Document:

<PAGE>
                                                                    Exhibit 10.4

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                              REINSURANCE AGREEMENT

                                    EFFECTIVE

                                 JANUARY 1, 2003

                                     BETWEEN

                           WINDSOR INSURANCE COMPANY,
                                    REINSURER

                                       AND

                 GREAT AMERICAN INSURANCE COMPANY AND AFFILIATES
                                    REASSURED

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>             <C>                                                                   <C>
ARTICLE 1        Business Covered.......................................................Page 1

ARTICLE 2        Reinsuring Clause......................................................Page 1

ARTICLE 3        Obligatory Agreement...................................................Page 2

ARTICLE 4        Definitions............................................................Page 2

ARTICLE 5        Consideration..........................................................Page 3

ARTICLE 6        Administration.........................................................Page 4

ARTICLE 7        Term...................................................................Page 5

ARTICLE 8        Reinsurance Follows Original Policies..................................Page 5

ARTICLE 9        Joint Reinsurance Programs.............................................Page 5

ARTICLE 10       Reports................................................................Page 5

ARTICLE 11       Renewals and New Business..............................................Page 6

ARTICLE 12       Assistance and Cooperation.............................................Page 7

ARTICLE 13       Indemnification........................................................Page 7

ARTICLE 14       Termination............................................................Page 7

ARTICLE 15       Access to Records......................................................Page 7

ARTICLE 16       Errors and Omissions...................................................Page 7

ARTICLE 17       Notice Provision.......................................................Page 8

ARTICLE 18       Insolvency.............................................................Page 8

ARTICLE 19       Non-Assignability......................................................Page 9

ARTICLE 20       Unauthorized Reinsurance...............................................Page 9

ARTICLE 21       Arbitration...........................................................Page 10

ARTICLE 22       Miscellaneous.........................................................Page 11

                 Signatures............................................................Page 12
</TABLE>

                                       ii
<PAGE>

                              REINSURANCE AGREEMENT
                  (hereinafter referred to as the "Agreement")

THIS AGREEMENT, entered into as of the 1st day of January, 2003, by and between
Great American Insurance Company and its affiliates signatory hereto
(hereinafter "Reassured") and Windsor Insurance Company (hereinafter
"Reinsurer").

                                    ARTICLE 1

BUSINESS COVERED

Reassured hereby cedes to Reinsurer and Reinsurer hereby assumes from Reassured
one hundred percent (100%) of Reassured's ultimate net liability for Ultimate
Net Aggregate Losses (as hereinafter defined) under all policies, certificates,
binders, contracts or agreements of personal lines insurance (other than
business written directly by Reassured and not through any of Reassured's
independent insurance agents or brokers) written by Reassured's personal lines
division and attributed to summing code 0063 and profit center 3480 which are or
were in force on or prior to the date hereof or issued or renewed after the date
hereof ("Reassured's Business"). Reassured's Business shall include all such
personal lines insurance business assumed by Reassured under the Pooling
Agreement in effect between Reassured and affiliated insurance companies and all
such personal lines business distributed to profit centers which preceded or
which succeed and replace the profit centers listed above.

                                   ARTICLE 2

REINSURING CLAUSE

A.      Except as provided in paragraphs B and C below with respect to New York
        and New Jersey business, Reinsurer shall be liable to pay 100% of the
        Ultimate Net Aggregate Losses together with all other obligations which
        arise out of Reassured's Business, including, without limitation, all
        obligations relating to or arising out of any insolvency pool, guaranty
        fund, FAIR plan, wind pool, auto facility, hurricane catastrophe fund or
        other similar plan or fund.

B.      1)      Reassured will be responsible for, and Reinsurer will not
                assume, all New York assigned risk assessments and assignments
                generated by Reassured's Business written prior to January 1,
                2003. Reinsurer will be responsible for and will assume all New
                York assigned risk assessments and assignments based on
                Reassured's Business written pursuant to Article 11 hereof on or
                after January 1, 2003.

        2)      New York assigned risk assessments and assignments referred to
                in 1) above shall be allocated among the members of the holding
                company group of which Reinsurer and Reassured were a part as of
                September 30, 2002 ratably in the same manner as they have
                historically been allocated with excess credits, if any, being
                allocated among and between the members at no cost to any of the
                members.

                                       1
<PAGE>

C.      1)      Reassured shall be obligated for any liabilities or requirements
                to the extent that they arise out of any dispute between
                Reassured and Palisades Insurance Company and/or Palisades
                Safety and Insurance Association in connection with the Master
                Transfer Agreement dated as of September 5, 2002, between the
                parties.

        2)      Reassured's Business will not include any voluntary business in
                New Jersey with an effective date after December 31, 2002.
                Reinsurer shall not be responsible for any (a) assigned risk
                assessments or assignments, or (b) other involuntary assessments
                (including excess profits owed), which are attributable to New
                Jersey, regardless of the date thereof.

                                    ARTICLE 3

OBLIGATORY AGREEMENT

The liability of Reinsurer with respect to all business reinsured under this
Agreement is obligatory and the liability shall begin and end simultaneously
with that of the Reassured. Reassured shall not make or agree to any
alterations, waivers, cancellations, or changes in rates, terms, or conditions
in connection with the business subject to this Agreement without the consent of
Reinsurer, which consent shall not be unreasonably withheld or delayed, unless
the same are required by law or regulation.

                                    ARTICLE 4

DEFINITIONS

A.      "Ultimate Net Aggregate Losses" shall mean the sum of:

        1)      Actual loss payments paid in settlement of claims or suits or in
                satisfaction of judgments on Reassured's Business less any
                Salvage collected;

        2)      Loss Expense paid in connection with Reassured's Business;

        3)      Extracontractual Obligations arising from conduct of Reinsurer
                or Reassured and paid in connection with the handling or
                resolution of any losses reinsured hereunder;

        4)      All losses, loss adjustment expenses and costs paid in
                connection with Corporate Obligations, including, without
                limitation, all costs and expenses incurred in claims, suits,
                arbitrations, regulatory proceedings and other proceedings in
                connection therewith; and

        5)      Less collectible reinsurance on Reassured's Business.

B.      "Loss Expense" shall mean all expenses incurred in the investigation,
        adjustment, and defense of all claims under the Reassured's Business,
        including, without limitation, loss expenses, court costs, declaratory
        judgment expenses, and pre-judgment and post-judgment interest. Loss

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<PAGE>

        Expense shall also include any ordinary and reasonable unallocated loss
        adjustment expense incurred by Reassured in the handling of claims
        arising out of Reassured's Business.

C.      "Salvages" shall mean any recovery, including any subrogation recovery,
        made in connection with a claim or loss, less expenses paid in making
        such recovery. All salvages, recoveries, and payments recovered or
        received subsequent to a loss payment under this Agreement shall be
        applied as if recovered and received prior to the loss payment and all
        necessary adjustments shall be made by the parties.

D.      "Extracontractual Obligations" shall mean those liabilities not covered
        under any other provision of this Agreement and which arise from or in
        connection with the operation, administration, underwriting or claim
        handling on the Reassured's Business, such liabilities arising because
        of, but not limited to, the following: failure to settle within the
        policy limit, or by reason of alleged or actual negligence, fraud or bad
        faith in rejecting an offer of settlement, or denying coverage, or in
        the preparation or prosecution of an appeal consequent upon such action.

        The date on which an Extracontractual Obligation is incurred by
        Reassured shall be deemed, in all circumstances, to be the date of the
        action taken or not taken giving rise to the extracontractual action.

        "Extracontractual Obligations" shall also include losses in excess of
        policy limits of Reassured's original policy, such loss in excess of
        limit having been incurred because of failure by Reassured or Reinsurer
        to settle within the policy limit or by reason of alleged or actual
        negligence, fraud, or bad faith in rejecting coverage or an offer of
        settlement or in the preparation of the defense or in the trial of any
        action against an insured or reinsured or in the preparation of
        prosecution of an appeal consequent upon such action. For purposes of
        this definition, the word "loss" shall mean any amounts for which
        Reassured would have been contractually liable to pay had it not been
        for the limit of the original policy.

        In no event shall coverage for Extracontractual Obligations be provided
        hereunder to the extent that such coverage is not permitted under New
        York law.

E.      "Corporate Obligations" shall mean all liabilities related to
        Reassured's Business other than (a) Extracontractual Obligations and (b)
        claims payments, including loss adjustment expenses, and (c) other
        obligations for which a reserve has been transferred to Reinsurer. The
        date on which a Corporate Obligation is incurred by Reassured shall be
        deemed, in all circumstances, to be the date of the action taken or not
        taken giving rise to the obligation.

                                    ARTICLE 5

CONSIDERATION

        In consideration for the assumption by Reinsurer of that portion of
        Reassured's Business which is or was in force on or prior to the date
        hereof, Reassured shall transfer to Reinsurer funds

                                       3
<PAGE>

        and/or securities equal in market value to $115.3 Million. In
        consideration for the assumption by Reinsurer of that portion of
        Reassured's Business issued or renewed after the date hereof, Reinsurer
        shall receive one hundred percent (100%) of the net premiums received by
        Reassured on such business and shall pay to Reassured a ceding
        commission equal to Reassured's cost of producing such business. In
        addition to the ceding commission on Reassured's Business issued or
        renewed after the date hereof, Reinsurer shall pay a fronting fee on
        such business equal to four-tenths of one percent (.4%) of gross
        premiums received. The amount of the fronting fee shall be increased in
        the event that Infinity Property and Casualty Corporation is no longer
        an affiliate, as defined by statutory accounting rules, of American
        Financial Group, Inc. in an amount sufficient to fully compensate
        Reassured for the amount of any increased Standard & Poors' capital
        charge for unaffiliated companies reinsurance recoverables. "Net
        premiums" shall mean gross premiums received less return premiums and
        premiums paid for reinsurance ceded to other than Reinsurer.

                                    ARTICLE 6

ADMINISTRATION

A.      Reinsurer shall be entitled to receive and retain for its own account
        all incoming sums of money on or in connection with Reassured's Business
        due or becoming due to Reassured on or after the effective date hereof.

