12.1. The remaining 20% of the system value being shipped will be paid against the documents stipulated in Clause 12.2. The Letter of Credit shall be valid until 90 days after the latest shipment is effected. Under the T/T The trustee of the buyer remitted the goods to the seller by telegraphic transfer in batches as agreed upon after signing each order. 12. DOCUMENTS: 12.1 (1) Invoice in 5 originals indicating contract number and Shipping Mark (in case of more than one shipping mark, the invoice shall be issued separately). (2) One certificate of origin of the goods. (3) Four original copies of the packing list. (4) Certificate of Quality and Quantity in 1 original issued by the agriculture products base. (5) One copy of insurance coverage (6) Copy of cable/letter to the transportation department of Buyer advising of particulars as to shipment immediately after shipment is made.

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Source: LOHA CO. LTD., F-1, 12/9/2019





12.2 (1) Invoice in 3 originals indicating contract number and L/C number. (2) Final acceptance certificate signed by the Buyer and the Seller. 13. SHIPMENT: CIP The seller shall contract on usual terms at his own expenses for the carriage of the goods to the agreed point at the named place of destination and bear all risks and expenses until the goods have been delivered to the port of destination. The Sellers shall ship the goods within the shipment time from the port of shipment to the port of destination. Transshipment is allowed. Partial Shipment is allowed. In case the goods are to be dispatched by parcel post/sea-freight, the Sellers shall, 3 days before the time of delivery, inform the Buyers by cable/letter of the estimated date of delivery, Contract No., commodity, invoiced value, etc. The sellers shall, immediately after dispatch of the goods, advise the Buyers by cable/letter of the Contract No., commodity, invoiced value and date of dispatch for the Buyers. 14. SHIPPING ADVICE: The seller shall within 72 hours after the shipment of the goods, advise the shipping department of buyer by fax or E-mail of Contract No., goods name, quantity, value, number of packages, gross weight, measurements and the estimated arrival time of the goods at the destination. 15. GUARANTEE OF QUALITY: The Sellers guarantee that the commodity hereof is complies in all respects with the quality and specification stipulated in this Contract. 16. CLAIMS: Within 7 days after the arrival of the goods at destination, should the quality, specification, or quantity be found not in conformity with the stipulations of the Contract except those claims for which the insurance company or the owners of the vessel are liable, the Buyers, on the strength of the Inspection Certificate issued by the China Commodity Inspection Bureau, have the right to claim for replacement with new goods, or for compensation, and all the expenses (such as inspection charges, freight for returning the goods and for sending the replacement, insurance premium, storage and loading and unloading charges etc.) shall be borne by the Sellers. The Certificate so issued shall be accepted as the base of a claim. The Sellers, in accordance with the Buyers\' claim, shall be responsible for the immediate elimination of the defect(s), complete or partial replacement of the commodity or shall devaluate the commodity according to the state of defect(s). Where necessary, the Buyers shall be at liberty to eliminate the defect(s) themselves at the Sellers\' expenses. If the Sellers fail to answer the Buyers within one weeks after receipt of the aforesaid claim, the claim shall be reckoned as having been accepted by the Sellers.

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Source: LOHA CO. LTD., F-1, 12/9/2019





17. FORCE MAJEURE: The Sellers shall not be held responsible for the delay in shipment or non-delivery, of the goods due to Force Majeure, which might occur during the process of manufacturing or in the course of loading or transit. The Sellers shall advise the Buyers immediately of the occurrence mentioned above and within fourteen days thereafter, the Sellers shall send by airmail to the Buyers a certificate of the accident issued by the competent government authorities, Chamber of Commerce or registered notary public of the place where the accident occurs as evidence thereof. Under such circumstances the Sellers, however, are still under the obligation to take all necessary measures to hasten the delivery of the goods. In case the accident lasts for more than 10 weeks, the Buyers shall have the right to cancel the Contract. 18. LATE DELIVERY AND PENALTY: Should the Sellers fail to make delivery on time as stipulated in the Contract, with exception of Force Majeure causes specified in Clause 17 of this Contract, the Buyers shall agree to postpone the delivery on condition that the Sellers agree to pay a penalty which shall be deducted by the paying bank from the payment. The penalty, however, shall not exceed 5% of the total value of the goods involved in the late delivery. The rate of penalty is charged at 0.5% for every seven days, odd days less than seven days should be counted as seven days. In case the Sellers fail to make delivery ten weeks later than the time of shipment stipulated in the Contract, the Buyers have the right to cancel the contract and the Sellers, in spite of the cancellation, shall still pay the aforesaid penalty to the Buyers without delay, the seller should refund the money received and pay the 30% of the total goods price of the penalty 19. ARBITRATION: All disputes in connection with this Contract or the execution thereof shall be settled friendly through negotiations. In case no settlement can be reached, the case may then be submitted for arbitration to the Foreign Economic and Trade Arbitration Committee of the China Beijing Council for the Promotion of International Trade in accordance with its Provisional Rules of Procedures by the said Arbitration Committee. The Arbitration shall take place in Beijing and the decision of the Arbitration Committee shall be final and binding upon both parties; neither party shall seek recourse to a law court nor other authorities to appeal for revision of the decision. Arbitration fee shall be borne by the losing party. 20. This final price is the confidential information. Dissemination, distribution or duplication of this price is strictly prohibited.

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Source: LOHA CO. LTD., F-1, 12/9/2019





21. Law application It will be governed by the law of the People\'s Republic of China ,otherwise it is governed by United Nations Convention on Contract for the International Sale of Goods. 22. <<Incoterms 2000>> The terms in the contract are based on (INCOTERMS 2000) of the International Chamber of Commerce. 23. The Contract is valid for 5 years, beginning from and ended on . This Contract is made out in three originals in both Chinese and English, each language being legally of the equal effect. Conflicts between these two languages arising there from, if any, shall be subject to Chinese version. One copy for the Sellers, two copies for the Buyers. The Contract becomes effective after signed by both parties. THE BUYER: THE SELLER: SIGNATURE: SIGNATURE: 6

Source: LOHA CO. LTD., F-1, 12/9/2019 
Question: Highlight the parts (if any) of this contract related to  Document Name  that should be reviewed by a lawyer. Details: The name of the contract
Solution is here: SUPPLY CONTRACT
Explanation: This question is based on the following sentence in the passage "Exhibit 10.16 SUPPLY CONTRACT Contract No: Date: The buyer/End-User: Shenzhen LOHAS Supply Chain Management Co., Ltd. ADD: Tel No. : Fax No. : The seller: ADD: The Contract is concluded and signed by the Buyer and Seller on , in Hong Kong.". This line explicitly contains the name of the contract at the start.

Now, solve this: EXHIBIT 10.26                                       MICOA                                 AGENCY AGREEMENT

         Mutual Insurance Corporation of America, a Michigan insurance corporation (MICOA) and Stratton, Cheeseman & Walsh-Nevada, Inc., a Nevada corporation, (Agency), (sometimes commonly referred to as the Parties) agree as follows:

A.       AUTHORITY OF AGENCY

         Subject to requirements imposed by law, the underwriting rules,          procedures and regulations of MICOA and this agreement, the Agency is          authorized to:

         1.       Solicit within the State of Nevada, receive and transmit                   immediately and directly to MICOA, proposals for health care                   liability insurance contracts for which a commission is                   specified in the schedule of commissions provided by Exhibit                   A, attached and as amended or supplemented by such attachments                   from time to time.

         2.       Produce and deliver certificates of insurance and written                   binders in accordance with MICOA underwriting requirements.                   The Agency is not authorized to accept or bind any risk or to                   otherwise obligate MICOA without specific authority from                   MICOA.

         3.       Provide all usual and customary services of an Agency on all                   policies placed with MICOA subject to the following:

                  a.       MICOA will not be responsible for Agency expenses                            including but not limited to rent, transportation,                            employee hire or solicitor's fees, postage,                            telegrams, telephone, advertising, licensing fees or                            any other Agency expenses whatsoever.

                  b.       The Agency will not undertake or initiate advertising                            of any nature in connection with business or policies                            related to MICOA without the approval of MICOA.