B.      The parties agree that Reinsurer shall have the right and obligation, at
        its expense, to exercise and perform all of Reassured's rights and
        obligations in connection with Reassured's Business and Reassured hereby
        assigns, transfers, and grants to Reinsurer the rights, powers, and
        privileges of Reassured to exercise and perform the same. Without
        limiting the foregoing, it is agreed that Reinsurer shall have the right
        and/or obligation to:

        1)      give, receive, execute, issue, and deliver all notices,
                endorsements, waivers, demands, proofs, and agreements of every
                kind and nature which may be necessary or desirable in
                connection with the policies or any reinsurance in connection
                with the policies covered by this Agreement;

        2)      ask, demand, attach, sue for, recover, receive, and receipt for
                all premiums, debts, and sums of money due or becoming due on,
                under or in connection with Reassured's Business;

        3)      to adjust, settle, pay, defend, arbitrate, and/or compromise any
                and all claims under or in connection with Reassured's Business;
                and

        4)      prosecute or defend any action which Reinsurer deems necessary
                or desirable in order to exercise the rights, powers, and
                privileges granted to Reinsurer hereunder.

C.      The parties agree that in fulfilling Reinsurer's obligations under
        Section B(3) above, the Reinsurer or its designated representative shall
        adjust, settle, or compromise all losses in

                                       4
<PAGE>

        connection with policies reinsured under this Agreement. All such
        adjustments, settlements, and compromises shall be paid by Reinsurer
        from its own funds. The Reinsurer shall have vested rights in salvage,
        subrogation, and recoveries under any claims made against policies
        covered by this Agreement. The Reinsurer also shall pay all loss expense
        in the investigation, adjustment, appraisal, or defense of all claims
        under policies reinsured under this Agreement and Reinsurer shall have
        the right to receive any recoveries of such expense. The obligations and
        duties of Reinsurer under this provision shall continue after the
        termination of this Agreement as to all policies reinsured hereunder
        until any and all claims under policies reinsured under this Agreement
        no longer exist or are resolved.

                                    ARTICLE 7

TERM

This Agreement shall be effective as of the 1st day of January, 2003 at 12:01
A.M. and shall continue in force unless and until cancelled in accordance with
the termination provisions of Article 14 of this Agreement.

                                    ARTICLE 8

REINSURANCE FOLLOWS ORIGINAL POLICIES

Reinsurance ceded under this Agreement is subject to the terms and conditions of
the original policy or policies comprising Reassured's Business and
automatically follows all changes in coverages and all endorsements made a part
of such original policy or policies, provided, however, that any such changes
made by Reassured after the effective date of this Agreement are consented to by
Reinsurer, which consent shall not be unreasonably withheld or delayed.

                                    ARTICLE 9

JOINT REINSURANCE PROGRAMS

To the extent that Reassured and Reinsurer participate or have participated in
any joint reinsurance programs, such participation shall continue and shall be
prorata based on each party's prorata portion of both premiums and losses.

                                   ARTICLE 10

REPORTS

Within thirty (30) days after the close of each calendar month during the term
of this Agreement, after Reinsurer has moved Reassured's Business to its
systems, Reinsurer shall furnish to Reassured reports of transactions relating
to Reassured's Business, including (a) all premiums written and earned; (b) a
summary of losses and loss expenses split between paid, less salvage received,
and outstanding, both reported and unreported, for the current calendar year and
inception to date; and (c) such other

                                       5
<PAGE>

information which Reassured may reasonably request or which may be required to
complete Reassured's annual statement or other reports required by any
governmental authority with jurisdiction over Reassured. Such reports shall be
furnished by Reassured to Reinsurer until Reassured's Business is moved to
Reinsurer's systems.

                                   ARTICLE 11

RENEWALS AND NEW BUSINESS

A.      For three years after the effective date of this Agreement, Reassured
        shall and shall cause its affiliates to write Reassured's Business as
        requested by Reinsurer under the Service Agreement dated effective
        January 1, 2003 between American Financial Group, Inc. and Infinity
        Property and Casualty Corporation in compliance with the form and rate
        filings then in effect and all such business shall be reinsured 100% by
        Reinsurer hereunder. Reinsurer has the sole and exclusive right to renew
        the policies, which are subject to this Agreement. The parties
        acknowledge that the Reassured may engage in the personal lines business
        and may write personal lines policies which shall not be subject to the
        terms of this Agreement.

B.      Reinsurer intends to appoint all of the agents of Reassured who produced
        the Reassured's Business to offer the Reinsurer's own policies and
        contracts of insurance to renew and replace the personal lines policies.
        Reassured authorizes Reinsurer to make such appointments.

C.      If, from the termination date of this Agreement and thereafter,
        Reinsurer is unable to renew for any reason whatsoever, the personal
        lines business on its own policies and contracts of insurance, then,
        upon Reinsurer's written request, Reassured shall offer to renew such of
        the personal lines business which Reinsurer cannot renew on its own
        policies. If, during this same period, Reinsurer is unable to issue for
        any reason whatsoever a policy or contract of insurance representing new
        business, which policy or contract would have been personal lines
        business had the policy been in force on the effective date of this
        Agreement then, upon Reinsurer's written request, Reassured shall offer
        to issue policies or contracts of insurance for such new business. All
        policies and contracts of insurance issued by Reassured under this
        Article shall be deemed to be personal lines business reinsured
        hereunder for all purposes of this Agreement. Likewise, if Reinsurer
        does not for any reason renew any of the personal lines business and
        Reassured is required to renew it, such renewal policies shall be deemed
        to be personal lines business reinsured hereunder. All policies and
        contracts of insurance issued by Reassured under this Article shall be
        reinsured one hundred percent (100%) by Reinsurer with no portion of the
        liabilities thereunder ceded by Reassured to other reinsurers as if this
        Agreement had not terminated.

D.      Reinsurer shall be responsible for all fees, assessments and assignments
        levied against Reassured by any state insolvency pool or guaranty fund
        which are based on premiums written or earned on the business written
        pursuant to this Article.

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<PAGE>

                                   ARTICLE 12

ASSISTANCE AND COOPERATION

Reassured agrees to cooperate fully with Reinsurer with respect to claims or
other disputes arising out of or in connection with Reassured's Business.
Reassured shall give prompt notice to Reinsurer of any claims or lawsuits made
or brought against Reassured arising out of or in connection with Reassured's
Business.

                                   ARTICLE 13

INDEMNIFICATION

Reinsurer shall defend and indemnify Reassured against and hold Reassured
harmless from any costs, expenses, and fees of any type incurred in connection
with the defense of any action in connection with business covered by this
Agreement, including, without limitation, damages, fines or penalties of any
kind that may result from Reinsurer's performance or failure to perform any or
all obligations under this Agreement.

                                   ARTICLE 14

TERMINATION

Notwithstanding the foregoing, the obligations under this Agreement may be
terminated at any time upon terms mutually acceptable to the parties, including
adequate security for outstanding obligations at the time of termination. Except
as provided in Article 11, this Agreement shall not apply to any insurance
business written or assumed by Reassured after December 31, 2006 unless this
Agreement is extended by mutual agreement of the parties to apply to insurance
business written after such date.

                                   ARTICLE 15

ACCESS TO RECORDS

Reinsurer and Reassured shall each allow the other and all regulatory agencies
having jurisdiction to inspect at all reasonable times all of its records with
respect to Reassured's Business and with respect to claims, losses, or legal
proceedings which involve or are likely to involve Reassured's Business.

                                   ARTICLE 16

ERRORS AND OMISSIONS

Inadvertent delays, errors, or omissions made in connection with the business
under this Agreement shall not relieve either party from any liability which
would have attached to it had such delay, error, or omission not occurred,
provided always that such error or omission is rectified as soon as possible
after discovery.

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                                   ARTICLE 17

NOTICE PROVISION

Notices, requests, demands, or other communications given pursuant to or in
connection with this Agreement, shall be in writing and shall be personally
delivered or sent by first class mail, postage prepaid to the addresses as
follows:

        REINSURER:

        Windsor Insurance Company
        11700 Great Oaks Way
        Alpharetta, GA 30022

        REASSURED:
        Great American Insurance Company
        580 Walnut Street
        Cincinnati, OH 45202
        Attention:  General Counsel

                                   ARTICLE 18

INSOLVENCY

Notwithstanding any other provision to the contrary, in the event of the
insolvency of Reassured, the reinsurance provided by this Agreement shall be
payable by Reinsurer on the basis of the liability of Reassured for the business
reinsured hereunder, without diminution because of such insolvency, directly to
Reassured or its liquidator, receiver or statutory successor.

Reinsurer shall be given written notice of the pendency of each claim or loss
which may involve the reinsurance provided by this Agreement within a reasonable
time after such claim or loss is filed in the insolvency proceedings. Reinsurer
shall have the right to investigate each such claim or loss and interpose, at
its own expense, in the proceeding where the claim or loss is to be adjudicated,
any defense available to Reassured, its liquidator, receiver, or statutory
successor. The expense thus incurred by Reinsurer shall be chargeable, subject
to court approval, against the insolvent Reassured as part of the expense of
liquidation to the extent of the proportionate share of the benefit which may
accrue to Reassured solely as a result of the defense undertaken by Reinsurer.

Nothing contained in this Article is intended to change the relationship of the
parties to this Agreement or to enlarge upon the rights or obligations of either
party hereunder except as provided herein. Its intent is to pay the statutory
successor of Reassured on the basis of the amount of liability determined in the
liquidation or receivership proceeding rather than on the basis of the actual
amount of loss paid by the liquidator, receiver, or statutory successor to
allowed claimants.

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<PAGE>

                                   ARTICLE 19

NON-ASSIGNABILITY

Neither Reassured nor Reinsurer may assign any of its rights or obligations
under this Agreement without the express written consent of the other, except
that the Reassured may assign its rights under this Agreement to any of its
affiliates in connection with a merger involving the Reassured or in connection
with the acquisition of substantially all the assets of the Reassured.

                                   ARTICLE 20

UNAUTHORIZED REINSURANCE

A.      If any jurisdiction in which any portion of Reassured's Business was
        written shall not permit Reassured, in the statements required to be
        filed with such jurisdiction's regulatory authority(ies), to receive
        full credit as admitted reinsurance for the reinsurance provided by
        Reinsurer under this Agreement, Reinsurer agrees to fund such
        obligations (hereinafter referred to as "Reinsurer's Obligations") by
        funds withheld, cash advances, Letter of Credit or Trust Agreement. The
        Reinsurer shall have the option of determining the method of funding
        provided the Reassured receives full credit for Reinsurer's Obligations
        from insurance regulatory authorities having jurisdiction over
        Reassured's reserves.