         4.       To promptly report all claims and losses of which the Agency                   has knowledge and properly notify MICOA when the Agency                   receives notice of the commencement of any related legal                   action. Agency shall refrain from admitting or denying                   liability on the part of the company in connection with any                   claim or lawsuit.

         5.       In return for the exclusive appointment of Agency by MICOA to                   sell its professional liability products listed on the                  &sbsp;attached Commission Schedule

                  in Nevada, Agency agrees not to sell any competing                   professional liability products in Nevada, without the written                   consent of MICOA. Provided that, if a particular risk has been                   submitted to MICOA and MICOA has declined that risk, then                   Agency may search appropriate markets for placement of that                   risk, and may place that risk with another insurance company.

         6.       Designated Agent representatives upon request from MICOA will                   be expected to participate in MICOA's Nevada Market Managers                   Group activities and to attend all scheduled meetings.

         7.       MICOA will share on a project basis development costs of all                   promotional materials and some advertising costs related to                   Nevada sales, provided that all such expenditures or budgets                   for them are approved by MICOA in writing in advance.

         8.       Agency may solicit subagencies for appointment, subject to                   MICOA's prior written approval of each subagency following                   disclosure to and review by MICOA of information requested by                   MICOA for each proposed subagency. All such appointments by                   Agent shall stipulate that MICOA may terminate the subagency                   at any time without cause upon at least 90 days notice and                   that the subagency shall comply with all MICOA requirements                   and duties owed MICOA by Agency concerning solicitation,                   communications, and service to insureds. Subagencies shall                   also be required to submit all proposals immediately and                   directly to MICOA.

B.       MICOA BILLED POLICIES

         For business subject to Exhibit A, placed with and billed by MICOA          directly to the policyholder, the following shall apply in addition to          all the other provisions of this agreement:

         1.       The processing and submittal of all such business shall be                   subject to provisions outlined in MICOA's written requirements                   and forms as they may be implemented by MICOA from time to





                  time;

         2.       Commissions on premiums shall be paid to the Agency within 30                   business days of the month in which such premiums are received                   and recorded by MICOA, subject to deduction by MICOA of any                   return commissions due from the Agency.

         3.       Except as provided in Section D or unless authorized by the                   Agency, MICOA or its affiliates shall not use its records of                   business placed by the Agency with MICOA to solicit individual                   policyholders for the sale of other lines of

                                      -2-

                  insurance or other products or services. When the Agency                   grants such authorization, Agency shall be paid the applicable                   commission on such sales, provided an appropriate agreement is                   in place with MICOA.

         4.       If this agreement is terminated, MICOA shall, at the Agency's                   request, provide the Agency with a list of existing                   MICOA-billed policies placed by the Agency including their                   expiration dates.

         5.       The Agency's name shall appear on all policies, premium                   notices, and cancellation notices to policyholders. Copies of                   all such items sent to policyholders shall be provided by                   MICOA to the Agency.

C.       POLICY CANCELLATION

         Cancellation of any policy in force, when requested in writing by the          insured, will be honored by MICOA, except for those MICOA is not          otherwise permitted to cancel.

D.       EXPIRATIONS

         1.       In the event this Agreement is terminated for any reason,                   MICOA agrees to purchase from Agency, and Agency agrees to                   sell to MICOA Agency's ownership interest in the expirations                   for the MICOA insurance issued pursuant to this Agreement. The                   purchase price shall be two times Agency's commissions on                   business produced directly by Agency during the last 12 full                   months preceding the termination date. The purchase shall be                   completed within 60 calendar days after the termination date.                   In return for this payment, for a two-year period following                   the termination date, Agency will not directly or indirectly                   sell any professional liability insurance to any individuals                   or entities who were MICOA insureds in Nevada at the time of                   termination of this Agreement.

         2.       If Agency enters into a subagency agreement under which the                   subagency has the right to retain ownership of expirations on                   business produced by the subagency, then the purchase of                   expirations under subparagraph 1 above will not include the                   purchase of those subagency expirations, and the purchase                   price paid to Agency will not include the commissions paid for                   such business produced by the subagency.

                                      -3-

E.       AGENCY'S ERRORS AND OMISSION, AND FIDELITY & ELECTRONIC CRIME INSURANCE

         The Agency will maintain valid errors and omissions insurance, with          minimum limits of $1,000,000 per incident, and a fidelity and          electronic crime policy through an insurer, both of which shall contain          terms and limits of coverage acceptable to MICOA covering the Agency's          solicitors and each of its employees. The Agency shall provide MICOA a          copy of each policy; doing so on a regular and current basis shall be a          precondition to all of Agency's rights under this Agreement, including          but not limited to the payment of all earned commissions.

F.       TERMINATION OF AGREEMENT

         1.       This agreement shall terminate:

                  a.       Automatically if any public authority cancels or                            declines to renew the Agency's license or Certificate                            of Authority.

                  b.       Immediately if either party gives detailed written                            notice to the other of alleged gross and willful                            misconduct, fraud or material misrepresentation.

         2.       This Agreement shall terminate, subject to any automatic                   renewal or extension for one year as required by law, upon                   either party giving at least one hundred twenty (120) days                   advance written notice to the other, if not otherwise contrary                   to applicable law or this Agreement.

         3.       If the Agency is delinquent in either accounting or payment of





                  monies due MICOA, MICOA may by written notice to the Agency                   immediately terminate, suspend or modify any of the provisions                   of this agreement. Such action shall not be taken by MICOA                   over minor differences between the records of the Agency and                   MICOA.

         4.       All supplies, including forms and policies furnished by MICOA                   and any copies or other reproductions of them, shall remain                   the property of MICOA and shall be returned to MICOA or its                   representative upon demand.

G.       INDEMNIFICATION

         The respective parties shall indemnify and hold one another harmless as          follows:

                                      -4-

         1.       MICOA shall indemnify and hold Agency harmless against any                   MICOA act or omission, except to the extent the Agency has                   caused, compounded, or contributed to such error.

         2.       Agency shall indemnify and hold Agency harmless against any                   act or omission of the Agency, except to the extent MICOA has                   caused, compounded, or contributed to such error.

         3.       The Agency and MICOA shall properly notify one another upon                   receiving notice of the commencement of any action related to                   such liabilities. MICOA shall be entitled to participate in                   any such action or in consultation with Agency and its carrier                   to assume the defense of any such action. If MICOA assumes the                   defense of any such action, it shall not be liable to the                   Agency for any legal or other expenses subsequently incurred                   on the Agency's behalf absent MICOA's advance approval of such                   expenses.

         4.       Neither party shall, except at its own risk and expense,                   voluntarily assume any liability, make any payment or incur                   any expense without the prior written consent of the other.

H.       POTENTIAL OPPORTUNITIES

         1.       Other Programs. Agency and MICOA agree that Agency may be                   offered the opportunity to support MICOA's workers'                   compensation, and its other nonphysician professional                   liability or product programs in Nevada when MICOA proceeds                   with related marketing plans. Such plans may also include                   Agency's involvement in sales of MICOA commercial and personal                   products. Appropriate agreements must be negotiated separately                   from this agreement for each such product, and for each such                   territory, including but not limited to Nevada.

         2.       Territory. Agency and MICOA further agree to consider, subject                   to successful negotiation of appropriate agreements separate                   from this agreement, expansion of Agencies' sales territories                   for MICOA beyond Nevada.

I.       MISCELLANEOUS

         1.       Amendment. This agreement may be amended only in writing by                   mutual agreement of the Agency and MICOA, except that MICOA's                   name herein shall be deemed changed automatically for purposes                   of this agreement without written amendment upon approval of                   any such change by MICOA's domiciliary regulator.

         2.       Non Waiver. Any failure by MICOA to insist upon compliance                   with any provisions of this Agreement or of the rules and                   regulations of MICOA shall not be construed as or constitute a                   waiver of them by MICOA.