B.      When funding by a Letter of Credit, the Reinsurer agrees to apply for
        and secure timely delivery to the Reassured of a clean, irrevocable and
        unconditional Letter of Credit issued by a bank and containing
        provisions acceptable to the insurance regulatory authorities having
        jurisdiction over the Reassured's reserves in an amount equal to the
        Reinsurer's proportion of said reserves. Such Letter of Credit shall be
        issued for a period of not less than one year, and shall be
        automatically extended for one year from its date of expiration or any
        future expiration date unless thirty (30) days (sixty (60) days where
        required by insurance regulatory authorities) prior to any expiration
        date the issuing bank shall notify the Reassured by certified or
        registered mail that the issuing bank elects not to consider the Letter
        of Credit extended for any additional period.

C.      The Reinsurer and Reassured agree that the Letters of Credit provided by
        the Reinsurer pursuant to the provisions of this Agreement may be drawn
        upon at any time, notwithstanding any other provision of this Agreement,
        and be utilized by the Reassured or any successor, by operation of law,
        of the Reassured including, without limitation, any liquidator,
        rehabilitator, receiver or conservator of the Reassured for the
        following purposes, unless otherwise provided for in a separate Trust
        Agreement:

        1.      to reimburse the Reassured for the Reinsurer's Obligations, the
                payment of which is due under the terms of this Agreement and
                which has not been otherwise paid;

        2.      to make refund of any sum which is in excess of the actual
                amount required to pay the Reinsurer's Obligations under this
                Agreement.

                                       9
<PAGE>

D.      In the event the amount drawn by the Reassured on any Letter of Credit
        is in excess of the actual amount determined to be due, the Reassured
        shall promptly return to the Reinsurer the excess amount so drawn.

E.      The issuing bank shall have no responsibility whatsoever in connection
        with the propriety of withdrawals made by the Reassured or the
        disposition of funds withdrawn, except to ensure that withdrawals are
        made only upon the order of properly authorized representatives of the
        Reassured.

F.      At annual intervals, or more frequently as agreed but never more
        frequently than quarterly, the Reassured shall prepare a specific
        statement of the Reinsurer's Obligations, for the sole purpose of
        amending the Letter of Credit, in the following manner:

        1.      If the statement shows that the Reinsurer's Obligations exceed
                the balance of credit as of the statement date, the Reinsurer
                shall, within thirty (30) days after receipt of notice of such
                excess, secure delivery to the Reassured of an amendment to the
                Letter of Credit increasing the amount of credit by the amount
                of such difference.

        2.      If, however, the statement shows that the Reinsurer's
                Obligations are less than the balance of credit as of the
                statement date, the Reassured shall, within thirty (30) days
                after receipt of written request from the Reinsurer, release
                such excess credit by agreeing to secure an amendment to the
                Letter of Credit reducing the amount of credit available by the
                amount of such excess credit.

                                   ARTICLE 21

ARBITRATION

As a condition precedent to any right arising hereunder, any dispute between
Reassured and Reinsurer arising out of the provisions of this Agreement, or
concerning its interpretation or validity, whether arising before or after
termination of this Agreement, shall be submitted to arbitration in the manner
hereinafter set forth.

Unless the parties agree upon a single arbitrator within 30 days after the
receipt of a notice of intention to arbitrate, all disputes shall be submitted
to an arbitration panel composed of two arbitrators and an umpire, chosen in the
manner described below.

The members of the arbitration panel shall be chosen from persons knowledgeable
in the insurance and reinsurance business with no prior or present business or
personal connection to either party or another arbitrator. Unless a single
arbitrator is agreed upon, the party requesting arbitration (hereinafter
referred to as the "claimant") shall appoint an arbitrator and give written
notice thereof, by registered or certified mail, return receipt requested, to
the other party (hereinafter referred to as the "respondent") together with the
notice of intention to arbitrate. Within 30 days after receiving such notice,
the respondent shall also appoint an arbitrator and notify the claimant thereof.
Before instituting a hearing, the two arbitrators so appointed shall choose an
umpire. If, within 20 days after the appointment of the

                                       10
<PAGE>

arbitrator chosen by the respondent, the two arbitrators fail to agree upon the
appointment of an umpire, each of them shall nominate two individuals to serve
as umpire, of whom they shall decline two and the umpire shall be chosen from
the remaining two by drawing lots. The name of the individual first drawn shall
be the umpire.

If the respondent fails to appoint an arbitrator within 30 days after receiving
a notice of intention to arbitrate, such arbitrator shall be appointed by the
claimant who shall then, together with the first arbitrator appointed by the
claimant, choose an umpire as provided in the preceding paragraph of this
Article.

Any arbitration instituted pursuant to this Article shall be held in Cincinnati,
Ohio unless some other place is mutually agreed upon by Reassured and Reinsurer.

Unless otherwise extended by the arbitration panel, or agreed to by the parties,
each party shall submit its case to the panel within 30 days after the selection
of an umpire.

All proceedings before the panel shall be informal and the panel shall not be
bound by the formal rules of evidence. The panel shall also have the power to
fix all procedural rules relating to the arbitration proceeding. In reaching any
decision, the panel shall give due consideration to the customs and usages of
the insurance and reinsurance business, and shall make their award with a view
of effecting the general purpose of this Agreement rather than in accordance
with a literal interpretation of the language.

The arbitration panel shall render its decision within 60 days after conclusion
of the proceeding, which decision shall be in writing, stating the reasons
therefor. The decision of the majority of the panel shall be final and binding
on the parties to the proceeding. Judgment may be entered upon the final
decision of the arbitrators in any court having jurisdiction. No punitive
damages may be awarded.

Unless otherwise allocated by the panel, all costs of the arbitration
proceeding, including the fees of the arbitrators and umpire, shall be borne
equally among the parties.

                                   ARTICLE 22

MISCELLANEOUS

A.      On or before the thirtieth (30th) day following the end of each calendar
        quarter during the term hereof any balance due to any of the parties
        hereto shall be remitted in cash to the party(ies) owed.

B.      This Agreement expresses the entire understanding of the parties and
        supercedes any prior agreements or understandings concerning the subject
        matter hereof. No amendment to or waiver of any provision of this
        Agreement shall be valid unless it is in writing and signed by all of
        the parties.

C.      This Agreement may be amended, supplemented or modified only by a
        written instrument duly executed by or on behalf of each party hereto.

                                       11
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in duplicate effective as of January 1, 2003.

                                    WINDSOR INSURANCE COMPANY

                                    By:  /s/ SAMUEL J. SIMON
                                       -----------------------------------------
                                            Name:  Samuel J. Simon
                                                 -------------------------------
                                            Title: Vice President
                                                  ------------------------------

                                    GREAT AMERICAN INSURANCE COMPANY GREAT
                                    AMERICAN ALLIANCE INSURANCE COMPANY GREAT
                                    AMERICAN ASSURANCE COMPANY GREAT AMERICAN
                                    CONTEMPORARY INSURANCE COMPANY GREAT
                                    AMERICAN E & S INSURANCE COMPANY GREAT
                                    AMERICAN FIDELITY INSURANCE COMPANY GREAT
                                    AMERICAN INSURANCE COMPANY OF NEW YORK GREAT
                                    AMERICAN PROTECTION INSURANCE COMPANY GREAT
                                    AMERICAN SECURITY INSURANCE COMPANY GREAT
                                    AMERICAN SPIRIT INSURANCE COMPANY GREAT
                                    TEXAS COUNTY MUTUAL INSURANCE COMPANY

                                    By:  /s/ EVE CUTLER ROSEN
                                       -----------------------------------------
                                            Name:   Eve Cutler Rosen
                                                 -------------------------------
                                            Title:  Vice President
                                                  ------------------------------

                                    GREAT AMERICAN LLOYD'S INSURANCE COMPANY
                                    By its Attorney-In-Fact, Great American
                                    Lloyd's, Inc.

                                    By:  /s/ EVE CUTLER ROSEN
                                       -----------------------------------------
                                            Name:   Eve Cutler Rosen
                                                 -------------------------------
                                            Title:  Vice President
                                                  ------------------------------

                                       12<PAGE>

                                                                 Exhibit 10.6

                               SERVICES AGREEMENT

         This Services Agreement (this "Agreement") is made effective January 1,
2003 by and between AMERICAN FINANCIAL GROUP, INC., on behalf of itself and
certain of its affiliates providing services described herein (collectively, the
"Supplier") and Infinity Property and Casualty Corporation, on behalf of itself
and the subsidiaries listed on Appendix I attached hereto (collectively, the
"Customer").

                                   WITNESSETH:

         WHEREAS, Supplier has personnel and resources to provide certain
information, communication, financial, regulatory compliance and other services
to Customer; and

         WHEREAS, Customer desires Supplier to provide, and Supplier has agreed
to provide, on the terms and conditions set forth in this Agreement, such
services for Customer's personal lines insurance business (the "Business"), a
portion of which includes the personal lines agency book of business written by
subsidiaries of Supplier and reinsured by Customer (the "Reinsured Business")
pursuant to the Reinsurance Agreement between the parties effective January 1,
2003 (the "Reinsurance Agreement");

         NOW, THEREFORE, in consideration of the foregoing and the mutual
promises set forth in this Agreement, the parties, intending to be legally
bound, hereby agree as follows:

         Section 1. Definitions. Capitalized terms used herein and not otherwise
defined in this Agreement shall have the meaning given to them in the
Reinsurance Agreement.

         "Affiliate" of a specified Person means a Person that (at the time when
the determination is to be made) directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the specified Person. As used in the foregoing sentence, the terms "control"
(including, with correlative meaning, the terms "controlling," "controlled by"
and "under common control with") means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise.

         "Basic Costs" means the costs of performing the Services as further
described in Section 6.1 of this Agreement.

         "Basic Services" means and includes the computer processing,
communication, financial, certain specific regulatory compliance and other
services to be provided by Supplier as described in a Schedule 2.1 attached to
this Agreement.

         "Business Hours" means the hours (in Cincinnati, Ohio time) ranging
from 7:00 a.m. to 8 p.m. Monday through Friday and 7:00 a.m. to 5 p.m. on
Saturday, excluding Supplier's U.S. holidays. Such hours are subject to change
by Supplier upon ten (10) days prior written notice to Customer, provided that
Supplier is subject to any such change. Business Hours only applies to
applications in production.