                                      -5-

         3.       Integrated Agreement. This Agreement and its attachments as                   modified from time to time supersedes and replaces as of its                   effective date, all previous agreements, if any, between MICOA                   and the Agency. There are other agreements between MICOA and                   the Agency's parent corporation, SC&W, which are not                   superceded.

         4. &bbsp;     Independent Contractor. The Agency is an independent insurance                   Agency and independent contractor, and not an employee,                   manager, officer or owner of MICOA.

         5.       Applicable Law. This Agreement shall be interpreted under the                   laws of the State of Nevada. Any provisions of this Agreement                   or any amendments to the Agreement that are or become in                   conflict with any applicable statutes or regulations shall be                   deemed to be amended to conform to those statutes or                   regulations.

         6.       Counterparts. This Agreement and any Exhibits which require                   signatures may be executed in counterparts which shall





                  together be regarded as binding upon the Parties.

         7.       Authority. The persons signing below represent and warrant                   that they are duly authorized representatives of the                   respective Parties, fully willing and able to execute this                   Agreement.

         8.       Assignment. MICOA may assign this Agreement to its parent,                   affiliate, or subsidiary corporations who are licensed                   insurers upon written notice to Agency. Agency may not assign                   this Agreement without the written permission of MICOA or its                   successors or assigns.

         9.       Resolution of Disputes. In the event of any dispute arising                   out of this Agreement, MICOA and Agency agree to submit such                   dispute to arbitration as follows:

                  a.       There shall be three arbitrators; one shall be                            selected by the Agency, one shall be selected by                            MICOA, and a third shall be selected by those two                            arbitrators. If the two arbitrators cannot agree on                            the selection of a third, American Arbitration                            Association's regional office closest to Agency's                            main office shall be requested to appoint the third                            arbitrator.

                  b.       The determination of the arbitrators shall be final                            and binding upon the Agency and MICOA.

                  c.       Neither MICOA nor the Agency shall be entitled to                            punitive and/or exemplary damages.

                                      -6-

                  d.       The arbitration shall be conducted in accordance with                            the procedures of the above referenced regional                            office of the American Arbitration Association. The                            Agency and MICOA shall pay the cost of their                            arbitrator and share equally in the expense of the                            third arbitrator.

                  e.       Either Party, may where permitted by the law of                            Nevada, enter judgment upon the arbitrators' award.

         10.      Year 2000 Compliance. Agency must at times assure that any of                   its computers, data processing systems, software components,                   and network arrangements use for MICOA business completely and                   accurately, present, produce, store and calculate all dates                   after December 31, 1999; and that they will not produce                   abnormally ending or incorrect results involving such dates as                   used in any forward or regression data based functions. All                   such items must yield date-related functionalities and date                   fields which accurately indicate the century and millennium                   and correctly perform all calculations involving a four digit                   year field.

Signed and effective this 25th day of May, 1999.

                                         AGENCY

                                         By:  /s/ Terrence L. Walsh                                             ------------------------------------

                                         Its:   President

                                         MICOA

                                         By:  /s/ Thomas C. Payne, M.D.                                             ------------------------------------                                             Thomas C. Payne, M.D.                                             Secretary/Treasurer

                                      -7-

                                    EXHIBIT A

                                AGENCY AGREEMENT                    SCHEDULE OF COMMISSIONS AND WRITTEN PREMIUM

New Business Policies:             12% of the annual premium Renewal Policies:                  12% of the annual premium

Appointed agents who are not a party to a current MICOA agency contract and/or





are not affiliated with an agency which has an agency contract will receive a 1% commission rate for all lines of business stated above.

Commission will decrease by .5% effective 10/1/99 as part of a repayment program under a project memorandum dated 4/7/99. This decrease will stay in effect until SC&W reaches $10MM in premium or at a maximum of 10 years.