<PAGE>

         "Confidential Information" has the meaning set forth in Section 8 of
this Agreement.

          "Customer Equipment" means and includes computer hardware (including
desktops/laptops and peripherals), telecommunications equipment and other
equipment, materials and media and which have been purchased, developed or are
otherwise owned or licensed by Customer.

         "Customer Software" means and includes (a) Software programs installed
on or after the date of this Agreement on Equipment or Customer Equipment which
are used in connection with the Reinsured Business and which have been developed
by or are otherwise owned or licensed by Customer and (b) those additional
Software programs from time to time developed or acquired or licensed by
Customer primarily for the Reinsured Business and installed for use pursuant to
this Agreement.

         "Damages and Claims" means all losses, claims, damages, costs,
expenses, fines and penalties, liabilities and judgments, including, without
limitation, court costs, expenses and attorneys and experts fees reasonably
incurred.

         "Data" means the records, data, files, input materials, reports, forms,
manuals, filings (and any other written communications with regulatory bodies or
governmental agencies) and other data used in connection with the conduct of the
Business.

         "Documentation" means any and all written, printed and computer sourced
materials, books and records, including, but not limited to, training manuals,
installation and operating proceedings, job control (JCL) program and system
diagrams, record and file layouts, filings, forms, statistical compilations and
reports used in connection with the conduct of the Reinsured Business.

         "Employee" means any individual who is an employee of another Person.

         "Enhancements" means, with respect to any Services, any and all
corrections, modifications, upgrades or enhancements which are implemented or
installed.

         "Enterprise Contracts" means Supplier's enterprise contracts with third
parties for products or services that include Customer (or certain of its
Affiliates) in the scope of the contract or through which Customer (or certain
of its Affiliates) have contracted for products or services from time to time,
including but not limited to the contracts listed on Schedule 9.2/9.3.

         "Equipment" means such computer hardware (including desktops/laptops
and peripherals), telecommunications equipment and other equipment and materials
utilized by Supplier from time to time to provide Services to Customer under
this Agreement or in connection with the provision of such Services. Equipment
does not include Customer Equipment. Unless explicitly stated elsewhere in this
Agreement, all Equipment purchased or supplied by Supplier shall be considered
the sole property of Supplier.

         "Exclusive Results" has the meaning set forth in Section 7.1.1 of this
Agreement.

         "Independent Contractor" has the meaning set forth in Section 2.4 of
this Agreement.

                                       2
<PAGE>

         "Initial Implementation Services" has the meaning set forth in Section
2.2.1 of this Agreement.

         "Law" means any law, ordinance, rule or regulation enacted or
promulgated, or any order issued or rendered by, any governmental entity.

         "Licensed Software" means and includes any Software which is licensed
to Supplier and which is used and necessary in connection with the conduct of
the Business in the ordinary course of business and otherwise to perform any of
the Services.

         "Non-Exclusive Results" has the meaning set forth in Section 7.1.2 of
this Agreement.

         "Pass Through Charges" means those expenses not otherwise covered by
the Reinsurance Agreement that are incurred on or after the date of this
Agreement as direct costs to the Business (consistent with past practice), or
expenses otherwise paid by Supplier on Customer's behalf pursuant to this
Agreement including, but not limited to, charges for leased furniture, fixtures
and equipment; certain software license fees including all fees related to
products used primarily in the Business; a pro-rata share of applicable fees and
charges under contracts for products or services benefiting both Supplier and
Customer (or any of their affiliates); agency license and appointment fees;
agency commissions; expenses associated with boards, bureaus and associations;
motor vehicle registration (MVR) reports; postage and printing costs; long
distance, cellular phone and remote data network access charges; video
conferencing charges, auto inspection fees; regulatory rate actions and excess
profit refunds; sales and use taxes and surcharges applicable to the Business;
reasonable travel and travel related expenses of Supplier personnel performing
the Services; certain outside vendor fees and any other items specifically
identified as Customer's responsibility in this Agreement and accompanying
schedules. To the extent any Pass Through Charges relate to a period of time
beginning prior to the date of this Agreement and ending after the date of this
Agreement, Pass Through Charges shall include Customer's pro rata share of such
charges. Notwithstanding the foregoing, Pass Through Charges shall be invoiced
as separate items and shall not include items reflected in any Basic Costs. In
addition, as part of their duties under Section 2.3, the Primary Contacts of
Supplier and Customer shall consult on the appropriate methodology for
allocation of charges as soon as practicable with respect to existing contracts
with third parties affecting both Supplier and Customer and prior to contract
inception with respect to any such contracts in the future.

         "Reinsurance Agreement" has the meaning set forth in the recitals of
this Agreement.

         "Reinsured Business" has the meaning set forth in the recitals of this
Agreement.

         "Subsidiary" means and includes those entities that are directly, or
indirectly through one or more intermediaries, controlled by another entity. The
term "controlled by" means the possession, directly or indirectly, of the power
to direct of cause the direction of the management and policies of an entity,
whether through the ownership of voting securities, by contract or otherwise.

         "Supplemental Services" has the meaning set forth in Section 2.1 of
this Agreement.

                                       3
<PAGE>

         "Supplier's Software" means and includes the Software programs owned by
Supplier used and necessary in the conduct of the Business.

         "Services" means and includes the Basic Services and the Transition
Services (including the Initial Implementation Services).

         "Software" whether used separately or as part of any other defined
term, means any program, spreadsheet or algorithm, whether in source code or
object code, and in whatever form or media stored, used in connection with the
computer processing and storage of Data, and any Enhancements thereto.

         "Term" means the period beginning on the date of this Agreement and
continuing until the Termination Date.

         "Termination Date" means the date which is the earlier of (a) the final
expiration of the Term of this Agreement for all Services or (b) the effective
date of termination specified in any notice of termination delivered pursuant to
Section 9 of this Agreement.

         "Transition Procedures" has the meaning set forth in Section 2.2.1 of
this Agreement.

         "Transition Services" has the meaning set forth in Section 2.2.2 of
this Agreement.

         Section 2. The Services. During the Term, subject to the remaining
terms and conditions of this Agreement, Supplier shall perform and provide,
and cause its Subsidiaries to perform and provide, to Customer and Customer's
Subsidiaries all of the Basic Services and the Transition Services to be
provided pursuant to this Agreement.

         2.1 Basic Services. Supplier shall perform and provide to Customer all
of the Basic Services (a) described in Schedule 2.1(a) with respect to
non-employee related services for the Reinsured Business, (b) described in
Schedule 2.1(b) with respect to non-employee related services for the
non-Reinsured Business, (c) described in Schedule 2.1(c) with respect to certain
holding company services performed for Customer, (d) described in Schedule
2.1(d) with respect to employee related services for the Business and (e)
described in Schedule 2.1(e) with respect to technology related services for the
Business, all in a manner to enable Customer to operate the Business in the
ordinary course of business consistent with past practice and in accordance with
Section 2.9. The Primary Contacts of Supplier and Customer shall consult with
one another to resolve any ambiguity concerning the scope of Basic Services
provided under this Agreement. This Agreement is intended to cover only Basic
Services and Transition Services (as described below). Any other service (a
"Supplemental Service") shall be outside of the scope of this Agreement and
shall only be performed after execution of a mutually agreed upon work order.
Pricing for any Supplemental Service shall be based on Supplier's costs then in
effect, taking into account rates for any comparable Basic Service categories
provided under this Agreement.

         2.2 Transition Services.

             2.2.1 Supplier will use reasonable efforts to provide for the
continuity of service to the Business after the date of this Agreement to ensure
that Customer can continue to operate the Business in the ordinary course of
business as it exists on the date of this Agreement.

                                       4
<PAGE>

These efforts include performing those services necessary (as determined by the
Primary Contacts) to be able to support the provision of any Basic Services as
well as any services necessary to segregate Customer's operations from
Supplier's to enable Customer to operate independently ("Initial Implementation
Services"). Supplier will work in good faith with Customer to complete the
Initial Implementation Services as soon as practicable after the date of this
Agreement.

               The parties agree that legal services performed by Supplier to
effect the legal transfer of Great Texas County Mutual Insurance Company, Great
American Contemporary Insurance Company, El Aguila Compania de Seguros, S.A. de
C.V., Insurance (GB) Limited and Leader National Agency of Texas, Inc. through a
contribution and/or dividend process, including securing required regulatory
approvals, shall be treated as Initial Implementation Services and shall not be
subject to charge under this Agreement.

               The Parties' Primary Contacts shall communicate regularly
regarding the time and effort expended in providing Initial Implementation
Services, with the understanding that such services are to be transitory in
nature. Any request or series of requests for Initial Implementation Services
after the date that is three months after the date of this Agreement requiring
more than 20 hours of effort in the aggregate must be agreed to in writing by
the Primary Contacts and shall be subject to charge as either a Basic Service at
rates set forth in the applicable Schedule 2.1 or as a Supplemental Service at
rates determined in accordance with the last sentence of Section 2.1.

               2.2.2 Supplier and Customer will also cooperate in developing a
series of practices and procedures to be performed in connection with the
termination of this Agreement (whether as a result of the expiration of the Term
of this Agreement or an earlier termination as provided for in Section 9 of this
Agreement), which procedures (the "Transition Procedures") shall be designed to
satisfy Customer's reasonable requirements for transition of Services at
termination in such a manner that the performance of Services and the Business
are not adversely disrupted. All written Transition Procedures agreed to in
writing by the parties hereto shall be deemed to be amendments to this
Agreement, to be considered a part hereof as if fully incorporated herein.

               2.2.3 The "Transition Services" shall include (a) the Employees
of Supplier in (i) the development, review, and maintenance of Transition
Procedures and (ii) the performance and execution of the Transition Procedures
as contemplated by Section 2.3 of this Agreement and (b) all computer
processing, communication, financial, regulatory compliance and other services
provided in connection therewith which are not otherwise part of the Basic
Services, but shall exclude any programming of software (unless otherwise
agreed) performed with respect to Transition Services in connection with the
termination of this Agreement.