                                      -8-

April 7, 1999

Mr. Terrence Walsh Stratton, Cheeseman & Walsh, Inc. 1301 N. Hagadorn East Lansing, MI 48823

RE:      NEVADA DEPARTMENT          PROJECT MEMORANDUM

Dear Terry:

In response to MICOA's request to develop a complete insurance distribution system for Nevada, including physicians professional liability and personal and commercial insurance by July 1999, Stratton, Cheeseman & Walsh, Inc. (SC&W) has spent and will continue to spend a substantial amount of time and money. In recognition that these expenditures will directly benefit MICOA, SC&W and MICOA agree to the following:

-    During the first two years of developing the Nevada distribution system, a      portion of the start up costs will be shared. Subject to compliance with a      detailed budget developed by SC&W and MICOA, these reimbursable costs shall      include:

     -    Salaries and benefits for SCW-Nevada, Inc. employees and agents.

     -    20% of your total personal benefits and salary, and 100% of your           personal travel expenses incurred with respect to the Nevada office,           which respective percentages are intended to recognize your personal           support of MICOA's Nevada initiative.

     -    Legal expenses directly attributable to the Nevada initiative.

     -    Nevada office set up.

     -    Consultant's expenses paid by SC&W in direct support of the           initiative.

     -    The above costs are to be designated and itemized in the preapproved           budget and reimbursed by MICOA at 100% for the first full year of           development and 50% for the second year. It is agreed that the first           year began effective October 1, 1997.

-    All other costs attributable to the normal operation of the Nevada      insurance agency site are the sole responsibility of SC&W.

-    After the first two years (i.e. after October 1, 1999) all expenses will      be borne by SC&W and those amounts paid to SC&W during the first two years      shall be repaid. Repayment shall be through reduction of commissions due      SC&W by 0.5% or if

                                      -7-

     SC&W exceeds $10.0 million in premium revenues by offset in the event any      money is owed the Agency by MICOA. Such reduction or offset shall occur for      so long as necessary to repay amounts reimbursed by MICOA during the      two-year period of development; but in no event will repayment be collected      for a period of greater than ten years. Any unpaid amounts at the end of      ten years shall be forgiven by MICOA.

-    Nevada rent expenses will be shared on a 50/50 basis between MICOA and      SC&W.

-    In order to allow SC&W to expand the distribution system in Nevada with      select and controlled subagents, an exclusive agency agreement will be      negotiated which will spell out the terms and conditions of the      relationship. A commission rate of 12% will be paid for both new and      renewal physicians liability business. Other commission rates will be      determined as products become available. This Agency Agreement should be      finalized by April 30, 1999.

-    MICOA may pay future payments advanced pursuant to this letter on a monthly      basis, unless doing so would be impractical, in which case another periodic      form of&bbsp;payment will be arranged. Amounts owed for past time periods will      be paid as follows: one-third by March 25, 1999; one-third by May 1, 1999;      and one-third by June 1, 1999. All other amounts owed under this Project      Memorandum to be paid by October 1, 1999.

SC&W's responsibilities, under this Project Memorandum, will include assisting MICOA with market assessment, distribution, and sales integration into Nevada. SC&W agrees not to serve in a strategic marketing capacity for another insurer





in Nevada while it is providing such services for MICOA or for a period of one year thereafter.

Terry, please countersign and return this letter to indicate your acceptance.

Sincerely,

MUTUAL INSURANCE CORPORATION OF AMERICA

/s/ Thomas C. Payne, M.D. ----------------------------------------- Thomas C. Payne, M.D. Secretary/Treasurer

ACCEPTED AND AGREED TO: STRATTON, CHEESEMAN & WALSH, INC.

/s/ Terrence L. Walsh ----------------------------------------- Terrence L. Walsh CEO 
Question: Highlight the parts (if any) of this contract related to Insurance that should be reviewed by a lawyer. Details: Is there a requirement for insurance that must be maintained by one party for the benefit of the counterparty?
Solution:
The Agency will maintain valid errors and omissions insurance, with          minimum limits of $1,000,000 per incident, and a fidelity and          electronic crime policy through an insurer, both of which shall contain          terms and limits of coverage acceptable to MICOA covering the Agency's          solicitors and each of its employees.