               2.2.4 The Transition Procedures shall expressly include (a)
detailed plans for the orderly removal and transfer between the parties of
assets which are the respective property of the other or to which the other has
no further right of use upon any termination, (b) plans for the orderly
transition of the Reinsured Business to Customer's paper, (c) an opportunity for
Customer to run, during the Term, the new information system to be utilized by
it after the Termination Date on a parallel basis with the system provided
herein, to ensure an orderly

                                       5
<PAGE>

transition, provided, however, Customer shall run the new information system on
its system without any material disruption to or interference with Supplier's
system and (d) access to the then existing Documentation and reasonable access
in Supplier's sole discretion to personnel engaged in the operation of
Supplier's information systems relating to the Services to support the
transition to Customer's systems.

               2.2.5 Except with respect to any Initial Implementation Services
described in Section 2.2.1, all costs and expenses of performing Transition
Services under this Section 2.2, specifically including software programming in
conjunction with proper formatting and transfer of data under Section 2.6.3,
shall be billed on a time and materials basis in accordance with Section 6.1.

         2.3 Single Point of Contact. Supplier hereby designates Robert E. Maly
and Customer hereby designates Roger Smith to be the Primary Contact (the
"Primary Contact") that the other party shall contact regarding any matter
relating to this Agreement. The Primary Contacts will endeavor to meet at least
quarterly to review contract issues, including the proper allocation of Pass
Through Charges (as described in the definition thereof) and the scope of Basic
Services provided under Section 2.1, and will specifically address any possible
elimination of Services under Section 9.2. In the event that the Primary Contact
designated by Customer or Supplier is unresponsive or otherwise unsatisfactory
to the other party in its reasonable judgment, Customer and Supplier agree to
replace the applicable designated Primary Contact upon receipt of a written
request setting forth the reasons for removal and signed by an officer of the
party requesting removal. Neither Customer nor Supplier shall request removal of
a Primary Contact for any reason that would give rise to any violation of law.

         2.4 Additional Operating Requirements. Provided that Supplier is able
to provide the Services to Customer at the quality levels set forth in Section
2.9, Supplier shall have the right from time to time, acting in good faith and
with reasonable discretion in accordance with its own internal policies and
procedures then in effect, and without the prior approval or consent of
Customer, to determine which Equipment (or other resources used to provide the
Services) shall be used to perform the Services.

         2.5 Third Parties. Supplier may use qualified independent contractors,
consultants and independent third parties (such independent contractors or other
independent third parties collectively referred to as "Independent Contractors")
to perform any of the Services. The applicable schedule will state if any such
charges for Basic Services may qualify as Pass Through Charges. To the extent
practicable, Supplier shall advise Customer of any other third party fees to be
considered Pass Through Charges in connection with any Basic Services or
Transition Services prior to contracting for such services and shall attempt to
secure Customer's approval thereof. Customer agrees to be responsible for
contractual commitments made by it or its Affiliates under any Enterprise
Contracts. Specifically with respect to the VESTA Contract (as identified on
Schedule 9.2/9.3), an existing Enterprise Contract for telecommunications
services and equipment benefiting Supplier and Customer, Customer acknowledges
its responsibilities and agrees to sign a "Specially Designated Affiliate User"
joinder agreement (substantially in the form contemplated by the VESTA Contract)
that will include provisions ensuring Customer's direct assumption of financial
responsibility for its proportionate share of

                                       6
<PAGE>

charges and minimum annual commitments for all service categories contemplated
by the VESTA Contract at the time of its execution.

         2.6 Equipment, Customer Equipment, Facilities and Information.

            2.6.1 During the Term of this Agreement, (i) Supplier shall provide
and maintain, as part of the Basic Services (subject to the limitations in
Schedule 2.1), all Equipment, Software, and related facilities and materials
(other than those which are the property, or are otherwise under the custody or
control of Customer, including without limitation Customer Equipment and
Customer Software) required for the performance of the Services in accordance
with the terms of this Agreement and specifically at the standard of care set
forth in Section 2.9, reasonable wear and tear excepted and (ii) Customer shall
maintain in Customer's offices (or any successor location) during the Term, at
no expense to the Supplier, all Customer Equipment and Customer Software
required in order to permit the Supplier to provide Services to Customer under
this Agreement. Customer Equipment and Customer Software shall be upgraded
consistent with reasonable business practices and Supplier's practices for
Services provided. Any Data migration or any implementation, maintenance or
Enhancements of Customer Equipment or Customer Software provided by Supplier
will be at an additional cost to be negotiated by Customer and Supplier at the
time of delivery.

            2.6.2 Customer shall provide to Supplier's Employees and Independent
Contractors such access to Customer's facilities, Customer Equipment, Software
and personnel as may be reasonably necessary to permit Supplier to perform the
Services in a manner consistent with the requirements established by this
Agreement.

            2.6.3 In conjunction with this Agreement and the Reinsurance
Agreement, Customer shall furnish to Supplier all instructions, data and
information in its possession, and take such other steps as may be reasonably
determined by Supplier, including the general performance requirements described
in Schedule 2.6.3, to be necessary (i) for Supplier to furnish the Services,
(ii) for Supplier to comply with all applicable regulatory and statutory
requirements or (iii) to maintain legal and regulatory compliance with respect
to the Reinsured Business. Customer and Supplier shall agree upon the format of
any information to be submitted to Supplier, and Customer shall maintain and
promptly provide in an accurate format all such information and shall promptly
correct, at Customer's sole cost, any errors identified by Supplier. Supplier
may rely upon any instructions or information provided by Customer and shall
incur no liability as a result of either incorrect data or its reasonable
reliance on such instructions, information or data. This provision shall survive
the termination of this Agreement.

         2.7 Compliance with Law. Supplier and Customer shall use reasonable
care to ensure material compliance with all applicable Laws in connection with
their respective obligations hereunder.

         2.8 Non-disruption of Services. Other than for disruptions scheduled
pursuant to Section 3 or excused pursuant to Section 12.6, Supplier shall
provide and perform the Services throughout the Term.

                                       7
<PAGE>

         2.9 Standard of Care. Supplier covenants to provide the Services at
standards and with a level of performance and scope in all events consistent
with the quality and level of performance and scope it would use in providing
similar services to itself or its Affiliates and consistent with the service
levels and workflow processes provided to the Business during the immediately
preceding calendar year.

       Section 3. Scheduled Interruptions. If, in addition to regularly
scheduled outage time for maintenance and backup, Supplier determines during the
Term to modify, repair or replace any Equipment or Software or other resources
used to perform the Services in such a manner as to require one or more
scheduled interruptions of Supplier's ability to perform the Services, Supplier
shall give reasonable advance written notice to Customer and cooperate in good
faith to arrange scheduling and similar issues in order to minimize the
disruption of Customer's ongoing business operations.

       Section 4. Use of Equipment and Software.

         4.1 Existing Equipment and Software

            4.1.1 Supplier shall assist Customer in obtaining any Licensed
Software licenses needed for the provision of Services hereunder and required by
the Licensed Software vendors. Under certain circumstances Customer may be
required to obtain such licenses. Customer shall hold Supplier harmless from and
against any Damages or Claims incurred by Supplier as a result of Customer's
failure to obtain or maintain any licenses for the Licensed Software.

            4.1.2 In the event that Supplier obtains any licenses or pays any
fees, expenses or costs on behalf of Customer with respect to the continued use
of Software in the performance of the Services, Supplier shall prepare an
invoice and other supporting Documentation with respect to such amounts and
Customer shall reimburse Supplier for all such amounts within 30 days of invoice
date, unless Customer is disputing such invoice in good faith in accordance with
Section 6.8.

         4.2 Customer Equipment and Customer Software

            4.2.1 Use of Customer Equipment and Customer Software. Supplier
shall use all Customer Equipment and Customer Software installed and implemented
pursuant to this Agreement exclusively for the performance of Services and for
no other purpose; provided Supplier and its Affiliates shall not be restricted
from using Customer Software for which they independently acquire or previously
possess the necessary rights. Supplier shall not be responsible to Customer for
any Damages and Claims resulting from the installation or implementation of any
Customer Equipment and/or Customer Software unless caused by the gross
negligence or willful misconduct of Supplier, its employees, agents or
contractors.

            4.2.2 Customer Payments In addition to amounts payable by Customer
pursuant to Section 4.1, Customer shall also be responsible for the
reimbursement to Supplier of certain incremental costs approved by Customer
(after any required consultation between the Primary Contacts) associated with
the maintenance by Supplier of Software which supports any of the Licensed
Software described in Section 4.1. In the event any Enhancement or release of

                                       8
<PAGE>

any such Licensed Software described in Section 4.1 is required by the licensor
thereof to be installed by Supplier, Customer shall reimburse Supplier the
amounts reasonably required to upgrade the related Licensed Software to permit
it to run satisfactorily with the new Enhancement or release of the Software.

            4.3 DISCLAIMER. SUPPLIER, AS TO ANY LICENSED SOFTWARE OR ANY OTHER
SOFTWARE PROVIDED BY IT OR ANY OF ITS AFFILIATES HEREBY EXPRESSLY DISCLAIMS ALL
REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, RESPECTING SUCH SOFTWARE,
INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATIONS OR WARRANTIES AS TO
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

         Section 5. LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE LIABLE TO
THE OTHER FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR
PUNITIVE DAMAGES OR FOR ANY FORM OF DAMAGES OTHER THAN DIRECT DAMAGES ARISING
OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF.
NOTWITHSTANDING THE FOREGOING, THE LIMITATIONS OF LIABILITY IN THIS AGREEMENT
SHALL NOT APPLY TO LIMIT A PARTY'S INDEMNIFICATION OBLIGATIONS UNDER THIS
AGREEMENT OR DAMAGES ARISING SOLELY FROM FRAUD OR WILLFUL MISCONDUCT.

         Section 6. Costs; Invoicing and Payments.

            6.1 Basic Costs. Subject to the remaining terms and conditions of
this Agreement, in consideration of the performance of the Services by Supplier,
Customer shall pay Supplier on a monthly basis an amount for all Services
calculated in accordance with each Schedule 2.1, in addition to any applicable
Pass-Through Charges. The monthly invoice shall provide a detail of the
Pass-Through Charges as well as the items listed on each Schedule 2.1. At each
anniversary of this Agreement, Supplier shall apply a cost of living adjustment
based on the U.S. Department of Labor Bureau of Labor Statistics Consumer Price
Index for Cincinnati-Hamilton, OH-KY-IN to amounts set forth on each Schedule
2.1 (except for Schedule 2.1e) as described therein. Such adjustment shall be
effective on the first day of the ensuing month.

            6.2 Transition Costs. Costs for Transition Services shall be
included within the monthly invoice as described in Section 6.1. Transition
Services shall be provided at rates based on Supplier's costs then in effect at
the time of execution of an agreed upon work order for such Transition Services,
taking into account rates for any comparable Basic Service categories provided
under this Agreement. In connection with any Transition Services, subject to
Section 2.5, Customer agrees to pay for any amounts incurred on its behalf that
are charged by an Independent Contractor.

            6.3 Method of Payment. Commencing April 1, 2003, Supplier shall
invoice Customer on a monthly basis an amount equal to the sum of (a) the Basic
Costs for the preceding month and (b) Pass Through Charges for the preceding
month; provided, however, that the first invoice shall cover such costs and
charges for the preceding three months. All undisputed

                                       9
<PAGE>

amounts so invoiced will be due and payable 20 days after receipt of invoice.
Any disputed amounts shall be paid upon resolution in accordance with Section
6.8.

            6.4 Late Payment Penalty. Subject to Section 6.8, if Customer fails
to pay any invoice or other amount owed hereunder when due, Supplier may add an
interest charge of 1% per month, or the maximum rate allowed by law if less, on
the outstanding balance until paid in full.

            6.5 Taxes. Customer shall pay all taxes that are applicable to or
are measured directly by payments made under this Agreement, including without
limit, sales, use, excise or value-added taxes; provided, however, that Supplier
shall report and pay income taxes, if any, arising out of the payments made by
Customer to Supplier under this Agreement. Supplier shall also pay all payroll
taxes of its Employees providing Services under this Agreement.

            6.6 Audit Rights. With five business days prior written notice from
Customer, during reasonable business hours, Supplier shall make available its
financial books and records pertaining to the Services in an organized manner to
Customer to permit an efficient audit of the Pass-Through Charges; provided,
that Customer shall only have one opportunity to audit any specific period of
time and shall not be permitted to re-examine any prior audit materials unless
any dispute involving such prior audit materials remains unresolved. Any audit
shall be limited to a two week period of time, provided, however, that should
Supplier fail to comply with Customer's reasonable requests in connection with
such audit or otherwise fail to assist Customer in conducting such audit, the
period of time for the audit shall be extended for as long as Customer, in good
faith and in its reasonable discretion, determines is required to complete the
audit. Customer shall only request an audit in good faith and with a reasonable
basis to challenge Supplier's invoicing of Pass Through Charges (after
discussion between the Primary Contacts) and shall endeavor not to request an
audit under this Agreement more often than once every six months. All
information provided in connection with an audit shall be treated as
Confidential Information. If Supplier agrees with the results of the audit,
Supplier shall pay to Customer the amounts of any discrepancies discovered in an
audit conducted pursuant to this Section within two weeks of the conclusion of
such audit. If Supplier does not agree with the result of the audit, Supplier
shall, if required, pay the amounts of any discrepancies upon final resolution
of the matters in accordance with Section 11 of this Agreement. Customer shall
bear the costs of the audit, unless the audit shall discover a discrepancy to
Customer's detriment greater than 5% in the amount of Pass-Through Charges
claimed by Supplier under this Agreement versus the actual amount for any
12-month period, in which case Supplier shall bear 75% of the cost of the audit
subject to a maximum amount of $10,000.

            6.7 Offsets. No party shall have any right to offset amounts due
under this Agreement against any sums owed to it by the other or their
respective Affiliates, without the express prior written consent of the party
against whom such right of offset is to be exercised.

            6.8 Disputed Payments. Disputes concerning payments owed under this
Agreement that cannot be resolved by the parties shall be resolved following the
guidelines set forth in Section 11 of this Agreement. In addition, notice of any
disputed invoiced amounts shall be communicated orally by Customer to Supplier
within 20 days of receipt of invoice (except for the results of audits conducted
pursuant to Section 6.6), with the written submission required by

                                       10
<PAGE>

Section 11 of this Agreement required within 30 days of receipt of invoice.
Payments owed by either party and resolved prior to formal arbitration
proceedings shall be paid within 15 days of resolution. Payments owed by either
party and resolved only after formal proceedings, as set forth under Section 11
of this Agreement, shall be paid on the basis determined by the formal
proceeding.

    Section 7. Ownership of Property and Data.

       7.1 Copyright.

            7.1.1 Exclusive Results. Supplier expressly acknowledges that all
rights of any kind and character whatsoever in and to all Data and all of the
products resulting from the Services performed for Customer during the Term of
and pursuant to this Agreement, which pertain exclusively to the Business (the
"Exclusive Results"), including, without limitation, all compilations of such
Data created by Supplier as well as such Data previously owned by Supplier
shall, from the inception of creation, be owned by Customer for use in any
manner or media, whether now known or hereinafter discovered, throughout the
world in perpetuity. The parties hereby acknowledge and agree that, for
copyright purposes, the Exclusive Results were, are and shall be deemed "a work
made for hire" under the Copyright Act of 1976, as amended, 17 U.S.C. 101 et.
seq. (the "Copyright Act"). The Exclusive Results and any other works derived
from and/or embodying the Exclusive Results which pertains exclusively to the
Business shall be the sole and exclusive property of Customer, which shall have
all rights of ownership therein and incident thereto. To the extent that the
arbitration panel described in Section 11 of this Agreement (or, if required, a
court of competent jurisdiction) subsequently determines that the Exclusive
Results are not properly characterized as "works for hire" under the Copyright
Act, Supplier hereby irrevocably and absolutely assigns, conveys and grants to
Customer all right, title and interest in and to the Exclusive Results
(including but not limited to all copyrights and any renewals thereof), and any
ideas and information embodied therein, in perpetuity throughout the world.
Regardless of whether the Exclusive Results are deemed to be "a work for hire"
or not, Customer hereby grants to Supplier a non-exclusive, nontransferable,
worldwide, perpetual license to use and/or modify the Exclusive Results. The
terms of this paragraph shall survive the termination or expiration of this
Agreement.

            7.1.2 Non-Exclusive Results. Customer expressly acknowledges that
all rights of any kind and character whatsoever in and to all Data and all of
the products resulting from the Services performed for Customer during the Term
of and pursuant to this Agreement, which pertain to the business of Supplier and
its Affiliates, as well as the Business (the "Non-Exclusive Results"),
including, without limitation, all compilations of Data created by Supplier,
Data previously owned by Supplier, as well as any other works derived therefrom
or any work embodying the Non-Exclusive Results (and any works that are derived
from or embodying the Exclusive Results, but which do not pertain exclusively to
the Business) shall be the sole and exclusive property of Supplier. Customer
acknowledges and agrees that it shall not claim or attempt to claim, any
ownership or other intellectual property rights in any of the Non-Exclusive
Results except as provided under this Section 7.1.2. Supplier hereby grants to
Customer and its successors pursuant to Section 12.7 hereof a non-exclusive,
nontransferable, worldwide, perpetual license to use and/or modify the
Non-Exclusive Results, excluding, however, the Non-

                                       11
<PAGE>

Exclusive Results listed on Schedule 7.1.2. The terms of this paragraph shall
survive the termination or expiration of this Agreement.

        7.2 Other Interests. Subject to Section 7.1 hereof, Customer
acknowledges that nothing contained in this Agreement shall vest in Customer,
nor shall Customer claim or attempt to claim, any ownership or other
intellectual property rights in any Data of Supplier or in any of Supplier's
Software and Equipment (other than rights of use contemplated by Sections 4 and
7.1 of this Agreement and Customer Equipment). Subject to Section 7.1 hereof,
Supplier acknowledges that nothing contained in this Agreement shall vest in
Supplier, nor shall Supplier claim or attempt to claim, any ownership or other
intellectual property rights in any Customer Equipment or Customer Software, if
any (other than rights of use contemplated by Sections 4 and 7.1 of this
Agreement).

        7.3 License Agreement. Simultaneously with the execution of
this Agreement, Supplier and Customer shall enter into a License Agreement
granting to Customer the right to use certain intangible and intellectual
property assets of Supplier, including (a) a non-exclusive, royalty free,
limited license to use the name "Great American" in connection with (i) the
Reinsured Business during the term of the Reinsurance Agreement and (ii)
servicing the Direct Business of Supplier as described in a separate services
agreement, provided that Customer shall not misappropriate, misrepresent or
otherwise infringe, abuse or diminish the value of the name Great American, and
(b) a perpetual, non-exclusive, royalty free license to the "Driver Club"
product and associated intellectual property rights.

    Section 8. Confidentiality.

        8.1 Definition. For purposes of this Agreement, the term "Confidential
Information" means the following items, whether currently existing or created in
the future:

            8.1.1 all knowledge or information concerning the Business or
concerning the proprietary information of the Supplier or Customer, or their
respective Affiliates, which is not already available to the public, such as
internal operating procedures; investment strategy; sales data and customer
lists; financial plans, projections and reports; insurance programs, plans and
products; Exclusive Results and Non-Exclusive Results.

            8.1.2 all knowledge or information concerning assets owned, leased,
licensed and/or developed by or for the Supplier or Customer, or their
respective Affiliates, and not available to the public, such as computer
systems, programs, Software and devices, plus information about the design,
methodology and Documentation relating to such assets;

            8.1.3 information about or personal to insureds, clients, agents,
Employees or applicants (for employment, products or services) of the Supplier
or Customer or their respective Affiliates or otherwise relating to the
Business;

            8.1.4 information, materials, products or any other tangible or
intangible assets in the possession or under the control of the Supplier or
Customer, or their respective Affiliates, which is proprietary to, or
confidential to or about any other Person; and

            8.1.5 records and repositories of the foregoing, however maintained.

                                       12
<PAGE>

The foregoing notwithstanding, "Confidential Information" shall not be
considered to include information which (i) was publicly known and made
generally available in the public domain prior to the time of disclosure by the
disclosing party; (ii) becomes publicly known and made generally available after
disclosure by the disclosing party to the receiving party through no action or
inaction of the receiving party; (iii) is already in the possession of the
receiving party at the time of disclosure by the disclosing party as shown by
the receiving party's files and records immediately prior to the time of
disclosure; (iv) is obtained by the receiving party from a third party without a
breach of such third party's obligations of confidentiality; (v) is
independently developed by the receiving party without use of or reference to
the disclosing party's Confidential Information, as shown by documents and other
competent evidence in the receiving party's possession; (vi) is required to be
disclosed by the receiving party to a regulatory authority or (vii) is otherwise
required by law to be disclosed by the receiving party, provided that the
receiving party gives the disclosing party prompt written notice of such
requirement prior to such disclosure and assistance in obtaining an order
protecting the information from public disclosure. The failure to mark any
material or information "confidential" shall not affect the confidential nature
thereof.

            8.2 Obligations of Customer. Customer shall, and shall cause its
Affiliates to, hold all Confidential Information pertaining or belonging to
Supplier or its Affiliates, including, but not limited to, information relating
to third party owned software, in the strictest confidence at all times, making
no use thereof other than in connection with this Agreement or the negotiations
between the parties to this Agreement. Furthermore, Customer shall not, without
the prior approval of an appropriate officer of Supplier, release any such
Confidential Information to any Person not directly involved in the activities
contemplated under this Agreement. However, any such Confidential Information
may be disclosed to Persons employed or retained by Customer who are directly
involved in the activities contemplated hereby, it being understood that, in any
event, Customer shall be responsible for any breach of this Section 8 by any
such Person. Upon reasonable request by Supplier, Customer shall execute a
confidentiality or nondisclosure agreement in favor of any third party software
vendor and shall cause any Person employed or retained by it to sign a form of
confidentiality agreement previously approved by Supplier.

            8.3 Obligations of Supplier. Supplier shall, and shall cause its
Affiliates to, hold all Confidential Information pertaining or belonging to
Customer, or any of its Affiliates, in the strictest confidence at all times,
making no use thereof other than in connection with this Agreement or the
negotiations between the parties to this Agreement. Furthermore, without the
prior approval of an appropriate officer of Customer, Supplier shall not, and
shall not permit its Affiliates to, release any Confidential Information
pertaining or belonging to Customer, or any of its respective Affiliates, to any
Person not directly involved in the activities contemplated under this
Agreement. However, any such Confidential Information may be disclosed to
Persons employed or retained by Supplier who are directly involved in the
activities contemplated hereby, it being understood that, in any event, Supplier
shall be responsible for any breach of this Section 8 by any such Person.

            8.4 Relief. Each party agrees that if the arbitration panel
described in Section 11 herein determines that the receiving party has breached,
or attempted or threatened to breach, any of its confidentiality obligations to
the disclosing party or the disclosing party's proprietary

                                       13
<PAGE>

rights, the disclosing party will be entitled to obtain appropriate injunctive
relief and other measures restraining further, attempted or threatened breaches
of such obligations.

    Section 9. Term and Termination.

        9.1 Term. The Term of this Agreement shall commence on the date of this
Agreement and shall continue for a three-year period ending on the third
anniversary of this Agreement.

        9.2 Mutual Termination of Services. The parties contemplate that many
of the Services will be gradually eliminated throughout the Term and agree to
the following procedures for eliminating a specific Service from the scope of
this Agreement:

            9.2.1 At any time, either of the parties' Primary Contacts may
notify the other (which notice must be in writing) that a particular Service
listed on an applicable Schedule 2.1 is no longer needed to be provided and can
be eliminated (including the associated Basic Costs, if inapplicable to any
remaining Services), effective as of the first day of the ensuing month or a
different period if mutually agreed to by the parties. If the Primary Contacts
agree that a particular Service or particular Services (and the associated Basic
Costs) can be eliminated, then they will promptly execute a service elimination
form, in the form attached hereto as Appendix II (each, an "Elimination Form").
Each party represents and warrants that their respective Primary Contacts shall
have the authority to execute an Elimination Form or the Final Elimination Form
(as defined below), and such document shall be binding on the party; provided,
however, that no termination affecting any Enterprise Contract specifically set
forth on Schedule 9.2/9.3 shall be effective until the end of such contract's
then-current term, unless otherwise agreed by Supplier. Upon execution, all
Elimination Forms will amend the remaining Services (and associated Basic Costs)
obligations of the parties as described herein.

            9.2.2 Except as expressly provided in an Elimination Form, such form
is not intended to modify, eliminate or alter any other Services (or associated
Basic Costs) obligation of the parties and in no event shall it modify,
eliminate or alter any other obligations, or any representations or warranties
of the parties.

            9.2.3 The parties anticipate that the parties will gradually
diminish the Services obligations. If all remaining Services are eliminated,
then that Elimination Form will be deemed to be the final one, must indicate the
same, and will terminate the Services obligations (and all associated Basic
Costs obligations) pursuant to this Agreement, effective at the end of the Term
or a shorter period, if mutually agreed to by the parties (the "Final
Elimination Form").

        9.3 Termination by Customer. Except as provided below in this Section,
in addition to its rights under Section 9.2, Customer shall have the right at
any time, upon 180 days written notice to Supplier, to terminate the obligation
of Supplier to perform any or all of the Services; provided, however, that no
termination affecting any Enterprise Contract specifically set forth on Schedule
9.2/9.3 shall be effective until the end of such contract's then-current term,
unless otherwise agreed by Supplier. Upon receiving any such notice, Supplier
shall, subject to the foregoing proviso, (a) terminate performance in accordance
with the terms specified in such notice and (b) cooperate with Customer in
accordance with any Transition Procedures related to

                                       14
<PAGE>

the Services being terminated to assure that performance of such Services may be
continued by Customer (or its designee) without adverse disruption to the
Business. Any such Transition Procedures shall account for Customer's continuing
obligation under Section 2.6.3 to provide timely and accurate data to Supplier.
Customer and Supplier shall execute an Elimination Form for any termination
under this Section.

            9.4 Termination by Supplier. If Customer fails to pay undisputed
invoiced amounts (including, without limitation, amounts determined pursuant to
Section 11 to be owing to Supplier) within thirty (30) days after receipt of a
written notice from Supplier, Supplier may terminate this Agreement. In the
event of a failure of Customer to perform any other obligation under this
Agreement for a period of thirty (30) days following receipt of Supplier's
written notice, Supplier may terminate this Agreement provided that Supplier
shall be required to pursue the dispute resolution process in Section 11 prior
to exercising such right of termination.

            9.5 Obligations upon Termination. Upon any termination pursuant to
Section 9 of this Agreement, Customer shall have no further payment obligations
relating to the terminated Services; provided, however, that no such termination
relating to any or all of the Services shall relieve Customer of its obligation
(a) to pay Supplier the remaining unpaid balance of any Basic Costs (including
costs for any Transition Services) and Pass Through Charges due and payable
through the date of termination, as well as any Pass Through Charges that are
incurred during the Term but are not yet due and payable, (b) for contractual
commitments made on behalf of Customer or its Affiliates under any Enterprise
Contracts, or (c) to provide timely and accurate data to Supplier pursuant to
Section 2.6.3. Provided Supplier has acted in good faith, Supplier shall not be
required to perform its obligations under the Transition Procedures or any other
obligations under this Agreement beyond the date which is 180 days after the
Termination Date. Nothing contained in this Section 9 shall serve to relieve
Supplier from its payment obligations to Customer under this Agreement,
including, but not limited to, any amounts due Customer pursuant to Section 6,
Section 10 or Section 11.

    Section 10. Indemnification. Subject to the terms of Section 5, in addition
to any indemnity either party may be expressly entitled to under other
provisions of this Agreement, the parties shall be entitled to indemnification
to the extent and upon the terms set forth in this Section 10.

        10.1 Indemnification by Supplier. Supplier shall indemnify, defend and
hold Customer and its Affiliates harmless from and against any fines and
penalties (and any costs incident thereto) arising solely from Supplier's action
or inaction under the terms of this Agreement. In addition, Supplier shall
indemnify, defend and hold Customer harmless from and against any Damages and
Claims incurred by reason of:

            10.1.1 the breach by Supplier of this Agreement, including the
representations, warranties and covenants of Supplier contained herein;

            10.1.2 any Person acting on behalf of Supplier in connection with
this Agreement, including without limitation, any fee claimed by such Person;

                                       15
<PAGE>

            10.1.3 any claim that any Software utilized in providing the
Services (other than Customer Software) violates any patent, trademark,
copyright, trade secret or any other proprietary right of any Person, but in the
case of any such Software, only to the extent that Supplier is able to
successfully obtain indemnification therefor from the licensor thereof; or

            10.1.4 the performance by Supplier of the Services under this
Agreement to the extent caused by Supplier's gross negligence or willful
misconduct.

            10.2 Indemnification by Customer. Customer shall indemnify, defend
and hold Supplier and its Affiliates harmless from and against any Damages and
Claims incurred by reason of:

            10.2.1 the breach by Customer of this Agreement, including the
representations, warranties and covenants of Customer contained herein;

            10.2.2 actions taken by Supplier in reliance upon written
instructions or orders received from Customer in connection with the Services
provided hereunder;

            10.2.3 any Person acting on behalf of Customer in connection with
this Agreement, including without limitation, any fee claimed by such Person;

            10.2.4 any claim that any Customer Software violates any patent,
trademark, copyright, trade secret or any other proprietary right of any Person,
but in the case of any such Customer Software, only to the extent that Customer
is able to successfully obtain indemnification therefor from the licensor
thereof; or

            10.2.5 subject to Section 10.1, the performance by Supplier of the
Services under this Agreement unless caused by Supplier's gross negligence or
willful misconduct.

        10.3 Notification. Any Person entitled to assert a claim or demand for
indemnification under this Section 10 (the "Indemnitee"), in order to secure
indemnification with respect to this Agreement, shall notify the indemnifying
party hereunder (the "Indemnitor") in writing of the existence of such matter
within a reasonable time based on the facts and circumstances of the situation,
including the necessities of court actions. The Indemnitee shall furnish to the
Indemnitor promptly such information as the Indemnitor may reasonably request in
respect to such claim or demand. The Indemnitor shall have the right (but not
the obligation) at its sole expense and in the name of the Indemnitee, to
compromise or defend any matter involving a third party (a "Third Party Claim")
for which indemnification has been sought hereunder. The Indemnitee shall
cooperate and cause its Affiliates to cooperate with the Indemnitor in
compromising or defending any such Third Party Claim, provided the actual
out-of-pocket expenditures (other than legal expenses) incurred in such
cooperation shall be paid by the Indemnitor. After notice from an Indemnitor to
an Indemnitee of its election to assume the defense of a Third Party Claim, such
Indemnitor shall not be liable to such Indemnitee under this Section 10 for any
legal expenses subsequently incurred by such Indemnitee in connection with the
defense thereof; provided that such Indemnitee shall be entitled to participate
in such defense and to employ counsel, at the Indemnitee's expense, to assist it
therein. If the Indemnitor does not provide the Indemnitee with a written notice
of its intention to defend the Third Party Claim

                                       16
<PAGE>

or does not commence to compromise or defend such Third Party Claim within
thirty (30) days after receipt of notice from the Indemnitee of the existence of
such claim, or if the Indemnitor disputes its liability to the Indemnitee for
any sum pursuant to this Section 10 or otherwise, the Indemnitee may defend or
otherwise dispose of the Third Party Claim; provided that such Indemnitee shall
not consent to entry of any judgment or enter into any settlement or compromise
with respect to such Third Party Claim without the written consent of the
Indemnitor (which consent shall not be unreasonably withheld).

         Any other provision in this Section 10 notwithstanding, if an offer of
settlement or compromise is received by an Indemnitor with respect to a Third
Party Claim and such Indemnitor notifies the related Indemnitee in writing of
such Indemnitor's willingness to settle or compromise such Third Party Claim on
the basis set forth in such notice and such Indemnitee declines to accept such
settlement or compromise, such Indemnitee may continue to contest such Third
Party Claim, free of any participation by such Indemnitor, at such Indemnitee's
sole expense. In such event, the obligation of such Indemnitor to such
Indemnitee with respect to such Third Party Claim shall be equal to the lesser
of (a) the amount of the offer of settlement or compromise which such Indemnitee
declined to accept plus the amount of indemnifiable costs and expenses incurred
by such Indemnitee prior to the date such Indemnitor notifies such Indemnitee of
the offer to settle or compromise and (b) the actual out-of-pocket amounts such
Indemnitee is obligated to pay as a result of such Indemnitee's continuing to
contest such Third Party Claim.

            10.4 Sole Remedy. This section states the entire obligation and sole
remedy of each of the parties with respect to any claim of infringement.

        Section 11. Informal Dispute Resolution; Arbitration. Customer and
Supplier agree that any dispute, controversy, or claim arising out of or related
to this Agreement (the "dispute") shall go through the following informal
dispute resolution process prior to submission to arbitration. First, the
dispute, together with all relevant documentation, shall be submitted in writing
to a senior management representative of both Customer and Supplier and, in the
case of a disputed payment under Section 6.8, within thirty (30) days after
receipt of invoice. The representatives will negotiate in an effort to resolve
the dispute without the necessity of any formal proceeding. If the
representatives cannot resolve the dispute within fifteen business days of
receipt of written notice, the dispute may be submitted to arbitration.

         If any dispute, controversy or claim arising out of or related to this
Agreement has not been resolved, the parties hereby agree to arbitration. All
matters referred to arbitration shall be determined and settled according to the
Commercial Arbitration Rules of the American Arbitration Association except as
expressly set forth herein. Either party may demand arbitration by giving
written notice to the other party stating the nature of the controversy.
Arbitration shall be by three arbitrators, one of which is selected by each
party and the third of which is selected by the two arbitrators so selected.
Arbitrators shall have experience as insurance company executives. The
arbitration shall be held in Cincinnati, Ohio or such other place as agreed upon
by the parties. The arbitration panel shall allow discovery as is appropriate
for the purposes of the arbitration in accomplishing fair, speedy and
cost-effective resolution of disputes. The costs of arbitration, including,
without limitation, reasonable attorney fees, shall be apportioned between the
parties in the proportion to the amount of fault attributed to each party by the

                                       17
<PAGE>

arbitration panel. There shall be no award of punitive, consequential or
extra-contractual damages. The decision of the arbitration panel shall be final,
conclusive and binding upon the parties and a judgment upon the award rendered
by the arbitration panel may be entered into any court having jurisdiction
thereof. The parties agree and stipulate that time is of the essence in
conducting the arbitration of disputes. If either party unreasonably delays the
process of the arbitration, the other party shall not be obligated to continue
with the arbitration process, and shall have the right to legal review of the
dispute.

         Section 12. Miscellaneous.

            12.1 Expenses. Except as otherwise provided in this Agreement, all
costs and expenses incurred in connection with this Agreement and the Services
contemplated hereby shall be paid by the party incurring such costs and
expenses.

            12.2 Notices. All notices and requests in connection with this
Agreement shall be given to or made upon the respective parties in writing and
shall be deemed given as of the day actually received if sent by telecopy,
facsimile transmission, some other form of instantaneous transmission, overnight
or faster private courier, or if otherwise hand-delivered, but if deposited in
the United States mails, shall not be deemed delivered until three (3) days
after being sent, with postage pre-paid, certified or registered, with return
receipt requested and addressed as follows:

            If to Customer:

            Infinity Property and Casualty Corporation
            2204 Lakeshore Drive
            Birmingham, Alabama 35209
            Attn.:  General Counsel

            If to Supplier:

            Great American Insurance Company
            580 Walnut Street
            Cincinnati, Ohio  45202
            Attn:  General Counsel

         Either party may change its address for notices by giving notice of
same in the manner specified above.

            12.3 Entire Agreement. This Agreement, together with the Schedules
to this Agreement, and such further amendments as may be incorporated into this
Agreement from time to time, constitutes the complete and exclusive statement of
the parties' intentions with respect to the subject matter of this Agreement and
supersedes all prior agreements and understandings, whether oral or in writing,
with respect to the subject matter of this Agreement. Without limiting the
foregoing, this Agreement constitutes the complete and exclusive statement of
the parties' intentions with respect to any compensation or reimbursement for
which Customer shall be liable to Supplier or any Affiliate reinsurer of
Supplier in connection with any unallocated expenses for

                                       18
<PAGE>

employees and ordinary overhead expenses such as salaries, annual retainers,
office expenses and other fixed expenses of Supplier, including, without
limitation, any expenses in connection with the foregoing contained in the
Reinsurance Agreement.

            12.4 Choice of Law. This Agreement shall be governed by and
construed and enforced in accordance with the internal substantive laws of the
State of Ohio, without regard to conflicts of laws principles.

            12.5 Severability. If any provision of this Agreement shall be held
to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall in no way be affected or
impaired thereby, unless such invalidity, unenforceability or illegality renders
the Agreement as a whole substantially unperformable.

            12.6 Force Majeure. Notwithstanding the provisions of this
Agreement, neither party shall be liable in any manner for any failure to
perform their obligations under this Agreement resulting in any manner from
delay, failure in performance, loss or damage due to fire, strike, embargo,
explosion, power blackout, earthquake, flood, act of war, terrorism, riot,
governmental requirement or other causes beyond such party's reasonable control,
whether or not similar to any of the foregoing (including, without limitation,
actions or inactions by unrelated Persons contributing to failures to perform),
for so long as such circumstances continue to exist and cause such failure to
perform. If a force majeure event causes a material failure in Supplier's
performance of any Services for more than two (2) consecutive days, Customer
shall not be required to pay any fees or expenses for such period of time. In
addition, if the force majeure event continues uninterrupted for a period of 30
consecutive days, Customer shall have the right to terminate this Agreement upon
immediate written notice but otherwise in accordance with Section 9.3.

            12.7 Parties in Interest. This Agreement shall be binding upon and
inure to the benefit of the parties to this Agreement and their respective
successors and assigns. Nothing in this Agreement, express or implied, is
intended to confer on any Person other than the parties and their respective
successors and assigns any rights or remedies under or by this Agreement. The
foregoing notwithstanding, neither this Agreement nor the parties' rights and
obligations hereunder, nor any of these, may be assigned by either party to this
Agreement without the express written consent of the other party and any
purported assignment in violation hereof shall be null and void. Notwithstanding
the foregoing, Customer may designate an Affiliate to receive any of the
Services to be provided by Supplier provided that the scope of the Services is
not increased in Supplier's sole judgment. Supplier shall have the right,
without the consent of Customer but with 30 days prior written notice, to assign
its rights and obligations under this Agreement to any Affiliate, provided that
(x) such Affiliate is capable of performing all of Supplier's obligations
hereunder, including, without limitation, the indemnification obligations and
(y) Customer shall incur no additional expense as a result of such assignment.

            12.8 Survival. The obligations and other provisions set forth in
Sections 2.6.3, 5, 7, 8, 9.5, 10, 11 and 12 of this Agreement, together with any
other indemnification obligations set forth in this Agreement, shall survive any
expiration or termination of this Agreement.

                                       19
<PAGE>

            12.9 No Partnership. Nothing contained in this Agreement shall be
deemed or construed by the parties or any other Person to create the
relationship of partnership or of joint venture. By this Agreement, Supplier and
Customer intend to create an independent contractor relationship.

            12.10 Captions. The Section and Paragraph headings used in this
Agreement have been inserted for convenience of reference only and shall not be
construed to affect the meaning or interpretation of any provision, term or
condition hereof.

            12.11 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be a duplicate original but all
of which, when taken together, shall constitute a single instrument.

            12.12 Schedules; Order of Precedence. All provisions contained in
the Schedules hereto shall have the same force and effect as though set forth in
the body of this Agreement. In the event of any inconsistency between this
Agreement and any Schedule, this Agreement shall take precedence.

            12.13 Interpretation. The parties are sophisticated and have each
committed significant resources to the preparation and negotiation of this
Agreement. As a result, Customer and Supplier agree the presumption of any laws
or rules relating to the interpretation of contracts against the drafter thereof
should not apply, and hereby waive any such presumption.

IN WITNESS WHEREOF, the parties to this Agreement have executed this Agreement
as of the day and year first set forth above by their duly authorized
representatives.

                       AMERICAN FINANCIAL GROUP, INC.

                       By:    /s/ James C. Kennedy
                       ---------------------------
                       Name:    James C. Kennedy
                       Title:   Vice President, Deputy General Counsel and
                                Secretary

                       INFINITY PROPERTY AND CASUALTY CORPORATION

                       By:     /s/  Samuel J. Simon
                       ---------------------------
                       Name:    Samuel J. Simon
                       Title:   Senior Vice President, General Counsel and
                                Secretary

                                       20

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